City Council and Concurrent Authorities
March 1, 2022

City Council/Successor Agency to the
Redevelopment Agency/Public
Financing Authority/Parking Authority
Concurrent
City of Stockton
Meeting Agenda - - Revised
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, March 1, 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. 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 22-0200

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.

Department: City Attorney

3.2 22-0202 CONFERENCE WITH LABOR NEGOTIATOR

1 March 1, 2022City Council/Successor Agency to
the Redevelopment Agency/Public
Financing Authority/Parking
Authority Concurrent
Meeting Agenda - - Revised
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 22-0206 PUBLIC EMPLOYEE PERFORMANCE EVALUATION:

Recommended Action: City Manager

This Closed Session is authorized pursuant to Government Code section 54957.

Department: City Attorney

3.4 22-0208 PUBLIC EMPLOYEE PERFORMANCE EVALUATION:

Recommended Action: City Attorney

This Closed Session is authorized pursuant to Government Code section 54957.

Department: City Attorney

3.5 22-0212 PUBLIC EMPLOYEE PERFORMANCE EVALUATION:

.RECOMNDATION
City Clerk

This Closed Session is authorized pursuant to Government Code section 54957.

Department: City Attorney

3.6 22-0210 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

4. PUBLIC COMMENT*

2 March 1, 2022City Council/Successor Agency to
the Redevelopment Agency/Public
Financing Authority/Parking
Authority Concurrent
Meeting Agenda - - Revised

5. RECESS TO CLOSED SESSION

6. REGULAR SESSION CALL TO ORDER/ROLL CALL

7. INVOCATION/PLEDGE TO FLAG

8. REPORT OF ACTION TAKEN IN CLOSED SESSION

9. ADDITIONS TO REGULAR SESSION AGENDA***

10. RECOGNITIONS, ANNOUNCEMENTS, OR REPORTS

10.1 22-0185
COMMENDATION: 30TH ANNIVERSARY OF THE FILIPINO

AMERICAN NATIONAL HISTORICAL SOCIETY
Department: Office of the Mayor

11. PUBLIC COMMENTS* – MATTERS NOT ON THE AGENDA

12. CONSENT AGENDA

12.1 22-0233 APPROVE BY MOTION AMENDMENTS TO THE CONTRACT OF

EMPLOYMENT FOR CITY MANAGER HARRY BLACK
Department: Office of the Mayor
Draft First Amended Contract for City ManagerAttachments:

12.2 22-0231 APPROVAL OF CITY COUNCIL MINUTES
Recommended Action: RECOMMENDATION
Approve the minutes from the City Council meeting of December 14, 2021.

Department: City Clerk
Attachment A - 2021-12-14 MinutesAttachments:

12.3 22-0095 ADOPT A RESOLUTION AUTHORIZING THE EXECUTION OF AN

AGREEMENT WITH YMCA OF SAN JOAQUIN FOR THE

MANAGEMENT AND OPERATION OF SOUSA, BROOKING,

HOLIDAY, AND OAK PARK POOLS

3 March 1, 2022City Council/Successor Agency to
the Redevelopment Agency/Public
Financing Authority/Parking
Authority Concurrent
Meeting Agenda - - Revised
Recommended Action:

RECOMMENDATION
It is recommended that City Council adopt a resolution to:
1) Authorize the City Manager to execute a three-year agreement with the YMCA of San Joaquin for a total amount of $405,000 ($135,000 per year) for the management and operation of Brooking, Holiday, Oak, and Sousa Park Pools, including two additional one-year mutual options, at which time staff will return to Council for approval of additional expenditures; and 2) Approve findings that support and justify an exception to the competitive bidding process.

It is further recommended that the resolution authorize the City Manager to take appropriate and necessary actions to carry out the purpose and intent of this motion.

Department: Community Services
Proposed Resolution - YMCA 2022
Exhibit 1 - Management Agreement with YMCA
Attachments:

12.4 22-0145 ADOPT A RESOLUTION APPOINTING MAXIMILIAN CAO TO THE

STOCKTON ARTS COMMISSION
Recommended Action: RECOMMENDATION
It is recommended that the City Council adopt a resolution to:

1. Appoint Maximilian Cao to the Stockton Arts Commission with term to commence immediately upon approval.

2. Authorize the City Manager to take whatever actions are appropriate and necessary to carry out the purpose and intent of this Resolution.

Department: Community Services
Attachment A - Redacted Application - Maximilian Cao
Proposed Resolution
Attachments:

12.5 21-0957 AWARD A CONTRACT TO SYNAGRO-WWT, INC. FOR THE

DIGESTER C CLEANING

4 March 1, 2022City Council/Successor Agency to
the Redevelopment Agency/Public
Financing Authority/Parking
Authority Concurrent
Meeting Agenda - - Revised
Recommended Action:

RECOMMENDATION
It is recommended that the City Council adopt a resolution to:

1. Approve the filing of Notice of Exemption No. NOE73-21 under the California Environmental Quality Act (CEQA) for the Digester C Cleaning, (Exhibit 1 to the Resolution).

2. Approve the project plans and specifications for the Digester C Cleaning.

3. Award a $949,940 contract to Synagro-WWT, Inc. of Baltimore, Maryland for the Digester C Cleaning, (Exhibit 2 to the Resolution).

It is further recommended that the City Manager be authorized to take appropriate and necessary actions to carry out the purpose and intent of this resolution.

Department: Municipal Utilities
Proposed Resolution
Exhibit 1 - Notice of Exemption
Exhibit 2 - Construction Contract
Attachments:

12.6 22-0086 AUTHORIZE CONTRACT AMENDMENT NO. 2 WITH USALCO, LLC

FOR PURCHASE OF WASTEWATER TREATMENT POLYMER AND
AMEND THE FISCAL YEAR 2021-22 ANNUAL BUDGET
Recommended Action:

RECOMMENDATION
It is recommended that the City Council adopt a resolution:

1. Authorizing contract Amendment No. 2 (Exhibit 1 to the Resolution) in the amount of $2,500,000 with USALCO, LLC of Modesto, CA for the purchase of polymer for wastewater treatment; and

2. Appropriating funds in the amount of $920,000 from the Wastewater Utility Fund balance to the Wastewater Treatment Plant Operations, Maintenance & Repairs Services account.

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: Municipal Utilities
Attachment A - CalChem Contract
Attachment B - USALCO - CCO1
Attachment C - Stockton Price Increase 2022
Proposed Resolution
Exhibit 1 - USALCO - CCO2
Attachments:

5 March 1, 2022City Council/Successor Agency to
the Redevelopment Agency/Public
Financing Authority/Parking
Authority Concurrent
Meeting Agenda - - Revised

12.7 21-0852

APPROVE MOTION TO AWARD A PROFESSIONAL SERVICES

CONTRACT FOR THE LANDSCAPE AND LIGHTING MAINTENANCE

ASSESSMENT DISTRICT MANAGEMENT
Recommended Action:

RECOMMENDATION
It is recommended that the City Council approve a motion to:

1. Award a multi-year Professional Services Contract through December 31, 2026, with Siegfried Engineering, Inc. of Stockton, CA, in the amount not-to-exceed $877,062.00, to provide services for the Landscape and Lighting Maintenance Assessment District Management, Project No.

OM-21-088.

2. Approve findings pursuant to Stockton Municipal Code section 3.68.070 in support of an exception to the competitive bidding process.

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 motion.

Department: Public Works
Attachment A - Professional Services ContractAttachments:

12.8 22-0042 APPROVE MOTION TO AUTHORIZE BALANCING CONTRACT CHANGE ORDER NO. 3 FOR THE LEFT-TURN LANES AT VARIOUS

LOCATIONS PROJECT
Recommended Action:

RECOMMENDATION
It is recommended that the City Council approve a motion to authorize Balancing Contract Change Order No. 3, in the amount of $83,215, with B&M Builders, Inc., for the Left-Turn Lanes at Various Locations, Project No. WT17020/Federal Project No. CML-5008(169).

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 motion.

Department: Public Works
Attachment A - Vicinity Map
Attachment B - Balancing CCO No. 3
Attachments:

13. ADMINISTRATIVE MATTERS

14. UNFINISHED BUSINESS

15. NEW BUSINESS

15.1 22-0191

SJAFCA PRESENTATION ON THE LOWER SAN JOAQUIN RIVER

6 March 1, 2022City Council/Successor Agency to
the Redevelopment Agency/Public
Financing Authority/Parking
Authority Concurrent
Meeting Agenda - - Revised

PROJECT, TEN MILE SLOUGH LEVEE IMPROVEMENTS
Recommended Action:

RECOMMENDATION
Informational presentation only. No action to be taken.

Department: Municipal Utilities

15.1 - PPT - SJAFCA Informational PresentationAttachments:

15.2 22-0114 ADOPT A RESOLUTION TO APPROVE THE MIRACLE MILE IMPROVEMENT DISTRICT PROPOSED 2022 ANNUAL OPERATING
BUDGET AND 2021 ANNUAL REPORT
Recommended Action:

RECOMMENDATION
It is recommended that the City Council adopt a resolution:

1. Approving the proposed 2022 Operating Budget for the Property Based Improvement District commonly known as the Miracle Mile Improvement District;

2. Approving the 2021 Annual Report for the Miracle Mile Improvement District; and

3. Authorizing the City Manager, or designee, to take necessary and appropriate actions to carry out the purpose of this resolution.

Department: Economic Development
Attachment A - MMID Boundary Map
Proposed Resolution 2022 MMID
Exhibit 1 - MMID 2022 Budget
Exhibit 2 - MMID 2021 Annual Report

15.2 - PPT - MMID City Council Presentation 2022
Attachments:

15.3 22-0183 ACCEPT FISCAL YEAR 2021-22 FIRST QUARTER BUDGET

STATUS UPDATE AND AUTHORIZE BUDGET AMENDMENTS
Recommended Action: RECOMMENDATION
It is recommended that the City Council adopt a resolution to:

1. Accept this budget status report on the unaudited results of the first quarter of Fiscal Year (FY) 2021-22.

2. Approve five budget amendments in the Office Equipment Internal Service Fund, Municipal Utilities Department Water, Stormwater, and Wastewater Utilities funds, and the Fire Department General Fund budget.

It is recommended that the City Manager be authorized to take appropriate and necessary actions to carry out the purpose and intent of the resolution.

7 March 1, 2022City Council/Successor Agency to
the Redevelopment Agency/Public
Financing Authority/Parking
Authority Concurrent
Meeting Agenda - - Revised
Department: Administrative Services
Attachment A - FY 2020-21 First Quarter-General Fund
Proposed Resolution - First Quarter Budget Update

15.3 - PPT - First Quarter Budget Update
Attachments:

15.4 22-0234 DISCUSSION ON SUSD’S PROPOSED FAMILY RESOURCE

CENTER PARTNERSHIP
Department: Office of the Mayor

15.5 22-0188 ADOPT A RESOLUTION TO ACCEPT AND APPROPRIATE FUNDING

FROM THE CALIFORNIA STATE WATER RESOURCES CONTROL

BOARD WATER AND WASTEWATER ARREARAGE PAYMENT
PROGRAM; APPROVE THE ALLOCATION OF FUNDS AND

APPROVE A WAIVER OF ELIGIBLE CUSTOMER LATE FEES
Recommended Action:

RECOMMENDATION
It is recommended that the City Council adopt a resolution to:

1. Accept and appropriate funds from the California State Water Resources Control Board for the Water and Wastewater Arrearage Payment Program in the amount of $1,623,889.31.

2. Approve the allocation of funds in accordance with all Water and Wastewater Arrearage Payment Program requirements.

3. Approve a waiver of customer late payment fees eligible under the Water and Wastewater Arrearage Payment Program.

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: Municipal Utilities
Proposed Resolution

15.5 - PPT - California Water and Wastewater Arrearage Payment Program Attachments:

Note: This item was added 2022-02-24 by the Municipal Utilities Department

16. HEARINGS**

16.1 22-0050 ADOPTION OF AN ORDINANCE AMENDING STOCKTON MUNICIPAL CODE TITLES 5 AND 16 RELATED TO THE CANNABIS

REGULATORY PROGRAM

8 March 1, 2022City Council/Successor Agency to
the Redevelopment Agency/Public
Financing Authority/Parking
Authority Concurrent
Meeting Agenda - - Revised
Recommended Action:

RECOMMENDATION
It is recommended that the City Council:

1. Adopt an Ordinance Option Amending Title 5, Chapter 5.98, Section

5.98.020, Chapter 5.99, Section 5.99.030, Chapter 5.100, Sections

5.100.080, 5.100.310; and Title 16, Chapter 16.20, Section 16.20.020 and Chapter 16.80, Section 16.80.195 of the Stockton Municipal Code Relating to the Cannabis Regulatory Program.

2. Authorize the City Manager to take appropriate and necessary actions to carry out the purpose and intent of the ordinance adopted by Council.

Department: Community Development
Attachment A - Planning Commission 12-9-21 Minutes
Attachment B1 - Proposed Ordinance - Option 1
Attachment B2 - Proposed Ordinance - Option 2
Attachment B3 - Proposed Ordinance - Option 3
Attachment B4 - Proposed Ordinance - Option 4
Attachment C - Recommendation Summary Matrix
Attachment D - Location Requirement Options
Attachment E - Best Practices Report
Attachment F - Equity Analysis Report

16.1 - PPT - Cannabis Ordinance Amendment
Attachments:

17. CITY MANAGER'S UPDATE

18. COUNCIL COMMENTS

19. ADJOURNMENT

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 24, 2022, in compliance with the Brown Act.

Eliza R. Garza, CMC
City Clerk
By: ________________________________
Deputy

9 March 1, 2022City Council/Successor Agency to
the Redevelopment Agency/Public
Financing Authority/Parking
Authority Concurrent
Meeting Agenda - - Revised
*
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.

10 City of Stockton
Legislation Text
File #: 22-0185, Version: 1
COMMENDATION: 30TH ANNIVERSARY OF THE FILIPINO AMERICAN NATIONAL HISTORICAL

SOCIETY
City of Stockton Printed on 2/23/2022Page 1 of 1
powered by Legistar™
11 City of Stockton
Legislation Text
File #: 22-0233, Version: 1

APPROVE BY MOTION AMENDMENTS TO THE CONTRACT OF EMPLOYMENT FOR CITY

MANAGER HARRY BLACK
City of Stockton Printed on 2/22/2022Page 1 of 1
powered by Legistar™
12 - 1 -

FIRST-AMENDED EMPLOYMENT CONTRACT

FOR CITY MANAGER

This Employment Contract is made and entered into on by and between the CITY OF STOCKTON, STATE OF CALIFORNIA, a municipal corporation, by and through its City Council (EMPLOYER), and HARRY EUGENE BLACK (EMPLOYEE).

RECITALS:

1. EMPLOYER is a Chartered City of the State of California;

2. EMPLOYER, in accordance with the provisio ns of Article XII, Section 1200, of the Charter, desires to employ the services of EMPLOYEE as the City Manager;

3. EMPLOYEE desires to accept employment as the Stockton City Manager;

4. It is the desire of both EMPLOYER and EMPLOYEE to set forth in this Employment Contract the terms and conditions of said employment;

NOW THEREFORE, in consideration of the mutual covenants herein contained, the parties agree as follows:

ARTICLE I

TERM OF EMPLOYMENT

Section 1.01 Term: EMPLOYER hereby em ploys EMPLOYEE as the City Manager and EMPLOYEE hereby accepts said employment for an initial term of five (5) years commencing on , and, continuing until (the initial "Termination Date"). This Contract shall automatically renew as provided herein unless the City gives Employee timely notic e of non-renewal at least twelve (12) months prior to the initial Termination Date or any succeeding Termination Date. Unless such notice of non- renewal is timely given, this Contract shall automatically renew for an additional five (5) year term, and a new Termination Date shall accordingly be established.

Section 1.02 At Will Employee: EMPLOYEE serves at the pleasure of EMPLOYER and may be terminated at the wil l of EMPLOYER, subject only to section 1200 of the City Charter and the notice and severance provisi ons set forth in Section 5.02 of this Employment Contract. In like manner, nothing in this Contract shall prevent, limit, or otherwise interfere with the ri ght of EMPLOYEE to resign at any time as City Manager, subject only to the notice provisions set forth in Section 5.02 of this Employment Contract.

EMPLOYEE further acknowledges that EMPLOYER has made no implie d, expressed, or written assurances of conti nued employment with the City of Stockton other than as specifically set forth in this Contract.
13 - 2 -

ARTICLE II

DUTIES AND OBLIGATION OF EMPLOYEE

Section 2.01 Duties: EMPLOYER shall employ EMPLOYEE as City Manager of the City of Stockton to perform th e functions and duties as spec ified in the City Charter, Ordinances of the City, California Constitution, and California Statutes, and to perform such other legally permissible and proper duties and functions as EMPLOYER shall from time to time assign to EMPLOYEE which are reasonably related to the dutie s and functions of a City Manager.

Section 2.02 Devotion to Duties: EMPLOYEE shall devote his entire productive time, ability, and attention to the business of EMPLOYER during the term of this Employment Contract. EMPLOYEE shall not engage in any other public or private employment during the term of this Contract. Notwiths tanding the prior sentence, EMPLOYEE may, as authorized by EMPLOYER, teach or provide limited services to charitable or professional organizations where such teachi ng or services do not conflict or interfere with EMPLOYEE's duties as City Manager . This Contract shall not be interpreted nor intended to prohibit EMPLOYEE from making passive personal investments.

Section 2.03 Community Outreach : EMPLOYEE acknowledges the benefits of being engaged in the community as a means to provide information to, and gain the confidence of, the community. This outreach is separate and distinct from political outreach and provides EMPLOYEE insights and perspective s to effectively advise the City Council on policy matters. EMPLOYEE shall create and implement an outreach strategy to specifically capture these benefits.

Section 2.04 Performance Evaluation Procedures: The City Council shall review and evaluate the performance of EMPLOYEE approximately six months following the date of initial employment. The evaluation s hall include consider ation of EMPLOYEE's performance and shall include the presentation of a proposed work plan by the EMPLOYEE.

The work plan will be based on an appraisal of the current status or conditions in the City, specific major work program objectives nece ssary to achieve the City Council's goals, and the resource capability of the City organization. The work plan shall be approved as submitted or as modified by the EMPLOYER, at the sole discretion of the EMPLOYER, and may be altered at any time by the EMPLO YER with input from EMPLOYEE. EMPLOYER shall conduct subsequent eval uations no less frequently than annually and shall include a review and evaluation of the performance of EMPLOYEE in accordance with the approved work plan together with the other duties and functions assigned to EMPLOYEE. As part of the evaluation process, EMPLOYER and EMPLOYEE shall discuss changes and additions to the work plan. If either EMPLOYER or EM PLOYEE requests it, a professional facilitator may be hired to assist in the performance evaluation process. 14 - 3 -

ARTICLE Ill

COMPENSATION

Section 3.01 Annual Base Salary: EMPLOYER shall pay EMPLOYEE for services rendered by him pursuant to this Employ ment Contract an annual base salary of $294,9538470,000.00, payable in installments at the time as other employees of EMPLOYER are paid. EMPLOYER, in its sole and absolute discretion, may adjust the annual base salary of EMPLOYEE at such ti mes and to such extent as EMPLOYER may determine. In exercising its discretionary authority, EMPLOYER shall act fairly and in good faith with EMPLOYEE. In no case shall EM PLOYEE's annual base salary be decreased unless such decrease is a percentage consistent with a decrease applicable to employees of EMPLOYER generally.

ARTICLE IV

EMPLOYEE BENEFITS

Section 4.01 Automobile Expense Reimbursement; Insurance: During the term of this Employment Contract, EMPLOYEE, to the extent nece ssary to perform his duties, shall use his own personal vehicle. EMPLOYEE shall be responsible for the payment of all operating expenses of the vehicle , including, but not limited to, gasoline , oil, service, and repair, and , if necessary, the replacement of his automobile; provided, however, EMPLOYER shall pay to EMPLOYEE a mont hly auto allowance of $750.00. EMPLOYEE shall procure and maintain, at his expense, a comprehensive automobile liability insurance policy on the vehicle being used by him in connection with this Employment Contract, in an amount consistent with City policy. EMPLOYER shall be named as a co-insured by an endorsement to that policy . Any expense related to this endor sement shall be the sole responsibility of EMPLOYER. During the course of this Employment Contract, EMPLOYEE shall provide EMPLOYER with wr itten documentation that said insurance policy is in full force and effect, upon request. Said policy shall also include a provision notifying EMPLOYER prior to the cancellation thereof.

Section 4.02 Deferred Compensation, Health Coverage, Life Insurance, Disability, and Holidays: Except as otherwise provi ded herein, EMPLOYEE shall be entitled to receive those benefits provided by EMPLOYER to other department heads of the City of Stockton, including those appointed by EMPLOYER, which benefits consist of health, dental, and vision coverage, retirem ent benefits, life insurance, disability, a voluntary deferred compensation plan a nd holidays. The benefits so provided are subject to modification during the course of th is Employment Contract at the sole and absolute discretion of EMPLOYER at such times and to such ext ent as EMPLOYER may deem appropriate, provided, however, there shall be no reduction in benefits unless EMPLOYER implements the same reduction of benefits to all other departm ent heads of the City of Stockton.

Section 4.03 Vacation and Sick Leave: EMPLOYEE shall be credited with thirty (30) days of vacation as of the commencem ent of employment as City Manager and shall receive thirty (30) days of annual vacation leave annually. Annual vacation 15 - 4 -

leave shall be administered in the same manner as vacation is administered for department head employees of EMPLOYER with regard to timing of credits and EMPLOYEE may sell back up to three (3) weeks of vacation per fiscal yearbuyback policy. Maximum vacation accrual is ninety one hundred twenty (12090) days including the initial vacation credits and existing vacation accrual balances. EMPLOYEE shall be credited with fifteen (15) days of sick leave as of the commencement of employment as City Manager and shall accrue fifteen (15) days of sick leave annually with unlimited accumulation. Sick leave may be used in accordance with policies applicable to department head employees of EMPLOYER.

Section 4.04 Professional Dues and Subscriptions: EMPLOYER shall pay for professional dues and subscriptions of EMPLOYEE necessary for his continuation and full participation in national, state, and city manager associations (e.g. , International City Managers' Association, National League of Cities, League of California Cities, California Public Employer Relations Association, California Associatio n for Local Economic De velopment, California City Managers' Foundation, Society fo r Human Resource Management, etc .), subject to budget limitations and prior review and approval by EMPLOYER.

Section 4.05 Expenses: EMPLOYEE shall be entitled to reimbursement for all reasonable expenses necessarily incurred by him in the performanc e of his duties upon presentation of vouchers indi cating the amount and purpose t hereof, and further provided that such expenses are in accordance with po licies established from time to time by EMPLOYER and consistent with budget allocations adopted by EMPLOYER for that purpose during the term of this Contract.

Section 4.06 Professional Development: EMPLOYER shall pay travel and subsistence expenses of EMPLOYEE for pr ofessional and office travel, meetings , and occasions adequate to continue the profe ssional development of EMPLOYEE and to adequately pursue necessary official functions for EMPLOYER , including, but not limited to, the annual conference, departmenta l meetings, and policy committ ees of the International City Management Association, League of California Cities , California City Management Foundation, California Public Employers Labor Relations Association, California Association for Local Economic Development, and such other national , regional, state, and local government groups and committees thereof which EMPLOYEE serves as a member, provided provisions for such costs are c ontained in the annual b udget. EMPLOYER also shall pay tuition, travel, and subsistence expenses of EMPLOYEE for short courses, institutes, and seminars that are necessary for his professional development and for the good of the City (i.e., Harvard Kennedy School for Senior Executives in State and Local Government, University of Virginia Senior Exec utives Institute, etc.), subject to budget limitations. EMPLOYEE may utilize the services of an executive coach, paid for by EMPLOYER, up to a maximum amount of $7,000 per fiscal year.

Section 4.07 Technology Allowance: EMPLOYER shall pay to EMPLOYEE a technology allowance of $400.00 per month. EMPLOYEE shall purchase and maintain his own cellular/smart phone and ho me/travel computer and rela ted telecommunications and broadband services at EMPLOYEE's expense.

Section 4 .08 Deferred Compensation (401(a)): EMPLOYER hereby agrees to 16 - 5 -

contribute to EMPLOYEE's 401(a), or equivalent, deferred compensation plan an amount equal to twelve and one half ten (12.50) percent of EMPLOYEE's annual salary.

Section 4.09 Moving Expenses: EMPLOYER shall reimburse EMPLOYEE for reasonable and necessary moving expenses incurred in moving his residence to within the City of Stockton up to a ma ximum of $18,000.00. EMPLOYEE will establish Stockton Residency within two (2) months of his st art date and his family will relocate within EMPLOYEE’s first year of service. Thes e expenses shall be limited to the costs of packaging, moving, and the temporary storage of household goods and furnishings; packing and transportation of personal auto(s), (where possible, EM PLOYER will direct pay expenditures); expenses for up to three (3) family (wife/daught er) pre-relocation visits to Stockton, and up to three months of temporary housing for EMPLOYEE to be directly paid by the City. EMPLOYEE shall obtain three (3) quotations fo r such moving services, and EMPLOYER shall have the right to approve the service vendor or vendors to be used.

ARTICLE V

SUSPENSION, RESIGNATION AND TERMINATION

Section 5.01 Suspension: EMPLOYER may suspend EMPLOYEE with full pay and benefits at any time during the term of this Contract, but only if the required number of affirmative votes of a majority of members of the City Council , as specified in the Charter, agree that it is necessary for the good of the City to suspend EMPLOYEE's providing services in order to allow EMPLOYER time to consider whether or not it wishes to permanently terminate EMPLOYEE's servic es. If EMPLOYER acts to suspend EMPLOYEE's services hereunder for any period or combination of periods in excess of a total of thirty (30) work days during the In itial Term or any subs equent term of this Employment Contract, EMPLOYEE may declare, at his option , that he has been terminated within the meaning and context of the herein severance pay provision.

Section 5 .02 Resignation, Termination, and Severance Pay: In the event EMPLOYEE is terminated by EMPLOYER and during such time as EMPLOYEE is able and willing to perform his duties under this Employment Contract, EMPLOYER shall (1) provide EMPLOYEE with notice at least one (1) month in advance of the final date of employment and further, (2) pay EMPLOYEE as severance pay (a) a lump sum cash payment in an amount equal to nine (9) months of EMPL OYEE's then current salary and deferred compensation contributions, (b) any vacation l eave accrued as of the date of termination and, (c) to continue in full force and effect, at the same EMPLOYER contribution level as if employment continued, for nine (9) months the life insurance and medical, dental and vision insurance coverages then being provided by EMPLO YER to EMPLOYEE, and his dependents; provided, however, that if EMPLOYER termi nates EMPLOYEE for cause, EMPLOYER shall have no obligation to provide any severance pay. As used in this section, "cause" shall mean willful failure to implement Council policy, abandonment of his duties, conviction of a felony or misd emeanor in the course of his official duties or continued abuse of non-prescription drugs or alcohol that materially affects the performance of his duties. In the event EMPLOYER terminat es EMPLOYEE for cause, EMPLOYER may terminate this Contract immediately, and EMPLOYEE shall be entitled only to the compensation and accumulated vacation accrued up to the date of termination and such other payments and benefits provided by this Contract or by law. 17 - 6 -

Notwithstanding any other provision of th is Employment Contract, beginning on the first six-month anniversary of the effectiv e date of this Employment Contract the length of severance compensation provided for herein shall be extended one m onth from nine (9) months to ten (10) mont hs, and said increase shall continue in like amount semi-annually until severance compensation has reached a maximum amount of twelve (12) months.

Under no circumstances will the EMPLOYEE be able to cont est the nature of the EMPLOYEE's at-will status, nor will the EMPLOYEE be able to raise any remedy of reinstatement in any legal forum.

In the event EMPLOYEE voluntarily and wit hout the official request of EMPLOYER resigns as City Manager, EMPLOYEE shall give written notice to the EMPLOYER at least forty-five (45) days in advance of the final date of employment, unless the parties otherwise agree. Such resignation shall not be deemed to be a "terminatio n" within the meaning and context of the herein severance pay provision.

Section 5.03 Disability: If, for a period of four (4) successive weeks beyond the expiration of any accrued sick leave and vacati on, EMPLOYEE is disabled or is otherwise unable to perform his duties because of sickness, accident, injury, mental incapacity, or ill health, EMPLOYER shall have the option to terminate this Employment Contract. If EMPLOYER exercises this option, EMPLOYEE shall nonetheless be compensated for any accrued leave time and other a ccrued benefits, including, but not limited to, long-term disability insurance benefits fo r which EMPLOYEE is eligib le; however, EMPLOYEE shall not receive the severance pay described in Section 5.02 above.

ARTICLE VI

MISCELLANEOUS

Section 6.01 Interference With Duties: Because the failure to comply with this provision would potentially have a material negativ e effect on the ability of EMPLOYEE to perform his duties, both parties acknowledge the role of EMPLOYEE as Chief Administrative Officer and further agree that the City Council, as a whole or individual City Council members, pursuant to section 408 of the City Charter will re frain from interfering with EMPLOYEE's ability to perform his duties as se t forth in section 1201 of the City Charter including, but not limited to, directing any member of the City staff whose reporting structure includes EMPLOYEE.

Section 6 .02 Ongoing and Active Participation in Facilitated Team

Development Activities: A cordial, professional , and respectful relationship is a key component of a healthy organization and is in the best interest of the City's residents, employees, and stakeholders. Both parties shall make all reasonable efforts to create and maintain a positive working relationship bet ween the Mayor, each member of the City Council, and EMPLOYEE . To facilitate the process, EMPLOYER specifically will meaningfully participate in organizational t eam development activities as proposed by EMPLOYEE.
18 - 7 -

Section 6.03 Other Terms and Conditions of Employment: EMPLOYER, after consultation with EMPLOYEE, shall fix any such other terms and conditions of employment as EMPLOYER may determine from time to time, relating to the performance of EMPLOYEE, provided such terms and conditions are not inconsistent with or in conflict with the provisions of this Employ ment Contract, the City Charter, Municipal code, or any other law.

Section 6.04 Notices: Notices pursuant to this Employment Contract shall be served in person, or otherwise in the same manner as is applicable to civil judicial practice.

Section 6.05 Bonding: EMPLOYER shall bear the full co st of any fidelity or other bonds required of EMPLOYEE under any law or ordinance.

Section 6.06 Indemnification: EMPLOYER shall defend, save harmless and indemnify EMPLOYEE against any tort, professional liability claim, or demand, or other legal action, whether groundless or otherwise, arising out of an alleged act or omission occurring in the performance of EMPLOYEE's duties as City Manager. If EMPLOYER compromises or settles any such claim or suit, EMPLOYER shall pay the amount of any settlement, or if the claim or suit results in a judgment against EMPLOYEE, EMPLOYER shall pay any such judgment. This indemnification does not apply to any act, action, or omission arising out of the gross negligence, willful misconduct on the part of EM PLOYEE, or acts of EMPLOYEE outside the course and scope of his employment duties.

Section 6.07 General Provisions:

A. The text herein shall constitute the entire agreement between the parties.

B. This Employment Contract shall be binding upon and insure to the benefit of the heirs at law and executors of EMPLOYEE.

C. This Employment Contract may only be modified upon the written consent of the EMPLOYER and EMPLOYEE.

D. In any action to enforce the terms of this Employment Contract, the prevailing party shall be entitled to recover its attorney's fees and court costs and other non- reimbursable litigation expenses, such as expert witness fees and investigation 19 - 8 -

expenses.

Section 6.08 Severability: If any provision, or any portion thereof, contained in this Employment Contract is held unconstitutional , invalid or unenforceable, the remainder of this Employment Contract shall be deemed se verable, shall not be affected, and shall remain in full force and effect.

IN WITNESS WHEREOF, EMPL OYER has caused this Contract to be signed and executed in its behalf by its Mayor, and duly attested by its City Clerk, and EMPLOYEE has signed and executed this Contract, both in duplicate, the day and year first above written.

ATTEST: CITY OF STOCKTON

ELIZA R. GARZA, CMC MICHAEL D. TUBBSKEVIN J. LINCOLN

II, MAYOR
CITY CLERK “EMPLOYER”

APPROVED AS TO FORM: AGREED:

JOHN M. LUEBBERKE HARRY EUGENE BLACK
CITY ATTORNEY “EMPLOYEE”
20 City of Stockton
Legislation Text
File #: 22-0231, Version: 1

APPROVAL OF CITY COUNCIL MINUTES

RECOMMENDATION
Approve the minutes from the City Council meeting of December 14, 2021.

Attachment A - 2021-12-14 Minutes
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37 City of Stockton
Legislation Text
File #: 22-0095, Version: 1

ADOPT A RESOLUTION AUTHORIZING THE EXECUTION OF AN AGREEMENT WITH YMCA OF

SAN JOAQUIN FOR THE MANAGEMENT AND OPERATION OF SOUSA, BROOKING, HOLIDAY,

AND OAK PARK POOLS

RECOMMENDATION
It is recommended that City Council adopt a resolution to:
1) Authorize the City Manager to execute a three-year agreement with the YMCA of San Joaquin for a total amount of $405,000 ($135,000 per year) for the management and operation of Brooking, Holiday, Oak, and Sousa Park Pools, including two additional one-year mutual options, at which time staff will return to Council for approval of additional expenditures; and 2) Approve findings that support and justify an exception to the competitive bidding process.

It is further recommended that the resolution authorize the City Manager to take appropriate and necessary actions to carry out the purpose and intent of this motion.

Summary
The Community Services Department - Recreation Division provides community aquatic services at four City pool facilities through an agreement with a private non-profit operator. From the summer of 2017 through the summer of 2021, the YMCA of San Joaquin (“YMCA”) has managed the aquatics programs and facilities at Brooking, Oak, and Sousa Parks, and at Holiday Park since summer of 2019. During this previous agreement, the YMCA has provided open swim, family hour swim, swim lessons, and occasional pool rentals. The YMCA has been responsive to the City’s request to extend hours and add programs when asked. The agreement with the YMCA ended on December 31, 2021.

The City issued a Request for Proposals (“RFP”) on August 5, 2021, for aquatic facilities management of Brooking, Holiday, Oak, and Sousa Park pools. The City received proposals from USA Management (San Francisco, CA) and YMCA of San Joaquin (Stockton, CA). Proposals were evaluated based on professional qualifications, agency experience, and financial capabilities. Based on the results of this process, a three-year agreement with the YMCA for a total of $405,000 to operate Brooking, Oak, Sousa, and Holiday Park pools is recommended.

Additionally, since the closure of the McKinley Park pool in 2016, there are few swimming options for residents in the southern areas of the City. To address this, a collaborative agreement with the Manteca Unified School District (“MUSD”) was developed for use of the Weston Ranch High School pool.

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DISCUSSION
Background
The City owns seven pools located at Brooking, Holiday, McKinley, Oak, Sherwood, Sousa, and Victory parks. Until April 2019, Holiday Park pool was operated and maintained by the Holiday Park Recreation Association and supported by a maintenance district annual assessment and limited City general funds. Sherwood Park pool is operated and maintained by Sherwood Homeowners Association. Victory Park and McKinley Park pools are currently closed and non-operational due to age and vandalism damage. However, both pools are in the planning process to either be restored (McKinley) or rebuilt (Victory). The City is currently responsible for operating the four remaining pools at Brooking, Holiday, Oak, and Sousa Parks. When work at McKinley and Victory Park pools is complete, the City will be responsible for operating those pools as well.

For many years, the City operated some pools directly and partnered with local non-profits to operate the remaining City swimming pools. During bankruptcy, City aquatics staff was eliminated, and non- profit groups assumed operations of all City pools through single-year agreements. Single-year agreements proved difficult for the operators because the short timeframe limits an agency’s ability to build swim programs and develop relationships within the community. Additionally, working with multiple agencies with different operating practices and policies creates oversight and compliance challenges for the City.

On January 5, 2017, the City issued an RFP for a single aquatic facilities management organization.

Three proposals were received, and the YMCA of San Joaquin was selected to operate the aquatic facilities. The YMCA operated Brooking, Oak, and Sousa Park pools since 2017, and added Holiday Park pool in 2019. This agreement with the YMCA ended on December 31, 2021.

The City issued a new RFP for aquatic facilities management on August 5, 2021, for Brooking, Holiday, Oak, and Sousa Park pools. On September 2, 2021, proposals were received from the following aquatic facility operators:
· USA Management (San Francisco, CA)
· YMCA of San Joaquin (Stockton, CA)
Both organizations demonstrated experience operating aquatics facilities. A selection committee reviewed the proposals and ranked them based on factors that included: technical approach to aquatics operations, qualifications of staff, experience of company, knowledge of best practices for aquatic facilities and financial capability. Upon completion of the ranking process, YMCA of San Joaquin was the top ranked firm and was selected to provide aquatic facility operations for a three- year agreement, with an option for two (2) one-year extensions.

With the closure of McKinley Park pool, Sousa Park pool is now the only City pool in south Stockton.

Since 2018, Community Services Department has provided MUSD an annual subsidy of $20,000 to pay for an operator to provide open and family swim at Weston Ranch High School. An annual subsidy of $20,000 to MUSD to provide aquatic services is recommended until McKinley Park pool is reopened. Staff prepares an annual memorandum of understanding (“MOU”) between the City and MUSD to identify the roles and responsibilities of each party, to provide public swimming at the same service level as YMCA programs.

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Present Situation
Following an RFP process, a three-year agreement with YMCA of San Joaquin to operate Brooking, Holiday, Oak, and Sousa Park pools is recommended. The contract also includes two additional one- year mutual options, which if agreed upon, will be brought before Council for approval of these additional expenditures. Additional funds to partner with MUSD to operate an aquatics program at the Weston Ranch High School is also recommended.

The consistency and quality of aquatics has improved annually since the YMCA has operated the City pools. With the exception of 2020, the COVID-19 affected year, attendance at our pools has increased from 12,260 paid admissions in 2017 to 16,000 in 2021.

All City swimming pools need significant repair or replacement. With Strong Communities funds, design and renovation plans are in process for McKinley Park pool as part of the larger renovation project funded by a Proposition 68 grant. On November 16, 2021, Council allocated funds to repair cracking and chipping plaster in Sousa Park Pool. On November 23, 2021, the RFP for the renovation or replacement of Victory Park pool was published. McKinley Park pool is expected to open in summer 2023, and Victory Park pool could open as early as summer 2024. In 2024, the City, through our agreement with the YMCA, may have six pools open to the public.

FINDINGS
Stockton Municipal Code Section 3.68.070 (A) (3) authorizes the award of contracts without competitive bidding in cases where the City Council has approved findings which support and justify exceptions to the competitive bidding process. Staff requests an exception for the contract with YMCAbased on the following findings:
1) The City solicited competitive proposals through an RFP process. 2) The RFP process allowed the City to evaluate qualified proponents on experience and past performance, which is more important than price. A strict cost-competitive basis for the selection of an aquatics operator may lower the quality of services to be provided and impact health and safety if cost is the primary criteria of selection. 3) Contracting with a private operator is more cost effective and efficient to provide public swimming in the City’s four aquatic facilities. Current Recreation staffing is insufficient to operate the four pool aquatic facilities.
4) Use of the RFP criteria insures the best operational care, health, and safety standards and demonstrated aquatic skills.
5) YMCA was the top ranked operator based on experience, professional qualification, and financial capability. YMCA has the necessary specialized aquatics skills and experience to successfully operate aquatics facilities in the City of Stockton.

FINANCIAL SUMMARY
Staff is recommending the following action: the approval of a three-year agreement with YMCA for the operation of the swimming pools for a total of $405,000.

A single swim season is May to September, spanning two fiscal years.

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Aquatic Season Summary
Aquatic Facility Season 2022 Season 2023 Season 2024 Total Brooking $15,500 $15,500 $15,500 $46,500
Holiday $40,000 $40,000 $40,000 $120,000
Oak $40,000 $40,000 $40,000 $120,000
Sousa $39,500 $39,500 $39,500 $118,500
Totals $135,000 $135,000 $135,000 $405,000
An appropriation of $135,000 for each swim season 2022, 2023, and 2024 will be budgeted in the annual budget process in subsequent years.

Funding of the YMCA agreement and MUSD subsidy has been budgeted in a special services account within the Strong Communities Fund (210-000). The FY 2021-22 appropriation is sufficient to cover expenditures related to the 2022 swim season.

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41 Resolution No.

STOCKTON CITY COUNCIL

RESOLUTION AUTHORIZING THE EXECUTION OF AGREEMENT WITH YMCA OF

SAN JOAQUIN FOR THE MANAGEMENT AND OPERATION OF SOUSA,

BROOKING, HOLIDAY, AND OAK PARK POOLS

Because the City’s aquatics staff was eliminated during bankruptcy, the City began contracting with multiple non-profit groups to assume operations of each City pool through single year agreements; and

One-year agreements with multiple operators are difficult for both operators and the City because they prevent operators from building consistent swim programs and developing a loyal customer base and they create oversight and compliance challenges for the City; and

In 2017, City moved to a multi-year agreement with a single operator to operate all City pools have proven successful. Operators are building consistent swim programs and are developing a loyal customer base, and

On August 5, 2021, the City issued a Request for Proposal (RFP) for a multi-year agreement with a single operator for all City operated swimming pools; and

The City received two proposals and, based on criteria including professional qualifications, agency experience, and financial capabilities, the City deemed YMCA of San Joaquin (YMCA) the most qualified; and

With the closure of the McKinley pool, City residents have limited access to the public aquatic programs. Staff developed a collaborative agreement with the Manteca Unified School District (MUSD) for the use of the Weston Ranch High School pool in exchange for City support to fund an operator; now, therefore,

BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF STOCKTON, AS FOLLOWS:

1. City Manager is authorized to execute a three -year agreement and two one-year mutual options with YMCA of San Joaquin for a t otal amount of $405,000 for the management and operation of Brooking, Holiday, Oak, and Sousa Park Pools , attached as Exhibit 1 and incorporated herein by this reference.

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42 2. Pursuant to the requirements of Stockton Municipal Code section 3.68.070, City Council makes the following findings which support an exception to the competitive bidding requirements for the agreement with YMCA:

A. The City solicited competitive proposals through an RFP process.

B. The RFP process allowed the City to evaluate qualified proponents on experience and past performance, which is more important than price. A strict cost-competitive basis for the selection of an aquatics operator may lower the quality of services to be provided and impact health and safety if cost is the primary criteria of selection.

C. Contracting with a private operator is more cost effective and efficient to provide public swimming in the City’s four aquatic facilities.

Current Recreation staffing is insufficient to operate the four pool aquatic facilities.

D. Use of the RFP criteria insures the best operational care, health, and safety standards, and demonstrated aquatic skills.

E. YMCA was the top ranked operator based on experience, professional q ualification, and financial capability. YMCA has the necessary specialized aquatic skills and experience to successfully operate aquatics facilities in the City of Stockton.

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 March 1, 2022 .

__________________________
KEVIN J. LINCOLN II
Mayor of the City of Stockton
ATTEST:

____________________________
ELIZA R. GARZA CMC
City Clerk of the City of Stockton

43 2022 AQUATICS AND FACILITIES MANAGEMENT AGREEMENT This Agreement is made and entered into on , by and between the City of Stockton, a municipal corporation of the State of California, (hereinafter "City"), and YMCA of San Joaquin County, (hereinafier "Operator") for the exclusive use of the facilities identified in Exhibit I : Aquatic Facility Locations for Aquatic Facilities (hereinafter "Facilities"). The City and Operator may be referred to collectively as "Parties" or in the singular as "Party" as the context requires.

City, for and in consideration of the rents, covenants, and agreements contained herein to be performed by Operator, does herby enter into this agreement with Operator For certain areas together with the facilities and improvements located thereon which are located within the City of Stockton and outlined on the attached (ist of facilities and maps marked Exhibit I for the purpose of operating swimming pools and additional activities associated with conducting a summer swimming program.

NOW, THEREFORE, in consideration of the foregoing and of the mutual promises, covenants and agreements herein contained the parties hereby agree as follows:

ARTICLE 1: TERM AND TERMINATION.

1.1 . The term of this Agreement is for three swim seasons commencing on date attested above and terminating on December 31, 2024. Operator will have two additiona) one-year mutual options for the 2025 and 2026 swim seasons. Mutual Options for 2025 and 2026 must be agreed upon in writing by December 15, 2024, and December 15, 2026, respectively.

1.2 Termination by Operator. In the event the Agreement is terminated by Operator, the Operator will send a preliminary thirty (30) day written notice of the termination to the Community Services Director of the election to terminate the agreement. If Operator terminates the Agreement before terms and conditions of swim season are fulfilled, such termination will be considered a Breach, with adequate cure provided by Operator.

1.3 Breach of Obliqations by Operator; Riqht to Cure. In the event the City determines the Operator has substantially failed to fulfill the obligations as provided under this Agreement, City shall provide Operator with written notice detailing specific obligations which City claims Operator has failed to fulfill and notifying Operator that it is deemed to be in breach of the Agreement. If the breach is not cured within the time specified in the Notice, or if the City and Operator cannot agree on a schedule for curing the breach, the Agreement will be deemed terminated on a date specified by City which will be no sooner than ten (10) days from the date of issuance of final notice. In the event this Agreement is terminated by City, Operator shall promptly cooperate with the transition of the Facility to City according to all applicable laws and the terms of the Agreement.

1.4 Termination Due to Catastrophic or Natural Disaster. If, because of any catastrophic or natural disaster, it becomes impossible for Operator to render services and perform under this Agreement, City and Operator will meet to discuss termination, closure, 2022 YMCA OF SAN JOAQUIN AQUATICS FACILITIES AGREEMENT

Exhibit 1
44 and transition of the Facility to the City within ten (10) days of catastrophic cause, or as soon thereaffer as practical.

1.5 Vacation of Premises. Operator agrees to fully vacate the Facilities at the termination of this Agreement. Should Operator fail to vacate as herein provided, Operator agrees that City or its authorized agents may enter upon the premises and remove all personal property and equipment therefrom and that the cost of removal and any temporary storage or disposal shall be billed to the Operator and shall be the responsibility of Operator.

The City shall, within its sole discretion, determine whether any such property or equipment shall be stored or disposed of. Nothing herein shall be considered a waiver of the City's rights under the law to demand and obtain possession of the in the event of a violation of Operator's part of any of the terms or conditions hereof.

ARTICLE 2: DEFINITIONS.

In addition to terms defined elsewhere in this Agreement, the following terms have the meanings referred to in this section:

2.1 "Agreement" means this facilities management agreement.

2.2 "City" means the City of Stockton, a municipal corporation, and its authorized representatives, officers, officials, directors, employees, and agents.

2.3 "Director of Community Services" means the Director of Community Services of the City of Stockton, CA, or the Director's designee.

2.4 "Facilities" means the pool facilities and improvements, located at the related aquatic sites in Stockton, California, also collectively known as the aquatics facilities and as identified in Exhibit I : Aquatic Facilities Locations.

2.5 "Fiscal Year" means the one-year period from July I through June 30.

2.6 "Laws" means all federal, state, local, and municipal regulations, ordinances, statutes, rules, laws, and constitutional provisions.

2.7 "Operator" means the operator the aquatic facilities listed in this Agreement.

2.8 "Parties" means Operator and City of Stockton.

2.9 "Prevailing Wage" means any requirements by the State of California and the Department of Industrial Relations (DIR) by Operator to pay Prevailing Wage rates to all public works contracts as set forth in Labor Codes sections 1720, 1720.2, 1720.3, 1720.4, and 1771.
2,10 "Reports" means all reports identified, including miscellaneous, weekly, and monthly reports for facility to be prepared by Operator as set forth in Article 5. I 0 and Exhibit 10: Scope of Services.
2022 YMCA OF SAN JOAQUIN AQUATICS FACILITIES AGREEMENT

Exhibit 1
45 ARTICLE 3: COMPENSATION AND REVENUE.

3.I Compensation. Operator shall receive $405,000 subsidy for operation of facilities for the term of this agreement for each year of the first three years of term of agreement, paid upon invoice and receipt of data according to Exhibit 8: Compensation Schedule.

Invoices received by Operator shall be paid via City purchase order as follows:
50%, ($67,500) of contract will be paid upon receipt ofinvoice with copy of business license, receipt of approved insurance certs and endorsements, program plan signature of compliance of HR 40 fingerprinting and disqualifying criminal convictions to be paid via purchase order after contract is attested. (Estimated time frame May 1 of each year).

The second payment of $67,500 due August I shall be paid upon receipt of Operator invoice and invoice backup: weekly and monthly statistics and reports for May, June, and July.

3.2 Revenue. Operator shall receive 100% of the proceeds from all income producing activities associated with the Facilities, including, but not limited to the following: swim lessons, aquatic program fees, free swim, snack bar sales, special event rentals, fund raising, etc. One exception is rentals to swim teams where percentage of income kept will be negotiated.

ARTICLE 4: INDEMNIFICATION, INSURANCE.

4.I Insurance Requirements. Operator must obtain and shall always maintain in force during the duration and performance of this Agreement, the policies of insurance specified in Exhibit 2.

4.2 Proof of Insurance. Operator shall provide proof of insurance in the required form to the City's Risk Manager prior to contract attest as evidence that it has complied with the insurance requirements set forth in Exhibit 2

4.3 Indemnity and Hold Harmless. With the exception that this section shall in no event be construed to require indemnification by Operator to a greater extent than permitted under the public policy of the State of California, Operator shall, indemnify, protect, defend with counsel approved by City and at Operator's sole cost and expense, and hold harrmess City, its Mayor, Council, officials, representatives, agents, employees, and volunteers from and against any and all claims, causes of action, liabilities, judgments, awards, losses, liens, claims, stop notices, damages, expenses, and costs (including without limitation attorneys' fees, expert and consultant fees, and other expenses of litigation) of every nature, including, but not limited to, death or injury to persons, or damage to property, which arise out of or are in any way connected with the work performed, materials furnished, or services provided under this Agreement, or from any violation of any federal, state, or municipal law, or ordinance, or City Policy, by Operator or Operator's officers, agents, employees, volunteers, or subcontractors. Operator shall not be obligated to indemnify or defend City for claims finally determined by a court of law or arbitrator to arise from the active negligence or willful misconduct of the City. It is the intent of the Parties that this indemnity obligation 2022 YMCA OF SAN JOAQUIN AQUATICS FACILITIES AGREEMENT

Exhibit 1
46 is at least as broad as is permitted under California law. To the extent California Civil Code sections 2782, et seq., limit the defense or indemnity obligations of Operator to City, the intent hereunder is to provide the maximum defense and indemnity obligations allowed by Operator under the law. The indemnity set forth in this section shall not be limited by insurance requirements or by any other provision of this Agreement.

With the exception that this section shall in no event be construed to require indemnification, including the duty to defend, by Operator to a greater extent than permitted under the public policy of the State of California, the parties agree that Operator's duty to defend City is immediate and arises upon the filing of any claim against the City for damages which arise out of or are in any way connected with the work performed, materials furnished, or services provided under this Agreement by Operator or Operator's officers, agents, employees, volunteers, or subcontractors. Operator's duties and obligations to defend the City shall apply regardless of whether or not the issue of the City's liability, breach of this Agreement, or other obligation or fault has been determined. Operator shall be immediately obligated to pay for City's defense costs of the claim, including, but not limited to, court costs, attorney's fees and costs, expert consultant, and witness fees and costs, other witness fees, document reproduction costs, arbitration fees, and, if after final judgment an appeal is pursued, all such costs for the appeal. At the conclusion of the claim, if there is any determination or finding of active negligence or willful misconduct on the part of the City, City will then reimburse Operator for amounts paid more than Operator's proportionate share of responsibility for the damages within thirty (30) days after Operator provides City with copies of all biHs and expenses incurred in the defense of the claim(s). It is agreed between the parties that this reimbursement provision assures Operator is not obligated to defend or indemnify City in an amount greater than provided for under California law, including, without limitation, California Civil Code sections 2782, 2782.6, and 2782.8.

With the exception that this section shall in no event be construed to require indemnification by Operator to a greater extent than permitted under the public policy of the State of California, and in addition to the other indemnity obligations in this Agreement, Operator shall indemnify, defend, and hold harmless City, its Mayor, Council, officials, representatives, agents employees, and volunteers from and against all claims, losses, expenses, and costs including but not limited to attorneys' fees, arising out of any claim brought against the City by an employee, office, agent, or volunteer of Operator, regardless of whether such claim may be covered by any applicable workers' compensation insurance. Operator's indemnification obligation is not limited in any way by any limitation on the amount or type of damages, compensation, or benefits payable by or for the Operator under workers' compensation acts, disability acts, or other employee benefit acts.

4.4 Tender of Caims. Operator shall accept tender of any third-party claim submitted to it by City because of Operator's obligation herein within thirty (30) days of such tender.

4.5 Use of Contractors/Subcontractors Operator. If the Operator uses Contractors or Subcontractors for performance of its obligations pursuant to this Agreement, the Contractor/Subcontractor agrees to be bound to the Operator and City in the same manner and to the same extent as Operator is bound to the City under this Agreement, including all Indemnification and Insurance requirements. As to any Subcontractor, it shall be as to the extent the Indemnification and Insurance requirements apply to the scope of the Sub- 2022 YMCA OF SAN JOAQUIN AQU ATICS FACILITIES AGREEMENT

Exhibit 1
47 contractor's work. A copy of this Agreement will be furnished to the Contractor and Subcontractor upon request.

ARTICLE 5. MANAGEMENT RESPONSIBILITIES.

5.1 Manaqement Responsibilities. Operator owes to City the duty to perform its obligations under this Agreement and to conduct the management, operation, and daily maintenance of the Facilities at all times with integrity and good faith efforts consistent with the well-being of the greater Stockton community in a manner consistent with industry practices and all applicable laws, permits, and requirements Operator shall follow policies and guidelines established by the City that are applicable to the operation and maintenance of the Facilities. Operator shall not enter any material contracts which extend beyond the term of this Agreement and any extensions thereto. Operator will be responsible and comply with the terms and conditions of this Agreement; operating the Facilities with a full understanding of the standards and guidelines as well as in full compliance with laws, regulations and other legal requirements that apply to the Facilities

5.2 0perator Control of Facilities. After inspection by the County and the City, the Operator take possession of the Facilities to clean, prepare, and train staff for the current swim season by a day as mutually agreed upon in April. Final date will be no later than October 31, the exact dated shall be mutually agreed upon and be confirmed in writing by both parties.

5.3 Pre-Season Inspection. Operator will be prepared for a City final operations inspection of facilities and staff training on Thursday before Memorial Day Weekend in preparation for the Memorial Day weekend opening.

5.4 First Day of Swim Season. Operator will open Facilities for swim season the Friday of Memorial Day weekend for a full weekend of services (Friday-Saturday-Sunday) before resuming approved weekly Facilities schedule according to Exhibit 10: Scope of Services and Exhibit I I : Swim Schedule by Aquatic Facility.

5.5 Hours of Operation for Each Swim Season. The following schedule as identified in Exhibit Il : Swim Season by Aquatic Facility has been mutually agreed upon by City and Operator. Any deviation from this schedule must be communicated to City with 24-hour prior notice to City.

5.5.I MemorialDayWeekend: Facilities will be open Saturday, Sunday, and Monday of Memorial Day weekend). Pool will then begin the regular June schedule.

Optional Water Safety Days will occur as mutually agreed upon by Operator and City.

5.5.2 Weekly Schedule for Aquatic Locations: Pools will be open according to the schedule set by Operator and as listed in Exhibit 1l : Swim Schedu!e by Aquatic Facility. This Exhibit may be updated from time to time by mutual agreement of City and Operator.
2022 YMCA OF SAN JOAQUIN AQUATICS FACILITIES AGREEMENT

Exhibit 1
48 5.6 Swim Season Close Out. City and Operator will tour and inspect Facilities on the second week of September (or as mutually agreed upon) to complete close out inspection and return keys if appropriate.

5.7 Possessory Interest, Taxes, Assessments, Permits, Fines. Operator shall pay all taxes, including possessory interest, assessments, permits, or fines related to all aspects of operation of the Facilities. For clarity, Operator shall pay such costs related to Facilities operations only.

5.8 Expense Obliqation. Except as set forth elsewhere herein regarding maintenance, repairs, chemicals and the like, Operator agrees to pay IOO% or all costs and expenses related to Operator's operation of the Facilities without limitation. In the event the Operator incurs costs related to the operation and use of the Facilities, the City will not be required to pay any part of any such expense, and the Operator shall not have any claim against the City on account of any costs or expenses related to the operation or repair of the Facilities.

5.9 Qualified Personnel. Operator shall abide by standards set by City as to the number of supervisory personnel required at each aquatic location when the pool is in operation. Operator shall use certified lifeguards with training from any reputable trainer and minimum staffing standards in alignment with state requirements, City policy, and as may be mutually agreed upon.

5.10 Weekly and Monthly Reports. Operator shall provide the following reports as required:

5.10.I Proqramminq Plan: Annually, Operator shall provide a program operation plan for City's review and approval to include, but not limited to, general operating hours by day, fees for each type of activity, special events, public use, and any other services generally offered to the public. This shall be provided to City before May I of each term, or an alternate date as mutually agreed upon.

5.10.2 Weekly and Monthly Participation Reports: Reports for actual daily use (participants and spectators) number of rentals, schedule of programs, program fees, listing of programs offered. The participant and spectator numbers should tie to program totals. Note: Statistics should be provided on daily use by activity, summarized in weekly report which correlates to monthly reports. The reports should be updated weekly and available in an online format as mutually agreed upon.

