Ed Miller's City Council notes

CIA members Ed Miller and Kathy Polesnke have been attending City Council meetings pretty faithfully for a couple months and we appreciate Ed sharing his observations so we can keep up to speed with the issues! Thank you Ed and Kathy!! (These notes are newest first)

6/7/2011 City Council Shirtsleeve Meeting:
Agenda: Third Quarter Fiscals 2010/2011 for Water, Waste Water, and Electricity

Bottom-line is that all three utilities are below budget by about 10% and reserves are building (positive cash flow)
Interesting points:
- Waste Water was fined $12k for illegal discharges caused by an undefined chemical from a customer that attacked the plant's biological ponds - the illegal discharger could not be identified as it is well upstream and the discharge is not consistent - more regulatory lunacy.
- ~58% of the utility's costs are due to state regulations
- Electrical costs are down due to increased water supply - electrical director said she had heard of some generators paying customers to take excess energy. (Sadly, the new state law does not count hydro as renewable energy and the environmentalist agenda is to decommission dams)

Post meeting: Talked to city manager about report of biologist's study that the Golden Eagle population is in decline due to windmills; i.e., they are not reproducing fast enough to replace losses due power generation windmills - this includes latest generation designs. http://www.latimes.com/news/local/la-me-adv-wind-eagles-20110606,0,1506320,full.story Considering that the Golden Eagle is on the endangered list, the Feds should be shutting them down just as they shut-off water the the central valley for an endangered minnow. More double-standards from government hypocrites! In any case, the city manager said that they will not be pursuing a wind turbine/mill because the wind at White Slough is not in phase with the city's power demands. That surprised me as it always seems to be blowing out there.

6/7/2011 City Council Shirtsleeve Meeting:
Agenda: Third Quarter Fiscals 2010/2011 for Water, Waste Water, and Electricity

Bottom-line is that all three utilities are below budget by about 10% and reserves are building (positive cash flow)
Interesting points:
- Waste Water was fined $12k for illegal discharges caused by an undefined chemical from a customer that attacked the plant's biological ponds - the illegal discharger could not be identified as it is well upstream and the discharge is not consistent - more regulatory lunacy.
- ~58% of the utility's costs are due to state regulations
- Electrical costs are down due to increased water supply - electrical director said she had heard of some generators paying customers to take excess energy. (Sadly, the new state law does not count hydro as renewable energy and the environmentalist agenda is to decommission dams)

5/31/2011 Shirtsleeve meeting:

No meeting

6/1/2011 Regular City Council Meeting:

Most important agenda item was the review and passage of the 2011/2012 Budget which had been reviewed in detail in shirtsleeve meetings over the past month:
- Appears all of the city's bargaining units are going to agree to the necessary concessions to balance the budget. Again, the council is firm that any unit not agreeing to concessions will see the number of lay-offs within that group required to balance their share of the budget. Either way, a balanced budget was passed.
- The bottom-line is that the city is relatively powerless to do much more about salaries and benefits without a change in state law, not probable with the Democrats in control. We can push for more privatization or hybrid staffing of new operations as was successful with the water treatment plant in the meantime.

Next meeting 6/7/2011 Shirtsleeve meeting

4/20/2011 Regular City Council Meeting:

Controversial subject: South Hutchins Annexation Project

Lots of emotional people spoke against the project with reasons ranging from “want the strawberry stand” to stay to “green belt” concerns plus an accusation that this is illegal action by the city (environmentally) – it is not. Interestingly, most of the speakers do not live in Lodi.
Property owner has been planning this for 20-years. Among other things, he paid a lot of money to have the sewer line oversized years ago
The adjacent cherry farmer spoke and said he was happy to see the strawberries go as they caused insect problems on his trees
Developer and Chamber of Commerce stated that there is no option for land in the developed zones of the city for this project
Members of the council were very frustrated
- City growth is already limited to 2%/year and is actually ~1% (in contrast, Tracy is 17%)
- Extensive planning with public participation was put into the growth plan
- This project is consistent with the plan
- The committed “green belt” is not violated and the developer has met the “set aside an equal amount of land for permanent farm land” requirement.
- Will be a job creator
- May become the catalyst for more high tech medical, Kaiser, Sutter Health, etc.
- Council approved the project which appeared to be the appropriate action to me

