Lodi City Council
November 2, 2022

Revised 10/2021 10/27/2022 8:11 AM

For information regarding this Agenda please contact:

Olivia Nashed
City Clerk
Telephone: (209) 333-6702

C-1 Call to Order / Roll Call
C-2 Announcement of Closed Session
a) Conference with Adele Post, Human Resources Manager, and Andrew Keys, Deputy City Manager (Labor Negotiators), Regarding Lodi Professional Firefighters, Lodi Police Dispatchers Association, AFSCME General Services and Maintenance & Operators, Confidential General Services, Executive Managers, and Appointed Employees Pursuant to Government Code §54957.6 (CM)

b) Prospective Lease of Real Property Located at 2000 West Turner Road, Lodi, California (APN: 029- 03-070); the Negotiating Parties are City Manager Stephen Schwabauer for the City of Lodi and Daryl Merritt for Bond Manufacturing Co., Inc., and RRM Enterprises, LLC; Government Code §54956.8 (CM)

c) Prospective Lease of Real Property Located Adjacent to 2001 West Turner Road, Lodi, California (City of Lodi Surface Water Treatment Plant) and Referenced as APN: 015-64-008; the Negotiating Parties are City Manager Stephen Schwabauer and City Attorney Janice D. Magdich for the City of Lodi; Bobak Fatemizadeh, General Counsel for Enchanted Rock, LLC; and California Department of Water Resources; Government Code §54956.8 (CM)

C-3 Adjourn to Closed Session

NOTE: THE FOLLOWING ITEMS WILL COMMENCE NO SOONER THAN 7:00 P.M.

C-4 Return to Open Session / Disclosure of Action
A. Call to Order / Roll Call

LODI CITY COUNCIL
Carnegie Forum
305 West Pine Street, Lodi

Notice Regarding Public Comments
Public Comment may be submitted in the following ways:
• In-person – The Carnegie Forum is open to the public in accordance with CDPH and CalOSHA guidelines.
• Zoom Webinar
 Meeting ID: 825 2286 8353
 Passcode: 985648
 Phone number: 1 253 215 8782 or 1 346 248 7799
 Link: https://us06web.zoom.us/j/82522868353?pwd=cFh1S2VWUmZHR0pCbmZyTitHZ05kQT09 Public comment received via email, mail, or hand delivery will be provided to the City Council and included in the official minutes of the meeting, but will not be read aloud at the meeting. • Email – [email protected]
 Received no later than two hours prior to the meeting • Mail – City Clerk’s Office, P.O. Box 3006, Lodi, CA 95241 • Hand delivered to: City Clerk’s Office, 221 W. Pine Street, Lodi, CA 95240  Received no later than two hours prior to the meeting 6:55 p.m. Invocation/Call to Civic Responsibility . Invocations/Calls may be offered by any of the various religious and non- religious organizations within and around the City of Lodi. These are voluntary offerings of private citizens, to and for the benefit of the Council. The views or beliefs expressed by the Speaker have not been previously reviewed or approved by the Council, and the Council does not endorse the beliefs or views of any speaker.

AGENDA – Regular Meeting
Date: November 2, 2022
Time: Closed Session 6:30 p.m.

Regular Meeting 7:00 p.m.

CITY COUNCIL AGENDA
NOVEMBER 2, 2022

PAGE TWO

B. Presentations
B-1 Extra Mile Day Proclamation (CLK)

B-2 Lung Cancer Awareness Month Proclamation (CLK)

C. Consent Calendar (Reading; Comments by the Public; Council Action) All matters listed on the consent calendar are considered to be routine and will be acted upon by one motion.

There will be no separate discussion of these items. If a member of the public would like a consent calendar item pulled and discussed separately, refer to the Notice at the beginning of this agenda.

C-1 Receive Register of Claims for September 30, 2022 through October 13, 2022 in the Total Amount of $4,061,201.71 (FIN)

C-2 Approve Minutes (CLK)
a) September 21 and October 5, 2022 (Regular Meetings)
b) October 18 and October 25, 2022 (Shirtsleeve Sessions)

Res. C-3 Adopt Resolution Authorizing Purchase of Six 29-Foot Compressed Natural Gas Low-Floor Buses from Gillig, LLC, of Livermore (Not to Exceed $3,900,000), Utilizing Washington State Department of Enterprise Services Cooperative Purchasing Agreement (Master Contract No. 06719), and Authorizing City Manager to Execute All Necessary Documents (PW)

Res. C-4 Adopt Resolution Rejecting All Bids, Approve Revised Specifications, Authorize Re- Advertisement for Bids, Authorize City Manager to Award Contract to Lowest, Responsive Bidder for Peterson Park Tennis Court Resurfacing ($60,000), and Authorize City Manager to Execute Change Orders ($5,000) (PW)

Res. C-5 Adopt Resolution Authorizing City Manager to Execute Amendment No. 1 to Contract with Cintas Corporation No. 3, of Stockton, for Rental and Cleaning of Uniforms for Certain Field and Warehouse Employees ($200,000) (PW)

Res. C-6 Adopt Resolution Authorizing City Manager to Execute Professional Services Agreement with ICF Consulting, LLC, of Sacramento, to Complete City of Lodi Zero-Emissions Bus Study and Rollout Plan (Not to Exceed $99,914) (PW)

Res. C-7 Adopt Resolution Authorizing City Manager to Execute Three-Year Professional Services Agreement with Guardian Public Safety Background Investigations, Inc., of Lodi, for Background Investigation Services for City of Lodi ($100,000) (PD)

Res. C-8 Adopt Resolution Authorizing City Manager to Execute Amendment No. 3 to Service Agreement with Granicus, LLC, a Minnesota Company, to Add Granicus Solution Legistar for Agenda Management Services ($31,746) (CLK)

Res. C-9 Adopt Resolution Authorizing City Manager to Execute Amendment No. 1 to Professional Services Agreement with 4 Leaf, Inc., for Building Codes Plans Examining, Building Codes Inspection, Fire Codes Plans Examining, Fire Codes Inspection, and Code Enforcement Services to I ncrease Current Contract Ending October 31,2022, by Adding Amount Not to Exceed $60,000, for T otal Amount Not to Exceed $960,000 over Term of Agreement (CD)

Res. C-10 Adopt Resolution Authorizing City Manager to Extend Three-Year Professional Services Agreement with Business Recovery Services, Inc., of Alameda, to Provide Lockbox Services For Processing Utility Check Payments Received ($54,000) (ISD)

C-11 Set Public Hearing for November 16, 2022 to Consider Adoption of 2022 California Building Code, California Existing Building Code, Mechanical Code, Electrical Code, Plumbing Code, Residential Code, Green Building Standard Code, and Fire Code (CD)

CITY COUNCIL AGENDA
NOVEMBER 2, 2022

PAGE THREE

D. Comments by the Public on Non-Agenda Items

THE TIME ALLOWED PER NON -AGENDA ITEM FOR COMMENTS MADE BY THE PUBLIC IS LIMITED TO FIVE MINUTES.

Public comment may only be made on matters within the Lodi City Council's jurisdiction (Government Code Section 54954.3, Lodi City Council Protocol Manual Sec tion 6.3l). The Council cannot take action or deliberate on items that are not on this agenda unless there is an emergency and the need t o take action on that emergency arose after this agenda was posted (Government Code Section 54954.2(b)(2)). All other items may only be referred for review to staff or placement on a future Council agenda.

If you wish to address the Council, please refer to the Notice at the beginning of this agenda. Individuals are limited to one appearance during this section of the Agenda.

E. Comments by the City Council Members on Non-Agenda Items

F. Comments by the City Manager on Non-Agenda Items

G. Public Hearings

Res. G-1 Public Hearing to Consider Adopting Resolution Setting San Joaquin County Multi-Species Habitat Conservation and Open Space Plan Development Fees for 2023 (CD)

H. Regular Calendar

Res. H-1 Adopt Resolution Authorizing City Manager to Execute Site Use and Services Agreement between City of Lodi, California Department of Water Resources and Enchanted Rock Electric, LLC, a Texas Limited Liability Company, for Location of 48 Megawatt Natural Gas Power Plant on City-Owned Property Designated as APN 015-64-008 Located Adjacent to Surface Water Treatment Plant (2001 West Turner Road) (CM)

H-2 Receive Report on Progress towards City Council Goals and Provide Direction on Future Goal Setting and Process for Use of One-Time Funds (CM)

Res. H-3 Adopt Resolution Approving Final Budget Adjustments for Fiscal Year 2022 and Appropriating Funds ($1,180,816.55) (ISD)

H-4 Approve the Sponsorship of the Let Hope Shine Gala by Uplift All Foundation for $10,000 (CLK)

I. Ordinances – None

J. Adjournment

Pursuant to Section 54954.2(a) of the Government Code of the State of California, this agenda was posted at least 72 hours in advance of the scheduled meeting at a public place freely accessible to the public 24 hours a day.

______________________________
Olivia Nashed
City Clerk

All staff reports or other written documentation relating to each item of business referred to on the agenda are on file in the Office of the City Clerk, located at 221 W. Pine Street, Lodi, and are available for public inspection. Agendas and staff reports are also posted on the City’s website at www.lodi.gov . If requested, the agenda shall be made available in appropriate alternative formats to persons with a disability, as required by Section 202 of the Americans with Disabilities Act of 1990 (42 U.S.C. Sec. 12132), and the federal rules and regulations adopted in implementation thereof. To make a request for disability-related modification or accommodation contact the City Clerk’s Office as soon as possible and at leas t 72 hours prior to the meeting date. Language interpreter requests must be received at least 72 hours in advance of the meeting to help ensure availability. Contact Olivia Nashed at (209) 333- 6702. Solicitudes de interpretación de idiomas deben ser recibi das por lo menos con 72 horas de anticipación a la reunión para ayudar a asegurar la disponibilidad. Llame a Olivia Nashed (209) 333-6702.

Meetings of the Lodi City Council are telecast on SJTV, Channel 26. The City of Lodi provides live and archived webcasts of regular City Council meetings. The webcasts can be found on the City's website at www.lodi.gov by clicking the meeting webcasts link.

Members of the public may view and listen to the open session of this teleconference meeting at www.facebook.com/CityofLodi/ or https://us06web.zoom.us/j/82522868353?pwd=cFh1S2VWUmZHR0pCbmZyTitHZ05kQT09.

AGENDA ITEM B-01

COUNCIL COMMUNICATION
APPR
OVED: ________________________________
Stephen Schwabauer, City Manager
AGENDA TITLE: Extra Mile Day Proclamation
M
EETING DATE: November 2, 2022
P
REPARED BY: City Clerk
RE
COMMENDED ACTION: Mayor Chandler will present a proclamation proclaiming November 1, 2022, as “Extra Mile Day” in the City of Lodi.

B
ACKGROUND INFORMATION: Extra Mile Day was celebrated on November 1, 2022. This nationwide event is organized by Extra Mile America and encourages citizens to maximize their personal contribution to the community by giving of themselves wholeheartedly and with total effort, commitment, and conviction.

F
ISCAL IMPACT: Not applicable.

F
UNDING AVAILABLE: Not applicable.
________________________________________

O livia Nashed
City Clerk
AGENDA ITEM B-02

COUNCIL COMMUNICATION
APPR
OVED: ________________________________
Stephen Schwabauer, City Manager
AGENDA TITLE: Lung Cancer Awareness Month Proclamation
M
EETING DATE: November 2, 2022
P
REPARED BY: City Clerk
RE
COMMENDED ACTION: Mayor Chandler will present a proclamation proclaiming November as “Lung Cancer Awareness Month” in the City of Lodi.

B
ACKGROUND INFORMATION: November is Lung Cancer Awareness Month. Lung cancer is the deadliest cancer in the United States, but it has been shown that lung cancer screening significantly reduces mortality as it can help to diagnose the disease earlier. However, only 5.7% of high-risk individuals are currently getting screened, which means thousands of lives are lost every year simply due to lack of awareness. Lung Cancer Awareness Month highlights the need for research, screening, and public awareness of the disease.

F
ISCAL IMPACT: Not applicable.

F
UNDING AVAILABLE: Not applicable.
________________________________________

O livia Nashed
City Clerk

AGENDA ITEM C-01

COUNCIL COMMUNICATION

APPROVED: ________________________________
Stephen Schwabauer, City Manager

AGENDA TITLE: Receive Register of Claims for September 30, 2022 through October 13, 2022 in the Total Amount of $4,061,201.71

MEETING DATE: November 2, 2022

PREPARED BY: Internal Services Director

RECOMMENDED ACTION: Receive the attached Register of Claims for $4,061,201.71.

BACKGROUND INFORMATION: Attached is the Register of Claims in the amount of $4,061,201.71 for September 30, 2022 through October 13, 2022. Also attached is Payroll in the amount of $2,242,815.13 through October 2, 2022.

FISCAL IMPACT: Not applicable.

FUNDING AVAILABLE: As per attached report.

_______________________________________
Andrew Keys
Deputy City Manager/Internal Services Director

Fund Fund Title Amount
100 General Fund $1,608,076.71
103 Measure L $5,732.30
120 Library Fund $9,889.97
140 Expendable Trust $247,113.19
200 Parks Rec & Cultural Services $33,659.50
216 PD Misc Grants $1,147.43
270 Comm Dev Special Rev Fund $31,712.83
300 Street Fund $10,855.00
301 Gas Tax-2105 2106 2107 $69,190.84
303 Measure K Funds $3,530.00
304 Gas Tax -2031 $329,878.64
309 State Bike Lane Fund $34,909.92
331 LTF-Pedestrian/Bike $3,130.00
350 H U D $194,125.75
355 GRANTS COMM. IMPR $767.55
410 Library Capital Account $2,200.00
431 Capital Outlay/General Fund $28,423.89
432 Parks & Rec Capital $268,447.04
500 Electric Utility Fund $137,897.59
501 Utility Outlay Reserve Fund $81,865.13
504 Public Benefits Fund $360.00
530 Waste Water Utility Fund $164,336.56
531 Waste Wtr Util-Capital Outlay $47,380.33
560 Water Utility Fund $438,304.49
561 Water Utility-Capital Outlay $33,241.28
590 Central Plume $14,020.33
591 Southern Plume $3,379.45
593 Northern Plume $1,272.81
594 South Central Western Plume $2,027.67
600 Dial-a-Ride/Transportation $38,483.36
605 Prop.1B State of Good Repair $662.50
650 Internal Service/Equip Maint $91,591.29
655 Employee Benefits $123,588.36
Total $4,061,201.71
AP Council Report Summary
9/30/2022-10/13/2022
City of Lodi Live v2020.3 10/17/2022 7:21:20 AM
Fund Description Amount
1,168,926.69
253,899.04
21,587.77
134,163.49
1,464.46
44,386.51
46,879.84
276,963.86
66,106.03
164,191.55
29,823.03
9,196.42
17,799.89
7,426.55
Report Total 2,242,815.13
Council Report: Payroll
Pay Period: 10/2/2022
100 General Fund
103 Measure L
120 Library Fund
200 Parks Rec & Cultural Services
214 LPD-OTS Grants
270 Comm Dev Special Rev Fund
301 Gas Tax-2105 2106 2107
500 Electric Utility Fund
501 Utility Outlay Reserve Fund
530 Waste Water Utility Fund
560 Water Utility Fund
600 Dial-a-Ride/Transportation
650 Internal Service/Equip Maint
655 Employee Benefits
City of Lodi Live v2020.3 10/17/2022 7:26:01 AM
AGENDA ITEM C-02

COUNCIL COMMUNICATION
APPR
OVED: ________________________________
Stephen Schwabauer, City Manager
AGENDA TITLE: Approve Minutes
a) September 21, 2022 (Regular Meeting)
b) October 5, 2022 (Regular Meeting)
c) October 18, 2022 (Shirtsleeve Session)
d) October 25, 2022 (Shirtsleeve Session)
M
EETING DATE: November 2, 2022
P
REPARED BY: City Clerk
RE
COMMENDED ACTION: Approve the following minutes as prepared:
a) September 21, 2022 (Regular Meeting)
b) October 5, 2022 (Regular Meeting)
c) October 18, 2022 (Shirtsleeve Session)
d) October 25, 2022 (Shirtsleeve Session)
B
ACKGROUND INFORMATION: Attached is a copy of the subject minutes marked Exhibit A through D, respectively.

FISCAL IMPACT: Not applicable.

FUNDING AVAILABLE: Not applicable.
_______________________________

Olivia Nashed
City Clerk
Attachments

LODI CITY COUNCIL

REGULAR CITY COUNCIL MEETING
CARNEGIE FORUM, 305 WEST PINE STREET
WEDNESDAY, SEPTEMBER 21, 2022
The City Council Closed Session meeting of September 21, 2022, was called to order by Mayor Chandler at 6:46 p.m.

Present: Council Member Kuehne, Mayor Pro Tempore Hothi, and Mayor Chandler

Absent: Council Member Khan, and Council Member Nakanishi Also Present: Deputy City Manager Keys, Deputy City Attorney Lucchesi, and City Clerk Nashed
At 6:46 p.m., Mayor Chandler adjourned the meeting to a Closed Session to discuss the above matters. The Closed Session adjourned at 7:06 p.m.

Council Member Nakanishi joined the meeting at 7:06 p.m.

At 7:08 p.m., Mayor Chandler reconvened the City Council meeting, and Deputy City Attorney Lucchesi disclosed the following actions.

Item C-2a) was discussion and direction, with no reportable action.

The Regular City Council meeting of September 21, 2022, was called to order by Mayor Chandler at 7:08 p.m.

Present: Council Member Kuehne, Council Member Nakanishi, Mayor Pro Tempore Hothi, and Mayor Chandler

Absent: Council Member Khan
Also Present: Deputy City Manager Keys, Deputy City Attorney Lucchesi, and City Clerk Nashed
Mayor Chandler presented a proclamation in honor of Pink Patch Project Month to C-1 Call to Order / Roll Call
C-2 Announcement of Closed Session
a) Conference with Adele Post, Human Resources Manager, and Andrew Keys, Depu ty City Manager (Labor Negotiators), Regarding Lodi City Mid-Management Association, AFSCME General Services and Maintenance & Operators, Lodi Professional Firefighters, Confidential General Services, Confidential Mid-Managers, Executive Managers, and Appointed Employees Pursuant to Government Code §54957.6 (CM) C-3 Adjourn to Closed Session
C-4 Return to Open Session / Disclosure of Actio n
A. Call to Order / Roll Call
B. Presentations
B-1 Pink Patch Project Month Proclamation (PD)
1 Exhibit A
Captain Eric Versteeg, of the Lodi Police Department.

Mayor Chandler presented a proclamation to Mike Smith in honor of the Lodi Rotary Club's Centennial celebration which was held on September 17, 2022.

Mayor Pro Tempore Hothi made a motion, second by Council Member Kuehne, to approve the following items hereinafter set forth, except those otherwise noted, in accordance with the report and recommendation of the City Manager.

VOTE:

The above motion carried by the following vote:

Ayes: Council Member Kuehne, Council Member Nakanishi, Mayor Pro Tempore Hothi, and Mayor Chandler
Noes: None

Absent: Council Member Khan
Claims were approved in the amount of $20,284,088.27.

The minutes of August 16, 2022 (Shirtsleeve Session), August 23, 2022 (Shirtsleeve Session), August 30, 2022 (Shirtsleeve Session), September 6, 2022 (Shirtsleeve Session), September 7, 2022 (Regular Meeting), and September 13, 2022 (Shirtsleeve Session) were approved as written.

Accepted the Quarterly Investment Report as required by the City of Lodi Investment Policy.

Accepted the Quarterly Report of Purchases between $10,000 and $60,000.

Approved the specifications and authorized advertisement for bids for 2022 Downtown Concrete Cleaning, and adopted Resolution No. 2022-208 authorizing the City Manager to award the contract to the lowest responsive bidder in an amount not to exceed $28,000; authorizing the City Manager to execute change orders in an amount not to exceed $2,000; and appropriating funds B-2 Lodi Rotary Club Centennial Proclamation (CLK)
C. Consent Calendar (Reading; Comments by the Public; Council Action) All matters listed on the consent calendar are considered to be routine and will be acted upon by one motion.

There will be no separate discussion of these items. If a member of the public would like a consent calendar item pulled and discussed separately, refer to the Notice at the beginning of this agenda.

C-1 Receive Register of Claims for July 29, 2022 through September 1, 2022 in the Total Amount of $20,284,088.27 (FIN)
C-2 Approve Minutes (CLK)
C-3 Accept Quarterly Investment Report as Required by City of Lodi Investment Policy (FIN) C-4 Accept Quarterly Report of Purchases between $10,000 and $60,000 (FIN) C-5 Approve Specifications and Authorize Advertisement for Bids for 2022 Downtown Concrete Cleaning, and Adopt Resolution Authorizing City Manager to Award Contract to Lowest Responsive Bidder ($28,000), Authorizing City Manager to Execute Change Orders ($2,000), and Appropriating Funds ($5,000) (PW)
2 in the amount of $5,000.

Approved the specifications and authorized advertisement for bids for Peterson Park Tennis Court Resurfacing; and adopted Resolution No. 2022-209 authorizing the City Manager to award the contract to the lowest responsive bidder in an amount not to exceed $55,000; and authorizing the City Manager to execute change orders in an amount not to exceed $5,000.

This item was pulled by Mayor Pro Tempore Hothi.

Parks, Recreation, and Cultural Services Director Christina Jaromay provided a report on the improvements planned at Beckman Park Small Dog Park.

Mayor Pro Tempore Hothi made a motion, second by Council Member Nakanishi, to adopt Resolution No. 2022-210 authorizing the City Manager to award the contract for Beckman Park Small Dog Park Improvements to Emert Construction, of Stockton, in the amount of $71,099 and to execute change orders in an amount not to exceed $5,000; and appropriating funds in the amount of $5,000.

VOTE:

The above motion carried by the following vote:

Ayes: Council Member Kuehne, Council Member Nakanishi, Mayor Pro Tempore Hothi, and Mayor Chandler
Noes: None

Absent: Council Member Khan
Adopted Resolution No. 2022-211 authorizing the City Manager to execute change orders to the 2021-2023 Tree Maintenance contract with West Coast Arborists, Inc., of Anaheim, in the amount of $330,324.

Adopted Resolution No. 2022-212 authorizing the City Manager to execute change orders for an additional $72,000 for Stormwater Trash Collection Project - Phase 2 (2021).

Accepted the improvements under the contract for Stormwater Trash Collection Project - Phase 3 (2022).

C-6
Approve Specifications and Authorize Advertisement for Bids for Peterson Park Tennis Court Resurfacing, and Adopt Resolution Authorizing City Manager to Award Contract to Lowest Responsive Bidder ($55,000), and Authorizing City Manager to Execute Change Orders ($5,000) (PW)
C-7 Adopt Resolution Authorizing City Manager to Award Contract for Beckman Park Small Dog Park Improvements to Emert Construction, of Stockton ($71,099) and to Execute Change Orders ($5,000), and Appropriate Funds ($5,000) (PRCS) C-8 Adopt Resolution Authorizing City Manager to Execute Change Orders to 2021-2023 Tree Maintenance Contract with West Coast Arborists, Inc., of Anaheim ($330,324) (PW) C-9 Adopt Resolution Authorizing City Manager to Execute Change Orders for Additional $72,000 for Stormwater Trash Collection Project – Phase 2 (2021) (PW) C-10 Accept Improvements Under Contract for Stormwater Trash Collection Project - Phase 3 (2022) (PW)
3 Adopted Resolution No. 2022-213 authorizing the City Manager to execute a Professional Services Agreement with Casey Printing, Inc., of King City, for recreation activity guide printing for the Parks, Recreation and Cultural Services Department in the amount of $111,493 for up to five years.

Adopted Resolution No. 2022-214 authorizing the City Manager to execute Amendment No. 2 to the Professional Services Agreement with Power Centric Solutions, LLC, of Gallatin, Tennessee, for Lodi Electric Utility engineering system study services, in the amount of $125,000.

Adopted Resolution No. 2022-215 authorizing the City Manager to accept 2021 AFG grant award (EMW-2021-FG-01313) and execute all necessary documents to participate in Advanced Life Support Program and appropriating funds in the amount of $930,928.

Adopted Resolution No. 2022-216 ratifying the expenditure of one million dollars from General Operating Reserves held at Northern California Power Agency for September 2022 Power Supply Costs.

Adopted Resolution No. 2022-217 accepting and attesting to the veracity of 2021 Lodi Electric Utility Power Source Disclosure and Power Content Label Reports and authorizing the Electric Utility Director to submit required reports to California Energy Commission.

This item was pulled by Council Member Nakanishi.

Council Member Nakanishi asked for a report on the item and a report on whether the concerns C-11 Adopt Resolution Authorizing City Manager to Execute Professional Services Agreement with Casey Printing, Inc., of King City, for Recreation Activity Guide Printing for Parks, Recreation and Cultural Services Department ($111,493 for up to Five Years) (PRCS) C-12 Adopt Resolution Authorizing City Manager to Execute Amendment 2 to Professional Services Agreement with Power Centric Solutions, LLC, of Gallatin, TN, for Lodi Electric Utility Engineering System Study Services ($125,000) (EU) C-13 Adopt Resolution Authorizing City Manager to Accept 2021 AFG Grant Award (EMW- 2021-FG-01313) and Execute All Necessary Documents to Participate in Advanced Life Support Program and Appropriate Funds ($930,928) (FD)
C-14 Adopt Resolution Ratifying Expenditure of One Million Dollars from General Operating Reserves Held at Northern California Power Agency for September 2022 Power Supply Costs (EU)
C-15 Adopt Resolution Accepting and Attesting to Veracity of 2021 Lodi Electric Utility Power Source Disclosure and Power Content Label Reports and Authorizing Electric Utility Director to Submit Required Reports to California Energy Commission (EU) C-16 Adopt Resolution Amending Traffic Resolution No. 97-148 by Approving No Parking along North Side of Lodi Avenue from Lower Sacramento Road East Approximately 1,000 Feet; Approving Two-Way Stop Controls on Bloomfield Drive at Concerto Street, Valencia Street at Cornelia Avenue, Cornelia Avenue at Ashton Street, Pegasus Drive at Ashton Street, and Celebration Drive at Heirloom Avenue; Approving Yield Control on Marigold Way at Primrose Drive, Calla Drive at Tulip Way, Gladiola Drive at Tulip Way, and Zinnia Way at Calla Drive; and Approving Berlanda Lane and Lebaron Boulevard from Reynolds Ranch Parkway to Olympic Avenue as Through Streets (PW)
4 of the residents of Westgate have been addressed.

Public Works Director Charlie Swimley stated that a meeting has been set up with the representatives of the Westgate area and City staff and provided a report regarding the item.

Mayor Pro Tempore Hothi made a motion, second by Council Member Nakanishi, to adopt Resolution No. 2022-218 amending Traffic Resolution No. 97-148 by approving no parking along north side of Lodi Avenue from Lower Sacramento Road east approximately 1,000 feet; approving two-way stop controls on Bloomfield Drive at Concerto Street, Valencia Street at Cornelia Avenue, Cornelia Avenue at Ashton Street, Pegasus Drive at Ashton Street, and Celebration Drive at Heirloom Avenue; approving yield control on Marigold Way at Primrose Drive, Calla Drive at Tulip Way, Gladiola Drive at Tulip Way, and Zinnia Way at Calla Drive; and approving Berlanda Lane and Lebaron Boulevard from Reynolds Ranch Parkway to Olympic Avenue as through streets.

VOTE:

The above motion carried by the following vote:

Ayes: Council Member Kuehne, Council Member Nakanishi, Mayor Pro Tempore Hothi, and Mayor Chandler
Noes: None

Absent: Council Member Khan
Made the following appointments:

Greater Lodi Area Youth Commission
Reed Waters - Term to expire May 31, 2023
Aubrey Jomaoas - Term to expire May 31, 2024
Emma Winn - Term to expire May 31, 2024
Finn Moran - Term to expire May 31, 2024
Liliana Hillstrom - Term to expire May 31, 2024
Adopted Resolution No. 2022-219 amending Lodi Senior Citizens Commission bylaws.

Adopted Resolution No. 2022-220 authorizing the destruction of certain Citywide records in accordance with the Government Code and the City's Record Management Policy.

Received report regarding communication pertaining to Assembly Bill 1951 (Grayson): Sales and Use Tax Exemptions: Manufacturing.

C-17
Appoint Aubrey Jomaoas, Emma Winn, Finn Moran, Liliana Hillstrom, and Reed Waters to the Greater Lodi Area Youth Commission (CLK)
C-18 Adopt Resolution Amending Lodi Senior Citizens Commission Bylaws (PRCS) C-19 Adopt Resolution Authorizing Destruction of Certain Citywide Records in Accordance with the Government Code and the City’s Record Management Policy (CLK) C-20 Receive Report R egarding Communication Pertaining to Assembly Bill 1951 (Grayson):

Sales and Use Tax Exemptions: Manufacturing (CLK)
C-21 Receive Report R egarding Communication Pertaining to Assembly Bill 2550 (Arambula):

State Air Resources Board: Ambient Air Quality Standards: Nonattainment Districts (CLK) 5 Received report regarding communication pertaining to Assembly Bill 2550 (Arambula): State Air Resources Board: Ambient Air Quality Standards: Nonattainment Districts.

Set a public hearing for September 27, 2022 to consider adopting a resolution approving 2021-22 Community Development Block Grant (CDBG) Consolidated Annual Performance and Evaluation Report (CAPER).

Set a public hearing for October 19, 2022 to consider adopting a resolution setting future solid waste rate schedules pursuant to Proposition 218.

Chelsea Taylor provided public comment regarding the skate park at Kofu Park.

Pat Byron provided public comment regarding the skate park at Kofu Park and provided a Supplemental II (filed).

Aaron Spears provided public comment regarding the skate park at Kofu Park.

Cole Houston provided public comment regarding the skate park at Kofu Park.

Adam Dunlas provided public comment regarding the skate park at Kofu Park.

Council Member Kuehne thanked the speakers and stated he would work with staff to determine next steps.

Antonio Cariel provided public comment regarding the skate park at Kofu Park.

Shannon O'Boil provided public comment regarding the skate park at Kofu Park.

Chavis Sefia provided public comment regarding the skate park at Kofu Park.

Lisa Craig provided public comment regarding traffic conditions and speeding.

Council Member Nakanishi provided a comment regarding fees paid to and by the Eastern San Joaquin Groundwater Joint Powers Authority to maintain groundwater sustainability for its members.

C-22 Set Public Hearing for September 27, 202 2 to Consider Adopting Resolution Approving 2021-22 Community Development Block Grant (CDBG) Consolidated Annual Performance and Evaluation Report (CAPER) (CD)
C-23 Set Public Hearing for October 19, 2022 to Consider Adopting Resolution Setting Future Solid Waste Rate Schedules Pursuant to Proposition 218 (PW) D. Comments by the Public on Non-Agenda Items THE TIME ALLOWED PER NON-

AGENDA ITEM FOR COMMENTS MADE BY THE PUBLIC IS LIMITED TO FIVE MINUTES.

E. Comments by the City Council Members on Non-Agenda Items F. Comments by the City Manager on Non-Agenda Items
G. Public Hearings
6 Notice thereof having been published according to law, an affidavit of which publication is on file in the office of the City Clerk, Mayor Chandler called for the public hearing to receive comments on and consider accepting the City of Lodi's Report on Water Quality Relative to Public Health Goals
Water Plant Superintendent Travis Kahrs provided a PowerPoint presentation regarding the water quality report. Specific topics of discussion included background, report guidelines, water sources and data considered, constituents over public health goal, current treatment, and compliance.

Discussion ensued between Council Member Nakanishi, Council Member Kuehne, Water Plant Superintendent Kahrs, and Public Works Director Charlie Swimley regarding maintenance of water distribution system, reactive flushing of groundwater, the current status of the wells, and the process of monitoring of wells and contaminants.

Mayor Chandler opened the public hearing for public comment.

There being no public comments, Mayor Chandler closed the public hearing.

Human Resources Manager Adele Post provided a report regarding the Memorandum of Understanding with the Lodi Professional Firefighters. Specific topics of discussion included term of agreement, wage adjustments, medical premium contributions, dental benefits, holiday leave bank, and wellness program.

Deputy City Manager Keys and Human Resources Manager Post thanked the Lodi Professional Firefighters and Fire Chief Ken Johnson for their time, collaboration, and participation throughout the negotiation process.

Council Member Nakanishi thanked City negotiators, Deputy City Manager Keys and Human Resources Manager Post, and Lodi Firefighters for working together on the Memorandum of Understanding.

Council Member Kuehne made a motion, second by Council Member Nakanishi, to adopt Resolution No. 2022-221 approving the Memorandum of Understanding between the City of Lodi and the Lodi Professional Firefighters for the period January 1, 2023 through December 31, 2025.

VOTE
:

The above motion carried by the following vote:

Ayes: Council Member Kuehne, Council Member Nakanishi, Mayor Pro Tempore Hothi, and Mayor Chandler
Noes: None

Absent: Council Member Khan
G-1 Public Hearing to Receive Comments on and Consider Accepting City of Lodi ’s Report on
Water Quality Relative to Public Health Goals (PW)
H. Regular Calendar
H-1 Adopt Resolution Approving Memorandum of Understanding Between City of Lodi and Lodi Professional Firefighters for Period January 1, 2023 through December 31, 2025 (HR) H-2 Adopt Resolution Approving Memorandum of Understanding Between City of Lodi and Lodi City Mid-Management Association for Period January 1, 2023 through December 31, 2025 (HR)
7 Deputy City Manager Keys thanked the Lodi City Mid-Management Association for their cooperation throughout the negotiation process.

Human Resources Manager Adele Post provided a report regarding the Memorandum of Understanding with the Lodi City Mid-Management Association. Specific topics of discussion included term of agreement, wage adjustments, medical premium contributions, dental benefits, and fixed holiday leave.

Council Member Kuehne made a motion, second by Mayor Pro Tempore Hothi, to adopt Resolution No. 2022-222 approving the Memorandum of Understanding between the City of Lodi and the Lodi City Mid-Management Association for the period January 1, 2023 through December 31, 2025.

VOTE:

The above motion carried by the following vote:

Ayes: Council Member Kuehne, Council Member Nakanishi, Mayor Pro Tempore Hothi, and Mayor Chandler
Noes: None

Absent: Council Member Khan
Deputy City Manager Keys provided a report regarding the compensation and benefits for confidential mid-management employees, mirroring the compensation and benefits of the Lodi City Mid-Management Association.

Council Member Kuehne made a motion, second by Council Member Nakanishi, to adopt Resolution No. 2022-223 approving compensation and other benefits for confidential mid- management employees for the period January 1, 2023 through December 31, 2025.

VOTE
:

The above motion carried by the following vote:

Ayes: Council Member Kuehne, Council Member Nakanishi, Mayor Pro Tempore Hothi, and Mayor Chandler
Noes: None

Absent: Council Member Khan
Deputy City Manager Keys provided a report regarding the addition of one Customer Service Representative in the Finance Division of the Internal Services Department. Specific topics of discussion included growth in accounts within the Finance Division, anticipated additional growth due to SB 1383, and backlog due to staff shortages.

Mayor Chandler made a motion, second by Mayor Pro Tempore Hothi, to adopt Resolution No. 2022-224 approving the addition of one Customer Service Representative in the Finance Division of Internal Services Department and appropriating funds in the amount of $67,800.

VOTE
:

The above motion carried by the following vote:

H-3 Adopt Resolution Approving Compensation and Other Benefits for Confidential Mid- Management Employees for Period January 1, 2023 through December 31, 2025 (HR) H-4 Adopt Resolution Approving Addition of One Customer Service Representative in Finance Division of Internal Services Department and to Appropriate Funds ($67,800) (HR) 8 Ayes: Council Member Kuehne, Council Member Nakanishi, Mayor Pro Tempore Hothi, and Mayor Chandler
Noes: None

Absent: Council Member Khan
Human Resources Manager Adele Post provided a report regarding the amendment to the hiring bonus and employee referral program to include the position of Lateral Dispatcher/Jailer. Specific topics of discussion included recruitment challenges, the uniqueness of the position, and the advantage of amending the hiring bonus to attract lateral transitions.

Mayor Pro Tempore Hothi made a motion, second by Council Member Nakanishi, to adopt Resolution No. 2022-225 approving the amendment to the hiring bonus and employee referral program to include the position of Lateral Dispatcher/Jailer.

VOTE
:

The above motion carried by the following vote:

Ayes: Council Member Kuehne, Council Member Nakanishi, Mayor Pro Tempore Hothi, and Mayor Chandler
Noes: None

Absent: Council Member Khan
Human Resources Manager Adele Post provided a report on the salary adjustment for the City Planner classification. Specific topics of discussion included challenges of hiring applicants due to salary and conducting a salary survey of surrounding areas.

Council Member Nakanishi asked if the salary adjustment will increase the responsibilities of the of the City Planner position. Deputy City Manager Keys responded that the City currently does not have anyone in that role and the purpose of the salary adjustment is to attract a qualified individual for the role.

