City Council and Concurrent Authorities
March 22, 2022

City Council/Successor Agency to the
Redevelopment Agency/Public
Financing Authority/Parking Authority
Concurrent
City of Stockton
Meeting Agenda - Final
City Council/Successor
Agency of the
Redevelopment
Agency/Public Financing
Authority/Parking Authority
Concurrent Agenda
Kevin J. Lincoln II (At Large) Mayor/Chair
Christina Fugazi (District 5) Vice Mayor/Vice Chair
Sol Jobrack (District 1)
Daniel R. Wright (District 2)
Paul Canepa (District 3)
Susan Lenz (District 4)
Kimberly Warmsley (District 6)
Council Chamber, City Hall, 425 N. El Dorado
Street, Stockton CA
Tuesday, March 22, 2022 4:00 PM
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 22-0201 CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION Number of Cases: Two
Name of Case: Police Officer Luis Talamantes (Workers’
Compensation Appeals Board, Case Nos.

ADJ12452327, ADJ8813177 and ADJ7613573)
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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 22-0203 CONFERENCE WITH LABOR NEGOTIATOR
Recommended Action: Agency Designated Representative: City Manager Harry Black Employee Organizations: Unrepresented Units, Stockton City Employees' Association, Operating Engineer's Local 3, Mid-Management/Supervisory Level Unit, Unrepresented Management/Confidential, Law Department, Stockton Police Management Association, Stockton Firefighters Local 456 International Association of Firefighters, Stockton Fire Management, Stockton Police Officers' Association (SPOA)
This Closed Session is authorized pursuant to section 54957.6(a) of the Government Code.

Department: City Attorney

3.3 22-0205 PUBLIC EMPLOYEE PERFORMANCE EVALUATION:

Recommended Action: City Manager
This Closed Session is authorized pursuant to Government Code section 54957.

Department: City Attorney

3.4 22-0207 PUBLIC EMPLOYEE PERFORMANCE EVALUATION:

Recommended Action: City Attorney
This Closed Session is authorized pursuant to Government Code section 54957.

Department: City Attorney

3.5 22-0209 PUBLIC EMPLOYEE PERFORMANCE EVALUATION:

Recommended Action: City Clerk
This Closed Session is authorized pursuant to Government Code section 54957.

Department: City Attorney
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3.6 22-0286 PUBLIC EMPLOYEE APPOINTMENT:

Recommended Action: City Attorney
This Closed Session is authorized pursuant to Government Code section 54957.

Department: City Attorney

3.7 22-0211 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*

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 22-0287 PROCLAMATION: CHILDREN'S HOME OF STOCKTON 140TH

ANNIVERSARY
Department: City Clerk

11. PUBLIC COMMENTS* – MATTERS NOT ON THE AGENDA

12. CONSENT AGENDA

12.1 22-0067 ADOPT A RESOLUTION AUTHORIZING THE CITY OF STOCKTON

TO CONTINUE TO PARTICIPATE IN THE LOCAL AGENCY

INVESTMENT FUND AND NAMING THE CITY MANAGER, DEPUTY

CITY MANAGER, CHIEF FINANCIAL OFFICER AND ASSISTANT

CHIEF FINANCIAL OFFICER AS EMPOWERED TO DEPOSIT AND
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WITHDRAW FUNDS
Recommended Action: RECOMMENDATION
It is recommended that the City Council accept a resolution authorizing continued participation in the Local Agency Investment Fund (LAIF) and updating the list of those authorized to deposit and withdraw funds.

Department: Administrative Services
Attachments: Proposed Resolution - 2022 LAIF Update

12.2 22-0157 ACCEPT BY MOTION THE INDEPENDENT ACCOUNTANT’S

REPORT ON APPLYING AGREED-UPON PROCEDURES OF

MEASURES A AND B REVENUES AND EXPENDITURES FOR THE
YEAR ENDED JUNE 30, 2021
Recommended Action: RECOMMENDATION
It is recommended that the City Council accept by motion the Independent Accountant's Report on applying agreed-upon procedures of Measures A and B Revenues and Expenditures for Year Ended June 30, 2021 (Attachment A).

Department: Administrative Services
Attachments: Attachment A - Measure A Report Year Ended June 30, 2021

12.3 22-0158 ACCEPT BY MOTION PROPOSITION 111 APPROPRIATION LIMIT (GANN LIMIT), CORE REVENUES AUDIT, MEASURE M STRONG

COMMUNITIES TAX FUND AUDIT, AND MEASURE W PUBLIC
SAFETY TAX FUND AUDIT FOR THE YEAR ENDED JUNE 30, 2021
Recommended Action: RECOMMENDATION
It is recommended that the City Council accept by motion the Proposition 111 Appropriation Limit (GANN Limit) Agreed-Upon Procedures Report, the Agreed-Upon Procedures Applied to Core Revenues Report, the Measure M Strong Communities Tax Fund Audit, and the Measure W Public Safety Tax Fund Audit for the year ended June 30, 2021, for submission to the City Council.

Department: Administrative Services
Attachment A - 2021 Proposition 111 Appropriation Limit (GANN Limit) Attach B - 2021 Independent Accountants’ Report
Attach C - 2021 Measure M Audit
Attach D - 2021 Measure W Audit
Attachments:

12.4 22-0278 ADOPT TWO RESOLUTIONS APPOINTING LORI M. ASUNCION AS

ACTING CITY ATTORNEY FOR THE CITY OF STOCKTON, AND
AUTHORIZING LORI M. ASUNCION, AS ACTING CITY ATTORNEY,

TO ACCEPT DEEDS AND GRANTS OF REAL PROPERTY AND
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INTERESTS THEREIN
Recommended Action: RECOMMENDATION

1. Adopt a resolution appointing Lori M. Asuncion, as Acting City Attorney for the City of Stockton.

2. It is recommended that a resolution be adopted rescinding Resolution No. 10-0085, adopted on March 16, 2010, and authorizing Lori M. Asuncion, as Acting City Attorney, to accept deeds and grants of real property and interests therein, effective April 1, 2022, and to consent to the recordation thereof.

Department: City Attorney
Proposed Resolution - Acting City Attorney
Proposed Resolution - Authorize Acting CA Accept Deeds & Trusts Attachments:

12.5 22-0261 ACCEPT COMMITTEE MINUTES FOR FILING
Recommended Action: RECOMMENDATION
Accept for filing minutes from the Salary Setting Commission meeting of January 19, 2022
Department: City Clerk
Attachments: Attachment A – Minutes

12.6 22-0263 APPROVAL OF CITY COUNCIL MINUTES
Recommended Action: RECOMMENDATION
Approve the minutes from the City Council Special meetings of January 24, 2022 and February 14, 2022 and the City Council Regular meetings of January 25, 2022 and February 8, 2022.

Department: City Clerk
Attachment A – 2022-01-24 Special Minutes
Attachment B – 2022-02-14 Special Minutes
Attachment C – 2022-01-25 Minutes
Attachment D – 2022-02-08 Minutes
Attachments:

12.7 22-0259 ADOPT A RESOLUTION TO OPPOSE INITIATIVE 21-0042A1 - THE

TAXPAYER PROTECTION AND GOVERNMENT ACCOUNTABILITY
ACT
Recommended Action: RECOMMENDATION
It is recommended that City Council approves a resolution opposing Initiative 21-0042A1 - The Taxpayer Protection and Government Accountability Act.

Department: City Manager
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Attachment A - Initiative 21-0042A1
Attachment B - CalCities Fact Sheet
Attachment C - CalCities Fiscal Analysis
Attachment D - CalCities Legal Analysis
Proposed Resolution - Opposing Initiative 21-0042A1
Attachments:

12.8 21-0778 APPROVE AN AGREEMENT FOR PROFESSIONAL SERVICES WITH PLACEWORKS, INC. TO ESTABLISH A NEW HOUSING ACTION

PLAN AND COMPREHENSIVE UPDATE TO THE CITY OF

STOCKTON'S HOUSING ELEMENT
Recommended Action: RECOMMENDATION
It is recommended that the City Council adopt a resolution to:

1. Award a three-year Professional Services Agreement with PlaceWorks, Inc., of Berkeley, CA in the amount of $599,786 for consulting services to establish a new Housing Action Plan and Comprehensive Update to the City's Housing Element; and

2. Approve finding pursuant to Stockton Municipal Code 3.68.070 in support of an exception to the competitive bidding process; and

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

Department: Community Development
Attachment A - Proposed Scope of Work
Proposed Resolution - Recommending Approval
Exhibit 1 - PlaceWorks Contract
Attachments:

12.9 22-0260 APPROVE A MOTION AUTHORIZING AND RATIFYING THE CITY

MANAGER SUBMISSION OF A GRANT APPLICATION FOR A

CALIFORNIA STATE LIBRARY GRANT - THE BUILDING FORWARD

INFRASTRUCTURE PROGRAM FOR THE CHAVEZ LIBRARY

REMODEL PROJECT
Recommended Action: RECOMMENDATION
It is recommended that City Council approve a motion authorizing and ratifying the City Manager's submission of a grant application to the California State Library requesting an award of up to $10,000,000 from the Building Forward Library Infrastructure 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 motion.

Department: Community Services
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12.10 22-0143 AUTHORIZE SUBMITTAL OF GRANT APPLICATION FOR

EQUITABLE COMMUNITY REVITALIZATION GRANT PROGRAM
Recommended Action: RECOMMENDATION
It is recommended that the City Council approve a resolution to:

1. Authorize the City Manager, or designee, to submit a grant application to the California Department of Toxic Substances Control for the Equitable Community Revitalization Grant Program.

2. If awarded, authorize the City Manager, or designee, to accept the grant award, conduct all negotiations, sign and submit all documents including applications, agreements, amendments, and payment requests, and make all necessary appropriations in compliance with and for the purposes stated in the grant application.

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

Department: Economic Development
Attachments: Proposed Resolution - Grant Program

12.11 22-0198
ADOPT AN ORDINANCE AMENDING TITLE 3, CHAPTER 3.96,
SECTIONS 3.96.020 AND 3.96.030 AND ADDING SECTIONS

3.96.040, 3.96.050, 3.96.060, 3.96.070, 3.96.080, 3.96.090, 3.96.100,

3.96.110, 3.96.120, AND 3.96.130 OF THE STOCKTON MUNICIPAL

CODE, RELATING TO THE ESTABLISHMENT OF COMMUNITY

IMPROVEMENT DISTRICTS
Recommended Action: RECOMMENDATION
It is recommended that the City Council adopt an ordinance amending Title 3, Chapter 3.96, sections 3.96.020 and 3.96.030 and adding sections

3.96.040, 3.96.050, 3.96.060, 3.96.070, 3.96.080, 3.96.090, 3.96.100,

3.96.110, 3.96.120, and 3.96.130 of the Stockton Municipal Code, relating to the establishment of Community Improvement Districts.

Department: Economic Development
Attachment A - Proposed Ordinance (redline)
Proposed Ordinance Title 3
Attachments:

12.12 22-0044 AWARD A PROGRESSIVE DESIGN-BUILD CONTRACT FOR THE

REHABILITATION OF SOUTH STOCKTON SYSTEM
GROUNDWATER WELL SSS8 AND AMEND FISCAL YEAR 2021-22

ANNUAL BUDGET
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Recommended Action: RECOMMENDATION
It is recommended that the City Council adopt a resolution to:

1. Award a Progressive Design-Build Contract in the amount of $485,591.00 between the City and PCL Construction, Inc., of Tempe, AZ for the design and development of a lump sum price proposal for the rehabilitation of South Stockton System Groundwater Well SSS8 (Project No. UH22008).

2. Authorize the City Manager to execute the Progressive Design-Build Contract.

3. Approve findings pursuant to Stockton Municipal Code section

3.68.070 which support and justify an exception to the competitive bidding process.

4. Reappropriate funds in the amount of $5,650,000 from existing capital projects UH21002 ($2,400,000), UH17002 ($1,750,000), UH21005 ($750,000), and UH14014 ($750,000) to the South Stockton System Groundwater Well SSS8 (Project No. UH22008).

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
Exhibit 1 - Phase1 Contract
Attachments:

12.13 22-0148 APPROVE FINDINGS AND EXECUTE A CONTRACT WITH KEMIRA

WATER SOLUTIONS FOR THE PURCHASE OF FERRIC AND

FERROUS CHLORIDE FOR WASTEWATER TREATMENT AND
AMEND FISCAL YEAR 2021-22 ANNUAL BUDGET
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Recommended Action: RECOMMENDATION
It is recommended that the City Council adopt a resolution:

1. Approving findings which support and justify an exception to the competitive bidding process.

2. Authorize the City Manager to execute a five-year contract with Kemira Water Solutions (Exhibit 1 to the Resolution) for the purchase of Ferric Chloride and Ferrous Chloride for wastewater treatment.

3. Appropriate funds in the amount of $210,000 from the Wastewater Utility Fund balance to the Wastewater Treatment Plant Operations, Maintenance & Repairs Services account.

It is also recommended that the Council action authorize the City Manager to take appropriate and necessary actions to carry out the purpose and intent of the resolution.

Department: Municipal Utilities
Proposed Resolution
Exhibit 1 - Contract
Attachments:

12.14 22-0153 RESOLUTION APPROVING SUBMITTAL OF A SUSTAINABLE

GROUNDWATER MANAGEMENT GRANT APPLICATION TO THE

DEPARTMENT OF WATER RESOURCES
Recommended Action: RECOMMENDATION
It is recommended that the City Council adopt a resolution approving submittal of a grant application to the Department of Water Resources for the 2021 Sustainable Groundwater Management Grant Program.

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

Department: Municipal Utilities
Attachments: Proposed Resolution

12.15 22-0213 APPROVE MOTION TO ACCEPT REQUEST FOR REFUND AS

ORDERED BY THE SUPERIOR COURT OF CALIFORNIA, COUNTY
OF SAN JOAQUIN IN THE AMOUNT OF $20,000
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Recommended Action: RECOMMENDATION
It is recommended that the City Council approve a motion:

1. Authorizing the City Manager to accept request for refund as ordered by the Superior Court of California, County of San Joaquin in the amount of $20,000.

