City Council/Successor Agency to the
Redevelopment Agency/Public
Financing Authority/Parking Authority
Concurrent
City of Stockton
Meeting Agenda - Final
City Council/Successor
Agency of the
Redevelopment
Agency/Public Financing
Authority/Parking Authority
Concurrent Agenda
Council Chamber, City Hall, 425 N. El Dorado
Street, Stockton CA
4:00 PMTuesday, February 8, 2022
Closed Session 4:00 PM :: Regular Session 5:30 PM
The City of Stockton invites public comments in multiple forms. You provide your comments by using one of these methods:
1. e-Comment - follow the e-comment link on the City’s agenda page stockton.granicusideas.com/meetings
2. Email - you may email your comments to [email protected]
3. Voicemail - you can leave a voice message by dialing (209) 937-8459.
4. WebEx - if you wish to provide public comments virtually, you must email [email protected] no later than 90 minutes prior to the meeting on the day of the meeting to request a WebEx link.
5. In-Person Comments –
a) Speakers must submit “request to speak cards" to the Clerk prior to the Public Comment portion of the agenda. No speaker cards will be accepted after the close of Public Comment. Please redirect any inquiries to [email protected]. b) Address only issues over which the meeting body has jurisdiction. c) Each speaker will be limited to one 3-minute comment opportunity. Donating time is not authorized.
d) Your time will be displayed on the speaker podium for convenience.
1. CLOSED SESSION CALL TO ORDER/ROLL CALL
2. ADDITIONS TO CLOSED SESSION AGENDA
3. ANNOUNCEMENT OF CLOSED SESSION
3.1 22-0008
CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION
Number of Cases: One
Name of Case: Kurt Wilson v. City Council of Stockton, et al. (San Joaquin County Superior Court Case No.
STK-CV-UVM-2019-12404)
This Closed Session is authorized pursuant to section 54956.9(a) of the Government Code.
1 February 8, 2022City Council/Successor Agency to
the Redevelopment Agency/Public
Financing Authority/Parking
Authority Concurrent
Meeting Agenda - Final
Department: City Attorney
3.2 22-0009 CONFERENCE WITH LABOR NEGOTIATOR
Recommended Action: Agency Designated Representative: City Manager Harry Black Employee Organizations: Unrepresented Units, Stockton City Employees' Association, Operating Engineer's Local 3, Mid-Management/Supervisory Level Unit, Unrepresented Management/Confidential, Law Department, Stockton Police Management Association, Stockton Firefighters Local 456 International Association of Firefighters, Stockton Fire Management, Stockton Police Officers' Association (SPOA)
This Closed Session is authorized pursuant to section 54957.6(a) of the Government Code.
Department: City Attorney
3.3 22-0011 CONFERENCE WITH LEGAL COUNSEL - POTENTIAL LITIGATION Number of Cases: One
Based on existing facts and circumstances, there is significant exposure to litigation pursuant to Government Code section 54956.9(b).
Department: City Attorney
3.4 22-0137 PUBLIC EMPLOYEE PERFORMANCE EVALUATION:
Recommended Action: City Manager
This Closed Session is authorized pursuant to Government Code section 54957.
Department: City Manager
3.5 22-0138 PUBLIC EMPLOYEE PERFORMANCE EVALUATION:
Recommended Action: City Attorney
This Closed Session is authorized pursuant to Government Code section 54957.
Department: City Attorney
4. PUBLIC COMMENT*
5. RECESS TO CLOSED SESSION
6. REGULAR SESSION CALL TO ORDER/ROLL CALL
7. INVOCATION/PLEDGE TO FLAG
2 February 8, 2022City Council/Successor Agency to
the Redevelopment Agency/Public
Financing Authority/Parking
Authority Concurrent
Meeting Agenda - Final
8. REPORT OF ACTION TAKEN IN CLOSED SESSION
9. ADDITIONS TO REGULAR SESSION AGENDA***
10. RECOGNITIONS, ANNOUNCEMENTS, OR REPORTS
11. PUBLIC COMMENTS* – MATTERS NOT ON THE AGENDA
12. CONSENT AGENDA
12.1 22-0068
ACCEPT THE QUARTERLY INVESTMENT REPORT FOR QUARTER
ENDED DECEMBER 31, 2021
Recommended Action: RECOMMENDATION
It is recommended that the City Council accept by motion the Quarterly Investment Report for the quarter ended December 31, 2021.
Department: Administrative Services
Attachment A - Qtly Investment Report ending 12-31-2021 Attachment B - Certification of Qtly Investment Report
Attachments:
12.2 22-0133 APPROVAL OF CITY COUNCIL MINUTES
Recommended Action: RECOMMENDATION
Approve the minutes from the Special City Council meeting of November 30, 2021 and the City Council meeting of January 11, 2022.
Department: City Clerk
Attachment A - 2021-11-30 Minutes - Special
Attachment B - 2022-01-11Minutes
Attachments:
12.3 22-0085 ADOPT A RESOLUTION TO APPLY FOR, ACCEPT, AND
APPROPRIATE GRANT FUNDING FROM THE STATE OF
CALIFORNIA - HOMELESS COORDINATING AND FINANCING
COUNCIL (HCFC), BUSINESS, CONSUMER SERVICES AND
HOUSING AGENCY (BCSH), OF THE FIRST ALLOCATION OF
ROUND THREE OF THE HOMELESS HOUSING, ASSISTANCE AND
PREVENTION (HHAP) GRANT PROGRAM.
3 February 8, 2022City Council/Successor Agency to
the Redevelopment Agency/Public
Financing Authority/Parking
Authority Concurrent
Meeting Agenda - Final
Recommended Action:
RECOMMENDATION
It is recommended that the City Council adopt a resolution to:
1. Approve and accept the HHAP 3 initial funding allocation of $1,578,653.95:
2. Approve and authorize the execution of the HHAP 3 funding Standard Agreement with BCSH accepting the initial grant funding disbursement.
3. Authorize the City Manager, or designee, to enter a Standard Agreement/Initial Disbursement Contract for funds with all its exhibits or other necessary documents consistent with the resolution.
4. Authorize the City Manager to enter a contract with a consultant for the development of an action plan required to apply for the second allocation of round three HHAP funding.
5. Authorize the City Manager, or designee, to take appropriate and necessary actions to carry out this resolution's purpose and intent Department: Economic Development
Proposed Resolution - HHAP3
Exhibit 1 - HHAP3 Standard Agreement
Attachments:
12.4 22-0103 ADOPT RESOLUTION TO AUTHORIZE SUBMITTAL OF
APPLICATIONS TO THE DEPARTMENT OF RESOURCES
RECYCLING AND RECOVERY
Recommended Action:
RECOMMENDATION
It is recommended that the City Council adopt a resolution to:
1. Authorize the City Manager to submit applications to the Department of Resources Recycling and Recovery for any and all grant and payment programs offered.
2. Authorize the City Manager, or his/her designee, to act as the Signature Authority to execute all documents necessary to implement and secure payment, and implement the approved grant or payment project.
3. Authorize that this authorization be effective for five years from the date of adoption unless rescinded by the Signature Authority of this governing body.
It is also recommended that the City Manager be authorized to take appropriate and necessary actions to carry out the purpose and intent of this resolution.
Department: Public Works
Proposed Resolution - CalRecycle GrantAttachments:
4 February 8, 2022City Council/Successor Agency to
the Redevelopment Agency/Public
Financing Authority/Parking
Authority Concurrent
Meeting Agenda - Final
12.5 22-0037
ADOPT RESOLUTION TO REJECT BIDS FOR THE FIRE STATION
NO. 2 WINDOW REPLACEMENT AND RE-APPROPRIATE FUNDS
TO THE FIRE STATION NO. 1 RENOVATIONS
Recommended Action:
RECOMMENDATION
It is recommended that the City Council adopt a resolution to:
1. Reject all bids received for the Fire Station No. 2 Window Replacement, Project No. F018019, pursuant to Stockton Municipal Code section
3.68.160(B).
2. Re-appropriate funds in the amount of $551,290 from the Fire Station No. 2 Window Replacement, Project No. F018019, to the Fire Station No. 1 Renovations, Project No. F022002.
It is also recommended that the City Manager be authorized to take appropriate and necessary actions to carry out the purpose and intent of this resolution.
Department: Public Works
Attachment A - Vicinity Map
Proposed Resolution
Attachments:
13. ADMINISTRATIVE MATTERS
14. UNFINISHED BUSINESS
15. NEW BUSINESS
15.1 22-0109
APPROVE REPAYMENT OF $1,261,913.52 TO THE SUCCESSOR
AGENCY TO RESOLVE ASSET TRANSFER REVIEW REPORT
FINDING
5 February 8, 2022City Council/Successor Agency to
the Redevelopment Agency/Public
Financing Authority/Parking
Authority Concurrent
Meeting Agenda - Final
Recommended Action:
RECOMMENDATION
It is recommended that the City Council approve a resolution to:
1. Authorize the repayment of $1,261,913.52 from the General Fund Contingency to the Successor Agency to resolve Finding #1 in the Stockton Redevelopment Agency Asset Transfer Review Report issued by the California State Controller's Office (SCO) in August of 2013.
2. Authorize the City Manager to take necessary and appropriate actions to carry out the purpose and intent of the resolution.
And it is recommended that the Successor Agency to the former Stockton Redevelopment Agency (Successor Agency) approve a resolution to:
1. Authorize the appropriate disbursement of $1,261,913.52 in accordance with Health & Safety Code sections 34176, 34177(d) and (e), and 34181 as necessary to resolve Finding #1 in the Stockton Redevelopment Agency Asset Transfer Review Report issued by the SCO in August of 2013.
2. Authorize the Executive Director to take necessary and appropriate actions to carry out the purpose and intent of the resolution.
Department: Administrative Services
Attachment A - SCO Audit RDA Asset Transfer 013112
Attachment B - RDA Resolution R11-003
Attachment C - March 2011 Payoff Wires for CHFA Loans
Proposed City Resolution
Proposed SA Resolution
PPT - 15.1 - Resolve Asset Transfer Review Finding
Attachments:
15.2 22-0105 APPROVAL OF RESOLUTION OF INTENTION TO PARTICIPATE IN THE PROPOSED “MOSSDALE TRACT ENHANCED
INFRASTRUCTURE FINANCING DISTRICT” AND NEWLY FORMED
PUBLIC FINANCING AUTHORITY
Recommended Action:
RECOMMENDATION
It is recommended that the City Council, adopt a Resolution of Intention to participate in the proposed Mossdale Tract Enhanced Infrastructure Financing District and associated Public Financing Authority established to finance the construction and/or acquisition of capital improvements planned to provide Urban Level of Flood Protection for the Mossdale Tract.
Department: City Manager
6 February 8, 2022City Council/Successor Agency to
the Redevelopment Agency/Public
Financing Authority/Parking
Authority Concurrent
Meeting Agenda - Final
Proposed Resolution
Exhibit 1 - Lathrop Resolution - Mossdale Tract EIFD
Exhibit 2 – Proposed Mossdale Tract EIFD Map
PPT - 15.2 - Stockton EIFD ROI Participation
Attachments:
16. HEARINGS**
17. CITY MANAGER'S UPDATE
18. COUNCIL COMMENTS
19. ADJOURNMENT
INFORMATIONAL ITEMS
1 22-0135
COUNCIL COMMITTEE/BOARD AND COMMISSION MINUTES
Recommended Action: RECOMMENDATION
Information item only. No action required.
Department: City Clerk
MTF Disabilities 2021-10-01
WAG 2019-09-05
WAG 2021-10-06
Water Committee 2021-02-11
Water Committee 2021-04-08
Attachments:
CERTIFICATE OF POSTING
I declare, under penalty of perjury, that I am employed by the City of Stockton and that I caused this agenda to be posted in the City Hall notice case on February 1, 2022, in compliance with the Brown Act.
Eliza R. Garza, CMC
City Clerk
By: ________________________________
Deputy
7 February 8, 2022City Council/Successor Agency to
the Redevelopment Agency/Public
Financing Authority/Parking
Authority Concurrent
Meeting Agenda - Final
*Citizens may comment on any subject within the jurisdiction of the City Council/Successor Agency to the Redevelopment Agency/Public Finance Authority/Parking Authority, including items on the Agenda. Each speaker is limited to three minutes. Speakers must submit “Request to Speak” cards to the City Clerk, and be prepared to speak when called. No speaker cards will be received after the close of the Citizen’s Comments portion of the meeting.
**Speakers should hold comments on items listed as a Hearing until the Hearing is opened. If a large number of people desire to speak at a Hearing, the Mayor/Chair may reduce the amount of time allocated to each speaker to three (3) minutes.
***Additions to the Agenda - Government Code Section 54954.2(b)(2), allows members of the City Council present at the meeting to take immediate action, with either a two-thirds or unanimous vote, to place an item on the agenda that action must be taken and that the item came to the attention of the City subsequent to the agenda being posted.
All proceedings before this meeting body are conducted in English. The City of Stockton does not furnish language interpreters and, if one is needed, it shall be the responsibility of the person needing one.
In accordance with the Americans With Disabilities Act and California Law, it is the policy of the City of Stockton to offer its public programs, services and meetings in a manner that is readily accessible to everyone, including those with disabilities. If you are disabled and require a copy of a public hearing notice, or an agenda and/or agenda packet in an appropriate alternative format; or if you require other accommodation, please contact the Office of the City Clerk located at 425 North El Dorado Street, Stockton, California 95202 during normal business hours or by calling (209) 937-8459, at least 5 days in advance of the hearing/meeting. Advance notification within this guideline will enable the City/Agency to make reasonable arrangements to ensure accessibility.
Materials related to an item on this agenda submitted to City Council after distribution of the agenda packet are available for public inspection in the City Clerk's Office at 425 North El Dorado Street, Stockton, California 95202, during normal business hours. Such documents are also available on the City's website at www.stocktongov.com subject to staff's ability to post the documents before the meeting.
CHALLENGING CITY DECISIONS: The time limit within which to commence any lawsuit or legal challenge to any quasi-adjudicative decision made by the City is governed by Section 1094.6 of the Code of Civil Procedure, unless a shorter limitation period is specified by any other provision. Under Section 1094.6, any lawsuit or legal challenge to any quasi-adjudicative decision made by the City must be filed no later than the 90th day following the date on which such decision becomes final. Any lawsuit or legal challenge, which is not filed within that 90-day period, will be barred. If a person wishes to challenge the nature of the above section in court, they may be limited to raising only those issues they or someone else raised at the meeting described in this notice, or in written correspondence delivered to the City of Stockton, at or prior to the meeting. In addition, judicial challenge may be limited or barred where the interested party has not sought and exhausted all available administrative remedies.
8 City of Stockton
Legislation Text
File #: 22-0068, Version: 1
ACCEPT THE QUARTERLY INVESTMENT REPORT FOR QUARTER ENDED DECEMBER 31, 2021
RECOMMENDATION
It is recommended that the City Council accept by motion the Quarterly Investment Report for the quarter ended December 31, 2021.
Summary
Pursuant to California Government Code section 53646 and the City’s Investment Policy (Policy No.
17.01.030), the City Treasurer (Chief Financial Officer) is required to provide a quarterly report and certification to the City Council, City Manager, and City Auditor. The Quarterly Investment Report shall include a complete description of the portfolio, the type of investments, the issuers, maturity dates, par value, and dollar amounts invested in all securities, investments, or programs that are under the management of contracted parties, including lending programs. The certification must provide assurances that investments were made consistent with the City’s Investment Policy and that the City will meet its expenditure obligations for the next six months.
The Quarterly Investment Report and Certification for the quarter ending December 31, 2021, are provided as required (Attachments A and B). This report is presented as required and will bring the City current on its reporting requirements. The report has also been posted to the City’s website:
<http://www.stocktongov.com/government/departments/adminServices/finInv.html> The City’s consolidated investment portfolio (market value) was approximately $790 million as of December 31, 2021; this includes the City’s liquidity position, short-term investments and the reserve portfolio (as shown on page 9, Attachment A). The total market value-based earnings for the most recent quarter were ($4,388,281), or -0.56 percent. The market value-based earnings are comprised of interest earned of $1,894,117, a market value decrease of $6,330,547, and the City’s liquid portfolio earnings of $48,149, for the quarter ended December 31, 2021.
DISCUSSION
Background
To comply with state law and city policy, the City is required to present quarterly investment reports detailing the City’s investment portfolio to the City Council, City Manager, and City Auditor. The City also posts monthly transaction reports to the City’s website. The authority of the Council to invest, reinvest funds, sell or exchange securities is delegated to the City’s Chief Financial Officer, who also serves as City Treasurer (Resolution #2021-06-22-1602). Pursuant to the Investment Policy, the City Treasurer may and does delegate some fiduciary responsibility to an outside investment City of Stockton Printed on 2/1/2022Page 1 of 3
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9 File #: 22-0068, Version: 1
management firm. An investment manager’s fiduciary responsibility is a legal requirement related to registration with the Securities and Exchange Commission under the Investment Advisor Act of 1940.
Due to the specialized services and expertise required to assist the City in the varied investment options available, the City contracted with an experienced investment manager, PFM Asset Management LLC (PFM).
Present Situation
The attached report (Attachment A) details the activities of the quarter ended December 31, 2021, and includes detailed information on the holdings of the City’s portfolio on that date. It consists of a certification (Attachment B) that the assets comply with the requirements of State law and City policy and that there is sufficient liquidity to cover the subsequent six months of budgeted activities.
The attached quarterly investment report has been published online along with monthly reports:
http://www.stocktongov.com/government/departments/adminServices/finInv.html Portfolio Balances and Performance
The City divides its investment portfolio into Reserve and Liquid portions with a consolidated market value of approximately $790.0 million as of December 31, 2021. The Reserve portion represents the long-term assets managed by PFM Asset management and the Liquid part represents funds invested in several accounts (State of California Local Agency Investment Fund, California Asset Management Program, Dreyfus Treasury Money Market) to maintain adequate liquidity and optimize returns. The total returns on the consolidated portfolio for the first quarter of the fiscal year were ($4,388,281) or -
0.56%, which includes the change in market value for the reserve portfolio, interest income, (Attachment A, page 14), and the liquid portfolio’s earnings of $48,149. The quarterly return valuation includes funds from all activities, restricted and unrestricted, and includes changes in fair market value (unrealized gains/losses). The return is not netted with the expenses of the pool.
The performance of the reserve portion of the portfolio managed by PFM through December 31, 2021, is benchmarked against the Bank of America Merrill Lynch index of 1-5-year government and U.S. issued corporate securities rated A- or better. The benchmark generally reflects the portfolio’s strategy and composition. City staff works closely with PFM to monitor the status of the City’s investment portfolio and its returns. Over the last quarter, the reserve portion of the City’s portfolio underperformed the performance of the benchmark by -0.05%. For the year, the City’s portfolio return was -0.98%, but with the differing composition (described above), outperformed the benchmark by 0.07% (Attachment A, page 14).
A sharp rise in interest rates during the quarter resulted in negative total return performance for most fixed-income sectors in one-to-five-year maturities. In addition to rising rates, yield spreads (or the difference in yields) between U.S. Treasuries and other sectors widened modestly, as yields on agencies and credit instruments rose faster than Treasuries. While widening yield spreads detracts from the outperformance typically received from sectors outside of Treasuries, the portfolio’s diversification benefited the portfolio’s performance for the quarter, as the portfolio’s negotiable CDs, corporate notes, and asset-backed security holdings outperformed its Treasury holdings. Shorter maturities underperformed longer maturities in the quarter as the yield curve flattened with investors City of Stockton Printed on 2/1/2022Page 2 of 3
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10 File #: 22-0068, Version: 1
focusing more on the potential for faster and more frequent hikes of the Fed Funds Rate than on the potential for troublesome inflation over the medium term. The portfolio’s shorter duration position relative to its benchmark resulted in modest underperformance for the quarter.
The City’s investment portfolio complies with California Government Code 53601. It is invested solely in fixed-income securities (no stock holdings) that, while earning certain rates of interest, gain in market value when interest rates fall and lose market value when interest rates rise. The portfolio’s earnings on a market value basis were negative, as unrealized market value losses due to rising rates were greater than realized earnings. The reserve portfolio yield at cost is 1.12% (Attachment A, page 11) while realizing $1,948,459 of earnings during the quarter (Attachment A, page 16) on an amortized cost basis (this excludes unrealized gains/losses).
The economic outlook remains unclear as once again rising COVID-19 cases and increased public health restrictions may slow consumer spending and ultimately economic growth. Additionally, supply -chain challenges, high inflation, and materials and labor shortages continue to weigh on individual households and business conditions. In 2022, the Federal Reserve is expected to reduce much of its monetary policy accommodations. During the past quarter the Federal Reserve accelerated the pace of its asset purchase tapering and is signaling at least three rate hikes to occur in 2022.
Since quarter end, interest rates have continued to move higher, and the yield curve has steepened.
While rising interest rates detract from market values and total return, they benefit the City as new purchases are made into the higher yielding securities. The steepening of the yield curve is benefiting the City’s portfolio, which currently has a conservative maturity bias heavily weighted in shorter maturities. While this positioning created the underperformance in the most recent quarter, the purchase of higher yielding securities, on longer end of the yield curve, is expected to provide greater returns in the future.
FINANCIAL SUMMARY
There is no financial impact related to the presentation of these reports.
Attachment A - Quarterly Investment Report for the Quarter Ended 12-31-2021 Attachment B - Certification of Quarterly Investment Report for the Quarter Ended 12-31-2021 City of Stockton Printed on 2/1/2022Page 3 of 3
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11 Investment Performance Review
For the Quarter Ended December 31, 2021
Client Management Team PFM Asset Management LLC
Monique Spyke, Managing Director
Allison Kaune, Senior Analyst
Joseph Creason, Portfolio Manager
CITY OF STOCKTON
213 Market Street
Harrisburg,
PA 17101-2141
717-232-2723
1 California Street 10th Floor
San Francisco, CA 94111
415-393-7270
ATTACHMENT A
12 Market Update
© PFM Asset Management LLC | pfmam.com
ATTACHMENT A
13 PFM Asset Management LLC
For the Quarter Ended December 31, 2021
Market Update
Current Market Themes
For the Quarter Ended December
31, 2021
Market Update
© PFM Asset Management LLC | pfmam.com
▹ Rapidly increasing inflation
▹ Improved labor market conditions
▹ Depressed consumer confidence
▹ Accelerated pace of asset purchase tapering
▹ Fed expects three rate hikes i
n 2022
▹ Changing composition of FOMC leadership
▹ Short-term yields shift higher amid rate hike expectations ▹ Longer-term yields adjust t
o evolving inflation and economic growth uncertainties
CITY OF STOCKTON
ATTACHMENT A
14 For the Quarter Ended December 31, 2021
Market Update
U.S. GDP Rebounds from Pandemic
For the Quarter Ended December
31, 2021
Market Update
▸ Persistent damage to supply chains continues to
disrupt the production and distribut
ion network
▸ Age-related impacts to labor force growth predating
the pandemic
▸ Return to more normal household
income and saving
trends
▸ Normalizing fiscal and monet
ary policies
Growth is Expected to Moderate…
Factors Driving Growth…
▸ Better-than-expected corporate profit mar gins fueling equity markets
▸ Unprecedented accommodative monetary policy and
fiscal stimulus
▸ Access to COVID-19 vac
cines and reduction of
pandemic-era lockdowns
▸ C
ontinued adaptation of all sectors of the economy to
the challenging health situation
2.3%
2.9%
2.3%
-3.4%
6.0%
5.2%
2.2% 2.2%
-4.0%
-2.0%
0.0%
2.0%
4.0%
6.0%
8.0%
2017
2018
2019
2020
2021 (Estimate)
2022 (Forecast)
2023 (Forecast)
2024 (Forecast)
Real U.S. GDP
Source: International Monetary Fund, October 2021 World Economic Outlook © PFM Asset Management LLC | pfmam.com
Forecast
CITY OF STOCKTON
ATTACHMENT A
15 PFM Asset Management LLC
For the Quarter Ended December 31, 2021
Market Update
For the Quarter Ended December
31, 2021
Market Update
© PFM Asset Management LLC | pfmam.com
Source: Bloomberg, as of November 2021.
