An Informal Informational Meeting ("Shirtsleeve" Session) of the Lodi City Council was held Tuesday, May 7, 2002 commencing at 7:02 a.m.

Present: Council Members – Hitchcock (arrived at 7:08 a.m.), Howard, Land, Nakanishi, and Mayor Pennino

Absent: Council Members – None

Also Present: City Manager Flynn, City Attorney Hays, and City Clerk Blackston

City Clerk Blackston reviewed the weekly calendar (filed).

C-1 "Budget – Significant Changes and Capital"

City Manager Flynn reported that the City has been notified by the Public Employees Retirement System (PERS) that there will be a 25% increase in medical insurance costs. Workers Compensation is also expected to increase. The state may be taking away city revenues, e.g., the Vehicle License Fee. Three percent of the City’s Hotel/Motel Tax, AKA Transient Occupancy Tax (TOT), is also in question and equates to $100,000, which could negatively impact community promotion programs.

Finance Director McAthie reviewed the significant expenditure report (filed) and provided the following information:

• Page 5 – $20,000 funding for a part-time chaplain was discussed at the May 1, 2001 Shirtsleeve Session and recommended for approval in year two of the budget with encouragement that the Police Department pursue donations and fund raising for continued support of the program.
   

• Page 6 – Upgrade of the Animal Control Officer to Supervisor was discussed at the May 1, 2001 Shirtsleeve Session and recommended for approval in year two of the budget, pending the completion of a reclassification study.
   

• Page 7 – $184,000 funding for hiring three Firefighters was discussed at the May 1, 2001 Shirtsleeve Session and recommended for approval in year two of the budget.
   

• Page 9 – $7,000 increase in fire safety educational program funding was discussed at the May 1, 2001 Shirtsleeve Session and recommended for approval in year two of the budget.
   

• Page 10 – $3,300 additional request for the annual required certification tests and maintenance of equipment and aerial ladder for the newly purchased fire tiller truck. Approval of the request is recommended.
   

• Page 11 – $8,600 additional request for Fire Station #4 for janitorial supplies, landscape maintenance, laundry service, and small tools. Approval of the request is recommended.
   

• Page 12 – Paramedic service; City Manager Flynn recommends that this be deferred and the matter brought back to Council for further discussion and direction.
   

• Page 13 – Utilities Water/Wastewater; $180,000 additional request for chemical cost and laboratory testing that is mandated by the California Regional Water Quality Control Board. The City was informed after the 2001-03 budget was prepared that additional laboratory testing would be needed. Approval of the request is recommended.
   

• Page 14 – Electric Utility $55,615 request to hire a ground person apprentice lineman. This was discussed at the May 1, 2001 Shirtsleeve Session and recommended for approval in year two of the budget.
   

• Page 15 – $28,150 to lease an office trailer for three years and to purchase new furniture for the engineering division. Staff recommends that the request be denied and that Electric Utility utilize space from vacant positions pending the move into its new building.

City Manager Flynn added that this cost would be incorporated in the overall project cost in the capital budget, as opposed to an ongoing operating cost because it is a temporary relocation.

• Page 16 – Electric Utility request for an Electrical Technician. Four substations need periodic maintenance and in the next two years the Utility will be adding two more substations. Maintenance is two years behind due to staffing levels. Two Utility employees will be retiring in the next five years. This request included funds for the position, tools, and a truck in the capital budget. The Utility will fill vacant positions prior to proceeding with hiring an electrical technician, and consequently have asked that this request be pulled.
   

• Page 17 – Public Works request to convert a part-time Administrative Clerk to a full-time position with benefits. This was discussed at the May 1, 2001 Shirtsleeve Session and recommended for approval in year two of the budget.
   

• Page 18 – Public Works $35,000 funding request to hire a consultant to prepare a street trenching damage assessment study. This request was recommended for approval in year two of the budget.

In reply to Council inquiries, Public Works Director Prima stated that the goal of the study is to establish a fee to assess those who cut the street. The money collected will go back into the general fund for street maintenance. In order to stand up to potential legal challenges it is imperative that Lodi prepares the assessment study.

• Page 24 – Public Works $52,375 request to increase the landscape maintenance contract service to cover newly landscaped areas. This request was previously recommended for approval.
   

