Agenda — Lodi City Council, December 7, 2022 (part 1 of 3)

Revised 10/2021 12/1/2022 9:33 AM

For information regarding this Agenda please contact:

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

b) Actual Litigation: Government Code Section 54956.9; Two Applications; Mark Azevedo v. City of Lodi, Workers’ Compensation, WCAB Case #ADJ10852658 (02/07/17), #ADJ11015708 (CT-2/7/17) (CA)

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
B. Presentations
B-1 Mayor’s Community Service Awards (CLK)

B-2 Presentation to Retiring Members of Boards, Committees, Commissions, and Task Forces (CLK)

B-3 Conchas with the Cops Proclamation (CLK)

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: December 7, 2022
Time: Closed Session 6:45 p.m.

Regular Meeting 7:00 p.m.

CITY COUNCIL AGENDA
DECEMBER 7, 2022

PAGE TWO

B-4 Presentation to Outgoing Mayor (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 October 28, 2022 through November 17, 2022 in the Total Amount of $5,310,485.54 (FIN)

C-2 Approve Minutes (CLK)
a) November 2, 2022 (Regular Meeting)
b) November 15, November 22, and November 29, 2022 (Shirtsleeve Sessions) c) November 29, 2022 (Special Meeting)

Res. C-3 Adopt Resolution Ratifying City Manager’s Approval of Mobile Field Force and Special Weapons and Tactics Transportation Van Purchase from Showcase Auto Sales, Inc., of Modesto ($60,000) (PD)

Res. C-4 Adopt Resolution Ratifying Purchase of 14 Pad-Mount Transformers from Anixter, Incorporated, of Benicia ($693,295.79) (EU)

C-5 Approve Plans and Specifications and Authorize Advertisement for Bids for Salas Park Parking Lot Improvements (PW)

C-6 Approve Plans and Specifications and Authorize Advertisement for Bids for Turner Road and Century Boulevard Resurfacing Project (PW)

C-7 Accept Improvements Under Contract for Garfield Street Safe Routes to School (PW)

Res. C-8 Adopt Resolution Accepting Gateway South Subdivision, Unit No. 2, Tract No. 3942, Public Improvements, Amending Traffic Resolution No. 97-148 by Approving Stop Controls on Mahogany Drive at Lower Sacramento Road and Blossom Drive, Two-Way Stop Control on Lyndon Street at Mahogany Drive, and Stop Controls on Oleander Drive at Blossom Drive and Elan Street (PW)

Res. C-9 Adopt Resolution Authorizing City Manager to Execute Improvement Agreement Addendum No. 2 for Gateway South Subdivision, Unit No. 3, Tract No. 4079 (PW)

Res. C- 10 Adopt Resolution Authorizing City Manager to Execute Landscape Maintenance Agreement with State of California for State Route 99/Turner Road Interchange Improvements (PW)

Res. C- 11 Adopt Resolution Authorizing City Manager to Execute Two-Year Professional Services Agreement with WGR Southwest, Inc., of Los Alamitos, for Stormwater Support Services ($182,320) (PW)

Res. C- 12 Adopt Resolution Authorizing City Manager to Execute Professional Services Agreement with Mintier Harnish, LP, a California Limited Partnership, for Preparation of Housing Element Update (Not to Exceed $500,000) and Appropriate Funds ($500,000) (CD)

Res. C- 13 Adopt Resolution Authorizing City Manager to Execute Three-Year Professional Services Agreement for Recreational Vehicle Abatement Services with Mach One Towing, of Lodi ($66,300) (PD)

Res. C- 14 Adopt Resolution Authorizing City Manager to Execute Amendment No.1 to Professional Services Agreement with Quest Media and Supplies, Inc., for Transit Division Video Surveillance System Licensing and Equipment Replacement ($55,000) (ISD)

Res. C- 15 Adopt Resolution Authorizing Police Chief to Accept Grant and Execute Contract Administered by Department of Alcoholic Beverage Control and Appropriate Funds ($30,000) (PD)

Res. C- 16 Adopt Resolution Approving Arts Grants for Fiscal Year 2022/2023 (PRCS)

CITY COUNCIL AGENDA
DECEMBER 7, 2022

PAGE THREE

Res. C- 17 Adopt Resolution Approving Addition of State of California 48 Megawatt Natural Gas Power Plant Project to Capital Improvement Program, Approving Budget, and Appropriating Funds ($4,300,000) (ISD)

C- 18 Approve Lodi Tourism Business Improvement District (LTBID) 2021 Annual Report (ISD)

Res. C- 19 Adopt Resolution Accepting Fiscal Year 2021/2022 Measure L Citizen’s Oversight Committee Annual Accountability Report and Accepting Committee’s Recommendation to Create a One- Page Flyer to Promote Successes of Measure L (ISD)

C- 20 Appoint Hector Soto as a Greater Lodi Area Youth Commission Adult Advisor and Peter Rosado to the Site Plan and Architectural Review Committee (CLK)

Res. C- 21 Adopt Resolution Modifying the “Protocol Account” Policy to Increase the Expenditures Limit Made f rom City “Protocol Account” (CLK)

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 Section 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 to 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 – None

H. Regular Calendar

H-1 Receive and File City’s Annual Comprehensive Financial Report (Fiscal Year 2021/22) by The Pun Group (ISD)

Res. H-2 Adopt Resolution Approving Memorandum of Understanding between City of Lodi and AFSCME – General Services for Period January 1, 2023 through December 31, 2025 (ISD)

Res. H-3 Adopt Resolution Approving Memorandum of Understanding between City of Lodi and AFSCME – Maintenance & Operators for Period January 1, 2023 through December 31, 2025 (ISD)

Res. H-4 Adopt Resolution Approving Side-Letter Agreement between City and Lodi Professional Fire Fighters to Provide Paramedic Incentives (ISD)

Res. H-5 Adopt Resolution Approving Side-Letter Agreement between City and Lodi Police Dispatchers Association to Provide Training Incentive of Five Percent for Dispatchers/Jailers Who Provide Training to Newly-Hired Dispatcher/Jailers (ISD)

Res. H-6 Adopt Resolution Approving Addendum to Memorandum of Understanding between City of Lodi and the Lodi Police Dispatchers Association for Period July 1, 2022 through June 30, 2025, Providing an Additional One Percent Wage Increase (ISD)

Res. H-7 Adopt Resolution Approving Revisions to Contracts for Lodi Executive Management Employees (Excluding Council Appointees) for Period January 1, 2023 through December 31, 2025 (ISD)

Res. H-8 Adopt Resolution Approving Revisions to City Manager’s Employment Contract Amending Compensation and Benefits (ISD)

CITY COUNCIL AGENDA
DECEMBER 7, 2022

PAGE FOUR

Res. H-9 Adopt Resolution Approving Revisions to City Attorney’s Employment Contract Amending Compensation and Benefits (ISD)

Res. H- 10 Adopt Resolution Approving Revisions to City Clerk’s Employment Contract Amending Compensation and Benefits (ISD)

Res. H- 11 Adopt Resolution Approving Revisions to Salary Range for Position of Executive Administrative Assistant (ISD)

I. Ordinances

Ord. I-1 Adopt Ordinance No. 2005 Entitled, “An Ordinance of the Lodi City Council Adopting the ‘2022 California (Adopt) Building Code,’ Volumes 1 and 2, Thereby Repealing and Re-Enacting Lodi Municipal Code Chapter 15.04 in Its Entirety” (CLK)

Ord. I-2 Adopt Ordinance No. 2006 Entitled, “An Ordinance of the Lodi City Council Adopting the ‘2022 California (Adopt) Existing Building Code,’ Thereby Repealing and Re-Enacting Lodi Municipal Code Chapter 15.02 in Its Entirety” (CLK)

Ord. I-3 Adopt Ordinance No. 2007 Entitled, “An Ordinance of the Lodi City Council Adopting the ‘2022 California (Adopt) Mechanical Code,’ Thereby Repealing and Re-Enacting Lodi Municipal Code Chapter 15.08 in Its Entirety” (CLK)

Ord. I-4 Adopt Ordinance No. 2008 Entitled, “An Ordinance of the Lodi City Council Adopting the ‘2022 California (Adopt) Electrical Code,’ Thereby Repealing and Re-Enacting Lodi Municipal Code Chapter 15.16 in Its Entirety” (CLK)

Ord. I-5 Adopt Ordinance No. 2009 Entitled, “An Ordinance of the Lodi City Council Adopting the ‘2022 California (Adopt) Plumbing Code,’ Thereby Repealing and Re-Enacting Lodi Municipal Code Chapter 15.12 in Its Entirety” (CLK)

Ord. I-6 Adopt Ordinance No. 2010 Entitled, “An Ordinance of the Lodi City Council Adopting the ‘2022 California (Adopt) Residential Building Code,’ Thereby Repealing and Re-Enacting Lodi Municipal Code Chapter 15.06 in Its Entirety” (CLK)

Ord. I-7 Adopt Ordinance No. 2011 Entitled, “An Ordinance of the Lodi City Council Adopting the ‘2022 California (Adopt) Green Building Standard Code,’ Thereby Repealing and Re-Enacting Lodi Municipal Code Chapter 15.18 in Its Entirety” (CLK)

Ord. I-8 Adopt Ordinance No. 2012 Entitled, “An Ordinance of the Lodi City Council Adopting the ‘2022 California (Adopt) Fire Code,’ Thereby Repealing and Re-Enacting Lodi Municipal Code Chapter 15.20 in Its Entirety” (CLK)

Ord. I-9 Adopt Ordinance No. 2013 Entitled, “An Ordinance of the Lodi City Amending Lodi Municipal Code (Adopt) Title 17 – Development Code – Article 3, ‘Site Planning and General Development Standards,’ Chapter 17.36, ‘Standards for Specified Land Uses,’ by Adding Section 17.36.160, ‘Two Unit Urban Residential Development,’ and Article 5, ‘Subdivisions,’ by Adding Chapter 17.55, ‘Urban Lot Split,’ and Repeal and Reenact Article 7, ‘Definitions,’ to Add Definitions of ‘Acting in Concert With,’ ‘Car Share,’ ‘Tenant,’ and ‘Two Unit Urban Residential Development’.” CEQA Determination: Exempt per Section 15061(b)(3) of the CEQA Guidelines (CLK)

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.

______________________________
Oli via 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 least 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 recibidas 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

APPROVE
D: ________________________________
Stephen Schwabauer, City Manager
AGENDA TITLE: Presentation of Mayor’s Community Service Award MEETI
NG DATE: December 7, 2022
PREP
ARED BY: City Clerk
RECO
MMENDED ACTION: Mayor Chandler will present the Mayor’s Community Service Award to Officer Michael Cascio and Mr. Johnny Coughran.

BACKGRO
UND INFORMATION: Mayor Chandler has selected Officer Michael Cascio and Mr. Johnny Coughran to receive the prestigious Mayor's Community Service Award for 2022. Officer Cascio and Mr. Coughran will be at the meeting to accept the awards.

FISCAL IMPACT: Not applicable.

FUNDING AVAILABLE: Not applicable.
_______________________________
Ol
ivia Nashed
City Clerk
AGENDA ITEM B-02

COUNCIL COMMUNICATION
APPROVED: ________________________________
Stephen Schwabauer, City Manager
\\cvcf
ilv01\administration$\Shared\cityclerk\Agenda\2022\120722\CLK - B&C Recognition\B&C Recognition.doc AGENDA TITLE: Presentation to Retiring Members of Boards, Committees, Commissions, and Task Forces
MEETING DATE: December 7 , 2022
PREP
ARED BY: City Clerk
RECOMMENDED ACTION: Mayor Chandler will present certificates of recognition to retiring members of boards, committees, commissions, and task forces.

BACKGROUND INFORMATION: Each year, the City exte nds its appreciation to citizens who generously volunteer their time and talents toward serving their community by recognizing those who retired during the past year.

Mayor Chandler will present Certificates of Recognition to the following retirees:

Lodi Arts Commission
Julieann Martin 2021 – 2022
Lani Eklund 2019 – 2022
Bailey Caswell 2021 – 2022
Greater Lodi Area Youth Commission
Student Appointees:

Talia Duran 2020 – 2022
Kyle Armknecht 2020 – 2022
Benjamin Plath 2019 – 2022
Rayleen Salgado 2019 – 2022
Ella Waters 2021 – 2022
Clair Selling 2021 – 2022
Merit Onyekwerer 2021 – 2022
Adult Advisors:

Bre Meyer 2013 – 2022
Jennifer Phillips-Lorentzen 2014 – 2022
Library Board of Trustees
Eugene Chow 2020 – 2022
Richard Seim 2019 – 2022
Measure L Citizens’ Oversight Committee
Phil Pennino 2019 – 2022
Planning Commission
William Cummins 2005 – 2022
Julieann Martin 2019 - 2022
Senior Citizens Commission
Jill Hernandez 2014 – 2022
Pat Hill 2011 – 2022
Lodi Improvement Committee
Magdalena Saldana 2020 – 2022
Vanessa Madrigal-Lauchland 2020 – 2022
David Diskin 2018 – 2022
FISCAL IMPACT: Not applicab le.

FUNDING AVAILABLE: Not applicable.
_______________________________
Olivia Nashed
ON/PMF C i t y C l e r k

AGENDA ITEM B-03

COUNCIL COMMUNICATION

APPROVE
D: ________________________________
Stephen Schwabauer, City Manager
AGENDA TITLE: Presentation of Proclamation for Conchas with the Cops Event MEETI
NG DATE: December 7, 2022
PREP
ARED BY: City Clerk
RECO
MMENDED ACTION: Mayor Chandler will present a proclamation for Conchas with the Cops event.

BACKGRO
UND INFORMATION: The local small business, Super Torta Chilangas, and surrounding Latino businesses saw an opportunity to team up with the Lodi Improvement Committee and local law enforcement to host the first of a series of events called, “Conchas with the Cops,” on August 11, 2021. The City of Lodi recognizes Super Torta Chilangas and the Conchas with Cops event for their positive impact on the Lodi community.

FISCAL IMPACT: Not applicable.

FUNDING AVAILABLE: Not applicable.
_______________________________
Ol
ivia Nashed
City Clerk
AGENDA ITEM B-04

COUNCIL COMMUNICATION

APPROVE
D: ________________________________
Stephen Schwabauer, City Manager
AGENDA TITLE: Presentation to Outgoing Mayor
MEETI
NG DATE: December 7, 2022
PREP
ARED BY: City Clerk
RECO
MMENDED ACTION: Presentation to outgoing Mayor.

BACKGRO
UND INFORMATION: City Manager Schwabauer will present a plaque to outgoing Mayor Mark Chandler.

FIS
CAL IMPACT: None.

FUNDIN
G AVAILABLE: None.
_______________________________________
Ol
ivia Nashed
City Clerk

AGENDA ITEM C-01

COUNCIL COMMUNICATION

APPROVED: ________________________________
Stephen Schwabauer, City Manager

AGENDA TITLE: Receive Register of Claims for October 28, 2022 through November 17, 2022 in the Total Amount of $5,310,485.54

MEETING DATE: December 7, 2022

PREPARED BY: Internal Services Director

RECOMMENDED ACTION: Receive the attached Register of Claims for $5,310,485.54.

BACKGROUND INFORMATION: Attached is the Register of Claims in the amount of $5, 310,485.54 for October 28, 2022 through November 17, 2022. Also attached is Payroll in the amount of $1,900,302.86 through October 30, 2022 and $2,027,154.36 through November 13, 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 $2,558,745.75
103 Measure L $4,161.45
104 American Rescue Plan $19,600.00
120 Library Fund $19,471.35
140 Expendable Trust $242,195.76
200 Parks Rec & Cultural Services $33,181.55
270 Comm Dev Special Rev Fund $3,276.94
300 Street Fund $607.06
301 Gas Tax-2105 2106 2107 $14,047.38
305 TDA - Streets $3,610.93
309 State Bike Lane Fund $80,076.45
350 H U D $42,119.00
355 GRANTS COMM. IMPR $38,666.02
431 Capital Outlay/General Fund $50,252.93
432 Parks & Rec Capital $1,268.46
437 IMF Parks & Rec Facilities $6,795.67
500 Electric Utility Fund $521,980.29
501 Utility Outlay Reserve Fund $5,078.56
504 Public Benefits Fund $56,943.57
508 Environmental Compliance $1,400.00
530 Waste Water Utility Fund $153,860.92
531 Waste Wtr Util-Capital Outlay $60,477.72
560 Water Utility Fund $131,810.77
561 Water Utility-Capital Outlay $36,263.75
590 Central Plume $3,675.00
600 Dial-a-Ride/Transportation $224,131.61
601 Transit Capital $10,000.00
605 Prop.1B State of Good Repair $3,305.00
641 Equipment replacement $37,373.00
643 Vehicle replacement PD $24,672.04
650 Internal Service/Equip Maint $66,935.52
655 Employee Benefits $765,380.81
660 General Liabilities $51,087.04
665 Worker's Comp Insurance $38,033.24
Total $5,310,485.54
AP Council Report Summary
10/28/2022-11/17/2022
City of Lodi Live v2020.3 11/21/2022 8:05:19 AM
Fund Description Amount
899,070.78
241,513.06
22,388.77
125,304.76
46,756.22
45,864.22
255,057.90
41,416.61
164,109.07
27,105.56
13,240.23
18,475.68
Report Total 1,900,302.86
Council Report: Payroll
Pay Period: 10/30/2022
100 General Fund
103 Measure L
120 Library Fund
200 Parks Rec & Cultural Services
270 Comm Dev Special Rev Fund
301 Gas Tax-2105 2106 2107
500 Electric Utility Fund
501 Utility Outlay Reserve Fund
650 Internal Service/Equip Maint
530 Waste Water Utility Fund
560 Water Utility Fund
600 Dial-a-Ride/Transportation
City of Lodi Live v2020.3 11/21/2022 8:37:44 AM
Fund Description Amount
1,025,086.34
237,522.86
21,642.57
124,275.58
41,526.66
45,985.28
232,554.19
71,013.02
159,392.43
33,458.18
9,181.00
18,089.70
7,426.55
Report Total 2,027,154.36
600 Dial-a-Ride/Transportation
650 Internal Service/Equip Maint
655 Employee Benefits
501 Utility Outlay Reserve Fund
530 Waste Water Utility Fund
560 Water Utility Fund
301 Gas Tax-2105 2106 2107
500 Electric Utility Fund
120 Library Fund
200 Parks Rec & Cultural Services
270 Comm Dev Special Rev Fund
Council Report: Payroll
Pay Period: 11/13/2022
100 General Fund
103 Measure L
City of Lodi Live v2020.3 11/21/2022 8:56:23 AM
AGENDA ITEM C-02

COUNCIL COMMUNICATION

APPROVE
D: ________________________________
Stephen Schwabauer, City Manager
AGENDA TITLE: Approve Minutes
a) November 2, 2022 (Regular Meeting)
b) November 15, 2022 (Shirtsleeve Session)
c) November 22, 2022 (Shirtsleeve Session)
d) November 29, 2022 (Shirtsleeve Session)
e) November 29, 2022 (Special Meeting)
MEETI
NG DATE: December 7, 2022
PREP
ARED BY: City Clerk
RECO
MMENDED ACTION: Approve the following minutes as prepared:
a) November 2, 2022 (Regular Meeting)
b) November 15, 2022 (Shirtsleeve Session)
c) November 22, 2022 (Shirtsleeve Session)
d) November 29, 2022 (Shirtsleeve Session)
e) November 29, 2022 (Special Meeting)

BACKGRO
UND INFORMATION: Attached is a copy of the subject minutes marked Exhibit A through E, respectively.

FISCAL IMPACT: Not applicable.

FUNDING AVAILABLE: Not applicable.
_______________________________
Ol
ivia Nashed
City Clerk
Attachments

LODI CITY COUNCIL

REGULAR CITY COUNCIL MEETING
CARNEGIE FORUM, 305 WEST PINE STREET
WEDNESDAY, NOVEMBER 2, 2022
The City Council Closed Session meeting of November 2, 2022, was called to order by Mayor Chandler at 6:32 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 6:32 p.m., Mayor Chandler adjourned the meeting to a Closed Session to discuss the above matters. The Closed Session adjourned at 7:05 p.m.

At 7:12 p.m., Mayor Chandler reconvened the City Council meeting, and City Attorney Magdich and Deputy City Manager Andrew Keys disclosed the following actions.

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

Item C-2b) was discussion only, with no reportable action.

Item C-2c) was discussion only, with no reportable action.

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
C-4 Return to Open Session / Disclosure of Actio n
A. Call to Order / Roll Call
1 Exhibit A
The Regular City Council meeting of November 2, 2022, was called to order by Mayor Chandler at 7:12 p.m.

Mayor Chandler presented a proclamation proclaiming November 1, 2022, as Extra Mile Day in the City of Lodi.

Mayor Chandler presented a proclamation proclaiming November 2022 as Lung Cancer Awareness Month in the City of Lodi.

Council Member Kuehne made a motion, second by Mayor Pro Tempore Hothi, to approve the following items hereinafter set forth, 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 $4,061,201.71.

The minutes of September 21, 2022 (Regular Meeting), October 5, 2022 (Regular Meeting), October 18, 2022 (Shirtsleeve Session), and October 25, 2022 (Shirtsleeve Session) were approved as written.

Adopted Resolution No. 2022-260 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 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)
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)
2 documents.

Adopted Resolution No. 2022-261 rejecting all bids, approving revised specifications, authorizing re-advertisement for bids, authorizing the City Manager to award the contract to the lowest responsive bidder for Peterson Park Tennis Court Resurfacing, in an amount not to exceed $60,000, and authorizing the City Manager to execute change orders in an amount not to exceed $5,000.

Adopted Resolution No. 2022-262 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, in the amount of $200,000.

Adopted Resolution No. 2022-263 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, in an amount not to exceed $99,914.

Adopted Resolution No. 2022-264 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 for the City of Lodi, in the amount of $100,000.

Adopted Resolution No. 2022-265 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, in the amount of $31,746.

Adopted Resolution No. 2022-266 authorizing the City Manager to execute Amendment No. 1 to the Professional Services Agreement with 4 Leaf, Inc., for building codes plans examining, 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)
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)
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)
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) 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)
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 Increase Current Contract Ending October 31,2022, by Adding Amount Not to Exceed $60,000, for Total Amount Not to Exceed $960,000 over Term of Agreement (CD) 3 building codes inspection, fire codes plans examining, fire codes inspection, and code enforcement services to increase 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.

Adopted Resolution No. 2022-267 authorizing the 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, in the amount of $54,000.

Set a public hearing for November 16, 2022 to consider the 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.

David Claxton provided public comment and read a letter into the record, on behalf of the Downtown Business Alliance, regarding the Safety Ambassador Program. The letter was submitted as a supplemental item.

Council Member Nakanishi provided information regarding solid waste.

Council Member Kuehne thanked the participants of the Lobstermania event hosted by the LOEL Center.

Mayor Chandler provided remarks regarding his attendance at the Ribbon Cutting for Needham Elementary School, the Femmes of Rock concert, and Lodi Police Department Badge Pinning, and commented on the newly-adopted Lodi Library Strategic Plan.

Council Member Khan provided remarks regarding his attendance at the groundbreaking at Turner Road and State Route 99 and the Ribbon Cutting for Needham Elementary School, and congratulated the newly sworn-in Police Officers.

Council Member Kuehne provided remarks regarding his attendance at the Diwali, Festival of Lights, event at the Sikh Temple.

Mayor Pro Tempore Hothi thanked the Council Members and staff that attended the Diwali, Festival of Lights, event.

None.

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) 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 No n-Agenda Items
4 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 consider adopting a resolution setting San Joaquin County Multi-Species Habitat Conservation and Open Space Plan Development Fees for 2023.

Community Development Director John Della Monica provided a PowerPoint presentation regarding the 2023 San Joaquin County Multi-Species Habitat Fees. Specific topics of discussion included San Joaquin Council of Governments' approval, fee adjustments, and recommended action.

Council Member Kuehne provided information regarding the history of the establishment of the San Joaquin Multi-Species Habitat Conversation and Open Space Plan Development program.

Discussion ensued between Council Member Nakanishi and City Manager Schwabauer regarding the process by which developers acquired permits prior to the establishment of this program.

Mayor Chandler opened the public hearing for public comment.

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

Council Member Kuehne made a motion, second by Council Member Nakanishi, to adopt Resolution No. 2022-268 setting San Joaquin County Multi-Species Habitat Conservation and Open Space Plan Development Fees for 2023.

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 site use and services agreement for the location of a 48-megawatt natural gas power plant on City-owned property.

Specific topics of discussion included power outage that occurred in September 2022, impacts of the power outage on businesses and residents, the method by which power is transmitted throughout the City of Lodi, Pacific Gas & Electric Company's timeline for the Northern San Joaquin 230 kV Transmission Project, the circumstances around which staff was informed of this project, costs and possible revenue of the project, peak hours of power usage, and details of the agreement with the State of California.

G. Public Hearings
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
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) 5 Council discussion ensued with City Manager Schwabauer, Electric Utility Director Jeff Berkheimer, and Enchanted Rock Consultant Jim Barbour regarding other projects within the same area, restrictions on revenue generated from this project, possible drawbacks, the amount of power used by residents during regular and peak hours and days, revenue impacts, the life term of the power plant dependent on State regulations, and the opportunity to retrofit the power plant to hydrogen.

Pat Patrick, on behalf of the Lodi Chamber of Commerce, provided a public comment regarding the item.

Lisa Craig provided a public comment regarding the item.

Council Member Nakanishi made a motion, second by Council Member Khan, to adopt Resolution No. 2022-269 authorizing the City Manager to execute a 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 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).

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
Deputy City Manager Keys provided a presentation regarding the progress toward City Council goals. Specific topics of discussion included projects completed by multiple departments relating to City Council goals established in 2015 and updated in 2017.

Council Member Nakanishi stated it was a good report.

Council Member Kuehne thanked Deputy City Manager Keys for the report.

Council Member Khan stated he was excited and looking forward to seeing projects being completed and thanked staff.

Deputy City Manager Keys provided a further report regarding One-Time Funds. Specific topics of the report included final amount to be determined after the audit, the requirement to invest a portion of those funds to the Pension Stabilization Fund, crediting City staff for their hard work to provide coverage to vacant positions within the past few years, and debt refinancing, which all attributed to the One-Time Funds.

Council discussion ensued with Deputy City Manager Keys regarding utilization of the One-Time Funds, timeline and method for setting City Council Goals, revisions and updates, and Council priority items and projects.

Council consensus was received to conduct a Council Goals exercise once the newly-elected Council Members are oathed into office.

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) 6 Lisa Craig provided public comment on the item.

Council Member Nakanishi made a motion, second by Mayor Pro Tempore Hothi, to receive the report on progress towards City Council goals and provide direction on future goal setting and process for use of One-Time Funds.

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
Deputy City Manager Keys provided a brief report regarding final budget adjustments for Fiscal Year 2022.

Mayor Pro Tempore Hothi made a motion, second by Council Member Kuehne, to adopt Resolution No. 2022-270 approving the final budget adjustments for Fiscal Year 2022 and appropriating funds in the amount of $1,180,816.55.

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 from the agenda by City Manager Schwabauer.

There being no further business to come before the City Council, the meeting was adjourned at 9:04 p.m.

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
ATTEST:

Olivia Nashed
City Clerk
7 LODI CITY COUNCIL

SHIRTSLEEVE SESSION
CARNEGIE FORUM, 305 WEST PINE STREET
TUESDAY, NOVEMBER 15, 2022
The November 15, 2022, Informal Informational Meeting ("Shirtsleeve" Session) of the Lodi City Council was canceled.

ATTEST:

Olivia Nashed
City Clerk
1 Exhibit B

LODI CITY COUNCIL

SHIRTSLEEVE SESSION
CARNEGIE FORUM, 305 WEST PINE STREET
TUESDAY, NOVEMBER 22, 2022
The November 22, 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, NOVEMBER 29, 2022
The November 29, 2022, Informal Informational Meeting ("Shirtsleeve" Session) of the Lodi City Council was canceled.

ATTEST:

Olivia Nashed
City Clerk
1 Exhibit D

LODI CITY COUNCIL

SPECIAL CITY COUNCIL MEETING
CARNEGIE FORUM, 305 WEST PINE STREET
TUESDAY, NOVEMBER 29, 2022
The City Council Closed Session meeting of November 29, 2022, was called to order by Mayor Chandler at 7:03 a.m.

At 7:03 a.m., Mayor Chandler adjourned the meeting to a Closed Session to discuss the above matters. The Closed Session adjourned at 7:59 a.m.

At 8:00 a.m., Mayor Chandler reconvened the City Council meeting, and Deputy City Manager Keys disclosed the following actions.

In regard to Item C-2a), reviews were conducted with City Council and direction was given, with no reportable action.

There being no further business to come before the City Council, the meeting was adjourned at 8:01 a.m.

A. Call to Order / Roll Call
B. Announcement of Closed Session
B-1 Review of Council Appointees (Government Code 54957) C. Adjourn to Closed Session
D. Return to Open Session/Disclosure of Actio n
E. Adjournment
ATTEST:

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

COUNCIL COMMUNICATION

APPROVED
: ________________________________
Stephen Schwabauer, City Manager
AGENDA TITLE: Adopt Resolution Ratifying the City Managers Approval of Mobile Field Force and Special Weapons and Tactics Transportation Van Purchase from Showcase Auto Sales, Inc. of Modesto, CA ($60,000)
MEETI
NG DATE: December 7, 2022
PREP
ARED BY: Chief of Police
RECOM
MENDED ACTION: Adopt resolution ratifying the City Manager’s approval of Mobile Field Force and Special Weapons and Tactics transportation van purchase from Showcase Auto Sales, Inc. of Modesto, CA in the amount of $60,000. .

BAC
KGROUND INFORMATION: The Lodi Police Department was allotted the purchase of a Mobile Field Force (MFF) and Special Weapons and Tactics (SWAT) transportation van through the normal fiscal year 2022/23 budgeting process.

The
van was requested to meet the need to transport MFF and SWAT team members to deployments and training activities. Currently, the SWAT Ballistic Armored Tactical Transport (BATT) is the only vehicle in the fleet that can transport multiple team members to an incident and the MFF team has a different tactical objective that would not require the use of the BATT.

The
Sergeant that oversees the MFF unit searched for vehicles that would fall within the $70,000 budgeted limit, had low mileage, and would fit multiple team members along with their gear. A 2022 Mercedes Sprinter Van was found at Showcase Auto Sales in Modesto, California, which met all of the needs of the department.

In order to secure the sale in the current fast-paced vehicle sales market, the City Manager approved the purchase of the van before it could be approved by the council.

Staff r
equests authorization to ratify the City Manager’s approval of the Mobile Field Force and Special Weapons and Tactics transportation van purchase from Showcase Auto Sales, Inc. of Modesto, CA in the amount of $59,999.99.
.

Adopt Resolution Ratifying the City Managers Approval of Mobile Field Force and Special Weapons and Tactics Transportation Van Purchase from Showcase Auto Sales, Inc. of Modesto, CA ($60,000) December 7, 2022

Page 2 ends

FISCAL IMPACT: There is no impact to the General Fund from this vehicle purchase.

FUNDING AVAILABLE: Vehicle Replacement Fund $60,000 (64399100.77040 - Expense)

_______________________________________ _____________________________________ Andrew Keys Sierra Brucia
Deputy City Manager/Internal Services Director Chief of Police From: Steve Schwabauer
To: Jennelle Baker-Bechthold; Andrew Keys
Cc: Lisa Noffsinger; Susan Bjork; Sierra Brucia
Subject: RE: Mercedes Van
Date: Wednesday, November 16, 2022 9:27:17 AM
Go ahead and get it and then put together a staff report for council to ratify Steve Schwabauer
Lodi City Manager
-------- Original message --------
From: Jennelle Baker-Bechthold <[email protected]>
Date: 11/15/22 10:58 AM (GMT-08:00)
To: Andrew Keys <[email protected]>, Steve Schwabauer <[email protected]> Cc: Lisa Noffsinger <[email protected]>, Susan Bjork <[email protected]>, Sierra Brucia <[email protected]>
Subject: RE: Mercedes Van
I have the dealership set up as a vendor now.

How would you like me to proceed?

From: Jennelle Baker-Bechthold
Sent: Monday, November 14, 2022 11:58 AM
To:

Andrew Keys <[email protected]>; Steve Schwabauer <[email protected]> Cc: Lisa Noffsinger <[email protected]>; Susan Bjork <[email protected]>; Sierra Brucia <[email protected]>
Subject: RE: Mercedes Van

I spoke with the dealership, and they would only commit to holding for a short time.

Usually, they hold them for a week with a deposit. They have had interested parties in the van since the quote day, but they have been steering people away from it.

It seems like they don’t want to give me a hard yes; they will hold it, or a hard no and lose the sale.

Not very helpful, I know.

From: Andrew Keys <
[email protected]>
Sent: Monday, November 14, 2022 11:29 AM
To: Jennelle Baker-Bechthold <[email protected]>; Steve Schwabauer <[email protected]> Cc: Lisa Noffsinger <[email protected]>; Susan Bjork <[email protected]>; Sierra Brucia <[email protected]>
Subject: RE: Mercedes Van

What communication do we have from the vendor that they will not hold it until December 8? And/or what’s the likelihood it’s gone by then?

From: Jennelle Baker-Bechthold <[email protected]>
Sent: Monday, November 14, 2022 11:24 AM
To: Andrew Keys <[email protected]>; Steve Schwabauer <[email protected]> Cc: Lisa Noffsinger <[email protected]>; Susan Bjork <[email protected]>; Sierra Brucia <[email protected]>
Subject: RE: Mercedes Van

It has been there since then.

They are not set up as a vendor, and I just received their W9 today to get the ball rolling on the process.

From: Andrew Keys <
[email protected]>
Sent: Monday, November 14, 2022 11:08 AM
To: Jennelle Baker-Bechthold <[email protected]>; Steve Schwabauer <[email protected]> Cc: Lisa Noffsinger <[email protected]>; Susan Bjork <[email protected]>; Sierra Brucia <[email protected]>
Subject: RE: Mercedes Van

Hi Jennelle,
The paperwork says November 4, have we been waiting for approval since then? Has the vehicle actually been sitting that long?

From: Jennelle Baker-Bechthold <[email protected]>
Sent: Monday, November 14, 2022 11:04 AM
To: Steve Schwabauer <[email protected]>; Andrew Keys <[email protected]> Cc: Lisa Noffsinger <[email protected]>; Susan Bjork <[email protected]>; Sierra Brucia <[email protected]>
Subject: FW: Mercedes Van

Steve and Andrew,

We have a new sprinter van approved in the budget this year for MFF and SWAT.

The department has identified a vehicle that is slightly used, has low mileage, and is only two years old. However, it is over the $50,000 vehicle purchasing limit.

Are you comfortable allowing us to purchase the vehicle and ratify the purchase at the December 7th council meeting? Otherwise, we will ask for approval at the December 7th council meeting and risk the vehicle being sold in the meantime.

Thanks, as always, for your input.

Jennelle
RESOLUTION NO. 2022-____

A RESOLUTION OF THE LODI CITY COUNCIL RATIFYING
THE CITY MANAGERS’ APPROVAL OF MOBILE FIELD FORCE AND

SPECIAL WEAPONS AND TACTICS TRANSPORTATION VAN PURCHASE FROM SHOWCASE AUTO SALES, INC., OF MODESTO
========================================================================

WHEREAS, the Lodi Police Department was allotted the purchase of a Mobile Field Force (MFF) and Special Weapons and Tactics (SWAT) transportation van through the normal fiscal year 2022/23 budgeting process; and

WHEREAS, the van was requested to meet the need to transport MFF and SWAT team members to deployments and training activities; and

WHEREAS, there was a need for the City Manager to approve the purchase before the matter could be scheduled for Council approval; and

WHEREAS, staff recommends that Council ratify the City Manager’s approval of the Mobile Field Force and Special Weapons and Tactics transportation van purchase from Showcase Auto Sales, Inc. of Modesto, CA in the amount of $60,000.

NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby ratify the City Manager’s approval of the purchase of a Mobile Field Force and Special Weapons and Tactics transportation van from Showcase Auto Sales, Inc., of Modesto, California, in the amount of $60,000.

Date: December 7, 2022
========================================================================

I hereby certify that Resolution No. 2022-____ was passed and adopted by the Lodi City Council in a regular meeting held December 7, 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-04

COUNCIL COMMUNICATION

APPROVED
: ________________________________
Stephen Schwabauer, City Manager
AGENDA TITLE: Adopt Resolution Ratifying the Purchase of 14 Pad-mount Transformers from Anixt er Incorporated of Benicia, Ca. ($693,295.79)
MEETI
NG DATE: December 7, 2022
PRE
PARED BY: Electric Utility Director
RECOMMENDED ACTION: Adopt resolution ratifying the purchase of 14 Pad-mount Transformers from Anixter Incorporated of Benicia, Cali. ($693,295.79)

BACKGRO
UND INFORMATION: The Electric Utility requested bids to purchase 14 pad-mount transformers from multiple vendors in order to refill inventory for future commercial developments. After only receiving one responsive bid from Anixter Incorporated, the electric utility is requesting council ratify the purchase of 14 pad-mount transformers at the quantities and prices shown below.

The City Manager authorized this purchase action in order to ensure equipment lead times did not negatively impact construction schedules or system reliability.

Description Qty. Supplier Amount ($)
75 kVA 3-phase 208/120V 1 Anixter 26,672.80
150 kVA 3-phase 208/120V 6 Anixter 238,977.03
300 kVA 3-phase 208/120V 4 Anixter 231,724.28
500 kVA 3-phase 208/120V 3 Anixter 195,921.68
FIS
CAL IMPACT: Procurement cost is $693,295.79.

FUNDI
NG AVAILABLE: Included in FY2022/23 Budget Account No. 500.13496. _______________________________________
Andrew Keys
Deputy City Manager/Internal Services Director
__________
______________________________
Jeff Berkheimer
Electric Utility Director
PREPARED BY: Tim Combs, Electric Utility Superintendent/NB RESOLUTION NO 2022-____

A RESOLUTION OF THE LODI CITY COUNCIL RATIFYING THE PURCHASE OF 14 PAD-MOUNT TRANSFORMERS FROM ANIXTER, INC., OF BENICIA ========================================================================

WHEREAS, the Lodi Electric Utility ( LEU) requested bids to purchase 14 pad- mount transformers from multiple vendors in order to refill inventory for future commercial developments; and

WHEREAS, the bid resulted in one responsive bid received from Anixter, Inc., of Benicia, California; and

WHEREAS, said bid was checked and tabulated and a report thereof filed with the City Manager as follows:

WHEREAS, staff reviewed the proposal and deemed that Anixter is compliant with the approved specifications for the pad-mount transformers.

NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby ratify the purchase of 14 pad-mount transformers from Anixter, Inc., of Benicia, California, in the amount of $693,295.79.

Dated: December 7, 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 on December 7, 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-05

COUNCIL COMMUNICATION
APPROVED: ________________________________
St ephen Schwabauer, City Manager
\\CVCFILV02\PubWks$\WP\PROJECTS\PARKS\Salas\Parking Lot Improvements\CPSA.docx 11/11/2022
AGENDA TITLE: Approve Plans and Specifications and Authorize Advertisement for Bids for Salas Park Parking Lot Improvements
MEETI
NG DATE: December 7, 2022
PREP
ARED BY: Public Works Director
RECOM
MENDED ACTION: Approve plans and specifications and authorize advertisement for bids for Salas Park Parking Lot Improvements.

BAC
KGROUND INFORMATION: The Salas Park parking lot was originally constructed in 1984 and included 182 parking stalls. The project also included seven post top area lights along the west side of the parking lot and two double-sided street lights along Stockton Street. In 2013 the City modified the parking lot to create six accessible parking stalls, which reduced the total number of stalls to 179.

Sinc
e its original construction nearly 40 years ago, the parking lot’s pavement has slowly deteriorated and numerous sections of curb have been broken and/or removed (see Exhibit A). The three driveways off Stockton Street are not ADA compliant, and the lighting within the parking lot is not adequate.

This
project will install new curbing, pavement, parking lot lighting, and ADA compliant driveway approaches along Stockton Street. Additionally, this project will convert the existing 13 post top lights to brighter and more energy efficient LED lights. The existing accessible parking stalls will remain, however the striping will be redone with the rest of the parking lot. In order to install the appropriate parking lot lighting, two trees will need to be removed from the middle of the parking lot (see Exhibit A).

The
specifications are on file in the Public Works Department. The planned bid opening date is January 11, 2023, with construction anticipated starting June 20 th (to accommodate the BOBS sports schedule). The project estimate is $1,100,000.

FIS
CAL IMPACT: The project will have minimal long-term maintenance cost savings.

FUNDING
AVAILABLE: Funding will be identified at project award. ________________________________________
Charl es E. Swimley, Jr.

Public Works Director
Prepar
ed by Sean Nathan, Senior Civil Engineer
CES/SN/cd
Exhibit A

Trees Being Removed

AGENDA ITEM C-06

COUNCIL COMMUNICATION

APPROVED
: _________________________________
Stephen Schwabauer, City Manager
\\CVCFILV02\PubWks$\WP\PROJECTS\STREETS\2021 Turner and Century Resurfacing Project\CSA.doc 11/17/2022 AGENDA TITLE: Approve Plans and Specifications and Authorize Advertisement for Bids for Turner and Century Resurfacing Project
MEETI
NG DATE: December 7, 2022
PREP
ARED BY: Public Works Director
RECOM
MENDED ACTION: Approve plans and specifications and authorize advertisement for bids for Turner and Century Resurfacing Project.

BAC
KGROUND INFORMATION: This project includes localized pavement repair, the application of approximately 16,000 square yards of rubberized asphalt cape seal and fiberized slurry seal. The project limits will include Turner Road (from Stockton Street to the Highway 99) and Century Boulevard (from Ham Lane to WID Canal), as shown on Exhibit A.

The r
ubberized asphalt cape seal is a combination of a rubberized chip seal comprising the bottom layer followed with an upper layer of fiberized slurry seal (slurry seal with strands of glass fiber added). The rubberized cape seal with fiberized slurry will be applied to all streets within the project limits.

Whi
le the asphalt overlay is superior in ride quality, these pavement rehabilitation alternatives are expected to extend the life of deteriorated roads by around one-half of that of an overlay, at approximately one-third of the cost.

The
specifications are on file in the Public Works Department. The planned bid opening date is January 18, 2023. The contract estimate is $895,000.

FIS
CAL IMPACT: By investing in the recommended maintenance project, significant capital dollars will be saved by extending the useful life of the pavement and foregoing more costly pavement reconstruction

FUNDING A
VAILABLE: Funding will be identified at project award. A portion of the project funding will come from the Federal Transportation Improvement Program. _____________________________
Cha
rles E. Swimley, Jr.

Public Works Director
Prepared by Alice Bernardino, Associate Civil Engineer
CES/AB/cd
Attachment
cc: Ut
ility Manager
Mills Av.

Kettlema
n Ln.

Lockeford S
t.

Hutchins St.

Guild Av.

Cent
ur
y
Blvd.

Vine St.

Church St.

Pine St.

Cherokee Ln.

Stockton St.

Ham Ln.

Lodi Av.

Turner Rd.
μ
00 .510.25
Miles
Turner and Century Resurfacing Project
Project Location Map
Legend
Project Locations
AGENDA ITEM C-07

COUNCIL COMMUNICATION
APPROVED: ________________________________
St ephen Schwabauer, City Manager
\\CVCFILV02\PubWks$\WP\PROJECTS\STREETS\Garfield ADA Improvements\CAccept.docx 11/10/2022 AGENDA TITLE: Accept Improvements Under Contract for Garfield Street Safe Routes to School MEETING DATE: December 7, 2022
PREPARED BY: Public Works Director
RECOMMENDED ACTION: Accept improvements under contract for Garfield Street Safe Routes to School.

BACKGROUND INFORMATION: In September of 2020 the City applied for the Regional Active Transportation Program (ATP) Cycle 5 State Grant for this project.

The project was awarded the grant in the amount of $705,000.

On January 5, 2022 the City Council authorize the City Manager to execute the agreement with the San Joaquin County Council of Governments (SJCOG) allocating the funding.

The
project is located on Garfield Street from Harold Street to Poplar Street. The project consists of installing missing sidewalk at various locations along the corridor, constructing 20 accessible curb ramps, accessible alley approaches, and other incidental and related work.

The contract was awarded to TBS Contractors, of Merced on July 20, 2022 in the amount of $554,666.50.

All work was completed in substantial conformance with the plans and specifications approved by City Council and prior to the contract completion date. The final contract amount was $580,534.90. The difference between the original contract amount and the final amount is for additional concrete and paving work requested by the City. See Exhibit A for project photos.

Following acceptance by the City Council, as required by law, the City Engineer will file a Notice of Completion with the County Recorder’s office. The notice serves to notify vendors and subcontractors that the project is complete and begins their 30-day period to file a stop notice requiring the City to withhold payments from the prime contractor in the event of a payment dispute.

FISCAL IMPACT: The project will have a minimal impact on total maintenance costs.

FUNDING
AVAILABLE: This project was funded by Measure K and a State grant. ________________________________________
Charl es E. Swimley, Jr.

Public Works Director
Prepar
ed by Sean Nathan, Senior Civil Engineer
CES/SN/cd
Attachments
Exhibit A
Before & After Photos
NWC
of Garfield and Poplar

930 South Garfield Street

Garfield and Maple

East Side of Garfield and Harold

AGENDA ITEM C-08

COUNCIL COMMUNICATION
APPROVED: ___________________________________
Stephen Schwabauer, City Manager
\\cvcfil
v02\pubwks$\WP\DEV_SERV\Developments\Lodi Southwest Gateway\Gateway South\UNIT 2\Improvement Agreement\CAccept_GWS2.doc 11/16/2022 AGENDA TITLE: Adopt Resolution Accepting Gateway South Subdivision, Unit No. 2, Tract No. 3942, Public Improvements, Amending Traffic Resolution No. 97-148 by Approving Stop Controls on Mahogany Drive at Lower Sacramento Road and Blossom Drive, Two-Way Stop Control on Lyndon Street at Mahogany Drive, and Stop Controls on Oleander Drive at Blossom Drive and Elan Street
MEETI
NG DATE: December 7, 2022
PREP
ARED BY: Public Works Director
RECOM
MENDED ACTION: Adopt resolution accepting Gateway South Subdivision, Unit No. 2, Tract No. 3942, public improvements, amending Traffic Resolution No. 97-148 by Approving Stop Controls on Mahogany Drive at Lower Sacramento Road and Blossom Drive, Two-Way Stop Control on Lyndon Street at Mahogany Drive, and Stop Controls on Oleander Drive at Blossom Drive and Elan Street.

BAC
KGROUND INFORMATION: Gateway South Subdivision, Unit No. 2, is the second phase of a multi- phase residential development located west of Lower Sacramento Road and south of Century Boulevard, as shown on Exhibit A. Unit No. 2 consists of 135 single-family, residential lots and the project includes the installation of portions of Lower Sacramento Road, portions of Harney Lane, and all interior subdivision public improvements.

The Dev
eloper, KDK Land Company (Developer), has completed, under the terms of an improvement agreement, all public improvements and provided the warranty security for the improvements apart from those shown on Attachment A (Transferred Improvements). Due to some delayed work from the utility companies, the Developer is not able to complete the Transferred Improvements prior to the expiration of the Unit No. 2 improvement agreement. The Developer has agreed to complete the Transferred Improvements under the terms of the Improvement Agreement for the Public Improvements of Gateway South Unit No. 3, Tract No. 4079 which is also under the Developer’s obligation. The Transferred Improvements are expected to be completed with the Unit 3 improvements by the end of April 2023.

Sta
ff recommends accepting Gateway South Subdivision, Unit No. 2, Tract No. 3942, Public Improvements.

Staff also recommends amending Traffic Resolution No. 97-148 by approving stop controls on Mahogany Drive at Lower Sacramento Road and Blossom Drive, two-way stop control on Lyndon Street at Mahogany Drive, and stop controls on Oleander Drive at Blossom Drive and Elan Street.

FIS
CAL IMPACT: There will be an increase in long-term maintenance costs for public infrastructure and City services such as police, fire, and parks, and open space maintenance. This cost will be partially offset by proceeds from the Community Facilities District No. 2007-1.

Adopt Resolution Accepting Gateway South Subdivision, Unit No. 2, Tract No. 3942, Public Improvements, Amending Traffic Resolution No. 97- 148 by Approving Stop Controls on Mahogany Drive at Lower Sacramento Road and Blossom Drive, Two-Way Stop Control on Lyndon Street at Mahogany Drive, and Stop Controls on Oleander Drive at Blossom Drive and Elan Street
December 7, 2022

Page 2 ends

\\cvcfilv02\pubwks$\WP\DEV_SERV\Developments\Lodi Southwest Gateway\Gateway South\UNIT 2\Improvement Agreement\CAccept_GWS2.doc 11/16/2022

FUNDING AVAILABLE: Not applicable.

_______________________________
Charles E. Swimley, Jr.

Public Works Director

Prepared by Karissa Kiriu, Associate Civil Engineer
CES/KK/cdb
Attachments

cc: City Attorney, Magdich Public Works Management Analyst A ssociate Civil Engineer, Kiriu K DK Land Company
Junior Engineer, Wiman MCR Engineering
Villa Fiore
Neighborhood
Park
DeBenedetti
Park
Daffodil
Dr.

Larkspur Ln.

Tehama
Dr.

Tulip
Wy.

Petal
Wy.

Pinkerton
Wy
LynchWy
Westgate
Dr.

Katzakian
Wy
Olson Dr
Pollock
Wy.

Botticelli
Wy.

Hibiscus Wy.

Berlanda
Ln.

Extension
Rd.

Lower Sacramento Rd.

RoualtWy.

Giannoni Wy
Bellows Wy.

Fuchsia Dr.

Vintage Oaks Ct
Zinnia Wy.

Carnation Wy.

Springer Ln.

Raphael Wy.

Blossom Wy.

VanRuiten
Dr.

Cammie Ln.

Century Blvd.

Harney Ln.

Hartley Ln.Tehama Dr.

Kristen Ct.

G a t e w a y S o u t h U n it 2 P r o je c t B o u n d a r y µ

EXHIBIT A
GATEWAY SOUTH SUBDIVISION, UNIT 2

LOCATION MAP

0.1 Miles

When Recorded Please Return to:

Lodi City Clerk
P.O. Box 3006
Lodi, CA 95241-1910

RESOLUTION NO. 2022-____

A RESOLUTION OF THE LODI CITY COUNCIL ACCEPTING GATEWAY SOUTH SUBDIVISION, UNIT NO. 2, TRACT NO. 3942, PUBLIC IMPROVEMENTS; AMENDING TRAFFIC RESOLUTION NO. 97-148 BY APPROVING STOP

CONTROLS ON MAHOGANY DRIVE AT LOWER SACRAMENTO ROAD AND

BLOSSOM DRIVE, TWO-WAY STOP CONTROL ON LYNDON STREET AT

MAHOGANY DRIVE, AND STOP CONTROLS ON OLEANDER DRIVE AT

BLOSSOM DRIVE AND ELAN STREET
========================================================================

WHEREAS, Gateway South Subdivision, Unit No. 2, is the second phase of a multi - phase residential development located west of Lower Sacramento Road and south of Century Boulevard; and

WHEREAS, Unit No. 2 consists of 135 single -family residential lots and the project includes the installation of portions of Lower Sacramento Road, portions of Harney Lane, and all interior subdivision public improvements; and

WHEREAS, the Developer, KDK Land Company (Developer), has completed, under the terms of an improvement agreement, all public improvements and provided the warranty security for the improvements apart from those shown on Attachment A (Transferred Improvements); and

WHEREAS, due to delayed work from the utility companies, the Developer is not able to complete the Transferred Improvem ents prior to the expiration of the Unit No. 2 I mprovement Agreement; and

WHEREAS, Developer has agreed to complete the Transferred Improvements under the terms of the Improvement Agreement for the Public Improvements of Gateway South Unit No. 3, Tract N o. 4079, which is also under the Developer’s obligation and are expected to be completed with the Unit 3 improvements by the end of April 2023; and

WHEREAS, staff recommends accepting Gateway South Subdivision, Unit No. 2, Tract No. 3942, Public Improvements; and

WHEREAS, staff further recommends amending Traffic Resolution No. 97- 148 by approving stop controls on Mahogany Drive at Lower Sacramento Road and Blossom Drive, two-way stop control on Lyndon Street at Mahogany Drive, and stop controls on Oleander Drive at Blossom Drive and Elan Street.

NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby accept Gateway South Subdivision, Unit No. 2, Tract No. 3942, Public Improvements; and

BE IT FURTHER RESOLVED that the Lodi City Council does hereby amend Traffic Resolution No. 97 -148 by approving stop controls on Mahogany Drive at Lower Sacramento Road and Blossom Drive, two- way stop control on Lyndon Street at Mahogany Drive, and stop controls on Oleander Drive at Blossom Drive and Elan Street; and

BE IT FURTHER RESOLVED , pursuant to Section 6.3q of the City Council Protocol Manual (Res. 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: December 7, 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 December 7, 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

BACKGROUND INFORMATION: Gateway South Subdivision, Unit No. 3, is the third phase of a multi-phase residential development located west of Lower Sacramento Road and south of Century Boulevard, as shown on Exhibit A. Unit No. 3 consists of 48 single-family, residential lots.

The Developer, KDK Land Company (Developer), has executed an improvement agreement and an addendum to the improvement agreement to complete the public improvements of the Gateway South Unit No. 3 Subdivision.

KDK Land Company is also the developer of the Gateway South Unit No. 2 Subdivision and has completed all Unit No. 2 public improvements apart from those shown on Attachment A (transferred improvements). Due to constructability issues, the Developer desires to complete the transferred improvements under the terms of the improvement agreement for Gateway South Unit No. 3, Tract No. 4079. All the public improvements are expected to be completed by the end of April 2023.

The Developer has furnished the City with the necessary agreements, guarantees, insurance certificates, and the required fees for the proposed Addendum No. 2. The terms of the improvement agreement remain unchanged except as stated in this addendum.

Staff recommends authorizing City Manager to execute Improvement Agreement Addendum No. 2 for Gateway South Subdivision, Unit No. 3, Tract No. 4079.

FISCAL IMPACT: Not applicable.

FUNDING AVAILABLE: Not applicable.
_______________________________
Cha
rles E. Swimley, Jr.

Public Works Director
Prepar
ed by Karissa Kiriu, Associate Civil Engineer
CES/KK/cdb
Attachments
cc: City Attorney, Magdich Public Works Management Analyst Associate Civil Engineer, Kiriu K DK Land Company
Junior Engineer, Wiman MCR Engineering
Villa
Fiore Park
Villa Fiore
Neighborhood Park
DeBenedetti
Park
Vintage
Oaks Ct
Century Blvd.

Fuchsia Dr.

Hibiscus
Wy.

Carnation Wy.

Cammie Ln.

Blossom Dr.

