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City Council - Special

February 11, 2025 ·4:00 PM Final

Carnegie Forum 305 W. Pine Street

Agenda PDF Official record ↗

Agenda — 17 items

  1. A. Call to Order / Roll Call
  2. B. Regular Calendar
  3. 2 The Special City Council meeting of February 11, 2025, was called to order by Mayor Bregman at 4:01 p.m. Present: Council Member Craig Hensley, Council Member Nakanishi, Mayor Pro Tempore Yepez, and Mayor Bregman Absent: Council Member Hothi Also Present: City Manager Carney, City Attorney Lucchesi, and City Clerk Nashed NOTE: Council Member Hothi arrived at 4:02 p.m.
  4. B.1 Appoint Michael Carouba to the Economic Development Ad Hoc Committee and Toni Lish to the Measure L Citizens’ Oversight Committee (CLK) 25-062
  5. B.2 Receive the Human Resources Assessment Report (CM) 25-059
  6. B.3 Receive and File a Verbal Report on the Finance Divisions Observations (CM) 25-067
  7. 5 City Clerk Nashed made a presentation regarding the appoint Michael Carouba to the Economic Development Ad-Hoc Committee and Toni Lish to the Measure L Citizens’ Oversight Committee. Specific topics of discussion included Michael Carouba's nomination for District 3 for the Economic Development Ad-Hoc Committee and Toni Lish's nomination for District 4 for the Measure L Citizens' Oversight Committee. Council Member Craig-Hensley thanked Mr. Carouba and Ms. Lish for their willingness to serve on the committees. Mayor Bregman welcomed Mr. Carouba and Ms. Lish to the committees.
  8. B.4 Adopt a Resolution Ratifying Amendment No. 2 to the Professional Services Agreement with Baker Tilly Advisory Group, LP of Mountain View in the amount of $55,000, which was executed as a Change Order by the City Manager and adding $150,000 for additional Professional Financial Services for a Total Contract Not to Exceed $308,900 ($103,900 Approved + $55,000 ratification + 150,000 for additional support) (CM) 25-061
  9. 6 Council Member Craig-Hensley made a motion, second by Council Member Hothi, to appoint Michael Carouba to the Economic Development Ad-Hoc Committee and Toni Lish to the Measure L Citizens’ Oversight Committee. VOTE: The above motion carried by the following vote: Ayes: Council Member Craig\-Hensley, Council Member Hothi, Council Member Nakanishi, Mayor Pro Tempore Yepez, and Mayor Bregman Noes: None Absent: None Directed the City Clerk to make the following appointments. APPOINTMENTS: Economic Development Ad-Hoc Committee Michael Carouba – Term to expire May 1, 2026 Measure L Citizens' Oversight Committee Toni Lish - Term to expire July 1, 2027 Deputy City Clerk Ditmore administered the Oath of Office to Michael Carouba, appointee to the Economic Development Ad-Hoc Committee, and Toni Lish, appointee to the Measure L Citizens' Oversight Committee.
  10. C. Adjournment
  11. 8 ----------------------------------------------------------------------------------------------------------------------------------------------------- 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 24 hours prior to the meeting date. Language interpreter requests must be received at least 24 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 meeting at www.facebook.com/CityofLodi/. -----------------------------------------------------------------------------------------------------------------------------------------------------
  12. 8 City Manager Carney provided background information regarding the report. Teri Silva, Senior Human Resources Consultant working with MRG, provided a PowerPoint presentation regarding the Human Resources Assessment Report. Specific topics of discussion included introduction, background and key facts, finding of: Human Resources Division is mostly transactional and policies are either not available or kept current, department organization, current organizational chart, key areas in the division, staffing ratios, comparable agency data, significant facts with comparable agencies, teamwork, recommendations, preferred option - create a department, preferred organizational chart, Option 2 - retain division and increase FTEs (1.3 ratio), Option 3 - retain division and increase FTEs (1.5 ration), Human Resources should be a strategic partner, support for the preferred option, examples of legal trends in Human Resources, and risk of employment liability. Risk Manager Beverly Jensen expressed concern that she, the Risk Management staff, and the City Attorney were not consulted regarding the proposed changes. She spoke regarding the recommendation of Public Agency Risk Management (PARMA) and Public