6.8%
4.9%
-3%
-2%
-1%
0%
1%
2%
3%
4%
5%
6%
7%
8%
Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 Top-Line Contributions and Consumer Price Index (year over year) Services (Ex Food & Energy) Goods (Ex Food & Energy) Food Energy Headline YoY% Core YoY%
CITY OF STOCKTON
ATTACHMENT A
16 PFM Asset Management LLC
For the Quarter Ended December 31, 2021
Market Update
For the Quarter Ended December
31, 2021
Market Update
© PFM Asset Management LLC | pfmam.com
Source: Bloomberg, as of 12/10/2021.
0.0%
0.2%
0.4%
0.6%
0.8%
1.0%
1.2%
1.4%
1.6%
1.8%
2.0%
2-Year Treasury Yield
December 31, 2019 – December 31, 2021
0.00%
0.25%
0.50%
0.75%
1.00%
1.25%
1.50%
1.75%
3 M
1 Y
2 Y
3 Y
4 Y
5 Y
10 Y
Maturity
U.S. Treasury Yield Curve
December 31, 2021
September 30, 2021
December 31, 2020
CITY OF STOCKTON
ATTACHMENT A
17 PFM Asset Management LLC
For the Quarter Ended December 31, 2021
Market Update
For the Quarter Ended December
31, 2021
Market Update
© PFM Asset Management LLC | pfmam.com
Source: ICE BofAML 1-5 year Indices via Bloomberg, MarketAxess and PFM as of 12/31/2021. Spreads on ABS and MBS are option-adjusted spreads of 0-5 year indices based on weighted average life; spreads on agencies are relative to comparable maturity Treasuries. CMBS is Commercial Mortgage-Backed Securities. -0.10%
0.00%
0.10%
0.20%
0.30%
0.40%
0.50%
0.60%
Federal Agency Yield Spreads
-0.50%
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
3.00%
3.50%
4.00%
Mortgage-Backed Securities Yield Spreads
Agency MBS AAA CMBS Index
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
Asset-Backed Securities AAA Yield Spreads
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
3.00%
3.50%
4.00%
Corporate Notes A-AAA Yield Spreads
CITY OF STOCKTON
ATTACHMENT A
18 PFM Asset Management LLC
For the Quarter Ended December 31, 2021
Market Update
For the Quarter Ended December
31, 2021
Market Update
© PFM Asset Management LLC | pfmam.com
Rising Rates and Wider Spreads Hampered Fixed -Income Returns in Q4 1-5 Year Indices
-0.68% -0.70%
-0.38%
-0.69% -0.69%
-1.0%
-0.5%
0.0%
0.5%
1.0%
U.S. Treasury
Agency
ABS
Corp A-AAA
Corp BBB
Fourth Quarter 2021
-1.10%
-0.86%
-0.18%
-0.64%
-0.02%
-1.5%
-1.0%
-0.5%
0.0%
0.5%
U.S. Treasury
Agency
ABS
Corp A-AAA
Corp BBB
Full Year 2021
CITY OF STOCKTON
ATTACHMENT A
19 PFM Asset Management LLC
For the Quarter Ended December 31, 2021
Market Update
For the Quarter Ended December 3
1, 2021
Market Update
© PFM Asset Management LLC | pfmam.com
Source: Bloomberg, Federal Reserve Open Market Committee as of 12/10/2021.
May-22
1 Hike
Sep-22
2 Hikes
Dec-22
3 Hikes
Mar-23
4 Hikes
Jun-23
5 Hikes
0.00%
0.50%
1.00%
1.50%
2.00%
Dec-21
Jun-22
Dec-22
Jun-23
Dec-23
Implied Fed Funds Rate
$0
$20
$40
$60
$80
$100
$120
$140
Oct-21
Nov-21
Dec-21
Jan-22
Feb-22
Mar-22
Apr-22
May-22
Jun-22
Billions
Timetable for Tapering Asset Purchases
Prior Estimate Mostly Likely Scenario
(Double Tapering Pace)
▸ In testimony before the Senate Banking Committee, Fed Cha ir Powell indicated that “it is appropriate” to discuss accelerating the tapering of asset purchases to end “a few months sooner.” ▸ Fed fund futures are pricing in two to three rate hikes in 2022. The market is expecting the first interest rate hike by the Federal Reserve in May or June 2022.
CITY OF STOCKTON
ATTACHMENT A
20 Portfolio Review:
CITY OF STOCKTON RESERVE PORTFOLIO
© PFM Asset Management LLC | pfmam.com
ATTACHMENT A
21 CITY OF STOCKTON
For the Quarter Ended December 31, 2021
Account Summary
Account Summary¹
PFM Managed Account $589,319,244
BoW Mai
n Account $120,981,502
CAMP P
ool $81,858
Idle Funds in Reserve $2,881,630
Local Agency Investment $75,000,000
Total Program $790,033,332
Consolidated Summary
Sector Allocation
25.3%
0.0% 0.0% 2.2% 3.5%
19.4% 17.5%
23.3%
8.9%
0.0% 0.0% 0.0%
$0
$50
$100
$150
$200
$250
Millions
Under
30 days
31 to 60
days
61 to 90
days
91 to
180
days
181
days to
1 year
1 to 2
years
2 to 3
years
3 to 4
years
4 to 5
years
5 to 7
years
7 to 10
years
Over 10
years
Maturity Distribution
(Weighted Average Maturity: 718 Days)
Market values , as of December 31, 2021.1.
U.S. Treasury | 41%
Federal Agency | 27%
Corporate | 17%
Negotiable CD | 4%
ABS | 3%
Municipal | 3%
Supranational | 2%
Agency CMBS | 1%
© PFM Asset Management LLC | pfmam.com
Accrued Interest $1,769,099
ATTACHMENT A
22 CITY OF STOCKTON
For the Quarter Ended December 31, 2021
Account Summary
Account Summary
Yield at market, yield on cost, and portfolio duration only include investments held within the separately managed account(s).1.
CITY OF STOCKTON RESERVE PORTFOLIO
Portfolio Values December 31, 2021
PFM Managed Account $589,319,244
Amortized Cost $590,388,489
Market Value $589,319,244
Accrued Interest $1,769,099
Analytics¹ December 31, 2021
Yield at Market 0.95%
Yield on Cost 1.12%
Portfolio Duration 2.48
© PFM Asset Management LLC | pfmam.com
ATTACHMENT A
23 CITY OF STOCKTON
For the Quarter Ended December 31, 2021
Portfolio Snapshot
The portfolio’s benchmark is the ICE BofAML 1-5 Year U.S. Government/Corp A or Better, U.S. issuers only Index. Source: Bloomberg.
An average of each security’s credit rating was assigned a numeric value and adjusted for its relative weighting in the portfolio.
1. Portfolio Statistics
Total Market Value $593,969,972.84
Por
tfolio Effective Duration 2.48 years
Benchmark Effective Duration 2.58 years
Yield At Cost 1.12%
Yield At Market 0.95%
Portfolio Credit Quality AA
Portfolio Snapshot - CITY OF STOCKTON RESERVE PORTFOLIO¹ Credit Quality - S&P
10%
30%
23%
29%
8%
4%
33%
27%
20%
15%
0%
5%
10%
15%
20%
25%
30%
35%
0-1 Yr 1-2 Yrs 2-3 Yrs 3-4 Yrs 4-5 Yrs
Portfolio Benchmark
Duration Distribution
U.S. Treasury | 41%
Federal Agency | 27%
Corporate | 17%
Negotiable CD | 4%
ABS | 3%
Municipal | 3%
Supranational | 2%
Agency CMBS | 1%
Sector Allocation
AAA | 6%
AA+ | 71%
AA | 3%
AA- | 3%
A-1+ | 2%
A+ | 6%
A | 2%
A- | 3%
A-1 | 2%
BBB+ | 2%
Not Rated | 1%
© PFM Asset Management LLC | pfmam.com
ATTACHMENT A
24 CITY OF STOCKTON
For the Quarter Ended December 31, 2021
Portfolio Characteristics
$0
$118
$236
$354
$472
$590
December 2021
$0
$118
$236
$354
$472
$590
September 2021
$0
$118
$236
$354
$472
$590
June 2021
$0
$118
$236
$354
$472
$590
Millions
March 2021
Sector Allocation Review - CITY OF STOCKTON RESERVE PORTFOLIO U.S. Treasury Federal Agency Agency CMBS Supranational Municipal Negotiable CD Corporate ABS Market values, excluding accrued interest. Only includes investments held within the separately managed account(s). Detail may not add to total due to rounding.
Mar-21 % of TotalSecurity Type Jun-21 % of Total Sep-21 % of Total % of TotalDec-21 U.S. Treasury $139.5 25.9% $164.2 30.5% $202.3 35.5% $244.5 41.4% Federal Agency $185.1 34.3% $176.2 32.6% $168.5 29.6% $160.0 27.2% Agency CMBS $15.1 2.8% $13.9 2.6% $12.6 2.2% $8.4 1.4%
Supranational $9.6 1.8% $3.7 0.7% $12.1 2.1% $12.0 2.0% Municipal $17.1 3.2% $17.2 3.2% $17.1 3.0% $16.9 2.9%
Negotiable CD $38.4 7.1% $30.2 5.6% $25.3 4.4% $25.1 4.3% Corporate $110.4 20.5% $111.8 20.7% $109.8 19.3% $102.5 17.4% ABS $23.5 4.4% $22.0 4.1% $22.1 3.9% $19.8 3.4%
Total $538.7 100.0% $539.2 100.0% $569.9 100.0% $589.3 100.0% © PFM Asset Management LLC | pfmam.com
ATTACHMENT A
25 CITY OF STOCKTON
For the Quarter Ended December 31, 2021
Portfolio Activity
Portfolio Activity - CITY OF STOCKTON RESERVE PORTFOLIO Net Activity by Sector
($ millions)
Federal Agency
Corporate
Agency CMBS
ABS
U.S. Treasury
Federal Agency
Corporate
Agency CMBS
A
BS
U.S. Treasury
($20.0) $0.0 $20.0 $40.0 $60.0
Based on total proceeds (principal and accrued interest) of buys, sells, maturities, and principal paydowns. Detail may not add to total due to rounding.
Sector Net Activity
U.S. Treasury $45,109,534
ABS ($2,212,938)
Agency CMBS ($4,110,789)
Corporate ($6,166,693)
Federal Agency ($6,844,104)
Sales/Maturities Purchases
© PFM Asset Management LLC | pfmam.com
ATTACHMENT A
26 CITY OF STOCKTON
For the Quarter Ended December 31, 2021
Portfolio Performance
The lesser of 10 years or since inception is shown. Since inception returns for periods one year or less are not shown. Performance inception date is June 30, 2017.1.
Interest earned calculated as the ending accrued interest less beginning accrued interest, plus net interest activity.2.
Returns for periods one year or less are presented on a periodic basis. Returns for periods greater than one year are presented on an annualized basis.3.
The portfolio’s benchmark is the ICE BofAML 1-5 Year U.S. Government/Corp A or Better, U.S. issuers only Index. Source: Bloomberg.4. -2.0%
-1.0%
0.0%
1.0%
2.0%
3.0%
Return
Portfolio Benchmark Net of Fees
Portfolio Performance
Market Value Basis Earnings 3 Months 1 Year 3 Years 5 Years Since Inception¹ Interest Earned² $1,894,117 $8,042,703 $ 28,552,643 - $39,059,408 Change in Market Value ($6,330,547) ($13,832,669) $8,621,690 - $5,371,281 ($4,436,430)Total Dollar Return ($5,789,966) $37,174,333 - $44,430,689 Total Return³
Portfolio -0.74% -0.98% 2.70% - 2.17%
Benchmark⁴ -0.69% -1.05% 2.55% - 2.02%
Basis Point Fee 0.02% 0.06% 0.05% - 0.05%
Net of Fee Return -0.76% -1.03% 2.64% - 2.12%
3 Months 1 Year 3 Years 5 Years Since Inception
© PFM Asset Management LLC | pfmam.com
ATTACHMENT A
27 CITY OF STOCKTON
For the Quarter Ended December 31, 2021
Portfolio Performance
Performance on trade-date basis, gross (i.e., before fees), in accordance with the CFA Institute’s Global Investment Performance Standards (GIPS).1.
Income returns calculated as interest earned on investments during the period.2.
Price returns calculated as the change in market value of each security for the period.3.
Returns are presented on a periodic basis.4.
Quarterly Sector Performance
Total Return by Sector Contribution to Total Return
0. 0
%
0. 0
%
0. 0
%
0. 0
%
0. 0
%
0. 0
%
0. 0
%Return
Cash
ABS
Corporate
Negotiable CD
Municipal
Supranational
Agency CMBS
Federal Agency
U.S. Treasury
-0.80%
-0.60%
-0.40%
-0.20%
0.00%
0.20%
U.S. Treasury | -0.34%
Federal Agency | -0.23%
Agency CMBS | -0.01%
Supranational | -0.02%
Municipal | -0.03%
Negotiable CD | 0.00%
Corporate | -0.11%
ABS | -0.01%
Cash | 0.00%
Price Returns Income Returns
Return
0.01%
0.34%
0.54%
0.38%
0.35%
0.11%
0.85%
0.19%
0.29%
0.00%
-0.68%
-1.12%
-0.46%
-1.22%
-1.00%
-1.17%
-1.01%
-1.17%
-4.3% -3.0% -1.7% -0.4% 0.9% 2.1%
Return
© PFM Asset Management LLC | pfmam.com
ATTACHMENT A
28 CITY OF STOCKTON
For the Quarter Ended December 31, 2021
Portfolio Performance
The lesser of 10 years or since inception is shown. Performance inception date is June 30, 2017.1.
Interest earned calculated as the ending accrued interest less beginning accrued interest, plus net interest activity.2.
Realized gains / (losses) are shown on an amortized cost basis.3.
Accrual Basis Earnings - CITY OF STOCKTON RESERVE PORTFOLIO Accrual Basis Earnings
Interest Earned
Realized Gains / (
Losses)
Change in Amortized Cost
Total Earnings
3 Months
$1,894,117
$294,754
($240,412)
$1,948,459
1 Year
$8,042,703
$1,251,039
($1,009,2
82)
$8,284,460
3 Years
$28,552,643
$7,320,194
($1,072,8
58)
$34,799,979
5 Year
-
-
-
-
Since Inception
$39,059,408
$5,547,137
$615,517
$45,222,063
© PFM Asset Management LLC | pfmam.com
ATTACHMENT A
29 CITY OF STOCKTON
For the Quarter Ended December 31, 2021
Account Summary
Ratings shown are calculated by assigning a numeral value to each security rating, then calculating a weighted average rating for each security type / issuer category using all available security ratings, excluding Not-Rated (NR) ratings. For security type / issuer categories where a rating from the applicable NRSRO is not available, a rating of NR is assigned. Excludes balances invested in money market funds.
Issuer Diversification
Market Value (%) S&P / Moody's / FitchSecurity Type / Issuer
41.5%U.S. Treasury
UNITED STATES TREASURY 41.5% AA / Aaa / AAA
27.2%Federal Agency
FANNIE MAE 17.3% AA / Aaa / AAA
FEDERAL FARM CREDIT BANKS 1.0% AA / Aaa / AAA
FEDERAL HOME LOAN BANKS 1.4% AA / Aaa / NR
FREDDIE MAC 7.4% AA / Aaa / AAA
1.4%Agency CMBS
FANNIE MAE 0.4% AA / Aaa / AAA
FREDDIE MAC 1.0% AA / Aaa / AAA
2.0%Supranational
INTER-AMERICAN DEVELOPMENT BANK 1.4% AAA / Aaa / AAA
INTL BANK OF RECONSTRUCTION AND DEV 0.6% AAA / Aaa / AAA
2.9%Municipal
CALIFORNIA DEPARTMENT OF WATER
RESOURCES
0.0% AAA / Aa / NR
CALIFORNIA STATE UNIVERSITY 0.2% AA / Aa / NR
FLORIDA STATE BOARD OF ADMIN FIN CORP 0.6% AA / Aa / AA
LOS ANGELES COMMUNITY COLLEGE
DISTRICT
0.3% AA / Aaa / NR
NEW JERSEY TURNPIKE AUTHORITY 0.2% A / A / A
SAN DIEGO COMMUNITY COLLEGE DISTRICT 0.3% AAA / Aaa / NR STATE OF CALIFORNIA 0.8% AA / Aa / AA
STATE OF MARYLAND 0.2% AAA / Aaa / AAA
UNIVERSITY OF CALIFORNIA 0.3% AA / Aa / AA
4.3%Negotiable CD
CREDIT SUISSE GROUP RK 0.7% A / A / A
DNB ASA 0.6% AA / Aa / NR
Market Value (%) S&P / Moody's / FitchSecurity Type / Issuer
4.3%Negotiable CD
NORDEA BANK ABP 1.0% AA / Aa / AA
SKANDINAVISKA ENSKILDA BANKEN AB 1.3% A / Aa / AA
SUMITOMO MITSUI FINANCIAL GROUP INC 0.7% A / Aa / A
17.4%Corporate
AMAZON.COM INC 0.5% AA / A / AA
AMERICAN HONDA FINANCE 0.6% A / A / NR
APPLE INC 1.0% AA / Aaa / NR
BANK OF AMERICA CO 0.6% A / A / AA
CITIGROUP INC 0.5% BBB / A / A
GOLDMAN SACHS GROUP INC 0.7% BBB / A / A
HOME DEPOT INC 0.3% A / A / A
HONEYWELL INTERNATIONAL 0.7% A / A / A
INTEL CORPORATION 0.7% A / A / A
JP MORGAN CHASE & CO 1.1% A / A / AA
MASTERCARD INC 0.8% A / A / NR
MERCK & CO INC 0.8% A / A / A
MICROSOFT CORP 0.9% AAA / Aaa / AAA
MORGAN STANLEY 0.5% BBB / A / A
NOVARTIS AG 1.3% AA / A / AA
PACCAR FINANCIAL CORP 0.1% A / A / NR
PFIZER INC 1.1% A / A / A
THE BANK OF NEW YORK MELLON
CORPORATION
1.2% A / A / AA
TOYOTA MOTOR CORP 0.7% A / A / A
UNITED PARCEL SERVICE INC 0.7% A / A / NR
US BANCORP 1.0% A / A / A
VISA INC 0.3% AA / Aa / NR
© PFM Asset Management LLC | pfmam.com
ATTACHMENT A
30 CITY OF STOCKTON
For the Quarter Ended December 31, 2021
Account Summary
Ratings shown are calculated by assigning a numeral value to each security rating, then calculating a weighted average rating for each security type / issuer category using all available security ratings, excluding Not-Rated (NR) ratings. For security type / issuer categories where a rating from the applicable NRSRO is not available, a rating of NR is assigned. Excludes balances invested in money market funds.
Issuer Diversification
Market Value (%) S&P / Moody's / FitchSecurity Type / Issuer
17.4%Corporate
WAL-MART STORES INC 1.5% AA / Aa / AA
3.4%ABS
CAPITAL ONE FINANCIAL CORP 0.1% AAA / Aaa / AAA
CARMAX AUTO OWNER TRUST 0.8% AAA / NR / AAA
DISCOVER FINANCIAL SERVICES 0.3% AAA / Aaa / NR
HONDA AUTO RECEIVABLES 0.4% AAA / Aaa / AAA
HYUNDAI AUTO RECEIVABLES 0.4% AAA / NR / AAA
NISSAN AUTO RECEIVABLES 0.5% AAA / Aaa / AAA
TOYOTA MOTOR CORP 0.9% AAA / Aaa / NR
100.0%Total
© PFM Asset Management LLC | pfmam.com
ATTACHMENT A
31 CITY OF STOCKTON
For the Quarter Ended December 31, 2021
Compliance
Note: Pre- and post-trade compliance for the account(s) managed by PFM Asset Management is provided via Bloomberg Asset and Investment Management ("AIM").
Certificate of Compliance
During the reporting period for the quarter ended December 31, 2021, the account(s) managed by PFM Asset Management ("PFMAM") were in
compliance with the applicable investment policy and guidelines as furnished to PFMAM.
Acknowledged :PFM Asset Management LLC
© PFM Asset Management LLC | pfmam.com
ATTACHMENT A
32 CITY OF STOCKTON
For the Quarter Ended December 31, 2021
Appendix
Important Disclosures
This material is based on information obtained from sources generally believed to be reliable and available to the public; however, PFM Asset Management LLC cannot guarantee the accuracy, completeness, or suitability of information provided by third party sources. This material is for general information purposes only and is not intended to provide specific advice or a specific recommendation. All statements as to what will or may happen under certain circumstances are based on assumptions, some, but not all of which, are noted in the presentation. Assumptions may or may not be proven correct as actual events occur, and results may depend on events outside of your or our control. Changes in assumptions may have a material effect on results. Past performance does not necessarily reflect and is not a guaranty of future results. The information contained in this presentation is not an offer to purchase or sell any securities.
Market values that include accrued interest are derived from closing bid prices as of the last business day of the month as supplied by Refinitiv or Bloomberg. Where prices are not available from generally recognized sources, the securities are priced using a yield-based matrix system to arrive at an estimated market value.
In accordance with generally accepted accounting principles, information is presented on a trade date basis; forward settling purchases are included in the monthly balances, and forward settling sales are excluded.
Performance is presented in accordance with the CFA Institute's Global Investment Performance Standards (GIPS). Unless otherwise noted, performance is shown gross of fees. Quarterly returns are presented on an unannualized basis. Returns for periods greater than one year are presented on an annualized basis. Past performance is not indicative of future returns.
Bank of America/Merrill Lynch Indices provided by Bloomberg Financial Markets.
Money market fund/cash balances are included in performance and duration computations.
Standard & Poor's is the source of the credit ratings. Distribution of credit rating is exclusive of money market fund/LGIP holdings.
Callable securities in the portfolio are included in the maturity distribution analysis to their stated maturity date, although, they may be called prior to maturity.
MBS maturities are represented by expected average life. © PFM Asset Management LLC | pfmam.com
ATTACHMENT A
33 CITY OF STOCKTON
For the Quarter Ended December 31, 2021
Appendix
Glossary
Accrued Interest: Interest that is due on a bond or other fixed income security since the last interest payment was made.
Agencies: Federal agency securities and/or Government-sponsored enterprises.
Amortized Cost: The original cost of the principal of the security is adjusted for the amount of the periodic reduction of any discount or premium from the purchase date until the date of the report. Discount or premium with respect to short-term securities (those with less than one year to maturity at time of issuance) is amortized on a straight line basis. Such discount or premium with respect to longer-term securities is amortized using the constant yield basis.
Asset-Backed Security: A financial instrument collateralized by an underlying pool of assets – usually ones that generate a cash flow from debt, such as loans, leases, credit card balances, and receivables.