Van Ruiten Dr.

Lower Sacramento Rd.

EXHIBIT A
GATEWAY SOUTH UNIT NO. 3

PROJECT LOCATION

0.04 Miles
UNIT NO. 3
UNIT NO. 2

NEIGHBORHOOD PARK
Name: Exhibit Map

K:\WP\DEV_SERV\Developments\Lodi Southwest Gateway\Gateway South\UNIT 3\Improvement Agreement\ImpAgmt Addendum 02_GWS3.doc 1 11/14/22
WHEN RECORDED, RETURN TO:

City Clerk
City of Lodi
221 West Pine Street
Lodi, CA 95240

ADDENDUM NO. 2
TO THE

IMPROVEMENT AGREEMENT
for the

PUBLIC IMPROVEMENTS
of
GATEWAY SOUTH UNIT NO.3
TRACT NO. 4079

THIS ADDENDUM NO. 2 is made and enter ed into by and between the CITY OF LODI, a California municipal corporation, hereinafter referred to as "City", KDK LAND COMPANY, a California corporation, hereinafter referred to as "Developer", and DSS COMPANY, a California corporation, dba KNIFE RIVER CONSTRUCTION, hereinafter referred to as “Developer’s Contractor.”

RECITALS:

Developer, Developer’s Contractor, and City entered into the Improvement Agreement of Gateway South Unit 3 Tract No. 4079 (AGREEMENT) dated September 2, 2021 and Addendum No. 1 to the AGREEMENT (ADDENDUM NO. 1) on September 27, 2022 (collectively attached as EXHIBIT A and made a part hereof).

Developer is the developer of a portion of that certain real property situated in the City of Lodi, County of San Joaquin, commonly known as Resultant Parcel B from Lot Line Adjustment 2021.339443 and more particularly described in Exhibit A and depicted in Exhibit B to the AGREEMENT.

Developer is responsible for construction and completion of public improvements, including all streets, highways or public ways , and public utilities and f acilities which are a part of, or appurtenant to, the Gateway South, Unit 3 Subdivision, and, in accordance with this ADDENDUM NO. 2, the TRANSFERRED IMPROVEMENTS (defined below) transferred from the Gateway South, Unit 2 Subdivision, collectively hereinafter called “Project”, all in accordance with, and as required by, the plans and specifications for all or any of said improvements in, appurtenant to, or outside the limits of Project, which plans and specifications are now on file in the office of and endorsed with the approval of the Public Works Director or designee (Public Improvements).

Developer’s Contractor is made a party to this ADDENDUM NO. 2 solely to secure a portion of the Insurance referred to in paragraph 15 of the AGREEMENT. Developer’s Contractor has no other obligations under this ADDENDUM NO. 2.

Developer, Developer’s Contractor, and City also entered into the Improvement Agreement of Gateway South Unit 2 Tract No. 3942 dated June 10, 2021 and Addendum No. 1 on September 20, 2022 ( collectively UNIT 2 AGREEMENT) (attached hereto as EXHIBIT B and made a part hereof).

Developer desires to have the City accept the public improvements and dedications specified under the UNIT 2 AGREEMENT, excluding the public improvements as shown on ATTACHMENT A of this ADDENDUM NO. 2, and also depicted on the public improvement plan set designated as D197 which is on file in the Public Works Department (TRANSFERRED IMPROVEMENTS). The TRANSFERRED IMPROV EMENTS will be transferred as an obligation of Developer when constructing Gateway South, Unit 3, instead of being an obligation when constructing Gateway South, Unit 2. Developer agrees to complete the TRANSFERRED IMPROVEMENTS under the terms of EXHIBIT A.

K:\WP\DEV_SERV\Developments\Lodi Southwest Gateway\Gateway South\UNIT 3\Improvement Agreement\ImpAgmt Addendum 02_GWS3.doc 2 11/14/22
NOW THEREFORE, for and in consideration of the acceptance of the dedications offered, and in order to insure satisfactory performance by Developer of Developer's obligations under State law and City Code, the parties agree as follows:

1. This document is an addendum to EXHIBIT A.

2. The terms of EXHIBIT A remain unchanged except as stated in this ADDENDUM NO. 2.

3. Developer agrees to complete the Public Improvements for Gateway South Unit No. 3 and the TRANSFERRED IMPROVEMENTS transferred from Gateway South Unit No. 2 and dedicate all required easements in which the improvements ar e situated no later than April 30, 2023.

4. Developer and Developer’s Contractor agree to maintain the securities and insurance requirements as stated in EXHIBIT A for the term of this ADDENDUM NO. 2. Developer and Developer’s Contractor agree that the securities and insurance stated in EXHIBIT A shall include the work to complete the TRANSFERRED IMPROVEMENTS for the terms of this ADDENDUM NO. 2.

5. Prior to the approval of this ADDENDUM NO. 2 by the City, it is agreed that the Developer shall deposit with the City the amount of money shown as the "Developer Cost" on the Billing Schedule, attached hereto as EXHIBIT C, and by this reference made a part hereof as though fully set forth.

6. This ADDENDUM NO. 2 shall run with the land and be binding on the Developer and Developer’s Contractor, their heirs, successors and assigns.

7. A copy of this ADDENDU M NO. 2 shall be recorded in the office of the San Joaquin County Records, P. O. Box 1968, Stockton, California 95201-1968.

8. Notices.

All notices herein required shall be in writing, signed by the authorized representative of the sender and shall be deemed to have been given when the same is personally served or upon receipt by express or overnight delivery, postage prepaid, or three (3) days from the time of mailing if sent by first class or certified mail, postage prepaid, addressed to the respective parties.

Notices required to be given to City shall be addressed as follows:

Charles E. Swimley, Jr.

Public Works Director
City of Lodi
221 West Pine Street
P. O. Box 3006
Lodi, CA 95241-1910

Notices required to be given to Developer shall be addressed as follows:

Tom Doucette
President
KDK Land Company
10100 Trinity Parkway, Suite 420
Stockton, CA 95219

Notices required to be given to Developer’s Contractor shall be addressed as follows:

DSS Company dba Knife River Construction
655 West Clay Street
Stockton, CA 95206-1722

BILLING SCHEDULE EXHIBIT C
Development: Gateway South Unit No. 3
Developer: KDK Land Company
Engineer: MCR Engineering
Date: 10/26/22

DEVELOPER

COST CREDITS

ENGINEERING
Improvement Agreement Addenda ENGFEE $971.00 $0.00
ENGINEERING SUBTOTAL $971.00 $0.00
TOTAL AMOUNT OF BILLING SCHEDULE $971.00 $0.00
TOTAL DUE PRIOR TO IMPROVEMENT AGREEMENT ADDENDA APPROVAL $971.00 1 When Recorded Please Return to:

Lodi City Clerk
P.O. Box 3006
Lodi, CA 95241-1910

RESOLUTION NO. 2022-____

A RESOLUTION OF THE LODI CITY COUNCIL AUTHORIZING THE

CITY MANAGER TO EXECUTE IMPROVEMENT AGREEMENT ADDENDUM
NO. 2 FOR GATEWAY SOUTH SUBDIVISION, UNIT NO. 3, TRACT NO. 4079 ========================================================================

WHEREAS, Gateway South Subdivision, Unit No. 3, is the third phase of a multi -phase residential development located west of Lower Sacramento Road and south of Century Boulevard and consists of 48 single-family residential lots; and

WHEREAS, the Developer, KDK Land Company (Developer), has executed an Improvement A greement and an addendum to the Improvement Agreement to complete the public improvements of the Gateway South Unit No. 3 Subdivision; and

WHEREAS, KDK Land Company is also the developer of the Gateway South Unit No. 2 Subdivision and has completed all Unit No. 2 public improvements apart from those shown on Attachment A (Transferred Improvements); and

WHEREAS, due to constructability issues, the Developer desires to complete the transferred improvements under the terms of the Improvement A greement for Gateway South, Unit No. 3, Tract No. 4079, which are expected to be completed by the end of April 2023; and

WHEREAS, Developer has furnished the City with the necessary agreem ents, guarantees, insurance certificates, and the required fees for the proposed Addendum No. 2.

The terms of the Improvement A greement remain unchanged except as stated in the addendum; and

WHEREAS, staff recommends authorizing the City Manager to execute Improvement Agreement Addendum No. 2 for Gateway South Subdivision, Unit No. 3, Tract No. 4079.

NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby authorize the City Manager to execute Improvement Agreement Addendum No. 2 for Gateway South Subdivision, Unit No. 3, Tract No. 4079; and

Dated: December 7, 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 December 7, 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
APPROVED: _________________________________
Stephen Schwabauer, City Manager
K:\WP\PROJECTS\STREETS\Turner_SR99 interchange improvements\SR99_Turner_2_17_2021agreement.doc 11/16/2022 AGENDA TITLE: Adopt Resolution Authorizing City Manager to Execute Landscape Maintenance Agreement with State of California for State Route 99/Turner Road Interchange Improvements
MEETING DATE: December 7, 2022
PREPARED BY: Public Works Director
RECOMMENDED ACTION: Adopt resolution authorizing City Manager to execute Landscape Maintenance Agreement with State of California for State Route 99/Turner Road Interchange Improvements.

BACKGROUND INFORMATION: Since 2018, San Joaquin County of Governments, in partnership with California Department of Transportation (Caltrans), the City of Lodi, and the design consultant, Drake Haglan & Associates, Inc. have collaborated to prepare the necessary environmental clearance and design documents for constructing the State Route 99 (SR99)/Turner Road Interchange Improvements.

The project improvements include the construction of a round-a-bout located near the southerly end of the southbound Turner Road freeway off-ramp, widening Cherokee Lane (currently a one-way southbound roadway segment) into a two-way facility between Pioneer Drive and Turner Road, including Class II bike lanes in both directions and sidewalk on the westerly side of the roadway. The project also includes lengthening the SR99/Turner Road Southbound on-ramp by 400 feet to provide longer acceleration distance to merge with mainline traffic (Exhibit A).

On October 19, 2022, Council awarded the project to O.C. Jones & Sons, Inc., in the amount of $5,890,183.

While the initial phases of work are scheduled to begin early next year, the landscape maintenance obligations will not be implemented until the project is completed and the project warranty period has expired.

As a condition of project approval, Caltrans is requiring the City of Lodi to enter into a Landscape Maintenance Agreement with the State of California. The Landscape Maintenance Agreement addresses City responsibility for maintaining the roundabout island, median islands, sidewalk/bike path, accessible curb ramps, landscaping and irrigations system(s) and other related maintenance elements. Landscape maintenance agreements are a standard requirement for City sponsored projects on State right of way.

FISCAL IMPACT: Not applicable.

FUNDING AVAILABLE: Not applicable.
_______________________________
Cha
rles E. Swimley, Jr.

Public Works Director
CES/CES/cd
Attachment

RESOLUTION NO. 2022-____

A RESOLUTION OF THE LODI CITY COUNCIL AUTHORIZING THE

CITY MANAGER TO EXECUTE A LANDSCAPE MAINTENANCE AGREEMENT WITH STATE OF CALIFORNIA FOR THE STATE ROUTE 99/TURNER ROAD

INTERCHANGE IMPROVEMENTS
========================================================================

WHEREAS, since 2018, San Joaquin Council of Governments, in partnership with California Department of Transportation (Caltrans), the City of Lodi, and the design consultant, Drake Haglan & Associates, Inc. , have collaborated to prepare the necessary environmental clearance and design documents for constructing the State Route 99 (SR99)/Turner Road Interchange Improvements; and

WHEREAS, the project improvements include the construction of a roundabout located near the southerly end of the southbound Turner Road freeway off -ramp, widening Cherokee Lane into a two- way facility between Pioneer Drive and Turner Road, including Class II bike lanes in both directions, and sidewalk on the westerly side of the roadway; and

WHEREAS, on October 19, 2022, Council awarded the project to O.C. Jones & Sons, Inc., in the amount of $5,890,183; and

WHEREAS, as a condition of project approval, Caltrans is requiring the City of Lodi to enter into a Landscape Maintenance Agreement with the State of California; and

WHEREAS, staff recommends authorizing the City Manager to execute a Landscape Maintenance Agreement with the State of California for the State Route 99/Turner Road Interchange Improvements.

NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby authorize the City Manager to execute a Landscape Maintenance Agreement with the State of California for the State Route 99/Turner Road Interchange Improvements; and

Dated: December 7, 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 December 7, 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
\\pwadc02\msc$\GROUP\ADMIN\Council\2022\12072022\WGR\CC WGR_TW.doc 11/17/2022 AGENDA TITLE: Adopt Resolution Authorizing City Manager to Execute 2-Year Professional Services Agreement with WGR Southwest, Inc., of Los Alamitos, for Stormwater Support Services ($182,320)
MEETING DATE: December 7, 2022
PREPARED BY: Public Works Director
RECOMMENDED ACTION: Adopt resolution authorizing City Manager to execute 2-Year Professional Services Agreement with WGR Southwest, Inc., of Los Alamitos, for stormwater support services, in the amount of $182,320.

BACKGROUND INFORMATION: Stormwater discharges from the City of Lodi are regulated under the State Water Resources Control Board, National Pollutant Discharge Elimination System (NPDES) General Permit. The General Permit, known as the Municipal Separate Storm Sewer Systems (MS4), became effective in 2013 and was designed to have increasing levels of regulatory requirements implemented annually over a five-year term.

Since 2012, the City has contracted with WGR Southwest, Inc. (WGR), to provide technical and environmental services required to remain compliant with the NPDES General Permit conditions. Although the NPDES General Permit expired on June 30, 2018, the City is required to maintain its current permit compliance programs until a new permit is adopted by the State. Based on discussions and workshops with the State Water Resources Control Board, it is estimated that a new or renewed Phase II MS4 Permit could be released during 2024.

Staff recommends authorizing City Manager to execute 2-Year Professional Services Agreement with WGR Southwest, Inc., of Los Alamitos, for stormwater support services, in the amount of $182,320.

FISCAL IMPACT: These services are necessary to meet regulatory compliance. Failure to comply may result in additional monitoring fees or violations that could result in monetary fines. This project does not impact the General Fund.

FUNDING AVAILABLE: Wastewater Fund 53053005.72450 - $182,320 ______________________________________
A
ndrew Keys
Deputy City Manager/Internal Services Director
_______________________________
C
harles E. Swimley, Jr.

Public Works Director
Prepared by Tosha Wiman, Compliance Manager
CES/TW
Attachment

RESOLUTION NO. 2022-____

A RESOLUTION OF THE LODI CITY COUNCIL AUTHORIZING

THE CITY MANAGER TO EXECUTE A PROFESSIONAL
SERVICES AGREEMENT WITH WGR SOUTHWEST, INC., OF

LOS ALAMITOS, FOR STORMWATER SUPPORT SERVICES
========================================================================

WHEREAS, stormwater discharges from the City of Lodi are regulated under the State Water Resources Control Board National Pollutant Discharge Elimination System General Permit; and

WHEREAS, the Professional Services Agree ment includes the inspection, monitoring, and reporting tasks required to maintain the State- required stormwater permit compliance programs; and

WHEREAS, staff recommends the City Council authorize the City Manager to execute a Professional Services Agreement with WGR Southwest, Inc., of Los Alamitos, for Stormwater Support Services, in the amount of $182,320.

NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby authorize the City Manager to execute a Professional Services Agreement wit h WGR Southwest, Inc., of Los Alamitos, California, for Stormwater Support Services, in the amount of $182,320; and

BE IT FURTHER RESOLVED, pursuant to Section 6.3q of the City Council Protocol Manual (Res. 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: December 7, 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 December 7, 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-12

COUNCIL COMMUNICATION
APPROVED: ________________________________
Stephen Schwabauer, City Manager
AGENDA TITLE: Adopt a Resolution Authorizing the City Manager to Execute Professional Services Agreement with Mintier Harnish, LP , a California Limited Partnership, for the Preparation of the Housing Element Update in an Amount not to Exceed $500,000 and request appropriations for $500,000 MEETING DATE: December 7, 2022
PREPARED BY: Community Development Director
RECOMMENDED ACTION: Adopt a resolution authorizing the City Manager to execute Professional Services Agreement with Mintier Harnish, LP , a California Limited Partnership, for the preparation of the Housing Element Update in an amount not to exceed
$500,000 and request appropriations for $500,000.

BACKGROUND INFORMATION: The Lodi Housing Element is part of the City’s General Plan, which is a comprehensive policy statement regarding the physical, economic, and social development of the city.

Housing represents a high priority, planning for housing must be balanced with the community’s economic and environmental needs, resources, and open space protection policies, which are also essential aspects of the City's General Plan. Whereas general plans often reflect planning periods 15-25 years long, housing elements are updated every five to eight years, in accordance with State law.

The San Joaquin Council of Governments has completed the Regional Housing Needs Assessment, which is the precursor for state -mandated updates of all Housing Elements. The new assessment provides the framework necessary to proceed with a new Housing Element for the General Plan Update.

Request for Proposals was released on August 5, 2022. Staff received three proposals, as the costs were higher than what had been anticipated, interviews with each proposer was scheduled.

At the interviews we discussed ways to streamline some processes and asked each proposer to come back with a revised scope and budget for evaluation. The following proposals were received for consideration:

Consultant Total Cost
Mintier Harnish, LP 488,334 $
Dyet & Bhatia 496,840 $
Michael Baker International 564,375 $
Housing Element Update PSA – Mintier Harnish, LP
December 7, 2022

Page 2 of 2 ends

After evaluation of all proposals and with the information garnered from the interviews, Staff selected Mintier Harnish, LP as the top proposer.

Staff recommends the City Council adopt a resolution authorizing the City Manager to execute Professional Services Agreement with Mintier Harnish, LP , a California Limited Partnership, for the preparation of the Housing Element Update in an amount not to exceed $500,000 and request appropriations for $500,000.

FISCAL IMPACT: The total cost of the contract is a not to exceed amount of $500,000.

While currently the re is sufficient funding available in the Community Development Department special reserve account, Staff anticipate there will be grant opportunities to help offset some of the cost, such as Regional Early Action Plan (REAP) grant Round 1 funds once an amendment is completed and potentially REAP grant Round 2 if awarded.

FUNDING AVAILABLE: 27082000.72450

______________________________________
Andrew Keys
Deputy City Manager/Internal Services Director

_______________________________
John R. Della Monica, Jr.

Community Development Director

JRDM/JR/kjc/lw

Attachment:

Mintier Harnish, LP Professional Services Agreement
1 AGREEMENT FOR PROFESSIONAL SERVICES

ARTICLE 1

PARTIES AND PURPOSE

Section 1.1 Parties
THIS AGREEMENT is entered into on ______________, 2022, by and between the CITY OF LODI, a municipal corporation (hereinafter “CITY”), and MINTIER HARNISH LP (hereinafter “CONTRACTOR”).

Section 1.2 Purpose
CITY selected the CONTRACTOR to provide the services required in accordance with attached Scope of Services, Exhibit A, attached and incorporated by this reference.

CITY wishes to enter i nto an agreement with CONTRACTOR for SIXTH CYCLE HOUSING ELEMENT UPDATE (hereinafter “Project”) as set forth in the Scope of Services attached here as Exhibit A. CONTRACTOR acknowledges that it is qualified to provide such services to CITY.

ARTICLE 2

SCOPE OF SERVICES

Section 2.1 Scope of Services
CONTRACTOR, for the benefit and at the direction of CITY, shall perform the Scope of Services as set forth in Exhibit A.

Section 2.2 Time For Commencement and Completion of Work CONTRACTOR shall commence work pursuant to this Agreement, upon receipt of a written notice to proceed from CITY or on the date set forth in Section 2.6, whichever occurs first, and shall perform all services diligently and complete work under this Agreement based on a mutually agreed upon timeline or as otherwise designated in the Scope of Services.

CONTRACTOR shall submit to CITY such reports, diagrams, drawings and other work products as may be designated in the Scope of Services.

CONTRACTOR shall not be responsible for delays caused by the failure of CITY staff to provide required data or review documents within the appropriate time frames.

The review time by CITY and any other agencies involved in the project shall not be counted against CONTRACTOR’s contract performance period. Also, any delays due to weather, vandalism, acts of God, etc., shall not be counted. CONTRACTOR shall 2 remain in contact with reviewing agencies and make all efforts to review and return all comments.

Section 2.3 Meetings
CONTRACTOR shall attend meetings as may be set forth in the Scope of Services.

Section 2.4 Staffing
CONTRACTOR acknowledges that CITY has relied on CONTRACTOR’s capabilities and on the qualifications of CONTRACTOR’s principals and staff as identified in its proposal to CI TY. The Scope of Services shall be performed by CONTRACTOR, unless agreed to otherwise by CITY in writing. CITY shall be notified by CONTRACTOR of any change of Project Manager and CITY is granted the right of approval of all original, additional and rep lacement personnel at CITY’s sole discretion and shall be notified by CONTRACTOR of any changes of CONTRACTOR’s project staff prior to any change.

CONTRACTOR represents it is prepared to and can perform all services within the Scope of Services (Exhibit A ) and is prepared to and can perform all services specified therein. CONTRACTOR represents that it has, or will have at the time this Agreement is executed, all licenses, permits, qualifications, insurance and approvals of whatsoever nature are legally required for CONTRACTOR to practice its profession, and that CONTRACTOR shall, at its own cost and expense, keep in effect during the life of this Agreement all such licenses, permits, qualifications, insurance and app rovals, and shall indemnify, defend and hold harmless CITY against any costs associated with such licenses, permits, qualifications, insurance and approvals which may be imposed against CITY under this Agreement.

Section 2.5 Subcontracts
Unless prior written approval of CITY is obtained, CONTRACTOR shall not enter into any subcontract with any other party for purposes of providing any work or services covered by this Agreement.

Section 2.6 Term
The term of this Agreement commences on November 16, 2022 and terminates upon the completion of the Scope of Services or on December 31 , 20 24, whichever occurs first.
3 ARTICLE 3

COMPENSATION

Section 3.1 Compensation
CONTRACTOR’s compensation for all work under this Agreement shall conform to the provisions of the Fee Proposal, attached hereto as Exhibit B and incorporated by this reference.

CONTRACTOR shall not undertake any work beyond the scope of this Agreement unless such additional work is approved in advance and in writing by CITY.

Section 3.2 Method of Payment
CONTRACTOR shall submit invoices for completed work on a monthly basis, or as otherwise agreed, providing, without limitation, details as to amount of hours, individual performing said work, hourly rate, and indicating to what aspect of the Scope of Services said work is attributable. CONTRACTOR’s compensation for all work under this Agreement shall not exceed the amount of the Fee Proposal.

Section 3.3 Costs
The Fee Proposal shall include all reimbursable costs required for the performance of the Scope of Services. Payment of additional reimbursable costs considered to be over and above those inherent in the original Scope of Services shall be approved in advanced and in writing, by CITY.

Section 3.4 Auditing
CITY reserves the right to periodically audit all charges made by CONTRACTOR to CITY for services under this Agreement. Upon request, CONTRACTOR agrees to furnish CITY, or a designated representative, with necessary information and assistance needed to conduct such an audit.

CONTRACTOR agrees that CITY or its delegate will have the right to review, obtain and copy all records pertaining to performance of this Agreement.

CONTRACTOR agrees to provide CITY or its delegate with any relevant information requested and shall permit CITY or its delegate access to its premises, upon reasonable notice, during normal business hours for the purpose of interviewing employees and inspecting and copying such books, records, accounts, and other material that may be relevant to a matter under investigation for the purpose of determining compliance with this requirement. CONTRACTOR further agrees to maintain such records for a period of three (3) years after final payment under this Agreement.

4 ARTICLE 4

MISCELLANEOUS PROVISIONS

Section 4.1 Nondiscrimination
In performing services under this Agreement, CONTRACTOR shall not discriminate in the employment of its employees or in the engagement of any sub CONTRACTOR on the basis of race, color, religion, sex, sexual orientation, marital status, national origin, ancestry, age, or any other criteria prohibited by law.

Section 4.2 ADA Compliance
In performing services under this Agreement, CONTRACTOR shall comply with the Americans with Disabilities Act (ADA) of 1990, and all amendments thereto, as well as all applicable regulations and guidelines issued pursuant to the ADA.

Section 4.3 Indemnification and Responsibility for Damage CONTRACTOR to the fullest extent permitted by law, shall indemnify and hold harmless CITY, its elected and appointed officials, directors, officers, employees and volunteers from and against any claims, damages, losses, and expenses (including reasonable attorney’s fees and costs), arising out of performance of the services to be performed under this Agreement, provided that any such claim, damage, loss, or expense is caused by the negligent acts, errors or omissions of CONTRACTOR, any subcontractor employed directly by CONTRACTOR, anyone directly or indirectly employed by any of them, or anyone for whose acts they may b e liable, except those injuries or damages arising out of the active negligence , sole negligence, or sole willful misconduct of the City of Lodi , its elected and appointed officials, directors, officers, employees and volunteers. CITY may, at its election, conduct the defense or participate in the defense of any claim related in any way to this indemnification. If CITY chooses at its own election to conduct its own defense, participate in its own defense, or obtain independent legal counsel in defense of any claim related to this indemnification, CONTRACTOR shall pay all of the costs related thereto, including without limitation reasonable attorney fees and costs. The defense and indemnification obligations required by this Agreement are undertaken in add ition to, and shall not in any way be limited by the insurance obligations set forth herein.

Section 4.4 No Personal Liability
Neither the City Council, nor any other officer or authorized assistant or agent or City employee shall be personally responsibl e for any liability arising under this Agreement.
5 Section 4.5 Responsibility of CITY
CITY shall not be held responsible for the care or protection of any material or parts of the work described in the Scope of Services prior to final acceptance by CITY, except as expressly provided herein.

Section 4.6 Insurance Requirements for CONTRACTOR
CONTRACTOR shall take out and maintain during the life of this Agreement, insurance coverage as set forth in Exhibit C attached hereto and incorporated by this reference.

Section 4.7 Successors and Assigns
CITY and CONTRACTOR each bind themselves, their partners, successors, assigns, and legal representatives to this Agreement without the written consent of the others. CONTRACTOR shall not assign or transfer any interes t in this Agreement without the prior written consent of CITY. Consent to any such transfer shall be at the sole discretion of CITY.

Section 4.8 Notices
Any notice required to be given by the terms of this Agreement shall be in writing signed by an authorized representative of the sender and shall be deemed to have been given when the same is personally served or upon receipt by express or overnight delivery, postage prepaid, or three (3) days from the time of mailing if sent by first class or certified mail, postage prepaid, addressed to the respective parties as follows:

To CITY: City of Lodi
221 West Pine Street
P.O. Box 3006
Lodi, CA 95241-1910
Attn: John R. Della Monica Jr.

To CONTRACTOR: Mintier Harnish
1415 20th Street
Sacramento, CA 95811
Jim Harnish

Section 4.9 Cooperation of CITY
CITY shall cooperate fully and in a timely manner in providing relevant information it has at its disposal relevant to the Scope of Services.

Section 4.10 CONTRACTOR is Not an Employee of CITY
CONTRACTOR agrees that in undertaking the duties to be performed under this Agreement, it shall act as an independent contractor for and on behalf of CITY and not an employee of CITY. CITY shall not direct the work and means for accomplishment of 6 the services and work to be performed hereunder. CITY, however, retains the right to require that work performed by CONTRACTOR meet specific standards without regard to the manner and means of accomplishment thereof.

Section 4.11 Termination
CITY may terminate this Agreement, with or without cause, by giving CONTRACTOR at least ten (10) days written notice. Where phases are anticipated within the Scope of Services, at which an intermediate decisio n is required concerning whether to proceed further, CITY may terminate at the conclusion of any such phase.

Upon termination, CONTRACTOR shall be entitled to payment as set forth in the attached Exhibit B to the extent that the work has been performed. Upon termination, CONTRACTOR shall immediately suspend all work on the Project and deliver any documents or work in progress to CITY. However, CITY shall assume no liability for costs, expenses or lost profits resulting from services not completed or for contracts entered into by CONTRACTOR with third parties in reliance upon this Agreement.

Section 4.12 Confidentiality
CONTRACTOR agrees to maintain confidentiality of all work and work products produced under this Agreement, except to the extent otherwise required by law or permitted in writing by CITY. CITY agrees to maintain confidentiality of any documents owned by CONTRACTOR and clearly marked by CONTRACTOR as “Confidential” or “Proprietary”, except to the extent otherwise required by law or permitted in writing by CONTRACTOR. CONTRACTOR acknowledges that CITY is subject to the California Public Records Act.

Section 4.13 Applicable Law, Jurisdiction, Severability, and Attorney’s Fees This Agreement shall be governed by the laws of the State of Califo rnia.

Jurisdiction of litigation arising from this Agreement shall be venued with the San Joaquin County Superior Court. If any part of this Agreement is found to conflict with applicable laws, such part shall be inoperative, null, and void insofar as it is in conflict with said laws, but the remainder of this Agreement shall be in force and effect. In the event any dispute between the parties arises under or regarding this Agreement, the prevailing party in any litigation of the dispute shall be entitle d to reasonable attorney’s fees from the party who does not prevail as determined by the San Joaquin County Superior Court.

7 Section 4.14 City Business License Requirement
CONTRACTOR acknowledges that Lodi Municipal Code Section 3.01.020 requires CONTRACTOR to have a city business license and CONTRACTOR agrees to secure such license and pay the appropriate fees prior to performing any work hereunder.

Section 4.15 Captions
The captions of the sections and subsections of this Agreement are for convenience only and shall not be deemed to be relevant in resolving any question or interpretation or intent hereunder.

Section 4.16 Integration and Modification
This Agreement represents the entire understanding of CITY and CONTRACTOR as to those matters contained herein. No prior oral or written understanding shall be of any force or effect with respect to those matters covered hereunder. This Agreement may not be modified or altered except in writing, signed by both parties.

Section 4.17 Contract Terms Prevail
All exhibits and this Agreement are intended to be construed as a single document. Should any inconsistency occur between the specific terms of this Agreement and the attached exhibits, the terms of this Agreement shall prevail.

Section 4.18 Severability
The invalidity in whole or in part of any provision of this Agreement shall not void or affect the validity of any other provision of this Agreement.

Section 4.19 Ownership of Documents
All documents, photographs, reports, analyses, audits, computer medi a, or other material documents or data, and working papers, whether or not in final form, which have been obtained or prepared under this Agreement, shall be deemed the property of CITY. Upon CITY’s request, CONTRACTOR shall allow CITY to inspect all such documents during CONTRACTOR’s regular business hours. Upon termination or completion of services under this Agreement, all information collected, work product and documents shall be delivered by CONTRACTOR to CITY within ten (10) calendar days.

CITY agrees to indemnify, defend and hold CONTRACTOR harmless from any liability resulting from CITY’s use of such documents for any purpose other than the purpose for which they were intended.

8 Section 4.20 Authority
The undersigned hereby represent and warrant t hat they are authorized by the parties to execute this Agreement.

Section 4.21 Federal Transit Funding Conditions
If the box at left is checked, the Federal Transit Funding conditions attached as Exhibit D apply to this Agreement. In the event of a conflict between the terms of this Agreement or any of its other exhibits, and the Federal Transit Funding Conditions, the Federal Transit Funding Conditions will control.

Section 4.22 Counterparts and Electronic Signatures
This Agreement and other documents to be delivered pursuant to this Agreement may be executed in one or more counterparts, each of which will be deemed to be an original copy and all of which, when taken together, will be deemed to constitute one and the same agreement or doc ument, and will be effective when counterparts have been signed by each of the parties and delivered to the other parties. Each party agrees that the electronic signatures, whether digital or encrypted, of the parties included in this Agreement are intend ed to authenticate this writing and to have the same force and effect as manual signatures. Delivery of a copy of this Agreement or any other document contemplated hereby, bearing an original manual or electronic signature by facsimile transmission (includ ing a facsimile delivered via the Internet), by electronic mail in “portable document format” (“.pdf”) or similar format intended to preserve the original graphic and pictorial appearance of a document, or through the use of electronic signature software will have the same effect as physical delivery of the paper document bearing an original signature.

1 City of Lodi
Sixth Cycle Housing Element Update
Work Scope
November 4, 2022
Task 1 Project Initiation
Task 1.1 Project Kick-off Meeting
Mintier Harnish will facilitate a virtual project kick-off meeting with City staff. During this meeting, Mintier Harnish will work with City staff to accomplish the following:
• Review the work scope and schedule.
• Establish communication protocols, including monthly status reporting, project status coordination calls, and conference call/online video call protocols. • Determine a typical review schedule needed by City staff for draft work products. • Review and discuss overall organization of the Housing Element Update. • Discuss the community engagement strategy and the roles and responsibilities for both City staff and Mintier Harnish.
• Identify informational sources and available GIS mapping data, including level of accuracy, status, and most recent updates.
• Review preliminary RHNA and discuss the potential and strategy for an appeal. • Discuss data resources, approach, and methodology for the sites analysis. • Discuss critical housing issues and the City’s existing Housing Element. • Determine consultation and coordination with appropriate governmental agencies. • Discuss the Safety, Conservation, and Environmental Justice Element requirements. • Discuss the SB 244 disadvantaged unincorporated communities analysis.

Following the kick-off meeting Mintier Harnish will join a virtual city tour, led by City staff, to familiarize the consultant team with the city’s structure, examples of housing successes and challenges, high- and low- resource neighborhoods, and safety-related issues.

Task 1.2 Project Management
Mintier Harnish will establish regular communication and coordination with City staff that includes bi-weekly virtual check-in meetings, in-person milestone meetings, telephone conferences, emails, and other communications to ensure timely delivery and adoption of the updated Housing, Safety, Conservation, and Environmental Justice Elements. During the kick- off meeting Mintier Harnish will identify communication protocols and key project staff and consultants who will be copied on all communications. Mintier Harnish will provide monthly project status reports that identify any budget or schedule issues and, if identified, proposed resolutions. Since March 2020, when Mintier Harnish needed to adapt our work and projects to 2 a virtual environment, Mintier Harnish have developed a wide range of communication and work options that Mintier Harnish can work with City staff to implement if needed.

Task 1 Deliverable
• Kick-off meeting agenda (digital; pdf)
• Communication, email, and file saving protocols; style guide (digital; pdf) Task 2 Review and Evaluate Current Housing Element
Task 2.1 Review and Evaluate Current Housing Element
Mintier Harnish will review and evaluate the City’s 2015-2023 Housing Element. Specifically, Mintier Harnish will:
• Discuss the effectiveness and continued appropriateness of current housing programs and policies
• Evaluate the City’s progress in meeting identified goals • Identify any barriers to achieving identified goals
• Review compliance with new State laws
• Identify potential revisions to existing programs
The City’s latest Housing Element Annual Progress Report will be the starting point for this evaluation. Mintier Harnish will interview City staff and compile additional information to provide an assessment of the continued appropriateness of existing programs and whether new programs should be added to address emerging trends and issues. Upon completion of this review, Mintier Harnish will provide a memorandum summarizing our findings. Mintier Harnish will also develop a recommended format and draft outline for the Housing Element Update.

Task 2 Deliverable
• 2019-2023 Housing Element evaluation (digital; Word document; pdf) Task 3 Administrative Draft Housing Element
Task 3.1 Existing Housing Needs Analysis
The Existing Housing Needs Analysis is a comprehensive evaluation of current demographic, employment, housing, and housing market conditions and trends. Mintier Harnish will use this section as the basis for determining the existing unmet housing needs in Lodi. This analysis will include the following topic areas:

Demographic Profile and Employment Profile. This section establishes “baseline” population and employment characteristics for the city, including population growth trends, age characteristics, race and ethnicity, income, local employment trends, and population and employment projections.

Household Characteristics and Housing Stock. Mintier Harnish will use recent data sources to update the description of the existing housing stock in terms of housing stock growth and composition, vacancy rates, housing age and conditions, and overcrowding. Mintier Harnish will also describe housing cost burdens and the ability of households of different income levels to 3 pay for housing. Mintier Harnish will describe current housing market trends, home sale prices, and rental rates based on recent data sources (e.g., DataQuick, Zillow, CalREALTORS records) and conversations with local realtors.

Special Needs Housing Analysis. Mintier Harnish will update the analysis of housing needs for special needs populations, including senior households, persons with disabilities, large families, single female-headed households, farmworkers, seasonal workers, extremely low- income households, and persons in need of emergency shelter.

Task 3.2 Fair Housing Assessment
The Mintier Harnish/Rincon team will prepare an assessment of fair housing practices. Mintier Harnish will analyze fair housing enforcement and outreach, integration and segregation patterns and trends, racially and ethnically concentrated areas of poverty, disparities in access to opportunities, and disproportionate housing needs consistent with HCD’s AFFH Guidance for All Public Entities and for Housing Elements (April 2021). Mintier Harnish will describe Lodi’s fair housing needs, including a discussion on how the proposed sites inventory promotes fair housing, and will develop meaningful actions that the City can implement to further fair housing issues in the community.

Task 3.3 Sites Inventory
The City of Lodi 6th Cycle RHNA allocation is 3,909. For the Housing Element Update, it will be imperative to take into consideration the following adequate site requirements under new housing element laws:
• No net loss of capacity when sites are developed
• Continued ability to meet the RHNA by income category • Stringent standards for assessing feasibility when reusing vacant and underutilized sites that were included in the 5th Cycle Multi-Jurisdictional Housing Element • Demonstrated trends of development
To accommodate new State legislation and requirements, additional justification is required to demonstrate that potential sites are suitable and available. This justification may include:
• Lot consolidation potential
• Feasibility of development on smaller sites
• Impediments for residential development on non-vacant sites, if applicable • Recent development on similar sites
• Substantial evidence the existing use is likely to be discontinued within the planning period
Following the analysis of available sites, Mintier Harnish will prepare a Mintier Harnishb mapping portal that will be used to share online, interactive maps with City staff and the community. Static maps created from this portal will be used to generate a sites inventory using HCD’s current worksheet format and template. Mintier Harnish will provide an expanded analysis of the sites inventory including development trends that justify the inclusion of vacant and non-vacant sites. Mintier Harnish assume one round of review on the initial information presented in the web portal and sites inventory (Excel format).

Task 3.4 Rezoning
4 Mintier Harnish/Rincon Team will work with City staff to identify potential areas for rezoning, if the sites analyses determine it is necessary. Mintier Harnish will evaluate the City’s existing inventory of vacant and developed land within the city limits, existing uses, allowed uses, potential for development, and the General Plan land use designations and zoning map to identify potential rezoning opportunities. These opportunities for rezoning may include increasing densities, changing land use designations to allow residential or mixed uses, intensifying land use, or establishing overlay zoning to facilitate housing production.

Task 3.5 Electronic Housing Element Site Inventory Form Mintier Harnish/Rincon Team will prepare and submit an electronic copy of the final sites inventory to HCD using pre-approved Excel spreadsheets. Mintier Harnish will prepare the necessary submittals on behalf of the City using the downloadable Housing Element Sites Inventory Form.

Task 3.6 Financial and Programmatic Resources
The Financial and Programmatic Resources section will include a description of the City’s 2023- 2031 RHNA from SJCOG. This analysis will examine the resources and opportunities available for the development, rehabilitation, and preservation of housing. It will include an inventory and analysis of the land resources (i.e., vacant and underutilized sites), and the financial and administrative resources available to support housing activities.

Units Approved, Built, or Under Construction. A jurisdiction is allowed to count units that are approved, built, or under construction as of the beginning of the projection period (or completed after that date, but before Housing Element adoption) against its RHNA and calculate the remaining housing need. Mintier Harnish will count any of these units against the RHNA and calculate the remaining housing need.

Adequacy of Public Facilities and Services. Mintier Harnish will prepare an assessment of the adequacy of water and wastewater infrastructure to meet existing and future housing needs, based on information from local water and wastewater master plans, specific plans, and City staff input.

Inventory of Financial and Administrative Resources. Mintier Harnish will describe local, State, and Federal financial and administrative resources available to help the City implement its housing programs.

Energy Conservation Opportunities. Mintier Harnish will describe opportunities for energy conservation, including the City’s existing General Plan policies that promote energy conservation, and alternative energy and green building measures. Mintier Harnish will also describe local energy conservation programs, such as weatherization and rebate programs provided by local utility companies.

Task 3.7 Housing Constraints
Mintier Harnish will review and update the analysis of both governmental and non-governmental constraints, such as land and development costs, site constraints, existing or planned infrastructure, land use controls, building code regulations, fees, and permit and processing procedures. Mintier Harnish will also analyze constraints on housing for persons with disabilities, and the City’s current permitting procedures for emergency shelters, transitional and 5 supportive housing, and single-room occupancy units. Mintier Harnish will update this section to address the current economic climate and housing market. The housing constraints analysis will also document local efforts to remove governmental constraints to improve the City’s ability to meet its share of the regional housing needs and satisfy the requirements of the Government Code Section 65583 et seq.

Task 3.8 Housing Element Goals, Policies, and Quantified Objectives Mintier Harnish will update the 2019-2023 Housing Element goals, policies, programs, and quantified objectives based on the evaluation of the 2019-2023 Housing Element, the housing needs and constraints identified in the Background Report, recent changes to State law, public input from the community meetings, and feedback from City staff. Housing policies and programs will build upon the most successful policies and programs in the 2019-2023 Housing Element. All programs will include specific steps; time frame for implementation; responsible department, agencies, or officials; the City’s implementation responsibilities; and measurable outcomes.

Task 3 Deliverables
• Housing needs analysis
• Fair housing assessment
• ArcGIS Online web mapping portal (online)
• Final sites inventory in HCD-approved format to be included as an Appendix to the Housing Element (digital; Excel; pdf)
• Financial and programmatic resources analysis
• Housing constraints analysis
• Housing Element Goals, Policies, and Quantified Objectives Task 4 Public Review Draft Housing Element
Task 4.1 Administrative Review Draft Housing Element
Mintier Harnish will prepare an Administrative Draft Housing Element for City staff to review.

Task 4.2 Public Review Draft Housing Element
Mintier Harnish will prepare a Public Review Draft Housing Element based on comments received from City staff on the Administrative Review Draft Housing Element. Recent changes in State law now require the City to circulate the Public Review Draft Housing Element for a minimum 30-day public comment period. At the end of the comment period, the City must allow for a minimum of 10 days to respond to public comments prior to the Planning Commission review of the Draft Housing Element.

Task 4.3 HCD Public Review Draft Housing Element
Mintier Harnish will revise the Public Review Draft Housing Element based on direction from the Planning Commission and City Council and prepare a Draft Housing Element to be delivered to HCD.
6 Task 4 Deliverables:
• Administrative Review Draft Housing Element (digital; Word document; pdf) • Public Review Draft Housing Element (digital; Word document; pdf) • Newsletter #2 (digital; InDesign; pdf)
• Study Session Materials (digital; PowerPoint)
• HCD Review Draft Housing Element (digital; Word document; pdf) Task 5 State Certification
Task 5.1 Transmittal to HCD
Mintier Harnish will hand-deliver the Draft Housing Element to HCD. Under State law, HCD has up to 90 days to review the Draft Housing Element. During the HCD review process, Mintier Harnish will maintain close contact with the assigned HCD reviewer to respond to any questions he/she may have during the process.

Task 5.2 Meeting with HCD
Following submission of the HCD Review Draft Housing Element and prior to the end of the 90- day review period, Mintier Harnish and City staff will meet with HCD staff or conduct a phone call meeting to discuss the Draft Housing Element and preliminary HCD comments. If necessary, Mintier Harnish will have additional meetings with HCD after submitting the response to comments to facilitate the review process.

Task 5.3 Response to HCD Comments
Following the City’s receipt of HCD comments on the HCD Review Draft Housing Element, Mintier Harnish will prepare a preliminary response to HCD comments and provide this to City staff for review. Based on comments received from City staff, Mintier Harnish will then prepare and submit a formal written response to HCD comments. Mintier Harnish will work closely with HCD to seek a timely conditional approval letter prior to Planning Commission and City Council hearings.

Task 5 Deliverables:
• Completeness Checklist (digital; Word document; pdf)
• Response to HCD Comments (digital; Word document; pdf) Task 6 Community Outreach
Task 6.1 Community Engagement Strategy
Based on input from City staff at the kick-off meeting, Mintier Harnish will finalize the details of the comprehensive Community Engagement Strategy (Strategy). The strategy will describe engagement methods, responsibilities, and publicity protocols. Mintier Harnish will structure the Strategy to be inclusive of all those who make up the community, including residents; workers; businesses; property owners; developers and residential builders; educational institutions; civic, community, and non-profit organizations; religious, social, cultural, and ethnic committees; and public agencies.
7 Task 6.2 Project Branding and Logo
Mintier Harnish will develop a branding package for the Housing Element Update. The branding package will include a project logo and style templates for all work products, maps, and publicity materials to build enthusiasm about the project and ensure that this effort is distinct in the minds of the community.

Task 6.3 Website and Online Engagement
Mintier Harnish will develop an interactive, informational website, or page on the City’s website, for the Housing Element Update to provide an easy-to-use tool for residents to stay informed during the Update process. Mintier Harnish will regularly update the online engagement tools with new questions, surveys, opinion polls, and geographic mapping tools.

Task 6.4 Newsletters
Mintier Harnish will prepare two newsletters: a Housing Element update overview and a summary of the Public Review Draft Housing Element Update.

Task 6.5 Stakeholder Interviews and Focus Group Meetings Mintier Harnish will facilitate up to 15 one-hour stakeholder interviews and up to five stakeholder focus group meetings. Mintier Harnish will work with City staff to identify participants and contact information for the interviews and focus groups. Mintier Harnish will coordinate interview times with participants and provide a summary of the stakeholder interviews and focus groups. The stakeholder interviews and focus group meetings will be conducted as virtual meetings via Zoom or other online technology.

Task 6.6 Community Workshops
Mintier Harnish will facilitate three community workshops: the first on housing concerns and needs, the second on vacant and underutilized sites assessment, and the third on the Public Review Draft Housing Element Update. Two workshops will be virtual via zoom or other online platform; the third will be in-person. Mintier Harnish will also support the workshops with online opinion surveys.

Task 6.7 Study Sessions: Planning Commission and City Council Mintier Harnish will facilitate three study sessions with the Planning Commission and City Council. The first will be a joint study session to discuss the results of the sites inventory, community discussion, stakeholder interviews, and opinion surveys. The second will be with the Planning Commission to solicit input on the Public Review Draft Housing Element Update and formulate a recommendation for the City Council. The third will be with the City Council to solicit input on the Public Review Draft Housing Element Update and request authorization to submit the Housing Element Update to HCD for the mandated 90-day review period. All three study sessions will be virtual.

Task 6.8 Translation Services
8 Mintier Harnish will offer two types of translation services for the project: verbal translation and translation of written materials. Presentations, posters, handouts, and all other written material will be available in both English and Spanish. Translators can be present at all workshops.

Task 6 Deliverables:
• Stakeholder and community contact list (digital; Excel; pdf) • Community engagement strategy (digital; Word document; pdf) • Project logo and branding package (digital; pdf)
• Website and online engagement (digital)
• Online opinion survey (online)
• Opinion survey results summary (digital; Word document; pdf) • Newsletter #1: Housing Element Update Overview (digital; InDesign; pdf) • Newsletter #2: Public Review Draft Housing Element Update (digital; InDesign; pdf) • Stakeholder interview summary (digital; Word document; pdf) • Stakeholder focus group summary (digital; Word document; pdf) • Community workshop information boards and handouts (digital; pdf; hard copies, display boards)
• Study session materials (digital; PowerPoint presentations; pdf) Task 7 Public Hearings
Mintier Harnish will work with City staff to respond to HCD staff comments, incorporate those responses into a Public Hearing Draft Housing Element, and facilitate adoption of the Final Housing Element.

Task 7.1 Public Hearing Draft Housing Element
Mintier Harnish will prepare a Public Hearing Draft Housing Element that incorporates all of the responses to HCD comments. Mintier Harnish will provide a digital copy of the Public Hearing Draft Housing Element to post on the City website and will send out an email to stakeholders and the community.

Task 7.2 Public Hearings and Adoption
Mintier Harnish will attend two public hearings–one with the Planning Commission and one with the City Council–to present the Public Hearing Draft Housing Element, respond to questions, and record the recommendations of the Planning Commission and the action of the City Council.

Task 7.3 Final Housing Element and Transmittal to HCD
Mintier Harnish will prepare the Final Housing Element that incorporates any changes made by the Planning Commission and City Council in adopting the Housing Element. Mintier Harnish will print hard copies and provide a digital copy of the Final Housing Element. Mintier Harnish will also prepare a cover memorandum to accompany submission of the Final Housing Element to HCD for the final 60-day certification period.

Task 7 Deliverables:
9 • Planning Commission and City Council Public Hearing materials (digital; PowerPoint presentations; pdf)
• Final Housing Element transmittal memorandum to HCD (digital; Word document; pdf) • Final Housing Element (1 bound hard copy; digital; Word document; pdf) Task 8 Environmental Review
Mintier Harnish will coordinate with City staff on integrating the environmental assessment for the Housing, Safety, Conservation, and environmental Justice Elements with the environmental Impact report currently being prepared for selected General Plan amendments. Mintier Harnish will provide analytical support and technical analysis as needed.

Task 9 Tribal Consultations
Mintier Harnish will assist City staff in conducting government-to-government tribal consultation in accordance with Assembly Bill 52 of 2014 (AB 52) and Senate Bill 18 of 2004 (SB 18). Mintier Harnish will prepare the AB 52- and SB 18-specific letters placed on City letterhead; prepare and submit a Native American Heritage Commission Sacred Lands File SB 18 request; and prepare a tracking sheet and instructions for City staff.

Task 9 Deliverable
• Technical memorandum documenting Tribal consultation results (digital; Word document; pdf)
Task 10 Review General Plan For Consistency
Task 10.1 Review General Plan For Consistency
Mintier Harnish will review the General Plan to ensure consistency with the Housing Element Update. Mintier Harnish will review the land use; growth management and infrastructure; community design and livability; transportation; parks, recreation, and open space; conservation; and noise elements and prepare recommendations for revisions, if appropriate.

Mintier Harnish assume that since the Safety Element has not been updated to comply with new State laws, Mintier Harnish have included work scope and budget to address that element update, which goes beyond housing element consistency. Mintier Harnish have also included work scope and budget for a new Environmental Justice Element, as wehll as a SB 244 Disadvantaged Unincorporated Communities analysis.

Task 10 Deliverable
• Memorandum summarizing General Plan consistency review (digital; Word document; pdf)
Task 11 Preparation of Other Elements of the General Plan Task 11.1 Safety Element Update
Subtask 11.1.1 Vulnerability Assessment
10 Mintier Harnish will identify and map critical assets (emergency services, transportation, public health) that could be exposed to climate hazards and conduct a spatial and qualitative analysis of the sensitivity and adaptive capacity of each. A key component of the vulnerability assessment will be an evaluation of the potential for climate change to disproportionally impact vulnerable population groups (e.g., seniors, children, low-income communities, outdoor workers).

Subtask 11.1.2 AB 747 Analysis
Mintier Harnish will coordinate with City staff, and other emergency management personnel to select up to three emergency scenarios and assess the capacity of the City’s evacuation route options under selected conditions, including those most likely to be influenced by climate change. The analysis will be informed by existing evacuation plans and analyses to develop a model that provides evacuation route vulnerability scores for residential parcels (and commercial properties if the City desires).

Through this analysis, Mintier Harnish will develop a vulnerability score. The vulnerability score will be assigned to each parcel based on the modeled time estimated to evacuate outside city boundaries. This model will not include dynamic traffic modeling. The analysis will be used to determine if the City should consider putting additional or alternate evacuation contingency plans in place and what additional measures or contingency plans and options it should consider implementing. Mintier Harnish will include key findings and policy recommendations for inclusion in the Safety Element and develop a brief technical memorandum describing the methodology of the results and high-level recommendations.

Subtask 11.1.3 SB 99 Analysis
Mintier Harnish will identify residential developments in any hazard area identified in the Safety Element that do not have at least two emergency evacuation routes. Mintier Harnish will coordinate with City staff to develop a citywide map using ESRI that identifies communities with less than two ingress/egress and provide a narrative description of the implications for evacuation planning. Mintier Harnish will use the analysis to determine if the City should consider specific plans or policies to address any identified access limitations or constraints.

Subtask 11.1.4 Safety Element Policy Memorandum
Mintier Harnish will review the existing Safety Element and identify necessary updates to bring it into compliance with State law. Mintier Harnish will provide a memorandum summarizing the most recent applicable legislation requirements, recommendations on how the City can comply with these requirements, and critical updates that will be needed for the existing Safety Element.

Subtask 11.1.5 Administrative Draft Safety Element
Mintier Harnish will update background information, associated maps, and the regulatory context for the following topics currently included in the Safety or Conservation Element: soils, seismic, and other geologic hazards; flood hazards; fire hazards; hazardous materials and waste; aircraft hazards; and emergency response.

Subtask 11.1.6 Public Review Draft Safety Element
11 Mintier Harnish will revise the Administrative Draft Safety Element in response to a single set of consolidated comments from City staff.

Subtask 11.1.7 Community Workshop: Safety Element
Mintier Harnish and City staff will facilitate one virtual community workshop on the Safety Element. Mintier Harnish will present the Draft Safety Element and discuss key changes and updates.

Subtask 11.1.8 Planning Commission and City Council Joint Study Session Mintier Harnish will assist City staff in facilitating a virtual joint study session with the Planning Commission and City Council to present the Draft Safety Element and discuss the results of the community workshop. Mintier Harnish will solicit input and direction from the Planning Commission and City Council. Mintier Harnish will revise the Safety Element as necessary following the study session.

Subtask 11.1.9 Adoption Hearings
Mintier Harnish will attend Planning Commission and City Council adoption hearings for the Safety Element as a part of the Housing Element Adoption Hearings (Task 7).

Subtask 11.1.10 Prepare Final Documents
Mintier Harnish will prepare the Final Safety Element in a format consistent with the adopted 2014 Lodi General Plan.

Task 11.1 Deliverables:
• Draft Vulnerability Assessment (digital; Word document; pdf) • Final Vulnerability Assessment (digital; Word document; pdf) • Evacuation Analysis – Technical Memorandum (digital; Word document; pdf) • Draft Evacuation Map (digital; GIS; pdf)
• Final Evacuation Map (digital; GIS; pdf)
• Draft Safety Element Policy Memorandum (digital; Word document; pdf) • Final Safety Element Policy Memorandum (digital; Word document; pdf) • Administrative Draft Safety Element Update (digital; Word document; pdf) • Public Review Draft Safety Element Update (digital; Word document; pdf) • Community Workshop Materials (digital; PowerPoint presentations; display boards and handouts)
• Final Safety Element Update (digital; Word document; pdf)

Task 11.2 Conservation Element
Mintier Harnish will update the Conservation Element, in conjunction with the Safety Element to identify rivers, creeks, stream, flood corridors, riparian habitats, and land that may accommodate floodwater for purposes of groundwater recharge and stormwater management.