Main Subject: Resolution to join Northern California Power Agency to obtain natural gas for the Lodi Power Generator under construction

City already has a relationship with NCP for electricity
Partnering with them avoids hiring an employee(s) to manage purchases and sales of excess fuel – very complex process
Council approved

Main Subject: Adopt firework ordinance (see 4/6/2011 above)

Council approved

4/19/2011 Shirtsleeve City Council Meeting:

Subject: Development Impact Mitigation Fee Program Update

Gist of the meeting was that the city is looking at lowering fees for any redevelopment of vacant property in town to encourage growth within presently developed areas of the city
Would not have a negative impact on the city financially
Council agreed to move forward

4/19/2011 Budget Workshop:

Subject: City employee pensions and health care and anticipated budget deficit ($6 million) in June due to these costs

Recommend Maggie Creamer’s article in the 4/20/2011 Lodi News-Sentinel for a very detailed description
The video and power point presentation is posted at the city’s website (http://www.lodi.gov/index.html)
Bottom-line is that either the city public service unions will make major permanent concessions in benefits (voluntarily or non-voluntarily) or the city will be forced to lay-off people each year to balance the budget making city services more and more nonviable each year.
Was very disappointed in the low citizen turnout for these workshops. The city manager attempted to perform a great service for our citizens and there was essentially no interest. Ignorance is still bliss in Lodi….

4/12/2011 Shirtsleeve City Council Meeting:

Closed meeting (not a public meeting) to discuss pending litigation against the police department

4/6/2011 Regular City Council Meeting:

Main subject: Fireworks Ordinance

Continuation of the shirtsleeve proposal previously reported
Six (6) stands (1/10,000 population) to be authorized – may increase in the future
Annual lottery among nonprofits (nonprofit must be at least one year old)
Lottery winners can only have a stand for two (2) years in a row
Council authorized the city attorney to draft ordinance

4/5/2011 Shirtsleeve City Council Meeting:

Subject: San Joaquin Regional Transit District

Presented by Donna DeMartini, GM of San Joaquin Regional Transit District (RTD)
Discussion of present and planned services
Majority of their costs are personnel-related and especially benefits.

3/22/2010 Lodi City Council “Shirtsleeve” Meeting:

Topic: Second quarter financial for Water, Waste Water and Electrical utilities
Electrical is within budget
Rate/KWH is down ~$.01
Water and Waste Water are within budget

Next meeting should be Tuesday 3/29/2010 at 7am (no regular meeting next week)

3/15/2010 Lodi City Council “Shirtsleeve” Meeting:

Topic: Present New Water Plant Staffing plan and Recommended Water and Waste Water Rate Adjustments:
Water Treatment Plant will produce 10mgd (million gallons per day)
In construction phase
Estimating 18-months to start-up (to “normalization”)
Per a state requirement, will add chlorine dosing stations to 26 municipal wells; presently doing in small concentrations to “condition” the pipes
New plant staffing requires 8.5 new positions totaling ~$940k/year; I asked and they confirmed that these are all new public-sector union jobs
Total operating cost will start-out at $1.8M and settle to $1.5M/year at “normalization” of which 63% is staffing (not abnormal)
I suggested that this is a good opportunity to go away from public-sector union staffing costs and liabilities and privatize the operation – the response was not positive.
Post-meeting:
Wrote an email to the council, city manager and Lodi Sentinel stating that I felt they did not consider my suggestion seriously and that saving of 30% or more may be possible. Given the city budget will be in trouble later in the year, it is irresponsible to ignore this opportunity. Got responds from city manager, mayor and councilperson Mounce stating that they did take my proposal seriously and would consider the idea.
Kim Parigoris found a website promoting “public-private partnerships” that forwarded to the city manager; again, received response that they will consider
What I am expecting: That the city staff will propose multiple solutions to the staffing requirement using their original proposal as the baseline for cost reduction.
Water rates were not discussed