2. Authorizing the City Manager to take all necessary and appropriate actions to carry out the purpose and intent of the motion.

Department: Police
Attachments: Attachment A - Court Order STK-CR-FDV-2020-6496

12.16 22-0241 ADOPT RESOLUTION TO PURCHASE ONE FIRE ENGINE Recommended Action: RECOMMENDATION
It is recommended that the City Council adopt a resolution to:

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

2. Approve the use of a Cooperative Purchasing Agreement through Sourcewell Contract No. 022818 to provide the City access to preferential pricing of firefighting apparatus from Pierce Manufacturing, Inc.

3. Authorize the City Manager to execute a contract in the amount of $725,915.66 with Pierce Manufacturing, Inc. through affiliated vendor, Golden State Fire Apparatus of Sacramento, CA, to purchase one fire engine.

4. Authorize the City Manager to appropriate funds in the amount of $725,915.66 from the Measure W Public Safety Fire Fund for the acquisition of one fire engine.

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

Department: Public Works
Proposed Resolution - Purchase One Fire Engine
Exhibit 1 - Pierce Manufacturing COOP
Attachments:

12.17 22-0069 ADOPT RESOLUTION TO AUTHORIZE THE NEIGHBORHOOD

TRAFFIC MANAGEMENT PROGRAM
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Recommended Action: RECOMMENDATION
It is recommended that the City Council adopt a resolution to:

1. Approve the Notice of Exemption No. NOE58-21 under the California Environmental Quality Act for the Neighborhood Traffic Management Program, Project No. WT16008.

2. Approve the plans and specifications for the Neighborhood Traffic Management Program, Project No. WT16008.

3. Award a Construction Contract in the amount of $138,630 to Robert Burns Construction, Inc. of Stockton, CA, for the Neighborhood Traffic Management Program, Project No. WT16008.

4. Authorize the City Manager to execute two optional one-year extensions to the Construction Contract upon completion of the original term, at an annual cost of $138,630, for a total contract amount of $415,890.

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

Department: Public Works
Attachment A - Revised Traffic Calming Process
Attachment B - 2021 NTMP Locations
Proposed Resolution
Exhibit 1 - Notice of Exemption
Exhibit 2 - Construction Contract
Attachments:

12.18 22-0139 APPROVE MOTION TO AWARD A SERVICE CONTRACT FOR THE

POOL AND WATER FILTER SYSTEM MAINTENANCE PROJECT
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Recommended Action: RECOMMENDATION
It is recommended that the City Council approve a motion to:

1. Award a multi-year Service Contract through December 31, 2026, not to exceed the amount of $830,683, to All Seasons Pool Service of Lodi, California, for Pool and Water Filter System Maintenance, Project No.

OM-22-016.

2. Authorize the City Manager to execute up to two optional one-year extensions to the original term of the Service Contract, in the amounts of $184,179 and $189,012, for a total not to exceed amount of $1,203,874.

3. 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 - Vicinity Map
Attachment B - Contract for Services
Attachments:

13. ADMINISTRATIVE MATTERS

14. UNFINISHED BUSINESS

15. NEW BUSINESS

15.1 22-0160 OFFICE OF VIOLENCE PREVENTION ANNUAL UPDATE Recommended Action: RECOMMENDATION
Information only. No action to be taken.

Department: City Manager
Attachments: 15.1 - PPT - OVP Annual Update

15.2 22-0182 APPROVE DOWNTOWN STOCKTON ALLIANCE PROPOSED 2022 ANNUAL OPERATING BUDGET, ASSESSMENT, AND 2021 ANNUAL
REPORT
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Recommended Action: RECOMMENDATION
It is recommended that the City Council adopt a resolution to:

1. Approve the 2022 Operating Budget and Assessment for the Property and Business Improvement District known as Downtown Stockton Alliance, a non-profit corporation, which operates the Downtown Stockton Management District;

2. Approve the 2021 Annual Report; and

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

Department: Economic Development
Proposed Resolution - DSA Budget and Annual Report
Exhibit 1 - DSA 2022 Budget
Exhibit 2 - DSA 2021 Annual Report

15.2 - PPT - DSA Budget and Annual Report
Attachments:

15.3 22-0132 ADOPT THE 2022 STATE AND FEDERAL LEGISLATIVE

PROGRAMS
Recommended Action: RECOMMENDATION
It is recommended that the City Council adopt by motion the 2022 State and Federal Legislative Programs and authorize the City Manager to pursue the objectives outlined in these Programs through advocacy efforts in Sacramento and Washington D.C.

Department: City Manager's Office
Attachment A - 2022 State and Federal Program

15.3 - PPT - Legislative Advocacy Program
Attachments:

15.4 22-0159 ACCEPT BY MOTION THE INDEPENDENT AUDIT OF THE ANNUAL

COMPREHENSIVE FINANCIAL REPORT FOR THE FISCAL YEAR
ENDED JUNE 30, 2021
Recommended Action: RECOMMENDATION
It is recommended that the City Council accept by motion the independent audit of the Annual Comprehensive Financial Report for the year ended June 30, 2021.

Department: Administrative Services
Attachment A - ACFR FY21

15.4 - PPT - ACFR FY21
Attachments:

16. HEARINGS**
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16.1 21-0949 ADOPT THE 2021 GENERAL PLAN AND HOUSING ELEMENT

ANNUAL PROGRESS REPORTS AND AUTHORIZE THE CITY

MANAGER TO SUBMIT REPORTS TO THE STATE HOUSING

DEPARTMENTS
Recommended Action: RECOMMENDATION
It is recommended that City Council adopt by motion the 2021 Annual Progress Reports (APRs) for the Envision Stockton 2040 General Plan and the 2015-2023 Housing Element and authorize the City Manager to submit reports to the State of California Department of Housing and Community Development (HCD) and the Office of Planning and Research (OPR) as required by State Law.

Department: Community Development
Attachment A - 2021 General Plan APR
Attachment B - 2021 Housing Element APR

16.1 - PPT - General Plan and Housing Element Reports
Attachments:

16.2 22-0057 CONSIDERATION TO CERTIFY A MITIGATED NEGATIVE

DECLARATION FOR A PREZONE AND ANNEXATION REQUEST TO
CONSTRUCT A NEW PERSONAL STORAGE FACILITY AT 692
GRIDER WAY (APPLICATION NO. P21-0589)
Recommended Action: RECOMMENDATION
It is recommended that the City Council:

1. Adopt a Resolution certifying the Grider Personal Storage Project Mitigated Negative Declaration and associated Mitigation Monitoring and Reporting Program pursuant to the California Environmental Quality Act (CEQA); and

2. Adopt an ordinance for the Pre-zoning of APN 070-56-047, 070-57-013, 070-14-035, 070-14-010, 070-14-011, and 070-14-034 to Commercial, General (CG); and

3. Adopt a resolution authorizing the filing of an Annexation application with the San Joaquin Local Agency Formation Commission to incorporate one parcel (APN 070-56-047, 070-57-013, 070-14-035, 070-14-010, 070-14-011, and 070-14-034) totaling �8.76-acres into the Stockton City Limit boundary and detachment from the Lincoln Rural Fire District.

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

Department: Community Development
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Attachment A - Location Map and Aerial Photo
Attachment B - Zoning Map
Attachment C - General Plan Land Use
Attachment D - Project Plans
Attachment E - Prezone Map
Attachment F - Annexation Map
Attachment G- City Service Plan
Attachment H - Community Meeting Info
Attachment I - Planning Commission Approved Resos
Proposed Resolution - Grider MND
Exhibit 1 - Final ISMND
Proposed Resolution - Grider Annexation
Exhibit 1 - Annexation
Exhibit 2 - City Services Plan
Proposed Ordinance - Grider Prezone
Exhibit 1 - Prezone

16.2 - PPT - 692 Grider Way Annexation Project
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 March 16, 2022 in compliance with the Brown Act.

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

City of Stockton Page 16 Printed on 3/16/2022
16 City of Stockton
Legislation Text
File #: 22-0067, Version: 1

ADOPT A RESOLUTION AUTHORIZING THE CITY OF STOCKTON TO CONTINUE TO

PARTICIPATE IN THE LOCAL AGENCY INVESTMENT FUND AND NAMING THE CITY

MANAGER, DEPUTY CITY MANAGER, CHIEF FINANCIAL OFFICER AND ASSISTANT CHIEF

FINANCIAL OFFICER AS EMPOWERED TO DEPOSIT AND WITHDRAW FUNDS

RECOMMENDATION
It is recommended that the City Council accept a resolution authorizing continued participation in the Local Agency Investment Fund (LAIF) and updating the list of those authorized to deposit and withdraw funds.

Summary
The depositing and withdrawal of funds from the Local Agency Investment Fund (LAIF) is a routine update required periodically by LAIF policy. The individuals and titles currently listed to do routine money transfers are outdated. The Finance Officer title is no longer utilized and the titles for Chief Financial Officer and Assistant Chief Financial Officer have taken preference over Director and Assistant Director of Administrative Services, respectively, where the latter titles have always served the former function. Staff recommends the addition of the City Manager and Deputy City Manager positions to the list of authorized individuals with authority to transfer funds to and from the City’s LAIF account.

DISCUSSION
Background
On March 25, 2008, the City Council adopted Resolution 08-0098, authorizing the City of Stockton to continue to participate in LAIF. LAIF is a local government investment pool in the State Treasury that was created by Assembly Bill 3107. This permits local government officials, with the consent of the governing body of that agency, to make deposits to the fund for investment purposes.

Present Situation
The City is currently participating in the fund as a short-term investment vehicle. With changes in titles and placement of positions, it is necessary to update, by resolution, the staff positions authorized to either place funds on deposit with LAIF or to withdraw funds from LAIF. Staff recommends four functional titles within the City be listed with this authority. If the resolution is accepted as written, the authority would be given to the City Manager, Deputy City Manager, Chief Financial Officer, and Assistant Chief Financial Officer.

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17 File #: 22-0067, Version: 1

FINANCIAL SUMMARY
There is no direct financial impact related to the recommended action.

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18 Resolution No.

STOCKTON CITY COUNCIL

ADOPT A RESOLUTION AUTHORIZING THE CITY OF STOCKTON TO CONTINUE

TO PARTICIPATE IN THE LOCAL AGENCY INVESTMENT FUND AND NAMING THE

CITY MANAGER, DEPUTY CITY MANAGER, CHIEF FINANCIAL OFFICER AND

ASSISTANT CHIEF FINANCIAL OFFICER AS EMPOWERED TO DEPOSIT AND

WITHDRAW FUNDS
On June 16, 1980, the City Council adopted Resolution 37,371, authorizing the investment of City funds in the Local Agency Investment Fund (LAIF); and On April 25, 2006, the City Council adopted Resolution 06-0212, authorizing the City of Stockton to update and specify staff positions participating in the Local Agency Investment Fund; and
On March 25, 2008, the City adopted Resolution 08-0098 authorizing the City of Stockton to update and specify staff positions participating in the Local Agency Investment Funds; and
The City is currently participating in the fund as a short-term investment vehicle; and
City staff is recommending that it is in the best interest of the City to continue its participation in the fund as a short-term investment vehicle; and The Local Agency Investment Fund has requested an updated Resolution showing City staff titles who have the authority to either place funds on deposit with or to withdraw funds from the Local Agency Investment Fund; now, therefore,

BE IT RESOLVED BY THE C I T Y COUNCIL OF THE CITY OF
STOCKTON, AS FOLLOWS:

1. The City of Stockton is hereby authorized to continue to participate in the Local Agency Investment Fund as a short-term investment vehicle.

2. The individuals that hold the following specific titles are hereby authorized to deposit or withdraw funds in the Local Agency Investment Fund on behalf of the City of Stockton:

City Manager
Deputy City Manager
Chief Financial Officer
Assistant Chief Financial Officer
19 3. This Resolution shall take effect upon its adoption.

PASSED, APPROVED, and ADOPTED March 22, 2022 .

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

ELIZA R. GARZA, CMC
City Clerk of the City of Stockton
20 City of Stockton
Legislation Text
File #: 22-0157, Version: 1
ACCEPT BY MOTION THE INDEPENDENT ACCOUNTANT’S REPORT ON APPLYING AGREEDUPON PROCEDURES OF MEASURES A AND B REVENUES AND EXPENDITURES FOR THE YEAR ENDED JUNE 30, 2021

RECOMMENDATION
It is recommended that the City Council accept by motion the Independent Accountant’s Report on applying agreed-upon procedures of Measures A and B Revenues and Expenditures for Year Ended June 30, 2021 (Attachment A).

Summary
The attached report determines that revenues were collected in accordance with Measure A and expenditures were in accordance with Measure B for the year ended June 30, 2021. The agreedupon procedures engagement was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants.

DISCUSSION
Background
As a general sales tax, Measure A proceeds are part of the City’s General Fund. The City Charter (sections 1910 and 1911) requires the City to prepare an Annual Comprehensive Financial Report (ACFR) and have an annual audit of all City accounts conducted by an independent firm of certified public accountants. The independent annual audit includes Measure A financial activity and complies with the Measure A ballot language and the Advisory Committee’s charter and by-laws.

In addition to the City’s annual independent audit, the Measure A Citizens’ Advisory Committee requested that the City engage an additional independent auditor to provide audit services to review the Measure A financial activities in more detail. The Advisory Committee members conveyed that the ACFR did not illustrate the level of detail necessary to fully understand how the City uses Measure A sales tax revenues and how those uses compare to the Measure B advisory measure.

The Council Audit Committee and City Council supported the request and engaged a second independent audit firm to conduct annual agreed-upon procedures to accomplish this additional review. In addition to the audit recommendation, the Advisory Committee also worked with staff to develop a supplemental display to provide a single reference and greater transparency regarding the use of Measure A proceeds. This display was subsequently added to the City’s ACFR starting with the Fiscal Year (FY) 2014-15 report. The Council Audit Committee also supported the additional audit services and the supplemental display recommendations.

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21 File #: 22-0157, Version: 1
On March 23, 2020, the City Council authorized an agreement for Measure A additional audit services with The Pun Group, LLP. These auditing services were to be in addition to the ACFR audit and specific to the Measures A and B Supplemental Display in the ACFR.