Task 11.3 Environmental Justice Element
12 Subtask 11.3.1 Administrative Draft Environmental Justice Element Mintier Harnish will prepare an Administrative Draft Environmental Justice Element that aligns with the Governor’s Office of Planning and Research Guidelines. Mintier Harnish will use CalEnviroScreen 4.0 to determine areas of concern regarding environmental justice issues that is consistent with SB 535 (Disadvantaged Communities). The updated Environmental Justice Element at a minimum will address goals, policies, and programs pertaining to the following topics: educational attainment, pollution burden of disadvantaged communities, and identification of burdensome quality of life metrics including poverty, unemployment, linguistic isolation, and health.

Subtask 11.3.2 Public Review Draft Environmental Justice Element Mintier Harnish will revise the Administrative Draft Environmental Justice Element in response to a single set of consolidated comments from the City. Mintier Harnish will prepare a Public Review Draft Environmental Justice Element.

Subtask 11.3.3 Community Workshops: Environmental Justice Element Mintier Harnish will work with City staff and community organizations to facilitate two community workshops on the Environmental Justice Element. Mintier Harnish will present the purpose of the Environmental Justice Element and discuss key goals, policies, and programs that are included as part of the Draft. Mintier Harnish will then facilitate a question-and-answer session and interactive small group sessions. Mintier Harnish will summarize the results of the input received.

Subtask 11.3.4 Planning Commission and City Council Joint Study Session Mintier Harnish will assist City staff with facilitating a virtual joint study session with the Planning Commission and City Council to present the Draft Environmental Justice Element and discuss the results of the community workshops. Mintier Harnish will solicit input and direction from the Planning Commission and City Council. Mintier Harnish will revise the Environmental Justice Element as necessary following the study session.

Subtask 11.3.5 Adoption Hearings
Mintier Harnish will attend Planning Commission and City Council adoption hearings for the Environmental Justice Element as a part of the Housing Element Adoption Hearings (Task 7).

Subtask 11.3.6 Prepare Final Documents
Mintier Harnish will prepare the Final Environmental Justice Element.

Task 11.3 Deliverables:
• Administrative Draft Environmental Justice Element (digital; Word document; pdf) • Public Review Draft Environmental Justice Element (digital; Word document; pdf) • Community workshop materials (digital; PowerPoint presentations; display boards and handouts)
• Final Environmental Justice Element (digital; Word document; pdf) 13 Task 11.4 SB 244 Disadvantaged Unincorporated Communities (DUCs) Analysis
Subtask 11.4.1 Research
Mintier Harnish will research and review existing San Joaquin County and LAFCO documents to confirm any identified DUCs in the county. Mintier Harnish will also use criteria included in SB 244 to ensure all potential DUCs have been identified. As part of this research, Mintier Harnish will compare DUC locations as they relate to the City of Lodi’s current Sphere of Influence (SOI). If desired by the City, Mintier Harnish will also include the areas proposed to be included in the expanded SOI.

Subtask 11.4.2 DUC Infrastructure Assessment
Following the research, review, and identification of a DUC(s) within the City’s SOI, Mintier Harnish will prepare a memorandum highlighting the identified DUCs and their infrastructure deficiencies. It is assumed that existing published documents (i.e., municipal service reviews, infrastructure plans, and any community/areas plans) that pertain to the DUC areas will provide the majority of the required data needed to determine and identify existing deficiencies in infrastructure. For any infrastructure data not published, Mintier Harnish will contact the appropriate local agencies to obtain missing infrastructure information necessary to conduct the infrastructure assessment. As part of our documentation, Mintier Harnish will provide a brief overview of each DUC, the geographical setting, and an initial summary of infrastructure and services.

Subtask 11.4.3 Land Use Element Amendments
Mintier Harnish will determine whether a General Plan amendment is required to address disadvantaged unincorporated communities consistent with SB 244. If an amendment is required, Mintier Harnish will include those changes as a part of our Task 10 General Plan consistency review.

Task 11.4 Deliverables:
• Memorandum summarizing the DUC review (digital; Word document; pdf) • DUC Infrastructure Assessment (digital; Word document; pdf) Task 12 Zoning Code Compliance
Mintier Harnish will review the City Zoning Code and make recommendations to make it consistent with State housing law. Mintier Harnish will conduct a thorough diagnosis of the Zoning Code and identify provisions that are inconsistent with recent changes in State housing law. Mintier Harnish will prepare a Zoning Code Diagnosis Report that describes any provisions of the current Zoning Code that conflict with, or do not fully address, State housing law (e.g., objective design standards, ADUs) and provide recommendations to correct any deficiencies.

Task 12 Deliverable:
14 • Zoning Code Diagnosis Report (digital; Word document; pdf)

Proposal Cost Estimate (1)(2)
Mintier Harnish
Phases,
Tasks Description

HARNISH
Project Director
B. GIBBONS
Project Manager
R. LESTER Assistant
Project Manager
M. GIBBONS Senior
Planner

JUMAMOY/ZANCHETTA
Planners
Planning Technician
Support
Subtotal Hours
Subtotal Costs
WEATHERBY Director
R. SHAKRA
N. BELLUCI
J. MONTAGUE
Subtotal Hours
Subtotal Costs
TOTAL
COSTS
Phase 1 Project Initiation
Task 1.1 Project Kick-off Meeting 4 6 8 4 22 $4,790 4 4 4 4 16 $3,356 $8,146 Task 1.2 Project Management 16 24 80 40 160 $30,400 8 16 16 40 $8,808 $39,208 Subtotal 20 30 88 4 0 40 182 $35,190 12 20 20 4 56 $12,164 $47,354 Phase 2 Review and Evaluate Current Housing Element
Task 2.1 Review and Evaluate Current Housing Element 4 8 12 $2,060 4 4 $736 $2,796 Subtotal 0 0 4 0 8 0 12 $2,060 0 0 4 0 4 $736 $2,796
Phase 3 Administrative Draft Housing Element
Task 3.1 Existing Housing Needs Analysis 2 10 40 52 $8,870 2 4 6 $1,306 $10,176 Task 3.2 Fair Housing Assessment 8 8 $1,560 10 30 80 10 130 $25,750 $27,310 Task 3.3 Sites Inventory 12 12 $2,340 14 20 130 50 214 $39,690 $42,030 Task 3.4 Rezoning 2 4 8 12 26 $4,940 2 8 10 $1,738 $6,678 Task 3.5 Electronic Housing Element Site Inventory Form 2 2 $390 8 8 $1,168 $1,558 Task 3.6 Financial and Programmatic Resources 4 12 16 $2,700 0 $0 $2,700 Task 3.7 Housing Constraints 2 2 8 40 52 $8,950 0 $0 $8,950 Task 3.8 Housing Element Goals, Policies, and Quantified Objectives 2 2 24 40 68 $12,070 2 2 $368 $12,438 Subtotal 8 8 76 0 144 0 236 $41,820 28 50 216 76 370 $70,020 $111,840 Phase 4 Public Review Draft Housing Element
Task 4.1 Administrative Review Draft Housing Element 4 40 40 8 92 $16,240 8 8 16 $2,640 $18,880 Task 4.2 Public Review Draft Housing Element 4 12 30 46 $8,180 4 4 8 $1,320 $9,500 Task 4.3 HCD Public Review Draft Housing Element 6 20 26 $4,370 4 4 8 $1,320 $5,690 Subtotal 8 0 58 0 90 8 164 $28,790 0 0 16 16 32 $5,280 $34,070 Phase 5 State Certification
Task 5.1 Transmittal to HCD 4 4 8 $1,420 0 $0 $1,420
Task 5.2 Meeting with HCD 2 4 4 10 $1,940 2 4 6 $1,154 $3,094 Task 5.3 Response to HCD Comments 2 16 40 58 $10,040 2 8 16 26 $4,378 $14,418 Subtotal 4 0 24 0 48 0 76 $13,400 4 0 8 20 32 $5,532 $18,932 Phase 6 Community Outreach
Task 6.1 Community Engagement Strategy 4 4 8 12 28 $5,460 0 $0 $5,460 Task 6.2 Project Branding and Logo 2 2 20 24 $4,060 0 $0 $4,060 Task 6.3 Website and Online Engagement 2 4 40 46 $7,650 0 $0 $7,650 Task 6.4 Newsletters 4 12 24 40 $7,120 0 $0 $7,120
Task 6.5 Stakeholder Interviews and Focus Group Meetings 24 16 40 $7,240 20 20 $3,680 $10,920 Task 6.6 Community Workshops 24 32 56 $9,800 12 8 20 $3,376 $13,176 Task 6.7 Study Sessions: Planning Commission and City Council 6 16 12 34 $6,450 2 2 4 $660 $7,110 Task 6.8 Translation Services 0 $0 0 $0 $20,000
Subtotal 4 18 90 0 156 0 268 $47,780 0 0 34 10 44 $7,716 $75,496 Phase 7 Public Hearings
Task 7.1 Public Hearing Draft Housing Element 2 4 12 16 34 $6,360 4 4 8 $1,876 $8,236 Task 7.2 Public Hearings and Adoption 12 24 36 $7,500 0 $0 $7,500 Task 7.3 Final Housing Element and Transmittal to HCD 2 2 2 6 $1,110 0 $0 $1,110 Subtotal 2 18 38 0 16 2 76 $14,970 4 0 4 0 8 $1,876 $16,846 Phase 8 Environmental Review Environmental Review
Task 8.1 Environmental Review 0 $0 0 $0 $10,000
Subtotal 0 0 0 0 0 0 0 $0 0 0 0 0 0 $0 $10,000
Task 9 Tribal Consultations
Task 9.1 Tribal Consultations 0 $0 4 12 8 24 $5,300 $5,300 Subtotal 0 0 0 0 0 0 0 $0 4 12 8 0 24 $5,300 $5,300
Task 10: Review General Plan For Consistency
Task 10.1 Review General Plan For Consistency 2 4 12 12 30 $5,720 0 $0 $5,720 Subtotal 2 4 0 12 12 0 30 $5,720 0 0 0 0 0 $0 $5,720
Task 11: Preparation of Other Elements of the General Plan Task 11.1 Safety Element Update 8 8 12 28 $6,300 12 232 40 284 $61,228 $67,528 Task 11.2 Conservation Element 4 4 8 16 $3,260 4 12 24 40 $7,332 $10,592 Task 11.3 Environmental Justice Element 8 20 76 100 204 $37,600 0 $0 $37,600 Task 11.4 SB 244 Disadvantaged Unincorporated Communities (DUCs) Analysis 8 16 24 80 128 $23,320 0 $0 $23,320 Subtotal 28 48 0 112 188 0 376 $70,480 16 244 0 64 324 $68,560 $139,040 Task 12: Zoning Code Compliance
Task 12.1 Zoning Code Compliance 4 12 4 20 40 80 $14,940 0 $0 $14,940 Subtotal 4 12 4 20 40 0 80 $14,940 0 0 0 0 0 $0 $14,940 TOTAL
Total Hours 80 138 382 148 702 50 1,500 - 68 326 310 190 894 - - 2022 Billing Rates $260 $235 $195 $195 $160 $125 - - $285 $224 $184 $146 - - - Labor Subtotals $20,800 $32,430 $74,490 $28,860 $112,320 $6,250 - $275,150 $19,380 $73,024 $57,040 $27,740 - $177,184 $482,334 Direct Expenses (e.g., printing, travel) $3,000 $3,000 $6,000 TOTAL COST $278,150 $180,184 $488,334
OPTIONAL ITEMS 0 $0 0 $0 $0
Rezoning Assistance 0 $0 $45,000
1) This represents a total not to exceed cost based on the provided scope of work. 2) The distribution of hours between firms, staff categories, and tasks are an estimate.

While the total costs will not change, the distribution of hours/costs may vary depending on actual execution. 3) Labor rates are subject to change every January 1st, although this change will not change the total budget.

MINTIER HARNISH RINCON CONSULTANTS INC

Page 1 ends

EXHIBIT C
NOTE: The City of Lodi is now using the online insurance program PINS Advantage. Once you have been awarded a contract you will receive an email from the City’s online insurance program requesting you to forward the email to your insurance provider(s) to submit the required insurance documentation electronically Insurance Requirements for Professional Services
Contractor shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder and the results of that work by the Contractor, his agents, representatives, employees or subcontractors.

MINIMUM SCOPE AND LIMIT OF INSURANCE
Coverage shall be at least as broad as:

1. Commercial General Liability (CGL): Insurance Services Office Form CG 00 01 covering CGL on an “occurrence” basis, including products and completed operations, property damage, bodily injury and personal & advertising injury with limits no less than $2,000,000 per occurrence. If a general aggregate limit applies, either the general aggregate limit shall apply separately to this project/location (ISO CG 25 03 or 25 04) or the general aggregate limit shall be twice the required occurrence limit.

2. Automobile Liability: ISO Form Number CA 00 01 covering any auto or if Contractor has no owned autos, then hired, and non- owned autos with limit no less than $1,000,000 per accident for bodily injury and property damage.

3. Workers’ Compensation: as required by the State of California, with Statutory Limits, and Employer’s Liability Insurance with limit of no less than $1,000,000 per accident for bodily injury or disease.

4. Professional Liability (Errors and Omissions) Insurance appropriate to the Consultant’s profession, with limits not less than $1,000,000 per occurrence or claim, $2,000,000 aggregate. May be waived by Risk Manager depending on the scope of services.

Other Insurance Provisions:
(a) Additional Named Insur ed Status
The City of Lodi, its elected and appointed boards, commissions, officers, agents, employees, and volunteers are to be covered as additional insureds on the CGL and auto policy with respect to liability arising out of work or operations performed by or on behalf of the Contractor including materials, parts, or equipment furnished in connection with such work or operations. General liability coverage can be provided in the form of an endorsement to the Contractor’s insurance (at least as broad as ISO Form CG 20 10 11 85 or if not available, through the addition of both CG 20 10, CG 20 26, CG 20 33, or CG 20 38; and CG 20 37 if a later edition is used
(b) Primary and Non-Contributory Insurance Endorsement
The limits of insurance coverage required may be satisfied by a combination of primary and umbrella or excess insurance. For any claims related to this contract, the Contractor’s insurance coverage shall be primary coverage at least as broad as ISO CG 20 01 04 13 as respects the Entity, its officers, officials, employees, and volunteers. Any insurance or self-insurance maintained by the Entity, its officers, officials, employees, or volunteers shall be excess of the Contractor’s insurance and shall not contribute with it.
(c) Waiver of Subrogation Contractor hereby grants to City of Lodi a waiver of any right to subrogation which any insurer of said Contractor may acquire against the City of Lodi by virtue of the payment of any loss under such insurance. Contractor agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation, but this provision applies regardless of whether or not the City of Lodi has received a waiver of subrogation endorsement from the insurer NOTE: (1) The street address of the CITY OF LODI must be shown along with (a) and (b) and (c) above: 221 West Pine Street, Lodi, California, 95240; (2) The insurance certificate must state, on its face or as an endorsement, a description of the project that it is insuring.
(d) Severability of Interest Clause
The term "insured" is used severally and not collectively, but the inclusion herein of more than one insured shall not operate to increase the limit of the company's liability under the Contractors commercial general liability and automobile liability policies. (e) Notice of Cancellation or Change in Coverage Endorsement This policy may not be canceled nor the coverage reduced by the company without 30 days' prior written notice of such cancellation or reduction in coverage to the Risk Manager, City of Lodi, 221 West Pine St., Lodi, CA 95240.

Page 2 ends

(f) Continuity of Coverage
All policies shall be in effect on or before the first day of the Term of this Agreement. At least thirty (30) days prior to the expiration of each insurance policy, Contractor shall furnish a certificate(s) showing that a new or extended policy has been obtained which meets the minimum requirements of this Agreement. Contractor shall provide proof of continuing insurance on at least an annual basis during the Term. If Contractor’s insurance lapses or is discontinued for any reason, Contractor shall immediately notify the City and immediately obtain replacement insurance. Contractor agrees and stipulates that any insurance coverage provided to the City of Lodi shall provide for a claims period following termination of coverage which is at least consistent with the claims period or statutes of limitations found in the California Tort Claims Act (California Government Code Section 810 et seq.).

(g) Failure to Comply
If Contractor fails or refuses to obtain and maintain the required insurance, or fails to provide proof of coverage, the City may obtain the insurance. Contractor shall reimburse the City for premiums paid, with interest on the premium paid by the City at the maximum allowable legal rate then in effect in California. The City shall notify Contractor of such payment of premiums within thirty (30) days of payment stating the amount paid, the name(s) of the insurer(s), and rate of interest. Contractor shall pay such reimbursement and interest on the first (1st) day of the month following the City’s notice. Notwithstanding any other provision of this Agreement, if Contractor fails or refuses to obtain or maintain insurance as required by this agreement, or fails to provide proof of insurance, the City may terminate this Agreement upon such breach. Upon such termination, Contractor shall immediately cease use of the Site or facilities and commence and diligently pursue the removal of any and all of its personal property from the site or facilities.

(h) Verification of Coverage
Consultant shall furnish the City with a copy of the policy declaration and endorsement page(s), original certificates and amendatory endorsements or copies of the applicable policy language effecting coverage required by this clause. All certificates and endorsements are to be received and approved by the City before work commences. However, failure to obtain the required documents prior to the work beginning shall not waive the Consultant’s obligation to provide them. The City reserves the right to require complete, certified copies of all required insurance policies, including endorsements required by these specifications, at any time. Failure to exercise this right shall not constitute a waiver of the City’s right to exercise after the effective date.

(i) Self-Insured Retentions
Self-insured retentions must be declared to and approved by the City. The City may require the Consultant to provide proof of ability to pay losses and related investigations, claim administration, and defense expenses within the retention. The policy language shall provide, or be endorsed to provide, that the self-insured retention may be satisfied by either the named insured or City. (j) Insurance Limits
The limits of insurance described herein shall not limit the liability of the Contractor and Contractor's officers, employees, agents, representatives or subcontractors. Contractor's obligation to defend, indemnify and hold the City and its officers, officials, employees, agents and volunteers harmless under the provisions of this paragraph is not limited to or restricted by any requirement in the Agreement for Contractor to procure and maintain a policy of insurance.

(k) Subcontractors
Consultant shall require and verify that all subcontractors maintain insurance meeting all the requirements stated herein, and Consultant shall ensure that City is an additional insured on insurance required from subcontractors

(l) Claims Made Policies
If any of the required policies provide coverage on a claims-made basis:

1. The Retroactive Date must be shown and must be before the date of the contract or the beginning of contract work.

2. Insurance must be maintained and evidence of insurance must be provided for at least five (5) years after completion of the contract of work.

3. If coverage is canceled or non-renewed, and not replaced with another claims-made policy form with a Retroactive Date prior to the contract effective date, the Consultant must purchase “extended reporting” coverage for a minimum of five (5) years after completion of contract work.

(m) Qualified Insurer(s)
All insurance required by the terms of this Agreement must be provided by insurers licensed to do business in the State of California which are rated at least “A-, VI” by the AM Best Ratings Guide, and which are acceptable to the City. Non-admitted surplus lines carriers may be accepted provided they are included on the most recent list of California eligible surplus lines insurers (LESLI list) and otherwise meet City requirements.

RESOLUTION NO. 2022-____

A RESOLUTION OF THE LODI CITY COUNCIL AUTHORIZING THE

CITY MANAGER TO EXECUTE A PROFESSIONAL SERVICES AGREEMENT

WITH MINTIER HARNISH, LP, A CALIFORNIA LIMITED PARTNERSHIP, FOR THE PREPARATION OF THE HOUSING ELEMENT UPDATE; AND FURTHER

APPROPRIATING FUNDS
========================================================================

WHEREAS, the Lodi Housing Element is part of the City’s General Plan, which is a comprehensive policy statement regarding the physical, economic, and social development of the city; and

WHEREAS, the San Joaquin Council of Governments has completed the Regional Housing Needs Assessment, which is the precursor for state -mandated updates of all Housing Elements; and

W HEREAS, a Request for Proposals was released on August 5, 2022.; and

W HEREAS, the City received and evaluated the three proposals as shown below; and Consultant Total Cost
Mintier Harnish, LP $488,334
Dyet & Bhatia $496,840
Michael Baker International $564,375

WHEREAS, staff recommends the City Council authorize the City Manager to execute a Professional Services Agreement with Mintier Harnish, LP, a California Limited Partnership, for the preparation of the Housing Element Update in an amount not to exceed $500,000 and appropriate funds in the amount of $500,000.

NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby authorize the City Manager to execute a Professional Services Agreement with Mintier Harnish, LP, a California Limited Partnership, for the preparation of the Housing Element Update in an amount not to exceed $500,000; and

BE IT FURTHER RESOLVED that funds in the amount of $500,000 be appropriated from the Community Development Special Revenue Fund to expenditure account 27082000.72450; and

BE IT FURTHER RE SOLVED, 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: December 7, 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 December 7, 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-13

COUNCIL COMMUNICATION

APPROVED
: ________________________________
Stephen Schwabauer, City Manager
AGENDA TITLE: Adopt Resolution Authorizing City Manager to Execute a Three -Year Professional Services Agreement for Recreational Vehicle Abatement Services with Mach One Towing of Lodi, CA ($66,300)
MEETI
NG DATE: December 7, 2022
PREP
ARED BY: Chief of Police
RECOM
MENDED ACTION: Adopt resolution authorizing City Manager to execute a three- year Professional Services Agreement for recreational vehicle abatement services with Mach One Towing of Lodi, CA in the amount of $66,300.

BAC
KGROUND INFORMATION: In August of 2019 the Lodi Police Department Foundation started receiving donations to abate abandoned and nuisance recreational vehicles (RVs) that park in Lodi neighborhoods, including the eastside industrial area. Nuisance RVs commonly have expired registration and mechanical or structural issues that make them unsafe or inoperable, causing blight to the areas they park. The abatement efforts have been headed up by the Community Liaison Officer and have been very successful. With the program’s success came expenses that quickly absorbed the donated funds.

The
Foundation received $9,000 in funding that reimbursed the department for expenses incurred from nuisance RV tows and destruction. The Department has removed and destroyed over 30 RVs. At the beginning of the program, the Lodi Police Department was paying for the tow and coordinating disposal through Central Valley Waste (Waste Management). The coordination of waste disposal bins was a task that the towing companies needed to take responsibility for scheduling purposes. The tow companies and the Lodi Police Department agreed on all-inclusive pricing and the agreements were created.

This
agreement is a three-year term not to exceed $66,300. Additional contractors may be added at a future date.

Adopt Resolution Authorizing City Manager to Execute a Three-Year Professional Services Agreement for Recreational Vehicle Abatement Services with Mach One Towing of Lodi, CA ($66,300) December 7, 2022

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FISCAL IMPACT: Towing costs are included in the 22/23 budget. No additional funding requested.

FUNDING AVAILABLE: Support Services Misc. Professional Services – 10031004.72450

_______________________________________
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 FOR RECREATIONAL VEHICLE ABATEMENT SERVICES WITH

MACH ONE TOWING, OF LODI
========================================================================

WHEREAS, i n August 2019 , the Lodi Police Department Foundation started receiving donations to abate abandoned and nuisance recreational vehicles (RVs) that park in Lodi neighborhoods, including the eastside industrial area; and

WHEREAS, the Foundation received $9,000 in funding that reimbursed the Police Department for expenses incurred from nuisance RV tows and destruction. The Department has removed and destroyed over 30 RVs; and

WHEREAS, the tow companies and the Lodi Police Department agreed on all -inclusive pricing.

NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby authorize the City Manager to execute a three-year Professional S ervices Agreement for recreational vehicle abatement, in an amount not to exceed $66,300, with Mach One Towing, of Lodi, California; and

BE IT FURTHER RESOLVED, pursuant to Section 6.3q of the City Council Protocol Manual (Res. 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: December 7, 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 December 7, 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-14

COUNCIL COMMUNICATION

APPROVED
: ________________________________
Stephen Schwabauer, City Manager
AGENDA TITLE: Adopt Resolution Authorizing City Manager to Execute Amendment No.1 to Professional Service Agreement with Quest Media and Supplies, Inc., for the Transit Division Video Surveillance System Licensing and Equipment Replacement ($55,000) MEETI
NG DATE: December 7, 2022
PREP
ARED BY: Information Technology Manager
RECOM
MENDED ACTION: Adopt resolution authorizing City Manager to execute Amendment No.1 to Professional Service Agreement with Quest Media and Supplies, Inc ., for the Transit Division video surveillance system licensing and e quipment replacement in the amount of $55,000.

BAC
KGROUND INFORMATION: The Transit Division currently relies on a video surveillance system that has reached end of life and is out of warranty. There are 45 cameras between the transit building and parking garage. Nine of those cameras have either failed or have been damaged by vandalism. The video recording server is unable to be supported by the vendor and staff are unable to view or pull recordings from the server. The amendment will allow Quest to license the existing cameras onto the City’s centralized surveillance program and includes ongoing maintenance and support for the health of the system. Quest will also replace the failed units with newer cameras.

Mai
ntaining a modern video surveillance system improves protection of City assets, which includes equipment, infrastructure, and staff. The enhanced video resolution and coverage angles improves identification of faces and vehicles. The di gital video surveillance system stores all the footage from the cameras on a digital video recorder, giving a centralized management point for Transit Division and Police. The Division plans on keeping the current location of cameras that monitor parts of the parking garage, transit station and bus parking lot.

On Aug
ust 17, 2022 the Council adopted a resolution authorizing City Manager to execute Professional Service Agreement with Quest Media and Supply Inc., of Roseville for the continued support and maintenance of the Avigilon video surveillance system and cameras. Quest offered real-time network monitoring of the health of the video system. This was a unique option not offered by other vendors. This service would help detect errors and failures of equipment and initiate a repair technician immediately. Quest will replace / repair / maintain all endpoint devices during the life of the contract as needed, barring intentional physical damage or misuse of the hardware. Quest’s real-time network monitoring helps ease the pressure of City staff from conducting regular testing and maintenance of the video surveillance system.

Staff recommends approving Amendment 1 for purchase of licensing for 45 surveillance cameras at the parking garage, transit station and bus parking lot, incorporating those units as part of the City-wide

surveillance program at a cost of $55,000. This will also include: the replacement of nine cameras that have failed or have been vandalized; replace 10 cameras that are end of life and are no longer supported by the manufacture; and add three new cameras to the Transit station to improve surveillance of the bus islands.

Whereas, Lodi Municipal Code §3.20.070 authorizes dispensing with bids for purchase of supplies, services or equipment when it is in the best interest of the City to do so, staff recommends that Council authorize the City Manager to execute Amendment No.1 to Professional Service Agreement with Quest Media.

FISCAL IMPACT: Funding for this project was approved as a Transit Capital Improvement Project in the FY 22/23 Budget

FUNDING AVAILABLE: Purchase and Installation ($55,000) PWTR-22002.

_______________________________________
Andrew Keys
Deputy City Manager/Internal Services Director

________________________________________
Benjamin Buecher
I.T. 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 QUEST MEDIA AND SUPPLIES, INC., OF

ROSEVILLE, FOR TRANSIT DIVISION VIDEO SURVEILLANCE SYSTEM

LICENSING AND EQUIPMENT REPLACEMENT
============================================================================

WHEREAS, the Transit division currently relies on an outdated video surveillance system that was purchased in 2017; and

WHEREAS, the current system has inadequate retention capability for storing video and offers poor video quality, rendering many captured images useless. The cameras and the back -end hardware are beginning to fail; and

WHEREAS, on August 17, 2022 the Council adopted a resolution authorizing the City Manager to execute a Professional Services Agreement with Quest Media and Supply, Inc., of Roseville for the purchase and installation of video surveillance system and maintenance plan; and

WHEREAS, this project was included as a capital improvement project in fiscal year 2022/23 and will be funded with Transportation Development Act funds.

N OW, 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 Quest Media and Supplies, Inc., of Roseville, California, for the Transit Division’s video surveillance system licensing, installation, and equipment replacement, in the amount of $55,000; and

BE IT FURTHER RESOLVED, pursuant to Section 6.3q of the City Council Protocol Manual (Res. 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: December 7, 2022
============================================================================

I hereby certify that Resolution No. 2022-___ was passed and adopted by the Lodi City Council in a regular meeting held December 7, 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-15

COUNCIL COMMUNICATION

APPROVED
: ________________________________
Stephen Schwabauer, City Manager
AGENDA TITLE: Adopt Resolution Authorizing Police Chief to Accept Grant and Execute Contract Administered by the Department of Alcoholic Beverage Control and Appropriate Funds ($30,000)
MEETI
NG DATE: December 7, 2022
PREP
ARED BY: Chief of Police
RECOM
MENDED ACTION: Adopt Resolution Authorizing Police Chief to Accept Grant and Execute Contract Administered by the Department of Alcoholic Beverage Control and Appropriate Funds in the amount of $30,000.

BAC
KGROUND INFORMATION: The Department of Alcoholic Beverage Control (ABC) Grant Assistance Program solicited applications in September of 2022 for alcohol-related enforcement and educational programs. On November 17th, the Lodi Police Department received an acceptance letter securing grant funds in the amount of $30,000 for operations from October 1, 2022 through August 31, 2023.

The
ABC Grant Assistance Program is designed to assist law enforcement departments in educating licensees and the public about alcohol-related laws, reduce the amount of alcohol sold to individuals under age 21 by ABC licensees and reduce crime and quality-of-life issues related to the sale and consumption of alcohol.

This
year, the Lodi Police Department received an award to carry out “shoulder tap” enforcement, “minor decoy” operations, and other special event enforcement throughout the community. The grant process requires the City Council to authorize the acceptance of funds and approve the proposed expenditures for the City of Lodi through this resolution.

Adopt Resolution Authorizing Police Chief to Accept Grant and Execute Contract Administered by the Department of Alcoholic Beverage Control and Appropriate Funds ($30,000) December 7, 2022

Page 2 ends

FISCAL IMPACT: Funds in the amount of $30,000 be appropriated to accounts as follows:

ABC Grant $ 30,000.00 21900000.56401 Revenue
ABC Grant Overtime $ 30,000.00 21999000.71002 Expense

FUNDING AVAILABLE: Not applicable.

_______________________________________
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 POLICE

CHIEF TO ACCEPT GRANT AND EXECUTE CONTRACT ADMINISTERED BY THE DEPARTMENT OF ALCOHOLIC BEVERAGE CONTROL; AND FURTHER

APPROPRIATING FUNDS
=======================================================================

WHEREAS, the City of Lodi Police Department desires to undertake a certain project designated as Agreement Number 22- OTS107 to be funded in part from funds made available through the Alcohol Policing Partnership Program (APP) administered by the Department of Alcoholic Beverage Control (hereafter referred to as ABC).

NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby authorize the Police Chief to execute the contract, including any extensions or amendments thereof and any subsequent contract with the State in relation thereto grant award on behalf of the City of Lodi to the Department of Alcoholic Beverage Control; and

BE IT FURTHER RESOLVED that any liability arising out of the performance of this contract, including civil court actions for damages, shall be the responsibility of the grant recipient and the authorizing agency. The State of California and ABC disclaim responsibility for any such liability; and

BE IT FURTHER RESOLVED
that this award is not subject to local hiring freezes; and

BE IT FURTHER RESOLVED tha t funds in the amount of $30,000 be appropriated for the grant as follows:

ABC Grant $30,000.00 21900000.56401 Revenue
ABC Grant Overtime $30,000.00 21999000.71002 Expense

Dated: December 7, 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 December 7, 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-16

COUNCIL COMMUNICATION

APPROVED
: ________________________________
Stephen Schwabauer, City Manager
AGENDA TITLE: A dopt Resolution Approving Arts Grants for Fiscal Year 2022/2023 MEETING DATE: December 7, 2022
PREP
ARED BY: Parks, Recreation and Cultural Services Director RECOM
MENDED ACTION: A dopt resolution approving Arts Grants for Fiscal Year 2022/2023.

BAC
KGROUND INFORMATION: Each year, City Council allocates funding to support the arts. In FY 2022/23, Council allocated $39,060 for Arts Grants. The Lodi Arts Commission (LAC) is tasked with soliciting applicants for arts grants, reviewing grant applications and recommending applicants for funding.

For FY
2022/23 funding, the LAC is recommending Council earmark $16,000 to support the Lodi Arts Foundation’s Taco Truck Cook-Off, First Friday Art Hop and miscellaneous community events and allocate the remaining $23,060 to local arts nonprofit organizations to further the arts in Lodi.

Three gr
ant applications were received for six projects by the April 21, 2022, due date and reviewed by a subcommittee of the LAC (Exhibit A). On November 9, 2022, the LAC voted 7-0 to recommend the three applications for funding.

The
grants are being submitted for a total of $12,924 for Council approval. They are: Changing Faces Theater Company, $6,000; Breakthrough Project, $1,400; and Lodi Community Art Center, $5,524. The remaining $10,136 will be used for additional Arts Grants throughout the balance of the fiscal year.

FISCAL IMPACT: Funds are included in FY 2022/23 budget.

FUNDING
AVAILABLE: Account # 10010102.72607
____________ ______________________
Andrew Keys, Deputy City Manager
_______________________________
Christina Jaromay
Parks, Recreation, and Cultural Services Director
CJ\LJ\JW:tl cc
: City Attorney Attachment: Exhibit A

- 1 -

LODI ARTS COMMISSION PROJECT GRANTS
2022-2023 PROGRAM CYCLE

SUMMARY OF GRANT APPLICATIONS

Group Name: Changing Faces Theater Company (CFTC)
Art Form(s): Theater
Grant Request: $6,000.00
Project Expenses: $8,500.00
Previous Funding: 2022- $3,500, 2021 - $4,000, 2020 - $8,500, 2019 - $7,500, 2018 - $6,000, 2017 - $5,500, 2016 - $10,000, 2015 - $10,000, 2014 - $11,000, 2013 - $10,000, 2012 - $9,000, 2011 – $7,500, 2009 - $4,250, 2008 - $16,952, 2007 - $12,000 Recommended for Funding for 2022/23: YES Award: $6,000.00 Project Name: “Pe ter Pan” – Pop-Up Theater Production
Project Date and Location: September - October at various locations in Lodi Project Description: “For the Fall 2023, CFTC has chosen “Peter Pan” as its Pop-Up production. The company has staged summer productions of this show twice, and it is one the stories most beloved by young people and their families. It is both a grand adventure story and a thoughtful exploration of what it means to be a child facing the transitions to adulthood.” Benefit to the Community: “The COVID-19 pandemic has brought into clear focus the immense human need for community and communication. CFTC has been gratified that its Pop- Up shows have enabled them to share stories and bring people together safely, and the process has deepened their own appreciation for the vital role of the arts and the joy of forging a bond between audiences and performers.”

Group Name: Breakthrough Project
Art Form(s): Visual, Music
Grant Request: $1,400.00
Project Expenses: $1,700.00
Previous Funding: 2022 – $1,000, 2021 - $1,300, 2020 - $1,300, 2019 - $1,075, 2018 - $1075, 2017 - $1075, 2016 - $1000, 2015 - $1,000, 2014 - $918
Project Name: “MLK Annual Celebration of Unity”
Project Date and Location: January 16, 2023 at First United Methodist Church (Tentative) – 200 W. Oak St. Lodi, CA 95240
Recommended for funding for 2022/23: YES Award: $1,400.00 Project Description: “BPSJ ’s 24th Celebration of Unity, a free community event honoring Dr.

Martin Luther King, Jr’s legacy will be held January 16, 2023. The theme chosen annually to represent issues of inclusion and diversity in Lodi; includes speakers, essay reading, music, and art.”
Benefit to the Community: “The annual MLK Celebration of Unity is free and open to the public. The primary benefit of the project is exposing the community to new viewpoints and increasing awareness”

Group Name: Lodi Community Art Center (LCAC)
Grant Requested for Four Projects: $5,524.00
Recommended for funding totals for 2022/23: YES to 4 out of 4 projects Award:
$5,524.00
Previous funding: 2021/22; $2,100 ( Juried Photography Show, $700; Youth Gallery and Program Renewal, $700; Advanced Art Classes, $700) 2020/21; $1950 (Online Gallery Shows, $700; Youth Art, $1,250) 2019/20; $2,500 (Juried Photography Show $1,000, Lodi Plein Aire Event, $1,500) 2018/19; 8,350 (Juried Photography Show, $1,250; Youth Programs, $1,500, A Exhibit A

- 2 -
Day in the Life, $1,600, The Art of LoCa Brochure, $4,000) 2017/18; $2,800 (Juried Photography Show $1,300; Youth Gallery and Scholarship, $1,500) 2016/17; $4,575 (Juried Photography Show, $1,025; Steam Team $1,025, Youth Gallery and Student Scholarships, $1,025. Speaker Series, $1,500); 2015/16: $4,100 (Juried Photography Show, $1,000; Speaker Series, $1,300; Youth Program, $1,000; Paint Lodi, $800); 2014/15: $3,250 (Youth Gallery and Student Scholarship, $1,250; Lodi Open Studio Tour, $1,000; Juried Photography Show, $1,000); 2013/14: $4,050 (Youth Gallery and Student Scholarship, $2,000; Juried Photography Show, $1,000; Paint Lodi, $900; Local Artists Awards, $900)

Project 1
Art Form(s): Visual Art Online
Grant Request: $1,500.00
Project Expenses: $4,300.00
Project Name: “Juried Photography Show”
Project Date and Location: October 2022 at Lodi Community Art Center – 110 W Pine St, Lodi, CA 95240
Recommended for funding for 2022/23: YES Award: $1,500.00 Project Description: “The “J uried Annual Photography Show” will sponsor and host a well, organized regional juried fine art photography show. The show will illustrate the importance of fine art photography as a creative art form.”
Benefit to the Community: “Our Juried Photography Show provides a local and regional opportunity for new and experienced photographers to show their current photographic work and to participate in a competition.”

Project 2
Art Form(s): Visual Art Online
Grant Request: $1,324.00
Project Expenses: $6,032.00
Project Name: “Youth Gallery and Classes”
Project Date and Location: Monthly 2022-2023 at Lodi Community Art Center – 110 W Pine St, Lodi, CA 95240
Recommended for funding for 2022/23: YES Award: $1,324.00 Project Description: “We want to step up the quality of their, (the students) experiences in showing work in the youth gallery. It’s wonderful that some parents come, see the show, and photograph children with their art. We’re going to add a certificate of appreciation for each student and a photo of the youth gallery wall for each class …” Benefit to the Community: “According to The Arts and Human Development, an abstract published by the National Endowment for the Arts, neuroscience research shows strong connections between arts learning and improved cognitive development; small comparison group studies revealing the arts contribute to school-readiness in early childhood; and longitudinal data analyses demonstrating positive academic and social outcomes for at risk teenagers who receive arts education.”

Project 3
Art Form(s): Visual
Grant Request: $1,500.00
Project Expenses: $5,450.00
Project Name: “Master Art Classes”

- 3 -
Project Date and Location: To be scheduled at Lodi Community Art Center – 110 W Pine St, Lodi, CA 95240
Recommended for funding for 2022/23: YES Award: $1,500.00 Project Description: “Adv anced workshop for local artists, bringing in artists that would normally have to travel to be able to take advantage of. Although some of the artists would be regional, our goal is to provide full day or multiple day workshops at reduced fee to Lodi artists.” Benefit to the Community: “We are all continuously learning and growing, providing art educational opportunities to allow participants to grow, explore new techniques, refine long forgotten techniques expand their participation in the arts.”

Project 4
Art Form(s): Visual Art
Grant Request: $1,200.00
Project Expenses: $6,175.00
Project Name: “Celebrate Lodi”
Project Date and Location: April, May or June 2023 at Lodi Community Art Center – 110 W Pine St, Lodi, CA 95240
Recommended for funding for 2022/23: YES Award: $1,200.00 Project Description: “The show will celebrate Lodi through art. The art show will be open to all artists and all ages of artists in the area. In this show we want to include paint, sculpture, mixed media and photography. Celebrating scenes of Lodi and the surrounding area. All work must be new and be representational. As part of this activity we will be setting 1-3 plein aire locations opportunities. Categories will include Downtown Lodi, Heritage District, Greater Lodi, Wineries, Greater San Joaquin County.”
Benefit to the Community: “Practicing arts and crafts can make kids more enthusiastic about other aspects of their lives. There is a positive effect it can have on kids with learning difficulties.

Social issues, or problems with self-esteem who find meaning and purpose in art. This event encourages this along with awareness of their community.”

RESOLUTION NO. 2022-____

A RESOLUTION OF THE LODI CITY COUNCIL
APPROVING FISCAL YEAR 2022/23 ARTS GRANTS
========================================================================

WHEREAS, the Lodi City Council allocated $39,060 in arts grants for Fiscal Year 2022/2023; and

WHEREAS, the Lodi Arts Commission recommends Council allocate $16,000 of the arts grants to the Lodi Arts Foundation in support of their Taco Truck Cook -off, First Friday Art Hop and miscellaneous community events and allocate the remaining $24,060 to local arts nonprofits to further the arts in Lodi; and

WHEREAS, grant applications were distributed to local nonprofit arts organizations with a submittal deadline of April 21, 2022. Three grant applications for six arts projects were submitted and screened by a Lodi Arts Commission review panel; and

WHEREAS, the three applications for the six projects were approved by the Lodi Arts Commission at their regular meeting on November 9, 2022; and

WHEREAS, grants were submitted for a total of $12,924 and $10,136 remains for future grants to be determined by the Commission.

Grants Submitted for Approval
Grant Requestor Grant Amount
Changing Faces Theater Company $6,000
Breakthrough Project $1,400
Lodi Community Arts Center (4 grants) $5,524
Remaining Potential Grants $10,136

NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby approve granting Changing Faces Theater Company, $6,000; Breakthrough Project, $1,400; and the Lodi Community Arts Center, $5,524, and allocate the remaining $10,136 for future arts grants during Fiscal year 2022/2023; and

BE IT FURTHER RESOLVED pursuant to Section 6.3q of the City Council Protocol Manual (Res. 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: December 7, 2022
======================================================================== I hereby certify that Res olution No. 2022- ____ was passed and adopted by the City Council of the City of Lodi in a regular meeting held December 7, 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-17

COUNCIL COMMUNICATION

APPROVE
D: ________________________________
Stephen Schwabauer, City Manager
AGENDA TITLE: Adopt Resolution Approving the Addition of the State of California 48 Megawatt Natural Gas Power Plant Project to the Capital Improvement Program, Approving Budget and Appropriating Funds ($4,300,000)
MEET
ING DATE: December 7, 2022
PREP
ARED BY: Budget Manager
RECOMMENDED ACTION: Adopt Resolution Approving the Addition of the State of California 48 Megawatt Natural Gas Power Plant project to the Capital Improvement Program, Approving Budget and Appropriating Funds ($4,300,000).

BACKGRO
UND INFORMATION: At the November 2, 2022 City Council meeting, Council adopted resolution 2022-269 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, 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).

Under spec
ial legislation approved by the Governor, the California Department of Water Resources proposes to construct a natural gas peaker plant within the City of Lodi to be run during emergency situations to protect the integrity of the statewide power grid. This plant will be owned and operated by the State of California for 5 years with an option for the City to purchase after 5 years. This plant will also benefit the City of Lodi in the event of a transmission capacity shortage until such time as the 230 kV Project is constructed and operational.

Planni
ng, design and construction of all electrical infrastructure, equipment and facilities to support completion of the plant is anticipated to cost $4,300,000 which will be fully reimbursed by the State.

FIS
CAL IMPACT: No net impact. The State of California will reimburse costs.

FUNDING
AVAILABLE: Appropriations are needed as follows:
50000000.
55020 (revenue) $4,300,000
50199000.77020 (expense) $4,300,000 as set forth in the attached Capital Improvement Project form.
__________
_____________________________
Andrew Keys
Deputy City Manager/Internal Services Director
Project Title: 280
Section I: Description District Nos: 1 Project Length 10/22‐6/23 Priority High Section II: Estimated Project Costs
Expenditure Prior Years FY 21/22
Estimate
FY 22/23
Budget
FY 23/24 FY 24/25 FY 25/26 FY 26/27 Future Yrs Total
Internal Staff -$ - $ 900,000$ 900,000$ Contracts - $ - $ 1,500,000$ 1,500,000$ Miscellaneous - $ - $ 1,900,000$ 1,900,000$ -$ -$
-$ -$
Total Capital Costs - $ - $ 4,300,000$ - $ - $ -$ -$ -$ 4,300,000$ Section III: Funding Sources/Methods o
Funding Source(s) Prior Years FY 21/22
Estimate
FY 22/23
Budget
FY 23/24 FY 24/25 FY 25/26 FY 26/27 Future Yrs Total
501 - EU Outlay Capital Reserve Fund -$ -$ 4,300,000$ 4,300,000$ -$ -$
Total Project Financing -$ -$ 4,300,000$ -$ - $ -$ -$ -$ 4,300,000$ Capital Improvement Plan
FY 2022‐2023
All costs incurred by the City will be reimbursed by the California Department of Water Resources up to $4.3 million.

Additional Information
Under special legislation approved by the Governor, the California Department of Water Resources proposes to construct a natural gas peaker plant within the City of Lodi to be run during emergency situations to protect the integrity of the statewide power grid. This plant will be owned and operated by the State of California for 5 years with an option for the City to purchase after 5 years. This plant will also benefit the City of Lodi in the event of a transmission capacity shortage until such time as the 230 kV Project is constructed and operational.

Justification/factor driving project
Planning, design and construction of all electrical infrastructure equipment and facilities to support completion of State owned and operated natural gas plant within the City of Lodi.Costs will also include any necessary administrative and outside consulting services.

State of CA Natural Gas Power Plant EUCP‐23002Munis Project Code:

RESOLUTION NO. 2022-____

A RESOLUTION OF THE LODI CITY COUNCIL APPROVING THE ADDITION OF THE STATE OF CALIFORNIA 48-MEGAWATT NATURAL GAS POWER PLANT PROJECT TO THE CAPITAL IMPROVEMENT PROGRAM;
APPROVING THE BUDGET; AND FURTHER APPROPRIATING FUNDS

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

WHEREAS, the Lodi City Council adopted Resolution No. 2022-269 on November 2, 2022 that authorized 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, 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); and

WHEREAS, City staff has determined that the planning, design and construction of all electrical Infrastructure, equipment and facilities to support completion of the plant is anticipated to cost $4,300,000; and

WHEREAS, the State of California will fully reimburse the City of Lodi for said costs; and

WHEREAS, staff recommends the inclusion of the project into the FY 2022/23 Capital Improvement Program, approving the budget, and appropriating $4,300,000 as follows:

50000000.55020 (revenue) $4,300,000
50199000.77020 (expense) $4,300,000

NOW, THEREFORE BE IT RESOLVED that the Lodi City Council does hereby authorize the addition of the 48-Megawatt Natural Gas Power Plant into the FY 2022/23 Capital Improvement Program, approve of the budget, and appropriate funds in the amount of $4,300,000 as set forth above.

Dated: December 7, 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 December 7, 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-18

COUNCIL COMMUNICATION

APPROVED
: ________________________________
Stephen Schwabauer, City Manager
AGENDA TITLE: Approve Lodi Tourism Business Improvement District (LTBID) 2021 Annual Report MEETI
NG DATE: December 7, 2022
PREP
ARED BY: Deputy City Manager
RECOM
MENDED ACTION: Approve Lodi Tourism Business Improvement District (LTBID) 2021 Annual Report.

BAC
KGROUND INFORMATION: On September 2, 2015, the City Council adopted Resolution 2015 -159 establishing the Lodi Tourism Business Improvement District (LTBID) for a five-year term, beginning October 2, 2015. On August 5, 2020, the City Council adopted Resolution 2020- 172 renewing the term through September 30, 2025.

Purs
uant to Lodi Municipal Code Chapter 12.07 and Streets and Highways Code Section 36600 et seq., also known as the “Property and Business Improvement District Law of 11994”, the Owners Association, identified in the resolution as the Lodi Conference and Visitors Bureau (Visit Lodi!), is required to present an annual report (Exhibit A) to the Council for each year in which assessments are to be levied and collected to pay the costs of the improvements and activities described within the report. Assessments total 4.5 percent of hotel rates in the City and 3 percent of hotels in Flag City.

For fiscal year 2022, Visit Lodi! Is not proposing any changes to the method and basis for levying the assessment or to the boundaries or assessed businesses within the LTBID.

FIS
CAL IMPACT: Funding for Visit Lodi! Generates additional funding for local merchants and the City as tourism dollars are spent locally.

FUNDING
AVAILABLE: Not applicable. The LTBID is funded by assessed lodging businesses. ______________________________
A
ndrew Keys, Deputy City Manager

AGENDA ITEM C-19

COUNCIL COMMUNICATION
APPROVED: ________________________________
Stephen Schwabauer, City Manager
AGENDA TITLE: Adopt Resolution Accepting the Fiscal Year 2020/21 Measure L Citizen’s Oversight Committee Annual Accountability Report and Accepting the Committee’s Recommendation to Create a One Page Flyer to Promote the Successes of Measure L MEETIN
G DATE: December 7, 2022
PREPA
RED BY: Deputy City Manager
RECOMM
ENDED ACTION: Adopt resolution accepting the Fiscal Year 2020 -21 Measure L Citizen’s Oversight Committee Annual Accountability Report and accepting the Committee’s recommendation to create a one page flyer to promote the successes of Measure L
BACKG
ROUND INFORMATION: Lodi Municipal Code Section 3.30.140 requires the City Council to cause preparation of an Annual Accountability report for expenditures of Measure L tax revenues received. The report is
required to include the following:
a. The amoun
t of revenue collected;
b. The amount and general purpose of expenditures made from this revenue by category LMC Sec
tion 3.30.150 (A) establishes the Measure L Citizens’ Oversight Committee and charges the Committee to “have the duty and responsibility to review the annual accountability report and report its findings to the City Council and the citizens of the City.”
The ini
tial draft of the attached report was presented to the Committee at its meeting on October 18, 2021. A revised draft was presented to the Committee at its meeting on January 24, 2022. At that meeting, the Committee recommended the report to the City Council for the Council’s acceptance at a future meeting.

Additionally, the Committee recommended the City Council approve creation of a one page bill insert to communicate to the citizens of Lodi the successes of the Measure L program in Fiscal Year 2020/21.

FISC
AL IMPACT: There is no fiscal impact from accepting the Annual Accountability Report or preparing the one page flyer. Total cost for printing the flyer for every utility account are anticipated to be less than $4,000. Mailing costs for one page inserts are included within the existing cost of mailing utility bills.

FUNDING
AVAILABLE: Funding for production of the one page flyer is included in the Fiscal Year 2021/22 budget.
_______________________________________
Andrew Keys
Deputy City Manager/Internal Services Director
easure
FISCAL YEAR 2021/2022

ANNUAL ACCOUNTABILITY REPORT
Measure L Citizen's Oversight
Committee Members
District 1 - Gary Woehl
District 2 - Terence Spring
District 3 - Vacant
District 4 - Waqas Dad
District 5 - Elisa Bubak
Measure L was passed by the voters in ,
Lodi in November of 2018. The text
printed on the ballot for Measure L was
as follows: To make neighborhoods safer,
maintain/improve essential City of Lodi
services including: reducing crime; maintaining neighborhood police patrol/gang violence intervention/prevention; fixing potholes/city streets; maintaining neighborhood fire stations; enhancing rapid police/fire response times by restoring firefighter and adding police positions; maintaining recreation facilities/programs; and other general fund purposes; shall the City of Lodi measure enacting an ongoing half cent local sales tax providing $5,400,000 annually, with independent citizen oversight, and funds spent locally. 1 Lodi Municipal Code 3.30.140 requires that the
City Council cause the preparation of an annual
accountability report (the "Report") to be reviewed
by the Measure L Citizens' Oversight Committee.

The Committee is responsible to review the
Report and present findings to the City Council.

This report represents information for Fiscal Year
2021 /2022. Expenditures for the report period
include those for fire, police, library, streets and
capital.

DRAFT
Fiscal Year 2021/22 Measure L Revenue
Coming out of the government mandated restriction phase of the COVID-19 pandemic, Fiscal Year 2021 /2022 saw significant economic growth. The strong demand for consumer goods, including auto sales, home improvement and general consumer goods continued. The latter half of the fiscal year saw inflationary price increases to an ex tent not seen in nearly four decades. From a tax revenue standpoint, any decrease in demand was offset by price increases paid by consumers so that the upward trend of Measure L revenue continued. For the year, revenue again exceeded expectations as the initial budget projection was for $7.7 million, the mid-year projection was in creased to $7.98 million and the final total for Fiscal Year 2021/2022 exceeded both at $9.2 million. The City's di verse base of mainstream retailers and strong consumer demand continued to support Measure L in Fiscal Year 2021/2022.

AB 147, which took effect April 1, 2019, required online retailers selling in excess of $500,000 of goods annually to register and pay sales tax. As a Transaction and Use tax, all goods ordered online and delivered to Lodi are subject to the half-cent Measure L tax with 100% of that tax revenue going to the City of Lodi. As on line sales increase, this legislation continues to have a significant impact on revenues. Additionally, Measure L received $5,670 in reim bursement from the ARPA program for COVID leave balances used by Police and Fire staff funded by Measure L.

Total Measure L revenue for Fiscal Year 2021 /2022 totaled $9,176,719. 2 DRAFT
Jable 1: Fiscal Year 2021/'l.0'12 Measure L Expenditures by category Beginning Fund Balance at July 1, 2021 *
Revenue
Public Safety Salary and Benefits.

PERS Unfunded Liability
Supplies. and Services.

Parks Support
Library Support
Jotal Expenditures
Revenue Less Expendftures
Fund Balance at June 30, 20'12
16%Reserve
Unreserved fund balance June 30, 2022
1,640,214
9,176,719
7,033,533
1,063,553
765,547
198,917
9,061,550
115,169
1,755,383
1,468,275
287,108
* Fiscal Year 2020/2021 ending fund balance was reported as $1,477,401, which was a net of $162,813 in open encumbrances at June 30, 2021. Al/ of those encumbrances were subsequently released leaving a July 1, 2022, Fiscal Year 2021/2022 opening fund balance of $1,640,214 as shown.

Fiscal Year 2021/2022 Measure L Expenditures by Category

2.20%
• Meausre l funds are nor used to pay unfunded
pension costs accrued from price yeas' service.
3 ■ Pu bli:: Scletv Salary and Benefits

77.62¾
■ PERS Unfunded Liabilty • 0%
■ Supplies and Services 11.74%
■ ParksSuppo rt 8.45%
■ Library Support 2.20%
DRAFT
Table 1 on the previous page shows revenues and expenditures and summarizes the Measure L fund balance as of June 30, 2022. Also included is a chart of expenditures by Category. The chart shows that nearly 78% of the Measure L resources were spent on Public Safety salary and benefits. Note that no Measure L funds are used toward PERS unfunded liability.