• Page 25 – $7,000 additional request from Engineering/Streets for a part-time technician assistance contractor for signal maintenance, inventory of signal equipment, and replacement plan. The technician would also monitor all 41 signalized intersections and provide time recommendations to improve the traffic flow and ease some of the congestion at signalized intersections. It is recommended that the request be deferred.
   

• Page 26 – $30,000 request for traffic signal supplies such as monitors, amplifiers, flashers, load switches, and battery tester. It is recommended that the request be deferred.
   

• Page 27 – $36,200 to fund traffic signal maintenance services. Since 1985, 14 signals have been installed and five more are planned in the next several years. Currently, 52.4% of an electrician’s time is budgeted for maintenance. A conservative ratio for Caltrans recommends 44 intersections to one electrician. Staff will evaluate the use of contracting with part-time electrical technicians, or use of City electricians and outsource other City duties. Approval of the request is recommended.

Mayor Pennino asked that more justification on this request be provided prior to approval of the budget in June.

• Page 28 – Recreation Administration request to convert a part-time Administrative Clerk to a full-time position. This was discussed at the May 8, 2001 Shirtsleeve Session and recommended for approval in year two of the budget.
   

• Page 29 – Parks and Recreation $10,810 request for funding to hire a part-time intern computer aided drafting (CAD) operator for construction drawings for park projects. This request was previously recommended for approval.

In response to Council Member Howard, Parks and Recreation Director Baltz explained that the intern CAD operator would work on smaller projects such as Hale Park, new bleachers at the Armory, and minor projects at Lodi Lake.

• Pages 30 and 31 are requests to convert part-time laborers in Park Maintenance and Sports Facilities to full-time. This was discussed at the May 8, 2001 Shirtsleeve Session and recommended for approval in year two of the budget.
   

• Page 32 – $6,000 additional request for the Grape Festival ground lease, which effective July 1, will increase from $14,000 to $20,000.
   

• Page 33 – $14,725 additional request for new Kinder Gym and Youth Kickball programs. The programs will be offset by revenue and staff recommends approval.

Council Member Howard suggested that Council consider increasing Parks and Recreation’s standard 30% cost recovery in anticipation of increased projects.

Council Member Nakanishi concurred.

Mayor Pennino recommended that this issue be considered during 2003-05 budget discussions, which will begin in March 2003. In addition he suggested that it be included as a topic for discussion at the upcoming Special Joint Meeting of the City Council and the Parks and Recreation Commission.

• Page 36 – $16,000 additional request for an Armory Building Site Supervisor. The renovation of the Armory Building will create an indoor gym, which will require the presence of a part-time site supervisor. Approval of the request is recommended.
   

• Page 37 – $13,900 additional request to hire one part-time lifeguard due to the extension created by the Lodi Lake Trail Project and for expanding programs to encourage water safety and education.

Mayor Pennino noted that he has inquired several times over the years about the possibility of combining lifeguard duties under one program.

Council Member Howard concurred and stated that the program and training should be run by one operation, rather than running two separate aquatics programs through Hutchins Street Square and the Parks and Recreation Department.

Parks and Recreation Director Baltz explained that his department and Hutchins Street Square serve different constituents and it has not been his observation that the aquatics programs suffer because they are split.

Council Member Howard reported that the public is sometimes confused as to which department to contact for aquatics programs. There have also been instances where programs have been postponed, delayed, or canceled due to miscommunication regarding authority. She reiterated that the aquatics programs should be operated and supervised by one entity.

Mayor Pennino requested that the topic be scheduled for a future Shirtsleeve Session.

Council Member Howard pointed out that one of the obstacles might be a struggle between who will get the revenue produced from the aquatics program. She felt that this should be set aside and focus placed on producing the best overall program.

Mayor Pro Tempore Hitchcock expressed her opinion that there should be one program for training lifeguards; however, she believed that authority should be placed at the location where activity is taking place. She favored a decentralized process, as less layers of government tends to be more effective.

Council Member Nakanishi concurred with Ms. Hitchcock’s comments and stated that the Department Heads know more about how the programs should be operated.

• Page 38 – $3,600 for softball supplies. Teams in adult sports softball programs have requested that the City return to the policy of providing game balls for the adult league play. The funding increase would be offset by revenues. Approval of the request is recommended.
   