On March 14, 2022, the Council Audit Committee received, reviewed, and acted to accept the Independent Accountant’s Report on Measures A and B and to submit it to Council for acceptance.

Present Situation
The Pun Group applied agreed-upon procedures to the City of Stockton’s Measures A and B revenues and expenditures. The attached report determines that revenues were collected in accordance with Measure A and expenditures were in accordance with Measure B for the year ended June 30, 2021. The agreed-upon procedures engagement was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants.

FINANCIAL SUMMARY
There is no financial impact associated with accepting this item.

Attachment A - Measure A Independent Accountants Report Year Ended June 30, 2021.

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22 City of Stockton
Stockton, California
Independent Accountants’ Report on
Applying Agreed-Upon Procedures
on Measures A and B Transaction and Use Tax
For the Year Ended June 30, 2021

ATTACHMENT A
23 INDEPENDENT ACCOUNTANTS’ REPORT ON APPLYING AGREED-UPON PROCEDURES

ON MEASURE A AND B TRANSACTION AND USE TAX
To the Honorable Mayor and Members of City Council
of the City of Stockton
Stockton, California
We have performed the procedures enumerated below on the Measure A and B Schedule of Sources and Uses of the City of Stockton (the “City”) for the year ended June 30, 2021. City’s management is responsible for the Measure A and B Schedule of Sources and Uses.

The City has agreed to and acknowledged that the procedures performed are appropriate to meet the intended purpose of evaluating whether Transaction and Use Tax of the City were collected in accordance with Measure A and expenditures were spent in accordance with provisions of Measure B for the year ended June 30, 2021. This report may not be suitable for any other purpose. The procedures performed may not address all the items of interest to a user of this report and may not meet the needs of all users of this report and, as such, users are responsible for determining whether the procedures performed are appropriate for their purposes.

The procedures and associated findings are as follows:

1. We obtained understanding of the compliance requirements of Measure A, B, and the Marshall Plan on Crime.

Findings: No exceptions were noted.

2. We obtained the Measure A and B Schedule of Sources and Uses included in the Comprehensive Annual Financial Report of the City for the fiscal year ended June 30, 2021.

Findings: No exceptions were noted.

3. We obtained reports from the California Department of Tax and Fee Administration (CDTFA) and trace the quarterly cash receipts for the fiscal year ended June 30, 2021.

Findings: No exceptions were noted.

4. We selected 40 expenditure transactions spent in Marshall Plan on Crime and determine whether they were spent in accordance with approved Marshall Plan uses
Findings: No exceptions were noted.

5. We obtained from City Finance department staff the “Project Activity listing” by project for the fiscal year ended June 30, 2021 and compare allocation of Measure A funding to the expenditure to date for Mission Critical Spending.

Findings: No exceptions were noted. 200 E. Sandpointe Ave., Suite 600, Santa Ana, California 92707 Tel: 949-777-8800 • Fax: 949-777-8850
www.pungroup.cpa
ATTACHMENT A 24
To the Honorable Mayor and Members of City Council
of the City of Stockton
Stockton, California

2 We were engaged by the City to perform this agreed-upon procedures engagement and conducted our engagement in accordance with attestation standards established by the American Institute of Certified Public Accountants. We were not engaged to and did not conduct an examination or review engagement, the objective of which would be the expression of an opinion or conclusion, respectively, on the Measure A and B Schedule of Sources and Uses.

Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you.

We are required to be independent of the City and to meet our ethical responsibilities, in accordance with the relevant ethical requirements related to our agreed-upon procedures engagement.

This report is intended solely for the information and use of the City Council and City management and Assured Guaranty Municipal Corp. and is not intended to be and should not be used by anyone other than these specified parties.

Santa Ana, California
March 4, 2022
ATTACHMENT A 25
City of Stockton
Measure A and B Schedule of Sources and Uses
For the Year Ended June 30, 2021
3 Final Budget Year End Actual Variance
Revenues
Measure A Transaction and Use Tax $ 28,472,000 $ 40,810,516 $ 12,338,516 Total Revenues 28,472,000 40,810,516 12,338,516
Uses/Expenditures
Police
Salary & Benefits
Sworn 21,413,141 19,316,382 2,096,759
Non-Sworn 3,800,419 3,164,294 636,125
Vacancy Savings (993,017) - (993,017)
Other Services 2,920,889 2,675,205 245,684
Materials & Supplies
Fuel 348,096 285,767 62,329
Other Supplies 431,091 189,377 241,714
Other Expenses
Training 620,018 617,265 2,753
28,540,637 26,248,290 2,292,347
Office of Violence Prevention
Salary & Benefits
Non-Sworn 863,143 766,268 96,876
Other Services 312,856 174,886 137,971
Fuel 6,231 6,243 (12)
Other Supplies 35,000 5,369 29,631
Office Equipment 3,979 665 3,314
Other Expenses 19,850 1,086 18,764
1,241,059 954,516 286,543
Basic Adjustment
Encumbrances (included in Final Budget) - 171,220 (171,220) Total Measure B Expenditures 29,781,696 27,374,026 2,407,670 Crime Prevention (Measure B) expenditures
as a % of annual Measure A revenues 105% 67%
Other City Services
Prior Year - Mission Critical Projects - - -
General Fund Available Fund Balance (1,309,696) 13,436,490 (14,746,186) Basic Adjustment
Encumbrances (included in Final Budget) - - -
Total Measure B Expenditures (1,309,696) 13,436,490 (14,746,186) Total Uses/Expenditures $ 28,472,000 $ 40,810,516 $ (12,338,516) ATTACHMENT A 26
City of Stockton
Legislation Text
File #: 22-0158, Version: 1
ACCEPT BY MOTION PROPOSITION 111 APPROPRIATION LIMIT (GANN LIMIT), CORE

REVENUES AUDIT, MEASURE M STRONG COMMUNITIES TAX FUND AUDIT, AND MEASURE W PUBLIC SAFETY TAX FUND AUDIT FOR THE YEAR ENDED JUNE 30, 2021

RECOMMENDATION
It is recommended that the City Council accept by motion the Proposition 111 Appropriation Limit (GANN Limit) Agreed-Upon Procedures Report, the Agreed-Upon Procedures Applied to Core Revenues Report, the Measure M Strong Communities Tax Fund Audit, and the Measure W Public Safety Tax Fund Audit for the year ended June 30, 2021, for submission to the City Council.

Summary
Presented for the City Council’s review and acceptance are the City of Stockton’s:
· Agreed-Upon Procedures Report on Compliance with Proposition 111 Appropriation Limit (GANN Limit) for the year ended June 30, 2021 (Attachment A). The City met the requirements of the Gann Limit Calculation, Article XIII-B of the California Constitution, and the auditors found no exceptions.
· Independent Accountants’ Report of Agreed-Upon Procedures Applied to Core Revenues (Attachment B). The Agreed-Upon Procedures engagement was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. The auditors found no exceptions.
· Measure M Strong Communities Tax Fund Audit (Measure M) for the first year ended June 30, 2021 (Attachment C). The City received an unmodified (clean) opinion. · Measure W Public Safety Tax Fund Audit (Measure W) on a comparative basis for the year ended June 30, 2021 (Attachment D). The City received an unmodified (clean) opinion.

DISCUSSION
Background
Proposition 111 or Gann Limit Report
State law limits appropriations made by the State and individual local governments. The limit for the growth rate of those appropriations is the percentage increase in the cost of living and the percentage increase in the State or local government's population. Each year City staff calculates City of Stockton Page 1 of 3 Printed on 3/16/2022
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27 File #: 22-0158, Version: 1
the appropriation limit. The procedures performed by the auditor were to test the sufficiency of the procedures the City used to determine the Proposition 111 appropriation limit for fiscal year 2020-21.

The auditors did not discover any findings from the application of these audit procedures.

Agreed-Upon Procedures Applied to Core Revenues
The procedures performed on the City’s Core Revenues Schedule for the year ended June 30, 2021, meet the annual requirements under the Reimbursement Agreement between the City and Assured Guaranty Municipal Corporation, as stipulated in Article IV Covenants, Section 4.02(b). This Agreement entitled: “Agreed-Upon Procedures Applied to the Core Revenues” is part of the City’s approved Bankruptcy Plan of Adjustment. The Plan wrote-down the liabilities of the Taxable Pension Obligation Bonds 2007 Series A and B and non-taxable Variable Rate Bonds Series 2007 A and B for the property on Main Street.

This negotiated Agreement created an alternate liability and related payments that began on February 25, 2015. As part of the Agreement, the City agreed to make contingent General Fund payments commencing on June 1, 2018, through June 1, 2052, in the manner described in Section

2.05 of the Agreement. The calculation of potential contingent General Fund payments is made by determining actual core revenues over baseline core revenue and averaging revenue increments of three fiscal years. The City is obligated to pay an allocable share of resulting incremental revenue to Assured Guaranty Municipal Corporation subject to the provisions of subsections (c) and (d) of Section 2.03. The City’s Long-Range Financial Plan anticipates future contingent payments from the General Fund. The actual payments depend on future revenue receipts, but the payments are estimated to be approximately $2.4 million annually for the first ten years.

Measure M Strong Communities Tax Fund
Measure M, approved by voters on November 8, 2016, authorized Ordinance No. 2016-06-07-1212 that provides for an additional one-quarter cent sales tax with proceeds to be used exclusively for library and recreation services. The City separately accounts for Measure M revenues and related expenditures. The measure requires an annual audit, which was conducted for the fiscal year ended June 30, 2021. The auditors did not report any findings, and the City received an unmodified (clean) opinion on the financial schedule of revenues, expenditures, and changes in fund balances of the Measure M Fund for the year ended June 30, 2021.

Measure W Public Safety Tax Fund
Measure W, approved by voters on November 2, 2004, authorized Ordinance No. 038-04 CS that provides for an additional one-quarter cent sales tax, the proceeds of which are used exclusively for police and fire services. The Measure W Fund is where the City separately accounts for the collection of revenues generated from this sales tax and the expenditures of these taxes. The measure approved by voters also requires an annual audit. The auditors did not report any findings, and the City received an unmodified (clean) opinion on the financial schedule of revenues, expenditures, and changes in fund balances of the Measure W Fund for the year ended June 30, 2021.

On March 14, 2022, the Council Audit Committee received, reviewed, and acted to accept these reports and to submit them to Council for acceptance.

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28 File #: 22-0158, Version: 1

FINANCIAL SUMMARY
There is no financial impact associated with accepting these items.

Attachment A - 2021 Proposition 111 Appropriation Limit (GANN Limit) Attachment B - 2021 Independent Accountants’ Report of Agreed-Upon Procedures Applied to Core Revenues
Attachment C - 2021 Measure M Strong Communities Tax Fund Audit Attachment D - 2021 Measure W Public Safety Tax Fund Audit City of Stockton Page 3 of 3 Printed on 3/16/2022
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29 City of Stockton
Stockton, California
Independent Accountants’ Report on
Agreed-Upon Procedures Applied to
Appropriations Limit Schedule
For the Fiscal Year Ended June 30, 2021
ATTACHMENT A 30
INDEPENDENT ACCOUNTANTS’ REPORT ON

APPLYING AGREED-UPON PROCEDURES
To the Honorable Mayor and Members of City Council
of the City of Stockton
Stockton, California
We have performed the procedures enumerated below on the accompanying Appropriations Limit Schedule of the City of Stockton, California (the “City”) for the year ending June 30, 2021. The City is responsible for the Appropriations Limit Schedule.

The City has agreed to and acknowledged that the procedures performed are appropriate to meet the intended purpose of meeting the requirements of Section 1.5 of Article XIII-B of the California Constitution. The League of California Cities (as presented in the publication entitled Agreed-upon Procedures Applied to the Appropriations Limitation Prescribed by Article XIII-B of the California Constitution) has agreed to and acknowledged that the procedures performed are appropriate for its purposes. This report may not be suitable for any other purpose. The procedures performed may not address all the items of interest to a user of this report and may not meet the needs of all users of this report and, as such, users are responsible for determining whether the procedures performed are appropriate for their purposes.

The procedures performed and associated findings are as follows:

1. We obtained the completed worksheets used by the City to calculate its appropriations limit for the year ended June 30, 2021, and verified that the limit and annual calculation factors were adopted by resolution of the City Council. We also verified that the population and inflation options were selected by a recorded vote of the City Council.

Finding: No exceptions were noted as a result of our procedures.

2. For the accompanying Appropriations Limit Schedule, we added the prior year’s limit to the total adjustments, and agreed the resulting amount to the current year’s limit.

Finding: No exceptions were noted as a result of our procedures.

3. We agreed the current year information presented in the accompanying Appropriations Limit Schedule to corresponding information in worksheets used by the City.

Finding: No exceptions were noted as a result of our procedures.

4. We agreed the appropriations limit presented in the accompanying Appropriations Limit Schedule to the appropriations limit adopted by the City Council.

Finding: No exceptions were noted as a result of our procedures. 200 E. Sandpointe Ave., Suite 600, Santa Ana, California 92707 Tel: 949-777-8800 • Fax: 949-777-8850
www.pungroup.cpa
ATTACHMENT A 31
To the Honorable Mayor and Members of City Council
of the City of Stockton
Stockton, California

2 We were engaged by the City to perform this agreed-upon procedures engagement and conducted our engagement in accordance with attestation standards established by the American Institute of Certified Public Accountants. We were not engaged to and did not conduct an examination or review engagement, the objective of which would be the expression of an opinion or conclusion, respectively, on agreed-upon procedures applied to the appropriations limitation schedule. Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you.

We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements related to our agreed-upon procedures engagement.

This report is intended solely for the information and use of the City Council and management of the City and is not intended to be and should not be used by anyone other than these specified parties.