Fiscal Year 2021/2022 Expenditures by Service Type
■ Poice 55.20%
■ Fre 33.55%
■ Parks8.45%
■ Librarv" 2.20%
■ Misc:el�neous0.60%
lable 2: Fiscal Year 2021/2022 Measure L Expenditures by Service lype Police 55.20%
Fire 33.55%
Parks8.45%
Library 2.20%
Miscellaneous 0.60%
Total
5,002,418
3,040,037
765,547
19'8,917
54,631
9,061,550
Table 2 represents the expenditures by Service Type. Police expenditures totaled 55.2%; Fire 33.55%; Parks

8.45%; Library 2.2% and Miscellaneous 0.6%. For Fiscal Year 2021 /2022, Parks and Library received a signifi cant increase to support their operations. Parks support of capital increased from $80,000 to $400,000 while support for operations increased by $342,370. Library operations support increased by $113,920. 4 DRAFT
Fiscal Year 2021/2022 Measure L Expenditure Highlights
20 Police Officers
8 Firefighters
1 Librarian
• Parks Capital - including tree trimming
• Safety equipment and training to
support Police and Fire operations
A total of 29 full time and 6 part time positions were funded from Measure L during Fiscal Year 2021/2022. As a result of better than anticipated performance, Measure L funded all public safety overtime as well as their vehicle maintenance and fuel needs. Library was funded with a librarian as well as additional support for their operations.

For Fiscal Year 2021/2022, significant gains in tree trimming were made possible with Measure L funding. Over 530 trees were trimmed at Hutchins Street Square, Henry Glaves, Salas, Lodi Lake, Legion, Blakely parks to just name a few. Prior to the approval of Measure L, the City did not have a preventative tree maintenance funding program for park trees due to insufficient resources. Measure L is doing its part to improve parks and make them safer and more available to the public.
5 DRAFT
Fiscal Year 2021/2022 Fund Balance
The City's Fiscal and Budget Policies, adopted by the City Council, requires that the Measure L fund maintains a 16% fund balance requirement, similar to the requirements in the City's General Fund. For Fiscal Year 2021 /2022, the 16% reserve represents $1,468,275, which is fully funded as shown on Table 1. Fund balance reserves can be used at Council's discretion for additional programming or for operation expenses should future revenue receipts fall below expectations.

For the first time in 12 years, the Fiscal Year 2021 /2022 budget provided an increase in General Fund support to Parks, Recreation and Cultural services and to the Lodi Public Library. Measure L is the source of the in crease. Since Fiscal Year 2009/2010, the City has annually provided approximately $3.25 million to PRCS and $1.354 million to the Library for operational needs:Since that time, the Consumer Price Index (CPI-U) for all urban consumers had increased nearly 26%. PRCS and the Library have had to do more with less for that en tire time. In addition to no funding increase, the City has experienced a population increase over 10% and added over 76 acres of parks. In the Fiscal Year 2021/2022 budget, PRCS received $342,370 and Library re ceived $113,920 for much needed operational support that would have not been possible without Measure L.

In addition to the operational support, Measure L provided $400,000 for Parks Capital Improvement needs. It is anticipated that this level of funding can be sustained annually as the department works toward addressing over $20 million in park improvement needs. Each annual appropriation will need to be approved by City Council in the future as part of the annual budget process. 6 DRAFT
Fiscal Year 2022/2023 Budget
The Fiscal Year 2021 /2022 Measure L Accountability Report is focused on expenditures that have already occurred.

Lodi Municipal Code Section 3.30 (the "Ordinance") specifically limits the Citizens' Oversight Committee's role to the review of expenditures at the close of each fiscal year. The Committee has no role in budgeting or planning. How ever, it is important for the public to have knowledge of the direction City leaders have planned for the use of Measure L funds. The City Council adopted the Fiscal Year 2022/2023 budget at its June 1, 2022 regular meeting.

Tables 3 to 5 below provide detailed information on the proposed uses for Measure L in Fiscal Year 2022/2023.

Table 3: Fiscal Year 20n/2023 Measure· L Expenditur,es by Category I able 4: Fiscal Year 1.0ll./2023 Measure L Expenditures by Iype Category
Salary and Benefits
Supplies and Services
Operating Transfers
Homeless/Illegal Dumping,
Total
Fiscal Yeiar 2022/7.023 Budget !YE!g
7,059•,610 Police
349•,520 Fire
Parks 1,678,310
3l, 3 60 Li bra ry
Homeless/Illegal Dumping, 9,118,800
lotal
Fiscal Year 1.0'll./2023 Budget
4,275,400
3,429,470
1,045,250
337,320
31,360
9,118,800
Included in the expenditures in Table 4: Library is
receiving $233,060 for operational support, an increase of $119,140 over Fiscal Year 2021/2022, in addition to the support of a Librarian. PRCS is receiving $645,250, an
increase of $302,880 over Fiscal Year 2021/2022, in
addition to maintaining $400,000 for capital needs.

Funded projects include $200,000 for tree trimming,
$50,000 for tripping hazards at Hutchins Street Square
I.able 5: Fiscal Year 2022/2023 Measure L Funded Full-lime Positions and $50,000 for Peterson Park improvements. 7
Positions
Police Ofificers
Firefighters*
Librari.an
Street Maintenance Worke1
Fiscal Year 2022/2023 Budget

26.0 8.0

1.0 0.2
lotal l5.2
* $1. 7 million in overtime is included to fully staff all stations.

DRAFT
RESOLUTION NO. 2022-____

A RESOLUTION OF THE LODI CITY COUNCIL ACCEPTING THE
RECOMMENDATION OF THE MEASURE L CITIZENS’ OVERSIGHT
COMMITTEE TO APPROVE THE FISCAL YEAR 2020/21 MEASURE L

ANNUAL ACCOUNTABILITY REPORT AND CREATE A ONE-PAGE BILL

INSERT FLYER TO PROMOTE THE SUCCESSES OF MEASURE L
========================================================================

WHEREAS, Lodi Municipal Code Section 3.30.140 requires the City to prepare an Annual Accountability report (the “Report”) for expenditures of Measure L tax revenues received; and

WHEREAS, the Report is required to show the amount of revenue collected and the amount and general purpose of expenditures made; and

WHEREAS, Lodi Municipal Code Section 3.30.150 (A) establishes the Measure L Citizens’ Oversight Committee (the “Committee”) and charges the committee with review of the report and to present its findings to the citizens of the City and the City Council; and

WHEREAS, the first draft of the Report was presented to the Committee on October 18, 2021; and

WHEREAS, the Committee reviewed, discussed, and provided direction to staff on modifications to the report; and

WHEREAS, the second draft of the Report was presented to the Committee on January 24, 2022; and

WHEREAS, the Committee found the revised report to be sufficient to meet the obligations outlined in Lodi Municipal Code Section 3.30.140 and recommended its presentation to the City Council for approval; and

WHEREAS, the Committee recommended that the City Council consider a one-page flyer and bill insert to promote the successes of Measure L to Lodi citizens.

NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby accept the Fiscal Year 2020/21 Measure L Annual Accountability Report; and

BE IT FURTHER RESOLVED that t he Lodi City Council does hereby direct the City Manager to cause preparation of a one -page flyer and bill insert to communicate to the citizens of Lodi the successes of Measure L outlined in this report.

Dated: December 7, 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 December 7, 2022 by the following vote:

AYES: COUNCIL MEMBERS –

NOES: CO UNCIL MEMBERS –

ABSENT: COUNCIL MEMBERS –

ABSTAIN: COUNCIL MEMBERS –

OLIVIA NASHED
City Clerk
2022-____
AGENDA ITEM C-20

COUNCIL COMMUNICATION

APPROVE
D: ________________________________
Stephen Schwabauer, City Manager
AGENDA TITLE: Appoint Hector Soto as a Greater Lodi Area Youth Commission Adult Advisor and Peter Rosada to the Site Plan and Architectural Review Committee MEETING DATE: December 7, 2022
PREPARED BY: City Clerk
RECOMMENDED ACTION: Appoint Hector Soto as a Greater Lodi Area Youth Commission Adult Advisor and Peter Rosada to the Site Plan and Architectural Review Committee (SPARC).

BACKGRO
UND INFORMATION: The City Council directed the City Clerk to post for a vacancy for an Adult Advisor for the Greater Lodi Area Youth Commission on October 5, 2022, and for a vacancy on SPARC on October 19, 2022.

The Mayor reviewed the applications, conducted interviews, and recommends the City Council concur with the appointments as detailed below.

APPOINTMENTS:

Greater Lodi Area Youth Commission – Adult Advisor
Hector Soto Term to expire May 31, 2026
Site P
lan & Architectural Review Committee
Peter Rosado Term to expire January 1, 2027
FIS
CAL IMPACT: Not applicable.

FUNDIN
G AVAILABLE: Not applicable.
_______________________________
Ol
ivia Nashed
City Clerk
AGENDA ITEM C-21

COUNCIL COMMUNICATION

APPROVE
D: ________________________________
Stephen Schwabauer, City Manager
AGENDA TITLE: Adopt Resolution Modifying the “Protocol Account” Policy to Increase the Expenditures Limit Made From City “Protocol Account”
MEETI
NG DATE: December 7, 2022
PREP
ARED BY: City Clerk
RECO
MMENDED ACTION: Adopt resolution m odifying the “Protocol Account” Policy to i ncrease the expenditures limit made from City “Protocol Account” by increasing it from $1,000 to $1,500.

BACKGRO
UND INFORMATION: On July 19, 2000, the City Council adopted Resolution No. 2000-126 approving the current policy regarding the City’s “Protocol Account.” This Resolution requires the imposition of “a $1,000 ceiling for expenditures made from the City’s ‘Protocol Account,’ above which would require specific City Council approval by placing the item on a regular City Council agenda…”
Due to inc
reasing costs over the past 22 years , inflation, as well as COVID-19 impacts, fees have increased dramatically since the initial adoption of the City’s “Protocol Account.” Therefore, the City Clerk’s Office requests the City Council adopt a resolution repealing and replacing Resolution No. 2000-126 to amend the Protocol Policy to increase the ceiling for expenditures from $1,000 to $1,500.

FIS
CAL IMPACT: Varies depending on event or expenditure. Overall budgeted amount for the account will be approved by City Council with the annual budget.

FUNDIN
G AVAILABLE: Protocol Account – 10005000.72355.
_______________________________________
Andr
ew Keys
Deputy City Manager/Internal Services Director
________________________________________
Oli via Nashed
City Clerk
RESOLUTION NO. 2022-____

A RESOLUTION OF THE LODI CITY COUNCIL REPEALING AND REPLACING RESOLUTION NO. 2000-126 THEREBY AMENDING THE CITY’S
“PROTOCOL ACCOUNT” POLICY
========================================================================

WHEREAS, the City Council approved the adoption of the “Protocol Account” policy in Resolution No. 2000-126, on July 19, 2000; and

WHEREAS, the “Protocol Account” policy imposed a $1,000 limit on expenditures; and

WHEREAS, costs have significantly increased within the past 22 years, especially with inflation and impacts due to COVID-19; and

WHEREAS, the City Clerk’s Office now requests the City Council increase the Protocol Account ceiling for expenditures from $1,000 to $1,5000; and

WHEREAS, the updated policy for the “Protocol Account” shall be as follows:

• The City shall have a “Protocol Account” for expenses related to such occasions as Council receptions and business luncheons, joint dinner meetings with various agencies and organizations, and supplies associated with Mayoral duties (e.g. plaques and awards, sympathy and congratulation tokens, etc.); and

• Impose a $1,500 ceiling for expenditures made from the City’s “Protocol Account,” above which would require specific City Council approval by placing the item on a regular City Council agenda. The staff report should include justification for the event, a summary of who the invited guests will include, and an itemized estimation of the costs to be incurred; and

• A monthly itemized report of the Protocol Account shall be provided to the City Council.

NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby repeal and replace Resolution No. 2000- 126 and adopt the modified City of Lodi Protocol Account policy as set forth above.

Date: December 7, 2022
======================================================================== I hereby certify that Resolution No. 2022-__ was passed and adopted by the Lodi City Council in a regular meeting held December 7, 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-01

COUNCIL COMMUNICATION

APPROVED
: ________________________________
Stephen Schwabauer, City Manager
AGENDA TITLE: RECEIVE AND FILE CITY’S ANNUAL COMPREHENSIVE FINANCIAL REPORT (FISCAL YEAR 2021/22) BY THE PUN GROUP
MEETI
NG DATE: December 7, 2022
PREP
ARED BY: Accounting Manager
RECOM
MENDED ACTION: Receive and file City’s Annual Comprehensive Financial Report submitted by The Pun Group, LLP and the Internal Services Department for Fiscal Year 2021/22.

BAC
KGROUND INFORMATION: The annual audit was conducted to assure the City Council and other interested parties that the City’s financial records and reports are prepared in accordance with generally accepted accounting principles (GAAP), that internal controls are adequate to safeguard the City against loss from unauthorized use or disposition of assets and that the City has compiled with all agreements and covenants to obtain grant funds and debt financing. The Pun Group, LLP issued an “unqualified opinion.” Vanessa Burke, Managing Partner of the Pun Group, LLP and Kenneth Pun, Managing Partner of the Pun Group, LLP will be present over zoom to answer questions during the Council meeting.

The
reports will be provided to federal and State oversight agencies, bond trustees and insurance companies for their review and evaluation. Copies of the reports are provided to the City Council and also available to the public by contacting the Financial Services Division or the City’s website at www.lodi.gov and at the Lodi Public Library.

The
City received a Certificate of Achievement for Excellence in Reporting from the Government Finance Officers Association of United States and Canada (GFOA) for the 29th year. A copy of the GFOA certificate is included in the 2021/22 financial reports.

FIS
CAL IMPACT: By law and good management practice, the City’s financial records are audited by independent auditors according to Generally Accepted Auditing Standards. Well-maintained financial records are the cornerstone by which the City fulfills its fiduciary responsibilities to the public.

FUNDING
AVAILABLE: Not applicable.
_______________________________________
Andr
ew Keys
Deputy City Manager/Internal Services Director

________________________________________
Melissa Munoz, Accounting Manager
ANNUAL

COMPREHENSIVE

FINANCIAL REPORT
F o r t h e Y e a r E n d e d
J u n e 3 0 , 2 0 2 2

(This page intentionally left blank.)

MARK CHANDLER, MAYOR, DISTRICT 2

MIKEY HOTHI, MAYOR PRO TEMPORE, DISTRICT 5
SHAK KHAN, COUNCIL MEMBER, DISTRICT 4
DOUG KUEHNE, COUNCIL MEMBER, DISTRICT 3
ALAN NAKANISHI, MAYOR, DISTRICT 1

STEVE SCHWABAUER, CITY MANAGER

Prepared by the Financial Services Division
Melissa Munoz, Accounting Manager
Robin Xiang, Supervising Accountant

(This page intentionally left blank.)
Introductory
Section
(Unaudited)

(This page intentionally left blank.)

TTAABBLLEE OOFF CCOONNTTEENNTTSS
Page

INTRODUCTORY SECTION (UNAUDITED)
Table of Contents...................................................................................................................................................... i Letter of Transmittal ................................................................................................................................................. iii Certificate of Achievement for Excellence in Financial Reporting ......................................................................... xiv City of Lodi Organization Chart ............................................................................................................................... xv Mayor and Council ................................................................................................................................................... xvi Advisory Bodies and Directory of Officials ............................................................................................................. xvii

FINANCIAL SECTION
Independent Auditor’s Report ................................................................................................................................. 1 MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED) ....................................................... 5 BASIC FINANCIAL STATEMENTS ............................................................................................................ 15 Government-Wide Financial Statements ............................................................................................................ 17 Statement of Net Position .............................................................................................................................. 19 Statement of Activities .................................................................................................................................. 20 Fund Financial Statements ................................................................................................................................. 23 Balance Sheet – Governmental Funds ........................................................................................................... 27 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position .................... 28 Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds ................... 29 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities ...................................................................................... 30 Statement of Net Position – Proprietary Funds .............................................................................................. 31 Statement of Revenues, Expenditures, and Changes in Net Position – Proprietary Funds ............................ 33 Statement of Cash Flows – Proprietary Funds ............................................................................................... 35 Statement of Fiduciary Net Position – Private – Purpose Trust Funds .......................................................... 39 Statement of Changes in Fiduciary Net Position .......................................................................................... 40 Notes to Basic Financial Statements .................................................................................................................. 41 REQUIRED SUPPLEMENTARY INFORMATION (UNAUDITED) ....................................................... 95 Schedule of Changes in Net Pension Liability and Related Ratios – Miscellaneous Plan........................................ 97 Schedule of Changes in Net Pension Liability and Related Ratios – Safety Plan ......................................... 99 Schedule of Pension Contributions ................................................................................................................ 101 Schedule of Changes in Net OPEB Liability and Related Ratios .................................................................. 103 Schedule of Employer OPEB Contributions .................................................................................................. 104 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual – General Fund ................................................................................................................................................. 106 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual – Streets Fund ................................................................................................................................................... 107 Note to the Required Supplementary Information ......................................................................................... 108 COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES ..................................... 109 Nonmajor Governmental Funds..................................................................................................................... 111 Combining Balance Sheet – Nonmajor Governmental Funds ....................................................................... 113 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances – Nonmajor Governmental Funds ...................................................................................................................................... 114 Nonmajor Governmental Funds – Special Revenue Funds ........................................................................... 115 Combining Balance Sheet – Nonmajor Governmental Funds – Special Revenue Funds .............................. 116 i

TTAABBLLEE OOFF CCOONNTTEENNTTSS
Page
Combining Statement of Revenues, Expenditures, and Changes in Fund Balance – Nonmajor Gove
rnmental Funds ...................................................................................................................................... 118 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual – Nonmajor Governmental Funds – Special Revenue Funds:

Parks, Recreation, and Community Services Fund .................................................................................. 120 Public Safety Fund ................................................................................................................................... 121 Community Development Fund ............................................................................................................... 122 Transportation Fund ................................................................................................................................. 123 Special Assignments ............................................................................................................................... 124 HOME Program and Community Development Block Grants Fund ...................................................... 125 Nonmajor Governmental Funds – Capital Project Fund .......................................................................... 127 Combining Balance Sheet – Nonmajor Governmental Funds – Capital Projects .................................... 129 Combining Satement of Revenues, Expenditures, and Changes in Fund Balances – Nonmajor Governmental Funds – Capital Projects .................................................................................................. 131 Internal Service Funds ............................................................................................................................. 133 Combining Statement of Net Position – Internal Service Funds ............................................................. 135 Combining Statement of Revenues, Expenditures, and Changes in Net Position – Internal Service Funds ....................................................................................................................................................... 136 Combining Statement of Cash Flows – Internal Service Funds............................................................... 137 Fiduciary Funds ....................................................................................................................................... 139 Combining Statement of Fiduciary Net Position – Private – Purpose Trust Funds ................................. 141 Combining Statement of Changes in Fiduciary Net Position – Private – Purpose Trust Funds .............. 142

STATISTICAL SECTION (UNAUDITED)
Government-Wide Information:

Net Position by Component – Last Ten Fiscal Years .......................................................................... 146 Changes in Net Position – Last Ten Fiscal Years ................................................................................ 147 Fund Information:

Fund Balances, Governmental Funds – Last Ten Fiscal Years ........................................................... 149 Changes in Fund Balances of Governmental Funds – Last Ten Fiscal Years ..................................... 150 Tax Revenues by Source, Governmental Funds – Last Ten Fiscal Years .............................................. 151 Assessed Value and Estimated Actual Value of Taxable Property – Last Ten Fiscal Years .................. 152 Direct and Overlapping Property Tax Rates – Last Ten Fiscal Years .................................................... 153 Principal property Taxpayers – Current Year and Nine Years AGo ...................................................... 154 Property Tax Levies and Collections – Last Ten Fiscal Years ............................................................... 155 Electricity Sold by Type of Customer – Last Ten Fiscal Years .............................................................. 156 Ratios of Outstanding Debt by Type ...................................................................................................... 157 Ratios of General Bonded Debt Outstanding – Last Ten Fiscal Years ................................................... 158 Legal Debt Margin Information – Last Ten Fiscal Years ....................................................................... 159 Direct and Overlapping Governmental Activities Debt .......................................................................... 160 Pledged-Revenue Coverage – Last Ten Fiscal Years ............................................................................. 161 Demographic and Economic Statistics – Last Ten Fiscal Years ............................................................. 162 Principal Employers – Current Year and Nine Years Ago ..................................................................... 163 Full-Time Equivalent City Government Employees by Department – Last Ten Fiscal Years ............... 164 Operating Indicators by Function/Program/Department – Last Ten Fiscal Years .................................. 165 Capital Asset Statistics by Function/Program/Department – Last Ten Fiscal Years .............................. 167 ii

CITY COUNCIL
Mark Chandler, Mayor
Mikey Hothi, Mayor Pro Tempore
Shak Khan
Doug Kuehne
Alan Nakanishi
Step
hen Schwabauer
City Manager
Olivia Nashed
City Clerk
Janice D. Magdich
City Attorney
December 7, 2022
Honorable Mayor, Members of the City Council:

I am
pleased to present the City’s Annual Comprehensive Financial Report (ACFR) for the fiscal year (FY) ended June 30, 2022.

State law requires that every general purpose local government publish, within six months of the close of each fiscal year, a complete set of audited financial statements. This report fulfills that requirement for the fiscal year (FY) ended June 30, 2022.

Manage
ment assumes full responsibility for the completeness and reliability of the information contained in this report, based upon a comprehensive framework of internal control that it has established for this purpose. Because the cost of internal control should not exceed anticipated benefits, the objective is to provide reasonable, rather than absolute, assurance that the financial statements are free of any material misstatements.

The data in this report is presented in a manner that is designed to fairly set forth the financial position and results of operations of the City of Lodi (the City). It contains the disclosure necessary to promote in-depth understanding of the City’s financial affairs and evaluate its financial condition.

The City’s financial statements have been audited by The Pun Group, LLP located in Walnut Creek, California. The independent auditors concluded, based on their audit, that there was a reasonable basis for rendering an unmodified (or “clean”) opinion that the City of Lodi financial statements for the fiscal year (FY) ended June 30, 2022 are fairly presented in conformity with generally accepted accounting principles. The independent auditor’s report is the first item presented in the financial section of this report.

In addition to the financial audit, each year the City is required to undergo an audit of federal grant expenditures. That report is commonly referred to as a Single Audit report and is issued as a separate document and is not included herein. The Single Audit report includes the Schedule of Expenditures of Federal Awards, Findings and Recommendations, and an auditor’s report on the internal control structure and compliance with applicable laws and regulations.

The pr
ovisions of Governmental Accounting Standards Board (GASB) State 34, “Basic Financial Statements-and Management’s Discussion & Analysis” (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with the MD&A, which can be found immediately following the report of the independent auditors in the financial section of the ACFR.

Profile of the City of Lodi
The City of Lodi, was incorporated December 6, 1906, as a municipal corporation under the general laws of the State of Californi
a. The City of Lodi is located on the northern boundary of San Joaquin County. The City of Lodi is a General Law City and has the power to make and enforce ordinances and regulations with respect to municipal affairs to the extent expressly permitted or implied by the California constitution or specific legislation. The City government is organized under the Council-Manager form of government. The five-member City Council is elected by district by its voters for overlapping four- year terms, with no term limits. Each year the Mayor and Mayor Pro-Tempore are chosen by the members of the City Council. The Mayor presides at Council meetings and acts as the ceremonial head of the City, the Mayor Pro Tempore serves as Mayor in his or her absence. The City Manager is responsible for carrying out the policies and ordinances of the City Council, for appointing department heads, and overseeing the operations of the City. The City Manager, City Attorney and the City Clerk are appointed by the City Council.

The City Council is responsible for adopting the budget on or before June 30 each fiscal year. The level of budgetary control (that is, the level at which expenditures cannot legally exceed the appropriated amount) is maintained at the fund level. The iii
City
Manager is responsible for the preparation of the budget and its implementation after adoption. The City Council has the authority to amend the budget at any time during the year. The City Manager may transfer resources within a fund.

Supplemental appropriations and budget transfers between funds and projects, however, need approval from the City Council. During fiscal year 2021-22, the City Council and City Manager made several supplemental appropriations for operating budgets and capital projects.

The City, with 421 full time equivalent employees, provide a wide rant of services to a residential population 66,750. These service include public protection (police and fire), public utilities services (electric, water, and wastewater), public works, transit services, parks and recreation, library, community development, and general government (City Manager, City Clerk, City Attorney, human resources, information systems, financial services, and budget and treasury).

The City is also financially accountable for the following legally separate reporting entity the Lodi Public Financing Authority (LPFA), which are reported within the City’s financial statements as a blended component unit. Additional information on this legally separate entity can be found in the notes to the financial statements (see Note 1A).

Local Economy
The information presented in the financial statements is perhaps better understood when it is considered from the broader perspective of the specific environment within which the City operates.

The City of Lodi is located in California’s fertile San Joaquin Valley, adjacent to State Highway Route 99, between Stockton, 10 miles
to the south, and Sacramento, 35 miles to the north. The City population is estimated at approximately 66,750 and is contained in an area of 13.98 square miles. The City has grown steadily since incorporation in 1906. The City’s growth is provided for in both the General Plan and the City’s Growth Management Allocation Ordinance that allows an increase in population of 2% per year until the growth limits are reached.

The City is built on a strong and diverse local economy. Lodi is best known for its Zinfandel wines; however, Lodi is an authentic and dynamic wine region with more than 80 wineries within 10 miles of downtown. The City’s employment base is just as diverse with industry that includes agribusiness, biotechnology, distribution, food and beverage product manufacturing, general service, government, health care, heavy manufacturing, and of course, wine based tourism and lodging.

In addition, the City has a wide range of small, financially sound businesses that add to the economic strength of the City.

These companies range in size from approximately 10 to 3,500 employees and produce a wide variety of products, services and commodities.

The City is growing. Over the last few years it has seen significant new commercial, industrial and residential development projects come to fruition. The past few years have seen an average 230 new single family homes constructed and sold. The City has entitled and granted growth allocations for more than 1,000 residential lots, providing for consistent residential growth over the next four to five years. The City’s first 100 percent affordable housing complex has been approved and will add 12 units of much needed housing. The State of California passed several laws that encourage infill growth which has prompted several new Accessary Dwelling Units as well as a couple of parcel splits that would not have been allowed under our existing codes at the time and should prompt additional affordable living options for our most vulnerable citizens. Two separate apartment projects are under way and will add 432 market rate units to the south west area of Lodi. The City continues to see significant investment in expanding existing commercial developments with over 300,000 square feet of high tech manufacturing having been added to the City. All this activity is a positive indicator for the City moving forward. The update of the Municipal Service Review (MSR) document and the Sphere of Influence (SOI) will continue to allow the City to grow in a reasonable manner. The City’s focus on economic development, compact development and quality of life has encouraged these investments within the City, collectively creating hundreds of new employment and housing opportunities.

The most pressing budget and financial challenge facing the City is the California Public Employees’ Retirement System (CalPERS) funding crisis. Since 2017, the City has taken on this problem aggressively through a Pension Stabilization Funding Policy that requires unassigned reserves in excess of the General Fund target be invested at Public Agency Retirement System (PARS) in an IRS section 115 irrevocable trust known as a Pension Rate Stabilization Program (PRSP), mandatory Additional iv
Discr
etionary Payments to CalPERS and the City has negotiated significant employee cost sharing of current pension obligations. The City has amassed approximately $21 million in the stabilization fund to offset future pension costs. Non General Funds must contribute their proportional share to the trust as well. Lodi’s General Fund revenues performed exceptionally well during fiscal year 2021-22, resulting in significantly better than expected results. Substantial additional contributions to the PRSP will be at what is estimated to be the highest annual level since the policy was adopted. More details can be found in the Economic Factors and Next Year’s budget section of the Management’s Discussion and Analysis in this report.

Measure L, the City’s general purpose sales tax approved by voters in 2018, continues performance above expectations.

Measure L was consistently presented as a means to “Maintain and Enhance” City services. The Council honored the enhanced portion of that promise, by adding six new police officers and three new firefighters to fully fund Engine One, and constructing a significant share of Candy Cane Park. More details can be found in the Economic Factors and Next Year’s Budget section of the Management’s Discussion and Analysis in this report.

Economic Development
To ensure the City of Lodi is prepared to participate in the rapidly changing economic trends, and remain a destination of choice for residents, visitors, talent and investment for years to come, the City of Lodi is exploring residential, commercial and public investment opportunities. Located just under an hour’s drive from Sacramento, and less than a two-hour drive from the San Francisco Bay Area, Lodi is a small city alternative for talent looking for a more relaxed California lifestyle.

The City of Lodi is a city of many cultures, skill levels and political and social orientations; yet its citizens are inspired by a shared vision and the certainty that this city of the north Central Valley is special. Lodi, deep-rooted in California’s wine country is best known for its full-bodied Old Vine Zinfandel wines. The area has 100,000 acres of wine grapes farmed by over 750 growers. Major wineries that call Lodi home are Robert Mondavi Woodbridge, Michael David, Turner Road Vintners, Sutter Home Winery, Bear Creek Winery and Oak Ridge Winery. More than 60 leading California wineries buy grapes from our region including E&J Gallo, Constellation, Fetzer, Delicato, Napa Ridge, Ravenswood and Beringer.

In recent decades, Lodi’s agricultural roots have evolved. Lodi has developed an emerging concentration of related manufacturing businesses who depend on reliable and affordable electric power, ample water, efficient transportation, affordable real estate, and access to markets to control costs and prosper.

In addition to the robust viticulture, Lodi’s economic drivers include manufacturers of rapid molecular diagnostic systems, consumable plastics for use in research laboratories, the world’s largest manufacturer of foam cups and disposable containers, and food manufacturing. Over the next five years, the compound annual growth rates of these industries are estimated to be 11.1 percent, 11.2 percent, 9.5 percent and 15.26 percent, respectively. 1 Key Demographic, Industry and Economic Data
Lodi’s population is expected to grow 5.7 percent between 2021 and 2026. In the same time period, its labor force is expected to grow by 7.3 percent. Out of 2,510 total business establishments in Lodi, the top industries by number of establishments in 2021 are health care and social services (329), retail (324), education (67), and manufacturing (324).

In terms of 2021 annual revenue generation, the top five industries in Lodi include wholesalers ($2.7 billion), retail ($1.3 billion), manufacturing ($1.02 billion), healthcare and social services ($653.6 million), and banking, finance and insurance ($389.6 million). Construction is a close sixth top industry in terms of sales revenue generation ($336.6 million).

In 2021, the highest paid employment sectors in terms of mean annual wages include management ($116,050), legal occupations ($109,060), healthcare practitioners ($103,280) and architecture and engineering occupations ($92,300).

Construction occupations earned a mean annual wage of $42,250 while production occupations earned $42,250.

Industry clusters are groups of inter-related industries that drive wealth creation in a geographic region. These are companies, suppliers, and service providers that support one another. Lodi’s target industry clusters are identified as 1 www.stern.nyu.edu retrieved August 11, 2022
v
agric
ulture/agriculture technology, food processing, healthcare, biotech/biosciences, high-tech manufacturing and logistics.

In 2021, the total number of establishments in these clusters are 83, 7, 47, 39, 4 and 55 respectively.

In 2021, households in Lodi earned a median yearly income of $64,283. This median household income is expected to increase by 15.3 percent by 2026 to $74,093. However, the 2021 median income is 10 percent less than the median county income, 22 percent less than the state income, and 5 percent less than the nation. Household expenditures average $63,537 per year, and the majority of earnings get spent on shelter, transportation, food and beverages, health care and utilities.

In June 2022, Lodi home prices were up 24.5 percent compared to last year. According to Coldwell Banker, the median price of a home in Lodi in June, 2022 is $599,000.

Lodi is a large submarket relative to the national average and contains about 12.6 million square feet of industrial space.

Logistics facilities account for the largest proportion of the local supply, or 7.4 million square feet. Industrial rents are slightly above the metro average, and the 12-month rent growth is 8.4 percent which is above the 7.4 percent average growth over the last ten years. The vacancy rate has declined over the past year from 2.4 percent to 1.4 percent. 2 Multi-family investors have been active in the Lodi submarket over the past three years. While new supply will remain under demand in the near-term, the asking rent has increased an average of 5.2 percent over the last 12 months. 3 Lodi Entrepreneur and Business Indicators
Economic and business indicators which provide data at the city level are not abundant. Most data from traditional sources like the U.S. Census Bureau and U.S. Department of Labor assemble and publish data at the MSA and county level. However, entrepreneurial activity in Lodi as measured by the US Patent Office reveals that from January 2017 to August 2020, 151 patent applications were received from inventors in Lodi. Out of the number of applications received, 27 patents were granted consisting of both design and plant production patents. The patents range from universal vineyard tillage and spray carrier to installation guard for overhead utility lines, and from cherry trees with specific names to an endothermic syringe sleeve. The range of patents issued align with Lodi’s targeted industry clusters.

From 2018 to 2020, Pitchbook reported that $10.87 million in venture capital had been deployed in Lodi. At the time of this writing, data for 2021 is not available.

SBA lending activity in Lodi has increased. In the period, 2017-2019, small business lending was $34.7 million. In the period, 2020-2022 to date, SBA lending activity was $48.1 million which represents an increase of 38.6 percent. This lending provided 44 loans, preserved 414 jobs and created 93 jobs. 4 “Cities, states and metropolitan areas face an unprecedented economic, demographic, fiscal and environmental challenges that make it imperative to ensure modern, efficient and reliable infrastructure. Concrete, steel and fiber-optic cable are the essential building blocks of the economy. 5
The City of Lodi’s fiscal year 2021-2025 Capital Improvement Budget is $108.8 million. This represents an expenditure of $1,578 per capita in public infrastructure spending keeping pace with capital improvement spending in Modesto, Manteca, Lathrop, and Roseville. Stockton’s capital improvement budget includes the Port of Stockton and airport spending, and is not included.

In 2021, the City of Lodi launched Phase I of its fiber optic upgrade and expansion project. Phase I will rebuild the existing backbone of the City’s obsolete fiber optic network. This investment will cost approximately $1 million. Future phases will expand the fiber network to the industrial and residential customer. 2 www.costar.com Industrial Outlook Lodi Submarket Report, August 2022 3 www.costar.com Multi-family Outlook Lodi Submarket Report, August 2022 4 Small Business Administration Lending Report, Lodi, CA August 2022 5 Robert Puentes “Why Infrastructure Matters: Rotten Roads, Bum Economy” Brookings Institute, Tuesday, January 20, 2015 vi
Lodi’
s Market Strengths and Economic Assets
In addition, to increasing population, projected growth in Lodi’s labor force, projected growth in target industries, other market strengths serving to attract investment to Lodi includes direct transportation access to major state and interstate corridors, rail access, and adjacency to cargo-centric Stockton Regional Airport and Sacramento International Airport and Port of Stockton. These strengths provide for proximity to markets and proximity to a highly functioning supply chain.

Lodi owns its own electric utility (LEU) providing highly reliable power, affordable rates, economic development incentives, personal customer service, and a highly responsive city government. In fiscal year 2021-22, the governing body, the Lodi City Council, authorized $3 million in reserves to be used to provide residential and commercial electric customers with financial relief during the pandemic. In addition, the City Council recently authorized the use of financial reserves to offset the high cost of power attributable to inflation, fuel shortages and supply chain complexities. While electric rates stayed the same, the financial reserves were applied to “buy-down” the Energy Cost Adjustment (ECA) factor which reflects fluctuations in a customer’s bill due to monthly variations in the cost of power and transmission.

The City Council recently authorized the formation of a Hometown Microloan program by allocating $470,000 to provide entrepreneurs and micro businesses with 10 or fewer employees with loan products ranging from equipment loans to working capital, and from life and safety improvements to inventory. The Economic Development Division staff is currently in the planning stages of this program to include local lenders, and the region’s new Small Business Development Center. The anticipated launch of the new program is January 2023. Of particular emphasis will be downtown reinvestment.

Lodi’s Challenges
A primary business location factor today is workforce. While Lodi’s market strengths support the commercial and industrial sector, the supply of a skilled talent pipeline is a major concern. However, the education attainment is projected to increase among Lodi residents. By 2026, the number of residents with some college is expected to increase 6.8 percent, the number of residents with an Associate’s degrees is expected to increase by 6.8 percent, the number of residents with a Bachelor’s degree is expected to increase by 6.75 percent and the number of residents with a graduate degree is expected to increase by

7.1 percent. 6
Within a 50-mile radius, there are three major universities, and one two-year college. In 2021, the University of California- Davis produced 11,708 graduates; California State University-Sacramento produced 8,250 graduates, University of the Pacific conferred 2,070 degrees, and San Joaquin Delta College conferred 4,905 degrees. 7 The IHUB San Joaquin is a consortium of business, government, education and non-profits dedicated to the stimulation of economic growth, creation of new jobs, nurturing entrepreneurship and emerging technologies and increasing the region’s preparedness among youth in three areas: health care, agri-business and sustainable construction technology. It hosts events and programs to connect youth to business, youth to technology, business to local technology, and business to local talented youth. Members and advisory committee of the IHUB San Joaquin include but are not limited to Lodi Unified School District, San Joaquin County WorkNet, San Joaquin Health Department, municipalities in San Joaquin County, including the City of Lodi, San Joaquin Delta Community College, San Joaquin Building Trade Council, and private sector stakeholders.

Catalytic Investments
More than $502.4 million in private investment will be invested within the city limits between 2014 and 2024. Supporting this private investment is $87.5 million in public investment in public infrastructure during the same timeframe. In Lodi’s industrial sector east of SR-99, Cepheid, a rapidly-growing manufacturer of molecular diagnostic systems, has completed the addition of 175,000 of new production space and plans to add over 2,500 new jobs in Lodi by 2024. The investment capital added is $250 million.

Not far from the Cepheid location in the industrial park, El Gallo, a 20,683 square foot modern food truck commissary and shopping experience, is currently under construction. With an estimated completion in 2023, the project will add $8.0 million in new capital to Lodi.
6 GIS Planning Economic Development Database retrieved August 13, 2022 7 GIS Planning Economic Development Database retrieved August 13, 2022 vii
In t
he Northeast, the City has been anticipating the start of The Lakehouse, a high value mixed-use of hospitality, retail and residential valued at $65 million. The environmental review stage is nearing completion. The projected completion date is 2024.

On the City’s south side, a new Residence Inn at Reynolds Ranch has broken ground and construction is underway. When completed, the new hotel will add $13.4 million in new capital.

To the west, a new 108-unit market-rate apartment complex has broken ground in 2022. The Benjamin, when completed, will add over $30 million in investment capital. The anticipated completion date is late 2023.

A second market-rate apartment complex, 12 West Apartments has just completed plan review. Located at the intersection of Kettleman Lane and Westgate Avenue, the plan features a six (6) multi- storied apartment building, clubhouse and all related site work.

Small Business
In 2021, the City Council approved a number of recommendations of the City’s first Development Prospectus to sustain business and stimulate greater stability and growth for Lodi small business. These recommendations included the development of small business incentives, development of a partnership with the Small Business Development Committee (SBDC) to prepare entrepreneurs and small business for servicing investment capital (debt), and to expand on the current Brownfield Program to include market studies and to investment in the provision of economic, labor, demographic and industry data sources to provide interested investors and site selectors in Lodi as a location to deploy investment capital.

These recommendations became goals of the Economic Development Division. To date, significant progress has been made.

Plans are underway to create a Hometown Microloan Program to entrepreneurs and small business with ten or fewer employees. To this end, the City Council allocated $470,000 as seed funds. Staff is currently developing the program and is in the process of forming partnerships with local lenders to increase this loan fund thereby providing greater capacity for lending. The SBDC will provide pre-screening of applicants, aid in forming business plans and proformas, and prepare applicants to become credit-worthy. Other local partnerships will be developed for loan origination and servicing.

In order to assure hometown business loans are met, Economic Development staff will survey small business in 2022 to determine demand.

The current Brownfields program funded a preliminary highest and best use study of a group of city-owned properties in the Heritage District near downtown for reuse beginning in 2021 and completed in early 2022. The study evaluated the conversion of the City’s recreation and parks maintenance facility and related offices, and vacant property into a mixed-use development anchored by an indoor aquatics’ facility. Staff is currently reviewing future steps.

A comprehensive GIS-based economic development search and analysis tool has been placed on the City’s website, and is accessible to internal and external stakeholders for research purposes

MAJOR GOALS, OBJECTIVES AND PROJECTS
To assist the citizens of the City in understanding where the City intends to allocate available resources, the City Council, the City Manager and Department Heads established in 2004 a hierarchy of major aspirational goals, objectives and major projects that support and reinforce the City’s mission statement. Council then set project specific goals at a series of workshops in 2016.

1.) Aspirational Goals
Four major City goals were established as policy direction and focal points for the efforts of City staff.

These goals include:
 Ensure a High Quality of Life and a Safe Environment for Citizens,  Ensure Efficient and Productive City Organization,
viii
 Ensur
e Public Trust, and
 Ensure the Development of the Lodi Economy for a Fiscally Sound City Organization.

City Council, the City Manager and Department Heads established nineteen major City objectives:
 Maintain City’s Sense of Community
 Provide Employee Training and Education
 Provide for a Balanced Community
 Evaluate Telecommunications Opportunities
 Enhance Access through Implementation of IT
Strategic Plan
 Provide Resources to Maintain City’s
Infrastructure
 Promote Urban Forestry
 Promote Public Relations and Marketing
Efforts
 Attract, Retain and Invest in a Quality City
Work Force
 Ensure Open and Accessible Public Meetings
 Encourage Public Arts, Cultural and
Recreational Opportunities
 Pursue Efforts to be Entrepreneurial
 Provide Appropriate and Sufficient City
Facilities
 Improve Customer Service
 Develop Short and Long Range Operational
Pla
ns
 Continue to use Partnerships to Advance City’s
Objectives
 Develop Effective Records Management
Program
 Provide a Balanced Budget and Adhere to
Adopted Policies
 Promote Commercial/Industrial Base

2.) Project Specific Goals
These projects are designed to accomplish specific objectives and become the focus for organization-wide effort. Council set the following priorities and categories in 2016:
 Economic development for “shovel ready” land
 Economic development and incentive program to focus on underutilized parcels  Public Safety, Gang Reduction Intervention Program, training and increase in staffing  Fiscal sustainability, asset preservation, CALPERS and Other Postemployment Benefits  East side rehabilitation, incentive programs and infrastructure Additional priorities that did not fit into the above categories include 1) addressing homelessness issues, 2) providing downtown Wi-Fi and music, and 3) beautification of highway overpasses.

As discussed above, economic revitalization continued to be an active focal point of the City in fiscal year 2021-22. The following projects were recently completed, are underway and will see significant progress, or be completed in 2022.

Residential Development
In fiscal year 2021-22, the City has accepted the following residential developments: Gateway North Unit 1 and Unit 2: and the Talavera subdivisions. Staff also amended the Southwest Trunk Line Master Plan. In fiscal year 2021-22 the City continued to see a robust housing market. Sales and construction in various development projects are ongoing. The City is considering the annexation of additional land to support continued growth.

Downtown and Infill Development
COVID-19 has had a huge impact to the City’s various businesses. The City has helped restaurants by allowing outdoor dining in areas of on-street parking and by participating the in the Great Plates Delivered program that provides freshly prepared, healthy meals to vulnerable populations (over age 60 with high risk factors, or anyone over age 65) to local residents prepared by local restaurants. Both the downtown outdoor dining expansion and Great Plates Delivered programs ended during this fiscal year.

The City has seen an uptick in the activity of our downtown establishments as COVID-19 impacts seem to be waning. There ix
are
new downtown restaurants that have completed construction/expansion in downtown, including The Oxrford and the Lodi Beer Company.

Still under construction, is the new Lodi Bowling Alley. This project consists of a two-story bowling alley that will be equipped with 34 lanes, bar and banquet room. Both projects have put vacant land to use, generating foot traffic on the edges of downtown.

Water Meters and Water Infrastructure
Under state law, all residential housing must be billed for water usage on a metered basis by 2025. In 2010, the City embarked on a program to install meters on approximately 16,000 parcels over an eleven year period. A portion of this project also included relocating water mains and service connections from alleys and rear yards to streets and sizing the new water mains to improve fire flow. Construction began during fiscal year 2009-10 and will continue through fiscal year 2022-

23. To date, all single family dwelling water meters (approximately 16,000) have been installed. Estimated cost for the complete program is $42.5 million. The final phase of construction will begin in fiscal year 2022-23.

The City has a water well rehabilitation program. The City rehabilitated the electrical system at Well No. 7, installed granular activated carbon vessels at Well 28, and replaced existing carbon at Well 6 as part of the Dibromo-chloropropane (DBCP), 123 Trichlorophenylmethyliodosalicyl (TCP) treatment process.

Wastewater Projects
The 9 th phase of the Wastewater Rehabilitation program will be completed by the end of fiscal year 2022-23. The original project bid is $1,656,535 and includes the rehabilitation of over 3,000 LF of 24-inch and 30-inch pipelines. Additional projects planned for fiscal year 2022-23 include the WSWPCF aeration and solids handling system improvements. The design of a WSWPCF electrical room relocation is complete and is scheduled to start construction in the fall of 2022.

Power Plant
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. While Lodi generates or purchases all of its own electricity, Lodi is dependent on three PG&E 60kV lines to transmit the power Lodi generates into the city. 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 expenses through the State’s contractor, Enchanted Rock Electric LLC. Under special legislation approved by the Governor, the California Department of Water Resources proposes to construct a natural gas peaker plant within the City of Lodi to be run during emergency situations to protect the integrity of the statewide power grid. This plant will be owned and operated by the State of California for 5 years with an option for the City to purchase after 5 years. This plant will also benefit the City of Lodi in the event of a transmission capacity shortage until such time as the 230 kV Project is constructed and operational.

FINANCIAL INFORMATION, MANAGEMENT AND CONTROL
A detailed understanding of the financial position and change in financial position of the City is provided in the following sect
ions of this report. The following is a brief description of the City’s financial condition, management practices and control techniques.

Basis of Accounting
Basis of accounting refers to the policy as to when revenues, expenditures or expenses are recognized in the financial accounts and reported in the financial statements. The City’s accounting records for general government operations are maintained on a modified accrual basis. Revenues are recorded when available and measurable. Expenditures are recorded when the services or goods are received and the liability incurred. For proprietary fund types, the City uses the accrual basis of accounting. As such, the measurement focus is on operating income in addition to financial position and changes in financial position. Revenues are recognized when earned and expenses are recognized as the liability is incurred. We believe that the City’s internal accounting controls adequately safeguard assets and provide reasonable assurance of proper recording of financial transactions.

Accounting System and Budgetary Control
x
In de
veloping the City’s accounting system, consideration is given to the adequacy of the internal controls. The objective of the City’s internal accounting controls is to provide reasonable, but not absolute, assurance that the assets are safeguarded against loss from unauthorized use or disposition; and to ensure that transactions are properly recorded to permit the preparation of financial statements in accordance with Generally Accepted Accounting Principles. The concept of reasonable assurance recognizes that the cost of the controls should not exceed the benefits likely to be derived and that management estimates and judgments are required in evaluating these costs and benefits.

In add
ition, the City maintains budgetary controls. The objective of these controls is to ensure compliance with legal provisions embodied in the annual appropriated budget approved by the City Council. The City Manager has the authority to make adjustments to the budget as long as those changes will not have a significant policy impact nor affect budgeted year- end fund balances.

Long
Term Financial Planning
The City has implemented a long-term financial planning practice to review the impact of current decisions on the City’s General Fund. This analysis can be found in the City’s budget document and includes assumptions, revenue, expenditures, and fund balance projections. In addition, there is discussion of risks and opportunities not modeled. The tool is a baseline projection that provides management and policy makers a view of what the City’s financial condition may be if current operations are maintained and a reasonable set of economic assumptions are made. This plan is updated periodically as new information is available that will materially impact the projection.

Fund Balance
It is the City's goal to target and maintain an unassigned fund balance in the General Fund of at least 16% of revenues and working capital balances in the Water and Wastewater enterprise funds, and at least 25% of operating expenses. Based on a reserve policy adopted in March 2018, the target for the Electric enterprise fund working capital was $29.9 million for fiscal year 2021-22. The goals allow for variations from year-to-year to account for economic and fiscal changes. The General Fund maintained an unassigned fund balance of $23,388,654 or 39.70% of revenues at the end of fiscal year 2021-22.

Cash Management
The City has written investment policies that address a wide range of investments. These policies describe the City’s investment objectives, investment authority, allowable investment vehicles, maturity terms and eligible financial institutions.

They also describe the City’s capital preservation and cash management objectives. As provided in the policy, investments are intended to be held until maturity and investment terms are to be consistent with the City’s cash flow needs. Investment reports are issued quarterly to the City Manager and City Council to provide detailed information regarding the City's investments and compliance with City policy and state law. The policy has three objectives: (1) protect principle; (2) provide for liquidity needs, and (3) obtain the most reasonable rate of return within the first two objectives. All investment activities are to be undertaken and judged using the Prudent Investor Standard as described within the policy.

Appr
opriation Limitation
Article XIII B of the Constitution of the State of California (Proposition 4) provides for the limitation of expenditures by state and local governments. Under the provisions of this article, City appropriations funded through tax sources may not exceed fiscal year 1979 appropriation levels except as adjusted for increases in population and the growth in the California per capita income or non-residential assessed valuation due to new construction within the City.

Excluded from the limitation are appropriations funded through charges for services, fines and forfeitures, grants, transfers of service responsibilities between government agencies and indebtedness incurred prior to fiscal year 1979. Pursuant to subsequent legislation adopted after Article XIII B, the City is required to annually establish and adopt its appropriations limit by resolution. For fiscal year 2021-22, the City's appropriations subject to limit were $54,049,367 and the appropriation limit was $124,907,868, leaving appropriations at $70,858,501 below the limit.

Debt Administration
At June 30, 2022, the City had outstanding Certificates of Participation, Revenue Bonds and Installment Purchase Agreement of $131,410,589. These liabilities are discussed in Note 7 of the Basic Financial Statements and summarized below. xi
In 2
004, the City issued $27,360,000 in Wastewater Certificates of Participation (2004A) to finance the costs of improvements to the wastewater collection, treatment and disposal system. These bonds were partially refunded with the 2012 Refunding Wastewater Revenue Bonds, Series A.

On October 1, 2010, the City issued $9,015,000 Water Revenue Certificates of Participation, 2010 Series A and $29,650,000 Water Revenue Bonds, 2010 Series B (Federally taxable - Build America Bonds) to finance the construction of the Surface Water Treatment Facility, which is designed to pump water from the Mokelumne River, treat and deliver it to the City’s water distribution system. The Water Revenue Bonds 2010 Series B was refunded in the previous fiscal year and is now the 2020 Water Revenue Bonds. The Water Revenue Bonds 2010 Series A was paid off in fiscal year 2020-21.

On September 1, 2012, the City issued $19,080,000 Refunding Lease Revenue Bonds (2012 LRB) to prepay and cause the immediate defeasance of the outstanding $21,025,000 Certificates of Participation (2002 COP). The 2002 COP were issued in January 2002 to provide funds to finance the costs of constructing, furnishing and equipping a new police building and jail for the City, to finance portions of certain other projects and to refund the outstanding 1995 and 1996 Certificates of Participation. These bonds were refunded with the 2022 Lease Revenue Bonds.

The City also issued the $17,105,000 2012 Refunding Wastewater Revenue Bonds (2012 Bonds) in September 2012 to advance refund the $17,115,000 principal amount of the 2004 Wastewater Revenue Certificates of Participation (2004 COP).

The 2004 COP were issued to provide funds to finance the costs of certain improvements to the wastewater collection, treatment and disposal system of the City.

On March 10, 2016, the City issued the $20,295,000 2016 Refunding Wastewater Revenue Bonds, Series A (2016 Bonds) to partially refund $21,415,000 outstanding principal of the 2007A COP.

On December 1, 2017, the City issued $7,762,794 Installment Purchase Agreement, refunding the Certificates of Participation, 2007 A (2007 COP).

On June 13, 2018 the City issued $41,610,000 Electric System Revenue Refunding Bonds (2018 Bonds) to allow the City prepay and cause the immediate defeasance of the outstanding $55,785,000 Certificates of Participation (Electric System Revenue Certifications of Participation 2008 Series A).

On April 8, 2020 the City issued $25,390,000 Water Revenue Refunding Bonds (2020 Bonds) to allow the City prepay and cause the immediate defeasance of the outstanding $29,650,000 Lodi Public Financing Authority 2010 Water Revenue Bonds, Series B (Federally Taxable – Build America Bonds).

On April 13, 2022 the City issued $28,250,000 Lease Revenue Bonds (2022 Bonds) to all the City to prepay and cause the immediate defeasance of the outstanding $14,335,000 of the 2012 Lease Revenue Bonds.

The City's debt management policy includes a commitment to monitor all forms of debt annually during the preparation of the City’s Financial Plan and Budget to ensure compliance. Also, the City will generally conduct financing on a competitive basis, will seek an investment grade rating on any direct debt and will obtain credit enhancements such as letters of credit or insurance when necessary for marketing purposes, availability and cost effectiveness.

Compet
itive Bidding Policy
All required purchases for materials, equipment and services during fiscal year 2021-22 were made pursuant to competitive bidding procedures as established under the City’s purchasing ordinance. Contracts for construction projects were awarded pursuant to competitive bidding procedures established by the State of California for projects in excess of 5,000. In May, units were changed and construction projects were awarded pursuant to competitive bidding procedures established for projects in excess of $10,000.

Risk
Management
The City is self-insured for dental care, long-term disability, workers’ compensation, general liability and unemployment insurance. General liability and workers’ compensation are administered by outside agencies. The City administers unemployment insurance and long-term disability. Self-insurance transactions are accounted for under the Insurance Funds. xii
At J
une 30, 2022, the Insurance Fund had a net position of $7,140,137.

INDEPENDENT AUDIT
The City Council requires an annual audit of the records and accounts of the City by an independent certified public accountant. To ensure proper internal control, periodically the City conducts a request for proposal (RFP) process for auditing services. The accounting firm of The Pun Group was selected to perform this audit. The independent auditor’s report precedes the basic financial statements and concludes that the City’s basic financial statements are presented fairly, in all material respects, in accordance with GAAP.

CERTIFICATES OF ACHIEVEMENT
The City has applied for the Government Finance Officers Association of the United States and Canada (GFOA) award for Certificate of Achievement for Excellence in Financial Reporting to the City for its Annual Comprehensive Financial Report (ACFR) for the year ended June 30, 2021. These Certificates of Achievement are prestigious national award recognizing conformance with the highest standards for preparation of state and local government financial reports. In order to be awarded a Certificate of Achievement, a governmental unit must publish an easily readable and efficiently organized ACFR, whose contents conform to program standards. The ACFR must satisfy both generally accepted accounting principles and applicable legal requirements.

A Certificate of Achievement is valid for a period of one year only. The City has received a Certificate of Achievement for the last twenty-nine consecutive years. We believe our current report continues to conform to the Certificate of Achievement program requirements and we are submitting it to GFOA this year.

ACKNOWLEDGMENTS
As always the professionalism, dedication and efficiency of the Financial Services Division Accounting staff made it possible for the timely preparation of this report and are to be commended. I would also like to personally thank Melissa Munoz, Accounting Manager, Robin Xiang, Supervising Accountant and the entire Finance Team. Their work in preparing this year’s ACFR is greatly appreciated.