Mayor Chandler and Council Member Kuehne expressed their support of this item.

Mayor Chandler made a motion, second by Council Member Kuehne, to adopt Resolution No. 2022-226 approving the salary adjustment for City Planner classification.

VOTE
:

The above motion carried by the following vote:

Ayes: Council Member Kuehne, Council Member Nakanishi, Mayor Pro Tempore Hothi, and Mayor Chandler
Noes: None

Absent: Council Member Khan
City Clerk Nashed provided a brief report.

H-5 Adopt Resolution Approving Amendment to Hiring Bonus and Employee Referral Program to Include Lateral Dispatcher/Jailer (HR)
H-6 Adopt Resolution Approving Salary Adjustment for City Planner Classification (HR) I. Ordinances
I-1 Adopt Ordinance No. 2004 Entitled, “An Ordinance of the Lodi City Council Repealing and Reenacting Lodi Municipal Code Chapter 13.04, ‘Service Generally,’ in Its Entirety” (CLK) 9 Mayor Pro Tempore Hothi made a motion, second by Council Member Nakanishi, (following reading of the title) to waive reading of the ordinance in full and adopt and order to print Ordinance No. 2004 entitled, "An Ordinance of the Lodi City Council Repealing and Reenacting Lodi Municipal Code Chapter 13.04, 'Service Generally,' in Its Entirety," which was introduced at a regular meeting of the Lodi City Council held August 17, 2022.

VOTE:

The above motion carried by the following vote:

Ayes: Council Member Kuehne, Council Member Nakanishi, Mayor Pro Tempore Hothi, and Mayor Chandler
Noes: None

Absent: Council Member Khan
There being no further business to come before the City Council, the meeting was adjourned at 8:38 p.m.

J
. Adjournment
ATTEST:

Olivia Nashed
City Clerk
10 LODI CITY COUNCIL

REGULAR CITY COUNCIL MEETING
CARNEGIE FORUM, 305 WEST PINE STREET
WEDNESDAY, OCTOBER 5, 2022
The City Council Closed Session meeting of October 19, 2022, was called to order by Mayor Chandler at 6:31 p.m.

Present: Council Member Khan, Council Member Kuehne, Council Member Nakanishi, Mayor Pro Tempore Hothi, and Mayor Chandler

Absent: None
Also Present: City Manager Schwabauer, City Attorney Magdich, and City Clerk Nashed At 6:31 p.m., Mayor Chandler adjourned the meeting to a Closed Session to discuss the above matters. The Closed Session adjourned at 7:00p.m.

At 7:00 p.m., Mayor Chandler reconvened the City Council meeting, and City Attorney Magdich disclosed the following actions.

Item C-2a) was discussion only, with further reportable action.

Item C-2b) was discussion and direction, with no further reportable action.

The Regular City Council meeting of October 19, 2022, was called to order by Mayor Chandler at 7:03 p.m.

Present: Council Member Khan, Council Member Kuehne, Council Member Nakanishi, Mayor Pro Tempore Hothi, and Mayor Chandler

Absent: None
Also Present: City Manager Schwabauer, City Attorney Magdich, and City Clerk Nashed C-1 Call to Order / Roll Call
C-2 Announcement of Closed Session
a) Pending Litigation: Government Code §54956.9(a). One Case. City of Lodi v. Shell Oil Company, et al., San Joaquin County Superior Court, Case No. STK-CV-UETT-2020- 9894; Judicial Council Coordination Proceeding 4435 – TCP Cases, San Bernardino County Superior Court, Case No. JCPSS4435/SCVSS12067 (CA) b) Conference with Adele Post, Human Resources Manager, and Andrew Keys, Deputy City Manager (Labor Negotiators), Regarding Lodi Professional Firefighters, Lodi Police Dispatchers Association, AFSCME General Services and Maintenance & Operators, Confidential General Services, Executive Managers, and Appointed Employees Pursuant to Government Code §54957.6 (CM)
C-3 Adjourn to Closed Session
C-4 Return to Open Session / Disclosure of Actio n
A. Call to Order / Roll Call
B. Presentations
1 Exhibit B
Mayor Chandler presented a proclamation to Information Technology Manager Benjamin Buecher declaring October 2022 as Cybersecurity Awareness Month in the City of Lodi.

Mayor Chandler presented a proclamation to Elizabeth Sanchez, Community Engagement and Education Program Manager with the Women's Center-Youth & Family Services, proclaiming October 2022 as Domestic Violence Awareness Month in the City of Lodi.

Mayor Chandler presented a proclamation to Lodi Fire Chief Ken Johnson proclaiming October 9 through 15, 2022 as Fire Prevention Week in the City of Lodi.

Mayor Chandler presented a proclamation to Lodi Electric Utility Department Senior Administrative Clerk Justine Delgado proclaiming October 16 through 22, 2022, as Public Power Week in the City of Lodi.

Mayor Pro Tempore Hothi made a motion, second by Council Member Nakanishi, to approve the following items hereinafter set forth, except those otherwise noted, in accordance with the report and recommendation of the City Manager.

VOTE:

The above motion carried by the following vote:

Ayes: Council Member Khan, Council Member Kuehne, Council Member Nakanishi, Mayor Pro Tempore Hothi, and Mayor Chandler
Noes: None

Absent: None
Claims were approved in the amount of $3,193,856.02.

The minutes of August 3, 2022 (Regular Meeting), August 9, 2022 (Shirtsleeve Session), and September 20, 2022 (Shirtsleeve Session) were approved as written.

B-1 Cybersecurity Awareness Month Proclamation (ISD)
B-2 Domestic Violence Awaren ess Month Proclamation (CLK) B-3 Fire Prevention Week Proclamation (FD)
B-4 Public Power Week Proclamation (EU)
C. Consent Calendar (Reading; Comments by the Public; Council Action) All matters listed on the consent calendar are considered to be routine and will be acted upon by one motion.

There will be no separate discussion of these items. If a member of the public would like a consent calendar item pulled and discussed separately, refer to the Notice at the beginning of this agenda.

C-1 Receive Register of Claims for September 2, 2022 through September 15, 2022 in the Total Amount of $3,193,856.02 (FIN)
C-2 Approve Minutes (CLK)
C-3 Adopt Resolution Accepting Public Improvements of Tienda Square Subdivision, Tract No. 4003 (PW)
2 Adopted Resolution No. 2022-228 accepting the public improvements of Tienda Square Subdivision, Tract No. 4003.

Adopted Resolution No. 2022-229 authorizing the City Manager to execute an Improvement Agreement for 620 South Central Avenue Public Improvements.

Adopted Resolution No. 2022-230 authorizing the City Manager to execute a five-year Professional Services Agreement with Vertical Communications, Inc., of Phoenix, Arizona, to manage and support phone services from 8x8, Inc., of San Jose, in an amount not to exceed $855,000, and appropriating funds in the amount of $171,000.

Adopted Resolution No. 2022-231 authorizing the City Manager to execute Amendment No. 2 to the Construction Services Agreement with Ranse Gale Construction for additional services related to the development of the Harmony Homes Project, in an amount not to exceed $15,000.

Adopted Resolution No. 2022-232 authorizing the City Manager to execute Amendment No. 2 to the Professional Services Agreement with WMB Architects, of Stockton, for Tony Zupo Field Fire Restoration Project design services, in the amount of $20,000.

Adopted Resolution No. 2022-233 authorizing the City Manager to execute Amendment No. 3 to extend Measure K Renewal Cooperative Agreement with San Joaquin Council of Governments for GrapeLine operations revenue for Fiscal Year 2022/23, in the amount of $400,000.

Adopted Resolution No. 2022-234 authorizing the City Manager to execute Amendment No. 2 to the Professional Services Agreement with Carollo Engineers, Inc., of Walnut Creek, for solids handling facility improvements design and engineering services, in the amount of $170,000.

C-4
Adopt Resolution Authorizing City Manager to Execute Improvement Agreement for 620 South Central Avenue Public Improvements (PW)
C-5 Adopt Resolution Authorizing City Manager to Execute a Five-Year Professional Services Agreement with Vertical Communications, Inc., of Phoenix, Arizona, to Manage and Support Phone Services from 8x8 Inc., of San Jose (Not to Exceed $855,000) and Appropriating Funds ($171,000) (ISD)
C-6 Adopt Resolution Authorizing City Manager to Execute Amendment No. 2 to Construction Services Agreement with Ranse Gale Construction for Additional Services Related to Development of Harmony Homes Project (Not to Exceed $15,000) (CD) C-7 Adopt Resolution Authorizing City Manager to Execute Amendment No. 2 to Professional Services Agreement with WMB Architects, of Stockton, for Tony Zupo Field Fire Restoration Project Design Services ($20,000) (PW)
C-8 Adopt Resolution Authorizing City Manager to Execute Amendment No. 3 to Extend Measure K Renewal Cooperative Agreement with San Joaquin Council of Governments for GrapeLine Operations Revenue for Fiscal Year 2022/23 ($400,000) (PW) C-9 Adopt Resolution Authorizing City Manager to Execute Amendment No. 2 with Carollo Engineers, Inc., of Walnut Creek, for Solids Handling Facility Improvements Design and Engineering Services ($170,000) (PW)
C-10 Adopt Resolution Authorizing City Manager to Execute Amendment No. 2 to Professional Services Agreement with Wilson Consulting, of San Clemente, for Lodi Electric Utility 3 Adopt Resolution No. 2022-235 authorizing the City Manager to execute Amendment No. 2 to the Professional Services Agreement with Wilson Consulting, of San Clemente, for Lodi Electric Utility organizational gap analysis and preferred work methods development services, in the amount of $75,000.

Adopted Resolution No. 2022-236 authorizing the City Manager to execute Confirmation No. 0269 under Northern California Power Agency Support Services Program Agreement for after hours answering and dispatch services for Electric Utility and Public Works Departments for a period of three years, in the amount of $281,460.

This item was pulled by Council Member Nakanishi.

Discussion ensued between Council Member Nakanishi, Chief of Police Sierra Brucia, and City Manager Schwabauer regarding the application submitted for the grant annually, how the grant money is utilized, and resident concerns regarding speed limits in certain areas.

Mayor Pro Tempore Hothi made a motion, second by Council Member Nakanishi, to adopt Resolution No. 2022-237 authorizing the Lodi Police Department to participate in the Selective Traffic Enforcement Program Grant funded by the Office of Traffic Safety; authorizing the City Manager to execute grant documents on behalf of the City of Lodi; and appropriate funds in the amount of $150,000.

VOTE:

The above motion carried by the following vote:

Ayes: Council Member Khan, Council Member Kuehne, Council Member Nakanishi, Mayor Pro Tempore Hothi, and Mayor Chandler
Noes: None

Absent: None
This item was pulled by Mayor Pro Tempore Hothi.

Business Development Manager Astrida Trupovnieks provided a report regarding utilization rates of the existing electric vehicle chargers programs and the status of the implementation of the customer rebates program.

Mayor Pro Tempore Hothi made a motion, second by Council Member Nakanishi, to adopt Resolution No. 2022-238 amending Lodi Electric Utility Electric Vehicle Strategy by revising and Organizational Gap Analysis and Preferred Work Methods Development Services ($75,000) (EU)
C-11 Adopt Resolution Authorizing City Manager to Execute Confirmation No. 0269 Under Northern California Power Agency Support Services Program Agreement for After Hours Answering and Dispatch Services for Electric Utility and Public Works Departments for a Period of Three Years ($281,460) (EU/PW)
C-12 Adopt Resolution Authorizing Lodi Police Department to Participate in Selective Traffic Enforcement Program Grant Funded by Office of Traffic Safety; Authorizing City Manager to Execute Grant Documents on Behalf of the City of Lodi; and Appropriate Funds ($150,000) (PD)
C-13 Adopt Resolution Amending Lodi Electric Utility Electric Vehicle Strategy by Revising and Adding Customer Rebates and Incentives (EU)
4 adding customer rebates and incentives.

VOTE:

The above motion carried by the following vote:

Ayes: Council Member Khan, Council Member Kuehne, Council Member Nakanishi, Mayor Pro Tempore Hothi, and Mayor Chandler
Noes: None

Absent: None
Adopted Resolution No. 2022-239 authorizing the appropriation of funds to Substation Relay Modernization Capital Improvement Project for Fiscal Year 2023, in the amount of $200,000.

Adopted Resolution No. 2022-240 appropriating funds for Municipal Service Center forklift in the amount of $40,000.

Adopted Resolution No. 2022-241 approving Year 2022 amendments to Conflict of Interest Code Government Code Section 87306.5.

Rescinded Resolution No. 2022-58 and adopted Resolution No. 2022-242 authorizing the issuance of procurement cards to specified positions.

Made the following appointments and directed the City Clerk to post for the following expired terms:

APPOINTMENTS:

Planning Commission
Magdalena Saldana - Term to expire June 30, 2026
Megan Eddy - Term to expire June 30, 2026
Lodi Arts Commission
Clare Bhakta - Term to expire July 1, 2025
Geneva Mello - Term to expire July 1, 2025
Hayley Johns - Term to expire July 1, 2025
Greater Lodi Area Youth Commission
Zoe S. Bertsch - Term to expire May 31, 2024
C-14 Adopt Resolution Authorizing Appropriation of Funds to Substation Relay Modernization Capital Improvement Project for Fiscal Year 2023 ($200,000) (EU) C-15 Adopt Resolution Appropriating Funds for Municipal Service Center Forklift ($40,000) (PW) C-16 Adopt Resolution Approving Year 2022 Amendments to Conflict of Interest Code Government Code Section 87306.5 (CA)
C-17 Rescind Resolution 2022-58 and Adopt Resolution Authorizing Issuance of Procurement Cards to Specified Positions (ISD)
C-18 Appoint Magdalena Saldana and Megan Eddy to the Planning Commission; Clare Bhakta, Geneva Mello, and Hayley Johns to the Lodi Arts Commission; and Zoe S. Bertsch to the Greater Lodi Area Youth Commission; and Post for One Vacancy for a Greater Lodi Area Youth Commission Adult Advisor (CLK)
5 POSTING:

Greater Lodi Area Youth Commission - Adult Advisor
Jennifer Phillips-Lorentzen - Term to expire May 31, 2023 Set a public hearing for October 19, 2022 to consider an ordinance amending Lodi Municipal Code Title 17 – Development Code – to implement Senate Bill 9 pertaining to “Urban Lot Splits” and “Two Unit Urban Residential Development” in Residential Low-Density Zoning District.

Manny Chin provided public comment thanking the Police Department for keeping Lodi safe and suggested the Police Department budget be increased during the next budget cycle.

Council Member Nakanishi stated that he is in support of adding police officer positions due to growth and traffic concerns.

Mayor Chandler invited Chief of Police Brucia to speak on the current staff conditions at the Lodi Police Department.

Chief of Police Brucia thanked Manny Chin for his comment and provided a report regarding staffing and duties of various positions. City Manager Schwabauer noted that since 2018, there have been eight sworn positions added to the Police Department.

Council Member Khan thanked the Code Enforcement Division, Public Works Department, and Community Development Department for cleaning up a property with violations. Council Member Khan also asked for the status of two agenda items, street sweeping and proactive code enforcement, approved at the August 3, 2022 City Council meeting. Public Works Director Charlie Swimley provided an update stating that a street sweeping plan with be presented to Council in November. City Manager Schwabauer provided an update stating that the Code Enforcement Division is fully staffed and is currently proactively patrolling for violations of the Lodi Municipal Code. Council Member Khan stated that there has been a notable difference and thanked staff.

Council Member Kuehne stated he was looking forward to the Goal Setting update, announced the ground breaking event of the State Route 99/Turner Road project will be held on October 26 at 9:00 a.m., announced that State Route 99 will be expanded from two lanes to three lanes, and provided an update regarding artwork at State Route 99/Turner Road and artwork at Interstate 5 near Flag City.

None.

C-19 Set Public Hearing for October 19, 2022 to Consider Ordinance Amending Lodi Municipal Code Title 17 – Development Code – to Implement Senate Bill 9 Pertaining to “Urban Lot Splits” and “Two Unit Urban Residential Development” in Residential Low-Density Zoning District (CD)
D. Comments by the Public on No n-Agenda Items THE TIME ALLOWED PER NON-

AGENDA ITEM FOR COMMENTS MADE BY THE PUBLIC IS LIMITED TO FIVE MINUTES.

E. Comments by the City Council Members on Non-Agenda Items F. Comments by the City Manager on No n-Agenda Items
G. Public Hearings – None
6 Public Works Director Swimley provided a report regarding the early recruitment of a Management Analyst position for Public Works solid waste support. Specific topics of discussion included duties of current Management Analyst position, impact of requirements of Senate Bill 1383, timeline of recruitment and funding sources.

Council Member Nakanishi stated the City hires additional employees to fulfill the mandates of Senate Bill 1383.

Council Member Nakanishi made a motion, second by Council Member Khan, to authorize the early recruitment of a Management Analyst position for Public Works solid waste support.

VOTE:

The above motion carried by the following vote:

Ayes: Council Member Khan, Council Member Kuehne, Council Member Nakanishi, Mayor Pro Tempore Hothi, and Mayor Chandler
Noes: None

Absent: None
Mayor Chandler presented a proclamation to the Hutchins Street Square Foundation in recognition of their continuous generous support.

City Manager Schwabauer provided a brief report on the donation from Hutchins Street Square Foundation to be accepted by Council through a vote.

Council Member Kuehne made a motion, second by Council Member Nakanishi, to adopt Resolution No. 2022-243 accepting the Hutchins Street Square Foundation donation of a light board for the Charlene Powers Lange Performing Arts Theatre and two pool heaters for the Hutchins Street Square indoor pool.

VOTE:

The above motion carried by the following vote:

Ayes: Council Member Khan, Council Member Kuehne, Council Member Nakanishi, Mayor Pro Tempore Hothi, and Mayor Chandler
Noes: None

Absent: None
City Manager Schwabauer provided a presentation regarding the development, construction, and operation of a natural gas power plant in the City of Lodi. Specific topics of discussion included H. Regular Calenda
r
H-1 Authorize Early Recruitment of Management Analyst Position for Public Works Solid Waste Support (PW)
H-2 Adopt Resolution Accepting Hutchins Street Square Foundation Donation of Light Board for Charlene Powers Lange Performing Arts Theatre and Two Pool Heaters for Hutchins Street Square Indoor Pool and Present Hutchins Street Square Foundation with Proclamation for Their Continuous Financial Report Through Their Generous Financial and Materials Donations in 2021 and 2022 ($80,592.55) (PRCS) H-3 Adopt Resolution Authorizing City Manager to Enter into All Agreements Necessary to Locate, Develop, Construct, and Operate a 20-48 MW State of California Funded Natural Gas Power Plant in the City of Lodi (CM)
7 recent power outage due to a failure in relay of a PG&E transmitter, a State-funded program to construct generation for emergency power, timeline of project, CEQA requirements, requirements of location of power plant, possible sites, State funding of project, reviewed all authorities requested to be granted to City Manager by City Council to proceed with the project, and benefits of project to the State and to the City of Lodi.

Council discussion ensued with City Manager Schwabauer and Electric Utility Director Jeff Berkheimer regarding the duties of California ISO, the qualifications of Enchanted Rock, possible costs incurred by the City of Lodi and the State of California, and the distinction that this project is a peaker plant.

Enchanted Rock representative Allan Schurr stated that Enchanted Rock is excited to work with the City of Lodi on this project.

Mayor Chandler made a motion, second by Council Member Nakanishi, to adopt Resolution No. 2022-244 authorizing the City Manager to enter into all agreements necessary to locate, develop, construct, and operate a 20-48 MW State of California funded natural gas power plant in the City of Lodi.

VOTE:

The above motion carried by the following vote:

Ayes: Council Member Khan, Council Member Kuehne, Council Member Nakanishi, Mayor Pro Tempore Hothi, and Mayor Chandler
Noes: None

Absent: None
There being no further business to come before the City Council, the meeting was adjourned at 8:03 p.m., in memory of Bill Mendelson.

I. Ordinances – None
J. Adjournment
ATTEST:

Olivia Nashed
City Clerk
8 LODI CITY COUNCIL

SHIRTSLEEVE SESSION
CARNEGIE FORUM, 305 WEST PINE STREET
TUESDAY, OCTOBER 18, 2022
The October 18, 2022, Informal Informational Meeting ("Shirtsleeve" Session) of the Lodi City Council was canceled.

ATTEST:

Olivia Nashed
City Clerk
1 Exhibit C

LODI CITY COUNCIL

SHIRTSLEEVE SESSION
CARNEGIE FORUM, 305 WEST PINE STREET
TUESDAY, OCTOBER 25, 2022
The October 25, 2022, Informal Informational Meeting ("Shirtsleeve" Session) of the Lodi City Council was canceled.

ATTEST:

Olivia Nashed
City Clerk
1 Exhibit D
AGENDA ITEM C-03

COUNCIL COMMUNICATION
APPROVED: ________________________________
Stephen Schwabauer, City Manager
\\cvcfilv02\pubwks$\Transit\13) Procurements & Projects (add to file 12)\Bus Procurements\Gillig - 2022 Bus Purchase\CC_ Gillig 6 Bus Procurement 2022.docx 10/19/2022 AGENDA TITLE: Adopt Resolution Authorizing Purchase of Six 29-Foot Compressed Natural Gas, Low - Floor Buses from Gillig, LLC, of Livermore (Not -to-Exceed $3,900,000), Utilizing Washington State Department of Enterprise Services Cooperative Purchasing Agreement (Master Contract No. 06719), and Authorizing City Manager to Execute All Necessary Documents
MEETING DATE: November 2, 2022
PREPARED BY: Public Works Director
RECOMMENDED ACTION: Adopt resolution authorizing purchase of six 29 -foot compressed natural gas, low-floor buses from Gillig, LLC, of Livermore, in an amount not-to- exceed $3,900,000, utilizing Washington State Department of Enterprise Services Cooperative Purchasing Agreement (Master Contract No. 06719), and authorizing City Manager to execute all necessary documents.

BACKGROUND INFORMATION: The City of Lodi currently operates and maintains 25 transit vehicles to provide the GrapeLine fixed route service, VineLine Americans with Disabilities Act (ADA)/Paratransit service, and the general public Dial-A- Ride service. Six (6) of the vehicles in the fleet are 32-foot 2012 El Dorado EZ Riders, which in 2024, will reach their useful life in terms of age (12 years), in accordance with Federal Transit Administration vehicle useful life schedules and certifications. As the vehicles being replaced are reaching their end of life, they are frequently breaking down resulting in service disruptions, costly repairs, and increased maintenance staff time.

In anticipation of this vehicle replacement timeline, the City submitted a Federal Transit Administration (FTA) grant application to apply $1,967,068 in FY 20 and FY 21 Section 5307 funds for the replacement bus purchase.

The City was awarded the $1,967,068, with a $1,932,932 local match in Transportation Development Act (TDA) funds, for a total grant amount of $3,900,000.

T
he funds allow the City to purchase six (6) new 29-foot, low floor, CNG fueled buses made by Gillig LLC in Livermore, CA. They are equipped with well-supported engines made by Cummins and Americans with Disabilities Act (ADA)-compliant ramps. When placed in service, the proposed new buses will be utilized on all fixed routes, rotating between the five weekday, three express, and four weekend routes. Rotating each new vehicle into regular service as they are delivered to the City, will reduce wear and tear on the City’s existing fixed route buses and will increase the availability of spare buses when one is removed from service for preventative maintenance or repairs. During the transition, operating costs are also expected to decrease, due to the increased mechanical reliability of the new buses. The existing El Dorado buses will be decommissioned and sold at auction.

P
er Lodi Municipal Code Section 3.20.045, State and Local Agency Contracts, the bidding process may be waived when it is advantageous for the City, with appropriate approval by the City Manager and City Council, to use contracts that have been awarded by other public agencies, provided that their award was in compliance with their formally-adopted bidding or negotiation procedures. Purchasing the buses utilizing the WSDOT contract saves the City of Lodi time and money.

Adopt Resolution Authorizing Purchase of Six 29-Foot Compressed Natural Gas, Low-Floor Buses from Gillig, LLC, of Livermore ($3,864,780), Utilizing Washington State Department of Enterprise Services Cooperative Purchasing Agreement (Master Contract No. 06719), and Authorizing Public Works Director to Execute All Necessary Documents
November 2, 2022

Total purchase cost is estimated to be $3,864,780 including delivery and contingencies. An appropriation of $3,900,000 ($1,967,068/FTA; $1,932,932/TDA) is included in the 2022/23 budget for this project.

FISCAL IMPACT: Maintenance costs for the new buses are included in the current Transit operating budget. If the bus purchase is not approved, the City will not be compliant with FTA guidelines in maintaining transit vehicles in a state of good repair, potentially negatively impacting future funding. The six existing buses will be disposed of at public auction in accordance with FTA guidelines, and any proceeds over $5,000 per bus will be applied to this purchase. The project does not impact the General Fund.

FUNDING AVAILABLE: Budgeted Fiscal Year 2022/23:

FTA (60199000) $1,967,068
TDA (60199000) $1,932,932
TOTAL: $3,900,000

______________________________________
Andrew Keys
Deputy City Manager/Internal Services Director

_____________________________________
Charles E. Swimley, Jr.

Public Works Director

Prepared by: Julia Tyack, Transportation Manager
CES/JMT/cd
Attachment

cc: Fleet Services Supervisor
Transdev General Manager, Kyle Eggen
Gillig, LLC, Regional Sales Manager, Sean Solis
RESOLUTION NO. 2022-____

A RESOLUTION OF THE LODI CITY COUNCIL AUTHORIZING THE PURCHASE OF SIX 29-FOOT COMPRESSED NATURAL GAS LOW-FLOOR BUSES FROM

GILLIG, LLC, OF LIVERMORE, UTILIZING WASHINGTON STATE DEPARTMENT

OF ENTERPRISE SERVICES COOPERATIVE PURCHASING AGREEMENT (MASTER CONTRACT NO. 06719); AND AUTHORIZING THE CITY MANAGER TO

EXECUTE ALL NECESSARY DOCUMENTS
========================================================================

WHEREAS, the City of Lodi currently operates and maintains 25 transit vehicles to provide the GrapeLine fixed route service, VineLine Americans with Disabilities Act (ADA)/Paratransit service, and the general public Dial-A-Ride service; and

WHEREAS, six of the vehicles in the fleet are 32- foot 2012 El Dorado EZ Riders, which in 2024 will reach their useful life in terms of age (12 years), in accordance with Federal Transit Administration vehicle useful life schedules and certifications; and

WHEREAS, in anticipation of this vehicle replacement timeline, the City submitted a Federal Transit Administration grant application to apply $1,967,068 in FY 20 and FY 21 Section 5307 funds for the replacement bus purchase and t he City was awarded the $1,967,068, with a $1,932,932 local match in Transportation Development Act funds, for a total grant amount of $3,900,000; and

WHEREAS, staff recommends authorizing the purchase of six 29- foot compressed natural gas low -floor buses from Gillig, LLC, of Livermore, in an amount not to exceed $3,900,000, utilizing Washington State Department of Enterprise Services Cooperative Purchasing Agreement (Master Contract No. 06719), and authorizing the City Manager to execute all necessary documents.

NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby authorize the purchase of six 29- foot compressed natural gas low -floor buses from Gillig, LLC, of Livermore, California, in an amount not to exceed $3,900,000, utilizing Washington State Department of Enterprise Services Cooperative Purchasing Agreement (Master Contract No. 06719); and

BE IT FURTHER RESOLVED that the Lodi City Council does hereby authoriz e the City Manager to execute all necessary documents; and

BE IT FURTHER RESOLVED, pursuant to Section 6.3q of the City Council Protocol Manual (adopted 11/6/19, Resolution No. 2019- 223), the City Attorney is hereby authorized to make minor revisions to the above- referenced document(s) that do not alter the compensation or term, and to make clerical corrections as necessary.

Dated: November 2, 2022
=======================================================================

I hereby certi fy that Resolution No. 2022-__ was passed and adopted by the City Council of the City of Lodi in a regular meeting held November 2, 2022 by the following votes:

AYES: COUNCIL MEMBERS –

NOES: COUNCIL MEMBERS –

ABSENT: COUNCIL MEMBERS –

ABSTAIN: COUNCIL MEMBERS –

OLIVIA NASHED
City Clerk
2022-_____
AGENDA ITEM C-04

COUNCIL COMMUNICATION
APP
ROVED: _________________________________
Stephen Schwabauer, City Manager
\\cvcfilv02\pubwks$\WP\PROJECTS\PARKS\Peterson Park\Tennis Court Resurfacing\CSA - Reject-Rebid.doc 10/19/2022 AGENDA TITLE: Adopt Resolution Rejecting All Bids, Approve Revised Specifications, Authorize Re- Advertisement for Bids, Authorize City Manager to Award Contract to Lowest, Responsive Bidder for Peterson Park Tennis Court Resurfacing ($60,000), and Authorize City Manager to Execute Change Orders ($5,000) M
EETING DATE: November 2, 2022
P
REPARED BY: Public Works Director
RE
COMMENDED ACTION: Adopt resolution rejecting all bids, approve revised specifications, authorize re-advertisement for bids, authorize City Manager to award Contract to lowest, responsive bidder for Peterson Park Tennis Court Resurfacing, in an amount not-to-exceed $60,000, and authorize City Manager to execute change orders in an amount not-to-exceed $5,000.

B
ACKGROUND INFORMATION: Council approved the Peterson Park Tennis Court Resurfacing specifications and authorized advertisement for bids on September 21, 2022. This contract was originally intended to fill minor joints and cracks, repair low spots and apply a textured, color surfacing system consisting of new acrylic coatings and new textured game lines.

T
he City received the following three bids on October 13, 2022:

Above/(Below)
Bidder Location Bid Engineer’s Estimate
Engineers Estimate $53,000.00
*Vintage Contractors, Inc. San Francisco *$38,750.00 ($14,250.00) First Serve Production, Inc. Meadow Vista $44,900.00 (8,100.00) Courts and Greens, Inc. Bakersfield **$55,100.00 (2,100.00) *Not opened at the public bid opening
**Bid proposal was deemed nonresponsive as it was not labeled per Specifications and no Receipt of Addendum was included. It was not opened at the public bid opening.

T
he bid package from Vintage Contractors, Inc. was a responsive bid received prior to the bid opening.

However, the bid package was inadvertently misplaced and then opened after the public bid opening. As the City Clerk was not present, nor was the bid opened in a public setting, staff recommends rejecting all bids and re-advertising to fully ensure compliance to Public Contract Code.

T
he scope of the project has been revised to include a crack repair system to address the more significant cracks in the court surface. The system is estimated to cost an additional $12,000. Cracks will be filled and taped with a two-layer taping system which will significantly prolong court life. The revised specifications which include the crack repair system, are on file in the Public Works Department. The planned re-bid opening date is November 29, 2022. The estimate remains at $53,000.

Adopt Resolution Rejecting All Bids, Approving Revised Specifications, Authorize Re-Advertisement for Bids, Authorize City Manager to Award Contract to Lowest, Responsive Bidder for Peterson Park Tennis Court Resurfacing ($60,000), and Authorize City Manager to Execute Change Orders ($5,000) November 2, 2022

\\cvcfilv02\pubwks$\WP\PROJECTS\PARKS\Peterson Park\Tennis Court Resurfacing\CSA - Reject-Rebid.doc 10/19/2022

FISCAL IMPACT: This project will have a minimal long-term fiscal impact and will not impact the General Fund.

FUNDING AVAILABLE: Parks Capital (43299000.77020) - $60,000

______________________________________
Andrew Keys
Deputy City Manager/Internal Services Director

_______________________________
Charles E. Swimley, Jr.

Public Works Director

Prepared by Jimi Billigmeier, Associate Civil Engineer
CES/JB/cd
cc: PRCS Director

RESOLUTION NO. 2022-____

A RESOLUTION OF THE LODI CITY COUNCIL REJECTING ALL BIDS; APPROVING REVISED SPECIFICATIONS; AUTHORIZING
RE-ADVERTISEMENT FOR BIDS; AUTHORIZING THE CITY MANAGER TO

AWARD A CONTRACT TO THE LOWEST RESPONSIVE BIDDER FOR
PETERSON PARK TENNIS COURT RESURFACING; AND AUTHORIZING

THE CITY MANAGER TO EXECUTE CHANGE ORDERS
========================================================================

WHEREAS, Council approved the Peterson Park Tennis Court Resurfacing specifications and authorized advertisement for bids on September 21, 2022; and

WHEREAS, the City received the following three bids on October 13, 2022:

Above/(Below)
Bidder Location Bid Engineer’s Estimate
Vintage Contractors, Inc. San Francisco * $38,750 ($14,250) First Serve Production, Inc. Meadow Vista $44,900 ($8,100) Courts and Greens, Inc. Bakersfield **$55,100 ($2,100) *Not opened at the public bid opening
**Bid proposal was deemed nonresponsive as it was not labeled per Specifications and no Receipt of Addendum was included. It was not opened at the public bid opening.

WHEREAS, the bid package from Vintage Contractors, Inc. , was a responsive bid received prior to the bid opening which was inadvertently misplaced and then opened after the public bid opening. As the City Clerk was not present, nor was the bid opened in a public setting, staff recommends rejecting all bids and re- advertising to fully ensure compliance to Public Contract Code; and

WHEREAS, staff recommends rejecting all bids, approving r evised specifications, authorizing re-advertisement for bids, authorizing the City Manager to award a c ontract to the lowest responsive bidder for Peterson Park Tennis Court Resurfacing, in an amount not to exceed $60,000, and authoriz ing the City Manager to execute change orders in an amount not to exceed $5,000.

NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby reject all bids for Peterson Park Tennis Court Resurfacing; and

BE IT FURTHER RESOLVED that the Lodi City Council does hereby approve the revised specifications and authorize re-advertisement for bids; and

BE IT FURTHER RESOLVED that the Lodi City Council does hereby authorize the City Manager to award a c ontract to the lowest responsive bidder for Peterson Par k Tennis Court Resurfacing in an amount not to exceed $60,000; and

BE IT FURTHER RESOLVED that the Lodi City Council does hereby authorize the City Manager to execute the contract and change orders in an amount not to exceed $5,000; and

BE IT FURTHER RES OLVED, pursuant to Section 6.3q of the City Council Protocol Manual (adopted 11/6/19, Resolution No. 2019- 223), the City Attorney is hereby authorized to make minor revisions to the above- referenced document(s) that do not alter the compensation or term, and to make clerical corrections as necessary.

Dated: November 2, 2022
========================================================================

I hereby certi fy that Resolution No. 2022-____ was passed and adopted by the City Council of the City of Lodi in a regular meeting held November 2, 2022 by the following votes:

AYES: COUNCIL MEMBERS –

NOES: COUNCIL MEMBERS –

ABSENT: COUNCIL MEMBERS –

ABSTAIN: COUNCIL MEMBERS –

OLIVIA NASHED
City Clerk

2022-_____
AGENDA ITEM C-05

COUNCIL COMMUNICATION
APPROVED: ________________________________
Stephen Schwabauer, City Manager
\\cvcfilv02\pubwks$\WP\COUNCIL\2022\CC Cintas Amend No.1.docx 10/17/2022 AGENDA TITLE: Adopt Resolution Authorizing City Manager to Execute Amendment No. 1 to Contract with Cintas Corporation No. 3, for Rental and Cleaning of Uniforms for Certain Field and Warehouse Employees ($200,000)
MEETING DATE: November 2, 2022
PREPARED BY: Public Works Director
RECOMMENDED ACTION: Adopt Resolution Authorizing City Manager to Execute Amendment No. 1 to Contract with Cintas Corporation No. 3, for Rental and Cleaning of Uniforms for Certain Field and Warehouse Employees ($200,000) BACKGROUND INFORMATION: At the April 21, 2021 meeting, Council adopted a resolution awarding the contract for rental and cleaning of uniforms for certain employees to Cintas of Stockton in the amount of $113,401. The contract was for a two-year initial term with the option to extend for three additional one-year terms. The initial term of the contract is set to expire on June 30, 2023 but all funds have been expended.

The current contract includes uniforms for the Facilities Services, Fleet Services, Streets, Water/Wastewater, Community Center and Parks division employees, as provided in the memorandums of understanding. Seat covers, rags, towels and floor mats used in the various city facilities are also included in the contract. The contract was based on the employee count at the time of the bid. Since this time there has been an increase in staff as well as staff turnover which is an additional cost and increase in the weekly contract cost to some of the divisions. These factors have contributed to the contract being fully expended before the expiration date of June 30, 2023.

Staff recommends Council authorize the City Manager to execute Amendment No. 1 to the contract with Cintas of Stockton for rental and cleaning of uniforms. Amendment No. 1 will add an additional $200,000 to the existing contract amount of $113,401 for a total of $313,401 and extend the term one year through June 30, 2024.

FISCAL IMPACT: This contract is an annual budgeted expense.