Bankers’ Acceptance: A draft or bill or exchange accepted by a bank or trust company. The accepting institution guarantees payment of the bill as well as the insurer.
Commercial Paper: An unsecured obligation issued by a corporation or bank to finance its short-term credit needs, such as accounts receivable and inventory.
Contribution to Total Return: The weight of each individual security multiplied by its return, then summed for each sector to determine how much each sector added or subtracted from the overall portfolio performance.
Effective Duration: A measure of the sensitivity of a security’s price to a change in interest rates, stated in years.
Effective Yield: The total yield an investor receives in relation to the nominal yield or coupon of a bond. Effective yield takes into account the power of compounding on investment returns, while nominal yield does not.
FDIC: Federal Deposit Insurance Corporation. A federal agency that insures bank deposits to a specified amount.
Interest Rate: Interest per year divided by principal amount and expressed as a percentage.
Market Value: The value that would be received or paid for an investment in an orderly transaction between market participants at the measurement date.
Maturity: The date upon which the principal or stated value of an investment becomes due and payable.
Negotiable Certificates of Deposit: A CD with a very large denomination, usually $1 million or more, that can be traded in secondary markets.
Par Value: The nominal dollar face amount of a security.
Pass-through Security: A security representing pooled debt obligations that passes income from debtors to its shareholders. The most common type is the mortgage-backed security.
© PFM Asset Management LLC | pfmam.com
ATTACHMENT A
34 CITY OF STOCKTON
For the Quarter Ended December 31, 2021
Appendix
Glossary
Repurchase Agreements: A holder of securities sells these securities to an investor with an agreement to repurchase them at a fixed price on a fixed date.
Settle Date: The date on which the transaction is settled and monies/securities are exchanged. If the settle date of the transaction (i.e., coupon payments and maturity proceeds) occurs on a non-business day, the funds are exchanged on the next business day.
Supranational: A multinational union or association in which member countries cede authority and sovereignty on at least some internal matters to the group, whose decisions are binding on its members.
Trade Date: The date on which the transaction occurred; however, the final consummation of the security transaction and payment has not yet taken place.
Unsettled Trade: A trade which has been executed; however, the final consummation of the security transaction and payment has not yet taken place.
U.S. Treasury: The department of the U.S. government that issues Treasury securities.
Yield: The rate of return based on the current market value, the annual interest receipts, maturity value, and the time period remaining until maturity, stated as a percentage on an annualized basis.
YTM at Cost: The yield to maturity at cost is the expected rate of return based on the original cost, the annual interest receipts, maturity value, and the time period from purchase date to maturity, stated as a percentage on an annualized basis.
YTM at Market: The yield to maturity at market is the rate of return based on the current market value, the annual interest receipts, maturity value, and the time period remaining until maturity, stated as a percentage on an annualized basis. © PFM Asset Management LLC | pfmam.com
ATTACHMENT A
35 �
CITY OF STOCKTON
ADMINISTRATIVE SERVICES
City Hall• 425 N. El Dorado Street • Stockton, CA 95202-1997 • 209 / 937-8460 • Fax 209 / 937-8844 www.stocktongov.com
January 17, 2022
SUBJECT CERTIFICATION OF QUARTERLY INVESTMENT
REPORT FOR QUARTER ENDED DECEMBER 31, 2021
I hereby certify:
1) All investment actions executed since the last quarterly report have been made in full compliance with California Government Code (CGC) 53601; and 2) That the City of Stockton will meet its expenditure obligations for the next six months, as described in CGC 53646(b)(2) and (3) respectively.
JAY KAPOOR
CHIEF FINANCIAL OFFICER
ATTACHMENT B
36 City of Stockton
Legislation Text
File #: 22-0133, Version: 1
APPROVAL OF CITY COUNCIL MINUTES
RECOMMENDATION
Approve the minutes from the Special City Council meeting of November 30, 2021 and the City Council meeting of January 11, 2022.
Attachment A - 2021-11-30 Minutes - Special
Attachment B - 2022-01-11Minutes
City of Stockton Printed on 2/1/2022Page 1 of 1
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37 Attachment A
38 Attachment A
39 Attachment B
40 Attachment B
41 Attachment B
42 Attachment B
43 Attachment B
44 Attachment B
45 Attachment B
46 Attachment B
47 Attachment B
48 Attachment B
49 Attachment B
50 Attachment B
51 City of Stockton
Legislation Text
File #: 22-0085, Version: 1
ADOPT A RESOLUTION TO APPLY FOR, ACCEPT, AND APPROPRIATE GRANT FUNDING
FROM THE STATE OF CALIFORNIA - HOMELESS COORDINATING AND FINANCING COUNCIL (HCFC), BUSINESS, CONSUMER SERVICES AND HOUSING AGENCY (BCSH), OF THE FIRST
ALLOCATION OF ROUND THREE OF THE HOMELESS HOUSING, ASSISTANCE AND PREVENTION (HHAP) GRANT PROGRAM.
RECOMMENDATION
It is recommended that the City Council adopt a resolution to:
1. Approve and accept the HHAP 3 initial funding allocation of $1,578,653.95:
2. Approve and authorize the execution of the HHAP 3 funding Standard Agreement with BCSH accepting the initial grant funding disbursement.
3. Authorize the City Manager, or designee, to enter a Standard Agreement/Initial Disbursement Contract for funds with all its exhibits or other necessary documents consistent with the resolution.
4. Authorize the City Manager to enter a contract with a consultant for the development of an action plan required to apply for the second allocation of round three HHAP funding.
5. Authorize the City Manager, or designee, to take appropriate and necessary actions to carry out this resolution's purpose and intent
Summary
The general purpose HHAP 3 funding is designed to build on regional coordination developed through previous rounds of HCFC Homeless Emergency Aid Program (HEAP), HHAP, and COVID-19 funding. Round 3 funds should be used to continue to build regional coordination and a unified regional response to reduce and end homelessness informed by a best-practices framework focused on moving homeless individuals and families into permanent housing and supporting the efforts of those individuals and families to maintain their permanent housing. To successfully reduce homelessness through this funding, the initial disbursement is explicit in its functionality and deliverables and discussed in detail in the next section.
DISCUSSION
Background
On December 17, 2021, the HCFC and BCSH issued a Notice of Funding Availability (NOFA) for their City of Stockton Printed on 2/1/2022Page 1 of 2
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52 File #: 22-0085, Version: 1
HHAP 3 program established under Assembly Bill 140 (Health & Safety Code § 50218.6, et seq.), which was signed into law by Governor Gavin Newsom on July 19, 2021, for approximately $1 billion in available funding.
Applicants must meet the following requirements prior to submitting a final application for HHAP Round 3 funding pursuant to Health and Safety Code Section 50220.7(b)(1)-(3), by June 30, 2022:
a) The applicant must engage with HCFC on its local homelessness action plan and outcome goals before submitting a complete application; and
b) The applicant must submit its local homelessness action plan and approved outcome goals that were agendized at a regular meeting of the governing body, and included receiving public comment, before being submitted to HCFC.
Present Situation
The previous HHAP rounds of funding are aligned with the San Joaquin Community Response to Homelessness, which is a strategic plan developed by the City of Stockton in partnership with the County of San Joaquin and the San Joaquin Continuum of Care. HHAP 3’s initial disbursement of funds will allow for the procurement of a contractor to augment staff’s capacity to ensure compliance with State regulations and all grant application requirements.
Staff is recommending that the City Council approve the acceptance and execution of the HHAP 3 initial funding Standard Agreement in the amount of $1,578,653.95 (Exhibit 1 to the Resolution - HHAP3 Standard Agreement) between the City and the State and authorize the initial disbursement of funds consistent with the HHAP program intent and priorities identified in the Homelessness Strategic Plan.
Staff will bring the HHAP 3 application and action plan to Council to conduct a public hearing for final approval prior to the June 30 deadline.
FINANCIAL SUMMARY
There is no financial impact to the City's General Fund or any other unrestricted fund as a result of this action. HHAP 3 grant funding will be appropriated in the Special Grant Fund, Housing Division, and EDD Administration program.
City of Stockton Printed on 2/1/2022Page 2 of 2
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53 Resolution No.
STOCKTON CITY COUNCIL
RESOLUTION AUTHORIZING THE CITY TO APPLY FOR, ACCEPT, AND
APPROPRIATE GRANT FUNDING FROM THE STATE OF CALIFORNIA - HOMELESS
COORDINATING AND FINANCING COUNCIL (HCFC), BUSINESS, CONSUMER
SERVICES AND HOUSING AGENCY (BCSH), OF THE FIRST ALLOCATION OF
ROUND THREE OF THE HOMELESS HOUSING, ASSISTANCE , AND PREVENTION (HHAP) GRANT PROGRAM, AND TO ENTER INTO A CONTRACT WITH A
CONSULTANT FOR THE DEVELOPMENT OF AN ACTION PLAN REQUIRED TO
APPLY FOR SECOND ALLOCATION OF THE ROUND THREE HHAP FUNDS
On December 17, 2021, the HCFC and BCSH issued a Notice of Funding Availability (NOFA) for their HHAP 3 program established under Assembly Bill 140 (Health & Safety Code § 50218.6, et seq.), which was signed into law by Governor Gavin Newsom on July 19, 2021, for approximately $1 billion in available funding; and
The following requirements must be met prior to submitting a final application for HHAP Round 3 funding pursuant to Health and Safety Code section 50220.7(b)(1)-(3), by June 30, 2022:
1. The applicant must engage with HCFC on its local homelessness action plan and outcome goals before submitting a complete application; and
2. The applicant must submit its local homelessness action plan and approved outcome goals that were agendized at a regular meeting of the governing body, and included receiving public comment, before being submitted to HCFC; and
The previous HHAP rounds of funding are aligned with the San Joaquin Community Response to Homelessness, which is a strategic plan developed by the City of Stockton in partnership with the County of San Joaquin and the San Joaquin Continuum of Care.
HHAP 3’s initial disbursement of funds will all ow for the procurement of a contractor to augment staff’s capacity to ensure compliance with State regulations and all grant application requirements, and
The general purpose HHAP 3 funding is designed to build on regional coordination developed through previous rounds of HCFC Homeless Emergency Aid Program (HEAP), HHAP, and COVID-19 funding. Round 3 funds should be used to reduce homelessness informed by a best -practices framework focused on moving homeless individuals and families into permanent housing and supporting the efforts of those individuals and families to maintain their permanent housing. To successfully reduce homelessness through this funding, the initial disbursement is explicit in its functionality and deliverables; now, therefore,
54 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF STOCKTON, AS FOLLOWS:
1. Approve and accept the HHAP 3 initial funding allocation of $1,578,653.95.
2. Approve and authorize the execution of the HHAP 3 funding Standard Agreement with BCSH accepting the initial gran t funding disbursement, a copy of which is attached hereto as Exhibit 1 and incorporated herein by this reference.
3. Authorize the City Manager, or designee, to enter a Standard Agreement/Initial Disbursement Contract for funds with all its exhibits and other necessary documents consistent with the resolution.
4. Authorize the City manager to enter into a contract with a consultant for the development of an action plan required to apply for the second allocation of round three HHAP funding.
5. The City Manager is hereby authorized to take whatever actions are necessary and appropriate to carry out the purpose and intent of this Resolution.
PASSED, APPROVED, and ADOPTED February 8, 2022 .
KEVIN J. LINCOLN II
Mayor of the City of Stockton
ATTEST:
ELIZA R. GARZA, CMC
City Clerk of the City of Stockton
55 EXHIBIT 1
56 EXHIBIT 1
57 Homeless Housing, Assistance, and Prevention Program Round 3 (HHAP-3) Standard Agreement
Initial Disbursement Contract for Funds
EXHIBIT A
AUTHORITY, PURPOSE AND SCOPE OF WORK
1) Authority
The State of California has established the Homeless Housing, Assistance, and Prevention Program Round 3 (“HHAP-3” or “Program”) pursuant to Chapter 6 (commencing with Section 50216) of Part 1 of Division 31 of the Health and Safety Code. (Amended by Stats. 2021, Ch. 111, Sec. 4. (AB 140) Effective July 19, 2021.) The Program is administered by the California Homeless Coordinating and Financing Council (“HCFC”) in the Business, Consumer Services and Housing Agency (“Agency”). HHAP-3 provides flexible block grant funds to Continuums of Care, large cities (population of 300,000+) and counties to build on the regional coordination created through previous HCFC grant funding and support local jurisdictions in their unified regional responses to reduce and end homelessness.
This Standard Agreement/Initial Disbursement Contract for Funds along with all its exhibits (“Agreement”) is entered into by the Agency and a Continuum of Care, a city, or a county (“Grantee”) under the authority of, and in furtherance of the purpose of, the Program. In signing this Agreement and thereby accepting this award of funds, the Grantee agrees to comply with the terms and conditions of this Agreement, the Standard Agreement to Apply signed and submitted by the Grantee (Exhibit F), and the requirements appearing in the statutory authority for the Program cited above.
2) Purpose
The general purpose of the Program is to continue to build on regional coordination developed through previous rounds of funding of the Homelessness Emergency Aid Program (Chapter 5 (commencing with Section 50210)), the program established under this chapter, and COVID-19 funding to reduce homelessness. This funding shall:
a) Continue to build regional collaboration between continuums of care, counties, and cities in a given region, regardless of population, and ultimately be used to develop a unified regional response to homelessness.
b) Be paired strategically with other local, state, and federal funds provided to address homelessness in order to achieve maximum impact. Grantees of this funding are encouraged to reference Putting the Funding Pieces Together: Guide City of Stockton
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58 to Strategic Uses of New and Recent State and Federal Funds to Prevent and End Homelessness in their planning efforts.
c) Be deployed with the goal of reducing the number of people experiencing homelessness in a given region through investing in long-term solutions, such as permanent housing.
d) Include the State as an integral partner through the provision of technical assistance, sharing of best practices, and implementing an accountability framework to guide the structure of current and future state investments.
In accordance with the authority cited above, a Standard Agreement to Apply was submitted by the Grantee for the initial disbursement of HHAP-3 funds to be allocated to the Grantee pursuant to Health and Safety Code 50220.7(a)(4)(A). 3) Definitions
The following HHAP-3 program terms are defined in accordance with Health and Safety Code section 50216, subdivisions (a) – (r):
a) “Agency” means the Business, Consumer Services, and Housing Agency. b) “Applicant” means a Continuum of Care, city, or county. c) “City” means a city or city and county that is legally incorporated to provide local government services to its population. A city can be organized either under the general laws of this state or under a charter adopted by the local voters. d) “Continuum of Care” means the same as defined by the United States Department of Housing and Urban Development at Section 578.3 of Title 24 of the Code of Federal Regulations.
e) “Coordinated Entry System” means a centralized or coordinated process developed pursuant to Section 578.7 of Title 24 of the Code of Federal Regulations, as that section read on January 10, 2019, designed to coordinate homelessness program participant intake, assessment, and provision of referrals. In order to satisfy this subdivision, a centralized or coordinated assessment system shall cover the geographic area, be easily accessed by individuals and families seeking housing or services, be well advertised, and include a comprehensive and standardized assessment tool.
f) “Council” means the Homeless Coordinating and Financing Council created pursuant to Section 8257 of the Welfare and Institutions Code. g) “Emergency shelter” has the same meaning as defined in subdivision (e) of Section 50801.
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59 h) “Homeless” has the same meaning as defined in Section 578.3 of Title 24 of the Code of Federal Regulations, as that section read on January 10, 2019. i) “Homeless Management Information System” means the information system designated by a Continuum of Care to comply with federal reporting requirements as defined in Section 578.3 of Title 24 of the Code of Federal Regulations. The term “Homeless Management Information System” also includes the use of a comparable database by a victim services provider or legal services provider that is permitted by the federal government under Part 576 of Title 24 of the Code of Federal Regulations.
j) “Homeless point-in-time count” means the 2019 homeless point-in-time count pursuant to Section 578.3 of Title 24 of the Code of Federal Regulations. A jurisdiction may elect to instead use their 2017 point-in-time count if they can demonstrate that a significant methodology change occurred between the 2017 and 2019 point-in-time counts that was based on an attempt to more closely align the count with HUD best practices and undertaken in consultation with HUD representatives. A jurisdiction shall submit documentation of this to the agency by the date by which HUD’s certification of the 2019 homeless point-in-time count is finalized. The agency shall review and approve or deny a request described in the previous sentence along with a jurisdiction’s application for homeless funding. k) “Homeless youth” means an unaccompanied youth between 12 and 24 years of age, inclusive, who is experiencing homelessness, as defined in subsection (2) of Section 725 of the federal McKinney-Vento Homeless Assistance Act (42 U.S.C.
Sec. 11434a(2)). “Homeless youth” includes unaccompanied youth who are pregnant or parenting.
l) “Housing First” has the same meaning as in Section 8255 of the Welfare and Institutions Code, including all of the core components listed therein. m) “Jurisdiction” means a city, city that is also a county, county, or Continuum of Care, as defined in this section.
n) “Navigation center” means a Housing First, low-barrier, service-enriched shelter focused on moving homeless individuals and families into permanent housing that provides temporary living facilities while case managers connect individuals experiencing homelessness to income, public benefits, health services, shelter, and housing.
o) “Program” means the Homeless Housing, Assistance, and Prevention program established pursuant to this chapter.
1) “Round 1” of the program means the funding allocated under the program with moneys appropriated during the fiscal year beginning on July 1, 2019.
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60 2) “Round 2” of the program means the funding allocated under the program with moneys appropriated during the fiscal year beginning on July 1, 2020. 3) “Round 3” of the program means the funding allocated under the program with moneys appropriated during the fiscal year beginning on July 1, 2021. 4) “Round 4” of the program means the funding allocated under the program with moneys appropriated during the fiscal year beginning on July 1, 2022. p) “Program allocation” means the portion of program funds available to expand or develop local capacity to address immediate homelessness challenges. q) “Recipient” means a jurisdiction that receives funds from the agency for the purposes of the program.
r) “Tribe” or “tribal applicant” means a federally recognized tribal government pursuant to Section 4103 of Title 25 of the United States Code.
Additional definitions for the purposes of the HHAP-3 program:
“Obligate” means that the Grantee has placed orders, awarded contracts, received services, or entered into similar transactions that require payment using HHAP-3 funding. Grantees, and the subrecipients who receive awards from those Grantees, must obligate the funds by the statutory deadlines set forth in this Exhibit A. “Expended” means all HHAP-3 funds obligated under contract or subcontract have been fully paid and receipted, and no invoices remain outstanding. 4) Scope of Work
The Scope of Work (“Work”) for this Agreement shall include uses that are consistent with Health and Safety Code (HSC) section 50218.6, subdivision (e), and section 50220.7, subdivisions (a)(4)-(5) & (f), and any other applicable laws.
By accepting these funds, the Grantee acknowledges that this initial disbursement of funds is a portion of their total allocation under the HHAP-3 Program, to be used solely for the purposes outlined below, and that in order to receive the remaining balance of its HHAP-3 program allocation, an applicant shall submit an application to the council by June 30, 2022, that includes a local homelessness action plan and specific outcome goals in accordance with the requirements laid out in HSC § 50220.7(b).
The Grantee may expend this initial disbursement of funds to complete the local homelessness action plan, required by HSC § 50220.7(b)(3)(A), including paying for any technical assistance or contracted entities to support the completion of the homelessness action plan.
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61 For funds not spent on the Grantee’s homelessness action plan, priority for these initial funds shall be for systems improvement, including, but not limited to, all of the following:
A) Capacity building and workforce development for service providers within the jurisdiction, including removing barriers to contracting with culturally specific service providers and building capacity of providers to administer culturally specific services.
B) Funding existing evidence-based programs serving people experiencing homelessness.
C) Investing in data systems to meet reporting requirements or strengthen the recipient’s Homeless Management Information System.
D) Improving homeless point-in-time counts.
E) Improving coordinated entry systems to eliminate racial bias or to create a youth- specific coordinated entry system.
For any remaining funds not spent on the Grantee’s homelessness action plan or systems improvement, the Grantee shall expend funds on existing evidence-based programs serving people experiencing homelessness among eligible populations, including any of the following eligible uses:
a) Rapid rehousing, including rental subsidies and incentives to landlords, such as security deposits and holding fees.
b) Operating subsidies in new and existing affordable or supportive housing units, emergency shelters, and navigation centers. Operating subsidies may include operating reserves.
c) Street outreach to assist persons experiencing homelessness to access permanent housing and services.
d) Services coordination, which may include access to workforce, education, and training programs, or other services needed to promote housing stability in supportive housing.
e) Systems support for activities necessary to create regional partnerships and maintain a homeless services and housing delivery system, particularly for vulnerable populations including families and homeless youth. f) Delivery of permanent housing and innovative housing solutions, such as hotel and motel conversions.
g) Prevention and shelter diversion to permanent housing, including rental subsidies.
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62 h) New navigation centers and emergency shelters based on demonstrated need.
Demonstrated need for purposes of this paragraph shall be based on the following:
i) The number of available shelter beds in the city, county, or region served by a Continuum of Care.
ii) The number of people experiencing unsheltered homelessness in the homeless point-in-time count.
iii) Shelter vacancy rate in the summer and winter months. iv) Percentage of exits from emergency shelters to permanent housing solutions. v) A plan to connect residents to permanent housing.
vi) Any new interim sheltering funded by HHAP-3 funds must be low barrier, comply with Housing First as provided in Chapter 6.5 (commencing with Section 8255) of Division 8 of the Welfare and Institutions Code, and prioritize interventions other than congregate shelters.
i) Improvements to existing emergency shelters to lower barriers and increase privacy.
In addition to the funding use requirements described above, the Grantee’s expenditure of its entire HHAP-3 allocation must also comply with the following:
a) At least 10 percent of the funds shall be spent on services for homeless youth populations.
b) Not more than 7 percent of funds may be used for administrative costs incurred by the city, county, or continuum of care to administer its program allocation. For purposes of this Agreement, “administrative costs” does not include staff or other costs directly related to implementing activities funded by the program allocation. 5) Agency Contract Coordinator
The Agency’s Contract Coordinator for this Agreement is the Council’s Grant Director or the Grant Director’s designee. Unless otherwise instructed, any notice, report, or other communication requiring an original Grantee signature for this Agreement shall be mailed to the Agency Contract Coordinator. If there are opportunities to send information electronically, Grantee will be notified via email by the Council’s Grant Director or the Grant Director’s designee.
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63 The Representatives during the term of this Agreement will be:
PROGRAM GRANTEE
ENTITY: Business Consumer Services and
Housing Agency
SECTION/UNIT: Homeless Coordinating and
Financing Council (HCFC)
ADDRESS: 915 Capitol Mall Suite 350-A
Sacramento, CA, 95814
CONTRACT
COORDINATOR Victor Duron
PHONE NUMBER: (916) 510-9442
EMAIL ADDRESS: [email protected]
All requests to update the Grantee information listed within this Agreement shall be emailed to the HHAP Program’s general email box at [email protected]. The Council reserves the right to change their representative and/or contact information at any time with notice to the Grantee.
Effective Date, Term of Agreement, and Deadlines
D
This Agreement is effective upon approval by the Agency (indicated by the signature provided by Agency in the lower left section of page one, Standard Agreement, STD. 213), when signed by all parties.
E
This Agreement shall terminate on October 1, 2026, or upon delivery of the HHAP-3 final report required by HSC § 50223(b), whichever is sooner.