I would also like to thank you for your continued interest and support in planning and conducting the financial operations of the City in a responsible and progressive manner.

Respectfully submitted,
And
rew Keys
Deputy City Manager/Internal Services Director
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Government Finance Officers Association
Certificate of

Achievement
for Excellence
in Financial
Reporting
Presented to
City of Lodi
California
For its
Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June
30, 2021
Executive Director/CEO
ivx
Library Risk
City of Lodi
Electric Utility
Public Works
Fire
Police
City Clerk Boards and
Commissions
Deputy City
Manager/Internal
Services Director
Budget/Treasury
Financial
Services
Human
Resources
Information
Systems
FY 2021-2022
xv

M A Y O R A N D C O U N C I L
Lodi City Council Members work to provide citizens
with a better, more attractive, and healthier place in
which to live. Council establishes local laws, sets
policies, approves programs, appropriates funds,
and supervises the operations of City government.

Council Members are elected on a by-district basis
from five single-member Council districts by voters
residing in the district in which the Council Member
resides. Council Members hold four-year terms and
elections are held in November of even numbered
years.

Mark Chandler
Mayor
District 2
Mikey Hothi
Mayor Pro Tempore
District 5
Doug Kuehne
Council Member
District 3
Alan Nakanishi
Council Member
District 1
Shak Khan
Council Member
District 4
xvi

ADVISORY BODIES AND DIRECTORY OFFICIALS

ADVISOR

Y BODIES
Planning Commission Lodi Improvement Committee
Library Board Lodi Arts Commission
Recreation Commission Youth Commission
Site Plan and Architectural Review Committee Lodi Senior Citizens’ Commission

PRINCIPA

L ADMINSTRATIVE OFFICERS
Steve Schwabauer City Manager
Andrew Keys Deputy City Manager
Janice Magdich City Attorney
Olivia Nashed City Clerk
Akiliah Manuel Mills Library Services Director
Ken Johnson Fire Chief
Christina Jaromay Parks, Recreation &
Cultural Services Director
Charles Swimley Public Works Director
Jeff Berkheimer Electric Utility Director
John Della Monica Community Development Director
Sierra Brucia Police Chief
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left blank.)
xviii

Financial
Section
The Financial Section is comprised of the
Independent Auditor's Report, Management's
Discussion and Analysis, Basic Financial
Statements, including the Notes, Required
Supplementary Information, and Supplementary
Information which includes Combining and
Individual Fund Statements and Schedules.

(This page intentionally left blank.)

CITY OF LODI
MANAGEMENT’S DISCUSSION AND ANALYSIS
June 30, 2022

This section of the Annual Comprehensive Financial Report is presented as discussion and analysis of the financial performance of the City of Lodi (City) for the year ended June 30, 2022.

FINANCIAL HIGHLIGHTS

 The assets and the deferred outflows of resources of the City exceeded its liabilities and the deferred inflows of resources at the close of the fiscal year by $ 328,332,626 (net position). Of this amount, $8,228,733 is unrestricted deficit.

 The City’s total net position increased by $42,667,411 in fiscal year 2022.

 As of June 30, 2022, the City’s governmental funds reported combined ending fund balances of $103 ,861,266, an increase of $31,180,246 in comparison with the prior year. Of this amount, $23,388,654 is available for spending at the City’s discretion (unassigned fund balance).

 At the close of the fiscal year, fund balance for the General Fund was $38,964,050, of which $23,388,654 is unassigned or 39.70% of total general fu nd expenditures of $58,904,422. Of the $38,964,050 fund balance, $24,321 is non‐spendable for pre‐paid expenses, $15,198,535 is restricted for Pensions and $352,540 is committed for video related capital projects.

 The City’s total long‐term liabilities decreased by $38,611,753 or 10.92% during the current fiscal year. Oth er liabilities decreased by $1,621,461 or 7.91%.

OVERVIEW OF THE FINANCIAL STATEMENTS

This discussion and analysis is intended to serve as an introduction to the City’s basic financial statements. The City’s basic financial statements are comprised of three components: (1) Government‐wide financial statements, (2) Fund financial statements, and (3) Notes to Basi c Financial Statements. This report also includes required supplementary information and combining and individual fund statements and schedules in addition to the basic financial statements.

Government‐wide Financial Statements
The government‐wide financial statements are designed to provide readers with a broad overview of the City’s finances, in a manner similar to a private‐sector business.

The statement of net position presents information on all of the City’s assets, deferred outflows of resources, liabilities and deferred inflow of resources, with the difference re ported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether or not the financial position of the City is improving or deteriorating.

The statement of activities presents information showing how the City’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the u nderlying event giving rise to the change occurs,
regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal pe riods, such as revenues pertaining to uncollected taxes, and expenses pertaining to earned but unused vacation and sick leave.

Both of the government‐wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fee s and charges (business‐type activities). The governmental 5 CITY OF LODI
MANAGEMENT’S DISCUSSION AND ANALYSIS (CONTINUED)
June 30, 2022

activities of the City include general government, public protection, public works, community development, library, parks and recreation. The business‐type activities of the City include electric operations, wastewater operations, water operations and public transit operations.

Fund Financial Statements
The fund financial statements are designed to report information about groupings of related accounts, which are used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance‐related legal requirements. All of the funds of the City can be divided into the following three categories: Governmental funds, Proprietary funds, and Fiduciary funds.

Governmental Funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government‐wide financial statements. Most of the City’s basic services are reported in governmental funds.

These statements, however, focus on (1) how cash and other financial assets can readily be converted to available resources and (2) the balances left at year‐end that are available for spending. Such information may be useful in determining financial resources available in the near future to fina nce City programs.

Because the focus of governmental funds is narrower than that of the government‐wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government‐wide financial statements. By doing so, readers may better understan d the long‐term impact of the government’s near‐term financing decisions. Both the governmental funds balance sheet and the governmental funds statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.

The City maintains several individual governmental fu nds organized according to their type (general, special revenue, capital projects and debt service). Information is presented separately in the governmental funds balance sheet and in the governmental funds statement of revenues, expenditures, and changes in fund balances for the General Fund and Streets Fund which are considered major funds. Data from the remaining governme ntal funds are combined into a single, aggregated presentation. Individual fund data for each of the non‐major governmental funds is provided in the form of combining statements elsewhere in this report.

The City adopts an annual budget for its General Fund and special revenue funds. Budgetar y comparison statements
and schedules have been provided for the General Fund and the special revenue funds to demonstrate compliance with this budget.

Proprietary Funds. Proprietary funds are generally used to account for services for which the City charges customers, either outside customers, or internal units or departments of the City. Proprietary fu nds provide the same type of
information as shown in the government‐wide financial statements, only in more detail. The City maintains the following two types of proprietary funds:

 Enterprise funds are used to report the same functions presented as business‐type activities in the government‐wide financial
statements. The City uses enterprise funds to account for the operations of the Electric, Wastewater, Water, all of which are considered to be major funds and the Transit system, which is considered to be a non‐major enterprise fund.

 Internal Service funds are used to report activities that account for various employee ben efits, self‐insurance, fleet activities, and vehicle and equipment replacement of the City. Because these activities predominantly benefit governmental rather than business‐type functions, they have been included within the governmental activities in the government‐wide financial statements. 6 CITY OF LODI
MANAGEMENT’S DISCUSSION AND ANALYSIS (CONTINUED)
June 30, 2022

Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of parties outside the City. The activities of the Private‐Purpose Trust and the Hutchins Street Square Bequest are also accounted for under the fiduciary funds. Since the resources of these funds are not available to support the City’s own pro grams, they are not reflected in the government‐wide financial statements. Fiduciary funds are accounted for using the accrual basis of accounting.

Notes to the Basic Financial Statements
The notes to the basic financial statements provide additional information that is essential to a full understanding of the data provided in the government‐wide and fund financial statements.

Required Supplementary Information
In addition to the basic financial statements and accompanying notes, this report presents certain required supplementary information concerning changes in net pension and other post‐employment liabilities and related ratios for the City’s Miscellaneous and Safety pension plans, the City’s progress in funding its obligation to provide other postemployment benefits (OPEB) to its employees, and sch edules comparing budget to actual amounts in the General Fund and Streets Fund.

Combining Statements
The combining statements in connection with non‐major governmental funds, internal service funds and fiduciary funds are presented immediately following the required supplementary information.

City of Lodi's Net Assets
June 30, 2022 and 2021
Governmental Business‐type
Activities Activities Total
2022 2021 2022 2021 2022 2021
Assets:

Current and other assets $ 202,740,515 $ 107,397,365 $ 124,917,832 $ 121,120,296 $ 327,658,347 $ 228,517,661 Capital assets 140,904,371 136,983,261 255,374,437 253,309,985 396,278,808 390,293,246 Total assets 343,644,886 244,380,626 380,292,269 374,430,281 723,937,155 618,810,907 Deferred outflows of
resources 16,960,996 17,279,260 7,314,051 11,267,852 24,275,047 28,547,112 Liabilities:

Long‐term liabilities
outstanding 156,475,569 169,375,236 139,486,779 163,577,404 295,962,348 332,952,640 Other liabilities 9,677,369 11,445,566 9,193,365 9,046,629 18,870,734 20,492,195 Total liabilities 166,152,938 180,820,802 148,680,144 172,624,033 314,833,082 353,444,835 Deferred inflows of resources 96,922,967 6,786,958 8,123,527 1,461,011 105,046,494 8,247,969 Net position:

Invested in capital assets,
net of related debt 111,961,302 122,205,737 159,768,229 151,811,971 271,729,531 274,017,708 Restricted 42,296,979 37,536,500 6,077,383 18,859,974 48,374,362 56,396,474 Unrestricted (56,728,304) (85,690,111) 64,957,037 40,941,144 8,228,733 (44,748,967) Total net position $ 97,529,977 $ 74,052,126 $ 230,802,649 $ 211,613,089 $ 328,332,626 $ 285,665,215 7 CITY OF LODI
MANAGEMENT’S DISCUSSION AND ANALYSIS (CONTINUED)
June 30, 2022

GOVERNMENT‐WIDE FINANCIAL ANALYSIS

As noted earlier, net position may serve over time as a useful indicator of a government’s financial position. The City’s assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $328,332,626 at the close of the current fiscal year.

Assets. The City’s total assets increased by $105 ,126,248. The increase is primarily due to the following:

Governmental Activities. Total assets for governmental activities had an increase of $99,264,260 or 40.62%. Current and other assets increased by $95,343,150 primarily resulting from the increase in lease receivables of $65,659,264, $37,007,202 increase cash and investments. Capital assets increased by $3,921,110. Other insignificant activities make up the difference.

Business‐type Activities. Total assets for the business‐type activities had an increase of $5,861,988 or 1.57%. Current and other assets increased by $3,797,536 primarily due to increases in cash and investments of $4,083,162, increase in accounts receivable of $2,134,713. Capital assets increased by $2,064,452. Other insignificant activities contributed to the difference.

Deferred outflows of resources. The increase in total deferred outflows of resources of $96,798,525 is primarily from the implementation of GASB 87 relating to leases.

Liabilities. The City’s total liabilities decreased by $38,611,753 or 10.92%. The decrease is primarily due to the following:

Governmental Activities. Total liabilities for the governmental activities had a decrease of $14,667,864 or 8.11%, primarily from a decrease in long‐term liabilities. Decreases in liabilities included a reduction in the pension liability in the long‐term liabilities.

Business‐type Activities. Total liabilities for the business‐type activities decreased by $23,943,889 or 13.87%. The decrease is primarily attributable to a decrease in long‐term liabilities. Decreases in other liabilities include accrued salaries and wages, accounts payable and a decrease in unearned revenue. Other insignificant activities offset the difference.

Deferred outflows of resources. The decrease in total deferred outflows of resources of $4,272,065 is primarily from changes in various components related to the Miscellaneous and Safety Plans in the CalPERS valuation reports and current pension contributions made after the measurement date of June 30, 2021.

Net position. The City’s overall financial position increased during the fiscal year. The net position has increased by $42,667,411, or 14.94%.

The largest portion ($271,729,531) of the City’s net position reflects its investment in capital assets net of any associated depreciation (e.g., land, buildings and improvements, machinery and equipment); less any related debt used to acquire those assets that is still outstanding. The City uses these capital assets to provide services to citize ns; consequently, these assets are not available for future spending. Although the City’s investment in its capital assets are reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources.

An additional portion of the City’s net position, $48,37 4,362 (14.73%) represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net position amounts to $8,228,733. At the end of the current fiscal year, the City is able to report positive balances in the General Fund and all Enterprise 8 CITY OF LODI
MANAGEMENT’S DISCUSSION AND ANALYSIS (CONTINUED)
June 30, 2022

activities. Unrestricted net position is negative for the governmental‐type activities primarily as a result of the City’s outstanding pension and OPEB obligations.

City of Lodi's Changes in Net Position
June 30, 2022 and 2021
Governmental Business-type
Activities Activities Total
2022 2021 2022 2021 2022 2021
Revenues
Program revenues:

Charges for services $ 10,407,348 $ 9,930,463 $ 111,939,682 $ 105,154,641 $ 122,347,030 $ 115,085,104 Operating grants and contributions 4,871,549 4,582,051 8,442,821 6,866,098 13,314,370 11,448,149 Capital grants and contributions 15,834,286 8,417,830 8,682,577 5,120,055 24,516,863 13,537,885 General revenues:

Property taxes 13,680,792 13,050,417 - - 13,680,792 13,050,417 Sales taxes 26,247,772 24,302,433 - - 26,247,772 24,302,433 Other taxes 20,802,233 18,647, 569 - - 20,802,233 18,647,569 Grants and contributions not restricted to - - - specific programs 7,884,584 14,166,158 - - 7,884,584 14,166,158 Other 12,431,553 4,536,154 (3,246,895) 6,160,060 9,184,658 10,696,214 Total revenues 112,160,117 97,633,075 125,818,185 123,300,854 237,978,302 220,933,929 Expenses
General government 14,493,009 24,867,053 - - 14,493,009 24,867,053 Public protection 41,534,207 34,636,966 - - 41,534,207 34,636,966 Public works 11,799,877 10,354,010 - - 11,799,877 10,354,010 Community development 2,654,080 1,903,002 - - 2,654,080 1,903,002 Library 1,448,243 1,152,899 - - 1,448,243 1,152,899 Parks and recreation 4,317,544 3,670,846 - - 4,317,544 3,670,846 Interest on long-term debt 15,889,146 654,504 - - 15,889,146 654,504 Electric - - 74,001,860 68,306,979 74,001,860 68,306,979 Wastewater - - 11,623,599 11,683,283 11,623,599 11,683,283 Water - - 12,645,752 8,141,513 12,645,752 8,141,513 Transit - - 4,903,574 4,334,810 4,903,574 4,334,810 Total expenses 92,136,106 77,239,280 103,174,785 92,466,585 195,310,891 169,705,865 Changes in net position before transfers 20,024,011 20,393,795 22,643,400 30,834,269 42,667,411 51,228,064 Transfers 3,453,840 4,448,117 (3,453,840) (4,448,117) - - Changes in net position 23,477,851 24,841,912 19,189,560 26,386,152 42,667,411 51,228,064 Net position at beginning of year 74,052,126 42,983,825 211,613,089 185,226,937 285,665,215 228,210,762 Prior period adjustments - 6,226,389 - - - 6,226,389 Net position at beginning of year, as restated 74,052,126 49,210,214 211,613,089 185,226,937 285,665,215 234,437,151 Net position at end of year $ 97,529,977 $ 74,052,126 $ 230,802,649 $ 211,613,089 $ 328,332,626 $ 285,665,215

Analysis of Changes in Net Position
Governmental Activities
Net position for the governmental activities increased by $23,477,851 in the current fiscal year. The change in net position is a decrease over last year’s increase of $24,841,912 by $1,364,061. The increase is primarily a result of the following:

 The City receives other taxes, such as franchise tax, business licenses and tourism occupanc y tax.  These other taxes increased by $2,154,664 or 11.55% compared to prior year.  The economy continues to show evidence of positive movement particularly in the housing market, businesses and tourism.  Sales tax saw an increase of $1,945,339 or 8% from prior year.  For General Fund, sales tax increased by $1,1
32,034.  For Measure L, sales tax increased by $813,305.  Bradley Burns’ general sales tax revenues decreased by $277,011 from prior year.
 Property taxes increased by $630,375 from prior year.  Capital grants and contributions increased by $7,416,456 from the prior fiscal year. The difference is due to departments projects bein
g placed on hold during the COVID‐19 pandemic.   Public Works used grants to complete various projects in the current fiscal year.

Expenses for governmental functions totaled $92,136,106, an increase of $14,896,826 or 19.29% relative to the prior fiscal year. Increase in expenditures resulted from the capital projects and service costs. 9 CITY OF LODI
MANAGEMENT’S DISCUSSION AND ANALYSIS (CONTINUED)
June 30, 2022

Business‐type Activities
Business‐type activities increased the City’s net position by $19,189,560 in the current year, which is a decrease of $7,196,592 from last year’s increase of $26,386,152. The key elements of this change are:

 Charges for services in the Electric Fund increased by $4,232,205, Wastewater Fund increased by $225,293, the Water Fund decreased by $3 08,860 and Non‐major Transit increased by $20,663.  Increase in the greenhouse gas allowance (GHG) of $2,086,893 in the Electric Fund related to Assembly Bill 32:

Global Warming Act, which set the 2021 greenhouse gas emissions reduction into law and also adopted a regulation that established a system of market‐based declining annual aggre gate emission limits for sources or categories of sources that emit greenhouse gases. In 2011, the California Air Resources Board (ARB) adopted the cap‐and‐trade regulation. This program covers major sources of GHG emissions in the State such as refineries, power plants, industrial facilities, and transpo rtation fuels. The cap‐and‐trade program includes an enforceable emissions cap that will decline over time. The State distributes allowances which are tradable permits, equal to emissions allowed under the cap.
 Other revenues decreased by $1,288,249 primarily due to a decrease in reimbursable charges.  Bulk power cost increased by $6,8 79,786 compared to the prior year primarily attributable to overall increase in generation and in third party increase in transmission, management services costs paid to NCPA.

FINANCIAL ANALYSIS OF THE CITY’S FUNDS

Governmental Funds
The focus of the City’s governmental funds is to provide information on near‐term inflows, outflows, and balanc es of
spendable resources. Such information is useful in assessing the City’s financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year. Types of governmental funds reported by the City incl ude the General Fund, special revenue funds, debt service fund and capital projects funds.

At the end of the current fiscal year, the City’s governmental funds reported combined ending fund balances of $103,861,266, for a net change in fund balances of $31,180,246. In comparison to the prior year, the chan ge in fund
balance resulted from an increase in overall revenues and expenditures coming in under budget.

The General Fund is the chief operating fund of the City. At the end of the current fiscal year, unassigned fund balance of the General Fund was $23,388,654 while total fund balance was $38 ,964,050. As a measure of the General Fund’s
liquidity, it may be useful to compare both unassigned fund balance and total fund balance to total fund expenditures.

Unassigned fund balance and total fund balance represent 66.14% and 39.70% of total General Fund expenditures, respectively.

The fund balance of the General Fund decreased by $1 ,726,048 during the current fiscal year, a decrease of $14,513,105 from last year’s net change in fund balance of $12,787,057.

Key factors in this decrease are:

 Total revenues decreased by $6,482,247, primarily from the net increase of other taxes of $4,730,378, which includes the additional revenue from Measure L sales tax, an d a decrease intergovernmental revenue of $5,944,536 primarily the Great Plates program ending. Other insignificant increases and decreases offset the difference.

10 CITY OF LODI
MANAGEMENT’S DISCUSSION AND ANALYSIS (CONTINUED)
June 30, 2022

 Total expenditures increased by $6,699,170 primarily from an increase in services relating to public protection.

Other insignificant increase and decreases offset the difference.

Total fund balance of the Streets Funds was $17,349,665. Intergovernmental revenues of $7,568,694 offset by capital expenditures of $4,895,673 were the largest components that resulted in the increase of $3,215 ,812 to fund balance.

Proprietary Funds
The City’s proprietary funds provide the same type of information found in the government‐wide financial statements, but in more detail.

Unrestricted net position at the end of the year for the Electric Fund was $34,722,852, Wastewater Fund was $19,006,912, Water Fund was $8
,191,180, Transit Fund was $3,036,093 and the Internal Services Funds unrestricted net position was $11,756,778.

Other factors concerning the finances of these funds are discussed in the City’s business‐type activities.

GENERAL FUND BUDGETARY HIGHLIGHTS

Differences between the original budget and the final budget in the General Fund were a net increase in a ppropriations
of $6,911,441. The increase in appropriations can be briefly summarized as follows:

 $19,498,833 increase in general revenues

 $12,587,392 increase in overall expenditures

Significant differences between the final budget and the actual revenues and expenditures can be briefly summarized as follows:

 Tax revenue exper
ienced a favorable variance between the final budget and actual revenue of $1,830,175, which resulted from an increase in property tax, special assessment taxes and transient occupancy tax.

Investment and rental income had a variance between the budget and actual of ($2,060,895). Sales and use tax had a favorable variance between the final bu dget and actual revenue of $1,942,052. Intergovernmental had an unfavorable variance between the final budget and actual revenue of ($9,118,037). All additional revenues had an unfavorable variance between final budget and actuals but were not significant.

 For expenditures, a favorable variance between the final budget and act ual expenditures of $14,813,121 was due to savings from vacancies and the continued overall effort to reduce spending and costs.

CAPITAL ASSETS AND DEBT ADMINISTRATION

Capital assets
The City’s investment in capital assets for its governmental and business‐type activities as of June 30, 2022, amounts to $396,2
78,808 (net of accumulated depreciation). This investment in capital assets includes land, buildings and improvements, machinery and equipment, vehicles, infrastructure, works of art, and construction in progress. The total increase in the City’s capital assets for the current fiscal year was $110,613,593, a 38.72% increase (a 90.28% increase in governmental ac tivities and 20.68% increase in business‐type activities).

11 CITY OF LODI
MANAGEMENT’S DISCUSSION AND ANALYSIS (CONTINUED)
June 30, 2022

CITY OF LODI'S CAPITAL ASSETS
(net of depreciation)
Governmental   Business‐type
Activities   Activities   Total
Beginning of Year   $         74,052,126   $     211,613,089   $ 285,665,215 Land                 26,316,763                 5,535,718           31,852,481 Buildings and Improvements                33,715,376              35,442,101           69,157,477 Machinery and equipment                  2,093,770            204,260,545        206,354,315 Vehicles                  5,633,954                 2,840,733            8,474,687 Infrastructure                 67,971,595                               ‐            67,971,595 Work of Art                     304,907                               ‐

304,907
Construction in Progress 4,868,004 7,295,342 12,163,346 End of Year $ 140,904,369 $ 255,374,439 $ 396,278,808

An increase in complete construction in progress compared to prior year was primarily from the Streets projects.

Additional information on the City’s capital assets can be found in Note 6 on pages 65‐66 of this report.

Long‐term debt
At the end of the current fiscal year, the City had total b onded debt outstanding of $131,410,589. Of this amount, $28,880,080 is the outstanding balance of the bonds issued to fund the new public safety building, refinancing of the performing arts center and the downtown and Cherokee Lane improvements. The total of $102,530,509 from the business‐type activities consists of $27,517,401 for the Water F und, $35,035,280 for the Wastewater Fund; and $39,997,828 for the Electric Fund.

The City’s total bonded debt increased by $7,782,688 during the current fiscal year.

Additional information on the City’s long‐term debt can be found in Note 7 pages 66‐68 of this report.

ECONOMIC FACTORS AND NEXT YEAR’S BUDGET

Despite these challenges, Lodi’s revenues performed greatly during fiscal year 2021‐22 and it is anticipated they will continue to perform well in the coming year. From the actuals for fiscal year 2020‐21 to the adopted budget for fiscal year 2022‐23, it is estimated that sales tax and Measure L revenue will increase by $1.5 million, motor vehicle will
increase by $445,000. Transient occupancy tax, the only major revenue source to see a significant pandemic influenced decline, is anticipated to increase by $775,000 and property tax will continue a steady increase of 4.25%, fueled by new development, turnover of long term owne
rship and general appreciation in property values. General Fund revenues are estimated at $3.4 million more than the current fiscal year 2021‐22 estimates when adjusted for one time ARPA revenues and the remaining FEMA reimbursements. As the recovery continues, the City is projecting a bala nced budget in the General Fund in fiscal year 2021‐23, although continued widespread labor market challenges make it likely the City will be able to contribute to its reserve balance. The City’s General Fund reserves are healthy, and with disciplined savings over the past 5 years driven by the City ’s Pension Stabilization Policy, the City’s Pension Stabilization Reserves are substantial as well. Projected CalPERS unfunded accrued liability (UAL) cost of $11.6 million in fiscal year 2022‐23 are anticipated to continue to grow to approximately $15.8 million by 2027‐28, for a 30% increase over the forecast term included in the most recent a ctuarial reports provided by CalPERS to the City. Additionally, CalPERS will be utilizing a portion of the earnings in excess of the discount rate achieved in the year ending June 30, 2022 to further buy down the discount rate used to calculate UAL. CalPERS is also in the process of its Asset Liability Management 12 CITY OF LODI
MANAGEMENT’S DISCUSSION AND ANALYSIS (CONTINUED)
June 30, 2022

review which may result in further changes to actuarial assumptions including the discount rate. Clearly caution and fiscal prudence towards CalPERS will be required in the coming years. The City is 68.4% funded when combining CalPERS and Pension Stabilization Fund assets.

For fiscal year 2021‐22, the City increased its workforce by a net of six positions; addin g one Legal Secretary, one Management Analyst, one Senior Customer Service Representative, one Network Administrator, one Code Enforcement Officer, one Police Records Clerk, and one Assistant/Associate Civil Engineer and deleting one Utility Billing Specialist.

The City has expanded capital project efforts in fiscal year 2021‐22.

Conservative council fiscal management through
the pandemic combined with aggressive actions to infuse cash into the local economy through the American Rescue Plan Act of 2021 (ARPA) and the grant allocations to businesses and strong local sales left the city with nearly $13 million dollars to address its capital needs and other un funded needs. Over $7 million was dedicated to park improvements and $1 million dedicated to economic development focused art projects. Significant projects are expected to be undertaken during the next fiscal year. Including an estimated $13 million replacement of the animal shelter, $2.4 million Lodi Lake renovation and $1.6 million in park pla y structure replacements throughout the City.

Employee costs and retirement contributions – The City entered multi‐year labor agreements with all of its represented bargaining units that began in 2019 and offered employees the first significant salary increases since 2008.

Bargaining is underway for the Lodi City Mid‐Management, AFSCME, Lodi Professional Firefighters that all expire December 31, 2022. Lodi Police Dispatch Association current contract has expired. The City is in negotiations with Lodi Police Dispatch Association and have reached a s
uccessor MOU.

Based on the City’s aggressive funding actions over the past four years, by the end of fiscal year 2022‐23, total funding in the Pension Stabilization Fund (PSF) is estimated as follows: General Fund: $15.0 million; Other Funds $5.0 million.

Because results for fiscal year 2021‐22 sig
nificantly exceeded expectations, it is anticipated that the City will make additional contributions to the PSF in fiscal year 2022‐23.

Economic Development
The City is deep‐rooted in California’s rival wine country, is as ripe for commercial and residential real estate development as it is for its Zinfandel grapes. Because of its agricultural roots, the City has unfolded into an international tourist destination and real estate market, attracting medical biotech and light industrial development to the area. With Sa
n Joaquin County’s charming architecture, and Lodi’s awe‐inspiring vineyards, almond, olive and fruit orchards, it is easy to see why so many are drawn to the area for its beauty and abundance.

Investors are beginning to look to the City as an opportunity for adding commercial real estate, resi dential, in‐fill, and mixed‐use development to its picturesque agricultural setting. The City’s strength as a real estate market lies in its strong infrastructure, abundant water, wine tourism industry, and affordable real estate. The accessibility to Interstate 5 and Highway 99 allows manufacturers and distributors to get their product out to market quickly. The Lodi Energy Center, located only about three miles outside the city on I‐5 provides consistent and dependable local electricity, which is particularly crucial for its industrial thermoforming companies. The city‐owned power is more reliable and less expensive than the investor owned utilities in the area.

REQUEST FOR INFORMA
TION

This financial report is designed to provide citizens, taxpayers, customers, investors and creditors with a general overview of the City’s finances and to demonstrate the City’ accountability for the money it receives. If you have any questions about this report or need additional information, con tact the Financial Services Division of the City of Lodi at 310 W. Elm Street, Lodi, California, 95240.
13 (This page intentionally left blank.)
14 Basic
Financial
Statements
The Government-wide Financial Statements
provide a broad overview of the City's financial
position and operating results. Information is
grouped by governmental activities or business-
type activities.

The Fund Financial Statements report information
about the City's Governmental Funds, Proprietary
Funds, and the Fiduciary Funds.

The notes have an integral role in disclosing
information essential to the Basic Financial
Statements.
15 (This page intentionally left blank.)
16 Government-
Wide
Financial
Statements
17 (This page intentionally left blank.)
18 Governmental
Activities
Business‐type
Activities Total
ASSETS
Current Assets:

Cash and investments 92,117,542$ 75,269,752$ 167,387,294$ Restricted cash and investments 31,545,711 17,822,565 49,368,276 Accounts receivables (net) 9,133,448 12,385,205 21,518,653 Property tax receivable 121,392 ‐ 121,392 Interest receivable 148,357 53,202 201,559 Lease receivable 545,200 41,840 587,040 Due from other governmental agencies 3,602,492 1,473,884 5,076,376 Advance receivable ‐ NCPA ‐ 10,922,475 10,922,475 Inventory 256,012 6,649,648 6,905,660 Other a
ssets 133,864 23,992 157,856 Noncurrent Assets:

Lease receivable 65,114,064                     163,092                           65,277,156 Right to use leased assets, net of amortization 22,433                             112,177                           134,610 Capital assets, net: Nondepreciable 31,489,674                     12,831,060                     44,320,734 Capital assets, net: Depreciable, net 109,414,697                   242,543,377                   351,958,074 Total assets 343,644,886                   380,292,269                   723,937,155 DEFERRED OUTFLOWS OF RESOURCES
Related to pensions 14,016,662                     2,232,559                       16,249,221 Related to OPEB 1,323,256                       334,647                           1,657,903 Unam
ortized losses on defeasance of debt 1,621,078                       4,746,845                       6,367,923 Total deferred outflows of resources 16,960,996                     7,314,051                       24,275,047

LIABILITIES
Current Liabilities:

Accounts payable and accrued liabilities 8,397,038 6,934,051 15,331,089 Accrued salaries and wages 601,325 178,525 779,850 Accrued interest 239,284 1,420,686 1,659,970 Unearned revenue 439,722 660,104 1,099,826 Bonds, notes, leases, claims, compensated absences
Due within one year 7,848,708 8,594,129 16, 442,837
Noncurrent liabilities:

Bonds, notes, leases, claims, compensated absences
Due in more than one year 43,339,089 111,688,615 155,027,704 Other long‐term obligations:

Net pension liability 87,919,010                     14,811,526                     102,730,536 Net OPEB liability 17,368,762                     4,392,508                       21,761,270 Total liabilities 166,152,938                   148,680,144                   314,833,082 DEFERRED INFLOWS OF RESOURCES
Related to pensions 25,105,088                     6,282,803                       31,387,891 Related to OPEB 6,469, 200                       1,636,042                       8,105,242 Leases 65,348,679                     204,682                           65,553,361 Total deferred inflows of resources 96,922,967                     8,123,527                       105,046,494 NET POSITION
Net investment in capital assets 111,961,302                   159,768,229                   271,729,531 Restricted
Capital projects 17,166,662                     ‐                                        17,166,662 Community Development 8,092,813                       ‐                                        8,092,813 Debt service ‐                                        2,530,895                       2,530,895 Pensions 16,347,990                     3,546,488                       19,894,478 Other purposes 689,514                           ‐                                        689,514 Unrestricted (deficit) (56,728,304)                   64,957,037                     8,228,733 Total net position 97,529,977$                   230,802,649$                328, 332,626$ CITY OF LODI
Statement of Net Position
June 30, 2022
Primary Government
The notes to financial statements are an integral part of this statement. 19 Functions/Programs Expenses Charges for Services
Operating Grants and
Contributions
Capital Grants and
Contributions
Primary government:

Governmental activities:

General government 14,493,009 2,056,080$ ‐$ ‐$ Public protection 41,534,207 1,244,728 1,984,256 4,678,125 Public works 11,799,877 1,050,770 2,702,280 9,190,832 Community development 2,654,080 4,175,050 83,102 ‐ Library 1,448,243 12,494 87,127 ‐ Parks and recreation 4,317,544 1,868,226 14,784 1,965,329 Debt Service 15,889,146 ‐ ‐ ‐ Total governmental activities 92,136,106 10,407,348 4,871,549 15,834,286 Busine
ss‐type activities:

Electric 74,001,860 80,342,751 5,035,197 1,185,639 Wastewater 11,623,599 17,145,038 354,134 4,356,958 Water 12,645,752 14,187,925 368,483 2,990,276 Transit Funds 4,903,574 263,968 2,685,007 149,704 Total business‐type activities 103,174,785 111,939,682 8,442,821 8,682,577 Total primary government 195,310,891$ 122,347,030$ 13,314,370$ 24,516,863$ Total general revenues, and transfers
Property taxes
Special assessments
Sales tax
Document transfer
Franchise taxes
Business license tax
Transient occupancy tax
Gran
ts and contributions not restricted to specific programs Investment earnings (loss)
Other
Transfers
General revenues:

Program Revenues
Change in net position
Net position ‐ beginning
Net position ‐ ending
CITY OF LODI
Statement of Activities
For the Year Ended June 30, 2022
The notes to financial statements are an integral part of this statement. 20 Governmental
Activities
Business‐type
Activities Total
(12,436,929)$ ‐ $ (12,436,929)$ (33,627,098) ‐ (33,627,098) 1,144,005 ‐ 1,144,005 1,604,072 ‐ 1,604,072 (1,348,622) ‐ (1,348,622) (469,205) ‐ (469,205) (15,889,146) ‐ (15,889,146) (61,022,923) ‐ (61,022,923) ‐ 12,561,727 12,561,727 ‐ 10,232,531 10,232,531 ‐ 4,900,932 4,900,932 ‐ (1,804,895) (1,804,895) ‐ 25,890,295 25,890,295 (61,022,923) 25,890,295 (35,132,628) 13,680,792 ‐ 13,680,792 512,262 ‐ 512,262 26,247,772 ‐ 26,247,772 6,497,826 ‐ 6,497,826
9,933,619 ‐ 9,933,619 2,373,206 ‐ 2,373,206 1,485,320 ‐ 1,485,320 7,884,584 ‐ 7,884,584 (3,474,490) (1,498,177) (4,972,667) 15,906,043 (1,748,718) 14,157,325 3,453,840 (3,453,840) ‐ 84,500,774 (6,700,735) 77,800,039 23,477,851 19,189,560 42,667,411 74,052,126 211,613,089 285,665,215 $ 97,529,977 $ 230,802,649 $ 328,332,626 Net (Expense) Revenue and Changes in Net Position
Primary Government
CITY OF LODI
Statement of Activities (Continued)
For the Year Ended June 30, 2022
The notes to financial statements are an integral part of this statement. 21 (This page intentionally left blank.)
22 Major Funds:

General Fund
Streets Fund
Government Fund Types
Major Funds:

Electric Fund
Wastewater Fund
Water Fund
Nonmajor Enterprise Fund:

Transit Fund
Internal Service Funds
Proprietary Fund Types
Private-purpose Trust Funds
Fund
Financial
Statements
23 (This page intentionally left blank.)
24 FUND FINANCIAL

STATEMENT DESCRIPTIONS
Government Fund Types
Governmental Funds consist of the General Fund, Special Revenue Funds, Debt Service Fund and Capital Projects Funds.

Major Governmental Funds:

GENERAL FUND
This fund is maintained to account for all financial resources that are not restricted as to their use. This includes property and sales taxes, business tax receipts, franchise taxes and various subventions such as Motor Vehicle In-Lieu fees received from the State of California. With the exception of grant programs, General Fund resources can be utilized for any legitimate governmental purpose.

STREETS FUND
This fund was established to account for the following types of revenues and expenditures:

Gas Tax
To account for revenues and expenditures apportioned to the City under the Streets and Highway Code. Portions of the tax rate levied by the State of California on all gasoline purchases are allocated to cities throughout the State on a population basis. These funds are restricted for expenditure by the State of California for street related purposes only.

Development Impact Mitigation Fees
To account for impact fees charged to provide for the building of various storm dr ains and street improvements needed to serve new development. The fees are calculated on a per acre basis and are collected at subdivision final map approval or with building permit stage effective November 4, 1991.

Measure K Sales Tax
To account for revenues and expenditures apportioned to the City for sales tax collections under Measure K. Expenditures for administration, maintenance and construction must be for street-related projects.

Intermodal Surface Transportation Efficiency Act (ISTEA) To account for revenues from the federal highway administration for programs including surface transportation program (STP) for streets and roads, congestion mitigation and air quality program (CMAQ) and hazard elimination safety (HES) for street lighting projects.

Nonmajor Governmental Funds can be found in supplementary information.

25 Proprietary Fund Types
Proprietary funds consist of the enterprise funds and the Internal Service funds.

Major Enterprise Funds:

ELECTRIC FUND
The City established this fund in order to account for the provision of electric services to the residents of the City. All activities necessary to provide such services are accounted for in this fund, including but not limited to, source of supply, overhead, systems maintenance, customer service, engineering, administration, capital improvements maintenance and debt service.

WASTEWATER FUND
This fund was established by the City in order to account for the provision of wastewater collection and treatment services to the residents of the City. All activities necessary to provide such services are accounted for in this fund, including, but not limited to, administration, operations, maintenance, improvements and debt service.

WATER FUND
This fund was establi shed by the City in order to account for the provision of water to the residents of the City as well as some customers in the County. All activities to provide such services are accounted for in this fund, including, but not limited to administration, operations, distribution, maintenance, capital improvements and debt service.

Nonmajor Enterprise Fund:

TRANSIT FUND
This fund is used to account for the operations of the Dial-A-Ride and the Grapeline bus system.

Internal Service Funds:

These funds are used to account for interdepartmental operations where it is the stated intent that costs of providing services to the departments of the City on a continuing basis be financed or recovered primarily by charges to the user departments.

Fiduciary Fund Types

PRIVATE-PURPOSRE TRUST FUNDS
These funds are used to account for assets held by the Library Board as trustee of the Lodi Public Library and for assets held by the City in accordance with the trust agreement on behalf of the Hutchins Street Square.

26 Other Governmental Total Governmental
ASSETS General Fund Streets Funds Funds
Cash and investments 20,814,748 $ 17,197,958$ 30,489,691$ 68,502,397$ Accounts receivables, net 7,545,799 1,104,734 123,766 8,774,299 Property taxes receivables 121,392 ‐ ‐ 121,392 Interest receivable 103,793 9,384 21,180 134,357 Lease receivable 65,611,920 ‐ 47,344 65,659,264 Due from other funds ‐ ‐ 1,978,118 1,978,118 Home loan receivable ‐ ‐ 35,572 35,572 Due from other governmental agencies 1,403,511 ‐ 2,198,981 3,602,492 Inventor
y ‐ ‐ 4,500 4,500 Prepaid 24,321 200 2,015 26,536 Restricted cash and investments 15,198,535 294,423 15,868,383 31,361,341 Total assets 110,824,019$ 18,606,699$ 50,769,550$ 180,200,268$

LIABILITIES
Accounts payable and other liabilities 5,778,918$                    1,239,110$                    1,056,455$                    8,074,483$ Accrued salaries and wages 514,615                         14,315                           63,639                           592,569 Due to other funds ‐                                      ‐                                      1,978,118                      1,978,118 Unearned r
evenue ‐                                      ‐                                      43,520                           43,520 Total liabilities 6,293,533                      1,253,425                      3,141,732                      10,688,690 DEFERRED INFLOWS OF RESOURCES
Unavailable revenue 261,282                         3,609                             36,742                           301,633 Leases 65,305,154                    ‐                                      43,525                           65,348,679 Total deferred inflows of resources 65,566,436                    3,609                             80,267                           65,650,312 FUND BALANCES
Nonspendable
Inventory ‐                                      ‐                                      4,500                             4,500 Prepaid 24,321                           200                                 2,015                             26,536 Restricted
Road‐related projects ‐                                      17,055,042                    111,620                         17,166,662 Home and CDBG progra
m ‐                                       ‐                                      10,338                           10,338 Public safety ‐                                       ‐                                      336,052                         336,052 Community development ‐                                      ‐                                      8,092,813                      8,092,813 Capital Projects ‐                                      ‐                                      27,139,208                    27,139,208 Pension 15,198,535                    294,423                         855,032                         16,347,990 Special assessments ‐                                      ‐                                      343,124                         343,124 Committed
Video ‐ related capital projects 352,540                         ‐                                      ‐                                      352,540 Parks, recreation and community services ‐                                      ‐                                      409,176                         409,176 Assigned
Capital projects ‐                                      ‐                                      10,243,673                    10,243,673 Una
ssigned 23,388,654                    ‐                                      ‐                                      23,388,654 Total fund balances 38,964,050                    17,349,665                    47,547,551                    103,861,266 Total liabilities, deferred inflows of resources
and fund balances 110,824,019$               18,606,699$                 50,769,550$                 180,200,268$ CITY OF LODI
Governmental Funds
June 30, 2022
Balance Sheet
The notes to financial statements are an integral part of this statement. 27 Fund balances ‐ total governmental funds 103,861,266$ Amounts reported for governmental activities in the statement of net position are different because:

Capital assets used in governmental activities are not current financial resources and, therefore, are not reported in the funds.

Nondepreciable capital assets 31,489,674
Depreciable capital assets, net 109,414,697
Internal Service Fund capital asset (17,367)
Rigt to use a
ssets at historical cost 22,433
Deferred outflows of resources related to pensions & OPEB reported in government‐wide statement of net position 15,339,918 Deferred inflows of resources related to pensions & OPEB are reported in government‐wide statement of net position (31,574,288) Deferred outflows of resources related to unamortized losses on defeasance are not re ported in governmental funds. 1,621,078 Amounts reported in Internal Service Funds
Deferred outflows of resources related to pensions & OPEB (128,336) Deferred inflows of resources related to pensions & OPEB 389,155 Long‐term liabilities and related accounts are not due and payable in the current period and therefore are not reported in the gov ernmental funds as follows:

Accrued Interest (239,283)
Long‐term liabilities ‐ Due within one year (7,848,708) Long‐term Liabilities ‐ Due in more than one year (43,339,090) Net pension liability (87,919,010)
Net OPEB liability (17,368,762)
Long‐term liabilities reported in the Internal Service Funds Net pension liability 761,904
Net OPEB liability 177,111
Accrued compensated absenc es 284,795
Self‐insurance liability 10,870,196
Unavailable revenue reported in governmental funds was
recorded as revenue in the statement of activities. (41,551) Internal service funds are used by management to charge the costs of general liability insurance, workers' compensation insurance, health benefits insurance, other insurance, employee benefits and the cost of operating and maintaining the Cit
y's fleet to individual funds. The assets and liabilities of the internal service funds are included in governmental activities in the statement of net position. 11,774,145 Net position of governmental activities 97,529,977$
CITY OF LODI
Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position
June 30, 2022
The notes to financial statements are an integral part of this statement. 28 General Fund Streets
Other Governmental
Funds
Total Governmental
Funds

REVENUES
Taxes 34,483,025 $ ‐ $ ‐ $ 34,483,025$ Sales and use tax 26,247,772 ‐ ‐ 26,247,772 Licenses and permits 62,077 ‐ 2,487,420 2,549,497 Intergovernmental revenues 9,172,086 6,417,449 4,850,500 20,440,035 Developer impact fees ‐ ‐ 2,592,177 2,592,177 Charges for services 2,369,097 1,463,094 3,379,467 7,211,658 Fines, forfeits, and penalties 303,921 ‐ ‐ 303,921 Investment and rental income (303,334) (450,865) (369,815) ( 1,124,014) Miscellaneous revenue 320,093 139,016 114,206 573,315 Total revenues 72,654,737 7,568,694 13,053,955 93,277,386

EXPENDITURES
Current:

General government 13,197,297 ‐ 3,292,916 16,490,213 Public protection 41,054,131 ‐ 110,540 41,164,671 Public works 3,034,047 2,901,344 896,301 6,831,692 Community development 393,290 ‐ 2,306,181 2,699,471 Library 1,214,407 ‐ ‐ 1,214,407 Parks and recreation ‐ ‐ 3,144,921 3,144,921 Capital outlay ‐ 1,994,329 5,848,912 7,843,241 Debt service:

Interest 76                                    ‐                                       665,103                          665,179 Prin
cipal retirement 11,174                            ‐                                       14,405,423                    14,416,597 Total expenditures 58,904,422                    4,895,673                      30,670,297                    94,470,392 Excess (deficiency) of revenues over
expenditures 13,750,315                    2,673,021                      (17,616,342)                   (1,193,006) OTHER FINANCING SOURCES (USES)
Transfers in 3,494,790                      541,330                          21,172,380                    25,208,500 Transfers out (19,004,760)                   ‐                                       (2,749,900)                     (21,754,660) Proceeds from sale of property ‐                                       1,461                              ‐                                       1,461 Lease liabiities issued 33,607                            ‐                                       ‐                                       33,607 Bond proceeds ‐                                       ‐                                       28,884,344                    28,884,344 Total other financing sources (us es) (15,476,363)                   542,791                          47,306,824                    32,373,252 Net change in fund balances (1,726,048)                     3,215,812                      29,690,482                    31,180,246 Fund balances ‐ beginning 40,690,098                    14,133,853                    17,857,069                    72,681,020 Fund balances ‐ ending 38,964,050$                  17,349,665$                  47,547,551$                  103,861,266$ CITY OF LODI
Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds
For the Year Ended June 30, 2022
The notes to financial statements are an integral part of this statement. 29 Changes in fund balances ‐ total governmental funds 31,180,246$ Amounts reported for governmental activities are different because:

Governmental funds report capital outlays as expenditures. However, in the statement of activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. In addition, contributed capital assets do not impact the gov ernmental funds however they are reported in the statement of activities.

Capital outlays, capital asset contributions, and depreciation expense are as follows:

Capital outlays 7,843,241
Capital asset contributions 4,567,912
Depreciation expense (8,490,043)
Less: Internal service fund depreciation 1,447
Amortization (11,174)
Long‐term debt proceeds provide current financial resources to governmental funds, but issuing debt proceeds increases long‐term liabilites in the satement of net position.

Pr
oceeds from long‐term debt:

Refunding bond issued (28,250,000)
Bond premium, less amortization (634,343)
Cost of issuance 547,270
Payment to escrow agent for debt refunding ‐ principal retirement 13,231,327 Repayments of the principal are expenditures in the governmental funds, but the repayments reduce long‐term liabilities in the statement of net position.

Prin
cipal payment 1,103,673
Lease payable 11,174
Internal service funds are used by management to charge the costs of general liability insurance, workers' compensation insurance, health benefits insurance, other insurance, employee benefits and the cost of operating and maintaining the City's fleet to individual funds. The net loss income of the internal service funds are reported wi
th governmental activities. 2,336,735
Revenues reported in the funds since they provide current financial resources are not reported as revenues in the statement of activities this year since they were reported in the previous year.

Other expenses in the statement of activities that do not use current financial resources are not reported as expenditures in the gov
ernmental funds.