Risk Management Association (PRMA) for Risk Management be housed in the City Attorney's office and the widespread duties of the Risk Management Division. Council Member Craig-Hensley requested that Ms. Silva provide more information related to Risk Management staffing when housed in Human Resources. In response to Council Member Craig-Hensley, Ms. Silva provided information regarding efficiency-increasing technology, policy development through an outside consultant, decentralization of performance evaluations, and meet and confer obligations. In response to Council Member Craig-Hensley, City Manager Carney provided information regarding proactive Human Resources outreach and best practices standards. Council Member Craig-Hensley spoke in favor of additional Human Resource staffing. In response to Council Member Craig-Hensley, Ms. Silva provided information regarding the non-existent policies mentioned in the report and training through the Liebert Cassidy Whitmore Consortium. In response to Mayor Pro Tempore Yepez, Ms. Silva provided information regarding the hourly cost of MRG and the data related to the proposed changes. In response to Mayor Bregman, City Manager Carney clarified the goal of the agenda item was to present the current Human Resources Assessment Report and receive Council guidance regarding staffing which may impact budget planning. He stated a recommendation will come at a subsequent meeting. Mayor Bregman spoke regarding the concerns presented in the report and asked City Manager Carney to obtain a statement from Risk Manager Jensen regarding her input on the issues discussed. In response to Mayor Bregman, Ms. Silva clarified that she had met with the City Attorney when gathering data for the report. City Attorney Lucchesi stated that moving the Risk Management Division was not part of the discussion with Ms. Silva. In response to Council Member Nakanishi, Ms. Silva clarified earlier discussion regarding criminal history and driver's license information on employment applications. In response to Council Member Nakanishi, City Manager Carney provided information regarding deficiencies in the Human Resources Division. Council Member Hothi stated he has received criticism regarding the excessive use of Special Meetings and because the proposed move of the Risk Management Division is not mentioned in the presentation, he would propose postponing a decision. Mayor Pro Tempore Yepez spoke in favor of postponing a decision to allow time to speak with staff and review the information presented. Council Member Craig-Hensley noted that Special Meetings are being used as a replacement for Shirtsleeve Sessions as informational meetings, and she concurred with not making a decision at this meeting. She stated that direction is needed to move forward, either at a Regular Meeting or another Special Meeting. Council Member Craig-Hensley further stated that Council should treat consultants respectfully and professionally, as they would staff members. At 5:01 p.m., Mayor Bregman called for a recess, and the City Council meeting reconvened at 5:04 p.m. Discussion ensued with Council Member Hothi, Mayor Bregman and Ms. Silva regarding the presentation of the information about the reorganization of Human Resources to include Risk Management. Mayor Bregman stated he felt Council was not ready to make a decision on major changes but simpler adjustments, such as the request for driver's licenses, could be addressed by staff at this time. Council Member Craig-Hensley noted that immediate changes would need to be handled by an outside agency due to the lack of staff. Mayor Bregman stated that item will need to come back to Council on a future agenda and include more staff input. No further Council action was required on this item.
  13. 10 Interim Assistant City Manager Bobby Magee provided a PowerPoint presentation regarding the Report on the Finance Divisions Observations. Specific topics of discussion included background, methodology, summary of observations by function, risk factors, fraud triangle, priority decisions, summary of Priority One observations, summary of Priority Two observations, customer service wait times (phones), customer service wait times (lobby/email), accounting disclosures to auditors, takeaways, and recovery plan. In response to Council Member Craig-Hensley, Interim Assistant City Manager Magee provided information regarding a timeline for addressing Priority One and Priority Two items, the possible effect on retirees due to the inaccurate CalPERS reporting, payroll reconciliation error corrections, procurement