Santa Ana, California
March 4, 2022
ATTACHMENT A 32
City of Stockton
Appropriations Limit Schedule
For the Year Ended June 30, 2021
See accompanying Notes to the Appropriations Limit Schedule. 3 Amount Source
A. Appropriations Limit FY 2019-2020 $ 363,632,771 Prior year appropriation limit adopted by the City
B. Calculation Factors:
1) Population increase % 1.0373 California Department of Finance 2) Inflation increase % 1.0106 California Department of Finance 3) Total adjustment % 1.0483 (B1 x B2)
C. Annual Adjustment Increase 17,561,782 {(B3-1) x A}
D. Other Adjustments:
1) Loss responsibility (-) - N/A
2) Transfer to private (-) - N/A
3) Transfer to fees (-) - N/A
4) Assumed responsibility (+) - N/A
E. Total Adjustments 17,561,782 (C+D)
F. Appropriations Limit FY 2020-2021 $ 381,194,553 (A+E) ATTACHMENT A 33
City of Stockton
Notes to the Appropriations Limit Schedule
For the Year Ended June 30, 2021
4 Note 1 – Purpose of Limited Procedures Review
Under Article XIIIB of the California Constitution (the Gann Spending Limitation Initiative), California governmental agencies are restricted as to the amount of annual appropriations from proceeds of taxes. Effective for years beginning on or after July 1, 1990, under Section 1.5 of Article XIIIB, the annual calculation of the appropriations limit is subject to the agreed-upon procedures in connection with the annual audit.

Note 2 – Method of Calculation
Under Section 10.5 of Article XIIIB, for fiscal years beginning on or after July 1990, the appropriations limit is required to be calculated based on the limit for the fiscal year 1986-87, adjusted for the inflation and population factors discussed in Notes 3 and 4 below.

Note 3 – Population Factors
A California governmental agency may use as its population factor either the annual percentage change of the jurisdiction’s own population or the annual percentage change in population of the county where the jurisdiction is located. The factor adopted by the City for the year ended June 30, 2021, represents the annual percentage change in population for the County of San Joaquin.

Note 4 – Inflation Factors
A California governmental agency may use as its inflation factor either the annual percentage change in the 4th quarter per capita personal income (which percentage is supplied by the California Department of Finance) or the percentage change in the local assessment roll from the preceding year due to the change of local nonresidential construction. The factor adopted by the City for the year ended June 30, 2021, represents the annual percentage change for per capita personal income.

Note 5 – Other Adjustments
A California government agency may be required to adjust its appropriations limit when certain events occur, such as the transfer of responsibility for municipal services to, or from, another government agency or private entity.

The City had no such adjustments for the year ended June 30, 2021.

ATTACHMENT A 34
City of Stockton
Stockton, California
Independent Accountants’ Report on
Applying Agreed-Upon Procedures
on Core Revenues
For the Year Ended June 30, 2021
ATTACHMENT B 35
INDEPENDENT ACCOUNTANTS’ REPORT ON APPLYING

AGREED-UPON PROCEDURES ON CORE REVENUES
To the Honorable Mayor and Members of City Council
of the City of Stockton
Stockton, California
We have performed the procedures enumerated below on the Core Revenues Schedule of the City of Stockton, California (the “City”) for the year ended June 30, 2021. The City’s management is responsible for the Core Revenues Schedule.

The City has agreed to and acknowledged that the procedures performed are appropriate to meet the intended purpose of meeting the requirements of Article IV Covenants, Section 4.02(b) - Not later than 210 days after and as of the end of each fiscal year, audited financial statements of the City, which financial statements shall include a statement of net position, statement of activities and changes in net position. The audited financial statements shall be audited by independent certified public accountants from a firm experienced in the field of municipal audits and licensed in the State of California, and prepared in accordance with GAAP, and shall be delivered together with an agreed-upon procedures letter from such accountants addressed to Assured Guaranty providing a report showing that such accountants have recomputed the calculations of the Actual Core Revenues and the Contingent General Fund Payment made by the City with respect to such Fiscal Year and have compared the data used in such calculations and found it to be consistent with the audited financial statements or other internal accounts and records of the City for such Fiscal Year. The report may not be suitable for any other purpose. The procedures performed may not address all the items of interest to a user of this report and may not meet the needs of all users of this report and, as such, users are responsible for determining whether the procedures are appropriate for their purposes.

The procedures and associated findings are as follows:

1. Obtained and reviewed Reimbursement Agreement between Assured Guaranty Municipal Corp. and the City of Stockton dated February 25, 2015.

Findings: No exceptions were noted.

2. Obtained the Contingent General Fund Payment detail and recalculated the Contingent General Fund Payment in accordance to Article II, Settlement Terms and Payments Section 2.03 Contingent General Fund Payments of the Reimbursement Agreement.

Under the Reimbursement Agreement between Assured Guaranty Municipal Corp. and City of Stockton dated as of February 25, 2015, Article II Settlement Terms and Payments, Section 2.03(a), for each Fiscal Year, commencing with the Fiscal Year ending June 30, 2018 and ending in the Fiscal Year ending June 30, 2052 (subject to extension pursuant to the provisions of subsection (d) below), in which the Actual Core Revenues exceed the Baseline Core Revenues, the City shall pay to the Payees, in the manner described in Section 2.05, a payment equal to the Allocable Share of the average Incremental Revenue Ratio for such Fiscal Year and each of the previous two Fiscal Years multiplied by the Shortfall Amount (each such payment, a “Contingent General Fund Payment”). The Payment Date for the estimated Contingent General Fund Payments with respect to any Fiscal Year shall be June 1 of such Fiscal Year, commencing June 1, 2018 to and including June 1, 2052, subject to the provisions of subsections (c) and (d) of this Section 2.03.
200 E. Sandpointe Ave., Suite 600, Santa Ana, California 92707 Tel: 949-777-8800 • Fax: 949-777-8850
www.pungroup.cpa
ATTACHMENT B 36
To the Honorable Mayor and Members of City Council
of the City of Stockton
Stockton, California

The Firm obtained and recalculated the Contingent General Fund Payment. In addition, we verified the payment was remitted by the City before the due date on June 1, 2021.

Findings: No exceptions were noted.

3. Obtained and reviewed calculations of the actual core revenues as stated in the Reimbursement Agreement.

Core Revenues is defined as follows:

According to the Reimbursement Agreement between Assured Guaranty Municipal Corp. and City of Stockton dated as of February 25, 2015, Article I Definitions, Core Revenues means, for each Fiscal Year, the City’s Unrestricted General Fund receipts, net of any required refunds, rebates or legally required adjustments from the following sources: a) ad valorem property tax (excluding any special overrides for voter-approved general obligation bonds); (b) sales and transaction and use taxes; (c) utility taxes; (d) transient occupancy taxes; (e) franchise taxes; (f) business license taxes; (g) document transfer taxes; (h) motor vehicle license fees; (i) other Unrestricted taxes approved by the voters after Fiscal Year 2013-14; and (j) net revenues generated from the sale of Surplus Property; provided, that Core Revenues does not include any Annexed Area Revenues or Realignment Revenues.

General Fund Core Revenues Fiscal Year 2020-21
Property Taxes
Property Taxes 38,496,017 $
In Lieu of Motor Vehicles License Fees 25,848,041
Motor Vehicles License Fees 233,615
Total Property Tax 64,577,673
Sales Tax
Point of Sale 63,094,957
Proposition 172 2,105,894
Measure A 40,810,516
Total Sales Tax 106,011,367
Other Taxes
Utility Users Tax 36,413,826
Franchise Tax 16,900,562
Business License Tax 14,090,618
Hotel/Motel Tax 2,887,420
Document Transfer Tax 1,221,516
Revenue Generated by Sale of Surplus Property 6,095
Total Other Taxes 71,520,037
Total Core Revenues $ 242,109,077
ATTACHMENT B 37
To the Honorable Mayor and Members of City Council
of the City of Stockton
Stockton, California

Performed procedures on the following core revenues:

Property taxes:

For property taxes, the firm obtained the total property tax revenue population amounted to $38,496,017. We performed analytical procedures on the total population by comparing prior year amounts to current year and budgeted amounts. The firm also sent confirmation to the County for total property taxes allocated to the City during the period July 1, 2020 to June 30, 2021. We received the confirmation in the mail and agreed amounts with no variance noted. The firm also agreed the property tax amounts to the ACFR for the year ended June 30, 2021.

For in lieu of motor vehicle license fees, the firm obtained the total motor vehicle license fee population amounted to $25,848,041. The firm sent confirmation to the County for motor vehicle license fees allocated to the City during the period July 1, 2020 to June 30, 2021. We received the confirmation in the mail and agreed amounts with no variance noted. In lieu of motor vehicle license fee was included as part of the other governmental revenue, the firm agreed the in lieu of motor vehicles license fees amounts to the other governmental revenue, and also to the ACFR for the year ended June 30, 2021.

Findings: No exceptions were noted.

Sales and Transaction and Use Tax:

For sales and transaction and use taxes, the firm obtained the total sales and transaction and use tax revenue population amounted to $106,011,367. We performed analytical procedures on the total population by comparing prior year amounts to current year and budgeted amounts. Measure A was approved by voters on November 5, 2013 as a three-quarter (0.75%) transaction and use tax (sales tax) effective April 1, 2014. The firm sent confirmation to the California Department of Tax and Fee Administration for the 1.00% 1ocal sales and use tax and Measure A transaction and use tax revenues distributed to the City during the period July 1, 2020 through June 30, 2021 in the amount of $63,094,957 and $40,810,516, respectively. In addition, the firm sent confirmation to the County of San Joaquin for the Proposition 172 revenue distributed to the City during the period July 1, 2020 through June 30, 2021 in the amount of $2,105,894. We received the confirmation in the mail and agreed amounts with no material variance noted.

The 1% local sales and use tax and Proposition 172 revenue are reported as intergovernmental revenue – sales and use tax levied by state in the ACFR. The Measure A transaction and use tax revenue is reported as tax revenue – sales – levied by City in the ACFR. The firm agreed the amount to the ACFR for the year ended June 30, 2021.

Findings: No exceptions were noted.

Utility Users Tax:

For utility users taxes, the firm obtained the total utility users tax revenue population amounted to $36,413,826. We performed analytical procedures on the total population by comparing prior year amounts to current year and budgeted amounts. The firm performed additional ratio analysis by comparing the month to month trend of revenue and cash receipts from revenue detail and cash distribution detail schedules provided by the City. The firm also agreed the total utility users tax amount to the ACFR for the year ended June 30, 2021.

Findings: No exceptions were noted.

ATTACHMENT B 38
To the Honorable Mayor and Members of City Council
of the City of Stockton
Stockton, California

Franchise Tax:

For franchise taxes, the firm obtained the total franchise tax revenue population amounted to $16,900,562.

We performed analytical procedures on the total population by comparing prior year amounts to current year and budgeted amounts. The firm also sent out confirmation to Comcast and Allied Waste for the residential and commercial franchise tax payments paid to the City during the period July 1, 2020 through June 30, 2021 in the amount of $1,982,473.77 and $4,033,517, respectively. We received the confirmations in the mail and agreed amounts with no material variances noted. The firm also agreed the total franchise tax amount to the ACFR for the year ended June 30, 2021.

Findings: No exceptions were noted.

Business License Tax:

For the business license taxes, the firm obtained the total business license tax revenue population amounted to $14,090,618. We performed analytical procedures on the total population by comparing prior year amounts to current year and budgeted amounts. The firm performed additional ratio analysis by comparing the month to month trend of revenue and cash receipts from revenue detail and cash distribution detail schedules provided by the City. The firm also agreed the total business license tax amount to the ACFR for the year ended June 30, 2021.

Findings: No exceptions were noted.

Transient Occupancy (Hotel/Motel) Tax:

For the transient occupancy (hotel/motel) taxes, the firm obtained the total transient occupancy tax revenue population amounted to $2,887,421. We performed analytical procedures on the total population by comparing prior year amounts to current year and budgeted amounts. The firm also agreed the total transient occupancy tax amount to the ACFR for the year ended June 30, 2021.

Findings: No exceptions were noted.

Document Transfer Tax:

For the document transfer taxes, the firm obtained the total document transfer tax revenue population amounted to $1,221,516. We performed analytical procedures on the total population by comparing prior year amounts to current year and budgeted amounts. The firm also agreed the total document transfer tax amount to the ACFR for the year ended June 30, 2021.

Findings: No exceptions were noted.

ATTACHMENT B 39
To the Honorable Mayor and Members of City Council
of the City of Stockton
Stockton, California

Revenues Generated from the Sale of Surplus Property:

For the net revenues generated from the sale of surplus property, the firm obtained the net revenue population amounting to $6,095. We performed analytical procedures on the total population by comparing prior year amounts to current year. The firm also agreed the total net revenue generated from the sale of surplus property amount to the ACFR for the year ended June 30, 2021.

Findings: No exceptions were noted.

We were engaged by the City to perform this agreed-upon procedures engagement and conducted our engagement in accordance with attestation standards established by the American Institute of Certified Public Accountants. We were not engaged to and did not conduct an examination or review engagement, the objective of which would be the expression of an opinion or conclusion, respectively, on the accompanying Core Revenues Schedule. Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you.

We are required to be independent of the City and to meet our ethical responsibilities, in accordance with the relevant ethical requirements related to our agreed-upon procedures agreement.

This report is intended solely for the information and use of the City Council, City management and Assured Guaranty Municipal Corp. and is not intended to be and should not be used by anyone other than these specified parties.

