Lodi City Manager Steve Schwabauer announces resignation

Aug. 14—The City of Lodi's top administrator — one of the longest-tenured of the current staff — is leaving in the fall.

City Manager Steve Schwabauer announced on social media Monday evening that he will be resigning his post, effective Oct. 6, and will be taking a general manager position at an unnamed water district in the area.

Schwabauer said he made the decision with "great sadness," and that it had been an honor to serve the city for the last 24 years.

"This decision is mine and the council has my full respect and support," he said in his announcement. "However, it is time for new leaders with new passions to carry Lodi forward. Lodi is in amazingly good hands. You have capable, compassionate and ethical leadership in every department and a city council that is as dedicated to the betterment of our city."

After earning his law degree from the University of California, Berkeley in 1994, Schwabauer began practicing law privately in Stockton, first with Freeman Brown until 1998, and then Herum Crabtree Brown until he came to Lodi in 1999 as deputy city attorney. He served in that role until 2004, when he was named city attorney.

Upon that appointment, Schwabauer inherited a 15-year-old environmental contamination dispute, and led the way toward a settlement with the insurance companies of local businesses over groundwater contamination. Schwabauer resolved the majority of the cases, saving the city millions in liability as it received $6.3 million in the settlements to clean up the PCE/TCE contamination in Downtown Lodi.

In 2014, Schwabauer took on his current role of city manager when Rad Bartlam left for the Southern California community of Chino Hills.

Over the course of the last decade, Schwabauer helped craft Measure L, the half-cent sales tax aimed at generating revenue for the city's parks and public safety departments, and guided Lodi through the process of creating voting districts after a threat of legal action from the Mexican American Legal Defense and Educational Fund.

In an effort to combat the increase of homeless individuals in the area, Schwabauer teamed with John Ledbetter to implement the Lodi Committee on Homelessness in 2019.

Since that time, the committee — made up of business and religious leaders, social workers, nonprofit representatives and residents — was able to roll out the tiny homes project at the corner of Lodi Avenue and Washington Street, as well as begin construction on the access center located at 710 N. Sacramento St.

In recent years, Schwabauer has led the city through difficult times, including the COVID-19 pandemic that lasted from 2020 to 2022 and the major floods caused by two atmospheric rivers last December and January.

Since then, the city has been hit with one challenge after another, including the ongoing battle to get a firm handle on homelessness.

In February, the city faced criticism when a husky dog named Enzo died as a result of being tased by Lodi officers after he broke loose from its Sandpiper Circle home. The incident gained national and even international attention and the owners of the dog filed a lawsuit against the city.

That same month, San Joaquin County Sheriff's Office deputies arrested former Lodi City Councilman Shak Khan on voter fraud charges and Khan tendered his resignation. However, Khan's attorney Neat Allen Sawyer disputed the resignation, and soon afterward filed suit against the city for wrongful termination.

Two weeks ago, the city faced one of its most difficult tragedies when Ben Gloff, a wastewater maintenance crew member, was working when he was struck and killed by a passing vehicle as he stood over a manhole cover in east Lodi.

Schwabauer showed no signs — at least not outwardly — of his impending departure.

In his Monday announcement, Schwabauer said he had two major goals for the city when he became city manager.

One was to set the city's financial house in order, and with more than $20 million in general fund dollars invested in infrastructure, he said that had been accomplished.

The second goal was to protect the city's groundwater resources, and with support from residents and the dedication of city employees, he said that the once-threatened water supply is safe.

Shortly after Schwabauer's announcement, the city posted comments from Mayor Mikey Hothi on social media.

"I've had the opportunity to work with Mr. Schwabauer for almost a decade and he has made his mark on every single part of this city," Hothi said. "He has dedicated his unwavering commitment, intelligence, and tireless efforts to our community's growth and development. His remarkable contributions have left an indelible mark on our city, and we owe him a debt of gratitude for his exceptional service."

Hothi said the process to select Schwabauer's replacement is already underway.

"We will conduct a thorough search to find an individual who possesses the necessary skills, vision, and passion to lead our city into the future," he said.

"In times of change, it is important to remember that our city's strength lies in the unity of its residents. Thank you for your unwavering support and dedication to our wonderful city."

Councilman Alan Nakanishi, who is longest tenured of the current city council members, has worked with Schwabauer for 24 years. He said Schwabauer's departure was a great loss for the city.

"He was one of Lodi's greatest administrators," he said. "He loved this city, and he always gave 150%. Whatever he did, he did it for the citizens, and for the city."

One of Schwabauer's notable achievements, Nakanishi said, was making sure Lodi's finances were secure.

When Schwabauer took over as city manager, he inherited a dire financial outlook. The city coffers had been battered by the Great Recession and spiraling employee pensions costs were leading to possible insolvency without intervention. With some major belt-tightening and the passage of Measure L, the city has regained fiscal stability, evening managing to put away tens of millions of dollars into a pension stabilization fund.

Nakanishi noted the city's general fund has seen two budget surpluses for the last two years, a feat that has never been accomplished in Lodi's history.

"He's leaving at the peak of his career," Nakanishi said. "We're going to miss him. He did an excellent job."

Former city parks and rec director Jeff Hood first met Schwabauer when the latter became deputy city attorney, and over the course of 30 years, the two became good friends

Hood said it was interesting to have someone he had known for several years become his boss through circumstance.

"He always had Lodi's best interest at heart," Hood said. "He had extremely high morals, and was highly ethical. He just was a great person to have in that position for that many years."

Hood said he wasn't too surprised of Schwabauer's announcement, stating many city managers only hold their positions for about five years. Schwabauer led the city for about nine and a half.

"He showed his love for the city," he said. "I mean, he's lived there 30 years. It was way more than a job to him. I think he saw it as something he could do for the community he loved."

Schwabauer's departure is the latest involving department heads that have been with the city for decades.

In June, former city attorney Janice Magdich announced her resignations after 20 years at city hall. Magdich became deputy city attorney in 2004, the same year Schwabauer was appointed city attorney.

She took over for him in 2014 upon his appointment to city manager.

Earlier this month, Lodi Police Chief Sierra Brucia announced he would retire at the end of the year after 30 years at the department.

Brucia was named chief in 2020 after the retirement of Tod Patterson.