F
Grantee shall submit an application for the remainder of their HHAP-3 allocation by June 30, 2022 in compliance with HSC § 50220.7(b).
G
Grantee shall report on the activities funded pursuant this Agreement in the first expenditure report submitted to the Council after disbursement of the remaining funds, as required by HSC §§ 50221 and 50223.
H
Grantees that are cities or continuums of care shall contractually obligate no less than 50 percent of HHAP- funds by May 31, 2024. If less than 50 percent is obligated after May 31, 2024, continuums of care and cities shall not expend any remaining portion of the 50 percent of program allocations required to have been obligated unless and until both of the following occur:
City of Stockton
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Development Department
400 E. Main Street, 4th Floor, Stockton, CA
95202
Ty Wilson-Robinson
(209) 937-7585
[email protected]
EXHIBIT 1
64 i) On or before June 30, 2024, the Grantee submits an alternative disbursement plan to HCFC that includes an explanation for the delay. ii) HCFC approves the alternative disbursement plan or provides the Grantee with guidance on the revisions needed in order to approve the alternative disbursement plan.
iii) If the funds identified in the approved alternative disbursement plan are not fully expended by December 31, 2024, the funds shall be returned to the HCFC to be allocated as bonus awards.
I
Grantees that are counties shall contractually obligate the full allocation (100 percent) awarded to them by May 31, 2024. Any funds that are not contractually obligated by this date shall be reverted to the Continuum of Care that serves the county. Specific to Los Angeles County, funds that are not contractually obligated by this date shall be divided proportionately using the HHAP-3 funding allocation formula among the four CoC’s that serve Los Angeles County: City of Glendale CoC, City of Pasadena CoC, the City of Long Beach CoC, and the Los Angeles Homeless Services Authority.
Counties not obligating their full program allocation by May 31, 2024 are required to notify HCFC, on or before that date, of the name of the CoC(s) in which the county is served, and the amount of program funds that will be reverted to the CoC(s). By June 30, 2024, the county shall provide HCFC with evidence that the funds were transferred and submit an updated budget that clearly identifies the funds that were transferred.
J
Grantees that do not meet the expenditure deadlines in HSC § 50220.7(k) shall not be eligible for bonus funding.
K
HHAP- funds shall be expended by June 30, 2026
L
In accordance with Health and Safety Code section 50220.5, subdivision (l), HCFC retains the right to require a corrective action plan of grantees that are not on track to fully expend funds by the statutorily required deadline.
M
Any funds not expended by June 30, 2026 shall be available for round 4 of the program pursuant to HSC § 50218.7.
7) Special Conditions
Agency reserves the right to add any special conditions to this Agreement it deems necessary to ensure that the goals of the Program are achieved.
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65 Homeless Housing, Assistance, and Prevention Program Round (HHAP-) Standard Agreement
EXHIBIT B
BUDGET DETAIL and DISBURSEMENT PROVISIONS
Budget Detail & Changes
The Grantee agrees that HHAP-3 funds shall be expended on uses that support regional coordination and expand or develop local capacity to address immediate homelessness challenges. Such activities must be informed by a best-practices framework focused on moving people experiencing homelessness into permanent housing and supporting the efforts of those individuals and families to maintain their permanent housing.
The Grantee shall expend this initial disbursement of HHAP-3 funds on eligible activities as detailed in Health and Safety Code Section 50220.7, subdivisions (a)(4)(B), (a)(5), (e), and (f).
General CondLWLRQV3ULRUWR'LVEXUVHPHQW
All Grantees PXVWVXEPLWWKHIROORZLQJIRUPVௗSULRUWRௗHHAP-ௗIXQGVEHLQJUHOHDVHG
x Request for Funds )RUPௗ
³5))´
x STD 213 Standard Agreement form and initialed Exhibits A through F x STD 204 Payee Data Record or Government Agency Taxpayer ID Form
Disbursement of Funds
HHAP-3 funds will be disbursed to the Grantee upon receipt, review and approval of the completed Standard Agreement and RFF by Agency, the Department of General Services (DGS) and the State Controller’s Office (SCO).
The RFF must include the proposed eligible uses and the amount of funds proposed for expenditure under each eligible use. This initial disbursement of HHAP-3 funds will be disbursed in one allocation via mailed check once the RFF has been received by the SCO. Checks will be mailed to the address and contact name listed on the RFF. Grantee agrees that in order to receive the remaining balance of the allocation awarded to them pursuant HSC § 50218.6(a)(1), Grantee must submit an application that meets the requirements of HSC § 50220.7(b) and this application must be approved by HCFC prior to a second disbursement of funds. Additionally, Grantee ZLOOEHUHTXLUHGWRHQWHULQWRDVHSDUDWH6WDQGDUG$JUHHPHQWLQRUGHUWRUHFHLYHWKHLU UHPDLQLQJDOORFDWLRQ
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66 4) ([SHQGLWXUHRI)XQGV
This initial disbursement of HHAP-3 funds must be spent in accordance with HSC sections 50218.6(e) and 50220.7, subdivisions (a)(4)(B), (a)(5), (e), and (f), as described in Exhibit A, Section 4 “Scope of Work”.
5) ,QHOLJLEOH&RVWV
HHAP-3 funds shall not be used for costs associated with activities in violation of any law or for any activities not consistent with the intent of the Program and the eligible uses identified in Health and Safety Code section 50220.7, subdivisions (a)(4)(B), (a)(5), (e), and (f).
HCFC reserves the right to request additional clarifying information to determine the reasonableness and eligibility of all uses of the funds made available by this Agreement. If the Grantee or its funded subrecipients use HHAP-3 funds to pay for ineligible activities, the Grantee shall be required to reimburse these funds to Agency.
An expenditure which is not authorized by this Agreement, or by written approval of the Grant Manager or his/her designee, or which cannot be adequately documented, VKDOOEHGLVDOORZHGDQGPXVWௗEHUHLPEXUVHGWRௗ$JHQF\ௗE\WKHௗ*UDQWHH HCFC, at its sole and absolute discretion, shall make the final determination regarding the allowability of HHAP-3 fund expenditures.
Program funds shall not be used to supplant existing local funds for homeless housing, assistance, or prevention.
Reimbursements are not permitted in HHAP-3 for any expenditures prior to the date of execution of this Agreement.
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67 Homeless Housing, Assistance, and Prevention Program Round (HHAP-) Standard Agreement
EXHIBIT C
GENERAL TERMS AND CONDITIONS
1) Termination and Sufficiency of Funds
a) Termination of Agreement
Agency may terminate this Agreement at any time for cause by giving a minimum of 14 days’ notice of termination, in writing, to the Grantee. Cause shall consist of violations of any conditions of this Agreement, any breach of contract as described in paragraph 6 of this Exhibit C; violation of any federal or state laws; or withdrawal of Agency’s expenditure authority. Upon termination of this Agreement, unless otherwise approved in writing by Agency, any unexpended funds received by the Grantee shall be returned to Agency within 30 days of Agency’s notice of termination.
b) Sufficiency of Funds
7KLV$JUHHPHQWLVYDOLGDQGHQIRUFHDEOHRQO\LIௗVXIILFLHQWௗIXQGVDUHPDGH available to Agency by legislative appropriation. In addition, this Agreement is subject to any additional restrictions, limitations or conditions, or statutes, regulations or any other laws, whether federal or those of the State of California, or of any agency, department, or any political subdivision of the federal or State of California governments, which may affect the provisions, terms or funding of this Agreement in any manner.
2) 7UDQVIHUV
Grantee may not transfer or assign by subcontract or novation, or by any other means, the rights, duties, or performance of this Agreement or any part thereof, except as allowed within Exhibit C Section 12 (Special Conditions – Grantees/Sub Grantee) or with the prior written approval of HCFC and a formal amendment to this Agreement to affect such subcontract or novation.
3) *UDQWHH¶V$SSOLFDWLRQIRU)XQGV
Pursuant to HSC § 50220.7(a)(1), Grantee is required to submit to HCFC an application for the remainder of their HHAP-3 allocation to support regional coordination and expand or develop local capacity to address its immediate homelessness challenges.
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68 4) Reporting/Audits
a) Reporting Requirements
i) Activities funded under this Agreement shall be reported on in the first expenditure report submitted to HCFC following the disbursement of the remaining funds. If the Grantee fails to provide such documentation, HCFC may recapture any portion of the amount authorized by this Agreement with a 14-day written notification.
ii) Grantee is also required to comply with the reporting requirements in HSC § 50221 and 50223, as applicable
b) Auditing
Agency reserves the right to perform or cause to be performed a financial audit.
At Agency request, the Grantee shall provide, at its own expense, a financial audit prepared by a certified public accountant. HHAP-3 administrative funds may be used to fund this expense. Should an audit be required, the Grantee shall adhere to the following conditions:
i) The audit shall be performed by an independent certified public accountant. ii) The Grantee shall notify Agency of the auditor's name and address immediately after the selection has been made. The contract for the audit shall allow access by Agency to the independent auditor's ZRUNLQJSDSHUV iii) The Grantee is responsible for the completion of audits and all costs of SUHSDULQJDXGLWV
iv) If there are audit findings, the Grantee must submit a detailed response acceptable to Agency for each audit finding within 90 days from the date of WKHDXGLWILQGLQJUHSRUW
5) ,QVSHFWLRQDQG5HWHQWLRQRI5HFRUGV
a) Record Inspection
HCFC or its designee shall have the right to review, obtain, and copy all records and supporting documentation pertaining to performance under this Agreement.
The Grantee agrees to provide HCFC, or its designee, with any relevant information requested. The Grantee agrees to give HCFC or its designee access to its premises, upon reasonable notice and during normal business hours, for the purpose of interviewing employees who might reasonably have information related to such records, and of inspecting and copying such books, records, accounts, and other materials that may be relevant to
an investigation of compliance with the Homeless Housing, Assistance, and Prevention Program laws, the HHAP-3 program guidance document published on the website, and this Agreement.
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69 In accordance with Health and Safety Code section 50220.7, subdivision (m), if upon inspection of records HCFC identifies noncompliance with grant requirements. HCFC retains the right to impose a corrective action plan on the Grantee.
b) Record Retention
7KH*UDQWHHIXUWKHUDJUHHVௗWRUHWDLQDOOUHFRUGVGHVFULEHGLQ subparagraph A for DௗPLQLPXPSHULRGRIௗILYHௗ
ௗ\HDUVDIWHUWKHWHUPLQDWLRQRIWKLVAgreement.
If any litigation, claim, negotiation, audit, monitoring, inspection or other action has been commenced before the expiration of the required record retention period, all records must be retained until completion of the action and resolution of all issues which arise from it.
6) %UHDFKDQG5HPHGLHV
a) Breach of Agreement
Breach of this Agreement includes, but is not limited to, the following events:
i) *UDQWHH¶VIDLOXUHWRFRPSO\ZLWKWKHWHUPVRUFRQGLWLRQVRIWKLV$JUHHPHQW ii) Use of, or permitting the use of, HHAP-3 funds provided under this Agreement for any ineligible activities.
iii) Any failure to FRPSO\ZLWKWKHGHDGOLQHVVHWIRUWKLQWKLV$JUHHPHQW b) Remedies for Breach of Agreement
In addition to any other remedies that may be available to Agency in law or equity IRUEUHDFKRIWKLV$JUHHPHQW$JHQF\PD\
i) Bar the Grantee from applying for future HHAP IXQGV
ii) Revoke any other existing HHAP-3 award(s) to the Grantee; iii) Require the return of any unexpended HHAP-3 funds disbursed under this Agreement;
iv) Require repayment of HHAP-3 funds disbursed and expended under this Agreement;
v) Require the immediate return to Agency of all funds derived from the use of HHAP-3 funds
vi) Seek, in a court of competent jurisdiction, an order for specific performance of the defaulted obligation or participation in the technical assistance in accordance with HHAP-3 requirements.
c) All remedies available to Agency are cumulative and not H[FOXVLYH City of Stockton
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70 d) Agency may give written notice to the Grantee to cure the breach or YLRODWLRQௗZLWKLQDSHULRGRIQRWOHVVWKDQGD\V
7) :DLYHUV
No waiver of any breach of this Agreement shall be held to be a waiver of any prior or subsequent breach. The failure of Agency to enforce at any time the provisions of this Agreement, or to require at any time, performance by the Grantee of these provisions, shall in no way be construed to be a waiver of such provisions nor to affect the validity of this Agreement or the right of Agency to enforce WKHVHௗSURYLVLRQV
8) 1RQGLVFULPLQDWLRQ
During the performance of this Agreement, Grantee and its subrecipients shall not unlawfully discriminate, harass, or allow harassment against any employee or applicant for employment because of sex (gender), sexual orientation, gender identity, gender expression, race, color, ancestry, religion, creed, national origin (including language use restriction), pregnancy, physical disability (including HIV and AIDS), mental disability, medical condition (cancer/genetic characteristics), age (over 40), genetic information, marital status, military and veteran status, and denial of medical and family care leave or pregnancy disability leave. Grantees and Sub grantees shall ensure that the evaluation and treatment of their employees and applicants for employment are free from such discrimination and harassment.
Grantee and its subrecipients shall comply with the provisions of California’s laws against discriminatory practices relating to specific groups: the California Fair Employment and Housing Act (FEHA) (Gov. Code, § 12900 et seq.); the regulations promulgated thereunder (Cal. Code Regs., tit. 2, § 11000 et seq.); and the provisions of Article 9.5, Chapter 1, Part 1, Division 3, Title 2 of the Government Code (Gov. Code, §§ 11135 - 11139.5). Grantee and its subrecipients shall give written notice of their obligations under this clause to labor organizations with which WKH\KDYHDFROOHFWLYHEDUJDLQLQJRURWKHUDJUHHPHQW
9) Conflict RI,QWHUHVW
All Grantees are subject to state and federal conflict of interest laws. For instance, Health and Safety Code section 50220.5, subdivision (i) states, “ For purposes of Section 1090 of the Government Code, a representative of a county serving on a board, committee, or body with the primary purpose of administering funds or making funding recommendations for applications pursuant to this chapter shall have no financial interest in any contract, program, or project voted on by the board, committee, or body on the basis of the receipt of compensation for holding public office or public employment as a representative of the county.” )DLOXUHWRFRPSO\ௗZLWKWhese laws, including business and financial disclosure provisions, will result in the application being rejected and any subsequent contract being declared void. Other legal action may also be taken. Additional applicable City of Stockton
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71 statutes include, but are not limiWHGWR*RYHUQPHQW&RGHVHFWLRQ ௗDQG Public
Contract Code sections 10410 and 10411.
a) Current State Employees: No State officer or employee shall engage in any employment, activity, or enterprise from which the officer or employee receives compensation or has a financial interest, and which is sponsored or funded by any State agency, unless the employment, activity, or enterprise is required as a condition of regular State employment. No State officer or employee shall contract onௗhis or her own behalf as an independent Grantee with any State DJHQF\WRSURYLGHJRRGVRUVHUYLFHV
b) Former State Employees: For the two-year period from the date he or she left State employment, no former State officer or employee may enter into a contract in which he or she engaged in any of the negotiations, transactions, planning, arrangements, or any part of the decision-making process relevant to the contract while employed in any capacity by any State agency. For the twelve- month period from the date he or she left State employment, no former State officer or employee may enter into a contract with any State agency if he or she was employed by that State agency in a policy-making position in the same general subject area as the proposed contract within the twelve-month period prior to his or her leaving State service.
c) Employees of the Grantee: Employees of the Grantee shall comply with all applicable provisions of law pertaining to conflicts of interest, including but not limited to any applicable conflict of interest provisions of the Political Reform Act of 1974 (Gov. Code, § 81000 et seq.).
d) 5HSUHVHQWDWLYHVௗRID&RXQW\
$UHSUHVHQWDWLYHRIDFRXQW\VHUYLQJRQDERDUG
committee, or body with the primary purpose of administering funds or making funding recommendations IRUDSSOLFDWLRQVௗSXUVXDQWWRWKLVFKDSWHUVKDOOKDYHQR financial interest in any contract, program, or project voted on by the board, committee, or body on the basis of the receipt of compensation for holding public office or public employment as a representative of the county. 10) Drug-)UHH:RUNSODFH&HUWLILFDWLRQ
Certification oI&RPSOLDQFH
%\VLJQLQJWKLV$JUHHPHQWௗ*UDQWHHௗKHUHE\FHUWLILHV
under penalty of perjury under the laws of State of California, that it and its subrecipients will comply with the requirements of the Drug-Free Workplace Act of 1990 (Gov. Code, § 8350 et seq.) and have or will provide a drug-free workplace by taking the following actions:
3XEOLVKDVWDWHPHQWQRWLI\LQJHPSOR\HHVௗDQGVXEUHFLSLHQWV that unlawful manufacture distribution, dispensation, possession, or use of a controlled substance is prohibited and specifying actions to be taken against employees, Grantees, or subrecipients for violations, as required by Government Code section 8355, subdivision (a)(1).
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72 a) Establish a Drug-Free Awareness Program, as required by Government Code section 8355, subdivision (a)(2) to inform employees, Grantees, or subrecipients DERXWௗDOORIௗWKHIROORZLQJ
i) 7KHGDQJHUVௗRIGUXJDEXVHLQWKHZRUNSODFH
ii) *UDQWHH¶VௗSROLF\RIPDLQtaining a drug-IUHHZRUNSODFH
iii) $Q\DYDLODEOHFRXQVHOLQJUHKDELOLWDWLRQௗDQGHPSOR\HHDssistance program; and
iv) Penalties that may be imposed upon employees, Grantees, and subrecipients IRUGUXJDEXVHYLRODWLRQV
b) Provide, as required by *RYHUQPHQW&RGHVHFWLRQௗVXEGLYLVLRQ (a)(3), that HYHU\HPSOR\HHௗDQGRUVXEUHFLSLHQW that works under this Agreement:
i) Will receive a copy of Grantee’s drug-free policy statement, and ii) Will agree to abide by terms RIௗ*UDQWHH¶VௗFRQGLWLRQRIHPSOR\PHQWௗRU subcontract.
11) &KLOG6XSSRUW&RPSOLDQFH$FW
For any Contract Agreement in excess of $100,000, the Grantee acknowledges in accordance with Public Contract Code 7110, that:
a) The Grantee recognizes the importance of child and family support obligations and shall fully comply with all applicable state and federal laws relating to child and family support enforcement, including, but not limited to, disclosure of information and compliance with earnings assignment orders, as provided in Chapter 8 (commencing with section 5200) of Part 5 of Division 9 of the Family Code; and
b) The Grantee, to the best of its knowledge is fully complying with the earnings assignment orders of all employees and is providing the names of all new employees to the New Hire Registry maintained by the California Employment Development Department.
12) Special Conditions – Grantees/Subgrantee
The Grantee agrees to comply with all conditions of this Agreement including the Special Conditions set forth in Exhibit D. These conditions shall be met to the satisfaction of Agency prior to disbursement of funds. The Grantee shall ensure that all Subgrantees are made aware of and agree to comply with all the conditions of City of Stockton
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73 this Agreement and the applicable State requirements governing the use of HHAP-3 funds. Failure to comply with these conditions may result in termination of this Agreement.
a) The Agreement between the Grantee and any Subgrantee shall require the Grantee and its SubgranteesLIDQ\WR
i) Perform the work in accordance with Federal, State and Local housing and EXLOGLQJFRGHVDVDSSOLFDEOH
ii) Maintain at least the minimum State-required worker’s compensation for those HPSOR\HHVZKRZLOOSHUIRUPWKHZRUNRUDQ\SDUWRILW iii) Maintain, as required by law, unemployment insurance, disability insurance, and liability insurance in an amount that is reasonable to compensate any person, firm or corporation who may be injured or damaged by the Grantee or any Subgrantee in performiQJWKHௗ:RUNRUDQ\SDUWRILW iv) $JUHHWRLQFOXGHDOOWKHWHUPVRIWKLV$JUHHPHQWLQHDFKVXEFRQWUDFW 13) Compliance with State and Federal Laws, Rules, Guidelines and Regulations The Grantee agrees to comply with all state and federal laws, rules and regulations that pertain to construction, health and safety, labor, fair employment practices, environmental protection, equal opportunity, fair housing, and all other matters applicable and/or related to the HHAP-3 program, the Grantee, its subrecipients, and all eligible activities.
Grantee shall also be responsible for obtaining any and all permits, licenses, and approvals required for performing any activities under this Agreement, including those necessary to perform design, construction, or operation and maintenance of the activities. Grantee shall be responsible for observing and complying with any applicable federal, state, and local laws, rules or regulations affecting any such work, specifically those including, but not limited to, environmental protection, procurement, and safety laws, rules, regulations, and ordinances. Grantee shall provide copies of permits and approvals WRௗ+&)&XSRQUHTXHVW 14) Inspections
a) Grantee shall inspect any work performed hereunder to ensure that the work is being and has been performed in accordance with the applicable federal, state and/or local requirements, and this Agreement.
b) +&)&ௗUHVHUYes the right to inspect any work performed hereunder to ensure that the work is being and has been performed in accordance with the applicable federal, state and/or local requirements, and this Agreement.
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74 c) Grantee DJUHHVWRUHTXLUHWKDWDOOZRUNWKDWLVௗGetermined based on such inspections not to conform to the applicable requirements be corrected and to withhold payments to the subrecipient until it is corrected. 15) /LWLJDWLRQ
a) If any provision of this Agreement, or an underlying obligation, is held invalid by a court of competent jurisdiction, such invalidity, at the sole discretion RIௗ$JHQF\ௗVKDOOQRWDIIHFWDQ\RWKHUSURYLVLRQVRIWKLV$JUHHPHQWDQGWKH remainder of this Agreement shall remain in full force and effect. Therefore, the provisions of this Agreement are and shall be deemed severable. b) The Grantee shall QRWLI\ௗ+&)&LPPHGLDWHO\of any claim or action undertaken by RUDJDLQVWLWZKLFKDIIHFWVRUPD\DIIHFWWKLV$JUHHPHQWRUௗ$JHQF\DQGVKDOOWDNH such action with respect to the claim or action as is consistent with the terms of WKLV$JUHHPHQWDQGWKHLQWHUHVWVRIௗ$JHQF\
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75 Homeless Housing, Assistance, and Prevention Program Round (HHAP-) Standard Agreement
EXHIBIT D
SPECIAL TERMS AND CONDITIONS
1) All proceeds from any interest-bearing account established by the Grantee for the deposit of HHAP-3 funds, along with any interest-bearing accounts opened by subrecipients to the Grantee for the deposit of HHAP-3 funds, must be used for HHAP-3-eligible activities and reported on as required by Agency 2) Per Health and Safety Code Section 50220.7 (g), any housing-related activities funded with HHAP-3 funds, including but not limited to emergency shelter (per HSC § 50220.7(e)(8)(F)), rapid-rehousing, rental assistance, transitional housing and permanent supportive housing, must be in compliance or otherwise aligned with the core components of Housing First, as described in Welfare and Institutions Code section 8255, subdivision (b). Individuals and families assisted with these funds must not be required to receive treatment or perform any other prerequisite activities as a condition for receiving shelter, housing, or other services for which these funds are used. In addition, HHAP-3 funding shall be used to adopt a Housing First approach within the entire local homelessness response system, including outreach and emergency shelter, short-term interventions like rapid re- housing, and longer-term interventions like supportive housing. 3) Grantee shall utilize its local Homeless Management Information System (HMIS) to track HHAP-3-funded projects, services, and clients served. Grantee will ensure that HMIS data are collected in accordance with applicable laws and in such a way as to identify individual projects, services, and clients that are supported by HHAP-3 funding (e.g., by creating appropriate HHAP-3-specific funding sources and project codes in HMIS).