FUNDING AVAILABLE: Funding is available in the appropriate operating budgets (10051000, 65055000, 30156001, 53053001, 53053003, 56052001, 56052005, 20071402, 20072001)
____ ___________________________________
A ndrew Keys
Deputy City Manager/Internal Services Director
________________________________________
C harles E. Swimley, Jr.

Public Works Director
CES/RAY/cd

RESOLUTION NO. 2022-____

A RESOLUTION OF THE LODI CITY COUNCIL AUTHORIZING THE
CITY MANAGER TO EXECUTE AMENDMENT NO. 1 TO THE CONTRACT WITH CINTAS CORPORATION NO. 3, OF STOCKTON, FOR RENTAL AND CLEANING

OF UNIFORMS FOR CERTAIN FIELD AND WAREHOUSE EMPLOYEES
========================================================================

WHEREAS, at the April 21, 2021 meeting, Council adopted a resolution awarding the contract for rental and cleaning of uniforms for certain employees to Cintas , of Stockton, in the amount of $113,401; and

WHEREAS, the initial term of the contract is set to expire on June 30, 2023, but all funds have been expended; and

WHEREAS, the current contract includes uniforms for the Facilities Services, Fleet Services, Streets, Water/Wastewater, Community Center , and Parks division employees, as provided in the memorandums of understanding and was based on the employee count at the time of the bid; and

WHEREAS, since that time there has been an increase in staff, as well as staff turnover, which is an additional cost , and increase in the weekly contract cost to some of the divisions , which has contributed to the contract being fully expended before the expiration date; and

WHEREAS, staff recommends authorizing the City Manager to execute Ame ndment No. 1 to the contract with Cintas, of Stockton, for rental and cleaning of uniforms, in the amount of $200,000.

NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby authorize the City Manager to execute Amendment No. 1 to the contr act with Cintas Corporation No. 3, of Stockton, California, for rental and cleaning of uniforms, in the amount of $200,000, thereby extending the term to June 30, 2024; and

BE IT FURTHER RESOLVED, pursuant to Section 6.3q of the City Council Protocol Manual (adopted 11/6/19, Resolution No. 2019- 223), the City Attorney is hereby authorized to make minor revisions to the above- referenced document(s) that do not alter the compensation or term, and to make clerical corrections as necessary.

Dated: November 2, 2022
=======================================================================

I hereby certi fy that Resolution No. 2022-__ was passed and adopted by the City Council of the City of Lodi in a regular meeting held November 2, 2022 by the following votes:

AYES: COUNCIL MEMBERS –

NOES: COUNCIL MEMBERS –

ABSENT: COUNCIL MEMBERS –

ABSTAIN: COUNCIL MEMBERS –

OLIVIA NASHED
City Clerk

2022-_____
AGENDA ITEM C-06

COUNCIL COMMUNICATION
APPROVED: ________________________________
Stephen Schwabauer, City Manager
\\cvcfilv02\pubwks$\Transit\12) Procurements & RFPs\ZEB Rollout Plan Study\CC ZEB Rollout Plan.docx 10/19/2022 AGENDA TITLE: Adopt Resolution Authorizing City Manager to Execute Professional Services Agreement with ICF Consulting, LLC, of Sacramento, to complete City of Lodi Zero-Emissions Bus Study & Rollout Plan (Not-to-Exceed $99,914)
MEETING DATE: November 2, 2022
PREPARED BY: Public Works Director
RECOMMENDED ACTION: Adopt resolution authorizing City Manager to Execute Professional Services Agreement with ICF Consulting, LLC, of Sacramento, to complete the City of Lodi Zero-Emissions Bus Study & Rollout Plan in an amount not- to-exceed $99,914.

B
ACKGROUND INFORMATION: On August 30, 2022, Public Works (PW) issued a Request for Proposals (RFP) to develop a comprehensive system wide study of Zero-Emission Bus (ZEB) transition needs. The study is being completed in support of the City of Lodi’s compliance with the California Air Resource Board’s (CARB) Innovative Clean Transit (ICT) regulation, which requires 100% of new transit bus purchases to be zero-emission by 2029, and 100% of transit bus fleets to be zero-emission by 2040.

T
he study will identify a recommended ZEB type (i.e. battery electric vs. hydrogen fuel cell), infrastructure requirements, and a phasing plan for capital improvements and vehicle procurement. The analysis will comprehensively factor in key operational parameters such as transit service requirements including route, range and staffing needs, fleet management including operation logistics and maintenance, and charging or fueling needs. Financial viability and cost-effectiveness with regard to initial purchase prices, lifetime costs, operational costs, and financing strategies will also be examined. These findings will be summarized in a Zero Emission Bus Rollout Plan, to be approved and adopted by City Council and submitted to CARB by July 2023, as mandated by the ICT regulations.

T
he RFP was developed by PW and Lodi Electric Utility (LEU) staff, and advertised widely to transit and zero- emission industry working groups. Two proposals were received and evaluated by PW and LEU staff, and the panel recommended selection of ICF Consulting, LLC based on their qualifications, approach to the scope of work, and understanding of CARB’s ICT regulation. Their specific experience completing ZEB plans for other California transit agencies, as well as cost, were two important factors.

T
his ZEB study will be completed concurrently with the citywide Fleet Electrification Master Plan. Transit buses were intentionally excluded from the Citywide Fleet Electrification Master Plan because the CARB ICT Regulation mandating zero-emission buses is separate from the CARB Advanced Clean Fleet (ACF) Regulation, which mandates the zero-emission transition for non-bus vehicle types. Staff is however anticipating significant overlap and coordination between these two efforts in terms of needed electric distribution system capacity, infrastructure requirements, implementation strategies, and general resource sharing.

Adopt Resolution Authorizing City Manager to Execute Professional Services Agreement with ICF Consulting, LLC, of Sacramento, to complete City of Lodi Zero-Emissions Bus Study & Rollout Plan (NTE $99,914) November 2, 2022

It is anticipated ICF Consulting, LLC will begin work on the Zero-Emissions Bus Study and Rollout Plan in November, with all work scheduled to be completed by June 2023. A draft ZEB Rollout Plan will be presented and discussed with the City Council at a date to be determined, with Plan adoption and submission to CARB occurring shortly thereafter.

The Zero-Emissions Bus Study & Rollout Plan will be funded up to fifty percent by Lodi Electric Utility’s Low Carbon Fuel Standard (LCFS) fund. The balance will be paid for using Transportation Development Act (TDA) funds.

FISCAL IMPACT: The Zero-Emissions Bus Study & Rollout Plan is required for compliance with CARB’s ICT regulation, and failure to complete the plan by July 2023 could subject the City to penalties and potentially negatively impact future funding. The project does not impact the General Fund.

FUNDING AVAILABLE: Transportation Division TDA funds: (60199000.77040) Lodi Electric Utility LCSF funds: (50362500.72990)

______________________________________
Andrew Keys
Deputy City Manager/Internal Services Director

_____________________________________
Charles E. Swimley, Jr.

Public Works Director

Prepared by: Frank Huang, Junior Transportation Planner & Julia Tyack, Transportation Manager CES/FH/JT/cd
Attachment

cc: Fleet Services Supervisor
Lodi Electric Utility Director

RESOLUTION NO. 2022-____

A RESOLUTION OF THE LODI CITY COUNCIL AUTHORIZING THE

CITY MANAGER TO EXECUTE A PROFESSIONAL SERVICES AGREEMENT

WITH ICF CONSULTING, LLC, OF SACRAMENTO, TO COMPLETE CITY OF

LODI ZERO-EMISSIONS BUS STUDY AND ROLLOUT PLAN
========================================================================

WHEREAS, on Au gust 30, 2022, the Public Works Department issued a Request for Proposals (RFP) to develop a comprehensive system -wide study of Zero- Emission Bus (ZEB) transition needs; and

WHEREAS, the study will identify a recommended ZEB type (i.e. , battery electric vs. hydrogen fuel cell), infrastructure requirements, and a phasing plan for capital improvements and vehicle procurement; and

WHEREAS, two proposals were received and evaluated by Public Works and Lodi Electric Utility staff, and the panel recommended selection of ICF Consulting, LLC , based on their qualifications, approach to the scope of work, and understanding of California Air Resources Board’s Innovative Clean Transit regulation; and

WHEREAS, staff recommends authorizing the City Manager to execute a Professional Services Agreement with ICF Consulting, LLC, of Sacramento, to complete the City of Lodi Zero-Emissions Bus Study and Rollout Plan in an amount not to exceed $99,914.

NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby authorize the City Manager to execute a Professional Services Agreement with ICF Consulting, LLC, of Sacramento, California, to complete the City of Lodi Zero- Emissions Bus Study and Rollout Plan in an amount not to exceed $99,914; and

BE IT FURTHER RESOLVED, pursuant to Section 6.3q of the City Council Protocol Manual (adopted 11/6/19, Resolution No. 2019- 223), the City Attorney is hereby authorized to make minor revisions to the above -referenced document(s) that do not alter the compensation or term, and to make clerical corrections as necessary.

Dated: November 2, 2022
========================================================================

I hereby certi fy that Resolution No. 2022-__ was passed and adopted by the City Council of the City of Lodi in a regular meeting held November 2, 2022 by the following votes:

AYES: COUNCIL MEMBERS –

NOES: COUNCIL MEMBERS –

ABSENT: COUNCIL MEMBERS –

ABSTAIN: COUNCIL MEMBERS –

OLIVIA NASHED
City Clerk

2022-_____
AGENDA ITEM C-07

COUNCIL COMMUNICATION
APPR
OVED: ________________________________
Stephen Schwabauer, City Manager
AGENDA TITLE: Adopt Resolution Authorizing City Manager to Execute a Three -Year Professional Services Agreement with Guardian Public Safety Background Investigations, Inc., of Lodi, CA, for Background Investigation Services for the City of Lodi ($100,000) M
EETING DATE: November 2, 2022
P
REPARED BY: Chief of Police
RE
COMMENDED ACTION: Adopt resolution authorizing the City Manager to execute a three-year professional services agreement with Guardian Public Safety Background Investigations, Inc., of Lodi, CA, for background investigation services for the City of Lodi in the amount of $100,000.

B
ACKGROUND INFORMATION: The Police Department, Fire Sworn, and Information Technology new-hire candidates require background checks before officially being offered a job by the City of Lodi. Part-time police department retired annuitants are conducting the backgrounds for these candidates. Due to CalPERS retiree hour constraints and the number of candidates being considered for employment, the City needs outside contractors to assume some of the background investigations.

C
alifornia Government Code §1031 requires a pre-employment background investigation for law enforcement officers. The background investigation process determines whether a candidate meets the requirements to become a law enforcement officer. The department manages or authenticates the investigation process, which includes verifying identity, education, employment history, criminal record, credit history, and interviews with family, friends, and relatives.

Fo
r firefighters, background checks are critical because of the role firefighter’s play. Firefighters are trusted members of the community whose jobs place others’ lives in their hands and are given significant authority and responsibility. A firefighter background check helps to:
• Filter out dishonest candidates
• Identify applicants of questionable moral character
• Verify that an applicant has the required qualifications for the job • Protect the safety of other employees and members of the public Las
tly, Information Technology employees have to go through a background check due to their access to the police facility and its programs.

Adopt Resolution Authorizing City Manager to Execute a Three-Year Professional Services Agreement with Guardian Public Safety Background Investigations, Inc., of Lodi, CA, for Background Investigation Services for the City of Lodi ($100,000)
November 2, 2022

Guardian is a local business that was vetted through the police department. Guardian is knowledgeable about background investigation mandates, produces clear and professional reports, and provides a digital dashboard that allows hiring personnel to follow the progress of the investigation. For all of these reasons, the police department requests Council approval for a three-year contract with Guardian Public Safety Background Investigations for background investigation services not-to-exceed $100,000.

FISCAL IMPACT: Not-to-exceed $100,000 for the three-year contract.

FUNDING AVAILABLE: Police Business Expense - 10030001.72314 Human Resources Misc. Professional Services - 10020300.72450

_______________________________________
Andrew Keys
Deputy City Manager/Internal Services Director

________________________________________
Sierra Brucia
Chief of Police

RESOLUTION NO. 2022-____

A RESOLUTION OF THE LODI CITY COUNCIL AUTHORIZING THE CITY MANAGER

TO EXECUTE A THREE-YEAR PROFESSIONAL SERVICES AGREEMENT WITH GUARDIAN PUBLIC SAFETY BACKGROUND INVESTIGATIONS, INC., OF LODI,

FOR BACKGROUND INVESTIGATION SERVICES
========================================================================

WHEREAS, the Police Department, Fire Sworn, and Information Technology new -hire candidates require background checks before they are officially provided a job offer by the City of Lodi; and

WHEREAS, part-time Police Department retired annuitant s are conducting the background investigations for these candidates , however, due to CalPERS retiree hour constraints and the number of candidates that are being considered for employment, the City needs to utilize outside contractors to assume some of the background investigations; and

WHEREAS, Guardian Public Safety Background Investigations is knowledgeable about background investigation mandates, produces clear and professional reports , and provides a digital dashboard that allows hiring personnel to follow the progress of the investigation; and

WHEREAS, the Police D epartment requests Council approval for a three- year contract with Guardian Public Safety Background Investigations for background investigation services in an amount not to exceed $100,000.

NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby authorize the City Manager to execute a three- year Professional Services A greement with Guardian Public Safety Back ground Investigations , Inc., of Lodi, California, for background investigation services for the City of Lodi in an amount not to exceed $100,000; and

BE IT FURTHER RESOLVED, pursuant to Section 6.3q of the City Council Protocol Manual (adopted 11/6/19, Resolution No. 2019- 223), the City Attorney is hereby authorized to make minor revisions to the above- referenced document(s) that do not alter the compensation or term, and to make clerical corrections as necessary.

Date: November 2, 2022
========================================================================

I hereby certify that Resolution No. 2022-____ was passed and adopted by the Lodi City Council in a regular meeting held November 2, 2022, by the following vote:

AYES: COUNCIL MEMBERS –

NOES: COUNCIL MEMBERS –

ABSENT: COUNCIL MEMBERS –

ABSTAIN: COUNCIL MEMBERS –

OLIVIA NASHED
City Clerk

2022-____
AGENDA ITEM C-08

COUNCIL COMMUNICATION
APPR
OVED: ________________________________
Stephen Schwabauer, City Manager
Granicus 10/24/2022
AGENDA TITLE: Adopt Resolution Authorizing City Manager to Execute Amendment No. 3 to Service Agreement with Granicus, LLC, a Minnesota Company, to Add Granicus Solution Legistar for Agenda Management Services ($31, 746)
M
EETING DATE: November 2, 2022
P
REPARED BY: City Clerk
RE
COMMENDED ACTION: Adopt resolution authorizing City Manager to execute Amendment No. 3 to Service Agreement with Granicus, LLC, a Minnesota Company, to add Granicus Solution Legistar for agenda management services, in the amount of $31, 746.

BAC
KGROUND INFORMATION: Since 2008, Granicus, LLC, formerly known as Granicus, Inc., has provided the software and managed services utilized by the City Clerk’s Office for video streaming of City Council Meeting, the compilation of minutes, and the management of Lodi boards, commissions, and committees through the Boards and Commissions module.

O
n June 6, 2015, the City entered into a three-year service agreement with Granicus, Inc., providing services to publish agendas and minutes for Council meeting and boards and commissions. Re4 solution No. 2015-140 allowed the City Manager to renew the agreement annually subject to an annual cost not to exceed the sum of $30,000. The current renewal to the contract is in effect until June 30, 2023.

Th
e City Clerk’s Office now desires to add additional services to the contract with Granicus, LL4 C, to include agenda management solution, Legistar. Legistar is a software package that will facilitate every step of the agenda compilation process. The program includes the following functionalities:

1. A
utomation Workflow – automates agenda item submission from beginning to end for both citywide staff review, as well as department- level agenda item creation and review.

2. Viewer and Annotations – allows City Councilmembers to use their web enabled device to view, annotate, and s
ave notes on agenda materials for easy access and retrieval.

3. Integration – integrates with programs already utilized by City Clerk’s Office staff, such as Media Manager, to create an efficient and effortless process for posting agendas, minutes and Council videos for a higher level of transparency.

S
taff recommends that the City Manager be authorized to execute Amendment No. 3 to the agreement with Granicus, LLC, for Legistar configuration, installation, and the first year’s annual subscription fee for a total of $31,746.

Adopt Resolution Authorizing City Manager to Execute Amendment No. 3 to Service Agreement with Granicus, LLC, a Minnesota Company, to Add Granicus Solution Legistar for Agenda Management Services ($31, 746) November 2, 2022
Page Two

FISCAL IMPACT: Funds, for this contract, are budgeted in the Information Technology Division. Future annual subscription fees will be budgeted by the City Clerk’s Office during the annual budget process.

FUNDING AVAILABLE: Information Technology Fund 10020400.72450 - $31,746

_______________________________________
Andrew Keys
Deputy City Manager/Internal Services Director

________________________________________
Olivia Nashed
City Clerk

RESOLUTION NO. 2022-____

A RESOLUTION OF THE LODI CITY COUNCIL AUTHORIZING THE
CITY MANAGER TO EXECUTE AMENDMENT NO. 3 TO THE SERVICE

AGREEMENT WITH GRANICUS, LLC, A MINNESOTA COMPANY, TO ADD

GRANICUS SOLUTION LEGISTAR FOR AGENDA MANAGEMENT SERVICES ========================================================================

WHEREAS, the City entered into a Professional Services Agreement with Granicus, Inc., for services to publish agendas and minutes for Council meetings and boards and commissions on June 18, 2015; Amendment No. 1 on October 8, 2019; and Amendment No. 2 on October 12, 2021 (collectively the “Agreement”); and

WHEREAS, the City Clerk’s Office requests to amend the Agreement to include, within the scope of services, the installation and subscription of electronic agenda management software system known as Legistar, in the amount of $31,746.

NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby authorize the City Manager to execute Amendment No. 3 to the Service Agreement with Granicus, LLC, a Minnesota Limited Liability Company, for the configuration, installation, and subscription of agenda management program, Legistar, in the amount of $31,746; and

BE IT FURTHER RESOLVED, pursuant to Section 6.3q of the City Council Protocol Manual (adopted 11/6/19, Resolution No. 2019 -223), the City Attorney is hereby authorized to make minor revisions to the above-referenced document(s) that do not alter the compensation or term, and to make clerical corrections as necessary.

Dated: November 2, 2022
======================================================================== I hereby certify that Resolution No. 202 2-____ was passed and adopted by the City Council of the City of Lodi in a regular meeting held November 2, 2022 by the following vote:

AYES: COUNCIL MEMBERS –

NOES: COUNCIL MEMBERS –

ABSENT: COUNCIL MEMBERS –

ABSTAIN: COUNCIL MEMBERS –

OLIVIA NASHED
City Clerk

2022-_____
AGENDA ITEM C-09

COUNCIL COMMUNICATION
APPROVED: ________________________________
Stephen Schwabauer, City Manager
AGENDA TITLE: Adopt a Resolution Authorizing the City Manager to Execute Amendment No. 1 to the Professional Services Agreement with 4 Leaf, Inc. for Building Codes Plans Examining, Building Codes Inspection, Fire Codes Plans Examining, Fire Codes Inspection, and Code Enforcement Services to increase the current contract ending October 31,2022, by adding an amount not to exceed $60,000, for a total amount not to exceed $960,000 over the term of the Agreement.

MEETING DATE: November 02, 2022
PREPARED BY: Community Development Director
RECOMMENDED ACTION: Adopt a resolution authorizing the City Manager to execute Amendment No. 1 to the Professional Services Agreement with 4 Leaf, Inc. for Building Codes Plans Examining, Building Codes Inspection, Fire Code s Plans Examining, Fire Codes Inspection, and Code Enforcement Services to increase the current contract ending October 31,2022, by adding an amount not to exceed $60,000, for a total amount not to exceed $960,000 over the term of the Agreement.

BACKGROUND INFORMATION: The Building & Safety Division relies on outside consultants to provide services such as plan review, building in spection, and Community Improvement staffing. The department exceeded its funding due to delays in finding qualified City staff.

Staff recommends City Council adopt a resolution authorizing the City Manager to execute Amendment No. 1 to the Professional Services Agreement with 4 Leaf, Inc. for Building Codes Plans Examining, Building Codes Inspection, Fire Codes Plans Examining, Fire Codes Inspection, and Code Enforcement Service Agreement to increase the current contract ending October 31,2022, by adding an amount not to exceed $60,000, for a total amount not to exceed $960,000 over the term of the Agreement.

FISCAL IMPACT: Costs will be absorbed in the Community Development Special Revenue Fund for Building and Fire Code Services and the General Fund for Code Enforcement Services.

FUNDING AVAILABLE: 27081000.72450 & 10061000.72450
______________________________________
Andrew Keys
Deputy City Manager/Internal Services Director
_____________________________________
John R. Della Monica, Jr.

Community Development Director

Exhibit A

RESOLUTION NO. 2022-____

A RESOLUTION OF THE LODI CITY COUNCIL AUTHORIZING THE
CITY MANAGER TO EXECUTE AMENDMENT NO. 1 TO THE PROFESSIONAL SERVICES AGREEMENT WITH 4 LEAF, INC., OF PLEASANTON, FOR BUILDING

CODES PLANS EXAMINING, BUILDING CODES INSPECTION, FIRE CODES

PLANS EXAMINING, FIRE CODES INSPECTION, AND CODE ENFORCEMENT ========================================================================

WHEREAS, the City of Lodi City Council on November 2, 2016, did enter into contract with 4 Leaf, Inc., Bureau Veritas North America, and Interwest Consulting Group, Inc., for Building Inspection Services in an amount not to exceed $900,000 over the term of the agreements; and

WHEREAS, staff executed Extension No. 1 on January 15, 2019, and Extension No. 2 on February 4, 2021, for all three companies; and

WHEREAS, the Community Development Department took over the Community Improvement Division in July 2021, resulting in the department exceeding its funding due to hiring delays created by the inability to find qualified staff, increasing the need for contract service. 4 Leaf, Inc., was able to work with the City to meet those needs; and

WHEREAS, the City and Contractor now desire to increase the amount of the contract in an amount not to exceed $60,000, for a total amount not to exceed $960,000 over the term of the agreements.

NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby authorize the City Manager to execute Amendment No. 1 to the Professional Services Agreement with 4 Leaf, Inc., of Pleasanton, California, for Building Codes Plans Examining, Building Codes Inspection, Fire Codes Plans Examining, Fire Codes Inspection, and Code Enforcement services to increase the current contract ending October 31, 2022, by adding an amount not to exceed $60,000, for a total amount not to exceed $960,000 over the term of the agreements.

Dated: November 2, 2022
======================================================================== I hereby certify that Resolution No. 202 2-____ was passed and adopted by the City Council of the City of Lodi in a regular meeting held November 2, 2022 by the following vote:

AYES: COUNCIL MEMBERS –

NOES: COUNCIL MEMBERS –

ABSENT: COUNCIL MEMBERS –

ABSTAIN: COUNCIL MEMBERS –

OLIVIA NASHED
City Clerk

2022-_____
AGENDA ITEM C-10

COUNCIL COMMUNICATION
APPRO
VED: ________________________________
Stephen Schwabauer, City Manager
AGENDA TITLE: Adopt a Resolution Authorizing the City Manager to Extend a Three- Year Professional Service Agreement with Business Recovery Services Inc., of Alameda, to Provide Lockbox Services for Processing Utility Check Payments Received ($54,000) MEET
ING DATE: November 2, 2022
PRE
PARED BY: Revenue Manager
RECO
MMENDED ACTION: Adopt a resolution authorizing the City Manager to extend a three- year professional service agreement with Business Recovery Services Inc., of Alameda, to provide lockbox services for processing utility check payments received ($54,000).

BA
CKGROUND INFORMATION: On September 18, 2019, after a Request for Proposal process, the City Council approved Resolution 2019-190 authorizing an agreement with Business Recovery Services Inc. The contract consisted of collecting mail payments, checks processed through the third-party’s high-capacity, automated equipment, generated data files to send to the City of Lodi for posting, funds deposit each business day before closing and physical images of each payment and stub/coupon. The contract expired on September 30, 2022.

Appr
oximately 36,000 utility bills are issued monthly. Of this amount, approximately 5,000 payments were paid with manual checks processed by Customer Service Representatives. Check payments are labor intensive, requiring manually opening payment envelopes and running checks and remittance stubs through a rapid processing service machine to upload the checks to the bank. About 10% of the checks must be manually entered into the City’s software system for various errors or discrepancies. At the end of each business day, all payments must be balanced and prepared for bank deposit. Due to the cumbersome nature of check processing, check payments divert staff time from other tasks, including front-line customer service to the City’s residents and businesses and completing other daily department functions.

It
is recommended that the City Council authorize the City Manager to extend the current agreement with Business Recovery Services Inc. for three more years for lockbox services that include providing a collection of mailed payments, checks processed through the third-party’s high-capacity, automated equipment, generated data files to send to the City of Lodi for posting, funds deposit each business day before closing, and physical images of each payment and stub/coupon in the amount of $54,000.

FIS
CAL IMPACT: Based on initial estimates, lockbox services are estimated to cost approximately $18,000 annually. The estimate is based on current volumes of check payments and increased costs. Actual costs will be based primarily on transaction volumes.

As residents continue to transition to online payment options, the cost may decrease over time.

F
UNDING AVAILABLE: Fiscal Year 2022/23-2024/25, account number 10020203.72450 _
______________________________________
Andrew Keys
Deputy City Manager/Internal Services Director
_______________________________________
Tarra Sumner
Revenue Manager

RESOLUTION NO. 2022-____

A RESOLUTION OF THE LODI CITY COUNCIL AUTHORIZING THE
CITY MANAGER TO EXECUTE AMENDMENT NO. 1 TO THE PROFESSIONAL SERVICES AGREEMENT WITH BUSINESS RECOVERY SERVICES, INC., OF

ALAMEDA, TO PROVIDE LOCKBOX SERVICES FOR PROCESSING UTILITY

CHECK PAYMENTS RECEIVED
========================================================================

WHEREAS, the City Council approved Resolution No. 2019-190 on September 19, 2019, authorizing an agreement with Business Recovery Services, Inc. , for lockbox services that included collecting mail payments, checks processed through the third party’s high capacity automated equipment, generating data files to send to the City of Lodi for posting funds deposited each business day before closing, and physical images of each payment and stub/coupon; and

WHEREAS, the agreement expired September 30, 2022; and

WHEREAS, approximately 5,000 of the 36,000 utility bills that are produced monthly are paid with manual checks that are processed by Customer Service Representatives. About 10% of the checks must be manually entered into the City’s software system for various errors and discrepancies and at the end of each business day, all payments mus t be balanced and prepared for bank deposit; and

WHEREAS, this labor intensive process diverts staff time from other tasks, including front-line customer service to the City’s residents and businesses and completing other daily department functions; and

WHEREAS, utilizing technology, BankUp has provided efficient and effective check processing to the City for the last three years that has freed up staff resources for higher-level customer service tasks; and

WHEREAS, staff recommends that the City Council authorize the City Manager to execute Amendment No. 1 to the Professional Services Agreement for lockbox services with Business Recovery Services, Inc., extending the agreement for an additional three years, in the amount of $54,000.

NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby authorize the City Manager to execute Amendment No. 1 to the Professional Services Agreement for lockbox services with Business Recovery Services, Inc., of Alameda, California, thereby extending the term for three years, in the amount of $54,000; and

BE IT FURTHER RESOLVED, pursuant to Section 6.3q of the City Council Protocol Manual (adopted 11/6/19, Resolution No. 2019 -223), the City Attorney is hereby authorized to make minor revisions to the above-referenced document(s) that do not alter the compensation or term, and to make clerical corrections as necessary.

Dated: November 2, 2022
========================================================================

I hereby certify that Resolution No. 202 2-____ was passed and adopted by the City Council of the City of Lodi in a regular meeting held November 2, 2022, by the following vote:

AYES: COUNCIL MEMBERS –

NOES: COUNCIL MEMBERS –

ABSENT: COUNCIL MEMBERS –

ABSTAIN: COUNCIL MEMBERS –

OLIVIA NASHED
City Clerk

2022-____
AGENDA ITEM C-11

COUNCIL COMMUNICATION
APPROVED: ________________________________
Stephen Schwabauer, City Manager
AGENDA TITLE: Set Public Hearing for November 16, 2022 to Consider Adoption of the 2022 California Building Code, California Existing Building Code, Mechanical Code, Electrical Code, Plumbing Code, Residential Code, Green Building Standard Code and Fire Code MEETING DATE: November 2, 2022
PREPARED BY: Community Development Director and Fire Chief RECOMMENDED ACTION: Set Public Hearing for November 16, 2022 to Consider Adoption of the 2022 California Building Code, California Existing Building Code, Mechanical Code, Electrical Code, Plumbing Code, Residential Code, Green Building Standard Code and Fire Code.

BACKGROUND INFORMATION: Pursuant to Health and Safety Code Section 18938 , the California Building Standards Commission has selected January 1, 202 3, as the effective date for the 2022 California Building Code, 20 22 California Existing Building Code, 20 22 California Mechanical Code, 20 22 California Electrical Code, 20 22 California Plumbing Code, 2022 California Residential Code, 20 22 California Fire Code , and 20 22 California Green Building Standard Code.

Every three years, Building/Construction and Fire Codes are amended by the State to include provisions of the most recent version. The State of California Building Standards Commission adopts new State standards, which cities and counties are therefore ma ndated to adopt. If codes with amendments are not adopted locally by January 1, 2023, then cities are required to follow State codes only. The need for the new ordinances is to adopt specific Appendixes and/or Administration provisions not adopted by the State. An example of this is:
• Administration Chapter I, Division II has been amended to have the City Council sit as the board of appeals for alternate materials and types of construction versus a separate appointed board of appeals; and
• Appendix J will be adopted to assist staff and design professionals with clear direction for construction design guidelines for grading, excavation and earthwork.

The major changes in this code cycle are in the California Building Code, California Energy Code, and California Green Building Standard Code. These changes will have some benefits and restrictions compared to the existing Codes. Some of the changes in the building codes are as follows:

California Residential Code Changes:

R327 Aging-in-place design and fall prevention Added to address specific aging -in-place design elements in new residential construction to facilitate access to operational features and to allow people to stay longer in their homes as they age.

Set PH Building Code Ordinance
November 2, 2022

California Building Code Changes:

105.5.1 [Permit] Expiration. New section changed permit expiration from 180 days to 12 months.

Includes a provision stipulating that every permit shall remain valid if the work on the site authorized by the permit is commenced within 12 months after its issuance. This amendment also allows for permit extensions; the exception being when the work authorized by the permit is determined to have been abandoned.

California Fire Code Changes:

105.6.53 Lithium batteries
Amendment to require an operational permit for an accumulation of more than 15 cubic feet of lithium- ion and lithium metal batteries and storage shall comply with new amendments in CFC Section 322.

The code is attempting to keep pace with the ever-changing battery technology and the Energy Storage Systems (ESS). This is evident in the number of changes to Chapter 12 – Energy Systems.

Chapter 12 – Energy Systems:

Section 1207.11.7 through 1207.7.3
Amendments regarding specific appliances, ESS equipment and devices that need protection from impact in a clearly defined area in residential garages and carports.

Figure 1207.11.7.1 New Illustration
Added to illustrate the zones in which a typical residential garage ESS installation would trigger the need for impact protection, following prescriptive barrier and post designs.

We have tried to notify all affected parties by, publication in the Lodi News-Sentinel, E-mail notification as well as notices provided at the front counter , and Community Development newsletter. Informational handouts are currently being revised to reflect the new code requirements. These handouts will be available at the Building & Safety kiosk and on the City web page on or before January 1, 2023.

Staff’s recommendation is to approve the 2022 codes as amended. The Ordinances have b een presented in highlight format to more easily identify the changes to aid in review.

FISCAL IMPACT: Not applicable.

FUNDING AVAILABLE: Not applicable.

________________________________________
John R. Della Monica, Jr.

Community Development Director
AGENDA ITEM G-01

COUNCIL COMMUNICATION
APPROVED: ________________________________
Stephen Schwabauer, City Manager
AGENDA TITLE: Public Hearing to Consider Adopting a Resolution Setting the San Joaquin County Multi- Species Habitat Conservation and Open Space Plan Development Fees For 2023 MEETING DATE: November 2, 2022
PREPARED BY: Community Development Director
RECOMMENDED ACTION: Public hearing to consider adopting a resolution setting the San Joaquin County Multi-Species Habitat C onservation and Open Space P lan development fees for 2023.

BACKGROUND INFORMATION: On February 21, 2001, the City of Lodi adopted the San Joaquin County Multi-Species Habitat Conservation and Open Space Plan (SJMSCP).

The Plan includes a schedule of fees to be paid by property owners who propose to develop their property with non-agricultural uses. These fees are used to mitigate for the cumulative impacts of new development on habitat lands within Lodi and San Joaquin County. It is necessary for all jurisdictions covered by the Plan to approve the Habitat Conservation Plan (HCP) fees in order for the jurisdiction to continue to participate in the Plan. The fees are reviewed on an annual basis.

The 2023 per acre fees for all categories of habitat land have reduced by 1.6% based on the reduction in land acquisition costs. Open Space lan ds are $9,629.00 per acre . Agriculture and Natural lands (the two largest categories) are $19,255.00 per acre. Fees for Vernal Pool habitat lands (uplands) are $75,320.00 per acre and Vernal Pool (wetted lands) are $176,878.00 per acre.

The San Joaquin Council of Governments Board approved the HCP fee schedule for 20 23 during their August 2022 board meeting. The Board coordinates the review of land costs to ensure that the current land mitigation costs will satisfy habitat conservation and purchases. All local jurisdictions are requested to approve the new fee schedule that will take effect on January 1, 2023.

FISCAL IMPACT: Not applicable.

FUNDING AVAILABLE: Not applicable.
______________________________________
John R. Della Monica, Jr.

Community Development Director
Attachments:
1) Fee Schedule for 2022
2) SJCOG Staff Report with Fee Analysis Update Summary
SJCOG, Inc.

555 East Weber Avenue ● Stockton, CA 95202 ● (209) 235-0600 ● FAX (209) 235-0438

San Joaquin County Multi-Species Habitat Conservation & Open Space Plan (SJMSCP)

2023 Updated Habitat Fees*
Habitat Type Fee Per Acre
Multi-Purpose Open Space $9,629
Natural $19,255
Agriculture $19,255
Vernal Pool - uplands $75,320
Vernal Pool - wetted $176,878
* Effective January 1, 2023 – December 31, 2023
\
2023 Endowment Fees with In-lieu Land**
Type of Preserve Enhancement
Cost/acre
Land
Management
Cost/acre

TOTAL PER
ACRE

ENDOWMENT
Agricultural Habitat Lands $5,769.00 $769.97 $6,539
Natural Lands $5,769.00 $769.97 $6,539
Vernal Pool Habitat
Vernal Pool Grasslands $14,491.00 $1,901.76 $16,393
Vernal Pool Wetted $117,102.00 $1,864.45 $118,966 ** Effective January 1, 2023 – December 31, 2023 in lieu of fees to be used as the endowment for the dedicated land preserves (Category B + C) based on impacted acres.

VELB Mitigation

A special fee category shall apply when removal of the Valley Elderberry Long-horned Beatle (VELB) habitat of elderberry shrubs occurs. The fee shall be paid to SJCOG, Inc. or a VELB mitigation bank approved by the Permitting Agencies. The current fee, as established in the VELB Conservation Fund Account managed by the Center for Natural Lands Management, and approved by the USFWS, is $1,800 per VELB Unit (one unit= one stem over 1" in diameter at ground level which is removed). Fees shall be established by the JPA during preconstruction surveys (i.e., counts of stems to be removed with and without exit holes shall be completed during preconstruction surveys) and shall be paid to the JPA prior to ground disturbance or stem removal, whichever comes first.

Robert Rickman
CHAIR
David Bellinger

VICE CHAIR
Diane Nguyen

EXECUTIVE DIRECTOR
Member Agencies

CITIES OF

ESCALON,

LATHROP,
LODI,

MANTECA,
RIPON,

STOCKTON,
TRACY,
AND

THE COUNTY OF

SAN JOAQUIN

8/2022
SJCOG, Inc.

STAFF REPORT

SUBJECT: 2023 SJMSCP Development Fee Annual
Adjustment

RECOMMENDED ACTION: Motion to Approve the 2023 SJMSCP
Development Fees as Adjusted Pursuant to the
Financial Analysis Model

SUMMARY:

Using the adopted five-year financial analysis model to the San Joaquin County Multi-Species Habitat Conservation and Open Space Plan (SJMSCP) the SJCOG Inc. staff, HTAC Financial Subcommittee members (Table 1) and consultants undertook the annual analysis in summer 202 2. The g oal of the annual analysis is to establish the next year’s habitat plan fees paid by the development project. The fees are for impacts under the countywide SJMSCP permits as defined in the three fee model categories (Category A – Acquisition; Category B - Assessment and Enhancement; and Category C - Land Management and Administration).