5.10.3 Daily Chemical loqs: Operator will maintain one Chemical log which will report all mandatory activities regarding water quality. Log will be hourly, kept in a location for water quality vendor to review as needed; copies provided to city weekly during weekly inspection.

5.10.4 0perator Inventory Report: List of Operator owned equipment on site to be provided at season start up inspection and verified at season close inspection, as identified in Exhibit 5: Facilities Inventory
2022 YMCA OF SAN JOAQUIN AQUATICS FACILITIES AGREEMENT

Exhibit 1
49 5.10.5 City Inventory Report: List of City owned equipment and materials on site which will be provided at season start up inspection and verified at season close inspection as identified in Exhibit 5: Facilities Inventory

5.10.6 List of Certificates: Summary of all staff that worked during the week and copies or appropriate and valid certificates for Facility personnel will required during weekly inspection.

5.10,7 Pre-Season Site evaluation and Recommendation Report: as further clarified in Exhibit 10: Scope of Service

5.10.8 Post Season Closure Report: As further clarified in Exhibit 10: Scope of Service

5.11 Day to Day Manaqement of Facilities. Operator will have sole responsibility for the day-to-day management of Facilities operations and programming.

5.12 0versight by Operator. Operator will provide an agreed upon minimum level of staffing and qualified management to provide the day-to-day management of Facilities as contemplated in this Agreement. Operator shall also establish and provide management policies and procedures to adequately operate Facilities pursuant to this Agreement.

Copies of lifeguard certificates, first aid certificates, and Certified Pool Operator certificate(s) for all applicable personnel must be submitted to the Community Services Department prior to the first day of operation. In addition, Operator shall provide a Certified Pool Operator (CPO) to maintain all aspects of pool maintenance including chlorine levels, Ph levels, and equipment for hours of operation. Any changes to personnel or policies should be documented and provided to the City weekly during inspection.

5.13 After-Hours Facility Emerqencies. For after-hours facility emergencies, Operator shall contact Public Works regarding the emergency via an after-hours phone at (209) 937-8341.

5.14 Promotion of Facilities. The City and Operator will actively cooperate to promote Facilities. City and Operator shall work together to promote Facilities through City avenues to market activities.

5.15 Responsibilities to Operate, Maintain, Permit and Provide Supplies. Except as set forth elsewhere herein regarding maintenance, repairs chemicals and the like, Operator shall be responsible for the management, operation, and routine daily maintenance of the Facilities including but not limited to, full scheduling of programs, staffing, marketing, and daily janitorial maintenance of Facilities, concession sales, rental, and daily cleaning and maintenance of all areas contained within the Facilities.

Operator shall keep facilities in clean and sanitary condition, performing routine daily maintenance, including but not limited to hosing down the pool decks, shower area and bathrooms, routine daily and hourly cleaning of bathrooms and floors, sinks, and toilets, picking up of trash and litter in and around the pool area, and other routine janitorial maintenance (including spot inspections) to insure total cleanliness of the entire Facilities. 2022 YMCA OF SAN JOAQUIN AQUATICS FACILITIES AGREEMENT

Exhibit 1
50 City will obtain permits from the San Joaquin County for pool operations. City will obtain permits and inspections, if any, for chemical storage plus any additional permits required to meet City and county or state requirements for the operation of Facilities as contemplated under this Agreement. Operator covenants that it has obtained all certificates, licenses, permits and the like required to perform the services under this Agreement.

At the conclusion of this Agreement, Operator is responsible for returning the Facilities to the condition in which it began operations.

5.16 New Hire, Recruitment, and Staffinq Guidelines. Operator shall hire, supervise, and manage all personnel (paid or volunteer) necessary for the management, operation, and routine daily maintenance of Facilities and shall comply with City's administrative directive with respect to fingerprinting Operator employees and volunteers. Any individual who has been convicted of certain criminal offenses as set forth below, is not eligible to work or volunteer under this Agreement.

Operator shall comply with the relevant portions of City's Administrative Directive HR-40 (Exhibit 3) regarding who must be fingerprinted and what offenses or disqualifiers will prohibit an individual from working at Facilities. Operator employees and volunteers, if applicable, are required to submit fingerprints in a manner authorized by the State of California Department of Justice. Operator and all applicable employees/volunteers shall submit fingerprints prior to start of work. Operator is responsible for all costs of fingerprinting and background check. Any individual who has been convicted of certain criminal offenses (disqualifiers) is not eligible to work at Facilities. The disqualifying criminal convictions are as follows: Any of those offenses identified in Public Resources Code, section 5164 except for Penal Code sections 211, 215, 236, or 240, provided, however, that any individual who has been convicted of violating Penal Code sections 211, 215, 236, or 240 may, in the sole discretion of the Operator or the City, nevertheless be ineligible to work or volunteer at the Facilities under this Agreement. In addition, if any of the Operator's employee(s)/volunteer(s) assigned is/are subsequently found to have a disqualifying conviction, that/those individuals shall be immediately removed from the Facilities and shall not be allowed to perform any further work under this Agreement. If the Operator is subsequently found to have a disqualifying conviction, the contract may be immediately terminated by City. The Operator shall certify in writing to City before the first day or each season of operation that neither the Operator nor any of Operator's employees have been convicted of any of the offenses specified in California Public Resources Code section 5164 or City of Stockton Administrative Directive HR-40.

5.17 Signature of Compliance for HR-40. Operator shall confirm, in writing, prior to each swim season (see Exhibit 4: Signature of Compliance for HR40) to City that Operator employees/ volunteers have been fingerprinted and not convicted of any of the offenses specific in California Public Resources Code section 5164 or City of Stockton Administrative Directive HR40, Fingerprinting

5.18 Snack Bar Sales. Operator is granted the exclusive right to sell food and merchandise at the Facilities at the sole cost and expense of the Operator. Operator shall retain all revenue from concession sales. Operator shall provide copies of all related concession licenses for City review if requested. It shall be the sole responsibility of 2022 YMCA OF SAN JOAQUIN AQUATICS FACILITIES AGREEMENT

Exhibit 1
51 Operator to ensure that all food and beverage products sold by Operator, or its concessionaire(s) shall conform to all applicable federal, state, and local laws, including the California Health and Safety Code, and other requirements. Operator is responsible to timely report and pay all sales tax.

5.19 Emergency Contacts. Operator will provide City with emergency phone numbers of key staff and Board Members. Operator shall ensure that City representatives could communicate with said persons twenty-four hours a day when emergency conditions occur.

5.20 Facility LJse Aqreements. Operator shall be responsible for entering into Facility Use Agreements with all renters and users of the Facilities for aquatic and rental activities.

Operator shall be responsible for developing the form of each Agreement and complying with all requirements established by City Risk Services and contract compliance requirements for users of the Facilities.

5.21 Compatible Use. Operator agrees not to make use of Facilities and property in any way which will endanger human health or the environment, create a nuisance or otherwise be incompatible with the use of the Facilities as they are intended and according to the terms and conditions of this Agreement and general use of an Aquatic Facilities.

5.22 Non-Profit Status. Operator is a not-for-profit organization whose primary function under this Agreement is to provide day-to-day management of Facilities operations in accordance with policies and directives of City. Operator must maintain status for entire Agreement.

5.23 Summer Youth Proqrams. Operator will operate a summer youth camp at the following locations directly adjacent to the Facilities as listed in Exhibit 1 : Aquatics Facilities Locations. City will not pay Operator for the program, and the Operator will not share revenue with the City. Operator will manage the camps with the same general terms and conditions of this agreement and the additional terms and conditions as follow:

5.23.I PicnicAreas:Operatorwillnotusegrouppicnicareasoranyotherrentablespace without making reservations and payment of those ancillary services.

5.23.2 Summer Camp: The Summer Camp may operate weekdays. The City does not provide these services at these locations as regular business.

5.23.3 Performance: The City will not have any control over how Operator performs.

Operator will perform services in a manner commensurate with childcare best practices and standards.

5.23.4 Insurance: There will be no work on site before obtaining and providing insurance for these activities and ancillary areas and this area and duty shall be included on the certificate of insurance with the same requirements as Exhibit 2:

Insurance.

5.23.5 Staffinq Ratio: Staffing ratio is one counselor per 15 campers.

5.23.6 Bathroom supervision: Campers wil! be supervised when accessing the park or pool facility bathrooms.

5.23.7 Supervised Swim: Campers will have daily access to supervised swim with their counse!ors.
2022 YMCA OF SA!4 JOAQUIN AQUATICS FACILITIES AGREEMENT

Exhibit 1
52 5.24 Summer Meal Programs.

Operator may offer summer meal programs if offered by Stockton Unified School District (SUSD) Child Nutrition Program, or any other officially authorized meals program. If Operator enters into an agreement with summer meals provider, Operator must meet all additional food handling requirements, food safety, and sanitation standards, in addition, this activity will be identified on insurance certificates in accordance with Exhibit 2:

Insurance. All terms and conditions of this agreement also apply to this program activity.

5.26 Sponsorship of Programming. The Operator has the right to establish a sponsorship program for operational activities at each location to offset the cost of those programs, Sponsorships can be identified on flyers, website, and banners. Any publication of sponsorship should identify and provide limiting language that the activities are supported by the sponsor. City and Operator can work together to find mutually agreeable language for sponsors.

ARTICLE 6. MAINTENANCE, JANITORIAL, AND SECURITY OF FACILITIES 6,I Acceptance of Condition of Facilities. Operator accepts the Facilities and all equipment hereunder in their present 'as is' condition, without warranty by City or any duty or obligation on the part of the City to maintain the facilities other than as set forth herein.

At the end of the term of this Agreement or its earlier termination, Operator will surrender to the City, the Facilities in the same condition as when received, less reasonable use and wear and tear, damage caused by an act of god or by the elements excepted. Operator shall remove all equipment and personal property of the Operator, except, however, the City may approve, in writing, any deviation from this requirement. If Operator fails to remove its property after notice by City, Operator agrees that City may remove said property and bill the cost of removal and/or storage, if necessary, to Operator, who agrees to be responsible for such costs.

6.2 Improvements. Operator is not granted permission to construct improvements on the Facilities.

6.3 Prevailinq Wage. In the performance of the work to be completed on Facilities, without limitation of any other provision of this Agreement, Operator shall pay or cause to be paid prevailing wages for all work done under this Agreement if prevailing wage is determined to be required.

6.4 Janitorial Services, Maintenance, and Security of Facilities. Operator shall be responsible to supervise the safety and sanitary conditions of their use of the Facilities and shall remedy without delay any unsafe, dangerous, or unsanitary conditions therein (except that City shall be responsible for the maintenance, repairs and chemicals as described below). If there are any safety or security issues related to water quality or equipment, Operator will promptly notify the City of any concerns. In addition, Operator shall be responsible for the daily routine maintenance and housekeeping of the facility and all adjacent areas, keeping them in a safe, clean, wholesome, and good condition, and sanitary condition. Operator shall always ensure that during the term of this Agreement that Facilities shall be kept free of trash, garbage, and obstructions of any kind, and ensure that all trash resulting from cleaning shall be placed in appropriate containers. Facility shall 2022 YMCA OF SAN JOAQUIN AQUATICS FACILITIES AGREEMENT

Exhibit 1
53 be kept in compliance with all applicable present and future laws relating to sanitation, public health, safety, or welfare or any general rules and regulations of any governmental authority in force now, or at any time, during the term of this Agreement. City agrees Operator has no responsibility for any repairs, maintenance, or work to the Facility including but not limited to repairs to any building, fixtures, equipment, plumbing, electrical or mechanical systems, landscaping, or roadways.

6.5 Utilities and Water. City is responsible for and agrees to pay for all utilities (inclusive of gas, propane, electric, water, sewage, wastewater, discharge fees, charges, inspections, reports, communication, and related costs) utility use, including connections and upgrades for Facilities. City is responsible for payment of all charges, reports, inspections, fees, service charges, and other requirements related to the use permits, licenses, and permit requirements. Operator agrees that all water usage and regulations in connection with these Facilities be monitored and adhered to by the Operator. Operator shall immediately contact Municipal Utilities and Community Services Departments if there is any discharge or release of water or materials into the storm drains at Facility.

6.6 0perations, Permits, Licenses. Operator shall, for the conduct of operations of Operator's operations under this Agreement and at its sole expense, obtain and maintain in full force and effect throughout the Term and any extension thereof, all applicable permits and licenses which may be required by any law, including administrative regulations, regulatory requirements, regarding Operator operational requirements. Including without limitation, a City business license.

All users of the Facilities shall be required to adhere to all City and Operator terms and conditions, procedures, rules, and regulations now and hereafter adopted by City for use and control of the Facilities. Operator shall conform to and enforce all rules and regulations now and hereaffer adopted for the use and control of the Facilities. This includes all local and state requirements for recreation, health, and public safety.

Operator shall have sole responsibility for enforcing all applicable rules and regulations, including being responsible to ask those individuals who are in violation of the rules to leave the premises immediately.

Operator will be responsible to report, file and pay all sales and use taxes. The City reserves the right to review all sales and use tax returns.

6.7 State of California and San Joaquin County Hazardous Materials Storage, Reportinq, and Safety Plan Requirements. Operator shall train all staff to be familiar with the California Environmental Reporting System (CERS) requirements, and to be able and willing to identify any situation that may not or does not meet the state and local requirements for storage of hazardous materials. Operator shall promptly report any concerns to City. The City is responsible for the reporting of hazardous materials and filing of a Business Plan and or a safety plan if reqciired. City may be required to obtain chemical storage permit as required.

6.8 Certified Pool Operator/Water Quality Assurance. Operator agrees that a Certified Pool Operator (CPO) and water quality specialist will maintain California 2022 YMCA OF SAN JOAQUIN AQU ATICS FACILITIES AGREEMENT

Exhibit 1
54 Regulatory Title 22 charts and reporting requirements, as described in in Exhibit 6 and Exhibit 7 at all facilities and will coordinate all water quality issues with City and City Contractor for water quality. If a health concern (fecal event, water contamination or issue of concern) occurs, Operator staff shall immediately close the pool, notify all swimmers to exit the water, and not allow the pool to reopen until City and/or water quality vendor notifies Operator the pool is safe for swimming. During the day, if it becomes necessary, CPO will notify City Water Quality Vendor of any needs or concerns. CPO and lifeguards under the direction of CPO, will monitor, and appropriately document pool maintenance and water quality/chemistry per direction by City. Water quality records using the form supplied by City shall be filled out according to policy and kept in a key location at the Facilities, copies of the water quality logs shall be turned in according to Section 5.10 and made available to City and San Joaquin County inspectors upon request. Operating instructions regarding water quality assurance activities may be changed via written notice.

6.9 Operator shall be responsible for determining the operational security needs of the Facilities, arrange for adequate staff and security for all events at the Facilities.

Operator will maintain copies of all City provided reports on site during current swim season (ex: Security Plan, Evacuation Plan, and other reports as required by City Safety Officer and/or applicable local and state codes).

6.10 First Aid and Signaqe/Equipment/Condition Requirements. City shall be responsible to provide and maintain all required signage, safety equipment, and start up for I O-person first aid kit items. Operator will be required to maintain first aid supplies in the amount initially provided by City. Operator shall immediately notify the City before Facilities opening if Operator daily pre-opening inspection shows there is a deficiency in signage, water quality standards, safety equipment, or evidence of graffiti, and or vandalism.

Operator will also fill out required incident reports or police reports and provide an electronic copy by end of business day.

6.11 Riqht of Entry, Keys, and Security Codes. Installation of locks and keys will be the responsibility of the City. City reserves the right to install a security system. Operator shall be provided a copy of City key policies and enforce those rules with employees.

Operator shall assign unique employee code to each employee with key carrier rights. City and Operator sha!l maintain a list of key holders to be turned in to City within three (3) weeks before swim season start. If an Operator employee is terminated, Operator will receive and return to City all assigned keys upon termination. Operator will not copy City keys. City shall maintain right to enter to inspect or repair the Facilities. Upon termination of Agreement, Operator shall surrender all sets of keys to the Facilities to City on the final Facilities swim season close out inspection. Failure to maintain internal controls over pool may require the Operator pay for the Facilities to be rekeyed at sole cost of Operator.

6.12 Inventory of Materials and Supplies. Operator shall be responsible to provide the equipment and materials for Operations as further described in Exhibit 5 and complete a daily pre-opening inspection.

6.13 Water Quality Maintenance and Supplies. The City through its water quality vendor shall be responsible to purchase/deliver pool chlorine and chemicals for the term of this Agreement. Pool chemicals include algae, acid, stain, and scale treatments. City shall 2022 YMCA OF SAN JOAQUIN AQUATICS FACILITIES AGREEMENT

Exhibit 1
55 purchase and provide filters for filter breakdown. City shall maintain the ultimate responsibility to maintain water quality standards with the support of Operator during open hours. Operator and City shall work cooperatively to always maintain safe water quality standards. City shall be responsible to pay for maintenance related to pool equipment, pumps, filters, etc. City shall be responsible for building and grounds maintenance as defined by fencing, graffiti removal, vandalism, landscaping, and irrigation. Operator shall promptly notify City if any condition occurs during Operator management of Facilities which may affect health and safety of visitors.

6.14 Notice of Inspection. If regulatory inspections occur on site, Operator will immediately notify City of the inspection and outcome.

6.15 Notice of Closure. If Operator must shut down Facilities during regularly scheduled hours (as identified Section 5.5), Operator must notify the City authorized representative 24 hours prior to proposed closure or immediately afier the Facilities are closed.

6.'l6 Notice of Media Contact. If the media arrives on site to report, photograph, or interview, Operator will immediately contact Director of Community Services (or designee) and the City's Public Information Officer at (209) 937-8827.

6.17 Police Reports. Operator promptly notify the Community Services Department if laws are broken, or if thefi occurs. Operator will file related police reports and incidents report in a timely manner and provide an electronic copy by close of business day.

ARTICLE 7. GENERAL PROVISIONS.

7.1 Relationship of Parties. Nothing contained in this Agreement shall be interpreted or understood by any of the parties, or by any third person, as creating the relationship of employer and employee, principal, and agent, limited or general partnership, or joint venture between City and Operator or its agents, employees, or contractors. Nothing herein contained is intended to be construed as creating or establishing a relationship of partners, or a joint venture between Operator or City. Operator shall not be considered a tenant and shall gain no right to occupy facilities as a tenant or any other property right or interest in the Facilities by virtue of this Agreement. Neither Operator, its principal, nor any Operator employee or volunteer is an employee of City, and none are entitled to any of the rights, benefits, or privileges of City employees, including but not limited to medical, unemployment, or worker's compensation. Except as City may specify in writing, Operator shall have no authority to act as an agent of City or bind City to any obligation. Nothing in this Agreement, either express or implied, is intended to confer upon any person or entity, other than City and Operator and their respective officers, directors, employees, and agents providing services under this Agreement any rights, remedies, obligations, or liabilities or by reason of this Agreement.

7.2 Neither City nor its officers, agents, or employees and/or, volunteers shall have sufficient control over the conduct of Operator or any of Operator's employees, except as herein set forth; and Operator expressly agrees not to represent that Operator or any of Operator's agents, servants, or employees, to be deemed the agents, servants, or employees of City.
2022 YMCA OF SAN JOAQUIN AQUATICS FACILITIES AGREEMENT

Exhibit 1
56 7.3 No Third-Party Beneficiaries. No person or entity, other than Operator shall be deemed to be a third-party beneficiary hereof, or a third party to the Facilities.

7.4 Debt Liability Disclaimer. City will not be liable for any debts or claims that arise from the obligations of the Operator.

7.5 Title Vl of the Civil Rights Act and Non-Discrimination. Title Vl of the Civil Rights Act of 1964 requires that "no person in the United States shall, on the grounds of race, color, or national origin, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity receiving federal funding assistance." (2 USC Section 2000d). https: www.dol.gov/oasam/regs/statutes/titlevi.htm.

The City of Stockton is committed to complying with the requirements of Title Vl in all its federally funded programs and activities.

In performing services under this Agreement, Operator shall not discriminate in the employment or application of employment of employees or in the engagement of any contractors or subcontractors based on race, color, religion, sex, marital status, national origin, ancestry, age, or any other criteria prohibited by law. Operator agrees to comply fully with all applicable federal, state, local laws, ordinances, executive orders, and regulations which prohibit discrimination.

The City of Stockton has a Discrimination and Harassment Policy which is attached and as Exhibit 9: HR15, Harassment and Discrimination Policy. The purpose of the policy is to reaffirm the City's commitment to demonstrating respect for all individuals by strictly prohibiting discrimination and harassment, including sexual harassment in the workplace, to define the types of behavior and conduct prohibited by this policy, and to set forth a procedure for reporting, investigating, and resolving complaints of discrimination and harassment in the workplace.

7.6 Assiqnment. Operator may not assign, sublet transfer, or otherwise alienate its rights and obligations pursuant to this Agreement, without written consent or the Director of Community Services, and then only upon such terms and conditions as City may set forth in writing. Operator shall be solely responsible for reimbursing vendors, contractors, employees, and subcontractors.

7.7 Reserved Riqhts. During the term of this Agreement, there shall be and is hereby expressed reserved to City and its agencies, contractors, agents, employees, representatives, or licensees, the right to use the Facilities and Property for all purposes which will not unreasonably interfere with Operator's enjoyment of its rights under this Agreement. City reserves the right to make use of the property for such proposes as it may deem necessary or appropriate, if, and whenever in the interest of its service to customers or the public, it shall appear necessary or desirable to do SO. City further reserves the right at all reasonable times, to temporarily enter upon said premises for inspection or other lawful City purposes.
2022 YMCA OF SAN JO AQUIN AQU ATICS FACILITIES AGREEMENT

Exhibit 1
57 7.8 Notices. All written notices and communication required to be given under the provisions of this Agreement shall be delivered personally, or mailed and addressed as follows:

To City:

Phone
City Manager
City of Stockton
425 N. EI Dorado Street
Stockton, CA 95202
(209) 937-8212
To: Dan Chapman, Chief Executive Officer
YMCA of San Joaquin
2105 W. March Lane Suite 1
Stockton, CA 95207
(209) 472-9622

7.9 . Any waiver by City of any obligation or condition in this Agreement must be in writing. No waiver will be implied form any delay or failure by City to act on any breach or default of Operator or to pursue any remedy allowed under this Agreement or applicable law. Any extension of time granted to Operator to perform any obligation under this Agreement shall not operate as a waiver or release from any of its obligations under this Agreement. Consent by City to any act or omission by Operator shall not be construed to be a consent to any other or subsequent act or omission or to waive the requirement for City's written consent to future waivers.

7.10 Applicable Law, Resolutions of Disputes, Forum, and Attorney's Fees.

California law shall govern any legal action pursuant to this Agreement with venue in the applicable state court or forum for San Joaquin County, Stockton Division and for federal claims in the federal district court for California, Eastern District, Sacramento Division. The prevailing party in any action brought to enforce or construe the terms of this Agreement may recover from the other party its reasonable costs and attorney's fees expended in connection with such an action.

7.11 Severability. The provisions of this Agreement are severable to the extent that should any of its provisions or terms be declared void in whole or in part by operation of law or agreement of the parties, the remainder of the provisions or terms not expressly declared void shall remain enforceable and in full effect.

7.12 Integration and Modification. This Agreement represents the entire integrated agreement between Operator and City; supersedes all prior negotiations, representations, or agreements, either written or oral between the parties and may be amended only by written instrument signed by Operator and Community Services Director. All Exhibits and this Agreement are intended to be construed as a single document. Should any inconsistency occur between the specific terms of this Agreement and the attached Exhibits, the terms of this Agreement shall prevail. 2022 YMCA OF SAN JOAQUIN AQUATICS FACILITIES AGREEMENT

Exhibit 1
58 7.13 Title of Parts and Sections. The Title of parts and sections of this Agreement are for convenience only and shall not be deemed to be relevant in resolving any questions of interpretation or intent.

7.14 Language Construction. The Language of each and all paragraphs, terms and/or provisions of this Agreement, shall, in all cases and for all cases and for all purposes, and in any way and all circumstances whatsoever, be construed as a whole, according to its fair meaning, and not for or against any party hereto and with no regard whatsoever to the identity any status of any person.

7.15 Records,Audits,Reports. OperatoragreesthatCityoritsdesigneeshallhavethe right to review, obtain, and copy all records pertaining to the performance of the Agreement.

Operator agrees to provide the City any relevant information requested and shall permit City or designee access of its premises, upon reasonable notice, during normal business hours for the purpose if interviewing employees and inspecting/copying such books, records, accounts, and other material that may be relevant to a matter under investigation for the purposes of determining compliance with this Agreement. Operator agrees to maintain such records for a period of three (3) years affer termination of Agreement.

Operator agrees to send annual report to City in May of each year for the term of the Agreement.

7.16 Condemnation. If the whole or any substantial part of the Facilities shall be taken by any paramount public authority under the power of eminent domain, then this Agreement shall be terminated as to such Facilities from the day when the possession of that part shall be taken for said public purpose. All damages awarded for this taking shall belong to and be property of City, and all agreements pertaining to that sale including without limitation all related agreements. However, City shall not be entitled to any portion of the award made for loss of business installation or improvements belonging to Operator, if any.

7.17 Discretion of the City. City's execution of this Agreement in no way limits the discretion of City in the permit and approval process in connection with any improvements by Operator.

7.18 EntireAqreement. ThisAgreementandanyExhibitsattachedheretoconstitutethe sole and entire agreement of the parties hereto with respect to the matters herein and correctly sets for the rights, duties, and obligations of each to the other as of the date first written above. There are no other Agreements or understandings, written or oral, between the parties regarding this Agreement other than those set forth herein. All prior or contemporaneous negotiations, Agreements, and understandings, oral, written, are revoked, cancelled, and rescinded, and are all merged herein and superseded hereby.

The following exhibits are included and incorporated into this Agreement by this reference:

Exhibit I
Exhibit 2
Exhibit 3
Exhibit 4
Exhibit 5
Aquatics Facilities Locations
Insurance
HR 40, Fingerprinting
Signature of Compliance for HR 40
Facilities Inventory
2022 YMCA OF SAN JOAQUIN AQUATICS FACILITIES AGREEMENT

Exhibit 1
59 Exhibit 6
Exhibit 7
Exhibit 8
Exhibit 9
Exhibit 10
Exhibit Il
San Joaquin County Environmental Health Department Notice: Title 22 CCR Changes Effective January 1, 2015
San Joaquin County Environmental Health Department Notice:

Recommendations for the Management of Fecal Accidents at Public Pools Compensation Schedule
HR15, Harassment and Discrimination Policy
Scope of Services
Swim Schedule by Aquatic Facility

7.19 Non-LiabilityofCityOfficials. Nomember,official,employeeoragentofCityshall be personally liable to Operator in the event of any default or breach by City or for any amount which may become due to Operator or its successor or on any obligation under the terms of this Agreement.

7.20 Law Abidinq Conduct. Operator agrees that it will comply with all the applicable laws and ordinances, administrative regulations, and orders of appropriate government authority in the conduct of its business and further agrees that City shall have the right to enter upon said premises at reasonable times for the purpose of inspection and ensure enforcement of this Agreement and ordinances and laws governing Operator's use of Facilities.

7.21 Conflict of Interest. Operator covenants that other than this Agreement, Operator has no financial interest with any official, employee, or other representative of the City.

Operator and its principals do not have any financial interest in real property, sources of income, or investment that would be affected in any manner of degree by the performance of Operator's services under this Agreement. If such an interest arises, Operator will immediately notify the City.

7.22 Confidentiality. Operator shall exercise all reasonable precautions to prevent the unauthorized disclosure and use of City reports, information, or conclusions.

7.23 Diqital Siqnature. The Parties agree that this agreement may be signed with a digital signature, which has the same force and effect of a handwritten signature.

7.24 Dispute Resolution. Prior to undertaking any litigation, the Parties shall make reasonable efforts to resolve all disputes informally, including by means of a conference between the senior managers of each Party having authority to resolve the dispute. If any litigation action or proceeding is commenced in connection with this Agreement, the prevailing Party, as determined by the court, shall be entitled to reasonable attorneys' fees (including allocated costs for in-house legal services), costs and necessary disbursements incurred in such action or proceeding.

7.25 Public Record Requests. Any documents provided by Operator to City are public records and City may authorize third parties to review and reproduce such documents pursuant to the public records laws and policies including the California Public Records Act.

If the Operator receives a public records request, Operator will immediately forward the request directly to the Director of Community Services. 2022 YMCA OF SAN JOAQUIN AQUATICS FACILITIES AGREEMENT

Exhibit 1
60 7.26. Force Maieure. For purposes of this Agreement, "Force Majeure" shall mean earthquake, fire, or other casualty, flood, landslide, epidemic, unforeseeable adverse weather, "acts of God", war, civil disturbance, court ordered injunction, intervention by civil or military authorities or government, strikes, lockouts, boycotts, or other labor disputes, to the extent any of the foregoing are beyond the reasonable control of either City or Operator and which cause either party to be delayed or hindered in or prevented from the performance of any covenant or obligation under this Agreement other than the payment of money.

If either Operator or City is delayed or prevented from the performance of any act required by this Agreement by reasons of Force Majeure, performance of such act shall be excused for the period of the delay, and the period for the peformance of any such act shall be extended for a period equivalent of the period of such delay. Both parties shall take reasonable steps during the existence of the condition to assure performance of their contractual obligations when the condition no longer exists. Failure to fulfil contractual obligations due to conditions beyond either party's reasonable control will not be considered a breach of contract, provided that such obligations shall be suspended only for the duration of the conditions.
2022 YMCA OF SAN JOAQUIN AQUATICS FACILITIES AGREEMENT

Exhibit 1
61 ARTICLE 8. AUTHORITY AND EXECUTION.

The undersigned hereby represent and warrant that they are authorized by the parties to execute this Agreement. This Agreement may be executed in counterparts, each of which shall be deemed to be an original, and such counterparts constitute one and the same instrument.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement the day and first year hereinabove written.

ATTEST: CITY OF STOCKTON
ELIZA R. GARZA CMC

CITY CLERK, CITY OF STOCKTON
BY:

HARRY BLACK

CITY MANAGER
APPROVED AS TO FORM:

JOHN M. LUEBBERKE

CITY ATTORNEY
BY:

YMCA OF SAN JOAQUIN
CHI.EF EXEC,,tJTl40,FFICER
2022 YMCA OF SAN JOAQUIN AQUATICS FACILITIES AGREEMENT

Exhibit 1
62 EXHIBITI:

Aquatic Facilities Locations
A. Oak Park Pool House Facility
3547 Alvarado Street
B. Sousa Pool House Facility
2900 Yellowstone

2022 YMCA OF SAN JOAQUIN AQUATICS FACILITIES AGREEMENT Exhibit 1
63 c Brooking Pool House Facility
4505 Nugget

D HOLIDAY POOL HOUSE FACILITY
5710 Kermit Lane

2022 YMCA OF SAN JOAQUIN AQUATICS FACILITIES AGREEMENT Exhibit 1
64 NOTE: The City of Stockton is now using the online insurance program PINS Advantage. Once you have been awarded a contract you will receive an email from the City's online insurance program requesting you to fomard the email to your insurance provider(s). Please see attached flyer regarding PINS Advantage.

Exhibit 2:

Insurance

REQUIREMENTS FOR SWIMMING POOL OPERATOR/SUMMER CAMP

OPERATOR/SEAMLESS SUMMER MEAL PROGRAM OPERATOR
Operator shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder and the results of that work by the Operator, their agents, representatives, employees, or subcontractors.

M/N/A/7UM SCOPE AND LIMIT OF INSURANCE
Coverage shall be at least as broad as:

1. Commercial General Liability (CGL): Insurance Services Office Form CG 00 01 covering CGL on an "occurrence" basis, including products and completed operations, property damage, bodily injury and personal & advertising injury, and sexual abuse and molestation (SAM) coverage with limits no less than $5,000,000 per occurrence. If a general aggregate limit applies, either the general aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice the required occurrence limit.

2. Workers' Compensation: as required by the State of California, with Statutory Limits, and Employer's Liability Insurance with limit of no less than $I,000,000 per accident for bodily injury or disease.

3. Property insurance against all risks of loss to any tenant improvements or betterments, at full replacement cost with no coinsurance penalty provision.

Limits of Insurance
The limits of insurance required in this agreement may be satisfied by a combination of primary and umbrella or excess insurance. Any umbrella or excess insurance shall contain or be endorsed to contain a provision that such coverage shall also apply on a primary and non-contributory basis before the City's own insurance or self-insurance shall be called upon to protect it as a named insured.

Other Insurance Provisions
2022 YMCA OF SAN JOAQUIN AQUATICS FACILITIES AGREEMENT

Exhibit 1
65 The insurance policies are to contain, or be endorsed to contain, the following provisions:

Additional Insured Status
The City of Stockton, its officers, officials, employees, and volunteers are to be covered as additional insureds on the CGL policy with respect to liability arising out of work or operations performed by or on behalf of the Operator including materials, parts, or equipment furnished in connection with such work or operations. General liability coverage can be provided in the form of an endorsement to the Operator's insurance (at least as broad as ISO Form CG 201011 85 or if not available, through the addition of both CG 20 10, CG 20 26, CG 20 33, or CG 20 38; a335i CG 20 37 if a later edition is used). Additional insured Name of Organization shall read "City of Stockton, its officers, officials, employees, and volunteers." Policy shall cover City of Stockton, its officers, officials, employees, and volunteers for all locations work is done under this contract.

Primary Coverage
The Additional Insured coverage under the Operator's policy shall be "primary and non- contributory" and will not seek contribution from the City's insurance or self-insurance and shall be at least as broad as CG 20 01 0413. The City of Stockton does not accept endorsements limiting the Operator's insurance coverage to the sole negligence of the Named Insured.

Notice of Cancellation
Each insurance policy required above shall provide that coverage shall not be canceled, except with notice to the City of Stockton.

Waiver of Subrogation
Operator hereby grants to City of Stockton a waiver of any right to subrogation which any insurer of said Operator may acquire against the City of Stockton by virtue of the payment of any loss under such insurance. Operator agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation, but this provision applies regardless of whether or not the City of Stockton has received a waiver of subrogation endorsement from the insurer. The Workers' Compensation policy shall be endorsed with a waiver of subrogation in favor of the City of Stockton for all work performed by the Operator, its employees, agents, and subcontractors.

Self-Insured Retentions
All Self-insured retentions must be disclosed to Risk Management for approval and shall not reduce the limits of liability. The City of Stockton may require the Operator to purchase coverage with a lower retention or provide proof of ability to pay losses and related investigations, claim administration, and defense expenses within the retention.

The policy language shall provide, or be endorsed to provide, that the self-insured retention may be satisfied by either the named insured or City of Stockton. 2022 YMCA OF SAN JOAQUIN AQUATICS FACILITIES AGREEMENT

Exhibit 1
66 Acceptabilit5r of /nsiirers
Insurance is to be placed with insurers with a current A.M. Best's rating of no less than A:

Vll, unless otherwise acceptable to the City of Stockton.

Verification of Coverage
Operator shall furnish the City of Stockton with original certificates and amendatory endorsements, or copies of the applicable policy language effecting coverage required by this clause. All certificates and endorsements are to be received and approved by the City of Stockton Risk Services before work commences. However, failure to obtain the required documents prior to the work beginning shall not waive the Operator's obligation to provide them. The City of Stockton reserves the right to require complete, certified copies of all required insurance policies, including endorsements required by these specifications, at any time.

Operator shall, prior to the commencement of work under this Agreement, provide the City of Stockton with a copy of its declarations page(s) and endorsement page(s) for each of the required policies.

Subcontractors
Operators shall require and verify that all subcontractors, or other parties hired for this work, purchase and maintain coverage for indemnity and insurance requirements as least as broad as specified in this agreement to the extent they apply to the scope of the subcontractor's work with the same certificate of insurance requirements and naming as additional insureds all parties to this contract. Operator shall include the following language in their agreement with Subcontractors: "Subcontractors hired by Operator agree to be bound to Operator and City in the same manner and to the same extent as Operator is bound to City under the contract documents and provide a valid certificate of insurance and the required endorsements included in the agreement as proof of compliance prior to commencement of any work and to include this same requirement for any subcontractors they hire for this work. A copy of the owner contract document indemnity and insurance provisions will be furnished to the subcontractor upon request." Operator shall provide proof of such compliance and verification to the City upon request.

Special Risks or Circumstances
City of Stockton reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances.
2022 YMCA OF SAN JOAQUIN AQUATICS FACILITIES AGREEMENT

Exhibit 1
67 Certificate Holder Address
Proper address for mailing certificates, endorsements and notices shall be:

City of Stockton
Attn: City Risk Services
400 E Main Street, 3rd Floor - HR
Stockton, CA 95202
2022 YMCA OF SAN JOAQUIN AQUATICS FACILITIES AGREEMENT

Exhibit 1
68 EXHIBIT 3:

HR40, Fingerprinting
Subject:

FINGERPRINTING OF APPLICANTS,

EMPLOYEES, INTERNS, TEMPORARY

AGENCY EMPLOYEES, AND

VOLUNTEERS APPLYING FOR AND
HOLDING POSITIONS WITH THE City OF

STOCKTON
Directive No-
HR-40
Effective Date:
4/7/14
Revised from :
8/1 /95
3/1 /00
8/30/04
7/24/06
4/1 4/08

PURPOSE
To provide a uniform policy and procedure for the administration of the City of Stockton Mandatory Fingerprinting Program, in accordance with California Public Resources Code section 5164, California Education Code section 10911.5, California Penal Code sections 11105, 11105.3, 13300, and any other applicable state and federal laws.

To ensure that the City of Stockton, as an agency receiving criminal history information, compiies with the requirements of the State of California, Department of Justice, Division of Criminal Justice Information Services.

POLICY
All applicants, employees, interns, temporary agency employees, and volunteers who meet the following conditions shall be subject to fingerprinting.

Employees Havinq Direct Contact With Minors. It is the policy of the City of Stockton to obtain criminal history information for all prospective, as well as current, full-time (including provisional and temporary), part-time, volunteer (including the San Joaquin County Alternate Work Program or any other community service or volunteer organization), and contractual employees in any department who have direct contactl with minors. This requirement shall be a condition of employment for all employees who have direct contact with minors.

The City of Stockton will not hire or retain any person or permit any person to volunteer his/her services to work with children in any department who has been convicted of certain criminal offenses (disqualifiers), as specified in California Public Resources Code section 5164.

I "Direct Contact" is defined in section 11.B.
2022 YMCA OF SAN JOAQUIN AQUATICS FACILITIES AGREEMENT

Exhibit 1
69 Subject:

FINGERPRINTING OF APPLICANTS,

EMPLOYEES, INTERNS, TEMPORARY

AGENCY EMPLOYEES, AND

VOLUNTEERS APPLYING FOR AND
HOLDING POSITIONS WITH THE City OF

STOCKTON
Directive No.

HR-40
Effective Date:
417114
Revised from:
8/1 /95
3/1 /00
8/30/04
7/24/06
4/1 4/08
Employees Performinq Sensitive Duties. In addition, to implement Stockton Municipal Code Chapter 2.70, the City of Stockton will obtain criminal history information for all persons applying for positions that require the employee to:

Perform sensitive and/or fiduciary duties, such as handling public Funds or confidential documents.

Enter privately owned property, structures, or curtilages.

Care for ill, injured, or incapacitated members of the public.

Have access to a secure facility.

Have direct contact with minors. "Direct contact with a minor" shall mean any of the following, during paid or unpaid work:

The care, supervision, guidance, or control of a minor on any basis.

Close physical proximity to a minor on more than an "occasional" or "incidental" basis.

Talking face-to-face with or within eye contact of a minor on more than an "occasional" or "incidentaf' basis.
"Occasional" shall mean irregular or infrequent. "lncidentar' shall mean occurring by chance or in isolation. If the job specifications for apposition requires contact with a minor on any basis, then the contact is neither "occasional" nor "incidental." The City of Stockton, in its discretion, may refuse to hire any person or permit any person to volunteer his/her services who has been convicted of any of the offenses (disqualifiers) specified in Appendix A of this policy. 2022 YMCA OF SAN JOAQUIN AQUATICS FACILITIES AGREEMENT

Exhibit 1
70 Subject:

FINGERPRINTING OF APPLICANTS,

EMPLOYEES, INTERNS, TEMPORARY

AGENCY EMPLOYEES, AND

VOLUNTEERS APPLYING FOR AND
HOLDING POSITIONS WITH THE City OF

STOCKTON
Directive No.

HR-40
Effective Date:
4/7/14
Revised from :
8/1 /95
3/1 /00
8/30/04
7/24/06
4/'1 4/08
In making any employment or retention decision based upon a disqualifier, the Director of Human Resources shall consider, among other factors: the employment classification to which the person is applying or being certified, including its sensitivity; the nature and seriousness of the conduct; whether there is a rational relationship between the employment duties and the nature of the conduct; the circumstances surrounding the conduct; the recentness of the conduct; the age of the individual at the time of the conduct; and the presence or absence of rehabilitation or efforts at rehabilitation.

Submission of fingerprints, as specified in the sections above, shall be a condition of employment.

This policy shall not apply to one-day events or programs.

This policy shall be administered by and is the responsibility of the Director of Human Resources.

PROCEDURES
Administration of Criminal Offense Record Information (CORI).

1. The Human Resources Department shall enter into an agreement with the California Department of Justice for the purpose of electronically exchanging criminal offender information. This information shall be accessible only to designated individuals in the Human Resources Department, and the affected computer terminal shall be in a secure area to provide protection from unauthorized access. CORI shall be made available to the City Auditor and designated members of his/her staff for the sole purpose of performance audits in accordance with Stockton Municipal Code section 2.70.020(8).
2022 YMCA OF SAN JO AQUIN AQU ATICS FACILITIES AGREEMENT

Exhibit 1
71 Subject:

FINGERPRINTING OF APPLICANTS,

EMPLOYEES, INTERNS, TEMPORARY

AGENCY EMPLOYEES, AND

VOLUNTEERS APPLYING FOR AND
HOLDING POSITIONS WITH THE City OF

STOCKTON
Directive No.

HR-40
Effective Date:
4/7/14
Revised from:
8/1 /95
3/1 /00
8/30/04
7/24/06
4/14/08
a.
b. Destruction. CORI shall be destroyed after the employment determination has been made, and copies of the CORI information will be destroyed in such a way that the employee's name can no longer be identified.

C. Dissemination. CORI shall be used only for the purpose forwhich it was requested; except that, the City Auditor shall have access to and shall examine CORI in connection with his/her duties under section 1501(d) of the City Charter.
d. S. CORI shall be securely maintained and accessible only to the Director of Human Resources or his/her designees and the City Auditor or his/her designees, who are committed to protect such information from unauthorized access, use, or disclosure. e. Reproduction. CORI shall not be reproduced for secondary dissemination.
f. Subsequent Arrest Reports. Any Subsequent Arrest Reports for separated employees, volunteers, and contract personnel shall be immediately returned to the Department of Justice.

The Director of Human Resources and/or his/her designees who are involved in the administration of this policy, and the City Auditor and/or his/her designees who conduct performance audits, shall be fingerprinted, and cleared by the Department of Justice p ri o r to attaining access to CORI. Each employee given CORI access shall be fingerprinted and processed through the California Department of Justice.

In addition, those employees shall execute a copy of the Employment Statement issued by the Department of Justice, which statement shall be maintained on file in the Human Resources Department. 2022 YMCA OF SAN JOAQUIN AQUATICS FACILITIES AGREEMENT

Exhibit 1
72 Subject:

FINGERPRINTING OF APPLICANTS,

EMPLOYEES, INTERNS, TEMPORARY

AGENCY EMPLOYEES, AND

VOLUNTEERS APPLYING FOR AND
HOLDING POSITIONS WITH THE City OF

STOCKTON
Directive No- Page 5 of 9
HR-40
Effective Date:
4/7/14
Revmed from :
8/1/95
3/1/00
8/30/04
7/24/06
4/1 4/08
Fingerprint Procedures and Review of CORI. All applications for employment and requests to volunteer services, without exception, are to be made to the Human Resources Department.

All applicants for employment covered under this policy (as set forth in sections II. A and B, above), including part-time, volunteer, intern, temporary agency, and contract personnel, shall be provided with a fingerprint application and required to submit one set of fingerprints to the Department of Justice prior to the pre-employment physical examination. (Note: This requirement shall not apply to those concessionaires who contract with the Community Services Department solely to rent space to conduct their own business.)
The applicant, volunteer, intern, temporary agency, or contract personnel shall hand-carry the fingerprint application, along with a valid California driver's license or identification card, to the Stockton Police Department Evidence Identification Section to complete the fingerprint process.

Upon receipt of CORI, including Subsequent Arrest Information, the designated Human Resources employees shall review the information for any arrests or convictions for disqualifiers. If there are no disqualiTiers, the clearance date shall be entered into the confidential database set up for this specific purpose. Llpon the employee's separation from City service, the California Department of Justice shall be notified of the separation to ensure that Subsequent Arrest Notifications are no Imgerreceived.

In the event CORI, including Subsequent Arrest Information, reveals disqualifiers, the Director of Human Resources shall evaluate the effect and potential effect of the employee's record of arrest on his/her position of employment, fellow employees, and the public in accordance with sections t1.8.2, above; and shall take appropriate action to maximize public safety and minimize
2022 YMCA OF SAN JOAQUIN AQUATICS FACILITIES AGREEMENT

Exhibit 1
73 i Subject:

FINGERPRINTING OF APPLICANTS,

EMPLOYEES, INTERNS, TEMPORARY

AGENCY EMPLOYEES, AND

VOLUNTEERS APPLYING FOR AND
HOLDING POSITIONS WITH THE City

OF STOCKTON
Directive No.

HR-40 Page 6 of 9
Effective Date:
4/7/14
Revised from:
8/i /95
3/1 /00
8/30/04
7/24/06
4/1 4/08
potential liability while respecting the rights of the employee or volunteer.

No applicant for employment will be permitted to report for work until the Director of Human Resources, or his or her designee, has first determined from review of the CORI information that the applicant has no disqualifying convictions.

In addition, any employee, volunteer, intern, temporary agency, or contract personnel who has direct contact with minors and forwhom a disqualifier is subsequently revealed shall be subject to any one of the following actions:
a. Transfer to a comparable position whose duties require no direct contact with children.
b. Reassignment to another department.

C. Placement back into a previously held position.
d. Termination.

The not?e of rejection of application for employment or the notice of termination due to disqualifiers is the sole responsibility of the Human Resources Department. The Human Resources Department will immediately notify the Department of Justice that the affected applicant, employee, or volunteer has been rejected and that subsequent reports are not necessary.

The appointing authority shall not make a hiring decision until after CORI has been received and reviewed by the Human Resources Department.

The applicant, employee, or volunteer shall be responsible for reporting any conviction or arrest pending final adjudication to the Human Resources Department. If any conviction or arrest pending adjudication occurs while the employee or volunteer is working for the 2022 YMCA OF SAN JOAQUIN AQUATICS FACILITIES AGREEMENT

Exhibit 1
74 Subject:

FINGERPRINTING OF APPLICANTS_
Directive No.

HR-40
a ' - - - - a - a a - - a - a a a - - - a - - a a - a - - - a - a -l EMPLOYEES, INTERNS, TEMPORARY EffeCtiVe Date: ReViSed from:

AGENCY EMPLOYEES, AND 4/7/14 8/1/95
VOLUNTEERSAPPLYING FOR AND 3/1/00
HOLDING POSITIONS WITH THE City 8/30/04
OFSTOCKTON 7/24/06
4/1 4/08
City, the employee, or volunteer shall report that conviction or arrest to the Human Resources Department. Failure to report an arrest or conviction shall be grounds for disciplinary action, up to and including termination.

8. Employees transferring or promoting to positions covered under this directive shall have a right of reversion to a previously held position in the event subsequent arrest information reveals a disqualifier; EXCEPT THAT the City reserves its right to discipline an employee, up to and including termination, pursuant to the City Charter, Stockton Municipal Code, Civil Service Rules, collective bargaining agreements, and/or any applicable laws or regulations.

PENALTIES
Misuse of CORI is a criminal offense, which may result in criminal or civil prosecution and may result in administrative action up to and including loss of access to information maintained by the Department of Justice and/or termination of employment, in accordance with City Charter sections 1 201(a) and 1502, Administrative Directive No. HR-008, applicable memoranda of understanding, and/or the Civil Service Rules and Regulations.

Any violation of this policy shall result in disciplinary action, up to and including termination from City service.

APPROVED:

KURT O. \/\/ILSON
City IS/IANAGER
2022 YMCA OF SAN JOAQUIN AQUATICS FACILITIES AGREEMENT

Exhibit 1
75 Subject:

FINGERPRINTING OF APPLICANTS,

EMPLOYEES, INTERNS, TEMPORARY

AGENCY EMPLOYEES, AND

VOLUNTEERS APPLYING FOR AND
HOLDING POSITIONS WITH THE City OF

STOCKTON
Directive No-
HR-40

Effective Date:
417114
Revised from :
8/1 /95
3/1 /00
8/30/04
7/24/06
4/1 4/08

APPENDIX A
Convictions for which an applicant may be rejected, or for which refusal of certification for appointment, or termination of employment may result, are as follows:

Crimes Aqainst Persons
Murder (Penal Code § 187, et seq.)
Voluntary manslaughter (Penal Code § 191.5, et seq.) Mayhem (Penal Code § 203, et seq.)
Torture (Penal Code § 206, et seq.)
Robbery (Penal Code § 211, et seq.)
Assault and/or battery (Penal Code §§ 240, et seq.,' 243, et seq.) Rape (Penal Code §§ 261-263; 269.)
Kidnapping (Penal Code § 207, et seq.)
Prostitution (Penal Code §§ 266-267)
Lewd or lascivious acts (Penal Code §§ 288, 288.2) Indecent exposure (Penal Code § 314)
Stalking (Penal Code § 646.9, et seq.)
Registered sex offender (Penal Code § 290)
Child abandonment (Penal Code§ 271, et seq.)
Contributing to the delinquency of a minor (Penal Code § 272, et seq. ) !ncest (Penal Code § 285)
A criminal violation that is substantially similar in nature to any of the foregoing crimes against persons.

Crimes Aqainst Property
Arson (Penal Code § 451, et seq.)
Theft / Larceny (Penal Code § 484, et seq. )
Burglary (Penal Code§ 458, et seq.)
Forgery (Penal Code§ 470, et seq.)
Embezzlement (Penal Code§ 503, et seq.)
Identity theft (Penal Code§ 530.5, et seq.)
2022 YMCA OF SAN JOAQUIN AQUATICS FACILITIES AGREEMENT

Exhibit 1
76 Subject:

FINGERPRINTING OF APPLICANTS,

EMPLOYEES, INTERNS, TEMPORARY

AGENCY EMPLOYEES, AND

VOLUNTEERS APPLYING FOR AND
HOLDING POSITIONS WITH THE City OF

STOCKTON
Directive No-
HR-40

Effective Date:
4/7/14
Revised from :
8/1 /95
3/1 /00
8/30/04
7/24/06
4/1 4/08
Extortion (Penal Code § 581, et seq.)
A criminal violation that is substantially similar in nature to any of the foregoing crimes against property.

Crimes involvinq Controlled Substances
Any crime described in the California Uniform Controlled Substance Act (division 10, commencing with section 11350), except where consideration of such conviction for employment purposes is prohibited or otherwise limited by law per Labor Code section 432.8. Employers are prohibited from considering marijuana related convictions which are more than two (2) years old. Specifically, agencies may not consider marijuana related convictions for violations of subdivision (b) or (c) of section 11357 of the Health and Safety Code or a statutory predecessor thereof, or subdivision (c) of section 11360 of the Health and Safety Code, or sections 11364, 11365, or 11550 as related to marijuana prior to January 1, 1976, or a statutory predecessor thereof.

Miscellaneous Crimes
Perjury (Penal Code § 118, et seq.)
Falsifying/Tamperingwith Evidence (Penal Code §§ 132-135.5) Falsifying public documents (Penal Code§ 112, etseq.) Bribery (Penal Code §§ 68, 92, et seq., 165)
Money larderirg (Penal Code§ 186.9, et seq.)
Bookmaking (Penal Code§ 337a)
Misappropriation of public funds (Penal Code § 424, et seq.) A criminal violation that is substantially similar in nature to any of the foregoing miscellaneous crimes.
2022 YMCA OF SAN JOAQUIN AQUATICS FACILITIES AGREEMENT

Exhibit 1
77 EXHIBIT 4:

Signature of Compliance for HR 40
Operator confirms that all employees and volunteers who are working or volunteering at any City pool or park for all activities (swimming, seamless summer food program, summer camp, and swim team) are in compliance with City of Stockton HR40 guidelines about fingerprinting and disqualifying criminal convictions. This Compliance is due annually before opening day of Aquatic Facilities. Any addition of staff after that date will require a signature page by Operator provided to City the week of new hire.

SIGNATURE LINE
2022 YMCA OF SAN JOAQUIN AQUATICS FACILITIES AGREEMENT

Exhibit 1
78 EXHIBIT 5:

FACILITIES INVENTORY

CITY INVENTORY

1. Signage
Operational Hours (soff sign)
National Fire Protection Agency (NFPA) Sign
Sign- Emergency Numbers
Sign- Keep Closed
Sign- diarrhea
Sign- CPR
Sign- Pool Rules
Sign- Pool Capacity

2. Life Saving Equipment
Life Ring
Rope-length
Rescue Pole-length
Backboard and head immobilizer

3. Equipment
Telephone
Umbrella-Stands
Chairs
'l O-person first aid kit
Pool Binder
Water hose
CERS binder and "station"
Emergency Spill pack
Personal Protection Equipment (PPE) (apron, neoprene gloves, Full face shield) Operator EQUIPMENT

1. Equipment
Buoys- x per site

2. Supplies
Replacement supplies for first aid kit
Cleaning supplies, hand soap, toilet paper, garbage bags, paper towels and janitorial supplies
2022 YMCA OF SAN JOAQUIN AQUATICS FACILITIES AGREEMENT

Exhibit 1
79 EXHIBIT 6
San Joaquin County Health Department Notice
Title 22 CCR Changes Effective Januaiy 1, 2015
Item 1: Pool Chemistry Requirements
Free Chlorine Residual
parts per million (ppm)
Bromine
Residual
(ppm) pH
Combined
Chlorine
(ppm)
Without
Cyanuric
Acid
With
Cyanuric
Acid
Min Max Min Max Min Max
Public Pools
All public pools
(excluding spas,
wading pools, and
spray grounds)
NEW
01/01/'15 I.O 10.0 2.0 "10.0 2.0 7.2-7.8
I

0.0 - 0.4
OLD
Before
01/01/15
1 .0 1 .5 i N/A N/A 7.2-8.0 N/A
Public Spas, Wading
Pools, and Spray
Grounds
NEW
01/01/15 3.0 10.0 3.0 10,0 4.0 7.2-7.8 0.0 - 0.4
OLD
Before
01/01/15
1 .0 1 .5 N/A N/A 7.2-8.0 N/A
I
Item 2: Critical Closure Violations
VIOLATION DESCRIPTION: CHANGES ARE BOLDED
I Failure to maintain clean pool water and clear pool water requirements Bottom of pool, at the maximum depth, is not clearly visible from the deck 2 Inadequate disinfection
Failure to meet microbiological (well-systems) or chemical water-quality standards 3 Improper pH
4 Presence of inhalation hazards
5 Missing or broken suction outlet covers
6 Missing or broken pool enclosures, including fencing and gates 7 Hazards to pool users
8 Any other violation of these regulations identified by the enforcing agent (e.g., lack of safety equipment)
2022 YMCA OF SAN JOAQUIN AQUATICS FACILITIES AGREEMENT

Exhibit 1
80 Item 3: Operational Changes
Variation in Rate Flow:

Must not fall below of the rate required by the system. (Example: If your calculated flow rate should be 65 gallons per minute, your water flowing through the pump system shall be at least 75% of 65, which would be approximately 49 gallons per minute.) Previous code allowed for a flow rate reduction of 65%.

Response to incidents is now required by Code:

Including fecal, vomit, blood contamination, and near drowning/drowning incidents. (See page 4). Previously this procedure was recommendation only.

For all pools exceeding 75 feet in length or 50 feet in width to provide a rescue pole and life ring that is available on at least 2 opposing sides of the pool at centralized locations.
(Previously only one set of equipment was required.) Additional Record Keepinq Requirements
The concentration of free chlorine/bromine and pH levels are still required to be recorded on a daily basis" and cyanuric acid level (if used) on a monthly basis.

Records must be maintained for two years. In addition to free chlorine/bromine and pH levels, the following records must be kept.

Daily Records":
* Heated pools water temperature
* Equipment readings
a Calibrations
* Corrective actions taken
As Required:
* Combined Chlorine
* Maintenance
* Maintenance
Procedures
* Repairs
2022 YMCA OF SAN JOAQUIN AQUATICS FACILITIES AGREEMENT

Exhibit 1
81 Item 4: Required Items for Pools with Lifeguards:
* A Red Cross I O-Person Industrial First Aid Kit or equivalent
* An operating telephone
* A Backboard with immobilizer
Item 5: Incident Report Log
Operator must maintain and report to City for fecal, vomit, blood contamination, near drowning, or drowning incidents.

Item 6: Lifeguard Health: Reporting Requirement
If two or more lifeguards or pool users at a public pool report within 5 days of each other to the pool operator that they have had diarrhea, the pool operator shall report this to the enforcing agency.
2022 YMCA OF SAN JOAQUIN AQUATICS FACILITIES AGREEMENT

Exhibit 1
82 EXHIBIT 7:

San Joaquin Count5r Health Department Notice
Recommendations for the Management of Fecal Accidents at Public Pools

1. When a fecal accident occurs, close the pool(s), and instruct all pool users to exit the pool(s) immediately. Do not allow anyone to enter the contaminated pool(s) until all the following steps are completed.