• Page 39 – $14,000 additional request to fund a new format for the Parks and Recreation tabloid. Approval of the request is recommended.

In reply to Council Member Land, Parks and Recreation Director Baltz explained that the department would like to change the format to a small magazine size, upgrade the quality, have graphics ability, and a longer shelf life.

Mayor Pennino recommended that the tabloid be linked to the City’s Web site.

• Pages 40 and 41 – Funding for extended hours of operation of the Library and to hire a part-time reference librarian. These requests were discussed at the May 8, 2001 Shirtsleeve Session and recommended for approval.
   

• Page 42 – Additional request for full-time clerical assistant to provide assistance to library administration. In August 2000 a part-time Administrative Clerk was hired. The workload increased and it is recommended the contract for this position be converted to full-time status.
   

• Page 43 – Request to provide prorated benefits for regular part-time library staff. Benefits would include PERS, medical, prorated dental and vision, and prorated vacation, sick, and holiday leave.

City Manager Flynn explained that the Director of Library Services has limited part-time employees to 17 hours per week; however, she desires the flexibility to increase the hours up to 30 hours a week. For some employees this may eventually amount to over 1,000 hours a year, and under the current City policy, it would qualify them for PERS benefits.

• Page 44 – $24,840 request to create a full-time Arts Program Assistant position to replace the current part-time position. The Arts Commission has expanded the number of classes offered to the community. This position would manage the marketing, creation of new classes, productions offered for the School District, and after school programs. Approval of the request is recommended.

In response to Council Member Land, Community Center Director Lange pointed out that the revenue created by the addition of new classes would offset the cost for the full-time position.

• Page 51 – $3,000 increased funding toward 4^th of July fireworks show. Approval of the request is recommended.
   

• Page 52 – 10% reduction in current funding levels for the following Community Promotions: Lodi Conference and Visitors Bureau, Chamber of Commerce, and Downtown Lodi Business Partnership (DLBP).

City Manager Flynn explained that this is a "placeholder" in the event that the City’s TOT tax does not remain at its current level. Staff sees a linkage between this tax and community promotions.

Council Member Land was opposed to the reduction and believed that a more appropriate time to consider it would be the next budget cycle, should the TOT be reduced. He stated that each of the community promotions organizations has been doing an outstanding job and did not want to hinder their progress with a premature reduction in funding.

Mayor Pennino and Council Member Nakanishi concurred with Mr. Land’s remarks. Mayor Pro Tempore Hitchcock was also opposed to the recommendation and added that such reductions should not be made in an arbitrary manner. Each of the community promotions organizations should be evaluated on their own individual merits every two years.

Referencing page 53, Mr. Flynn pointed out that even with a 10% reduction, the City makes significant contributions to its business community.

PUBLIC COMMENTS:

• Peter Westbrook, President of the DLBP, supported a linkage between his organization and the TOT.
   

• Mark Chandler, Executive Director of the Lodi-Woodbridge Winegrape Commission, expressed appreciation for the City’s support of the Lodi Conference and Visitors Bureau.
   

• Pat Patrick, Chief Executive Officer (CEO) of the Lodi Chamber of Commerce, stated that he polled the Chamber Board and members who contribute to the TOT and found that they would all support an increase in the tax as long as the additional funds would be put back into promoting the community.

Mayor Pennino asked the City Clerk to research 1994-95 City Council minutes for discussion related to designating a percentage of the TOT to promoting tourism.

Mr. Flynn reported that a letter was received from the Lodi-Woodbridge Winegrape Commission and the Chamber of Commerce recommending that the City place on the ballot a measure to increase the TOT to 10%. This matter will be brought back to Council.

Mayor Pennino recommended that the request for a 10% reduction in current funding levels for Community Promotions be removed from the budget.

• Page 54 – Engineering request to hire a Civil Engineer to augment development services and traffic engineering staff. This request was discussed at the May 15, 2001 Shirtsleeve Session and recommended to fund the position net of savings.
   

• Page 55 – $50,000 additional request to continue current professional services with Harris & Associates to provide plan check services for residential subdivisions. The volume of development projects has remained high and become increasingly more complex. Several residential subdivision projects have improved tentative maps, but have not submitted the public improvement plans. The recent development impact mitigation fee update mandates that these projects have their final maps approved by Council prior to January 2003 if they are to remain under the old impact fee schedule. It is anticipated that all of the residential projects not currently subject to the new impact fees will be submitted for plan check within the next few months. Approval of the request is recommended, which will be offset by revenue.
   