cards, bond rating, types of customer service requests, and completion of certain items from the Priority One and Priority Two lists before the upcoming budget. In response to Council Member Craig-Hensley, City Manager Carney provided further details regarding procurement card policies. Council Member Craig-Hensley spoke regarding the need for Council to receive a quarterly report on budget to actual expenditures. In response to Council Member Craig-Hensley's comments regarding customer service, City Manager Carney provided information regarding potential mid-year budget adjustment with Electric Utility and Public Works Enterprise accounts contributing to the cost of processing utility payments, which would enable the hiring of additional staff. In response to Council Member Nakanishi, City Manager Carney provided information regarding Council concerns and the timing of the assessment of the Finance Division operations. In response to Mayor Pro Tempore Yepez, Interim Assistant City Manager Magee provided information regarding typical payroll reconciliation errors and the cost difference between a consultant performing day-to-day accounting tasks vs. hiring staff. In response to Mayor Pro Tempore Yepez, City Manager Carney provided information regarding the timeline for hiring accounting staff. and stated he will update Council on the progress in a month. In response to Mayor Bregman, Interim Assistant City Manager Magee and City Manager Carney provided information regarding the use of technology to improve customer service. Mayor Bregman requested Council updates on hiring and the progress of the priority items. City Attorney Lucchesi stated that there is a new statutory requirement for agencies to report on all vacancies before a budget is adopted, so that item will be brought to Council at a public hearing. No Council action was required on this item.
  14. 12 City Clerk Nashed provided a brief overview of the amendment to the Professional Services Agreement with Baker Tilly Advisory Group, LP. Specific topics of discussion included the amendment amount, scope of services, and breakdown of costs. City Manager Carney spoke regarding this item's relationship to Item B-3 and the justification for the services provided in the amendment. JP Doucette, President of the Lodi Chamber of Commerce, spoke in support of allocating the appropriate resources to address the concerns noted in the reports. In response to Mayor Pro Tempore Yepez, City Manager Carney provided information regarding background on the Professional Services Agreement with Baker Tilly and the services to be provided in the amendment. In response to Mayor Pro Tempore Yepez, City Attorney Lucchesi provided information regarding the Procurement Policy's allowance of financial services as an exemption to the formal bid requirements, Council's previous action approving the Professional Services Agreement waived the bid requirements, and the City Manager's change order authority. In response to Mayor Pro Tempore Yepez, Mayor Bregman summarized the services to be provided with the amendment. City Manager Carney clarified that the Baker Tilly amendment does not encompass potential changes in the Human Resources Division. Council Member Craig-Hensley stated that the scope of service was clearly presented in the Financial services review and was also provided in the resolution. In response to Council Member Hothi, City Manager Carney clarified the total amount to date of the Baker Tilly contract and Interim City Manager Magee provided information regarding the use of the funds for additional services. In response to Council Member Nakanishi, City Attorney Lucchesi stated that the term of the amendment is through September 30, 2025.
  15. 13 Council Member Craig-Hensley made a motion, second by Council Member Nakanishi, to adopt Resolution No. 2025-16 ratifying Amendment No. 2 to the Professional Services Agreement with Baker Tilly Advisory Group, LP, of Mountain View, in the amount of $55,000, which was executed as a Change Order by the City Manager and adding $150,000 for additional Professional Financial Services for a total contract not to exceed $308,900 ($103,900 approved + $55,000 ratification + 150,000 for additional support). VOTE: The above motion carried by the following vote: Ayes: Council Member Craig\-Hensley, Council Member Hothi, Council Member Nakanishi, and Mayor Bregman Noes: Mayor Pro Tempore Yepez Absent: None
  16. 15 There being no further business to come before the City Council, the meeting was adjourned at 6:15 p.m.
  17. 16 ATTEST: Olivia Nashed City Clerk