Table 1 – HTAC Financial Subcommittee Members:

John Beckman, BIA Matt Diaz, Stockton Zachery Kearns, CDFW Dan Gifford, Conservation Alisa Goulart, SJ County

The proposed 20 23 SJMSCP development fees were adjusted using the recommended 2020 SJMSCP Five-Year Financial Model Update for the respective categories and are compared to the 2022 SJMSCP Development fees (Table 2) in the most common habitat categories un der the plan. The change is an overall decrease of 1.6% in the most impacted categories of Agricultural and Natural habitat classifications from the prior year. Th e decrease is due primarily to a dip in the land acquisition component (Category A) for agricultural land price values of comparable sales even though there was an unusually robust rise in the reported Consumer Price Index (CPI) for Categories B and C.

Table 2- Compared 2023 & 2022 SJMSCP Development Fees – Most Common Fee Habitat Types

2023 Fee -
Proposed
2022 Fee -
Adopted Difference
Percent
Change
Agricultural/Natural $19,255 $19,561 $306 1.6%
2023 SJMSCP
Fees
Cat C
Cat A Cat B

1.6%
Table 3 illustrates the history of the SJMSCP development fees over the years since the funding shortfall was noted by the permitting agencies in 2006. The fees can fluctuate primarily based on the Category A – acquisition component of the fee formula over time.

Table 3- History and Annual Percentage Change for SJMSCP Development Fees

Projects participating under the SJMSCP benefit from a predetermined, streamlined processing of the project rather than navigating through a potentially very long , cumbersome, and expensive regulatory process outside the habitat plan. By voluntarily opting for participation, the project proponent can choose any number of ways to provide mitigation for the impacts of the project through the plan and even control much of the mitigation costs if desired. The options are:

1. Pay the applicable fee.

2. Redesign the project to avoid/minimize impacts.

3. Provide land in lieu of the SJMSCP fee , which the project proponent will negotiate directly with the seller on the easement/fee title costs (Category A component).

4. Any combination of the above options.

And if those options are not sufficient, the project proponent can choose to not participate in the plan (opt out) and fulfill mitigation requirements on their own with state and federal permitting agencies independently.

RECOMMENDATION:

The HTAC Financial Subcommittee and the HTAC make the recommendation to SJCOG, Inc.

Board to Approve the 202 3 SJMSCP Development Fees as Adjusted Pursuant to the Financial Analysis Model.

FISCAL IMPACT:

Development fees provide funding for SJCOG Inc. to mitigate project impacts covered under the SJMSCP permits for the subsequent calendar year beginning January 1.

BACKGROUND:

2007
Financial
Update#
Agriculture/Natural
$69,858 $71,125 $78,353 $77,720 $81,989 $78,311 $80,972 $85,631 $90,273 $109,737 $116,871 $101,033 $100,788 $161,286 $174,040 (wetted) (wetted) (wetted) (wetted) (wetted) (wetted) (wetted) (wetted) (wetted) (wetted) (wetted) (wetted) (wetted) (wetted) (wetted) $34,958 $35,143 $40,565 $38,328 $41,534 $37,087 $39,047 $42,784 $46,869 $66,437 $72,523 $54,576 $52,833 $71,544 $80,453 (upland) (upland) (upland) (upland) (upland) (upland) (upland) (upland) (upland) (upland) (upland) (upland) (upland) (upland) (upland)

12.7%14.2% 8.9% -30.9% -4.3% 35.4%8.4% -11.6% 4.6% 9.4% 7.2%-5.3% 14.4% 3.6% -9.3% Fee Category 2008 2009 2010 2011
$7,195 $6,364 $6,656 $7,281
2013 2014 20152012
$6,511 $6,165 $7,052 $7,307 $6,631
$19,400
$7,807 $8,905 $9,701
20192016 2017 2018
$14,104 $14,615 $13,262 $14,372 $17,808
Percentage of
Change Yearly
2020
$6,412
$12,822
Multi-Purpose
Open Space
Vernal Pools
$80,760
(wetted)
$42,071
(upland)
$13,399 $12,711 $13,295 $14,543 $15,596
$6,700
$13,022 $12,329
2022
$9,781
$19,561
2021
$8,682
$17,363
Annually, the SJMSCP development fees are reviewed and calculated using a formula method adopted under the habitat. The three components of the formula are adjusted using a specific mechanism, which relates to the individual component in the fee based on the most current data.

The development fees established must be adopted by each of the jurisdictions and would become effective on January 1 of the subsequent year for projects using the SJMSCP.

Category A (Acquisition) – Comparable Land Sales

This category is directly related to land valuation based on comparable land sales in San Joaquin County in specific zones of the plan area (Central Zone, Central Southwest Transition Zone and Delta Zone) over an established two-year period meeting the established criteria used for comparable land sales (Attachment 1). Cost estimates for t his category will continue to be evaluated on a yearly basis by taking all qualified fee title comparable sales in each zone to set a weighted cost per acre. Also, during the third year of the five -year cycle, the HTAC Financial Subcommittee reviewed the percentage of easement value to fee title value percentage used in the fee model for this category which was part of the 2020 model update. The percentage rose slightly from 56% to 58% which was incorporated into going forward until next 5-Year Review process.

The fee model update re sults in a 6.5% decrease in the Agricultural/Natural Habitat types of Category A (Acquisition) component to be $12,716. The reason for the decrease is the small dip in overall comparable fee title land sale values from prior year jumps.

Category B ( Assessment and Enhancement) – Refined Cost Factors with Consumer Price Index and Model Data Update

The Category B component of the fee is adjusted using several factors including the California Consumer Price Index (CPI), as reported by the California Department of Finance for the Cat A Cat B Cat C Fee
preceding 12-month fiscal year (June 202 1 – June 2022) and from the updat ed model numbers based on the SJMSCP Annual Report.

The unit cost factors (per acre or per year for some items) are adjusted only by the CPI (the California CPI calculation was an increase of 8.3%). But the total cost for Category B is also a function of the SJMSCP Annual Report data updated annually (acres remaining to be acquired and the number of years remaining in the permit term; the fee per acre is a function of those total calculated costs and the land conversion acres remaining). These factors all feed into the fee model.

The fee model update results in a 9.8% increase in the Agricultural/Natural Habitat types of Category B (Assessment and Enhancement) component to be $5,769.

Category C ( Management, Monitoring and Administration) – Refined Cost Factors/ Long Term Investment with Consumer Price Index

Annual cost updates use the California Consumer Price Index (CPI), as reported by the California Department of Finance, for the preceding 12-month fiscal year (June 2021 – June 2022) to keep up with inflation on an annual basis.

The fee model update results in a n 8.3% increase in the Agricultural/Natural Habitat types of Category C (Management, Monitoring and Administration) component from prior years to be $769.97.

In summary, the SJMSCP fees is calculated using the SJMSCP Financial Analysis formula model shown in the final proposed fee table 4 below and Attachment 2 (SJMSCP Cost and Fee Analysis 2023 Update). The overall result in the fee analysis is a 1.6% decrease in the most impacted Agricultural and Natural Habitat Classifications fees for 2023.

Table 4 - 2023 SJMSCP Development Fees - Proposed

Habitat Type Category A Category B Category C Total Fee Rounded Fee Other Open Space $6,358.00 $2,885.00 $385.55 $9,628.55 $9,629 Natural/Ag Lands $12,716.00 $5,769.00 $769.97 $19,254.97 $19,255 Vernal Pool Grasslands $58,927.00 $14,491.00 $1,901.76 $75,319.76 $75,320 Vernal Pool Wetted $57,912.00 $117,102.00 $1,864.45 $176,878.45 $176,878

COMMITTEE ACTIONS:

• HTAC FINANICAL SUBCOMMITTEE: Recommended Approval to HTAC • HTAC: Recommended Approval
• Management and Finance: Information
• Executive Committee: Information
• SJCOG Inc. Board: August 25, 2022

Prepared by: Steven Mayo, Program Manager

Attachment 1 – 2023 Fee Study Property List - Props 24 Month

Attachment 2 – SJMSCP Cost and Fee Analysis 2023 Update

FINANCIAL ANALYSIS UPDATE Final Adopted August 27, 2020 Table of Contents List of worksheet tabs and contents
Notes to User Model overview and instructions for annual updates Fee Summary Comparison Table showing calculated fee amounts by habitat type and category; comparison to adopted fees; linked from other sheets; includes California CPI factor for Category C annual update
A1 PerAcreCostFactorsbyZone Per acre easement cost factors by zone based on input from comparables and appraisal analysis A2 PerAcreAcquisitionCost Weighted acquisition cost factors by habitat type based on distribution of preserves by zone; adds transaction costs A3 AcquisitionCostHabitatType Total acquisition cost by habitat type, for preserves remaining to be acquired A4 AcquisitionFEE Category A fee by habitat type, based on remaining land conversion B1 PreserveEnhancementCost Weighted enhancement cost factors by habitat type based on estimate of acres enhanced and detailed per acre enhancement cost factors B2 AssessmentEnhancementCost All assessment and enhancement cost factors by habitat type, for preserves remaining to be acquired B3 AssessEnhancementCostAllocation Total assessment and enhancement cost by habitat type, remainder of permit term, for preserves remaining to be acquired B4 AssessmentEnhancementFEE Category B fee by habitat type, based on remaining land conversion C MonitoringAdminFEE Category C fee by habitat type, based on remaining land conversion; links to summary comparison for annual update For 5-Year Update Only => Workbook break: the following tabs for Category C are only used in the 5-year economic analysis update C1 MonitoringCost Monitoring cost factors by habitat type, including post-permit annual cost; costs for remainder of permit term, all preserve acres C2 PMAdminCost Project management and administrative cost factors, including post-permit annual cost; costs for remainder of permit term, all preserve acr C3 Permit Term Cost Adjustments Category C fund balance deducted from Category C costs remainder of permit term to calculate net cost for cost allocation and fee C4 Endowment Endowment cash flow, return assumptions, and total in year 51 to support post-permit annual cost C5 MonitoringAdminCostAlloc Total monitoring, management, and administrative cost by habitat type, remainder of permit term and endowment for post permit cost C6 MonitoringAdminFEE Category C fee by habitat type, based on remaining land conversion Source for update acres => Workbook break: the following tabs are updated annually and every 5 years for acres inputs 1 SJMSCP Acres 6_4_2015 Land conversion and preserve acres by habitat type for the 50-year permit term (source table)

2.1 RemainingPreservetoAcquire Preserve Acres, Total and Remaining to be Acquired (from Table 1 and Annual Report updates)

2.2 Preserves_Habitat_Zone_2019 Detail on preserve acquisition by habitat type and zone for use in monitoring cost estimates (not used in annual updates) 3 Cumulative Take_Remaining Allowed and Remaining Incidental Take Acreage (from Table 1 and Annual Report updates) 4 PreserveAcquisitionSchedule Preserve Acquisition Schedule, All Habitat Types, by Index Zone, Remaining Permit Term (from Table 2.1 and 2.2) Fund Balance Analysis => Workbook break: the following tabs are updated every 5 years for Category C cost analysis 5 FundBalanceAllocation Allocation of Fund Balance to Category B and Category C (permit term) and post-permit endowment B1 ExistingPreserveEnhanceCost Estimate of enhancement costs on existing preserves with updated cost factors, to allocate fund balance to Category B DRAFT SJMSCP Cost and Fee Analysis 2023 Update_Mayo August 2022_2023 Annual w CPI.xlsx - TABLE OF CONTENTS - 8/11/2022 FINANCIAL ANALYSIS UPDATE Final Adopted August 27, 2020 This workbook of linked worksheets calculates SJMSCP Impact Fees for Categories A, B, and C.

The workbook contains all of the elements needed for annual updates as well as the framework for the more complex 5- year economic analysis updates.

Action items for annual updates indicated in red italics.

Category A and Category B are fees for one-time costs for land acquisition, enhancement, restoration and associated site assessments and planning.

These fees will be updated annually by updating the per-acre cost factors and updating the acres remaining to be acquired and the remaining acres of land conversion based on data from SJMSCP Annual Reports. - Category A per-acre cost factors updated by annual comparables analysis, as established in past practice, and evaluation of easement cost percent of fee title based on SJMSCP appraisals - Category B per-acre and annual cost factors updated by applying California CPI to unit cost factors - The total costs in Category A and Category B for each annual update will reflect the acres remaining to be acquired and the fees for each annual update will reflect the remaining acres of land conversion from SJMSCP Annual Reports.

Category C is a fee for on-going annual costs for the remainder of the permit term and post-permit in perpetuity. practice.
- Incorporating Annual Report data in the annual updates of on-going permit term and post-permit costs adds unnecessary complexity to the annual update of this component of the SJMSCP fees. the endowment cash flow analysis required to estimate post-permit costs, are more complex work efforts not justified to generally keep Category C fees in line with annual cost inflation. Moreover, because management and administration costs are not sensitive to habitat type, it is not as important to account for the annual variation in preserve acquisition and land conversion captured in the annual updates to Categories A and B.

Components of the workbook:

1. The Fee Summary Comparison worksheet compares calculated updated fees to fees currently in effect and includes the California CPI for Category C updates.

2. Category A tabs A1 - A4 calculate the fees for Category A Acquisition.

3. Category B tabs B1 - B4 calculate the fees for Category B Assessment and Enhancement.

DRAFT SJMSCP Cost and Fee Analysis 2023 Update_Mayo August 2022_2023 Annual w CPI.xlsx - NOTES TO USER - 8/11/2022 FINANCIAL ANALYSIS UPDATE Final Adopted August 27, 2020

4. Category C Fee tab shows the fees by habitat type calculated in the 2020 Economic Analysis Update, the basis for the

UPDATE ONLY
the SJMSCP Annual Report; Table 4 showing the preserve monitoring schedule by habitat type and zone is used only in the 5-year update.

7. Tables 5 and B1 ExistingPreserveEnhanceCost provide the fund balance analysis completed every five years as part of the Category C update.

DRAFT SJMSCP Cost and Fee Analysis 2023 Update_Mayo August 2022_2023 Annual w CPI.xlsx - NOTES TO USER - 8/11/2022 FINANCIAL ANALYSIS UPDATE Final Adopted August 27, 2020 Fee Summary Comparison
Calculates new annual fees and compares to prior year adopted fees.

1. Paste values of prior year adopted fees in cells C11:E14.

2. Insert updated annual California CPI factor in cell F1.

3. Updated fees for Category A show in cells C5:C8 and updated fees for Category B show in cells D5:D8. The fees are link

4. Formulas in cells E5:E8 calculate Category C fee update amounts based on prior year adopted fee amounts in cells E11:E14 and the California CPI.

Category A Acquisition
A.1 Category A Per-Acre Acquisition Cost Factors by Zone Delta.

2. Update SJCOG, Inc. appraisal list each year and calculate weighted average percent by dividing cumulative total easement value (cost) by cumulative total before value (fee title value).

3. Value of Southwest Zone easement cost remains unchanged until experience indicates it should be updated.

A.2 Per-Acre Acquisition Cost Factors by Preserve/Habitat Type No annual input needed. Links and formulas calculate total cost factors per acre for each habitat type.

1. Easement cost factor input linked from A.1.

2. Distribution by preserve type is not changed from 1996 Economic Analysis.

3. Transaction cost and VP acquisition assumptions not changed.

A.3 Total Acquisition Costs by Habitat Type, Remainder of Permit Term No annual input needed. Links and formulas calculate total cost for each habitat type.

1. Land acquisition cost factors linked from A.2.

2. Preserve acres remaining to be acquired linked from Table 2.1 (updated annually based on SJMSCP Annual Report).

A.4 Fee Calculations
No annual input needed. Links and formulas calculate fee for each habitat type.

1. Cost by habitat type linked from A.3.

2. Land conversion remaining linked from Table 3 (updated annually based on SJMSCP Annual Report).

DRAFT SJMSCP Cost and Fee Analysis 2023 Update_Mayo August 2022_2023 Annual w CPI.xlsx - NOTES TO USER - 8/11/2022 FINANCIAL ANALYSIS UPDATE Final Adopted August 27, 2020 Category B Assessment and Enhancement
B.1 SJMSCP Preserve land by habitat type, enhancement analysis, and enhancement cost factors per preserve acre refined, and update of costs for enhancements and restoration. 2020 Analysis included further cost updates based on actual SJCOG, Inc. experience and other relevant cost updates. Table calculates weighted average cost per preserve acre for agricultural lands, non-vernal pool natural lands, and vernal pool preserves. Update enhancement cost analysis every five years.
formula. Formula references updated annual California CPI factor in cell E1. Formulas calculate updated weighted average cost per preserve acre.

3. Insert updated annual California CPI factor in cell E1.

B.2 Category B Assessment, Planning, Restoration and Enhancement Cost Factors

1. Update remaining years in permit term.
enhancement plans in the formula. Formula references updated annual California CPI factor in cell C1. Formulas calculate updated annual costs.

3. Insert updated annual California CPI factor in cell C1.

4. Enhancement and restoration cost factors linked from B.1.

B.3 Category B Assessment, Planning, Restoration, and Enhancement Cost Allocation by Habitat Type No annual input needed. Links and formulas calculate total cost for each habitat type. factors in B.2.

2. Preserve acres remaining to be acquired linked from Table 2.1 (updated annually based on SJMSCP Annual Report).

B.4 Fee Calculations
No annual input needed. Links and formulas calculate fee for each habitat type.

1. Cost by habitat type linked from B.3.

2. Land conversion remaining linked from Table 3 (updated annually based on SJMSCP Annual Report).

Category C Monitoring, Management, and Administration
C.5 Fee Calculations - Annual Update Only
No input needed. Cost and land conversion values frozen based on 2020 Economic Analysis.

1. For 2020 update, Category C fee amounts by habitat type linked to Fee Summary Comparison table.

DRAFT SJMSCP Cost and Fee Analysis 2023 Update_Mayo August 2022_2023 Annual w CPI.xlsx - NOTES TO USER - 8/11/2022 FINANCIAL ANALYSIS UPDATE Final Adopted August 27, 2020

2. Update annually by applying California CPI factor to prior year Category C fee amounts, as in past practice.

Note: this is done in the Fee Summary Comparison worksheet.

DRAFT SJMSCP Cost and Fee Analysis 2023 Update_Mayo August 2022_2023 Annual w CPI.xlsx - NOTES TO USER - 8/11/2022 FINANCIAL ANALYSIS UPDATE Final Adopted August 27, 2020 Category C Monitoring, Management, and Administration - INSTRUCTIONS FOR FIVE-YEAR UPDATE C.1 Category C (part) Compliance and Effectivement Monitoring Cost Assumptions

1. Remaining years in permit term linked from Table 4 Preserve Monitoring Schedule.

2. Update monitoring cost factors (annual costs and annual costs per acre).

3. Total costs by type of monitoring for the remainder of the permit term calculated by worksheet formula. With links to Table 4 Preserve Monitoring Schedule.

4. Post permit cost updates by worksheet formula based on updates to detail in rows above. Acres input linked from Table 4 Preserve Monitoring Schedule.

C.2 Category C (part) Project Management and Administrative Cost Assumptions

1. Remaining years in permit term linked from Table 4 Preserve Monitoring Schedule.

2. Update annual management and administrative staff cost and cost allocation, Habitat Plan Environmental Consulting, and Land Manager Coordination costs from analysis of Cumulative Schedule of Receipts and Disbursements in SJMSCP Annual Report, supplemented as needed by cost code detail provided by SJCOG, Inc. staff.

3. Update Financial Plan fFive-Year Review and Update cost based on contracts.

4. Post permit cost updates by worksheet formula based on updates to detail in rows above.

C.3 Adjustments for Remaining Fund Balance
No input needed. Links and formulas calculate net Category C cost for remainder of permit term.

1. Costs for the remainder of the permit term by cost category linked from Table C.1 and C.2.

2. Category C fund balance as of prior year end for costs on existing preserves linked from Table 5.

C.4 SJMSCP Endowment Fund Cash Flow
This table uses estimates of annual post permit costs, existing fund balance allocated to post-permit costs (based on cumulative take to date as a share of total take), and interest earnings assumptions to estimate the endowment needed at the end of the permit term to fund annual costs in perpetuity.

This analysis is to be updated at each 5-year economic analysis review. The worksheet solves for fund balance amount in year 51 that generates the annual income to fully fund annual post permit costs. The worksheet calculates the annual fee revenue required over the remainder of the permit term to achieve that fund balance when added to the existing fund balance for management and administrative costs post permit and interest earnings over the remainder of the permit term. That amount is the total cost to be allocated by habitat type remaining to be acquired and links to DRAFT SJMSCP Cost and Fee Analysis 2023 Update_Mayo August 2022_2023 Annual w CPI.xlsx - NOTES TO USER - 8/11/2022 FINANCIAL ANALYSIS UPDATE Final Adopted August 27, 2020 C.5 Category C Monitoring and Project Management/Adminstration, including endowment for post-permit costs, Cost Allo No input needed. Links and formulas calculate cost for each habitat type. costs by habitat type.

2. Preserve acres remaining to be acquired linked from Table 2 (updated based on SJMSCP Annual Report).

C.6 Fee Calculations
No input needed. Links and formulas calculate fee for each habitat type.

1. Cost by habitat type linked from C.5.

2. Land conversion remaining linked from Table 3 (updated based on SJMSCP Annual Report).

DRAFT SJMSCP Cost and Fee Analysis 2023 Update_Mayo August 2022_2023 Annual w CPI.xlsx - NOTES TO USER - 8/11/2022 FINANCIAL ANALYSIS UPDATE Final Adopted August 27, 2020 Tables 1 - 5 (Source Tables)
Table 1 Land Conversion and Preserve Acres by Habitat Type for the 50-year permit term This table was finalized on June 4, 2015 as part of the Economic Analysis update. This table provides the source data by detailed habitat type for the 50-year permit term totals.

Table 2.1 Preserve Acres, Total and Remaining to be Acquired

1. Total Preserve Acres by habitat type linked from Table 1.

2. Annually, update Total Preserve Acres Acquired through 12/31 from the SJMSCP Annual Report. Note that as of the 2020 update and going forward, grassland acquired to mitigate agricultural land impacts has a new line item in Table

2.1. This amount is deducted from total grassland acquired in cell E11. worksheets.

Table 2.2 Preserves_Habitat_Zone_2019 (new in 2020 update) - ONLY USED ON 5-YEAR UPDATE Monitoring Schedule.
preserve to a habitat type and zone. Note that the habitat type represents the type of habitat acquired regardless of the type of impacts mitigated, i.e, grassland preserves acquired to mitigate agricultural impacts are categorized as grassland preserves in this table.

Table 3 Allowed and Remaining Incidental Take Acreage
1 and Table 4.2-2.

2. Annually, update the Cumulative Acres of Take through 12/31 from the SJMSCP Annual Report.

3. Remaining Acres of Land Conversion calculated by worksheet formula; links to cost and fee calculation worksheets.

UPDATE
This table is used in Table C.1 Monitoring Cost All Acres to calculate monitoring costs for the remainder of the permit term for all preserve acres, assuming future acquisition at an average annual pace calculated by dividing the number of acres remaining to be acquired by the number of years remaining in the permit term.

1. Preserve acres remaining to be acquired by zone linked from Table 2.1 (updated based on SJMSCP Annual Report) and Table 2.2 (updated every 5 years).

Column C.

DRAFT SJMSCP Cost and Fee Analysis 2023 Update_Mayo August 2022_2023 Annual w CPI.xlsx - NOTES TO USER - 8/11/2022 FINANCIAL ANALYSIS UPDATE Final Adopted August 27, 2020

3. At five-year update, double check the formula count of years remaining in permit term in cell C42. This is used as the denominator of the cell formulas for the monitoring schedule above.

DRAFT SJMSCP Cost and Fee Analysis 2023 Update_Mayo August 2022_2023 Annual w CPI.xlsx - NOTES TO USER - 8/11/2022 FINANCIAL ANALYSIS UPDATE Final Adopted August 27, 2020 Table 5 Fund Balance Allocation - ONLY USED IN 5-YEAR UPDATE This table is used in Table C.3 Permit Term Cost Adjustments to calculate the net Category C costs for the remainder of the permit term. Category B and Category C fund balance is allocated to permit term and post-permit needs.

1. Every 5 years, update the beginning fund balance from the 12/31 year-end statement.

2. Calculate Category B Fund Balance for Category B Enhancements (remaining enhancement cost for existing preserves) based on Table B.1 ExistingPreserveEnhanceCost (five-year update cost factors applied to existing preserves by type) and subtracting expenditures through the prior year-end on preserve enhancement.

3. Fund Balance for Post-Permit Costs on Existing Preserves is linked from Table C.4 Endowment. This fund balance adjustment is only required for the 2020 five-year update and will not be necessary in subsequent years once the separate post-permit endowment account is established.

4. The table subtracts the Fund Balance for Category B Enhancements and the Fund Balance for Post-Permit Costs on Existing Preserves from the year-end statement balance to generate Remaining Fund Balance for Permit Term Category C Costs on Existing Preserves. This result links to Table C.3 Permit Term Cost Adjustments.

DRAFT SJMSCP Cost and Fee Analysis 2023 Update_Mayo August 2022_2023 Annual w CPI.xlsx - NOTES TO USER - 8/11/2022 FINANCIAL ANALYSIS UPDATE Final Adopted August 27, 2020 Category A Category B Category C
2023 Fees - Proposed Acquisition Assessment &
Enhancement
Monitoring,
Management &
Administration, &
Post-permit
Endowment
Total Total Rounded
Other Open Space $6,358.00 $2,885.00 $385.55 $9,628.55 $9,629 Natural/Ag Lands $12,716.00 $5,769.00 $769.97 $19,254.97 $19,255 Vernal Pool Grasslands $58,927.00 $14,491.00 $1,901.76 $75,319.76 $75,320 Vernal Pool Wetted $57,912.00 $117,102.00 $1,864.45 $176,878.45 $176,878 Category A Category B Category C
2022 Fees - Adopted Acquisition Assessment &
Enhancement
Monitoring,
Management &
Administration, &
Post-permit
Endowment
Total Total Rounded
Other Open Space $6,797.00 $2,628.00 $356.00 $9,781.00 $9,781 Natural/Ag Lands $13,594.00 $5,256.00 $710.96 $19,560.96 $19,561 Vernal Pool Grasslands $65,307.00 $13,390.00 $1,756.01 $80,453.01 $80,453 Vernal Pool Wetted $64,182.00 $108,136.00 $1,721.56 $174,039.56 $174,040 Difference Per Acre ($) Acquisition Assessment &
Enhancement
Monitoring,
Management &
Administration, &
Post-permit
Endowment
Total Total Rounded
Other Open Space ($439) $257 $30 ($152) ($152)
Natural/Ag Lands ($878) $513 $59 ($306) ($306)
Vernal Pool Grasslands ($6,380) $1,101 $146 ($5,133) ($5,133) Vernal Pool Wetted ($6,270) $8,966 $143 $2,839 $2,839
Percent Difference Acquisition Assessment &
Enhancement
Monitoring,
Management &
Administration, &
Post-permit
Endowment
Total Total Rounded
Other Open Space -6.5% 9.8% 8.3% -1.6% -1.6%
Natural/Ag Lands -6.5% 9.8% 8.3% -1.6% -1.6%
Vernal Pool Grasslands -9.8% 8.2% 8.3% -6.4% -6.4%
Vernal Pool Wetted -9.8% 8.3% 8.3% 1.6% 1.6%
DRAFT SJMSCP Cost and Fee Analysis 2023 Update_Mayo August 2022_2023 Annual w CPI.xlsx - Fee Summary Comparison - 8/11/2022 FINANCIAL ANALYSIS UPDATE Final Adopted August 27, 2020 TABLE A.1
2020 Five-Year Economic Analysis and Fee Update
SJMSCP Fee Update - 2022 (for 2023 SJMSCP Development Fee Cycle) Category A Per-Acre Acquisition Cost Factors by Zone (2022 dollars) Central Zone Primary Zone of
the Delta
Southwest
Zone 3
Fee title value1 a $23,038 $18,086 na
Easement percent of fee title value2 b 58% 58% na
Easement costs a × b $13,362 $10,490 $1,000

1. SJCOG, Inc. Fee Study Property List, Table A and Table B

2. SJCOG, Inc. Appraisals as of June 2022

3. Based on standard easement cost in Southwest Zone of $1,000/acre.

DRAFT SJMSCP Cost and Fee Analysis 2023 Update_Mayo August 2022_2023 Annual w CPI.xlsx - A1 PerAcreCostFactorsbyZone - 8/11/2022 FINANCIAL ANALYSIS UPDATE Final Adopted August 27, 2020 TABLE A.2
2020 Five-Year Economic Analysis and Fee Update
SJMSCP Fee Update - 2022 (for 2023 SJMSCP Development Fee Cycle) Per Acre Acquisition Cost by Preserve/Habitat Type (2022 dollars) Preserve/Habitat Type
Central Zone Primary Zone of
the Delta
Southwest
Zone
A B C A + B + C = D D × 5% = E D + E
Easement cost by zone 1 d $13,362 $10,490 $1,000
Agricultural Lands
Percent in zone 2 e 98% 2% 0%
Weighted costs 3 d × e $13,121 $189 $0 $13,310 $666 $13,976 Natural Lands
Non-vernal pool natural lands
Percent in zone 2 f 77% 4% 18%
Weighted costs 3 d × f $10,323 $466 $183 $10,972 $549 $11,521 Vernal pool grasslands 4 n/a n/a n/a $18,430 $922 $19,352 Vernal pool wetted 4 n/a n/a n/a $18,430 $922 $19,352

1. See Table A.1.

2. Percent of total lands in each category assumed to be in a given zone. Based on 1996 Economic Analysis.

4. Assumes fee title acquisition for vernal pool lands. Vernal pool habitat fee title land costs assumed to be about 80% of average Central Zone fee title costs.

5. Transaction costs include biological baseline reporting, appraisal, escrow, and survey costs. Costs are estimated at 5 percent of acquisition cost.

SJMSCP Zone

3. Weighted average cost based on generalized proportion of total preserve land in each zone. Assumes easement acquisition for lands categorized as agriculture and all natural lands except vernal pool habitat.

Total
Weighted
Acquisition
Cost
Transaction
Costs 5
Total Land
Acquisition
Costs Per
Acre
DRAFT SJMSCP Cost and Fee Analysis 2023 Update_Mayo August 2022_2023 Annual w CPI.xlsx - A2 PerAcreAcquisitionCost - 8/11/2022 FINANCIAL ANALYSIS UPDATE Final Adopted August 27, 2020 TABLE A.3
2020 Five-Year Economic Analysis and Fee Update
SJMSCP Fee Update - 2022 (for 2023 SJMSCP Development Fee Cycle) Total Acquisition Costs by Habitat Type, Remainder of Permit Term (2022 dollars) Preserves by Habitat Type
Land
Acquisition
Cost Per Acre
Preserve Acres
Remaining to be
Acquired
Total Costs of
Acquisition
Agricultural lands $13,976 38,488.30 $537,912,495 Natural lands
Non-vernal pool natural lands $11,521 24,321.84 $280,211,919 Total for Non-vernal pool Natural /Ag Land $13,025 62,810.14 $818,124,414 Vernal pool grasslands $19,352 15,720.66 $304,226,116 Vernal pool wetted $19,352 2,115.00 $40,929,480 Sources: SJCOG, Inc., SJMSCP 2021 Annual Report, and Hausrath Economics Group.

DRAFT SJMSCP Cost and Fee Analysis 2023 Update_Mayo August 2022_2023 Annual w CPI.xlsx - A3 AcquisitionCostHabitatType - 8/11/2022 FINANCIAL ANALYSIS UPDATE Final Adopted August 27, 2020 TABLE A.4
2020 Five-Year Economic Analysis and Fee Update
SJMSCP Fee Update - 2022 (for 2023 SJMSCP Development Fee Cycle) Category A Acquisition
Fee Calculations (2022 dollars)
Habitat Type Preserve Land Acquisition
Costs associated with non-vernal pool natural/agricultural lands conversio $818,124,414 Natural (non vernal pool)/Agricultural land conversion (acres) , remaining 47,278.09 Multi-purpose open space conversion (acres), remaining1 34,122.94 Multiplier for natural/agricultural land conversion 1
Multiplier for multi-ourpose open space conversion1 0.5 Acquisition Component of Natural (non vernal pool)/Agricultural Lands F $12,716 Acquisition Component of Multi-Purpose Open Space Fee1 $6,358 Costs associated with vernal pool grasslands $304,226,116 Vernal pool grassland conversion (acres), remaining 5,162.74 Acquisition Component of Vernal Pool Grasslands Fee $58,927 Costs associated with vernal pool wetted $40,929,480
Vernal pool wetted conversion (acres), remaining 706.75 Acquisition Component of Vernal Pool Wetted Fee $57,912

1. As described in SJMSCP Section 7.4.1.2, the fee calculation allocates the costs associated with agricultural habitat and non-vernal pool natural lands preserves to conversion of both those high value lands (agricultural land and non- vernal pool natural land) and lower value multi-purpose open space. In other words, the SJMSCP does not enhance multi-purpose open space lands but allocates some of the costs of enhancements on agricultural and natural lands preserves to the conversion of multi-purpose open space lands to assist with the financing of those enhancements.

Sources: SJCOG, Inc., SJMSCP 2021 Annual Report, and Hausrath Economics Group.

DRAFT SJMSCP Cost and Fee Analysis 2023 Update_Mayo August 2022_2023 Annual w CPI.xlsx - A4 AcquisitionFEE - 8/11/2022 FINANCIAL ANALYSIS UPDATE Final Adopted August 27, 2020 TABLE B.1
2020 Five-Year Economic Analysis and Fee Update
SJMSCP Fee Update - 2022 (for 2023 SJMSCP Development Fee Cycle) Category B Assessment, Planning, Restoration and Enhancement Habitat Type
Total Preserve
Acres (including
neighboring lands
preserves)
Percent of
Preserve
Acres
Enhanced1
Acres Benefiting
from
Enhancements

Hedgerow or
Other Linear
Habitat Feature (
acres)2
Enhancement
Cost per Acre3
Total
Enhancement Cost
Enhancement
Cost per Preserve
Acre
1 2 3 4 5 6 7
Agricultural Habitat Lands4 57,935 10% 5,794 776 $80,276 $62,294,403 $1,075 Natural Lands
Ditches 378 33% 126 $350,502 $44,163,267 Grasslands 14,559 33% 4,853 $22,160 $107,544,159 Oak woodlands 858 33% 286 $32,789 $9,377,628 Riparian 2,725 33% 908 $96,105 $87,295,757 Submerged aquatic in the Delt 10 100% 10 $66,708 $667,085 Subtotal 18,530 6,183 $40,277 $249,047,895 Other natural lands5 6,445 33% 2,148 $40,277 $86,529,040 Subtotal Non VP Natural 24,975 $335,576,935 $13,437 Vernal pool wetted 2,121 33% 707 $117,249 $82,894,922 $39,083 Vernal pool grasslands 15,811 33% 5,270 $14,133 $74,486,412 $4,711 Subtotal All Natural Lands 42,907 14,309 $492,958,268 Total 100,842 20,103 $555,252,671

1. Enhancement criteria derived from the SJMSCP, Section 5.4.6.

5. Estimated based on the weighted average cost for all other non-vernal pool natural lands.

Sources: Table A.1, SJCOG, Inc., ICF, and Hausrath Economics Group

3. The enhancement cost applies to the acres where construction and/or installation actually takes place. In the case of hedgerows or other linear features, this is only the relatively small area of activity, not the total area that is thereby enhanced. Enhancement cost includes costs for materials, construction labor, and equipment. In addition to the installation activity, the cost per enhanced acre also includes a cost for project oversight and contract adminstration and three years of maintenance and monitoring. For vernal pool wetted restoration, the cost includes 5 monitoring years during a 10 year post-restoration monitoring period.

4. For agricultural habitat lands, a SJMSCP describes a broad range of enhancement activities and a generalized target of 10 percent enhancement; providing benefits to species without substantially reducing the amount of agricultural land in production. This can be achieved by implementing the linear features described in footnote 2. Pollinator hedgerows or similar linear features enhance the entire field that they are associated with, thereby counting toward the 10 percent enhancement criteria while taking substantially less land out of production.

2. Unlike most other habitat types, agricultural lands are enhanced by treating linear features that run along the edge of or through fields--features such as roads or drainage ditches. In these cases, the land area of direct enhancement activity is substantially less than that area benefiting from the enhancement. This has the advantage of minimizing impacts to agricultural land production. Installing pollinator hedgerows at the edges of fields and grassland borders along irrigation and drainage ditches, and planting nest trees and associated shrubs and grasses, are enhancements used in the cost analysis to represent the range of types of agricultural land enhancements outlined in the SJMSCP.

In addition to benefits to species, these linear features offer benefits of preventing soil erosion and reducing costs for weed control and linear water conveyance infrastructure maintenance. They also enhance the entire field they are associated with, meeting the 10 percent enhancement criterion while also minimizing loss of productive agricultural land. The enhancement cost estimate for agricultural lands is therefore based on the acres of hedgerow or other linear feature multiplied by the cost per acre to install hedgerows and similar linear features.