2. Remove as much of the fecal material as possible using a net or scoop and dispose of it in a sanitary manner. Clean and disinfect the net or scoop (e.g., affer cleaning, leave the net or scoop immersed in the pool during the disinfection period). Vacuuming stool from the pool is not recommended. If the pool is vacuumed, waste should be directed to a sanitary sewer and not through the filtration system.

3. A. If the fecal accident involves a "formed stool" (solid, not liquid), raise the free available chlorine concentration to 2 mg/L (parts per million) and maintain the pH between 7.2 -

7.5 for at least 25 minutes. If a free available chlorine concentration of 3 mg/L is present, the time can be reduced to 19 minutes.

B. If the fecal accident involves "diarrhea or a loose stool," raise the free available chlorine concentration to 20 mg/L and maintain the pH between 7.2 and 7.5 for at least 8 hours.

This is equivalent to a CT value of 9,600. The CT value is the concentration of chlorine in mg/L multiplied by the time in minutes. In this case, a 20 mg/L concentration of chlorine maintained in a pool for 8 hours or 480 minutes will result in a CT value of 9,600 (480 minutes X 20 mg/L). Any combination of chlorine concentration and time resulting in a CT value of 9,600 or greater can be used to achieve disinfection.

For fecal accidents involving "diarrhea or loose stools," the filter should be thoroughly backwashed to a sanitary sewer after the CT value has been reached and before the pool is reopened.

4. During the entire treatment period, ensure that the pH is maintained between 7.2 and 7.5.

The pH may be affected if additional chlorine is added to the pool.

5. Ensure that the filtration system is operating, and the proper free available chlorine concentration is maintained throughout the treatment period. Ensure free available chlorine concentrations are found throughout all areas of the pool or co-circulating pools by sampling in at least three widely spaced locations away from return water inlets.

6. The pool may be reopened after the required time/concentration or CT value has been achieved and the free available chlorine residual is below 5.0 mg/L.

7. If the pool is a low volume pool, such as a spa pool or wading pool, the pool can be drained. he pools should be refilled, the water balanced, and the proper time/concentration 2022 YMCA OF SAN JOAQUIN AQUATICS FACILITIES AGREEMENT

Exhibit 1
83 or CT value achieved before being reopened.

8. Establish a fecal accident log. Document each fecal accident by recording the following information:
a. Date
b. Time of the event
c. Formed stool or diarrhea
d. Free available chlorine concentration and pH at the time of observation of the event e. Free available chlorine and pH before reopening the pool f. Contact time
g. Procedures followed to respond to the fecal accident, including the process used to increase the free chlorine residual if necessary

9. In the event of contamination with vomitus in a pool, the procedures for a "formed stool" (3A above) should be followed.

Notes:

Fecal accident pool closure procedures are based on recommendations by the Centers for Disease Control and Prevention.

All contact times assume a water temperature of 25oC (77oF).

Theoretical Pool Closure Times for 99.9% Inactivation of Giardia Cysts by Free Available Chlorine, pH7.5, 25oC derived from the EPA's Disinfection Profiling and Benchmarking Guidance Manual.

The "short pool closure time" is the chlorine concentration/contact time theoretically required to inactivate Giardia cysts. The "long pool closure time" is the chlorine concentration/contact time theoretically required to inactivate Cryptosporidium oocysts.

Non-chlorine disinfectants are not addressed and should not be used because there is limited pathogen inactivation data available for these compounds.

The impact of chlorine stabilizers such as chlorinated isocyanurates on pathogen inactivation and disinfection measurement is unclear and warrants further investigation. Increased contact time may be desirable.

Many conventional test kits cannot measure free available chlorine in a range that includes 20 mg/L. Use chlorine test strips, kits that can measure in this range or make dilutions using a standard DPD (N, N-diethyl-p-phenylenediamine) test kit and chlorine- free water. High levels of chlorine may damage pool equipment. Exercise caution or consult with an experienced aquatic professional
2022 YMCA OF SAN JOAQUIN AQUATICS FACILITIES AGREEMENT

Exhibit 1
84 EXHIBIT 8:

Compensation Schedule
Total Annual Compensation for.

Year I through Year 3 of Term of Agreement
(2022, 2023, 2024 Swim Seasons)
_POOL COMPENSATION AMOUNT
BROOKING PARK POOL $15,500
OAK PARK POOL $40,000
SOUSA PARK POOL $39,500
HOLIDAY PARK POOL $40,000
TOT AL COMPENSATION $135,000
2022 YMCA OF SAN JOAQUIN AQUATICS FACILITIES AGREEMENT

Exhibit 1
85 EXHtBIT 9:

HR 15, Harassment and Discrimination Policy

CITY OF STOCKTON, CALIFORNIA

CITY MANAGER ADMINISTRATIVE DIRECTIVE
SubJect:

DISCRIMINATION AND
HARASSn/IENT POLICY
Directive No. HR-15 Page No. I Ofl4
Effective Date:
6/1/2015
Revlseid From:
7/27/09
4/6/09
3M /2010
(see below)
PER-015 (Sexual Harassmenl In IFe Wo+kplace) teviaed from 1(V21/94, 5{1/95, 1{1{98 PER037 (;3exual Harassmeni Invesllgallve Proeedures) revised from 2/15/93

PURPOSE
The purpose of this policy is to reaffirm the City's commitment to demonstrating respect for all individuals by strictly prohibiting discrimination and harassment, including sexual harassment in the workplace. This policy defines prohibited behavior and conduct, and sets forth a procedure for reporting, investigating and resolving complaints of discrii'nination, harassment, in the workplace, including retaliation and hostile work environment.

POLICY
A. The City of Stockton prohibits anyform ofdiscrimination and/orharassment of any person based on race, religious creed, color, national origin, ancestry, military and veterans status, physical or mental disability, medical condition, genetic characteristics or information, denial of family and medical care leave, marital status, sexual orientation, sex (including gender, gender identity, gender expression, transgender, pregnancy, childbirth and breastfeeding), political affiliation, age (40 and older), concerted labor activity, or any other category or attribute consistent with state orfederallaw.

All such discrimination and harassment is unlawful and shall not be tolerated. In addition, under the federal Affordable Care Act (ACA), the City of Stockton prohibits discrimination and/or harassment, or retaliation against an employee who obtains coverage, receives a tax credit or subsidy through the Health Care "Market Place" or "Exchange."
B. Itisanunlawfulemploymentpracticetodiscriminateagainstortoharassan unpaid intern or volunteer on the basis of any legally protected classification unless an exception applies, such as a bona fidei occupational qualification.

C. TheCitywillneithertoleratenorcondonediscriminationand/orharassment of employees by managers, supervisors, co-workers, or non-employees with whom City employees have a business service, or professional relationship.

D. All City employees and non-employees share a responsibility to assist in 2022 YMCA OF SAN JOAQUIN AQUATICS FACILITIES AGREEMENT

Exhibit 1
86 CITY OF STOCKTON, CALIFORNIA

CITY MANAGER ADMINISTRATIVE DIRECTIVE
Subject:

DISCRIMINATION AND

HARASSMENT POLICY
Directive No. HR-'15 Page No. 2 0fl4
Effectlve Date:
5/1/2015
Revised From:
7/27/09
4/6/09
3/1/2010
(see below)
PER-015 (Sexual Harassmenl In the Woikplace) revised from 10/21/94, 5/1/95, 1/1198 PER-037 (:3exual Harassmenl Invesllgallve Piocedures) revlsed from 2/151gs maintaining an employment environment free of discrimination and harassment. ThispolicyappliestoallaspectsofCityemployment,including, but not limited to, hiring, reassignment, placement, promotion, employment action, disciplinary action, layoff, reemployment, transfer, leave of absence, compensation and benefits, training; or other terms of treatment of that person in an unpaid internship, or another limited duration program to provide unpaid work experience for that person, or the harassment of an unpaid intern or volunteer.

All allegations of discrimination and/or harassment shall be investigated immediately by the City, in accordance with this policy. If it Is determined that any prohibited activity has occurred, remedial action shall be taken. Such action may include discipline up to and including discharge. In addition, under applicable law, individual supervisors and employees may be subject to personal liability and/or punitive damages in any litigation arising as a result of such conduct.

F. All new hires shall attend harassment awareness training, and supervisors and managers shall attend harassment awareness and prevention training for supervisors every two years.

The City of Stockton prohibits retaliation against any employee or non- employee by another employee, non-employee, supervisor, or manager for reporting, filing, testifying, assisting or participating in any manner in any investigation, proceedinq, or hearing conducted by the employeror a federal or state enforcement agency.

H. This policy applies to all officials, employees, volunteers, unpaid interns, agents, or contractors of the City.

This policy shall be administered by the Director of Human Resources. 2022 YMCA OF SAN JOAQUIN AQUATICS FACILITIES AGREEMENT

Exhibit 1
87 CITY OF STOCKTON, CALIFORNIA

CITY MANAGER ADMINISTRATIVE DIRECTIVE
SubJect:

DISCRIMINATION AND

HARASSMENT POLICY
Directive No. HRol5 Page No. 3 0fl4
Effective Date:
5/1/2015
Revised From:
7/27/09
4/8/09
3/1/2010
(see below)
PER-015 (Sexual harassment In the Workplace) ievlsed from 10{21/94, !V1/96, '1/1/98 PER-037 (-3exual Hatassmen) Invesligaflve Pto+:edutes) tevlsed from 2/'1!V93 DEFINITION AND EXAMPLES OF DISCRIMINATION AND HARA8SMENT "Discrimination," as used in this policy, is any action, behavior, practice, or process that is intended to deny, or results in the denial of, employment rights, privileges, or benefits because of a person's race, religious creed, color, national origin, ancestry, military and veterans status, physical or mental disability, medical condition, genetic characteristics or information, denial of family and medical care leave, marital status, sexual orientation sex (including gender, gender identity, gender expression, transgender, pregnancy, childbirth and breastfeeding), political affiliation, age (40 and older), concerted labor activity, or any other prohibition identified under state and federal law. The following are examples of conduct that may constitute discrimination:

1. Soliciting applications from a source where all or most of potential workers are of the same race or color.

2. Considering a person's gender as the basis for differences in pay, work assignments, performance evaluations, training, discipline, or any other area of employment; and

3. Questioning a job applicant about the existence, nature and severity of a disability.
"Harassment," as used in this policy, consists of any conduct affecting another person because of his or her race, religious creed, color, nationa origin, ancestry, military and veterans status, physical or mental disability, medical condition, genetic characteristics or information, denial of family and medical care leave, marital status, sexual orientation, sex (including gender, gender identity, gender expression, transgender, pregnancy, childbirth and breastfeeding), political affiliation, age (40 and older), concerted labor activity, or any other category or attribute identified under state and federal law when such conduct has the purpose or the effect of: (1) creating an intimidating, hostile or offensive work environment; (2) unreasonably interfering with the employee's or non-employee's work performance; or (3) 2022 YMCA OF SAN JOAQUIN AQUATICS FACILITIES AGREEMENT

Exhibit 1
88 CITY OF STOCKTON, CALIFORNIA

CITY MANAGER ADMINISTRATIVE DIRECTIVE
Subject:

DISCRIMINATION AND

HARASSMENT POLICY
Directive No. HR'l5 Page No. 4 0fl4
Effective Date:
5/1/2016
Revised From:
7/27 /09
4/6/09
3/1/2010
(see below)
PER-015 (Sexual ? arassmenl In the Workplece) revised from I O{2U94. 5/1/95, UU98 PER-037 (3exual Harassmenl Invesllgatlve Procedures) revised lrom 2/15193 otherwise adversely affecting an employee's or non-employee's employment opportunities.

Harassment may take many forms, including, but notlimited to, the following examples:

Verbal Harassment: Epithets, derogatory and offensive comments or slurs based on race, religion, color, national origin, ancestry, physical or mental disability, marital status, pregnancy, medical condition, gender, sexual orientation, political affiliation, age, or any other category or attribute identified under state and federal law.

Physical Harassment: Assault, impeding or blocking movement that results in the physical interference with normal work or movement on the basis of race, religion, color, national origin, ancestry, physical or mental disability, marital status, pregnancy, medical condition, gender, sexual orientation, political affiliation, age, or any other category or attribute identified under state and federal law.

Visual Harassment: The displaying of posters, photography, notices, bulletins, e-mails, cartoons or drawings with derogatory and offensive content based on race, religion, color, national origin, ancestry, physical or mental disability, marital status, pregnancy, medical condition, gender, sexual orientation, political affiliation, age, or any other category or attribute identified under state and federal law.

C. "Sexual harassment," as used in this policy, is a subcategory of harassment, and is specifically defined by law as unwanted sexual advances, requests for sexual favors or visual, verbal or physical conduct of a sexual nature when:

Submission to such conduct is made a teri'n or condition of employment; or

2. Submission to or rejection of such conduct is used as a basis for employment decisions affecting the individual; or
2022 YMCA OF SAN JOAQUIN AQUATICS FACILITIES AGREEMENT

Exhibit 1
89 CITY OF STOCKTON, CALIFORNIA

CITY MANAGER ADMINISTRATIVE DIRECTIVE
Subject:

DISCRIMINATION AND

HARASSMENT POLICY
Directive No. HR-15 Page No. 5 0f "14
Effective Date:
5/1/2015
Revised From:
7/27/09
4/8/09
3M/2010
(see below)
PER-015 (Sexual ? arassmenl In the Workplace) revised from 1 0/2'l/94, 5/1195, jll /98 PER-037 (3eXual Hatassmeni InVes(Igatlve PtOaedu(0!i) fflVlsed from 2/'15/93 Such conduct has the purpose or effect of unreasonably interfering with an employee's or non-employee's work performance or creating an intimidating, hostile or offensive working environment because of the persistent, severe or pervasive nature of the conduct.

Examples of Sexual Harassment include, but are not limited to the following:
a Unwelcome sexual overtures or propositions.
b. Offering employment benefits or status in exchange for sexual favors.

C. Making or tlireatening retaliation after a negative response to sexual advances.
d. Visual conduct such as leering, making sexual gestures, displaying sexually suggestive objects or pictures, cartoons, calendars or posters.
e. Verbal conduct such as using epithets or slurs, telling sexually explicit jokes, or making derogatory or suggestive comments about a person's body or dress.
f. Written communications of a sexual nature distributed in hard copy, soft copy or via a computer network.
g Verbal abuse of a sexual nature, graphic verbal commentary about an individual's body, sexually degrading words to describe an individual, suggestive or obscene letters, notes or invitations.

Physical conduct such as touching, assaulting, impeding or blocking movements.
2022 YMCA OF SAN JOAQUIN AQUATICS FACILITIES AGREEMENT

Exhibit 1
90 CITY OF STOCKTON, CALIFORNIA

CITY MANAGER ADMINISTRATIVE DIRECTIVE
Subject:

DISCRIMINATION AND

HARASSMENT POLICY
Directive No. HR-15 Page No. 6 0fl4
Effective Date:
5/1/2016
Revised From:
7/27/09
4/6/09
3/1/2010
(see below)
PER-015 (8exual Harassment In trie WOTkplace) (eVISed rlOm 10121194, 511/95, 1/1/98 PER-037 (:3exual Harassmenl Invsstlgallve Proydures) revi!led from 2/15/93 Retaliation for making harassment reports or threatening to report harassment.

D. Affordable Care Act (ACA) Anti-Retaliation
Pursuant to section §1558 of the Affordable Care Act, the City prohibits discrimination or retaliation towards any employee who:

1. Receives a health insurance tax credit or subsidy through the Health Care "Marketplace" or "Exchange", by which can trigger a penalty payable by the employer;

2. Reports potential violations of protections afforded under Title I of the Act, which provides guaranteed availability protections among other things;

3. Testifies in a proceeding concerning such violation;

4. ASSiStS or participates in a proceeding concerning a violation; or

5. Objects to, or refuses to participate in, any activity, policy, practice, or assigned task that the employee reasonably believes to be in violation of any provision of the Title I of the Act.

An employee who believes that he or she has been discharged or otherwise discriminated againstin violation ofsection §1558 oftheAffordableCareAct may seek reliefin accordance with the procedures, notifications, burdens of proof, remedies, and statutes oflimitation set forth in section 2087(b) of title 15, United States Code.

REPORTING AND COMPLAINT PROCEDURES
Immediate Action Required
The City's reporting and complaint procedures provide for an immediate, thorough and objective investigation of discrimination or harassment claims, appropriate disciplinary action taken against any person found to have engaged in prohibited behavior, and appropriate alternative remedies to any 2022 YMCA OF SAN JOAQUIN AQUATICS FACILITIES AGREEMENT

Exhibit 1
91 CITY OF STOCKTON, CALIFORNIA

CITY MANAGER ADMINISTRATIVE DIRECTIVE
Subject:

DISCRIMINATION AND

HARASSMENT POLICY
[)lrectlve No. HR-15 Page No. 7 0fl4
Effectlve Date:
5/1/2015
Revised From:
7/27/09
4/6/09
3/1/2010
(see below)
PER-015 (Sexual Parassment In the Workplace) revlsed from TO/21/94, 5/1/95, 1/1/98 PER-037 (:3exual Harassmenl Invesllgalive Proiiedures) revlsed from :j'l5/93 employee or non-employee subject to discrimination or harassment. To accomplish this, such incidents must be reported immediately to a supervisor or manager.

Employee's and Non-Employee's Responsibilities when Subiected to Discrimination and/or Harassment
Employees or non-employees who believe they have been subjected to discrimination or harassment, or are aware of discrimination or harassment agalnst others, shall report the situation immediately to his/her supervisor or manager, except as specified in subsection (b), below. Employees and non- employees shall report any such incidents occurring in the workplace, whether committed by coworkers, supervisors or managers, or third persons doing business with the City, such as customers or vendors, or other non-emp!oyees. If comfortable doing so, an employee or non-employee who has a complaint of discrimination or harassment is encouraged to directly inform the person(s) engaging in the behaviorthat such conduct is offensive and insist the behavior to stop.

Employees and non-employees must immediately contact a supervisor or manager to register a complaint ofdiscrimination or harassment, unless that supervisor or manager is the individual engaging in the unwanted behavior. In that case, the employee or non-employee may contact someone at the next supervisory level. If the employee or non-employee feels uncomfortable dealing directly with his or her immediate supervisor or manager, he or she may contact the department head, or the Director of Human Resources (or either of their designees) to register a complaint of discrimination or harassment.

Employees and non-employees may file a formal complaint of harassment or discrimination with their department head or 2022 YMCA OF SAN JOAQUIN AQUATICS FACILITIES AGREEMENT

Exhibit 1
92 CITY OF 8TOCKTON, CALIFORNIA
CITY MANAGER ADMINISTRATIVE DIRECTIVE:

Subject:

DISCRIMINATION AND

HARASSMENT POLICY
Dlrectlve No. HR-15 Page No. 8 0fl4
Effective Date:
5/1/2016
Revlsed From:
7/27/09
4/6/09
3/1/2010
(see below)
PER015 (Sexual Parassmenl In the Workplace) revlsed from 10/21/94, 5/'1/95, '1/1/98 PER-037 (.3exual Hatassmenl Invesllgallve Proi:edtxes) revlsed Tiom 2/'15/93 witli Human Resources. To assist the City in conducting a thorough investigation, complaints shal! be submitted in writinq and shall include specific details of the incident(s), the names of the individuals involved, the names of any witnesses, and any documentary evidence (notes, pictures, cartoons, etc.) that will corroborate the allegations.

Employees and non-employees shall immediately report any retaliation to a supervisor, manager, department head or Director of Human Resources (or designee). All retaliation complaints shall be immediately, objectively and thoroughiy investigated in accordance with the investigation procedures.

If a report of retaliation is substantiated, appropriate disciplinary action, up to and including discharge shall be taken.

Supervisor's or Manaqer's Responsibilities to Eliminate Discrimination and/or Harassment
A supervisor or manager is responsible for enforcing the City's discrimination and harassment policy. Supervisors or managers must ensure that all employees and non-employees are aware of the City's policy through open discussion of the policy at staff meetings and by posting the policy in a conspicuous location accessible to all staff members.

A supervisor or manager shall be cognizant of employees' and non-employees' behavior and shall not permit any employee or non-employee binder their supervision to be subjected to or engage in any conduct prohibited by this policy.

A supervisor or manager who observes conduct prohibited by this policy shall immediately direct the employee or non- employee to cease the conduct.
2022 YMCA OF SAN JOAQUIN AQUATICS FACILITIES AGREEMENT

Exhibit 1
93 CITY OF STOCKTON, CALIFORNIA

CITY MANAGER ADMINISTRATIVE DIRECTIVE
Subject:

DISCRIMINATION AND

HARASSMENT POLICY
Directive No. HR-I 5 Page No. 9 of 14
Effective Date:
6M/2015
Revised From:
7/27/09
4/6/09
3/i/2010
(see below)
PER-015 (SeXtl81 t atas81neni In 11Te WOtkpla(J3) TeVISed lLOm 1 0121/94, 5/U95, 1/1/98 PER-037 (:3exual Haiassment Investlgatlve Procedures) revlsed lrom 211 5/93 d. A supervisor or manager who receives a complaint of prohibited conduct is required to take the complaint seriously, and report the matter immediately to the department head be supportive of the complainant; ensure there is no retaliation against the complainant conduct an internal fact-finding review into the allegations; obtain as much detailed information as possible; thoroughly document the findings; communicate in written form to the parties the resolution of the complaint; and report to and consult with the Human Resources Department promptly, without delay.

Confidentiality. The City will make every effort to protect the privacy and confidentiality of all parties involved, as well as any information and/or documentation obtained, to the extent possible consistent with a thorough investigation.

Penalty for Non-Compliance. The City shall take disciplinary action, up to and including discharge, against any supervisor or manager who fails in his/her responsibility to take immediate action in response to an employee's or non-employee's complaint of discrimination or harassment. Further, such disciplinary action shall be taken against a supervisor or manager who fails to stop discriminatory or harassing conduct committed in his/her presence or to stop such conduct about which the supervisor or manager has knowledge.

INVESTIGATION PROCEDURES
Determination of Responsibility for Investiqation
If a formal complaint is filed with the department head or the Director of Human Resources (or either of their designees), the department head and the Directorof Human Resources shall consultwith one anotherto determine whether the department or Human Resources shall conduct the fact-finding investigation into the allegations. Either the department head or the Director of Human Resources (or either of their deslgnees), depending on who is 2022 YMCA OF SAN JOAQUIN AQUATICS FACILITIES AGREEMENT

Exhibit 1
94 CITY OF STOCKTON, CALIFORNIA

CITY MANAGER ADMINISTRATIVE DIRECTIVE
Subject:

DISCRIMINATION AND

HARASSMENT POLICY
Directive No. HR-15 PageNo.'l00fl4
Effective Date:
5/1/2015
Revised From:
7/27/09
4/6/09
3/1/2010
(see below)
PER.0'l5 (Sexual laiassment In the Workplace) revlsed from 10j21/94, 5{U95, 1/1/98 PER037 (3exual Harassmenl Investlgallve Proiiedures) revlsed from 2/15/93 responsible for the investigation, shall issue written notification to the complainant and alleged harasser(s). The notification shall specify the nature of the complaint, and inform the parties that an investigation into the allegations of discrimination and/or harassment shall be conducted.

Investiqative Guidelines
The investigation shall include the following steps taken in the order best suited to the circumstances:

1. Identify and preserve the evidence.

2. Confirm the name and position of the complainant. Interview the complainant.

3. Allow the complainant the opportunity to place the complaint in writing.

4. Obtain the identity of the alleged harasser(s).

5. Obtain as many details as possible regarding the incident(s) that prompted the complaint, including the number of occurrences, dates, times, locations, and witnesses (if applicable).

6. Ascertain how the complainant felt about the alleged incident when it occurred; complainant's response(s) to the alleged behavior; and witness statements (if applicable).

7. Ascertain if any threats or promises were made in connection with the alleged harassment.

8. Ascertainifthecomplainantknowsoforsuspectsthatthereareother victims of harassment by the same person(s).

9. Ascertain whether the complainant has spoken to anyone, especially 2022 YMCA OF SAN JOAQUIN AQUATICS FACILITIES AGREEMENT

Exhibit 1
95 CITY OF STOCKTON, CALIFORNIA
CITY MANAGER ADMINISTRATIVE DIRECTIVE:

Subject:

DISCRIMINATION AND

HARASSMENT POLICY
Dlrectlve No. HR-I 5 PageNo.l"lOfl4
Effective Date:
5/U20'15
Revised From:
7/27/09
4/6/09
3/1 /201 0
(see below)
PER-015 (8exual ? arassmenl In the Workplace) revised Trom 1 0{21/94, 5/1/95, lh/98 PER-037 (3exual Harassment Investlgatlve Procedures) teVISed Tram 2115/93 supervisors, about the harassment.

10. Ascertain what resolution would be acceptable to the complainant.

I 1. Interview the alleged harasser to get his or her side of the story, including any possible motivation for a false al!egation.

12. Interviewwitnesseswhowereidentifiedbythecomplainantregarding the alleged harasser or other persons identified during the investigation
"I 3. Interview witnesses who were identified by the alleged harasser or other persons identified during the investigation.
'14. Adviseallparticipantsthattheinvestigationis"confidential"andnotto engage in any retaliatory conduct, as such conduct is subject to disciplinary action up to and including discharge. Confidentiality will be maintained to the extent possible. An individual who is interviewed during the course of an investigation is prohibited from discussing the substance of the interview, except as otherwise directed by a supervisor or the Director of Human Resources. Any individual who discusses the content of an investigatory interview will be subJect to discipline or other appropriate sanction.

15. Conduct follow-up interviews, if warranted.

16. Prepare report of findings and discuss with management and designated legal staff.

Vl, RESPONDING TO THE COMPLAINT
A. Following the completion of the fact-finding investigation, either the department head or the [2)irector of Human Resources (or either of their designees), depending on who is responsible for the investigation, shal 2022 YMCA OF SAN JOAQUIN AQU ATICS FACILITIES AGREEMENT

Exhibit 1
96 CITY OF STOCKTON, CALIFORNIA

CITY MANAGER ADMINISTRATIVE DIRECTIVE
Subject:

DISCRIMINATION AND

HARASSMENT POLICY
Directive No. HR-'15 Page No. 12 0fl4
Effective Date:
5/"1/2015
Revised From:
7/27/09
4/6/09
3/1/2010
(see below)
PER-O'l5 (Sexual hatassmenl In the Wotkplace) revlsed from TO/21/94, 6/U95, 111/98 PER-037 (;3eXual Harassmentlnvesllga)lVe PToi;edll+e8) n!lVlsed from 2{15/93 make a report of findings, along with a recommendation regarding the appropriate remedial action to be taken, if warranted. The recommendation shall be made after reviewing the findings of the investigation, giving consideration to all factual information, the nature of the alleged conduct, and the totality of the circumstances. If the investigation was conducted by the Director of Human Resources, or designee, the Director, or designee, shall confer with the affected department head and both shall concur on the remedial action to be taken, if any. If the investigation was conducted by the department head, the department head shall confer with the Director of Human Resources prior to making the report of findings and both shall concur on the remedial action to be taken, if any.

B. lfeitherthedepartmentheadortheDirectorofHumanResourcesdoesnot concur with the findings and recommendation of the other, the City Attorney (or designee) shall review and resolve the matter in dispute.

Report of findings and recommendation shall be treated as a confidentia! document and no other distribution shall be made without first consulting with the City Attorney's Office. A completed investigation report will not be disclosed, except as it is deemed necessary to support a disciplinary action, to take remedial action, to defend the City in adversarial proceedings, or to comply with the law or court order.

Either the department head or the Director of Human Resources (or either of their designees), depending on who is responsible for the investigation shall provide a written response to the complainant and the person alleged to have committed the misconduct, discrimination and/or harassment. The response shall include a copy of the City's discrimination and harassment policy and a memorandum indicating the City's determination as to whether the complaint is:

1. Unsustained: The investigation failed to disclose sufficient evidence to substantiate the allegation(s).

2. Unfounded: The investigation proved that the act(s) or omission(s) 2022 YMCA OF SAN JOAQUIN AQUATICS FACILITIES AGREEMENT

Exhibit 1
97 CITY OF STOCKTON, CALIFORNIA

CITY MANAGER ADMINISTRATIVE DIRECTIVE
Subject:

DISCRIM}NATION AND

HARASSMENT POLICY
Directive No. HR-15 PageNo."l30fl4
Effective Date:
5/"1/2015
Revised From:
7/27/09
4/6/09
. 3/"1/2010
(see below)
PER-O'l5 (Sexual harassment In the Workplace) revised from 10/2'l/94, 5/1/95, 1/1/98 PER-037 (Sexual Harassmenl Invesilgatlve Ptouidures) revlsed fitim 2/'i5/93 complained of did not occur. The finding also applies when the individual employee(s) named in the complaint were not involved in the act(s) or omission(s) alleged.

3. Sustained: The investigation disclosed sufficient evidence to substantiate the allegation(s) made in the complaint; appropriate action will be taken.

E. Details regarding any specific fact-findings or disciplinary action to be taken will not be communicated to the complainant. The City Attorney shall review the response for legal sufficiency before dissemination.

F. The City shall close and retain the investigation file, in accordance with applicable laws, regulations, and City policy regarding retention of City records.

Vll. DISCIPLINE
Disciplinaiy action imposed as a result of any investigation conducted pursuant to this policy shall be commensurate with the severity of the offense, up to and including discharge, even for a first offense.

Vlll. ALTERNATIVE REMEDIES
tf upon exhaustirig all internal remedies to file, investigate, and respond to a charges of discrimination/harassment, pursuant to title Vll ofthe Federal Civil Rights Act of 1964 (42 u.s.c §§ 2000e et seq.), any person has a right to file a charge of discrimination/harassment with the Equal Employment Opportunity Commission ("EEOC"). Inaddition,pursuanttotheCaliforniaFairEmploymentandHousingAct (Gov. Code §§ 12900 - 12996.) a person may also file a complaint of discrimination/harassment with the California Department of Fair Employment and Housing ("DFEH"). Employees or non-employees who believe that they have been subJected to discrimination/harassment may file a complaint with either of these 2022 YMCA OF SAN JOAQUIN AQUATICS FACILITIES AGREEMENT

Exhibit 1
98 CITY OF STOCKTON, CALIFORNIA

CITY MANAGER ADMINISTRATIVE DIRECTIVE
Subject:

DISCRIMINATION AND

HARASSMENT POLICY
Directive No. HR-15 pBgeNo.l40fl4
Effective Date:

I 6/1/2015
Revised From:
7/27/09
4/6/09
3/1/20tO
(see below)
PER-015 (Sexual Patassmenl In the Workplace) revlsed from1CV;?1/94, 5/1/95, 1/1/9B PER-037 (.3exual Harassmsnl Investlgaflve Prot:edures) revlsed From 2/15/93 agencies. Both the EEOC and DFEH serve as neutral fact-finders and attempt to assist parties in resolving disputes voluntarily.

IX. COMMUNICATION OF POLICY
This policy shall be provided to all managers, supervisors, employees, volunteers, unpaid interns, agents or contractors of the City and shall be posted in the appropriate places. All emptoyees shall participate in City approved harassment awareness training as directed by management or Human Resources; and all supervisors, as required by law, shall participate in City approved interactive harassment awareness training and education sessions at least once every two years, or as otherwise specified by law.

APPROVED:

KURT O. WILSON

CITY MANAGER
::ODMAlGRPWISE1COS.PER.PERLIbrary:96180.1
2022 YMCA OF SAN JOAQUIN AQUATICS FACILITIES AGREEMENT

Exhibit 1
99 EXHIBIT 10:

Scope of Services
A. Facility Start Up Responsibilities
Operator will be responsible to:

1. Prepare and submit the Pre-season Site Evaluation and Recommendation . Once contracted, Operator will tour and review all bathhouses, pool decks, pool shells, review pump/chemical/filtration system reports and operations, vacuuming equipment/hoses, ladders, chemical feeders, pumps, monitors, fencing, pool enclosures backwash and filters, safety equipment, meet with water quality operator, and evaluate essential pool equipment and recommend the needed improvements prior to April 15, 2022. Operator will provide detailed report will be submitted to City of Stockton Recreation Division within 2 weeks of tour and evaluation. This report will ensure ample time to make repairs and improvements to successfully open facilities on time.

2. Set up each facility for swim season, completely clean interior and exterior of pool houses/ancillary buildings, scrub bathrooms, check fixtures, complete work orders, pressure wash exterior surfaces.

3. Prepare for usage all moveable equipment (tables, chairs, lounges, umbrellas. lifeguard chairs, lane lines, etc.).

4. Check phones and phone lines and schedule staff to be available for repairs if needed.

5. Pressure wash pool deck.

6. Test all pool equipment with water quality operator in April and confirm with the City everything works according to operator specifications for season.

7. Check and order (through City) replacement safety equipment per SJC Health Department requirements.

8. Schedule a walk through/ inspection with SJC Health Department, Water Quality Rep and City Rep for each pool before opening day.

9. Verify backwash and filters are in working order before opening.

10. Report facility deficiencies promptly.
2022 YMCA OF SAN JOAQUIN AQUATICS FACILITIES AGREEMENT

Exhibit 1
100

11. Responsible to manage facility keys (check in and out) according to City Policies. Operator will be charged to rekey the building if employee keys are not returned by season close deadline to be established.

12. Review and modify the CERS report for each facility as appropriate. Keep a copy of file at each pool.

B, Facility Operations - Swim Season
The Operator will be responsible for the following duties:

1. Unlock/disarm facility at opening, rearm and lock facility upon closing, and answer alarm calls off hours.

2. Complete and document a daily safety check of the entire facility.

3. Check water and chemical levels, clean filters and skimmers, vacuum pool, check systems.

4. Provide staff 30 minutes prior to opening and 30 minutes affer closing to the public to complete daily and weekly tasks.

5. Pool will be swept and vacuumed daily before public enters the pool.

6. Offices, entries, all bathrooms, all areas within fencing and premises within 25 feet of entry shall be maintained by Operator (collect and remove garbage and debris).

7. Primary cleaning of facilities will occur when the facility is closed to the public daily.

8. All outdoor areas must be swept/blown clean daily before opening.

9. Operator will maintain safety equipment and document daily check and testing.

10. Operator will maintain a copy of all work orders submitted to City. Logs and Reports will be reviewed weekly in weekly meeting. 2022 YMCA OF SAN JOAQUIN AQUATICS FACILITIES AGREEMENT

Exhibit 1
101

11. Operator will maintain a complete log and copies of all incident reports, pull outs, rescues, injuries. Specific circumstances and staff present will be documented. Serious issues will immediately be communicated with City representative.

12. Partial day closures and complete closures will be documented.

13. Operator will maintain water quality logs during open hours and immediately communicate deficiencies to water quality operator and city representative.

14. Operator will immediately notify water quality operator and city representative of repairs or water quality equipment or issues at facility.

15. Operator shall provide replacement first aid materials, janitorial supplies (trash bags, paper towels, garbage bags, soap, toilet paper, cleaners, light bulbs).
l6.City shall provide and pay for gas, electricity, water, garbage service, telephone service.

17. Water Quality Operator shall provide to operator, on behalf of City, any pool chemicals required to maintain water quality standards during open hours.

18. Operator shall provide a Management Plan, Marketing Plan, and Financial Plan for successful operator of all facilities.

19. Operator will provide operator inventory Report which is I 00% of City and Operator equipment on site.

20. Operator is granted exclusive right to sell food and merchandise at facility at sole cost and expense of operator. Concession licenses will be clearly posted. Operator must pay all taxes and report in a timely manner.

C. Staffing Responsibilities

1. Operator will designate a pool lifeguard (CPO certified) as manager for each facility. This position wi!l be responsible for the staffing, management, supervision, and operation of the facility.

2. Operator will provide lifeguard supervision for public swimming, swim lessons, swim team practices, swim meets, all organized pool activities including 2022 YMCA OF SAN JOAQUIN AQUATICS FACILITIES AGREEMENT

Exhibit 1
102
rentals and private uses. All lifeguards must have a current Lifeguard Training certificate, CPR, and First Aid certifications on file and available for viewing at facility at all times. Proof will also be provided to City before first scheduled work shift.

3. Operator shall provide and maintain reasonable and adequate staffing levels as provided to meet the I 0/20 rule and the five-minute scanning strategy to maintain operations. Operator shall maintain personnel and staff that will meet or exceed the certification standards set for the American Red Cross (or equivalent) and local or state department of public health for each particular position.

4. In all aspects, operator must maintain safe ratio of lifeguards to participants and circumstances at each pool site. A minimum of two lifeguards are required for each shift of fifty attendees or less. One (1 ) additional lifeguard is required for every additional twenty-four (24) people in attendance before the first 50 in attendance. Pool manger may count as one of the two minimum guards. Lifeguard will be responsible for the safety of the pool patrons, the safety and cleanliness of the facilities (including bathrooms).

5. Operator must provide one staff to monitor entrance, greet patrons, check/clean bathrooms hourly, collect fees and provide spot inspections of all areas of facility hourly. That person must be CPR and first aid certified.

6. Operator must include a copy of training and hiring practices for lifeguards and pool managers with proposal. Operator must document effective communication regarding training, evaluation, and disciplinary policies and procedures for lifeguards and pool managers.

7. Operator must include a copy and description of weekly skills tests and in- service training for lifeguards. Skills tests will be documented, and City staff will be present during skills tests from time to time.

8. Lifeguards must be supervised weekly, and documentation of supervision must be available for City review. A company officer or manager will be required to supervise pool managers and meet with City designated contact weekly.

9. Operator will comply with HR-40 and verify each employee has a complete background check before starting work on site. Documentation may be audited by City.
2022 YMCA OF SAN JOAQUIN AQUATICS FACILITIES AGREEMENT

Exhibit 1
103

10. Operator will post certifications from County Health Department.

11. City may designate additional rules and regulations specific to certain aquatic facilities be enforced by Operator.

12. Operator will provide a weekly summary of employees that worked at each site each week.

D. Programming

1. Operator will provide a Program Plan for each faci!ity which provides hours of operation, days of operation, type of activities each day by scheduled period (recreational/open swim, swim lessons, water aerobics, lap swim, swim team activities, water safety classes, lifeguard training, special events and private rentals). This shall be provided before May 15 of each swim season.

2. Operator shall provide weekly and monthly participation reports for actual daily use for all facilities (inclusive of swimmers and spectators) including number of rentals, schedule of programs, program fees, listing of programs offered. Statistics should show daily use, summarized in a weekly and totaled monthly.

3. Pool rentals and parties may be scheduled outside of regular public operational, programming, and swim team hours.

4. The Operator has the authority to close the facilities during inclement weather and be prepared to reopen the facility if and when the weather improves.

5. If a facility is to be closed for the day, there will be a mutual agreement by Operator and City to close the facility to the public. Operate will notify the City when closing so City can notify the public.

6. Operator shall provide the City monthly participation reports for each facility by the 1 0'h of the following month. Participation Reports shall include I 00% of the activities and count of attendees for all facilities as identified in Article

2.10. 7. Operator shall clearly provide guidance and signage regarding minor attendance, minimum swim standards, etc.
2022 YMCA OF SAN JOAQUIN AQUATICS FACILITIES AGREEMENT

Exhibit 1
104

8. If Operator plans to operate a summer camp in conjunction with the pool, a detailed staffing and program plan must show how the programs are related and demonstrate adequate supervision and support.

E. Season Closure Activities.

1. Operator shall tour the facility with City representative and water quality operator to review and inspect facility and equipment status and repairs.

2. Operator shall clean and sanitize the pool house areas, restrooms, all interior and exterior spaces, storage areas, decks, etc.

3. Operator shall neatly stack and organize supplies. Operator may keep supplies in the pool house storage area neatly for the life of the agreement, but materials and supplies lefi at termination of the agreement will become property of the City of Stockton.

4. Post-Season Closure Report. Operator shall provide a Post-Season Closure Report. The post-season site evaluation and recommendation report.

Operator, Water Quality Operator and City representative will tour and review all bathhouses, pool decks, pool shells, review pump/chemical/filtration system reports, vacuuming equipment/hoses, ladders, chemical feeders, pumps, monitors, fencing, pool enclosures backwash and filters, safety equipment, and provide essential pool equipment feedback for next season.

This Report shall be submitted 2 weeks after the tour.

5. Keys MUST be returned during final walk through at close of Agreement or at termination by each employee.

F. Health and Safety Standards

1. Operator shall maintain accident and incident reports and notify city representative immediately of any occurrence. Operator is not authorized to speak to media regarding any incident on site, and all media requests must be immediately forwarded to City Public Information Officer Connie Cochran.

2. City will supply one first aid kit per facility, and Operator must maintain supplies in accordance with local health department requirements. 2022 YMCA OF SAN JOAQUIN AQUATICS FACILITIES AGREEMENT

Exhibit 1
105

3. Operator must provide a copy of their Company safety plan which includes number of safety meetings during swim season, how offen safety inspections are performed, nature of safety orientation for new employees.

4. Operator must maintain a complete file of comments, complaints, and incidents.

Suggestions and complaints must be provided to city representative weekly.

5. Operator shall meet or exceed all local, state, and national health and safety standards and always maintain the pool enclosure in a clean and safe condition.

6. Operator will be required to participate in a complete aquatic review program by an agency such as American Red Cross, Ellis, and Associates, etc. The review must be completed by the same organization that provides the certificate. The program should be included in the proposal.

7. Operator will provide copies of pool rules, participation waivers, etc.

8. Operator will notify City about signage requirements, both mandated and optional (rules).
2022 YMCA OF SAN JOAQUIN AQUATICS FACILITIES AGREEMENT

Exhibit 1
106
EXHIBIT 11:

Swim Schedule by Aquatic Facility
This Exhibit may be adjusted according to the terms of Article 5.5 of the Agreement
Holiday Park Pool Oak Park Pool Sousa Park Pool Brooking Park Pool
Open - Labor Day
Holiday weekend
Open - Labor Day
Holiday weekend
Open - Labor Day
Holiday weekend
Open - Labor Day
Holiday weekend
5703 Kermit Lane
Stockton, CA 95207
3537 Alvarado Ave.

Stockton, CA 95204
2829 Yellowstone Ave.

Stockton, CA 95205
4505 Nugget Ave.

Stockton, CA 95207
Residents Fee:

Open Swim:
$l/person
Family Swim:
$3/Family
Non-residents:
$2/person
$5/Family
"up to 7 people
3 and under: Free
4+ years: $2/person
Family Swim:
$5/Family
*up to 7 people
3 and under: Free
4+ years: $2/person
Family Swim:
$5/Family
i *up to 7 people
3 and under: Free
4+ years: $2/person
Family Swim:
$5/Family
"up to 7 people
Open Swim Open Swim Open Swim Open Swim
Tues-Fri: 2-5 PM
Sat:1-5PM
Sun:'1-4 PM
Tues-Fri: 2-5PM
Sat-Sun: 1-6PM
Family Swim
Tues-Fri: 2-5PM
Sat-Sun: 1-6PM
Family Swim
Fri: 4-8PM
Sat: 1-5PM
Sun: 1-4PM
Family Swim: Wed & Fri: 6-8PM Wed & Fri: 6-8PM Family Swim Wed. & Fri: 6-8PM
Sat: 5-8PM
Sun: 4-8PM
Sat & Sun: 6-8PM Sat & Sun: 6-8PM Sat: 5-7:30 PM
Sun:4-7:30 PM
Swim Lessons:

Tues-Friday
Lap Swim:

Tues-Sunday
Swim Lessons:

Tues-Sat
Splash ball:

Tues & Thurs
Swim Lessons:

Tues-Sat
Splash ball:

Saturday mornings
Swim Lessons:

Tues-Sat
Water aerobics:

Tues & Thurs
Additional Programs
offered
Additional Programs
offered
Addition-al Programs
offered
Additional Programs
offered
2022 YMCA OF SAN JOAQUIN AQUATICS FACILITIES AGREEMENT

Exhibit 1
107
City of Stockton
Legislation Text
File #: 22-0145, Version: 1

ADOPT A RESOLUTION APPOINTING MAXIMILIAN CAO TO THE STOCKTON ARTS

COMMISSION

RECOMMENDATION
It is recommended that the City Council adopt a resolution to:

1. Appoint Maximilian Cao to the Stockton Arts Commission with term to commence immediately upon approval.

2. Authorize the City Manager to take whatever actions are appropriate and necessary to carry out the purpose and intent of this Resolution.

Summary
The Stockton Arts Commission (“SAC”) membership is defined by Stockton Municipal Code section

2.94.040 as a 15-member commission appointed by the Mayor with approval of the City Council for a term of four years. Maximilian Cao was first appointed to the commission on April 2, 2019, to fill an existing vacancy created by a resignation. That term expired December 31, 2020. Commissioner Cao then continued in an acting capacity, as the COVID pandemic resulted in several unfilled commission positions. On August 26, 2021, Mr. Cao applied for re-appointment to a full four-year term on the Commission. The SAC Governance/Nominating Committee reviewed Mr. Cao’s application and conducted a virtual interview on October 22, 2021. The Governance/Nominating Committee recommended Mr. Cao for re-appointment to a full term on the SAC. On December 6, 2021, the SAC approved the recommendation. If approved by Council, Mr. Cao’s term will begin immediately and expire on December 31, 2025.

DISCUSSION
Background
According to the Stockton Municipal Code section 2.94.040, Stockton Arts Commission is composed of 15 members, of which there are currently seven vacancies. Five vacancies exist due to the expiration of member terms. The SAC received letters of resignation from Commissioner Kevin Pontuti on November 23, 2020, and Commissioner Tina Dezuniga on June 15, 2021. This created two additional vacancies.

In accordance with Council Policy, Title 3 Chapter 3.02, the City Clerk’s office accepts applications continuously throughout the year. The vacancy announcement for SAC is posted on the City’s Boards, and Commissions web page, and print copies are posted on the City’s public posting boards.

On August 26, 2021, an application from Maximilian Cao was received to serve on the Stockton Arts Commission.

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File #: 22-0145, Version: 1
In accordance with City Council Policy Manual Chapter 3.02, City Council and Mayoral Appointments to Committees, Boards, and Commissions, and Resolution 2018-02-27-1110, the City Clerk forwarded the application to the SAC for consideration. The Governance/Nominating Committee interviewed the applicant on October 22, 2021, and a recommendation to re-appoint Maximilian Cao was submitted to the full Commission on December 6, 2021. The commission voted unanimously to recommend the appointment of Maximillian Cao to the Stockton Arts Commission.

Present Situation
The SAC has reviewed the application of Maximilian Cao (Attachment A) and recommends that Council approve him to be appointed to the Stockton Arts Commission for a term commencing immediately upon approval through December 31, 2026. Pursuant to Stockton Municipal Code section 2.94.040, the Mayor and City Council are responsible for appointing members to the SAC.

Upon approval, the membership of the Stockton Arts Commission will be:

Name Term
Anuit Albahar January 1, 2019 - December 31, 2022
Evai Dellafosse January 1, 2019 - December 31, 2022
Michael Oliva January 1, 2019 - December 31, 2022
Dru Hunt January 1, 2020 - December 31, 2023
Lourdes Juarigue-King January 1, 2020 - December 31, 2023 Vacant (resignation) January 1, 2020 - December 31, 2023 Vacant (resignation) January 1, 2020 - December 31, 2023 Vacant January 1, 2021 - December 31, 2024
Vacant January 1, 2021 - December 31, 2024
Vacant January 1, 2021 - December 31, 2024
Vacant January 1, 2021 - December 31, 2024
Maximilian Cao January 1, 2022 - December 31, 2025
Justin Grant January 1, 2022 - December 31, 2025
Desiree Orque January 1, 2022 - December 31, 2025
Vacant January 1, 2022 - December 31, 2025
The vacancies in 2021 - 2024 term are likely due to impacts of COVID-19. Future approved Stockton Arts Commissioners will be appointed to the longest term available, with the maximum of four years to each term.

FINANCIAL SUMMARY
Stockton Arts commission members receive no remuneration. There is no direct financial impact to the City by taking this action.

Attachment A - SAC Candidate Application (redacted)
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Email Address
First Name Last Name
Primary Phone Alternate Phone
Employer Job Title Occupation
Application for appointment and background information for City of Stockton Boards, Commissions, and Committees
Profile
Ethnicity
Gen
der
What district do you live in? *
District 3
I declare under penalty of disqualification/termination that I have been a resident at the above address for years/months?
20 The City of Stockton uses email as the preferred method of communication regarding your application. Is this acceptable to you?
Yes No
Employer Address
Are you currently serving on a City of Stockton Board, Commission, or Committee? Yes No
If yes, please list
Stockton Arts Commission
Maximilian Cao
Mobile:

Maximilian Cao

ATTACHMENT A
Submit Date: Aug 26, 2021
110
Which Boards would you like to apply for?
Arts Commission: Appointed
Question applies to Arts Commission
NOTE: This Board requires membership with one of the following groups. If none, please remove board from your application. Outside of your profession, indicate what type of Arts you are active in? Select all that apply. *
Visual Arts, including (but not limited to) the Public or Environmental Arts, Graphic Arts, Design, Drawing, Painting, Printmaking, Sculpture, Ceramics, and Art History\, Question applies to Arts Commission
Are you interested in or accomplished in fund-raising?
Yes No
Question applies to multiple boards
NOTE: This Board requires membership with one of the following groups. If none, please remove board from your application. Are you knowledgeable, have experience in, or extensive background in any of the following areas? Select all that apply. * Possess decision-making abilities
I have been a resident of Stockton for at least 3 years.

Yes No
Interests & Experiences
Please tell us about yourself and why you want to serve.

Born and raised in Stockton, I am a first generation born Vietnamese-American. I am a graphic designer, photographer, marketer, and entrepreneur. I want to be able to make a visual impact by doing what's necessary to enhance/improve Stockton visual identity.

Please state the reason you would like to be a member of this board/commission.

I want to be able to make informed decisions to serve our art community for the greater common good.

Have you served on an advisory group before?
Yes No
Maximilian Cao

ATTACHMENT A
111
Upload a Resume
How did you hear about the position?
Emily Oestreicher and Max Vargas
City Council Policy 100-2 states that Commissioners are required to attend meetings on a regular basis. If appointed, will you be able to attend meetings regularly and devote the time necessary to fulfill your duties as a member?
Yes No
Do you or immediate family members have any relationship (professional, financial, other) that may present a potential conflict of interest for this advisory group? Yes No
Background Information
Based on your best judgment, does this Commission make decisions that may affect any sources of income, interests in real property, or investments of you or your spouse? Yes No
Voter Registration (Questions appear if required)
Submit Application
Enter Your Initials:

MC
Date Signed
6/4/2018
Maximilian Cao

ATTACHMENT A
112
Resolution No.

STOCKTON CITY COUNCIL

RESOLUTION APPOINTING MAXIMILIAN CAO TO THE STOCKTON ARTS

COMMISSION

The Stockton Arts Commission acts in an advisory capacity to the Stockton City Council in connection with the artistic and cultural development of the City; and

The Stockton Arts Commission promotes and encourages programs that further the development and public awareness of all the arts including public art, fine arts , and performing arts; and

The Stockton Arts Commission recommend s the appointment of Maximilian Cao for one term to expire on December 31, 2025: and

In accordance with Stockton Municipal Code section 2.94.040A, members of the Stockton Arts Commission are appointed by the Mayor, with approval of the City Council; now, therefore,

BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF STOCKTON, AS FOLLOWS:

1. The City Council appoints Maximilian Cao , to the Stockton Arts Commission.

2. Commissioner term will commence immediately upon approval and expire on December 31, 2025.

3. The Mayor , with approval of the City Council , agrees with the current recommendations of the Stockton Arts Commission and the Community Services Department.

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 March 1, 2022 .

________________________
KEVIN J. LINCOLN II
ATTEST: Mayor of the City of Stockton

ELIZA R. GARZA, CMC
City Clerk of the City of Stockton
113
City of Stockton
Legislation Text
File #: 21-0957, Version: 1
AWARD A CONTRACT TO SYNAGRO-WWT, INC. FOR THE DIGESTER C CLEANING

RECOMMENDATION
It is recommended that the City Council adopt a resolution to:

1. Approve the filing of Notice of Exemption No. NOE73-21 under the California Environmental Quality Act (CEQA) for the Digester C Cleaning, (Exhibit 1 to the Resolution).

2. Approve the project plans and specifications for the Digester C Cleaning.

3. Award a $949,940 contract to Synagro-WWT, Inc. of Baltimore, Maryland for the Digester C Cleaning, (Exhibit 2 to the Resolution).

It is further 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 Municipal Utilities Department (MUD) operates and maintains two (2) anaerobic digesters at the Regional Wastewater Control Facility (RWCF). The digesters break down sludge in the wastewater treatment process. In addition to the active digesters, there are three other (A, B, and C) digester tanks. Digesters A, B, and C are not equipped with active heating and mixing systems and are currently used for storage of digested sludge. Digester C requires cleaning so storage capacity can be increased.

If approved by Council, this action will award a contract in the amount of $949,940 to Synagro-WWT, Inc. of Baltimore, Maryland for the Digester C Cleaning project.

DISCUSSION
Background
The Municipal Utilities Department (MUD) operates and maintains two (2) anaerobic digesters at the Regional Wastewater Control Facility (RWCF). The digesters break down sludge in the wastewater treatment process. The sludge digestion process produces methane gas as a by-product, which in turn is used as a fuel source for the cogeneration engines to generate electricity. In addition to the active digesters, there are three other (A, B, and C) digester tanks. Digesters A, B, and C are not equipped with active heating and mixing systems and are currently used for storage of digested sludge.

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File #: 21-0957, Version: 1
Over time, grit and solids accumulate in the digesters. Digester C requires maintenance where these materials will be removed, dewatered, and hauled offsite to restore Digester C capacity.

Present Situation
On November 3, 2021, the MUD advertised the project in the Stockton Record and posted to the City’s Bid Flash webpage.

A non-mandatory pre-bid conference meeting was held on November 18, 2021, with three (3) prospective bidders in attendance. A field visit was conducted after the pre-bid conference. On Thursday, December 2, 2021, three (3) sealed bids were received and publicly opened by the City Clerk with the following results:

COMPANY NAME LOCATION BID PRICE
Synagro-WWT, Inc. Maryland, MD $949,940.00
MP Environmental Bakersfield, CA $1,318,028.50
American Process Group, Inc. Tacoma, WA $1,332,681.50
Engineer’s Estimate $1,140,340.00
The bid received by Synagro-WWT, Inc. of Baltimore, Maryland is regular in all aspects and compliant with the project specifications.

It is recommended that the City Council award a contract in the amount of $949,940 to Synagro- WWT, Inc. of Baltimore, Maryland, for the Digester C Cleaning.

Local Employment Ordinance
The contract amount is over $100,000 and subject to the Local Employment Ordinance, which requires that “all City contracts for public works or improvements of estimated value or City subsidy of $100,000 or more shall contain provisions pursuant to which the contractor promises to make a good faith effort, with the assistance of local labor union hiring halls or community organizations designated by the City to employ qualified individuals who are, and have been for one year prior to the effective date of the contract, residents of Stockton in sufficient numbers so that no less than 50 percent of the contractor’s total construction workforce, including any subcontractor workforce, measured in labor work hours, is comprised of Stockton residents.” The Local Preference Ordinance, which states that “preference shall be given to the purchase of supplies, materials, equipment, and contractual services from local merchants, quality and price being equal,” does not apply because the bidders are located outside of Stockton and San Joaquin County.

The project is under $1,000,000 and not subject to the Community Workforce and Training Agreement.

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Environmental Clearance
It has been determined that this project is categorically exempt from the requirements of the California Environmental Quality Act (CEQA) guidelines as specified under Article 19, Section 15330 (b)(5) of the CEQA guidelines because it concerns the minor cleanup action of contaminated soils or sludges in regulated units.

In addition, the proposed project is consistent with the 2040 Stockton General Plan (Land Use Policy

6.3) because it improves existing utility services to ensure that all neighborhoods have access to well -maintained public facilities and utilities that meet community service needs.

FINANCIAL SUMMARY
There are sufficient funds available in the Wastewater Treatment Plant Operations, Maintenance & Repairs Services account to award the contract in the amount of $949,940 to Synagro-WWT, Inc. of Baltimore, Maryland for the Digester C Cleaning.

There is no impact to the General Fund, or any other unrestricted fund, from this action.

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Resolution No.

STOCKTON CITY COUNCIL
=================================================================== RESOLUTION APPROVING THE FILING OF NOTICE OF EXEMPTION NO. NOE73- 21, APPROVING THE PROJECT PLANS AND SPECIFICATIONS, AND AWARDING A CONTRACT IN THE AMOUNT OF $ 949,940 TO SYNAGRO-WWT, INC. FOR THE

DIGESTER C CLEANING

On December 2, 2021, the City Clerk of the City of Stockton opened, examined, and publicly declared the sealed bids offered for the Digester C Cleaning (Project No. P21000); and

Synagro-WWT, Inc. is the apparent low bidder in the amount of $949,940; and

The bid submitted by Synagro-WWT, Inc. is regular and responsive in all aspects; and

The project is in conformance with the City’s General Plan and is exempt from the requirements of the California Environmental Quality Act (CEQA) as specified under Article 19, Section 15330(b)(5), of the CEQA Guidelines; The project is in conformance with the Stockton General Plan based on Policy Land Use – 6.3; now, therefore,

BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF STOCKTON, AS FOLLOWS:

1. Approve the filing of the Notice of Exemption No. NOE73-21 under CEQA for the Digester C Cleaning, a copy of which is attached as Exhibit 1 and incorporated by this reference.

