Mr. Prima stated that an earlier suggestion to house the Finance Department in mobile offices in the Civic Center campus would impact the Veterans Plaza area and make the parking situation worse. He acknowledged that the 6,000 square feet of lease space in the new police building would accommodate the Finance Department; however, Mr. Prima indicated that a commitment had already been made to the County.

Council Member Land preferred that the 7,400 square feet of space at the north end of the parking structure be left open for lease.

Mayor Pro Tempore Hitchcock stated that the simplest thing to do would be to move Finance to a portable setting until the new police building is complete and old public safety building is remodeled.

Mr. Prima explained that the amount of room required to house the Finance Department in trailers would occupy all of the space behind the Carnegie Forum or take up an entire parking lot on the Civic Center campus. In addition the lease payments for trailers over a three- or four-year period would be as high as purchasing them and the cost for decking and utilities would be significant.

Council Member Nakanishi believed that the retail office space at the parking structure would be a good long-term location for the Finance Department due to the inexpensive cost to the City, ease of access, and availability of parking.

Mayor Pennino advocated the permanent location of the Finance Department on the first floor of City Hall.

In reference to scenario six, Mr. Prima stated that based on testing that has been done to date, staff believes that modifications to the HVAC system, as well as attic, air ducts, and office cleaning, can deal with the issues adequately. He estimated the cost at $10,000.

City Attorney Hays explained that Proposition 65 has a low threshold reporting requirement, whereas the Occupational Safety and Health Administration has a high industrial standard. The California Department of Toxic Substances Control is trying to arrive at some standard that is between the two. He anticipated that a decision would be made in the next three months.

City Manager Flynn commented that the least expensive alternative is to clean areas of the annex building and not relocate departments. The second least costly alternative would be to switch locations of the Finance Department with Public Works Administration and Community Development; however, he noted that there have been requests by some employees that the City have environmental studies done on the City Hall building as well.

Council Member Howard stated that it is not good planning to locate departments in the annex building due to the instability of a month to month lease.

Mayor Pro Tempore Hitchcock stated that if there are health issues caused by the environmental conditions in the annex then it should not be considered as an adequate location for any departments to work in. If cleaning it is a solution, then it should have already been done. If the Finance Department must relocate, the retail office space at the parking structure is a good location due to its accessibility and ease of parking. She did not see the necessity for moving other departments until the new police station is completed and the old public safety building is remodeled. If the 6,000 square feet of lease space at the new police building is needed for City departments, it should be used for that purpose rather than leasing it to the County.

Mayor Pennino concurred that the lease space in the new police building should be used for City departments if needed.

Mr. Prima reviewed the Cost Summary (filed).

Mayor Pro Tempore Hitchcock commented that she had initially thought today’s Shirtsleeve Session would be on the topic of the General Fund and revenue concerns.

City Manager Flynn replied that discussion about the General Fund is tentatively scheduled for next Tuesday. Due to changes in the economy there is concern about sales tax revenue, and additionally there may be State reductions next year. He recalled that under similar circumstances ten years ago the City lost $1.2 million in one year and $1.5 million in another. The Lowe’s shopping center has been delayed at least one year. Increased costs are associated with adding paramedics to the Fire Department. Medical insurance costs are expected to increase 26% this year and PERS will be increasing next year. Requests have recently been received by the City from the Downtown Lodi Business Partnership for an additional $30,000; Lodi Adopt-A-Child for a $100,000 loan; the Salvation Army for $50,000; and an additional $2,000 for the annual New Years Eve event. Currently the City is negotiating with two of the bargaining groups regarding compensation. In summary, he stated that there is a great deal of uncertainty in the future. According to figures he has been given, the General Fund is in a downward trend. A major concern is with Electric Utility. Eighteen months ago the Utility had $25 million in cash reserves and now it has $2 million, due to increased power costs.

In answer to Mayor Pennino, as an option to not relocate departments, Mr. Prima reported that cleaning the annex building attic and air ducts would cost less than $6,000. The cost to utilize space at the old Sak’s building is $12,000, and modifications needed at City Hall are anticipated to cost $40,000.

Mr. Flynn added that the employees of the Finance Department have stated that there is dust build up in the annex building and have asked that it be cleaned.

PUBLIC COMMENTS:

• Nancy Schmer, Finance Department Field Services Supervisor, asked Council to implement scenario one, or scenario two as a second option. She believed either of them to be the most time efficient in moving the Finance Department employees out of the annex building. She stated that the health concerns of the employees should be the focus, and the space needs of other departments should not be considered as part of the discussion on this matter. In reference to scenario six, Ms. Schmer asked that if the cleaning of the annex building is to be pursued, that it be done either on a weekend or during non-working hours. She reported that according to her count there are 29 staff members currently working on the first floor of City Hall. In the annex building (excluding IS staff) there are 35 employees. She questioned the logic of moving 35 employees into a space that 29 people are now complaining is too small to work in.

In reply to Mayor Pro Tempore Hitchcock, Ms. Schmer stated that she is open to the idea of cleaning the annex building as a possible solution. She reported that eight years ago it was known that pigeon droppings were in the attic space. In addition, a number of years ago results from a study indicated that there was suspect growth on the back wall and that ceiling tiles damaged from water should be removed. These issues have never been resolved.