SJMSCP Preserve land by habitat type, enhancement analysis, and enhancement cost per preserve acre (2022 dollars) DRAFT SJMSCP Cost and Fee Analysis 2023 Update_Mayo August 2022_2023 Annual w CPI.xlsx - B1 PreserveEnhancementCost - 8/11/2022 FINANCIAL ANALYSIS UPDATE Final Adopted August 27, 2020 TABLE B.2
2020 Five-Year Economic Analysis and Fee Update
SJMSCP Fee Update - 2022 (for 2023 SJMSCP Development Fee Cycle) Category B Assessment, Planning, Restoration and Enhancement Cost Factors (2022 dollars) Remainder of Permit Term
Remaining years in permit term 29 used in formulae below to calculate costs for the remainder of the permit Biological Site Assessment
Number of site visits per year 8 assumes 6 hours per visit Annual cost $7,538
Total Site Assessment cost remainder of permit term $218,602 Preserve Management Plan Preparation
Number of management plans per year 12 assumes 40 hours per plan Annual cost $75,377
Total Preserve Management Plan cost remainder of permit t $2,185,933 Preserve Enhancement Plan Preparation
Average cost per enhancement plan $4,397 assumes 28 hours per plan for each enhancement project Average acres per project 240
Average cost per preserve acre $18
Preserve Enhancements on Agricultural Lands
Enhancement cost per preserve acre $1,075 from Table B1 Preserve Enhancements on Non-Vernal Pool Natural Lands
Enhancement cost per preserve acre $13,437 from Table B1 Vernal Pool Creation/Enhancement
Enhancement cost per preserve acre $39,083 from Table B1 Vernal Pool Upland Grassland Enhancement
Enhancement cost per preserve acre $4,711 from Table B1 Sources: SJCOG, Inc., SJMSCP 2021 Annual Report, ICF, and Hausrath Economics Group.

DRAFT SJMSCP Cost and Fee Analysis 2023 Update_Mayo August 2022_2023 Annual w CPI.xlsx - B2 AssessmentEnhancementCost - 8/11/2022 FINANCIAL ANALYSIS UPDATE Final Adopted August 27, 2020 TABLE B.3
2020 Five-Year Economic Analysis and Fee Update
SJMSCP Fee Update - 2022 (for 2023 SJMSCP Development Fee Cycle) Category B Assessment, Planning, Restoration and Enhancement (2022 dollars) Cost Allocation by Habitat Type
Remainder of Permit Term

multiplied by preserve
acres remaining to be
acquired
Preserves by Habitat Type
Acres Remaining
to be Acquired1
Percent
of Total
Biological Site
Assessment
Preserve
Management Plans
Preserve Enhancement
Plans
Preserve
Enhancements
Vernal Pool
Restoration
Agricultural lands 38,488.30 48% $104,328 $1,043,239 $692,789 $41,384,409 na Non-vernal pool natural lands 24,321.84 30% 65,928 659,252 437,793 $326,800,741 na Vernal pool grasslands 15,720.66 19% 42,613 426,114 282,972 $74,060,792 na Vernal pool wetted 2,115.00 3% 5,733 57,328 38,070 na $82,660,424 80,645.80 100% $218,602 $2,185,933 $1,451,624 $442,245,942 $82,660,424

1. Includes 600 acres of neighboring lands preserves.

2. SJCOG, Inc. spending through 12/31/19 on site visits and preserve management plans totals at least $400,000; assume all of these types of costs for existing preserves are included in spe Sources: SJCOG, Inc., SJMSCP 2021 Annual Report, ICF, and Hausrath Economics Group.

Costs - Remainder of Permit Term
Cost per acre multiplied by
preserve acres remaining to be
acquired
Total cost allocated by preserve type
percent of total preserve acres remaining
to be acquired2
DRAFT SJMSCP Cost and Fee Analysis 2023 Update_Mayo August 2022_2023 Annual w CPI.xlsx - B3 AssessEnhancementCostAlloc - 8/11/2022 FINANCIAL ANALYSIS UPDATE Final Adopted August 27, 2020 TABLE B.4
2020 Five-Year Economic Analysis and Fee Update
SJMSCP Fee Update - 2022 (for 2023 SJMSCP Development Fee Cycle) Category B Assessment, Planning, Restoration and Enhancement Fee Calculations (2022 dollars)
Remainder of Permit Term
Habitat Type
Biological
Site
Assessment
Preserve
Managemen
t Plans
Preserve
Enhancement
Plans
Agricultural and
Non VP Natural
Land
Enhancement
Total for
Agricultural and
Non VP Natural
Land (incl. assessment
and plans)
Vernal Pool
Restoration /
Enhancement
Total for
Vernal Pool
(incl. assessment
and plans)
Costs associated with non-vernal pool natural/agricultural lands conversi $170,256 $1,702,491 $1,130,582 $368,185,150 $371,188,479 Natural (non vernal pool)/Agricultural land conversion (acres), remaining 47,278.09 47,278.09 47,278.09 47,278.09 47,278.09 Multi-purpose open space conversion (acres), remaining1 34,122.94 34,122.94 34,122.94 34,122.94 34,122.94 Multiplier for natural/agricultural land conversion 1 1 1 1 1 Multiplier for multi-purpose open space conversion1 0.5 0.5 0.5 0.5 0.5 Assessment & Enhancement Component of Natural (non-vernal pool)/Agricultural Lands Fee $3 $26 $18 $5,723 $5,769
Assessment & Enhancement Component of Multi-Purpose Open Space $2 $13 $9 $2,862 $2,885 Costs associated with vernal pool grasslands $42,613 $426,114 $282,972 $74,060,792 $74,812,491 Vernal pool grassland conversion (acres), remaining 5,162.74 5,162.74 5,162.74 5,162.74 5,162.7 Assessment & Enhancement Component of Vernal Pool Grasslands Fee $8 $83 $55 $14,345 $14,491 Costs associated with vernal pool wetted $5,733 $57,328 $38,070 $82,660,424 $82,761,555 Vernal pool wetted conversion (acres), remaining 706.75 706.75 706.75 706.75 706.8 Assessment & Enhancement Component of Vernal Pool Wetted Fee $8 $81 $54 $116,959 $117,102 Sources: SJCOG, Inc., SJMSCP 2021 Annual Report, ICF, and Hausrath Economics Group.

1. As described in SJMSCP Section 7.4.1.2, the fee calculation allocates the costs associated with agricultural habitat and non-vernal pool natural lands preserves to conversion of both those high value lands (agricultural land and non-vernal pool natural land) and lower value multi-purpose open space. In other words, the SJMSCP does not enhance multi-purpose open space lands but allocates some of the costs of enhancements on agricultural and natural lands preserves to the conversion of multi-purpose open space lands to assist with the financing of those enhancements.

DRAFT SJMSCP Cost and Fee Analysis 2023 Update_Mayo August 2022_2023 Annual w CPI.xlsx - B4 AssessmentEnhancementFEE - 8/11/2022 FINANCIAL ANALYSIS UPDATE Final Adopted August 27, 2020 TABLE C.5 for Annual Update
2020 Five-Year Economic Analysis and Fee Update
SJMSCP Fee Update - 2022 (for 2023 SJMSCP Development Fee Cycle) Category C Monitoring and Program Management/Administration, including endowment for post-permit costs Fee Calculations (2022 dollars)
Habitat Type
Remainder of
Permit Term Post permit Total
Post Permit
% of Total
Fee
Costs associated with non-vernal pool natural/agricultural lands conversion $38,737,435 $6,809,704 $45,547,139 Non-vernal pool Natural/Agricultural land conversion (acres), remaining 49,654.31 49,654.31 49,654.31 Multi-purpose open space conversion (acres), remaining1 34,494.82 34,494.82 34,494.82 Multiplier for natural/agricultural land conversion 1 1 1 Multiplier for multi-purpose open space conversion1 0.5 0.5 0.5 Monitoring & Administration Component of Natural (non-vernal pool)/Agricultural Lands Fee $579 $102 $681 15%
Monitoring & Administration Component of Multi-Purpose Open Space Fe $290 $51 $341 15% Costs associated with vernal pool grasslands $7,387,258 $1,298,616 $8,685,874 Vernal pool grassland conversion (acres), remaining 5,163.08 5,163.08 5,163.08 Monitoring & Administration Component of Vernal Pool Grasslands Fee $1,431 $252 $1,682 15% Costs associated with vernal pool wetted $990,979 $174,206 $1,165,185 Vernal pool wetted conversion (acres), remaining 706.75 706.75 706.75 Monitoring & Administration Component of Vernal Pool Wetted Fee $1,402 $246 $1,649 15% Note: Net of existing fund balance allocated to Category C permit-term and post-permit costs.

Sources: SJCOG, Inc., SJMSCP 2021 Annual Report, ICF, Urban Economics, and Hausrath Economics Group.

1. The fee calculation allocates the costs associated with agricultural habitat and non-vernal pool natural lands preserves to conversion of both those high value lands (agricultural land and non-vernal pool natural land) and lower value multi-purpose open space, thereby assisting with the financing of management and monitoring on agricultural and natural lands preserves.

DRAFT SJMSCP Cost and Fee Analysis 2023 Update_Mayo August 2022_2023 Annual w CPI.xlsx - C MonitorAdminFEE - 8/11/2022 FINANCIAL ANALYSIS UPDATE Final Adopted August 27, 2020 TABLE 1
2020 Five-Year Economic Analysis and Fee Update
Land Conversion and Preserve Acres by Habitat Type for the 50-year Permit Term Habitat Type Land Conversion1
Number of Preserve
Acres to Land
Conversion Acres
Total Preserve
Acres for
Compensation
Neighboring Land
Protection
Preserves
Total All
Preserve
Acres
Percent
Total Acres
Agricultural lands2 57,635 1.00 57,635 300 57,935 57% Natural Lands
Ditches3 126 3.00 378 378 0.37% Grasslands4 4,853 3.00 14,559 14,559 14.44% Oak woodlands5 286 3.00 858 858 0.85% Riparian6 900 3.00 2,700 25 2,725 2.70% Submerged aquatic in the Delta Zone 3 3.00 10 10 0.01% Vernal pool grasslands7
VP - wetted surface area 707 3.00 2,121 2,121 2.10% VP - upland grassland 5,187 3.00 15,561 15,561 15.43% VP - Neighboring Land Protection preserves8 na 250 250 0.25% Other natural lands9 2,140 3.00 6,420 25 6,445 6.39% Subtotal Natural Lands 14,202 42,607 300 42,907 42.55% Total 71,837 100,242 600 100,842 100.00%

3. Drainage ditches (unlined) generally found in agricultural fields (D types).

4. Valley grasslands (G types) and Foothill grasslands (G2 types).

7. Vernal pool grasslands (G3 type) .

NOTE: In the following footnotes, "type" refers to the mapped habitat unit identified in the SJMSCP Biological Analysis (Chapter 2). The following footnotes provide summaries only and the reader should refer to the Biological Analysis for a detailed description of each habitat type.

5. Blue Oak woodlands, savanna and forests (BL types), Blue Oak Conifer woodlands, savanna and forests (BCN types), Valley Oak Woodland, savanna and forests (V types), and Mixed Oak Woodlands, savanna and forests (O types).

6. This category includes those portions of rivers and major streams located outside the Primary Zone of the Delta (Mokelumne, Calaveras, Stanislaus, and San Joaquin Rivers). These were originally included in a separate "Riparian Zone" during the SJMSCP planning process (i.e., "Riparian" refers to a zone rather than to the "Riparian" habitat type. The Riparian Zone was "absorbed" or combined into its surrounding zone (i.e., Central/Central-Southwest) in the final SJMSCP. It generally included River and Deep water channel (W), Tributary Streams (W2), Creeks-intermittent and perennial (W3, W3-i, W3-p), Dead-end sloughs (W-4) and their associated riparian habitats (Great Valley Riparian - R, R2, R3, R5, R4, S, S2). This category includes 25 acres of Neighboring Lands Protection Preserves for Valley elderberry longhorn beetle habitat.

9. This category includes all natural land types except for Vernal Pools. Cost estimates in this category are an average of the costs of acquiring, restoring, enhancing the Natural Land categories specified in the preceding categories excluding Vernal Pools. This category also includes natural lands not included in other categories: All Water Features (W types), Channel islands (I types), tule island and mudflat (I2) marsh, and Diablan sage scrub (S3 types) and all other types of Natural Lands.

8. The vernal pool preserves for Neighboring Land Protection consist of existing vernal pools (no creation requirement). Enhancements will benefit the tiger salamander.

2. Neighboring Land Protection Preserves consist of ditched agricultural lands providing habitat for giant garter snake and pond turtle and other lands as needed for compensation to other covered species associated with agricultural land preserves.

1. Land conversion includes results of Tier 1 and Tier 2 analyses. Agricultural land conversion includes 9,720 acres from Tier 2 Analysis and Natural Lands conversion includes 5,000 acres from Tier 2 Analysis of vernal pool conversion to orchards and vineyards and 744 acres of other natural lands conversion.

DRAFT SJMSCP Cost and Fee Analysis 2023 Update_Mayo August 2022_2023 Annual w CPI.xlsx - 1 SJMSCP Acres 6_4_2015 - 8/11/2022 FINANCIAL ANALYSIS UPDATE Final Adopted August 27, 2020 TABLE 2.1
2020 Five-Year Economic Analysis and Fee Update
Preserve Acres, Total and Remaining to be Acquired1
Preserve/Habitat Type
Total Preserve
Acres - 50-year
Permit
Total Preserve
Acres Acquired
through
12/31/20212
Total Preserve
Acres Remaining
to Be Acquired
(links to A.3, B.3.
and C.4)
Agricultural lands 57,935 11,403.699
Grasslands mitigating agricultural land impacts 8,043
Natural lands
Ditches 378 - 378.00 Grasslands 14,559 578.510 13,980.49 Oak woodlands 858 - 858.00 Riparian 2,725 44.050 2,680.95 Submerged aquatic in the Delta 10 - 10.00 Other natural lands 6,445 30.600 6,414.40 Subtotal non-vp natural lands 24,975 653.160 24,321.84 Total Non VP Natural/Ag Lands 82,910 20,099.859 62,810.14 Vernal pool wetted 2,121 6.000 2,115.00 Vernal pool grasslands 15,811 90.345 15,720.66 Total 100,842 20,196.204 80,645.80 Notes:

1. Includes six acres of vernal pool jumpstart.

Sources: Table 1 in this workbook, Table 6 from Annual Reports through 2019, and SJCOG Inc. staff.

2.The Mizuno Preserve (row and field crop agricultural land preserve) is recorded at 181.449 acres (3 decimals).

All other preserve acres recorded at 2 decimals or less. 38,488.30
DRAFT SJMSCP Cost and Fee Analysis 2023 Update_Mayo August 2022_2023 Annual w CPI.xlsx - 2.1 RemainingPreservetoAcquire - 8/11/2022 FINANCIAL ANALYSIS UPDATE Final Adopted August 27, 2020 Table 2.2
2020 Five-Year Economic Analysis and Fee Update
A. Preserves Acquired by Habitat Type and Zone as of 12/31/2019 Habitat Type Central Delta Southwest Vernal Pool Total
Agricultural lands 6,327.299 4,347.850 10,675.149 Natural lands
Ditches
Grasslands 243.250 7,121.280 7,364.530
Oak woodlands
Riparian 44.050
Submerged aquatic in the Delta
Other natural lands 30.600
Subtotal non-vp natural lands 317.900 - 7,121.280 - 7,439.180 Total Non VP Natural/Ag Lands 6,645.199 4,347.850 7,121.280 - 18,114.329 Vernal pool wetted 6.000 6.000
Vernal pool grasslands (upland) 71.760 18.585 90.345 Total 6,716.959 4,347.850 7,121.280 24.585 18,210.674 Source: SJMSCP 2019 Annual Report , Table 6 and Table 12 B. Preserves Acquired by Summary Habitat Type and Zone as of 12/31/2019 Habitat Type Central Delta Southwest Vernal Pool Total
Agricultural Land 6,327.299 4,347.850 - - 10,675.149 Natural Land 389.66 - 7,121.280 24.585 7,535.525 Total 6,716.959 4,347.850 7,121.280 24.585 18,210.674 Source: SJMSCP 2019 Annual Report , Table 6 and Table 12 C. Estimate of Future Southwest Zone Preserves, July 2020 2,500 Source: SJCOG, Inc. staff.

SJMSCP Index Zone
SJMSCP Index Zone
DRAFT SJMSCP Cost and Fee Analysis 2023 Update_Mayo August 2022_2023 Annual w CPI.xlsx - 2.2 Preserves_Habitat_Zone_2019 - 8/11/2022 FINANCIAL ANALYSIS UPDATE Final Adopted August 27, 2020 TABLE 3
2020 Five-Year Economic Analysis and Fee Update
Allowed and Remaining Incidental Take Acreage
Preserve/Habitat Type
Take Authorizations - 50-year
Permit (including multi-
purpose open space)1
Cumulative Acres
of Take through
12/31/2021
Remaining Acres of
Land Conversion (links
to A.4, B.4. and C.5)
Agriculture 57,635 18,070.29 39,564.71 Multi-purpose (other open space) 37,465 3,342.06 34,122.94 Natural lands
Vernal pool wetted 707 0.25 706.75 Vernal pool upland grassland 5,187 24.26 5,162.74 All other natural lands 8,308 594.95 7,713.38 Total 109,302 22,031.81 87,270.52 Notes:

1. Land conversion includes results of both Tier 1 and Tier 2 analysis. See Table 1 note 1.

Sources: Table 1 in this workbook, SJMSCP Table 1-1 and Table 4.2-2; SJCOG, Inc., 2021 Annual Report Table 4 DRAFT SJMSCP Cost and Fee Analysis 2023 Update_Mayo August 2022_2023 Annual w CPI.xlsx - 3 Cumulative Take_Remaining - 8/11/2022 RESOLUTION NO. 2022-____

A RESOLUTION OF THE LODI CITY COUNCIL SETTING

THE SAN JOAQUIN COUNTY MULTI-SPECIES HABITAT CONSERVATION AND OPEN SPACE PLAN DEVELOPMENT FEE SCHEDULE FOR 2023
========================================================================

WHEREAS, the City Council of the City of Lodi adopted an ordinance establishing the authority for collection of a Development Fee for the San Joaquin County Multi -Species Habitat Conservation and Open Space Plan (SJMSCP) for all new developments pursuant to the SJMSCP within the City of Lodi; and

WHEREAS, a “Fee Study” dated July 16, 2001, was prepared, which analyzed and identified the costs, funding, and cost -benefit of the San Joaquin County Multi -Species Habitat Conservation and Open Space Plan; and

WHEREAS, the purpose of the SJMSCP Development Fee is to finance the goals and objectives of the SJMSCP that include, but are not limited to , preserve land acquisition, preserve enhancement, land management, and administration that compensate for such lands lost as a result of future development in the City of Lodi and in San Joaquin County; and

WHEREAS, after considering the Fee Study and the testimony received at the public hearing, the Lodi City Council approved said report; and further found that the future development in the City of Lodi will need to compensate cumulative impacts to threatened, endangered, rare, and unlisted SJMSCP Covered Species and other wildlife and compensation for some non -wildlife related impacts to recreation, agriculture , scenic values and other beneficial Open Space uses; and

WHEREAS, an “Updated Fee Study” was prepared in 2006, 2011, 2016, 2020, and 2022 which analyzed and identified the costs and funding of the SJMSCP; and

WHEREAS, the SJMSCP Development Fees are divided into three categories: Category A – Acquisition; Category B – Enhancement; and Category C – Land Management/ Administration as seen in the table below; and

2023 SJMSCP Development Fees

WHEREAS, to ensure that the SJMSCP development fees keep pace with inflation, annual adjustments, based on the method set forth in this resolution, shall be made to the fees annually; and

WHEREAS, the method of annual adjustments was modified in 2011 , 2016, 2020 and again in 2022; and

Habitat Type Category A Category B Category C Total Fee Rounded Fee
Other Open
Space $6,358.00 $2,885.00 $385.55 $9,628.55 $9,629
Natural/Ag
Lands $12,716.00 $5,769.00 $769.97 $19,254.97 $19,255
Vernal Pool
Grasslands $58,927.00 $14,491.00 $1,901.76 $75,319.76 $75,320 Vernal Pool
Wetted $57,912.00 $117,102.00 $1,864.45 $176,878.45 $176,878 WHEREAS, the Updated Fee Study with the SJMSCP and the fee amendment were available for public inspection and review in the office of the City Clerk for more than ten days prior to the date of this Public Hearing.

NOW, THEREFORE, BE IT RESOLVED AND DETERMINED by the City Council of the City of Lodi as follows:

1. The City Council finds and declares that the purposes and uses of the Development Fee, and the determination of the reasonable relationship between the fees’ uses and the type of development project on which the fees are imposed, are all established in Ordinance 1707, and remain valid, and the City Council therefore adopts such determinations.

2. The City Council finds and dec lares that since adoption of Ordinance 170 7, the cost of land has decreased in San Joaquin County over the past year ; and that in order to maintain the reasonable relationship established by Ordinance 1707 , the adjustment represents a reduction to the Development Fee for the San Joaquin County Multi - Species Habitat Conservation and Open Space Plan.

3. The Development Fee for natural lands, agricultural land, vernal pool habitat and multi - purpose open space conversion shall be consistent with the table identif ied in Exhibit “A” and attached hereto.

4. The Fee provided in this resolution shall be effective on January 1, 2023.

5. That the Lodi City Council hereby approves the proposed Habitat Conservation and Open Space fee adjustment.

Dated: November 2, 2022
========================================================================

I hereby certify that Resolution No. 2022- ____ was passed and adopted by the City Council of the City of Lodi in a regular meeting held November 2, 2022, by the following vote:

AYES: COUNCIL MEMBERS –

NOES: COUNCIL MEMBERS –

ABSENT: COUNCIL MEMBERS –

ABSTAIN: COUNCIL MEMBERS –

OLIVIA NASHED
City Clerk

2022-_____
SJCOG, Inc.
555 East Weber Avenue ● Stockton, CA 95202 ● (209) 235-0600 ● FAX (209) 235-0438 San Joaquin County Multi-Species Habitat Conservation & Open Space Plan (SJMSCP)
2023 Updated Habitat Fees*
Habitat Type Fee Per Acre
Multi-Purpose Open Space $9,629
Natural $19,255
Agriculture $19,255
Vernal Pool - uplands $75,320
Vernal Pool - wetted $176,878
* Effective January 1, 2023 – December 31, 2023
\
2023 Endowment Fees with In-lieu Land**
Type of Preserve Enhancement
Cost/acre
Land
Management
Cost/acre

TOTAL PER
ACRE

ENDOWMENT
Agricultural Habitat Lands $5,769.00 $769.97 $6,539
Natural Lands $5,769.00 $769.97 $6,539
Vernal Pool Habitat
Vernal Pool Grasslands $14,491.00 $1,901.76 $16,393
Vernal Pool Wetted $117,102.00 $1,864.45 $118,966
** Effective January 1, 2023 – December 31, 2023 in lieu of fees to be used as the endowment for the dedicated land preserves (Category B + C) based on impacted acres.

VELB Mitigation
A special fee category shall apply when removal of the Valley Elderberry Long-horned Beatle (VELB) habitat of elderberry shrubs occurs. The fee shall be paid to SJCOG, Inc. or a VELB mitigation bank approved by the Permitting Agencies. The current fee, as established in the VELB Conservation Fund Account managed by the Center for Natural Lands Management, and approved by the USFWS, is $1,800 per VELB Unit (one unit= one stem over 1" in diameter at ground level which is removed). Fees shall be established by the JPA during preconstruction surveys (i.e., counts of stems to be removed with and without exit holes shall be completed during preconstruction surveys) and shall be paid to the JPA prior to ground disturbance or stem removal, whichever comes first.

Robert Rickman
CHAIR
David Bellinger

VICE CHAIR
Diane Nguyen

EXECUTIVE DIRECTOR
Member Agencies

CITIES OF

ESCALON,

LATHROP,
LODI,

MANTECA,
RIPON,

STOCKTON,
TRACY,
AND

THE COUNTY OF

SAN JOAQUIN
Exhibit A

AGENDA ITEM H-01

COUNCIL COMMUNICATION
APPR
OVED: ________________________________
Stephen Schwabauer, City Manager
AGENDA TITLE: Adopt Resolution Authorizing City Manager to Execute a Site Use and Services Agreement between the City of Lodi, California Department of Water Resources and Enchanted Rock Electric, LLC, a Texas limited liability company for the location of a 48 Megawatt Natural Gas Power Plant on City-owned Property Designated as APN 015-64-008 Located Adjacent to the Surface Water Treatment Plant (2001 W. Turner Road) M
EETING DATE: November 2, 2022
P
REPARED BY: City Manager
RE
COMMENDED ACTION: Adopt resolution authorizing City Manager to execute a site use and services agreement between the City of Lodi, California Department of Water Resources and Enchanted Rock Electric, LLC, a Texas limited liability company for the location of a 48 megawatt natural gas power plant on City-owned property designated as APN 015-64-008 located adjacent to the Surface Water Treatment Plant (2001 W. Turner Road).

B
ACKGROUND INFORMATION: During the 2022 Summer Heat Storm, Lodi staff learned of a significant power import constraint that caused rotating electric outages over a 6.5 hour period on September 7th. While Lodi generates or purchases all of its own electricity, Lodi is dependent on three PG&E 60 kV lines to transmit the power Lodi generates into the city.

T
he relays protecting one of the three lines failed and took most of a day to repair. Crews worked admirably to repair the relays, but notwithstanding heroic efforts Lodi still endured historic rotating outrages on one of the hottest days of the year endangering businesses and residents.

W
hile PG&E’s transmission lines are supposed to be sized to handle Lodi’s load even when one line is down, PG&E is under resourced on its transmission system throughout its service area. Indeed communities in the north state are being denied service for new subdivisions and even a community hospital because of PG&E transmission constraints. Staff met with PG&E to discuss their plan to resolve Lodi’s constraints and determined that PG&E will not take any action to address them beyond the 230 kV project currently scheduled for construction in 2028. As such, Lodi remains exposed to significant rotating outages until at least 2028.

For
tuitously, the State of California has recognized its own generation constraints on high power demand days and is looking to locate generation resources throughout the State of California at the State’s expense through the State’s contractor, Enchanted Rock Electric, LLC.

Lodi
staff has negotiated a Site Use and Services Agreement with Enchanted Rock, LLC and the California Department of Water Resources (CDWR) to locate one of these generation resources within the City of Lodi.

Adopt Resolution Authorizing City Manager to Execute a Site Use and Services Agreement between the City of Lodi, California Department of Water Resources and Enchanted Rock Electric, LLC, a Texas limited liability company for the location of a 48 Megawatt Natural Gas Power Plant on City- owned Property Designated as APN 015-64-008 Located Adjacent to the Surface Water Treatment Plant (2001 W. Turner Road) November 2, 2022

Since the project will connect directly to Lodi’s transmission system it will help resolve both the State’s generation constraints and the PG&E import constraint on record hot days and during local emergencies.

The proposed Site Use and Services Agreement, (Agreement) attached as Exhibit A, also has other significant benefits to the City. In exchange for access to 1.25 acres adjacent to the surface water treatment plant on Turner Road, CDWR through Enchanted Rock, LLC will pay Lodi $2.8 million per year for an annual site license fee. The term of the Agreement will be five years (commencing January 1, 2023).

On termination of the Agreement, the City will have the option to purchase the generation resources for $11.2 million, leaving a minimum of $2.8 million in paid license fees to develop the west side of Lodi Lake park or another use to be determined by the City Council. Following the City’s exercise of the option to purchase, Lodi and DWR would share the rights to the power generated from the facility over stepped-in over a three (3) year period (75% CDWR / 25% Lodi in year 1, 50/50 in year two, 25%/75% in year three, and 100 percent Lodi in year 4.) During the phase in period Lodi would be responsible for operation and maintenance costs for the facility. However, CDWR would remain responsible for purchased gas cost for its percentage of capacity ownership.

The City will also construct the interconnection facilities, and provide contract services necessary for the project to connect to the City system for a not to exceed price of $4,150,000 and collect $125,000 for its administrative costs and $25,000 to remediate the loss of two valley oaks necessary to locate the generation resources. Remediation will consist of the installation of irrigation and 10- 24” valley oak trees on the reminder of the site (APN 015-54-008).

As previously mentioned, this project is being constructed under special state legislation, AB 205, exempts the project from normal CEQA requirements. However, the project will assist in meeting many of California’s environmental goals and be a good neighbor to the area it is located. Enchanted Rock Electric, LLC will perform a sound study and construct a sound wall if necessary to meet Lodi’s 50 dB standard. Moreover, the project will only be eligible to run during statewide or local power emergencies, typically on extremely hot days when people will not be outside and absent the plant being here, would be suffering rotating power outages.

In Staff’s assessment, Lodi is extremely fortunate to have this opportunity to supplement power generating resources. The project will help mitigate the import constraints while we await the 230 kV Project and provide the City revenue to develop Lodi Lake or pursue other City Council Priorities.

As such Staff recommends that the City Council authorize the City Manager to execute a Site Use and Services Agreement with the California Department of Water Resources and Enchanted Rock Electric, LLC, in a form substantially similar to Exhibit A. Prior to execution the Agreement will be finalized to include a description of the interconnect facility (Section 3), the legal description of the site and license area (Exhibit A).

Staff also recommends that Council authorize the City Manager to make such additional revisions or additions as may be necessary, excluding those impacting project term and revenue, subject to approval as to form by the City Attorney.

FISCAL IMPACT: Up to $21 million in revenue to the General Fund, plus the provision of electric reliability to protect the residents and business of the City

FUNDING AVAILABLE: Not Applicable.
___________________________
Stephen Schwabauer
City Manager

Attachments: Resolution
Exhibit A – Site Use and Services Agreement
Exhibit B – Assessor’s Parcel Map of the Property
RESOLUTION NO. 2022-____

A RESOLUTION OF THE LODI CITY COUNCIL AUTHORIZING THE CITY MANAGER TO

EXECUTE A SITE USE AND SERVICES AGREEMENT BETWEEN THE CITY OF LODI,

CALIFORNIA DEPARTMENT OF WATER RESOURCES AND ENCHANTED ROCK ELECTRIC, LLC, A TEXAS LIMITED LIABILITY COMPANY FOR THE LOCATION OF A 48

MEGAWATT NATURAL GAS POWER PLANT ON CITY-OWNED PROPERTY DESIGNATED AS APN 015-64-008 LOCATED ADJACENT TO THE SURFACE WATER TREATMENT PLANT (2001 WEST TURNER ROAD)
========================================================================

WHEREAS, the California Department of Water Resources has contracted with Enchanted Rock Electric, LLC to locate power generation resources in the State of California pursuant to Special Legislation (AB 205); and

WHEREAS, the City of Lodi suffers from Power Importation Constraints on the PG&E Transmission Lines that import Lodi’s Electric Supply; and

WHEREAS, Lodi has available land to locate a portion of the power generation resources sought by the California Department of Water Resources; and

WHEREAS, City staff has negotiated a Site Use and Services Agreement that encompasses the design, installation, testing, commission, operation, maintenance, and decommissioning of a natural gas power generation resources in a form substantially similar to Exhibit A attached hereto and made a part hereof.

NOW, THEREFORE, BE IT RESOLVED, that the Lodi City Council does hereby resolve that the City Manager is authorized to execute a Site Use and Services Agreement with the California Department of Water Resources and Enchanted Rock Electric, LLC, in a form substantially similar to Exhibit A. Prior to execution, the Agreement will be finalized to include a description of the interconnect facility (Section 3) and the legal description of the site and license area (Exhibit A). The Council further authorizes the City Manager to make such additional revisions or additions to the Agreement as may be necessary, excluding those impacting project term and revenue, subject to approval as to form by the City Attorney.

Dated: November 2, 2022
=======================================================================

I hereby certi fy that Resolution No. 2022-__ was passed and adopted by the City Council of the City of Lodi in a regular meeting held November 2, 2022 by the following votes:

AYES: COUNCIL MEMBERS –

NOES: COUNCIL MEMBERS –

ABSENT: COUNCIL MEMBERS –

ABSTAIN: COUNCIL MEMBERS –

OLIVIA NASHED
City Clerk

2022-_____

EXHIBIT A

SITE USE AND SERVICES AGREEMENT

BETWEEN
CITY OF LODI, a municipal corporation (OWNER)
ENCHANTED ROCK ELECTRIC, LLC, a Texas limited liability company (LICENSEE)

CALIFORNIA DEPARTMENT OF WATER RESOURCES (CDWR)

Project Description:
48 Megawatt Natural Gas Power Plant
2001 W. Turner Road
APN 015-64-008
i

4889-1345-6954v.2 0114986-000003
Table of Contents

1. Definitions ................................................................................................................................ 2

2. Use of Site & Scheduling Services ........................................................................................... 7

3. Installation of the Facility ........................................................................................................ 8

4. Term....................................................................................................................................... 10

5. Purchase Option ..................................................................................................................... 11

6. Compensation; Billing ........................................................................................................... 12

7. Force Majeure ........................................................................................................................ 13

8. Events of Default ................................................................................................................... 14

9. Remedies; Termination Rights ............................................................................................... 15

10. Obligations Upon Termination .............................................................................................. 16

11. Indemnification ...................................................................................................................... 17

12. Insurance ................................................................................................................................ 18

13. Representations and Warranties ............................................................................................. 18

14. Limitations of Liability .......................................................................................................... 19

15. Assignment ............................................................................................................................ 20

16. Confidentiality ....................................................................................................................... 20

17. Notices ................................................................................................................................... 21

18. General ................................................................................................................................... 21

SITE USE AND SERVICES AGREEMENT
THIS SITE USE AND SERVICES AGREEMENT (“Agreement”), dated as of October ____, 2022 (“Effective Date”), is made and entered into by and between the City of Lodi, a municipal corporation (“Owner”) and Enchanted Rock Electric, LLC, a Texas limited liability company qualified to do business in California (“Licensee”), and solely for purposes of Section 5, the California Department of Water Resources (“CDWR”). Each of Owner, Licensee, and CDWR are also referred to herein as a “Party” and collectively as the “Parties”.

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RECITALS
A. WHEREAS, pursuant to, inter alia, California Water Code section 80710, subdivision (b)(1)(B), CDWR is implementing the Electricity Supply Strategic Reliability Reserve Program created by California Assembly Bill 205, as amended by Assembly Bill 209 (“Program”), under which CDWR, to secure generation resources for summer electrical reliability, may construct, own and operate, or contract for the construction and operation of, contract for the purchase of electricity from, or finance through loans, reimbursement agreements, or other contracts new emergency and temporary power generators of five megawatts or more; and B. WHEREAS, Licensee has contracted with CDWR to design, install, test, commission, operate, maintain and decommission certain natural gas distributed generation projects and related equipment and facilities required in connection with installing, testing, commissioning, operating, maintaining and decommissioning such projects (each, a “Facility”) on behalf of CDWR; and
C. WHEREAS, Owner owns the Site (as defined below), which can site and support a Facility on a temporary basis to allow the Facility to be used to provide some of the additional energy supplies required by the State of California during the period of this Agreement; and
D. WHEREAS, Owner intends to grant Licensee a license to use the Site on the terms and conditions set forth herein; and
E. WHEREAS, the Parties understand that the Site is only available on a temporary basis as provided in this Agreement, and the Facility will, subject to the purchase option herein, be required to be decommissioned and removed from the Site on or before the expiration of the term of this Agreement.

NOW, THEREFORE, for good and valuable consideration, the Parties agree as follows:

1. Definitions.
(a) When used herein, the following capitalized terms will have the meanings set forth below:
“Affiliate” means, with respect to any Person, each other Person that, directly or indirectly, through one or more intermediaries, controls, or is controlled by, that Person. For the purposes of this definition, “control” (including, with correlative meanings, the terms “controlled by” and “under common control with”), as used with respect to any Person, means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of such Person, whether through the ownership of voting securities or by contract or otherwise.