Santa Ana, California
March 4, 2022
ATTACHMENT B 40
Measure M
Strong Communities Fund
of the City of Stockton
Stockton, California
Financial Statements and
Independent Auditors’ Reports
For the Year Ended June 30, 2021
ATTACHMENT C 41
ATTACHMENT C 42
City of Stockton
Measure M Strong Communities Fund
For the Year Ended June 30, 2021
Table of Contents
Page

FINANCIAL SECTION
Independent Auditors’ Report on the Financial Statements ...................................................................................... 1 Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ................................................................................................. 3 Basic Financial Statements:

Balance Sheet ...................................................................................................................................................... 7 Statement of Revenues, Expenditures, and Changes in Fund Balance ................................................................ 8 Notes to the Basic Financial Statements ............................................................................................................ 11 Required Supplementary Information (Unaudited):

Budgetary Information:

Budget Process .................................................................................................................................................. 17 Budget Basis of Accounting .............................................................................................................................. 17 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual ............................. 18 ATTACHMENT C 43
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ATTACHMENT C 44

FINANCIAL SECTION
ATTACHMENT C 45
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ATTACHMENT C 46
INDEPENDENT AUDITORS’ REPORT
To the Honorable Mayor and Members of the City Council
of the City of Stockton
Stockton, California
Report on Financial Statements

We have audited the accompanying financial statements of the Measure M Strong Communities Fund (the “Fund”) of the City of Stockton, California (the “City”), which comprise the balance sheet as of June 30, 2021, and the related statement of revenues, expenditures, and changes in fund balance for the year then ended, and the related notes to the fund financial statements.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditors’ Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position and result of operations and changes in fund balance of the Fund of the City, as of and for the year ended June 30, 2021 in accordance with accounting principles generally accepted in the United States of America. 200 E. Sandpointe Ave., Suite 600, Santa Ana, California 92707 Tel: 949-777-8800 • Fax: 949-777-8850
www.pungroup.cpa
ATTACHMENT C 47
To the Honorable Mayor and Members of the City Council
of the City of Stockton
Stockton, California

2 Emphasis of Matter
As discussed in Note 1, the financial statements present only the balance sheet and the statement of revenues, expenditures and changes in fund balance of the Fund and do not purport to, and do not present fairly the financial position of the City as of June 30, 2021, the changes in its financial position, or, where applicable, its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter.

Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Budgetary Comparison Schedules – Measure M Strong Communities Fund on page 18 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Management has omitted Management’s Discussion and Analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of the financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinion on the basic financial statements is not affected by this missing information.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated March 4, 2022, on our consideration of the City’s internal control over Fund’s financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over Fund’s financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.

Santa Ana, California
March 4, 2022
ATTACHMENT C 48

REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND

OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN

ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Independent Auditors’ Report
To the Honorable Mayor and Members of the City Council
of the City of Stockton
Stockton, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the Measure M Strong Communities Fund (the “Fund”) of the City of Stockton, California (the “City”), which comprise the balance sheet as of June 30, 2021 and the related statement of revenues, expenditures, and changes in fund balance for the year then ended, and the related notes to the fund financial statements and have issued our report thereon dated March 4, 2022.

Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City’s internal control over the Fund’s financial reporting (“internal control”) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that have not been identified.

Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weakness.

Compliance and Other Matters
As part of obtaining reasonable assurance about whether the financial statements of the Measure M Strong Communities Fund of the City are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.
200 E. Sandpointe Ave., Suite 600, Santa Ana, California 92707 Tel: 949-777-8800 • Fax: 949-777-8850
www.pungroup.cpa
ATTACHMENT C 49
To the Honorable Mayor and Members of the City Council
of the City of Stockton
Stockton, California

4 Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

Santa Ana, California
March 4, 2022
ATTACHMENT C 50
5 FUND FINANCIAL STATEMENTS
ATTACHMENT C 51
6 This page intentionally left blank.

ATTACHMENT C 52
Assets
Cash and cash equivalent $ 25,024,240
Investments 243,557
Interest receivable 63,912
Deposits 18,097
Due from State of California Department of Tax and Fee Administration 2,937,724 Total assets $ 28,287,530
Liabilities and Fund Balances
Liabilities:

Accounts payable $ 494,714
Accrued payroll 155,245
Total liabilities 649,959
Fund Balance:

Restricted 27,637,571
Total fund balance 27,637,571
Total liabilities and fund balance $ 28,287,530
City of Stockton
Balance Sheet
June 30, 2021
Measure M Strong Communities Fund
See accompanying Notes to Fund Financial Statements.
7 ATTACHMENT C 53
Revenues:

Taxes:

Sales - levied by City $ 13,932,748
Interest income 103,111
Total revenues 14,035,859
Expenditures:

Current:

General government 8,976
Library 2,096,912
Parks and recreation 2,997,436
Capital outlay 2,610,257
Total expenditures 7,713,581
Changes in fund balances 6,322,278
Fund Balance:

Beginning of year 21,315,293
End of year $ 27,637,571
City of Stockton
Statement of Revenues, Expenditures, and Changes in Fund Balances For the Year Ended June 30, 2021
Measure M Strong Communities Fund
See accompanying Notes to Fund Financial Statements.
8 ATTACHMENT C 54
9 NOTES TO THE FUND FINANCIAL STATEMENTS
ATTACHMENT C 55
10 This page intentionally left blank.

ATTACHMENT C 56
City of Stockton
Measure M Strong Communities Fund
Notes to the Fund Financial Statements
For the Fiscal Year Ended June 30, 2021
11 Note 1 – Definition of the Fund
On November 8, 2016, the people of the City of Stockton (the “City”) approved the Strong Communities Initiative (“Measure M”), which authorized the City of Stockton Special Library and Recreation Transactions and Use Tax Ordinance (Ordinance No. 2016-06-07-1212). The original Ordinance is adopted by the Stockton City Council on May 24, 2016. An amended Ordinance was approved by the City Council on June 7, 2016. The Ordinance allows the City to implement a dedicated one-quarter (¼) cent special transaction and use tax for a period of 16 years for the restoration and expansion of library and recreation services.

The City established the Measure M Strong Communities Fund (the “Fund”), to account for the Measure M taxes collected and spent on library and recreation services. These operations constitute part of the overall financial reporting entity of the City and are accounted for as a special revenue fund in accordance with generally accepted accounting principles within the City’s comprehensive annual financial report. The accounting policies of the Fund conform to the modified accrual basis of accounting.

Note 2 – Summary of Significant Accounting Policies
A. Basis of Presentation
The accompanying financial statements present only information pertain to the Fund and are not intended to present the financial position, changes in financial position, or cash flows of the City in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”).

The financial statement presentation follows the recommendations promulgated by the Governmental Accounting Standards Board (“GASB”) commonly referred to as U.S. GAAP. GASB is the accepted standard-setting body for establishing governmental accounting and financial reporting standards.

B. Measurement Focus and Basis of Accounting
In the accompanying financial statements, the Fund is presented using the “current financial resources” measurement focus. This means that only current assets and current liabilities are generally included on their balance sheet. The Statement of Revenues, Expenditures, and Changes in Fund Balance present increases (revenues) and decrease (expenditures) in net current assets.

The activities of the Fund are recorded in a special revenue fund and accounted for using the modified accrual basis of accounting. Special revenue funds are used to account for the proceeds of specific revenue sources (other than major capital projects) that are legally restricted to expenditures for specified purposes. Under the modified accrual basis of accounting, revenues are recognized when they become susceptible to accrual (i.e., both measurable and available). Measurable means that the amount of the transaction can be estimated, or otherwise determined. Available means the funds are collectible within 90 days after year-end. Expenditures are generally recognized when the related liability is incurred.

C. Use of Estimates
The preparation of the basic financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported changes in net position during the reporting period. Actual results could differ from those estimates.

ATTACHMENT C 57
City of Stockton
Measure M Strong Communities Fund
Notes to the Fund Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2021
12 Note 2 – Summary of Significant Accounting Policies (Continued) D. Cash, Cash Equivalents, and Investments
All cash and cash equivalents reported in the Fund are accounted for by the City. For further information, please refer to Note 1 – Summary of Significant Accounting Policies in the City’s annual comprehensive financial report.

E. Receivables
Revenues are recorded when received in cash, except revenues subject to accrual (up to 90 days after year-end) are recognized when due. The primary revenue source of the Fund is transactions and use tax collected through the State of California Department of Tax and Fee Administration.

F. Classification of Fund Balance
All fund balance in the Fund is fully restricted.

Restricted – Amounts that are restricted by external parties such as creditors or imposed by grants, laws or regulations of other governments or imposed by law through constitutional provisions or enabling legislation.

The City has legislative restrictions on amounts collected and reported in the Fund. As a result, these restrictions have been classified as restricted for library and recreation.

Other types of fund balance that are not applicable to the Fund are described below:

Nonspendable – Amounts that cannot be spent because they are (1) not in spendable form, such as prepaid items, inventories and long-term receivables for which the payment of proceeds are not restricted or committed with respect to the nature of the specific expenditures of that fund or (2) legally or contractually required to be maintained intact.

Committed – This amount indicates the portion of fund balances which can only be used for specific purposes under formal resolution or ordinance of the City Council. Commitments may be changed or lifted only by the City taking the same formal action that imposed the constraint originally.

Assigned – Amounts that have been allocated by action of an official authorized by the Stockton City Council in which the City’s intent is to use the funds for a specific purpose. The City considers this level of authority to be the City Manager of the City of Stockton.

Unassigned – Amounts that constitute the residual balances that have no restrictions placed upon them. If restrictions exceed available resources at the end of the year, the deficit amounts are reported and classified as unassigned.

G. Spending Policy
When expenditures are incurred for purposes for which both restricted and unrestricted fund balances are available, the City’s policy is first to expend restricted fund balances, then unrestricted fund balances as they are needed.

When expenditures are incurred for purposes where only unrestricted fund balances are available, the City uses the unrestricted resources in the following order: committed, assigned, and unassigned depending on the nature of the expenditure.

ATTACHMENT C 58
City of Stockton
Measure M Strong Communities Fund
Notes to the Fund Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2021
13 Note 3 – Cash and Cash Equivalents
Cash and cash equivalents as of June 30, 2021 consist of the following:

Description June 30, 2021
Demand Deposits $ 25,024,240
Total cash and cash equivalents $ 25,024,240
The Fund’s cash was part of the pool cash and investments of the City of Stockton (the “City”).

At June 30, 2021, the carrying amount of the Fund’s deposits was $25,024,240. The total bank balance was covered by federal depository insurance or by collateral with securities held by the pledging financial institutions in the City’s name as discussed below.

The California Government Code requires California banks and savings and loan associations to secure the City’s cash deposits by pledging securities as collateral. This Code states that collateral pledged in this manner shall have the effect of perfecting a security interest in such collateral superior to those of a general creditor. Thus, collateral for cash deposits is considered to be held in the City's name.

The market value of pledged securities must equal at least 110% of the City's cash deposits. California law also allows institutions to secure Stockton deposits by pledging first trust deed mortgage notes having a value of 150% of the City’s total cash deposits. The City may waive collateral requirements for cash deposits, which are fully insured up to $250,000 by the Federal Deposit Insurance Corporation (“FDIC”). The City, however, has not waived the collateralization requirements for deposits insured by FDIC.

Note 4 – Due From Other Governments
Due from other governments consists of retail transactions and use tax due from the State of California Department of Tax and Fee Administration. At June 30, 2021, the amount due from the State of California Department of Tax and Fee Administration was $2,937,724.

ATTACHMENT C 59
City of Stockton
Measure M Strong Communities Fund
Notes to the Fund Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2021
14 Note 5 – Commitments and Contingencies
Litigation
Legal claims and lawsuits arise from time to time in the normal course of business which, in the opinion of management, will not materially affect the financial statements of the City as of June 30, 2021.

Commitments
In addition to library and recreation operations, Strong Communities funds are being used for capital projects expanding or improving library and recreation facilities. The City Council approve capital appropriations as of June 30, 2021 were $15,998,892. The largest project underway, with an approved appropriation of $10,853,269, will build a new library and recreation facility in Northeast Stockton. In addition, $473,935 was appropriated to upgrade the fencing and gate for improved security at the McNair Soccer Complex. Also included are $2,823,283 for additional restroom facilities, expansion of the parking lot and additional lighting at the Stockton Soccer Complex. Finally, the Stockton City Council approved to appropriate $1,887,000 for the renovation of the McKinley Park and Recreation Center. Facilities require extensive renovation or replacement as well as expanded aquatics amenities such as children’s pools, spray grounds and equipment.

ATTACHMENT C 60
15 REQUIRED SUPPLEMENTARY INFORMATION (UNAUDITED)
ATTACHMENT C 61
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ATTACHMENT C 62
City of Stockton
Measure M Strong Communities Fund
Required Supplementary Information (Unaudited)
For the Fiscal Year Ended June 30, 2021
17 1. Budgetary Information
Budget Process
In accordance with the provisions of the City Charter, the City prepares and adopts a budget on or before June 30 for each fiscal year. Total Appropriations shall not exceed the total of estimated revenues, estimated unencumbered balances of funds to be carried over from the preceding year and unencumbered available fund balances. Prior to July 1, the original adopted budget is legally enacted through the passage of a resolution by the City Council. In the event this does not occur, the City Manager’s draft budget is in force until a budget is adopted by the City Council.

If expenditures exceed appropriations at the department level for the General Fund or at the fund level for all other funds, Council approval must be obtained to amend the budget. The City Manager is authorized to transfer budgeted amounts between line items within a General Fund department and within a fund for all other funds.

During the year, the City Council approves supplemental appropriations and, by resolution, has also authorized the City Manager to transfer fund balances to applicable appropriation accounts, or to transfer between funds, when necessary to continue purposes approved by the City Council in the current year, adopted budget, or subsequent action. Amounts reported as final budget in the Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual – On a Budgetary Basis include amendments authorized throughout the year.

All unencumbered appropriations lapse at year-end, with the exception of some capital improvement projects and miscellaneous grants in the respective funds. Encumbered appropriations are re-appropriated in the following year’s budget.

Budgetary Basis of Accounting
The City adopts budgets each fiscal year on a basis of accounting, which is different from accounting principles generally accepted in the United States of America (GAAP).

The statements of revenue, expenditures and changes in fund balances have been prepared on the modified accrual basis of accounting in accordance with GAAP. The schedules of revenues, expenditures and changes in fund balances – budget and actual – on a budgetary basis have been prepared on the budgetary basis, which is different from GAAP.

The variations from GAAP that are for budgetary purposes include the following:
 Outstanding commitments relating to construction contracts and other purchases of goods and services are recorded as expenditures at the time contracts or purchase agreements are entered into. Under GAAP, these obligations are recognized when goods are received or services are rendered.  The write-off uncollectable accounts receivables is not recognized as an expenditure. Under GAAP, these write-offs are recognized as expenditures when the accounts receivables are determined to be uncollectable.