4) Grantee shall participate in and provide data elements, including, but not limited to, health information, in a manner consistent with federal law, to the statewide Homeless Management Information System (known as the Homeless Data Integration System or “HDIS”), in accordance with their existing Data Use Agreement entered into with the Council, if any, and as required by Health and Safety Code section 50220.6. Any health information provided to, or maintained within, the statewide Homeless Management Information System shall not be subject to public inspection or disclosure under the California Public Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1 of the Government Code). For purposes of this paragraph, “health information” means “protected health information,” as defined in Part 160.103 of Title 45 of the Code of Federal Regulations, and “medical information,” as defined in subdivision (j) of Section 56.05 of the Civil Code. The Council may, as required by operational necessity, amend or modify required data elements, disclosure formats, or disclosure frequency. Additionally, the Council, at its discretion, may provide City of Stockton
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76 Grantee with aggregate reports and analytics of the data Grantee submits to HDIS in support of the Purpose of this Agreement and the existing Data Use Agreement. 5) Grantee agrees to accept technical assistance as directed by HCFC or by a contracted technical assistance provider acting on behalf of HCFC and report to HCFC on programmatic changes the grantee will make as a result of the technical assistance and in support of their grant goals.
6) Grantee agrees to demonstrate a commitment to racial equity and, per Section 50222 (a)(2)(B), the grantee shall use data provided through HDIS to analyze racial disproportionality in homeless populations and, in partnership with HCFC, establish clear metrics and performance monitoring for achieving equity in provision of services and outcomes for Black, Native, and Indigenous, Latinx, Asian, Pacific Islanders and other People of Color who are disproportionately impacted by homelessness and COVID-19.
7) Grantee should establish a mechanism for people with lived experience of homelessness to have meaningful and purposeful opportunities to inform and shape all levels of planning and implementation, including through opportunities to hire people with lived experience.
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77 Homeless Housing, Assistance, and Prevention Program Round (HHAP-) Standard Agreement
EXHIBIT E
STATE OF CALIFORNIA GENERAL TERMS AND CONDITIONS
This exhibit is incorporated by reference and made part of this agreement. The General Terms and Conditions (GTC 04/2017) can be viewed at the following link:
https://www.dgs.ca.gov/-/media/Divisions/OLS/Resources/GTC-April-2017- FINALapril2017.pdf?la=en&hash=3A64979F777D5B9D35309433EE81969FD69052D2 In the interpretation of this Agreement, any inconsistencies between the State of California General Terms and Conditions (GTC - 04/2017) and the terms of this Agreement and its exhibits/attachments shall be resolved in favor of this Agreement and its exhibits/attachments.
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78 Homeless Housing, Assistance, and Prevention Program Round 3 (HHAP-3) Standard Agreement
EXHIBIT F
STANDARD AGREEMENT TO APPLY
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81 City of Stockton
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82 City of Stockton
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83 City of Stockton
Legislation Text
File #: 22-0103, Version: 1
ADOPT RESOLUTION TO AUTHORIZE SUBMITTAL OF APPLICATIONS TO THE DEPARTMENT
OF RESOURCES RECYCLING AND RECOVERY
RECOMMENDATION
It is recommended that the City Council adopt a resolution to:
1. Authorize the City Manager to submit applications to the Department of Resources Recycling and Recovery for any and all grant and payment programs offered.
2. Authorize the City Manager, or his/her designee, to act as the Signature Authority to execute all documents necessary to implement and secure payment, and implement the approved grant or payment project.
3. Authorize that this authorization be effective for five years from the date of adoption unless rescinded by the Signature Authority of this governing body.
It is also recommended that the City Manager be authorized to take appropriate and necessary actions to carry out the purpose and intent of this resolution.
Summary
State legislation has established strict diversion goals for municipalities which must be met over the next several years. Following the precedents set by Assembly Bill 341 Mandatory Recycling (AB 341) and Assembly Bill 1826 Mandatory Commercial Organics (AB 1826), the California Department of Resources and Recycling (CalRecycle) formalized rules and regulations for Senate Bill 1383 (SB 1383) as part of the State’s Short-Lived Climate Pollutant Reduction Strategy. SB 1383 mandates cities to implement mandatory programming, education, monitoring, reporting, and enforcement actions for its waste streams. SB 1383 became effective January 1, 2022.
Grants and payment programs offered by CalRecycle will assist local jurisdictions in the safe and effective management of their waste streams. To participate in these funding opportunities, the City must submit a resolution that identifies the Signature Authority authorized to sign all grant-related documents and the length of time this authorization is approved for.
DISCUSSION
Background
State legislation has established strict diversion goals for municipalities which must be met over the next several years. Following the precedents set by AB 341 and AB 1826, CalRecycle formalized City of Stockton Printed on 2/1/2022Page 1 of 2
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rules and regulations for SB 1383 as part of the State’s Short-Lived Climate Pollutant Reduction Strategy. SB 1383 mandates cities to implement mandatory programming, education, monitoring, reporting, and enforcement actions for its waste streams. SB 1383 became effective January 1, 2022.
CalRecycle is administering a one-time grant program entitled “SB 1383 Local Assistance Grant Program”. Funds distributed through this program are meant to provide aid in the implementation of regulations adopted by CalRecycle pursuant to Chapter 395, Statutes of 2016 and SB 170 Budget Act of 2021. This non-competitive grant program provides $57,000,000 of funding to local jurisdictions to assist with the implementation of regulatory requirements associated with SB 1383, including but not limited to:
· Capacity Planning
· Collection
· Edible Food Recovery
· Education and Outreach (includes organic waste and edible food recovery) · Enforcement and Inspection
· Program Evaluation/Gap Analysis
· Procurement Requirements
· Record Keeping
Base award amounts are set at $20,000 for eligible entities. The remaining funds will then be distributed to eligible entities based on per capita calculations using the Department of Finance’s January 2021 population statistics.
Present Situation
The City is projected to receive $421,873 through the “SB 1383 Local Assistance Grant Program”.
To receive these funds, the City must declare by resolution certain authorizations related to the administration of CalRecycle grants. Approving the recommended resolution will allow staff to apply for this grant and streamline staff’s ability to apply for future CalRecycle grants and payment programs for the next five years.
The recommended resolution is in accordance with the CalRecycle grant program requirements.
FINANCIAL SUMMARY
The proposed resolution authorizes the City Manager to apply for CalRecycle grant and payment program funds.
There are no match requirements to receive funds from the “SB 1383 Local Assistance Grant Program”. Upon approval of any future funding requests, staff will return to Council to appropriate the awarded funds.
There is no impact to the City’s General Fund or any other unrestricted fund as a result of taking the recommended action.
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85 Resolution No.
STOCKTON CITY COUNCIL
RESOLUTION AUTHORIZING SUBMITTAL OF APPLICATIONS TO THE
DEPARTMENT OF RESOURCES RECYCLING AND RECOVERY
Public Resources Code sections 48000 et seq., 14581, and 42023.1(g), authorize the Department of Resources Recycling and Recovery (CalRecycle) to administer various grant and payment programs in furtherance of the State of California’s ( State) efforts to reduce, recycle, and reuse solid waste generated in the State thereby preserving landfill capacity and protecting public health and safety and the environment; and
In furtherance of this authority, CalRecycle is required to establish procedures governing the administration of t he payment programs , and administration of the application, awarding, and management of the grant programs; and
CalRecycle’s procedures for administering grant and payment programs require, among other things, an applicant’s governing body to declare by r esolution certain authorizations related to the administration of the grant and payment program ; now, therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF STOCKTON, AS FOLLOWS:
1. The City Council hereby authorizes and directs the City Manager to submit applications to CalRecycle for any and all grant and payment programs offered.
2. The City Council hereby authorizes the City Manager, or his/her designee, to act as the Signature Authority to execute all documents necessary to implement and secure payment and implement the approved grant or payment project.
3. These authorizations are effective for five years from the date of adoption unless rescinded by the Signature Authority of this governing body.
4. The City Manager is hereby authorized to take whatever actions are necessary and appropriate to carry out the purpose and intent of this Resolution.
PASSED, APPROVED, and ADOPTED _____February 8, 2022______.
_________________________
KEVIN J. LINCOLN II
ATTEST: Mayor of the City of Stockton
__________________________
ELIZA R. GARZA, CMC
City Clerk of the City of Stockton
86 City of Stockton
Legislation Text
File #: 22-0037, Version: 1
ADOPT RESOLUTION TO REJECT BIDS FOR THE FIRE STATION NO. 2 WINDOW REPLACEMENT AND RE-APPROPRIATE FUNDS TO THE FIRE STATION NO. 1 RENOVATIONS
RECOMMENDATION
It is recommended that the City Council adopt a resolution to:
1. Reject all bids received for the Fire Station No. 2 Window Replacement, Project No. F018019, pursuant to Stockton Municipal Code section 3.68.160(B).
2. Re-appropriate funds in the amount of $551,290 from the Fire Station No. 2 Window Replacement, Project No. F018019, to the Fire Station No. 1 Renovations, Project No.
F022002.
It is also recommended that the City Manager be authorized to take appropriate and necessary actions to carry out the purpose and intent of this resolution.
Summary
The Fire Station No. 2 Window Replacement project includes the replacement of the existing 61-year -old window systems of the main Fire Station building. The project was included in the 2018-23 Five- Year Capital Improvement Plan (CIP).
On September 23, 2021, the City received five bids for this project. The bid from the apparent low bidder, Art’s Construction Company, Inc., was deemed responsive. However, due to reprioritization of City CIP projects by the Fire Department, pursuant to Stockton Municipal Code (SMC) section
3.68.160(B), staff recommends Council adopt a resolution to reject all bids received. Staff further recommends the project’s unencumbered balance be re-appropriated to Fire Station No. 1 Renovations, Project No. F022002.
DISCUSSION
Background
Fire Station No. 2 Window Replacement Project
Fire Station No. 2, the City of Stockton’s Central Fire Station, is located at 110 West Sonora Street (Attachment A - Vicinity Map). The Fire Station No. 2 Window Replacement project was included in the 2018-23 Five-Year CIP to replace the existing window systems.
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WMB Architects, Inc., a local Stockton architectural firm, was selected to prepare the plans, specifications, and estimates for the project. The design was completed, and the project was advertised for bids on August 31, 2021.
On July 26, 2016, Council adopted a Community Workforce and Training Agreement (CWTA). The CWTA became effective August 25, 2016, and applies to all Public Works projects over $1 million that are bid after that date. On July 16, 2019, by Motion No. 2019-07-16-1403, Council extended the CWTA term to August 25, 2024. The CWTA was not applied to this project because the engineer’s estimate was less than $1 million.
Fire Station No. 1 Renovations Project
In September 2021, the Fire and Public Works Departments worked together to scope and estimate the cost of improvements to reopen Fire Station No. 1. The total cost estimated was approximately $650,000. Improvements include a new HVAC system, windows, apparatus bay doors, minor plumbing and electrical upgrades, technology hardware, landscaping, and general exterior and interior improvements. The Fire and Public Works Departments coordinated with Budget staff to reprioritize the Fire Station No. 2 project funds of $551,290 to the Fire Station No. 1 project. To fully fund the Fire Station No. 1 Renovations project, the cost shortfall of $100,000 was submitted to Council for approval at the November 16, 2021, meeting and was approved by Resolution No. 2021- 11-16-1501.
Present Situation
Fire Station No. 2 Window Replacement Project
On August 31, 2021, the Fire Station No. 2 Window Replacement project was advertised for bids. On September 23, 2021, five bids were received with the following results:
ADJUSTED BID AMOUNT
COMPANY NAME BID AMOUNT (local preference applied)
Art’s Construction Company, Inc. $414,680.00 $414,680.00 (Fresno, CA)
Swierstok Enterprises, Inc. $464,164.00 $464,164.00
dba Pro Builders
(Orangevale, CA)
Pinguelo Construction, Inc. $537,789.00 $537,789.00
(Fairfield, CA)
T&S Intermodal Maintenance, Inc. $567,000.00 $555,660.00 dba T&S West
(Linden, CA)
Pro-Ex Construction, Inc. $587,000.00 $587,000.00
(Rancho Cordova, CA)
Engineer’s Estimate $423,647.33
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The requirements of SMC section 3.68.090, Local Business Preference, apply to this project. T&S Intermodal Maintenance, Inc. dba T&S West is located within San Joaquin County and is entitled to a two percent bid preference. Application of the Local Business Preference has no effect on the bid order.
Fire Station No. 1 Renovations Project
Due to the reprioritization of City CIP projects by the Fire and Public Works Departments, staff recommends Council adopt a resolution to reject all bids received. SMC section 3.68.160(B) provides that Council shall award a contract to the lowest and best regular responsible bidder or reject all bids.
Staff further recommends re-appropriating the project fund balance of $551,290 from the Fire Station No. 2 Window Replacement project to the Fire Station No. 1 Renovations project.
FINANCIAL SUMMARY
The resolution includes the following action to provide sufficient funding to advance the project:
Re-appropriate the unencumbered balance in the amount of $551,290 from the Fire Station No. 2 Window Replacement, Project No. F018019 (formerly PW1819), Account No. 4510-000-800007-300- 000-30-45-000-000, to the Fire Station No. 1 Renovations, Project No. F022002, Account No. 4510- 000-800007-300-000-30-45-000-000.
There is no impact to the City’s General Fund or any other unrestricted fund as a result of taking the recommended action.
Attachment A - Vicinity Map
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89 - VICINITY MAP -
Fire Station No. 2 Window Replacement, Project No. F018019 and
Fire Station No. 1 Renovations, Project No. F022002
Fire Station Locations
LEGEND:
FIRE STATION NO. 2
FIRE STATION NO. 1
ATTACHMENT A
90 Resolution No.
STOCKTON CITY COUNCIL
RESOLUTION REJECTING BIDS FOR THE FIRE STATION NO. 2 WINDOW REPLACEMENT, PROJECT NO. F018019 AND RE -APPROPRIATING FUNDS TO THE FIRE STATION NO. 1 RENOVATIONS, PROJECT NO. F022002
On September 23, 2021, the City Clerk of the City of Stockton opened, examined, and publicly declared the sealed proposals or bids offered for the Fire Station No. 2 Window Replacement, Project No. F018019 (formerly PW1819); and
The project was intended to replace the windows at Fire Station No. 2; and
The Fire Department and Public Works Department have re -prioritized the need for this project with the need to re-open Fire Station No. 1; now, therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF STOCKTON, AS FOLLOWS:
1. The City Council approves rejecting all bids received for the Fire Station No. 2 Window Replacement, Project No. F018019, pursuant to Stockton Municipal Code section 3.68.160(B).
2. The City Council approves re-appropriating funds in the amount of $551,290 from the Fire Station No. 2 Window Replacement, Project No. F018019, to the Fire Station No. 1 Renovations, Project No. F022002.
3. The City Manager is hereby authorized to take whatever actions are necessary and appropriate to carry out the purpose and intent of this Resolution.
PASSED, APPROVED, and ADOPTED February 8, 2022 .
KEVIN J. LINCOLN II
Mayor of the City of Stockton
ATTEST:
ELIZA R. GARZA, CMC
City Clerk of the City of Stockton
91 City of Stockton
Legislation Text
File #: 22-0109, Version: 1
APPROVE REPAYMENT OF $1,261,913.52 TO THE SUCCESSOR AGENCY TO RESOLVE
ASSET TRANSFER REVIEW REPORT FINDING
RECOMMENDATION
It is recommended that the City Council approve a resolution to:
1. Authorize the repayment of $1,261,913.52 from the General Fund Contingency to the Successor Agency to resolve Finding #1 in the Stockton Redevelopment Agency Asset Transfer Review Report issued by the California State Controller’s Office (SCO) in August of 2013.
2. Authorize the City Manager to take necessary and appropriate actions to carry out the purpose and intent of the resolution.
And it is recommended that the Successor Agency to the former Stockton Redevelopment Agency (Successor Agency) approve a resolution to:
1. Authorize the appropriate disbursement of $1,261,913.52 in accordance with Health & Safety Code sections 34176, 34177(d) and (e), and 34181 as necessary to resolve Finding #1 in the Stockton Redevelopment Agency Asset Transfer Review Report issued by the SCO in August of 2013.
2. Authorize the Executive Director to take necessary and appropriate actions to carry out the purpose and intent of the resolution.
Summary
The City is considering participating in the recently established Mossdale Tract Enhanced Infrastructure Financing District (EIFD) to provide a financing mechanism for flood protection improvements through a multi-agency collaboration lead by the San Joaquin Area Flood Control Agency (SJAFCA). The EIFD will receive a portion of revenues generated from the growth in property taxes collected within the district boundaries, a structure similar to that of former Redevelopment Agencies. To participate in an EIFD, any City that previously created a Redevelopment Agency must comply with certain dissolution requirements specified in State statute, including resolving any findings from the Redevelopment Agency Asset Transfer Review Report (Attachment A). Upon research of the two findings in this report from August 2013, staff discovered that one of the findings had not been resolved, as the City intended to work with the SCO to address inaccurate information cited in the finding. The finding states that a transfer from the Low and Moderate Income Housing Fund for the repayment of two California Housing Finance Agency (CalHFA) loans was unallowable. The recommended actions will authorize the City Manager and Chief Financial Officer to resolve the finding through the transfer of $1,261,913.52 from the City’s City of Stockton Printed on 2/1/2022Page 1 of 4
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General Fund to the Successor Agency for disposition of the funds in accordance with State dissolution law.
DISCUSSION
Background
In June 2011 and June 2012, Governor Brown signed into law, Assembly Bills x1 26 and 1484 (the “Dissolution Act”), dissolving all existing California redevelopment agencies and replacing them with successor agencies. The City of Stockton elected to become the Successor Agency to its former Redevelopment Agency and to assume the housing functions previously performed by the Stockton Redevelopment Agency. The Successor Agency became operative on February 1, 2012, and was responsible for winding down the activities of the former Redevelopment Agency.
As part of the dissolution, tax increment funds are retained by the County Auditor-Controller and are disbursed to the Successor Agency for payment of enforceable obligations after the Successor Agency’s Recognized Obligation Payment Schedule (ROPS) is approved by the State Department of Finance (DOF). Tax increment, now referred to as Redevelopment Property Tax Trust Funds (RPTTF), is disbursed to the Successor Agency to pay approved obligations up to the amount of tax increment available. Any remaining RPTTF is disbursed to certain taxing entities, including the County, educational institutions, and the City of Stockton.
On February 8, 2011, the Stockton Redevelopment Agency, by Resolution #R11-003 (Attachment B), authorized the payment of funds to the City for the repayment of the amount due on the California Housing Finance Agency’s Housing Enabled by Local Partnerships (HELP) program loans. The HELP dollars were used for low and moderate income housing projects between 2002 and 2008, and therefore Redevelopment Low and Moderate Income Housing Fund funds were deemed appropriate as a source of the loan repayment. The action authorized payment of the full loan balance with interest of $1,361,531. Since the loans were paid off before maturity, the actual amount paid was less than the full balance. The two loans were repaid via wire transfer (Attachment C) on March 21, 2011, in two separate payments of $639,695.83 and $622,217.69, for a total of $1,261,913.52.
Pursuant to Health and Safety (H&S) Code section 34167.5, the SCO was tasked with reviewing all asset transfers made by the Stockton Redevelopment Agency after January 1, 2011. The resulting draft report was released June 24, 2013, and the final report was issued in August of 2013 with two findings. Finding #2 was resolved by subsequent Successor Agency action.
The City’s response to Finding #1, as summarized on page 8 of Attachment A, was to disagree for multiple reasons including the inaccurate amount cited in the finding. The Council Audit Committee was provided with the following information regarding the finding on September 23, 2013. “Report 2, Finding 1 - Unallowable low and moderate income housing fund cash transfer to the City The SCO claims the Redevelopment Agency transferred $1,361,531 in Low and Moderate Income funds to the City and used those funds to repay two loans with the California Housing Finance Agency (CalHFA). The actual amount transferred was $1,261,913,52. The report contains an order from the Controller to return those funds to the Successor Agency.
City of Stockton Printed on 2/1/2022Page 2 of 4
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This finding is very puzzling. The City repaid CalHFA (a state agency) from Low Mod sources, which were a stated source of repayment on the City’s loan agreement. The City cannot obligate the General Fund in a loan agreement of this type without voter approval, therefore this is not a General Fund issue.
In the SCO’s final response, they indicate that we did not show them the documentation that this was, in fact, an obligation of the Low Mod fund. We believe we did, but the SCO had a turnover in auditors during this audit and this piece of information may have been missed. The SCO maintains the finding, however, indicating that paying of these loans with Low Mod funds earlier than the maturity date is a violation of state redevelopment law. These loans were made in January 2002 and April 2003 with a 10 year term. The payoff of the questioned amount was made in February of 2011. If the SCO wants the City to return the funds to the Successor Agency, we’ll need to get the funds back from the State (CalHFA) in order to do so.
However, these loans have since matured. Staff will work with the SCO to resolve this issue and update the Council Audit Committee at a future meeting.” At a February 24, 2014 Council Audit Committee meeting, the City’s Chief Financial Officer indicated that staff were still trying to work to resolve the audit finding with the State Controller’s Office.
Senate Bill 5 (“SB5”), and related companion bills, created a new requirement for certain land use decisions made by cities and counties in the California Central Valley. In 2017, Stockton staff began working with SJAFCA and other agencies to address flood protection needs in the Mossdale Tract area. One of the funding mechanisms identified for the flood protection improvements is the creation of a multi-agency EIFD. In 2021, the Mossdale Tract consultants made the City aware of additional requirements of EIFD law (Government Code section 53398.54). The state requires that prior to participation in the governance of an EIFD, a City or a County that previously created a Redevelopment Agency, must meet certain conditions, including complying with all of the SCO’s findings and orders stemming from the asset transfer review. Finding 2 in the Asset Transfer Review Report was resolved at the time of the final report, but no evidence can be found that demonstrates Finding 1 was resolved.
Present Situation
City staff have researched activity in Low and Moderate Income Housing Funds subsequent to the 2013 report and can find no documentation of a repayment of the funds or resolution of the issue with the SCO. To resolve the finding, Administrative Services has reached out to the SCO and DOF.
Through discussions with the State, we believe the finding can be resolved with a payment of the lower amount of $1,261,913.52 from the City’s General Fund to the Successor Agency. Consultation with experts on dissolution law and their review of subsequent Successor Agency financial reports is needed to determine if the Successor Agency needs to turn the funds over to the San Joaquin County Auditor-Controller for disbursement to the various taxing entities or to the Low and Moderate Income Housing Fund for use on affordable housing projects. The disbursement of funds through whichever method is deemed appropriate is authorized by the recommended actions. The Independent Accountant’s Report on Applying Agreed-Upon Procedures relating to the Due Diligence Review in accordance with AB 1484 applied to Low and Moderate Income Housing Fund, dated February 19, 2014, shows that with the $1.3 million identified in the finding, the Low and Moderate Income Housing Fund would have had a negative balance to remit to the County for distribution to City of Stockton Printed on 2/1/2022Page 3 of 4
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the taxing entities. If in compliance with the various applicable Health & Safety Code Sections, the transferred funds may remain in the Low and Moderate Income Housing Fund to be used on affordable housing projects.