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“Balancing Authority Tariff” means the tariff and protocol provisions of the California Balancing Authority. For the avoidance of doubt, the CAISO Tariff is the Balancing Authority Tariff if referring to the CAISO as the applicable California Balancing Authority. “Bankrupt” means with respect to any entity, such entity (i) files a petition or otherwise commences, authorizes or acquiesces in the commencement of a proceeding or cause of action under any bankruptcy, insolvency, reorganization or similar law, or has any such petition filed or commenced against it and such petition filed or commenced against it is not stayed or dismissed within ninety (90) days thereafter, (ii) makes an assignment or any general arrangement for the benefit of creditors, (iii) otherwise becomes bankrupt or insolvent (however evidenced), (iv) has a liquidator, administrator, receiver, trustee, conservator or similar official appointed with respect to it or any substantial portion of its property or assets, or (v) is generally unable to pay its debts as they become due.
“Business Day” means any day other than Saturday, Sunday, and any day that is a holiday observed by Federal Reserve member banks in San Francisco, California. “CAISO”
means the California Independent System Operator Corporation or any successor entity performing similar functions.
“CAISO Tariff ” means the California Independent System Operator Corporation Agreement and Tariff, Business Practice Manuals (BPMs), and Operating Procedures, as the same may be amended or modified from time-to-time and approved by FERC. “California Balancing Authority” means the responsible entity that integrates resource plans ahead of time, maintains load- interchange generation balance within a balancing authority area, and supports interconnection frequency in real time, with control over a balancing authority area primarily located in California and operating for retail sellers and local publicly owned electric utilities and includes the CAISO and a local publicly owned electric utility operating a transmission grid that is not under the operational control of the CAISO. “CEC” means the California Energy Commission, or any successor agency performing similar functions.
“Claiming Party´ has the meaning defined in Section 7(b). "Confidential Information” means any information disclosed in writing by one Party to the other Party that is or relates to (a) the terms and conditions of, and proposals and negotiations related to, this Agreement, (b) engineering specifications, pricing, trade secrets, technical data, methods, designs, software, inventions, techniques, strategies, product specifications, financial information, internal memoranda and correspondence, and third-party confidential information as well as all analyses, compilations, data, studies, note s, translations, memoranda or other documents prepared by the Receiving Party containing or based in whole or in part on any Confidential Information, or (c) information that the Disclosing Party stamps or otherwise identifies as “confidential” or “proprietary” before disclosing it to the Receiving Party; provided however, that Confidential Information shall not include (i) information that was publicly available at the time of the disclosure, other than as a result of a disclosure in breach of this Agreement; (ii) information that becomes publicly available through no fault of the Receiving

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Party after the time of the delivery; (iii) information that was rightfully in the possession of the Receiving Party (without confidential or proprietary restriction) at the time of delivery or that becomes available to the Receiving Party from a source not subject to any restriction against disclosing such information to the Receiving Party; and (iv) information that the Receiving Party independently developed without a violation of this Agreement. “Contract Year” means, as applicable, (i) the period from the Effective Date through December 31, 2022 and (ii) each subsequent calendar year thereafter. “Decommissioning Plan” has the meaning defined in Section 3(e). “Defaulting Party” has the meaning set forth in Section 8. “Early Termination Date” has the meaning set forth in Section 9(a)(i). “Effective Date” has the meaning set forth on the Preamble. “Energy Services Agreement” has the meaning defined in Section 2(f). “Event of Default” has the meaning defined in Section 8. “Facility Agreements ” shall mean, for the Facility, as applicable, its (i) Participating Generator Agreement, (ii) Meter Service Agreement, (iii) the Local Utility Interconnection Agreement, and (iv) Energy Imbalance Market Participating Resource Agreement. “Force Majeure” has the meaning defined in Section 7(a). “Good Industry Practice ” means those practices, methods and acts that would be implemented and followed by prudent builders and operators of electric generation facilities similar to the Facility in the western United States during the relevant time period, which practices, methods and acts, in the exercise of prudent and responsible professional judgment in the light of the facts known at the time the decision was made, could reasonably have been expected to accomplish the desired result consistent with good business practices, reliability and safety, and shall include, at a minimum, those professionally responsible practices, methods and acts described in the preceding sentence that comply with manufacturers’ wa rranties, restrictions in this Agreement, and the requirements of governmental authorities, WECC standards, the applicable California Balancing Authority and applicable Laws. Good Industry Practice is not intended to be the optimum practice, method or act to the exclusion of all others, but rather is intended to be any of the practices, methods and/or actions generally accepted in the region. “Governmental Authority” means any federal, state, local or municipal government, any political subdivision thereof or any other governmental, regulatory or judicial instrumentality, authority, body, agency, department, bureau, or entity with authority to bind a Party at law, including the applicable California Balancing Authority; provided, however, that “Governmental Authority” shall not in any event include any Party.
“Hazardous Substances” means (a) any chemical, material or substance that is listed or regulated under applicable Laws as a “hazardous” or “toxic” substance or waste, or as a

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“contaminant” or “pollutant” or words of similar import, (b) any petroleum or petroleum products, flammable materials, explosives, radioactive materials, asbestos, urea formaldehyde foam insulation, and transformers or other equipment that contain polychlorinated biphenyls, and (c) any other chemical or other material or substance, exposure to which is prohibited, limited or regulated by any Laws.
“Indemnified
Party’ means (i) if Licensee is the Indemnifying Party, each Owner Indemnified Party, and (ii) if Owner is the Indemnifying Party, each Licensee Indemnified Party.
“Indemnifying Party” means (i) with respect to the indemnification obligations under Section 11(a), Licensee, and (ii) with respect to the indemnification obligations under Section 11(b), Owner.
“Law” means any law, statute, rule, regulation, decision, writ, order, decree or judgment, permit, license or authorization, or any interpretation thereof, promulgated, adopted or issued by a Governmental Authority.
“Lender” means, individually and collectively, any bank, fina ncial institution, insurance company or other lender, including its or their agents and trustees, providing Owner and/or its Affiliates with financing or other credit facilities.
“License” has the meaning defined in Section 2(a).
“License Area” means the area designated “License Area” on Exhibit A “License Fee” has the meaning defined in Section 6(a).
“Losses” has the meaning defined in Section 11(a).
“Non-Defaulting Party” has the meaning defined in Section 9(a). “Owner Indemnified Parties” has the meaning defined in Section 11(a). “Owner Supplied Facilities” has the meaning defined in Section 3(g). “Owner’s Reimbursable Site Costs” has the meaning defined in Section 3(g). “Owner’s Representative” has the meaning defined in Section 3(k). “Permit” means any permit, authorization, consent, approval, agreement, license, order, filing, waiver, exception, variance or exemption filed with or issued by any Governmental Authority and shall include those siting and operating permits and licenses required for the installation, testing, commissioning, operation, maintenance, decommissioning or removal of the Facility in compliance with all applicable Laws.
“Person” means any individual, sole proprietorship, corporation, limited liability company, limited or general partnership, joint venture, association, joint-stock company, trust, incorporated

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organization, institution, public benefit corporation, unincorporated organization, government entity or other entity.
“Requested Confidential Information” has the meaning defined in Section 16(b). “Required Permits” are those listed in Exhibit F attached hereto. “Site” means the real property described as the “Site” on Exhibit A attached hereto. “Site Plan” means Exhibit A attached hereto.
“System Sale, Operation, Maintenance & Services Agreement” means the agreement between Licensee, Enchanted Rock Ops, LLC and CDWR dated October 15, 2022 for the design, installation, testing, commissioning, operation, maintenance and decommissioning of the Facility.
“Transmission Owner” means Pacific Gas and Electric Company. “WECC” means Western Electricity Coordinating Council.
(b) The following rules of interpretation shall apply to this Agreement, unless otherwise specified or required by the context:
(i) Terms defined in the singular shall include the plural and vice versa; (ii) References to “Sections” and “Exhibits” shall be to sections or exhibits of this Agreement;
(iii) All references to a particular entity shall include a reference to such entity’s successors and permitted assigns;
(iv) The words “herein,” “hereof,” and “hereunder” shall refer to this Agreement as a whole and not to any particular section or subsection hereof; (v) References to this Agreement shall include a reference to all exhibits hereto, as the same may be amended, modified, supplemented, or replaced from time to time;
(vi) Terms used in the masculine shall include the feminine and vice versa; (vii) The terms “include” and “including,” when used in this Agreement, shall mean to include without limitation; and
(viii) The term “day” when used in this Agreement shall mean a calendar day unless specified otherwise.

Capitalized terms, used but not otherwise defined herein, shall have the meaning ascribed to them in the applicable California Balancing Authority Tariff.

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2. Use of Site & Scheduling Services.
(a) Subject to Section 2( e) below, Owner hereby grants to Licensee, on and subject to the terms of this Agreement, a license to use the License Area for the purposes of installing, testing, commissioning, operating, maintaining and decommissioning the Facility (the “License”).
(b) Subject to Section 2(e) below, the License will be an exclusive license with respect to the area on which the Facility is physically located, but the use of the License Area pursuant to the License shall be strictly limited to the purposes described in Section 2(a) and must comply with the terms and conditions of this Agreement. Licensee shall be permitted to sublicense all of its rights and obligations under this Agreement without the prior consent of Owner, including sublicensing the License to CDWR.
(c) The License granted under this Agreement is a license only and does not convey any estate or interest in real property or any right or interest to use or occupy the Site or the License Area beyond the Term or other than as expressly provided in this Agreement.

Owner does not pursuant to this Agreement undertake any obligations with respect to the operation or maintenance of the Facility.
(d) All use of the License by Licensee, its agents, employees, representatives, contractors and consultants, shall comply with applicable Law and Permits, as well as with Owner’s site safety and security rules as in effect from time to time. All Persons entering on to or using the License Area shall be required to sign an agreement acknowledging such site safety and security rules and agreeing to comply with them. (e) The Parties acknowledge and agree that the Site Plan that is attached to this Agreement as of the Effective Date is preliminary in nature and does not fully delineate the Site, or the License Area. In general, the Site and the License Area will be located within the boundary shown on Exhibit A. The Parties intend to finalize the Site Plan as they develop more detailed construction specifications for the installation of the Facility and agree that they will amend this Agreement to attach an updated Site Plan that fully delineates the Site or the License Area as soon as it is final and in all events before testing and commissioning of the Facility begins.
(f) During the Term, if requested by Licensee (a “Scheduling Request”), Owner shall serve, or cause a third party to serve, as the Scheduling Coordinator for the Facility.

Following a Scheduling Request, Owner shall execute, or cause to be executed, an energy services agreement with the Scheduling Coordinator, for the Schedul ing Coordinator services contemplated herein (“Energy Services Agreement”). Owner shall coordinate with Licensee on negotiating the terms and conditions of the Energy Services Agreement and Licensee must approve the terms and conditions prior to the execution of the Energy Services Agreement. Following a Scheduling Request, Owner shall take all actions and execute and deliver to the California Balancing Authority all documents necessary to authorize, designate or maintain the applicable party as the Scheduling Coordinator for the Facility. Owner’s obligations under this Secti on 2(f) are subject to (i) the receipt of all the Required Permits and confirmation that each Facility is capable of operating in accordance with such Required

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Permits and (ii) the Facility having obtained all necessary approvals and certifications to operate in the applicable California Balancing Authority.

(g) Owner acknowledges and agrees that the Facility shall be dispatched in accordance with the Dispatch Protocols as set forth in and developed pursuant to the System Sale, Operation, Maintenance & Servic es Agreement between Licensee and CDWR .

Following a Scheduling Request, Owner or its designated third party shall submit schedules for the Facility as dictated by the Dispatch Protocols or the California Balancing Authority; provided that, if there is a conflict between instructions given by the Dispatch Protocols and instructions given by a California Balancing Authority, the instructions given by the California Balancing Authority shall govern. Following a Scheduling Request, Owner or its designated third party shall also submit any updates to such schedules as instructed by the Dispatch Protocols or the applicable California Balancing Authority in accordance with the Balancing Authority Tariff, applicable Law and Required Permits and Good Industry Practices.

(h) Owner acknowledges and agrees that Licensee shall receive all California Balancing Authority revenues and credits with respect to the Facility for the benefit of, and to be transferred to, CDWR.
(i) Subject to timely receipt of all necessary information from Licensee, Owner will notify the California Balancing Authority, as and to the extent required by the Balancing Authority Tariff, including on a real time basis as necessary, with respect to the availability of the Facility and any outages affecting a Facility or its meteorological stations and monitoring systems, its SCADA system and any telemetry or communications links used to transmit the Facility’s availability or operating status and the local meteorological conditions to the California Balancing Authority, in accordance with the Balancing Authority Tariff.

3. Installation of the Facility.
(a) Except as expressly provided in Section 3(g), Licensee and its contractors will be fully responsible for the design, purchase, delivery, installation, testing, commissioning, operation, maintenance, decommissioning and removal of the Facility and for the acts and omissions of any other contractors or subcontractors eng aged by Licensee. Except for Owner’s obligation to provide the License for the License Area and to make the Owner Supplied Facilities available to Licensee, Licensee and its contractors will be responsible for all work necessary to design, install, test and commission the Facility. (b) Licensee will keep the Site and the License Area and all other property of Owner and its Affiliates free and clean of all mechanic’s and materialmen’s liens and other liens relating to payment or nonpayment of such costs and will pay or discharge any such liens within forty-five (45) days after notice thereof from Owner. If Licensee fails to do so, Owner may, without limiting its rights under Sections 8 or 9, pay or discharge any or all such liens, and Licensee shall promptly reimburse Owner for all amounts incurred in connection with the payment or discharge of such liens, including all amounts paid to the lienor, attorneys’ fees, filing or recording fees and title insurance costs. Licensee and its contractors will also be responsible for site safety and security with respect to all work in or use of the

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License Area. All site safety and security plans by Licensee and its c ontractors shall be consistent with Owner’s site safety and security rules and shall be subject to Owner’s prior review and approval, which will not be unreasonably withheld, but any such approval shall not be an approval of any acts or omissions of Licensee or its contractors or any assumption of any obligation or responsibility with respect to site safety or security with respect to work in or use of the License Area.
(c) In connection with the installation of the Facility , Owner will provide the following (the “Owner Supplied Facilities”):
(i) Owner will provide an interconnection to its [insert description of interconnect facility] in the location shown or to be shown on the Site Plan and/or Installation Plans and Specifications.
(ii) Owner will provide an interconnection to telemetry and communication facilities for communicating with the applicable California Balancing Authority and the Transmission Owner in the location shown or to be shown on the Site Plan and/or Installation Plans and Specifications.

Licensee will be responsible for all interconnections between the Facility and the Owner Supplied Facilities; provided that, Owner shall cooperate with Licensee and if applicable, execute, any necessary Facility Agreements . Licensee will reimburse Owner for all third party costs and expenses reasonably incurred by Owner and its Affiliates in making the Owner Supplied Facilities available to Licensee, including (A) electrical interconnection fees, costs and charges associated with establishing, confirming, upgrading or maintaining the interconnection of the Facility to the applicable California Balancing Authority grid , ( B) costs of preparing and, if necessary, modifying the [insert interconnection facility description], and (C) administrative and management costs incurred in connection with the foregoing prior (collectively, “Owner’s Reimbursable Site Costs”); provided that Owner’s Reimbursable Site Costs incurred through testing and commissioning of the Facility shall not in the aggregate exceed $4,300,000 without Licensee’s written consent. The Parties recognize that certain Owner’s Reimbursable Site Costs may be incurred or billed after the Facility is tested and commissioned and agree that such Owner’s Reimbursable Site Costs will be billed periodically as provided in Section 6(c). Owner will use commercially reasonable efforts to make the Owner Supplied Facilities on or before May 30 , 2023. The Parties acknowledge and agree that this Agreement may be terminated for various reasons provided for herein prior to the Facility having been installed, tested and commissioned, but agree that, so long as Owner uses commercially reasonable efforts to carry out its obligations under this Agreement and to make the Owner Supplied Facilities available to Licensee, Licensee will reimburse Owner and its Affiliates for all Owner’s Reimbursable Site Costs incurred hereunder (but not in excess of the maximum amount set forth above), regardless of whether or not the Facility is ultimately installed, tested and commissioned. (d) The Owner Supplied Facilities are supplied without warranty, and, while Owner will undertake the repair and maintenance of the Owner Supplied Facilities in accordance with Good Industry Practices, all costs and expenses of such repair and

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maintenance shall be included in Owner’s Reimbursable Site Costs and reimbursed to Owner as provided herein.
(e) Not later than the earlier of (i) July 1, 2027 if the Renewal Option has not been exercised, (ii) January 1, 2 030 if the Renewal Option has been exercised or (ii) sixty (60) days after an Early Termination Date, Licensee will provide Owner a plan for decommissioning the Facility in accordance with applicable Laws and Permits (the “Decommissioning Plan ”), for Owner’s review and approval, which will not be unreasonably withheld. Owner will review the Decommissioning Plan and provide any proposed changes within five (5) days after receipt, and Licensee will make any changes to the Decommissioning Plan necessary to comply with applicable Law or Permits or this Agreement. Once agreed, the Decommissioning Plan will be attached to this Agreement as Exhibit E, but failure to attach the Decommissioning Plan as an exhibit or to agree on a Decommissioning Plan will not relieve Licensee of its obligation to decommission the Facility at the end of the Term in accordance with the requirements of applicable Law and Permit and this Agreement.
(f) Owner will designate one or more individuals (collectively, “ Owner’s Representative”) to act as the point of contact between Owner and Licensee and its contractors and will notify Licensee of the name and contact information of such Owner Representative. Licensee will also designate one or more individuals (collectively, “Licensee’s Representative”) to act as the point of contact for Licensee and will notify Owner of the name and contact information of Licensee’s Representative. Owner’s Representative will coordinate with Licensee in connection with the installation, testing, commissioning, decommissioning and removal of the Facility, including coordination of the schedules for work to be done by Licensee and by Owner, respectively; provided that no such coordination or other activities by Owner’s Representative shall be considered an approval of or assumption of liability with respect to any work done by Licensee or its contractors.
(g) CDWR will be the owner of and have title to the Facility, including the equipment and facilities installed by Licensee to interconnect to the Owner Supplied Facilities, and Owner will not have title or any other ownership interest in either the Facility or such other equipment and facilities . The Facility will remain the personal property of CDWR and will not be deemed fixtures to the Site or License Area. CDWR will be responsible for and will timely pay all property taxes and other taxes assessed against or with respect to the Facility. The Parties acknowledge and agree that Owner or its Affiliates own the Owner Supplied Facilities , and the other electric and utility facilities outside of the boundaries of the Site, except for equipment and facilities installed by Licensee and its contractors in the License Area. Owner will be responsible for and will timely pay all property taxes and other taxes assessed against or with respect to its property, if applicable. (h) As requested by Licensee, Owner shall cooperate, support, and provide reasonable documentation to obtain the Required Permits, as set forth in Exhibit F.

4. Term. This Agreement will be effective as of the Effective Date and will continue in effect until December 31, 2027, unless sooner terminated as provided

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herein (the “Initial Term” and together with any renewal term, the “Term”). As long as no Event of Default shall have occurred and be continuing hereunder, Owner shall grant to Licensee the option to renew (the “Renewal Option”) the term of the License through June 30, 2030 (the period from January 1, 2028 to June 30, 2030, the “Renewal Term”). Licensee shall exercise such Renewal Option by delivering written notice of such election to Owner at least eight (8) months prior to the expiration of the Initial Term. Licensee acknowledges and agrees that there are no rights to extend the Term beyond the expiration of the Renewal Term.

5. Purchase Option.
(a) Subject to Owner’s timely payment of the Purchase Payment, CDWR hereby grants to Owner an exclusive and irrevocable option to purchase the Facility on the terms and conditions set out in this Section 5 (the “Purchase Option”). (b) The term of the Purchase Opti on (the “ Option Term”) shall commence on May 1, 2027 and automatically expire two months thereafter (the “Option Termination Date”).
(c) At any time during the Option Term, if Owner is not then in default under this Agreement, Owner may exercise the Purchase O ption by timely sending CDWR and Licensee a written notice of Owner’s intention to exercise the Purchase Option (the “Exercise Notice”) on the terms set forth in subparagraph (e) below . CDWR and Owner shall thereafter promptly and in good faith negotiate a nd execute a purchase agreement pursuant to which CDWR shall sell and Owner shall acquire the Facility for the Purchase Payment. If Owner does not timely exercise the Purchase Option in the manner described herein on or before the Option Termination Date, the Purchase Option will automatically terminate. Notwithstanding the above, Licensee’s termination rights under this Agreement are not impacted by the Exercise Notice or the existence of ongoing negotiations between CDWR and Owner.
(d) “Purchase Payment” shall mean Eleven Million Two Hundred Thousand dollars ($11,200,000).
(e) Under the terms of the purchase agreement between Owner and CDWR, Owner will have ownership of the Facility and CDWR will retain an economic interest in a portion of t he capacity of the Facility, as set forth in the table below. Capacity ownership will be for a period of three (3) years beginning January 1, 2028 and ending December 31, 2030 (“Capacity Ownership Period”), at which time Owner will retain 100% of economic interest in the capacity of the Facility. During the Capacity Ownership Period, Owner will be solely responsible for the operation and maintenance of the Facility, serve as Scheduling Coordinator for the Facility, and oversee fuel procurement and management. During the Capacity Ownership Period, CDWR will receive a percentage of the revenue earned and reimburse Owner for a percentage of the cost of natural gas consumed by the Facility that corresponds to CDWR’s Capacity Ownership at such time. Owner and Li censee agree to negotiate in good faith to enter into such operation and maintenance agreements as may be

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necessary for Owner to operate the Facility on economic terms and conditions consistent with those between CDWR and Licensee and taking into account a ny modifications in the scope of services required by Owner.

Year CDWR Capacity Ownership Owner Capacity Ownership
2028 75% 25%
2029 50% 50%
2030 25% 75%
2031 0% 100%

6. Compensation; Billing.
(a) In addition to the reimbursement of Owner’s Reimbursable Site Costs , Licensee will pay to Owner an annual site hosting fee for the Licenses granted herein (“License Fee”), as set forth in Exhibit B. The License Fee for 2023 shall be the first License Fee owed under this Agreement and will be due and payable on January 1, 2023, and the License Fee for each subsequent year during the Site License Term will be due and payable on February 15 of the respective year. In the event a Scheduling Request is made by Licensee, Licensee will pay to Owner $200,000 in respect of each full year that Owner serves as the Scheduling Coordinator or causes a third party to serve as the Scheduling Coordinator as a fee in consideration of the Scheduling Services (the “Services Fee”). (b) Payment of the Services Fee, if applicable, and the License Fee as and when required will be Owner’s full compensation for the grant of the License and use of the License Area and for the costs of personnel supplied by Owner and its Affiliates in carrying out Owner’s obligations under this Agreement , provi ding the Scheduling Services as required hereunder, and making the Owner Supplied Facilities available to Licensee. (c) Owner shall use commercially reasonable efforts to invoice Owner’s Reimbursable Site Costs due to Owner hereunder monthly on or before the twentieth (20th) day of the month following the month in which such costs were incurred. Subject to Licensee’s rights under Section 6(d), payments for reimbursement of Owner’s Reimbursable Site Costs under this Agreement shall be made on or before the forty -fifth (45th) day after receipt of the invoice. If the due date falls on a non-Business Day, then the payment shall be due on the following Business Day. Payment shall be deemed delivered on time if sent via electronic funds transfer, as set forth in Exhibit D, prior to 5 p.m. Pacific time on the due date.

Licensee shall submit all payments under this Agreement to Owner at the payment address shown in Exhibit D. Any changes to the address designated for purposes of payment must be made by written notice to Licensee at the address listed in Exhibit D at least sixty (60) days prior to the first submittal of payment to the new address. (d) The Services Fee and the License Fee payable in each Contract Year pursuant to Section 6(a) is a fixed amount and is not subject to dispute. If Licensee wishes to dispute an invoice for Owner’s Reimbursable Site Costs in whole or in part, it must give Owner written notice of the amount in dispute on or before the due date for the invoice, including a reasonably detailed statement of the basis for such dispute (including supporting documentation, but it shall nonetheless pay the amount billed, including any disputed portion,

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on the due date for the invoice. If it is determined that a disputed amount that was paid was not in fact due and owing, Owner shall refund such amount to Licensee within thirty (30) days after resolution of such dispute, together with interest on such amount from the date paid to, but not including, the date refunded at the interest rate set forth in Section 6(e). (e) Interest on delinquent amounts (including amounts determined to be owed as a result of the resolution of a billing dispute) shall be calculated at the interest rate specified in the California Prompt Payment Act (Government Code Section 927 et seq.) as may be amended: from the original due date (or, for amounts not properly invoiced, the date that would have been the due date if such amounts were properly invoiced) to the date of payment.
(f) Owner and its Affiliates shall keep complete and accurate records of Owner’s Reimbursable Site Costs hereunder and shall maintain records for a period of three (3) years from the due date of the applicable invoices. Within a three (3) year period from the original due date of an invoice, Licensee may request in writing copies of such records to the extent reasonably necessary to verify the accuracy of any invoice.

7. Force Majeure.
(a) “Force Majeure“ means: any cause or event beyond the reasonable control of the affected Party which causes the affected Party to fail to perform that (i) was not specifically foreseeable as of the Effective Date; (ii) was not due to the fault or negligence of the affected Party, and (iii) could not reasonably have been avoided, overcome, prevented, or mitigated, by the affected Party’s exercise of due diligence and use of reasonable precautions and efforts. Subject to the foregoing requirements, events that could qualify as Force Majeure include (x) acts of God, such as droughts, floods, earthquakes, volcanic eruption, epidemics, pandemics or other natural disasters, (y) fires, explosions, or accidents that could not have been prevented by acting in accordance with Good Industry Practice, or (z) war (declared or undeclared), riots, insurrection, rebellion, acts of the public enemy, acts of vandalism, terrorism and/or sabotage, civil disturbance, public disorder, blockades, embargoes, sanctions, import -export controls, or industry -wide strikes. However, Force Majeure shall not include the following events except the portions of such events caused solely by an event of Force Majeure as enumerated in clauses (x), (y) and (z) of the preceding sentence: (1) general market conditions or the economic hardship of either Party, (2) events arising from the failure to design, install, test, commission, operate, maintain, decommission or remove the Facility in accordance with Good Industry Practice, (3) events that merely increase the cost of a Party’s performance; (4) failure of third parties to provide goods or services essential to a Party’s performance, (5) Owner’s ability to license the use of the Site or the License Area for more than the License Fee, (6) Licensee’s ability to license or obtain the use of an alternate site for less than the License Fee, (7) any delay in providing, failure to obtain, or cancellation of, interconnection service, or (8) the inability of Licensee to make payments when due under this Agreement.
(b) To the extent either Party is prevented by Force Majeure from carrying out, in whole or part, its obligations under this Agreement, and such Party (the “Claiming Party”) gives notice and details of the Force Majeure to the other Party as soon as practicable,

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then, unless as otherwise expressly provided herein, and as limited in Section 7( c), the Claiming Party shall be excused from the performance of its obligations (other than the obligation to make payments then due or becoming due with respect to performance prior to the Force Majeure) to the extent affected by the Force Majeure, and no Event of Default shall occur as a result of the failure to perform any excused obligation. The Claiming Party shall remedy the Force Majeure with all reasonable dispatch. The non-Claiming Party shall not be required to perform or resume performance of its obligations to the Claiming Party corresponding to the obligations of the Claiming Party excused by Force Majeure. (c) Any Party claiming Force Majeure shall advise the other Party as soon as possible of the occurrence of the Force Majeure event and shall provide the other Party with the basis of the claim, in writing, within ten (10) Business Days of the occurrence of the Force Majeure event.

The Parties shall make reasonable efforts to avoid the adverse impacts of a Force Majeure and to resolve the event or occurrence once it has occurred to resume performance.

8. Events of Default. An “Event of Default” shall mean, with respect to a Party (a “Defaulting Party”), the occurrence of any of the following:
(a) With respect to either Party:
(i) the failure to make, when due, any payment required pursuant to this Agreement if such failure is not remedied within five (5) Business Days after written notice of the failure,
(ii) any representation or warranty made by such Party herein is false or misleading in any material respect when made or when deemed made or repeated if the representation or warranty is continuing in nature, which misrepresentation or breach of warranty is not cured within thirty (30) days after written notice thereof, (iii) except for an obligation to make payment when due, the failure to perform any material covenant or obligation set forth in this Agreement (except to the extent constituting a separate Event of Default or to the extent excused by a Force Majeure) if such failure is not remedied within thirty (30) days after written notice, which written notice sets forth in reasonable detail the nature of the failure; provided, however, that if such failure is not reasonably capable of being remedied within the thirty (30) day cure period, such Party shall have such additional time (not exceeding an additional ninety (90) days unless the Parties agree on a longer period) as is reasonably necessary to remedy such failure, so long as such Party promptly commences and diligently pursues such remedy;
(iv) Such Party becomes Bankrupt;
(v) Such Party consolidates or amalgamates with, or merges with or into, or transfers all or substantially all of its assets to, another entity and, at the time of such consolidation, amalgamation, merger or transfer, the resulting surviving or transferee entity fails to assume all the obligations of that Party under this Agreement

4889-1345-6954v.2 0114986 -000003
to which it or its predecessor was a party by operation of law or pursuant to an agreement reasonably satisfactory to the other Party;
(vi) Such Party assigns this Agreement or any of its rights hereunder other than in compliance with Section 15; or
(vii) Such Party breaches its obligations under Section 16 and such breach is not remedied within five (5) Business Days after written notice thereof.

9. Remedies; Termination Rights.
(a) If an Event of Default with respect to a Defaulting Party has occurred and is continuing, the other Party (“Non-Defaulting Party”) shall have the right to do any one of more of the following, which rights shall be cumulative and in addition to the rights of the Parties otherwise provided in this Agreement:
(i) Terminate this Agreement by sending a written notice, designating a day, no earlier than the fifth (5th) day after the day such notice is deemed to be received and no later than forty -five (45) days after such notice is deemed to be received, as an early termination date of this Ag reement (“Early Termination Date”);
(ii) Accelerate all amounts owing between the Parties as of the Early Termination Date;
(iii) Withhold any payments due to the Defaulting Party under this Agreement pending resolution of amounts owed by or to each Party; (iv) Suspend performance of its obligations under this Agreement; (v) If the Defaulting Party is Owner, recover any License Fee paid by Licensee for the Contract Year in which the Event of Default occurred; (vi) Subject to Section 14(a), recover monetary damages as allowed by law; and
(vii) Exercise any other rights or remedies available at law or in equity to the extent otherwise permitted under this Agreement;
The Non-Defaulting Party’s election to exercise or not exercise any of the above rights following an Event of Default shall not constitute a waiver by the Non-Defaulting Party of any remedy with respect to any subsequent Event of Default by the Defaulting Party.

Amounts accelerated pursuant to Section 9(a)(ii) shall be netted, and the Party owing the net amount shall pay such amount to the other Party (or apply such amount against other amounts owed by the Defaulting Party, if the Non-Defaulting Party owes the net amount). (b) Reserved.

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(c) In addition to a Non- Defaulting Party’s right to terminate as the result of an Event of Default with respect to the Defaulting Party, the Parties will have the following rights to terminate this Agreement by sending written notice designating an Early Termination Date in the same manner as provided in Section 9(a)(i) (although such termination is not due to an Event of Default). Any such termination shall be with no further liability on the part of either Party, except (x) Licensee will reimburse Owner and its Affiliates for all Owner’s Reimbursable Site Costs incurred by Owner and its Affiliates through the effective date of termination, (y) no part of the License Fee previously paid shall be refundable or refunded on account of such termination, and (z) all indemnification obligations in Section 10 shall survive such termination and shall continue in effect:
(i) Licensee may terminate this Agreement if Licensee is unable to obtain the Required Permits; and
(ii) Licensee may terminate this Agreement if the System Sale, Operation, Maintenance & Services Agreement between Licensee and CDWR is terminated for any reason.

10. Obligations Upon Termination . In connection with the termination of this Agreement, whether as a result of the expiration of the Term of this Agreement, the declaration of an Early Termination Date, or otherwise, in addition to such obligations or liabilities as may arise due to an Event of Default, Licensee shall, subject to Owner not exercising the Purchase Option under Section 5, on or before the termination date, at its sole cost and expense, (i) decommission the Facility in accordance with the Decommissioning Plan, including obtaining all necessary consents and approvals from the applicable Governmental Authorities, (ii) instruct Owner to disconnect the Facility from the Owner Supplied Facilities, (iii) remove the Facility and all related equipment and facilities owned by CDWR from the License Area in accordance with all applicable Laws and Permits, (iv) remove, clean and dispose of all Hazardous Substances brought on to or used on the Site and the License Area or any adjacent property of Owner or its Affiliates by Licensee, its employees, agents, representatives, contractors or subcontractors, in compliance with all applicable Law and Permits, and (v) except as otherwise agreed by Owner and Licensee repair any damage to the License Area caused by Licensee or its employees, agents, representatives, contractors or subcontractors during the Term or in connection with the decommissioning and removal of the Facility. Upon Licensee’s request, Owner shall disconnect the Facility fro m the Owner Supplied Facilities within five (5) Business Days. Licensee shall reimburse Owner for all Owner’s Reimbursable Site Costs incurred by Owner and its Affiliates through the effective date of termination, and if the termination was not due to an Owner’s Event of Default, no part of the License Fee previously paid shall be refundable or refunded on account of such termination. For purposes of sub clause (iv), the environmental condition of the Site and License Area shall be established by reports and other information previously prepared by or for Owner and its Affiliates, which will be provided by Owner to CDWR within thirty (30) days after the Effective Date, or as otherwise mutually agreed by the Parties.

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11. Indemnification.
(a) To the fullest extent allowed by law, Licensee shall indemnify and hold harmless Owner, its Affiliates and their respective officers, directors, employees, partners, lenders, agents and representatives, and their respective successors and assigns (the “Owner Indemnified Parties ”) from and against any and all losses, claims, demands, damages, liabilities, judgments, fines, penalties, costs and expenses, including reasonable attorneys’ fees, expert fees and court costs (“Losses”), incurred by or asserted against any Owner Indemnified Party arising out of or resulting from (i) any injury or damage to persons or property as a result of any acts or omission of Licensee, its employees, agents, representative, contractors or subcontractors in, on or about the License Areas or in the performance of any work or activities related to this Agreement, (ii) the breach of any covenant or representation made by Licensee under thi s Agreement, (iii) any challenge to, attempt to invalidate or invalidation of any Required Permit, (iv) all Owner’s Reimbursable Site Costs (subject to the maximum amount limitations set forth in this Agreement), (v) all costs and expenses that Licensee, its contractors and subcontractors are required to pay under this Agreement, (vi) all costs, claims, clean up and remediation costs, fines, penalties and other liabilities arising from or related to the cleanup or disposal of any Hazardous Substances brought on to the Site or the License Area or any adjacent property of Owner or its Affiliates by Licensee, its employees, agents, representatives, contractors or subcontractors, or used by Licensee, its employees, agents, representatives, contractors or subcontractors, in connection with the installation, testing, commissioning, operation, maintenance, decommissioning or removal of the Facility by Licensee, its employees, agents, representatives, contractors or subcontractors, except to the extent caused by Owner’s gross negligence or willful misconduct or the gross negligence or willful misconduct of the Owner’s Affiliates.
(b) To the fullest extent allowed by law, Owner shall indemnify and hold harmless Licensee and CDWR and their respective its officers, directors, employees, agents and representatives, and their respective successors and assigns (the “Licensee Indemnified Parties”) from and against any and all Losses incurred by or asserted against any Licensee Indemnified Party arising out of or resulting from (i) any injury or damage to persons or property as a result of any acts or omissions of Owner, its employees, agents, representative, contractors or subcontractors in, on or about the Site or the License Area or in the performance of any work or activities related to this Agreement, (ii) the breach of any covenant or representation made by Owner under this Agreement , or (iii) all costs, claims, clean up and remediation costs, fines, penalties and other liabilities arising from or related to the cleanup or disposal of any Hazardous Substances existing on to the Site or the License Area or any adjacent property of Owner or its Affiliates prior to the Effective Date or brought thereon following the Effective Date by Owner, its employees, agents, representatives, contractors or subcontractors , its employees, agents, representatives, contractors or subcontractors, or used by Licensee, its employees, agents, representatives, contractors or subcontractors, in connection with the installation, testing, commissioning, operation, maintenance, decommissioning or removal of the Facility by Licensee. (c) Promptly following receipt by an Indemnified Party of notice of a matter subject to indemnification under Section 11(a) or 11(b), as applicable, including the commencement of any action, administrative or legal proceeding, or investigation as to which

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an indemnity provided for in Section 11(a) or 11(b), as applicable, may apply the Indemnified Party shall give the Indemnifying Party written notice of such matter. The Indemnifying Party shall assume the defense of such matter with, if applicable, counsel designated by the Indemnifying Party and reasonably satisfactory to the Indemnified Party, provided, if both the Indemnified Party and the Indemnifying Party are involved in such matter (including as co- defendants) and the Indemnified Party shall have reasonably concluded that there may be legal defenses available to it which are different from or additional to, or inconsistent with, those available to the Indemnifying Party or that there is a conflict of interest between the interests of the Indemnified Party and the Indemnifying Party in such matter, the Indemnified Party shall have the right to select and be represented by separate counsel, at the Indemnifying Party’s expense. If the Indemnifying Party fails to assume the defense of a claim or other matter properly indemnifiable under Section 11(a) or 11(b), as applicable, the Indemnified Party may at the expense of the Indemnifying Party contest, settle, or pay such claim as it considers appropriate.
(d) The provisions of this Section 11 shall survive the termination of this Agreement.