Change in compensated absences and sick leave conversion balance (121,240) Amortization of loss on defeasance (20,463)
Amortization of bond premium 58,090
Change in unavailable revenue 1,272,691
Change in accrued interest 73,981
Change in pension liability and related amounts (137,372) Change in OPEB obligation and related am ounts (1,085,301) Change in net position of governmental activities 23,477,851$ CITY OF LODI
Reconciliation of the Statement of Revenues,
Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities
For the Year Ended June 30, 2022
The notes to financial statements are an integral part of this statement. 30 Electric Wastewater Water
ASSETS
Current assets:

Cash and investments 26,819,525$ 30,394,163$ 16,696,736$ Restricted cash and investments ‐ ‐ 11,745,182
Account receivables, net 7,912,688 1,883,965 1,099,227 Interest receivable 16,801 18,289 17,192
Lease receivable ‐ ‐ ‐
Due from other governmental agencies ‐ ‐ ‐
Advance receivables ‐ NCPA 10,922,475 ‐ ‐
Inventory 6,075,609 52,000 522,039
Other assets 8,378 833 13,226
Total current assets 51,755,476 32,349,250 30,093,602 Noncurrent assets:

Restrict
ed assets with fiscal agents 4 2,530,823 68
Restricted cash and investments 1,998,398 725,219 725,219 Lease receivable ‐ ‐ ‐
Right to use leased assets, net of amortization 22,446 22,446 67,285 Capital assets:

Nondepreciable 5,549,947 6,476,980 404,133
Depreciable, net 42,025,419 84,006,469 101,364,359
Total noncurrent assets 49,596,214 93,761,937 102,561,064 Total assets 101,351,690 126,111,187 132,654,666 DEFERRED OUTFLOWS OF RESOURCES
Unamortized losses on defeasan ce of debt 3,699,058 1,404,668 (356,881) Related to OPEB 79,230 163,118 92,299
Related to pensions 1,324,652 693,033 160,542
Total deferred outflows of resources 5,102,940 2,260,819 (104,040)

LIABILITIES
Current liabilities:

Accounts payable and other liabilities 2,443,070 665,072 3,267,055 Accrued salaries and wages 106,840 57,693 10,973
Accrued interest 591,204 746,378 83,104
Unearned revenue ‐ ‐ 660,104
Loans payable 229,405 ‐ ‐
Lease liability 11,217 11,217 32,250
Accr
ued compensated absences 810,245 463,708 60,773
Self insurance liability ‐ ‐ ‐
Pollution remediation obligation ‐ ‐ 400,000
Certificates of participation and revenue
bonds payable 2,962,247 2,443,708 1,140,646
Total current liabilities 7,154,228 4,387,776 5,654,905 Noncurrent liabilities:

Self insurance liability ‐ ‐ ‐
Lease liability 11,217 11,217 34,986
Accrued compensated absences 413,551 310,219 44,604
Certificates of participation and revenue
bo
nds payable 37,015,580 32,591,572 26,376,755
Net pension liability 8,788,172 4,597,808 1,065,088
Net OPEB liability 1,039,957 2,141,049 1,211,502
Pollution remediation obligation ‐ ‐ 14,639,357 Total noncurrent liabilities 47,268,477 39,651,865 43,372,292 Total liabilities 54,422,705 44,039,641 49,027,197
DEFERRED INFLOWS OF RESOURCES
Related to pensions 3,727,796 1,950,314 451,793
Related to OPEB 387,345 797,459 451,238
Leases ‐
‐ ‐
Total deferred inflows of resources 4,115,141 2,747,773 903,031 NET POSITION
Net investment in capital assets 11,195,530 59,321,638 73,703,931 Restricted for:

Debt service 4 2,530,823 68
Pensions 1,998,398 725,219 725,219
Unrestricted (deficit) 34,722,852 19,006,912 8,191,180 Total net position $ 47,916,784 $ 81,584,592 $ 82,620,398 June 30, 2022
Business‐type Activities
CITY OF LODI
Statement of Net Position
Proprietary Funds
The notes to financial statements are an integral part of this statement. 31 Governmental
Activities
Non‐Major
Transit Funds Total Enterprise Funds Internal Service Funds ASSETS
Current assets:

Cash and investments 1,359,328$ 75,269,752$ 23,615,145$ Restricted cash and investments ‐ 11,745,182 184,370 Account receivables, net 1,489,325 12,385,205 314,443 Interest receivable 920 53,202 14,000 Lease receivable 41,840 41,840 ‐ Due from other governmental agencies 1,473,884 1,473,884 ‐ Advance receivables ‐ NCPA ‐ 10,922,475 ‐ Inventory ‐ 6,649,648 251,512 Other ass
ets 1,555 23,992 107,327 Total current assets 4,366,852 118,565,180 24,486,797 Noncurrent assets:

Restricted assets with fiscal agents ‐ 2,530,895 ‐ Restricted cash and investments 97,652 3,546,488 ‐ Lease receivable 163,092 163,092 ‐ Right to use leased assets, net of amortization ‐ 112,177 ‐ Capital assets:

Nondepreciable 400,000                         12,831,060                   ‐ Depreciable, net 15,147,130                   242,543,377                 17,367 Total noncurrent assets 15,807,874                   261,727,089                 17,367 Total as
sets 20,174,726                   380,292,269                 24,504,164 DEFERRED OUTFLOWS OF RESOURCES
Unamortized losses on defeasance of debt ‐                                      4,746,845                      ‐ Related to OPEB ‐                                      334,647                         13,493 Related to pensions 54,332                           2,232,559                      114,843 Total deferred outflows of resources 54,332                           7,314,051                      128,336

LIABILITIES
Current liabilities:

Accounts payable and other liabilities 558,854                         6,934,051                      322,554 Accrued salaries and wages 3,019                             178,525                         8,756 Accrued interest ‐                                      1,420,686                      ‐ Unear
ned revenue ‐                                      660,104                         ‐ Loans payable ‐                                      229,405                         ‐ Lease liability ‐                                      54,684                           ‐ Accrued compensated absences 28,713                           1,363,439                      43,884 Self insurance liability ‐                                      ‐                                      3,337,660 Pollution remediation obligation ‐                                      400,000                         ‐ Certificates of participation and revenue
bonds payable ‐                                      6,546,601                      ‐ Total current liabilities 590,586                         17,787,495                   3,712,854 Noncurrent liabilities:

Self insurance liability ‐                                      ‐                                      7,532,536 Lease liability ‐                                      57,420                           ‐ Accru
ed compensated absences 239,557                         1,007,931                      284,795 Certificates of participation and revenue
bonds payable ‐                                      95,983,907                   ‐ Net pension liability 360,458                         14,811,526                   761,904 Net OPEB liability ‐                                      4,392,508                      177,111 Pollution remediation obligation ‐                                      14,639,357                   ‐ Total noncurrent liabilities 600,015                         130,892,649                 8,756,346 Total liabilities 1,190,601                      148,680,144                 12,469,200 DEFERRED INFLOWS OF RESOURCES
Related to pensions 152,900                         6,282,803                      323,187 Related to OPEB ‐                                      1,636,042                      65,968 Leas
es 204,682                         204,682                         ‐ Total deferred inflows of resources                          357,582                       8,123,527                           389,155 NET POSITION
Net investment in capital assets 15,547,130                   159,768,229                 17,367 Restricted for:

Debt service ‐                                      2,530,895                      ‐ Pensions 97,652                           3,546,488                      ‐ Unrestricted (deficit) 3,036,093                      64,957,037                   11,756,778 Total net position 18,680,875$                 230,802,649$               11,774,145$ Business‐type Activities
June 30, 2022
Proprietary Funds
Statement of Net Position (Continued)
CITY OF LODI
The notes to financial statements are an integral part of this statement. 32 Electric Wastewater Water
OPERATING REVENUES
Charges for services 78,437,312$                 17,005,967$                 13,797,949$ Other operating revenue 1,905,439                      139,071                         389,976 Total operating revenue 80,342,751                    17,145,038                    14,187,925 OPERATING EXPENSES
Personnel services 6,419,399                      621,779                         3,389,438 Supplies, materials and services 14,887,163                    3,410,361                      3,884,298 Utilities 48,441,477                    931,022                         1,251,226 Depreciation 2,086,084                      4,671,326                      3,313,534 Claims ‐                                      ‐                                      ‐ Total operating expenses 71,834,123                    9,634,488                      11,838,496 Operating income (loss) 8,508,628                      7,510,550                      2,349,429 NONOPERATING REVENUES (EXPENSES)
Investment inco
me (360,995)                        (370,463)                        (783,325) Interest expense (2,167,737)                     (1,989,111)                     (807,256) Intergovernmental revenues 1,039,755                      354,134                         368,483 Greenhouse gas allowance 3,995,442                      ‐                                      ‐ Other non‐operating expenses (1,039,755)                     (354,134)                        (368,483) Gain on sale of city property 2,997                             71                                   ‐ Total nonoperating revenues (expenses) 1,469,707                      (2,359,503)                     (1,590,581) Income (loss) before contributions and
transfers 9,978,335                      5,151,047                      758,848 Capital contributions 1,185,639                      4,356,958                      2,990,276 Transfers out (1,243,790)                     (1,084,700)                     (914,920) Chang
e in net position 9,920,184                      8,423,305                      2,834,204 Total net position (deficit) ‐ beginning 37,996,600                    73,161,287                    79,786,194 Total net position (deficit) ‐ ending 47,916,784$                 81,584,592$                 82,620,398$ CITY OF LODI
Statement of Revenues, Expenses, and Changes in Net Position Proprietary Funds
For the Year Ended June 30, 2022
Business‐type Activities
The notes to financial statements are an integral part of this statement. 33 Governmental
Activities
Non‐Major
Transit Funds Total Enterprise Funds Internal Service Funds OPERATING REVENUES
Charges for services 90,587 $                         109,331,815$               21,470,587$ Other operating revenue 173,381                          2,607,867                      ‐ Total operating revenue 263,968                          111,939,682                 21,470,587 OPERATING EXPENSES
Personnel services 231,507                          10,662,123                    2,142,932 Supplies, materials and services 3,570,267                       25,752,089                    11,861,659 Utilities 47,813                            50,671,538                    13,012 Depreciation 1,053,987                       11,124,931                    1,447 Claims ‐                                      ‐                                       4,557,312 Total operating expenses 4,903,574                       98,210,681                    18,576,362 Oper
ating income (loss) (4,639,606)                     13,729,001                    2,894,225 NONOPERATING REVENUES (EXPENSES)
Investment income 16,606                           (1,498,177)                     (571,594) Interest expense ‐                                      (4,964,104)                     ‐ Intergovernmental revenues 2,685,007                      4,447,379                      ‐ Greenhouse gas allowance ‐                                      3,995,442                      ‐ Other non‐operating expenses ‐                                      (1,762,372)                     ‐ Gain on sale of city property 10,586                           13,654                           14,104 Total nonoperating revenues (expenses) 2,712,199                      231,822                         (557,490) Income (loss) before contributions and
transfers (1,927,407)                     13,960,823                    2,336,735 Capital co
ntributions 149,704                         8,682,577                      ‐ Transfers out (210,430)                        (3,453,840)                     ‐ Change in net position (1,988,133)                     19,189,560                    2,336,735 Total net position (deficit) ‐ beginning 20,669,008                    211,613,089                 9,437,410 Total net position (deficit) ‐ ending 18,680,875$                 230,802,649$               11,774,145$ Proprietary Funds
Statement of Revenues, Expenses, and Changes in Net Position  (Continued) CITY OF LODI
Business‐type Activities
For the Year Ended June 30, 2022
The notes to financial statements are an integral part of this statement. 34 Electric Wastewater Water
CASH FLOWS FROM OPERATING ACTIVITIES
Cash receipts from customers 79,711,297$                 16,899,669$                 14,173,985$ Cash from interfund customers ‐                                      ‐                                  ‐ Payments to suppliers (65,859,804)                  (2,726,805)                     (4,581,676) Payments to employees (9,075,411)                     (5,148,837)                     (3,284,593) Due from other funds charges for services ‐                                      (909,477)                        (1,232,037) Leases ‐                                      ‐                                  ‐ Net cash provided (used) by operating activities 4,776,082                      8,114,550                      5,075,679 CASH FLOWS FROM NONCAPI TAL FINANCING ACTIVITIES
Grants 1,039,755                      354,134                         368,483 Grants expenses (1,039,755)                     (354,134)                        (368,483) Repaid from other funds ‐                                      ‐                                  148,875 Received ‐ greenhouse gas allowance 3,995,442                      ‐                                  ‐ Transfers out (1,243,789)                     (1,084,700)                     (914,920) Net cash provided (used) by noncapital financing
activities 2,751,653                      (1,084,700)                     (766,045) CASH FLOWS FROM CAPITAL AND RELATED FINANCING

ACTIVITIES
Fees received for water meter installations ‐                                      ‐                                  10,269 Acquisiti
on and construction of capital assets (5,837,505)                     (1,209,896)                     (1,103,209) Fees received from developers 426,581                         1,998,643                      1,198,960 Capital grants received ‐                                      ‐                                  ‐ Sale of property 2,997                             71                                   ‐ Principal payments on debt (2,589,178)                     (1,970,675)                     (930,000) Interest payments on debt (1,833,952)                     (1,356,072)                     (977,550) Net cash provided (used) by capital and related
financing activities (9,831,057)                     (2,537,929)                     (1,801,530) CASH FLOWS FROM IN VESTING ACTIVITIES
Interest on investments (845,600)                        (677,629)                        (812,145) Net cash provided by investing activities (845,600)                        (677,629)                        (812,145) Net increase (decrease) in cash and cash equivalents (3,148,922)                     3,814,292                      1,695,959 Balances ‐ beginning of year 31,966,849                    27,666,063                    27,471,246 Balances ‐ end of the year 28,817,927$                 31,480,355$                 29,167,205$ Reconciliation to the statement of net position:

Cash and investments 26,819,525 $ 30,394,163$ 16,696,736$ Restricted cash and investments ‐ ‐ 11,745,182 Restricted assets with fiscal agents 4 2,530,823 68 Restricted cash and investments 1,998,398 725,219 725,219 Less: Guaranteed Investment Contract ‐ (2,169,850) ‐ Total cash and cash equivalents 28,817,927$ 31,480,355$ 29,167,205$ CITY OF LODI
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2022
Business‐type Activities ‐ Enterprise Funds
The notes to financial statements are an integral part of this statement. 35 Electric Wastewater Water
Reconciliation of operating income (loss) to net cash
provided (used) by operating activities:

Operating Income (loss) 8,508,628$ 7,510,550$ 2,349,429$ Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities:

Depreciation Expense 2,074,923 4,671,326 3,301,686 Changes in assets, liabilities and deferred outflow/inflows of resources:

Loans receivable 35,344                           ‐                                      ‐ Accounts Receivables (1,933,739)                     (245,363)                        (3,671) Advance rece
ivable ‐ NCPA 1,267,041                      ‐                                      ‐ Inventory (1,592,222)                     (5,100)                            6,200 Other assets 5,112                             (833)                               (6,933) Deferred inflows of resources ‐ Lease related ‐                                      ‐                                      ‐ Compensated absences 641,566                         16,283                           4,526 Accounts Payable and other liabilites (153,467)                        386,728                         (503,574) Accrued salaries and wages 36,709                           14,795                           3,855 Lease receivable, net (89)                                  (11,250)                          (402) Net pension liability, OPEB and related amounts (4,113,724)                     (4,222,586)                     268,030 Self‐insu
rance liability ‐                                      ‐                                      ‐ Pollution remediation obligation ‐                                      ‐                                      (343,467) Net cash provided by operating activities 4,776,082$                    8,114,550$                    5,075,679$ Noncash investing, capital and financing activities:

Capital asset contributions 1,185,639$                    4,356,958                      2,990,276$ Amortization of issuance premium (376,175)                         297,292                         190,346 Amortization of losses on defeasance 477,246                         ‐                                      ‐ Total noncash investing, capital and financing activities 1,286,710$                    4,654,250$                    3,180,622$ CITY OF LODI
Statement of Cash Flows (Continued)
Proprietary Funds
For the Year Ended June 30, 2022
Business‐type Activities ‐ Enterprise Funds
The notes to financial statements are an integral part of this statement. 36 Governmental Activities
Non‐Major
Transit Fund Total Enterprise Funds Internal Service Funds CASH FLOWS FROM OPERATING ACTIVITIES
Cash receipts from customers 263,967 $                       111,048,918$               498,058$ Cash from interfund customers ‐                                  ‐                                       20,884,586 Payments to suppliers (3,375,017)                      (76,543,302)                  (17,244,355) Payments to employees (426,432)                        (17,935,273)                  (2,023,400) Due from other funds (47,249)                          (2,188,763)                     ‐ Leases (204,355)                        (204,355)                        ‐ Net cash provided (used) by operating activities (3,789,086)                     14,177,225                    2,114,889 CASH FLOWS FR
OM NONCAPITAL FINANCING ACTIVITIES
Grants 4,604,229                      6,366,601                      ‐ Grants expenses ‐                                  (1,762,372)                     ‐ Repaid from other funds ‐                                  148,875                         ‐ Received ‐ greenhouse gas allowance ‐                                  3,995,442                      ‐ Transfers out (210,430)                        (3,453,839)                     ‐ Net cash provided (used) by noncapital financing
activities 4,393,799                      5,294,707                      ‐ CASH FLOWS FROM CAPITAL AND RELATED FINANCING

ACTIVITIES
Fees received for water meter installatio ns ‐                                  10,269                           ‐ Acquisition and construction of capital assets (95,912)                          (8,246,522)                     ‐ Fees received from developers ‐                                  3,624,184                      ‐ Capital grants received 149,704                         149,704                         ‐ Sale of property 10,586                           13,654                           14,104 Principal payments on debt ‐                                  (5,489,853)                     ‐ Interest payments on debt ‐                                  (4,167,574)                     ‐ Net cash provided (used) by capital and related
financing activities 64,378                           (14,106,138)                  14,104 CASH FLOWS FR
OM INVESTING ACTIVITIES
Interest on investments 15,333                           (2,320,041)                     (578,903) Net cash provided by investing activities 15,333                           (2,320,041)                     (578,903) Net increase (decrease) in cash and cash equivalents 684,424                         3,045,753                      1,550,090 Balances ‐ beginning of year 772,556                         87,876,714                    22,249,425 Balances ‐ end of the year 1,456,980$                    90,922,467$                 23,799,515$ Reconciliation to the statement of net position:

Cash and investments 1,359,328 $ 75,269,752$ 23,615,145$ Restricted cash and investments ‐ 11,745,182 184,370 Restricted assets with fiscal agents ‐ 2,530,895 ‐ Restricted cash and investments 97,652 3,546,488 ‐ Less: Guaranteed Investment Contract ‐ (2,169,850) ‐ Total cash and cash equivalents 1,456,980$ 90,922,467$ 23,799,515$ Proprietary Funds
Statement of Cash Flows (Continued)
CITY OF LODI
Business‐type Activities ‐ Enterprise Funds
For the Year Ended June 30, 2022
The notes to financial statements are an integral part of this statement. 37 Governmental Activities
Non‐Major
Transit Fund Total Enterprise Funds Internal Service Funds Reconciliation of operating income (loss) to net cash
provided (used) by operating activities:

Operating Income (loss) (4,639,606) $ 13,729,001$ 2,894,225$ Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities:

Depreciation Expense 1,053,987 11,101,922 1,447 Changes in assets, liabilities and deferred outflo w/inflows of resources:

Loans receivable ‐ 35,344 ‐ Accounts Receivables ‐ (2,182,773) (87,943) Advance receivable ‐ NCPA ‐ 1,267,041 ‐ Inventory ‐ (1,591,122) (48,169) Other assets (1,555) (4,209) 10,271 Deferred inflows of resources ‐ Lease related 204,682 204,682 ‐ Compensated absences 2,825 665,200 (3,459) Accounts Payable and other liabilites (7,313) (277,626) (15,506) Accrued salaries and wages (124) 55,235 2,584 Lease receivable (204,355) (216,096) ‐ Net pensi
on liability, OPEB and related amounts (197,627) (8,265,907) (2,026,221) Self‐insurance liability ‐ ‐ 1,387,660 Pollution remediation obligation ‐ (343,467) ‐ Net cash provided (used) by operating activities (3,789,086)$ 14,177,225$ 2,114,889$ Noncash investing, capital and financing activities:

Capital asset contributions 149,704$ 8,682,577$ ‐ $ Amortization of issuance premium ‐ 111,463 ‐ Amortization of losses on defeasance ‐ 477,246 ‐ Total noncash investing, capital and financing activities 149,704$ 9,271,286$ ‐ $ For the Year Ended June 30, 2022
Proprietary Funds
Statement of Cash Flows (Continued)
CITY OF LODI
Business‐type Activities ‐ Enterprise Funds
The notes to financial statements are an integral part of this statement. 38 Private‐Purpose Trust
Funds
ASSETS
Cash and investments 150,556$
Interest receivable 1
Total assets 150,557
Restricted: for organizations 150,557$
CITY OF LODI
Statement of Fiduciary Net Position
June 30, 2022
The notes to financial statements are an integral part of this statement. 39 Private‐Purpose Trust
Funds

ADDITIONS
Investment income (20,727) $

DEDUCTIONS
Current:

Library 1,512
Change in Fiduciary Net Position (22,239)
Net Position ‐ beginning of the year 172,796
Net Position ‐ end of the year 150,557$
CITY OF LODI
Statement of Changes in Fiduciary Net Position
For the Year Ended June 30, 2022
The notes to financial statements are an integral part of this statement. 40 Notes to the
Basic
Financial
Statements
41 CITY OF LODI
Index to the Notes to the Basic Finaicial Statements
For the Year Ended June 30, 2022

Note 1 – Summary of Significant Accounting Policies....................................................................................... 45

A. The Financial Reporting Entity .............................................................................................................. 45 B. Government-Wide and Fund Financial Statements .............................................................................. 45 C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation .............................. 46 D. Cash and Investments ........................................................................................................................... 47 E. Restricted Cash and Investments .......................................................................................................... 47 F. Restricted Cash and Investments with Fiscal Agents ............................................................................. 48 G. Receivables ........................................................................................................................................... 48 H. Loan Receivables ................................................................................................................................... 48 I. Property Taxes ....................................................................................................................................... 49 J. Due From/Due To Other Funds, Advances To/Advances From Other Funds, and Internal Balances ... 49 K. Transfers ................................................................................................................................................ 49 L. Long-term Obligations ........................................................................................................................... 50 M. Advance Receivable ............................................................................................................................. 50 N. Inventory ............................................................................................................................................... 50 O. Deferred Outflows and Inflows of Resources ........................................................................................ 50 P. Capital Assets......................................................................................................................................... 51 Q. Compensated Absences/Vacation and Sick Leave ................................................................................ 51 R. Pensions ................................................................................................................................................ 52 S. Other Post-Employment Benefits (OPEB) ............................................................................................. 52 T. Self-Insurance ........................................................................................................................................ 52 U. Net Position ........................................................................................................................................... 52 V. Statement of Cash Flows ....................................................................................................................... 54 W. Use of Estimates................................................................................................................................... 54 X. Leases ................................................................................................................................................... 54 Y. New Governmental Pronouncements Adopted .................................................................................... 55 Z. Reclassification and Presentation .......................................................................................................... 57

Note 2 – Cash and Investments....................................................................................................................... 57

A. Authorized Investments ........................................................................................................................ 58 B. Investments Authorized by Debt Agreements ...................................................................................... 58 C. Restricted Cash ...................................................................................................................................... 58 D. Disclosure Relating to Interest Rate Risk and Credit Risk ..................................................................... 59 E. Concentration of Credit Risk .................................................................................................................. 60 F. Custodial Credit Risk .............................................................................................................................. 60 G. Investments in Investment Pools .......................................................................................................... 61 H. Investments in Guaranteed Investment Contracts ............................................................................... 61 I. Fair Value Measurements ...................................................................................................................... 61

Note 3 – Allowance for Uncollectible Accounts............................................................................................... 62

Note 4 – Interfund Receivables/Payables........................................................................................................ 62

Note 5 – Transfers........................................................................................................................................... 63

42 CITY OF LODI
Index to the Notes to the Basic Finaicial Statements
For the Year Ended June 30, 2022

Note 6 – Capital Assets.................................................................................................................................... 64

A. Capital Assets Activity ........................................................................................................................... 64 B. Depreciation Expense ............................................................................................................................ 65 C. Amortization .......................................................................................................................................... 65

Note 7 – Long-term Liabilities.......................................................................................................................... 65

A. Long-term Liability Transactions Summary ........................................................................................... 65 B. Long Term Liabilities .............................................................................................................................. 66 C. Loans Payables ...................................................................................................................................... 67 D. Capital Lease ......................................................................................................................................... 67 E. Certificates of Participation and Revenue Bonds ................................................................................. 67

Note 8 – Pension Plans.................................................................................................................................... 69

A. Plan Descriptions .................................................................................................................................... 69 B. Benefits Provided .................................................................................................................................. 70 C. Employees Covered ............................................................................................................................... 70 D. Contributions ........................................................................................................................................ 71 E. Net Pension Liability .............................................................................................................................. 71 F. Actuarial Assumptions ........................................................................................................................... 71 G. Discount Rate ........................................................................................................................................ 71 H. Changes in the Net Pension Liability ...................................................................................................... 72 I. Sensitivity of the Net Pension Liability to Changes in the Discount Rate ............................................... 73 J. Pension Plan Fiduciary Net Position ....................................................................................................... 73 K. Pension Expense and Deferred Outflows/Inflows of Resources Related to Pensions .......................... 73

Note 9 – Post Employment Benefits Other Than Pensions............................................................................... 74

A. Plan Description .................................................................................................................................... 74 B. Eligibility ................................................................................................................................................ 75 C. Funding Policy ....................................................................................................................................... 75 D. Net OPEB Liability .................................................................................................................................. 75 E. Actuarial Methods and Assumptions..................................................................................................... 76 F. Actuarial Valuations ............................................................................................................................... 76 G. Discount Rate ........................................................................................................................................ 76 H. Sensitivity of the Net OPEB Liability to Changes in the Healthcare Cost Trend Rate ............................ 77 I. OPEB Liabilities, OPEB Expense and Deferred Outflows/Inflows of Resources to OPEB ........................ 77

Note 10 – Implementation of New GASB Pronouncements.............................................................................. 78

A. Lessee .................................................................................................................................................... 79 B. Lessor .................................................................................................................................................... 80 C. Activity ..…………………………………………………………………………………………………………………………………………..83

Note 11 – Claims and Benefits......................................................................................................................... 83

43 CITY OF LODI
Index to the Notes to the Basic Finaicial Statements
For the Year Ended June 30, 2022

Note 12 – Participaton in Joint Ventures......................................................................................................... 84

A. Northern California Power Agency........................................................................................................ 84 B. Transmission Agency of Northern California ......................................................................................... 88

Note 13 – Membership in Insurance Pools....................................................................................................... 89

A. California Joint Powers Risk Management Authority ............................................................................ 89 B. Local Agency Workers’ Compensation Excess Joint Powers Authority ................................................. 90 C. California Transit Insurance Pool ........................................................................................................... 90

Note 14 – Deficit in Net Position...................................................................................................................... 91

A. Deficit in Net Position............................................................................................................................ 91 B. Expenditures in Excess of Appropriations .............................................................................................. 91

Note 15 – Pollution Remediation Obligation.................................................................................................... 92

Note 16 – Commitments and Contingencies.................................................................................................... 92

A. Litigation and Claims ............................................................................................................................. 92 B. Water Purchase Agreement with Woodbridge Irrigation District ......................................................... 92 C. Arbitrage Earnings Rebate Liability ....................................................................................................... 92 D. Construction and Other Significant Commitments ............................................................................... 93 E. Power Supply Costs ............................................................................................................................... 93

Note 17 – Reclassification of Fund Balance...................................................................................................... 93

Note 18 – Subsequent Events.......................................................................................................................... 94

44 CITY OF LODI
Notes to Basic Financial Statements
June 30, 2022

Note 1 – Summary of Significant Accounting Policies

A. The Financial Reporting Entity

The City of Lodi (City) was incorporated on December 6, 1906, as a municipal corporation under the General Laws of the State of California. The City operates under a Council-Manager form of government and provides the following services: general government, public works, community development, public protection (police and fire), public utilities, library, parks and recreation.

The accounting policies of the City conform to generally accepted accounting principles (GAAP) as applicable to governments in the United States of America. The Governmental Accounting Standards Board (GASB) is the accepted standard setting body for governmental accounting and financial reporting principles.

An elected five-member council governs the City of Lodi. As required by GAAP, these financial statements present the City and its component units, entities for which the City is considered to be financially accountable. The component units, although legally separate entities, are, in substance, part of the City’s operations and therefore, their activities are blended with data of the City.

Blended Component Units
The City is considered to be financially accountable for an organization if the City appoints a voting majority of that organization’s governing body and the organization is able to provide specific financial benefits to or impose specific financial burdens on the City. The City is also considered to be financially accountable if an organization is fiscally dependent (i.e., it is unable to adopt its budget, levy taxes, set rates or charges or issue bonded debt without approval from the City). In certain cases, other organizations are included as component units if the nature and significance of their relationship with the City are such that their exclusion would cause the City’s financial statements to be misleading or incomplete.

The Lodi Public Financing Authority is considered to be a blended component unit of the reporting entity of the City because its sole purpose is to finance and construct the City’s public facilities. Blended component units, although legally separate entities, are in substance, part of the City’s operations and so data from these units are reported within the funds of the primary government. The Lodi Public Financing Authority does not issue separate component unit financial statements.

The City Council constitutes the Board of Directors of LPFA. The funds of LPFA have been included in the governmental activities, Enterprise (Wastewater and Water and Electric) Funds and in the accompanying basic financial statements.

B. Government-Wide and Fund Financial Statements

The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the non-fiduciary activities of the primary government and its component units. For the most part the effect of interfund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities that rely, to a significant extent, on fees and charges for support.

The statement of activities demonstrates the degree to which the direct expenses of a given function are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment.

Program revenues include (1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and (2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function. Taxes and other items not properly included among program revenues are reported instead as general revenues.

45 CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2022

Note 1 – Summary of Significant Accounting Policies (Continued)

B. Government-Wide and Fund Financial Statements (Continued)

Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements.

C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation

The government-wide financial statements are reported using the economic resources measurement focus and accrual basis of accounting, as are the proprietary fund and private-purpose trust fund financial statements.

Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grant and similar items are recognized as revenue as soon as all eligibility requirements have been met. Agency funds use the accrual basis of accounting.

Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting . Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. The City considers property tax revenues to be available if they are collected within 60 days of the end of the current fiscal year. All other revenues are considered to be available if they are generally collected within 120 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to vacation, sick leave, claims and judgments, are recorded only when payment is due.

Property taxes, other local taxes, licenses, intergovernmental revenues, and interest associated with the current fiscal period are all considered susceptible to accrual and have been recognized as revenues of the current fiscal period. All other revenues are considered to be measurable and available when the City receives cash.

Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services in connection with the fund’s principal ongoing operations. The principal operating revenues of the City’s enterprise funds, and internal service funds are charges for customer services including electric, wastewater, water and public transportation fees. Operating expenses for enterprise funds and internal service funds include the cost of services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses.

The City reports the following major governmental funds:

The General Fund is the City’s primary operating fund. It accounts for all financial resources of the City except those required to be accounted for in another fund.

The Streets Fund accounts for Gas Tax revenues apportioned to the City under the State Streets and Highway Code, impact fees charged to provide for the building of various storm drains and street improvements needed to serve new developments, and to account for funds apportioned to the City for sales tax collections under Measure K.

The City reports the following major proprietary (enterprise) funds:

46 CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2022

Note 1 – Summary of Significant Accounting Policies (Continued)

C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued)

The Electric Fund accounts for the provision of electric services to the residents of the City. All activities necessary to provide such services are accounted for in this fund, including but not limited to, source of supply, overhead, systems maintenance, customer service, engineering, administration, capital improvements, and maintenance and debt service.

The Wastewater Fund accounts for the provision of wastewater collection and treatment services to the residents of the City. All activities necessary to provide such services are accounted for in this fund, including, but not limited to, administration, operations, maintenance, improvements and debt service.

The Water Fund accounts for the provision of water to the residents of the City as well as some customers in the San Joaquin County (County). All activities to provide such services are accounted for in this fund, including, but not limited to administration, operations, distribution, maintenance, capital improvements and debt service.

Additionally, the City reports the following fund types:

The Internal Service Funds account for the City’s claims, benefits, fleet services and equipment/vehicle replacement.

Private-Purpose Trust Funds are used to account for trust agreements under which the principal and income benefit individuals, private organizations or other governments. They were established to account for assets held and invested by the Library Board as trustee; and to account for assets held by the City in accordance with a trust agreement on behalf of the Hutchins Square. These funds can only be spent in accordance with the trust agreements.

The effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this rule are charges to other City departments from the Electric, Wastewater, Water and Transit Funds. These charges have not been eliminated because elimination would distort the direct costs and program revenues reported in the statement of activities.

D. Cash and Investments

The City maintains a cash and investment pool that is available for all funds of the City for the purpose of increasing interest earnings through investment activities. Investments are generally stated at fair value with the exception of guaranteed investment contracts, which are stated at cost. Income earned or losses arising from the investment of pooled cash are allocated to various funds based on month-end cash balances in accordance with California Government Code Section 53647. Changes in fair value of investments are recognized as a component of investment income.

E. Restricted Cash and Investments

The City accounts for certain settlement payments for environmental remediation as restricted with the understanding that these funds will be used exclusively for environmental cleanup, investigation or remediation expenses incurred by the City in the specified areas and that they will not be used for the payment of legal or technical fees. These funds are accounted for in the Water Fund.

47 CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2022

Note 1 – Summary of Significant Accounting Policies (Continued)

E. Restricted Cash and Investments (Continued)

The City has invested in the Public Agency Retirement Services (PARS) for the PARS Public Agencies Post-Employment Benefits Trust. This trust is to be used only for the payment of such post-employment benefits for retirees. These funds are accounted for in the General Fund; Streets; Parks, Recreation and Community Services; Community Development; Electric Utility; Wastewater; Water; Fleet and Non-major Transit Funds.

F. Restricted Cash and Investments with Fiscal Agents

Restricted assets represent the proceeds from debt and other cash and investments held by fiscal agents by agreement that meet the definition of cash and cash equivalents, with the exception of a $2,229,407 guaranteed investment contract held in the Wastewater Fund which is a long-term investment.

In the Electric Fund, restricted assets represent the proceeds of the 2018 Electric Bonds restricted for debt service. In the Wastewater Fund, the restricted assets represent the proceeds of the 2004A, the 2016A Refunding Wastewater Revenue Bonds and the 2017 Installment Purchase Agreement issued for improvements to the City’s Wastewater collection, treatment and disposal system. In the Water Fund, restricted assets represent the 2020 Water Refunding Series A Bonds for debt service. In the Capital Outlay fund, restricted assets represent the proceeds of the 2022 Lease Revenue Bonds.

G. Receivables

Revenues are recorded when received in cash, except revenues subject to accrual (up to 90 days after year-end) are recognized when due. The primary revenue sources, which have been treated as susceptible to accrual by the City, are sales tax, special assessments, intergovernmental revenues, other taxes, interest revenue, rental revenue and certain charges for services.

Federal and State grants are considered receivable and accrued as revenue when all eligibility requirements have been met under the accrual basis of accounting in the government-wide statement of net positions. The amount recognized as revenue under the modified accrual basis of accounting in the governmental funds is limited to the amount that is deemed measurable and available.

Billed but not collected and unbilled utility revenue earned is recognized as revenue and accounts receivable in the enterprise funds.

H. Loan Receivables

Loans receivable reported in the HOME Program and Community Development Block Grants Special Revenue Fund represent funds loaned to first-time homebuyers. Loans receivable in the Electric Enterprise Fund represent loans to eligible industrial and commercial customers participating in the Lodi Energy Efficiency Financing Pilot Project.

In December 2009, the City entered into a contractual relationship with the California Department of Housing and Community Development (HCD) to administer a First-time Homebuyers Program. The loan program is intended to provide deferred down-payment assistance to first-time homebuyers who are at or below 80% of the median income, for the purchase of homes within Lodi. The loan bears 2% interest and is due and payable 30 years from close of escrow, upon transfer of the property or when the home is no longer owner-occupied, whichever comes first. At June 30, 2022, the outstanding balance of these loans amounted to $35,572, which the City included in due from other governmental agencies.

48 CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2022

Note 1 – Summary of Significant Accounting Policies (Continued)

H. Loan Receivables (Continued)

In December 2012, the City increased the loan funds in its public benefits program from which G2, G3, G4, G5 or I1 electric utility rate commercial and industrial customers may borrow money to implement energy conservation projects in their facilities. The loan is at zero interest rate payable in two years capped at $150,000 per customer. As of June 30, 2022, a total of one loan to industrial and commercial customers have been approved. At June 30, 2022, there were three outstanding loans, with a balance of $21,013.

I. Property Taxes

The County is responsible for assessing, collecting and distributing property taxes in accordance with enabling legislation. Revenue received is based on an allocation factor calculated by the County under the provisions of Proposition 13, plus a percentage of the increase in market value in specific areas. The City's property tax lien is based on the assessed value listed as of the prior January 1st for all real and personal property located in the City.

Property sold after the assessment date (January 1st) is reassessed and the amount of property tax assessed is prorated. The assessed value at January 1, 2022, upon which the 2021-22 levy was based, was $7,353,233,712.

Secured property taxes are levied on October 1 and are due in two installments on November 1 and February 1. The tax becomes delinquent after December 10 and April 10, respectively. Unsecured property tax is levied on July 1, due on July 31 and becomes delinquent after August 31.

Property taxes levied for the year ended June 30, 2022, are recorded as receivables. Property taxes paid to the City by the County within 60 days of the fiscal year-end are considered "available" and are, therefore, recognized as revenue in governmental funds.

In 1993, the City made an agreement with the San Joaquin County to participate in the Teeter Plan. The Teeter plan is an alternative method of apportioning property tax money. The City receives 95% of the property taxes in advance from the County and the 5% remaining after reconciling the City’s balance at June 30. As part of the agreement, the County keeps the penalties and interest on the delinquent taxes.

J. Due From/Due To Other Funds, Advances To/Advances From Other Funds, and Internal Balances

During the course of operations, numerous transactions occur between individual funds for goods provided or services rendered. In the fund financial statements, these receivables and payables are classified as “due from other funds” or “due to other funds”. Long-term interfund loans receivable are reported as “advances to other funds”. The corresponding long-term interfund loans payable are reported as “advances from other funds”. In the government- wide financial statements, these receivables and payables are eliminated within the governmental activities and business-type activities columns. Receivables and payables between the governmental activities and the business- type activities are classified as internal balances.

K. Transfers

In the fund financial statements, interfund transfers are recorded as transfers in (out) except for transactions that are described below:

Charges for services are recorded as revenues of the performing fund and expenditures/expenses of the requesting fund. Unbilled costs are recognized as an asset of the performing fund at the end of fiscal year.

49 CITY OF LODI
Notes to Basic Financial State ments (continued)
June 30, 2022
Note 1 – Summary of Significant Accounting Policies (Continued) K. Tran
sfers (Continued)
Reimb
ursements for expenditures /expenses, initially made by one fund that is properly applicable to another fund, are recorded as expenditures /expenses in the reimbursing fund and as a reduction of expenditures /expenses in the fund that is reimbursed.

L. Long-ter
m Obligations
In t
he government-wide financial statements and in the proprietary fund financial statements, long -term debt and other long -term obligations are reported as liabilities in the applicable governmental activities, business -type activities, or proprietary fund statement of ne t position. Bond premiums are deferred and amortiz ed over the life of the bonds. Bonds payable are reported net of the applicable bond premium. L osses occurring from advance refunding are reported as deferred outflows of resources and amortized as an expense for both governmental and business-type activities.

M. Advan
ce Receivable
Adv
ance receivable reported in the Electric Enterprise Fund represents the City’s portion of the Northern California Power Agency’s (NCPA) General Operating Reserve that is refundable upon demand by the City (See Note 13).

N. Inv
entory
Oth
er governmental funds inventories are recorded at cost and are recognized as expenditures when consume d rather than when purchased. For the proprietary fund types, inventories are recorded at cost using the weighted average cost method, which approximates market, and expense is recognized when inventories are consumed in operations.

O. De
ferred Outflows and Inflows of Resources
Unamor
tized Losses on Defeasance
Deferred outflows of resources reported in the Wastewater Enterprise Fund include the refunding loss incurred on the issuance of the 2012 Refunding Revenue Bonds amortized over 11 years, and the 2016 Refunding Revenue Bonds amortized over 21 years . Deferred outflows of resources reported in the E lectric Utility Enterprise Fund include the 2018 Revenue Refunding Bonds amortized over 14 years. Deferred outflows of resources in the Water Enterprise Fund include the 2020 Water Revenue Refunding Bonds amortized over 20 years. Deferred outflows of res ources reported in the governmental activities represent the 2022 Lease Refunding Bonds amortized over 31 years.

Relat
ed to Pensions
Pension contributions made in the current year , changes of assumptions, difference between expected and actual experience and the net difference between projected and actual earnings on plan investments are reported as deferred outflows or deferred inflows of resources in accordance with GASB Statement No. 71 as of the CalPERS’ valuation measurement date June 30, 2021. These amounts are to be recognized in future pension expense and the amortization period differs depending on the source of the gain or loss. 50 CITY OF LODI
Notes to Basic Financial State ments (continued)
June 30, 2022

Note 1 – Summary of Significant Accounting Policies (Continued)

O. Deferred Outflows and Inflows of Resources(Continued)

Related to OPEB
OPEB contributions made in the current year are reported as deferred outflows of resources per GASB Statement No. 71 as the CalPERS’ valuation measurement date is June 30, 2021 . Those contributions will be recognized as a reduction of the net OPEB liability in the year ending June 30, 2021 . Plan earnings in excess of earnings projected , changes in assumptions, differences between expected and actual experience in the OPEB actuarial report are reported as deferred outflows or inflows of resources.

Unavailable Revenue
The unavailable revenue in the governmental funds is related to the HCD’s First -time Homebuyers Program, Development Impact Fees, and miscellaneous revenue for various projects. All fees are expected to be repaid in full.

P. Capital Assets

Capital assets, which include land, works of art, buildings and improvements, machinery and equipment, vehicles, infrastructure (e.g., streets, streetlights, traffic signals, sidewalks, and bridges), and electric line s, wastewater lines and storm drains are reported in the applicable governmental or business -type activities columns in the government- wide financial statements and in the proprietary funds financial statements. Capital assets are defined by the City as assets with individual cost of $10,000 or more and have an estimated usefu l life in excess of two years. Such assets are recorded at historical cost. Donated capital assets are recorded at acquisition value at the date of donation.

Capital outlay is recorded as expenditures in the General Fund and other governmental funds and as assets in the government-wide financial statements to the extent the City’s capitalization threshold is met.

The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend asset useful lives are not capitalized. As required by the Governmental Accounting Standards Board Statement No. 34, beginning July 1, 2002, the City has capitalized infrastructure, primarily its network of streets, as part of the capital assets shown in the governmental activities column on the government -wide statement of net position . This capitalization included infrastructure that could be identified and has been acquired since July 1, 1980.

Depreciation of capital assets is provided on the straight-line basis over the following estimated useful lives:

Years
Buildings and improvements 3 - 40
Machinery and equipment 2 - 40
Vehicles 5 - 15
Infrastructure 10 - 50

Q. Compensated Absences/Vacation and Sick Leave

The City accrues for compensated absences, in the government-wide financial statements and the proprietary funds financial statements , to pay its employees for the unused vacation, compensatory time, and miscellaneous leave.

The City is not obligated to pay for unused sick leave if employees terminate prior to retirement.

Employees hired prior to July 1, 1994, after 10 years with the City and only upon retirement, may convert their accumulated sick leave time to medica l insurance premiums under the following options: bank or conversion. The bank option converts the unused sick leave into a dollar amount that will be placed into a “bank” to be used for medical insurance premiums for the employee. The conversion option takes the unused sick leave and converts it to days and the City will pay the medical insurance premiums for the employe e for each day after conversion until the balance is exhausted.

51 CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2022

Note 1 – Summary of Significant Accounting Policies (Continued)

R. Pensions

For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the Miscellaneous and Safety Plans (Plans) and additions to/deductions from the Plans’ fiduciary net position have been determined on the same basis as they are reported by the CalPERS Financial Office. For this purpose, benefit payments (including refunds of employee contributions) are recognized when currently due and payable in accordance with the benefit terms. Investments are reported at fair value.

The following timeframes are used for Pensions reporting:

Valuation Date: June 30, 2020
Measurement Date: June 30, 2021
Measurement Period: July 1, 2020 to June 30, 2021

S. Other Post-Employment Benefits (OPEB)

For purposes of measuring the Net OPEB liability, deferred outflows of resources and deferred inflows of resources related to pensions, and OPEB expense, information about the fiduciary net position of the plans and additions to/deductions from the plans’ fiduciary net position have been determined on the same basis as they are reported by the plans.

The following timeframes are used for OPEB reporting:

Valuation Date: June 30, 2021
Measurement Date: June 30, 2021
Measurement Period: July 1, 2020 to June 30, 2021

T. Self-Insurance

The City is self-insured for general liability, workers' compensation, dental benefits, unemployment and long-term disability. Various City funds are charged premiums for the City's self-insurance liability, which is accounted for in an internal service fund. The accrued liability for estimated self-insured claims represents an estimate of the eventual loss on claims arising prior to year-end including claims incurred but not reported.

U. Net Position

In the government-wide and proprietary funds financial statements, net position is reported in one of three categories:

Net Investment in Capital Assets – This category consists of capital assets net of accumulated depreciation and reduced by deferred outflows of resources and outstanding debt that is attributed to the acquisition, construction, or improvement of the assets.

Restricted Net Position – Assets restricted by external creditors, grantors, contributors, enabling legislation or laws or regulations of other governments reduced by liabilities related to those assets.

Unrestricted Net Position – This category consists of all net position that does not meet the definition of net investment in capital assets or restricted net position.

52 CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2022

Note 1 – Summary of Significant Accounting Policies (Continued)

U. Net Position (Continued)

Fund balances presented in the governmental fund financial statements represent the difference between assets, liabilities and deferred inflows of resources. GASB Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions, establishes the criteria for classifying fund balances into specifically defined classifications and clarifies definitions for governmental funds. GASB Statement No. 54 requires that the fund balances be classified in categories based upon the type of constraints imposed on the use of funds. The City evaluated each of its funds at June 30, 2022 and classified fund balances into the following five categories:

Non-spendable – Amounts that cannot be spent because they are (1) not in spendable form, such as prepaid items, inventories and long-term receivables for which the payment of proceeds are not restricted or committed with respect to the nature of the specific expenditures of that fund or (2) legally or contractually required to remain intact.

Restricted – Amounts that are restricted by external parties such as creditors or imposed by grants, laws or regulations of other governments or imposed by law through constitutional provisions or enabling legislation. The City has legislative restrictions on amounts collected and reported in the City’s various governmental funds.

Committed – Amounts that can only be used for specific purposes determined by the adoption of an ordinance committing fund balance for a specified purpose by City of Lodi’s Council prior to the end of a fiscal year. Once adopted, the limitation imposed by the ordinance remains in place until the resources have been spent for the specified purpose or the Council adopts another ordinance to remove or revise the limitation.

Assigned – Amounts that have been allocated by the City’s intent to be used for specific purposes. The intent can be established at either the highest level of decision making, which includes City Council or by an official designated such as the City Manager for such purpose.

Unassigned – Amounts that constitute the residual balances that have no restrictions placed upon them and are reported in the General Fund. For other governmental funds, as restrictions exceed available resources only deficit amounts are reported in the unassigned category.

When both restricted and unrestricted resources are available for use, it is the City’s policy to use restricted resources first, and then unrestricted resources as they are needed.

The City does not have a policy on the order of spending unrestricted amounts when an expenditure is incurred for which amounts in any of the unrestricted fund balance classifications could be used. Therefore, by default under GASB Statement No. 54, the City uses committed resources first, then assigned resources and unassigned resources last as they are needed.

It is the City's policy to maintain an unassigned fund balance in the General Fund of at least 16% of revenues and working capital balances in the Water and Wastewater enterprise funds of at least 25% of operating expenses and the target for the Electric Enterprise Fund working capital is $29.9 million. The policy allows for variations from year- to year to account for economic and fiscal changes. The City Council also adopted a policy to establish the following reserves:

Catastrophic reserve – To maintain the ability of the City to meet operational costs during times of declared emergency or major catastrophe, the City shall designate General Fund balance of a minimum of 8% of annual General Fund revenues reported as unassigned fund balance. This reserve may only be drawn upon pursuant to an emergency as declared under the Municipal Code.

53 CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2022

Note 1 – Summary of Significant Accounting Policies (Continued)

U. Net Position (Continued)

Economic reserve – To maintain the City’s economic viability and to meet seasonal cash flow shortfalls, the City shall designate General Fund economic reserve balance of a minimum of 8% of annual General Fund revenues reported as unassigned fund balance. Funding the economic reserve will begin in the fiscal year following full funding of the catastrophic reserve. Funding may only be disbursed upon a resolution of the City Council.

Once fully funded, if these reserves fall below 5% of annual revenues, the City Manager shall prepare a plan within three months of approval of the City’s financial statements. This plan will restore the 5% within 12 months and the 8% within 24 months.

V. Statement of Cash Flows

A statement of cash flows is presented for proprietary fund types. For purposes of reporting cash flows, the City considers all highly liquid investments with maturities of three months or less when purchased and investments maintained in the pool to be cash equivalents.

W. Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Actual results could differ from those estimates.

X. Leases

Lessee
The City has a policy to recognize a lease liability and a right-to-use lease asset (lease asset) in the government-wide financial statements. The City recognizes lease liabilities with an initial, individual value of $1,000 or more.

At the commencement of a lease, the City initially measures the lease liability at the present value of payments expected to be made during the lease term. Subsequently, the lease liability is reduced by the principal portion of lease payments made.

Lease assets are recorded at the amount of the initial measurement of the lease liabilities and modified by any lease payments made to the lessor at or before the commencement of the lease term, less any lease incentives received from the lessor at or before the commencement of the lease term along with any initial direct costs that are ancillary charges necessary to place the lease assets into service. Lease assets are amortized using the straight-line method over the shorter of the lease term or the useful life of the underlying asset, unless the lease contains a purchase option that the City has determined is reasonably certain of being exercised. In this case, the lease asset is amortized over the useful life of the underlying asset.

Key estimates and judgments related to leases include how the City determines (1) the discount rate it uses to discount the expected lease payments to present value, (2) lease term, and (3) lease payments.

 The City uses the interest rate charged by the lessor as the discount rate. When the interest rate charged by the lessor is not provided, the City generally uses its estimated incremental borrowing rate as the discount rate for leases.

54 CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2022

Note 1 – Summary of Significant Accounting Policies (Continued)

X. Leases (Continued)

The lease term includes the noncancellable period of the lease. Lease payments included in the measurement of the lease liability are composed of fixed payments and purchase option price that the City is reasonably certain to exercise.

Lessor
The City is a lessor for leases of special purpose facilities, office and commercial space, and land. The City recognizes leases receivable and deferred inflows of resources in the financial statements.

At the commencement of a lease, the City initially measures the lease receivable at the present value of payments expected to be received during the lease term. Subsequently, the lease receivable is reduced by the principal portion of lease payments received. The deferred inflows of resources are initially measured as the initial amount of the lease receivable, adjusted for lease payments received at or before the lease commencement date. Subsequently, the deferred inflows of resources are recognized as revenue over the life of the lease term in a systematic and rational method.

Key estimates and judgments include how the City determines (1) the discount rate it uses to discount the expected lease receipts to present value, (2) lease term, and (3) lease receipts.

 The City uses its estimated incremental borrowing rate as the discount rate for leases.  The lease term includes the noncancellable period of the lease. Lease receipts included in the measurement of the lease receivable is composed of fixed payments from the lessee.

The City monitors changes in circumstances that would require a remeasurement of its lease and will remeasure the lease receivable and deferred inflows of resources if certain changes occur that are expected to significantly affect the amount of the lease receivable.

Y. New GASB Pronouncements Adopted

In June 2017, GASB issued Statement No. 87, Leases (GASB Statement No. 87), to better meet the information needs of financial statement users by improving accounting and financial reporting for leases by governments. This statement increases the usefulness of governments’ financial statements by requiring recognition of certain lease assets and liabilities for leases that previously were classified as operating leases and recognized as inflows of resources or outflows of resources based on the payment provisions of the contract. It also establishes a single model for lease accounting based on the foundational principle that leases are financings of the right to use an underlying asset. This implementation of this statement had a significant impact to the City’s financial statements.

In June 2018, GASB issued Statement No. 89, Accounting for Interest Cost Incurred before the End of a Construction Period (GASB Statement No. 89), to (1) enhance the relevance and comparability of information about capital assets and the cost of borrowing for a reporting period, and (2) simplify accounting for interest cost incurred before the end of a construction period. This statement requires that interest cost incurred before the end of a construction period be recognized as an expense in the period in which the cost is incurred for financial statements prepared using the economic resources measurement focus. As a result of implementing GASB Statement No. 89, the City did not include interest cost incurred before the end of a construction period in the historical cost of a capital asset reported at June 30, 2022.

55 CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2022

Note 1 – Summary of Significant Accounting Policies (Continued)

Y. New GASB Pronouncements Adopted (Continued)

In January 2020, GASB issued Statement No. 92, Omnibus 2020 (GASB Statement No. 92), to enhance comparability in accounting and financial reporting and to improve the consistency of authoritative literature by addressing practice issues that have been identified during implementation and application of certain GASB Statements. This Statement addresses a variety of topics. This statement did not have a significant impact to the City’s financial statements.

In March 2020, GASB issued Statement No. 93, Replacement of Interbank Offered Rates (GASB Statement No. 93), to address those and other accounting and financial reporting implications that result from the replacement of an interbank offered rate (IBOR) - most notably, the London Interbank Offered Rate (LIBOR) which is expected to cease to exist in its current form at the end of 2021. The implementation of this statement did not have a significant impact to the City’s financial statements. This statement did not have a significant impact to the City’s financial statements.

In June 2020, GASB issued Statement No. 97, Certain Component Unit Criteria, and Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans – An Amendment of GASB Statements No. 14 and No. 84, and a Supersession of GASB Statement No. 32 (GASB Statement No. 97), to (1) increase consistency and comparability related to the reporting of fiduciary component units; (2) mitigate costs associated with the reporting of certain defined contribution pension plans, defined contribution other postemployment benefit (OPEB) plans, and employee benefit plans other than pension plans or OPEB plans (other employee benefit plans) as fiduciary component units in fiduciary fund financial statements; and (3) enhance the relevance, consistency, and comparability of the accounting and financial reporting for Internal Revenue Code (IRC) Section 457 deferred compensation plans (Section 457 plans) that meet the definition of a pension plan and for benefits provided through those plans. The implementation of this statement did not have a significant impact to the City’s financial statements. This statement did not have a significant impact to the City’s financial statements.

Upcoming New GASB Pronouncements
The City is currently evaluating its accounting practices to determine the potential impact on the financial statements for the following GASB Statements:

In May 2019, GASB issued Statement No. 91, Conduit Debt Obligations (GASB Statement No. 91), to provide a single method of reporting conduit debt obligations by issuers and eliminate diversity in practice associated with (1) commitments extended by issuers, (2) arrangements associated with conduit debt obligations, and (3) related note disclosures. This statement achieves those objectives by clarifying the existing definition of a conduit debt obligation; establishing that a conduit debt obligation is not a liability of the issuer; establishing standards for accounting and financial reporting of additional commitments and voluntary commitments extended by issuers and arrangements associated with conduit debt obligations; and improving required note disclosures. GASB Statement No. 91, originally effective for the City’s fiscal year ending June 30, 2022, has been postponed to fiscal year ending June 30, 2023.

In March 2020, GASB issued Statement No. 94, Public-Private and Public-Public Partnerships and Availability Payment Arrangements (GASB Statement No. 94) to improve financial reporting by addressing issues related to public-private and public-public partnership arrangements (PPPs). This Statement also provides guidance for accounting and financial reporting for availability payment arrangements (APAs). GASB Statement No. 94 is effective for the City’s fiscal year ending June 30, 2023.

56 CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2022

Note 1 – Summary of Significant Accounting Policies (Continued)

Y. New GASB Pronouncements Adopted (Continued)

In May 2020, GASB issued Statement No. 96, Subscription-Based Information Technology Arrangements (GASB Statement No. 96), to provide guidance on the accounting and financial reporting for subscription-based information technology arrangements (SBITAs) for government end users (governments). This Statement (1) defines a SBITA; (2) establishes that a SBITA results in a right-to-use subscription asset - an intangible asset - and a corresponding subscription liability; (3) provides the capitalization criteria for outlays other than subscription payments, including implementation costs of a SBITA; and (4) requires note disclosures regarding a SBITA. GASB Statement No. 96 is effective for the City’s fiscal year ending June 30, 2023.

In April 2022, GASB issued Statement No. 99, Omnibus 2022 (GASB Statement No. 99), to enhance comparability in accounting and financial reporting and to improve the consistency of authoritative literature by addressing (1) practice issues that have been identified during implementation and application of certain GASB Statements and (2) accounting and financial reporting for financial guarantees. GASB Statement No. 99 is effective for the City’s fiscal year ending June 30, 2023.

In June 2022, GASB issued Statement No. 100, Accounting Changes and Error Corrections - an amendment of GASB Statement No. 62 (GASB Statement No. 100), to enhance accounting and financial reporting requirements for accounting changes and error corrections to provide more understandable, reliable, relevant, consistent, and comparable information for making decisions or assessing accountability. GASB Statement No. 100 is effective for the City’s fiscal year ending June 30, 2024.

In June 2022, GASB issued Statement No. 101, Compensated Absences (GASB Statement No. 101), to better meet the information needs of financial statement users by updating the recognition and measurement guidance for compensated absences. That objective is achieved by aligning the recognition and measurement guidance under a unified model and by amending certain previously required disclosures. GASB Statement No. 100 is effective for the City’s fiscal year ending June 30, 2025.

Z. Reclassification and Presentation

Certain reclassifications of prior year’s balances have been made to conform with the current year presentation. The reclassifications have no effect on the total net position, change in net position or net changes in cash equivalents.

Note 2 – Cash and Investments

Cash and investments as of June 30, 2022 are classified in the accompanying financial statements as follows:

Fiduciary Funds
Governmental Business-type Statement of
Activities Activities Total Net Position Total
Cash and investments $ 92,117,542
$ 75,269,752 $ 167,387,294 $ 150,556 $ 167,537,850 Restricted cash
and investments 31,545,711 17,822,565 49,368,276 - 49,368,276 Total $ 123,663,253 $ 93,092,317 $ 216,755,570 $ 150,556 $ 216,906,126

57 CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2022

Note 2 – Cash and Investments (Continued)

Cash and investments as of June 30, 2022 consist of the following:

Cash on hand $ 3,746
Demand deposits 7,107,621
7,111,367
Investments 209,794,759
Total cash and investments $ 216,906,126

A. Authorized Investments

The City has adopted an investment policy pursuant to Government Code Section 53601, which authorizes the City to invest surplus funds in the City Treasury in certain investment categories authorized by the California Government Code and the City’s Investment Policy. The City’s Investment Policy is more restrictive than the Government Code.

The following table identifies the permitted investment types authorized per the City’s investment policy. The table also identifies certain provisions that address interest rate risk and concentration of credit risk.

Maximum %

Permitted Investments Maturity of Portfolio Minimum Quality Requirements U.S. Treasury Obligations 5 years 100% None
US Government Agency Securities & Instrumentalities 5 years 100% None Bankers Acceptances 180 days 40% None
Certificates of Deposit 5 years 100% None
Negotiable Certificates of Deposit 5 years 30% None
Commercial Paper 270 days 30%
Credit rating of P1/A1 or A1+/F1 or F1+ by
Moody's S&P or Fitch
California State Local Agency Investment Fund Indefinite 100% None Passbook Deposits Indefinite 100% None
Mutual Funds & Money Market Mutual Funds N/A 20% Multiple Requirements per Gov't Code Medium Term Corporation Notes 5 years 30% A-/A3/A- by Moody's, S&P, or Fitch Joint Powers Authority Pool Indefinite 30% (1) Multiple Requirements per Gov't Code Certificates of Deposit Account Registry Service (CDARS) Indefinite 30% None Supranational Obligations 5 years 30% AA-/Aa3/AA- by Moody's, S&P, or Fitch Municipal Securities (50 States or California Local Agencies) 5 years 100% None (1) Funds held at NCPA shall not count to this limit)

B. Investments Authorized by Debt Agreements

Investments of debt proceeds held by bond trustee are governed by the provisions of the debt agreements as to the extent that they are permissible investments of funds of the City.

C. Restricted Cash

The City has established a pension stabilization account with Public Agency Retirement Services (PARS), which invests in a Balanced Index PLUS Fund. The investments made by the City to this fund, are in restricted cash and investments.

58 CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2022

Note 2 – Cash and Investments (Continued)

C. Restricted Cash (Continued)

D. Disclosure Relating to Interest Rate Risk and Credit Risk

Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment.

Generally, the longer the maturity of an investment the greater the sensitivity of its fair value to changes in market interest rates. One of the ways that the City manages its exposure to interest rate risk is by purchasing a combination of shorter term and longer term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity over time as necessary to provide the cash flow and liquidity needed for operations. The City monitors the interest rate risk inherent in its portfolio by measuring the weighted average maturity of its portfolio, as well as limiting a securities maturity to five years or less for investments in the investment pool. Investments held outside the investment pool can have longer maturities as these funds are restricted by bond covenants and are held to the maturity of the bonds.