FINANCIAL SUMMARY
The General Fund is the only available source for payment of the $1,261,91.52 to the Successor Agency. The General Fund has a $2 million contingency budget that can be used for this purpose.
Attachment A - Stockton Redevelopment Agency Asset Transfer Review For the Period: January 1, 2011 - January 31, 2012 Dated: August 2013
Attachment B - Stockton Redevelopment Agency Resolution #R11-003 Attachment C - March 2011 HELP Loan Payoff Wire documents City of Stockton Printed on 2/1/2022Page 4 of 4
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95 STOCKTON REDEVELOPMENT
AGENCY
ASSET TRANSFER REVIEW
Review Report
January 1, 2011, through January 31, 2012
JOHN CHIANG
California State Controller
August 2013
ATTACHMENT A
96 JOHN CHIANG
California State Controller
August 5, 2013
Vanessa Burke, CFO
City of Stockton/Successor Agency
425 North El Dorado
Stockton, CA 95202-1997
Dear Ms. Burke:
Pursuant to Health and Safety (H&S) Code section 34167.5, the State Controller’s Office (SCO) reviewed all asset transfers made by the Stockton Redevelopment Agency to the City of Stockton or any other public agency after January 1, 2011. This statutory provision states, “The Legislature hereby finds that a transfer of assets by a redevelopment agency during the period covered in this section is deemed not to be in furtherance of the Community Redevelopment Law and is thereby unauthorized.” Therefore, our review included an assessment of whether each asset transfer was allowable and whether the asset should be turned over to the Stockton Redevelopment Successor Agency.
Our review applied to all assets including, but not limited to, real and personal property, cash funds, accounts receivable, deeds of trust and mortgages, contract rights, and rights to payment of any kind. We also reviewed and determined whether any unallowable transfers of assets to the City of Stockton or any other public agencies have been reversed.
Our review found $1,426,531 in unallowable asset transfers to the City of Stockton (Schedule 1).
However, the Successor Agency Oversight Board approved Resolution No. OB 2012-10-10-06 on October 10, 2012, declaring $65,000 in assets for a governmental purpose. Therefore, no further action is needed regarding these assets (Finding 2).
The outstanding assets
totaling $1,361,531 must be turned over to the Successor Agency for disposition in accordance with H&S Code sections 34177(d) and (e) and 34181.
If you have any questions, please contact
Steven Mar, Bureau Chief, Local Government Audits
Bureau, at (916) 324-7226.
Sincerely,
Original signed by
JEFFREY V. BROWNFIELD, CPA
Chief, Division of Audits
JVB/kw
ATTACHMENT A
97 Vanessa Burke, CFO -2- August 5, 2013
cc: Bob Deis, City Manager
City of Stockton
Laurie Montes, Deputy City Manager
City of Stockton
Kurt Wilson, Deputy City Manager
City of Stockton
Elena Adair, Assistant Director, Administrative Services Department City of Stockton
Jay Wilverding, Auditor-Controller
San Joaquin Count y
Richard J. Chivaro, Chief Legal Counsel
State Controller’s Office
Steven Szalay, Local Government Consultant
California Department of Finance
Steven Mar, Chief, Local Government Audits Bureau
Division of Audits, State Controller’s Office
Scott Freesmeier,
Audit Manager
Division of Audits, State Controller’s Office
Daniela Anechitoae, Auditor-in -Charge
Division of Audits, State Controller’s Office
ATTACHMENT A
98 Stockton Redevelopment Agency Asset Transfer Review
Contents
Review Report
Summary ............................................................................................................................ 1
Background ........................................................................................................................ 1
Objectives, Scope, and Methodology ............................................................................... 2 Conclusion .......................................................................................................................... 2 Views of Responsible Officials .......................................................................................... 2
Restr
icted Use .................................................................................................................... 3
Findings and Orders of the Controller ................................................................................ 4
Schedule 1—
RDA Assets Transferred to the City of Stockton.......................................... 7
Attachment—City’s Response to Draft Review Report
ATTACHMENT A
99 Stockton Redevelopment Agency Asset Transfer Review -1-
Asset Transfer Review Report
The State Controller’s Office ( SCO) reviewed the asset transfers made by the Stockton Redevelopment Agency (RDA) after January 1, 2011.
Our review included, but was not limited to, real and personal property, cash funds, accounts receivable, deeds of trust and mortgages, contract rights, and rights to payments of any kind from any source.
Our review found $1,426,531 in unallowable asset transfers to the City of Stockton (Schedule 1). However, the Successor Agency Oversight Board approved Resolution No. OB 2012-10-10-06 on October 10, 2012, declaring $65,000 in assets for a governmental purpose. Therefore, no further action is needed regarding these assets (Finding 2).
The outstanding assets totaling $1,361,531 must be turned over to the Successor Agency for disposition in accordance with H&S Code sections 34177(d) and (e) and 34181.
In January of 2011, the Governor of the State of California proposed statewide elimination of redevelopment agencies (RDAs) beginning with the fiscal year (FY) 2011-12 State budget. The Governor ’s proposal was incorporated into Assembly Bill 26 (ABX1 26, Chapter 5, Statutes of 2011, First Extraordinary Session), which was passed by the Legislature, and signed into law by the Governor on June 28, 2011.
ABX1 26 prohibited RDAs from engaging in new business, established mechanisms and timelines for dissolution of the RDAs, and created RDA Successor Agencies to oversee dissolution of the RDAs and redistribution of RDA assets.
A California Supreme Court decision on December 28, 2011 ( California Redevelopment Association et al. v. Matosantos ), upheld ABX1 26 and the Legislature’s constitutional authority to dissolve the RDAs.
ABX1 26 was codified in the Health and Safety Code (H&S Code ) beginning with section 34161.
In accordance with the requirements of H&S Code section 34167.5, the State Controller is required to review the activities of RDA s, “to determine whether an asset transfer has occurred after January 1, 2011, between the city or county, or city and county that created a redevelopment agency, or any other public agency, and the redevelopment agency,” and the date on which the RDA ceases to operate, or January 31, 2012, whichever is earlier.
Summary
Background
ATTACHMENT A
100
Stockton Redevelopment Agency Asset Transfer Review
-2-
The SCO has identified transfers of assets that occurred after January 1, 2011, between the Stockton Redevelopment Agency, the City of Stockton, and/or other public agencies. By law, the SCO is required to order that such assets, except those that already had been committed to a third party prior to June 28, 2011, the effective date of ABX1 26, be turned over to the Successor Agency. In addition, the SCO may file a legal order to ensure compliance with this order.
Our review objective was to determine whether asset transfers that occurred after January 1, 2011, and the date upon which the RDA ceased to operate, or January 31, 2012, whichever was earlier, between the city or county, or city and county that created an RDA, or any other public agency, and the RDA, were appropriate.
We performed the following procedures:
Interviewed Successor Agency personnel to gain an understanding of the Successor Agency operations and procedures.
Reviewed meeting minutes, resolutions, and ordinances of the Stockton Redevelopment Agency and the City of Stockton. Reviewed accounting records relating to the recording of assets. Verified the accuracy of the Asset Transfer Assessment Form. This form was sent to all former RDAs to provide a list of all assets transferred between January 1, 2011, and January 31, 2012. Reviewed applicable financial reports to verify assets (capital, cash, property, etc.).
Our review found $1,426,531 in unallowable asset transfers to the City of Stockton (Schedule 1). However, the Successor Agency Oversight Board approved Resolution No. OB 2012-10-10-06 on October 10, 2012, declaring $65,000 in assets for a governmental purpose. Therefore, no further action is needed regarding these assets (Finding 2).
The outstanding assets totaling $1,361,531 must be turned over to the Successor Agency for disposition in accordance with H&S Code sections 34177(d) and (e) and 34181.
Details of our findings are in the Findings and Orders of the Controller section of this report.
We issued a draft report on June 24, 2013. Vanessa Burke, Chief Financial Officer, responded by a letter dated July 12, 2013, disagreeing with Finding 1 and agreeing with Finding 2. The City’s response is included in this final review report as an attachment.
Objectives, Scope,
and Methodology
Views of
Responsible
Officials
Conclusion
ATTACHMENT A
101
Stockton Redevelopment Agency Asset Transfer Review
-3-
This report is solely for the information and use of the City of Stockton as the Successor Agency to the Stockton Redevelopment Agency, the Oversight Board of the Successor Agency, the City of Stockton, and the SCO; it is not intended to be and should not be used by anyone other than these specified parties. This restriction is not intended to limit distribution of this report, which is a matter of public record when issued final.
Original signed by
JEFFREY V. BROWNFIELD, CPA
Chief, Division of Audits
August 5, 2013
Restricted Use
ATTACHMENT A
102
Stockton Redevelopment Agency Asset Transfer Review
-4-
Findings and Orders of the Controller
On February 8, 2011, by Resolution No. R11-003, the Stockton Redevelopment Agency (RDA) transferred $1,361,531 in low and moderate income housing funds to the City of Stockton (City). The City then used the transferred funds to repay two loans to the California Housing Finance Agency (CalHFA). The City entered into the loans with the CalHFA in January 24, 2002, and April
4, 2003.
Because the RDA is not a party to the original agreements with CalHFA, the RDA is not obligated to make the loan payments on behalf of the City; therefore, this is merely a cash transfer from the RDA to the City.
Pursuant to Health and Safety (H&S) Code section 34167.5, any asset transfers by the RDA to a city, county, city and county, or any public agency after January 1, 2011 must be turned over to the Successor Agency for disposition in accordance with H&S Code sections 34117(d).
H&S Code section 34177(d) states that the Successor Agency should forward unencumbered balances of RDA funds to the county auditor- controller, including, but not limited to, the unencumbered balance of the Low and Moderate Income Housing Fund of a former RDA, for distribution to the taxing entities for allocation and distribution in accordance with H&S Code section 34188.
Order of the Controller
Based on H&S Code section 64167.5, the City is ordered to turn over the assets described above to the Successor Agency. The Successor Agency is directed to properly dispose of these assets in accordance with H&S Code sections 34177(d).
City of Stockton’s Management Response
Management disagrees with this finding. SCO auditors were onsite and held an exit conference for the RDA Asset Transfer Review on December 20, 2012. This item was not an issue and did not result in a finding during the original review. As a result of SCO staff turnover, a second review was conducte d and City staff was required to resubmit documentation several months after the initial review was completed.
We were not aware this transaction was in question and would have submitted supporting documentation had it been brought to our attention beforehand.
On February 8, 2011, City Council by Resolution No. 11
-0030
authorized a transfer from RDA Low and Moderate Income Housing Funds (Low/Mod Funds) for the repayment of the two loans in the amount of $1,361,531. The actual repayment including principal and interest totaled $1,261,913.52. The payment was made directly from Low/Mod Funds to repay two HELP loans from the California Housing Finance Agency (CalHFA), a State of California agency. This loan was made by CalHFA to the City of Stockton as the borrower. However, the only way the loan could have been a valid agreement under article XVI, section 18 of the state constitution is if it were payable from a special FINDING 1—
Unallowable low
and moderate
income housing
fund cash transfer
to the City
ATTACHMENT A
103
Stockton Redevelopment Agency Asset Transfer Review
-5-
fund such as the Low and moderate income housing fund. The general fund of the city could not be obligated without 2/3 voter approval. This was not the intent of the loan as the repayment source was a pledge of low/mod program income, which is in fact how the city repaid the loan.
As background, the HELP funds were only used for low and moderate income housing projects. Therefore, Low/Mod Funds were an appropriate source of repayment. In fact, Low/Mod Funds were listed as the repayment source in the original loan applications submitt ed to CalHFA and in the staff reports presented to City Council on September 18, 2001 and September 24, 2002. In addition, the loan agreement states that “the source of funds utilized for repayment shall not be limited to any particular asset(s) of the Borrower. ” This comports with the application and staff report, as RDA funds, not City funds, were the intended source for repayment. This loan has been paid in full to CalHFA, a State of California Agency. The City requests that the SCO revise the report and remove the "order".
SCO’s Comment
The City disagrees with the finding and stated in their response that $1,261,913.52 (principal and interest) was made directly from Low/Mod Funds to repay two HELP loans from the California Housing Finance Agency (CalFHA). The City claimed that in loan applications and staff reports, RDA funds, not City funds, were the intended source for repayment for these loans.
However, the City did not provide any evidence that this was an RDA obligation. Also, even if the RDA funds were the intended source, we found that the City paid off the CalHFA loans prior to the maturity dates, which is a violation H&S Code section 34167(a), which states:
This part is intended to preserve, to the maximum extent possible, the revenues and assets of redevelopment agencies so that those assets and revenues that are not needed to pay for enforceable obligations may be used by local governments to fund core governmental services including police and fire protection services and schools. It is the intent of the Legislature that redevelopment agencies take no actions that would further deplete the corpus of the agencies’ funds regardless of their original source. All provisions of this part shall be construed as broadly as possible to support this intent and to restrict the expenditure of funds to the fullest extent possible.
Finally, the City is correct that this issue was not discussed at the December 20, 2012 exit interview. However, the auditors made inquiries to City staff regarding this issue in early June 2013, prior to the June 18, 2013 exit conference. In addition, the City was provided an opportunity to respond prior to the issuance of the SCO draft report and after using the 10-day comment period.
The finding remains as stated.
ATTACHMENT A
104
Stockton Redevelopment Agency Asset Transfer Review
-6-
On June 7, 2011, the RDA transferred properties for a sanitary pump station, and land known as the Mormon Slough Parkway, by Resolution No. R11-010. The City accepted the transferred properties by Resolution No. 11-0133. In the staff report dated June 7, 2011, the estimated value of the property is between $59,700 and $65,000.
Pursuant to H&S Code section 34167.5, any asset transfers by the RDA to a city, county, city and county, or any other local public agency after January 1, 2011, must be turned over to the Successor Agency for disposition in accordance with H&S Code sections 34177(d), (e), and 34181(a).
However it appears that these assets also may be subject to the provisions of H&S Code section 34181(a). H&S Code section 34181(a) states, in part:
The oversight board shall direct the Successor Agency to do all of the following:
(a) Dispose of all assets and properties of the former redevelopment agency that were funded by tax increment revenues of the dissolved redevelopment agency; provided however, that the oversight board may instead direct the successor agency to transfer ownership of those assets that were constructed and used for a governmental purpose, such as roads, school buildings, parks, and fire stations, to the appropriate public jurisdiction pursuant to any existing agreements related to the construction or use of such an asset . . . [emphasis added]
Order of the Controller
Based on H&S Code section 64167.5, the City would have been ordered to turn over the assets described above to the Successor Agency. The Successor Agency would have been directed to properly dispose of these assets in accordance with H&S Code sections 34177(d), (e), and 34181(a).
However, the Successor Agency Oversight Board approved Resolution No. OB 2012-10-10-06 on October 10, 2012, declaring these assets as for a governmental purpose. Therefore, no further action is needed regarding these assets.
City of Stockton’s Management Response
Management concurs with the Order of the Controller. Management had previously identified prior to the SCO audit that the properties transferred to the City fall within the guidelines of H&S Code section 34181(a); the assets are for a governmental purpose. Accordingly, the original transfer was completed prior to RDA dissolution on June 7, 2011, and reauthorized by the Oversight Board to the Stockton Successor Agency on October 10, 2012, by Resolution No. OB 2012- 10 -10-06. No additional action will be taken.
SCO’s Comment
The City agrees with the finding.
FINDING 2—
Unallowable
transfer to the City
ATTACHMENT A
105
Stockton Redevelopment Agency Asset Transfer Review
-7-
Schedule 1—
RDA Assets Transferred to
the County of Stockton
January 1, 2011, through January 31, 2012
Low and Moderate Income Housing Fund Cash $ 1,361,531 1 Sanitary Pump Station and Land to Update Pump Station 65,000 2 $ 1,426,531
__________________________
1 Must be returned to the Successor Agency.
2 Not subject to be returned to the Successor Agency.
ATTACHMENT A
106
Stockton Redevelopment Agency Asset Transfer Review
Attachment—
City’s Response to Draft Review Report
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ATTACHMENT A
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ATTACHMENT A
119
ATTACHMENT A
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ATTACHMENT A
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ATTACHMENT A
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State Controller’s Office
Division of Audits
Post Office Box 942850
Sacramento, CA 94250-5874
http://www.sco.ca.gov
S12–RDA–902
ATTACHMENT A
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ATTACHMENT B
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ATTACHMENT B
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ATTACHMENT C
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ATTACHMENT C
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ATTACHMENT C
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ATTACHMENT C
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ATTACHMENT C
136
Resolution No.
STOCKTON CITY COUNCIL
RESOLUTION AUTHORIZING THE REPAYMENT OF $1,261,913.52 TO THE SUCCESSOR AGENCY TO RESOLVE FINDING #1 IN THE STOCKTON
REDEVELOPMENT AGENCY ASSET TRANSFER REVIEW REPORT
On February 8, 2011, the Stockton Redevelopment Agency approved the transfer of Low and Moderate Income Housing funds to the City of Stockton for the purpose of paying off loans from the California Housing Finance Authority; and
On June 28, 2011, and June 27, 2012, the Governor of California signed into law Assembly Bills x1, 26 and 1484 (collectively the “Dissolution Law”) making certain changes to the Redevelopment Law, including adding Part 1.8 (commencing with section 34161) and Part 1.85 (commencing with section 34170) (“Part 1.85”) to Division 24 of the California Health and Safety Code (“Health and Safety Code”); and
On August 23, 2011, pursuant to Dissolution Law, the Stockton City Council adopted Resolution No. 11 -0251, allowing the City to serve as the successor agency to the former Redevelopment Agency of the City of Stockton (“Successor Agency”) upon dissolution of the Redevelopment Agency; and
On August 23, 2011, pursuant to Dissolution Law, the Stockton City Council adopted Resolution No. 1 1-0251, electing to assume housing functions previously performed by the Stockton Redevelopment Agency in accordance with Part 1.85 of AB26; and
In August 2013, the State Controller’s Office issued the final Stockton Redevelopment Agency Asset Transfer Review Report; and
By the staff report accompanying this Resolution, incorporated into this Resolution by this reference (Staff Report), the Council has been provided with additional information upon which the actions set forth in this Resolution are based; now, therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF STOCKTON, AS FOLLOWS:
1) Authorize the repayment of $1,261,913.52 from the General Fund Contingency to the Successor Agency to resolve Finding #1 in the Stockton Redevelopment Agency Asset Transfer Review Report issued by the California State Controller’s Office (SCO) in August of 2013.
137
2) Authorize the City Manager to take appropriate and necessary actions to carry out the purpose and intent of this Resolution.
PASSED, APPROVED, and ADOPTED February 8, 2022 .
KEVIN J. LINCOLN II
Mayor of the City of Stockton
ATTEST:
ELIZA R. GARZA, CMC
City Clerk of the City of Stockton
138
Resolution No.
SUCCESSOR AGENCY TO THE FORMER REDEVELOPMENT AGENCY
OF THE CITY OF STOCKTON
RESOLUTION AUTHORIZING THE APPROPRIATE DISBURSEMENT OF $1,261,913.52 AS NECESSARY TO RESOLVE FINDING #1 OF THE STOCKTON
REDEVELOPMENT AGENCY ASSET TRANSFER REVIEW REPORT
The Redevelopment Agency (“Redevelopment Agency”) for the City of Stockton (“City”) was duly created pursuant to the California Community Redevelopment Law (Part 1 [commencing with section 33000] of Division 24 of the California Health and Safety Code) (“Redevelopment Law”); and
On February 8, 2011, the Stockton Redevelopment Agency approved the transfer of Low and Moderate Income Housing funds to the City of Stockton for the purpose of paying off loans from the California Housing Finance Authority; and
On June 28, 2011, and June 27, 2012, the Governor of California signed into law Assembly Bills x1, 26 and 1484 (collectively the “Dissolution Law”) making certain changes to the Redevelopment Law, including adding Part 1.8 (commencing with section 34161) and Part 1.85 (commencing with section 34170) (“Part 1.85”) to Division 24 of the California Health and Safety Code (“Health and Safety Code”); and
On August 23, 201 1, pursuant to Dissolution Law, the Stockton City Council adopted Resolution No. 11-0251, allowing the City to serve as the successor agency to the former Redevelopment Agency of the City of Stockton (“Successor Agency”) upon dissolution of the Redevelopment Agency; and
On August 23, 2011, pursuant to Dissolution Law, the Stockton City Council adopted Resolution No. 11-0251, electing to assume housing functions previously performed by the Stockton Redevelopment Agency in accordance with Part 1.85 of AB26; and
On February 1, 2012, all California redevelopment agencies were dissolved; and
In August 2013, the State Controller’s Office issued the final Stockton Redevelopment Agency Asset Transfer Review Report; and
Successor agencies are tasked with payi ng, performing, and enforcing obligations, and winding down the affairs of the former redevelopment agencies; and
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This Resolution has been reviewed with respect to applicability of the California Environmental Quality Act (“CEQA”), the State CEQA Guidelines (California Code of Regulations, Title 14, section 15000 et seq., hereafter the “Guidelines”), and the City’s environmental guidelines; and
The Resolution is not a “project” for purposes of CEQA, as that term is defined by Guidelines section 15378, because this Resolution is an organizational or administrative activity that will not result in a direct or indirect physical change in the environment, per section 15378(b)(5) of the Guidelines; and
All the prerequisites with respect to the approval of this Resolution have been met; now, therefore,
BE IT RESOLVED BY THE SUCCESSOR AGENCY TO THE FORMER
REDEVELOPMENT AGENCY OF THE CITY OF STOCKTON, AS FOLLOWS:
1. The foregoing is true and correct and is a substantive part of this Resolution and all prerequisites to its adoption have occurred.
2. The adoption of this Resolution is not intended to and shall not constitute a waiver by the Successor Agency of any rights the Successor Agency may have to challenge the effectiveness and/or legality of all or an y portion of AB x1, 26 or AB 1484 through administrative or judicial proceedings.
3. The Successor Agency determines that this Resolution is not a “project” for purposes of CEQA, as that term is defined by Guidelines section 15378, because this Resolution is an organizational or administrative activity that will not result in a direct or indirect physical change in the environment, per section 15378(b)(5) of the Guidelines.
4. The $1,261,913.52 received from the City of Stockton shall be disbursed as appropriate in accordance with Health & Safety Code sections 34176, 34177(d) and (e), and 34181 to resolve Finding #1 in the Stockton Redevelopment Agency Asset Transfer Review Report issued by the State Controller’s Office in August of 2013.
5. The Executive Director , or designee, is hereby authorized to make the transfers required by Health and Safety Code section 34191.4(b)(3)(C).
//
//
//
//
//
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6. The Executive Director, or designee, is hereby authorized to take such actions as are necessary and appropriate to carry out the purpose and intent of this Resolution.
PASSED, APPROVED and ADOPTED February 8, 2022 .
KEVIN J. LINCOLN II
Chairperson of the Successor Agency
to the Former Redevelopment Agency
of the City of Stockton
ATTEST:
ELIZA R. GARZA, CMC
Secretary of the Board,
Successor Agency to the Former
Redevelopment Agency of the City of Stockton
141
Resolve
Redevelopment
Agency Asset
Transfer Review
Report Finding
February 8, 2022
Item 15.1
142
Overview
The City sees value in participating in the
Mossdale Tract Enhanced Infrastructure
Finance District (EIFD).
To participate in the EIFD, the State
requires that Redevelopment Agency
Asset Transfer Review Findings be
resolved.