12. Insurance. Each Party will obtain and maintain in force the insurance described in Exhibit C. However, such insurance shall not be a limitation on a Party’s liabilities or obligations hereunder, nor will failure to obtain or maintain any insurance relieve a Party of any such obligations or liabilities. Each Party shall be responsible for all deductible amounts under such insurance policies , but excluding any self -insured retention. Neither Owner nor Licensee shall be responsible for procuring insurance coverage with respect to the Facility during the term of this Agreement.

13. Representations and Warranties.
(a) As of the Effective Date, each Party represents and warrants to the other Party that:
(i) it is duly organized, validly existing and in good standing under the laws of the jurisdiction of its formation;
(ii) except for the Required Permits and Facility Agreements , it has received all regulatory authorizations necessary for it to legally perform its obligations under this Agreement;
(iii) it is registered with the California Secretary of State to do business in California;
(iv) the execution, delivery and performance of this Agreement are within its powers, have been duly authorized by all necessary action and do not violate any of the terms and conditions in its governing documents, any contracts to which it is a party or any applicable Law; (v) this Agreement, and any other document executed and delivered in accordance with this Agreement, constitutes its legally valid and

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binding obligation enforceable against it in accordance with its terms, subject to Laws of general applicability limiting the enforcement of creditors’ rights and to any equitable defenses;
(vi) it is not Bankrupt and there are no proceedings pending or being contemplated by it or, to its knowledge, threatened against it which would result in it being or becoming Bankrupt; and
(vii) there is not pending or, to its knowledge, threatened against it any legal proceedings that could materially adversely affect its ability to perform its obligations under this Agreement.
(b) As of the Effective Date, Owner represents and warrants that the Site is located in a previously disturbed land, and is not within the jurisdiction of the California Coastal Commission or San Francisco Bay Conservation and Development Commission.

14. Limitations of Liability.
(a) Notwithstanding anything herein to the contrary, except for liability resulting from its gross negligence or willful misconduct, each Party’s liability under this Agreement in any Contract Year shall not exceed the License Fee paid in that Contract Year. (b) THE PARTIES CONFIRM THAT THE EXPRESS REMEDIES AND

MEASURES OF DAMAGES PROVIDED IN THIS AGREEMENT SATISFY THE ESSENTIAL PURPOSES HEREOF. FOR BREACH OF ANY PROVISION FOR WHICH

AN EXPRESS REMEDY OR MEASURE OF DAMAGES IS PROVIDED, SUCH

EXPRESS REMEDY OR MEASURE OF DAMAGES SHALL BE THE SOLE AND

EXCLUSIVE REMEDY, THE OBLIGOR'S LIABILITY SHALL BE LIMITED AS SET

FORTH IN SUCH PROVISION AND ALL OTHER REMEDIES OR DAMAGES AT LAW OR IN EQUITY ARE WAIVED. EXCEPT AS EXPRESSLY PROVIDED IN THIS

AGREEMENT WITH RESPECT TO LIABILITIES TO THIRD PARTIES, NEITHER

PARTY SHALL BE LIABLE FOR CONSEQUENTIAL, INCIDENTAL, PUNITIVE,

EXEMPLARY OR INDIRECT DAMAGES, LOST PROFITS OR OTHER BUSINESS

INTERRUPTION DAMAGES, BY STATUTE, IN TORT OR CONTRACT, UNDER ANY INDEMNITY PROVISION OR OTHERWISE. IT IS THE INTENT OF THE PARTIES

THAT THE LIMITATIONS HEREIN IMPOSED ON REMEDIES AND THE MEASURE

OF DAMAGES BE WITHOUT REGARD TO THE CAUSE OR CAUSES RELATED

THERETO, INCLUDING THE NEGLIGENCE OF ANY PARTY, WHETHER SUCH NEGLIGENCE BE SOLE, JOINT OR CONCURRENT, OR ACTIVE OR PASSIVE. TO

THE EXTENT ANY DAMAGES REQUIRED TO BE PAID HEREUNDER ARE

LIQUIDATED, THE PARTIES ACKNOWLEDGE THAT THE DAMAGES ARE

DIFFICULT OR IMPOSSIBLE TO DETERMINE, OR OTHERWISE OBTAINING AN

ADEQUATE REMEDY IS INCONVENIENT AND THE DAMAGES CALCULATED

HEREUNDER CONSTITUTE A REASONABLE APPROXIMATION OF THE HARM OR LOSS. THE PARTIES FURTHER AGREE THAT PAYMENT OF SUCH AMOUNT

SHALL BE LIQUIDATED DAMAGES AND NOT AS A PENALTY, AND IS

4889-1345-6954v.2 0114986 -000003

THEREFORE NOT SUBJECT TO AVOIDANCE UNDER CALIFORNIA CIVIL CODE SECTION 1671.

15. Assignment.
(a) Except as specifically provided herein, neither Party shall transfer or assign this Agreement or its rights hereunder, without the prior written consent of the other Party, which consent may not be unreasonably withheld, conditioned or delayed. Either Party may, without the consent of the other Party (and without relieving itself from any liabilities hereunder that arose prior to the date of such transfer unless assumed by the assignee) transfer or assign this Agreement or its rights hereunder: (i) to an Affiliate of such Party, or (ii) to any Person succeeding to all or substantially all of the assets of such Party; provided that the assignee assumes all of assignor’s obligations; provided that such assignee assumes in writing all of assignor’s obligations hereunder at least from and after the date of such assignment or transfer, and agrees to be bound by this Agreement.
(b) Notwithstanding anything herein to the contrary, each Party may, without the consent of other Party (and without relieving itself from any liabilities hereunder that arose prior to the date of such transfer), assign this Agreement to one or more Lenders as collateral for any financing or refinancing by such Party and/or its Affiliates. In connection with any such assignment of this Agreement, or any transfer, sale, pledge, encumbrance or assignment of this Agreement or the accounts, revenues or proceeds hereof in connection with any financing or other financial arrangements, if requested by a Party, the other Party (acting reasonably) shall enter into a mutually agreeable consent to collateral assignment with the Lender(s) on market terms and conditions and containing market notice and cure provisions, rights to payment and performance limitations of liability and other provisions; provided that the requesting Party shall be responsible at the other Party’s request for the other Party’s reasonable costs associated with the review, negotiation and execution of such consent to collateral assignment, including without limitation reasonable attorneys’ fees. (c) Subject to the foregoing, this Agreement shall benefit and be binding on the permitted successors and assigns of the Parties hereto. Any assignment or transfer not made in compliance with these provisions shall be null and void and of no force or effect.

16. Confidentiality.
(a) The Party receiving Confidential Information (the “ Receiving Party”) from the other Party (the “Disclosing Party”) shall not disclose Confidential Information to a third party (other than the Party’s officers, employees, directors, Lenders (including potential Lenders), counsel, accountants, directors or advisors, or any such representatives of a Party’s Affiliates, who have a need to know such information and have agreed to keep such terms confidential as provided herein) except in order to comply with any applicable Law, regulation, or any exchange, control area or independent system operator rule or in connection with any court or regulatory proceeding applicable to such Party or any of its Affiliates; provided, each Party shall use commercially reasonable efforts to prevent or limit the disclosure. The Parties shall be entitled to all remedies available at law or in equity to enforce, or seek relief in connection with, this confidentiality obligation.

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(b) Each Party acknowledges that its obligations hereunder as Receiving Party are necessary and reasonable in order to protect Disclosing Party and Disclosing Party’s business, and expressly acknowledges that monetary damages w ould be inadequate to compensate Disclosing Party for any breach or threatened breach by Receiving Party of any covenants and agreements set forth herein. Accordingly, each Party acknowledges that any such breach or threatened breach by it as Receiving Par ty will cause irreparable injury to Disclosing Party and that, in addition to any other remedies that may be available, in law, in equity or otherwise, Disclosing Party will be entitled to obtain injunctive relief against the threatened breach of this Agreement or the continuation of any such breach, without the necessity of proving actual damages.
(c) Neither Party shall issue (or cause or permit its Affiliates to issue) a press release regarding the transactions contemplated by this Agreement unless both Parties have agreed upon the contents of any such public statement.

17. Notices. All notices required to be given under this Agreement shall, except as otherwise provided herein, be in writing and shall be sent by prepaid mail, overnight courier or e- mail addressed to the respective Party at the addresses listed in Exhibit D or to such other address as may designated hereafter by a Party in writing by like notice from time to time. The Business Day the e-mail was sent shall be the date notice was deemed given if there is an electronic record on the date of transmission. Any notice delivered after 5:00 p.m. Pacific Time on a Business Day shall be deemed to have been delivered on the following Business Day.

18. General.
(a) This Agreement shall be governed by, construed under and enforced in accordance with the laws of the State of California without regard to principles of conflicts of law. The venue for any court action brought pursuant to this Agreement shall be Sacramento, California.
(b) This Agreement may be executed in any number of counterparts, each of which shall be deemed an original, but all of which shall constitute one Agreement after each Party has signed at least one counterpart, and the Parties have exchanged signed counterparts.

The exchange of copies of this Agreement and of signature pages by facsimile transmission, in portable document format (pdf) or by other electronic means shall constitute effective execution and delivery of this Agreement and may be used in lieu of the original Agreement for all purposes.
(c) This Agreement and the Exhibits attached hereto constitute the entire agreement and understanding between CDWR, Owner and Licensee with respect to the subject matter hereof and supersedes all prior agreements relating to the subject matter hereof, which shall be of no further force or effect. The Exhibits attached hereto are integral parts of this Agreement and are made a part of this Agreement by reference. (d) This Agreement may only be amended by an instrument in writing duly executed by Licensee and Owner, and with respect to Section 5, CDWR.

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(e) No waiver of either Party of an Event of Default by the other Party, nor any election to exercise or not exercise any rights following an Event of Default, shall constitute a waiver by such Party of any subsequent Event of Default by the other Party, whether similar or dissimilar, or of any remedy with respect thereto.
(f) Nothing herein is intended to create or is to be construed as creating a joint venture, partnership, agency or other similar relationship between the Parties other than that of contracting parties as set forth in this Agreement. The rights and obligations of the Parties hereunder shall be independent of one another and shall be limited to those expressly set forth herein.
(g) This Agreement is for the benefit of the Parties hereto and is not intended to be for the benefit of any third party except their respective Affiliates and Lenders of the Parties to the extent expressly set forth herein.
(h) The Parties acknowledge and agree that each Party and its counsel have read this Agreement in its entirety, fully understand it and accept its terms and conditions. This Agreement shall be considered for all purposes as prepared through the joint efforts of the Parties and shall not be construed against one Party or the other as a result of the preparation, substitution, submission or other event of negotiation, drafting or execution hereof.
(i) Upon the receipt of a written request from the other Party, each Party shall execute such additional documents, instruments and assurances and take such additional actions as may be reasonably requested by the other Party which are consistent with the provisions of this Agreement and which do not involve the assumptions of obligations other than those provided for in this Agreement, to give full effect to this Agreement and to carry out the intent of this Agreement.
[The next page is the signature page. The balance of this page is intentionally left blank.]

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EXHIBIT A

DESCRIPTION OF SITE AND LICENSE AREA

Site: Assessor’s Parcel No. 015-64-008, as identified
in the Records of the Office of the Assessor, County of San Joaquin, California, and more particularly
described as:

[INSERT LEGAL DESCRIPTION]

License Area:

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EXHIBIT B LICENSE FEE
Year Annual Site License Fee
2023 $2,800,000
2024 $2,800,000
2025 $2,800,000
2026 $2,800,000
2027 $2,800,000
2028 (Renewal Option) $2,800,000, plus 5% or
CPI1, whichever is less
2029 (Renewal Option) $2,800,000, plus 5% or
CPI2, whichever is less
2030 (6-month Renewal
Option, ending June 30th)
$1,400,000, plus 5% or
CPI3, whichever is less

1 San Francisco-Oakland-Hayward, CA Consumer Price Index effective January 1, 2028. 2 San Francisco-Oakland-Hayward, CA Consumer Price Index effective January 1, 2029. 3 San Francisco-Oakland-Hayward, CA Consumer Price Index effective January 1, 2030.

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EXHIBIT C INSURANCE
Licensee Insurance. Licensee warrants that it will, at all times relevant to this Agreement, carry coverage for itself and on behalf of its Affiliates with responsible insurance providers (as evidenced by an AM Best rating of A - / VIII or better), that are licensed to do bus iness in California. All policies that are written on a claims form must be maintained by the Licensee for at least three (3) years following the termination of this Agreement. Without limiting the foregoing, the insurance coverage shall include, but not be limited by, the following:

Commercial general liability insurance, on an occurrence form, in an amount of not less than One Million Dollars ($1,000,000) per occurrence, and Two Million Dollars ($2,000,000) annual aggregate, including broad form property damage, products and completed operations, independent contractors, and personal and advertising injury.

Excess/Umbrella liability coverage shall be provided on a broad form basis, with a limit not less than Five Million Dollars ($5,000,000) per occurrence, with the commercial general liability, auto liability and employers liability policies scheduled as underlying.

Auto Liability covering owned, non-owned, leased and hired automobiles in an amount of not less than One Million Dollars ($1,000,000) each accident.

Worker’s Compensation Insurance and Disability Benefits Insurance, in compliance with state statutory limits and Employer’s Liability in an amount of not less than One Million Dollars ($1,000,000). Licensee shall cause their Subcontractors to maintain at their own expense Worker’s Compensation Insurance and Employers’ Liability Insurance in the same amounts to cover employees hired by contractors that are not employed by Licensee.

Pollution Liability: Pollution Liability with a limit of One Million Dollar ($1,000,000) per incident to cover any exposure related to hazardous materials stored, generated, handled, transported or disposed of by Licensee. Coverage shall apply to sudden and accidental pollution conditions.

Owner and its respective affiliates, officers, directors, employees, agents and assigns shall be named as an additional insured under all insurance required hereunder, except workers compensation, and the Licensee shall, at the Effective Date of this Agreement and upon each anniversary dat e of each policy, deliver to Owner true and valid certificates attesting to the foregoing.

All policies must provide the following: ( A) contractual liability covering the indemnification provisions of the Agreement; (B) a severability of interests provision; ( C) separation of insureds clause; (D) a provision that coverage is primary as respects any insurance maintained by additional insureds; (E) a provision that coverage is non- contributory with other coverage or self -insurance maintained by Owner and any other additional insured party; and (F) if the policy is a claims-made policy, then the retroactive date must be on or before the first date when any services were provided to Owner, whichever is earlier. All Licensee policies shall include a waiver of subrogation against Owner and other additional insured parties. The Licensee, or its insurers, shall provide Owner not less than 30 days prior notice ahead of any policy cancellation or non- renewal, except 10 days’ notice shall be given for non-payment of premium.

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Owner’s Insurance. Owner warrants that it will, at all times relevant to this Agreement, carry coverage for itself and on behalf of its Affiliates with responsible insurance providers (as evidenced by an AM Best rating of A - / VIII or better), that are licensed to do business in California. All policies that are written on a claims form must be maintained by Owner for at least three (3) years following the termination of this Agre ement. Without limiting the foregoing, the insurance coverage shall include, but not be limited by, the following:

Commercial general liability insurance, on an occurrence form, in an amount of not less than One Million Dollars ($1,000,000) per occurrence, and Two Million Dollars ($2,000,000) annual aggregate, including broad form property damage, products and completed operations, independent contractors, and personal and advertising injury.

Excess/Umbrella liability coverage shall be provided on a broad f orm basis, with a limit not less than Five Million Dollars ($5,000,000) per occurrence, with the commercial general liability, auto liability and employers liability policies scheduled as underlying.

Property Insurance. Owner shall obtain and maintain in full force and effect during the term of this Agreement, all-risk property insurance in an amount equal to the full replacement cost value with respect to any equipment, parts, materials or other property owned by Owner with sub- limits as appropriate for facilities similar to the such property.

All policies must provide the following: ( A) contractual liability covering the indemnification provisions of the Agreement; ( B) a severability of interests provision; ( C) separation of insureds clause; (D) a provision that coverage is primary as respects any insurance maintained by additional insureds; (E) a provision that coverage is non- contributory with other coverage or self -insurance maintained by Owner and any other additional insured party; and (F) if the policy is a claims-made policy, then the retroactive date must be on or before the first date when any services were provided to Owner, whichever is earlier. All Owner policies shall includ e a waiver of subrogation against Licensee and other additional insured parties. Owner, or its insurers, shall provide Licensee not less than 30 days prior notice ahead of any policy cancellation or non- renewal, except 10 days’ notice shall be given for non-payment of premium.

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EXHIBIT D NOTICES AND PAYMENTS

Notice to Licensee:

Enchanted Rock Electric, LLC
Houston, TX 77002
Attn: Thais Gross, President
Email: [email protected]

With a copy to:

Enchanted Rock Electric, LLC
Houston, TX 77002
Attn: Bobak Fatemizadeh, General Counsel
Email: [email protected]

Notice to Owner:

Stephen Schwabauer, City Manager
City of Lodi
221 W. Pine Street
Lodi, CA 95240
email: [email protected] & [email protected]

With copies to:

Jeff Berkheimer, Electric Utility Director
City of Lodi
1331 S. Ham Lane
Lodi, CA 95242
email: [email protected]

Janice D. Magdich, City Attorney
City of Lodi
221 W. Pine Street
Lodi, CA 95240
email: [email protected]
Payment to Owner by ACH or Wire Transfer:

Farmers and Merchants Bank of Central California
121 W. Pine Street
Lodi, CA 95240
ABA: 121108441
Acct. 0010001301

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EXHIBIT E DECOMMISSIONING PLAN
[To be attached when agreed]

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EXHIBIT F REQUIRED PERMITS

Authority to Construct Air Permit
Authority to Operate Air Permit
Stormwater Detention Permit
Building, Electrical, Plumbing Permits
CDWR Self-Certification
Railroad crossing permit

THIS MAP IS FOR ASSESSMENT PURPOSES

ONLY AND IS NOT FOR THE INTENT OF

INTERPRETING LEGAL BOUNDARY RIGHTS,

ZONING REGULATIONS AND/OR LEGALITY
OF LAND DIVISION LAWS.

FOR ASSESSMENT
PURPOSES ONLY 015-64POR. SEC. 34 T.4N. R.6E., M.D.B.&M.

A - R.S. Bk. 05 Pg. 186
B - R.S. Bk. 06 Pg. 233
C - P.M. Bk. 13 Pg. 079
D - P.M. Bk. 25 Pg. 167
All Rights Reserved
Copyright County of San Joaquin
Assessor Mapping/GIS 2017
County of
San Joaquin, CA
BK. 015 PG. 64
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ABANDONED PER 87072157
!(1

4.21 ACS.-NET
S. 7° 12' W.

EAST
WEST
105.00'
199.85'
213.11'
105.83'

99.20'

60.54'
130.18'L=165.30'
L=435.00'
434.00'
NORTH
40'
225.00'
188.34'
S. 89° 44' E.

S. 89° 44' E.

N. 0° 16' E.230.00'
L=158.61'R=348'
27'
40'
30'
30'
30'
30'

77.00'
R=2894.83'
!(3
!(4
!(5
!(6
!(7
!(8

6.79 ACS.

5.94 ACS.

CITY OF LODICITY OF LODI

CITY OF LODICITY OF LODI

8.34 ACS.-NET

CITY OF LODICITY OF LODI
N. 89° 53' W.

N. 85° 32' W.
443.43'
142.08'
128.68'
R=5699.63'L=99.48'
L=281.69'
L=1176.28'
R=2834.83'
S. 22° 53' E.

43.65'
146.93'
100.00'
150.00'
L=120.14'
300.00'
285.00'
L=209.44'R=800'
N. 7° 20' W.

N. 5° 45' W.

R=350'
N. 25° 25' W.

N. 29° 45' W.

N. 35° 27' W.

B B
B
A
A
A
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C C
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D
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D A
128.53'
L=209.11'
174.25'

97.41'
332.16'
L=132.31'
137.56'

55.48'

9.52'

25.00'
R=273.96'
S. 3° 46' E.

R=45'
L=82.47'
N. 71° 13' E.

S. 38° 24' E.

R=135'
N. 52° 50' E.

A
SEC. 34 SEC. 35
SEC. 2SEC. 3

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102.51'
115.98'
N. 89° 37' W.

98.45'
N. 0° 22' E.

87.23'
S. 89° 35' E.

T.4N. R.6E.

T.3N. R.6E.

MOKELUMNE
RIVER
Lodi Lake Park
Woodbridge Elementary
School
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COUNTY OF SAN JOAQUIN,OFFICE OF THE ASSESSOR
Steve J. Bestolarides
County Assessor, Recorder/
County Clerk
R.M. = Recorded Subdivision
Map
P.M. = Recorded Parcel
Map
R.S. = Recorded Survey
Map
LEGEND
Example of a Standard
Assessors Parcel Number (APN)
Book Page Parcel
Number
000-000-00
Assessors Book Boundary
Williamson Act Parcel
*
San Joaquin County
Assessors Parcel
Number Issued Per
Roll Year
ROLL PAR. #
- 10
14-15 8
PAR. #
-
-
ROLL PAR. #
18-19
PAR. #
0 50 100 150 200
Feet
Ë

MAPPING/GIS

EXHIBIT B
AGENDA ITEM H-02

COUNCIL COMMUNICATION
APPR
OVED: ________________________________
Stephen Schwabauer, City Manager
AGENDA TITLE: Receive Report on Progress Towards City Council Goals and Provide Direction on Future Goal Setting and The Process for Use of One Time Funds
M
EETING DATE: November 2, 2022
P
REPARED BY: Deputy City Manager
RE
COMMENDED ACTION: Receive report on progress towards City Council goals and provide direction on future goal setting.

B
ACKGROUND INFORMATION: The City Council established a set of goals for the City by Resolution adopted on May 26, 2015. To establish the goals, a special meeting of the Council was held on March 31, 2015 to discuss Department Head, City Manager and Council top priorities for the City and formulate them into goals to guide the City’s operations. At the time, not all of the goals were tied to specific programs or projects but were outcome based. Staff was tasked to use these goals as a guide to seek and direct resources, including funding, to make progress towards and achieve the aspirational goals. Since adoption, staff has reported back to Council on the goals as a group only once on June 7, 2017 but has not held a specific report back to Council since that date. This presentation is intended to report back on the progress towards those goals since 2017 and seek direction form Council on whether the goals remain a relevant lodestar or require revision.

T
he Council identified seven primary goals in 2015:
• Econom
ic Development, including “shovel-ready” land and incentive program to focus on underutilized parcels
• Public Safety, Gang Reduction Intervention Program, training and increase staffing • Fiscal sustainability, asset preservation, CalPERS and Other Post-Employment Benefits • East Side Rehabilitation, incentive programs and infrastructure • Addressing homelessness issues
• Providing Downtown wi-fi internet and music
• Beatification of highway overpasses
T
he Council staff reports and the minutes from the 2015 works hops and 2017 update are attached for more information. Council and staff accomplished much since the previous update in 2017. Staff offers the following highlights of achievements in these areas:

Economic Development, including “shovel-ready” land and incentive program to focus on underutilized parcels

Industrial Annexation Planning
The Planning Division of the Community Development Department has worked to complete the update of the City’s Municipal Services Review (MSR) in route to submit a request to the San Joaquin County Local Agency Formulation Commission (LAFCO) to modify the City’s Sphere of Influence (SOI). The modification to the SOI is to add +/-850 acres of land, East of Highway 99, South of Kettleman Lane, West of the RR Right-of-way and North of Hogan Lane. The expansion area is planned to carry only three zoning designations: Industrial, Business Park and Commercial. The City has a low inventory of available land for these land uses. This effort readies the land for private developers to evaluate annexation and development that would provide jobs-based expansion space for the next +/- 30 years.

SBDC Grant Program Funding
City Council authorized the expenditure of $20,000 to provide Lodi’s entrepreneurs and small business owners who are credit worthy but not quite bankable with help towards business plan development, financial projections, marketing, financial statements, and other good business practices designed to manage risk. The programming will be provided to applicants of the Hometown Microloan Program and other business hopefuls who are not quite ready for a loan.

Economic Development Rate discount program
The EDR discount program is available to commercial and industrial accounts of Lodi Electric Utility. An enhancement to the existing New Jobs discount rate, the new EDR discount program rewards employers adding 20 or more new, full-time jobs with an 8 percent discount on consumption costs for two to five years depending on the number of new employees added at the start of the first year of the program. Providing the discount for more than one year, gives the customer a greater certainty of lower energy costs for more than one year for better planning. The program was adopted by City Council and made effective January 1, 2022.

Hometown Microloan Program
This program for start-ups and businesses with 10 or fewer employees is planned for presentation to City Council on November 18, 2022. Issues including loan types, amounts, loan requirements, interest rate, and other loan requirements will be recommended by staff for Council approval. City Council will consider staff recommendations, and provide direction for im plementation. Upon approval, staff will search for a loan administrator and continue discussions with local lenders who may invest in the program thereby increasing the funds available. City Council authorized an initial loan fund of $470,000 from gener al fund revenues. A soft launch of the program in terms of opening the application process is expected in January 2023.

Brownfield Grant Program
The City is mid-way through its second Brownfields Grant from the Environmental Protection Agency. This grant, in the amount of $300,000, has funded Phase 1 and Phase 2 assessments of properties suspected of contamination from petroleum and other hazardous substances, including lead and asbestos. Properties found to be contaminated undergo other grant -funded studies designed to bring the properties to a condition of reuse. These studies include sampling and materials plans, remediation, clean-up and disposal. No local match to these grant funds is required. In FY 15, a $400,000 grant was received. Recently, grant funds provided the resources necessary to identify the level of noise generated by an electric substation and a noise mitigation plan to help clear the way for the development of the Lakehouse mixed-use development project. Brownfields funds may be used to assess conditions of the Old Firehouse, generate a mitigation plan, and address the structure’s seismic needs.

EV Charging and EV Purchase Rebate Programs
The expanded commercial EV charger rebate program, and new zero- emission EV vehicle purchase rebate program were approved by City Council in October. Staff expects the program to launch on October 31.

Lodi Development Prospectus
The Lodi Development Prospectus is a “pre-qualification statement” for the city to attract capital and drive smart investments. Prepared by staff to provide valuable business data from a variety of sources, the prospectus serves to authenticate Lodi as a sustainable business location. Business data for cities the size of Lodi is often not abundant. The U.S. Census Bureau and U.S. Department of Labor assemble data for counties and metropolitan service areas. Small and mid -sized cities often lack the level of publicly available detail required to make strategic business location decisions. The Lodi Development Prospectus provides the level of detail necessary to satisfy business site selectors researching existing business conditions, related clusters of businesses, and business loan activity to determine conditions conducive to economic growth. The prospectus presents condition of roads, water and wastewater infrastructure, and cost of power to reveal the potential of operating efficiencies. It gives police and fire budgets to give the site selector information on municipal service levels.

Finally, it gives rates of upward mobility over generations, statistics on crime over time, and a rate at which parks, libraries, and other quality of life opportunities grow as demographic changes occur.

Online Economic Development Analytics Tool
The economic development analytics t ool allows anyone interested in reliable data to access Lodi’s demographic, labor force, spending, education, and industry information to test a hypothesis, to start a business, to launch a product, to make a capital investment, and to write a research paper. This information is available for Lodi and for customized areas within Lodi by census tract. The availability of this information makes Lodi competitive with other cities who offer internal and external stakeholders data tools to aid in decision- making. Under consideration for the near future, is the next phase of this information tool to allow users to identify business real estate opportunities in early stages of property searches without hiring a broker.

Public Safety, Gang Reduction Intervention Program, training and increase in staffing

Lodi’s Public Safety consists of the Police and Fire departments. These departments have continuously been asked to do more with les historically. In 2018, Lodi voters approved Measure L, a ½ general sales tax . City Council has provided significant additional funding to police and fire as a result of this additional revenue and significant enhancements to service have been made.

Police
• New Positions – Seven additional officers were added in the Fiscal Year 2018/19 budget at mid-year after the approval of Measure L. An additional officer was added with the 2022 budget adoption. A Lieutenant position and a Sergeant position were added as well to restore posit ions previously lost to budget cuts. These additional positions allow for more coverage for basic patrol duties. The new Motor Sergeant will be assigned in the next few months provide management oversite over the traffic division to ensure Lodi PD has a focus on traffic violations in addition to other criminal activity in the City. • Special Enforcement Team (SET) – SET is utilized for Gang, traffic, side show and drug enforcement.

Since May of 202, 138 arrests have been made, 171 citations were issued, 11.3 pounds of narcotics were confiscated and 7 firearms were recovered just by this unit. • Narcan Drug Overdose Treatment – Lodi has experienced a significant uptick in narcotic overdose related calls for service with tragically many resulting in serious complications or death. The overwhelming cause for this is the presence of Fentanyl as either a narcotic of choice or an additive to other narcotics. In 2020, Lodi PD recognized the need to react to this community need and secured the ability to administer Narcan in overdose scenarios. Each officer is trained in the use of Narcan and now carries 2 doses as part of standard equipment in the field. Since 2020, Lodi PD has deployed Narcan 73 times which equates to an average of 24 times per year or 2 times per month.

Fire
• Life Jacket Loaner Program – The Lodi Fire Department entered into an agreement with the State of California to manage a loaner life jacket program. All of the lifejackets and kiosks were provided by the

State of California free of charge with the expectation that the Fire Department manage the program. This program will save lives.
• Enhanced Water Rescue and Boat Team - The Fire Department secured an aluminum and retrofitted it for rescue operations. The Lodi Fire Foundation secured funds to purchase a new boat motor to appropriately power the vessel. The fire Department trained on surface water rescue and flood operations. Within the first month of deployment the Fire Department used the boat for a water rescue at Lodi Lake.
• Expanded Wellness Program and Joint PD/Fire Chaplaincy Program – The city implemented a wellness program for firefighters which includes access to a clinician and a joint PD/Fire Chaplaincy program. The mental health of our firefighters is a major concern for the current fire and City administration. Having access to trained clinicians is essential in order to meet the needs of our personnel. Suicide is a leading cause of death of firefighters. Having a well-run chaplaincy program and access to First Alarm wellness cast a large safety net around the members of the fire department. Both programs have been accessed and used several times since their implementation.
• Engine 1 back in full operation – Prior to the passage of measure L, Lodi Fire Department operated with only 12 firefighters each day. This becomes problematic in regards to structure fire responses. Lodi Fire would routinely rely on other fire department to assist with the mitigation structure fires. Increasing the work force allows for shorter response times for emergencies, for the fire ground pace to increase, and an increase to firefighter safety and community safety. Since passage of Measure L, Engine 1 is now fully staffed.
• Narcan Preparedness – In 2022, Lodi Fire was able to gain the permission from the San Joaquin County Emergency Medical Authority to begin delivering the enhanced scope of Basic Life Support. Lodi Fire is now administering this lifesaving measure in the community in addition to police providing additional support against overdose.
• Preparation for Paramedic Service – The Fire Department also secured nearly $1 million through FEMA in an assistance to firefighters grant to send nine firefighters through Paramedic school. The goal is to have one paramedic on each of the four fire engines within the next two years. This will ensure that lifesaving Advanced Life Support be provided to all of the citizens in Lodi as quickly as possible. This will be the most significant increase in service levels provided to the community by the fire department within the last thirty years.

Fiscal Sustainability, asset preservation, CalPERS and Other Post-Employment Benefits

Measure L
Going into Fiscal Year 2017/18, the City was projecting a status quo service level budget with no new positions, no increases to employee compensation and no additional programs that showed the City bankrupt in a matter of 3-5 years. Needless to say, the City was not fiscally sustainable. Since June 2017, the City has been able to add positions, increase service level s in some areas, fund local reserves for replacement of mandatory equipment and vehicles, increase funding to long term liabilities (PERS and OPEB), maintain local economic and disaster recovery reserves at 16% as required by Council policy, increase operational support to the Library and Parks, Recreation and Cultural Services, increase employee compensation through negotiated labor agreements to enhance our labor market competitiveness, begun to address long overdue capital needs in parks with both an ong oing and sustainable annual budgetary contribution and with millions of dollars of one time funding, and remove insolvency as a potential outcome from event he worst case scenario projections. Currently, the City is Fiscally Sustainable and it is for one r eason: Measure L. Measure L was approved by voters in November of 2018 and brought in over $9.1 million in general purpose revenues in FY 2021/22 and funded 29 positions and all public safety overtime and provided flexibility in the overall General Fund budget to accomplish everything noted above. Quite literally, Measure L saved Lodi’s City services and without Measure L the public would see a tremendously lower quality of service from the City.

Reserve Funding Improvements
City Council has approved increases in annual contributions to vehicle replacement reserves for all departments.

For the last two budget cycles, the City has contributed at least the equivalent of the annual straight line depreciation amount for vehicle replacement all General Fund departments. The current fiscal year shows substantial catch up contributions for police and fire which have historically been the most underfunded departments.

In Fiscal Year 2020/21, the City established a Network Infrastructure Replacement and a Computer Replacement reserve account. These accounts ensure that IT has the resources to purchase vital equipment on which all the City’s technology relies for consist ent City operations. Keeping this infrastructure up to date ensures the City has the ability to tie into current technology solutions and do so with the latest cyber security capabilities as well.

Also established in Fiscal year 2020/21 was a $400,000 annual contribution to Parks Capital. These funds can be assigned by City Council to specific projects within parks. Previously, there was no established funding amount to address the backlog of parks deferred maintenance, which staff estimates could be m ore than $40 million.

In Fiscal Year 2022/23, a Parks Equipment Replacement Reserve was established and annual funding was set aside for replacement of vital equipment. Previously the City relied on salary savings as the only mechanism to replace equipment which led to significant inefficiencies within the department if equipment failed.

Operating Budget Enhancements
In Fiscal Year 2021/22 and 2022/23, City Council approved additional funding to the library and parks departments for the first time in over a decade. These departments had been forced to operate on a “more with less” basis despite increasing service demands during this time. Current budget projections assume these departments can continue to share in revenue growth in a sustainable manner going forward.

CalPERS
In December 2017, the City Council adopted a revised and strengthened Pension Stabilization Policy (PSP).

The additional PSP requirements approved were funding 100% of General Fund reserves in excess of the 16% required by the Council’s Fund Balance Reserve Policy into the Pension Stabilization Fund (PSF) at PARS and budgeting a monthly payment rate for the City’s Unfunded Accrued Liability (UAL) but paying the annual rate each July as Additional Discretionary Payments (ADP). The City has largely followed this policy since with the exception of the two pandemic years Fiscal Year 2019-20 and 2020-21. For Fiscal Year 2019-20, the City used excess funds only as ADP to PERS rather than depositing those funds into PARS and for Fiscal Year 2020-21, Council elected to reprogram pandemic related reimbursement dollars to one time projects as opposed to pension reserves.

The PSF has accrued $20.4 million in deposits and investment earnings as of August 31, 2022 providing a substantial buffer against future pension uncertainty.

Since 2017. The City has negotiated two contracts with each of its bargaining units that resulted in cost sharing whereby the employee pays some of the City’s portion of the CalPERS normal bill. All employees contri bute between 2% and 15% of their salary towards the City’s CalPERS cost greatly reducing future City obligations.

The overwhelming majority of employees contribute over 6%.

As a result, significant pension funded status improvement has occurred since the adoption of the revised PSP.

Other Post-Employment Benefits
Beginning with Fiscal Year 2019- 20 the City Council’s adopted Budget and Fiscal Policies was amended to require all reserves in excess of 25% in the City’s benefit fund be invested into the City’s OPEB trust fund to help address the City’s on going OPEB liability primarily due to a closed sick leave conversion program. While significantly less progress has been made towards funding this liability than towards the CalPERS UAL, it is substantially smaller, closed and shrinking on its own. Less than 10 active employees are eligible to receive the benefit and the number of retirees drawing on the benefit is projected to decrease annually as retirees exhaust their benefit allowances.

Revised Tax Sharing Agreement for Future Development
The City has engaged in negotiations with San Joaquin County to enter into a tax sharing agreement for future development areas currently outside City limits. This agreement is required as part of the development process for any future annexations. Historically, the County has received a substantially higher proportion of property tax than the City despite the City carrying a larger burden on service delivery in annexed areas. Negotiations are ongoing, but the staff are positive that the process will result in the City obtaining a more sustainable agreement for future developments.

Asset Preservation
The City is nearing completion of two significant roofing projects at Hutchins Street Square and the library. • HSS Sloped Roof – This project is to replace portion of the sloped roof at Hutchins Street Square with new membrane and metal roof system. The replacement was completed in May of 2022. The final cost of the project was $529,038.
• Library Sloped Roof - This project is to replace the sloped portion of the library roof with new underlayment and roof tiles. The Project is expected to be completed in November of 2023 at the cost of $325,980.
• Lodi Lake Riverbank Restoration Project: The $1M project to restore the riverbank was made possible by Assemblymember Jim Cooper. This project restored portions of Lodi Lake’s bank and included mitigation of erosion, tree removal/trimming, riprap and sod installation. The project was completed in April 2022.