ATTACHMENT C 63
City of Stockton
Measure M Strong Communities Fund
Required Supplementary Information (Unaudited) (Continued) For the Fiscal Year Ended June 30, 2021
18 Budgetary Information (Continued)
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual Variance with
Original Final Actual Final Budget
Revenues:

Taxes:

Sales - levied by City 9,600,000 $ 9,600,000 $ 13,932,748 $ 4,332,748 $ Interest income 106,000 106,000 103,111 (2,889)
Total revenues 9,706,000 9,706,000 14,035,859 4,329,859 Expenditures:

Current:

General Government - - 8,976 (8,976)
Library 3,186,506 3,141,554 2,096,912 1,044,642
Recreation programs 5,066,274 5,158,426 2,997,436 2,160,990 Capital outlay 177,000 17,908,886 2,610,257 15,298,629
Total expenditures 26,208,866 8,429,780 7,713,581 18,495,285 Changes in fund balances $ (32,380,674) 1,276,220 $ 6,322,278 38,702,952 $ Fund Balance (Budgetary Basis):

Beginning of year 21,315,293
End of year $ 27,637,571
Basis Adjustment:

Changes in fund balances - budgetary basis $ 6,322,278
Encumbrances 259,552
Changes in fund balances - GAAP basis 6,581,830
Fund Balance (GAAP Basis):

Beginning of year 21,315,293
End of year $ 27,897,123
Budget
ATTACHMENT C 64
Measure W
Public Safety Tax Fund
of the City of Stockton
Stockton, California
Independent Auditors’ Reports
and Financial Schedules
For the Years Ended June 30, 2021 and 2020
ATTACHMENT D 65
ATTACHMENT D 66
City of Stockton
Measure W Public Safety Tax Fund
For the Years Ended June 30, 2021 and 2020
Table of Contents
Page
Independent Auditors’ Report ..................................................................................................................................... 1 Schedules of Revenues, Expenditures, and Change in Fund Balances ........................................................................... 3 Notes to the Financial Schedules ..................................................................................................................................... 4 Report on Internal Control Over Financial Reporting
and on Compliance and Other Matters Based on an Audit of the Financial Schedules Performed in Accordance with Government Auditing Standards ..................................... 5 ATTACHMENT D 67
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ATTACHMENT D 68
INDEPENDENT AUDITORS’ REPORT
To the Honorable Mayor and Members of the City Council
of City of Stockton
City of Stockton, California
Report on Financial Schedules
We have audited the financial schedules of the Measure W Public Safety Tax Fund (the “Fund”) of the City of Stockton, California (the “City”) which comprise the schedules of revenues, expenditures and change in fund balance (the “Financial Schedules”) for the years ended June 30, 2021 and 2020 and the related notes to the Financial Schedules.

Management’s Responsibility for the Financial Schedules Management is responsible for the preparation and fair presentation of the Financial Schedules in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of Financial Schedules that are free from material misstatement, whether due to fraud or error.

Auditors’ Responsibility
Our responsibility is to express an opinion on the Financial Schedules based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States.

Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the Financial Schedules are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the Financial Schedules. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the Financial Schedules, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the City’s preparation and fair presentation of the Financial Schedules in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the Financial Schedules.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion
In our opinion, the Financial Schedules referred to above presents fairly, in all material respects, the revenues, expenditures and change in fund balance of the Fund of the City of Stockton, for the years ended June 30, 2021 and 2020 in conformity with accounting principles generally accepted in the United States of America. 200 E. Sandpointe Ave., Suite 600, Santa Ana, California 92707 Tel: 949-777-8800 • Fax: 949-777-8850
www.pungroup.cpa
ATTACHMENT D 69
To the Honorable Mayor and Members of the City Council
of City of Stockton
City of Stockton, California

2 Emphasis of Matter
As discussed in Note 1, the Financial Schedules presents only the revenues, expenditures and change in fund balance of the Fund and does not purport to, and does not, present fairly the financial position of the Fund or City as of June 30, 2021 and 2020, nor the change in financial position of the City for the years then ended in accordance with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter.

Other Reporting required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated March 4, 2022, on our consideration of the City’s internal control over the Fund’s financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering City’s internal control over the Fund’s financial reporting and compliance.

Santa Ana, California
March 4, 2022
ATTACHMENT D 70
City of Stockton
Measure W Public Safety Tax Fund
Schedules of Revenues, Expenditures, and Change in Fund Balance For the Years Ended June 30, 2021 and 2020
See accompanying Notes to the Financial Schedules.
3 Police Fire Total Police Fire Total
REVENUES:

Taxes:

Sales - levied by City $ 6,947,881 $ 6,947,881 $ 13,895,762 $ 5,688,479 $ 5,688,479 $ 11,376,958 Investment (expense) income: 2,345 2,104 4,449 78,870 83,128 161,998 Total revenues 6,950,226 6,949,985 13,900,211 5,767,349 5,771,607 11,538,956 EXPENDITURES - PUBLIC SAFETY:

Payroll:

Salaries 2,411,867 2,581,277 4,993,144 2,440,204 2,492,709 4,932,913 Benefits 2,347,114 2,420,994 4,768,108 2,165,025 2,204,039 4,369,064 Total Payroll 4,758,981 5,002,271 9,761,252 4,605,229 4,696,748 9,301,977 Equipment, services and supplies:

Tax collection fee 97,543 97,544 195,087 113,421 113,420 226,841 Sales Tax Review Service - - - 2,029 2,029 4,058
Liability Insurance 158,243 173,696 331,939 128,349 130,247 258,596 Vehicle rental charges 319,766 206,529 526,295 275,254 203,529 478,783 Radio rental charges 50,162 22,543 72,705 44,672 23,992 68,664 Materials and Services 31,140 83,787 114,927 18,330 12,937 31,267 Fuel Charges 81,411 8,669 90,080 75,302 8,657 83,959
Capital outlay/equipment 102,603 102,603 - 258,449 258,449 - Total equipment, services and supplies 738,265 695,371 1,433,636 657,357 753,260 1,410,617 Total expenditures 5,497,246 5,697,642 11,194,888 5,262,586 5,450,008 10,712,594 NET CHANGE IN FUND BALANCES 1,452,980 1,252,343 2,705,323 504,763 321,599 826,362 FUND BALANCES, BEGINNING OF YEAR 2,861,040 2,630,535 5,491,575 2,356,277 2,308,936 4,665,213 FUND BALANCES, END OF YEAR $ 4,314,020 $ 3,882,878 $ 8,196,898 $ 2,861,040 $ 2,630,535 $ 5,491,575 2021 2020
ATTACHMENT D 71
City of Stockton
Measure W Public Safety Tax Fund
Notes to the Financial Schedules
For the Years Ended June 30, 2021 and 2020
4 Note 1 – Summary of Significant Accounting Policies
A. Description of Reporting Entity
The Measure W Public Safety Tax Fund (Fund) of the City of Stockton, California (the “City”) accounts for the Measure W Taxes collected and spent for police and fire purposes. The Fund is included in the basic financial statements of the City. These financial schedules are intended to present only the revenues, expenditures and change in fund balance of the Fund of the City. It does not present fairly the financial position of the Fund or the City, nor the change in financial position of the City in conformity with accounting principles generally accepted in the United States of America.

The accounting policies of the Fund conform to generally accepted accounting principles in the United States of America as they are applicable to governmental units. The Governmental Accounting Standards Board (the “GASB”) is the standard setting body for establishing governmental accounting and financial reporting principles.

The more significant policies reflected in the financial schedules are summarized below.

B. Basis of Presentation, Measurement Focus and Basis of Accounting The activities of the Fund are recorded in a special revenue fund and accounted for using the modified accrual basis of accounting. Special revenue funds are used to account for the proceeds of specific revenue sources (other than major capital projects) that are legally restricted to expenditures for specified purposes. Under the modified accrual basis of accounting, revenues are recognized when they become susceptible to accrual (i.e. both measurable and available). Measurable means that the amount of the transaction can be determined. Available means the funds are collectible within 90 days after year-end. Expenditures of governmental funds are generally recognized when the related fund liability is incurred.

C. Sales and Use Tax – Measure W
The people of the City approved Measure W on November 2, 2004, which authorized Ordinance No. 038-04 CS that added a new Part of Chapter 8 of the Stockton Municipal Code. This Ordinance provided authorization for an additional one-quarter of one percent transaction and use tax, the proceeds of which shall be used to maintain current police and fire protection service levels and to contract with the State of California Department of Tax and Fee Administration to perform all functions incident to the administration and operation of the tax.

D. Allocation of Revenue and Expenditures between Police and Fire Department Tax revenue collected is distributed evenly between the Police and Fire Department. Investment expense and investment income are allocated between the Police and Fire Department based on share of total fund balance reduced by expenditures incurred in each department during the year. All other expenditures are recorded based on actual amount incurred in respective department.

ATTACHMENT D 72

REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND

OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL SCHEUDLES PERFORMED IN

ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Independent Auditors’ Report
To the Honorable Mayor and Members of the City Council
of the City of Stockton
City of Stockton, California
We have audited the schedules of revenues, expenditures and change in fund balance (the “Financial Schedules”) of the Measure W Public Safety Tax Fund (the “Fund”) of the City of Stockton, California (the “City”), for the years ended June 30, 2021 and 2020, and have issued our report thereon dated March 4, 2022. Our report contained an explanatory paragraph describing that the schedules only presents the revenues, expenditures and change in fund balance of the Fund and not the City. We conducted our audits in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States.

Internal Control Over Financial Reporting
In planning and performing our audits of the Financial Schedules, we considered the City’s internal control over the Fund’s financial reporting (“internal control”) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the Financial Schedules, but not for the purpose of expressing an opinion on the effectiveness of City’s internal control over the Fund’s financial reporting. Accordingly, we do not express an opinion on the effectiveness of City’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the City’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control over the Fund’s Financial Schedules was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or, significant deficiencies. Given these limitations, during our audits we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.
200 E. Sandpointe Ave., Suite 600, Santa Ana, California 92707 Tel: 949-777-8800 • Fax: 949-777-8850
www.pungroup.cpa
ATTACHMENT D 73
To the Honorable Mayor and Members of the City Council
of City of Stockton
City of Stockton, California

6 Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Financial Schedules are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of Financial Schedules amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control or on compliance as they relate to the Fund. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

Santa Ana, California
March 4, 2022
ATTACHMENT D 74
City of Stockton
Legislation Text
File #: 22-0278, Version: 1
ADOPT TWO RESOLUTIONS APPOINTING LORI M. ASUNCION AS ACTING CITY ATTORNEY FOR THE CITY OF STOCKTON, AND AUTHORIZING LORI M. ASUNCION, AS ACTING CITY

ATTORNEY, TO ACCEPT DEEDS AND GRANTS OF REAL PROPERTY AND INTERESTS

THEREIN

RECOMMENDATION

1. Adopt a resolution appointing Lori M. Asuncion, as Acting City Attorney for the City of Stockton.

2. It is recommended that a resolution be adopted rescinding Resolution No. 10-0085, adopted on March 16, 2010, and authorizing Lori M. Asuncion, as Acting City Attorney, to accept deeds and grants of real property and interests therein, effective April 1, 2022, and to consent to the recordation thereof.

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75 Resolution No.

STOCKTON CITY COUNCIL
RESOLUTION APPOINTING LORI M. ASUNCION AS ACTING CITY ATTORNEY FOR

THE CITY OF STOCKTON
Due to the resignation of John M. Luebberke, the City Attorney position will be vacant, and it is necessary to appoint an Acting City Attorney to carry out the duties and functions of the City Attorney until such time as a permanent appointment can be made; now, therefore,

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

1. That Lori M. Asuncion is appointed Acting City Attorney of the City of Stockton, said appointment to be effective April 1, 2022.

PASSED, APPROVED, and ADOPTED March 22, 2022 .
________________________________
KEVIN J. LINCOLN II
Mayor of the City of Stockton
ATTEST:
____________________________________
ELIZA R. GARZA, CMC
City Clerk of the City of Stockton
76 After Recording Return to:

ELIZA R. GARZA, CMC

CITY CLERK

CITY HALL
425 N. El Dorado Street
Stockton, CA 95202
Resolution No.

STOCKTON CITY COUNCIL

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

1. That effective April 1, 2022, LORI M. ASUNCION, ACTING CITY ATTORNEY, is hereby authorized to accept deeds and grants of real property and interests therein and to consent to the recordation thereof for and on behalf of the City of Stockton.

2. That the City Clerk is hereby authorized and directed to record a copy of this Resolution with the San Joaquin County Recorder’s Office.

3. That Resolution No. 10-0085 adopted by the City Council on March 16, 2010, is hereby rescinded effective March 31, 2022.

PASSED, APPROVED, and ADOPTED March 22, 2022 .
________________________________
KEVIN J. LINCOLN II
Mayor of the City of Stockton
ATTEST:
____________________________________
ELIZA R. GARZA, CMC
City Clerk of the City of Stockton
77 City of Stockton
Legislation Text
File #: 22-0261, Version: 1

ACCEPT COMMITTEE MINUTES FOR FILING

RECOMMENDATION
Accept for filing minutes from the Salary Setting Commission meeting of January 19, 2022 Attachment A - Minutes
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City of Stockton
Legislation Text
File #: 22-0263, Version: 1

APPROVAL OF CITY COUNCIL MINUTES

RECOMMENDATION
Approve the minutes from the City Council Special meetings of January 24, 2022 and February 14, 2022 and the City Council Regular meetings of January 25, 2022 and February 8, 2022.

Attachment A - 2022-01-24 Special Minutes
Attachment B - 2022-02-14 Special Minutes
Attachment C - 2022-01-25 Minutes
Attachment D - 2022-02-08 Minutes
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City of Stockton
Legislation Text
File #: 22-0259, Version: 1
ADOPT A RESOLUTION TO OPPOSE INITIATIVE 21-0042A1 - THE TAXPAYER PROTECTION

AND GOVERNMENT ACCOUNTABILITY ACT

RECOMMENDATION
It is recommended that City Council approves a resolution opposing Initiative 21-0042A1 - The Taxpayer Protection and Government Accountability Act.

Summary
The Taxpayer Protection and Government Accountability Act (Attachment A) limits voters’ authority, adopts new and stricter rules for raising taxes and fees, and makes it more difficult to hold violators of state and local laws accountable.

DISCUSSION
Background
In 2018, the “Tax Fairness, Transparency and Accountability Act” was being circulated to qualify for the November 2018 ballot. This initiative would have drastically limited local revenue authority.