Special Topic: Adapt Resolution Opposing the Governor’s Budget Proposal to Eliminate Enterprise Zones
Was adapted as this is believed to further depress business in Lodi and other cities (other cities taking similar action)

3/15/2010 Lodi City Council Regular Meeting:
Before meeting: Found the water plant staffing proposal (above) in the “consent calendar;” city manager pulled it before the meeting. (Agenda had been published before the Tuesday meeting)

Highlights:
G-1 Block Grants – started selection process
G-2 Residential Water Meter Installation
Many people protesting meter installation requirement especially seniors
Managers of multiunit residences are against a single charge that they have to divide up between tenants versus present system where city bills tenants directly. (Not practical to meter individual units)
$300 change will go to everyone before meter is installed (may not be installed until 2017 dependent on location in the city)
Pay full $300 before 6/30/2011 or
If not paid, city will automatically go to ~$9/month installment plan at 1.404% and put a lien against the property
G-3 Adjustment of Solid Waste Collection rates:
By contract, rate is adjusted yearly and based on various indexes; can go up or down
Rate will be increased to:
35 gallon from $22.83 to $23.15/month or +$.32/month
64 gallon from $33.33 to $34.82/month or +$1.49/month
I-1 Revise Budget Committee – council voted to eliminate (good move – waste of time)
I-2 Approved Electric Reserve policy
I-3 Repayment of HOME Program Funds of $75k – is a “shell game” of money (city repays and then gets it back!?!)

3/8/2011 Lodi City Council "Shirtsleeve" Meeting:
Agenda: Review of applications for annual Community Development Block Grant (CDBG) for 2011/2012 (tied to federal fiscal year)
            Definitions/Background: (my best guesses)
·        “Block Grant” is a large sum of money granted by the national government to a regional government with only general provisions as to the way it is to be spent.
·        Community Development Block Grant (CDBG) is a U.S. Department of Housing and Urban Development (HUD) program with many funds/programs; basically a huge entitlement “slush fund.”
·        Community Based Organization (CBO) is any agency or person, non-profit or for-profit, free or fee-for-service that provides programs or services

This meeting’s purpose was to start the review and selection process for allocation of funds the city is expecting from HUD:
City expects ~$750K based on the president’s budget. However, the Republicans are forecasting less as a part of reducing the federal budget.
Lodi is classified as an “Entitlement City” vs. “Urban County” for the third year. The difference is that the city does its own administration and receives ~6% more money versus having the county do the administration
Lodi’s rules are that 20% of the grant is allotted for administration and of the remaining 80%, 60% is for city projects and services and 40% for CBO projects and services. There are other restrictions dictated by HUD.
Local CBOs compete for a portion of the money. Lodi uses a grading/scoring matrix to rank applications. However, it was obvious that politics will determine the real winners and losers.
See the agenda for today’s meeting for listings of applicants
Even at $750K there is not enough money for all applicants
Projects require $625K but only $240K available
Services require $68K but only $32.5K available
Council Member Mounce was unhappy that no dollars were requested by the city to fix east-side alleys – apparently in very bad shape

As I understand it, this meeting started a multistep process for public review and eventual selection of services and projects to be funded April 20 after the actual block grant amount is identified. Next meeting on this subject is the March 16th regular city council meeting along with water meters.