2. The City Council approves the project Plans and S pecifications for the Digester C Cleaning.

3. The City Council authorizes the City Manager to execute a Contract with Synagro-WWT, Inc. of Baltimore, Maryland, in the amount of $949,940 for the Digester C Cleaning, a copy of which is attached as Exhibit 2 and incorporated by this reference.

4. The City Manager or designee is authorized and directed to execute all documents, including, but not limited to, agreements and amendments.

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5. The City Manager is hereby authorized to take appropriate and necessary actions to carry out the purpose and intent of this Resolution.

PASSED, APPROVED, and ADOPTED March 1, 2022 .

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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CONSTRUCTION CONTRACT

FOR THE
DIGESTER C CLEANING, PROJECT NO. P21000

This contract is made and entered into on _____________, by and between SYNAGRO-WWT, INC., a STATE OF MARYLAND CORPORATION, with a business address at 435 WILLIAMS COURT, BALTIMORE, MD 21220, hereinafter called "CONTRACTOR," and CITY OF STOCKTON, a municipal corporation, hereinafter called "CITY."

W I T N E S S E T H:

WHEREAS, plans and specifications for the construction of DIGESTER C CLEANING (PROJECT NO. P21000), hereinafter called “PROJECT,” were regularly adopt ed by Council Resolution No. __________________, on _________________; and
WHEREAS, the contract for said work was regularly awarded to CONTRACTOR, by Council Resolution No. __________________, on ________________.

NOW, THEREFORE, in consideration of the pr omises and of the mutual covenants herein contained, the parties hereto expressly agree as follows:

CONTRACTOR agrees:

1. SCOPE OF SERVICES. To do the work and furnish all the labor, materials, tools, equipment, and insurance required for the construction of PROJECT in accordance with the plans and specifications adopted on _____________, by Council Resolution No. __________________. The "contract documents ," which include the bid documents, project plans , specifications, all letters of clarification, and the City of Stockton Standard Specifications and Plans, are incorporated into and made a part of this contract by this reference to the same extent as if fully set forth.

2. COMPENSATION. To do and perform the work contemplated hereby in a good and workmanlike manner and to furnish all labor, materials, tools , and equipment necessary therefor e at the prices specified in Exhibit A, attached hereto and by reference made a part hereof, under the direction of and to the complete satisfaction of the Director of Municipal Utilities department of the City of Stockton.

Total compensation for services and reimbursement for costs shall not exceed $ 949,940, or as otherwise mutually agreed to in a Contract Change Order.

3. INSURANCE. CONTRACTOR shall not commence any work before obtaining, and shall maintain in force at all times during the duration and performance of this contract, the policies of insurance specified in Exhibit B, which is attached to this contract and incorporated by this reference, and as provided in the “contract documents” including Section 7- 1.06 of the City of Stockton Standard Specifications and Plans as adopted on September 27, 2016, by Council Resolution No. 2016-09-27, effective September 27, 2016.

It shall be a requirement under this agreement that any available insurance proceeds broader than or in excess of the specified minimum insurance coverage requirements and/or limits shall be available to the Additional Insured.

Furthermore, the requirements for coverage and limits shall be (1) the minimum coverage and limits specified in this Agreement; or (2) the broader coverage and maximum limits of coverage of any insurance policy or proceeds available to the named Insured; whichever is greater.

The Additional Insured coverage under the CONTRACTOR’s policy shall be “primary and non-contributory” and will not seek contribution from the City of Stockton’s insurance or self -insurance and shall be at least as broad as ISO CG 20 01 04 13.

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The limits of insurance required in this agreement may be satisfied by a combination of primary and umbrella or excess insurance. Any umbrella or excess insurance shall contain or be endorsed to contain a provision that such coverage shall also apply on a primary and non-contributory basis for the benefit of the City of Stockton (if agreed to in a written contract or agreement) before the City of Stockton’s own insurance or self-insurance shall be called upon to protect it as a named insured.

All self-insured retentions (SIR) must be disclosed to the CITY’s Risk Management for approval and shall not reduce the limits of liability. Payment Bond in the amount of the self -insured retention (SIR) may be required.

Policies containing any self -insured retention (SIR) provision shall provide or be endorsed to provide that the SIR may be satisfied by either the named insured or the CITY.

The CITY reserves the right to obtain a full certified copy of any insurance policy and endorsements.

Failure to exercise this right shall not constitute a waiver of right to exercise later.

CONTRACTOR shall maintain insurance as required by this contract to the fullest amount allowed by law and shall maintain insurance for a minimum of five years following the completion of this project. In the event contractor fails to obtain or maintain completed operations coverage as required by this agreement, the City at its sole discretion may purchase the coverage required and the cost will be paid by contractor.

CONTRACTOR agrees to include with all Subcontractors in their subcontract the same requirements and provisions of this agreement including the indemnity and insurance requirements to the extent they apply to the scope of the Subcontractor’s work. Subcontractors hired by CONTRACTOR agree to be bound to CONTRACTOR and the CITY in the same manner and to the same extent as CONTRACTOR is bound to the CITY under the Contract Documents. Subcontractor further agrees to include these same provisions with any Sub- subcontractor. A copy of the CITY Contract Document Indemnity and Insurance provisions will be furnished to the Subcontractor upon request. The General CONTRACTOR shall require all sub- contractors to provide a valid certificate of insurance and the required endorsements included in the agreement prior to commencement of any work and contractor will provide proof of compliance to the City.

4. INDEMNITY AND HOLD HARMLESS. To the fullest extent permitted by law, Contractor shall hold harmless, defend, and indemnify City of Stockton and its officers, officials, employees, and volunteers from and against all claims, damages, losses, and expenses including attorney fees arising out of the performance of the work described herein, caused in whole or in part by any negligent act or omission of the Contractor, any subcontractor, anyone directly or indirectly employed by any of them, or anyone for whose acts any of them may be liable, except where caused by the active negligence, sole negligence, or willful misconduct of the City of Stockton. This obligation is independent of, and shall not in any way be limited by, the minimum Insurance obligations contained in this agreement. These obligations shall survive the completion or termination of this agreement.

5. STANDARD PLANS AND SPECIFICATIONS. The performance of said work and the furnishing of said materials shall be executed in accordance with Section 8- 1.04B of the City of Stockton Standard Specifications and Plans as adopted on September 27, 2016 , by Council Resolution No. 2016- 09-27-1213, effective September 27, 2016, and the provisions of the issued project specifications.

The Director of Municipal Utilities department will furnish CONTRACTOR a weekly statement showing the number of days charged to the contract for the preceding week, the number of days specified for completion of the contract, and the number of days remaining to complete the contract. CONTRACTOR will be allowed one (1) week in which to file a written protest setting forth in what respects said weekly statement is incorrect, otherwise the statement shall be deemed to have been accepted by CONTRACTOR as correct.

6. WORKING DAYS. It is agreed by the parties to the contract that in case all the work called for under the contract in all parts and requirements, is not finished or completed within the number of days as set forth, damage will be sustained by the CITY, and that it is and will be impracticable and extremely EXHIBIT 2

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difficult to ascertain the actual damage which CITY will sustain in the event of and by reason of such delay; and it is therefore agreed that CONTRACTOR will pay to CITY the sum of ONE THOUSAND AND NO/100 DOLLARS ($1,000) per day for each and every calendar day's delay in finishing the work in excess of the number of days prescribed; and CONTRACTOR agrees to pay said liquidated damages as herein provided, and in case the same are not paid, agrees that CITY, may deduct the amount thereof from any monies due or that may become due CONTRACTOR under the contract.

It is further agreed that in case the work called for under the contract is not finished and completed in all parts and requirements within the number of days as specified, the CITY shall have the right to increase the number of days or not, as may seem best to serve the interest of CITY, and if the CITY decides to increase the said number of days, the CITY shall further have the right to charge to CONTRACTOR, CONTRACTOR's heirs, assigns or sureties, and to deduct from the final payment for the work, all or any part, as may be deemed proper, the liquidated damages as specified or the actual cost of engineering, inspection, superintendence, and other overhead expenses which are directly chargeable to the contract, and which accrue during the period of such extension, whichever is greater, except the cost of final surveys and preparation of final estimate shall not be included in such charges.

A working day shall not include, nor shall CONTRACTOR be assessed with liquidated damages nor the additional cost of engineering and inspection during any delay beyond the time named for the completion of the work caused by acts of God or of the public enemy, acts of CITY, fire, floods, epidemics, quarantine restrictions, strikes, and freight embargoes and subject to approval by the Director of Municipal Utilities department, inability to get materials ordered by CONTRACTOR or subcontractor due to such causes provided that CONTRACTOR shall notify the Director of Municipal Utilities department in writing of the causes of delay within five (5) working days from the beginning of any such delay, and the Director shall ascertain the facts and the extent of the delay, and Director's findings of the facts thereon shall be final and conclusive.

If CONTRACTOR is delayed by reason of alterations made in these specifications, or by any act of the Director of Municipal Utilities department or of the CITY, not contemplated by the contract, the time of completion shall be extended proportionately and CONTRACTOR shall be relieved during the period of such extension of any claim for liquidated damages, engineering or inspection charges or other penalties.

CONTRACTOR shall have no claim for any other compensation for any such delay.

7. CONFORMANCE TO APPLICABLE LAWS. Contractor shall comply with all applicable Federal, State, and Municipal laws, rules, and ordinances. Contractor shall not discriminate in the employment of persons or in the provision of services under this Contract on the basis of any legally protected classification, including race, color, national origin, ancestry, sex or religion of such person.

a. TITLE VI

Title VI of the Civil Rights Act of 1964 requires that “no person in the United States shall, on the grounds of race, color, or national origin, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity receiving federal financial assistance.” (42 USC Section 2000d)
http://www.dol.gov/oasam/regs/statutes/titlevi.htm
.

The City of Stockton requires compliance with the requirements of Title VI in all of its programs and activities regardless of funding source.

b. DISCRIMINATION AND HARASSMENT POLICY

The City of Stockton has a Discrimination and Harassment Policy (Exhibit C). The purpose of this policy is to reaffirm the CITY’s commitment to demonstrating respect for all individuals by strictly prohibiting discrimination and harassment, including sexual harassment in the workplace, to define the types of behavior and conduct prohibited by EXHIBIT 2

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this policy, and to set forth a procedure for reporting, investigating, and resolving complaints of discrimination and harassment in the workplace.

c. LABOR STANDARDS PROVISIONS/CALIFORNIA LABOR CODE

The bidder shall understand that conditions set forth in Division 2, Part 7, Chapter 1, Article 2, Wages of the California Labor Code shall be considered part of the contract agreement. https://leginfo.legislature.ca.gov/faces/codes_displayText.xhtml?lawCode=LAB&division=

2.&title=&part=7.&chapter=1.&article=2.

d. PREVAILING WAGE

CONTRACTOR and any subcontractor shall pay each employee engaged in the trade or occupation not less than the prevailing hourly wage rate. In accordance with the provisions of Section 1770 of the Labor Code, the Director of Department of Industrial Relations of the State of California has determined the general prevailing wage and employer payments for health and welfare, pension, vacation, travel time, and subsistence pay as provided for in Section 1773.1, apprenticeship or other training programs authorized by Section 3093 and similar purposes applicable to the work to be done. CONTRACTOR performing the work under this contract shall obtain a copy of the wage rate determination and shall distribute copies to each subcontractor. As the wage determination for each craft reflects an expiration date, it shall be the prime CONTRACTOR and each subcontractor's responsibility to ensure that the prevailing wage rates of concern is current and paid to the employee.

i. The CONTRACTOR performing the work shall be responsible for obtaining a copy of the State wage rate determination. State wage rates may be obtained at http://www.dir.ca.gov/OPRL/pwd/Determinations/Northern/Northern.pdf . The
CONTRACTOR shall be responsible for posting said wage rates at a prominent location at the work site and shall maintain same in a good readable condition for the duration of the work.

ii. Should the CONTRACTOR choose to work on a Saturday, Sunday or on a holiday recognized by the Labor Unions, the CONTRACTOR shall reimburse the CITY the actual cost of engineering, inspection, superintendence, and or other overhead expenses which are directly chargeable to the contract. Should such work be undertaken at the request of the CITY, reimbursement will not be required. To conform strictly with the provisi ons of Division 2, Part 7, Chapter 1, Article 2, of the Labor Code of the State of California. To forfeit as a penalty to CITY the sum of TWENTY-FIVE AND NO/100 DOLLARS ($25.00) for each laborer, worker, or mechanic employed by CONTRACTOR, or by any subcontractor under CONTRACTOR, in the execution of this contract, for each calendar day during which any laborer, worker, or mechanic is required or permitted to work more than eight (8) hours and who is not paid the general prevailing rate of per diem wages for holiday and overtime work in violation of the provisions of Sections 1770 to 1781 of the Labor Code of the State of California. That all sums forfeited under the provisions of the foregoing sections shall be deducted from the payments to be made under the terms of this contract.

iii. The CONTRACTOR to whom the contract is awarded shall insure that the prime and each subcontractor will in accordance with Section 1776 of the Labor Code, maintain certified payroll records. A copy of said records shall be provided with each invoice to the Municipal Utilities department, Attention Contract Compliance Officer. It shall be the CONTRACTOR’S responsibility to obtain copies of the current prevailing wage rate determination for all subcontractors. Additionally, certified payroll records must be uploaded to the DIR website as required by labor code.

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iv. The CONTRACTOR shall comply with the provisions established in Section 1777.5 of the Labor Code concerning the 1) certified approval by local joint apprenticeshi p committees for the employment and training of apprentices, and 2) contribution of funds to administer and conduct apprenticeship programs, if applicable to the job.

e. LOCAL EMPLOYMENT ORDINANCE

For contracts valued at $100,000 and above, pursuant to Stockton Municipal Code Section

3.68.095 the CONTRACTOR and all subcontractors shall make a good faith effort to employ at least 50 percent of the workforce on this project from local residents, as measured by total labor work hours. Failure of any CONTRACTOR or subcontractor to comply with these requirements shall be deemed a material breach of the contract or subcontract. CONTRACTORS and subcontractors shall maintain records necessary for monitoring their compliance with section 3.68.095.

f. COMMUNITY WORKFORCE TRAINING AGREEMENT

For contracts valued at 1,000,000 and above, p ursuant to the implementation of the Community Workforce Training Agreement (CWTA) adopted by the City Council on July 26, 2016, the successful bidder shall be required to comply with the provisions of the CWTA. For any project subject to this Agreement, the Local Hire, Priority Apprentice and Workforce Development Program requirements shall apply in lieu of the requirements of Stockton Municipal Code Section 3.68.095 and no separate compliance with Section 3.68.095 will be required of the Contractors/Employers working on the project.

CITY agrees:

8. COMPENSATION. To pay CONTRACTOR for the work herein contemplated in the following manner: Progress payments will be made on or about the first day of each calendar month, in such sum as shall make the aggregate of payment up to such day equal to ninety-five percent (95%) of the proportional contract price, upon the basis of the progress certificate of the Director of Municipal Utilities department as to the amount of work done and the proportional amount of the contract price represented therefore; and all of the remaining part of the contract price not as aforesaid paid, shall be paid at the expiration of thirty-five (35) days from the completion of said work of construction and the certification by the Director of Municipal Utilities department of such completion.

9. SECURITIES. Pursuant to Section 22300 of the Public Contract Code, CONTRACTOR will be permitted, at its request and sole expense, to substitute securities for any monies withheld by the CITY to ensure performance under the contract. Said securities will be deposited either with the CITY or with a State or federally chartered bank as escrow agent. Securities eligible for this substitution are those listed in Section 16430 of the California Government Code or bank or savings and loan certificates of deposit.

CONTRACTOR shall be the beneficial owner of any securities substituted for monies withheld and shall receive any interest thereon.

10. CHANGE ORDERS. CITY reserves the right to make such alterations, deviations, additions to or omissions from the plans and specifications, including the right to increase or decrease the quantity of any item or portion of the work, as may be deemed by the Engineer to be necessary or advisable and to require such extra work as may be determined by the Engineer to be required for the proper completion or construction of the whole work contemplated.

Any such changes will be set forth in a contract change order which will specify, in addition to the work done in connection with the change made, adjustment of contract time, if any, and the basis of EXHIBIT 2

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Liability and Insurance Requirements
00820-1
SECTION 00820 - LIABILITY AND INSURANCE REQUIREMENTS

1.0 INDEMNIFICATION
Indemnity and Hold Harmless. To the fullest extent permitted by law, Contractor shall hold harmless, defend, and indemnify City of Stockton and its officers, officials, employees, and volunteers from and against all claims, damages, losses, and expenses including attorney fees arising out of the performance of the work described herein, caused in whole or in part by any negligent act or omission of the Contractor, any subcontractor, anyone directly or indirectly employed by any of them, or anyone for whose acts any of them may be liable, exc ept where caused by the active negligence, sole negligence, or willful misconduct of the City of St ockton. This obligation is independent of, and shall not in any way be limited by, the minimum Insurance obligations contained in this agreement. These obligations shall survive the completion or termination of this agreement.

2.0 INSURANCE REQUIREMENTS
Exhibit B:

Insurance Requirements for Construction Contracts
Contractor shall procure and maintain for the duration of the cont ract, and for five (5) years thereafter,
insurance against claims for injuri es to persons or damages to property which may arise from or in connection with the performance of the work hereunder by t he Contractor, their agents, representatives, employees, or subcontractors. In the event cont ractor fails to obtain or maintain completed operations coverage as required by this agreement, the City, at its sole discretion, may purchase the coverage required and the cost will be paid by the contractor.

MINIMUM SCOPE AND LIMIT OF INSURANCE
Coverage shall be at least as broad as:

1. Commercial General Liability (CGL): Insurance Services Office (ISO) Form CG 00 01 covering CGL on an “occurrence” basis, including products and completed operations, property damage, bodily injury and personal & advertising injury with limits no less than $2,000,000 per occurrence. If a general aggregate limit applies, either the general aggregate limit shall apply separately to this project/location (ISO CG 25 03 or 25 04) or the general aggregate limit shall be twice the required occurrence limit.

2. Automobile Liability: Insurance Services Office Form CA 0001 covering Code 1 (any auto), with limits no less than $2,000,000 per accident for bodily injury and property damage.

3. Workers’ Compensation insurance as required by the State of California, with Statutory Limits, and Employers’ Liability insurance with a limit of no less than $1,000,000 per accident for bodily injury or disease.

4. Surety Bonds as described below.

5. Contractors’ Pollution Legal Liability and/or Asbestos Legal Liability with limits no less than $2,000,000 per occurrence or claim, and $2,000,000 policy aggregate.

It shall be a requirement under this agreement that any available insurance proceeds broader than or in excess of the specified minimum insurance coverage requirements and/or limits shall be available EXHIBIT 2

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Liability and Insurance Requirements
00820-2
to the Additional Insured. Furthermore, the requirements for coverage and limits shall be (1) the minimum coverage and limits specified in this Agreement; or (2) the broader coverage and maximum limits of coverage of any Insurance policy or proc eeds available to the named insured; whichever is greater. No representation is made that the minimum insurance r equirements of this agreement are sufficient to cover the obligations of the Contractor under this agreement.

Limits of Insurance

The limits of insurance required in this agreement may be satisfied by a combination of primary and umbrella or excess insurance. Any umbrella or excess insurance shall contain or be endorsed to contain a provision that such coverage shall also apply on a primary and non-contributory basis before the City’s own insurance or self-insurance shall be called upon to protect it as a named insured.

Other Insurance Provisions

The insurance policies are to contain, or be endorsed to contain, the following provisions:

Additional Insured Status

The City of Stockton, its officers, officials, employees, and volunteers are to be covered as additional insureds on the CGL policy with respect to liability arising out of work or o perations performed by or on behalf of the Contractor including materials, parts, or equipment furnished in connection with such work or operations. Gene ral liability coverage can be provided in the form of an endorsement to the Contractor’s insurance (at least as broad as ISO Form CG 20 10 11 85 or if not available, through the addition of both CG 20 10, CG 20 26, CG 20 33, or CG 20 38; and CG 20 37 if a later edition is used).

Additional insured Name of Organization shall read “City of Stockton, its officers, officials, employees, and volunteers.” Policy shall cover City of Stockton, its officers, officials, employees, and volunteers for all locations work is done under this contract.

Primary Coverage

The Additional Insured coverage under the Contractor’s policy shall be “primary and non-contributory” and will not seek contribution from the City’s insurance or self-insurance and shall be at least as broad as CG 20 01 04 13. The City of Stockton does not accept endorsem ents limiting the Contractor’s insurance coverage to the sole negligence of the Named Insured.

Claims Made Policies – (Note – applicable only to professional and/or pollution liability)

If any coverage required is written on a claims-made coverage form:

1. The retroactive date must be shown, and this date must be before the execution date of the contract or the beginning of contract work.

2. Insurance must be maintained and evidence of insurance must be provided for at least five (5) years after completion of contract work.

3. If coverage is canceled or non-renewed, and not replaced with another claims-made policy form with a retroactive date prior to the contract effect ive, or start of work date, the Contractor must purchase extended reporting period coverage for a minimum of five (5) years after completion of contract work.

4. A copy of the claims reporting requirements must be submitted to the City of Stockton for review.

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5. If the services involve lead- based paint or asbestos identification/remediation, the Contractors Pollution Liability policy shall not co ntain lead-based paint or asbesto s exclusions. If the services involve mold identification/remedi ation, the Contractors Pollution Li ability policy shall not contain a mold exclusion, and the definition of Pollution shall include microbial matter, including mold.

Notice of Cancellation

Each insurance policy required above shall provide t hat coverage shall not be canceled, except with notice to the City of Stockton.

Waiver of Subrogation

Contractor hereby grants to City of Stockton a waiver of any right to subrogation which any insurer of said Contractor may acquire against the City of St ockton by virtue of the pay ment of any loss under such insurance. Contractor agrees to obtain any endorsement that may be nece ssary to affect this waiver of subrogation, but this provision applies regardless of whether or not the City of Stockton has received a waiver of subrogation endorsement from the insurer. The Workers’ Compensation policy shall be endorsed with a waiver of subrogation in favor of the City of Stockton for all work performed by the Contractor, its employees, agents and subcontractors.

Self-Insured Retentions

All Self-insured retentions must be disclosed to Risk Managemen t for approval and shall not reduce the limits of liability. The City of Stockton may require the Contractor to purchase coverage with a lower retention or provide proof of ability to pay losses and related investigations, claim administration, and defense expenses within the re tention. The policy language shall provide, or be endorsed to provide, that the self-i nsured retention may be satisfied by ei ther the named insured or City of Stockton.

Acceptability of Insurers

Insurance is to be placed with insurers with a curr ent A.M. Best’s rating of no less than A:VII, unless otherwise acceptable to the City of Stockton.

Verification of Coverage

Contractor shall furnish the City of Stockton with original cert ificates and amendatory endorsements or copies of the applicable policy language effecting coverage required by this clause. All certificates and endorsements are to be received and approved by the City of Stockton Risk Services before work commences. However, failure to obtain the required documents prior to the work beginning shall not waive the Contractor’s obligation to provide them. The City of Stockt on reserves the right to require complete, certified copies of all required insurance policies, including endorsements required by these specifications, at any time.

Contractor shall, prior to the commencement of work under this Agreement, provide the City of Stockton with a copy of its dec larations page(s) and endorsement page(s) for each of the required policies.

Subcontractors

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Contractors shall require and verify that all subcontractors, or ot her parties hired for this work, purchase and maintain coverage for indemnity and insurance requirements as least as broad as specified in this agreement to the extent they apply to the scope of the subcontractor’s work with the same certificate of insurance requirements and nam ing as additional insureds all parties to this contract. Contractor shall include the following la nguage in their agreement with Subcontractors:

Subcontractors hired by Contractor agree to be bound to Contractor and City in the same manner and to the same extent as Contract or is bound to City under the cont ract documents and provide a valid certificate of insurance and the required endorse ments included in the agreement as proof of compliance prior to commencement of any work and to include this same requirement for any subcontractors they hire for this work. A copy of the owner contract document indemnity and insurance provisions will be furnished to the subcontractor upon request. Contractor shall provide proof of such compliance and verification to the City upon request.

Surety Bonds

Contractor shall provide the following Surety Bonds:

1. Bid bond

2. Performance bond

3. Payment bond (or Labor and Material bond)

4. Maintenance bond

The Payment Bond and the Performance Bond shall be in a sum equal to one hundred percent (100%) of the contract price. If t he Performance Bond provides fo r a one-year warranty a separate Maintenance Bond is not necessary. If the warranty period specified in the contract is for longer than one year a Maintenance Bond equal to 10% of the contract price is required. Bonds shall be duly executed by a responsible corporate surety, authorized to issue such bonds in the State of California and secured through an authorized agent with an office in California.

Special Risks or Circumstances

City of Stockton reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances.

Certificate Holder Address
Proper address for mailing certificates, endorsements and notices shall be:

City of Stockton
Attn: City Risk Services
400 E Main Street, 3rd Floor – HR
Stockton, CA 95202

***END OF SECTION***
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BOND FOR FAITHFUL PERFORMANCE

KNOW ALL MEN BY THESE PRESENTS:

That we, _______________________________, a STATE OF MARYLAND CORPORATION, as Principal and , a
corporation, organized and existing under the laws of the State of and duly authorized to transact business under the laws of the State of California, as Surety, are held and firmly bound unto the City of Stockton, a municipal corporation, duly created and existing under and by virtue of the laws of the State of California, as obligee, in the just and full sum of NINE HUNDRED FORTY-NINE THOUSAND, NINE HUNDRED FORTY AND xx/100 DOLLARS ($949,940), in lawful money of the United States of America (being 100% of the contract price) for the payment whereof well and truly to be made to the said CITY, the said Principal and Surety bind themselves, their successors and assigns, jointly and severally, firmly by these presents.

The condition of the foregoing obligation is such that the above bounded Principal has simultaneously entered into a contract with the CITY, to do and perform the following work, to wit:

DIGESTER C CLEANING
(PROJECT NO. P21000)

NOW, THEREFORE, if the above bounded Principal, CONTRACTOR, Company or Corporation or its subcontractor, shall well and truly perform the work contracted to be done under said contract, then this obligation to be null and void; otherwise to remain in full force and effect.

EXHIBIT 2

147
No prepayment or delay in payment and no change, extension, addition or alteration of any provision of said contract, or in said plans or specifications agreed to between the said CONTRACTOR and the said CITY, and no forbearance on the part of the said CITY shall operate to relieve any Surety or Sureties from liability on this bond, and consent by said Surety is hereby given, and the said Surety hereby waives the provisions of Sections 2819 and 2845 of the Civil Code of the State of California.

SIGNED AND SEALED on

APPROVED AS TO SURETY: By:

PRINCIPAL

SURETY
APPROVED AS TO FORM & CONTENT:

JOHN M. LUEBBERKE

OFFICE OF THE CITY ATTORNEY

By:

ATTORNEY-IN-FACT
By:

ASSISTANT CITY ATTORNEY

EXHIBIT 2

148

BOND FOR LABOR AND MATERIAL

KNOW ALL MEN BY THESE PRESENTS:

That we, SYNAGRO-WWT, INC., a STATE OF MARYLAND CORPORATION, as Principal and , corporation, organized and existing under the laws of the State of and duly authorized to transact business under the laws of the State of California, as Surety, are held and firmly bound unto the City of Stockton, a municipal corporation, duly created and existing under and by virtue of the laws of the State of California, and unto any and all material suppliers, persons, companies, or corporations furnishing materials, provisions, provender or other supplies used in, upon, for or about the performance of the work contemplated to be executed or performed under the contract hereinafter mentioned, and all persons, companies, or corporations renting or hiring teams, or implements of machinery, for or contributing to said work and all persons who perform work or labor upon the same, and all persons who supply both work and materials, and whose claims have not been paid by the contractor, company or corporation in the just and full sum of NINE HUNDRED FORTY -NINE THOUSAND, NINE HUNDRED FORTY AND xx/100 DOL LARS ($949,940), in lawful money of the United States of America (being 100% of the contract price) for the payment whereof well and truly to be made to said CITY and to said persons jointly and severally, the said principal and Surety bind themselves, the ir successors and assigns, jointly and severally, firmly by these presents.

The condition of the foregoing obligations is such that the above bounden Principal has simultaneously entered into a contract of even date herewith, with the CITY, to do and perform the following work, to-wit:

DIGESTER C CLEANING
(PROJECT NO. P21000)

NOW, THEREFORE, if the above bounden Principal, CONTRACTOR, Company or Corporation or its subcontractor, fail to pay for all materials, provisions, provender, or other supplies, or teams, used in, upon, for or about the performance of the work contracted to be done, or for any work or labor done thereon of any kind, the Surety on this bond will pay the same, in an amount not exceeding the sum specified in this bond, provided that any and all claims hereunder shall be filed and proceedings had in connection therewith as required by the provisions of Division 3, Part 4, Title 15, Chapter 5, Article 1 of the Civil Code of California, provided that in case suit is brought upon this bond, a reasonable attorney's fee shall be awarded by the Court to the prevailing party in said suit; said attorney's fee to be fixed as costs in said suit, and to be included in the judgment therein rendered.

No prepayment or delay in payment and no change, extension, addition or alteration of any provision of said contract or in said plans or specifications agreed to between the said CONTRACTOR and the said CITY and no forbearance on the part of the said CITY shall operate to relieve any surety or sureties from liability on this bond, and consent to make such alterations without further notice to or consent by any EXHIBIT 2

149
such surety is hereby given, and the said sureties hereby waive the provisions of Sections 2819 and 2845 of the Civil Code of the State of California.

SIGNED AND SEALED on .

APPROVED AS TO SURETY: By:

PRINCIPAL

SURETY
APPROVED AS TO FORM & CONTENT:

JOHN M. LUEBBERKE

OFFICE OF THE CITY ATTORNEY

By:

ATTORNEY-IN-FACT
By:

ASSISTANT CITY ATTORNEY

EXHIBIT 2

150
City of Stockton
Legislation Text
File #: 22-0086, Version: 1
AUTHORIZE CONTRACT AMENDMENT NO. 2 WITH USALCO, LLC FOR PURCHASE OF WASTEWATER TREATMENT POLYMER AND AMEND THE FISCAL YEAR 2021-22 ANNUAL BUDGET

RECOMMENDATION
It is recommended that the City Council adopt a resolution:

1. Authorizing contract Amendment No. 2 (Exhibit 1 to the Resolution) in the amount of $2,500,000 with USALCO, LLC of Modesto, CA for the purchase of polymer for wastewater treatment; and

2. Appropriating funds in the amount of $920,000 from the Wastewater Utility Fund balance to the Wastewater Treatment Plant Operations, Maintenance & Repairs Services account.

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 Regional Wastewater Control Facility (RWCF) uses various polymers as part of the wastewater treatment process. Polymers are coagulants that thicken the solids in wastewater, making separation easier. The thickened wastewater, called sludge, can then be further processed for discharge or trucked offsite for disposal.

On May 21, 2021, by Motion No. 2019-05-21-1115, Council authorized the City Manager to award and execute a five-year Contract with CalChem Enterprises in the amount of $10,500,000 for the purchase of polymer for wastewater treatment (Attachment A).

On September 2, 2021, administrative Contract Amendment No. 1 was approved to change the reference in the agreements and contracts from “CalChem Enterprises” to “USALCO, LLC” (Attachment B).

On December 8, 2021, USALCO, LLC (USALCO) informed staff they are no longer able to absorb the raw material and transportation cost increases they have experienced over the past year.

USALCO has requested a price increase from $0.451 per pound to $0.626 per pound (Attachment C).

Upon approval of CCO No. 2, the Council authorized total contract will be $13,000,000.

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DISCUSSION
Background
The RWCF uses various polymers as part of the wastewater treatment process. Polymers are coagulants that thicken the solids in wastewater, making it easier to separate and remove them. The thickened product, called sludge, is then further processed for discharge or trucked offsite for disposal.

The type, quantity, and dosing rate of polymer used in the wastewater treatment process are dependent on the characteristics of the wastewater being treated. A product that works for one treatment plant may not work for another due to the varying nature of wastewater and the need to meet specific treatment criteria. Bid solicitations include both jar and bench scale testing to ensure the product is effective for the specific wastewater characteristics at the RWCF.

On May 21, 2021, by Motion No. 2019-05-21-1115, Council authorized the City Manager to award and execute a Contract with Calchem Enterprises in the amount of $10,500,000, for the purchase of polymer for wastewater treatment.

On September 2, 2021, a no-cost Contract Amendment No. 1 was approved to change the reference in the agreements and contracts from “Calchem Enterprises” to “USALCO, LLC.” Present Situation
The contract allows for increases up to 3% for each succeeding year during the five-year term. The first increase of 2.97% was requested on May 19, 2021, increasing the cost from $0.438 per pound to $0.451 per pound beginning on July 1, 2021.

On December 8, 2021, USALCO informed staff that raw material costs have increased significantly in the past year. The cost of aluminum metal used in the polymer production has increased an average of 105% over the past year. The cost of hydrochloric acid has increased by $100 per ton and the cost of the polymer component has increased by 33%. USALCO has absorbed these cost increases but cannot continue to do so. Additionally, supply chain issues have increased transportation costs significantly during the past year.

USALCO has requested a price increase of the CED 1127 polymer from $0.451 per pound to $0.6257 per pound effective January 1, 2022 (Attachment C).

Staff recommends Council approve a resolution to execute the Contract Amendment No. 2 with USALCO, LLC of Modesto, CA in the amount of $2,500,000 for the remaining two and a half years of the contract. Upon approval of Amendment No. 2, the City Council authorized total contract over the five-year period will be $13,000,000.

FINANCIAL SUMMARY
A budget appropriation in FY 2021-22 is recommended in the amount of $920,000 from the Wastewater Utility Fund Balance account to the Wastewater Treatment Plant Operations, Chemical City of Stockton Printed on 2/22/2022Page 2 of 3
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Purchases account. With this appropriation, there will be sufficient funds for the proposed additional cost to authorize a contract amendment.

There is no impact to the General Fund, or any other unrestricted fund, from this action.

Attachment A - CalChem Enterprises Contract
Attachment B - Contract Amendment No. 1
Attachment C - USALCO, LLC Request
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ATTACHMENT B
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2601 Cannery Avenue • Baltimore, MD 21226 • 410-918-2230 • FAX: 410-918-2240 December 20, 2021

The following price increase are documented for CED 1127.

PLATTS ALUMINUM METAL PRICING FOR SEPTEMBER 2020 TO OCTOBER 2021

INCREASE IN METAL PRICING BY 0.74/LB. X 0.098 LBS. OF METAL/POUND OF CED 1127 = $0.073/LB. INCREASE FROM ALUMINUM

HCL PRICING HAS INCREASED BY $100/TON OR $0.05/LB. X 0.235 LBS. OF HCL/POUND OF ACH = $0.0117/LB.

Month MW US Transaction/100 weight MW US Transaction Premium /100 weight
Total
/100 weight

Sep-20 93.304 $14.136 $107.440
Oct-20 93.886 $12.111 $105.997
Nov-20 100.628 $12.988 $113.616
Dec-20 105.707 $14.176 $119.883
Jan-21 105.863 $14.973 $120.836
Feb-21 109.889 $15.560 $125.449
Mar-21 118.291 $18.883 $137.174
Apr - 21 128.866 $23.463 $152.329
May-21 136.918 $26.521 $163.439
Jun-21 138.206 $27.570 $165.776
Jul-21 143.724 $30.691 $174.415
Aug-21 152.628 $34.438 $190.528
Sept-21 162.399 $34.700 $197.099
Oct-21 168.038 $34.680 $203.060

ATTACHMENT C
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 Page 2
January 6, 2022

CALIFORNIA DIESEL FUEL PRICE INCREASES AS PUBLISHED BY DEPARTMENT OF ENERGY 2020-Nov 11/02 3.231 11/09 3.237 11/16 3.240 11/23 3.253 11/30 3.288 2020-Dec 12/07 3.311 12/14 3.342 12/21 3.370 12/28 3.399 2021-Jan 01/04 3.404 01/11 3.427 01/18 3.448 01/25 3.477 2021-Feb 02/01 3.497 02/08 3.558 02/15 3.635 02/22 3.739 2021-Mar 03/01 3.846 03/08 3.897 03/15 3.951 03/22 3.980 03/29 3.982 2021-Apr 04/05 3.981 04/12 3.975 04/19 3.977 04/26 3.986 2021-May 05/03 3.983 05/10 4.008 05/17 4.029 05/24 4.047 05/31 4.055 2021-Jun 06/07 4.069 06/14 4.084 06/21 4.099 06/28 4.127 2021-Jul 07/05 4.185 07/12 4.187 07/19 4.205 07/26 4.204 2021-Aug 08/02 4.271 08/09 4.288 08/16 4.319 08/23 4.284 08/30 4.291 2021-Sep 09/06 4.316 09/13 4.313 09/20 4.329 09/27 4.339 2021-Oct 10/04 4.369 10/11 4.425 10/18 4.530 10/25 4.600 2021-Nov 11/01 4.651 11/08 4.701 11/15 4.769 11/22 4.784 11/29 4.818 INCRE
ASE FROM $3.231/GALLON IN November 2020 TO $4.651/GAL. IN November OF 2021 = $1.42/GALLON INCREASE
FUE
L SURCHARGES HAVE INCREASED FROM 32% TO 48%. TRANSPORTATION LINE HAULS

HAVE ALSO INCREASED DURING THIS TIME PERIOD RESULTING IN AN INCREASE OF $0.005/LB. TO DELIVER PRODUCT
PO
LYMER COMPONENT OF BLEND HAS INCREASED BY 33.6% DURING 2021. THIS REPRESENTS A $0.075/LB. INCREASE IN FINISHED PRODUCT COST. POLYMER RAW

MATERIAL COMPONENTS ARE IN VERY SHORT SUPPLY AND IT IS ANTICIPATED ANOTHER INCREASE OF 10% IS FORTHCOMING IN JANUARY 2022 ADDING ANOTHER $0.01/LB.

SUM
MARY OF INCREASES –
• ALUMINUM COMPONENT - $0.073/LB.
• HCL COMPONENT - $0.0117/LBS.
• POLYMER COMPONENT - $0.085/LB.
• TRANSPORTATION - $0.005/LB.

TO
TAL REQUESTED PRICE INCREASE FOR REMAINING 2 YEAR TERM $0.1747/LB.

CURRENT P
RICE - $0.451/LB.

NEW PRICE FOR REMAINING 2 YEARS - $0.6257/LB.

ATTACHMENT C
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Resolution No.

STOCKTON CITY COUNCIL

RESOLUTION AUTHORIZING CONTRACT AMENDMENT NO. 2 TO USALCO, LLC

FOR THE PURCHASE OF WASTEWATER TREATMENT POLYMER AND AN APPROPRIATION OF $920,000 FROM THE WASTEWATER UTILITY FUND BALANCE FISCAL YEAR 2021-22 BUDGET

The Regional Wastewater Control Facility (RWCF) uses various polymers as part of the wastewater treatment process. Polymers are coagulants that thicken the solids in wastewater, making it easier to separate them. The thickened wastewater, called sludge, can then be further processed for discharge or trucked offsite for disposal; and

On May 21, 2021, by Motion No. 2019 -05-21-1115, Council authorized the City Manager to award and execute a five-year Contract with USALCO, LLC (USALCO) in the amount of $10,500,000 for the purchase of polymer for wastewater treatment; and

On January 4, 2021, staff were notified of the sale of CalChem Enterprises to USALCO, LLC. On September 2, 2021, an administrative Contract Amendment No. 1 was approved to change the reference in the agreements and contracts from “Cal Chem Enterprises” to “USALCO, LLC”; and

The contract allows for increases up to 3% for each succeeding year. The first increase of 2.97% was requested on May 19, 2021, increasing the cost from $0.438 per pound to $0.451 per pound beginning on July 1, 2021; and

On December 8, 2021, USALCO informed staff that raw material costs to produce the polymer have increased significantly in the past year. USALCO has absorbed these cost increases but are unable to continue to do so; and

The unit cost of the polymer, CED 1127, will be increased from $0.451 per pound to $0.626 per pound effective January 1, 2022; and

The Fiscal Year (FY) 2021-22 expenditure budget does not include sufficient funds for this cost increase; and

Appropriation from the fund balance is necessary to ensure adequate funds are available for purchase of polymer for wastewater treatment during FY 2021-22; now, therefore,

BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF STOCKTON, AS FOLLOWS:

1. Contract Amendment No. 2 in the amount of $2,500,000 to USALCO, LLC, is approved, and the City Manager is authorized and directed to execute same, a copy of which is attached as Exhibit 1 and incorporated by reference. 195

2. The City Manager, or designee, is hereby authorized to amend the FY 2021-22 Annual Budget to appropriate $920,000 from the Wastewater Utility Fund Balance to the Wastewater Treatment Plant Operations, Chemical Purchases account.

3. The City Manager or designee is hereby authorized to take appropriate and necessary actions to carry out the purpose and intent of this Resolution.

PASSED, APPROVED, and ADOPTED March 1, 2022 .

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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EXHIBIT 1
197
City of Stockton
Legislation Text
File #: 21-0852, Version: 1

APPROVE MOTION TO AWARD A PROFESSIONAL SERVICES CONTRACT FOR THE

LANDSCAPE AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT MANAGEMENT

RECOMMENDATION
It is recommended that the City Council approve a motion to:

1. Award a multi-year Professional Services Contract through December 31, 2026, with Siegfried Engineering, Inc. of Stockton, CA, in the amount not-to-exceed $877,062.00, to provide services for the Landscape and Lighting Maintenance Assessment District Management, Project No. OM-21-088.

2. Approve findings pursuant to Stockton Municipal Code section 3.68.070 in support of an exception to the competitive bidding process.

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 motion.

Summary
Approval of the proposed motion would retain the services of Siegfried Engineering, Inc. to manage the Stockton Consolidated Landscape Maintenance Assessment District No. 96-2 (Consolidated Landscape District) and the Central Stockton Lighting Maintenance Assessment District (Lighting Maintenance District). These services will continue the preparation of Annual Engineer’s Reports, preparing tax rolls, and submitting tax rolls to the San Joaquin County Auditor-Controller that have been regularly contracted, and will add budget recommendations and monitoring, development, and coordination of Capital Improvement Plan (CIP) projects in various zones.

On August 31, 2021, the City advertised a Request for Proposals (RFP) for the management of the Consolidated Landscape District and the Lighting Maintenance District. One proposal was received and evaluated.

It is recommended that Council approve a motion authorizing the City Manager to execute a five-year Professional Services Contract in the amount not-to-exceed $877,062.00 to Siegfried Engineering, Inc.

DISCUSSION
Background
The Landscaping and Lighting Act of 1972 (Act) provides for the establishment of assessment City of Stockton Printed on 2/23/2022Page 1 of 4
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districts to maintain landscape, public park, and street light improvements for the special benefit of the property owners in the districts.

On February 26, 1996, Council adopted Resolution No. 96-0084 that consolidated the 8 Landscape Maintenance Districts that existed at that time into the Consolidated Landscape District.  Since that time, 26 zones have been added to the Consolidated Landscape District.  Assessments are currently levied in all 27 zones.

The Lighting Maintenance District was formed in 2011 to provide enhanced lighting.  The Lighting Maintenance District consists of 278 non-City standard streetlights in the Oxford Manor area and allows for assessments to be collected for the special benefit received as a result of the non-standard street lighting.

The Act requires that a report be prepared each tax year for districts where assessments are to be levied and collected.  The Act requires that the report be prepared by a professional engineer.

Siegfried Engineering, Inc. has provided this engineering service to the Consolidated Landscape District since 1991. The work generally consists of preparing an engineer’s report that includes the Consolidated Landscape District’s annual budget, a description of the improvements to be maintained, and preparation and submittal of the assessment roll.  The previous contract with Siegfried Engineering, Inc. expired on December 31, 2021.

The recommended Professional Services Contract will include the budgeting and reporting tasks performed by Siegfried Engineering, Inc. under the previous contract as well as an expanded scope of work. Additional tasks included in this contract are:
· Additional budget development and administration responsibilities · Planning, coordinating, and developing CIP projects for assessment districts · Participating in the formation of new maintenance assessment districts · Development plan review support services
Present Situation
On August 31, 2021, the City advertised a RFP for engineering and management services for the City’s assessment districts.  On September 23, 2021, one proposal was received from Siegfried Engineering, Inc. of Stockton, CA.

The Selection Committee comprised of Public Works Department staff reviewed the proposal, evaluated the qualifications of the firm, and is recommending approval of their proposal based on the following criteria:
· Understanding of work.
· Experience with similar work/knowledge of local conditions. · Staff qualifications and technical expertise of the project team. · Familiarity with State and federal procedures.

The proposal submitted by Siegfried Engineering, Inc. is responsive and regular in all respects.

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District for 25 years. The price proposal for this contract is consistent with Siegfried Engineering, Inc.’s previous contract for engineering services with the Public Works Department, and the Municipal Utilities Department for Storm Drainage Districts.

Staff recommends that Council approve a motion to award a Professional Services Contract in the amount of $877,062.00 to Siegfried Engineering, Inc. (Attachment A).

The cost of Tasks 1-4 of the Professional Services Contract will be encumbered annually to fund the Annual Engineer’s Reports and budget administration for the Consolidated Landscape District and the Lighting Maintenance District.

Funding Landscape Lighting Landscape Lighting Total Base Year
Eng Report Eng Report Budget Budget Amount
FY 2021-22 $117,197 $2,387 $32,400 $2,700 $154,684 FY 2022-23 $120,699 $2,458 $33,372 $2,781 $159,310 FY 2023-24 $124,307 $2,531 $34,371 $2,864 $164,073 FY 2024-25 $128,022 $2,606 $35,397 $2,949 $168,974 FY 2025-26
$131,850 $2,684 $36,450 $3,037 $174,021
Total Base Amount $821,062 The contract also includes Tasks 5-8, totaling $56,000 for optional services anticipated during the five -year term of the contract. Optional services include:
· Planning, coordinating, and developing CIP projects for assessment districts. · Advising and coordinating the potential formation of a new maintenance assessment district for Five Mile Slough.
· Development plan review support services.

With these services, the total not-to-exceed contract amount is $877,062. The City will only pay for actual services performed at the agreed upon hourly rates.

Findings
Pursuant to Stockton Municipal Code (SMC) section 3.68.070, Council may approve findings which support an exception to the competitive bidding process. These findings include:

1. The City does not have staffing available to perform the assessment district engineer’s report, budget and submittal of the assessment roll.

2. Use of the RFP process is appropriate for this Professional Services Contract because it relies on the evaluation of professional qualifications and performance as the basis for selection of a vendor. Use of the criteria helps ensure selection of a vendor that will provide the highest quality professional service which is in the public interest.

3. The City negotiated a contract following solicitation of competitive proposals in accordance with SMC section 3.68.070.A.3.

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The recommended motion will approve a multi-year Professional Services Contract through December 31, 2026, with Siegfried Engineering, Inc. of Stockton, CA, in the amount not-to-exceed $877,062.00 for the Landscape and Lighting Maintenance Assessment District Management, Project No. OM-21-088.

FINANCIAL SUMMARY
Funding for the scope of work provided in this Professional Services Contract will be received by the City as part of the annual assessments levied by the district on behalf of the Consolidated Landscape District and Lighting Maintenance District for Tax Years 2021-22, 2022-23, 2023-24, 2024-25, and 2025-26. The Professional Services Contract will be accounted for in the City’s Fund 270 (formerly Fund 072) - Landscape Maintenance Assessment District series of accounts.

As-needed services, such as Task 6, are funded through the Five Mile Creek Assessment District, Project No. WT22001. Other as-needed services will be funded by the appropriate zone or development fee.

Funds for 2021-22 Consolidated Landscape District and Lighting Maintenance District work were budgeted in the FY 2021-22 Annual Budgets, which were approved on June 8, 2021, by Resolution Nos. 2021-06-08-1605 and 2021-06-08-1604, respectively.

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 - Professional Services Contract with Siegfried Engineering, Inc.

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Professional Services Contract – SIEGFRIED ENGINEERING, INC. – PROJECT NO. OM-21-088 (Updated 12/31/20)
PROF

ESSIONAL SERVICES CONTRACT
(for non-federal projects)
THIS CONTRACT is entered into this day of 2021, between the CITY OF STOCKTON, a municipal corporation (“City”), and SIEGFRIED ENGINEERING, INC. whose address is 3428 BROOKSIDE ROAD, STOCKTON, CA 95219 (“Consultant”) for the LANDSCAPE AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT MANAGEMENT (PROJECT NO. OM-21-088), hereinafter referred to as "Project".

RECIT
ALS
A. Consul
tant represents that it is licensed in the State of California and is qualified to provide the services proposed in the SCOPE OF WORK section of this Contract.

B. Cit
y finds it necessary and advisable to use the services of the Consultant for the purposes provided in this Contract.

NOW T
HEREFORE, in consideration of the mutual promises, covenants, and conditions in this Contract, City and Consultant agree as follows:

1. SCOPE OF SERVICES . Subject to the terms and conditions set forth in this Contract, Consultant shall undertake and complete the services described in Exhibit A. Consultant shall provide said services at the time, place, and in the manner specified in Exhibit A and compatible with the standards of the profession. Consultant agrees that it shall produce a fully complete project that is acceptable to the City.

2. COMPENSATION. City shall pay Consultant for services outlined in Exhibit A according to the fee not to exceed the schedule detailed in Exhibit B, which is attached to this Contract and incorporated by this reference. Consultant agrees this fee is for full remuneration for performing all services and furnishing all staffing and materials called for in the scope of services. The payments shall be made on a monthly basis upon receipt and approval of Consultant’s invoice. Total compensation for services and reimbursement for costs shall not exceed $ 877,062.00 or as otherwise mutually agreed to in a Contract Amendment.

3. INSURANCE. During the term of this Contract, Consultant shall maintain in full force and effect at its own cost and expense the insurance coverage as set forth in the attached Exhibit C and shall otherwise comply with the other provisions of Exhibit C.

4. INDEMNITY AND HOLD HARMLESS. With the exception that this section shall in no event be construed to require indemnification by Consultant to a greater extent than permitted under the public policy of the State of California, Consultant shall

ATTACHMENT A
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Professional Services Contract – SIEGFRIED ENGINEERING, INC. – PROJECT NO. OM-21-088 (Updated 12/31/20)

indemnify, and hold harmless City, its Mayor, Council, officials, and employees from and against any and all claims and causes of action which result in liabilities, judgments, awards, losses, dama ges, expenses, and costs (including reasonable attorneys’ fees, expert and consultant fees, and other expenses of litigation) including, but not limited to, death or injury to persons, or damage to property, which arise out of any violation of federal, state, or municipal law or ordinance, to the extent damages are caused by the Consultant’s negligent services provided under this Agreement, or are in any way caused by the negligent performance of work by the Consultant or Consultant’s officers, agents, employees, or subcontractors. Consultant shall not be obligated to indemnify or defend City for claims finally determined by a court of law or arbitrator to arise from the negligence or willful misconduct of the City. It is the intent of the Parties that this indemnity obligation is at least as broad as is permitted under California law. To the extent California Civil Code sections 2782, et seq., limit the defense or indemnity obligations of Consultant to City, the intent hereunder is to provide the maximum defense and indemnity obligations allowed by Consultant under the law. The indemnity set forth in this section shall not be limited by insurance requirements or by any other provision of this Agreement.

With the exception that this section shall in no event be construed to require indemnification by Consultant to a greater extent than permitted under the public policy of the State of California, and in addition to the other indemnity obligations in this Agreement, Consultant shall indemnify, defend, and hold harmless City, its Mayor, Council, officials, representatives, and employees from and against claims, losses, expenses, and costs including, but not limited to, reasonable attorneys’ fees, arising out of any claim brought against the City by an employee of Consultant, regardless of whether such claim may be covered by any applicable workers compensation insurance.

Consultant’s indemnification obligation is not limited in any way by any limitation on the amount or type of damages, compensation, or benefits payable by or for the Consultant under workers’ compensation acts, disability acts, or other employee benefit acts.

5. SCHEDULE AND TERM. Consultant shall perform the scope of work as described in Exhibit A according to the schedule detailed in Exhibit A, which is attached to this Contract and incorporated by this reference. This Contract shall commence on the date written above and shall expire on DECEMBER 31, 2026, unless extended by mutual agreement through the issuance of a Contract Amendment.

a. Invoices submitted by Consultant to City must contain a brief description of work performed, time used, and include the City project number. Payment shall be made within thirty (30) days of approval of invoice by City.

b. Upon completion of work and acceptance by City, Consultant shall have sixty (60) days in which to submit final invoicing for payment. An extension may be granted by City upon receiving a written request thirty (30) days in advance of said time limitation. City shall have no obligation or liability to pay any invoice for work performed which Consultant fails or neglects to

ATTACHMENT A
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Professional Services Contract – SIEGFRIED ENGINEERING, INC. – PROJECT NO. OM-21-088 (Updated 12/31/20)

submit within sixty (60) days, or any extension thereof granted by the City, after work is accepted by City.

6. CONFORMANCE TO APPLICABLE LAWS. Consultant shall comply with all applicable federal, State, and Municipal laws, rules, and ordinances. Consultant shall not discriminate in the employment of persons or in the provision of services under this Contract on the basis of any legally protected classification, including race, color, national origin, ancestry, sex or religion of such person.

a. TITLE VI

Title VI of the Civil Rights Act of 1964 requires that “no person in the United States shall, on the grounds of race, color, or national origin, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity receiving federal financial assistance.” (42 USC Section 2000d).
http://www.dol.gov/oasam/regs/statutes/titlevi.htm
.

The City of Stockton requires compliance with the requirements of Title VI in all of its programs and activities regardless of funding source.

b. DISCRIMINATION AND HARASSMENT POLICY

The City of Stockton has a Discrimination and Harassment Policy ( Exhibit D). The purpose of this policy is to reaffirm the City’s commit ment to demonstrating respect for all individuals by strictly prohibiting discrimination and harassment, including sexual harassment in the workplace, to define the types of behavior and conduct prohibited by this policy, and to set forth a procedure for reporting, investigating, and resolving complaints of discrimination and harassment in the workplace.

c. LABOR STANDARDS PROVISIONS/CALIFORNIA LABOR CODE

The bidder shall understand that conditions set forth in Chapter 1, Part 7, Division 2 of the California Labor Code shall be considered part of the contract
agreement.
https://leginfo.legislature.ca.gov/faces/codes_displayText.xht ml?lawCode=LAB&division=2.&title=&part=7.&chapter=1.&article=2.

d. PREVAILING WAGE RATES

Consultant and any subcontractor shall pay each employee engaged in the trade or occupation not less than the prevailing hourly wage rate. In accordance with the provisions of Section 1770 of the Labor Code, the Director of Department of Industrial Relations of the State of California has

ATTACHMENT A
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Professional Services Contract – SIEGFRIED ENGINEERING, INC. – PROJECT NO. OM-21-088 (Updated 12/31/20)

determined the general prevailing rates of wages and employer payments for health and welfare, pension, vacation, travel time, and subsistence pay as provided for in Section 1773.1, apprenticeship or other training programs authorized by Section 3093 and similar purposes applicable to the work to be done. Consultant performing the work under this contract shall obtain a copy of the wage rate determination and shall distribute copies to each subcontractor. As the wage determination for each craft reflec ts an expiration date, it shall be the prime Consultant and each subcontractor 's responsibility to insure that the prevailing wage rates of concern is current and paid to the employee.

i. The Consultant performing the work shall be responsible for obtaining a copy of the State wage rate determination. State wage rates may be obtained at
http://www.dir.ca.gov/OPRL/pwd/Determinations/Northern/Northern.p df. The Consultant shall be responsible for posting said wage rates at a prominent location at the work site and shall maintain same in a good readable condition for the duration of the work.

ii. Should the Consultant choose to work on a Saturday, Sunday or on a holiday recognized by the Labor Unions, the Consultant shall reimburse the C ity the actual cost of engineering, inspection, superintendence, and or other overhead expenses which are directly chargeable to the contract. Should such work be undertaken at the request of the C ity, reimbursement will not be required. To conform strictly with the provisions of Division 2, Part 7, Chapter 1, Article 2, of the Labor Code of the State of California. To forfeit as a penalty to City the sum of TWENTY -FIVE AND NO/100 DOLLARS ($25.00) fo r each laborer, worker, or mechanic employed by CONTRACTOR, or by any subcontractor under Consultant, in the execution of this contract, for each calendar day during which any laborer, worker, or mechanic is required or permitted to work more than eight (8) hours and who is not paid the general prevailing rate of per diem wages for holiday and overtime work in violation of the provisions of Sections 1770 to 1781 of the Labor Code of the State of California. That all sums forfeited under the provisions of the foregoing sections shall be deducted from the payments to be made under the terms of this contract.

iii. PAYROLL RECORDS - The Consultant to whom the contract is awarded shall insure that the prime and each subcontractor will, in accordance with Section 1776 of the Labor Code, maintain certified payroll records. A copy of said records shall be provided with each invoice to the Public Works Department, Attention: Contract Compliance Officer. It shall be the Consultant’s responsibility to obtain copies of the current prevailing wage rate determination for all

ATTACHMENT A
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Professional Services Contract – SIEGFRIED ENGINEERING, INC. – PROJECT NO. OM-21-088 (Updated 12/31/20)

subcontractors. Additionally, certified payroll records must be uploaded to the DIR website as required by labor code.

iv. APPRENTICESHIP STANDARDS - The Consultant shall comply with the provisions establi shed in Section 1777.5 of the Labor Code concerning the 1) certified approval by local joint apprenticeship committees for the employment and training of apprentices, and 2) contribution of funds to administer and conduct apprenticeship programs, if applicable to the job.