Investment Type AAA/Aaa AA+/AA/AA- A+/A/A- BBB+/BBB/BBB- Not Rated Total Investments by Fair Value:

Held by Trustee:

US Agency Securities $ 1,372,871 $ 8,817,039 $ - $ - $ 1,331,053 $ 11,520,963 Money Market Mutual Funds - - - - 24,664,587 24,664,587 Municipal Securities 6,408,182 23,653,958 1,675,522 - 609,921 32,347,583 Corporate Securities 2,926,015 6,240,427 15,715,855 2,374,835 - 27,257,132 Negotiable Certificate of Deposits - - - - 7,357,409 7,357,409 Sovereigns, Supranational & Agencies 4,894,807 - - - 811,732 5,706,539 Guaranteed Investments Contracts - - - - 2,229,407 2,229,407 Exempt from Credit Rating Disclosure:

U.S Treasury Notes - - - - 7,093,173 7,093,173
Held by City:

CALTRUST -
- - - 10,154,702 10,154,702 PARS - - - - 20,037,023 20,037,023 Local Bank Certificate of Deposits - - - - 2,000,000 2,000,000 Demand Deposits - - - - 7,107,621 7,107,621 Cash on hand - - - - 3,746 3,746 LAIF - - - - 59,426,241 59,426,241 Total Cash and Investments $ 15,601,875 $ 38,711,424 $ 17,391,377 $ 2,374,835 $ 142,826,615 $ 216,906,126

Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by nationally recognized statistical rating organization.

Presented below and on the following page is the minimum rating required by the California Government Code, the City’s investment policy, or debt agreements and the actual rating at year end for each investment type.

59 CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2022

Note 2 – Cash and Investments (Continued)

E. Concentration of Credit Risk

The California Government Code and the investment policy of the City contain limitations on the amount that can be invested in any one issuer. Investments in any one issuer (other than investments issued by or explicitly guaranteed by the US Government and investments in mutual funds, external investment pools, and other pooled investments) that represent 5% or more of the total City investments are required to be disclosed. Investments in LAIF, CalTRUST, and money market mutual funds are not subject to the concentration of credit risk disclosure. The City holds 53.76% of its investments in the various securities. There are no investments in aggregate that total is greater than 5%.

F. Custodial Credit Risk

Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover collateral securities that are in the possession of an outside party. The California Government Code and the City’s investment policy do not contain legal or policy requirements that would limit the exposure to custodial risk for deposits, other than the following provision for deposits: The California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law. The market value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the secured deposits. The City’s deposits with financial institutions, exceeded federal depository insurance limits by $19,704,909, and was collateralized.

The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker- dealer) to a transaction, a government will not be able to recover the value of the investment or collateral securities that are in the possession of another party. The California Government Code and the City’s investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for investments. With respect to investments, custodial credit risk generally applies only to direct investments in marketable securities.

Custodial credit risk does not apply to a local government’s indirect investment in securities through the use of mutual funds or government investment pools such as LAIF.

Investment Type 12 Months or Less 13 to 24 Months 25 to 36 Months 37 to 60 Months 61 + Months Total Investments by Fair Value:

Held by City:

CALTRUST $ 10,154,702 $ - $ - $ - $ - $ 10,154,702 LAIF 59,426,241 - - - - 59,426,241 PARS 20,037,023 - - - - 20,037,023 Local Bank Certificate of Deposits 2,000,000 - - - - 2,000,000 Cash on Hand 3,746 - - - - 3,746 Demand Deposits 7,107,621 - - - - 7,107,621 Held by Trustee:

Negotiable Certificate of Deposits 3,507,365 1,253,533 719,366 1,877,145 - 7,357,409 US Agency Securities 1,500,692 1,083,029 2,255,326 6,681,917 - 11,520,964 Money Market Mutual Funds 9,664,587 - - - 15,000,000 24,664,587
Municipal Securities 4,145,569 4,528,677 8,368,392 8,486,477 6,818,469 32,347,584 Corporate Securities 3,051,873 6,643,933 6,109,889 6,736,827 4,714,609 27,257,131 Sovereigns, Supranational & Agencies - 774,966 1,206,234 3,725,338 - 5,706,538 Guaranteed Investments Contracts - - - 2,229,407 - 2,229,407 U.S Treasury Notes 2,738,701 482,871 938,457 2,473,076 460,068 7,093,173 Total Investments $ 123,338,120 $ 14,767,009 $ 19,597,664 $ 32,210,187 $ 26,993,146 $216,906,126

60 CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2022

Note 2 – Cash and Investments (Continued)

G. Investments in Investment Pools

The City is a voluntary participant in the California Local Agency Investment Fund (LAIF) that is regulated by the California Government Code under the oversight of the Treasurer of the State of California. The fair value of the City’s investment in this pool is reported in the accompanying financial statements at amounts based upon the City’s pro-rata share of the fair value provided by LAIF for the entire LAIF portfolio. At June 30, 2022, the City’s investment position in LAIF was $59.4 million. Of the investment with LAIF, 1.10% is invested in structured notes and 3.37% is invested in asset-backed securities. The City is also a voluntary participant in the CalTRUST which is a Joint Powers Authority governed by a Board of Trustees made up of local treasurers and investment officers. The Board of Trustees sets overall policy for CalTRUST, and selects and supervises the activities of the Investment Manager and other agents. As of June 30, 2022, the City’s investment in CalTRUST is $10.1 million; all of which is invested in the Medium term fund.

H. Investments in Guaranteed Investment Contracts

The City has entered into nonparticipating guaranteed investment contracts (GICs), which are authorized under bond documents as outlined in the City’s investment policy or the debt agreement. GICs are non-marketable interest bearing agreements with or guaranteed by certain financial institutions. The agreements provide for a guaranteed return on principal over a specified period. A GIC is a general obligation instrument issued by a financial institution, subject to applicable legal restrictions. The City’s investments in GIC’s represent proceeds from bond issues that have been set aside (held for the benefit of the bondholders) as debt service reserves and proceeds of bonds that have been invested until used on the projects being financed. The investment contracts holding debt service reserves are held long-term and bear interest 5.455%, while most project funds are invested short-term with lower rates. All of the investment contracts are collateralized by investments, with $2,229,407 collateralized at 104% to 105%, as set forth in the legal agreements.

I. Fair Value Measurements

In accordance with GASB Statement 72, fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is a market-based measurement for a particular asset or liability based on assumptions that market participants would use in pricing the asset or liability.

Valuation inputs are assumptions that market participants use in pricing an asset or liability. The hierarchy of inputs used to generate the valuation is classified into three different levels.

 Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities at the measurement date.
 Level 2 inputs include quoted prices for similar assets or liabilities in markets that are active; quoted prices for identical or similar assets or liabilities in markets that are not active; and inputs other than quoted prices that are observable for an asset, either directly or indirectly.  Level 3 inputs are unobservable inputs from the asset or liability where there is very little market activity and they should be used only when relevant Level 1 and Level 2 inputs are unavailable.

The City uses the market approach for determining the fair value levels. The market approach uses the prices associated with actual market transactions for similar or identical assets and liabilities to derive a fair value. The City has the following fair value measurements as of June 30, 2022:

61 CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2022

Note 2 – Cash and Investments (Continued)

I. Fair Value Measurements (Continued)

Investment Type Level 1 Level 2 Total
Investments by Fair Value:

Held by City:

Negotiable Certificate of Deposits $ - $ 7,357,409 $ 7,357,409 US Agency Securities - 11,520,964 11,520,964 Sovereigns, Supranational & Agencies - 5,706,538 5,706,538 U.S Treasury Notes - 7,093,173 7,093,173 Municipal Securities - 32,347,584 32,347,584 Corporate Securities - 27,257,131 27,257,131 Subtotal - 91,282,799 91,282,799 Investments Exempt from Fair Value Hierarchy:

Held by City
Guaranteed Investments Contracts - - 2,229,407 CALTRUST - - 10,154,702 PARS - - 20,037,023 LAIF - - 59,426,241 Local Certificate of Deposits - - 2,000,000 Money Market - - 24,664,587 Cash on Hand - - 3,746 Demand Deposits - - 7,107,621 Total Investments $ - $ - $216,906,126

Note 3 – Allowance for Uncollectible Accounts

Receivables of the General Fund, Electric, Wastewater and Water funds, as well as the miscellaneous receivables are reported net of uncollectible amounts. The write off policy for the City is all receivables over 120 days are considered an uncollectible account. Total allowance provided for uncollectible amounts related to receivables of the current period are as follows:

Uncollectibles related to:

Late charges and services $ 90,103

Electric sales and services 422,395
Wastewater services 96,756
Water sales and services 69,394
Miscellaneous billing 380,990
Total uncollectibles, at end of fiscal year $ 1,059,638

Note 4 – Interfund Receivables/Payables

Due from Due to Amount
Non-major governmental
Non-major governmental Community Development HOME Program & CDBG $ 1,978,118 $ 1,978,118

62 CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2022

Note 5 – Transfers

Transfers for the year ended June 30, 2022, are summarized as follows:

Transfers In
Other
General Streets Governmental Total
Transfers Out:

General $ - $ 541,330 $ 18,463,430 $ 19,004,760 Other governmental 66,270 - 2,683,630 2,749,900 Electric 1,218,470 - 25,320 1,243,790 Wastewater 1,084,700 - - 1,084,700 Water 914,920 - - 914,920 Transit 210,430 - - 210,430 Total $ 3,494,790 $ 541,330 $ 21,172,380 $ 25,208,500

During the year, various interfund transfers were made to finance expenditures, subsidize operating losses and service debt.

Transfers out of $1,218,470 from the Electric Fund, $1,084,700 from the Wastewater Fund, $914,920 from the Water Fund and $210,430 from the Transit Fund represent operating contributions to the General Fund.

The transfer of $541,330 from the General Fund to the Streets Fund is for operations and for various streets projects.

The transfer of $18,463,430 from the General Fund to other governmental funds represents transfer of $1,023,555 to the Debt Service Fund for the interest required to pay the 2012 Refunding Lease Revenue Bonds; $6,805,875 to Parks, Recreation, and Community Services Fund for operating costs; $3,354,000 to Capital Outlay Fund for capital projects; and $7,280,000 to Parks Capital Fund for one-time funding of parks projects.

In addition, Community Development transferred to the General Fund $66,270 for normal operating costs.

The transfer out of $2,683,630 from other governmental funds to other governmental funds includes $656,190 transferred from Parks, Recreation, and Community Services Fund to the Debt Service Fund for the interest required to pay the 2012 Refunding Lease Revenue Bonds; $1,680,000 from Parks, Recreation and Community Services Fund to Parks Capital for tree trimming and capital projects; and $347,440 from Public Safety Fund to Capital Outlay Fund for the police training facility.

The transfer of $25,320 was transferred from the Electric Fund, to Parks, Recreation, and Community Services Fund for $4,320 and $21,000 to the Capital Outlay Fund for lighting projects.

63 CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2022

Note 6 – Capital Assets

A. Capital Assets Activity

Capital assets activity of the primary government for the year ended June 30, 2022, was as follows:

Governmental activities July 1, 2021 Additions Retirements Transfers June 30, 2022 Capital assets, not being depreciated:

Land $ 25,238,390 $ 1,078,373 $ - $ - $ 26,316,763 Work of Art 304,907 - - - 304,907 Construction in progress 3,020,404 5,120,781 - (3,273,181) 4,868,004 Total capital assets, not being depreciated 28,563,701 6,199,154 - (3,273,181) 31,489,674 Capital assets, being depreciated:

Buildings and improvements 78,176,039 1,025,016 - 938,294 80,139,349 Machinery and equipment 16,857,465 58,338 - - 16,915,803 Vehicles 13,972,017 2,239,100 (267,532) - 15,943,585 Infrastructure 191,106,454 2,889,545 - 2,334,887 196,330,886 Total capital assets, being depreciated 300,111,975 6,211,999 (267,532) 3,273,181 309,329,623 Less accumulated depreciation for:

Buildings and improvements 44,367,954 2,056,019 - - 46,423,973 Machinery and equipment 13,995,893 826,139 - - 14,822,032 Vehicles 10,069,852 507,312 (267,532) - 10,309,632 Infrastructure 123,258,716 5,100,573 - - 128,359,289 Total accumulated depreciation 191,692,415 8,490,043 (267,532) - 199,914,926 Leased assets 33,607 (11,174) - - 22,433 Total capital assets, being depreciated, net 108,419,560 (2,278,044) - 3,273,181 109,414,697 Governmental activities capital assets, net $ 137,016,868 $ 3,909,936 $ - $ - $ 140,926,804

July 1, 2021 Additions Retirements Transfers June 30, 2022 Capital assets, not being depreciated:

Land $ 5,535,718 $ - $ - $ - $ 5,535,718 Construction in progress 11,202,687 8,039,692 - (11,947,037) 7,295,342 Total capital assets, not being depreciated 16,738,405 8,039,692 - (11,947,037) 12,831,060 Capital assets, being depreciated:

Buildings and improvements 62,309,758 - - 970,570 63,280,328 Machinery and equipment 335,229,247 4,673,894 (6,200) 10,976,467 350,873,408 Vehicles 15,100,372 441,627 (96,735) - 15,445,264 Total capital assets, being depreciated 412,639,377 5,115,521 (102,935) 11,947,037 429,599,000 Less accumulated depreciation for:

Buildings and improvements 26,028,073 1,810,155 - - 27,838,228 Machinery and equipment 137,819,944 8,799,120 (6,200) - 146,612,864 Vehicles 12,219,780 481,486 (96,735) - 12,604,531 Total accumulated depreciation 176,067,797 11,090,761 (102,935) - 187,055,623 Leased assets 146,347 (34,170) - - 112,177 Total capital assets, being depreciated, net 236,571,580 (5,975,240) - 11,947,037 242,543,377 Business-type activities capital assets, net $ 253,456,332 $ 2,030,282 $ - $ - $ 255,486,614

64 CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2022

Note 6 – Capital Assets (Continued)

B. Depreciation Expense

Depreciation expense was charged to function/programs of the primary government as follows:

Governmental Activities:

Business-type Activities:

General government $ 377,792 Electric $ 2,074,923 Public protection 1,187,045 Wastewater 4,660,165 Public works 5,402,198 Water 3,301,686
Library 261,654 Transit 1,053,987
Parks and recreation 1,259,907 Total depreciation expense $ 11,090,761 Internal service funds 1,447 Total depreciation expense $ 8,490,043

C. Lease Amortization

Business-type Activities:

Electric $ 11,161
Wastewater 11,161
Water 11,848
$ 34,170

Note 7 – Long – Term Liabilities

A. Long-Term Liability Transactions Summary

The following is a summary of long-term liability transactions of the City for the year ended June 30, 2022:

Amounts Due
Governmental activities: July 1, 2021 Additions Reductions June 30, 2022 Within One Year Compensated absences $ 3,965,182 $ 6,543,523 $ (6,435,888) $ 4,072,817 $ 3,733,958 Sick leave conversion 6,655,965 600,878 - 7,256,843 - Self-insurance liability (Note 11) 9,482,536 3,186,469 (1,798,809) 10,870,196 3,337,660 Lease payable (Note 10) 33,607 - (11,173) 22,434 11,201 Publicly offered: 2012 Lease Revenue Bonds 14,335,000 - (14,335,000) - - Issuance premium 547,270 - (547,270) - - Total 14,882,270 - (14,882,270) - - 2022 Lease Revenue Bonds - 28,250,000 - 28,250,000 660,000 Issuance premium - 634,343 (4,263) 630,080 20,462 Total - 28,884,343 (4,263) 28,880,080 680,462 Capital lease 169,099 - (83,672) 85,427 85,427 Governmental activities long-term liabilities $ 35,188,659 $ 39,215,213 $ (23,216,075) $ 51,187,797 $ 7,848,708

65 CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2022
Note 7 – Long – Term Liabilities
A. Long-Term Liability Transactions Summary (Continued) Amounts Due
July 1, 2021 Additions Reductions June 30, 2022 Within One Year Business-type activities:

Compensated absences $ 872,584 $ 3,428,117 $ (2,827,801) $ 1,472,900 $ 1,363,439 Sick leave conversion 833,587 64,883 - 898,470 -
Lease payable (Note 10) 146,347 - (34,244) 112,103 54,685 Pollution remediation obligation (Note 15) 15,382,824 - (343,467) 15,039,357 400,000 Loan payable 453,583 - (224,178) 229,405 229,405
Publicly offered:

Certificates of Participation, Revenue Bonds, and Installment Purchase Agreement:
2004 Certificates of Participation A 2,070,000 - - 2,070,000 - 2012 Wastewater Refunding Revenue Bonds A 5,405,000 - (1,725,000) 3,680,000 1,885,000 Issuance premium 374,206 - (166,313) 207,893 166,313 Total 5,779,206 - (1,891,313) 3,887,893 2,051,313 2016 Wastewater Refunding Revenue Bonds A 19,960,000 - (125,000) 19,835,000 140,000 Issuance premium 2,062,918 - (130,979) 1,931,939 130,979 Total 22,022,918 - (255,979) 21,766,939 270,979 2017 Installment Purchase Agreement 7,431,123 (120,675) 7,310,448 121,416 2018 Electric System Refunding Revenue Bonds 37,650,000 - (2,365,000) 35,285,000 2,485,000 Issuance premium 5,170,074 - (477,246) 4,692,828 477,246 Total 42,820,074 - (2,842,246) 39,977,828 2,962,246 2020 Water Refunding Revenue Bonds 25,390,000 - (930,000) 24,460,000 970,000 Issuance premium 3,228,047 - (170,646) 3,057,401 170,646 Total 28,618,047 - (1,100,646) 27,517,401 1,140,646 Certificates of Participation, Revenue Bonds, and
Installment Purchase Agreement: 108,741,368 - (6,210,859) 102,530,509 6,546,600 Business-type activities long-term liabilities $126,430,293 $ 3,493,000 $ (9,640,549) $ 120,282,744 $ 8,594,129 B. Other Long-Term Liabilities
For compensated absences, the general fund normally liquidates 84%. The Community Development fund and Parks, Recreation and Cultural Services Fund normally liquidate 3% and 4%. The remaining 8% is liquidated by other governmental funds and the internal service fund. The net pension liability and OPEB liability will be liquidated from the general fund, approximately 35%. The Community Development fund and Parks, Recreation and Cultural Services fund will liquidate approximately 4.8% and 7.26% and a portion from the internal service fund. Proprietary funds pay their appropriate share of the liabilities. Electric Utility will normally liquidate 4.78%, Water will normally liquidate 5.57%, Wastewater will liquidate 9.84% and Transit will liquidate 2.92%. 66 CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2022

Note 7 – Long – Term Liabilities

C. Loans Payables

Business-type Activities:

In August 2015, the City obtained a loan in the amount of $1.5 million to finance the Electric Enterprise Fund’s LED Street Light Retrofit project. Annual principal and interest payment is $234,755 with final payment due December 1, 2022. The annual payments will be paid from the Greenhouse Gas Free Allowance proceeds. Annual payments are pledged from revenue in the Electric Utility.

Annual debt service requirements to maturity of the loans payables are as follows:

Year Ending Business-type Activities
June 30, Principal Interest
2023 $ 229,405 $ 5,350
Total $ 229,405 $ 5,350

D. Capital Lease

On June 22, 2016, the City entered into a lease-purchase agreement for the acquisition of Dispatch Console equipment for the Police Department. The equipment is providing the City with a more flexible system for better connectivity between the Lodi Police Department dispatch operators and field personnel. The annual payments are paid from Police department appropriations.

The present values of future minimum capital lease payments as of June 30, 2022, are as follows:

Year Ending, June 30
2023 $ 86,540
Total minimum lease payments 86,540
Less amounts representing interest (1,113) Present value of minimum capital lease payments $ 85,427

E. Certificates of Participation, Revenue Bonds and Installment Purchase Agreement

Governmental Activities:

On September 1, 2012, the City issued $19,080,000 Refunding Lease Revenue Bonds (2012 LRB) to allow the City to prepay and cause the immediate defeasance of the outstanding $21,025,000 Certificates of Participation (2002 COP).

The 2002 COP were issued in January 2002 to provide funds to finance the costs of constructing, furnishing and equipping a new police building and jail for the City, to finance portions of certain other projects and to refund the outstanding 1995 and 1996 Certificates of Participation. As of June 30, 2022, there are no outstanding balances of these refunded Certificates. The 1995 Certificates of Participation (1995 COP) were sold in October 1995 to finance the City Downtown Revitalization and the Cherokee Lane Beautification projects. The 1996 Certificates of Participation (1996 COP) were sold in August 1996 to finance the construction of the Hutchins Square Conference and Performing Arts Center. In March 2022, these bonds were refunded.

67 CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2022

Note 7 – Long – Term Liabilities (Continued)

E. Certificates of Participation, Revenue Bonds and Installment Purchase Agreement (Continued)

On March 2, 2022, the City issued $28,250,000 Lease Revenue Bonds (2022 Bonds) to prepay and cause the immediate defeasance of the outstanding $19,080,000 2012 Refunding Lease Revenue Bonds and to finance the acquisition and construction of capital improvements of the City, including a new animal shelter and parks and playground improvements and upgrades. The refunding allowed the City to keep debt service payments consistent with the previous schedule, while allowing the City to fund much need capital projects. The total principle and interest remaining is $44,995,723. Principal is payable annually commencing 2022 on October 1 in amounts from $660,000 to $1,255,000 with final payment due October 1, 2052.

Business-type Activities:

On May 12, 2004, the City issued $27,360,000 Certificates of Participation (2004A COP) to provide funds to finance the costs of certain improvements to the wastewater collection, treatment and disposal system of the City. Principal is payable annually commencing 2024 on October 1 in amounts from $170,000 to $2,070,000 with final payment due October 1, 2024. The City has pledged future wastewater revenues, net of specified operating expenses, to repay these certificates. The total principal and interest remaining to be paid on the certificates is $2,266,652. Interest paid for the current year and total net revenues were $98,326 and $13,891,223, respectively.

On August 16, 2012, the City issued $ 17,105,000 2012 Refunding Wastewater Revenue Bonds Series A (2012 Bonds) to advance refund the $17,115,000 principal amount of the 2004 Wastewater Revenue Certificates of Participation.

Principal is payable annually on October 1 in amounts ranging from $1,280,000 to $1,885,000 beginning in 2013 with final payment due in 2023. The City pledged future wastewater revenues, net of specified operating expenses, to repay these certificates. The total principal and interest remaining to be paid on the 2012 Bonds is $3,956,250.

Principal and interest paid for the current year and total net revenues were $1,943,500 and $13,891,223, respectively.

On March 10, 2016, the City issued $20,295,000 2016 Refunding Wastewater Revenue Bonds Series A (2016 Bonds) for an advance refunding of the $21,415,000 principal amount of the 2007 Wastewater Revenue Certificates of Participation. Principal is payable annually on October 1 in amounts ranging from $110,000 to $2,175,000 beginning in 2018 with final payment due in 2037. The City pledged future wastewater revenues, net of specified operating expenses, to repay these certificates. The total principal and interest remaining to be paid on the 2016 bonds is $27,198,906. Interest paid for the current year and total net revenues were $839,050 and $13,891,223, respectively.

At June 30, 2022, the remaining balance of the refunded debt is $19,835,000.

On December 1, 2017, the City issued $7,762,794 2017 Installment Purchase Agreement for an advance refunding of the $7,555,000 principal amount of the 2007 Wastewater Revenue Certificates of Participation. Principal is payable annually on October 1 in amounts ranging from $107,000 to $545,000 beginning in 2018 with final payment due in 2037. The City pledged future wastewater revenues, net of specified operating expenses, to repay these certificates.

The total principal and interest remaining to be paid on the 2017 Agreement is $9,059,378. The outstanding notes from direct borrowings related to business-type activities of $7,762,794 contain a provision that in an event of default, the timing of repayment of outstanding amounts, principal and interest, become immediately due and payable.

On June 13, 2018, the City issued $41,610,000 Electric System Revenue Refunding Bonds (2018 Bonds) to allow the City to prepay and cause the immediate defeasance of the outstanding $55,785,000 Certificates of Participation (Electric System Revenue Certificates of Participation 2008 Series A). Principal is payable annually on September 1 in amounts ranging from $1,710,000 to $4,045,000 beginning in 2019 with final payment due in 2032. The City has pledged future electric revenues, net of specified operating expenses, to repay these certificates. The total principal and interest remaining to be paid on the certificates is $46,728,250.

68 CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2022

Note 7 – Long – Term Liabilities (Continued)

E. Certificates of Participation, Revenue Bonds and Installment Purchase Agreement (Continued)

On April 8, 2020, the City issued $25,390,000 Water Revenue Refunding Bonds (2020 Bonds) to allow the City to prepay and cause the immediate defeasance of the outstanding $29,650,000 principal of Lodi Public Financing Authority 2010 Water Revenue Bonds, Series B (Federally Taxable – Build America Bonds). Principal is payable annually on June 1 in amounts ranging from $930,000 to 1,835,000 beginning in 2021 with final payment due in 2040. The City has pledged future water revenues, net of specified operating expenses, to repay these certificates.

The total principal and interest remaining to be paid on the certificates is $34,407,300.

The various indentures contain significant limitations and restrictions on annual debt service requirements, maintenance of and flow of moneys through various restricted accounts and minimum revenue bond coverage. The City is in compliance with all such significant limitations and restrictions.

Annual debt service requirements to maturity for certificates of participation and bonds are as follows:

Year Ending Governmental Activities Business-type Activities June 30, Principal Interest Principal Interest
2023 $ 660,000 $ 978,117 $ 5,511,416 $ 3,995,169 2024 655,000 986,000 5,767,098 3,729,702 2025 680,000 959,300 6,511,831 3,401,684 2026 705,000 931,600 6,818,707 3,187,421 2027 735,000 902,800 7,132,980 2,874,747 2028-2032 4,140,000 4,039,500 31,918,153 9,933,609 2033-2037 5,030,000 3,145,300 21,515,113 3,329,129 2038-2042 4,000,000 2,395,750 7,465,150 434,827 2043-2047 4,730,000 1,655,694 - - 2048-2052 5,660,000 729,700 - - 2053-2057 1,255,000 21,963 - - Total $ 28,250,000 $ 16,745,724 $ 92,640,448 $ 30,886,288

Note 8 – Pension Plans

A. Plan Descriptions
All qualified permanent and probationary employees are eligible to participate in the City’s separate Miscellaneous and Safety Plans (Plans), agent multiple-employer defined benefit pension plans administered by the California Public Employees’ Retirement System (CalPERS), which acts as a common investment and administrative agent for its participating member employers. Benefit provisions under the Plans are established by State statute and City resolution. CalPERS issues publicly available reports that include a full description of the pension plans regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website.

69 CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2022

Note 8 – Pension Plans (Continued)

B. Benefits Provided
CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full-time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 10 years of service.

The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law.

The Plans’ provisions and benefits in effect at June 30, 2022, are summarized as follows:

Miscellaneous Plan
Prior to On or after
Hire date 1-Jan-13 1-Jan-13
Benefit formula 2% @ 55 2% @ 62
Benefit vesting schedule 5 years of service 5 years of service Benefit payments monthly for life monthly for life
Retirement age 50-67 52-67
Monthly benefits, as a % of eligible compensation 1.426%-2.418% 1% to 2.5% Required employee contribution rates 7% 6.75%
Required employer contribution rates 21.80% 21.80%
Safety Plan
Prior to December 22, 2012 to On or after
Hire date 22-Dec-12 31-Dec-12 1-Jan-13
Benefit formula 3% @ 50 3% @ 55 2.7% @ 57
Benefit vesting schedule 5 years of service 5 years of service 5 years of service Benefit payments monthly for life monthly for life monthly for life Retirement age 50-55 50-55 50-57
Monthly benefits, as a % of eligible compensation 3% 2.4% to 3% 2% to 2.7% Required employee contribution rates 9% 9% 11.25%
Required employer contribution rates 44.75% 44.75% 44.75%

C. Employees Covered

At June 30, 2022, the most recent actuarial valuation available, the following employees were covered by the benefits of the City’s Plans:

Miscellaneous Safety
Plan Plan
Inactive employees or beneficiaries currently receiving benefits 135 115 Inactive employees entitled but not yet receiving benefits 116 46 Active employees 269 24
Total 520 185

70 CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2022

Note 8 – Pension Plans (Continued)

D. Contributions

Section 20814(c) of the California Public Employees’ Retirement Law requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. Funding contributions for both Plans are determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. The contributions for the measurement period were as follows:

Aggregate
Miscellaneous
Safety Total
Contributions - employer $ 5,449,075 $ 8,162,996 $ 13,612,071

E. Net Pension Liability

The City’s net pension liability for each Plan is measured as the total pension liability, less the pension plan’s fiduciary net position. The net pension liability of each of the Plans is measured as of June 30, 2021, using an annual actuarial valuation as of June 30, 2020 rolled forward to June 30, 2021 using standard update procedures.

F. Actuarial Assumptions

The total pension liabilities in the June 30, 2020 actuarial valuations were determined using the following actuarial assumptions:

Miscellaneous Plan Safety Plan
Valuation Date June 30, 2020 June 30, 2020
Measurement Date June 30, 2021 June 30, 2021
Actuarial Cost Method Entry-Age Normal Cost Method
Actuarial Assumptions: Discount Rate 7.15% 7.15%
Inflation 2.50% 2.50%
Investment Rate of Return 7.00% (1) 7.00% (1)
Mortality Based on rates of CalPERS Experience Study
(1) Net of pension plan investment expenses, including inflation

The underlying mortality assumptions and all other actuarial assumptions used in the June 30, 2020 valuation were based on the 2016 CalPERS Experience Study for the period from 1997 to 2011. Further details of the Experience Study can be found on the CalPERS website.

G. Discount Rate

The discount rate used to measure the total pension liability was 7.15% for each Plan. To determine whether the municipal bond rate should be used in the calculation of a discount rate for each plan, CalPERS stress tested plans that would most likely result in a discount rate that would be different from the actuarially assumed discount rate.

Based on the testing, none of the tested plans run out of assets. Therefore, the current 7.15% discount rate is adequate and the use of the municipal bond rate calculation is not necessary. The long-term expected discount rate of 7.65% will be applied to all plans in the Public Employees Retirement Fund (PERF). The stress test results are presented in a detailed report that can be obtained from the CalPERS website.

71 CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2022

Note 8 – Pension Plans (Continued)

The long-term expected rate of return on pension plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations as well as the expected pension fund cash flows. Using historical returns of all the funds’ asset classes, expected compound (geometric) returns were calculated over the short-term (first 10 years) and the long-term (11-60 years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equivalent to the single equivalent rate calculated above and rounded down to the nearest one quarter of one percent.

The table below reflects the long-term expected real rate of return by asset class. The rate of return was calculated using the capital market assumptions applied to determine the discount rate and asset allocation. These rates of return are net of administrative expenses.

Current Target Real Return Real Return
Asset Class Allocation Years 1 - 10 (1) Years 11 + (2) Public Equity 50.20% 50.00% -0.60%
Private Equity 7.10% 8.00% Fixed Income 28.70% 28.00% -7.00% Liquidity 1.00% 1.00% 1.00%
Real Estate 11.00% 13.00% 5.40%
Trust Level 2.00% 0.00% 0.00%
(1) An expected inflation of 1.55% used for this period. (2) An expected inflation of 1.50% used for this period.

H. Changes in the Net Pension Liability

The changes in the Net Pension Liability for each Plan follows:

Miscellaneous Plan: Increase (Decrease)
Total Pension Plan Fiduciary Net Net Pension
Liability Position Liability
Balance at June 30, 2020 $ 209,775,815 $ 146,446,488 $ 63,329,327 Changes in the year:

Service cost 3,122,428 - 3,122,428 Interest on the total pension liability 14,741,817 - 14,741,817 Differences between expected and actual
experience 699,175 - 699,175 Contribution - employer - 7,699,946 (7,699,946) Contribution - employee - 2,129,311 (2,129,311) Net investment income (1) - 33,076,897 (33,076,897) Benefit payments, including refunds of employee
contributions (11,713,899) (11,713,899) - Other changes in fiduciary net position - (146,291) 146,291 Net changes during measurement period 6,849,521 31,045,964 (24,196,443) Balance at June 30, 2021 $ 216,625,336 $ 177,492,452 $ 39,132,884 72 CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2022

Note 8 – Pension Plans (Continued)

H. Changes in the Net Pension Liability (Continued)

Safety Plan: Increase (Decrease)
Total Pension Plan Fiduciary Net Net Pension
Liability Position Liability
Balance at June 30, 2020 $ 210,664,024 $ 126,838,141 $ 83,825,883 Changes in the year:

Service cost 3,530,630 - 3,530,630 Interest on the total pension liability 14,951,257 - 14,951,257 Differences between expected and actual
experience 2,342,238 - 2,342,238 Contribution - employer - 9,831,931 (9,831,931) Contribution - employee - 2,238,261 (2,238,261) Net investment income
(1) - 29,108,868 (29,108,868) Benefit payments, including refunds of employee
contributions (11,326,169) (11,326,169) - Other changes in fiduciary net position - (126,704) 126,704 Net changes during measurement period 9,497,956 29,726,187 (20,228,231) Balance at June 30, 2021 $ 220,161,980 $ 156,564,328 $ 63,597,652 (1) Net of administrative expenses.

I. Sensitivity of the Net Pension Liability to Changes in the Discount Rate The following presents the net pension liability of the City for each Plan, calculated using the discount rate for each Plan, as well as what the City’s net pension liability would be if it were calculated using a discount rate that is 1- percentage point lower or 1-percentage point higher than the current rate:

Miscellaneous Plan Safety Plan
1% Decrease 6.15% 6.15%
Net Pension Liability $66,054,054 $93,309,844
Current Discount Rate 7.15% 7.15%
Net pension Liability $39,132,884 $63,597,652
1% Increase 8.15% 8.15%
Net Pension Liability $16,772,833 $39,201,926

J. Pension Plan Fiduciary Net Position

Detailed information about each pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports.

K. Pension Expense and Deferred Outflows/Inflows of Resources Related to Pensions

For the year ended June 30, 2022, the City recognized pension expense of $5,449,075 and $8,162,996 for the Miscellaneous and Safety Plans, respectively.

At June 30, 2022, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

73 CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2022

Note 8 – Pension Plans (Continued)

K. Pension Expense and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)

Miscellaneous Plan Safety Plan Total
Deferred Deferred Deferred Deferred Deferred Deferred
Outflows of Inflows of Outflows of Inflows of Outflows of Inflows of Resources Resources Resources Resources Resources Resources Pension contributions subsequent to measurement date $ 5,449,075 $ - $ 8,162,996 $ - $ 13,612,071 $ - Changes of assumptions - - - 16,622 - 16,622 Difference between expected and
actual experience 449,470 81,221 2,187,680 167,922 2,637,150 249,143 Net differences between projected
and actual earnings on plan - 16,518,296 - 14,603,830 - 31,122,126 investments Total $ 5,898,545 $ 16,599,517 $ 10,350,676 $ 14,788,374 $ 16,249,221 $ 31,387,891

The $5,449,075 and $8,162,996 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the next measurement period for the year ending June 30, 2022. Other amounts reported as deferred outflows and deferred inflows of resources related to pensions will be recognized as pension expense as follows:

Year Ending Miscellaneous Safety

30-Jun Plan Plan Total
2022 (4,036,865) (2,883,263) $ (6,920,128) 2023 (3,620,717) (2,919,925) (6,540,642) 2024 (3,955,578) (2,955,477) (6,911,055) 2025 (4,536,887) (3,842,029) (8,378,916) Total $ (16,150,047) $ (12,600,694) $(28,750,741)

Note 9 – Post Employment Benefits Other Than Pensions

A. Plan Description

The City sponsors a single-employer defined-benefit postemployment healthcare plan (Retiree Health Plan) to provide medical insurance benefits to eligible retired employees and their spouses. The Plan does not issue a publicly available financial report. Medical coverage is provided through CalPERS healthcare program. Employees who retire from the City and receive a CalPERS pension are eligible for postemployment medical benefits. The City contributes the minimum amount provided under Government Code Section 22825 of the Public Employees Medical and Hospital Care Act. In general, retirees must contribute any premium amounts in excess of the City contribution.

However, as described below, a closed group of active employees and retirees receive additional postemployment benefits.

Employees hired prior to the dates shown in the following table are allowed to convert their accumulated sick leave into postemployment medical benefits at retirement as long as they have ten or more years of service with the City.

74 CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2022

Note 9 – Post Employment Benefits Other Than Pensions (Continued)

A. Plan Description (Continued)

Group Hired prior to:

Executive Management July 1, 1994
Mid-Management July 1, 1994
Fire Mid-Management December 6, 1995
Police Mid-Management July 1, 1994
General Services July 1, 1995
IBEW July 1, 1995
Maintenance and Operators July 1, 1995
Dispatchers July 9, 1994
Police October 10, 1994
Fire December 6, 1995

B. Eligibility

Employees of the City are eligible for retiree health benefits if they retire from the City and commence pension benefits under PERS (typically on or after age 50 with at least five years of PERS eligible service). Membership in the plan consisted of the following at June 30, 201, the date of the latest actuarial valuation .

Eligibility
Plan
Active plan members 288
Inactive plan members entitled to, but not yet
receiving benefits 87
Retirees electing coverage 212
Retirees 6
Total 593

C. Funding Policy

Contribution requirements of the Retiree Health Plan are based on pay-as-you-go financing. The City’s policy is to fund the normal cost (current accrual for benefits being earned) plus an amortization of the net (unfunded accrued) OPEB liability. For fiscal year 2020-21, the City contributed $1,836,904.

D. Net OPEB Liability

The following table shows the components of the City’s annual OPEB cost for the year, the amount actually contributed to the plan, and changes in the City’s net OPEB obligation:

Actuarial accrued liability (AAL) $ 24,157,531

Actuarial value of plan assets 2,396,261
Unfunded actuarial accrued liability (UAAL) $ 21,761,270

75 CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2022

Note 9 – Post Employment Benefits Other Than Pensions (Continued)

E. Actuarial Methods and Assumptions

Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required contribution of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. Projections of benefits for financial purposes are based on the substantive plan (the plan as understood by the employer and plan members) and include types of benefits provided at the time of each valuation and the historical pattern of sharing benefit costs between the employer and the plan members to that point. The actuarial methods and the assumptions used include techniques that are designed to reduce short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculations.

F. Actuarial Valuations

The net OPEB liability in the June 30, 2021 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified:

Actuarial Methods and Assumptions Used to Determine Total OPEB Liability Valuation date: June 30, 2021 Measurement date: June 30, 2021 Actuarial Cost Method Entry Age Normal level percent of pay cost method Actuarial Assumptions:

Discount Rate 3.22%
Inflation 2.25%
Wage Inflation 2.75%
Expected Rate of Return 6.00% per annum. This discount rate assumes the City continues to fully fund for its retiree benefits through the California Employers' Retiree Benefit Trust (CERBT) under its investment strategy 2.

Healthcare Trend Rate An annual healthcare cost trend rate of 6.7% initially reduced by decrements to an ultimate of 3.7%
therefore.

G. Discount Rate

The discount rate used to measure the net OPEB liability was 3.22%. This discount rate assumes the City continues to fully fund for its retiree health benefits through the “California Employers Retiree Benefit Trust” (CERBT) under its investment allocation strategy 2. The rate reflects the OPEB published median interest rate for strategy 1 of 7.28% with an additional margin for adverse deviation.

The table below reflects long-term expected real rate of return by asset class. The rate of return was calculated using the capital market assumptions applied to determine the discount rate and asset allocation. These geometric rates of return are net of administrative expenses.

Asset Class

Target Allocation
Long-term Expected Real
Rate of Return1
Global equity 34.00% 4.40%
Fixed income 41.00% -1.00%
TIPS 5.00% -1.80%
Commodities 3.00% 0.80%
Cash 0.00% 0.00%
Global Real estate (REITs) 17.00% 3.00%
1 - Long term expected rate of return in 5.9%

76 CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2022

Note 9 – Post Employment Benefits Other Than Pensions (Continued)

G. Discount Rate (Continued)

The following presents the net OPEB liability of the City, as well as what the City’s net OPEB liability would be if it were calculated using a discount rate 1-percentage point lower (2.22%) or 1-percentage point higher (4.22%) than the current discount rate:

Plan's Net OPEB Liability/(Asset)
Discount Rate - 1% Current Discount Discount Rate + 1%
(2.22%) Rate (3.22%) (4.22%)
$ 24,527,882 $ 21,761,270 $ 19,463,635

H. Sensitivity of the Net OPEB Liability to changes in the Healthcare Cost Trend Rate

The following presents the net OPEB liability of the City, as well as what the City’s net OPEB liability would be if it were calculated using healthcare cost trend rates 1-percentage point lower (5.0%HMO/5.5%PPO decreasing to

4.0%HMO/4.5%PPO) or 1-percentage point higher (7.0%HMO/6.5%PPO decreasing to 6.0%HMO/6.5%PPO) than the current healthcare cost trend rates:

1% Decrease Current Discount Rate 1% Increase
HMO 4.00% 5.00% 6.00%
PPO 4.50% 5.50% 6.50%
City Plan $ 19,342,918 $ 21,761,270 $ 24,716,916

I. OPEB Liabilities, OPEB Expense and Deferred Outflows/Inflows of Resources to OPEB

Increase (Decrease)
Total OPEB Plan Fiduciary Net Net OPEB
Liability Position Liability/(Asset)
(a) (b) (c) = (a) - (b)

Balance at June 30, 2020 $ 26,361,543 $ 2,003,111 $ 24,358,432 Changes Recognized for the Measurement Period:

Service Cost 745,536 - 745,536 Interest on the total OPEB liability 932,315 - 932,315 Differences between expected and actual
experience (2,659,765) - (2,659,765) Changes of assumptions 614,806 - 614,806 Employer contributions - 1,836,904 (1,836,904) Net investment income - 393,880 (393,880) Benefit payments, including refunds of member
contributions (1,836,904) (1,836,904) - Administrative expenses - (730) 730

Net Changes during July 1, 2020 to June 30, 2021 (2,204,012) 393,150 (2,597,162)

Balance at June 30, 2021 (Measurement Date) $ 24,157,531 $ 2,396,261 $ 21,761,270

77 CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2022

Note 9 – Post Employment Benefits Other Than Pensions (Continued)

I. OPEB Liabilities, OPEB Expense and Deferred Outflows/Inflows of Resources to OPEB (Continued)

For the year ended June 30, 2022, the City recognized OPEB expense of $1,872,451 for the City Plan. At June 30, 2022 the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:

Deferred Outflows Deferred Inflows
of Resources of Resources
Contributions subsequent to
measurement date $ 1,657,903 $ - Change of assumptions - 1,967,815 Difference between expected and
actual liability - 5,929,182 Difference between expected and
actual investment earnings - 208,245 $ 1,657,903 $ 8,105,242

The $1,657,903 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net OPEB liability in the year ending June 30, 2022. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized as OPEB expense as follows:

Measurement Period
Ended June 30
2023 (1,811,905)
2024 (1,813,086)
2025 (1,485,110)
2026 (1,433,081)
2027 (1,032,884)
Thereafter (529,176)
Total $ (8,105,242)

Note 10 – Implementation of New GASB Pronouncements

For the year ended June 30, 2022, the financial statements include the adoption of GASB Statement No. 87, Leases.

The primary objective of this statement is to enhance the relevance and consistency of information about governments' leasing activities. This statement establishes a single model for lease accounting based on the principle that leases are financings of the right to use an underlying asset. Under this Statement, a lessee is required to recognize a lease liability and an intangible right-to-use lease asset, and a lessor is required to recognize a lease receivable and a deferred inflow of resources. For additional information, refer to the disclosures below.

Leases
The City monitors changes in circumstances that would require a remeasurement of its leases and will remeasure any lease asset, liability, and deferred inflows if certain changes occur that are expected to significantly affect the amount of the lease liability.

78 CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2022
Note 10 – Implementation of New GASB Pronouncements (Continued) A. Lessee
Lease assets are reported as right to use along with other capital assets and lease liabilities are reported with long‐ term debt on the statement of net position.

For the year ended June 30, the financial statements include the adoption of GASB Statement No. 87, Leases. The primary objective of this statement is to enhance the relevance and consistency of information about governments' leasing activities. This statement establishes a single model for lease accounting based on the principle that leases are financings of the right to use an underlying asset. Under this Statement, a lessee is required to recognize a lease liability and an intangible right‐to‐use lease asset, and a lessor is required to recognize a lease receivable and a deferred inflow of resources. For additional information, refer to the disclosures below.

On July 1, 2021, Lodi, CA entered into a 36 month lease as Lessee for the use of City Base. An initial lease liability was recorded in the amount of $134,429. As of June 30, the value of the lease liability is $89,733. Lodi, CA is required to make monthly fixed payments of $3,750. The lease has an interest rate of 0.2850%. The Equipment estimated useful life was 24 months as of the contract commencement. The value of the right to use asset as of June 30 of $134,429 with accumulated amortization of $44,644 is included with Equipment on the Lease Class activities table found below. Lodi, CA has 1 extension option(s), each for 12 months.

On July 1, 2021, Lodi, CA entered into a 795 month lease as Lessee for the use of Woodbridge Irrigation District‐ Pumping Plant. An initial lease liability was recorded in the amount of $45,526. As of June 30, the value of the lease liability is $44,802. Lodi, CA is required to make annual fixed payments of $1,000. The lease has an interest rate of

1.2120%. The Land estimated useful life was 795 months as of the contract commencement. The value of the right to use asset as of June 30 of $45,526 with accumulated amortization of $687 is included with Land on the Lease Class activities table found below. Lodi, CA has 1 extension option(s), each for 480 months. 79 CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2022

Note 10 – Implementation of New GASB Pronouncements (Continued)

A. Lessee (Continued)

Principal and interest expected to maturity:

Governmental Activities
Fiscal Year Principal Payments Interest Payments Total Payments 2023   $                    545,200   $                  1,037,058   $                  1,582,258 2024 639,987   1,022,308   1,662,295
2025 546,384   1,012,708   1,559,092
2026 552,352   1,003,090   1,555,442
2027 562,149   993,293   1,555,442
2028 ‐ 2032 2,948,236   4,813,015   7,761,251
2033 ‐ 2037 3,127,894   4,541,423   7,669,317
2038 ‐ 2042 2,205,388   4,318,593   6,523,981
2043 ‐ 2047 2,316,724   4,146,328   6,463,052
2048 ‐ 2052 2,423,140   3,966,114   6,389,254
2053 ‐ 2057 2,572,316   3,773,551   6,345,867
2058 ‐ 2062 2,780,154   3,565,713   6,345,867
2063 ‐ 2067 3,004,785   3,341,082   6,345,867
2068 ‐ 2072 3,247,566   3,098,301   6,345,867
2073 ‐ 2077 3,509,963   2,835,904   6,345,867
2078 ‐ 2082 3,793,561   2,552,306   6,345,867
2083 ‐ 2087 4,100,073   2,245,794   6,345,867
2088 ‐ 2092 4,431,351   1,914,516   6,345,867
2093 ‐ 2097 4,789,395   1,556,472   6,345,867
2098 ‐ 2102 5,176,369   1,169,498   6,345,867
2103 ‐ 2107 5,594,609   751,258   6,345,867
2108 ‐ 2112 6,046,643   299,225   6,345,868
2113 ‐ 2114 745,026   3,788   748,814
Total   $            65,659,265   $            53,961,338 $          119,620,603

Principal and interest expected to maturity:

Business‐Type Activities
Fiscal Year Principal Payments Interest Payments Total Payments 2023 $ 41,840 $ 2,770 $ 44,610 2024 42,454 2,156 44,610 2025 43,081 1,529 44,610 2026 43,719 891 44,610 2027 33,837 247 34,084 Total $ 204,931 $ 7,593 $ 212,524 B. Lessor

The City is a lessor for leases of special purpose facilities, office and commercial space, and land. The City recognizes leases receivable and deferred inflows of resources in the financial statements.

On July 1, 2021, Lodi, CA entered into a 117 month lease as Lessor for the use of Adopt‐A‐Child. An initial lease receivable was recorded in the amount of $127,928. As of June 30, the value of the lease receivable is $115,408. The 80 CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2022

Note 10 – Implementation of New GASB Pronouncements (Continued)

B. Lessor (Continued)

lessee is required to make monthly fixed payments of $1,140. The lease has an interest rate of 1.0400%. The value of the deferred inflow of resources as of June 30 was $114,904, and Lodi, CA recognized lease revenue of $13,024 during the fiscal year.

On July 1, 2021, Lodi, CA entered into a 37 month lease as Lessor for the use of Ascend Fitness. An initial lease receivable was recorded in the amount of $63,665. As of June 30, the value of the lease receivable is $47,344. The lessee is required to make monthly fixed payments of $1,825. The lease has an interest rate of 0.1980%. The value of the deferred inflow of resources as of June 30 was $43,525, and Lodi, CA recognized lease revenue of $20,140 during the fiscal year.

On July 1, 2021, Lodi, CA entered into a 67 month lease as Lessor for the use of World of Wonders Science Museum.

An initial lease receivable was recorded in the amount of $68,631. As of June 30, the value of the lease receivable is $56,389. The lessee is required to make monthly variable principal and interest payments of $1,000 based on a CPI index of 3.00%. The lease has an interest rate of 0.1980%. The value of the deferred inflow of resources as of June 30 was $56,339, and Lodi, CA recognized lease revenue of $12,292 during the fiscal year. The lessee has 1 extension option(s), each for 36 months.

On July 1, 2021, Lodi, CA entered into a 345 month lease as Lessor for the use of McCaw Communications ‐ AT&T.

An initial lease receivable was recorded in the amount of $416,090. As of June 30, the value of the lease receivable is $402,341. The lessee is required to make monthly variable principal and interest payments of $1,249 based on a CPI index of 2.16%. The lease has an interest rate of 0.4170%. The value of the deferred inflow of resources as of June 30 was $401,637, and Lodi, CA recognized lease revenue of $14,453 during the fiscal year.

On July 1, 2021, Lodi, CA entered into a 264 month lease as Lessor for the use of NCPA. An initial lease receivable was recorded in the amount of $4,616,866. As of June 30, the value of the lease receivable is $4,432,549. The lessee is required to make monthly fixed payments of $20,310. The lease has an interest rate of 1.4330%. The value of the deferred inflow of resources as of June 30 was $4,407,326, and Lodi, CA recognized lease revenue of $209,540 during the fiscal year.

On July 1, 2021, Lodi, CA entered into a 1098 month lease as Lessor for the use of NCPA Ground Lease. An initial lease receivable was recorded in the amount of $61,336,378. As of June 30, the value of the lease receivable is $60,097,664. The lessee is required to make annual fixed payments of $20,310. The lessee is required to make annual variable principal and interest payments of $1,188,686.16 based on a CPI index of 2.50%. The lease has an interest rate of 1.5550%. The value of the deferred inflow of resources as of June 30 was $60,666,604, and Lodi, CA recognized lease revenue of $669,774 during the fiscal year. The lessee has 1 extension option(s), each for 600 months.

On July 1, 2021, Lodi, CA entered into a 36 month lease as Lessor for the use of Verizon. An initial lease receivable was recorded in the amount of $146,156 As of June 30, the value of the lease receivable is $97,553. The lessee is required to make monthly variable principal and interest payments of $3,932 based on a Prime Rate of 3.67%. The lease has an interest rate of 0.2850%. The value of the deferred inflow of resources as of June 30 was $97,438, and Lodi, CA recognized lease revenue of $48,719 during the fiscal year.

On May 1, 2022, Lodi, CA entered into a 60 month lease as Lessor for the use of THE VILLAGE. An initial lease receivable was recorded in the amount of $153,458. As of June 30, the value of the lease receivable is $148,543. The lessee is required to make monthly fixed payments of $2,688. The lease has an interest rate of 1.9770%. The value of the deferred inflow of resources as of June 30 was $148,343, and Lodi, CA recognized lease revenue of $5,115 during the fiscal year.
81 CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2022

Note 10 – Implementation of New GASB Pronouncements (Continued)

B. Lessor (Continued)

On May 29, 2022, Lodi, entered into a 180 month lease as Lessor for the use of Judicial Council of California. An initial lease receivable was recorded in the amount of $2,890,306. As of June 30, the value of the lease receivable is $2,890,306. The lessee is required to make monthly variable principal and interest payments of $19,747. The lease has an interest rate of 2.3060%. The value of the deferred inflow of resources as of June 30 was $2,873,178, and Lodi, CA recognized lease revenue of $17,128 during the fiscal year. The lessee has 1 extension option(s), each for 120 months.

Principal and interest requirements to maturity:

Governmental Activities
Fiscal Year Principal Payments Interest Payments Total Payments 2023 $ 11,201 $ 49 $ 11,250 2024 $ 11,233 17 11,250 Total $ 22,434 $ 66 $ 22,500

Business‐Type Activities
Fiscal Year Principal Payments Interest Payments Total Payments 2023 $ 34,059 $ 691 $ 34,750 2024 34,161 590 34,751 2025 468 532 1,000 2026 474 526 1,000 2027 480 520 1,000 2028 ‐ 2032 2,486 2,514 5,000 2033 ‐ 2037 2,641 2,359 5,000 2038 ‐ 2042 2,805 2,195 5,000 2043 ‐ 2047 2,979 2,021 5,000 2048 ‐ 2052 3,164 1,836 5,000 2053 ‐ 2057 3,360 1,640 5,000 2058 ‐ 2062 3,569 1,431 5,000 2063 ‐ 2067 3,791 1,209 5,000
2068 ‐ 2072 4,026 974 5,000 2073 ‐ 2077 4,276 724 5,000 2078 ‐ 2082 4,541 459 5,000 2083 ‐ 2087 4,823 177 5,000 Total $ 112,103 $ 20,398 $ 132,501

Amount of lease assets by major classes of underlying asset:

As of Fiscal Year‐end
Asset Class Lease Asset Value Accumulated Amortization Net Equipment $ 134,429 $ 44,644 $ 89,785 Land 45,526 687 44,839 Total Leases $ 179,955 $ 45,331 $ 134,624

82 CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2022

Note 10 – Implementation of New GASB Pronouncements (Continued)

C. Activity

Governmental Activities:

The following is a summary of lease transactions of the City for the year ended June 30, 2022:

Lessor Balance as of Balance as of
Lease receivable July 1, 2021 Additions Reductions June 30, 2022 Governmental activities:

Buildings:

Adopt-A-Child $ 127,928 $ - $ (12,521) $ 115,407 Ascend Fitness 63,665 - (16,320) 47,345 Judicial Council of California - 2,890,306 - 2,890,306 Land:

McCaw Communications - AT&T 416,090 - (13,749) 402,341 NCPA 401,235 - (20,310) 380,925 NCPA Ground Lease 62,042,868 - (388,283) 61,654,585 T-Mobile 104,538 - (33,735) 70,803 Verizon 146,156 - (48,603) 97,553 Business-type activities:

Buildings:

World of Wonders Science Museum 68,631
- (12,242) 56,389
The Village - 153,458 (4,916) 148,542 Total lease receivable $ 63,371,111 $ 3,043,764 $ (550,679) $ 65,864,196

Lessor Balance as of Balance as of
Deferred inflow of resources July 1, 2021 Additions Reductions June 30, 2022 Business-type activities:

Buildings:

World of Wonders Science Museum $ 68,631 $ - $ (12,292) $ 56,339 The Village - 153,458 (5,115) 148,343 Governmental activities:

Buildings:

Adopt-A-Child 127,928 - (13,024) 114,904 Ascend Fitness 63,665 - (20,140) 43,525 Judicial Council of California - 2,890,306 (17,128) 2,873,178 Land:

McCaw Communications - AT&T 416,090
- (14,453) 401,637
NCPA 401,235 - (18,210) 383,025 NCPA Ground Lease 62,042,868 - (677,489) 61,365,379 T-Mobile 104,538 - (34,944) 69,594 Verizon 146,156 - (48,719) 97,437 Total deferred inflow of resources $ 63,371,111 $ 3,043,764 $ (861,514) $ 65,553,361

Note 11 – Claims and Benefits

The City is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and omissions; injuries to employees; and natural disasters. The City is self-insured as discussed in the following paragraphs for which liabilities are recorded in the Internal Service Fund-Insurance Fund.