Lodi City Council Regular meeting, 2/16/2011

Highlights:

Meeting went almost four (4) hours because the many upset citizens and controversial items on the agenda
Many agitated seniors were in attendance due to rumors of the pool at Hutching Square going to reduces hours, to complain about the state of repair and conditions, and changing the pool coordinator’s hours from full-time to half-time.
- Reduction in pool hours was only a rumor
- City believes they will have the maintenance and humidity issues solved in the near future
- Pool coordinator’s hours to be reduced via a split council vote of 3 to 2.
Reorganization/combining of several departments with associated lay-off or transfer of personnel including middle managers as a part of the mid-year budget adjustments were approved
City will NOT establish a medical marijuana dispensary
Rental of Johnson Sculpture Exhibit for downtown was approved
First phase of remodel and ADA compliance project for the Grape Bowl was approved. May interfere with high school football and graduation if problems and delays are encountered. Full remodeling may range from many years to never being completed.
Approved city-wide 9/80 work schedule; i.e., 80-hours split between 9 working days with alternate Fridays off. Small saving for the city and benefit for city employees.
Next regular meeting is Wednesday, 3/2/2011 @ 7pm

Lodi City Council Shirtsleeve meeting, 2/15/2011

Single agenda item: City Attorney to provide guidance for drafting an ordinance prohibiting smoking near entrances, windows and air inlets of private buildings

City Attorney provided information about California cities and range of restrictions they passed into law plus CARB and EPA declarations of open-air second-hand smoke being dangerous. As expected their evidence/data was not stated.
This request occurred because a former city mayor received complaints of smoke from outside smokers drifting into an open window of an apartment house he manages and Mayor Johnson was responding.
The council “waffled” back and forth about how enforceable an ordinance would be or how important it is to protect people from open-air second-hand smoke.
The council was not interested in having the city enforce the proposed ordinance (some thought it unenforceable) but would require private property owners to enforce or citizens to report violations.
I spoke and said the following:
- I am an ex-smoker and no friend of smoking as I have smoking-related cancer
- However, I an NOT for a nanny state dictating what can and cannot be done every waking minute.
- Much of the “science” behind second hand smoke has NOT passed peer review (I.e., is “junk” science) and that I had not had a chance to do the research.
- The council needs to declare if the purpose of the ordinance is health protection or avoidance of the smell of cigarette smoke
- Having private property owners enforce the ordinance does what the city constantly complains of, forcing an unfunded mandate down the food-chain. That is, they were being hypocritical.
The next step will be for the City Manager and Attorney to hold a public workshop to air the issue. I plan to be there with that science has been published and argue against the nanny state mentality.
No shirtsleeve meeting Tuesday, 2/22/2011. Presume there will be a meeting Tuesday, 3/1/2011 @ 7am.

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2/8/2011 Shirtsleeve City Council Meeting:

Subject: Re-discussion of the future of the Budget and Finance Committee; i.e., should this citizen’s committee continue or be disbanded.
History: Created in 2005 to advise the City Manager and City Council on management of the budget
Was a seven (7) member group and was reduced to five (5)
Currently only two (2) members serve but have not met since July 2010
Problems:
Has a poorly stated mission statement and a poor track record of staying on-task
City councils historically have ignored recommendations because the committee pursued inappropriate agendas (from the council’s and city staff’s viewpoints)
City staff does not appreciate the audits demanded by the committee (witch hunts)
Past members have become frustrated and quit
Discussion:
Sometimes heated and very political; i.e., “budget is the council’s responsibility and they should do the studies” versus “members do not have that much available time”, “past committee members used the committee to advance political aspiration (run for city council) not help solve the city’s objectives”, etc…
Assistance City Manager “benchmarked” other cities and counties and found Lodi has the only citizen-based committee. Other successful committees are subsets of the city councils.
The present committee chairman pretty much used all of the public’s remark time (bloviated – very ineffective)
Agreement was city staff to write an appropriate mission statement and present to the city council at which time the council decide on the future of the committee
Post meeting:
Councilperson Mounce approached me and asked what I thought.
I said that the public’s input had been cut-off before I was allowed to speak.
My input to her was that the council needs to:
Determine if this committee can benefit the city and the council by providing extra resources to test budget ideas – if it cannot, kill it
If it can use this group, write a precise mission statement to obtain the results
Possibly use a hybrid approach by adding one or more council members to keep the focus appropriate