7. RIGHTS AND DUTIES OF CITY. City shall make available to Consultant all data and information in the possession of City which both parties deem necessary to complete the work, and City shall actively aid and assist Consultant in obtaining such information as may be deemed necessary from other agencies and individuals.

8. OBLIGATIONS OF CONSULTANT. Throughout the term of this Contract, Consultant represents and warrants that it has or will have at the time this Con tract is executed, all licenses, permits, qualifications, insurance, and approvals of whatsoever nature which are legally required for the Consultant to practice its professions, and Consultant shall, at its own cost and expense, keep in effect during the life of this Contract all such licenses, permits, qualifications, insurance, and approvals. Consultant shall meet with the Public Works Director or other personnel of City or third parties as necessary on all matters connected with the carrying out of Consultant’s services. Such meetings shall be held at the request of either party hereto. Consultant further warrants that it will follow the best current, generally accepted and professional practices to make findings, render opinions, prepare factual presentations, and provide professional advice and recommendations regarding this project.

9. OWNERSHIP OF WORK. All reports, drawings, designs, plan review comments, work product, and all other documents completed or partially completed by Consultant in the performance of this Contract shall become and remain the property of the City. Any and all copyrightable subject matter in all materials is hereby assigned to the City and the Consultant agrees to execute any additional documents that may be necessary to evidence such assignment. All materials shall be delivered to the City upon completion or termination of the work under this Contract. If any materials are lost, damaged, or destroyed before final delivery to the City, the Consultant shall replace them at its own expense. Consultant shall keep materials confidential. Materials shall not be used for purposes other than performance of services under this Contract and shall not be disclosed to anyone not connected with these services unless the City expressly provides prior written consent.

10. CONTRACT AMENDMENTS . City reserves the right to make such alterations as may be deemed necessary or advisable and to require such extra work as may be required for the proper completion of the work contemplated by Consultant. Any such changes will be set forth in a Contract Amendment which will specify, in addition to

ATTACHMENT A
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Professional Services Contract – SIEGFRIED ENGINEERING, INC. – PROJECT NO. OM-21-088 (Updated 12/31/20)

the work done in connection with the change made, adjustment of contract time, if any, and the basis of compensation for such work. A Contract Amendment will not become effective until approved by the authorized City official.

11. TERMINATION. The City may terminate this Contract at any time by mailing a notice in writing to Consultant. The Contract shall then be deemed terminated and no further work shall be performed by Consultant. If the Contract is so terminated, the Consultant shall be paid for that percentage of work actually completed at the time the notice of termination is received.

12. CONSULTANT STATUS. In performing the obligations set forth in this Contract, Consultant shall have the status of an independent contractor and Consul tant shall not be considered to be an employee of the City for any purpose. All persons working for or under the direction of Consultant are its agents and employees, and are not agents of the City. Subcontractors shall not be recognized as having any direct or contractual relationship with the City. The persons engaged in the work, including employees of subcontractors and suppliers, will be considered employees of Consultant.

The Consultant shall be responsible for the work of subcontractors, which shall be subject to the provisions of this Contract. The Consultant is responsible to the City for the acts and omissions of its subcontractors and persons directly or indirectly employed by them.

a. If in the performance of this Contract any third persons are employed by Consultant, such persons shall be entirely and exclusively under the direction, supervision, and control of Consultant. All terms of employment including hours, wages, working conditions, discipline, hiring, and discharging or any other term of employment or requirement of law shall be determined by Consultant.

i. It is further understood and agreed that Consultant must issue W -2 forms or other forms as required by law for income and employment tax purposes for all of Consultant’s personnel.

ii. As an independent contractor, Consultant hereby indemnifies and holds City harmless from any and all claims that may be made against the City based upon any contention by any third party that employer-employee relationship exists by reason of this Contract.

13. ASSIGNMENT. Consultant shall not assign, sublet, or transfer this Contract or any interest or obligation in the Contract without the prior written consent of the City, and then only upon such terms and conditions as City may set forth in writing. Consultant shall be solely responsible for reimbursing subcontractors.

14. HEADINGS NOT CONTROLLING. Headings used in the Contract are for reference purposes only and shall not be considered in construing this Contract.

ATTACHMENT A
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Professional Services Contract – SIEGFRIED ENGINEERING, INC. – PROJECT NO. OM-21-088 (Updated 12/31/20)

15. NOTICES. Any and all notices herein required shall be in writing and shall be sent by certified or registered mail, postage prepaid, addressed as follows:

To Consultant: Siegfried Engineering, Inc. To City: Public Works Director 3428 Brookside Road City of Stockton
Stockton, CA 95219 22 E. Weber Ave., Rm. 301
Stockton, CA 95202

16. LICENSES, CERTIFICATIONS, AND PERMITS. Prior to the City’s execution of this Contract and prior to the Consultant’s engaging in any operation or activity set forth in this Contract, Consultant shall obtain a City of Stockton business license, which must be kept in effect during the term of this Contract. Consultant covenants that it has obtained all certificates, licenses, permits and the like required to perform the services under this Contract.

17. RECORDS AND AUDITS. City reserves the right to periodically audit all charges made by Consultant to City for services under this Contract. Upon request, Consultant agrees to furnish City, or a designated representative, with necessary information and assistance.

Consultant agrees that City or its delegate shall have the right to review, obtain, and copy all records pertaining to performance of the Contract. Consultant agrees to provide City or its delegate with any relevant information requested, and shall permit City or its delegate access to its premises, upon reasonable notice, during normal business hours for the purpose of interviewing employees and inspecting and copying such books, records, accounts, and other material that may be relevant to a matter under investigation for the purposes of determining compliance with this Contract. Consultant agrees to maintain such records for a period of three years from the date that final payment is made.

18. CONFIDENTIALITY. Consultant shall exercise reasonable precautions to prevent the unauthorized disclosure and use of City reports, information or conclusions.

19. CONFLICTS OF INTEREST. Consultant covenants that other than this Contract, Consultant has no financial interest with any official, employee, or other representative of the City. Consultant and its principals do not have any financial interest in real property, sources of income or investment that would be affected in any manner or degree by the performance of Consultant’s services under this Contract. If such an interest arises, Consultant will immediately notify City.

20. WAIVER. In the event either City or Consultant at any time waive any breach of this Contract by the other, such waiver shall not constitute a waiver of any other or succeeding breach of this Contract, whether of the same or of any other covenant, condition, or obligation.

ATTACHMENT A
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Professional Services Contract – SIEGFRIED ENGINEERING, INC. – PROJECT NO. OM-21-088 (Updated 12/31/20)

21. GOVERNING LAW. California law shall govern any leg al action pursuant to this Agreement with venue for all claims in the Superior Court of the County of San Joaquin, Stockton Branch or, where applicable, in the federal District Court of California, Eastern District, Sacramento Division.

22. NO PERSONAL LIABIL ITY. No official or employee of City shall be personally liable to Consultant in the event of any default or breach by City or for any amount due Consultant.

23. INTEGRATION AND MODIFICATION. The response by Consultant to the Request for Proposals and the Request for Proposals on file with the City Clerk are hereby incorporated herein by reference to the extent that such documents do not differ from the provisions and terms of this Contract that shall supersede such response to Request for Proposals. This Contract represents the entire integrated agreement between Consultant and City, supersedes all prior negotiations, representations, or agreements, either written or oral, between the parties, and may be amended only by written instrument signed by Consultant and City. All exhibits and this contract are intended to be construed as a single document. Should any inconsistency occur between the specific terms of this Contract and the attached exhibits, the terms of this Contract will prevail.

24. SEVERABILITY. The provisions of this Contract are severable to the extent that should any of its provisions or terms be declared void in whole or in part by operation of law or agreement of the parties, the remainder of the provisions or terms not expressly declared void shall remain enforceable and in full effect.

25. THIRD PARTY RIGHTS. Nothing in this Contract shall be construed to give any rights or benefits to anyone other than City and Consultant.

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ATTACHMENT A
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Professional Services Contract – SIEGFRIED ENGINEERING, INC. – PROJECT NO. OM-21-088 (Updated 12/31/20)

26. AUTHORITY. The undersigned hereby represent and warrant that they are authorized by the parties to execute this Contract.

IN WITNESS WHEREOF: the parties have executed this Contract the day and year first hereinabove written.

CITY OF STOCKTON SIEGFRIED ENGINEERING, INC.

By: By:

HARRY BLACK Signature

CITY MANAGER

ATTEST:

Print Name

BY:

ELIZA R. GARZA, CMC Title:

CITY CLERK

APPROVED AS TO FORM:

BY:

DEPUTY CITY ATTORNEY

Paul J. Schneider
President

ATTACHMENT A
210
DETA

ILED SCOPE OF WORK
Task No. 1: Prep are Engineer’s Report including assessments and assessment diagrams for Stockton Consolidated Landscape Maintenance Assessment Districts No. 96-2
Based on the annual assessment formulas established in th e original Engineer’s Report for each zone in the Stockton Consolidated Landscape Maintenance Assessment District No. 96-2, Siegfried will calculate the proposed maximum allowable and proposed assessment to be levied against each parcel for the parcel’s share of the budget costs for the identified tax year and prepare the Assessment Roll for each zone for Tax Years 2022-23, 2023-24, 2024-25, 2025-26 and 2026-27.

Prior to the annual calculation, and based upon the monthly County data file transmitted to the City, Siegfried will identify all parcels having data that has changed from the previous tax year’s Assessor’s Roll for the purposed of updating data files and identifying changes to the Assessor Tax Roll.

Siegfried will identify all revised or added Assessor’s Maps.

Siegfried will determine the appropriate cost of living adjustment factor to be applied to each zone per the original Engineer’s Report for each zone and apply the cost-of-living adjustment factor to determine the maximum allowable assessment and assist the City to determining the actual annual assessment needed for budget needs.

Siegfr
ied will amend assessment diagrams and/or boundary maps to reflect any Assessor data changes or annexations into the zone.

Siegfried will record all amended diagrams for boundary maps, including payment of recording fees.

Siegfried will identify any suggested assessment increases, above and beyond the annual cost of living, against each parcel from the prior year’s assessment and meet with City staff to review any proposed increase in annual assessment that would trigger the Proposition 218 ballot process or otherwise require mailed notices.

Siegfried will prepare an Engineer’s Report to include: a description of the improvements to be maintained for the next tax year as provided by City; an estimate of maintenance and administrative costs as provided by the City; an estimate of the total assessments; and updated Assessment Diagram which is based upon the unchanged Assessment Diagram from the previous Annual Engineer’s Report of the preceding tax year and any added or revised Assessor’s Maps and including an Index Sheet of the District’s zones; the Assessment Roll by Assessor’s Parcel Number; and the assessment spread of the proposed assessments for the following tax year.

Siegfried will provide a total of six (6) hard copies and PDF an electronic copy of the Annual Engineer’s Report for the Stockton Consolidated Landscape Maintenance Assessment District No. 96-2, for approval by the City Council and staff; one hard copy of the report shall be provided to the District legal counsel.

Siegfried will attend a minimum of two (2) City Council meetings/public hearings pertaining to the District and up to four (4) staff meetings annually as necessary.

Siegfried will transmit to the San Joaquin County Auditor-Controller the approved Assessment Roll in the electronic media form and format as required by the San Joaquin County Auditor-Controller, no later than August 10 of each year, or the date indicated by the Assessor’s office if earlier than August 10th.

Task No. 2: Prepa
ration of Engineer’s Report for the Central Stockton Lighting Maintenance Assessment District (including assessments and assessment diagrams)
Based on the annual assessment formulas established in th e original Engineer’s Report for the Central Stockton Lighting Maintenance Assessment District, Siegfried will calculate the proposed maximum allowable and proposed assessment to be levied against each parcel for the parcel’s share of the budget costs for the identified tax year, and prepare the Assessment Roll for each zone for Tax Years 2022-23, 2023-24, 2024-25, 2025-26 and 2026-27.

Prior to the annual calculation, Siegfried will identify all parcels having data that has changed from the previous tax year’s Assessor’s Roll for the purposed of updating data files and identifying changes to the Assessor Tax Roll.

Siegfried will identify all revised or added Assessor’s Maps.

Siegfried will determine the appropriate cost of living adjustment factor to be applied to the zone per the original Engineer’s Report and apply the cost of living adjustment factor to determine the maximum allowable assessment and assist the City to determine the actual annual assessment needed for budget needs.

Siegfried will amend assessment diagrams and/or boundary maps to reflect any Assessor data changes or annexations into the zone.

EXHIBIT A

ATTACHMENT A
211

Siegfried will record all amended diagrams for boundary maps, including payment of recording fees.

Siegfried will identify any suggested assessment increases, above and beyond the annual cost of living, against each parcel from the prior year’s assessment and meet with City staff to review any proposed increase in annual assessment that would trigger the Proposition 218 ballot process or otherwise require mailed notices.

The Engineer’s Report will include: a description of the improvements to be maintained for the next tax year as provided by City; an estimate of administrative costs as provided by the City; an estimate of the total assessments; and updated Assessment Diagram which is based upon the unchanged Assessment Diagram from the previous Annual Engineer’s Report of the preceding tax year and any added or revised Assessor’s Maps and including an Index Sheet of the District’s zones; the Assessment Roll by Assessor’s Parcel Number; and the assessment spread of the proposed assessments for the following tax year.

Siegfried will prepare a total of thirteen (13) hard copies and one (1) electronic copy of the Annual Engineer’s Report for the City of Stockton; A total of six (6) hard copies and an electronic copy of the Annual Engineer’s Report for the Central Stockton Lighting Maintenance Assessment District shall be provided for approval by the City Council and staff; one (1) hard copy of report shall be provided to the District legal counsel.

Siegfried will attend a minimum of two (2) City Council meetings/public hearings pertaining to the District and four staff meetings annually as necessary.

Siegfried will transmit to the San Joaquin County Assessor the approved Assessment Roll in the electronic media form and format as required by the San Joaquin County Auditor-Controller, no later than August 10 of each year, or the date indicated by the Assessor’s office if earlier than August 10th.

Task 3: Deve
lopment and administration of Stockton Consolidated Landscape Maintenance Assessment District No. 96-2 annual budgets
Siegfried will be responsible for the development and ad ministration of the annual budgets for each zone of the Stockton Consolidated Landscape Maintenance Assessment District No. 96-2 annual budgets for Fiscal Years Tax Years 2022-23, 2023- 24, 2024-25, 2025-26 and 2026-27. The administrative process for the preliminary approval and public hearing in April and May is the same for both types of assessment districts.

DECEMBER - ANNUALLY
Siegfried will obtain from the City historical budget inf o rmation for maintenance assessment districts.

Siegfried will estimate utility expenses for the upcoming year using current detail budget report, historical utility expenses, and known or anticipated increases.

Siegfried will estimate maintenance costs using existing contracts for landscape maintenance, backflow testing, park maintenance, path sweeping, engineering services, etc.

Siegfried will estimate cost(s) for any proposed/potential capital projects for each zone for the upcoming year.

JANUARY - ANNUALLY
Siegfried will coordinate with the City and determine preliminary approval and public hearing City Agenda dates. Typically, these are
in mid-May and June, respectively. Public Hearing date in recent years has coincided with Council meeting at which the City budget is adopted. Legal notice must be published at least ten days prior to public hearing. That requires a five day working time after notice for publication is received by the City Clerk’s office. Siegfried shall submit so that there is adequate time between the Council meeting for Preliminary Approval/Setting Public Hearing for legal notice to be published. Transmit recommended Council Meeting dates to Municipal Service Center (Public Works, Operations and Maintenance) Supervising Office Assistant.

Once dates are approved by Public Works Director and City Manager’s Office, Siegfried will submit legal notices and plan on meeting attendance.

Siegfried will determine annual change in San Francisco/Oakland/Hayward consumer Price Index (CPI) to adjust maximum assessment for zones with annual escalator. Annual change time period is from December to December.

Siegfried will a develop draft budget to determine potential zone assessment total amount as well as the per parcel assessment in accordance with the criteria set forth in the original engineers report for that zone. The budget shall identify, if any, funds to be appropriated from the Reserve for Continuing Appropriations. The budget shall recommend the assessment be increased, decreased, or remain the same for each zone and provide justification.

Siegfried will submit the recommended budget action and detail to the Deputy Public Works Director, and once approved by the Public Works Director, finalize budget and assessments.

Siegfried will include the final budget and assessments in annual Engineer’s Report.

EXHIBIT A

ATTACHMENT A
212

Siegfried will review prior year’s Engineer’s Report for corrections and/or additions of parcels and/or improvements to be added or deleted. Send corrections and revisions to the appropriate staff preparing current year report.

Siegfried will determine date when Preliminary Approval Agenda item goes to Public Works Director for review and approval.

Request completed Engineer’s Report by that date.

Using the prior year’s Preliminary Approval Agenda Report as a guide, Siegfried will prepare Preliminary Approval Agenda Reports, attachments, Resolution and legal notice. If there are improvements to be added to a zone, those improvements must be specifically identified in the Agenda Report and Resolution.

Siegfried will finalize agenda report, attachments, Resolution and legal notice for approval.

Siegfried will transmit agenda report, attachments, Resolution and legal notice to O&M Supervising Office Assistant for preparation, formatting and routing to various steps in the approval process, fr o m the City Attorney’s office to the Park Manager, Deputy Public Works Director, and Public Works Director for approval prior to transmission to City Council.

MARCH - ANNUALLY
Using the prior year’s Public Hearing Agenda Report and Preliminary Approval Agenda Report as guides, Siegfried will prepare Pub
lic Hearing Agenda Report, attachments, Resolution and PowerPoint presentation. Incorporate any changes requested for Preliminary Approval item. The narrative for the staff report should also be prepared in case a report is requested at the Public Hearing.

Siegfried will transmit public hearing agenda report, attachments, Resolution and PowerPoint, as well as an electronic copy of the Engineer’s Report to OM Supervising Office Assistant for preparation and routing for approval.

The City Council will consider preliminary approval of budget, Engineer’s Report, levy of assessment and sets public hearing.

Siegfried will attend the meeting.

Once date is set for public hearing, Siegfried will transmit legal notice to City office staff and specify publication date.

Siegfried will review proof of notice and advise City Clerk of any necessary changes. If no changes, advise that it is acceptable for publication.

Siegfried work with the City staff to retain copy of published legal notice for files.

JUNE - ANNUALLY
City Council will conduct Public Hearing for approval o f Engineer’s Report, budget and levy of assessments. Siegfried will attend the meeting.

Siegfried will prepare amended assessment diagrams, if necessary.

Siegfried will transmit amended assessment diagrams to OM Supervising Office Assistance for City Clerk signature and Public Works Director signature, in that order.

Siegfried will transmit assessment diagrams to San Joaquin County Recorder for recording.

Siegfried will prepare Budget Amendment to distribute revenues from 072-6900 to individual expenditure accounts and transmit to Fiscal staff (or through OM Supervising Office Assistant) for processing.

August 1, confirm that firm is on track to submit assessment roll to San Joaquin County Auditor by August 10, and submit assessment on time for Country to place on tax roll.

Task 4: Deve
lopment and administration of Central Stockton Lighting Maintenance Assessment District annual budgets Siegfried will be responsible for the development and ad ministration of the annual budget for the Central Stockton Lighting Maintenance Assessment District annual budgets for Fiscal Years 2022-23, 2023-24, 2024-25 and 2025-26, and 2026-27.

The administrative process for the preliminary approval and public hearing in April and May is the same for both types of assessment districts.

DECEMBER - ANNUALLY
Siegfried will obtain historical budget information for maintenance assessment district.

Siegf
ried will estimate utility expenses for the upcoming year using current detail budget report, historical utility expenses, and known or anticipated increases.

Siegfried will estimate maintenance costs using existing contracts for lighting maintenance, engineering services, etc.

Siegfried will estimate cost(s) for any proposed/potential capital projects for each zone for the upcoming year.

JANUARY - ANNUALLY

EXHIBIT A

ATTACHMENT A
213

Siegfried will coordinate with the City and determine prelimin ary approval and public hearing City Agenda dates. Typically, these are in mid-May and June, respectively. Public Hearing date in reascent years has coincided with Council meeting at which the City budget is adopted. Legal notice must be published at least ten days prior to public hearing. That requires an approximate five days working time after notice for publication is received by the City Clerk’s office.

Siegfried will submit with adequate time between the Council meeting for Preliminary Approval/Setting Public Hearing for legal notice to be published. Transmit recommended Council Meeting dates to Municipal Service Center (Public Works, Operations and Maintenance) Supervising Office Assistant.

Once dates are approved by Public Works Director and City Manager’s Office, Siegfried will submit legal notices and plan on meeting attendance.

Siegfried will determine annual change in San Francisco/Oakland/Hayward consumer Price Index (CPI) to adjust maximum assessment for zones with annual escalator. Annual change time period is from December to December.

Siegfried will develop draft budget to determine potential per linear foot assessment and amount, if any, to be appropriated from the Reserve for Continuing Appropriations, and recommend per linear foot assessment increase, decrease or remain the same and provide justification.

Siegfried the recommended budget action and detail to the Deputy Public Works Director, and once approved by the Public Works Director, finalize budget and assessments.

Siegfried will include final budget and assessments in annual Engineer’s Report.

Siegfried will review prior year’s Engineer’s Report for corrections and/or additions of parcels and/or improvements to be added or deleted and send corrections and revisions to the appropriate staff preparing current year report.

Siegfried will determine date when Preliminary Approval Agenda item goes to Public Works Director for review and approval.

Request completed Engineer’s Report by that date.

Using the prior year’s Preliminary Approval Agenda Report as a guide, Siegfried will prepare Preliminary Approval Agenda Reports, attachments, Resolution and legal notice. If there are improvements to be added to a zone, those improvements must be specifically identified in the Agenda Report and Resolution.

Siegfried will finalize agenda report, attachments, Resolution and legal notice for approval.

Siegfried will transmit agenda report, attachments, Resolution and legal notice to O&M Supervising Office Assistant for preparation, formatting and routing to various steps in the approval process, from the City Attorney’s office to the Park Manager, Deputy Public Works Director, and Public Works Director for approval prior to transmission to City Council.

MARCH - ANNUALLY
Using the prior year’s Public Hearing Agenda Report and P reliminary Approval Agenda Report as guides, Siegfried will prepare Public Hearing Agenda Report, attachments, Resolution and PowerPoint presentation. Incorporate any changes requested for Preliminary Approval item. The narrative for the staff report should also be prepared in case a report is requested at the Public Hearing.

Siegfried will transmit public hearing agenda report, attachments, Resolution and PowerPoint, as well as an electronic copy of the Engineer’s Report to OM Supervising Office Assistant for preparation and routing for approval.

The City Council will consider preliminary approval of budget, Engineer’s Report, levy of assessment and sets public hearing.

Siegfried will attend the meeting.

Once date is set for public hearing, Siegfried will transmit legal notice to City office staff and specify publication date.

Siegfried will review proof of notice and advise City Clerk of any necessary changes. If no changes, advise that it is acceptable for publication.

Siegfried will work with City Staff to retain copies of published legal notice for file s.

JUNE - ANNUALLY
City Council will conduct Public Hearing for approval of Engineer’s Report, budget and levy of assessments. Siegfried will attend the
meeting.

Siegf
ried will prepare amended assessment diagrams.

Siegfried will transmit amended assessment diagrams to OM Supervising Office Assistance for City Clerk signature and Public Works Director signature, in that order.

Siegfried will transmit assessment diagrams to San Joaquin County Recorder for recording.

EXHIBIT A

ATTACHMENT A
214
Siegfried will prepare Budget Amendment to distribute revenues from 072-6900 to the individual expenditure account for the district and transmit to Fiscal staff (or through OM Supervising Office Assistant) for processing.

Siegfried will confirm by August 1, that project is on track to submit assessment roll to San Joaquin County Auditor by August 10, and submit assessment on time for Country to place on tax roll.

Task 5: Plan, coordinate and develop capital improvement projects for various zones within the City’s maintenance assessment districts.

In conjunction with Tasks 3 and 4 in December, Siegfried will annually evaluate the Siegfried prepared 2013 15-year Capital Improvement Program that evaluated the capital outlays and reserve appropriation through the year 2029 and annually assess the ongoing condition/life expectancy of amenities maintained throughout each district in order to coordinate with City of Stockton Public Works Department staff on capital improvement needs. Identified projects will need to be summarized with a current cost estimate and are submitted for budget approval each fall. It is assumed for the purpose of this scope of work and fee that no more than three (3) projects per year will be implemented. Additional projects may require additional fees depending on the magnitude of the three (3) included projects.

Support services will include responding to Requests for Information, reviewing submittals, providing written clarifications to plans, and attendance at selected meetings. Design is excluded unless specifically requested by the City and a contract amendment issued.

This work is assumed to be done on an hourly rate basis in accordance with the rate schedule associated with the FY the year the work is performed in. An estimated 130 hours is estimated in the fee proposal.

Task 6: Partic
ipate in the formation of new maintenance assessment districts Siegfried may be asked to participate in the formation or annexation of new maintenance assessment districts in accordance with the Landscaping and Lighting Act of 1972 (Act). This will require an updated reserve analysis, a new Engineer’s Report, and budget for the zone. The summary of actions for this includes a Resolution of Intent and Determination, Engineer’s Report, obtaining legal counsel, balloting, announcement and a hearing. The fee presented in the fee proposal is for the formation of a single typical new zone. The fee is per zone that is created.

Siegfried will utilize the subdivision map prepared by the developer to identify the number of residential and commercial properties (commercial property acreage will be needed).

Based upon improvement plans submitted by the developer Siegfried will inventory improvements to be maintained, which will include street landscaping, walls, entry monuments/signage, open space(s), park(s), street lighting, open space, park lighting, and any other improvements in a public way or rights-of-way that create a special benefit to the area being assessed.

Commercial properties will not be in the park assessment calculations. Commercial properties do not pay the Park Public Facility Fee and therefore should not be assessed for park maintenance.

Siegfried will use the Reserve Analysis and estimate of annual costs to determine both the annual expenditures and the reserve amounts to be set aside annually in order to provide service intervals and life cycles of improvements to assist in determining the proper assessment for the new zone of the district being formed.

Siegfried will prepare Engineer’s Report and associated diagrams and maps.

Siegfried will maintain contact with legal counsel to prepare notice and ballot .

This work is assumed to be done on an hourly rate basis in accordance with the rate schedule associated with the FY the year the work is performed in. An estimated 100 hours is set aside per zone formation in the fee proposal.

Task 7: Evalua te, Prepare, and Process Public Facility Fee reimbursement agreements Based upon the templates and documents provided by the Ci ty, if requested, Siegfried shall evaluate, prepare and process Public Facility Fee reimbursement agreements, as needed. For the purpose of this proposal eighty (80) hours per fiscal year of staff time has been allocated to this task. If additional time is required a contract amendment will be negotiated with the City.

Task 8: Review and comment on subdivision tentative maps and conditions, financial feasibility studies, development agreements, and im
provement plans as they pertain to maintenance assessment district budget impacts and forecasting If requested Siegfried will review and comment on subdivision tentative maps, studies, agreements, environmental impact reports, and improvement plans as they pertain to maintenance assessment district budget impacts and forecasting and provide written comments back to the referring agency/department. For the purpose of this proposal sixty (60) hours per fiscal year of staff time has been allocated to this task. If additional time is required a contract amendment will be negotiated with the City.

EXHIBIT A

ATTACHMENT A
215

PROFESSIONAL CLASSIFICATION HOURLY RATE
Managing Principal ................................................................................................. $261 Principal ................................................................................................................. $234 Senior Associate ..................................................................................................... $205 Associate ................................................................................................................ $183 Project
Engineer ..................................................................................................... $173 Engineer II .............................................................................................................. $159 Engineer I ............................................................................................................... $142 Project
Landscape Architect ................................................................................... $171 Landscape Architect II ............................................................................................ $148 Landscape Architect I ............................................................................................. $122 Project
Land Surveyor ............................................................................................. $173 Surveyor II .............................................................................................................. $157 Surveyor I ............................................................................................................... $138 Survey Crew, 2 Person ............................................................................................ $281 Survey Crew, 1 Person ............................................................................................ $186 Survey Party Chief .................................................................................................. $211 Instrumentman ....................................................................................................... $200 Chainmen/Rodman ................................................................................................. $138 Senior
Technician ................................................................................................... $138 Technician III ......................................................................................................... $122 Technician II .......................................................................................................... $105 Technician I.............................................................................................................. $90 Expert
Witness ........................................................................................................ $400 Cleri
cal ..................................................................................................................... $80

REIMBURS

ABLE EXPENSES
Printing, Copying, Materials, Etc.................................................................. Cost -+ 10% Mileage .................. In accordance with Federal Standard Mileage Reimbursement Rates NOTES

1. Instrumentman and Chainmen rates apply to services requiring Prevailing Wage ...

Rates for work performed at the job site.

2. These rates are effective 07/2021 and are subject to periodic adjustments.

These rates shall apply to the FY 2022-23 process and increase at a rate of 3% per FY.

EXHIBIT A

ATTACHMENT A
216
3428 Brookside Road
Stockton, CA 95219
209.942.0214
Task 1: LMD Engineering Report
District Name Zone 2022‐23 2023‐24 2024‐25 2025‐26 2026‐27 A‐1 $5,540.00 $5,706.00 $5,877.00 $6,053.00 $6,234.00
A‐2 $2,057.00 $2,118.00 $2,181.00 $2,246.00 $2,313.00
A‐3 $7,512.00 $7,737.00 $7,969.00 $8,208.00 $8,454.00
A‐4 $3,010.00 $3,100.00 $3,193.00 $3,288.00 $3,386.00
A‐5 $1,797.00 $1,850.00 $1,905.00 $1,962.00 $2,020.00
A‐6 $4,433.00 $4,565.00 $4,701.00 $4,842.00 $4,987.00
A‐7 $4,398.00 $4,529.00 $4,664.00 $4,803.00 $4,947.00
A‐10 $2,450.00 $2,523.00 $2,598.00 $2,675.00 $2,755.00
B‐1 $5,710.00 $5,881.00 $6,057.00 $6,238.00 $6,425.00
B‐2 $9,279.00 $9,557.00 $9,843.00 $10,138.00 $10,442.00 B‐3 $9,483.00 $9,767.00 $10, 060.00 $10,361.00 $10,671.00 B‐4 $5,554.00 $5,720.00 $5,891.00 $6,067.00 $6,249.00
B‐5 $3,957.00 $4,075.00 $4,197.00 $4,322.00 $4,451.00
C‐1 $4,043.00 $4,164.00 $4,288.00 $4,416.00 $4,548.00
C‐2 $6,603.00 $6,801.00 $7,005.00 $7,215.00 $7,431.00
C‐3 $6,208.00 $6,394.00 $6,585.00 $6,782.00 $6,985.00
C‐4 $2,423.00 $2,495.00 $2,569.00 $2,646.00 $2,725.00
C‐6 $3,028.00 $3,118.00 $3,211.00 $3,307.00 $3,406.00
C‐7 $4,245.00 $4,372.00 $4,503.00 $4,638.00 $4,777.00
D‐1 $2,857.00 $2,942.00 $3,030.00 $3,120.00 $3,213.00
D‐3 $2,388.00 $2,459.00 $2,532.00 $2,607.00 $2,685.00
D‐4 $2,198.00 $2,263.00 $2,330.00 $2,399.00 $2,470.00
D‐6 $3,051.00 $3,142.00 $3,236.00 $3,333.00 $3,432.00
E‐1 $4,607.00 $4,745.00 $4,887.00 $5,033.00 $5,183.00
E‐3 $2,844.00 $2,929.00 $3,016.00 $3,106.00 $3,199.00
E‐4 $4,506.00 $4,641.00 $4,780.00 $4,923.00 $5,070.00
E‐5 $3,016.00
$3,106.00 $3,199.00 $3,294.00 $3,392.00
Total $117,197.00 $120,699.00 $124,307.00 $128,022.00 $131,850.00

EXHIBIT B

ATTACHMENT A
217
Task 2: Central Lighting Engineering Report
District Name Zone 2022‐23 2023‐24 2024‐25 2025‐26 2026‐27 Central Lighting District $2,387.00 $2,458.00 $2,531.00 $2,606.00 $2,684.00 Task 3: LMD Administration
District Name Zone 2022‐23 2023‐24 2024‐25 2025‐26 2026‐27 A‐1 $1,200.00 $1,236.00 $1,273.00 $1,311.00 $1,350.00
A‐2 $1,200.00 $1,236.00 $1,273.00 $1,311.00 $1,350.00
A‐3 $1,200.00 $1,236.00 $1,273.00 $1,311.00 $1,350.00
A‐4 $1,200.00 $1,236.00 $1,273.00 $1,311.00 $1,350.00
A‐5 $1,200.00 $1,236.00 $1,273.00 $1,311.00 $1,350.00
A‐6 $1,200.00 $1,236.00 $1,273.00 $1,311.00 $1,350.00
A‐7 $1,200.00 $1,236.00 $1,273.00 $1,311.00 $1,350.00
A‐10 $1,200.00 $1,236.00 $1,273.00 $1,311.00 $1,350.00
B‐1 $1,200.00 $1,236.00 $1,273.00 $1,311.00 $1,350.00
B‐2 $1,200.00 $1,236.00 $1,273.00 $1,311.00 $1,350.00
B‐3 $1,200.00 $1,236.00 $1,273.00 $1,311.00 $1,350.00
B‐4 $1,200.00 $1,236.00 $1,273.00 $1,311.00 $1,350.00
B‐5 $1,200.00 $1,236.00 $1,273.00 $1,311.00 $1,350.00
C‐1 $1,200.00 $1,236.00 $1,273.00 $1,311.00 $1,350.00
C‐2 $1,200.00 $1,236.00 $1,273.00 $1,311.00 $1,350.00
C‐3 $1,200.00 $1,236.00 $1,273.00 $1,311.00 $1,350.00
C‐4 $1,200.00 $1,236.00 $1,273.00 $1,311.00 $1,350.00
C‐6 $1,200.00 $1,236.00 $1,273.00 $1,311.00 $1,350.00
C‐7 $1,200.00 $1,236.00 $1,273.00 $1,311.00 $1,350.00
D‐1 $1,200.00 $1,236.00 $1,273.00 $1,311.00 $1,350.00
D‐3 $1,200.00 $1,236.00 $1,273.00 $1,311.00 $1,350.00
D‐4 $1,200.00 $1,236.00 $1,273.00 $1,311.00 $1,350.00
D‐6 $1,200.00 $1,236.00 $1,273.00 $1,311.00 $1,350.00
E‐1 $1,200.00 $1,236.00 $1,273.00 $1,311.00 $1,350.00
E‐3 $1,200.00 $1,236.00 $1,273.00 $1,311.00 $1,350.00
E‐4 $1,200.00 $1,236.00 $1,273.00 $1,311.00 $1,350.00
E‐5 $1,200.00 $1,236.00 $1,273.00 $1,311.00 $1,350.00
Total $32,400.00 $33,372.00 $34,371.00 $35,397.00 $36,450.00

EXHIBIT B

ATTACHMENT A
218
Task 4: Central Lighting Administration
District Name Zone 2022‐23 2023‐24 2024‐25 2025‐26 2026‐27 Central Lighting District $2,700.00 $2,781.00 $2,864.00 $2,949.00 $3,037.00 Total Base Amount $154,684.00 $159,310.00 $164,073.00 $168,974.00 $174,021.00 Task 5: CIP Project Coordination
District Name Zone
Maximum three (3) projects (Estimates
total hours of 130) N/A $22,500.00
*Fee is hourly based upon the rate schedule applicable to the FY the work is performed in Task 6: District Formation Support
District Name Zone
Per Each New Zone (Estimated 100 hoursN/A $18,500.00
*Fee is hourly based upon the rate schedule applicable to the FY the work is performed in Task 7: PFF Reimbursement Agreements
District Name Zone
Maximum eighty (80) hours N/A $0.00
*Fee is hourly based upon the rate schedule applicable to the FY the work is performed in Task 8: Development Plan Review
District Name Zone
Maximum sixty (60) hours N/A $15,000.00
*Fee is
hourly based upon the rate schedule applicable to the FY the work is performed in Total As‐Needed Amount $56,000.00
Total NTE Amount $877,062.00

EXHIBIT B

ATTACHMENT A
219
NOTE: The City of Stockton is now using the online insurance program PINS Advantage. Once you have been awarded a contract you will receive an email from the City’s online insurance program requesting you to forward the email to your insurance provider(s).

Exhibit C:

Insurance Requirements for Professional Services
Contractor shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder by the Contractor, its agents, representatives, or employees.

MINIMUM SCOPE AND LIMIT OF INSURANCE
Coverage shall be at least as broad as:

1. Commercial General Liability (CGL): Insurance Services Office Form CG 00 01 covering CGL on an “occurrence” basis, including products and completed operations, property damage, bodi
ly injury and personal & advertising injury with limits no less than $2,000,000 per occurrence. If a general aggregate limit applies, either the general aggregate limit shall apply separately to this project/location (ISO CG 25 03 or 25 04) or the general aggregate limit shall be twice the required occurrence limit.

2. Automobile Liability: Insurance Services Office F orm Number CA 0001 covering, Code 1 (any auto), or if Contractor has no owned autos, Code 8 (hired) and 9 (non- owned), with limit no less than $1,000,000 per accident for bodily injury and property damage.

3. Workers’ Compensation insurance as required by the State of California, with Statutory Limits, and Employer’s Liability Insurance with limit of no less than $1,000,000 per accident for bodily injury or disease.
(Not required if Contractor provides wr itten verification it has no employees)

4. Professional Liability (Errors and Omissions) Insurance appropriate to the Contractor’s profession, with limit no less than $2,000,000 per occurrence or claim, $2,000,000 aggregate. (If Claims-made, see below.)
It shall be a requirement under this agreement that any available insurance proceeds broader than or in excess of the specified minimum insurance coverage requirements and/or limits shall be available to the Additional Insured. Furthermore, the requirements for coverage and limits shall be (1) the minimum coverage and limits specified in this Agreement; or (2) the broader coverage and maximum limits of coverage of any Insurance policy or proceeds available to the named insured; whichever is greater. No

EXHIBIT C

ATTACHMENT A
220

representation is made that the minimum insurance requirements of this agreement are sufficient to cover the obligations of the Contractor under this agreement.

Limits of Insurance

The limits of insurance required in this agreement may be satisfied by a combination of primary and umbrella or excess insurance. Any umbrella or excess insurance shall contain or be endorsed to contain a provision that such coverage shall also apply on a primary and non-contributory basis before the City’s own insurance or self-insurance shall be called upon to protect it as a named insured.

Other Insurance Provisions
The insurance policies are to contain, or be endorsed to contain, the following provisions:

Additional Insured Status

The City of Stockton, its officers, officials, employees, and volunteers are to be covered as additional insureds on the CGL policy with respect to liability arising out of work or operations performed by or on behalf of the Contractor including materials, parts, or equipment furnished in connection with such work or operations. General liability coverage can be provided in the form of an endorsement to the Contractor’s insurance (at least as broad as ISO Form CG 20 10 11 85 or if not available, through the addition of both CG 20 10, CG 20 26, CG 20 33, or CG 20 38; and CG 20 37 if a later edition is used). Additional insured Name of Organization shall read “City of Stockton, its officers, officials, employees, and volunteers.” Policy shall cover City of Stockton, its officers, officials, employees, and volunteers for all locations work is done under this contract.

Primary Coverage

The Additional Insured coverage under the Contractor’s policy shall be “primary and non-contributory” and will not seek contribution from the City’s insurance or self- insurance and shall be at least as broad as CG 20 01 04 13. The City of Stockton does not accept endorsements limiting the Contractor’s insurance coverage to the sole negligence of the Named Insured.

Notice of Cancellation

Each insurance policy required above shall state that coverage shall not be canceled, except with notice to the City of Stockton.

EXHIBIT C

ATTACHMENT A
221

Waiver of Subrogation

Contractor hereby grants to City of Stockton a waiver of any right to subrogation which any insurer of said Contractor may acquire against the City of Stockton by virtue of the payment of any loss under such insurance. Contractor agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation, but this provision applies regardless of whether or not the City of Stockton has received a waiver of subrogation endorsement from the insurer. The Workers’ Compensation policy shall be endorsed with a waiver of subrogation in favor of the City of Stockton for all work performed by the Contractor, its employees, agents and subcontractors.

Self-Insured Retentions
All Self-insured retentions must be disclosed to Risk Management for approval and shall not reduce the limits of liability. The City of Stockton may require the Contractor to purchase coverage with a lower retention or provide proof of ability to pay losses and related investigations, claim administration, and defense expenses within the retention.

The policy language shall provide, or be endorsed to provide, that the self-insured retention may be satisfied by either the named insured or City of Stockton.

Acceptability of Insurers

Insurance is to be placed with insurers with a current A.M. Best’s rating of no less than A:VII, unless otherwise acceptable to the City of Stockton.

Claims Made Policies (note – applicab le only to professional liability)

If any of the required policies provide coverage on a claims-made basis:

1. The Retroactive Date must be shown and must be before the date of the contract or the beginning of contract work.

2. Insurance must be maintained and evidence of insurance must be provided for at least five (5) years after completion of the contract of work.

3. If coverage is canceled or non-renewed, and not replaced with another claims- made policy form with a Retroactive Date prior to the contract effective date, the Contractor must purchase “extended reporting” coverage for a minimum of five (5) years after completion of contract work.

EXHIBIT C

ATTACHMENT A
222

Verification of Coverage

Contractor shall furnish the City of Stockton with original certificates and amendatory endorsements or copies of the applicable policy language effecting coverage required by this clause. All certificates and endorsements are to be received and approved by the City of Stockton Risk Services before work commences. However, failure to obtain the required documents prior to the work beginning shall not waive the Contractor’s obligation to provide them. The City of Stockton reserves the right to require complete, certified copies of all required insurance policies, including endorsements required by these specifications, at any time.

Contractor shall, prior to the commencement of work under this Agreement, provide the City of Stockton with a copy of its declarations page(s) and endorsement page(s) for each of the required policies.

Subcontractors

Contractors shall require and verify that all subcontractors, or other parties hired for this work, purchase and maintain coverage for indemnity and insurance requirements as least as broad as specified in this agreement to the extent they apply to the scope of the subcontractor’s work with the same certificate of insurance requirements and naming as additional insureds all parties to this contract. Contractor shall include the following language in their agreement with Subcontractors: “Subcontractors hired by Contractor agree to be bound to Contractor and City in the same manner and to the same extent as Contractor is bound to City under the contract documents and provide a valid certificate of insurance and the required endorsements included in the agreement as proof of compliance prior to commencement of any work and to include this same requirement for any subcontractors they hire for this work. A copy of the owner contract document indemnity and insurance provisions will be furnished to the subcontractor upon request.” Contractor shall provide proof of such compliance and verification to the City upon request.

Special Risks or Circumstances

City of Stockton reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances.

Certificate Holder Address
Proper address for mailing certificates, endorsements and notices shall be:

City of Stockton Attn: City Risk Services
400 E Main Street, 3rd Floor – HR
Stockton, CA 95202

EXHIBIT C

ATTACHMENT A
223
I.

II.

CITY OF STOCKTON, CALIFORNIA

CITY MANAGER ADMINISTRATIVE DIRECTIVE
Subject: Directive No. HR-15 Page No.1 of 14
DISCRIMINATION AND Effective Date: Revised From: HARASSMENT POLICY 7/27/09 5/1/2015 4/6/09
3/1/2010
(see below)
PER-015 (Sexual Harassmenl in lhe Workplace) revised from 10121/94, 511195, 1/1/98 PER�037 (Sexual Harassment lnvestigalive Procedures) revised from 2/15/93

PURPOSE
The purpose of this policy is to reaffirm the City's commitment to demonstrating respect for all individuals by strictly prohibiting discrimination and harassment, including sexual harassment in the workplace. This policy defines prohibited behavior and conduct, and sets forth a procedure for reporting, investigating and resolving complaints of discrimination, harassment, in the workplace, including retaliation and hostile work environment.

POLICY
A The City of Stockton prohibits any form of discrimination and/or harassment of any person based on race, religious creed, color, national origin, ancestry, military and veterans status, physical or mental disability, medical condition, genetic characteristics or information, denial of family and medical care leave, marital status, sexual orientation, sex (including gender, gender identity, gender expression, transgender, pregnancy, childbirth and breastfeeding), political affiliation, age (40 and older), concerted labor activity, or any other category or attribute consistent with state or federal law.

All such discrimination and harassment is unlawful and shall not be tolerated. In addition, under the federal Affordable Care Act (ACA), the City of Stockton prohibits discrimination and/or harassment, or retaliation against an employee who obtains coverage, receives a tax credit or subsidy through the Health Care "Market Place" or "Exchange."
B. It is an unlawful employment practice to discriminate against or to harass an unpaid intern or volunteer on the basis of any legally protected classification unless an exception applies, such as a bona fide occupational qualification.

C. The City will neither tolerate nor condone discrimination and/or harassment of employees by managers, supervisors, co-workers, or non-employees with whom City employees have a business service, or professional relationship.

D. All City employees and non-employees share a responsibility to assist in

EXHIBIT D

ATTACHMENT A
224
Subject:

CITY OF STOCKTON, CALIFORNIA

CITY MANAGER ADMINISTRATIVE DIRECTIVE
Directive No. HR-15 Page No. 2 of 14
DISCRIMINATION AND Effective Date: Revised From: HARASSMENT POLICY 7/27/09 5/1/2015 4/6/09
3/1/2010
(see below)
PER-015 (Sexual Harassment ,n the Workplace) revised from 10/21194, 511195, 111198 PER-037 (Sexual Harassment Investigative Procedures) revised from 2/15/93 maintaining an employment environment free of discrimination and harassment. This policy applies to all aspects of City employment, including, but not limited to, hiring, reassignment, placement, promotion, employment action, disciplinary action, layoff, reemployment, transfer, leave of absence, compensation and benefits, training; or other terms of treatment of that person in an unpaid internship, or another limited duration program to provide unpaid work experience for that person, or the harassment of an unpaid intern or volunteer.

E. All allegations of discrimination and/or harassment shall be investigated immediately by the City, in accordance with this policy. If it is determined that any prohibited activity has occurred, remedial action shall be taken. Such action may include discipline up lo and including discharge. In addition, under applicable law, individual supervisors and employees may be subject to personal liability and/or punitive damages in any litigation arising as a resu It of such conduct.

F. All new hires shall attend harassment awareness training, and supervisors and managers shall attend harassment awareness and prevention training for supervisors every two years.

G. The City of Stockton prohibits retaliation against any employee or non­ employee by another employee, non-employee, supervisor, or manager for reporting, filing, testifying, assisting or participating in any manner in any investigation, proceeding, or hearing conducted by the employer or a federal or state enforcement agency.

H. This policy applies to all officials, employees, volunteers, unpaid interns, agents, or contractors of the City.

I. This policy shall be administered by the Director of Human Resources.

EXHIBIT D

ATTACHMENT A
225
Subject:

CITY OF STOCKTON, CALIFORNIA

CITY MANAGER ADMINISTRATIVE DIRECTIVE
Directive No. HR-15 Page No. 3 of 14
DISCRIMINATION AND Effective Date: Revised From: HARASSMENT POLICY 7/27/09 5/1/2015 4/6/09
3/1/2010
(see below)
PER-015 (Sexual Harassment in the Workplace) revised from 10121/94, 511195.111198 PER�037 (Sexual Harassment Investigative Procedures) revised from 2/15/93 Ill. DEFINITION AND EXAMPLES OF DISCRIMINATION AND HARASSMENT A "Discrimination," as used in this policy, is any action, behavior, practice, or process that is intended to deny, or results in the denial of, employment rights, privileges, or benefits because of a person's race, religious creed, color, national origin, ancestry, military and veterans status, physical or mental disability, medical condition, genetic characteristics or information, denial of family and medical care leave, marital status, sexual orientation, sex (including gender, gender identity, gender expression, transgender, pregnancy, childbirth and breastfeeding), political affiliation, age (40 and older), concerted labor activity, or any other prohibition identified under state and federal law. The following are examples of conduct that may constitute discrimination:

1. Soliciting applications from a source where all or most of potential workers are of the same race or color.

2. Considering a person's gender as the basis for differences in pay, work assignments, performance evaluations, training, discipline, or any other area of employment; and

3. Questioning a job applicant about the existence, nature and severity of a disability.

B. "Harassment," as used in this policy, consists of any conduct affecting another person because of his or her race, religious creed, color, national origin, ancestry, military and veterans status, physical or mental disability, medical condition, genetic characteristics or information, denial of family and medical care leave, marital status, sexual orientation, sex (including gender, gender identity, gender expression, transgender, pregnancy, childbirth and breastfeeding), political affiliation, age (40 and older), concerted labor activity, or any other category or attribute identified under state and federal law when such conduct has the purpose or the effect of: (1) creating an intimidating, hostile or offensive work environment; (2) unreasonably interfering with the employee's or non-employee's work performance; or (3)

EXHIBIT D

ATTACHMENT A
226
Subject:

CITY OF STOCKTON, CALIFORNIA

CITY MANAGER ADMINISTRATIVE DIRECTIVE
Directive No. HR-15 Page No. 4 of 14
DISCRIMINATION AND Effective Date: Revised From: HARASSMENT POLICY 7/27/09 5/1/2015 4/6/09
3/1/2010
(see below)
PER-015 (Sexual Harassment ,n lhe Workplace) revised from 10/21/94, 5/1/95, 1/1/98 PER-037 {Sexual Harassment Investigative Procedures) revised from 2/15/93 otherwise adversely affecting an employee's or non-employee's employment opportunities.

Harassment may take many forms, including, but not limited to, the following examples:

1. Verbal Harassment: Epithets, derogatory and offensive comments or slurs based on race, religion, color, national origin, ancestry, physical or mental disability, marital status, pregnancy, medical condition, gender, sexual orientation, political affiliation, age, or any other category or attribute identified under state and federal law.

2. .!:h�ical Harassment: Assault, impeding or blocking movement that results in the physical interference with normal work or movement on the basis of race, religion, color, national origin, ancestry, physical or mental disability, marital status, pregnancy, medical condition, gender, sexual orientation, political affiliation, age, or any other category or attribute identified Lmder state and federal law.

3. Visual Harassment: The displaying of posters, photography, notices, bulletins, e-mails, cartoons or drawings with derogatory and offensive content based on race, religion, color, national origin, ancestry, physical or mental disability, marital status, pregnancy, medical condition, gender, sexual orientation, political affiliation, age, or any other category or attribute identified under state and federal law.

C. "Sexual harassment," as used in this policy, is a subcategory of harassment, and is specifically defined by law as unwanted sexual advances, requests for sexual favors or visual, verbal or physical conduct of a sexual nature when:

1. Submission to such conduct is made a term or condition of employment; or

2. Submission to or rejection of such conduct is used as a basis for employment decisions affecting the individual; or

EXHIBIT D

ATTACHMENT A
227
Subject:

CITY OF STOCKTON, CALIFORNIA

CITY MANAGER ADMINISTRATIVE DIRECTIVE
Directive No. HR-15 Page No. 5 of 14
DISCRIMINATION AND Effective Date: Revised From: HARASSMENT POLICY 7/27/09 5/1/2015 4/6/09
3/1/2010
(see below)
PER-015 {Sexual Harassment m the Workplace) revised from 10121/94, 511195, 111/98 PER-037 (Sexual Harassment Investigative Procedures) revised from 2115193

3. Such conduct has the purpose or effect of unreasonably interfering with an employee's or non-employee's work performance or creating an intimidating, hostile or offensive working environment because of the persistent, severe or pervasive nature of the conduct.

Examples of Sexual Harassment include, but are not limited to the following:
a. Unwelcome sexual overtures or propositions.
b. Offering employment benefits or status in exchange for sexual favors.
c. Mal<ing or threatening retaliation after a negative response to sexual advances.
d. Visual conduct such as leering, making sexual gestures, displaying sexually suggestive objects or pictures, cartoons, calendars or posters.
e. Verbal conduct such as using epithets or slurs, telling sexually explicit jokes, or making derogatory or suggestive comments about a person's body or dress.
f. Written communications of a sexual nature distributed in hard copy, soft copy or via a computer network.
g. Verbal abuse of a sexual nature, graphic verbal commentary about an individual's body, sexually degrading words to describe an individual, suggestive or obscene letters, notes or invitations.
h. Physical conduct such as touching, assaulting, impeding or blocking movements.

EXHIBIT D

ATTACHMENT A
228
Subject:

CITY OF STOCKTON, CALIFORNIA

CITY MANAGER ADMINISTRATIVE DIRECTIVE
Directive No. HR-15 Page No. 6 of 14
DISCRIMINATION AND Effective Date: Revised From: HARASSMENT POLICY 7/27/09 5/1/2015 4/6/09
3/1/2010
(see below)
PER-015 (Sexual Harassment In the Workplace) revised from 10/21/94, 5/1/95, 1/1/98 PER"037 (Sexual Harassment Investigative Procedures} revised from 2/15/93 i. Retaliation for making harassment reports or threatening to report harassment.

D. Affordable Care Act (ACA) Anti-Retaliation
Pursuant to section §1558 of the Affordable Care Act, the City prohibits discrimination or retaliation towards any employee who:

1. Receives a health insurance tax credit or subsidy through the Health Care "Marketplace" or "Exchange", by which can trigger a penalty payable by the employer;

2. Reports potential violations of protections afforded under Title I of the Act, which provides guaranteed availability protections among other things;

3. Testifies in a proceeding concerning such violation;

4. Assists or participates in a proceeding concerning a violation; or

5. Objects to, or refuses to participate in, any activity, policy, practice, or assigned task that the employee reasonably believes to be in violation of any provision of the Title I of the Act.

An employee who believes that he or she has been discharged or otherwise discriminated against in violation of section §1558 of the Affordable Care Act may seek relief in accordance with the procedures, notifications, burdens of proof, remedies, and statutes of limitation set forth in section 2087(b) of title 15, United States Code.

IV. REPORTING AND COMPLAINT PROCEDURES
A Immediate Action Required
The City's reporting and complaint procedures provide for an immediate, thorough and objective investigation of discrimination or harassment claims, appropriate disciplinary action taken against any person found to have engaged in prohibited behavior, and appropriate alternative remedies to any

EXHIBIT D

ATTACHMENT A
229
Subject:

CITY OF STOCKTON, CALIFORNIA

CITY MANAGER ADMINISTRATIVE DIRECTIVE
Directive No. HR-15 Page No. 7 of 14
DISCRIMINATION AND Effective Date: Revised From: HARASSMENT POLICY 7/27/09 5/1/2015 4/6/09
3/1/2010
(see belowl
PER-015 (Sexual Harassment In the Workplace} revised from 10/21/94, 5/1/95, 1/1/98 PERM037 (Sexual Harassment Investigative Procedures) revised from 2/15/93 employee or non-employee subject to discrimination or harassment. To accomplish this, such incidents must be reported immediately to a supervisor or manager.
1, Employee's and Non-Employee's Responsibilities when Subjected to Discrimination and/or Harass_lI)eaj
a. Employees or non-employees who believe they have been subjected to discrimination or harassment, or are aware of discrimination or harassment against others, shall report the situation immediately to his/her supervisor or manager, except as specified in subsection (b), below. Employees and non­ employees shall report any such incidents occurring in the workplace, whether committed by coworkers, supervisors or managers, or third persons doing business with the City, such as customers or vendors, or other non-employees. If
comfortable doing so, an employee or non-employee who has a complaint of discrimination or harassment is encouraged to directly inform the person(s) engaging in the behavior that such conduct is offensive and insist the behavior to stop.
b. Employees and non-employees must immediately contact a supervisor or manager to register a complaint of discrimination or harassment, unless that supervisor or manager is the individual engaging in the unwanted behavior. In that case, the employee or non-employee may contact someone at the next supervisory level. If the employee or non-employee feels uncomfortable dealing directly with his or her immediate supervisor or manager, he or she may contact the department head, or the Director of Human Resources (or either of their designees) to register a complaint of discrimination or harassment.
c. Employees and non-employees may file a formal complaint of harassment or discrimination with their department head or

EXHIBIT D

ATTACHMENT A
230
Subject:

CITY OF STOCKTON, CALIFORNIA

CITY MANAGER ADMINISTRATIVE DIRECTIVE
Directive No. HR-15 Page No. 8 of 14
DISCRIMINATION AND Effective Date: HARASSMENT POLICY Revised From:
7/27/09
5/1/2015 4/6/09
3/1/2010
(see below)
PER-015 (Sexual Harassment ,n the Workplace) revised from 10121194, 511195, 111198 PER-037 (Sexual Harassment lnvesligallve Procedures) revised from 2115193 with Human Resources. To assist the City in conducting a thorough investigation, complaints shall be submitted in writing and shall include specific details of the incident(s), the names of the individuals involved, the names of any witnesses, and any documentary evidence (notes, pictures, cartoons, etc.) that will corroborate the allegations.
d. Employees and non-employees shall immediately report any retaliation to a supervisor, manager, department head or Director of Human Resources (or designee). All retaliation complaints shall be immediately, objectively and thoroughly investigated in accordance with the investigation procedures.

If a report of retaliation is substantiated, appropriate disciplinary action, up to and including discharge shall be taken.