83 CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2022

Note 11 – Claims and Benefits (Continued)

The City is self-insured for general liability up to the first $500,000 per occurrence with claims from $500,000 to $40,000,000 per occurrence and in the aggregate insured through the California Joint Powers Risk Management Authority. The City has not had any settlements that exceeded its general liability insurance coverage (See Note 13).

The City is self-insured for workers’ compensation up to the first $250,000 per claim. Any claims of $250,000 up to California statutory limits are covered under a purchased policy through the membership with the Local Agency Workers’ Compensation Excess Joint Powers Authority with coverage up to $300,000,000 in the current year. The City has not had any settlements that exceeded its workers’ compensation insurance coverage (See Note 13).

The City is fully self-insured for dental and unemployment for its employees.

General liability and workers’ compensation claims are administered by an outside agency and all other claims are administered by the City. The City has accrued a liability of $10,870,196 at June 30, 2022, for all self-insured claims in the Internal Service Fund-Insurance Funds that includes an amount for incurred but not reported claims. The liability amount is based on the requirements of GASB Statement No. 62, which requires that a liability for claims be reported if information prior to the issuance of the financial statements indicates that it is probable that a liability has been incurred at the date of the financial statements and the amount of the loss can be reasonably estimated. In the opinion of the City, the amounts accrued are adequate to cover claims incurred but not reported in addition to known claims.

Changes in the self-insurance liability for the years ended June 30, 2022, 2021, and 2020 are as follows:

FY21-22 FY20-21 FY19-20
Beginning Balance $ 9,482,536
$ 8,665,085 $ 8,065,374
Current Year Claims &
Changes In Estimates 3,186,469 3,528,844 1,979,746 Claim Payments (1,798,809) (2,711,393) (1,380,035) Ending Balance $ 10,870,196 $ 9,482,536 $ 8,665,085

Note 12 – Participation in Joint Ventures

A. Northern California Power Agency

The City, along with fifteen other public agencies, is a member of the Northern California Power Agency (NCPA) that was formed in 1968 as a joint powers agency. Its membership consists of twelve cities with publicly owned electric utility distribution systems, one port authority, a transit authority, one public utility district and on associate member. NCPA is generally empowered to purchase, generate, transmit, distribute and sell electrical energy.

Members participate in the projects of NCPA on an elective basis. A commission comprising of one representative from each member organization governs NCPA. The commission is responsible for the general management of the affairs, property, and business of NCPA. Under the direction of the General Manager, the staff of NCPA is responsible for providing various administrative, operating and planning services for NCPA, its associated power corporations and its members.

NCPA’s project construction and development programs have been individually financed by project revenue bonds collateralized by NCPA’s assignment of all payments, revenues and proceeds associated with its interest in each project.

84 CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2022

Note 12 – Participation in Joint Ventures (Continued)

A. Northern California Power Agency (Continued)

Each Project Participant has agreed to pay its proportionate share of debt service and other costs of the related project, notwithstanding the suspension, interruption, interference, reduction or curtailment of output from the project for any reason. Certain of the revenue bonds are additionally supported by municipal bond insurance credit enhancements.

Project Financing and Construction

Increase in Non-defaulting Project Participant’s Original Project Entitlement Percentage Upon the failure of any Project Participant to make any payment, which failure constitutes a default under the Member Agreement for the projects, and except as sales and transfers are made pursuant thereto, the Member Agreements provide that Project Entitlement for each non-defaulting Project Participant shall be automatically increased for the remaining term of the Member Agreement; pro rata with those of the non-defaulting Project Participant thereunder; provided, however, that the sum of such increase for any non-defaulting Project Participant shall not exceed, without written consent of such non-defaulting Project Participant, an accumulated maximum of 25% of the non-defaulting Project Participant’s original Project Entitlement Percentage Share.

General Operating Reserve with NCPA
Members of NCPA established a general operating reserve in 1992 for the purposes of providing a vehicle to fund reasonably foreseeable contingent liabilities. It was set up primarily to provide the following advantages: minimizes the number and dollar amount of reserve that might otherwise be funded separately in connection with NCPA’s individually financed operating plants, projects and programs; and provides each member with flexibility and unilateral control over the determination of what they will fund, how they will fund it and what expenditures from the reserve will be made on their individual behalf. It provides funding for contingent liabilities that are not budgeted but that may require significant future expenditures. The reserve is segregated by participant and is refundable on demand by the participant.

As of June 30, 2022, the City’s advance receivable in the NCPA General Operating Reserve, which has been credited with annual interest earnings and settlements, is $10,922,475.

Project Participation
The NCPA members and their percentage share at June 30, 2022, which is the most recent available data, are as follows:

85 CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2022

Note 12 – Participation in Joint Ventures (Continued)

A. Northern California Power Agency (Continued)

Hydro Combustion Multiple Lodi
Geothermal Electric Turbine Capital Transmission Energy NCPA MEMBERS Project Project Project #1 Facilities Project Center Alameda 16.88% 10.00% 21.82% 19.00% 30.36% 0.00%
Bay Area Rapid Transit - - - - - 6.60 Biggs 0.23 - 0.20 - 0.41 0.27 Gridley 0.34 - 0.35 - 0.60 1.96 Healdsburg 3.67 1.66 5.83 - 6.61 1.64 Lodi 10.28 10.37 13.39 39.50 18.49 9.50 Lompoc 3.68 2.30 5.83 5.00 6.62 2.04 Palo Alto - 22.92 - - - Plumas-Sierra Rural Electric Coop 0.70 1.69 1.82 - 1.26 0.79 Roseville 7.88 12.00 - 36.50 14.18 - Santa Clara 44.39 37.02 41.67 - - 25.75 Ukiah 5.61 2.04 9.09 - 10.10 1.79 OTHER PARTICIPANTS - Azusa - - - - - 2.79 California Department of Water Resources - - - - - 33.50 Modesto Irrigation District - - - - - 10.71 Power & Water Resources Pooling Agency - - - - - 2.67 Turlock Irrigation District 6.33 - - - 11.38 -

Bulk power purchased by the City through NCPA amounted to $48,380,956 during the year ended June 30, 2022 and is reflected in utilities expense in the Electric Enterprise Fund.

NCPA Geothermal Project
In addition to federal geothermal leasehold, steam wells, gathering system and related facilities, the project consists of two electric generating stations (Plant 1 and Plant 2). With combined 165 MW turbine generator units utilizing low temperature geothermal steam; associated electrical, mechanical and control facilities; a heat dissipation system; a steam gathering system; a transmission tap line; and, other related facilities. Geothermal steam for the project is derived from the geothermal property, which includes well pads, access roads, steam wells and re-injection wells.

Under a power purchase agreement with NCPA, the City is obligated to pay 10.28% of the operating and debt service costs. Outstanding long-term debt related to this project was approximately $10.8 million at June 30, 2022.

Calaveras Hydroelectric Project
NCPA contracted to finance, manage, construct and operate Hydroelectric Project Number One for the licensed owner, Calaveras County Water District. In exchange, NCPA has the right to the electric output of the project for 50 years from February 1982. NCPA has also the option to purchase power from the project in excess of the District’s requirements for the subsequent 50 years, subject to regulatory approval.

Under a power purchase agreement, the City is obligated to pay 10.37% of the operating costs and approximately

10.56% of the debt service. At June 30, 2022, approximately $228.4 million in long-term debt used to finance this project was outstanding.

86 CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2022

Note 12 – Participation in Joint Ventures (Continued)

A. Northern California Power Agency (Continued)

NCPA Combustion Turbine Project #1
The original project consisted of five combustion turbine units; each nominally rated at 25 MW. Concurrent with the final project bond maturity, two units located in Roseville were acquired by an NCPA member. The remaining project consists of two units in Alameda and one in Lodi. The project provides capacity during peak load periods and emergency capacity reserves. Excess capacity and energy from the project are also sold to other entities from time to time.

Under the NCPA power agreement, the City is obligated to pay 13.39% of the debt service and operating costs. At June 30, 2022, there was no outstanding long-term debt related to this project.

Capital Facilities Project
The Project consists of one 49.9 MW natural gas-fired steam injected combustion turbine generator unit located in Lodi, California. Wastewater is reclaimed from the City of Lodi’s White Slough water pollution control facility, processed to eliminate contaminants, and used in the turbine to produce steam for power enhancement and emissions control.

Under a power purchase agreement with NCPA, the City is obligated to pay 39.5% of the operating and debt service costs. Outstanding long-term debt related to this project was approximately $14.7 million at June 30, 2022.

Transmission Project
The project was undertaken to meet certain obligations of NCPA under the NCPA/PG&E Interconnection Agreement.

The project includes co-tenancy interest in PG&E’s 230 kV Castle Rock to Lakeville Substation Transmission Line in Sonoma County, additional firm transmission rights in that transmission line and a central dispatch facility. The City is obligated to pay 18.49% of the operating and debt service costs. At June 30, 2022 there was no outstanding long- term debt related to this project.

Lodi Energy Center
The Lodi Energy Center project is a 304 MW natural gas-fired, combined-cycle power generation plant located in Lodi on City property. Pursuant to a power sales agreement, NCPA owns and operates the project, selling the capacity and energy to various project participants, including both members and non-members of NCPA. This project is located next to the Capital Facilities Projects listed above.

The City is obligated to pay 17.03% of the debt service and 9.5% of operating costs. At June 30, 2022, approximately $293.6 million in long-term debt was outstanding.

Audited Statements
The following are the most recent available audited condensed financial statements of NCPA:

At June 30, 2022, NCPA’s total net outstanding long-term debt was $547,666,000 at an average interest rate of 5%.

The current portion of long-term debt at June 30, 2022, was $44,314,000.

Complete financial information for NCPA may be obtained at the following administration office:

Northern California Power Agency
651 Commerce Drive
Roseville, CA 95678-6411

87 CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2022

Note 12 – Participation in Joint Ventures (Continued)

A. Northern California Power Agency (Continued)

Condensed Statement of Net Position
Condensed Statement of Revenues, Expenses
June 30, 2022 and Changes in Net Position
(in thousands) Year ended June 30, 2022
Assets and Deferred Outflows of Resources (in thousands) Current assets $ 177,909 Sales for resale $ 879,672 Restricted assets 140,337 Operating expenses (842,096) Electric plant, net 518,691 Other expenses (35,049) Other assets 197,060 Future recoverable costs (12,122) Total assets 1,033,997 Net revenues before refunds (9,595) Deferred outflows of resources 77,321 Refunds to participants (1,336) Total assets and deferred outflows of resources $ 1,111,318 Increase in net position (10,931) Liabilities, Deferred Inflows of Resources and Net Position Net position, beginning of year 27,628 Long-term debt, net $ 503,352 Net position, end of year $ 16,697 Current liabilities 137,039
Non-current liabilities 340,297 Combined Statement of Cash Flows Deferred inflows of resources 113,933 Year ended June 30, 2022 Net position (in thousands)
Net investment in capital assets (18,234) Net cash from operating activities $ 36,358 Restricted 43,734 Net from investing activities 13,008 Unrestricted (8,803) Net cash from capital and related Total liabilities, deferred inflows financing activities (87,002) of resources and net position $ 1,111,318 Net cash from noncapital and related financing activities 9,272 Increase in cash and cash equivalents (28,364) Cash and cash equivalents, beginning
of year 137,236
Cash and cash equivalents end of year $ 108,872

B. Transmission Agency of Northern California

The City of Lodi is a member of the Transmission Agency of Northern California (TANC), a California Joint Powers Agency formed in the early 1980’s to build the California Oregon Transmission Project (COTP) – a transmission line connecting the Pacific Northwest with Central California.

On April 2, 2014, the Lodi City Council approved a 25-year layoff of the City’s share of the COTP transfer capability, effective July 1, 2014, whereby the City and all of the TANC members who are in the CAISO Balancing Authority lay off their interests to certain other COTP participants. In exchange, these entities pay the City’s allocated share of COTP costs. This layoff arrangement does not change Lodi’s membership status in TANC and does not relieve the City of its obligations under the TANC Agreement in the event of any default in payment by an acquiring party.

88 CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2022

Note 12 – Participation in Joint Ventures (Continued)

B. Transmission Agency of Northern California (Continued)

TANC and certain TANC members have arranged for Pacific Gas & Electric (PG&E) to provide TANC and its members with 300 MW of firm bi-directional transmission capacity on its transmission system between its Midway Substation near Buttonwillow, CA and its Tesla Substation near Tracy, CA, near the southern terminus of the COTP under an agreement known as the South of Tesla (SOT) Principles. The City has utilized its full allocation of Tesla-Midway Transmission Service for power transactions in the past. The City is responsible for 2.07% of TANC’s SOT debt service which as of June 30, 2022 had an outstanding balance of approximately $2.5 million.

Complete financial information for TANC may be obtained at the following administration office:

Transmission Agency of Northern California
35 Iron Point Circle, Suite 225
Folsom, CA 95630

Note 13 – Membership in Insurance Pools

A. California Joint Powers Risk Management Authority

The City is a member, along with sixteen other individual cities and four joint powers authorities, of California Joint Powers Risk Management Authority (CJPRMA) organized under a Joint Powers Agreement pursuant to the California Government Code for the purpose of sharing the risk of catastrophic general liability, automobile liability and public officials' errors and omissions losses. CJPRMA has a twenty-one member Board of Directors, including a director from the City of Lodi. The Board members elect officers of CJPRMA every two years.

The ultimate cost of the program to the City depends on the catastrophic losses of all members, as well as the City's own loss experience and will be determined through an actuarial analysis of loss history during the ten-year period preceding the three years prior to the end of the current program year. The City periodically pays premiums to the CJPRMA. These premiums are recorded as expenses in the year paid, as they are a reasonable estimate of the actual cost of the program. During the year ended June 30, 2022, premiums of $668,405 were paid to CJPRMA for the liability program.

The participants at June 30, 2022, are as follows: Alameda, Chico, Fairfield, Fremont, Livermore, Lodi, Livermore Pleasanton Fire Department, Northern California Cities Self Insurance Fund, Petaluma, Redding, Richmond, Roseville, San Leandro, San Rafael, Santa Rosa, Small Cities Organized Risk Effort, Stockton, Sunnyvale, Vacaville, and Yolo County Public Agencies Risk Management Insurance Authority.

Complete financial information for CJPRMA may be obtained at the following administration office:

California Joint Powers Risk Management Authority
3252 Constitution Dr.

Livermore, CA 94551

89 CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2022

Note 13 – Membership in Insurance Pools (Continued)

B. Local Agency Workers' Compensation Excess Joint Powers Authority

The City, along with thirty-three other public agencies, is a member of the Local Agency Workers' Compensation Excess Joint Powers Authority (LAWCX), which was formed July 1992, for the purpose of sharing the risk of workers' compensation losses. LAWCX offers $150,000, $250,000, $350,000, $500,000 and $1 million self-insured retentions (SIR) or a member can attach directly to the purchased excess insurance. LAWCX covers the layer above the member SIR up to $5 million. The City’s self-insured retention is $250,000. LAWCX participates in the California State Association of Counties Excess Insurance Authority (CSAC-EIA) to obtain coverage up to statutory limits. The City paid $663,761 in premiums to LAWCX during the year ended June 30, 2022.

The participants at June 30, 2022, are as follows: City of Alameda, Association of Bay Area Governments Shared Risk Pool (ABAG SHARP), Bay Cities Joint Powers Insurance Authority (BCJPIA), City of Benicia, Central Contra Costa County Transit Agency (CCCTA), California Housing Workers’ Compensation Authority (CHWCA), Central San Joaquin Valley Risk Management Authority (CSJVRMA), City of Clovis, City of Coronado, City of Encinitas, Fire Agencies Self Insurance System (FASIS), City of Gilroy, City of Livermore, City of Lodi, Town of Los Gatos, City of Merced, City of Morgan Hill, City of Newark, City of Placentia, City of Pleasanton, City of Roseville, Public Entity Risk Management Authority (PERMA), City of San Leandro, City of Santa Maria, City of Santee, Small Cities Organized Risk Effort (SCORE), City of South Lake Tahoe, City of Suisun City, City of Vacaville, Vector Control Joint Powers Agency (VCJPA) and City of Vista.

Complete financial information for LAWCX may be obtained at the following administration office:

Local Agency Workers’ Compensation Excess Joint Powers Authority 1750 Creekside Oaks Drive, Suite 200
Sacramento, California 95833

C. California Transit Insurance Pool

The City, along with thirty-three other public agencies is a member of the California Transit Insurance Pool (Cal TIP), a joint powers insurance authority which was formed for the purpose of sharing the risk of property damage, bodily injury, personal injury and public officials errors and omissions losses for public transit systems.

Liability protection coverage is provided under two programs:

Program I applies to members who choose to utilize Cal Tip’s claims administrator services.

Program II applies to members with self-insured retentions who choose to provide their own claims administrator services.

Cal TIP purchases excess insurance over its $1,000,000 retention up to $20 million per occurrence. Each member is provided with $4 million in excess of the pooled retention for a total of $5 million in coverage and has the option to choose one or both of two additional layers for the full $20 million.

Cal TIP also provides physical damage coverage to its members. This coverage program is optional for all members and offers damage or loss protection for transit, staff and maintenance vehicles to transit operators. Cal TIP self- insures up to $100,000, under which members have the option of five levels of deductible ranging from $500 to $10,000 per vehicle. Claims are administered by the Cal Tip’s adjuster.

90 CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2022

Note 13 – Membership in Insurance Pools (Continued)

C. California Transit Insurance Pool (Continued)

The City paid $101,590 in premiums to Cal TIP during the year ended June 30, 2022. There have been no reductions in insurance coverage from the prior year and there were no insurance settlements in excess of insurance coverage in any of the last three years.

Self-Insured Limit Physical
Program Retention (in millions) Damage
City of Lodi Transit System I Prefunded 20 Yes

Complete financial information for Cal Tip may be obtained at the following administration office:

California Transit Insurance Pool
1750 Creekside Oaks Drive, Suite 200
Sacramento, California 95833

Note 14 – Deficit in Net Position

A. Deficit in Net Position

The City has a deficit net position in its governmental activities in the amount of ($56,728,304) which is primarily attributable to the net pension and OPEB obligations outstanding as of June 30, 2022.

A deficit in net position in the amount of ($667,858) in the ISF Fleet Services Fund at June 30, 2022, is attributed to the increase in personnel expenses. The City will evaluate the rates charged to departments to eliminate the deficit during the budget process.

B. Expenditures in Excess Of Appropriations

Expenditures In Excess Of Appropriations For the year ended June 30, 2022, expenditures exceeded appropriations in the following programs/functions/fund (legal level of budgetary control) of the respective funds:

The General Fund expenditures for the Financial Services division were higher than anticipated for this department due to additional expenditures relating to salaries and benefits. Expenditures for debt service were higher than anticipated due to expenditures relating to the implementation of GASB 87 leases. The General Fund, however, did not have excess expenditures over appropriations at the fund level.

Excess Expenditures
Funds Appropriations Expenditures over Appropriations
General Fund:

Financial Services $ 1,129,110 $ 1,138,329 $ (9,219) Debt service - 11,250 (11,250)

91 CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2022

Note 15 – Pollution Remediation Obligation

The City relies on groundwater for its drinking water and in the late 1980’s, Perchloroethylene (PCE) and Trichloroethylene (TCE) pollution was discovered in several municipal water supply wells. Investigations conducted by the California Regional Water Quality Control Board (RWQCB) in the early 1990’s under the Well Investigation program revealed numerous areas where TCE was discharged, or where PCE from dry cleaning operations was discharged to the sewer system. In 1997, the Department of Toxic Substances Control (DTSC) and the City entered into a cooperative agreement whereby the City assumed a lead role in the cleanup and agreed to pursue legal action against potentially responsible parties (PRPs). The City’s estimate of the pollution remediation obligation was $70 million. The City has settled with all the involved parties.

The City received a draft cleanup and abatement order to investigate the discharges of waste, clean up the waste and abate the effects of the discharges of waste in conformance with the State Water Resources Control Board’s (SWRCB) Resolution No. 92-49 Policies and Procedures for Investigation and Cleanup and Abatement of Discharges Under the Water Code Section 13304 and with the RWQCB’s Water Quality Control Plan for the Sacramento River and San Joaquin River. The City then engaged the services of Treadwell and Rollo to advise the City on courses of action in the preparation of feasibility studies, remedial design, and remedial action plan to comply with the technical and reporting requirements of the SWRCB.

The City’s estimated total pollution remediation obligation as of June 30, 2022, is $15,039,357. This amount is an estimate and subject to changes resulting from price increases or reductions, technology, or changes in applicable laws or regulations.

Note 16 – Commitments and Contingencies

A. Litigation and claims

The City from time to time is a party to various claims, legal actions, and complaints arising in the ordinary course of business. In the opinion of the City’s administration, the various claims, legal actions, and complaints resulting from such litigation not covered by the City’s self-insurance program (see Note 13) would not materially affect the financial position of the City.

B. Water Purchase Agreement with Woodbridge Irrigation District

The City obtains its municipal water supply from wells located within the City, extracting water from the underground aquifer, which is replenished in part by flows of the Mokelumne River. To avoid being wholly dependent upon wells and the possible impacts of eventual overdraft of the groundwater supply, the City made a commitment in 2003 to purchase surface water supply from Woodbridge Irrigation District for an initial term of 40 years. The agreement provides for the purchase of 6,000 acre feet per year and the City pays the District $1.2 million annually. The initial term of the agreement was for 40 years. In January 2008, the District and the City of Lodi amended the 2003 water sale contract to, among other matters, extend that agreement for four years to October 2047.

C. Arbitrage Earnings Rebate Liability

Arbitrage earnings are defined as income earned on the unexpended tax-exempt certificate proceeds in excess of that which would have been earned had the moneys been invested in securities with a yield of the effective rate of the certificates. Currently, arbitrage earnings must be rebated to the United States Treasury every five years. There is no cumulative arbitrage liability as of June 30, 2022, for any of the City’s outstanding Certificates of Participation and Revenue Bonds.

92 CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2022
Note 16 – Commitments and Contingencies (Continued)
D. Construction and Other Significant Commitments
Commitments are existing arrangements to enter into future transactions or events, such construction contracts for ongoing projects and long‐term contractual obligations with suppliers for future purchases at specified prices and sometimes specified quantities. Significant commitments as of June 30, 2022 are as follows:

Governmental Activities: Business‐type Activities:

General Fund   $    650,154   Electric Fund   $    1,836,642 Other governmental funds     5,256,623    Wastewater Fund        1,197,646 Water Fund            804,104
Transit Fund              30,205
Total governmental activities   $ 5,906,777   Total business‐type activities   $    3,868,597 E. Power Supply Costs
On August 18, 2021, the Lodi City Council took action to approve the use of $2 million in General Operating Reserves
(GOR) to reduce the August 2021 and September 2021 Energy Cost Adjustment (ECA) charge applied to Lodi Electric Utility (LEU) customer energy bills.  The ECA, approved by the Lodi City Council in 2007, is a monthly charge or credit applied to customer utility bills based on corresponding increases or decreases in power supply costs.  The ECA is a cost recovery mechanism which mitigates the need to consider more frequent changes to base electric rates.

Without the ECA, electric rates would need to be adjusted on a more frequent basis to ensure sufficient reserves are available to address unforeseen cost increases. During the summer of 2021, LEU experienced an increase in market power purchases due to worsening drought conditions and limited resources. Recognizing the impact of higher than average ECA amounts on customers and their utility bills over summer months when usage is at its highest, the Lodi City Council approved the use of Lodi’s GOR funds held at Northern California Power Agency to reduce the August 2021 and September 2021 ECA. Lodi’s GOR provides funding for, among other things, business related areas of risk such as market power volatility and the cost of replacement power during dry year conditions for which costs cannot reasonably be forecasted and budgeted. Sufficient funding was available in Lodi’s GOR which had a balance of $10,922,475 at June 30, 2022.

Note 17 – Reclassification of Fund Balance
Net Position
Internal Service Fund
Net Position July 1, 2021   $              (28,926,492) Reclassification Adjustment   29,257,928
July 1, 2021, as restated   $ 331,436
Internal Services Fund ‐ Benefits
OPEB Liability
The OPEB liability was recorded in the Benefits Internal Services Fund.  It was also presented in the government wide financial statement.  The prior period restatement is to restate the Benefits Internal Services Fund and remove the OPEB liability from this fund.
93 CITY OF LODI
Notes to Basic Financial Statements (continued)
June 30, 2022

Note 18 – Subsequent Events

American Rescue Plan Act (ARPA)
In March 2021, Congress passed the American Rescue Plan Act (ARPA). ARPA is intended to provide direct relief to the American people, rescue the American economy, and work to end the COVID-19 pandemic. Under ARPA more than $360 billion in emergency funding for state, local, territorial, and Tribal governments was distributed to ensure that they are in a position to keep front line public workers on the job and paid, while also effectively distributing the vaccine, scaling testing, reopening schools, and maintaining other vital services. The City was allocated $15.7 million dollars, with the first portion of $7.8 million received in July 2021. The City received the second portion of funding in July 2022. The City has worked on finalizing exactly how the complete funding package will be spent. The ARPA money is being allocated to an Access center to address the homelessness, a citywide broadband project, small business loans and providing utility relief, in addition to other projects.

Initially, Council approved a portion of the funding to be spent on, utility relief, vaccine incentives and community grants to local businesses. Additional funding will be spent on the Access Center, Citywide Broadband project, Loel Senior Center restroom and accessibility expansion project and the remaining funding will go towards revenue loss.

Labor Agreements
On June 30, 2022, the employment contract, Memorandum of Understanding (MOU), between the City of Lodi and the Lodi Police Dispatch Association (LPDA) expired. The City is currently in negotiations with LPDA and has reached a successor MOU. The following employment contracts expire December 31, 2022, and the City is currently in negotiations with Lodi City Mid-Management, AFSCME, Lodi Professional Firefighters on a successor MOU. This will have an impact on the next fiscal year’s budgets for the increase in salary and benefit costs.

CAISO Unsecured Credit
The Northern California Power Agency (NCPA) transacts in the California Independent System Operator (CAISO) markets and serves as the Scheduling Coordinator (SC) for Lodi Electric Utility. As such, Lodi through NCPA is required to post sufficient credit with the CAISO to secure its Estimated Aggregate Liability (EAL) required under CAISO’s tariffs and protocols. As a member of NCPA (operating as a Joint Power Agency), Lodi is assigned $1 million of CAISO unsecured credit by default, which contributes towards Lodi’s EAL collateral requirements. However, due to rising energy and transmission costs in Fiscal Year 2022, Lodi received notice from NCPA that Lodi was required to further supplement its collateral deposit with the CAISO (based on Lodi’s increased EAL requirements). Lodi’s options for satisfying the additional collateral requirements were 1) Lodi could submit a request to the CAISO for additional CAISO unsecured credit, and upon CAISO granting such additional unsecured credit to Lodi, all or a portion of that unsecured credit could then be assigned to NCPA, or 2) Lodi could provide cash or a letter or credit to be posted with the CAISO on behalf of NCPA. On June 27, 2022, Lodi submitted an application for Unsecured Credit to the CAISO requesting additional CAISO unsecured credit. On July 12, 2022, in response to Lodi’s request the CAISO assigned approximately $9 million of additional unsecured credit to Lodi.

Lodi in turn executed a Guaranty with the CAISO, for the benefit of NCPA, to assign $3 million of Lodi’s unsecured credit on July 18, 2022 to NCPA to satisfy Lodi’s current EAL credit requirements.

94 Required
Supplementary
Information
(Unaudited)
95 (This page intentionally left blank.)
96 Measurement Period 2020-21 2019-20 2018-19 2017-18
Total Pension Liability
Service Cost 3,122,428$ 3,061,982$ 2,951,947$ 3,020,122$ Interest 14,741,817 14,272,357 13,863,223 13,374,883 Changes of Benefit Terms - - - 47,853 Differences Between Expected and Actual Experience 699,175 (261,709) 621,792 830,292 Changes of Assumptions - - - (950,894) Benefit Payments, Including Refunds of Employee Contributions (11,713,899) (11,281,823) (10,490,850) (9,814,728) Net Change in Total Pension Liability 6,849,521 5,790,807 6,946,112 6,507,528 Total Pension Liability - Beginning 209,775,815 203,985,008 197,038,896 190,531,368 Total Pension Liability - Ending (a) 216,625,336 209,775,815 203,985,008 197,038,896 Plan Fiduciary Net Position
Contributions - Employer 7,699,946 5,480,277 5,002,406 4,208,873 Contributions - Employee 2,129,311 1,743,741 1,372,046 1,364,684 Net Investment Income 33,076,897 7,191,594 9,071,083 11,191,848 Benefit Payments, Including Refunds of Employee Contributions (11,713,899) (11,281,823) (10,490,850) (9,814,728) Other Changes in Fiduciary Net Position - - - (206,493) Other Miscellaneous Income/(Expense) (1)
(146,291) (202,321) (98,627) (391,520) Net Change in Fiduciary Net Position 31,045,964 2,931,468 4,856,058 6,352,664 Plan Fiduciary Net Position - Beginning (2)
146,446,488 143,515,020 138,658,962 132,306,298 Plan Fiduciary Net Position - Ending (b) 177,492,452 146,446,488 143,515,020 138,658,962 Plan Net Pension Liability - Ending (a) - (b) 39,132,884$ 63,329,327$ 60,469,988$ 58,379,934$ Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 81.94% 69.81% 70.36% 70.37%
Covered Payroll (3)
19,662,644$ 19,355,131$ 18,257,959$ 18,995,671$ Plan Net Pension Liability as a Percentage of
Covered Payroll 199.02% 327.20% 331.20% 307.33%
Notes to Schedule:
(2) Includes ny beginning of year adjustment.

Information in this schedule is presented only for period after GASB 68 implementation. Additional years will be added to this schedule until 10 years of data is presented.

MISCELLANEOUS PLAN
(1) During Fiscal Year 2017-18, as a result of Governmental Accounting Standards Board Statement (GASB) No. 75, Accounting and Financial Reporting for Postemployment Benefit Plans Other than Pensions (GASB 75), CalPERS reported its proportionate share of activity related to postemployment benefits in the State of California's agent OPEB plan. Accordingly, CalPERS recorded a one-time expense as a result of the adoption of GASB 75.

Additionally, CalPERS employees participate in various State of California agent pension plans and during Fiscal Year 2017-18, CalPERS recorded a correction to previously reported financial statements to properly reflect its proportionate share of activity related to pensions in accordance with GASB Statement No. 68, Accounting and Financial Reporting for Pensions (GASB 68).
(3) Includes one year's payroll growth using 2.75 percent payroll growth assumption for fiscal years ended June 30, 2018-20; 3.00 percent payroll growth assumption for fiscal years ended June 30, 2014-17.

CITY OF LODI

REQUIRED SUPPLEMENTARY INFORMATION

SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS 97 Measurement Period 2016-17 2015-16 2014-15 2013-14
Total Pension Liability
Service Cost 2,862,495$ 2,464,894$ 2,358,112$ 2,478,901$ Interest 12,923,048 12,565,553 12,061,399 11,705,179 Changes of Benefit Terms - - - - Differences Between Expected and Actual Experience (398,276) 542,177 (1,655,012) - Changes of Assumptions 10,541,016 - (2,903,507) - Benefit Payments, Including Refunds of Employee Contributions (9,129,724) (8,641,550) (8,208,103) (7,729,680) Net Change in Total Pension Liability 16,798,559 6,931,074 1,652,889 6,454,400 Total Pension Liability - Beginning 173,732,809 166,801,735 165,148,846 158,694,446 Total Pension Liability - Ending (a) 190,531,368 173,732,809 166,801,735 165,148,846 Plan Fiduciary Net Position
Contributions - Employer 3,950,727 3,500,179 2,994,958 2,694,850 Contributions - Employee 1,341,146 1,241,136 1,183,452 1,237,916 Net Investment Income 13,581,013 643,509 2,829,910 19,249,151 Benefit Payments, Including Refunds of Employee Contributions (9,129,724) (8,641,550) (8,208,103) (7,729,680) Other Changes in Fiduciary Net Position (181,224) (76,838) (145,538) - Other Miscellaneous Income/(Expense) (1)
- - - - Net Change in Fiduciary Net Position 9,561,938 (3,333,564) (1,345,321) 15,452,237 Plan Fiduciary Net Position - Beginning (2)
122,744,360 126,077,924 127,423,245 111,971,008 Plan Fiduciary Net Position - Ending (b) 132,306,298 122,744,360 126,077,924 127,423,245 Plan Net Pension Liability - Ending (a) - (b) 58,225,070$ 50,988,449$ 40,723,811$ 37,725,601$ Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 69.44% 70.65% 75.59% 77.16%
Covered Payroll (3)
17,970,339$ 17,423,446$ 16,572,579$ 16,669,363$ Plan Net Pension Liability as a Percentage of
Covered Payroll 324.01% 292.64% 245.73% 226.32%
Notes to Schedule:
(2) Includes ny beginning of year adjustment.

Information in this schedule is presented only for period after GASB 68 implementation. Additional years will be added to this schedule until 10 years of data is presented.

MISCELLANEOUS PLAN (Continued)
(1) During Fiscal Year 2017-18, as a result of Governmental Accounting Standards Board Statement (GASB) No. 75, Accounting and Financial Reporting for Postemployment Benefit Plans Other than Pensions (GASB 75), CalPERS reported its proportionate share of activity related to postemployment benefits in the State of California's agent OPEB plan. Accordingly, CalPERS recorded a one-time expense as a result of the adoption of GASB 75.

Additionally, CalPERS employees participate in various State of California agent pension plans and during Fiscal Year 2017-18, CalPERS recorded a correction to previously reported financial statements to properly reflect its proportionate share of activity related to pensions in accordance with GASB Statement No. 68, Accounting and Financial Reporting for Pensions (GASB 68). (3) Includes one year's payroll growth using 2.75 percent payroll growth assumption for fiscal years ended June 30, 2018-20; 3.00 percent payroll growth assumption for fiscal years ended June 30, 2014-17.

CITY OF LODI

REQUIRED SUPPLEMENTARY INFORMATION

SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS 98 Measurement Period 2020-21 2019-20 2018-19 2017-18
Total Pension Liability
Service Cost 3,530,630$ 3,251,866$ 3,005,853$ 3,385,583$ Interest 14,951,257 14,313,890 13,882,332 13,288,494 Differences Between Expected and Actual Experience 2,342,238 (329,854) 1,853,213 (122,816) Changes of Assumptions - - - (681,450) Benefit Payments, Including Refunds of Employee Contributions (11,326,169) (10,940,141) (10,350,986) (9,712,985) Net Change in Total Pension Liability 9,497,956 6,295,761 8,390,412 6,156,826 Total Pension Liability - Beginning 210,664,024 204,368,263 195,977,851 189,821,025 Total Pension Liability - Ending (a) 220,161,980 210,664,024 204,368,263 195,977,851 Plan Fiduciary Net Position
Contributions - Employer 9,831,931 6,927,425 6,462,421 5,549,746 Contributions - Employee 2,238,261 1,835,228 1,173,690 1,079,094 Net Investment Income 29,108,868 6,175,068 7,740,905 9,544,033 Benefit Payments, Including Refunds of Employee Contributions (11,326,169) (10,940,141) (10,350,986) (9,712,985) Other Changes in Fiduciary Net Position - - - (174,988) Other Miscellaneous Income/(Expense) (1) (126,704) (173,420) (83,983) (331,781) Net Change in Fiduciary Net Position 29,726,187 3,824,160 4,942,047 5,953,119 Plan Fiduciary Net Position - Beginning (2) 126,838,141 123,013,981 118,071,934 112,118,815 Plan Fiduciary Net Position - Ending (b) 156,564,328 126,838,141 123,013,981 118,071,934 Plan Net Pension Liability - Ending (a) - (b) 63,597,652$ 83,825,883$ 81,354,282$ 77,905,917$ Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 71.11% 60.21% 60.19% 60.25%
Covered Payroll (3) 13,061,895$ 11,816,374$ 10,779,847$ 11,518,923$ Plan Net Pension Liability as a Percentage of
Covered Payroll 486.89% 709.40% 754.69% 676.33%
Notes to Schedule:
(2) Includes any beginning of year adjustment.
(3) Includes one year's payroll growth using 2.75 percent payroll growth assumption for fiscal years ended June 30, 2018-20; 3.00 percent payroll growth assumption for fiscal years ended June 30, 2014-17.
(1) During Fiscal Year 2017-18, as a result of Governmental Accounting Standards Board Statement (GASB) No. 75, Accounting and Financial Reporting for Postemployment Benefit Plans Other than Pensions (GASB 75), CalPERS reported its proportionate share of activity related to postemployment benefits in the State of California's agent OPEB plan.

Accordingly, CalPERS recorded a one-time expense as a result of the adoption of GASB 75.

Information in this schedule is presented only for period after GASB 68 implementation. Additional years will be added to this schedule until 10 years of data is presented.

CITY OF LODI

REQUIRED SUPPLEMENTARY INFORMATION

SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS

SAFETY PLAN
99 Measurement Period 2016-17 2015-16 2014-15 2013-14
Total Pension Liability
Service Cost 3,336,917$ 2,890,607$ 2,968,819$ 3,048,048$ Interest 12,869,943 12,357,788 11,827,918 11,390,793 Differences Between Expected and Actual Experience 1,123,761 600,847 (932,918) - Changes of Assumptions 10,945,791 - (2,939,033) - Benefit Payments, Including Refunds of Employee Contributions (9,433,148) (8,730,081) (8,134,067) (7,448,361) Net Change in Total Pension Liability 18,843,264 7,119,161 2,790,719 6,990,480 Total Pension Liability - Beginning 170,977,761 163,858,600 161,067,881 154,077,401 Total Pension Liability - Ending (a) 189,821,025 170,977,761 163,858,600 161,067,881 Plan Fiduciary Net Position
Contributions - Employer 5,220,306 4,660,278 4,176,197 4,106,044 Contributions - Employee 1,095,689 1,062,984 1,007,876 1,058,376 Net Investment Income 11,443,777 558,434 2,397,191 16,070,261 Benefit Payments, Including Refunds of Employee Contributions (9,433,148) (8,730,081) (8,134,067) (7,448,361) Other Changes in Fiduciary Net Position (153,469) (64,882) (119,971) - Other Miscellaneous Income/(Expense) (1) - - - - Net Change in Fiduciary Net Position 8,173,155 (2,513,267) (672,774) 13,786,320 Plan Fiduciary Net Position - Beginning (2) 103,945,660 106,458,927 107,131,701 93,345,381 Plan Fiduciary Net Position - Ending (b) 112,118,815 103,945,660 106,458,927 107,131,701 Plan Net Pension Liability - Ending (a) - (b) 77,702,210$ 67,032,101$ 57,399,673$ 53,936,180$ Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 59.07% 60.79% 64.97% 66.51%
Covered Payroll (3) 11,518,923$ 11,106,615$ 11,293,867$ 11,194,123$ Plan Net Pension Liability as a Percentage of
Covered Payroll 674.56% 603.53% 508.24% 481.83%
Notes to Schedule:
(2) Includes any beginning of year adjustment.

Information in this schedule is presented only for period after GASB 68 implementation. Additional years will be added to this schedule until 10 years of data is presented.
(3) Includes one year's payroll growth using 2.75 percent payroll growth assumption for fiscal years ended June 30, 2018-20; 3.00 percent payroll growth assumption for fiscal years ended June 30, 2014-17.
(1) During Fiscal Year 2017-18, as a result of Governmental Accounting Standards Board Statement (GASB) No. 75, Accounting and Financial Reporting for Postemployment Benefit Plans Other than Pensions (GASB 75), CalPERS reported its proportionate share of activity related to postemployment benefits in the State of California's agent OPEB plan. Accordingly, CalPERS recorded a one-time expense as a result of the adoption of GASB 75.

SAFETY PLAN (Continued)

SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS

REQUIRED SUPPLEMENTARY INFORMATION

CITY OF LODI
100
Miscellaneous Plan: 2021-22 (1) 2020-21 (1) 2019-20 (1) 2018-19 (1) Actuarially Determined Contributions 5,736,690$ 5,323,688$ 4,879,985$ 4,907,206$ Contributions in Relation to the Actuarially Determined Contributions (2) (7,699,946) (9,611,114) (5,496,434) (5,002,406) Contribution Deficiency (Excess) (1,963,256)$ (4,287,426)$ (616,449)$ (95,200)$ Covered Payroll (3, 4)
19,662,644$ 19,355,131$ 18,257,959$ 18,995,671$ Contributions as a Percentage of Covered Payroll

39.16% 49.66% 30.10% 25.83%
Safety Plan:

Actuarially Determined Contributions 7,189,903$ 6,739,342$ 6,311,400$ 6,195,073$ Contributions in Relation to the Actuarially Determined Contributions (2) (9,831,931) (7,955,910) (6,847,548) (6,462,421) Contribution Deficiency (Excess) (2,642,028)$ (1,216,568)$ (536,148)$ (267,348)$ Covered Payroll (3, 4)
13,061,895$ 11,816,374$ 10,779,847$ 11,886,327$ Contributions as a Percentage of Covered Payroll

75.27% 67.33% 63.52% 52.12%
Notes to Schedule:
(1) Historical information is presented only for measurement periods for which GASB 68 is implemented. (2) Employers are assumed to make contributions equal to the actuarially determined contributions. However, some employers may choose to make additional contributions towards their unfunded liability. Employer contributions for such plans exceed the actuarially determined contributions.
(3) Covered-Employee Payroll represented above is based on pensionable earnings provided by the employer. However, GASB 68 defines covered-employee payroll as the total payroll of employees that are provided pensions through the pension plan. Accordingly, if pensionable earnings aredifferent than total earnings for covered-employers, the employer should display in the disclosure footnotes the payroll based on total earnings for the covered group and recalculate the required payroll-related ratios.

Actuarial Cost Method Entry Age Normal
Amortization Method/Period For details, see June 30, 2018 Funding Valuation Report.

Asset Valuation Method Market value of assets.

Inflation 2.5%
Salary Increases Varies by Entry Age and Service
Payroll Growth 2.75%
Investment Rate of Return 7.00% Net of Pension Plan Investment and Administrative Expenses; includes Inflation.

Retirement Age
Mortality

CITY OF LODI

SCHEDULE OF PENSION CONTRIBUTIONS

REQUIRED SUPPLEMENTARY INFORMATION
The probabilities of Retirement are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015.

The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. Pre- retirement and Post-retirement mortality rates include 15 years of projected on-going mortality improvement using 90% of Scale MP-2016 published by the Society of Actuaries.

Other information: For changes in previous years' information, refer to past GASB 68 reports. (4) Payroll from June 30, 2018-20 for miscellaneous was assumed to increase by 2.75 percent payroll growth assumption. 3.00 percent payroll growth assumption for fiscal years ended June 30, 2014-17.
101
Miscellaneous Plan: 2017-18 (1) 2016-17 (1) 2015-16 (1) 2014-15 (1) 2013-14 (1) Actuarially Determined Contributions 4,208,873$ 3,880,495$ 3,500,179$ 2,994,958$ 2,694,850$ Contributions in Relation to the Actuarially Determined Contributions (2) (4,208,873) (3,880,495) (3,500,179) (2,994,958) (2,694,850) Contribution Deficiency (Excess) -$ -$ -$ -$ -$ Covered Payroll (3, 4)
17,970,339$ 17,802,886$ 17,423,446$ 16,572,579$ 16,669,363$ Contributions as a Percentage of Covered Payroll

23.42% 21.80% 20.09% 18.07% 16.17%
Safety Plan:

Actuarially Determined Contributions 5,549,746$ 5,136,610$ 4,660,278$ 4,176,197$ 4,106,044$ Contributions in Relation to the Actuarially Determined Contributions (2) (5,549,746) (5,136,610) (4,660,278) (4,176,197) (4,106,044) Contribution Deficiency (Excess) -$ -$ -$ -$ -$ Covered Payroll (3, 4)
11,518,923$ 11,477,432$ 11,106,615$ 11,293,867$ 11,194,123$ Contributions as a Percentage of Covered Payroll

48.18% 44.75% 41.96% 36.98% 36.68%
Notes to Schedule:
(1) Historical information is presented only for measurement periods for which GASB 68 is implemented. (2) Employers are assumed to make contributions equal to the actuarially determined contributions. However, some employers may choose to make additional contributions towards their unfunded liability. Employer contributions for such plans exceed the actuarially determined contributions.
(3) Covered-Employee Payroll represented above is based on pensionable earnings provided by the employer. However, GASB 68 defines covered-employee payroll as the total payroll of employees that are provided pensions through the pension plan. Accordingly, if pensionable earnings aredifferent than total earnings for covered-employers, the employer should display in the disclosure footnotes the payroll based on total earnings for the covered group and recalculate the required payroll-related ratios.

Actuarial Cost Method Entry Age Normal
Amortization Method/Period For details, see June 30, 2018 Funding Valuation Report.

Asset Valuation Method Market value of assets.

Inflation 2.5%
Salary Increases Varies by Entry Age and Service
Payroll Growth 2.75%
Investment Rate of Return 7.00% Net of Pension Plan Investment and Administrative Expenses; includes Inflation.

Retirement Age
Mortality The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. Pre-retirement and Post-retirement mortality rates include 15 years of projected on-going mortality improvement using 90% of Scale MP-2016 published by the Society of Actuaries.

Other information: For changes in previous years' information, refer to past GASB 68 reports.

CITY OF LODI

REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF PENSION CONTRIBUTIONS (Continued)
(4) Payroll from June 30, 2018-20 for miscellaneous was assumed to increase by 2.75 percent payroll growth assumption. 3.00 percent payroll growth assumption for fiscal years ended June 30, 2014-

17. The probabilities of Retirement are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. 102
Measurement period, year ending: 6/30/2021 (1) 6/30/2020 (1) 6/30/2019 (1) 6/30/2018 (1) 6/30/2017 (1) Total OPEB liability
Service cost 745,536$ 757,587$ 1,092,362$ 1,042,935$ 1,139,099$ Interest 932,315 875,524 1,269,594 1,240,787 1,073,783 Differences between expected and actual experience (2,659,765) (28,866) (5,914,145) - - Changes of assumptions 614,806 (958,836) (1,584,690) (209,408) (2,518,711) Benefit payments, including refunds of member contributions (1,836,904) (1,772,822) (1,940,352) (1,862,969) (1,947,260) Net change in total OPEB liability (2,204,012) (1,127,413) (7,077,231) 211,345 (2,253,089) Total OPEB liability - beginning 26,361,543 27,488,956 34,566,187 34,354,842 36,607,931 Total OPEB liability - ending (a) 24,157,531$ 26,361,543$ 27,488,956$ 34,566,187$ 34,354,842$ OPEB fiduciary net position
Contributions - employer 1,836,904$ 2,470,847$ 1,940,352$ 1,862,969$ 2,947,260$ Net investment income 393,880 81,556 80,425 66,683 79,789 Benefit payments, including refunds of member contributions (1,836,904) (1,772,822) (1,940,352) (1,862,969) (1,947,260) Administrative expense (730) (815) (246) (1,997) (309) Net change in plan fiduciary net position 393,150 778,766 80,179 64,686 1,079,480 Plan fiduciary net position - beginning 2,003,111 1,224,345 1,144,166 1,079,480 - Plan fiduciary net position - ending (b) 2,396,261$ 2,003,111$ 1,224,345$ 1,144,166$ 1,079,480$ Plan net OPEB liability - ending (a) - (b) 21,761,270$ 24,358,432$ 26,264,611$ 33,422,021$ 33,275,362$ Plan fiduciary net position as a percentage of the total OPEB liability 9.92% 7.60% 4.45% 3.31% 3.14% Covered-employee payroll 36,431,628$ 34,262,678$ 32,883,009$ 33,204,023$ 35,314,645$ Plan net OPEB liability as a percentage of covered-employee payroll 59.73% 71.09% 79.87% 100.66% 94.23% Notes to Schedule:

CITY OF LODI

REQUIRED SUPPLEMENTARY INFORMATION

SCHEDULE OF CHANGES IN NET OPEB LIABILITY AND RELATED RATIOS Last Ten Fiscal Years (1)
For the Year Ended June 30, 2022
(1) Information in this schedule is presented only for periods after GASB 75 implementation. Additional years will be added to this schedule until 10 years of data is presented
103
2022 2021
Contributions in Relation to the
Actuarially Determined Contribution (1,826,983) (1,885,306) Contribution Deficiency (Excess) (1,826,983)$ (1,885,306)$ Covered-employee payroll 36,431,628 34,262,678 Contributions as a percentage of
covered-employee payroll 59.7% 79.9%
Actuarially determined contribution
for fiscal year June 30, 2022 June 30, 2021
Valuation date: June 30, 2021 June 30, 2019
Actuarial cost method Entry Age Normal Cost Method Entry Age Normal Cost Method Asset valuation method Straight line 5 year period Straight line 5 year period Discount rate 3.22% 3.56%
Inflation 2.25% 2.50%
Payroll increases
Mortality Pub-2010 General and Safety above Based on assumptions for PERS, median income Employee and Retiree Police & Fire members mortality tables projected with June 30, 2016 CalPERS actuarial generational mortality valuation
improvement using 80% of scale MP-2020.

Notes to Schedule:
(1) Information in this schedule is presented only for period after GASB 75 implementation.

Additional years will be added to this schedule until 10 years of data is presented The City does not currently calculate an ADC.

CITY OF LODI

REQUIRED SUPPLEMENTARY INFORMATION

SCHEDULE OF EMPLOYER OPEB CONTRIBUTIONS
Last Ten Fiscal Years (1)
For the Year Ended June 30, 2022
104
2020 2019 2018 2017
(2,046,385) (1,940,352) (1,862,949) (2,947,260) (2,046,385)$ (1,940,352)$ (1,862,949)$ (2,947,260)$ 32,883,009 33,204,023 34,286,063 34,286,063

79.9% 100.7% 97.1% 97.1%
June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2019 June 30, 2017 June 30, 2017 June 30, 2017 Entry Age Normal Cost Method Entry Age Normal Cost Method Entry Age Normal Cost Method Entry Age Normal Cost Method Straight line 5 year period Straight line 5 year period Straight line 5 year period Straight line 5 year period

3.56% 3.66% 3.60% 3.60%

2.50% 2.75% 2.75% 2.75%
Based on assumptions for PERS, Based on assumptions for PERS, Based on assumptions for PERS, Based on assumptions for PERS, Police & Fire members Police & Fire members Police & Fire members Police & Fire members June 30, 2016 CalPERS actuarial June 30, 2016 CalPERS actuarial June 30, 2016 CalPERS actuarial June 30, 2016 CalPERS actuarial valuation valuation valuation valuation
Notes to Schedule:
(1) Information in this schedule is presented only for period after GASB 75 implementation.

Additional years will be added to this schedule until 10 years of data is presented The City does not currently calculate an ADC.

CITY OF LODI

REQUIRED SUPPLEMENTARY INFORMATION

SCHEDULE OF EMPLOYER OPEB CONTRIBUTIONS
Last Ten Fiscal Years (1)
For the Year Ended June 30, 2022 (Continued)
105
Variance with
Original Final Actual Final Budget

REVENUES
Taxes 32,652,850 $ 32,652,850$ 34,483,025$ 1,830,175$ Sales and use tax 21,775,960 24,305,720 26,247,772 1,942,052 Licenses and permits 63,500 60,500 62,077 1,577 Intergovernmental revenues 1,326,050 18,290,123 9,172,086 (9,118,037) Charges for services 1,915,860 1,948,860 2,369,097 420,237 Fines, forfeits, and penalties 868,100 843,100 303,921 (539,179) Investment and rental income 1,785,050 1,785,050 (303,334) (2,088,384) Miscellaneous revenue 287,260 287,260 320,093 32,833 Total re
venues 60,674,630 80,173,463 72,654,737 (7,518,726)

EXPENDITURES
Current:

City Manager 1,338,780 1,808,780 1,277,837 530,943 City Clerk 704,500 704,500 667,702 36,798 City Attorney 706,690 706,690 591,419 115,271 Internal Services Admin 253,220 255,720 253,360 2,360 Human Resources 748,410 748,410 704,692 43,718 Information Systems 1,816,720 1,933,222 1,680,672 252,550 Financial Services 1,129,110 1,129,110 1,138,329 (9,219) Revenue Services 1,426,800 2,926,100 1,359,322 1,566,778 Budget
and Treasury 425,080 425,080 406,556 18,524 Non Departmental 3,702,250 12,849,449 5,117,408 7,732,041 Total general government 12,251,560 23,487,061 13,197,297 10,289,764 Public protection:

Police 27,157,950                   28,058,038                   25,409,787                   2,648,251 Fire 16,392,350                   16,810,274                   15,644,344                   1,165,930 Total public protection 43,550,300                   44,868,312                   41,054,131                   3,814,181 Public works 3,175,320                      3,204,200                      3,034,047                      170,153 Library 1,613,230                      1,618,230                      1,214,407                      403,823 Community Development ‐                                      539,741                         393,290                         146,451 Debt serv
ice
Interest ‐                                  ‐                                  76                                   (76) Principal retirement ‐                                  ‐                                  11,174                           (11,174) Total debt service ‐                                      ‐                                      11,250                           (11,250) Total expenditures 60,590,410                   73,717,544                   58,904,422                   14,813,122 EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 84,220                           6,455,919                      13,750,315                   7,294,396 OTHER FINANCING SOURCES (USES)
Transfers in 3,494,790                      3,494,790                      3,494,790                      ‐ Transfers out (19,004,760)                  (19,004,760)                  (19,004,760)                  ‐ Lease liability issued ‐                                      ‐                                      33,607 Gain on sale of pro
perty 1,000                             1,000                             ‐                                      (1,000) Total other financing sources (uses) (15,508,970)                  (15,508,970)                  (15,476,363)                  (1,000) Net changes in fund balance (15,424,750)                  (9,053,051)                    (1,726,048)                    7,293,396$ FUND BALANCES, BEGINNING OF YEAR 40,690,098                   40,690,098                   40,690,098 FUND BALANCES, END OF YEAR 25,265,348$                 31,637,047$                 38,964,050 Basis adjustment:

Lodi City CouncilDecember 7, 2022

Lodi City Council
December 7, 2022