2/2/2011 City Council Meeting:

Both Kathy Polenske and I were in attendance
Meeting was per the agenda @ http://www.lodi.gov/clerk/aaPDFimages/02-02-11agnPACKET.pdf
I challenged Consent Calendar item C-4 for $65K inspection (5-year past due maintenance of Electrical Utility). My questions were:
- Considering past concerns for lack of maintenance of Fire Station #2, why is this equipment not on a PM schedule and performed on time? Answer: The Electrical Utility Director was not present but that there are other pieces of equipment with late maintenance schedules.
- Will/does the lack of maintenance affect the cost of the inspection and the required maintenance that inspection will dictate? Answer: No affect on inspection cost, undefined for required corrective action. When this item returns for approval of dictated maintenance funding, we need to challenge the root cause investigation and corrective action taken systemically (if not given) in the Electrical Utility.
Regular Calendar item I-01 was presented in the packet and during the meeting in a very ambiguous way; specifically no problem statement or background was given. As a result, the council talked all around the issue which was an attempt to insure that the city appoints members to boards, committees and commissions in an ethical manner (avoid the city of Bell problem). I challenged Council Member Mounce during the meeting and after (via email) to provide clearer statements of her intent.
Mayor Johnson mentioned an idea to reduce city spending by forming more partnerships with other groups/organizations to reduce redundancies similar to what is currently done with the school district. As an example, he suggested that perhaps police SWAP teams of various cities, counties, etc might be merged thereby reducing the cost to all. Sounds like a good idea.

January 25, 2011 Shirtsleeve Meeting

Attended the shirtsleeve meeting this morning. Subject was a “mid-year” report of budget expenditures to date. There are highs and lows but the main driver of variances is medical insurance costs. The city pays for them 100% - incredible! I did not ask for clarification because the budget workshops will provide a lot of detail about how the budget works and expenses within it. On the budget workshops, the city manager announced the workshops and that the meeting plan is same as the letter outlined; i.e., first meeting 2/1/2011 @ 1730 in the city council meeting place with follow-on meeting every two weeks for several months. He said that they will be going into a ton of detail which will help me understand the situation and how a city budgets versus a business.

City Council Shirtsleeve meeting: Review Proposed FY 2010/11 Mid-Year Reorganization

Groups affected are the Electric Utility, Community Center and Parks and Recreation
Expected cost savings of ~$600K for both organizations
Generally accomplished by “flattening” the organizational chart, eliminating several middle managers plus four (4) positions
To be completed by transfers and lay-offs
Plan avoids increasing rates to citizens and maintains current service levels
Parks and Recreation and Hutchins Community Center to be combined and renamed (possibly the Community Service Department)
Reorganization of the Parks and Recreation group has been progressing over a four (4) year period.
Possible privatization of maintenance going forward

City Manager Budget Workshop, City Income (first of series of workshops held on the 1^st and 2^nd Tuesdays of each month):

Meeting reviewed in great detail the city’s sources of income, whom controls them and restrictions on their use
Current gross income is $177.8M with main funds being Electric Utility 41%, General Fund 23% and Water and Waste Water 17%
City employs 105 separate funds to promote control, accountability and transparency
Believe all Lodi citizens should see this presentation as it highlights the impact of shopping outside of town. I, for one, will do more of that plus utilize city facilities and pay the fees (Example: drive through Lodi Lake during fee hours to support the city).
City Manager’s Power Point presentation and video of meeting is at: http://www.lodi.gov/city_manager/Budgetgroup.html
Many questions about opportunities for cutting spending; the answer turns-out to be complex: The City Council only controls a percentage of the total budget. Some spending is mandated by state or federal government while others eliminate profitable income or require impractical increases in fees. The manager was not saying that cuts are not possible, only that there are pitfalls to be considered.
Next meeting is Tuesday, 2/15/2011. Time 5:30-7:00 pm.