The City has an unresolved finding from
the August 2013 report by the State
Controller’s Office (SCO).
The finding says the City needs to repay
$1.3 million to the Suc
cessor Agency.
143
Background
In February 2011, the Redevelopment
Agency approved the use of Low and
Moderate Income Housing Funds for the
repayment of two California Housing
Finance Authority loans.
The State dissolved Redevelopment
Agencies effective January 31, 2012.
The SCO deemed this use of Low and
Moderate Income Housing funds
ineligible in the August 20 13 Asset
Transfer Review Report.
The City disagreed with the finding and
the SCO order included repayment of an
amount greater than the amount used.
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Resolving the
Finding
The City cannot prove that the finding
has been resolved.
The SCO has agreed that repayment can
match the $1,261,913.52 used to repay
the loans.
$1,261,913.52 would be transferred from
the General Fund Contingency budget to
the Successor Agency.
These funds may be disbursed by the
County Auditor‐Controller to various
taxing entities or may be directed back
to the Low and Moderate Income
Housing Fund for use on affordable
housing projects.
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Recommended Actions
City Action
Authorize the repayment of $1,261,913.52 from the
General Fund Contingency to the Successor Agency to
resolve Finding #1 in the Stockton Redevelopment
Agency Asset Transfer Review Report.
Successor Agency Action
Authorize the appropriate disbursement of
$1,261,913.52 in accordance with Health & Safety
Code sections 34176, 34177(d) and (e), and 34181 as
necessary to resolve Finding #1 in the Stockton
Redevelopment Agency Asset Transfer Review Report.
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City of Stockton
Legislation Text
File #: 22-0105, Version: 1
APPROVAL OF RESOLUTION OF INTENTION TO PARTICIPATE IN THE PROPOSED “MOSSDALE TRACT ENHANCED INFRASTRUCTURE FINANCING DISTRICT” AND NEWLY
FORMED PUBLIC FINANCING AUTHORITY
RECOMMENDATION
It is recommended that the City Council, adopt a Resolution of Intention to participate in the proposed Mossdale Tract Enhanced Infrastructure Financing District and associated Public Financing Authority established to finance the construction and/or acquisition of capital improvements planned to provide Urban Level of Flood Protection for the Mossdale Tract.
Summary
After the Council receives a briefing from the San Joaquin Area Flood Control Agency (“SJAFCA”) staff and consultants, staff recommends that the Council approve a resolution declaring its intention to participate in the recently established Mossdale Tract Enhanced Infrastructure Financing District (“Mossdale Tract EIFD”). The Mossdale Tract EIFD was established by an action of the Lathrop City Council taken on January 10, 2022 for the purpose of helping finance the necessary flood protection improvements that would provide a 200-year Urban Level of Flood Protection to the Mossdale Tract Area. As part of that action, the Lathrop City Council has identified the participation of the City in the EIFD since a portion of Mossdale Tract is within Stockton City limits. Pursuant to Chapter 2.99 of Part 1 of Division 2 of Title 5 of the California Government Code (commencing with section 53398.50) (the “EIFD Law”), as part of that participation, the governing body of the EIFD, the Public Financing Authority (“PFA”), will have representation from the entities that are proposed to participate. These include the Cities of Stockton, Lathrop and Manteca and San Joaquin County. Along with confirming participation in the proposed EIFD, the attached resolution confirms the appointments of the PFA Members from the City Council that will represent the City on the PFA Board as well as confirms the selection of the public appointments to the PFA made by Lathrop. Finally, the attached resolution directs the City Manager and staff to assist and coordinate with the City of Lathrop in any manner reasonably necessary to give effect to or carry out the intent of the resolution.
DISCUSSION
Background
Senate Bill 5 (“SB5”), and related companion bills, created a new requirement for certain land use decisions made by cities and counties in the California Central Valley. Prior to approving discretionary land use decisions for non-residential projects, and prior to approving ministerial land use decisions (building permits) for new residential buildings in areas that don’t have an Urban Level of Flood Protection, land use agencies are required to make findings related to the provision of 200-year or Urban Level of Flood Protection (“ULOP”). As part of the region’s efforts to comply with this City of Stockton Printed on 2/1/2022Page 1 of 7
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requirement the Cities of Lathrop, Manteca and Stockton made findings of Adequate Progress toward the provision of ULOP 200-year flood protection and have annually validated these findings each year since each respective cities’ initial adoptions based on an Annual Reports of Adequate Progress (“Annual Reports”) submitted to the Central Valley Flood Protection Board (“CVFPB”). Since 2018, the Annual Reports have been approved and submitted by SJAFCA to the CVFPB subsequent to the cities of Lathrop and Manteca becoming members of SJAFCA.
The City of Stockton portion of the tract is predominantly developed and consists of approximately 6,500 homes and a neighborhood commercial shopping center within the Weston Ranch planned development. Approximately 190 acres in the City limits remain undeveloped. Additionally, land area within the City’s sphere of influence is being contemplated for annexation and development.
On September 18, 2018, City Council adopted an Adequate Progress Finding for the Mossdale Tract to allow development to continue to occur in Stockton. Since then, Council has annually adopted an Adequate Progress Finding, with the most recent approval occurring on November 2, 2021 (Resolution 2021-11-02-1204).
The Annual Reports describe the financing plan and the identified funding mechanisms that are being utilized to fund and implement the improvements necessary for ULOP.
These funding mechanisms include:
· Net revenues from the existing RD 17 Assessment District financing the Phase 3 Levee Seepage Project that would be available after the completion of RD 17’s project;
· a Regional Development Impact Fee Program;
· a new Overlay Assessment District that would overlay the existing RD 17 Assessment (OAD); and,
· the proposed Mossdale Tract EIFD
The City Council supported the implementation of the Mossdale Tract ULOP Program and associated funding mechanisms by supporting the amendment of the SJAFCA Joint Exercise of Powers Agreement in late 2017 and then supporting the implementation of the Regional Development Impact Fee in 2018. SJAFCA is currently working to evaluate and implement the proposed Overlay Assessment District in the future. At this time, the Council is requested to coordinate with the start of the formation process of the proposed Mossdale Tract EIFD through approval of the attached resolution.
Present Situation
EIFD’s
Enhanced Infrastructure Financing Districts are districts that receive tax increment generated from the growth in property taxes collected from within a designated district boundary from certain entities that consent to an agreed upon allocation of their property tax revenues. EIFD’s are new entities governed by the creation of a Public Finance Authority (PFA).
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The City of Lathrop has taken the first step toward the creation of the EIFD with its action on January 13, 2022. Exhibit 1 of the attached Resolution includes a copy of the “Resolution of Intention” adopted by the Lathrop City Council on January 13th. With Lathrop commencing the process to create the Mossdale Tract EIFD and establishing the governing body, the PFA, the next step is for each of the participating entities, Manteca, Stockton and the County, to each take corresponding actions declaring their intent to participate in the EIFD, appointing two of their respective members on the newly created PFA Board and approving the appointment of the two public members selected by the City of Lathrop. The first of these actions has taken place by the City of Manteca on January 18, 2022. San Joaquin County will consider the item on February 15, 2022.
The PFA Board itself would then meet and continue the next steps of the EIFD formation process.
Final approval of the formation of the EIFD would then come back to each of the respective City Councils and the Board of Supervisors in the future after the PFA completes the following:
· Preparation of an Infrastructure Financing Plan which includes the requisite analyses and content;
· Mailing of required notices to other taxing entities and residents within the proposed boundary of the EIFD; and,
· Conducting three public of hearings as described further below.
EIFD Formation Process
California Government Code sections 53398.50-53398.88 (EIFD Law) enables jurisdictions to consider formation of EIFD’s as a means of using tax increment financing to fund a variety of eligible improvements with communitywide benefit. The details of how the EIFD accomplishes this goal are described in greater detail in the section below. An EIFD may be formed by resolution of the governing body of a City or a County proposing to dedicate all or a portion of its incremental property tax revenue to the EIFD.
The initial resolution adopted by the local agency commencing the formation of an EIFD establishes a Public Financing Authority that operates as the governing board of the district once the EIFD is fully formed. The PFA’s membership is to consist of members of the legislative body of each Affected Taxing Entity (ATE) and a minimum of 2 members of the public chosen collectively by the legislative bodies of ATEs. In the case of the proposed Mossdale Tract Area EIFD, SJAFCA staff and the consultant team have recommended that each ATE appoint two members from their legislative body.
The Mossdale Tract Area EIFD is to have 4 ATEs, the City of Lathrop, the City of Manteca, the City of Stockton and San Joaquin County, thus, the PFA governing body will consist of 8 members from the respective ATEs and 2 public members, for a total of 10 members. The initial selection of the public membership has been selected by the City of Lathrop as part of its initial action. The attached resolution confirms Lathrop’s initial selection.
Administrative efficiency and consistency of oversight over the Mossdale Tract ULOP program has been a major consideration in SJAFCA staff and consultant’s recommendation. SJAFCA and Staff’s recommended approach is to attempt to have the PFA membership overlap as much as possible with the SJAFCA Board of Director’s membership. This would allow for consistency in governance with respect to the funding and financing of the Program and project implementation. In addition, it has the benefit of streamlining administration (and thus reducing the cost of the EIFD) by allowing for efficient meeting scheduling and attendance by Board membership. SJAFCA’s plan is to schedule City of Stockton Printed on 2/1/2022Page 3 of 7
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PFA Board meetings immediately following the conclusion of SJAFCA BOD meetings. If 9 of 10 members of the PFA Board overlap with SJAFCA’s current 9-member board, then only one additional member needs to be scheduled as part of conducting a PFA Board meeting. Given this, the attached resolution appoints the existing Stockton City Councilmembers appointed to the SJAFCA Board of Directors to the Board of the PFA; Councilmember Dan Wright (who is the current Chair of the SJAFCA Board) and Councilmember Kimberly Warmsley. Further, because SJAFCA’s Board of Directors has one public member, one of the two public members of the PFA selected by Lathrop is Mr. Mike Morrowit (a former City of Manteca Councilmember), who currently occupies the one public member position on the SJAFCA Board of Directors. The City of Lathrop has selected Mr. Steve Dresser, a former Lathrop City Councilmember and former SJAFCA Board Member, as the second public member. As noted above, the appointment of the public membership is to be collectively selected by the ATE’s, therefore Lathrop’s selections for the public membership on the PFA Board is subject to the approval by the City Council. The attached resolution approves the initial selection of the public members by Lathrop. The public members, as indicated in Lathrop’s initial resolution are to have terms of two years and the selection of the public members, subject to collective approval by the ATE’s, is to rotate through the ATE’s of the PFA.
Subsequent to the formation of the PFA by a resolution of intention declaring the intent to form the EIFD and establish the PFA by one of the ATE’s, the PFA would meet a minimum 5 times to conduct the EIFD formation process. The series of 5 meetings, at a minimum, will consist of the following:
1) At the first PFA meeting the PFA would adopt a resolution that would do the following:
a) Direct the preparation of an Infrastructure Financing Plan (IFP); i) Among other things, the IFP contents would include a description of the facilities to be financed by the EIFD, a description of the boundary of the proposed EIFD, certain findings regarding the public benefit of the EIFD, and a financing section that identifies the amount of tax increment to be allocated to the EIFD, projections of tax increment, projections of the fiscal impacts to each of ATE’s and the details of the financing plan for the facilities. b) Adopts conflict of interest code;
c) Sets regular meeting dates;
d) Adopts CEQA guidelines; and,
e) Adopts the EIFD formation procedures.
2) At the second meeting of the PFA, staff is to present the draft IFP, answer questions and consider comments on the draft IFP.
3) At the third meeting of the PFA, the PFA would conduct the First Noticed Public Hearing on the IFP.
4) At the fourth meeting of the PFA, the PFA would conduct the Second Noticed Public Hearing on the IFP.
5) Finally, subject to the approval of the IFP by each ATE after the fourth meeting (Second Public Hearing), and lack of sufficient protests requiring an election, the PFA would conduct a Third Public Hearing. After consideration of all written and oral protests, the PFA may then consider adoption of Resolutions approving the IFP and forming the EIFD.
EIFD Financing Plan
The Mossdale Tract Area EIFD will be funded from property tax increment revenues, which would be pledged, in conjunction with revenues from the proposed OAD, to repay bonds issued to fund City of Stockton Printed on 2/1/2022Page 4 of 7
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construction of the improvements needed to achieve ULOP.
The Mossdale Tract Area EIFD does not impose any new tax on property owners. The ATEs will participate in and contribute property tax increment revenues generated from increased assessed value to the Mossdale Tract Area EIFD.
The financing plan for the Mossdale Tract Area EIFD has been the subject of discussions among the staff of the ATE’s for many months and a conceptual plan has been prepared to support the initial formation efforts. While the plan will be the subject of the initial discussions of the PFA as described above, in general, the following describes the basic terms of how the EIFD tax increment will be allocated and assist in financing SJAFCA’s Mossdale Tract Project.
The Mossdale Tract Area EIFD includes approximately 5,125 developable acres. Approximately 11,200 housing units and 33.1 million square feet of nonresidential buildings are anticipated in the Mossdale Tract Area EIFD between the assumed Base Year of the EIFD (FY 2022-23) and buildout (2060). As development takes place throughout the basin, and as the assessed value of property increases over time, net new property taxes will be generated. As those taxes are allocated to the ATE’s, a portion of the net new property taxes will be allocated to the Mossdale Tract EIFD. The amount that would otherwise be allocated to an ATE, but diverted to the Mossdale Tract EIFD, will be the amount specified in the IFP prepared by the PFA and subject to approval by each of the ATE’s prior to the Third Public Hearing of the PFA. The amount of Tax Increment allocated by each ATE will be subject to change over time as SJAFCA’s ULOP Project is implemented.
The proposed amount of Tax Increment that is reflected in the conceptual plan, and expected to be presented to the PFA after formation, is as follows:
· During the ULOP project construction, anticipated to run through 2029 (Initial Years), the City of Lathrop and the County each would contribute a flat rate of ten (10) percent, the City of Manteca would contribute five (5) percent, and the City of Stockton would contribute one (1) percent (Initial Base Rates).
· However, during the Initial Years, the County would contribute a total of 47 percent of property tax increment, composed of its Initial Base Rate of ten (10) percent (noted above), plus an additional 37 percent of property tax increment. The additional 37 percent would be defined as the County’s Additional EIFD Contribution. This Additional Contribution would be subject to priority repayment, with interest, by SJAFCA from future Mossdale Tract Area Regional Levee Impact Fee revenues collected after 2029.
· The Regional Levee Impact Fee program is already in place and is planned to be updated by SJAFCA. As part of that update, the concept of repayment of EIFD contributions will be incorporated into the nexus study. The fee update is scheduled to be presented to SJAFCA and its member Agencies for approval before the of the presentation of the Infrastructure Financing Plan to the County for approval. This assures that before the County commits to provide any tax increment to the project that would be subject to repayment, the repayment mechanism is in place.
· Following the Initial Years, the maximum portion of the total property tax increment revenue allocation proposed to be apportioned to the EIFD will be 20 percent until such time as the cost of eligible EIFD facilities has been satisfied.
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The details of the proposed plan described above are conceptual at this time and subject to further review by the PFA as part of the PFA’s development of the IFP. However, the conceptual plan has been evaluated by staff and deemed to be a feasible alternative for the EIFD, thus staff is recommending that the formation of the EIFD progress at this time.
The revenues allocated to the EIFD would be transferred to SJAFCA to fund the ULOP Project initially on a Pay-As-You-Go basis. To finance the construction of the ULOP Project, it is expected that SJAFCA would issue two separate series of debt. The first debt issuance would be secured by a pledge of Overlay Assessment District (OAD) revenues and the second series would be secured by a combined pledge of OAD revenues and EIFD revenues pledged to SJAFCA.
This conceptual plan is subject to further analysis and approvals by the ATE’s as well as property owners with respect the proposed OAD.
EIFD Analyses and Policy Considerations
Additional Analysis
As required by the relevant EIFD authorizing legislation, in addition to the financing plan and detailed description of the amount of property tax allocations from each of the ATE’s, the IFP will present information and analysis that includes the following:
1. A detailed description of the Boundary of the EIFD. The plan is to create a set of exhibits that will provide more detail than the Boundary identified in Exhibit “B” to the proposed resolution.
2. A description of the facilities to be financed by the EIFD.
3. A finding related to the communitywide benefit of the improvements and facilities financed by the EIFD.
4. An analysis of the fiscal impacts to each of the ATE’s associated with new development within the EIFD before and after the allocation of the property tax revenues to the EIFD.
5. A plan for replacing any dwelling units that are proposed to be, or might be, removed as a result of the project.
6. A statement of the goals the EIFD proposes to achieve for the project to be financed.
Policy Considerations
A significant amount of time has been spent preparing, reviewing, and updating detailed analyses to address the fiscal impacts (specifically Item 4 above) of the proposed EIFD. From a policy perspective, the effective use of an EIFD as a tool for infrastructure financing necessitates there be positive economic and fiscal impact to the community.
An economic analysis completed in 2015 by the Center for Business and Policy Research at the Eberhardt School of Business concluded that the statewide total economic benefit of future development in the basin, which would only be able to move forward if the ULOP project is completed, at buildout, would be more than $11 Billion and 66,000 jobs. In addition, analyses completed by SJAFCA’s consultant team projects that there are long-term positive fiscal impacts to the region at buildout of the basin.
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Additional Requirements and Conditions
EIFD Law (Government Code Section 53398.54) requires that prior to participation in the governance of an EIFD, a City or a County that previously created a Redevelopment Agency, must comply certain dissolution requirements specified in statute. The attached resolution ensures that the City is compliant with the Law by;
1. Making the appointments of the City Council members to the PFA Board conditioned on the City’s compliance with the dissolution requirements; and,
2. Authorizing the City Manager to take the necessary actions to ensure compliance with those requirements.
ACTION TO BE TAKEN FOLLOWING APPROVAL:
Upon approval of this resolution, the newly formed EIFD PFA Board will commence meeting and continue the formation process as described above. The first meeting of the PFA Board is scheduled for February 17, 2022. It is important to note that if the Board does not approve this resolution, the currently scheduled PFA Board meeting would not take place.
FINANCIAL SUMMARY
There is no immediate fiscal impact to the City by adopting a Resolution of Intention to participate in the Enhanced Infrastructure Financing District and associated Public Financing Authority; all initial costs associated with the formation of the EIFD are covered by SJAFCA. The Fiscal Impacts of the EIFD to the City will be analyzed as part of the preparation of the IFP and when the Council considers approval of the IFP at later date (currently estimated to be June 2022) and Fiscal Impacts will be presented in detail at that time. Most of the EIFD revenues will be generated by property taxes on new development that would not exist absent the 200-year flood protection. A small portion of the City of Stockton contribution, estimated to be less than $5,000 annually, will be derived from the property value growth on already developed properties. This revenue growth is part of the City’s Long-Range Financial Plan and will be foregone with the formation of the EIFD.
Compliance with Redevelopment Agency dissolution requirements will cost the City’s General Fund approximately $1.3 million to resolve a finding in the Asset Transfer Review Report from 2013 as described in the separate report on this meeting agenda.
It is estimated that Stockton’s share of the EIFD revenues will be $11.2 million in property tax increment over a 40-year period. The potential benefit, property tax revenue growth retained by the City, from the flood protection project exceeds the projected cost of participating in the EIFD.
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RESOLUTION NO.
RESOLUTION O F INTENT TO PARTICIPATE IN THE PROPOSED MOSSDALE
TRACT ENHANCED INFRASTRUCTURE FINANCING DISTRICT AND NEWLY
FORMED PUBLIC FINANCING AUTHORITY
WHEREAS, on January 1 3, 2022, the City Council of the City of Lathrop ( the “Lathrop City Council”) approved Resolution No. 22 -5019 which is attached to this Resolution as Exhibit 1 (the “Lathrop Resolution”); and WHEREAS, pursuant to Chapter 2.99 of Part 1 of Division 2 of Title 5 of the California Government Code (commencing with section 53398.50) (the “EIFD Law”), the Lathrop Resolution authorized the initiation of a process to establish an Enhanced Infrastructure Financing District whose proposed name is the “Mossdale Tract Enhanced Infrastructure Financing District” (“Mossdale EIFD”); and WHEREAS, in accordance with section 53398.54 of the EIFD Law, the City of Stockton (the “City”) is required to comply with the prerequisites prior to initiating the creation of or participating in the governance of the proposed Mossdale EIFD and will provide the required certification to the Department of Finance in accordance with the EIFD Law; and
WHEREAS, the proposed boundaries of the Mossdale EIFD are identified on a map of the Mossda le EIFD on file in the office of the City Clerk of the City of Lathrop entitled “Proposed Boundaries of the Mossdale EIFD” a copy of which is attached to this Resolution as Exhibit 2; and
WHEREAS, the proposed Mossdale EIFD will be used to finance certain public flood control facilities including, but not limited to, public flood risk reduction infrastructure within the proposed boundaries of the Mossdale EIFD; and WHEREAS, the Lathrop Resolution also established a Public Financing Authority (“PFA”) to serve as the governing body of the proposed Mossdale EIFD and which will also be responsible for implementing the Infrastructure Financing Plan (“IFP”) required under EIFD Law; and
WHEREAS, as stated in the Lathrop Resolution, it is proposed that the C ity participate with the City of Lathrop in the proposed Mossdale EIFD as a taxing entity; and WHEREAS, the IFP must be approved by the Stockton City Council (“City Council”) before the City may be considered a participating taxing entity in the proposed Mossdale EIFD or any incremental tax revenue from the C ity may be used by the proposed Mossdale EIFD; and
WHEREAS, it is anticipated that the participating taxing entities for the proposed Mossdale EIFD shall be the City of Stockton, County of San Joaquin, the City of Manteca, and the City of Lathrop, as participating taxing entities (collective ly, the “Participating Entities”);
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NOW, THEREFORE, BE IT RESOLVED , by the City Council of the City of Stockton that:
SECTION 1. Recitals. The foregoing recitals are true and correct.
SECTION 2. Intention to Participate . The City Council intends that the City of Stockton will participate in the proposed Mossdale EIFD as described in the Lathrop Resolution as a taxing entity if the City Council approves the IFP at a later date.
SECTION 3. Appointment of City PFA Members . Pursuant to Government Code section 53398.51.1, the City Council hereby conditionally appoints the following two City Council members, who also serve on the board of the San Joaquin Area Flood Control Agency (“SJAFCA”), to serve on the governing board of t he Public Financing Authority:
Dan Wright
Kimberly Warmsley
Such appointment and participation in the governance of the PFA is conditioned on the City’s compliance with the prerequisites of Government Code section 53398.54 and City’s appointment and participation will only become effective upon said compliance.
City Manager is authorized to take all actions necessary or advisable to achieve said compliance.
SECTION 4. Approval of Public Membership Appointments and Membership Appointment Structure. In compliance with the requirements of the EIFD Law, the City Council approves the appointment of the following PFA public membership (subject to approval by the legislative bodies of the Participating Entities) and the legislative body membership appointment structure of the PFA:
Michael R. Morowit
Steve Dresser
SECTION 5. Distribution of Materials and Notices. In accordance with and in the manner authorized by the EIFD Law, the City Council hereby authorizes the City staff and requests the assistance of City of Lathrop staff , San Joaquin County staff, and SJAFCA staff to distribute, mail, post, and provide any and all necessary materials and notices related to the formation of the proposed Mossdale EIFD. The City Manager is hereby authorized to provide any assistance to the PFA to cause notice of the public hearings to be given in the manner and at the times and to have the notices contain the information required by the EIFD Law. The City Manager is hereby directed to assist the clerk of any of the other Participating Entities in any manner reasonably necessary to give effect to or carry out the intent of this section.