Through the successful work and advocacy of the League of California Cities (Cal Cities) and its coalition, the measure’s proponents withdrew the initiative from the ballot in June 2018.

On Jan. 4, 2022, the California Business Roundtable filed the Taxpayer Protection and Government Accountability Act. This measure is far more detrimental to cities than the measure filed in 2018, because it would decimate vital local and state services to the benefit of wealthy corporations.

Cal Cities, along with a broad coalition of local governments, labor and public safety leaders, infrastructure advocates, and businesses, strongly oppose this initiative (See Attachments B-D).

What would this Measure specifically do:
1) Limit voter authority and accountability
· Limits voter input. Prohibits local voters from providing direction on how local tax dollars should be spent by prohibiting local advisory measures. Measure B is an existing example of an advisory measure that would not be allowed if Initiative 21-0042A1 is approved by voters.

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· Invalidates the Upland decision that allows a majority of local voters to pass special taxes. Taxes proposed by the Initiative are subject to the same rules as taxes placed on the ballot by a city council. All measures passed between January 2022 and November 2022 would be invalidated unless reenacted within 12 months. 2) Restrict local fee authority to provide local services · Impacts franchise fees. Sets new standard for fees and charges paid for the use of local and state government property. The standard may significantly restrict the amount oil companies, utilities, gas companies, railroads, garbage companies, cable companies, and other corporations pay for the use of local public property. Rental and sale of local government property must be “reasonable” which must be proved by “clear and convincing evidence.”
· Except for licensing and other regulatory fees, fees and charges may not exceed the “actual cost” of providing the product or service for which the fee is charged. “Actual cost” is the “minimum amount necessary.” The burden to prove the fee or charge does not exceed “actual cost” is changed to “clear and convincing” evidence. 3) Restrict authority of state and local governments to issue fines and penalties for violations of law
· Requires voter approval of fines, penalties, and levies for corporations and property owners that violate state and local laws unless a new, undefined adjudicatory process is used to impose the fines and penalties.
4) Restrict local tax authority to provide local services · Requires voter approval to expand existing taxes (e.g., UUT, use tax, TOT) to new territory (e.g., annexation) or expanding the base (e.g., new utility service). · City charters may not be amended to include a tax or fee. · New taxes can be imposed only for a specific time period. · Taxes adopted after Jan. 1, 2022, that do not comply with the new rules, are void unless reenacted.
· All state taxes require majority voter approval.
· Prohibits any surcharge on property tax rate and allocation of property tax to state. 5) Other changes
· No fee or charge or exaction regulating vehicle miles traveled can be imposed as a condition of property development or occupancy.

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Passage of Initiative 21-0042A1 - The Taxpayer Protection and Government Accountability Act would create an unreasonable administrative burden on the City as it relates to fee rate development while also creating additional concerns and deficiencies related to annexations. There is the potential for additional legal costs associated with defending fees and justifying rate calculations.

Passage of this initiative would also put several millions of revenue dollars at risk, such as franchise revenues, fines and penalties, revenues from charges for service, along with collections of appropriate UUT, Use Tax, and TOT.

FINANCIAL SUMMARY
There is no impact to the City’s General Fund or any other unrestricted fund as a result of the recommended action.

Attachment A - Initiative 21-0042A1
Attachment B - CalCities Fact Sheet
Attachment C - CalCities Fiscal Analysis
Attachment D - CalCities Legal Analysis
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The Taxpayer Protection and Government Accountability Act [Deleted codified text is denoted in strikeout. Added codified text is denoted by italics and underline.] Section 1. Title
This Act shall be known, and may be cited as, the Taxpayer Protection and Government Accountability Act.

Section 2. Findings and Declarations
(a) Californians are overtaxed. We pay the nation's highest state income tax, sales tax, and gasoline tax. According to the U.S. Census Bureau, California's combined state and local tax burden is the highest in the nation. Despite this, and despite two consecutive years of obscene revenue surpluses, state politicians in 2021 alone introduced legislation to raise more than $234 billion in new and higher taxes and fees.
(b) Taxes are only part of the reason for California's rising cost-of-living crisis. Californians pay billions more in hidden "fees" passed through to consumers in the price they pay for products, services, food, fuel, utilities and housing. Since 2010, government revenue from state and local "fees" has more than doubled.
(c) California's high cost of living not only contributes to the state's skyrocketing rates of poverty and homelessness, they are the pushing working families and job-providing businesses out of the state. The most recent Census showed that California's population dropped for the first time in history, costing us a seat in Congress. In the past four years, nearly 300 major corporations relocated to other states, not counting thousands more small businesses that were forced to move, sell or close. (d) California voters have tried repeatedly, at great expense, to assert control over whether and how taxes and fees are raised. We have enacted a series of measures to make taxes more predictable, to limit what passes as a "fee," to require voter approval, and to guarantee transparency and accountability. These measures include Proposition 13 (1978), Proposition 62 (1986), Proposition 218 (1996), and Proposition 26 (2010).
(e) Contrary to the voters' intent, these measures that were designed to control taxes, spending and accountability, have been weakened and hamstrung by the Legislature, government lawyers, and the courts, making it necessary to pass yet another initiative to close loopholes and reverse hostile court decisions.

Section 3. Statement of Purpose
(a) In enacting this measure, the voters reassert their right to a voice and a vote on new and higher taxes by requiring any new or higher tax to be put before voters for approval. Voters also intend that all fees and other charges are passed or rejected by the voters themselves or a governing body elected by voters and not unelected and unaccountable bureaucrats.
(b) Furthermore, the purpose and intent of the voters in enacting this measure is to increase transparency and accountability over higher taxes and charges by requiring any tax measure placed on the ballot1 ATTACHMENT A 107
either at the state or local level-to clearly state the type and rate of any tax, how long it will be in effect, and the use of the revenue generated by the tax.
(c) Furthermore, the purpose and intent of the voters in enacting this measure is to clarify that any new or increased form of state government revenue, by any name or manner of extraction paid directly or indirectly by Californians, shall be authorized only by a vote of the Legislature and signature of the Governor to ensure that the purposes for such charges are broadly supported and transparently debated. (d) Furthermore, the purpose and intent of the voters in enacting this measure is also to ensure that taxpayers have the right and ability to effectively balance new or increased taxes and other charges with the rapidly increasing costs Californians are already paying for housing, food, childcare, gasoline, energy, healthcare, education, and other basic costs of living, and to further protect the existing constitutional limit on property taxes and ensure that the revenue from such taxes remains local, without changing or superseding existing constitutional provisions contained in Section 1{c) of Article XIII A. (e) In enacting this measure, the voters also additionally intend to reverse loopholes in the legislative twothirds vote and voter approval requirements for government revenue increases created by the courts including, but not limited to, Cannabis Coalition v. City of Upland, Chamber of Commerce v. Air Resources Board, Schmeer v. Los Angeles County, Johnson v. County of Mendocino, Citizens Assn. of Sunset Beach v.

Orange County Local Agency Formation Commission, and Wilde v. City of Dunsmuir.

Section 4. Section 3 of Article XIII A of the California Constitution is amended to read:

Sec. 3(a} Every levy, charge. or exaction of any kind imposed by state law is either a tax or an exempt charge.
illlJ1l ~ Any change in state statute Jaw which results in any taxpayer paying a new or higher tax must be imposed by an act passed by not less than two-thirds of all members elected to each of the two houses of the Legislature, and submitted to the electorate and approved by a maiority vote, except that no new ad valorem taxes on real property, or sales or transaction taxes on the sales of real property, may be imposed. Each Act shall include:
(A) A specific duration of time that the tax will be imposed and an estimate of the annual amount expected to be derived from the tax.
(BJ A specific and legally binding and enforceable limitation on how the revenue from the tax can be spent.

If the revenue from the tax can be spent for unrestricted general revenue purposes. then a statement that the tax revenue can be spent for "unrestricted general revenue purposes" shall be included in a separate, stand-alone section. Any proposed change to the use of the revenue from the tax shall be adopted by a separate act that is passed by not less than two-thirds of all members elected to each of the two houses of the Legislature and submitted to the electorate and approved by a maiority vote. (2) The title and summary and ballot label or question required for a measure pursuant to the Elections Code shall. for each measure providing for the imposition of a tax, including a measure proposed by an elector pursuant to Article II, include:
{A) The type and amount or rate of the tax;
(BJ The duration of the tax: and
2 ATTACHMENT A 108
(CJ The use of the revenue derived from the tax.
(c} Any change in state law which results in any taxpayer paying a new or higher exempt charge must be imposed by an act passed by each of the two houses of the Legislature. Each act shall specify the type of exempt charge as provided in subdivision (e ), and the amount or rate of the exempt charge to be imposed.

Ml._fbt As used in this section and in Section 9 of Article II, "tax" means every aA1f levy, charge, or exaction of any kind imposed by the State state law that is not an exempt charge. e1<eept the follo•Ning:
(e) As used in this section. "exempt charge" means only the following:
(1) a el:iarge imposes fer a s1=1eeifie eenefit eonferreEl or pri'+'ilege granteEl aireetly to tl:ie 13ayor tl:iat is not 1=1ro>viaeEl to tl:iose not et:iargeEI, anEI whiel:i aoes not e1<ceeEl tl:ie reasonal3Ie costs to tl:ie State of eonferring the benefit or granting the pri¥ilege to the 1=1a¥OF.
ill {-2+ A reasonable charge irnposeEl for a specific government service or product provided directly to the payor that is not provided to those not charged, and which does not exceed the rnasonable actual costs to the State of providing the service or product to the payor. f.11 ~ A charge in,poseEl for the reasonable regulatory costs to the State incident to issuing licenses and permits, performing investigations, inspections, and audits, enforcing agricultural marketing orders, and the administrative enforcement and adjudication thereof. (3) A levy, charge. or exaction collected from local units of government. health care providers or health care service plans that is primarily used by the State of California for the purposes of increasing reimbursement rates or payments under the Medi-Cal program, and the revenues of which are primarily used to finance the non-federal portion of Medi-Cal medical assistance expenditures. (4) A reasonable charge iR'l13oseEl for entrance to or use of state property, or the purchase. rental, or lease of state property, except charges governed by Section 15 of Article XI. (5} A fine, or penalty, or other monetary el:large including any applicable interest for nonpayment thereot imposed by the judicial branch of government or the State, as a result of a state administrative enforcement agency pursuant to adiudicatorv due process, to punish a violation of law. (6} A levy, charge, assessment, or exaction collected for the promotion of California tourism pursuant to Chapter 1 (commencing with Section 13995) of Part 4.7 of Division 3 of Title 2 of the Government Code. flL~Any tax or exempt charge adopted after January 1, 2022 ~, but prior to the effective date of this act, that was not adopted in compliance with the requirements of this section is void 12 months after the effective date of this act unless the tax or exempt charge is reenacted B'l the begislatuFe anel signea into law ey tl:ie <iio¥ernoF in compliance with the requirements of this section. [gl[.JlJG:} The State bears the burden of proving by a preponEleranee oftl:le clear and convincing evidence that a levy, charge, or other exaction is an exempt charge and not a tax. The State bears the burden of proving by clear and convincing evidence that the amount of the exempt charge is reasonable and that the amount charged does not exceed the actual cost of providing the service or product to the payor. ,tR-a-t tl:ie amouRt is RO n,ore tl:ian neeessary to cover the reasonable costs of the go•.•emn,ental actii,•i:t>,• ane 3 ATTACHMENT A 109
that the manner in •Nhiel.:i these cests are allecated ts a pa·1er bear a fair er reasenable relatienshi13 ts the 13a·1or's b1:1relens on, or benefits reeei11eel from, the go•.ieFRmental actit.iit'( (2) The retention ofrevenue by, or the payment to. a non-governmental entity ofa levv. charge, or exaction of any kind imposed by state law, shall not be a factor in determining whether the levy. charge, or exaction is a tax or exempt charge.
(3) The characterization of a levy, charge, or exaction of any kind as being voluntary, or paid in exchange for a benefit, privilege, allowance, authorization, or asset, shall not be a factor in determining whether the levy, charge, or exaction is a tax or an exempt charge. /4} The use of revenue derived from the levy, charge or exaction shall be a factor in determining whether the levy, charge, or exaction is a tax or exempt charge. (h) As used in this section:
(1) "Actual cost" of providing a service or product means: (i) the minimum amount necessary to reimburse the government for the cost of providing the service or product to the payor, and {ii) where the amount charged is not used by the government for any purpose other than reimbursing that cost. In computing "actual cost" the maximum amount that may be imposed is the actual cost less all other sources of revenue including, but not limited to taxes, other exempt charges, grants, and state or federal funds received to provide such service or product.
(2) "Extend" includes, but is not limited to, doing any of the following with respect to a tax or exempt charge: lengthening its duration. delaying or eliminating its expiration, expanding its application to a new territory or class ofpayor, or expanding the base to which its rate is applied. (3) "Impose" means adopt, enact, reenact, create, establish, collect, increase or extend. (4) "State law" includes, but is not limited to. any state statute, state regulation, state executive order. state resolution, state ruling, state opinion Jetter, or other legal authority or interpretation adopted, enacted. enforced, issued, or implemented by the legislative or executive branches of state government. "State law" does not include actions taken by the Regents of the University of California, Trustees of the California State University, or the Board of Governors of the California Community Colleges.