2. Supervisor's or Manager's Responsibilities to Eliminate Discrimination and/or Harassment
a. A supervisor or manager is responsible for enforcing the City's discrimination and harassment policy. Supervisors or
managers must ensure that all employees and non-employees are aware of the City's policy through open discussion of the policy at staff meetings and by posting the policy in a conspicuous location accessible to all staff members.
b. A supervisor or manager shall be cognizant of employees' and non-employees' behavior and shall not permit any employee or non-employee under their supervision to be subjected to or engage in any conduct prohibited by this policy.
c. A supervisor or manager who observes conduct prohibited by this policy shall immediately direct the employee or non­ employee to cease the conduct.

EXHIBIT D

ATTACHMENT A
231
Subject:

CITY OF STOCKTON, CALIFORNIA

CITY MANAGER ADMINISTRATIVE DIRECTIVE
Directive No. HR-15 Page No. 9 of 14
DISCRIMINATION AND Effective Date: Revised From: HARASSMENT POLICY 7/27/09 5/1/2015 4/6/09
3/1/2010
(see below)
PER-015 (Sexual Harassment In the Workplace) revised from 10/21/94, 5/1/95, 111/98 PER-037 (Sexual Harassment Investigative Procedures) revised from 2/15/93 d. A supervisor or manager who receives a complaint of
prohibited conduct is required to take the complaint seriously, and report the matter immediately to the department head; be supportive of the complainant; ensure there is no retaliation against the complainant; conduct an internal fact-finding review into the allegations; obtain as much detailed information as possible; thoroughly document the findings; communicate in written form to the parties the resolution of the complaint; and report to and consult with the Human Resources Department promptly, without delay.

B. Confidentiality. The City will make every effort to protect the privacy and confidentiality of all parties involved, as well as any information and/or documentation obtained, to the extent possible consistent with a thorough investigation.

C. Penalty for Non-Compliance. The City shall take disciplinary action, up to and including discharge, against any supervisor or manager who fails in his/her responsibility to take immediate action in response to an employee's or non-employee's complaint of discrimination or harassment. Further, such disciplinary action shall be taken against a supervisor or manager who fails to stop discriminatory or harassing conduct committed in his/her presence or to stop such conduct about which the supervisor or manager has knowledge.

V. INVESTIGATION PROCEDURES
A. Determination of Responsibility for Investigation
If a formal complaint is filed with the department head or the Director of Human Resources (or either of their designees), the department head and the Director of Human Resources shall consult with one another to determine whether the department or Human Resources shall conduct the fact-finding investigation into the allegations. Either the department head or the Director of Human Resources (or either of their designees), depending on who is

EXHIBIT D

ATTACHMENT A
232
Subject:

B.

CITY OF STOCKTON, CALIFORNIA

CITY MANAGER ADMINISTRATIVE DIRECTIVE
Directive No. HR-15 Page No.10 of 14
DISCRIMINATION AND Effective Date: Revised From: HARASSMENT POLICY 7/27/09 5/1/2015 4/6109
3/1/2010
(see below)
PER-015 (Sexual Harassment ,n the Workplace) revised from 10/21/94, 5/1/95, 1/1/98 PER�037 (Sexual Harassment Investigative Procedures) revised from 2/15/93 responsible for the investigation, shall issue written notification to the complainant and alleged harasser(s). The notification shall specify the nature of the complaint, and inform the parties that an investigation into the allegations of discrimination and/or harassment shall be conducted.

Investigative Guidelines
The investigation shall include the following steps taken in the order best suited to the circumstances:

1. Identify and preserve the evidence.

2. Confirm the name and position of the complainant. Interview the complainant.

3. Allow the complainant the opportunity to place the complaint in writing.

4. Obtain the identity of the alleged harasser(s).

5. Obtain as many details as possible regarding the incident(s) that prompted the complaint, including the number of occurrences, dates, times, locations, and witnesses (if applicable).

6. Ascertain how the complainant felt about the alleged incident when it occurred; complainant's response(s) to the alleged behavior; and witness statements (if applicable).

7. Ascertain if any threats or promises were made in connection with the alleged harassment.

8. Ascertain if the complainant knows of or suspects that there are other victims of harassment by the same person(s).

9. Ascertain whether the complainant has spoken to anyone, especially

EXHIBIT D

ATTACHMENT A
233

CITY OF STOCKTON, CALIFORNIA

CITY MANAGER ADMINISTRATIVE DIRECTIVE
Subject: Directive No. HR-15 Page No.11 of 14
VI.

DISCRIMINATION AND Effective Date: Revised From: HARASSMENT POLICY 7/27/09 5/1/2015 4/6/09
3/1/2010
/see below)
PER-015 (Sexual Harassment In the Workplace) rev,sed from 10/21/94, 5/1/95, 1/1/98 PER�037 (Sexual Harassment Investigative Procedures) revised from 2/15/93 supervisors, about the harassment.

10. Ascertain what resolution would be acceptable to the complainant.

11. Interview the alleged harasser to get his or her side of the story, including any possible motivation for a false allegation.

12. Interview witnesses who were identified by the complainant regarding the alleged harasser or other persons identified during the investigation.

13. Interview witnesses who were identified by the alleged harasser or other persons identified during the investigation.

14. Advise all participants that the investigation is "confidential" and not to engage in any retaliatory conduct, as such conduct is subject to disciplinary action up to and including discharge. Confidentiality will be maintained to the ex.tent possible. An individual who is interviewed during the course of an investigation is prohibited from discussing the substance of the interview, except as otherwise directed by a supervisor or the Director of Human Resources. Any individual who discusses the content of an investigatory interview will be subject to discipline or other appropriate sanction.

15. Conduct follow-up interviews, if warranted.

16. Prepare report of findings and discuss with management and designated legal staff.

RESPONDING TO THE COMPLAINT
A Following the completion of the fact-finding investigation, either the department head or the Director of Human Resources (or either of their designees), depending on who is responsible for the investigation, shall

EXHIBIT D

ATTACHMENT A
234
Subject:

CITY OF STOCKTON, CALIFORNIA

CITY MANAGER ADMINISTRATIVE DIRECTIVE
Directive No. HR-15 Page No.12 of 14
DISCRIMINATION AND Effective Date: Revised From: HARASSMENT POLICY 7/27/09 5/1/2015 4/6/09
3/1/2010
(see below)
PER-015 (Sexual Harassment in the Workplace) revised from 10/21/94, 511195, 1/1/98 PER·037 (Sexual Harassment lnvesligalive Procedures) revised from 2/15/93 make a report of findings, along with a recommendation regarding the appropriate remedial action to be taken, if warranted. The recommendation shall be made after reviewing the findings of the investigation, giving consideration to all factual information, the nature of the alleged conduct, and the totality of the circumstances. If the investigation was conducted by the Director of Human Resources, or designee, the Director, or designee, shall confer with the affected department head and both shall concur on the remedial action to be taken, if any. If the investigation was conducted by the department head, the department head shall confer with the Director of Human Resources prior to making the report of findings and both shall concur on the remedial action to be taken, if any.

B. If either the department head or the Director of Human Resources does not concur with the findings and recommendation of the other, the City Attorney (or designee) shall review and resolve the matter in dispute.

C. Report of findings and recommendation shall be treated as a confidential document and no other distribution shall be made without first consulting with the City Attorney's Office. A completed investigation report will not be disclosed, except as it is deemed necessary to support a disciplinary action, to take remedial action, to defend the City in adversarial proceedings, or to comply with the law or court order.

D. Either the department head or the Director of Human Resources (or either of their designees), depending on who is responsible for the investigation shall provide a written response to the complainant and the person alleged lo have committed the misconduct, discrimination and/or harassment. The response shall include a copy of the City's discrimination and harassment policy and a memorandum indicating the City's determination as to whether the complaint is:

1. Unsustained: The investigation failed to disclose sufficient evidence to substantiate the allegation(s).

2. Unfounded: The investigation proved that the act(s) or omission(s)

EXHIBIT D

ATTACHMENT A
235
Subject:

CITY OF STOCKTON, CALIFORNIA

CITY MANAGER ADMINISTRATIVE DIRECTIVE
Directive No. HR-15 Page No. 13 of 14
DISCRIMINATION AND Effective Date: Revised From: HARASSMENT POLICY 7/27/09 5/1/2015 4/6/09
3/1/2010
(see below)
PER-015 (Sexual Harassment ,n the Workplace) revised from 10/21/94, 5/1/95, 1/1/98 PER·037 (Sexual Harassment Investigative Procedures) revised from 2(15/93 complained of did not occur. The finding also applies when the individual employee(s) named in the complaint were not involved in the act(s) or omission(s) alleged.

3. Sustained: The investigation disclosed sufficient evidence to substantiate the allegation(s) made in the complaint; appropriate action will be taken.

E. Details regarding any specific fact-findings or disciplinary action to be taken will not be communicated to the complainant. The City Attorney shall review the response for legal sufficiency before dissemination.

F. The City shall close and retain the investigation file, in accordance with applicable laws, regulations, and City policy regarding retention of City records.

VII, DISCIPLINE
Disciplinary action imposed as a result of any investigation conducted pursuant to this policy shall be commensurate with the severity of the offense, up to and including discharge, even for a first offense.

VIII. ALTERNATIVE REMEDIES
If upon exhausting all internal remedies to file, investigate, and respond to a charges of discrimination/harassment, pursuant to title VII of the Federal Civil Rights Act of 1964 (42 U.S.C §§ 2000e et seq.), any person has a right to file a charge of discrimination/harassment with the Equal Employment Opportunity Commission ("EEOC"). In addition, pursuant to the California Fair Employment and Housing Act (Gov. Code §§ 12900 - 12996.) a person may also file a complaint of discrimination/harassment with the California Department of Fair Employment and Housing ("DFEH"). Employees or non-employees who believe that they have been subjected to discrimination/harassment may file a complaint with either of these

EXHIBIT D

ATTACHMENT A
236

CITY OF STOCKTON, CALIFORNIA

CITY MANAGER ADMINISTRATIVE DIRECTIVE
Subject: Directive No. HR.15 Page No.14 of 14
DISCRIMINATION AND Effective Date: Revised From: HARASSMENT POLICY 7/27/09 5/1/2015 4/6/09
3/1/2010
(see below)
PER-015 (Sexual Harassment m the Workplace) revised from 10/21/94, 5/1/95, 1/1/98 PER�037 (Sexual Harassment Investigative Procedures) revised from 2115/93 agencies. Both the EEOC and DFEH serve as neutral fact-finders and attempt to assist parties in resolving disputes voluntarily.

IX. COMMUNICATION OF POLICY
This policy shall be provided to all managers, supervisors, employees, volunteers, unpaid interns, agents or contractors of the City and shall be posted in the appropriate places. All employees shall participate in City approved harassment awareness training as directed by management or Human Resources; and all supervisors, as required by law, shall participate in City approved interactive harassment awareness training and education sessions at least once every two years, or as otherwise specified by law.

APPROVED:
&��SON

CITY MANAGER
::OOMAIGRPWISE\COS.PER,PER_Llbrary:96180.1

EXHIBIT D

ATTACHMENT A
237
City of Stockton
Legislation Text
File #: 22-0042, Version: 1
APPROVE MOTION TO AUTHORIZE BALANCING CONTRACT CHANGE ORDER NO. 3 FOR

THE LEFT-TURN LANES AT VARIOUS LOCATIONS PROJECT

RECOMMENDATION
It is recommended that the City Council approve a motion to authorize Balancing Contract Change Order No. 3, in the amount of $83,215, with B&M Builders, Inc., for the Left-Turn Lanes at Various Locations, Project No. WT17020/Federal Project No. CML-5008(169).

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 motion.

Summary
On March 10, 2020, by Resolution No. 2020-03-10-1105, Council authorized the award of a Construction Contract, in the amount of $1,525,303, with B&M Builders, Inc., of Rancho Cordova, CA, to complete the Left-Turn Lanes at Various Locations project. This project addresses the need for additional left-turn capacity to improve traffic flow, relieve congestion, and benefit air quality at the intersections of West Lane/Bianchi Road, March Lane/Feather River Drive, and Airport Way/Sperry Road (Arch-Airport Road) (Attachment A - Vicinity Map).

To date, two Contract Change Orders (CCOs) have been administratively approved by the City Manager authorizing additional work totaling $214,669.30. The project has experienced overruns of certain work and material quantities. Balancing CCO (BCCO) No. 3 is now required to compensate the contractor for work performed and to close out the project. Council approval is needed for BCCO No. 3, as the cumulative amount of CCO Nos. 1 and 2 and BCCO No. 3 will exceed the administrative change order authority under the contract.

It is recommended that Council approve a motion authorizing BCCO No. 3, in the amount of $83,215, with B&M Builders, Inc. BCCO No. 3 will result in a final contract amount of $1,823,187.30 (Attachment B).

DISCUSSION
Background
On November 3, 2016, the San Joaquin Council of Governments (SJCOG) solicited a call for projects for the Congestion Mitigation and Air Quality Improvement (CMAQ) Program. Approximately $29.4 million was available for eligible projects in San Joaquin County to be programmed in FYs 2018-19, 2019-20, and 2020-21. The minimum local match for the CMAQ program is 11.47 percent.

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File #: 22-0042, Version: 1
The City submitted various CMAQ grant applications, including the Left-Turn Lane Additions at Various Locations project, in the amount of $2,125,000. On March 23, 2017, the CMAQ funding application was approved, and the project received $1,881,262 in CMAQ federal funds. The required local match of $243,738 is funded from Measure K.

On March 10, 2020, by Resolution No. 2020-03-10-1105, Council authorized the award of a Construction Contract, in the amount of $1,525,303, with B&M Builders, Inc., of Rancho Cordova, CA, to complete the Left-Turn Lanes at Various Locations project. This project addressed the need for additional left-turn capacity to improve traffic flow, relieve congestion, and benefit air quality at the intersections of West Lane/Bianchi Road, March Lane/Feather River Drive, and Airport Way/Sperry Road (Arch-Airport Road) (Attachment A - Vicinity Map). In addition to left-turn lane improvements, the project modified traffic signal poles and cabinets, installed accessible pedestrian signals, and upgraded existing wheelchair ramps.

CCO No. 1, in the amount of $117,883.25, authorized additional geogrid which is a synthetic material used to reinforce soil under pavement, demolition of materials, removal of a tree, repair of traffic signal loop detectors, pedestrian push buttons, upsizing of a traffic signal pole, relocation of traffic signal light heads, pavement striping, an underground pull box and service pedestal, and installation of an emergency pre-emptive detector.

CCO No. 2, in the amount of $96,786.05, authorized installation of additional concrete curb, additional roadway excavation, hot mix asphalt, stamped, and colored median concrete.

The change orders for extra work are the culmination of the following:
· Design error.
· Changing field conditions.
· Capturing opportunities to minimize “throw-away work” or improvements that would need to be reinstalled with a future adjacent project.

Present Situation
BCCO No. 3 is now required to compensate the contractor for work performed and to close out the project. The additional work by B&M Builders was required because of multiple quantity errors. The actual quantities necessary to complete the project were significantly more than originally scoped for roadway excavation, hot mix asphalt, and stamped concrete. To avoid additional delay costs to the City, staff authorized this extra work.

Council approval is needed for BCCO No. 3, as the cumulative amount of CCO Nos. 1 and 2 and BCCO No. 3 will exceed the administrative change order authority under the contract which is set at approximately $252,530.

It is recommended that Council approve a motion authorizing BCCO No. 3, in the amount of $83,215, with B&M Builders, Inc. BCCO No. 3 will result in a final contract amount of $1,823,187.30 (Attachment B). The total contract increase is approximately 19.5 percent.

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File #: 22-0042, Version: 1

FINANCIAL SUMMARY
There is sufficient funding in the Left-Turn Lanes at Various Locations, Project No. WT17020 (formerly PW1720)/Federal Project No. CML-5008(169), Account No. 4510-000-800007-300-000-30- 45-000-000, to approve BCCO No. 3 with B&M Builders, Inc., in the amount of $83,215. With approval of BCCO No. 3, the revised contract amount with B&M Builders, Inc. is increased to $1,823,187.30.

There is no impact to the City’s General Fund or any other unrestricted fund as a result of taking the recommended actions.

Attachment A - Vicinity Map
Attachment B - Balancing Contract Change Order No. 3 with B&M Builders, Inc.

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- VICINITY MAP -
Left-Turn Lanes at Various Locations
City Project No. WT17020 / Federal Project No. CML-5008(169) Project Locations
LEGEND:

WEST LANE AT BIANCHI ROAD

STOCKTON

METROPOLITAN

AIRPORT

MARCH LANE AT FEATHER RIVER DRIVE

AIRPORT WAY AT SPERRY ROAD

ATTACHMENT A
241

ATTACHMENT B
242

ATTACHMENT B
243

ATTACHMENT B
244
City of Stockton
Legislation Text
File #: 22-0191, Version: 1

SJAFCA PRESENTATION ON THE LOWER SAN JOAQUIN RIVER PROJECT, TEN MILE

SLOUGH LEVEE IMPROVEMENTS

RECOMMENDATION
Informational presentation only. No action to be taken.

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1SJAFCA MISSION STATEMENT ‐ Reduce and Manage the Region’s Flood Risk

LOWER SAN JOAQUIN RIVER PROJECT

TEN MILE SLOUGH LEVEE IMPROVEMENTS
Brookside Neighborhood Segment Briefing

STOCKTON CITY COUNCIL
AGENDA ITEM 15.1
March 1, 2022
246
Briefing
Agenda
SJAFCA Mission & Organization
On-going Flood Protection Projects
 Lower San Joaquin River
Today’s Focus
 Lower San Joaquin River Project (LSJR)
 Phase I
 First Increment
 Brookside Neighborhood Along Ten Mile
Slough
2 247
 Joint Powers Authority formed in May 1995
City of Stockton, San Joaquin County and the San Joaquin County Flood Control & Water Conservation District
Address flood protection for the City of Stockton & surrounding County area
 Expanded to include Cities of Lathrop & Manteca in 2018 Board includes Directors (9) from member agencies and the public 3 Who We Are
248
Mission
Reduce and Manage the Region’s Flood Risk
(Cities of Stockton, Lathrop and Manteca and
some adjacent unincorporated County areas)
4 249
SJAFCA
Boundary
5 250
6  Yes, it does flood here!
 Lower San Joaquin Project
 Taking steps now to save lives,
livelihood and the environment
Stockton Diverting Canal, 1958
251
7Reduce and Manage the Region’s Flood Risk
252
LSJR Project Partners
SJAFCA & Dept. of Water Resources & Central Valley Flood Protection Board Roles:
 Cost Share Project Costs
 Real Estate Property Acquisitions
 Utilities Relocations
 Environmental compliance (CEQA)
 Public Outreach
8Reduce and Manage the Region’s Flood Risk
LSJR Project Partners
United States Army Corps of Engineers Federal Partner Federal California Department of Water Resources
State Partner Non‐ Federal
Sponsors
(NFS)
Central Valley Flood Protection Board
San Joaquin Area Flood Control Agency Local Partner
253
 Purpose: flood risk reduction; estimated 122k
people and $28B damages
 Over 23 miles of levee cutoff walls + levee raises,
new setback, geometry improvements, erosion
protection, new levees, and 2 closure structures
(incl. Smith Canal Gate)
 San Joaquin River Basin, LSJR Feasibility Report,
EIS/EIR completed in 2018
 $17 M dollar contract awa rded to Kleinfelder
Inc. for the entire LSJR Geotech Explorations
 Construction contract award of Phase 1 is in year
2023 with estimated cost over $20M
 Estimated construction completion of phase 1 of
the LSJR project is end of October 2023
 Est. completion of all phases of LSJR project is
2030
9Reduce and Manage the Region’s Flood Risk
254
Lower San Joaquin River Project –P h a s e I
Ten Mile Slough Segment: Status Update
100% Design
March 2022
Environmental Phase
A. NEPA April 2022
B. Draft CEQA SEIR
(March 2022)
Transplant Elderberry
Shrubs & Remove
Trees
Nov. 2022
Start & Complete
Construction 2023
255
Lower San Joaquin River Project –P h a s e I
Ten Mile Slough
Estimated Project Costs
Design Cost: $6,346,000
 Design Cost Share: USACE-Federal ($4,125,000)
Non-Federal Sponsor –
State & Local ($2,221,000)
Construction Cost: $20M
Construction Cost Share Agreement:
Federal (65%)
State (24.5%)
Local (10.5%)
11Reduce and Manage the Region’s Flood Risk
256
Lower San Joaquin River Project – Phase I
Ten Mile Slough Segment: Status Update
12 Ten Mile Slough (TS_30_L)
Currently Under Design March 2022
Design Completion
July 2022
Construction
Contract Ready to
Advertise
Sept 2022
Construction
Contract Awarded
Oct 2023
Construction End
 Features found in the Feasibility Study
 Cutoff wall
 Erosion protection
Reduce and Manage the Region’s Flood Risk
257
Project & Community Impacts
 Traffic impacts on March Lane west of I‐5
 Estimated 120 trucks trips (approximately 25 to 30 trucks) per day between borrow and project sites
 Noise impacts due to construction equipment (Backhoe, Concrete pump, Trucks, Dozer)
 Dust impacts due to excavations and construction traffic  Construction Work hours are (7 a.m.‐7 p.m.). This wa s coordinated with City departments
 Truck Haul Hours (8 a.m.‐4 p.m.)
 Construction window –2  years (2022 & 2023)
13Reduce and Manage the Region’s Flood Risk
258
RD 2119/2115/1608 Fourteen Mile Slough
14 June 2022 ‐ Geotech &
Pre‐Design Complete
June 2023 ‐ Design
Complete
Oct 2024 ‐
Construction Contract
Ready to Advertise
Mar 2025 ‐
Construction Contract
Issued
Nov 2025 ‐
Construction End
Shima Tract
Brookside
Reduce and Manage the Region’s Flood Risk
259
Conclusion
 Insight into role of your SJAFCA in protecting lives, livelihoods, and environment
 Mindful of the impacts of flood protection improvements – a necessary public safety infrastructure
 Working with your staff to address those impacts
 Hold public meetings to meet and address concerns by our neighbors 15Reduce and Manage the Region’s Flood Risk
260
16 QUESTIONS?
SJAFCA MISSION STATEMENT ‐ Reduce and Manage the Region’s Flood Risk 261
City of Stockton
Legislation Text
File #: 22-0114, Version: 1

ADOPT A RESOLUTION TO APPROVE THE MIRACLE MILE IMPROVEMENT DISTRICT PROPOSED 2022 ANNUAL OPERATING BUDGET AND 2021 ANNUAL REPORT

RECOMMENDATION
It is recommended that the City Council adopt a resolution:

1. Approving the proposed 2022 Operating Budget for the Property Based Improvement District commonly known as the Miracle Mile Improvement District;

2. Approving the 2021 Annual Report for the Miracle Mile Improvement District; and

3. Authorizing the City Manager, or designee, to take necessary and appropriate actions to carry out the purpose of this resolution.

Summary
The Miracle Mile Improvement District (MMID) is a Property Based Improvement District that was originally formed by the Stockton City Council in 2007. The MMID Property Based Improvement District was renewed for a five-year term effective January 1, 2018 and continuing through December 31, 2022. The City Council executed an agreement with the MMID to manage and operate the Miracle Mile PBID for a five-year period beginning on January 1, 2018, which includes developing the workplan and goals for each year and preparing and managing the district’s budget. The Council is being asked to approve the 2022 Operating Budget and 2021 Annual Report for the MMID. The 2022 Operating Budget and 2021 Annual Report for the Miracle Mile Improvement District are attached as Exhibits 1 and 2 to the Resolution, respectively.

DISCUSSION
Background
The Property Based Improvement District (PBID) is a flexible financing tool for creating private- sector, self-governed management districts. The MMID is one of two existing PBIDs within Stockton.

The second is the Downtown Stockton Alliance. The MMID was established by the City Council on July 17, 2007, with a five-year term expiring December 31, 2012. The MMID was renewed by Council for two additional five year terms beginning January 1, 2013 and January 1, 2018, and shall continue through December 31, 2022. It includes 158 parcels located along the Miracle Mile (Pacific Avenue) and Harding Way (Attachment A - MMID Boundary Map).

Services provided within the boundaries of the MMID include enhanced maintenance, public security and safety, marketing and promotions, and advocacy and management. Services to be provided within the MMID are allocated within three (3) Benefit Zones as described below:

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File #: 22-0114, Version: 1
Zone 1: Consists of parcels on Pacific Avenue south of Regent Court to Harding Way Zone 2: Consists of parcels along Pacific Avenue from Regent Court to Alpine Avenue Zone 3: Consists of parcels along Harding Way between N. Lincoln and El Dorado Street Since the level of service differs between the three benefit zones, the assessment rate varies by zone to reflect the level of service provided: Zone 1 ($0.1276 per sf), Zone 2 ($0.0622 per sf) and Zone 3 ($0.1021 per sf).

The City Council authorized an agreement with the MMID for the administration of the Miracle Mile PBID on December 28, 2017, with an effective date of January 1, 2018, and shall remain in effect until December 31, 2022. In accordance with Property and Business District Law of 1994 and pursuant to the agreement, MMID is required to administer funds consistent with the adopted Management District Plan.

Present Situation
The Management District Plan provides that the MMID submit its budget and annual report to the City by February 1st of each year. The budget is subject to Council review and adoption. The 2022 MMID budget shows $221,380 funded through property assessments and $174,389 in other income for a total budget of $395,769.

The MMID Management District Plan dictates that funds may only be spent on improvements and activities provided in the Zone from which the funds were derived, as shown in the budget allocation chart below.

Enhanced
Maintenance
Safety &
Security
Marketing &
Promotions
Admin. &
Advocacy
Contingency/
Reserve
Total
Zone 1 $39,168 $33,207 $28,099 $43,074 $2,746 $146,294
Zone 2 $6,540 $17,033 $887 $8,325 $1,065 $33,850
Zone 3 $8,082 $21,086 $1,089 $9,662 $1,318 $41,237
Total $53,790 $71,326 $30,075 $61,061 $5,128 *$221,380
*Rounded
Below are some of the MMID accomplishments in 2021:
· Events: Recovering from the pandemic, events were scarce, however the MMID managed to hold a few of their signature events in 2021; Miracle Mile Car Show & Concert in September featuring over 130 classic cars, the popular Stockton Cruise Night every third Thursday from May - October, the Miracle Mile Trick or Treat night, and the Holiday Sip & Shop. New to the Mile was First Wednesday Pop-Out Nights, held May - October and inspired by the City’s Small Business Week, this event evolved into a monthly event. · Marketing: The Miracle Mile continued to build their social media base which saw a 148% increase in followers on Instagram and 570 new followers on Facebook. Overall engagement was increased from the online public through the “RAD Card - Support Small Business” and the more general “Support Local” campaigns. As a bonus, the Mile hosted a “how-to social media” webinar for the merchants.

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File #: 22-0114, Version: 1
· Safety & Security: Collaboration with the MMID, Hammer Head Security, Stockton Police Department, and merchants continues.
· Improvement Projects: Parking lot planters with deterioration were replaced with curbing, and masonry repairs were painted to create a uniform look. Donated lighting was installed at Tuxedo Court for the holidays.
· Enhanced Maintenance: Garbage is taken care of seven days a week for a total of 9,581 bags removed, 608 hours of hand watered labor for the trees and plants completed weekly, and pressure washing of curbs/sidewalks completed monthly for a total of 541 hours.

During 2022, the MMID will continue to create a safe environment, protect property owner investments, and strive to raise property values, focusing on a clean, safe, and beautiful district.

Some of the 2022 goals include making strides in improvement initiatives, revitalization efforts, improving engagement, reviving signature events, and collaborating with the City and partners. A few of the district objectives for 2022 are listed below:
· Tivoli lighting project to string lights along Pacific Ave for a classic Miracle Mile look. · Begin process of evaluations of pedestrian safety measures and installation of flashing crosswalks on Pacific Avenue.
· Implement a pilot program with a network video recording (NVR) camera system to improve the safety and security of the Miracle Mile.
· Facilitate resurfacing of parking lot, replanting of landscape planters and repaint curbs and bollards.
· Continue and improve the merchant welcome program, provide social media education, and promote merchant events.
· Planning is currently underway in the preparation for the district renewal process and the MMID has contracted with a consultant to assist with these efforts.

FINANCIAL SUMMARY
The Miracle Mile Improvement District assessments are paid directly to the County by property owners as part of their tax bill. The funds collected by the County are transferred to the City and deposited in Assessments Miracle Mile PBID Miscellaneous Agency Fund, Deposits and Other Liabilities account. The funds are then transferred to the MMID as administrator of the improvement district.

The total amount of the assessment paid during 2022 by property owners will be $221,380. The annual assessment for City-owned property within the MMID is $20,271 and is budgeted in and paid from the Administrative Services General Fund, General Administration Division, Tax Collection Costs program account.

For the calendar year 2022, the projected annual operating budget for the MMID is $395,769. The MMID anticipates $390,641 in expenditures, which include expenses for management services, operational costs, professional services, maintenance, marketing, public safety, and security. Total revenues projected include the $221,380 assessment income and $174,389 in other income from non-assessment income, events, and promotions.

Attachment A - MMID Boundary Map
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264
Adams St
Bonnie Ln
Blain Ave
Ellis St
Sperry Ave
Regent Ct
Castle
St
Walnut St
Arcade St
Alpine Ave
Alder St E Alder St
Center St
Central Ct
Commerce St
Lomita Ave
N Van Buren St N Monroe St
Cleveland St
N
M
adison
St
Central Ave
W Regent Ct
DorrisPl
E Hampton St
E Harding Way
Central Ave N
Carmel Ave
Ramona Ave
E Blain Ave
Concord Ave
E Geary St
E Walnut St
N Harrison St
Tuxedo Ct
E Castle St
W Geary St
E Maple St
W Ellis St
E Adams St
E Wyandotte St
Elizabeth Ave
E Pine St
W Alpine Ave
N Regent St
W Noble St
S Regent St
N Center St
W Arcade St
Smith Ln
N Commerce St
S Central Ave
N Tuxedo Ave
W Adams St
S Tuxedo Ave
Bristol Ave
W Maple St
W Castle St
W Mariposa Ave
W Wyandotte St
E Arcade St
E Ellis St
W Mendocino Ave
N Lincoln St
W Sonoma Ave
E Cleveland St
W Pine St
E Noble St
E Monterey Ave
E Mariposa Ave
E Mendocino Ave
E Sonoma Ave
E Elm St
Lexington Ave
Bedford Rd
W Walnut St
N Hunter St
W Monterey Ave
W Harding Way
N
PacificAve
Be
verlyPl
Allston Way
N
elDorado
St
W Cleveland St
±
Miracle Mile PBID
Zone 1
Zone 2
Zone 3
Non-Assessed

ATTACHMENT A
265
Resolution No.

STOCKTON CITY COUNCIL

RESOLUTION ADOPTING THE PROPOSED 20 22 ANNUAL OPERATING BUDGET AND APPROVING THE 2021 ANNUAL REPORT FOR THE PROPERTY AND

BUSINESS IMPROVEMENT DISTRICT DESIGNATED AS THE MIRACLE MILE

IMPROVEMENT DISTRICT

The Miracle Mile Improvement District (“MMID”), a 501(c)(6) nonprofit corporation, is one of two existing Property Based Improvement Districts within the City of Stockton and began operations in January 2007; and

The MMID was established to pro mote and mainta in the Miracle Mile Property Based Improvement District (“District”); and

The City Council approved the renewal of the District in December 2017 , and entered into an Agreement with the MMID for administration of the District for a five-year period effective January 1, 2018, expiring on December 31, 2022; and

The Agreement requires that the City transfer District assessment funds to the MMID; and

The Agreement requires City Council approval of the annual operating budget, assessments, and annual report on activities pertaining to the MMID; now, therefore,

BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF STOCKTON, AS FOLLOWS:

1. The City Council hereby approves the 20 22 Annual Operating Budget (Exhibit 1) in the amount of $395,769, the annual property assessment in the amount of $221,380 as proposed by the MMID for management services, operational costs, professional services, maintenance, marketing, public safety and security as further defined in its 2021 Annual Report (Exhibit 2), which the council also approves, copies of which are attached hereto as Exhibits 1 and 2 and incorporated herein by this reference.

2. The proposed amounts are in compliance with the “Property and Business District Law of 1994” and the charge is levied without regard to property valuations.

//
//
//
266

3. The City Manager , or designee, is hereby authorized to take any and all necessary and appropriate actions to carry out the purpose and intent of this Resolution.

PASSED, APPROVED, and ADOPTED March 1, 2022 .

________________________
KEVIN J. LINCOLN II
Mayor of the City of Stockton

ATTEST:

ELIZA R. GARZA, CMC
City Clerk of the City of Stockton
267
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EXHIBIT 1
268
Miracle Mile

IMPROVEMENT DISTRICT
2021 ANNUAL REPORT
EXHIBIT 2
269
003
>>>>>002
<<<<<
Annual Report 2021Annual Report 2021
Kimberly Byrd
District Welcome 02
Index 03
Introduction 04
Mission 05
Board Officers 06
Board of Directors 07
PBID General Information 08
2021 Financial Review & 2022 Budget Comparison 09
Enhanced Safety & Security 10
Enhanced Maintenance 11
Social Media Marketing 12-13
Mile Events & Projects 14-17
Looking Ahead To 2022 & Beyond 18-19
index
Kimberly Byrd
Board President 2021
“There is no power for change greater
than a community discovering what it
cares about.”
~ Margaret J. Thatcher
On behalf of the Miracle Mile Improvement District (MMID) and our Board of Directors, we present this 2021 Annual Report to all Miracle Mile property owners, merchant busi- ness owners and representatives of the City of Stockton.

The attached report highlights our major organizational accomplishments last year and financial performance in the fiscal year ending December 31, 2021.

This past year continued to be one filled with unique challenges due to the COVID-19 pandemic and associated limitations both to individual businesses and the district as a whole. This report will demonstrate the creative efforts that were made to help support all the merchants of the district during this ever-evolving crisis and still push forward on some major district objectives.

EXHIBIT 2
270
005
>>>>>004
<<<<<
Annual Report 2021Annual Report 2021
Introduction
The Miracle Mile Improvement
District (MMID) was formed as a
non-profit organization to improve
the safety, security, appearance, and
economic growth of the area. The
Miracle Mile District includes all the
businesses fronting Pacific Avenue
from Alpine to Harding, and those
businesses on Harding Way from
El Dorado Street to Lincoln Street.

The Mission of the MMID is
To foster the economic vitality,
value, and appeal of the Miracle Mile.
our district
There are SIXTY-ONE property
owners within the district and
over TWO HUNDRED businesses
call the Miracle Mile home!
EXHIBIT 2
271
007
<<<<<
Annual Report 2021
>>>>>006
Annual Report 2021
Kimberly Byrd
Property Owner
Board President
Lisa Whirlow
Property Owner
Vice President
Yonie Young
Property Owner
Secretary
Tina Wells Lee
Business Owner
Treasurer
“I would like to take this op-
portunity to thank my Executive
Committee and all our volunteer
board members for their service
and dedication to the Miracle
Mile. Since 2018, it has been
an honor and privilege to serve
along side this group. As my
tenure, serving as your board
president, comes to an end, I re-
flect back on all of the challenges
presented to this group and am
very proud of the selfless sacri-
fices made, humor provided and
the general “get it done” spirit
that makes this group, amazing!
I look forward to the growth and
exciting opportunities that lie
ahead for our eclectic commu-
nity. The best is yet to come to
the Miracel Mile!
- Kim By rd
meet the directors
Jeff Gamboni
Property Owner
January - December
our board officers
MMID Board
Our board of directors
consists of thirteen (13)
members: seven (7)
property owners, three
(3) merchant business
owners and one (1)
appointed representative
from the Stockton
Unified School District,
the City of Stockton &
University of the Pacific
respectively.

The role of the volunteer
board is to set the annual
strategic plan for the
district, provide financial
oversight and give
direction, via vote, to the
Executive Director whom
is the sole compensated
individual of the
organization.

The Board of Directors
meets regularly on
the second Tuesday of
every month at 4:00pm.

Meeting locations and/
or virtual meeting details
are available in advance
on our district website.

Manuel Guizar
Property Owner
January - December
Jon Precissi
Property Owner
January
Mike Klocke
UOP Representative
January - December
Helena Monica
Property Owner
February - December
Kevin Hernandez
Business Owner
January - December
Nicole Snyder
COS Representative
January - December
Tanya Waters
Property Owner
January-December
Nadja King
Business Owner
January - December
Jeff Dundas
SUSD Representative
January - December
EXHIBIT 2
272
009
>>>>>008
<<<<<
Annual Report 2021Annual Report 2021
Commericial School
Building Sq. + Parcel Sq. Ft. Building Sq. Ft.

Zone 1 $0.01276 $0.01276
Zone 2 $0.06220 $0.06220
Zone 3 $0.10210 $0.10210
Initial Assessment Rate
Benefit Zone
INCOME 2021 Budget 2022 Budget
TOTAL ASSESSMENT INCOME $221,380 $221,380

NON-ASSESSMENT INCOME
Event Income $10,000 $10,000
Interest Income $8 $8
Net Restitution $0 $0
RTD Maintenance Contract $0 $0
Harding Way Project Reimbursement $94,381
Non-Assessed Income - (Other) $70,000
TOTAL NON-ASSESSMENT INCOME $10,008 $174,389
TOTAL INCOME $231,388 $395,769
EXPENSE 2021 Budget 2022 Budget

ADMINISTRATION
Contract Service Management $66,000 $28,061
General Administrative $5,320 $2,610
Office Lease $4,200 $0
Storage Lease $1,200 $1,330
Liability Insurance $10,300 $12,500
Total General Administrative $10,720 $16,440
Accounting $2,118 $5,160
Contract Service Mgmt $9,900
Consulting & Legal Fees $500 $1,500
Total Professional Services $2,618 $16,560
TOTAL ADMINISTRATION $79,338 $61,061

ENHANCED MAINTENANCE
Contractor Service Maintenance $62,400 $51,518
Infastructure Improvement $50,000 $0
Repair & Maintenance Supplies $1,200
Waste Management $4,475
Contract Service Mgmt $6,600
TOTAL ENHANCED MAINTENANCE $113,600 $62,593

ENHANCED SECURITY
Contractor Service Security $72,000 $70,229
Contract Service Mgmt $9,900
TOTAL ENHANCED SECURITY $72,000 $80,129

MARKETING
Advertising, Events & Promotions $10,800 $22,750
Event Expenses $5,000 $0
Website Management & Hosting $350 $725
Contract Service Mgmt $6,600
TOTAL MARKETING $16,150 $30,075

RESERVE & SPECIAL FUNDING
District Renewal $62,402
Other Special Projects $94,381
RESERVE & SPECIAL FUNDING $0 $156,783
TOTAL EXPENSE $281,088 $390,641
NET OPERATING INCOME -$49,700 $5,128

RESERVE REQUIREMENT
Emergency Reserve Savings Deposit $3,600 $5,128
district information
The Miracle Mile Property
Based Improvement District
(MMPBID) is a common benefit
assessment district whose main
goal is to provide improvements
and activities which constitute and
convey a special benefit to
assessed parcels.

The Miracle Mile PBID was
formed for an initial five (5) year
term starting in 2008 and was
successfully renewed for two
additional five (5) year terms
starting in 2013 and 2018. The
current five (5) year term expires
December 31st, 2022.
cost
The assessment rate (cost to
parcel owner) is based on
benefit zone, building square
footage and parcel square
footage. The initial annual rate to
each parcel is shown in the table
to the right.

Assessment rates will not be
subject to an increase over the
current term.
2021 financial snapshot
profit & loss report
INCOME
ASSESSMENT $220,9 78
NON-ASSESSMENT $28,6 10
TOTAL INCOME $249 ,588

EXPENSES
ADMINISTRATION $34, 250
MAINTENANCE $70, 248
IMPROVEMENT $26,2 97
MARKETING $66, 000
PROFESSIONAL $41, 299
SECURITY $77, 234
RESERVE & SPECIAL FUNDS $12, 716
TOTAL EXPENSES $263 ,948
NET INCOME $-14 ,360

The net negative income, represents the additional
services rendered in 2021, to launch the MMID‘s
district renewal process and was funded by savings
set aside for its purpose.

2021 end of year
account balances
CHECKING ACCOUNT $59,9 95.56
EMERGENCY SAVINGS $18, 006.23
PBID RENEWAL SAVINGS $15, 000.89

TOTAL $93 ,006.68
Detailed budgets and financial reports are available on the district website in the monthly board meeting packets.

Furthermore, the finance committee holds monthly
committee meetings that are open to the public.
2021-2022 budget report
EXHIBIT 2
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Annual Report 2021Annual Report 2021
enhanced maintenance
We continued our partnership with the Downtown Stockton Alliance in 2021. Garbage cleanup and removal is taken care of seven days a week,
hand watering of trees
& plants happens
weekly and the curbs/
sidewalks in the entire
district are pressure
washed every month.

The maintenance crew
also handles graffiti
removal, street tree
trimming and annual pre-emergent pest abatement.
541
hours spent
pressure
washing
sidewalks
608
hours spent
hand watering
trees & plants
9,581
bags of
garbage
removed
Ongoing
237 Calls To SPD/
EMT
made by security guards for
immediate response
793 Incidents
responded to and
addressed
1,179 Patrols
of security service
provided

Ongoing collaboration efforts of the MMID, Mile
Merchants, Hammer Head Security with Stockton
Police Department Business Watch Program has
helped stem the influx of crime and vagrancy within
the district boundary. Meeting monthly, on the 1st
Tuesday of each month, additional resources are are
made available, including support from the District
Attorney’s Office, City Code Enforcement, Behavioral
Health Services and Stockton Fire Department,
whenever necessary.
enhanced safety & security
We continued our
partnership with Hammer
Head Security in 2021.

The unique issues
presented with the onset
of COVID-19 continued
to challenge the
district and impact the
stakeholders throughout
our community. We
evolved and adapted
to perserve and protect
merchants and guests of
the Miracle Mile.

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social media marketing year in review
We continued to build our
social media base, on Instagram
and Facebook. All growth, non-
paid, and organically achieved.

We also saw an overall increase in
engagement from the online public
through our “RAD Card - Support Small
Business” and our more general “Support
Local” campaigns. As an added bonus we
hosted a “how-to social media” webinar
for our merchants.
+ 570
new followers
on FaceBook
>>>
2018 = 7,274
2019 = 8,687
2020 = 9,494
2021 = 10,064
>>>
2018 = 1,139
2019 = 2,264
2020 = 5,607
2021 = 7,967
RAD Card helping small business
The Miracle Mile proactively engaged and educated its’ merchant community, and the community at large on the benefits of the RAD Card program.

The program was designed to help bolster small business and aid in its economic recovery. The community could support small business by purchasing the RAD Card and see their funds matched, through the program approved and launched by the San Joaquin Board of Supervisors.

As a result, Miracle Mile merchants were reported to have been significantly represented and beneficiaries of the program. RAD Card helped support our small business community, in a BIG WAY.
+ 2,360
148% increase in
followers on Instagram
EXHIBIT 2
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A community favorite, the Miracle Mile
Car Show and Concert took place on
Saturday, September 25th, featuring
over 130 classic cars! This free to the
public event offered a live concert, Beer
& Wine Garden and all the great shops
and pop-up vendors for the whole family
to enjoy!
STOCKTONMIRACLEMILE.COM
free general admission
REGISTER your car ~ stocktonmiraclemile.com
Limited to 200 Vehicles | $40 Pre-Registration (Until Sept 24th) | $60 Day Of Registration 2PM
to
7pm
STAGE SPONSORcar show SPONSOR beer + wine SPONSORevent SPONSOR print SPONSOR
Car show
Car show
& concert
& concert
stockton‘s miracle mile
miracle mile car show & concert
Every First Wednesday from May
through October in 2021 we hosted
Pop-Out Night , on the Miralce Mile.

Inspired by Stockton Small Business
week, the Pop-Out night evolved
into a monthly event. Participating
merchants would “Pop-Out” onto
the sidewalk with hand crafted wares,
while restaurants offered specials for
attendees.
first wednesdays
pop-out nights
With an emphasis on bringing the community together, we also enjoyed Third Thursdays Cruise Night. Every Third Thursday from May through October, we partnered with Stockton Cruise Night, and hosted Miracle Mile Trick or Treat to bring hundreds of families to the district while participating merchants stayed open late and offered special discounts.

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>>>>>0016
Annual Report 2021
2021holiday sip and shop
Many, if not all, planters in
the district were in need
of repair. Planters with the
most deterioration, were
replaced with 6” curbing.

Masonry repairs were paint-
ed to create a uniform look.
parking lot
planter repairs
Our Improvement
Committee along with
friends & family provided
seasonal plantings and
donated lighting and
installation for our district’s
holiday tree.
tuxedo court
landscaping
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Pilot Program:

As technology improves and cost for the security camera systems become more accessible, NVR (network video
recording) could serve to improve the safety and security of the Miracle Mile, for our merchants and those guests visiting. NVR, when coupled with, boots on the ground, security services and our partnership with the Stockton Police Department, gives us a comprehensive security
approach to the every challenging issues experienced in our ever changing landscape.
a look ahead to 2022 district objectives
bring back our signature events, if possible
• miracle mile en blanc
• miracle mile car show & concert
• miracle mile holiday sip & shop
make strides in our major improvement initiatives
• tivoli lighting along classic miracle mile
• flashing crosswalk projects along pacific
• nvr camera security program
complete general revitalization efforts
• facilitate resurfacing of parking lot
• replanting various landscaping planters
• repainting curbs & bollards
improve stakeholder & community engagement
• merchant welcome program
• merchant social media education
• promote merchant specific events & promotions
collaboration with our city and local partners
• evaluate pededtrian safety measures and
installation of additional lighted cross walk
• broaden marketing partnerships with UOP

nvr security camera program

tivoli lighting project
EXHIBIT 2
278
ORGANIZATION NAME:

Miracle Mile PBID
dba/Miracle Mile Improvement District
MAILING ADDRESS:

PO Box 4016
Stockton, CA 95204
CONTACT INFORMATION:
[email protected]
(209) 623-1144
WEBSITE:
www.stocktonmiraclemile.com
January 2022
EXHIBIT 2
279
2021‐2022
Miracle Mile Improvement District
2021‐2022
Miracle Mile Improvement District
Our Mission
To foster the economic vitality, value, and
add appeal to the Miracle Mile.

Our Stakeholders
Over EIGHTY property owners within the
district and over TWO HUNDRED
businesses call the Miracle Mile home!
Stockton City Council
March 1, 2022
Agenda Item 15.2
280
Security Tracking & Reporting
 1,179 Patrols
 793 Incidents
 237 Calls to SPD/EMT
SPD Business Watch
We continue our partnership with the Stockton
Police Department through the Business Watch
Program and Hammerhead Security.

Safety & Security
Safety & Security
281
Downtown Stockton Alliance
• Garbage cleanup and removal is
scheduled seven days a week, hand
watering of trees & plants happens
weekly.
• The curbs/sidewalks in the entire
district are pressure washed every
month.
• The maintenance crew also handles
graffiti removal, street tree trimming,
and annual pre‐emergent pest
abatement.
608 hours spent hand wate ring  trees
and plants
9,581 bags of garbage removed
541 hours spent pressuring washing
sidewalks
Enhanced Maintenance
Enhanced Maintenance
282
Merchant Marketing & Getting Social
Merchant Marketing & Getting Social
Overall increase in engagement
through campaigns: “RAD Card‐
Support Small Business” and
“Support Local”
148% increase on Instagram
570 new followers on Facebook
283
Events on the Miracle Mile
Events on the Miracle Mile
Farmer’s Market on the Mile
Held every Wednesday
in the Whirlow’s parking lot.

First Wednesday Pop‐Out Nights
Held May –O c t o b e r , inspired by
Stockton’s Small Business Week.
284
Events on the Miracle Mile
Events on the Miracle Mile
Car Show & Concert
Held in September featuring over
130 classic cars.

Holiday Sip & Shop
Annual merchant event, tree
lighting & pictures with Santa.
285
A Look Ahead for 2022 District Objectives
A Look Ahead for 2022 District Objectives
Revitalization Efforts
Improve Stakeholder & Community Engagement
Major Improvement Initiatives
Bring Back Signature Events
Collaboration with our City & Partners
THANK YOU!
286
City of Stockton
Legislation Text
File #: 22-0183, Version: 1
ACCEPT FISCAL YEAR 2021-22 FIRST QUARTER BUDGET STATUS UPDATE AND AUTHORIZE

BUDGET AMENDMENTS

RECOMMENDATION
It is recommended that the City Council adopt a resolution to:

1. Accept this budget status report on the unaudited results of the first quarter of Fiscal Year (FY) 2021-22.

2. Approve five budget amendments in the Office Equipment Internal Service Fund, Municipal Utilities Department Water, Stormwater, and Wastewater Utilities funds, and the Fire Department General Fund budget.

It is recommended that the City Manager be authorized to take appropriate and necessary actions to carry out the purpose and intent of the resolution.

Summary
City staff reviewed the financial results for the first quarter of Fiscal Year (FY) 2021-22. That review indicates General Fund revenues are within budgeted levels and expenditures are slightly under budget. General Fund revenues totaled $24.3 million in the first quarter, and expenses totaled $56.3 million. Staffing levels in the first quarter were lower than the level anticipated in the budget resulting in expenditure savings. Overall, first quarter expenditures of $56.3 million were at 20 percent of the budget and are projected to end the year within the total adjusted annual expenditure budget of $277.3 million. First quarter expenditure activity is consistent with the same period in prior years and first quarter revenue activity is slightly lower as a percent of budget compared to prior years.

Staff reviewed all other City funds to determine significant budget variances. Budget adjustments are needed in the City utility funds, Office Equipment Internal Service Fund, and the Fire Department General Fund.

DISCUSSION
Background
Regular analysis and reporting of the City’s financial status supports the City Council’s strategic goal of Fiscal Sustainability and is a key component to maintaining a fiscally healthy organization.

Council adopted the FY 2021-22 annual city-wide budget of $991.8 million on June 22, 2021. The adopted General Fund expenditure budget was $255.9 million of the total City budget.

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The FY 2021-22 budget was the first done in the new financial system with budget development work starting immediately after go-live. The legacy system is still being used for payroll and salary projections budgets. The learning curve and need to mesh two different systems with different account structures resulted in more budget corrections than is seen in a typical year. The adopted budget resolution authorizes technical corrections be processed administratively with a follow-up report to the City Council required in some cases. Technical correction budget amendments processed during the first quarter are described in this report.

Present Situation
General Fund Budget Status Update
Attachment A presents the revised annual General Fund budget with actual revenues and expenditures for the first three months of the current fiscal year. Year-to-date activity through September 30, 2021, was consistent with the same period in prior fiscal years. The first three months of revenue and expenditure transactions do not typically provide enough information to draw precise conclusions and judgments regarding year-end outcomes. Consequently, this report does not include a revised Long-Range Financial Plan (L-RFP) projection or a year-end projection.

Subsequent quarterly reports will include updated year-end projections. The City does not receive General Fund tax revenues in a regular monthly pattern, evidenced by first quarter revenues being less than 25 percent of annual budgeted revenues. The timing of monthly expenses is more evenly distributed. Still, the General Fund includes some budgeted items paid in large lump sums that cause variances when reviewed quarterly. The information below is based on an analysis of the trends in the first few months of available data. Staff continues to monitor revenue collections and expenditure trends in all categories against the annual budget, the L-RFP, and department projections.

Budget Adjustments
Throughout the fiscal year, the City Council can authorize adjustments to the budget. Attachment A summarizes the Adopted Budget, adjustments made in the first quarter, and the resulting Approved Budget of the General Fund.

Below are the details of those approved changes.

Adopted General Fund Expenditure Budget . . . . . . . . . . . . $255.86 million Encumbrance Rollover. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . +6.31 million Approved Carryover . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . +1.13 million Assured Guaranty Contingent Payment Adjustment . . . . . . . . +1.65 million Council Priority Projects. . . . . . . . . . . . . . . . . . . . . . . . . . . . . +12.33 million Total Revised Expenditure Budget . . . . . . . . . . . . . . . . . . . $277.25 million The first adjustment is the encumbrance rollover from the prior fiscal year. The City uses encumbrance accounting to avoid exceeding the budget by earmarking appropriations for expenses before paying for products or services. On a budgetary basis, encumbrances are reported as a reduction to available appropriations in the fiscal year they are committed, even if not paid for by year -end. At the end of FY 2020-21, the General Fund had $6.3 million encumbered for approved City of Stockton Printed on 2/22/2022Page 2 of 9
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purchases not yet received or paid for during the fiscal year. The appropriations related to those encumbrances are re-appropriated in the FY 2021-22 budget.

The approved carryover is related to projects and priorities from the prior fiscal year that were not yet encumbered and combined with the new appropriations of $1.1 million approved by Council on June 22, 2021 and November 16, 2021 with the budget adoption and the year-end budget update agenda items.

The next category of budget adjustments represents the additional payment toward the Assured Guaranty settlement agreement, which is higher than anticipated due to higher revenues in FY 2020-

21. At the November 16, 2021 Council meeting, the Council approved the appropriation of $12.7 million in one-time Council Priority Projects from the ending available balance at June 30, 2021. Part of the appropriation was offset by repurposing the balance in an existing capital project, resulting in a $12.3 million General Fund appropriation. While subsequent to the first quarter, this appropriation is reflected in Attachment A. Most of the project budget can be found in the Capital Improvement category ($10.6 million), which will be transferred to the General Capital Fund for use on the designated projects. The remainder is in the Police, Fire, Public Works, and Human Resources department budgets.

The adopted budget plus subsequent Council-approved budget amendments increased the total budget to $277.3 million. The Approved Budget column on Attachment A includes all known budget adjustments impacting the General Fund, some of which were effective after the first quarter. The projected ending available balance at budget adoption was $25.3 million. When adjusted for the actual June 30, 2021, ending available balance and budget adjustments, the projected ending available balance is $33.8 million, or 13% of expenditures. The City’s target ending available balance at 16.7% of the budget is over $42.7 million. It was known that reserves would be used to offset negative net annual activity going into this fiscal year. The use of reserves and restricted balances is primarily for one-time items such as capital projects and Council priority projects.

Revenues
First quarter revenue collections for significant General Fund categories (sales tax, property tax, utility users tax, franchise fees, business license tax, hotel/motel tax, and program revenues) were slightly below amounts received in the same period in prior years. General Fund revenues of $24.3 million were 9.7% of budget compared to 15.1% in the same period of FY 2020-21. While this trend could indicate that revenues will be below budget at the end of the fiscal year, a deeper review of revenue categories with the largest variances show that it is just related to the timing for posting transactions. Processes and timeframes are different in the new financial system compared to the same quarter last year in the legacy system.

Most revenue categories are below a 25 percent pro-rated monthly collection rate because the receipt of funds is seasonal. For example, San Joaquin County remits the majority of property tax revenue to the City in December and May, in line with the December 10 and April 10 due dates for property owners to pay annual taxes. Thus, the City received only $669,000 of an expected $65.2 million total in the first three months of the year. Early property tax data from San Joaquin County and the City’s property tax consultants indicate FY 2021-22 property tax revenues are likely to be City of Stockton Printed on 2/22/2022Page 3 of 9
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about 4% more than last year, which is above the 2% growth assumed in the budget.

Each major category has different collection schedules, and the City receives almost all the larger revenue sources in the later months of the fiscal year.

Sales tax revenue received from the State in the first quarter are primarily revenues related to the prior fiscal year and are accrued to the prior year appropriately. Thus, only July 2021 sales tax revenues were posted as of September 30, 2021. The City does not accrue its sales tax revenue quarterly. Sales tax revenues continued to be more resilient to the COVID-19 pandemic than initially anticipated. As of December 2021, the City’s sales tax consultant was projecting that statewide sales tax will be 10% higher than FY 2020-21 revenues with a flatten of growth to 3.5% in FY 2022-23.

The forecast incorporates higher labor and raw material costs along with inflationary pressures that drive taxable goods prices upward now and through the next fiscal year. Common economic influences include ongoing COVID pandemic impacts such as supply chain disruptions, manufacturing slowdowns and employment shortages. Stockton’s sales tax revenues won’t directly follow the statewide trend because tax revenues in the last two years were more stable than in other parts of the state. If FY 2020-21 sales tax levels are sustained through FY 2021-22, the tax receipts will likely be greater than the adopted budget.

Receipts from Program Revenues were $3.7 million or 24 percent of the budget as of September 30, 2021. This category includes Fire District Contracts, Code Enforcement fees, License & Permits, Fines, Sale of Fixed Assets, and other charges for services.

Interfund reimbursements consist of billings to outside agencies, indirect cost recovery, and a lump sum payment from the Municipal Utilities Department for property rentals. As of September 30, 2021, interfund reimbursements were $847,000, approximately 9.2% of the budgeted revenues. Revenues in this category earned in the first quarter of the fiscal year are billed for reimbursement but are generally received in the following quarter or later.

Year-to-date collections and information from the City’s revenue consultants indicate the most significant General Fund revenues are likely to be close to or slightly above the budget estimates.

Staff will continue to monitor revenues and report performance in future quarterly reports.

Expenditures
Staff reviewed the first three months of General Fund expenditure data reported in Attachment A.

Actual expenditures of $56.3 million were 20 percent of the Approved Budget. As is the case with revenues, it is too early in the fiscal year to draw firm conclusions or judgments about observed trends, especially in salaries and benefits, as vacancies often take months to fill. However, expenditure trends in many departments are running close to or just below expectations. The chart below summarizes total departmental and program spending as a percent of the total budget.

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As shown above, overall departments are below the 25 percent expenditure level.