• Page 56 – $19,500 request for professional services to assist staff in the redesign of the Mapguide Web site and purchase the software upgrade. Approval of the request is recommended.
   

• Page 57 – $1,500 request to fund the annual financial audit of the Lodi Boys and Girls Club. The City has significant resources invested in the support of the Lodi Boys and Girls Club and feels it is in the best interest of the City to commit resources to support management of these investments. Approval of the request is recommended.

City Manager Flynn recalled that when the Boys and Girls Club was initially established the Council agreed that the City would audit its books to ensure it is financially viable, because it operates on the City’s property.

Mayor Pennino was not in favor of the recommendation, as he felt it was the responsibility of the Boys and Girls Club.

Janet Keeter, Chairperson of the Boys and Girls Club Board of Directors, stated that the club must annually prepare an audit for the National organization and for grant purposes. She believed that $1,500 would cover only part of the cost for an audit.

Council Member Land was also opposed to the recommendation and noted that doing so may open it up to other organizations making the same request.

In response to Council Member Howard’s concern about getting access to audit if the Boys and Girls Club prepared it themselves, Mr. Flynn stated that he would have to review the lease agreement.

Council Member Nakanishi supported the recommendation.

NOTE: Mayor Pro Tempore Hitchcock stated that she was not in favor of the Human Resource Department request of $4,500 for body mechanics training, and left the meeting at 8:22 a.m.

• Page 58 – Information Systems Division request for one full-time Network Technician to support critical systems in the Police Department and elsewhere in the City. The Police Department has access to grant funds to offset the cost for the first year of the position and the general fund would assume the cost in subsequent years. Approval of the request is recommended.
   

• Page 59 – City Clerk’s Office request to hire an Administrative Clerk (confidential) that would be funded net of part-time savings. This was discussed at the May 15, 2001 Shirtsleeve Session and recommended for approval in year two of the budget.
   

• Page 62 – $7,400 request for Fortis Software Upgrade/Support contract renewal. This request was previously recommended for approval.
   

• Page 64 – $2,000 request for anticipated tuition reimbursement expenses. Approval of the request is recommended.
   

• Page 65 – $3,250 request for annual membership dues for the United States Conference of Mayors. These funds were previously paid from an Administration Account and it was subsequently deemed more appropriate to be funded from the City Council Account.

Mayor Pennino noted that funds are available in the Protocol Account and recommended that a one-time expenditure be made for the dues payment.

• Page 66 – $4,500 request for body mechanics training. This was discussed at the May 15, 2001 Shirtsleeve Session and recommended for approval with direction to utilize expertise from Lodi Memorial Hospital for its prevention and education programs.

City Manager Flynn explained that the purpose of this request is to reduce Workers Compensation claims.

Council Member Howard expressed support for the training to be offered on a selective basis, rather than mandatory for all employees.

• Pages 68 and 69 – Finance Department request to convert one part-time Account Clerk to full-time and for Customer Service Representative staff. These requests were discussed at the May 15, 2001 Shirtsleeve Session and recommended for approval in year two of the budget.
   

• Page 70 – Finance Department request to hire an Accountant I due to GASB 34, redevelopment agency requirements, and the increase in grants. This request was discussed at the May 15, 2001 Shirtsleeve Session and recommended for approval in year two of the budget.
   

• Page 72 – Finance Department request to convert contract Parking Enforcement Officer to an authorized position. It is recommended that the request be deferred until the next two-year budget to allow time to evaluate the impact of the new parking structure on the downtown area.
   

• Page 73 – Finance Department request to purchase a lobby security camera. Due to pending relocation of the Finance Department, it is recommended that the request be deferred.

Council Member Howard suggested that Police Partners be utilized as a security presence.

• Page 75 – $5,610 request for maintenance of the new All Veterans Memorial Mall to cover the cost of natural gas, electricity, pool cleaning service, and chemical filters. Approval of the request is recommended.

None.

No action was taken by the City Council. The meeting was adjourned at 8:35 a.m.

ATTEST:

Susan J. Blackston
City Clerk