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SECTION 6. Severability. If any section, subsection, phrase, or clause of this Resolution is for any reason found to be invalid, such section, subsection, phrase, or clause shall be severed from, and shall not affect the validity of, all remaining portions of this Resolution that can be given effect without the severed portion.
SECTION 7. General Authorization. The City Manager and all other officers and agents of the City are hereby authorized and directed to take al l actions necessary or advisable to give effect to the transactions contemplated by this Resolution. Any actions heretofore taken by said officers and agents, on behalf of the City, that is in conformity with the purposes and intent of this Resolution and with the provisions of the EIFD Law with respect to the proposed Mossdale EIFD, are hereby approved and confirmed.
SECTION 8. Effective Date. This Resolution shall take effect immediately upon its approval by the City Council of the City of Stockton.
* * * * * * * * * * * * * * *
PASSED AND ADOPTED _____________, 2022, by the following vote of the City Council of the City of Stockton, to wit:
AYES: _____
NOES: _____
ABSENT: _____
ABSTAIN: _____
_________________________
KEVIN J. LINCOLN II
Mayor of the City of Stockton
ATTEST:
__________________________
ELIZA R. GARZA, CMC
City Clerk of the City of Stockton
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RESOLUTION NO. 22- 5019
A RESOLUTION OF INTENTION OF THE CITY COUNCIL OF THE CITY OF
LATHROP PROPOSING TO ESTABLISH AN ENHANCED INFRASTRUCTURE
FINANCING DISTRICT TO FINANCE THE CONSTRUCTION AND/ OR
ACQUISITION OF CAPITAL IMPROVEMENTS, ESTABLISH A PUBLIC
FINANCING AUTHORITY ( PFA), APPOINT TWO LATHROP COUNCIL MEMBERS
AND TWO PUBLIC MEMBERS TO THE PFA, AND AUTHORIZE CERTAIN OTHER
ACTIONS RELATED THERETO
WHEREAS, pursuant to Chapter 2. 99 of Part 1 of Division 2 of Title 5 of the California Government Code ( commencing with section 53398. 50) ( the EIFD Law"), the City Council ( the " City Council") of the City of Lathrop ( the " City") is authorized to initiate the process to establish an enhanced infrastructure financing district ( the EIFD"); and
WHEREAS, in accordance with section 53398. 54 of the EIFD Law, the City has complied with the prerequisites prior to initiating the creation of or participating in the governance of the EIFD and will provide the required certification to the Department of Finance in accordance with the EIFD Law; and WHEREAS, the City Council proposes the establishment of an EIFD to finance certain public flood control facilities including, but not limited to, public flood risk reduction infrastructure; and
WHEREAS, the EIFD will be formed by a public financing authority ( the Public Financing Authority" or " PFA") that will be the governing board of the EIFD and will be responsible for implementing the infrastructure financing plan; and WHEREAS, in accordance with section 53398. 51. 1 of the EIFD Law, it is anticipated that the Public Financing Authority' s governing board shall consist of members from the legislative bodies of the participating taxing entities, which are the City, San Joaquin County ( the County"), the City of Manteca, the City of Stockton collectively, the Participating Entities"), and two public members to be appointed by the legislative bodies of the Participating Entities; NOW, THEREFORE, BE IT RESOLVED, that the City Council for the City of Lathrop does hereby determine and declare as follows:
SECTION 1. Recitals. The foregoing recitals are true and correct.
SECTION 2. Intention and Proposal to Establish EIFD. The City Council proposes and intends to cause the establishment of an EIFD under the provisions of the EIFD Law.
SECTION 3. Name of EIFD. The name proposed for the EIFD is " Mossdale Tract Enhanced Infrastructure Financing District."
Resolution No. 22- 5019
EXHIBIT 1
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SECTION 4. Description of Boundaries. The proposed boundaries of the EIFD are as shown on the map of the EIFD ( attached to the ) anuary 13, 2022 staff report as Attachment B) which boundaries are hereby approved and to which map reference is hereby made for further particulars.
SECTION 5. Description of Facilities & Development. The types of public facilities proposed to be financed by the EIFD and pursuant to the EIFD Law are those listed as facilities in the January 13, 2022 staff report as Attachment C, incorporated herein ( the ' Facilities"). The development area to be assisted by the EIFD is commonly referred to as Mossdale Tract.
SECTION 6. Necessity of EIFD and Goal. The City Council hereby finds that the EIFD is necessary for the area within the EIFD, the City, and the Participating Entities. The City Council' s goal for the EIFD is to create the means by which to assist in the provision of public flood control facilities of communitywide significance that provide significant benefits within the boundaries of the EIFD or the surrounding community and, for those facilities located outside the EIFD boundaries, also have a tangible connection to the EIFD.
SECTION 7. Use of Incremental Tax Revenues. The City Council hereby declares that, pursuant to the EIFD Law and, if approved by resolution of the City and if approved by resolution of the Participating Entities, pursuant to Government Code section 53398. 68, incremental property tax revenue from the City and the Participating Entities within the EIFD, but not from any of the other affected taxing entities within the EIFD, will finance the Facilities. The incremental property tax revenues will be described in an infrastructure financing plan ( the Infrastructure Financing Plan") to be prepared for the PFA, the City Council, and the Participating Entities under the EIFD Law.
SECTION 8. Establishment of Public Financing Authority.
A. The City Council agrees to the following legislative membership appointment structure and hereby establishes the PFA as the governing board of the EIFD.
B. PFA membership shall be comprised of:
i) The following two members of the City Council who also serve on the board of San Joaquin Area Flood Control Agency are hereby appointed by the City Council: Paul Akinjo; Diane Lazard. ii) From the County of San Joaquin, two Board of Supervisors members who also serve on the board of the San Joaquin Area Flood Control Agency to be appointed by the County of San Joaquin Board of Supervisors.
Resolution No. 22- 5019
EXHIBIT 1
158
iii) From the City of Manteca, California, two City Council members who also serve on the board of the San ) oaquin Area Flood Control Agency to be appointed by the Manteca City Council.
iv) From the City of Stockton, California, two City Council members who also serve on the board of the San Joaquin Area Flood Control Agency to be appointed by the Stockton City Council.
v) Two public members to be appointed by the legislative bodies of the Participating Agencies. The City Council approves the appointment of the following two PFA public members subject to approval by the legislative bodies of the Participating Entities:
Steve Dresser; Michael R. Morowit
C. Members shall serve at the pleasure of their respective appointing legislative bodies and shall continue to serve unless and until their respective appointing legislative bodies make a new appointment, the member resigns, or other forfeiture by operation of law. However, the term of the public members will be for a two ( 2) year term.
D. The PFA membership is subject to compliance with the EIFD Law and Government Code sections 54970 and 54972.
E. In the event any of the Participating Entities listed herein choose not to participate as a taxing entity under the EIFD Law, the PFA membership shall be adjusted to reflect that occurrence.
F. Participating Entities may appoint alternates to their respective PFA membership appointments in accordance with the EIFD Law.
G. Subsequent PFA public member appointments will be initiated by the legislative bodies of the other Participating Entities in alphabetical order.
H. County of San Joaquin, City of Stockton, and City of Manteca' s participation in the governance of the PFA is subject to adoption of the intent to participate by the respective legislative bodies of said agencies.
SECTION 9. Preparation of Infrastructure Financing Plan. The City Council hereby requests the PFAto request the assistance of County staff, San Joaquin Area Flood Control Agency (" SJAFCA") stafF, and to direct Larsen Wurzel & Associates and Economic & Planning Systems Inc. to prepare the Infrastructure Financing Plan in accordance with the EIFD Law.
Resolution No. 22- 5019
EXHIBIT 1
159
SECTION 10. Distribution of Infrastructure Financin4 Plan. In accordance with and in the manner authorized by the EIFD Law, the City Council hereby authorizes the City staff and requests the assistance of County staff and SJAFCA staff to distribute a notice which summarizes the Infrastructure Financing Plan and lists the internet website where applicable EIFD and CEQA documents may be found to each owner of land and resident within the boundaries of the EIFD and each affected taxing entity ( as defined in the EIFD law). The City hereby authorizes City stafF and requests the assistance of County staff and S)AFCA staff to also make available for public inspection the Infrastructure Financing Plan and any required CEQAdocuments and to also distribute the Infrastructure Financing Plan to the PFA, the planning commissions of the Participating Entities, and the legislative bodies of the Participating Entities in the manner authorized under the EIFD Law.
SECTION 11. Public Hearina. In accordance with the EIFD Law, the City Council hereby sets a public hearing for July 11, 2022, at the hour of 7: 00 p.m. or as soon as possible thereafter as the matter may be heard at Lathrop City Hall, as the time and place when and where the City Council will conduct a hearing on the proposed establishment of the EIFD. In accordance with the EIFD Law, the City Council hereby sets the first PFApublic hearing to be Wednesday, April 21, 2022 at the hour of 10:00 a.m. or as soon as possible thereafter as the matter may be heard, at the principal meeting place of the PFAwhich shall be the location of the SJAFCA Board meetings typically held at Stockton City Hall, 425 N. EI Dorado Street, Second Floor in Council Chambers, as the time and place when and where the PFA will conduct the first public hearing on the proposed establishment of the EIFD and the Infrastructure Financing Plan in accordance with the EIFD Law. The date, time, and location of the following two public hearings required by the EIFD Law shall be established by the PFA in accordance with, and in the manner required by, the EIFD Law.
SECTION 12. Providinq of Notice. City Clerk is directed to and the Clerk of the Board of Supervisors is hereby requested to mail a copy of ( i) this Resolution, or ii) a notice of intention containing specific information as set forth in California Government Code section 53398. 60, to the PFA and each owner of land ( as defined in the EIFD Law), within the EIFD, the Participating Entities, and to each affected taxing entity ( as defined in the EIFD Law). The Clerk of the Board of Supervisors is hereby requested to provide any assistance to the PFA so as to cause notice of the public hearings to be given in the manner and at the times and to have the notices contain the information required by the EIFD Law. The City Clerk is hereby authorized to carry out the intent of this section and is directed to assist the Clerk of the Board of Supervisors or the clerk of any of the other Participating Entities in any manner reasonably necessary to give efFectto or carry out the intent of this section.
SECTION 13. Establishment of EIFD. This Resolution in no way obligates the PFA to establish the EIFD or for the Participating Entities to approve the Infrastructure Financing Plan.
Resolution No. 22- 5019
EXHIBIT 1
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The establishment of the EIFD is subject to the approval of the PFA by resolution following the holding of the public hearing( s) referred to above. The approval of the Infrastructure Financing Plan is subject to approval by the respective legislative bodies of the Participating Entities at a later date in accordance with the EIFD Law.
SECTION 14. Severabilitv. If any section, subsection, phrase, or clause of this Resolution is for any reason found to be invalid, such section, subsection, phrase, or clause shall be severed from, and shall not affect the validity of, all remaining portions of this Resolution that can be given effect without the severed portion.
SECTION 15. General Authorization. The City Clerk and all other officers and agents of the City are hereby authorized and directed to take all actions necessary or advisable to give effect to the transactions contemplated by this Resolution.
Any actions heretofore taken by said officers and agents, on behalf of the City, that is in conformity with the purposes and intent of this Resolution and with the provisions of the EIFD Law with respect to the Mossdale EIFD, are hereby approved and confirmed.
SECTION 16. Effective Date. This Resolution shall take effect immediately upon its adoption.
Resolution No. 22- 5019
EXHIBIT 1
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The foregoing resolution was passed and adopted this 13th day of January 2022, by the following vote of the City Council, to wit:
AYES: Akinjo, Lazard, Torres- O' Callaghan, and Dhaliwal NOES: None
ABSENT: Diallo
ABSTAIN: None
Sonny D ali , ayor
ATTEST: APPROVED AS TO FORM:
Tere a Vargas, City Clerk Salvador Navarrete, City Attorney Resolution No. 22- 5019
EXHIBIT 1
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0 1.50.75 Mi
Map produced on:12/27/2021
Proposed Boundary of Mossdale
Tract
Enhanced Infrastructure Financing District (EIFD)
County of San Joaquin, California
5 5
5 99
99 LATHROP
MANTECA
STOCKTON
French Camp
Antioch
Elk Grove
Fairfield
Modesto
Fremont
Hayward
Mountain
View
Vacaville
Stockton
TracySan Ramon
±
Legend
Proposed Mossdale EIFD
Boundary
Local City Limits
Overview Map
Basemap and Overview Aerials provided by ESRI
CLERK'S MAP FILING STATEMENT:
FILED IN THE OFFICE OF THE CLERK OF CITY OF LATHROP,
COUNTY OF SAN JOAQUIN, ST
ATE OF CALIFORNIA, THIS __
DAY OF JANUARY , 2022.
CITY CLERK,
CITY OF LATHROP, CALIFORNIA
CLERK'S CERTIFICATE:
I HEREBY CERTIFY THAT THE MAP SHOWING THE
BOUNDARIES OF, CITY
OF LATHROP MOSSDALE TRACT
ENCHANCED INFRASTRUCTURE FINANCING DISTRCT
(EIFD), COUNTY OF SAN JOAQUIN, STATE OF CALIFORNIA,
WAS APPROVED BY THE CITY COUNCIL OF THE CITY OF
LATHROP AT A REGULAR MEETING THEREOF, HELD ON __
DAY OF JANUARY , 2022, BY ITS RESOLUTION NO. 2022-____.
CITY CLERK,
CITY OF LATHROP, CALIFORNIA
EXHIBIT 2
163
1SJAFCA MISSION STATEMENT ‐ Reduce and Manage the Region’s Flood Risk
PROPOSED MOSSDALE TRACT
ENHANCED INFRASTRUCTURE FINANCING DISTRICT
Stockton City Council
February 8, 2022
Agenda Item 15.2
164
Reduce and Manage the Region’s Flood Risk
SJAFCA Mossdale Program
SJAFCA Strategic Plan Priority Actions related to Mossdale Tract Urban Level of Protection:
•Support USACE in initiating Phase 2 of the Lower San Joaquin River Project Feasibility Study
•Complete the Mossdale Urban Flood Risk Reduction Study and advance Design and Environmental Review
•Achieve 200-year Urban Level of Flood Protection for the Mossdale Tract Area (by 2028) and present Adequate Progress until Improvements are Complete Implementation of the proposed Enhanced Infrastructure
Financing District is integral to Adequate Progress
2 165
3Reduce and Manage the Region’s Flood Risk
Mossdale Tract Funding
• Program must be completed by 2028 (AB 838 3‐Year Extension) • Phase 4 Work (200‐Year ULOP Project) currently estimated to be $230M (2021$’s) taking into consideration SJAFCA’s Climate Adaptation Policy • Almost entirely locally funded at this time
• New Local Funding Mechanisms
• Development Impact Fee collected throughout Mossdale Tract Basin • Been in place since early 2019. Currently working through update process. • Proposed Overlay Assessment District
• Would overlay RD 17’s existing assessment funding the local share of the Phase 3 Levee Seepage Repair Project. Preliminary Rates are being evaluated. Looking to advance assessment formation in the Spring (early 2022).
• Proposed Mossdale Tract Enhanced Infrastructure Financing District • A partnership between the Cities of Lathrop, Manteca, and Stockton and San Joaquin County dedicating a portion of Property Tax Increment toward the project to fund / finance the Project. 166
Reduce and Manage the Region’s Flood Risk
Summary of Request
Support formation of the EIFD by adopting the Resolution of Intention to Participate
1. Supports establishment of the Governance Entity (a Public Financing Authority) which is the entity that will:
a. Prepare the necessary documentation - the Infrastructure Financing Plan; and, b. Take the formal steps of forming the EIFD subject to approval by the participating agencies
2. Appoint Stockton’s members of PFA and confirm appointment of Public Members a. Staff recommendation is to overlap membership between EIFD PFA and SJAFCA as much as possible for administrative efficiencies. Public Members will be chosen today from applications received, subject to approval by the other agencies.
3. Authorization to provide support for any noticing actions to be carried out consistent with relevant EIFD Law
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Public Financing Authority - Membership
• Public Financing Authority is proposed to consist of two (2) members from each of the four (4) participating agencies governing bodies (Council Members / Supervisors) plus two (2) members of the public (a total of 10 members)
• Each participating Agency appoints their members and approves the two public members
• Attached resolution, as recommended, appoints Council Members Wright & Warmsley to the PFA andapproves the appointment to the two public members selected by Lathrop; Mike Morowit and Steve Dresser • After Stockton, the County would be the last participating agencies to approve the public members
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Reduce and Manage the Region’s Flood Risk
Policy Considerations
•The Mossdale Tract Area EIFD will allow Stockton and the other Affected Taxing Entities to continue to validate their findings of Adequate Progress toward ULOP.
•The effective use of an EIFD as a tool for infrastructure finance should result in positive economic and fiscal impacts to the community.
•The Center for Business and Policy Research at the Eberhardt School of Business concluded that total economic benefits of future development in the basin, which would only be able to move forward if the ULOP project is completed, would be more than $11 Billion and 66,000 jobs at buildout.
•In addition, analyses completed by SJAFCA’s consultant team estimate positive fiscal impacts for each of the ATEs.
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Reduce and Manage the Region’s Flood Risk
EIFD Formation Process
Formation process started with an initial action of a Participating Entity (Lathrop) and appointment of members to the PFA by all of the participating entities • Governance Entity / PFA
Process continues with meetings of new PFA
• Five Meetings of PFA
• Organizational meeting / Preparation of IFP and Three Noticed Public Hearings • Includes multiple mailed notices to all property owners/residents within the EIFD and any other agencies within the proposed boundary
Formation is conditioned on Participating Entity approval • Participating entities must approve IFP prior to Third/Final Public Hearing of PFA 7Reduce and Manage the Region’s Flood Risk
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Reduce and Manage the Region’s Flood Risk
Enhanced Infrastructure Financing Districts
An Enhanced Infrastructure Financing District (EIFD) is a tax increment financing mechanism through which jurisdictions allocate a portion of new property tax revenues to fund eligible improvements of communitywide benefit.
8Reduce and Manage the Region’s Flood Risk
EIFD Contribution
City General Fund
EIFD Funding
‐ Infrastructure Projects of
Community Benefit
‐EIFD Administrative Costs
‐ County Reimbursement
Remaining City Property Tax
Revenues
Incremental New
Property Tax Increment
Incremental Value of
Anticipated New
Development in the EIFD
Incremental Growth of
Exisiting Value within the
EIFD Boundary
City Share of Property Tax
Revenues
171
Proposed
Boundary of
the EIFD
• Reflects the Area of
Benefit of ULOP
• Consistent with the
Area subject to the
Regional Levee
Impact Fee and
Proposed Overlay
Assessment District
9 172
Reduce and Manage the Region’s Flood Risk
Infrastructure Financing Plan
10Reduce and Manage the Region’s Flood Risk
As required by Government Code Sections 53398.59–53398.74, the completed IFP contains the following information:
1. The EIFD boundary
2. Public facilities and other forms of development or financial assistance
3. A finding of communitywide significance
4. Financial analyses that summarize:
a. Maximum tax increment committed to the EIFD
b. Amount of tax revenues generated for the EIFD
c. A financing plan and any intention to incur debt
d. A limit on total tax increment allocated to the EIFD e. The date the EIFD will cease to exist
f. An analysis of projected net fiscal impacts of the EIFD on affected taxing entities
5. A dwelling unit replacement plan
6. The goals of the EIFD
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Reduce and Manage the Region’s Flood Risk
Summary of Draft Analyses Completed
To be included as attachments to the IFP, draft Fiscal Impact Analyses and EIFD Revenue Analyses have been completed for each affected taxing entity and will be ready for review by the new PFA at its Second meeting
Fiscal Impact Analysis
• The Fiscal Impact Analysis estimates the costs of providing municipal services to development within the EIFD as well as the net fiscal impact to each jurisdiction's General Fund of EIFD development, including estimated EIFD contributions under each scenario.
EIFD Revenue Analysis
• The EIFD Revenue Analysis estimates the annual EIFD contribution generated by anticipated development within each jurisdiction, under both allocation scenarios.
Preliminary Bond Proceeds Analysis
• A preliminary Bond Proceeds Analysis has been completed in order to estimate the capacity of the EIFD to generate proceeds for construction of the Mossdale ULOP Project. 11Reduce and Manage the Region’s Flood Risk
174
City of Stockton Annual EIFD Revenues and Rates
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$0.0
$0.5
$1.0
$1.5
$2.0
$2.5
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2046
2047
2048
2049
2050
2051
2052
2053
2054
2055
2056
2057
2058
2059
2060
2061
EIFD Revenue (in Millions$)
Annual EIFD Revenue ‐ Variable Tax Rate Scenario
Annual EIFD Revenue ‐ Maximum Tax Rate Scenario
Allocation Rate ‐ Variable Tax Rate Scenario
Allocation Rate ‐ Maximum Tax Rate Scenario
1.0%
20.0%
13.0%
9.5%
4.5%
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Reduce and Manage the Region’s Flood Risk
Next Steps & Requested Action
• Cities of Lathrop and Manteca have each taken respective actions. • After Stockton, San Joaquin County would consider a similar companion resolution (on February 15th) that:
• Declares its intent to participate in the EIFD; and,
• Appoints its respective members to the PFA Board (consistent with the intent to overlap the SJAFCA Membership as much as possible)
• First Public Financing Authority Meeting is scheduled for February 17th Recommendation: Council adoption of the attached Resolution of Intention to Participate in the Proposed Mossdale Tract Enhance Infrastructure Financing District and newly formed Public Financing Authority.
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176
Questions?
SJAFCA MISSION STATEMENT ‐ Reduce and Manage the Region’s Flood Risk 14 177
City of Stockton
Legislation Text
File #: 22-0135, Version: 1
COUNCIL COMMITTEE/BOARD AND COMMISSION MINUTES
RECOMMENDATION
Information item only. No action required.
City of Stockton Printed on 2/1/2022Page 1 of 1
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MINUTES
WATER ADVISORY GROUP
MEETING OF OCTOBER 6, 2021
Council Chamber, City Hall 425 N. El Dorado St. Stockton, CA
1. CALL TO ORDER/ROLL CALL - 3:30 PM
Roll Call
Present:
Mary Elizabeth
Jill Stevenson
Donald Strongman
Paul Sensibaugh
Absent:
Charles Nunez.
2. PLEDGE TO THE FLAG
The Pledge of Allegiance was led by Member Strongman
3. PUBLIC COMMENT
None
4. NEW BUSINESS
4.1 21-0317 APPROVAL OF MINUTES
Legislation Text
Attachment A - 2021-02-03 Minutes for Approval Special
Attachment B - 2021-04-07 Minutes for Approval
Approve Motion 2021-10-06-0401 approving the minutes from the Water Advisory Group special meeting for February 3, 2021 and the regular meeting for April 7, 2021
4.2 Moved by: Donald Strongman, seconded by Jill Stevenson.
Vote: Motion carried 4-0
Yes: Mary Elizabeth , Jill Stevenson, Donald Strongman, and Paul Sensibaugh.
Absent: Charles Nunez.
October 6, 2021 - Water Advisory Group Page 1 of 3
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