Filling and retaining employees in a very competitive market continues to be a challenge. At the beginning of the fiscal year, 11.8% of full-time positions were vacant. That rate had increased to

13.1% by December. The departments experiencing high vacancy rates include Information Technology, Public Works, Human Resources, Police, the Office of Violence Prevention, and Economic Development. All departments had more than 5% of full-time positions vacant and about half had over 10% as of December 15, 2021. The General Fund personnel expenditure budget anticipates 5 percent of variable full-time salary and benefits will be unspent annually due to vacancies. In the first quarter, vacancy savings were 9.7% of the salary and benefits budget, with actual costs coming in approximately $2.8 million less than anticipated.

First Quarter % Realized
Department Annual 1 Quarter Savings of Budget
General Fund
Other Departments 291,120 72,780 184,224 11.5% Administrative Services 217,898 54,475 215,980 16.9% Human Resources 63,958 15,990 72,257 18.8% Police 3,258,710 814,678 1,848,941 7.8% Fire 1,145,999 286,500 344,433 3.7% Public Works 319,677 79,919 324,873 16.5% 5,297,362 1,324,341 2,990,709 7.8% Marshall Plan
Office of Violence Prevention - - 112,175 50.9% Police 936,054 234,014 1,264,946 18.8% 936,054 234,014 1,377,121 19.9% Total 6,233,416 1,558,354 4,367,829 9.7% Total Savings above/(below) Budget 2,809,475 6.4%
Budgeted Vacancy Savings
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First Quarter % Realized
Department Annual 1 Quarter Savings of Budget
General Fund
Other Departments 291,120 72,780 184,224 11.5% Administrative Services 217,898 54,475 215,980 16.9% Human Resources 63,958 15,990 72,257 18.8% Police 3,258,710 814,678 1,848,941 7.8% Fire 1,145,999 286,500 344,433 3.7% Public Works 319,677 79,919 324,873 16.5% 5,297,362 1,324,341 2,990,709 7.8% Marshall Plan
Office of Violence Prevention - - 112,175 50.9% Police 936,054 234,014 1,264,946 18.8% 936,054 234,014 1,377,121 19.9% Total 6,233,416 1,558,354 4,367,829 9.7% Total Savings above/(below) Budget 2,809,475 6.4%
Budgeted Vacancy Savings
Public Safety is one of the City Council’s highest priorities, and thePolice Department continues to hire sworn officers to meet its Marshall Plan goals. Although the department hired 7 new officers throughout the first quarter, 14 officers left (five for other agencies, four retired, four resigned, and one was released from probation). At the end of the first quarter in FY 2021-22, 90% of sworn positions were filled with 437 sworn staff positions out of 485 authorized positions. Hiring for sworn and non-sworn personnel will continue throughout the fiscal year. Overall, the Police Department is within budget at 23 percent as of September 30, 2021. This amount is about 1 percent lower than the same period last fiscal year. Recruitment efforts continue to be significantly delayed in the first quarter due to the COVID-19 pandemic. These efforts are limited to various online and social media platforms. Although the department achieved success in its recruitment efforts prior to the pandemic; there is a natural attrition rate in the law enforcement profession that results in fluctuating staffing levels throughout the year.

The Fire Department's overall actual expenditures are $11.0 million or 21% of the budget at the end of the first quarter. Out of the 12 vacant sworn positions at the beginning of the fiscal year, eleven Firefighter Trainees were successfully recruited to join Fire Academy 21-2 which started on September 27, 2021. The department’s FY2021-22 original approved budget has an additional allocation for a second academy that is planned for the third quarter of the fiscal year. A discrepancy was discovered in the Fire Department salary and benefits budget that requires a correcting budget entry in FY 2021-22. A small number of fire positions were not budgeted based on the correct annual hours for a 24/7 operation (2,912 hours versus 2,080 for a 40 hour per week employee). This resulted in understated salary and benefit budgets. The current budget of $36,415,370 needs to be increased by $340,000 to correct this oversight.

The Economic Development Department is trending under budget as most of the $2.2 million budgeted for economic development incentives and activities and the Downtown Infrastructure City of Stockton Printed on 2/22/2022Page 6 of 9
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program remains unspent.

In the Program Support for Other Funds category, most transfers are completed on a monthly basis. The Grant Match transfer is only recorded if needed when grants with required matching funds are expended. The Capital Improvement line is under budget because the $10.6 million for Council Priority projects will be transferred in a later quarter.

The City Auditor budget does not include any salaries and the expenses post as the City receives invoices from its internal and external audit firms. Approximately 8% of the budget was expensed as of September 30, 2021, as audit work performed during the first quarter is typically invoiced between October and February of each fiscal year.

Tax Collection expenses are, for the most part, incurred later in the year. The City typically pays property tax administration fees to San Joaquin County in December and May. Sales tax administration fees will be paid quarterly starting in December. Payment for taxes and assessments on City-owned properties will begin in November.

Election expenses budgeted in FY 2021-22 are for the spring primary election that has not yet occurred.

The Other Administration category holds various city-wide costs that are not attributable to an individual or specific group of programs or departments. By far, the largest amounts are offsets to expenditures in other areas of the budget, such as indirect costs allocated to the Fire Department for reimbursement by fire districts. This offset activity caused total expenditures as of September 30, 2021, to be approximately $75,000.

General Legal expenses of $35,000 reflect two months of legal fees for various lawsuits and bankruptcy-related legal advice. Labor negotiations with the City’s four safety units will be underway in early 2022, adding more in monthly expenses for the last half of the year.

Debt Service payments to Assured Guaranty are due in June and July, so no funds had been transferred to the Debt Service Fund as of September 30, 2021. An additional true-up payment for FY 2020-21 based on audited core revenues will be paid in March this year. Staff evaluated FY 2020 -21 actual revenue numbers and determined a $1.7 million true-up to the contingent payment is needed. The estimated FY 2021-22 contingent payment of $2.6 million must be paid by June 1, 2022. Budget appropriations will be increased by approximately $1.6 million for these payments as authorized in the FY 2021-22 budget resolution.

The City did not need to access Contingency funds in the first quarter, but actions approved at the February 8, 2022 Council meeting will utilize $1.3 million of the contingency budget.

Staff will continue to monitor General Fund expenditures and return later in the year with quarterly reports that include year-end projections, additional Council appropriations, and any necessary budget adjustments.

Other Fund Budget Adjustments
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utility funds for both operations and capital projects.

1. Miner Avenue Complete Street Improvements Project: In September of 2020, the Public Works Department began construction on the Miner Avenue Complete Street Improvements Project between Center Street and Aurora Street. The project includes a variety of improvements to the area, including signal and lighting improvements, landscaped medians, pedestrian and bicycle amenities, and accessible street crossings. During construction, six fire hydrants were identified in the project area that were incompatible with the revised elevation of the sidewalks and needed to be replaced. The fire hydrants were replaced at the contract price, while associated valves were replaced on a time and materials basis. As the fire hydrants were not identified in the original scope of work, no funds were budgeted for this expense. Staff are requesting that the City Council approve an amendment to the FY 2021-22 Annual Budget and appropriate $126,000 from the Water Utility Fund Balance account to the Hydrant Equipment Repairs and Maintenance account for this expense.

2. Local Street Resurfacing Program: Public Works has plans to overlay 11 streets in the spring of 2022. A part of the costs associated with the Local Street Resurfacing project #WT22003 are the utility adjustments that must be made. The estimated cost for utility adjustments is $36,000 for Stormwater, $22,500 for Wastewater, and $41,850 for Water. This project was not identified as needing MUD funds during CIP budget development, and therefore no budget was appropriated. Budget is being requested from the Water, Wastewater, and Stormwater fund balances to fund utility adjustment costs in project #WT22003.

3. Municipal Utility Internal Service Fund charges: There are several MUD divisions that have all of their costs allocated by a percentage to each of the three separate utility funds.

These divisions are Environmental Control Services, Lab Services, MUD Administration, Engineering Services, Safety Services, and SCADA. Budgets for the Fleet, Radio, and Technology Internal Service Fund charges for these divisions totaled $612,421 and were only budgeted in the Wastewater fund instead of split among all three utilities. This oversight was the result of a change in account structure in the new financial system. The recommended action requires Council approval because the budget is being moved between funds. The Wastewater utility budget will be reduced by a total of $189,817, while the Water utility accounts are increased by $123,986 and the Stormwater utility accounts will increase by $65,831. The additional budget in the Water and Stormwater utilities will be funded from the available fund balances.

A budget amendment is necessary in the Office Equipment Internal Service Fund within the Administrative Services Department to address missing budget which was overlooked in the FY 2020 -21 budget entry process totaling $140,000. Due to the learning curve associated with the new financial system, there was a budget entry omission for five general ledger accounts. When the problem was discovered in the first quarter of this fiscal year, $80,000 was added under the technical correction authority of the adopted budget resolution. An additional $60,000 is needed to complete the fiscal year for a total increase of $140,000 that will come from the fund balance.

One of the most significant process changes implemented with the new financial system is the setup of capital projects. With the implementation of Project Ledger accounting, how and where newly appropriated capital project budget are entered changed resulting in erroneous entries found during City of Stockton Printed on 2/22/2022Page 8 of 9
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reconciliation of the new year budget. Correcting budget entries needed to be made to various capital project budgets to keep the source funds, the project expenditure budgets, and the transfers between funds aligned. The correcting entries put the project expenditure budgets in the Capital fund and set up transfer budgets from the funding source. Because the total project budgets did not change from the amounts authorized by the City Council, adjustments were completed under the technical correction authority of the adopted budget resolution.

FINANCIAL SUMMARY
This report provides an analysis of FY 2021-22 General Fund's first quarter results. Staff review indicates revenues are consistent with budget projections and the City expenditures are estimated to be slightly below the approved budget. Five budget amendments have been identified.

1. Increase the General Fund (100-000) Fire Department (40) Salary and Benefit budgets (object codes 61XXXX) by $340,000 from General Fund available balance.

2. Appropriate $126,000 from the Water Utility (610) fund balance to the Hydrant Equipment Repairs and Maintenance account 6516-000-630013-600-000-65-000-000 for hydrant maintenance related to the Miner Avenue Complete Street Improvements Project (project number WT16007).

3. Appropriate MUD utility funds to the Local Street Resurfacing Project WT22003 and associated transfer accounts as follows:
a. From the Wastewater Utility (600) fund balance $22,500 b. From the Water Utility (610) fund balance $41,850
c. From the Stormwater Utility (620) fund balance $36,000

4. Transfer budget appropriation from the Wastewater Utility (600) fund for Fleet, Radio, and Technology Internal Service Fund charges as follows:
a. Reduce Wastewater Utility (600) budget by $189,817
b. Increase Water Utility (610) budget by $123,986
c. Increase the Stormwater Utility (620) budget by $65,831

5. Appropriate an additional $60,000 to the Office Equipment Internal Service Fund (570) operating budget for a total increase of $140,000 over the adopted budget.

The identified funding sources have sufficient balance to cover the above increases in budget appropriation.

Staff will continue to monitor trends and potential budget variances and will return to the Council with future recommendations for changes where appropriate.

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City of Stockton
FY 2021-22 Budget Update - First Quarter
General Fund - 100 by Program (Budgetary Basis)
Year to Date
Adopted Approved Activity % of
Budget Budget As of 9/30/21 Budget
Beginning Available Balance 37,724,307$ 37,724,307$ 37,724,307$ Release of Funds* - 22,516,050 22,516,050
37,724,307 60,240,357 60,240,357
Revenues
General Tax Revenues 190,006,818 190,006,818 15,237,686 8% Measure A/B Sales Tax 36,132,000 36,132,000 4,487,285 12% Program Revenues 15,522,155 15,522,155 3,734,686 24% Interfund Reimbursements 9,186,977 9,186,977 847,476 9% 250,847,950 250,847,950 24,307,133 10% Expenditures
Programs
Police 143,771,046 144,733,264 32,871,800 23% Fire 50,152,050 51,313,942 11,008,771 21% Public Works 17,498,458 18,936,393 3,897,022 21% Economic Development 2,059,034 4,900,838 449,318 9% Office of Violence Prevention 2,078,111 2,210,895 291,568 13% 215,558,699 222,095,332 48,518,480 22% Program Support for Other Funds
Library 4,068,000 4,068,000 1,017,000 25% Recreation 3,497,150 3,497,150 874,288 25% Entertainment Venues 3,285,000 3,285,000 821,250 25% Downtown Marina 262,000 262,000 65,500 25% Capital Improvement 5,000,000 15,673,531 1,250,000 8% Golf Courses 350,000 350,000 87,500 25% Grant Match 100,000 100,000 - 0% Development Services 800,000 800,000 200,000 25% 17,362,150 28,035,681 4,315,538 15% Administration
City Council 1,005,703 1,209,297 196,342 16% City Manager 2,624,622 2,696,992 551,796 20% City Attorney 1,290,602 1,290,690 289,311 22% City Clerk 1,101,024 1,101,840 241,999 22% City Auditor 483,582 845,920 66,237 8% Administrative Services 6,231,197 6,259,020 1,317,814 21% Human Resources 2,352,349 3,720,342 444,824 12% Tax Collection 2,116,400 2,233,456 208,574 9% Elections 550,000 550,000 - Other Administration (1,493,193) (1,106,035) 75,126 -7% General Legal 500,000 500,000 35,349 7% COVID Program - - 50
16,762,286 19,301,522 3,427,422 18% Debt Service 4,174,175 5,819,175 - 0% Contingency 2,000,000 2,000,000 - 0% Total Expenditures 255,857,310 277,251,710 56,261,439 20% Net Annual Activity (5,009,360) (26,403,760) (31,954,306) Proj. Ending Available Balance 32,714,947 33,836,597$ 28,286,051$ Fund Balance as % of Expenses 12.8% 13.2%

ATTACHMENT A
296
Resolution No.

STOCKTON CITY COUNCIL

RESOLUTION ACCEPTING THE FISCAL YEAR 2021-22 FIRST QUARTER BUDGET

STATUS UPDATE REPORT, AND AUTHORIZE BUDGET AMENDMENTS

Fiscal Sustainability is one of the City Council’s goals; and

City Council adopted the Fiscal Year (FY) 2021 -22 Annual Budget on June 22, 2021, following a duly noticed budget study session and a public hearing; 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) Accept this budget status report on the results of the first quarter of Fiscal Year 2021-22.

2) Increase the General Fund (100-000) Fire Department (40) Salary and Benefit budgets by $340,000 from General Fund available balance.

3) Appropriate $126,000 from the Water Utility (610) fund balance to the Hydrant Equipment Repairs and Maintenance account for hydrant maintenance related to the Miner Avenue Complete Street Improvements Project (project number WT16007).

4) Appropriate Municipal Utility Department utility funds to the Local Street Resurfacing Project WT22003 and associated transfer accounts as follows:

a) From the Wastewater Utility (600) fund balance $22,500 b) From the Water Utility (610) fund balance $41,850
c) From the Stormwater Utility (620) fund balance $36,000

5) Transfer budget appropriation from the Wastewater Utility (600) fund for Fleet, Radio, and Technology Internal Service Fund charges as follows:

a) Reduce Wastewater Utility (600) budget by $189,817
b) Increase Water Utility (610) budget by $123,986
c) Increase the Stormwater Utility (620) budget by $65,831

297
6) Appropriate an additional $60,000 to the Office Equipment Internal Service Fund (570) operating budget for a total increase of $140,000 over the adopted budget.

7) 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 March 1, 2022 .

________________________
KEVIN J. LINCOLN II
Mayor of the City of Stockton
ATTEST:

ELIZA R. GARZA, CMC
City Clerk of the City of Stockton
298
FY 2021-22 First Quarter
Budget Update
City of Stockton
March 1, 2022
Item 15.3
299
1st Quarter FY 2021-22
General Fund Budget
As of September 30, 2021:
• Revenues = $24.3 million
• 9.7% of the $250.8 million budget
• Expenditures = $56.3 million
• 20% of the $277.3 million budget
300
FY 2017‐18 FY  2018‐19 FY  2019‐20 FY  2020‐21 FY  2021‐22 1st Quarter 11% 12% 14% 15% 10%
2nd Quarter 23% 31% 31% 34% 0%
3rd Quarter 62% 67% 67% 66% 0%
Year‐End 103% 105% 106% 121% 0%
Budget 100% 100% 100% 100% 100%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
110%
% of Annual Budget
General Fund Revenues
Quarterly Receipts as a % of Budget
301
1st Quarter FY 2021-22
General Fund Budget
23%
21% 21%
9%
13%
15%
18%
0%
$0
$0
$0
$0
$0
$0
Actual Expenditures % of Budget
302
1st Quarter Budget
Adjustments
• Increase the General Fund Fire Department Salary and
Benefit budgets by $340,000
• Appropriate $126,000 to the Miner Avenue Complete
Street Improvements Project
• Appropriate $100,350 in MUD utility funds to the Local Street Resurfacing Project and associated transfer
accounts
• Reduce budget appropriation in the Wastewater Utility fund by $189,817 and increase the Wa ter  Utility budget by $123,986 and the Stormwater Utility budget by
$65,831
• Increase budget in the Office Equipment Internal Service Fund by $60,000
303
1st Quarter FY 2021-22
Recommendation
•Accept 1st Quarter Budget Status Update
•Approve budget amendments
• Fire Department General Fund budget  +$340,000
• Office Equipment Internal Service Fund  +$60,000
• 3 Municipal Utilities Department Water, Stormwater,
and Wastewater Utilities funds amendments
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City of Stockton
Legislation Text
File #: 22-0234, Version: 1
DISCUSSION ON SUSD’S PROPOSED FAMILY RESOURCE CENTER PARTNERSHIP City of Stockton Printed on 2/22/2022Page 1 of 1
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City of Stockton
Legislation Text
File #: 22-0188, Version: 1

ADOPT A RESOLUTION TO ACCEPT AND APPROPRIATE FUNDING FROM THE CALIFORNIA

STATE WATER RESOURCES CONTROL BOARD WATER AND WASTEWATER ARREARAGE PAYMENT PROGRAM; APPROVE THE ALLOCATION OF FUNDS AND APPROVE A WAIVER OF

ELIGIBLE CUSTOMER LATE FEES

RECOMMENDATION
It is recommended that the City Council adopt a resolution to:

1. Accept and appropriate funds from the California State Water Resources Control Board for the Water and Wastewater Arrearage Payment Program in the amount of $1,623,889.31.

2. Approve the allocation of funds in accordance with all Water and Wastewater Arrearage Payment Program requirements.

3. Approve a waiver of customer late payment fees eligible under the Water and Wastewater Arrearage Payment Program.

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 California State Water Resources Control Board (State Board) is administering the California Water and Wastewater Arrearage Payment Program (Program). The Program offers community water systems up to $985 million in Federal American Rescue Plan Act (ARPA) funds to provide financial relief for residential and commercial water bill accounts experiencing financial hardships due to the COVID-19 pandemic.

In December 2021, the City of Stockton Municipal Utilities Department (MUD) applied for the Program to credit eligible past-due water utility bills for more than 4,300 City of Stockton (City) residential and 52 commercial water utility accounts. The Program requires the City to credit the water accounts only within the MUD water service area (not including the California Water Service Area) of eligible residential and commercial water customers within 60 days of receiving funds. To qualify, the past-due water utility bills must have accrued during the COVID-19 pandemic relief period established by the State Board between March 4, 2020, and June 15, 2021. Eligible residential and commercial customers do not need to apply for Program funds. Program funds will be applied as a credit to the water utility bill of qualifying accounts.

Staff recommends the City Council adopt a resolution to authorize the acceptance, appropriation, and allocation of funding to credit eligible past-due water utility bills in the amount of $1,623,889.31 and approve a waiver of customer late payment fees eligible under the Program.

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DISCUSSION
Background
In July 2021, the Governor signed Assembly Bill 148 allocating $985 million in Federal ARPA funds to the Water and Wastewater Arrearages Payment Program, administered by the State Board. The Program provides community water systems like the City of Stockton (City) the opportunity to apply for funding for past-due water bills for residential and commercial accounts. If there is Program funding available following the crediting of eligible water bills statewide, the remaining funds will be made available for eligible wastewater bill arrearages.

Funds are intended to support Stockton residents and commercial businesses experiencing financial hardships due to the COVID-19 pandemic. The California Health and Safety Code defines “past-due bills” as customer water bills unpaid for 60 days or more. The MUD utilized utility billing records to determine eligible accounts, in accordance with the Program guidelines. The Program requires the City to allocate payments as water bill credits to eligible customers to help address past-due bills incurred during the COVID-19 pandemic bill relief period. To be eligible for the Program, past-due water bills for residential and commercial customers must have accrued during the funding period between March 4, 2020, and June 15, 2021.

In December 2021, the Municipal Utilities and Administrative Services Departments developed information, completed the application, and applied for a total of $1,623,889.31 in Program funding.

This included 4,305 residential ($1,551,174.28) and 52 commercial ($25,417.29) accounts eligible to receive a credit for past-due water utility bills accrued during the bill relief period. The City may expend up to 3% ($47,297.74) for administrative costs incurred to apply or comply with Program requirements.

Present Situation
The Program application was approved in January 2022. The Program requires the City to credit the water accounts only within the MUD water service area (not including the California Water Service Area) of eligible residential and commercial water customers within 60 days of receiving funds.

Upon Council approval, the City’s Administrative Services Department (ASD) will issue a credit to eligible accounts for past-due water bills accrued between March 4, 2020, and June 15, 2021. If the water bill has already been paid under the Rental Assistance Program, any duplication of credit will be mitigated when applying the credit manually. Credit would only be applied to match the remaining arrearage balance due to each account. Eligible residential and commercial accounts, including active and inactive accounts, and accounts that have payment plans or payment arrangements will be credited automatically. The City must remit any funds not credited to customers back to the State Water Board within six months of receiving payment.

In accordance with Program guidelines, eligible customers will be mailed a Notice of Credit to Water Bill (Notice) that includes the following:

1. The amount credited to their water utility account,
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2. Information about the Program funding sources, and

3. Instructions to contact the City with questions, to setup a payment plan, or to appeal or contest utility bill charges.

The Notice must include other available or future financial assistance programs to help pay utility bills accrued outside the Program bill relief period.

Program funds will cover all eligible water bill debt accrued during the pandemic relief period. Eligible residential and commercial customers do not need to apply for Program funds. Qualifying accounts will receive a credit applied to the water utility bill. After the Program credit has been applied to the accounts of qualifying customers, those who have additional utility debt accrued outside the eligibility period between March 4, 2020 and June 15, 2021, have 30 days to enroll in a payment plan, as required by the State Program. The Program also requires the City to waive all late fees for qualifying water arrearages.

The City must provide certification to the State Water Board, within six months upon receiving funds that, except for authorized administrative costs up to three percent, or up to $1 million, whichever is less, Program funds were applied as credits to customer bills to offset COVID-19 arrearages.

It is recommended that the City Council adopt a resolution to authorize the acceptance, appropriation, and allocation of funding in the amount of $1,623,889.31, and approve a waiver of customer late payment fees eligible for the Program.

FINANCIAL SUMMARY
The City may expend up to 3% ($47,297) for administrative costs incurred to apply or comply with Program requirements. System costs to apply for funds and comply with Program requirements must be documented and reported to the State Board.

The allocation of the California State Water Resources Control Board Water and Wastewater Arrearage Payment Program funds in the amount of $1,623,889.31 will be appropriated in the Water Utility Federal Grant account (0000-000-430101-600-603-00-00-000-000).

The estimated unpaid late fees and penalties eligible for the Program is anticipated to be under $324,000 and can be sustained by the Water Fund.

There is no financial impact to the General Fund, or any other unrestricted funds, from this action.

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Resolution No.

STOCKTON CITY COUNCIL

RESOLUTION TO ACCEPT AND APPROPRIATE FUNDING FROM THE CALIFORNIA

STATE WATER RESOURCES CONTROL BOARD WATER AND WASTEWATER ARREARAGE PAYMENT PROGRAM OF $1,623,889.31; TO APPROVE THE ALLOCATION OF FUNDS; AND TO APPROVE A WAIVER OF ELIGIBLE CUSTOMER

LATE PAYMENT FEES

On July 22, 2021, the Governor signed California Assembly Bill 148 allocating $985 million in Federal American Rescue Plan Act of 2021 (Public Law No. 117-2) (ARPA) funds to the California Water and Wastewater Arrearage Payment Program (Program), administered by the California State Water Resources Control Board (State Board). The Program offers community water systems up to $985 million in federal ARPA funds to provide financial relief for past-due residential and commercial water bills accrued during the COVID-19 pandemic relief period between March 4, 2020, and June 15, 2021; and

In December 2021, the City of Stockton (City) applied for the Program and supplied all the necessary information to receive funds from the State Board Program. The application was approved in January 2022, and the City was awarded $1,623,889.31 in Program funding; and

The Program requires the City to issue a credit to eligible residential, commercial and institutional water utility accounts within the service area, notify customers in writing within 60 days, and waive all late payment fees for qualifying water arrearages; and

The City may expend up to three percent (3%) for costs in curred to apply for assistance or to comply with Program requirements; now, therefore,

BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF STOCKTON, AS FOLLOWS:

1. The City Manager or his designee is hereby authorized and directed to accept and appropriate funds from the California State Water Resources Control Board Water and Wastewater Arrearage Payment Program in the amount of $1,623,889.31.

2. The City Manager, or designee is authorized to allocate funds in accordance with all Water and Wastewater Arrearage Payment Program requirements.

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3. The City Manager is directed to approve a waiver of customer late payment fees for water arrearages eligible for the Water and Wastewater Arrearage Payment Program.

PASSED, APPROVED, and ADOPTED March 1, 2022 .

KEVIN J. LINCOLN II
Mayor of the City of Stockton
ATTEST:

ELIZA R. GARZA, CMC
City Clerk of the City of Stockton

310
California Water and Wastewater
Arrearage Payment Program
Stockton City Council
Agenda Item 15.5
March 1, 2022
311
Important Dates
• March 10, 2021: SB‐46 signed into law.
• July 23, 2021: Governor signs AB‐148.
• Allocated $985M to the State Water Resources Control Board (State Board) in American Rescue Plan Act (ARPA) funds to cover customer water and wastewater arrearages resulting from the COVID‐19 pandemic emergency.
• September 21, 2021: State Board published guidelines fo r the California Water and Wastewater Arrearage Payment Program (Program).
• December 6, 2021: City provided report of eligible water arrearages to the State Board.
• February 16, 2022: City received $1,623,889.31 in Program funds.
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Program Background
• Eligible arrearages include all active or inactive residential and commercial accounts 60 days or more behind on payments for debt accrued between March 4, 2020, and June 15, 2021.
• City must allocate payments as bill credits to eligible accounts and notify customers within 60 days of receiving Program funds. • A payment plan mus t be offered for customers with remaining water arrearages after credit is applied.
• Customers have 30 days to enroll.
• City must waive customer late fees and penalties for qualifying arrearages.
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Determination of Eligibility
• In accordance with Program guidelines, a report of
past‐due water bills was used to determine eligible
accounts:
• Included past‐due water bills for residential, commercial and institutional customer accounts.
• Removed ineligible bills accrued outside the eligible pandemic relief period between March 4, 2020, and June
15, 2021.
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Program Impact
• Total Program funds received: $1,623,889.31.
• Total in arrearages: $1,576,591.57.
• 3% administrative cost: $47,297.74.
• Funds benefit 4,305 residential accounts, totalling
$1,551,174.29.
• Funds also benefit 52 commercial and institutional
accounts, totaling $25,417.29.
• Total in late fees and penalties required to be waived by the City: $324,103.
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Recommendation
• Accept and appropriate funds from the State Board for the Program in the amount of $1,623,889.31.
• Approve the allocation of funds in accordance with all Program requirements.
• Approve a waiver of customer late payment fees eligible for the Program.
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Next Steps
• Credit eligible accounts.
• Mail a notification to eligible customers within 60 days of receiving funds. Notice must include:
• The amount credited to water account;
• Information about the Program funding sources;
• Instructions to contact the City with questions, to enroll in a payment plan, or to appeal or contest utility bill charges; and • Ar e f e r r a l statement regarding additional assistance that may be available through the Low‐Income Household Water Assistance Program (LIHW AP), scheduled to be available in May 2022. • Waive late fees and penalties related to eligible arrearages. • Prepare required report for the Wastewater Arrearage Payment Program.
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City of Stockton
Legislation Text
File #: 22-0050, Version: 1
ADOPTION OF AN ORDINANCE AMENDING STOCKTON MUNICIPAL CODE TITLES 5 AND 16

RELATED TO THE CANNABIS REGULATORY PROGRAM

RECOMMENDATION
It is recommended that the City Council:

1. Adopt an Ordinance Option Amending Title 5, Chapter 5.98, Section 5.98.020, Chapter 5.99, Section 5.99.030, Chapter 5.100, Sections 5.100.080, 5.100.310; and Title 16, Chapter 16.20, Section 16.20.020 and Chapter 16.80, Section 16.80.195 of the Stockton Municipal Code Relating to the Cannabis Regulatory Program.

2. Authorize the City Manager to take appropriate and necessary actions to carry out the purpose and intent of the ordinance adopted by Council.

Summary
On February 2, 2021, City Council provided direction to evaluate the cannabis regulatory program and develop recommendations to improve the current program. The City conducted an Equity Assessment and researched best practices. Community outreach was also conducted to gather feedback from the community and stakeholders as well as mulitple study sessions with both the Council Legislative and Environmental Committee and Planning Commission.

As a result, recommendations have been developed and are being presented as four (4) options for the City Council’s review and consideration. On December 9, 2021, the Planning Commission considered the ordinance options and approved a Resolution recommending City Council adoption of Option 4 (with revisions) of the proposed ordinance amending Title 16.

Proposed Title 5 changes were drafted without Planning Commission review per SMC 16.212.040.F [Planning Commission Duties and Authority]. However changes to Section 5.100.080 are a direct result of the Planning Commission’s input. Changes to Sections 5.98.020, 5.99.030, and 5.100.310 were initiated by the Administrative Services Department in an effort to improve the cannabis business license process. ASD recommended changes are reflected in all four ordinance options.

The proposed ordinance fulfills City Council directive and:
• Aligns program with best practices
• Implements recommendations from equity assessment and addresses equity program gaps • Cleans up and aligns Code language to allow for consistent and clear application of the Code • Establishes balance between geography, resident quality of life, desired business types, and economic development
• Improves business license record-keeping and timely collection of large sums of tax revenues.

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File #: 22-0050, Version: 1
These changes are being proposed to address:
• Overconcentration concerns
• Location Waiver seen as arbitrary rather than flexible • Separation distance between cannabis storefront retail establishments • Public safety considerations
• Lack of applications for businesses other than Retail Storefront (dispensary) • Equity concerns: length of residency, applicant eligibility, procedures

DISCUSSION
Background
On March 5, 2019, City Council approved changes to the City’s cannabis regulatory program to: (a) align state/local regulation; (b) allow additional business types; (c) establish a method to control the pace of new business openings; and (d) establish a method to address historic racial inequities.

New business types were introduced, including manufacturing, distribution, testing laboratories, delivery-only non-storefront retailers, and microbusinesses. The program also included additional cultivators and storefront retailers (dispensaries) as well as an equity program. The changes were to align local regulation with the Medical Cannabis Regulation and Safety Act and the Adult-Use of Marijuana Act of 2016 (Proposition 64). In addition to achieving regulatory consistency, the program was changed to eliminate the limit (i.e. caps) on the total number of Operator Permits regulated by the Stockton Police Department under Stockton Municipal Code (SMC) Chapter 5.100.

For certain permit types (storefront retailer, cultivation, volatile-manufacturing, and microbusiness) where there is concern about the potential impact on public safety, public health, or community character, a controlled expansion was established. A controlled expansion program allows the City and the existing industry to adapt to an evolving industry and gives the City ongoing flexibility to accelerate or decelerate industry expansion over time. The controlled expansion also has the benefit of allowing the City to give preference to equity applicants.

The controlled expansion is accomplished on an annual basis through a lottery process for the following business types:
a. storefront retailer
b. cultivation
c. volatile-manufacturing
d. microbusinesses, which include storefront retail and/or cultivation business types Applicants for the above business types are evenly selected by the lottery process from two pools for a total of eight (8) applications per year, as described below:

Equity Pool
a. One (1) storefront retailer permit
b. One (1) cultivation permit
c. One (1) volatile-manufacturing permit
d. One (1) microbusiness permit
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General Pool
a. One (1) storefront retailer permit
b. One (1) cultivation permit
c. One (1) volatile-manufacturing permit
d. One (1) microbusiness permit
The lottery includes an equity component to enable Stockton residents from disadvantaged neighborhoods to obtain cannabis business permits. Applicants for the above business types are evenly selected from 1) a general pool of applicants and 2) an equity pool of applicants. Equity pool applicants must meet certain criteria and are also eligible to be a part of the general pool. To qualify as an equity applicant, an applicant must own more than 50 percent of the business, be a resident of Stockton, and meet one of the following:
· be a Minority Business Enterprise (MBE)/Women Owned Business Enterprise (WBE), · live in an opportunity zone,
· live in the Senate Bill 535 disadvantaged area, or
· live in a Housing and Urban Department (HUD) designated area.

On July 16, 2019, City Council approved additional amendments to the Cannabis Regulatory Program that allowed additional by-right allowances for eight (8) existing cannabis businesses (five (5) retail storefront and three (3) cultivator). If located in the appropriate zone, existing cannabis businesses are allowed to add additional business types, such as retail storefront (dispensary), non- volatile manufacturing, and cultivation. The businesses are still required to amend the Operator’s Permit to include the additional business types.

Amendments to location requirements were also approved and aligned further with State requirements. The approved changes require all cannabis businesses to be located at least 300 feet away from any existing residential zone, and 600 feet away from any childcare center, childcare, in- home (family daycare home), religious facilities, drug abuse, or alcohol recovery/treatment facility, school (K-12), daycare center, or youth center.

In addition, the tax rate structure was adjusted to reflect the current market. Originally, the City required businesses to report based on sales of medical and adult-use products. The tax rate structure was changed to delineate revenue based on business type (cultivation, manufacturing, distribution, testing, retail, and microbusiness). The percentage due varies based on business type (see Table 1). Lastly, Council adopted a Workforce Diversity Incentive Program. Cannabis businesses can opt into the Program when they apply or renew their annual business license.

Businesses qualify to participate in the Program if at least 50% of their employees are Stockton residents and reside in the SB 535 disadvantaged areas of the City or in the “Kelley Drive” neighborhood. If eligible, Cannabis business owners receive a 50% discount on the amount owed for the Business License tax.

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Table 1
Business Type Percent of Gross
Receipts Per Year
Cultivator 5%
Distributor 1%
Non-volatile manufacturer 3%
Volatile manufacturer 3%
Testing laboratory 0%
Retail storefront 5%
Retail non-storefront (delivery only) 5%
Microbusiness 5%
SMC 5.99.030
During the development of the Cannabis Regulation Program, event promoters identified the allowance of Cannabis Temporary Events as an additional item to consider for adoption. On June 23, 2020, the City Council approved a code amendment to SMC chapter 12.72 (Special Events) to allow temporary cannabis events (which include on-site sales and consumption of cannabis and cannabis goods/products) at the Stockton Municipal Civic Auditorium, Weber Point Event Center, and the County of San Joaquin Fairgrounds. Other amendments included a cannabis-related definition and establishment of a Temporary Cannabis Event Permit and associated fee.

On February 2, 2021, City Council provided direction to evaluate the cannabis regulatory program and develop recommendations to improve the current program. City Council expressed concern with overconcentration, encouragement of certain business types, location requirements and issues related to the equity program.

On March 17, 2021, Staff provided a presentation on a preliminary cannabis amendment project to the Council Legislation and Environmental Committee where additional feedback for the project was received. Additionally, the City’s cannabis equity consultant hosted a virtual community meeting on May 3, 2021, where public feedback and suggestions were received. Over 700 e-mails were distributed to notify the public of the virtual community meeting, and sixteen (16) members of the public participated in the virtual community meeting. In addition, the consultant interviewed twelve (12) stakeholders.

Feedback received included the following:
· Desire for:
o Financial and technical assistance for equity applicants, o Increased outreach efforts,
o Creation of an incubator program,
o Minimum equity ownership requirements,
o Increased lottery awards and priority processing to/for equity applicants, o Assistance with the legal process for record expungement, and o Additional staff support/guidance.

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· Issues with:
o over-restrictive zoning requirements,
o confirmation of proposed location consistency with Code, o Planning Commission consideration of location waivers, and o LiveScan requirements for employees.

On June 23, 2021, a proposed ordinance incorporating all feedback to date was presented to the Legislation and Environmental Committee for review and input. The Committee requested that all three location requirement options be presented to the City Council for their review and adoption as well as language be added to allow a struggling equity-owned business to sell or close prior to the minimum 5-year ownership requirement. That direction was incorporated in the proposed ordinance amendment.

The updated policy proposal was then presented in a workshop format to the Planning Commission on July 22, 2021, for further feedback and input. During that meeting, the Planning Commission requested, that in addition to the recommended location requirements based on those from the state Department of Alcoholic Beverage Control, location requirements continue to include minimum distances from churches (places of worship only - not church-owned facilities) and drug abuse, or alcohol recovery/treatment facilities.

A follow-up presentation was made to the Legislation and Environmental Committee on September 15, 2021, where an update on the ordinance amendment progress was provided, including the Planning Commission’s July feedback. The Committee was satisfied with the progress made thus far and directed staff to finalize the definition of Religious Facilities and Places of Worship with the Planning Commission.

A study session was held during the September 23, 2021, Planning Commission meeting to further discuss the definition of Religious Facilities and Places of Worship as they relate to the Cannabis Regulatory Program. It was found that the distinction of worship versus other religious uses is inconsistent with federal law and that the City’s current definition is consistent with case law; therefore an amended definition was not recommended. The Planning Commission understood staff’s recommendation and asked that the current location waiver portion of the Cannabis Regulatory Program remain in place in order to address unique situations such as those involving religious facilities.

On November 18, 2021, three (3) ordinance options were presented to the Planning Commission for review and subsequent recommendation to the City Council. After review and discussion, the Planning Commission continued the item to the December 9, 2021, regularly scheduled meeting to allow additional time for review and the addition/clarification of the following elements to the proposed ordinance (resulting in an Option 4):
· Limit the number of Storefront Retailers (i.e. reinstate a cap) · Remove location separation exemption from churches in IL/IG zones · Keep ability to grant location waivers
· Increase time for Lottery winners to submit their land use application (CUP) from 90 days to 120 days
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· Clarify “at time of application” to residential zone or use location separation requirement · Clarify if a single Use Permit approval can authorize multiple Operator’s Permits for the same business type
On December 9, 2021, the continued Public Hearing was held where the Planning Commission reviewed and deliberated the proposed ordinance amendment, particularly the newly created ordinance “Option 4”. Upon discussion, the Planning Commission recommended City Council adoption of Option 4 with the following amendments:
· Limit the number of Storefront Retailers to fourteen (14) · Increase location requirement to 1,000 feet from religious facilities · Clarification that only one (1) Operators Permit is allowed per approved Use Permit All ordinance options (1-4) have been amended to include the cap on storefront retailers and the one- to-one use permit to operators permit policy. Option 4 has further been revised to include the 1,000- foot separation from churches.

In addition to the Planning Commission’s formal recommendation to the City Council (Attachment A - Planning Commission 12/9/21 Minutes), there was also discussion regarding current cannabis business license tax rates identified in Title 5. Although not under the purview of the Planning Commission under SMC 16.212.040.F, they recommended Council consideration of increased tax rates. Amendments to codified business license tax rates are not being proposed as a part of this effort as additional research is necessary.

Upon preparation of this report, the Administrative Services Department (ASD) requested additional Title 5 code amendments regarding the collection of Cannabis Business License Taxes. Currently collected during initial application and annual license renewal, ASD recommends said taxes be collected on a semi-annual basis (opposed to annually). These proposed amendments are also reflected in all options (1-4).

Changing from annual to semi-annual tax payments and license renewals will improve record- keeping and timely collection of large sums of tax revenues. In addition, this change reduces risks for both cannabis owners and the City. All cannabis business licenses will be renewed semi-annually on January 1
st and July 1st. Payment will continue to be due no later than thirty days following license renewal.

Present Situation
The proposed four (4) Ordinance options (Attachments B1-4) provide recommendations as a result of extensive research conducted to provide enhancements to the City’s Commercial Cannabis Regulatory Program. Several areas will be addressed as a result of this update, including location requirements, equity lottery program, enhancing the customer experience, balancing oversaturation with economic development efforts, and zoning allowances. The proposed recommendations are summarized in the Recommendation Summary Matrix (Attachment C).

The recommendations were based, in part, on an analysis of location requirement scenarios (Attachment D), which provides four (4) options for consideration. The City also conducted an City of Stockton Printed on 2/22/2022Page 6 of 12
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analysis of the current statewide best practices to assist with data driven decision-making. The report includes zoning information for seven (7) jurisdictions (Attachment E) known for their robust programs. They include the Cities of Adelanto, Greenfield, Long Beach, Los Angeles, Oakland, San Francisco, and Santa Rosa. The report also includes zoning requirements for local jurisdictions, including the Cities of Ceres, Elk Grove, Modesto, Tracy, Turlock, Sacramento, and San Joaquin, Stanislaus, and Sacramento Counties.

Lastly, the City, through a consultant, conducted an equity assessment to determine areas of improvement for the City’s Commercial Cannabis Equity Lottery Program. The details and results of the assessment are found in the Equity Analysis Report (Attachment F). The recommendations in the proposed Ordinance balance the results found in the Best Practices Report, the Equity Analysis Report, and the feedback received by City Council, Legislation and Environmental Committee, Planning Commission, and the Public.

Proposed Amendment
Excluding the varying location requirements in Options 1-4 (see Table 3 below), the following chart illustrates the proposed changes to Titles 5 and 16 of the Stockton Municipal Code (SMC), regardless of option.

Table 2 (See table footnotes for clarifications)
SMC Section Change

5.98.020 Workforce
diversity incentive
program.

Change business license tax payments from annually to semi-annually

5.99.030 Change business license tax payments from annually to semi-annually

5.100.080 Limitation…
of operators permits
Addition of a cap on retailer operators (storefronts), maximum of fourteen (14) active Operators Permits
Clarification that only one (1) Operators Permit will be issued per Use Permit for the same business type (excludes multiple different business types and by-right uses)

5.100.310 Change business license tax payments from annually to semi-annually

16.20.020 (Table 2-2) Allowance for Retail, Distribution, Manufacturing (RDM) microbusinesses to be located within Commercial, Office (CO), Commercial, General (CG), Commercial, Large-Scale (CL) zoning districts if the retail component of the business floor area is 50% or more and no cultivation activities take place.

Removal of Cannabis retailer storefronts and non-storefront retail (delivery) from the Commercial Neighborhood (CN) zone

16.80.195.A Storefront
Retailer
Addition of a cap on the number of Commission Use Permits for Storefront Retailer cannabis businesses. Maximum of 14 in the City, regulated via number of active Operators Permits.

Consolidation of by-right allowance language for pre-existing business Removal of CN zoning district from allowed zoning districts Addition of residential “use” to minimum location requirements Addition of 1,000-foot separation between storefront retailers and religious facilities
Alignment of location requirements with ABC regulations (retaining religious facilities and recovery/treatment facilities)* Addition of 1,000-foot separation between storefront retailers and microbusinesses with a retail component*
Clarification that distances are measured from nearest property lines Removal of location waiver option‡
Clarification of what ”Established and in Operation” means in terms of existing uses
Allowance for transfer to a new location with obtaining a new use permit and surrendering the previous use permit for former location

16.80.195.B Non-
Storefront Retail
(Delivery)
Clarification of AUP requirement for new businesses after 7/16/2019 Removal of CN zoning district from allowed zoning districts Addition of residential “use” to minimum location requirements Alignment of location requirements with ABC regulations (retaining religious facilities and recovery/treatment facilities)* Addition of 1,000-foot separation between non-storefront retailers and religious facilities†
Exemption from 600-foot separation for religious facilities in IL and IG zones*‡
Clarification that distances are measured from nearest property lines Removal of location waiver option‡
Clarification of what ”Established and in Operation” means in terms of existing uses
Allowance for transfer to a new location with obtaining a new use permit and surrendering the previous use permit for former location Removal of lottery requirement

16.80.195.C Cultivator Removal of lottery requirement
Consolidation of by-right allowance language for pre-existing business Addition of residential “use” to minimum location requirements Alignment of location requirements with ABC regulations (retaining religious facilities and recovery/treatment facilities)* Addition of 1,000-foot separation between cultivators and religious facilities†
Exemption from 600-foot separation for religious facilities in IL and IG zones*‡
Clarification that distances are measured from nearest property lines Removal of location waiver option‡
Clarification of what ”Established and in Operation” means in terms of existing uses
Allowance for transfer to a new location with obtaining a new use permit and surrendering the previous use permit for former location

16.80.195.D Volatile
Manufacturer
Removal of lottery requirement
Addition of residential “use” to minimum location requirements Alignment of location requirements with ABC regulations (retaining religious facilities and recovery/treatment facilities)* Addition of 1,000-foot separation between volatile manufacturers and religious facilities†
Exemption from 600-foot separation for religious facilities in IL and IG zones*‡
Clarification that distances are measured from nearest property lines Removal of location waiver option‡
Clarification of what ”Established and in Operation” means in terms of existing uses
Allowance for transfer to a new location with obtaining a new use permit and surrendering the previous use permit for former location

16.80.195.E Non-
Volatile Manufacturer
and 16.80.195.F
Distributor
Addition of residential “use” to minimum location requirements Alignment of location requirements with ABC regulations (retaining religious facilities and recovery/treatment facilities)* Addition of 1,000-foot separation between non-volatile
manufacturers/distributors and religious facilities†
Exemption from 600-foot separation for religious facilities in IL and IG zones*‡
Clarification that distances are measured from nearest property lines Removal of location waiver option‡
Clarification of what ”Established and in Operation” means in terms of existing uses
Allowance for transfer to a new location with obtaining a new use permit and surrendering the previous use permit for former location

16.80.195.G Testing
Laboratory
Addition of residential “use” to minimum location requirements Alignment of location requirements with ABC regulations (retaining religious facilities and recovery/treatment facilities)* Addition of 1,000-foot separation between testing laboratories and religious facilities†
Exemption from 600-foot separation for religious facilities in IL and IG zones*‡
Clarification that distances are measured from nearest property lines Removal of location waiver option‡
Clarification of what ‘Established and in Operation” means in terms of existing uses

16.80.195.H
Microbusiness
Allowance for RDM microbusinesses to be located within Commercial, Office (CO), Commercial, General (CG), Commercial, Large-Scale (CL) zoning districts if the retail component of the business floor area is 50% or more and no cultivation activities take place.

Addition of residential “use” to minimum location requirements Alignment of location requirements with ABC regulations (retaining religious facilities and recovery/treatment facilities)* Addition of 1,000-foot separation between microbusinesses and religious facilities†
DCM Microbusiness exemption from 600-foot separation for religious facilities in IL and IG zones*‡
Addition of 1,000-foot separation between storefront retailers and microbusinesses with a retail component (RDC, RDM, and RCM types)* Clarification that distances are measured from nearest property lines Removal of location waiver option‡
Clarification of what ”Established and in Operation” means in terms of existing uses
Allowance for transfer to a new location with obtaining a new use permit and surrendering the previous use permit for former location

16.80.195.K Equity
Program
Updated language to reflect that the Equity Program now exists (deleted “The City shall create…”)
Added 5-year residency requirement
Removed MBE/WBE, Opportunity Zone/HUD designated area
residency as eligibility options for equity applicants
Removed Cultivators and Volatile Manufacturers from controlled roll- out (annual limit) requirement.

Clarified that there are no annual limits on Non-storefront Retail (delivery only), Cultivator, Volatile Manufacturer, Non-Volatile Manufacturer, Distributor, and Testing Laboratory business types.

Clarified lottery process to include a lottery application form which will include proposed business address for use permit. Said address shall meet all location requirements.

Additional language stating that lottery deadlines will be publicly advertised by the City.

Removed Cultivators and Volatile Manufacturers from lottery process Additional language to clarify that lottery winners must then apply for a use permit in accordance with SMC 16.168.

New language clarifying that lottery winners are entitled to one (1) use permit submittal and if the use permit is denied then the lottery winner status expires.

New language requiring that lottery winners must submit their land use applications (i.e. use permit applications) within 90-days (120-days in Option 4) of notification that they won the lottery and that nonsubmittal within that time frame is grounds for revocation of lottery winner status.

Clarifying language regarding lottery winners’ good faith efforts towards obtaining a use permit.

Clarifying language regarding next steps if a lottery winner’s status is revoked, denied, or withdrawn.

New language requiring an equity applicant maintain over 50% ownership of business for a minimum of 5 years. Includes a sales provision for hardship situations.

New language requiring annual metrics and annual submittal for 5 years starting at operator’s permit approval.

New language providing resources/assistance to equity applicants if they are available.

New language requiring all equity applicants that received resources (either lottery or assistance) to follow ownership and metric reporting requirements.

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SMC Section Change

5.98.020 Workforce
diversity incentive
program.

Change business license tax payments from annually to semi-annually

5.99.030 Change business license tax payments from annually to semi-annually

5.100.080 Limitation…
of operators permits
Addition of a cap on retailer operators (storefronts), maximum of fourteen (14) active Operators Permits
Clarification that only one (1) Operators Permit will be issued per Use Permit for the same business type (excludes multiple different business types and by-right uses)

5.100.310 Change business license tax payments from annually to semi-annually

16.20.020 (Table 2-2) Allowance for Retail, Distribution, Manufacturing (RDM) microbusinesses to be located within Commercial, Office (CO), Commercial, General (CG), Commercial, Large-Scale (CL) zoning districts if the retail component of the business floor area is 50% or more and no cultivation activities take place.

Removal of Cannabis retailer storefronts and non-storefront retail (delivery) from the Commercial Neighborhood (CN) zone

16.80.195.A Storefront
Retailer
Addition of a cap on the number of Commission Use Permits for Storefront Retailer cannabis businesses. Maximum of 14 in the City, regulated via number of active Operators Permits.

Consolidation of by-right allowance language for pre-existing business Removal of CN zoning district from allowed zoning districts Addition of residential “use” to minimum location requirements Addition of 1,000-foot separation between storefront retailers and religious facilities
Alignment of location requirements with ABC regulations (retaining religious facilities and recovery/treatment facilities)* Addition of 1,000-foot separation between storefront retailers and microbusinesses with a retail component*
Clarification that distances are measured from nearest property lines Removal of location waiver option‡
Clarification of what ”Established and in Operation” means in terms of existing uses
Allowance for transfer to a new location with obtaining a new use permit and surrendering the previous use permit for former location

16.80.195.B Non-
Storefront Retail
(Delivery)
Clarification of AUP requirement for new businesses after 7/16/2019 Removal of CN zoning district from allowed zoning districts Addition of residential “use” to minimum location requirements Alignment of location requirements with ABC regulations (retaining religious facilities and recovery/treatment facilities)* Addition of 1,000-foot separation between non-storefront retailers and religious facilities†
Exemption from 600-foot separation for religious facilities in IL and IG zones*‡
Clarification that distances are measured from nearest property lines Removal of location waiver option‡
Clarification of what ”Established and in Operation” means in terms of existing uses
Allowance for transfer to a new location with obtaining a new use permit and surrendering the previous use permit for former location Removal of lottery requirement

16.80.195.C Cultivator Removal of lottery requirement
Consolidation of by-right allowance language for pre-existing business Addition of residential “use” to minimum location requirements Alignment of location requirements with ABC regulations (retaining religious facilities and recovery/treatment facilities)* Addition of 1,000-foot separation between cultivators and religious facilities†
Exemption from 600-foot separation for religious facilities in IL and IG zones*‡
Clarification that distances are measured from nearest property lines Removal of location waiver option‡
Clarification of what ”Established and in Operation” means in terms of existing uses
Allowance for transfer to a new location with obtaining a new use permit and surrendering the previous use permit for former location

16.80.195.D Volatile
Manufacturer
Removal of lottery requirement
Addition of residential “use” to minimum location requirements Alignment of location requirements with ABC regulations (retaining religious facilities and recovery/treatment facilities)* Addition of 1,000-foot separation between volatile manufacturers and religious facilities†
Exemption from 600-foot separation for religious facilities in IL and IG zones*‡
Clarification that distances are measured from nearest property lines Removal of location waiver option‡
Clarification of what ”Established and in Operation” means in terms of existing uses
Allowance for transfer to a new location with obtaining a new use permit and surrendering the previous use permit for former location

16.80.195.E Non-
Volatile Manufacturer
and 16.80.195.F
Distributor
Addition of residential “use” to minimum location requirements Alignment of location requirements with ABC regulations (retaining religious facilities and recovery/treatment facilities)* Addition of 1,000-foot separation between non-volatile
manufacturers/distributors and religious facilities†
Exemption from 600-foot separation for religious facilities in IL and IG zones*‡
Clarification that distances are measured from nearest property lines Removal of location waiver option‡
Clarification of what ”Established and in Operation” means in terms of existing uses
Allowance for transfer to a new location with obtaining a new use permit and surrendering the previous use permit for former location

16.80.195.G Testing
Laboratory
Addition of residential “use” to minimum location requirements Alignment of location requirements with ABC regulations (retaining religious facilities and recovery/treatment facilities)* Addition of 1,000-foot separation between testing laboratories and religious facilities†
Exemption from 600-foot separation for religious facilities in IL and IG zones*‡
Clarification that distances are measured from nearest property lines Removal of location waiver option‡
Clarification of what ‘Established and in Operation” means in terms of existing uses

16.80.195.H
Microbusiness
Allowance for RDM microbusinesses to be located within Commercial, Office (CO), Commercial, General (CG), Commercial, Large-Scale (CL) zoning districts if the retail component of the business floor area is 50% or more and no cultivation activities take place.

Addition of residential “use” to minimum location requirements Alignment of location requirements with ABC regulations (retaining religious facilities and recovery/treatment facilities)* Addition of 1,000-foot separation between microbusinesses and religious facilities†
DCM Microbusiness exemption from 600-foot separation for religious facilities in IL and IG zones*‡
Addition of 1,000-foot separation between storefront retailers and microbusinesses with a retail component (RDC, RDM, and RCM types)* Clarification that distances are measured from nearest property lines Removal of location waiver option‡
Clarification of what ”Established and in Operation” means in terms of existing uses
Allowance for transfer to a new location with obtaining a new use permit and surrendering the previous use permit for former location

16.80.195.K Equity
Program
Updated language to reflect that the Equity Program now exists (deleted “The City shall create…”)
Added 5-year residency requirement
Removed MBE/WBE, Opportunity Zone/HUD designated area
residency as eligibility options for equity applicants
Removed Cultivators and Volatile Manufacturers from controlled roll- out (annual limit) requirement.

Clarified that there are no annual limits on Non-storefront Retail (delivery only), Cultivator, Volatile Manufacturer, Non-Volatile Manufacturer, Distributor, and Testing Laboratory business types.

Clarified lottery process to include a lottery application form which will include proposed business address for use permit. Said address shall meet all location requirements.

Additional language stating that lottery deadlines will be publicly advertised by the City.

Removed Cultivators and Volatile Manufacturers from lottery process Additional language to clarify that lottery winners must then apply for a use permit in accordance with SMC 16.168.

New language clarifying that lottery winners are entitled to one (1) use permit submittal and if the use permit is denied then the lottery winner status expires.

New language requiring that lottery winners must submit their land use applications (i.e. use permit applications) within 90-days (120-days in Option 4) of notification that they won the lottery and that nonsubmittal within that time frame is grounds for revocation of lottery winner status.

Clarifying language regarding lottery winners’ good faith efforts towards obtaining a use permit.

Clarifying language regarding next steps if a lottery winner’s status is revoked, denied, or withdrawn.

New language requiring an equity applicant maintain over 50% ownership of business for a minimum of 5 years. Includes a sales provision for hardship situations.

New language requiring annual metrics and annual submittal for 5 years starting at operator’s permit approval.

New language providing resources/assistance to equity applicants if they are available.

New language requiring all equity applicants that received resources (either lottery or assistance) to follow ownership and metric reporting requirements.

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SMC Section Change

5.98.020 Workforce
diversity incentive
program.

Change business license tax payments from annually to semi-annually

5.99.030 Change business license tax payments from annually to semi-annually

5.100.080 Limitation…
of operators permits
Addition of a cap on retailer operators (storefronts), maximum of fourteen (14) active Operators Permits
Clarification that only one (1) Operators Permit will be issued per Use Permit for the same business type (excludes multiple different business types and by-right uses)

5.100.310 Change business license tax payments from annually to semi-annually

16.20.020 (Table 2-2) Allowance for Retail, Distribution, Manufacturing (RDM) microbusinesses to be located within Commercial, Office (CO), Commercial, General (CG), Commercial, Large-Scale (CL) zoning districts if the retail component of the business floor area is 50% or more and no cultivation activities take place.

Removal of Cannabis retailer storefronts and non-storefront retail (delivery) from the Commercial Neighborhood (CN) zone

16.80.195.A Storefront
Retailer
Addition of a cap on the number of Commission Use Permits for Storefront Retailer cannabis businesses. Maximum of 14 in the City, regulated via number of active Operators Permits.