In addition to these specific projects, the reserve funding improvements previously mentioned will help ensure the City is prepared to address regular maintenance, replacement and emergency repairs of critical infrastructure with minimal operating budget impact. The City also has funded $400,000 annually in the last two fiscal years towards parks capital with the intention of addressing the substantial backlog of maintenance in the City’s park system. Estimates for deferred maintenance range up to $40 million.

East Side Rehabilitation, incentive programs and infrastructure

The City has made significant strides in upgrading, improving and maintaining critical infrastructure during the last five years. Below is a non-inclusive list of major infrastructure improvements.

Public Works Infrastructure
• Traffic Signal at Victor & Guild – This project is to construct a traffic signal system at Guild Avenue and Victor Road (HWY 12) intersection to improve traffic safety. This project is being reviewed by Caltrans encroachment permit division. We expect to advertise the project in spring of 2023 and the construction starts in summer of 2023.
• Well 24 Rehab – This project rehabilitated Well 24 due to a failing well casing. The well rehabilitation was completed in September 2022. We expect to accept the project in November 2022. • 2020 Bus Stop Improvements – This project removed accessibility barriers near 7 GrapeLine bus stop locations and install ed a new bus shelter. This project was completed and accepted by the City on 11/17/2021. The total contract cost was $508,915.
• Alley Improvements Phase 8 – This project reconstructed the alley north of Elm Street between Garfield Street and Cherokee Lane and was completed and accepted by the City on 10/20/2021. The total contract cost was $174,508.
• Alley Improvements Phase 9 – This project is to reconstruct the alley north of Walnut Street between Washington Street and Central Avenue. This project is near completion. Final paving should be done in October. We expect to accept the project in December of 2022. • Garfield Street Safe Routes to School - This project installed missing sidewalk and wheelchair ramps from Harold Street to Poplar Street. The project was awarded on July 20, 2022 at a contract price of $554,667.00 and it is in the punch list phase. It is expected to be accepted in November 2022.

Parks Infrastructure
Due to the historic revenue opportunity provided the City by the combination of Measure L and the COVID -19 pandemic, significant funding was put into parks capital to address a substantial backlog of maintenance projects. While the list below is extensive, there is still substantial work to be done to address deferred maintenance.

Blakely Park Improvements:
• Blakely Park’s former restroom was built in 1963 and remodeled in 1992. The restroom had been out of service to the public since 2004 due to repeated vandalism. In 2017, the restroom facility was demolished for a cost of approximately $25,000. In 2020, a new restroom / storage building, related site utilities and concreate flat-work were installed. Cost of the project was $275,000. • The City was awarded a grant from the State Parks, Office of Grants and Local Services in the amount of $882,340 for the Blakely Park Sports Fields and Irrigation Improvements. This project provided new turf, irrigation system, basketball court, soccer field and baseball diamond renovations. The new irrigation system, including booster pump and new controller is estimated to save approximately 1 million gallons of water per year. Work started late March, 2022 and was accepted by Council at their regular scheduled meeting on October 19, 2022. Other Parks Capital funding ($120,000) was transferred from Legion Park to support this project.

Candy Cane Park Improvements:
• Improvements were completed in 2019 and funded by a number resources: $278,000 PRCS fund balance; $2,500 donation from a resident; Storm Capital account $28,000; Measure L funds $100,000 and Streets Capital $35,937. This project provided new ADA accessible playground equipment, park benches, picnic tables, drinking fountain, fencing, new accessible concrete sidewalks, irrigation system, turf, tree plantings and a new park sign. Work started late August, 2019 and was accepted by Council at their regular scheduled meeting of December 18, 2019.

Grape Bowl Improvements:
• Grape Bowl South Bleachers Project included installation of additional support bracing under the existing stair treads along with new hand railing in the existing stair aisles for accessibility improvements. Project was completed in September 2021. Construction costs were approximately $90,000. • Grape Bowl Turf Replacement Project $770,000: With increased play of recreational and competitive soccer, football and constant UV exposure, the previous field had been deteriorating since 2011. Work started in May and was completed in July 2022. The artificial turf has been replaced with new upgraded turf and divots on the perimeter of the field have been repaired.

Lodi Lake Improvements:
• Lodi Lake Southside Renovation Improvements – Pending/Budget Approved – Lodi Lake’s parking lot off of Turner Rd. is in need of repair. The parking lot has not been repaved/repaired since its inception in the late 1940s/early 1950s. Over 45,000 vehicles enter the park annually. This number does not include foot- traffic nor visitors who park off-site. The parking lot is riddled with holes and striping is nonexistent. This project will reduce safety risks to the public, reduce maintenance costs and beautify the park. This project will restore damaged roads, trails and picnic areas and will protect these from further damage, enhancing visitor experience and safety for visitors. The scope of work shall include the reconstruction of the paved parking lot area, along with underground utility up-grades, new concrete paths of travel, trash enclosures, picnic tables, park benches, playground equipment, turf and irrigation improvements. $2.4M of the one- time funding has been allocated for this project.

Other “one-time funding” pending/budget approved projects:
• Salas Park Parking Lot Overlay Improvements - $1.3 Million: Salas Park’s existing parking lot is in very poor condition with numerous pot holes and failing asphalt pavement due to weather and normal wear and tear. The Lodi Boosters of Boy/Girls Sports who use the fac ilities regularly for youth and adult programming recently striped the parking lot to help identify spaces. The scope of work will include re - pavement of the parking lot and overhead lighting. This project will rehabilitate the parking lot and protect areas from further damage enhancing the visitor experience and reduce safety risks to the public. • Playground Renovations at five (5) locations – $1.63 Million: Replacement of existing playground structures, one of those has been removed entirely. The playgrounds were installed between 1997 – 2001 and according to playground safety regulations need to be updated to meet equipment safety requirements. Replacement parts for the existing structures are difficult to obtain due to the age of the structures and often times repairs are not timely.
1) English Oaks Structure – $363,000 – Playground installed in 1997. Currently there is no playground structure as it had to be removed for safety concerns and reported injury. 2) Hale Park Tot Lot Structure - $298,000 – Playground installed in 2006. 3) Peterson East Structure - $348,000 – Playground installed in 1997. 4) Legion Structure – $378,000 – Playground installed in 1998. 5) Katzakian Structure – $348,000 – Playground installed in 2001. • Legion Park Community Building Renovation - $275,000: This revenue generating facility has been taken off-line due to poor conditions. The scope of work includes renovating the interior of the community building to include new windows, doors, flooring, cabinetry work, electrical upgrades, restroom fixt ures and sewer line improvements. Due to its prime, centralized location - Legion Park and its amenities are heavily used and in high demand. This is a rentable space that has become a lost revenue opportunity due to unacceptable facility conditions. No improvements to this space have been conducted in over 30 years.
• Hutchins Street Square Climate Control System - $425,000: The pool at Hutchins Street Square operates year-round. In winter, high humidity causes moisture to accumulate on walls/structures, cr eating corrosive environment. In summer, the heat is intolerable due to lack of air conditioning. This pool is the

city’s only indoor pool and is in high-demand and heavily programmed. The project will replace the non- functioning climate control system for the pool.
• Demolition of Park Structures - $250,000
1) Lawrence Park Restroom – the restroom is unusable and has become an attractive nuisance within the property. The restroom has been out of service since 2015. 2) Softball Complex Concession – the concession stand and storage has not been in use since 2005 due to dilapidation. It has been challenging for PRCS staff to keep the building secure from vandalism. 3) Lodi Look Building – this building is located between the North parking lot of the Grape Bowl and Lawrence Elementary School. The building has been abandoned since 2007 after the After School Program moved to Lodi Unified campuses.
• DeBenedetti Park - Cricket Sports Lighting - $600,000 – This project would provide a (4) new 70' galvanized steel poles, LED sports lighting and Musco Lighting Controls. Other work would include constructing a 12'x80' concrete pad (cricket pitch) with synthetic turf covering for "tape -ball" play, in the southwest basin of DeBenedetti Park. The completion of this project will provide sports lighting for safe night play along with energy saving with the LED lighting fixtures. • DeBenedetti Park Development - The development of DeBenedetti Park will be a phased approach which started with an extensive collaboration between city staff and Lodi residents for the master plan. Callander Associates were selected to design Phase I and Phase II of the park. 100% construction drawings have been received and city staff including the Parks and Public Works departments are reviewing the plans. Phase 1 and 2 of the project includes a parking lot (200+ parking stalls off Century Blvd.), paths of travel with lighting, benches and trash receptacles, restroom and concession building, playground areas including a tot lot on the Northwest corner of the park, underground utilities, irrigation system, grass, trees and shrubs. Construction is estimated to cost between $5M - $6M.

Tony Zupo Field Fire Restoration Project:
• Assemblymember Jim Cooper (D -Elk Grove) successfully advocated to Legislature to award the City $750,000 to help rebuild Zupo Field’s baseball field, dugouts, press box and grandstands which was damaged by fire in 2019. Plans and Specifications have been drafted for the rebuild. Additional funding will come from parks capital and insurance reimbursement to bring the park up to accessibility code.

The following is a list of other completed projects since 2017. These projects are almost exclusively infrastructure replacement and repair. It’s important to note that very few of these projects would be possible without the additional funding provided by Measure L. Although Measure L does not directly fund all of these projects, the City is less reliant on other general revenues for normal operations and thus able to use those revenues for critical infrastructure repair.
• 2019 Blakely Park – North Pool Renovations: New pool plaster, pool decking, and deck equipment / CDBG Funding
• 2019 Blakely Park – Shade Structures: (2) New fabric shade structures at North Pool area / CDBG Funding
• 2017 Century Meadows Park – Playground Surfacing: Major repairs to poured- in-place playground surfacing and top coating / Parks Capital
• 2017 Chapman Field: Replaced Scoreboard / Parks Capital • 2017 DeBenedetti Park: Constructed 95 additional parking stalls, walking pathway from Heavenly Way to Lower Sacramento Road, work also including lighting / Impact Fees • 2019 DeBenedetti Park: New Park Master Park Development contract with Callander and Assoc. / Impact Fees
• 2017 Emerson Park: Playground Surfacing – major repairs to poured-in-place surfacing and top coating / Parks Capital

• 2019 Emerson Park: Picnic Shelter Re- Hab – timber replacement, pr essure washing and re- sealed timbers / Parks Capital
• 2020 Emerson Park: New drinking fountain installation / Parks Capital • 2020 Hale Park: Installed a New split HVAC unit for the community building / PRCS Donation Account • 2017 Kofu Park: Replaced Scoreboard / Parks Capital
• 2019 Kofu Park: Installed New stainless steel restroom fixtures and plumbing / Parks Capital • 2019 Kofu Park: Re-surfaced tennis courts and added game lines for pickle ball courts (4) / Parks Capital • 2017 Lawrence Park: Playground Surfacing: Major repairs to poured-in-place playground Surfacing and top coating / Parks Capital
• 2019 Legion Park: Re-surfaced tennis courts – converted (2) courts into (6) permanent pickle ball courts / Parks Capital
• 2019 Legion Park: Picnic Shelter Re-Hab – timber replacement, pressure washing and re-sealed timber / Parks Capital
• 2017 Lodi Lake Park: Northside paving improvements Rotary Area to box culvert pipe and tree removal / Parks Capital
• 2017 – 2022 Lodi Lake Park: Major Tree trimming and removals / Parks Capital and Measure L • 2019 Lodi Lake Park: Northside lift station retro -fit work; new lids, pump guides, rails, brackets, and (1) new chopper pump / Parks Capital and WW/W Funds
• 2018 PRCS Annex Building: Replaced HVAC roof-top units / Parks Capital • 2018 PRCS Annex Building: Installed New silicone roofing coatings and removed sky-lite panels / Parks Capital
• 2017 Peterson Park: Playground Surfacing – major repairs to poured-in-place surfacing and top coating (West Playground Area) / Parks Capital
• 2017 Salas P ark: Installed New standing seam metal roof system, trim, gutters and downspouts @ restroom building / Parks Capital
• 2018 Softball Complex: Replaced (2) Scoreboards / Parks Capital • 2022 Vinewood Park: Installed New chain link fencing to separate ball field area and dog park area / Parks Capital

Electric Utility Infrastructure
• 230kV Project Refresh (now slated for operation in 2028) – This project will bring transmission level 230kV electrical service to the City of Lodi and its residents, greatly increasing load serving capabilities and reducing transmission access charges for our ratepayers. Following a change of scope and re - evaluation of the original Northern San Joaquin 230kV Transmission Project, this project was again approved for constructi on as part of the 2017 -2018 Transmission Planning Process with a revised scope. The California Public Utility Commission again evaluated alternatives to this project in 2021 and recommended moving forward with the scope as previously defined. This project is underway with PG&E leading the programmatic environmental assessment and public outreach efforts. We expect to submit the draft PEA to the CPUC by the end of this year. Project completion and commercial operation is planned for Q4 of 2028.
• Substation Modernization Project (improved reliability and coordination) – With many of the City’s electrical substation components quickly approaching end of useful life, the Electric Utility has requested and received approval for over $1.5M worth of substation m odernization projects for the upcoming year. This work will modernize our electrical substation infrastructure, replace old and outdated protective relays, and greatly improve system coordination capabilities with PG&E on our incoming 60kV sub-transmission lines. Part of this project will be to standardize on industry relays and equipment which our personnel are most familiar with and to provide additional training and tools to our staff for the successful maintenance and operation of these systems going forward.

• New 48MW Power Plant for System Reliability – Through an emergency reserve fund established by the State of California and implemented by the Department of Water Resources, the City has an opportunity to facilitate the installation of a 48MW gas power plant within its service territory to provide emergency load serving capacity to its residents. This project will play a critical role for the City of Lodi in ensuring that during an event like the one which took place on September 7th of this year, there remains sufficient load serving capacity on PG&E’s incoming sub- transmission system to provide power to the entirety of the City. The project is being completely funded by the State and all installation and interconnection costs will be reimbursed, along with substantial compensation for land use over a 5-7 year term. • #6 Copper Wire Replacement (228,000’ Replaced Since 2017 à ~70,000 Circuit Feet Remaining) – Old and potentially brittle #6CU conductor has proven to be unreliable and potentially pose a safety risk if left in operation beyond its useful life. The electric utility has taken a proactive approach to identifying and replacing all of this conductor within the City’s system in order to minimize both reliability and safety concerns in the future. Since 2017 the utility has replaced over 228,000 feet of the cooper conductor and replaced it with a much more versatile #2 ACSR conductor. Engineering continues to design and release jobs for replacement on a near weekly basis and at this time we have only around 70,000 circuit feet of conductor remaining. EU anticipates the remainder of this work to be completed within the next 24 months.
• City Wide Pole Inspection, Treatment, and Replacement Program (~6,000 poles tested and replaced/stubbed as needed) – Prudent industry maintenance and inspection practice as well as G.O. 165 guidelines require intrusive inspections and testing of wood distribution poles on a defined basis. In 2021 (approximately 10 years since the last time the City had its wood pole population intrusively tested) the City hired OSMOSE to come back and test all of our nearly 6,000 wood poles. During the months this testing took place OSMOSE identified nearly 100 poles which needed to be strengthened via steel “stubbing”, as well as another 25-30 locations where the poles were deteriorated beyond safety standards or reinforcement. The electric utility quickly designed jobs to have these poles replaced and all have been removed from service at this time.
• Expansion of Vegetation Management Work (Increased Annual Patrols and Trimming budget by 100%+) – Routine patrol and trimming of vegetation along overhead distribution infrastructure is a critically important reliability and safety activity. Allowing vegetation to encroach within unsafe distances of electrical infrastructure can cause unwanted outages, fires, or other safety hazards. In 2020 after a review of the rate of tree related outages and emergency trimming events, the electric utility more than doubled the annual tree trim ming budget and executed a 5 year extension with our vegetation management provider to ensure continuity of service for this activity all the way to 2027. These efforts have already paid significant dividends as we have seen a significant decrease in outages and customer calls related to vegetation management issues with our facilities.

Municipal Infrastructure
• Animal Shelter and Other Projects – In early 2022, The City Council approved financing for a new Animal Shelter to be constructed in Lodi. Planning is currently underway for a modern facility to include separate areas for cats, dogs and exotic animals, a veterinary clinic, separate and quiet visitation spaces for potential adoptions, quarantine zones and adequate outdoor space for the animals to enjoy. The project will replace the City’s current inadequate and dilapidated shelter. The new shelter will conform to all American’s with Disabilities Act (ADA) requirements, as well as all current requirements and best practices for animal care. Additional funds will be available to program towards various projects including additional playground replacements after completion of the shelter.

Addressing Homelessness Issues

The City has taken numerous steps to address the homelessness issue facing our City. The issue of homelessness has reached crisis level in our state and nation, but efforts at the local level have helped to keep

the issue contained. The City has large scale projects to further minimize the negative impacts of homelessness in Lodi in the short term.

Lodi Committee on Homelessness
The Lodi Committee on Homelessness is going strong under current chair Kathryn Siddle. She has coordinated the committee to assist with homelessness issues throughout the community and has been a big support to the new Temporary Emergency Shelter (Access Center). The Committee consists of members of the public, social service providers, Lodi PD representative and related agencies, that all participate in their monthly meetings.

Harmony Homes Project
The Harmony Homes tiny homes project has been handed over to the operator Sacramento Self-Help Housing who is working towards determining eligibility and getting the homes filled. Currently two out of the four homes are occupied by new residents. We are excited to see all four homes occupied in the near future to provide permanent housing to families experiencing homelessness.

Lodi ACCESS Center
The Temporary Emergency Shelter (Temporary ACCESS Center) on Sacramento Street opened July 22, 2022.

In just over two months, the shelter has experienced great success. Inner City Action has been contracted to operate the shelter in collaboration with The Salvation Army . Inner City Action offers daily services such as 3 meals a day, laundry, mobile showers, scheduled haircuts, clean restrooms, phone charging stations, a clothing closet, and more. The Temporary ACCESS Center has 49 beds available for individual’s currently experiencing homelessness in Lodi. The Shelter provides a consistent place where social service providers are able to meet with those utilizing the facility and provide the services they need to progress in their lives.

Within the first 40 days, the Temporary ACCESS Center has helped:
• Transition 2 people to services
• Transition 10 people to Salvation Army
• United 3 people with family members
• Assist 3 people who gained employment
• Connect 13 people with Behavioral Health assistance
Homeless Liaison Officer
The Homeless Liaison Officer program in Lodi has provided a resource to those experiencing homelessness.

The officer assigned to this position goes out to encampments to establish relationships in an attempt to gain trust and guide homeless persons to resources, family and housing. Since 2017, 200 people have been placed with family or into programs, over 1,000 shopping carts have been removed from City streets, and well over 1,000 calls for service that would have been handled by a normal patrol officer have been responded to by the Liaison Officer. Not only does this position take workload off the traditional crime prevention and enforcement resources of the department, the Liaison Officer has the ability to better responded to transient calls due to established relationship and experience working with his specific population ultimately leading to better, safer outcomes for all involved.

Transient Outreach Teams
Officer Michael Cascio transitioned to the Homeless Liaison Officer Position at the beginning of 2022. In that time, he has established beneficial relationships with many individuals experiencing homelessness in the Lodi community. He has a passion for the job that comes through in all that he does. Officer Cascio leads a Transient Outreach Team comprised of the Homeless Liaison Officer, Lodi Committee on Homelessness chair Kathryn Siddle, Inner City Action staff, County Behavioral Health/Whole Person Care, social service providers, volunteers, and more. The team continues its efforts every other Wednesday with smaller teams going out almost daily to ensure people experiencing homelessness or who are in need of services get the assistance they

need. With the Temporary Emergency Shelter opening, it has increased the number of people the outreach team has been able to reach and provide access to services. Although enforcement is not the focus of these teams, over 200 Lodi Municipal Code violation citations have been issued by the team since 2017. In addition, the team has removed and returned 700 shopping carts.

Mental Health Liaison
The City utilizes a retired police annuitant who works to coordinate homeless response with county mental health.

The annuitant rides with county mental health employees monthly to locate those most in need and to consider mental health aspects of encounters . This process has directed mental health to many subjects in crisis in an effort to get mental health placements, evaluations and treatments as needed.

Providing downtown wi-fi internet and music

City Council approved utilization of American Rescue Plan Act funds to upgrade fiber infrastructure City wide to build the back bone infrastructure necessary to eventually pull fiber to all properties within the City. Current planning is underway for four phases of this project:

Phase 1 – Existing Lodi Fiber cable route that will be resized Phase 2 – 16 added sites (IE. Parks, Traffic Signals, Animal Shelter, Transit Station and Library) Phase 3 – Downtown Conduit along School Street
Phase 4 – Southern Ring along Harney Lane then up Ham Lane

Currently approved funding is anticipated to cover the planning and delivery of these fiber projects by end of calendar year 2023. These phases will provide immediate benefit to the City for municipal uses and provide the backbone infrastructure for future expansion for private use either through a municipal utility or through public private partnership. Future discussions and policy decisions by City Council along with significant funding, either public or private, are needed to advance this goal.

Beautification of highway overpasses
In 2017, the City partnered with Caltrans to beautify the highway the Union Pacific Overcrossing at Kettleman Lane. The embankment slopes were cleared and replanted with ice plant ground covering and crepe myrtle trees were planted along the top of the slopes. Staff is currently exploring options to add art features onto the protective fences at various overcrossings along State Route 99.

City Council approved funding to construct significant entryway art to welcome visitors to Lodi and celebrate Lodi’s rich heritage. A total of $1 million has been approved, $500,000 each for art installations coming into Lodi from I-5 and at the Turner Road entrance to Lodi from Highway 99. Staff is working to contract with an artist for the art installation on I-5 and preparing a call for artists to solicit ideas for the piece at Turner Road and SR99.

City Staff an d Caltrans are currently working on a landscape maintenance agreement for the newly awarded Turner Road / SR99 Interchange Project. The agreement (scheduled for Council approval in December) will authorize the City to conduct landscape maintenance on this portion of Caltrans right of way; and will assure this future gateway to the City is properly maintained for residents and visitors entering from SR99.

One time funding available – Approximately $8 million

The City has experienced unprecedented and continuous growth for the last decade. At the same time, for the last three fiscal years, the City has benefited f rom new revenue from Measure L. The last fiscal year, the City experienced a historically challenging labor market that made hiring and maintaining workforce at or near budgeted levels difficult resulting in significant unspent budget. The City also took advantage of a debt refinancing opportunity that resulted in further budgetary savings.

The result of these factors is a historic one time budget surplus for Fiscal Year 2021/22 of over $8 million. Per existing City Council Pension Stabilization Policy (PSP), the City Manager and Treasurer are required to invest these funds along with all other operating fund’s relative share into the City’s Pension Stabilization Fund. The City still has a sizeable pension issue to address as noted in this report, however surpl uses of this size were never envisioned by Staff prior to recommending the PSP to Council. By definition, these are surplus dollars and the General Fund can support a contribution of this size but other funds would be seriously impacted if the letter of the policy is followed at this time.

Staff finds it prudent to invest additional resources in the PSP or towards Additional Discretionary Payments to CalPERS, but would also like t o provide Council a specific time to discuss the use of these historic surpl us reserves. Should Council direct staff to set a future agenda for City Council goal setting, it may be prudent to consider use of these reserves at that time.

FISCAL IMPACT: Not Applicable

FUNDING AVAILABLE: Not Applicable

_______________________________________
Andrew Keys
Deputy City Manager/Internal Services Director

AGENDA ITEM H-03

COUNCIL COMMUNICATION
APPR
OVED: ________________________________
Stephen Schwabauer, City Manager
AGENDA TITLE: Adopt Resolution Approving Final Budget Adjustments for Fiscal Year 2022 and Appropriating Funds ($1,180,816.55)
M
EETING DATE: November 2, 2022
P
REPARED BY: Budget Manager
RE
COMMENDED ACTION: Adopt Resolution Approving Final Budget Adjustments for Fiscal Year 2022 and Appropriating Funds ($1,180,816.55).

BACK
GROUND INFORMATION: The year-end closing process for each fiscal year takes many months to finalize all expenditures and journal postings. During the closing process for FY 22, additional budget was needed in Fleet Services, PRCS Grant Fund, Electric Utility Capital and the Asset Seizure Fund.

Fl
eet Services was in need of an additional $190,818.39 in appropriations to cover increases in fuel and repair supplies due to inflation and supply demands. These costs are charged back to departments for the services used. No additional budgetary adjustments were needed in operating department budgets.

PR
CS Grants was in need of an additional $1,097.16 in appropriations for the Stocker grant. This grant is funded on an annual basis and is used to provide aquatic programming sponsorships for youth in need. In FY 22, a total of 127 program sponsorships were awarded which included 107 swim lessons participants, 18 summer swim participants and 2 lifeguard course participants.

The E
lectric Utility capital program includes several maintenance projects that are needs-based driven. Annual budgets are created with expected expenditure needs. For FY 22, three projects were over spent due to an increase in service level demands and increased system maintenance efforts associated with safety and reliability. These costs totaled $641,461. These projects are:
• Wor
k for Others – need for $266,158 in appropriations for subdivision development. • Overhead Maintenance – need for $112,376 in appropriations for conductor projects. • Underground Maintenance –need for $262,927 in appropriations for inspections and cable.

O
n October 6, 2021, City Council adopted resolution 2021-272 which authorized the use of $347,440 in Asset Seizure funds for the design work on the Police Training Facility. The resolution did not include facilitating the transfer of funds to the General Fund Capital Improvement Fund where the project is being expensed. The action requested is to provide the authorization to transfer the funds.

FISCAL IMPACT: Fleet: The costs were recovered through charges to departments. All departments were able to accommodate the increased costs within their FY 22 budgets.

PRCS Stocker Grant: Funding was received to cover 100% of the program costs.

Electric Utility: Work for Others is reimbursed by developers; maintenance projects to come from fund balance.

Asset Seizure Funds: No impact. Use of the funds were previously authorized.

FUNDING AVAILABLE: Fund balance is available to cover the above budgetary adjustments. Adjustments are as follows:

Fleet: 65055000.72551 $ 115,341.25
65055000.72533 $ 71,750.23
65055000.72355 $ 3,726.91
Stocker Grant: 20673400.72388 $ 1,097.16
Electric Utility: 50199000.77020 $ 641,461.00
Asset Seizure: 21099000.76220 $ 347,440.00
TOTAL: $1,180,816.55

_______________________________________
Andrew Keys
Deputy City Manager/Internal Services Director

#43
District Nos: Citywide Project Length Ongoing Priority High Section II
Expenditure Prior Years FY 20/21
Estimate
FY 21/22
Budget
FY 22/23 FY 23/24 FY 24/25 FY 25/26 Future Yrs Total
Internal Staff -$ 360,000$ 1,343,000$ 1,343,000$ 846,200$ 846,200$ 846,200$ N/A 5,584,600$ Miscellaneous -$ 241,000$ 1,129,376$ 1,017,000$ 685,800$ 685,800$ 685,800$ N/A 4,444,776$ Contracts -$ 424,579$ 50,000$ 50,000$ 50,000$ 35,000$ 35,000$ N/A 644,579$ Total Capital Costs -$ 1,025,579$ 2,522,376$ 2,410,000$ 1,582,000$ 1,567,000$ 1,567,000$ N/A 10,673,955$ Section III
Funding Source(s) Prior Years FY 20/21
Estimate
FY 21/22
Budget
FY 22/23 FY 23/24 FY 24/25 FY 25/26 Future Yrs Total
501 - EU Outlay Capital Reserve Fund -$ 1,351,000$ 2,410,000$ 2,410,000$ 1,582,000$ 1,567,000$ 1,567,000$ N/A 10,887,000$ Total Project Financing -$ 1,351,000$ 2,522,376$ 2,410,000$ 1,582,000$ 1,567,000$ 1,567,000$ N/A 10,887,000$ Section IV
Operating Cost or (savings) Prior Years FY 20/21
Estimate
FY 21/22
Budget
FY 22/23 FY 23/24 FY 24/25 FY 25/26 Future Yrs Total
Personnel -$ -$
Other Operating Costs -$ -$
Total Operating Impact -$ -$ -$ -$ -$ -$ -$ -$ -$ Funding Sources/Methods of Financing
Operating Budget Impact
Estimated Project Costs
Section I:Description
Capital Improvement Program - Maintenance
Additional Information
These ongoing efforts include replacement of annealed copper conductors with aluminum conductor steel reinforced (ACSR). Whereas copper is notoriously brittle and prone to breakage with age, ACSR offers optimal strength for ovehead line design. Additional activities include replacement of poles, transformers and/or switches as needed as well as inspection of overhead infrastrucutre, and pole test, treat and stubbing efforts.

Justification/factor driving project
Maintenance and improvements associated with the 12 kV overhead distribution system.

Munis Project Code:

FY 2021-2022
Maintenance Project Title: 12 kV Overhead Maintenance EUCP-21002 #44
District Nos: Citywide Project Length Ongoing Priority High Section II
Expenditure Prior Years FY 20/21
Estimate
FY 21/22
Budget
FY 22/23 FY 23/24 FY 24/25 FY 25/26 Future Yrs Total
Internal Staff -$ 115,000$ 115,000$ 25,000$ 25,000$ 25,000$ 25,000$ N/A 330,000$ Miscellaneous -$ 185,000$ 447,927$ 40,000$ 40,000$ 40,000$ 40,000$ N/A 792,927$ Contracts -$ 750,000$ 500,000$ 100,000$ 100,000$ 100,000$ 100,000$ N/A 1,650,000$ Total Capital Costs -$ 1,050,000$ 1,062,927$ 165,000$ 165,000$ 165,000$ 165,000$ N/A 2,772,927$ Section III
Funding Source(s) Prior Years FY 20/21
Estimate
FY 21/22
Budget
FY 22/23 FY 23/24 FY 24/25 FY 25/26 Future Yrs Total
501 - EU Outlay Capital Reserve Fund -$ 1,050,000$ 1,062,927$ 165,000$ 165,000$ 165,000$ 165,000$ N/A 2,772,927$ Total Project Financing -$ 1,050,000$ 1,062,927$ 165,000$ 165,000$ 165,000$ 165,000$ N/A 2,772,927$ Section IV
Operating Cost or (savings) Prior Years FY 20/21
Estimate
FY 21/22
Budget
FY 22/23 FY 23/24 FY 24/25 FY 25/26 Future Yrs Total
Personnel -$ -$
Other Operating Costs -$ -$
Total Operating Impact -$ -$ -$ -$ -$ -$ -$ -$ -$ Funding Sources/Methods of Financing
Operating Budget Impact
Estimated Project Costs
Section I:Description
Capital Improvement Program - Maintenance
Additional Information
These ongoing maintenance efforts include, but are not limited to, replacement of failed/end-of-life cable; replacement of cable due to engineering study of predictive failure; installation/replacement of subsurface equipment with pad-mounted equipment to increase operability and reliability and other underground electric infrastructure maintenance as needed.

Justification/factor driving project
Inspection and replacement of 12 kV underground infrastructure and other underground electric infrastructure maintenance as needed.

Munis Project Code:

FY 2021-2022
Maintenance Project Title: 12 kV Underground Maintenance EUCP-21006 #46
District Nos: Citywide Project Length Ongoing Priority Normal Section II
Expenditure Prior Years FY 20/21
Estimate
FY 21/22
Budget
FY 22/23 FY 23/24 FY 24/25 FY 25/26 Future Yrs Total
Internal Staff -$ 500,000$ 275,000$ 275,000$ 275,000$ 275,000$ 275,000$ N/A 1,875,000$ Miscellaneous -$ 500,000$ 541,158$ 275,000$ 275,000$ 275,000$ 275,000$ N/A 2,141,158$ Total Capital Costs -$ 1,000,000$ 816,158$ 550,000$ 550,000$ 550,000$ 550,000$ N/A 4,016,158$ Section III
Funding Source(s) Prior Years FY 20/21
Estimate
FY 21/22
Budget
FY 22/23 FY 23/24 FY 24/25 FY 25/26 Future Yrs Total
501 - EU Outlay Capital Reserve Fund -$ 1,000,000$ 816,158$ 550,000$ 550,000$ 550,000$ 550,000$ N/A 4,016,158$ Total Project Financing -$ 1,000,000$ 816,158$ 550,000$ 550,000$ 550,000$ 550,000$ N/A 4,016,158$ Section IV
Operating Cost or (savings) Prior Years FY 20/21
Estimate
FY 21/22
Budget
FY 22/23 FY 23/24 FY 24/25 FY 25/26 Future Yrs Total
Personnel -$ -$
Other Operating Costs -$ -$
Total Operating Impact -$ -$ -$ -$ -$ -$ -$ -$ -$ Funding Sources/Methods of Financing
Operating Budget Impact
Estimated Project Costs
Section I:Description
Capital Improvement Program - Maintenance
Additional Information
This work is invoiced and paid for by the requesting party with revenues returned to the Electric Utility operating fund.

Justification/factor driving project
Installation and/or expansion of electrical service infrastructure for new development and/or existing customers.

Munis Project Code:

FY 2021-2022
Maintenance Project Title: Work for Others - Reimbursed EUCP-15004 RESOLUTION NO. 2022-____

A RESOLUTION OF THE LODI CITY COUNCIL

APPROVING FINAL BUDGET ADJUSTMENTS FOR FISCAL
YEAR 2022; AND FURTHER APPROPRIATING FUNDS

========================================================================

WHEREAS, the Lodi City Council adopted the Fiscal Year 202 1/22 Financial Plan and Budget on June 2, 2021; and

WHEREAS, the year-end reporting period for Fiscal Year 20 21/22 has been completed; and

WHEREAS, additional budgets for Fleet Services, PRCS Grants, Electric Utility and Asset Seizure funds are necessary to address unbudgeted expenditure needs for Fiscal Year 2021/22; and

WHEREAS, staff recommends the additional Fiscal Year 2021/22 appropriations as follows:

Fleet: 65055000.72551 $115,341.25
65055000.72533 $ 71,750.23
65055000.72355 $ 3,726.91
Stocker Grant: 20673400.72388 $ 1,097.16
Electric Utility: 50199000.77020 $641,461.00
Asset Seizure: 21099000.76220 $347,440.00

NOW, THEREFORE BE IT RESOLVED that the Lodi City Council does hereby authorize the additional Fiscal Year 2021/22 appropriations and adjustments totaling $1,180,816.55, as set forth above.

Dated: November 2, 2022
========================================================================

I hereby certify that Resolution No. 202 2-____ was passed and adopted by the City Council of the City of Lodi in a regular meeting held November 2, 2022, by the following vote:

AYES: COUNCIL MEMBERS –

NOES: COUNCIL MEMBERS –

ABSENT: COUNCIL MEMBERS –

ABSTAIN: COUNCIL MEMBERS –

OLIVIA NASHED
City Clerk

2022-___
AGENDA ITEM H-04

COUNCIL COMMUNICATION
APPR
OVED: ________________________________
Stephen Schwabauer, City Manager
AGENDA TITLE: Approve the Sponsorship of the Let Hope Shine Gala by Uplift All Foundation for $10,000 M
EETING DATE: November 2, 2022
P
REPARED BY: City Clerk
RE
COMMENDED ACTION: Approve the Sponsorship of the Let Hope Shine Gala by Uplift All Foundation for $10,000.

B
ACKGROUND INFORMATION: Uplift All Foundation is coordinating its Second annual Gala Dinner titled “Let Hope Shine” on November 5, 2022.
“
Let Hope Shine Gala” will bring together the community to officially unveil the second Loads of Hope van, a mobile laundry service for the underserved homeless community. The laundrovans are the first of their kind in San Joaquin County. During the event, Uplift All Foundation will be accepting sponsorships to aid with their goal:
goal to defeat homelessness . Funds generated from this event will strengthen their 2022 goal to expand the Loads of Hope services. They are poised to launch a fleet of three vans, serving 5-days a week throughout the year.

Loads
of Hope, which operates under the Uplift All Foundation, has been a key component of homeless outreach in Lodi, especially over the last several years. They not only provide laundry and food services for those experiencing homelessness, but have Behavioral Health and Medical services come right alongside them to ensure individuals get the support and care they need. They are at several Lodi locations throughout the week providing these much-needed services including Gravity Church and the Access Center. At the Access Center, they not only wash client clothes, but also sleeping bags and blankets, helping maintain a clean and healthy environment while reducing the waste of clothing being utilized by residents.

T
he “Let Hope Shine Gala” includes five levels of sponsorships:
 Fr
iend: $1,000
 Bronze $2,500
 Silver: $5,000
 Gold: $10,000
 Platinum: $25,000
D
ue to the remarkable work provided by Loads of Hope and the Uplift All Foundation to the and the continued partnership with the City of Lodi, City staff wish to support the organization by sponsoring them a donation of $10,000.

FUNDING AVAILABLE AND FISCAL IMPACT:

Non-Departmental Miscellaneous Professional Services - 10095000.72450 - $10,000.00

_______________________________________
Andrew Keys
Deputy City Manager/Internal Services Director

________________________________________
Olivia Nashed
City Clerk