Consolidation of by-right allowance language for pre-existing business Removal of CN zoning district from allowed zoning districts Addition of residential “use” to minimum location requirements Addition of 1,000-foot separation between storefront retailers and religious facilities
Alignment of location requirements with ABC regulations (retaining religious facilities and recovery/treatment facilities)* Addition of 1,000-foot separation between storefront retailers and microbusinesses with a retail component*
Clarification that distances are measured from nearest property lines Removal of location waiver option‡
Clarification of what ”Established and in Operation” means in terms of existing uses
Allowance for transfer to a new location with obtaining a new use permit and surrendering the previous use permit for former location

16.80.195.B Non-
Storefront Retail
(Delivery)
Clarification of AUP requirement for new businesses after 7/16/2019 Removal of CN zoning district from allowed zoning districts Addition of residential “use” to minimum location requirements Alignment of location requirements with ABC regulations (retaining religious facilities and recovery/treatment facilities)* Addition of 1,000-foot separation between non-storefront retailers and religious facilities†
Exemption from 600-foot separation for religious facilities in IL and IG zones*‡
Clarification that distances are measured from nearest property lines Removal of location waiver option‡
Clarification of what ”Established and in Operation” means in terms of existing uses
Allowance for transfer to a new location with obtaining a new use permit and surrendering the previous use permit for former location Removal of lottery requirement

16.80.195.C Cultivator Removal of lottery requirement
Consolidation of by-right allowance language for pre-existing business Addition of residential “use” to minimum location requirements Alignment of location requirements with ABC regulations (retaining religious facilities and recovery/treatment facilities)* Addition of 1,000-foot separation between cultivators and religious facilities†
Exemption from 600-foot separation for religious facilities in IL and IG zones*‡
Clarification that distances are measured from nearest property lines Removal of location waiver option‡
Clarification of what ”Established and in Operation” means in terms of existing uses
Allowance for transfer to a new location with obtaining a new use permit and surrendering the previous use permit for former location

16.80.195.D Volatile
Manufacturer
Removal of lottery requirement
Addition of residential “use” to minimum location requirements Alignment of location requirements with ABC regulations (retaining religious facilities and recovery/treatment facilities)* Addition of 1,000-foot separation between volatile manufacturers and religious facilities†
Exemption from 600-foot separation for religious facilities in IL and IG zones*‡
Clarification that distances are measured from nearest property lines Removal of location waiver option‡
Clarification of what ”Established and in Operation” means in terms of existing uses
Allowance for transfer to a new location with obtaining a new use permit and surrendering the previous use permit for former location

16.80.195.E Non-
Volatile Manufacturer
and 16.80.195.F
Distributor
Addition of residential “use” to minimum location requirements Alignment of location requirements with ABC regulations (retaining religious facilities and recovery/treatment facilities)* Addition of 1,000-foot separation between non-volatile
manufacturers/distributors and religious facilities†
Exemption from 600-foot separation for religious facilities in IL and IG zones*‡
Clarification that distances are measured from nearest property lines Removal of location waiver option‡
Clarification of what ”Established and in Operation” means in terms of existing uses
Allowance for transfer to a new location with obtaining a new use permit and surrendering the previous use permit for former location

16.80.195.G Testing
Laboratory
Addition of residential “use” to minimum location requirements Alignment of location requirements with ABC regulations (retaining religious facilities and recovery/treatment facilities)* Addition of 1,000-foot separation between testing laboratories and religious facilities†
Exemption from 600-foot separation for religious facilities in IL and IG zones*‡
Clarification that distances are measured from nearest property lines Removal of location waiver option‡
Clarification of what ‘Established and in Operation” means in terms of existing uses

16.80.195.H
Microbusiness
Allowance for RDM microbusinesses to be located within Commercial, Office (CO), Commercial, General (CG), Commercial, Large-Scale (CL) zoning districts if the retail component of the business floor area is 50% or more and no cultivation activities take place.

Addition of residential “use” to minimum location requirements Alignment of location requirements with ABC regulations (retaining religious facilities and recovery/treatment facilities)* Addition of 1,000-foot separation between microbusinesses and religious facilities†
DCM Microbusiness exemption from 600-foot separation for religious facilities in IL and IG zones*‡
Addition of 1,000-foot separation between storefront retailers and microbusinesses with a retail component (RDC, RDM, and RCM types)* Clarification that distances are measured from nearest property lines Removal of location waiver option‡
Clarification of what ”Established and in Operation” means in terms of existing uses
Allowance for transfer to a new location with obtaining a new use permit and surrendering the previous use permit for former location

16.80.195.K Equity
Program
Updated language to reflect that the Equity Program now exists (deleted “The City shall create…”)
Added 5-year residency requirement
Removed MBE/WBE, Opportunity Zone/HUD designated area
residency as eligibility options for equity applicants
Removed Cultivators and Volatile Manufacturers from controlled roll- out (annual limit) requirement.

Clarified that there are no annual limits on Non-storefront Retail (delivery only), Cultivator, Volatile Manufacturer, Non-Volatile Manufacturer, Distributor, and Testing Laboratory business types.

Clarified lottery process to include a lottery application form which will include proposed business address for use permit. Said address shall meet all location requirements.

Additional language stating that lottery deadlines will be publicly advertised by the City.

Removed Cultivators and Volatile Manufacturers from lottery process Additional language to clarify that lottery winners must then apply for a use permit in accordance with SMC 16.168.

New language clarifying that lottery winners are entitled to one (1) use permit submittal and if the use permit is denied then the lottery winner status expires.

New language requiring that lottery winners must submit their land use applications (i.e. use permit applications) within 90-days (120-days in Option 4) of notification that they won the lottery and that nonsubmittal within that time frame is grounds for revocation of lottery winner status.

Clarifying language regarding lottery winners’ good faith efforts towards obtaining a use permit.

Clarifying language regarding next steps if a lottery winner’s status is revoked, denied, or withdrawn.

New language requiring an equity applicant maintain over 50% ownership of business for a minimum of 5 years. Includes a sales provision for hardship situations.

New language requiring annual metrics and annual submittal for 5 years starting at operator’s permit approval.

New language providing resources/assistance to equity applicants if they are available.

New language requiring all equity applicants that received resources (either lottery or assistance) to follow ownership and metric reporting requirements.

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SMC Section Change

5.98.020 Workforce
diversity incentive
program.

Change business license tax payments from annually to semi-annually

5.99.030 Change business license tax payments from annually to semi-annually

5.100.080 Limitation…
of operators permits
Addition of a cap on retailer operators (storefronts), maximum of fourteen (14) active Operators Permits
Clarification that only one (1) Operators Permit will be issued per Use Permit for the same business type (excludes multiple different business types and by-right uses)

5.100.310 Change business license tax payments from annually to semi-annually

16.20.020 (Table 2-2) Allowance for Retail, Distribution, Manufacturing (RDM) microbusinesses to be located within Commercial, Office (CO), Commercial, General (CG), Commercial, Large-Scale (CL) zoning districts if the retail component of the business floor area is 50% or more and no cultivation activities take place.

Removal of Cannabis retailer storefronts and non-storefront retail (delivery) from the Commercial Neighborhood (CN) zone

16.80.195.A Storefront
Retailer
Addition of a cap on the number of Commission Use Permits for Storefront Retailer cannabis businesses. Maximum of 14 in the City, regulated via number of active Operators Permits.

Consolidation of by-right allowance language for pre-existing business Removal of CN zoning district from allowed zoning districts Addition of residential “use” to minimum location requirements Addition of 1,000-foot separation between storefront retailers and religious facilities
Alignment of location requirements with ABC regulations (retaining religious facilities and recovery/treatment facilities)* Addition of 1,000-foot separation between storefront retailers and microbusinesses with a retail component*
Clarification that distances are measured from nearest property lines Removal of location waiver option‡
Clarification of what ”Established and in Operation” means in terms of existing uses
Allowance for transfer to a new location with obtaining a new use permit and surrendering the previous use permit for former location

16.80.195.B Non-
Storefront Retail
(Delivery)
Clarification of AUP requirement for new businesses after 7/16/2019 Removal of CN zoning district from allowed zoning districts Addition of residential “use” to minimum location requirements Alignment of location requirements with ABC regulations (retaining religious facilities and recovery/treatment facilities)* Addition of 1,000-foot separation between non-storefront retailers and religious facilities†
Exemption from 600-foot separation for religious facilities in IL and IG zones*‡
Clarification that distances are measured from nearest property lines Removal of location waiver option‡
Clarification of what ”Established and in Operation” means in terms of existing uses
Allowance for transfer to a new location with obtaining a new use permit and surrendering the previous use permit for former location Removal of lottery requirement

16.80.195.C Cultivator Removal of lottery requirement
Consolidation of by-right allowance language for pre-existing business Addition of residential “use” to minimum location requirements Alignment of location requirements with ABC regulations (retaining religious facilities and recovery/treatment facilities)* Addition of 1,000-foot separation between cultivators and religious facilities†
Exemption from 600-foot separation for religious facilities in IL and IG zones*‡
Clarification that distances are measured from nearest property lines Removal of location waiver option‡
Clarification of what ”Established and in Operation” means in terms of existing uses
Allowance for transfer to a new location with obtaining a new use permit and surrendering the previous use permit for former location

16.80.195.D Volatile
Manufacturer
Removal of lottery requirement
Addition of residential “use” to minimum location requirements Alignment of location requirements with ABC regulations (retaining religious facilities and recovery/treatment facilities)* Addition of 1,000-foot separation between volatile manufacturers and religious facilities†
Exemption from 600-foot separation for religious facilities in IL and IG zones*‡
Clarification that distances are measured from nearest property lines Removal of location waiver option‡
Clarification of what ”Established and in Operation” means in terms of existing uses
Allowance for transfer to a new location with obtaining a new use permit and surrendering the previous use permit for former location

16.80.195.E Non-
Volatile Manufacturer
and 16.80.195.F
Distributor
Addition of residential “use” to minimum location requirements Alignment of location requirements with ABC regulations (retaining religious facilities and recovery/treatment facilities)* Addition of 1,000-foot separation between non-volatile
manufacturers/distributors and religious facilities†
Exemption from 600-foot separation for religious facilities in IL and IG zones*‡
Clarification that distances are measured from nearest property lines Removal of location waiver option‡
Clarification of what ”Established and in Operation” means in terms of existing uses
Allowance for transfer to a new location with obtaining a new use permit and surrendering the previous use permit for former location

16.80.195.G Testing
Laboratory
Addition of residential “use” to minimum location requirements Alignment of location requirements with ABC regulations (retaining religious facilities and recovery/treatment facilities)* Addition of 1,000-foot separation between testing laboratories and religious facilities†
Exemption from 600-foot separation for religious facilities in IL and IG zones*‡
Clarification that distances are measured from nearest property lines Removal of location waiver option‡
Clarification of what ‘Established and in Operation” means in terms of existing uses

16.80.195.H
Microbusiness
Allowance for RDM microbusinesses to be located within Commercial, Office (CO), Commercial, General (CG), Commercial, Large-Scale (CL) zoning districts if the retail component of the business floor area is 50% or more and no cultivation activities take place.

Addition of residential “use” to minimum location requirements Alignment of location requirements with ABC regulations (retaining religious facilities and recovery/treatment facilities)* Addition of 1,000-foot separation between microbusinesses and religious facilities†
DCM Microbusiness exemption from 600-foot separation for religious facilities in IL and IG zones*‡
Addition of 1,000-foot separation between storefront retailers and microbusinesses with a retail component (RDC, RDM, and RCM types)* Clarification that distances are measured from nearest property lines Removal of location waiver option‡
Clarification of what ”Established and in Operation” means in terms of existing uses
Allowance for transfer to a new location with obtaining a new use permit and surrendering the previous use permit for former location

16.80.195.K Equity
Program
Updated language to reflect that the Equity Program now exists (deleted “The City shall create…”)
Added 5-year residency requirement
Removed MBE/WBE, Opportunity Zone/HUD designated area
residency as eligibility options for equity applicants
Removed Cultivators and Volatile Manufacturers from controlled roll- out (annual limit) requirement.

Clarified that there are no annual limits on Non-storefront Retail (delivery only), Cultivator, Volatile Manufacturer, Non-Volatile Manufacturer, Distributor, and Testing Laboratory business types.

Clarified lottery process to include a lottery application form which will include proposed business address for use permit. Said address shall meet all location requirements.

Additional language stating that lottery deadlines will be publicly advertised by the City.

Removed Cultivators and Volatile Manufacturers from lottery process Additional language to clarify that lottery winners must then apply for a use permit in accordance with SMC 16.168.

New language clarifying that lottery winners are entitled to one (1) use permit submittal and if the use permit is denied then the lottery winner status expires.

New language requiring that lottery winners must submit their land use applications (i.e. use permit applications) within 90-days (120-days in Option 4) of notification that they won the lottery and that nonsubmittal within that time frame is grounds for revocation of lottery winner status.

Clarifying language regarding lottery winners’ good faith efforts towards obtaining a use permit.

Clarifying language regarding next steps if a lottery winner’s status is revoked, denied, or withdrawn.

New language requiring an equity applicant maintain over 50% ownership of business for a minimum of 5 years. Includes a sales provision for hardship situations.

New language requiring annual metrics and annual submittal for 5 years starting at operator’s permit approval.

New language providing resources/assistance to equity applicants if they are available.

New language requiring all equity applicants that received resources (either lottery or assistance) to follow ownership and metric reporting requirements.

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File #: 22-0050, Version: 1
SMC Section Change

5.98.020 Workforce
diversity incentive
program.

Change business license tax payments from annually to semi-annually

5.99.030 Change business license tax payments from annually to semi-annually

5.100.080 Limitation…
of operators permits
Addition of a cap on retailer operators (storefronts), maximum of fourteen (14) active Operators Permits
Clarification that only one (1) Operators Permit will be issued per Use Permit for the same business type (excludes multiple different business types and by-right uses)

5.100.310 Change business license tax payments from annually to semi-annually

16.20.020 (Table 2-2) Allowance for Retail, Distribution, Manufacturing (RDM) microbusinesses to be located within Commercial, Office (CO), Commercial, General (CG), Commercial, Large-Scale (CL) zoning districts if the retail component of the business floor area is 50% or more and no cultivation activities take place.

Removal of Cannabis retailer storefronts and non-storefront retail (delivery) from the Commercial Neighborhood (CN) zone

16.80.195.A Storefront
Retailer
Addition of a cap on the number of Commission Use Permits for Storefront Retailer cannabis businesses. Maximum of 14 in the City, regulated via number of active Operators Permits.

Consolidation of by-right allowance language for pre-existing business Removal of CN zoning district from allowed zoning districts Addition of residential “use” to minimum location requirements Addition of 1,000-foot separation between storefront retailers and religious facilities
Alignment of location requirements with ABC regulations (retaining religious facilities and recovery/treatment facilities)* Addition of 1,000-foot separation between storefront retailers and microbusinesses with a retail component*
Clarification that distances are measured from nearest property lines Removal of location waiver option‡
Clarification of what ”Established and in Operation” means in terms of existing uses
Allowance for transfer to a new location with obtaining a new use permit and surrendering the previous use permit for former location

16.80.195.B Non-
Storefront Retail
(Delivery)
Clarification of AUP requirement for new businesses after 7/16/2019 Removal of CN zoning district from allowed zoning districts Addition of residential “use” to minimum location requirements Alignment of location requirements with ABC regulations (retaining religious facilities and recovery/treatment facilities)* Addition of 1,000-foot separation between non-storefront retailers and religious facilities†
Exemption from 600-foot separation for religious facilities in IL and IG zones*‡
Clarification that distances are measured from nearest property lines Removal of location waiver option‡
Clarification of what ”Established and in Operation” means in terms of existing uses
Allowance for transfer to a new location with obtaining a new use permit and surrendering the previous use permit for former location Removal of lottery requirement

16.80.195.C Cultivator Removal of lottery requirement
Consolidation of by-right allowance language for pre-existing business Addition of residential “use” to minimum location requirements Alignment of location requirements with ABC regulations (retaining religious facilities and recovery/treatment facilities)* Addition of 1,000-foot separation between cultivators and religious facilities†
Exemption from 600-foot separation for religious facilities in IL and IG zones*‡
Clarification that distances are measured from nearest property lines Removal of location waiver option‡
Clarification of what ”Established and in Operation” means in terms of existing uses
Allowance for transfer to a new location with obtaining a new use permit and surrendering the previous use permit for former location

16.80.195.D Volatile
Manufacturer
Removal of lottery requirement
Addition of residential “use” to minimum location requirements Alignment of location requirements with ABC regulations (retaining religious facilities and recovery/treatment facilities)* Addition of 1,000-foot separation between volatile manufacturers and religious facilities†
Exemption from 600-foot separation for religious facilities in IL and IG zones*‡
Clarification that distances are measured from nearest property lines Removal of location waiver option‡
Clarification of what ”Established and in Operation” means in terms of existing uses
Allowance for transfer to a new location with obtaining a new use permit and surrendering the previous use permit for former location

16.80.195.E Non-
Volatile Manufacturer
and 16.80.195.F
Distributor
Addition of residential “use” to minimum location requirements Alignment of location requirements with ABC regulations (retaining religious facilities and recovery/treatment facilities)* Addition of 1,000-foot separation between non-volatile
manufacturers/distributors and religious facilities†
Exemption from 600-foot separation for religious facilities in IL and IG zones*‡
Clarification that distances are measured from nearest property lines Removal of location waiver option‡
Clarification of what ”Established and in Operation” means in terms of existing uses
Allowance for transfer to a new location with obtaining a new use permit and surrendering the previous use permit for former location

16.80.195.G Testing
Laboratory
Addition of residential “use” to minimum location requirements Alignment of location requirements with ABC regulations (retaining religious facilities and recovery/treatment facilities)* Addition of 1,000-foot separation between testing laboratories and religious facilities†
Exemption from 600-foot separation for religious facilities in IL and IG zones*‡
Clarification that distances are measured from nearest property lines Removal of location waiver option‡
Clarification of what ‘Established and in Operation” means in terms of existing uses

16.80.195.H
Microbusiness
Allowance for RDM microbusinesses to be located within Commercial, Office (CO), Commercial, General (CG), Commercial, Large-Scale (CL) zoning districts if the retail component of the business floor area is 50% or more and no cultivation activities take place.

Addition of residential “use” to minimum location requirements Alignment of location requirements with ABC regulations (retaining religious facilities and recovery/treatment facilities)* Addition of 1,000-foot separation between microbusinesses and religious facilities†
DCM Microbusiness exemption from 600-foot separation for religious facilities in IL and IG zones*‡
Addition of 1,000-foot separation between storefront retailers and microbusinesses with a retail component (RDC, RDM, and RCM types)* Clarification that distances are measured from nearest property lines Removal of location waiver option‡
Clarification of what ”Established and in Operation” means in terms of existing uses
Allowance for transfer to a new location with obtaining a new use permit and surrendering the previous use permit for former location

16.80.195.K Equity
Program
Updated language to reflect that the Equity Program now exists (deleted “The City shall create…”)
Added 5-year residency requirement
Removed MBE/WBE, Opportunity Zone/HUD designated area
residency as eligibility options for equity applicants
Removed Cultivators and Volatile Manufacturers from controlled roll- out (annual limit) requirement.

Clarified that there are no annual limits on Non-storefront Retail (delivery only), Cultivator, Volatile Manufacturer, Non-Volatile Manufacturer, Distributor, and Testing Laboratory business types.

Clarified lottery process to include a lottery application form which will include proposed business address for use permit. Said address shall meet all location requirements.

Additional language stating that lottery deadlines will be publicly advertised by the City.

Removed Cultivators and Volatile Manufacturers from lottery process Additional language to clarify that lottery winners must then apply for a use permit in accordance with SMC 16.168.

New language clarifying that lottery winners are entitled to one (1) use permit submittal and if the use permit is denied then the lottery winner status expires.

New language requiring that lottery winners must submit their land use applications (i.e. use permit applications) within 90-days (120-days in Option 4) of notification that they won the lottery and that nonsubmittal within that time frame is grounds for revocation of lottery winner status.

Clarifying language regarding lottery winners’ good faith efforts towards obtaining a use permit.

Clarifying language regarding next steps if a lottery winner’s status is revoked, denied, or withdrawn.

New language requiring an equity applicant maintain over 50% ownership of business for a minimum of 5 years. Includes a sales provision for hardship situations.

New language requiring annual metrics and annual submittal for 5 years starting at operator’s permit approval.

New language providing resources/assistance to equity applicants if they are available.

New language requiring all equity applicants that received resources (either lottery or assistance) to follow ownership and metric reporting requirements.
*Does not apply to Option 1, and Option 3’s location requirements only apply to parks and K-12 schools. † Applies to Option 4 Only
‡ Does not apply to Option 4
The following table provides a comparison of the location requirements between each Option.

Table 3
Requirement Option 1 Option 2 Option 3 Option 4
Elimination of location waiver option ü ü ü
300-foot separation from residential zone ü
300-foot separation from residential zone or use ü ü
600-foot separation from:

Parks ü ü ü ü
K-12 School ü ü ü ü
Day care center ü ü ü
Youth center ü ü ü
Childcare center ü ü ü
Childcare ü ü ü
In-home (family day care home) ü ü ü
Religious facilities ü ü*
Drug abuse or alcohol recovery/treatment facility ü ü ü 1,000-foot separation from Religious facilities ü
1,000-foot separation between all cannabis
storefront retailers and/or microbusinesses with a
retail component
ü ü ü
* Excludes religious facilities in IG/IL zones (for business types other than storefront retail and microbusinesses with a retail component)
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Feedback from all public meetings, study sessions, stakeholders, and related research have been incorporated into the proposed ordinance amendment and is being presented for the City Council’s review and direction. The suggested amendments are recommended to create a more simplified, transparent, and objective application and decision-making process.

Public Comment
On January 28, 2022, at least ten (10) days prior to the City Council hearing, a public notice for this item was published in the Record and mailed notice was sent to all property owners within a 300-foot radius of the project site, in accordance with SMC Section 16.88.030. As of the date of this writing, staff has not received written comment from the public on this project outside of the public hearing process.

Financial Summary
The financial impact on the City as a result of the proposed ordinance is unknown as potential market impacts vary depending on the ordinance option selected by the City Council.

Attachment A - Planning Commission 12/9/21 Minutes
Attachment B1 - Proposed Ordinance - Redlines Option 1
Attachment B2 - Proposed Ordinance - Redlines Option 2
Attachment B3 - Proposed Ordinance - Redlines Option 3
Attachment B4 - Proposed Ordinance - Redlines Option 4
Attachment C - Recommendation Summary Matrix
Attachment D - Location Requirement Options
Attachment E - Best Practices Report
Attachment F - Equity Analysis Report
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Attachment A
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Attachment A
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Attachment A
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Attachment A
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Attachment A
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Attachment B1
1 ORDINANCE NO.

AN ORDINANCE AMENDING TITLE 5, CHAPTER 5.98, SECTION 5.98.020, CHAPTER 5.99, SECTION 5.99.030, CHAPTER 5.100, SECTIONS 5.100.080,

5.100.310; AND TITLE 16, CHAPTER 16.20, SECTION 16.20.020 AND CHAPTER

16.80, SECTION 16.80.195 OF THE STOCKTON MUNICIPAL CODE RELATING TO

THE CANNABIS REGULATORY PROGRAM

BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF STOCKTON AS FOLLOWS:

SECTION I: AMENDMENT OF CODE

Title 5, Chapter 5.98, Section 5.98.020 is amended to read as follows:

5.98.020 Workforce diversity incentive program.

A. The workforce diversity program is a voluntary program for commercial cannabis businesses. Businesses will be able to apply for the program during the business license application process and annual business license renewal process.

B. Commercial cannabis businesses must meet a 50 percent diverse workforce requirement during the time of application of the business license or at the time of renewal.

C. To qualify, at least 50 percent of the business’ employees must reside within the SB 535 Disadvantaged area of the City of Stockton boundaries or reside in the Kelley Drive Neighborhood area, as defined by the Cannabis Program Administrative Guidelines referenced in Section 5.100.300, at the time of business license application or renewal.

D. If the threshold is met, the commercial cannabis business will be provided a 50 percent reduction of the total amount due in taxes based on estimated gross receipts at the time of application for a new license, or actual gross receipts provided at time of renewal of business license.

E. Existing commercial cannabis businesses will be able to participate in the voluntary program at the time of their annual business license renewal.

F. The determination of the final percentage and final decision of program eligibility will not qualify for an appeal process. All decisions are final.

SECTION II: AMENDMENT OF CODE

Title 5, Chapter 5.99, Section 5.99.030 is amended to read as follows:

SMC 5.99.030 Payment of tax.

Notwithstanding any provision to the contrary, every business, including nonprofit organizations, operating as a “medical cannabis business,” shall pay an annual business license tax to the City in the following amounts:

335
Attachment B1
2 A. On, or after January 1, 2011, a maximum of $25.00 for each $1,000.00 of gross receipts per year.

B. On, or after January 1, 2017, a minimum of $35.00 up to a maximum of $50.00 for each $1,000.00 of gross receipts per year, to be set by ordinance or resolution of the City Council.

C. Notwithstanding the tax rates imposed by this section, the City Council may, in its discretion, at any time by ordinance or resolution implement any lower tax rate it deems appropriate, and may increase such tax rate from time to time not to exceed the maximum tax rate authorized by this section.

D. Notwithstanding any provision to the contrary, every business, operating as an “adult-use cannabis business,” shall pay an annual business license tax to the City in the following amount:

1. On, or after October 18, 2018, a maximum of $100.00 for each $1,000.00 of gross receipts per year.

2. Notwithstanding the tax rates imposed by this section, the City Council may, in its discretion, at any time by ordinance or resolution implement any lower tax rate it deems appropriate, and may increase such tax rate from time to time not to exceed the maximum tax rate authorized by this section.

AE. Notwithstanding any provision to the contrary, on or after August 15, 2019, eEvery business, operating as a “cannabis business,” shall pay an semiannual business license tax to the City in the following amount:

1. Cultivators will pay five (5) percent of gross receipts per year semiannually;

2. Distributors will pay one (1) percent of gross receipts per year semiannually;

3. Non-volatile manufacturers will pay three (3) percent of gross receipts per year semiannually;

4. Volatile manufacturers will pay three (3) percent of gross receipts per year semiannually;

5. Testing laboratories will pay zero percent of gross receipts per year semiannually;

6. Retail storefront cannabis business will pay five (5) percent of gross receipts per year semiannually;

7. Retail non-storefront (delivery only) cannabis business will pay five (5) percent of gross receipts per year semiannually;

8. Microbusinesses will pay five (5) percent of gross receipts per year semiannually.

B. Cannabis businesses must apply for semiannual business licenses. Business license tax required hereunder shall be due and payable on the first day of January and July of each year.

C. Notwithstanding the tax rates imposed by this section, the City Council may, in its discretion, at any time by ordinance or resolution implement any lower tax rate it deems appropriate, and may increase such tax rate from time to time not to exceed the maximum tax rate authorized by this section.

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Attachment B1
3 SECTION III: AMENDMENT OF CODE

Title 5, Chapter 5.100, Section 5.100.080 is amended to read as follows:

5.100.080 Limitation on types and number of operators permits.

At no time shall there be in operation within the City more than fourteen (14) active operators permits for the Retailer Operator – Storefront commercial cannabis business type.

A. The City shall have the authority to issue the following operators permits which correspond with Annual State Licenses issued by the State, as follows:

Operators Permit
Annual State Licenses City Application
Status
Cultivator Operator
Permit
Type 1A – Specialty Indoor
Type 1B – Specialty Mixed-Light
Type 1C – Specialty Cottage – Indoor and
Mixed-Light Only
Type 2A – Small Indoor
Type 2B – Small Mixed-Light
Type 3A – Medium Indoor
Type 3B – Medium Mixed-Light
Type 4 – Nursery Processor
Limited Permit
Expansion Process
Distributor Operator
Permit
Type 11 – Distributor, Distributor Transport
Only Self-Distribution, Distributor Transport
Only
Open and Ongoing with
a Commission Use
Permit
Non-Volatile
Manufacturer
Operator Permit
Type 6 – Manufacturer 1 (Extractions via
non-volatile solvent and mechanical method;
also allows product infusion, and product
packaging and labeling)
Open and Ongoing with
a Commission Use
Permit

Volatile
Manufacturer
Operator Permit
Type 7 – Manufacturer 2 (Extractions via
volatile solvent, nonvolatile solvent, and
mechanical method; also allows product
infusion, and product packaging)
Limited Permit
Expansion Process
Retailer Operator
Permit Type 10 – Retailer Limited Permit
Expansion Process
Non-Storefront
Operator Permit Type 9 – Non-Storefront Delivery
Open and Ongoing with
an Administrative Use
Permit
Testing Laboratory
Operation Permit Type 8 – Testing laboratory Open and Ongoing by- right
Microbusiness Type 12 – Microbusiness Limited Permit
Expansion Process

B. A separate operators permit is required for each City permit type outlined above. (Ord. 2019-03-05-1501 C.S. § 3; Ord. 2018-09-18-1502 C.S. § 9; Res. 2016-06-28-1503-01 § I)
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4 C. In accordance with section 5.100.050, only one Operators Permit shall be issued per approved Use Permit for the same business type; notwithstanding multiple different business types or by-right uses as provided in sections 16.20.020 and 16.80.195.

SECTION IV: AMENDMENT OF CODE

Title 5, Chapter 5.100, Section 5.100.310 is amended to read as follows:

5.100.310 Business license tax.

Notwithstanding any provision to the contrary, all cannabis businesses shall pay an semiannual business license tax at the retail sales rate or at a designated higher rate, if adopted, based on gross receipts, even if it is a non-profit organization.

SECTION V: AMENDMENT OF CODE

Title 16, Chapter 16.20, Section 16.20.020 is amended to read as follows:

16.20.020 Allowable land uses and permit requirements

A. Requirements for Primary Uses. Table 2-2 identifies the primary land uses for each zoning district, except the MX and UC zoning districts. It identifies whether the use is allowed or not allowed, and indicates which land use permit would be required, if necessary, to authorize the use. Building permits or other permits may also be required by the Municipal Code. The land uses identified in Table 2-2 are defined in Division 8 (Glossary).

1. Permit Requirements for Primary Uses. The permitting requirements identified in Table 2-2 are:
a. Permitted (P). All land uses shown with a “P” in the table are allowed subject to compliance with all applicable provisions of this Development Code. Site plan review (Chapter 16.152) is required for new construction or for a change to a more intensive use, except as provided by Section 16.152.040 (Exemptions).
b. Land Development Permit (L). All land uses shown as “L” in the table that require construction of new structures or improvements, the expansion of an existing facility, or a change to a more intensive use, as determined by the Director, require the approval of a land development permit (Chapter 16.136). If there will be no construction, expansion of an existing facility, or a change to a more intensive use, the use is allowed without a new land development permit.
c. Administrative Use Permit (A). All land uses shown with an “A” in the tables are allowed subject to the approval of an administrative use 338
Attachment B1
5 permit (Chapter 16.172). If there is an existing use permit for the use and there will be no new construction or expansion of an existing facility, no new use permit shall be required.
d. Commission Use Permit (C). All land uses shown with a “C” in the tables are allowed subject to the approval of a commission use permit (Chapter 16.172). If there is an existing use permit for the use and there will be no new construction or expansion of an existing facility, no new use permit shall be required.
e. Not Allowed (Empty Box in Table). All land uses shown with an empty box in the table are not allowed in the applicable zoning district. f. Not Allowed, Except Under Special Circumstances (E). All land uses shown with an “E” on the table are not allowed in the applicable zoning district, except under the special circumstances identified in the specific use standards in Division 3.

2. Uses With Specific Standards. All uses, regardless of the type of permit that may be required, shall comply with all applicable provisions of this Development Code. In addition, if there is a section number in the last column of the table (“Specific Use Standards”), the use is also subject to the referenced provisions.

3. Multiple Uses on a Single Site. Where a proposed project includes multiple land uses, and more than one type of land use permit is required, the most restrictive land use permit shall apply for all land uses.

4. Changes to an Approved Project. Changes to an approved project that required a land use permit shall be subject to the requirements of Chapter

16.104 (Changes to an Approved Project).

5. Uses Not Listed. Land uses that are not listed in Table 2-2 are not allowed, except as otherwise provided by Section 16.08.020(E) (Rules of interpretation— Allowable uses of land).

B. Allowable Uses and Permit Requirements for the MX, UC and PT Districts. The uses of land that may be allowed within the MX, UC and PT zoning districts and the land use permit requirements for each allowable use shall be identified in the master development plan applicable to the specific site, in compliance with Chapter

16.140 (Master Development Plans) and the Rough and Ready Island Development Plan for the Port of Stockton, CA for the PT zoning district (as applicable).

C. Overlay Zoning Districts. Development located in overlay zoning districts (Aircraft Operations Overlay District, Design Review Overlay District, Channel Area Overlay District, and Magnolia Historic Overlay District) shall be in compliance with Chapter

16.28 (Overlay Zoning District Land Use and Development Standards). 339
Attachment B1
6 D. Accessory Uses. Accessory land uses are subject to the requirements of Section 16.80.020 (Accessory uses and structures).

E. Temporary Uses. Temporary uses are subject to the requirements of Chapter

16.164 (Temporary Activity Permits).

F. Freeway and Highway Oriented Uses. The following uses, when both located within 1,000 feet of Interstate 5, State Highway Route 4, or State Highway Route 99 and allowable through a Land Development Permit, Administrative Use Permit, or Commission Use Permit, shall be considered a Permitted (P) use:

1. Auto/Vehicle Services: Car Washes; and

2. Auto/Vehicle Services: Fueling Stations.

The measurement of distance under this provision shall be made from the outside boundaries of the respective freeway or highway right-of-way to the property line of the proposed use. This provision excludes land zoned MX, UC and PT.

TABLE 2-2

ALLOWABLE LAND USES AND PERMIT REQUIREMENTS

LAND USES PERMIT REQUIREMENT BY ZONING DISTRICT

SPECIFIC USE

STANDARDS

AGRICULTURAL AND RESOURCE-RELATED USES

RE RL RM RH CO CN CG CD CL CA IL IG PT PF OS
Agricultural activities &
facilities
P P P A 16.80.060
Cannabis cultivation C C C C 16.80.195 Community gardens P P P P P P P P P P P P L P 16.80.130 Conservation areas L L L L L L L L L L L L L L
Market gardens/urban
farms
L A A A P P P P P P P P 16.80.135
Mining A A A A
Urban agriculture P P P P P P P P P P P P 16.80.350

BUSINESS AND PROFESSIONAL USES

RE RL RM RH CO CN CG CD CL CA IL IG PT PF OS
Banks and financial
services

P P P P P P P
Business support
services

P P P P P P P
340
Attachment B1
7 LAND USES PERMIT REQUIREMENT BY ZONING DISTRICT

SPECIFIC USE

STANDARDS
Offices P A P P P P A P L 16.80.240

INDUSTRY, MANUFACTURING & PROCESSING USES

RE RL RM RH CO CN CG CD CL CA IL IG PT PF OS
Electricity generating
plants/facilities other
than nuclear
C C P P 16.80.170
Electronics, equipment
& appliance
manufacturing
P P P 16.80.170
Fabric product
manufacturing
P P P P 16.80.170
Food and beverage
product manufacturing
P P P P 16.80.170
|Furniture and fixtures
manufacturing
P P P 16.80.170
Handcraft industries,
small-scale
manufacturing
P P P P 16.80.170
Laundries and dry
cleaning plants
P P P 16.80.170
Manufacturing
Light P P P 16.80.170
Heavy A P 16.80.170
Cannabis distribution C C C 16.80.195 Cannabis
manufacturer (volatile
and non-volatile)
C C C 16.80.195
Cannabis,
microbusiness
C** C** C** C C 16.80.195
Cannabis testing
laboratory*
P P P P P P P 16.80.195
Metal products
fabrication,
machine/welding
shops
P P P 16.80.170
Petroleum storage and
distribution
A P 16.80.170
341
Attachment B1
8 LAND USES PERMIT REQUIREMENT BY ZONING DISTRICT

SPECIFIC USE

STANDARDS
Printing and publishing P L P P P L 16.80.170 Recycling and waste
facilities

Collection facility L L L P P P L 16.80.290 Redemption centers
Major C C C C C C C 16.80.290
Minor A A A A A A A 16.80.290
Recycling facility A P A 16.80.290 Scrap and
dismantling yards
A P 16.80.170
Transfer stations C P A 16.80.290 Research &
development (R&D)
A L P P P L 16.80.170
Storage yards P P P L 16.80.170
Warehouses P P P 16.80.170
Wholesaling and
distribution
P P P P 16.80.170

RECREATION, EDUCATION, AND PUBLIC ASSEMBLY USES

RE RL RM RH CO CN CG CD CL CA IL IG PT PF OS
Activity centers A A A A A A A A A L A L C
Adult related
establishments
P P P 16.80.030
Auditoriums, meeting
halls, and theaters

P P P P L L

16.24.080 (B)(2)

16.24.090 (B)

16.24.110 (D)

16.24.180 (D)
Bridge clubs and
nongambling board
games

P P P P P L
Card rooms C C C L

16.80.040

16.80.040
Clubs, lodges, and
private meeting halls

P P P P P L P P A
342
Attachment B1
9 LAND USES PERMIT REQUIREMENT BY ZONING DISTRICT

SPECIFIC USE

STANDARDS
Commercial
amusement facilities

A A A A A A
Educational facilities
Academic
schools—Private

A A A A A A A A
Academic
schools—Public

P P P P P
Colleges and
universities—
Private

C C
Vocational and
technical schools

P P P P P P P
Equipment repair
and maintenance
training

P P A P L
Specialized
education and
training

A A P P P A P P L
Vehicle repair and
maintenance
training

P A P P P L
Truck and heavy
equipment
education and
training

P P P L
Equestrian facilities C A A L C
Golf courses/country
clubs

C C C C C A A A P L A
Indoor recreation
facilities

A A A A A P L
Libraries and
museums

C C C P P P P P P P L A
Live entertainment P P P P P 16.80.180 Marinas C C C A A
Outdoor assembly
facilities

A A A L
343
Attachment B1
10 LAND USES PERMIT REQUIREMENT BY ZONING DISTRICT

SPECIFIC USE

STANDARDS
Outdoor commercial
recreation facilities

C C C C C A
Parks and
playgrounds

P P P P P P P P P P
Pool halls/billiard
parlors
C C L

16.80.040

16.80.270
Private entertainment
facilities

C C C C
Private residential
recreation facilities

A A A A

16.80.030

16.80.270
Recreational vehicle
parks

A A A L
Religious facilities A A A A P P P P P P P L 16.80.080 Studios P P P P P L

RESIDENTIAL USES

RE RL RM RH CO CN CG CD CL CA IL IG PT PF OS
Accessory dwelling
units (ADUs) and
junior accessory
dwelling units (JADUs)
P P P P P P P P P 16.80.310
Caretaker and
employee housing

P P P P P P P L L L L
Dwelling group P P P P L
Duplexes P P P P L 16.24.040
Mobile home parks A A A A A 16.24.040 Multifamily dwellings P P P P P P L 16.80.220 Co-living (dwelling unit
facility)
A A A A A 16.80.225
Organizational houses A A
Residential care
facilities

Assisted living
facilities
A C P P P P P L 16.80.300
Care homes, 6 or
fewer clients

P P P P P
344
Attachment B1
11 LAND USES PERMIT REQUIREMENT BY ZONING DISTRICT

SPECIFIC USE

STANDARDS
Family care homes,
7 or more clients
C C C L 16.80.300
Senior care
facilities, 7 or more
clients
A A A A L 16.80.300
Rooming and boarding
houses

A A L
Senior residential
projects
P P P P P P L 16.80.220
Single-family dwellings P P P P P L
Townhouses A P P P P P P L
Triplexes P P A L

RETAIL TRADE

RE RL RM RH CO CN CG CD CL CA IL IG PT PF OS
Agricultural chemical
sales
A L P 16.36.080
Alcoholic beverage
sales

Bars and
nightclubs—On-
sale
C C C C 16.80.270
Sale of alcohol—
Off-sale
C C C C C C 16.80.040
With another use—
On-sale

L L L L L L
Artisan shops P P P P P L P
Auto and vehicle
sales—New
L P

16.24.1120,

16.80.070,

16.80.330
Auto and vehicle
sales—Used

L A L

16.24.1120,

16.80.070,

16.80.330
Auto and vehicle
leasing/rental
A L A L 16.80.070
Auto parts sales P P P P A
345
Attachment B1
12 LAND USES PERMIT REQUIREMENT BY ZONING DISTRICT

SPECIFIC USE

STANDARDS
Building material
stores
A P L P P 16.80.330
Construction, farm &
heavy equipment
sales
A A P P P 16.80.330
Convenience stores C C C C

16.80.040,

16.80.140,

16.80.270
Furniture, furnishings,
and appliance stores
C P P P P P P 16.80.330
Mobile home sales A P 16.80.330 Nurseries and garden
supply stores
A C A P P P P P 16.80.330
Outdoor retail sales
and activities
A A A 16.80.260
Pet shops P P P P
Recreational vehicle &
boat sales—New/used
L A L 16.80.330
Restaurants P P P P P P P 16.80.250
Retail stores A P P P P P P P P 16.80.330
Secondhand
stores/pawn shops
A A A
Shopping centers
Neighborhood P P 16.80.330
Community P P 16.80.330
Regional P P 16.80.330
Warehouse retail
stores
C C C 16.80.330

SERVICES

RE RL RM RH CO CN CG CD CL CA IL IG PT PF OS
Adult day care
facilities

P P P P P A L
Animal services
Kennel and
boarding facilities

A A A A
346
Attachment B1
13 LAND USES PERMIT REQUIREMENT BY ZONING DISTRICT

SPECIFIC USE

STANDARDS
Pet grooming A A P P P P L
Training facilities A A L L L L L
Veterinary clinics
and animal
hospitals
A A C P P P P P 16.80.370
Auto/vehicle services
Car washes A A A P A P
Fueling stations A L L L P L P

16.80.320,

16.80.340
Inoperable vehicle
storage
L L
Maintenance/minor
repair
A P P P P P P P 16.80.320
Major repair/body
work
P P P P 16.80.340
Parking facilities C C C A A P P P P P P L 16.64.080 Vehicle storage L P P P P P L
Cannabis retailer
storefront
C C C C C C C 16.80.195
Child care facilities
Child care centers C C C C P P P P P P P P 16.80.100 Large family child
care homes
P P P P P P P P P 16.80.100
Small family child
care homes

P P P P P P P P P
Equipment rental L P A P P
Funeral facilities and
services

Cemeteries C C C C C C C C C C C
Mortuaries C C C A A A
Funeral homes A A A A A
Health/fitness facilities P P P P L
Lodging facilities
Bed and breakfast C C C P P P P A 16.80.090 347
Attachment B1
14 LAND USES PERMIT REQUIREMENT BY ZONING DISTRICT

SPECIFIC USE

STANDARDS
Extended-stay
facilities
P P P
Hotels and motels P P P P P
Massage
establishment

16.80.190
State certified P P P P P
Non-certified C C A A
Medical services
Ambulance service A P P P L P P L
Clinics and
laboratories

P P P P P L P L
Extended care C C C P P P P L
Health-related P P P P A 16.80.190
Hospitals C C C C
Medical-related
facilities

P P P P P P
Non-storefront
cannabis retail
operator permit
(delivery only)
A A A A A A A 16.80.195
Personal services—
Restricted

C C A A
Personal services—
Unrestricted

P P P P P
Personal storage
facilities (mini-storage)
A L L P P P 16.80.200
Repair services P P P P P P
Sanitary services C A P L 16.36.080 Social services
facilities

Drug abuse,
alcohol
recovery/treatment
facility

A A A A
Feeding centers C C C A
348
Attachment B1
15 LAND USES PERMIT REQUIREMENT BY ZONING DISTRICT

SPECIFIC USE

STANDARDS
Emergency
shelters
C C C C P P P 16.80.155

TRANSPORTATION AND COMMUNICATION USES

RE RL RM RH CO CN CG CD CL CA IL IG PT PF OS
Broadcasting studios P P P P A P P P L
Communications
facilities

Minor E E E P P P P P P P P P P Ch. 16.44
Major A A A A A A P P A Ch. 16.44
Transit stations and
terminals

C C C C P C
Vehicle and freight
terminals
P P P

OTHER USES

RE RL RM RH CO CN CG CD CL CA IL IG PT PF OS
Live-work space P P P P P P P
Major impact facilities C C C
Motion picture
production

P P P P
Multi-use facilities P P P P P A A P 16.80.230 Public and semipublic
utility facilities

A A A A A A P P P L P P P L
Public institutions C C C C C C C C C C C L L
Signs—Off-premises E E E E E E E 16.76.110

Key: P = Use permitted L = Land development permit
required
A = Administrative use permit
required
C = Commission use permit
required
E = Use not allowed, except
under special circumstances
Empty box = Use not allowed

Notes:

See Section 16.20.020 for an explanation of the table and each land use permit requirement.

A use permit shall be required of any new commercial, industrial, institutional, or accessory use, or major addition that involves the manufacture, storage, handling, or processing of hazardous materials in compliance with Section 16.36.080 (Hazardous materials).
349
Attachment B1
16 See Division 8 for definitions of the listed land uses.

Home occupations require a home occupation permit (Chapter 16.132).

* Cannabis laboratories are not allowed to vertically integrate. This use is a stand-alone cannabis business and cannot be combined with any other cannabis business type.

** A microbusiness permit for a Retail/Distributor/Manufacturer (RDM) designation shall be allowed within Commercial, Office (CO), Commercial, General (CG), Commercial, Large-Scale (CL), if the retail component of the business floor area is 50% or more and no cultivation activities will take place as a part of the business.

SECTION VI: AMENDMENT OF CODE

Title 16, Chapter 16.80, Section 16.80.195 is amended to read as follows:

16.80.195 Cannabis business types—Commission use permitting.

A. Retailer Operator Permit – Storefront (Retailer Operator)—Land Use Process.

1. Eligible Applicants. To apply for a commission use permit, a retailer operator permit applicant must first be selected from either the general pool or equity pool after submitting an intent to apply. Refer to subsection K of this section.

2. Commission Use Permit Required. A commission use permit is required to sell medical or adult-use cannabis at a retail location.

3. Limitation on Number of Commission Use Permits. In accordance with section 5.100.080, at no time shall there be in operation within the City more than a total of fourteen (14) Storefront Retailer cannabis businesses.

Commission Use Permit applications for Storefront Retailers shall not be accepted nor processed unless there are less than fourteen (14) active Operators Permits for Storefront Retailer cannabis business types.

3. Non-Storefront Retailer (Delivery Only). At the time this code goes into effect, active retailer operators shall be permitted to engage in non-storefront retail (delivery only) by-right. Operators must amend their operators permit and city business license.

4. Operators Permit Required. After acquiring a commission use permit, a retailer operator permit applicant must obtain and maintain at all times a valid cannabis operators permit as required by Chapter 5.100. An operators permit is required whether the retailer intends on selling medical and/or adult-use cannabis.

5. Zoning Districts. A retailer operator permit shall only be issued for property located in Commercial, Office (CO), Commercial, Neighborhood (CN), Commercial, General (CG), Commercial Downtown (CD), Commercial, Large- Scale (CL), Industrial, General (IG) or Industrial, Limited (IL) zones, as indicated in Table 2-2. They are also allowed in the Mixed Use (MX) zone.

350
Attachment B1
17 6. Location Requirements. The following location requirements apply to all retailer operator permits:
a. No retailer operator shall be established or located within 300 feet, measured from the nearest property lines of each of the affected parcels, of any existing residential zone or use;

b. No retailer operator shall be established or located within 600 feet, measured from the nearest property lines of each of the affected parcels, of any park, school providing instruction in kindergarten or any grades 1 through 12, day care center, or youth center, childcare center, child care, in-home (family day care home), religious facilities, drug abuse, or alcohol recovery/treatment facility that is in existence at the time the land use permit is issued;

c. As permitted by 16 Cal. Code Regs. 5026(b), the Review Authority may waive the location requirements as provided in Chapter 16.176.

Waivers shall only be considered for unique situations where the literal application of the distance requirement is not reasonable.

Waiver determinations will be made on a case-by-case basis.

Only those uses established and in operation as of the date that the application for a retailer operator commission use permit is determined or deemed to be complete shall be considered for purposes of determining whether the location requirements are met.

Established and in Operation shall mean that the use has control of the location (whether owned or leased), has obtained all required licenses/permits/etc. and actively functioning in their specific business, enterprise, mission, or venture.

7. Conditions of Approval. The Planning Commission may address development and operational standards through conditions on the commission use permit as it is determined to be necessary or appropriate for the cannabis retailer operator commission use permit under consideration; provided, that conditions shall not conflict with the provisions of Chapter 5.100, relating to operating requirements of retailer operator permit and shall be subordinate to conditions placed on the retailer operator permit issued under Chapter 5.100.

8. Parking. Off-street parking shall be provided as required under Chapter

16.64.040, Table 3-9.

9. Application. The application for a commission use permit for a retailer operator permit shall include a floor plan, site plan, and neighborhood context map.

The Director may also require more and/or different information, at his or her discretion.

351
Attachment B1
18 10. Pre-Existing Cannabis Dispensaries—Nonconforming. No retailer operator permit operating or purporting to operate without a valid business license and commission use permit prior to the adoption of the ordinance codified in this section, shall be deemed to have been a legally established use under the provisions of this code, nor shall the operation of such dispensary be deemed a legal nonconforming use under this Title 16.

11. Additional Grounds for Revocation of Retailer Operator Permit Commission Use Permit. In addition to the grounds stated in Section

16.108.030(B) for revocation of a commission use permit, a commission use permit for a retailer operator may be revoked on either of the following grounds in accordance with the procedure under Section 16.108.030(A):
a. The retailer operator permit is operated in a manner that violates any of the provisions of State law or this code; or
b. The retailer operator permit does not have a valid retailer operator permit in accordance with Chapter 5.100.

12. Adult-Use Sales. Existing retailer operator permits in possession of a valid, active commission use permit, may also sell adult-use cannabis by-right with a valid amendment to their retailer operator permit in accordance with Chapter

5.100.

13. Existing Businesses Prior to July 16, 2019 – If a commission use permit was approved as of July 16, 2019, existing retail operators whose operations are located in the Industrial, Light (IL) or Industrial, General (IG) zone shall be permitted to engage in distribution, non-volatile manufacturing, non- storefront retail (delivery only), and cultivation by-right. Existing retail operators whose operations are located in the Commercial, Office (CO), Commercial, General (CG), Commercial Downtown (CD), Commercial, Large-Scale (CL), or Mixed Use (MX) zones shall be permitted to engage in non-storefront retail (delivery only) by-right. Operators must amend their operators permit and city business license to reflect the additional land-uses included in 16.80.195(A).12.

14. Transferability of Land-use – Transferring an existing retailer operator from existing location to another location shall comply with the following requirements:
a. Comply with the location requirements under subsections

16.80.195.A.4 and 5.
b. Voluntary surrender of a previously-approved commission use permit at the original/existing location from the property owner. The form of “Surrender of Use” shall be notarized by a notary public; and
c. Apply for and obtain a new commission use permit.
d. Participation in the cannabis lottery is not required. e. Equity applicants will be required to comply with requirements in subsection 16.80.195(K)(5)(a)(vii) and (viii).
352
Attachment B1
19 13. Distribution and Non-Volatile Manufacturing. At the time this code goes into effect, existing retail operators whose operations are located in the Industrial, Light (IL) or Industrial, General (IG) zone shall be permitted to engage in distribution and non-volatile manufacturing by-right. Retail operators must amend their operators permit and City business license.

B. Non-Storefront Retail Operator Permit (Delivery Only)—Land Use Process.

1. Administrative Use Permit Required. Except for existing business approved prior to July 16, 2019, which are regulated by SMC 16.80.195(A) and (C), aAn administrative use permit is required to establish and operate a non-storefront retail cannabis delivery business.

2. Operator Permit Required. After acquiring an administrative use permit, the non-storefront retail operator (delivery only) must obtain and maintain a valid cannabis business operators permit as required by Chapter 5.100.

3. Zoning Districts. A non-storefront retail operator permit (delivery only) shall only be issued for property located within the Commercial, Office (CO), Commercial, Neighborhood (CN), Commercial, General (CG), Commercial, Downtown (CD), Commercial, Large-Scale (CL), Industrial, Limited (IL), and Industrial, General (IG) as indicated in Table 2-2. They are also allowed in Mixed Use (MX) zones.

4. Location Requirements. The following location requirements apply to all non-storefront retail operators (delivery only):
a. No non-storefront operator shall be established or located within 300 feet, measured from the nearest property lines of each of the affected parcels, of any existing residential zone or use;

b. No non-storefront operator shall be established or located within 600 feet, measured from the nearest property lines of each of the affected parcels, of any park, school providing instruction in kindergarten or any grades 1 through 12, day care center, or youth center, childcare center, child care, in-home (family day care home), religious facilities, drug abuse, or alcohol
recovery/treatment facility that is in existence at the time the land use permit is issued;

c. Only those uses established and in operation as of the date that the application for a non-storefront (delivery only) operator use permit is determined or deemed to be complete shall be considered for purposes of determining whether the location requirements are met.

353
Attachment B1
20 Established and in Operation shall mean that the use has control of the location (whether owned or leased), has obtained all required licenses/permits/etc. and actively functioning in their specific business, enterprise, mission, or venture.

c. As permitted by 16 Cal. Code Regs. 5026(b), the review authority may waive the location requirements as provided in Chapter 16.176.

Waivers shall only be considered for unique situation where the literal application of the distance requirement is not reasonable. Waiver determinations will be made on a case-by-case basis.

5. Conditions of Approval. The administrator may address development and operational standards through conditions on the administrative use permit as it determined to be necessary or appropriate for the non-storefront operator permit (delivery only) administrative use permit under consideration; provided, that these conditions do not conflict with provisions of Chapter 5.100 relating to operating requirement of non-storefront operators (delivery only) sites and shall be subordinate to conditions placed on the cannabis operators permit issued under Chapter 5.100.

6. Parking. Off-street parking shall be provided as required under Section

16.64.040, Table 3-9.

7. Application. The application for an administrative use permit for a non- storefront operator site shall include a floor plan, site plan, and neighborhood context map. The Director may also require more and/or different information, at his or her discretion.

8. Pre-Existing Cannabis Non-Storefront Operator (Delivery Only) Sites—Nonconforming. No non-storefront operator (delivery only) operating or purporting to operate without a valid business license and administrative use permit prior to the adoption of the ordinance codified in this section, shall not be deemed, to have been a legally established use under the provision of this code, nor shall the operation of such non-store front (delivery only) operation site be deemed a legal nonconforming use under this Title 16.

9. Additional Grounds for Revocation of Cannabis Non-Storefront Operation (Delivery Only) Site Administrative Use Permit. In addition to the grounds stated in Section 16.108.030(B) for revocation of an administrative use permit, an administrative use permit for a non-storefront operator (delivery only) may be revoked on either of the following grounds in accordance with the procedure under Section 16.108.030(A):
a. The non-storefront operator is operated in a manner that violates any of the provisions of State law or this code; or
b. The non-storefront operator does not have a valid cannabis operator permit as required by Chapter 5.100.
354
Attachment B1
21 10. Transferability of Land-use – Transferring an existing non-storefront operator (delivery only) from existing location to another location shall comply with the following requirements:
a. Comply with the location requirements under subsections

16.80.195.B.3 and 4.
b. Voluntary surrender a previously-approved administrative use permit at the original/existing location from the property owner. The form of “Surrender of Use” shall be notarized by a notary public; and
c. Apply for and obtain a new administrative use permit. d. Participation in the cannabis lottery is not required.

C. Cultivator Operator Permit Application (Cultivator Operator).

1. Eligible Applicants. To apply for a cultivator commission use permit, an applicant must first be selected from either the general pool or equity pool after submitting an intent to apply. Refer to subsection K of this section.

1.2. Commission Use Permit Required. A commission use permit is required to establish or operate a cannabis cultivation operation.

2.3. Adult-Use Cannabis Cultivation. A permitted medical cannabis cultivation site is allowed to grow adult-use cannabis by-right.

4. Distribution. At the time this code goes into effect, active cultivator operators shall be permitted to engage in distribution by-right. Operators must amend their operators permit and City business license.

5. Non-Volatile Manufacturing. At the time this code goes into effect, active cultivator operators shall be permitted to engage in non-volatile manufacturing by-right. Operators must amend their operators permit and City business license.

6. Non-Storefront Retailer (Delivery Only). At the time this code goes into effect, active cultivator operators shall be permitted to engage as a non- storefront retailer by-right. Operators must amend their operators permit and City business license.

3. Existing Businesses Prior to March 5, 2019 – If a commission use permit was approved as of March 5, 2019, existing cultivator operators shall be permitted to engage in distribution, non-volatile manufacturing, and non- storefront retail (delivery only) by right. Operators must amend their operators permit and city business license to reflect the additional land-uses included in

16.80.195.C.3.

355
Attachment B1
22 4.7. Operators Permit Required. After acquiring a commission use permit, a cannabis cultivation site must obtain and maintain at all times a valid cannabis operators permit as required by Chapter 5.100.

5.8. Zoning Districts. A cultivator operator permit shall only be issued for property located within the Industrial, Limited (IL), Industrial, General (IG), Port (PT), or Open Space (OS), as indicated in Table 2-2. They are also allowed in Mixed Use (MX) zones.

6.9. Location Requirements. The following location requirements apply to all cannabis cultivator operators:
a. No cultivator operator shall be established or located within 300 feet, measured from the nearest property lines of each of the affected parcels, of any existing residential zone or use;

b. No cultivator operator shall be established or located within 600 feet, measured from the nearest property lines of each of the affected parcels, of any park, school providing instruction in kindergarten or any grades 1 through 12, day care center, or youth center, childcare center, child care, in-home (family day care home), religious facilities, drug abuse, or alcohol
recovery/treatment facility that is in existence at the time the land use permit is issued;

c. Only those uses established and in operation as of the date that the application for a cultivator commission use permit is determined or deemed to be complete shall be considered for purposes of determining whether the location requirements are met.