Section 5. Section 1 of Article XIII C of the California Constitution is amended, to read:

Sec. 1. Definitions. As used in this article:
{a) "Actual cost" of providing a service or product means: (i) the minimum amount necessary to reimburse the government for the cost of providing the service or product to the payor. and {ii) where the amount charged is not used by the government for any purpose other than reimbursing that cost. In computing "actual cost" the maximum amount that may be imposed is the actual cost less all other sources of revenue including, but not limited to taxes. other exempt charges, grants, and state or federal funds received to provide such service or product.
(b) "Extend" includes, but is not limited to. doing any of the following with respect to a tax. exempt charge, or Article XIII D assessment. fee, or charge: lengthening its duration, delaying or eliminating its expiration. expanding its application to a new territory or class of payor, or expanding the base to which its rate is applied.
4 ATTACHMENT A 110
.lfl..W 11General tax" means any tax imposed for general governmental purposes. (d} "Impose" means adopt, enact, reenact, create, establish, collect, increase, or extend. {clJb} "Local government" means any county, city, city and county, including a charter city or county, any special district, or any other local or regional governmental entity, or an elector pursuant to Article fl or the initiative power provided by a charter or statute.
(f) "Local law" includes. but is not limited to, any ordinance, resolution, regulation. ruling, opinion letter, or other legal authority or interpretation adopted, enacted, enforced, issued, or implemented by a local government.
{gl_{t} "Special district" means an agency of the State, formed pursuant to general law or a special act, for the local performance of governmental or proprietary functions with limited geographic boundaries including, but not limited to, school districts and redevelopment agencies. f11L{d} "Special tax" means any tax imposed for specific purposes, including a tax imposed for specific purposes, which is placed into a general fund.
111 i@} As used in this article, and in Section 9 of Article II, "tax" means every aRV-levy, charge, or exaction of any kind, imposed by a local go,;ernmeRt law that is not an exempt charge., exeept tl=le fellowiRg:
(i) As used in this section, "exempt charge" means only the following:
(1) A cl=large imposeel fer a speeifie beAefit eoAferreel or pri,;ilege graAteel eliFeetl')' to tl=le pa1,ior tl=lat is Rot pre1,•ieleel to these Rot ehargea, aA£l which £lees Rot exeeeel tl=le reaseAable costs to tl=le loeal gm,·ernFAeAt of conferriAg the beAefit or graAting tl:1e pri¥ilege.
ill R} A reasonable charge imposes for a specific local government service or product provided directly to the payor that is not provided to those not charged, and which does not exceed the reasoAable actual costs to the local government of providing the service or product. fl1 WA charge im13ose£l for the reasonable regulatory costs to a local government for issuing licenses and permits, performing investigations, inspections, and audits, enforcing agricultural marketing orders, and the administrative enforcement and adjudication thereof.

W {4t A reasonable charge imposeel for entrance to or use of local government property, or the purchase, rental, or lease of local government property.

Ml. fSt A fine, or penalty, or other FAOA@tar,· eharge including any applicable interest for nonpayment thereat imposed by the judicial branch of government or a local government administrative enforcement agency pursuant to adiudicatorv due process, as a res1,1lt of to punish a violation of law. ill -f6t A charge imposed as a condition of property development. No levv, charge, or exaction regulating or related to vehicle miles traveled may be imposed as a condition of property development or occupancy. f.i1 f7t An AssessFAeRts a Rel property relate el fees assessment. fee. or charge imJ;1oseel iA aeeoraanee witl=l the pro¥isio A5 of subject to Article XI 11 D, or an assessment imposed upon a business in a tourism marketing district, a parking and business improvement area, or a property and business improvement district. 5 ATTACHMENT A 111
(7) A charge imposed for a specific health care service provided directly to the payor and that is not provided to those not charged. and which does not exceed the reasonable costs to the local government of providing the health care service. As used in this paragraph, a "health care service" means a service licensed or exempt from licensure by the state pursuant to Chapters 1. 1.3, or 2 of Division 2 of the Health and Safety Code.

The local government bears the b1:1rden of proving by a preponderance of the e .. ·ielence that a lew, charge, or other exaction is not a ta1<, that the amo1:1nt is no more than necessaPJ' to cover the reasonable costs of the go•,ernfflental acti•.«ity anel that tJ:ie manner in which those costs are allocateel to a pa•ror bear a fair or reasonable relationship to the pa•ror's blslrdens on, or bene:fits receiveel from, the go1a1ernmental acfa•ity.

Section 6. Section 2 of Article XIII C of the California Constitution is amended to read:

Sec. 2. Local Government Tax Limitation. Notwithstanding any other provision of this Constitution:
(a) Every levy. charge. or exaction of any kind imposed by local law is either a tax or an exempt charge. All taxes imposed by any local government shall be deemed to be either general taxes or special taxes. Special purpose districts or agencies, including school districts, shall have no power to levy general taxes. (b) No local Jaw go,.·ernment whether proposed by the governing body or by an elector, may impose, extend, or increase any general tax unless and until that tax is submitted to the electorate and approved by a majority vote. A general tax shall not be deemed to have been increased if it is imposed at a rate not higher than the maximum rate so approved. The election required by this subdivision shall be consolidated with a regularly scheduled general election for members of the governing body of the local government, except in cases of emergency declared by a unanimous vote of the governing body. (c) An•r general tax imposed, el<tended, or increaseel, •.-.iitho1:1t •.·oter approval, lay any local go,.·ernment on or after Janlslary 1, 1995, ana prior ta the effecti,.·e date of this article, shall contin1:1e to be imposed only if appro,.·ea b1• a majority vote of the voters voting in an election OR the issye of the in:iposition, whicl::i election sl::iall be l::ield witl::iin t•Ne 1•ears ef the effectii.ie date of this article and in com13liance with slslbdi\·isien (b}. {El) No local law government. whether proposed by the governing body or by an elector. may impose, eMteRd, er increase any special tax unless and until that tax is submitted to the electorate and approved by a two-thirds vote. A special tax shall not be deemed to have been increased if it is imposed at a rate not higher than the maximum rate so approved. {d) The title and summary and ballot label or question required for a measure pursuant to the Elections Code shall. for each measure providing for the imposition of a tax, include:
(1) The type and amount or rate of the tax;
(2) the duration of the tax; and
(3) The use of the revenue derived from the tax. If the proposed tax is a general tax. the phrase "for general government use" shall be required, and no advisory measure may appear on the same ballot that would indicate that the revenue from the general tax will. could. or should be used for a specific purpose. (e) Only the governing body of a local government. other than an elector pursuant to Article II or the initiative power provided by a charter or statute. shall have the authority to impose any exempt charge.

The governing body shall impose an exempt charge by an ordinance specifying the type of exempt charge 6 ATTACHMENT A 112
as provided in Section l(i) and the amount or rate of the exempt charge to be imposed. and passed by the governing body. This subdivision shall not apply to charges specified in paragraph (7) of subdivision (i) of Section 1.
ff) No amendment to a Charter which provides for the imposition, extension, or increase of a tax or exempt charge shall be submitted to or approved by the electors. nor shall any such amendment to a Charter hereafter submitted to or approved by the electors become effective for any purpose. (q) Any tax or exempt charge adopted after January 1, 2022, but prior to the effective date of this act, that was not adopted in compliance with the requirements of this section is void 12 months after the effective date of this act unless the tax or exempt charge is reenacted in compliance with the requirements of this section.
{h)(1) The focal government bears the burden of proving by clear and convincing evidence that a levy, charge or exaction is an exempt charge and not a tax. The local government bears the burden of proving by clear and convincing evidence that the amount of the exempt charge is reasonable and that the amount charged does not exceed the actual cost of providing the service or product to the payor. (2} The retention of revenue by, or the payment to, a non-governmental entity of a levy. charge, or exaction of any kind imposed by a local law, shall not be a factor in determining whether the levy, charge, or exaction is a tax or exempt charge.
(3) The characterization of a levy. charge. or exaction of any kind imposed by a local law as being paid in exchange for a benefit. privilege, allowance, authorization, or asset, shall not be factors in determining whether the levy, charge, or exaction is a tax or an exempt charge. (4) The use of revenue derived from the levy, charge or exaction shall be a factor in determining whether the levy, charge, or exaction is a tax or exempt charge.

Section 7. Section 3 of Article XIII D of the California Constitution is amended, to read:

Sec. 3. Property Taxes, Assessments, Fees and Charges Limited (a) No tax, assessment, fee, 6f charge, or surcharge, including a surcharge based on the value ofpropertv, shall be assessed 13y a Ry ageRC'f upon any parcel of property or upon any person as an incident of property ownership except:
(1) The ad valorem property tax impeseEI p1::1rsYaRt te described in Section 1(a) of Article XIII and Section 1/a) of Article XIII A, and described and enacted pursuant to the voter approval requirement in Section 1/b) Q[Article XII I A.
(2) Any special non-ad valorem tax receiving a two-thirds vote of qualified electors pursuant to Section 4 of Article XIII A, or after receiving a two-thirds vote of those authorized to vote in a community facilities district by the Legislature pursuant to statute as it existed on December 31, 2021. (3) Assessments as provided by this article.
(4) Fees or charges for property related services as provided by this article. 7 ATTACHMENT A 113
(b) For purposes of this article, fees for the provision of electrical or gas service shall not be deemed charges or fees imposed as an incident of property ownership.

Section 8. Sections 1 and 14 of Article XIII are amended to read:

Sec. 1 Unless otherwise provided by this Constitution or the laws of the United States:
(a) All property is taxable and shall be assessed at the same percentage of fair market value. When a value standard other than fair market value is prescribed by this Constitution or by statute authorized by this Constitution, the same percentage shall be applied to determine the assessed value. The value to which the percentage is applied, whether it be the fair market value or not, shall be known for property tax purposes as the full value.
(b) All property so assessed shall be taxed in proportion to its full value. (c) All proceeds from the taxation of property shall be apportioned according to law to the districts within the counties.

Sec. 14. All property taxed by state or local government shall be assessed in the county, city, and district in which it is situated. Notwithstanding any other provision of/aw, such state or local property taxes shall be apportioned according to law to the districts within the counties.

Section 9. General Provisions
A. This Act shall be liberally construed in order to effectuate its purposes.

B. (1) In the event that this initiative measure and another initiative measure or measures relating to state or local requirements for the imposition, adoption, creation, or establishment of taxes, charges, and other revenue measures shall appear on the same statewide election ballot, the other initiative measure or measures shall be deemed to be in conflict with this measure. In the event that this initiative measure receives a greater number of affirmative votes, the provisions of this measure shall prevail in their entirety, and the provisions ofthe other initiative measure or measures shall be null and void. (2) In furtherance of this provision, the voters hereby declare that this measure conflicts with the provisions of the "Housing Affordability and Tax Cut Act of 2022" and "The Tax Cut and Housing Affordability Act," both of which would impose a new state property tax (called a "surcharge") on certain real property, and where the revenue derived from the tax is provided to the State, rather than retained in the county in which the property is situated and for the use of the county and cities and districts within the county, in direct violation of the provisions of this initiative. (3) If this initiative measure is approved by the voters, but superseded in whole or in part by any other conflicting initiative measure approved by the voters at the same election, and such conflicting initiative is later held invalid, this measure shall be self-executing and given full force and effect.

C. The provisions of this Act are severable. If any portion, section, subdivision, paragraph, clause, sentence, phrase, word, or application of this Act is for any reason held to be invalid by a decision of any court of competent jurisdiction, that decision shall not affect the validity of the remaining portions of this Act. The People of the State of California hereby declare that they would have adopted this Act and each and every portion, section, subdivision, paragraph, clause, sentence, phrase, word, and application not 8 ATTACHMENT A 114
declared invalid or unconstitutional without regard to whether any portion of this Act or application thereof would be subsequently declared invalid.

D. If this Act is approved by the voters of the State of California and thereafter subjected to a legal challenge alleging a violation of state or federal law, and both the Governor and Attorney General refuse to defend this Act, then the following actions shall be taken:
(1) Notwithstanding anything to the contrary contained in Chapter 6 of Part 2 of Division 3 ofTitle 2 of the Government Code or any other law, the Attorney General shall appoint independent counsel to faithfully and vigorously defend this Act on behalf of the State of California. (2) Before appointing or thereafter substituting independent counsel, the Attorney General shall exercise due diligence in determining the qualifications of independent counsel and shall obtain written affirmation from independent counsel that independent counsel will faithfully and vigorously defend this Act. The written affirmation shall be made publicly available upon request. (3) A continuous appropriation is hereby made from the General Fund to the Controller, without regard to fiscal years, in an amount necessary to cover the costs of retaining independent counsel to faithfully and vigorously defend this Act on behalf of the State of California. (4) Nothing in this section shall prohibit the proponents of this Act, or a bona fide taxpayers association, from intervening to defend this Act.
9 ATTACHMENT A 115
Stop the Corporate Loopholes Scheme
Deceptive Proposition Allows Major Corporations to Avoid Paying their Fair Share and Evade Enforcement when they Violate Environmental, Health & Safety Laws An association representing California’s wealthiest corporations — including oil, insurance, banks and drug companies — is behind a deceptive proposition aimed for the November 2022 statewide ballot. Their measure would create major new loopholes that allow corporations to avoid paying their fair share for the impacts they have on our communities; while also allowing corporations to evade enforcement when they violate environmental, health, safety and other state and local laws. Here’s why a broad coalition of local governments, labor and public safety leaders, infrastructure advocates, and businesses oppose the Corporate Loophole Scheme:

Gives Wealthy Corporations a Major Loophole to Avoid Paying their Fair Share - Forcing Local Residents and Taxpayers to Pay More • The measure creates new constitutional loopholes that allow corporations to pay far less than their fair share for the impacts they have on our communities, including local infrastructure, our environment, water quality, air quality, and natural resources – shifting the burden and making individual taxpayers pay more.

Allows Corporations to Dodge Enforcement When They Violate Environmental, Health, Public Safety and Other Laws
• The deceptive scheme creates new loopholes that makes it much more difficult for state and local regulators to issue fines and levies on corporations that violate laws intended to protect our environment, public health and safety, and our neighborhoods.

Jeopardizes Vital Local and State Services
• This far-reaching measure puts at risk billions of dollars currently dedicated to critical state and local services.
• It could force cuts to public schools, fire and emergency response, law enforcement, public health, parks, libraries, affordable housing, services to support homeless residents, mental health services and more. • It would also reduce funding for critical infrastructure like streets and roads, public transportation, drinking water, new schools, sanitation, utilities and more.

Opens the Door for Frivolous Lawsuits, Bureaucracy and Red Tape that Will Cost Taxpayers and Hurt Our Communities
• The measure will encourage frivolous lawsuits, bureaucracy and red tape that will cost local taxpayers millions — while significantly delaying and stopping investments in infrastructure and vital services.

ATTACHMENT B 116
Undermines Voter Rights, Transparency, and Accountability • This misleading measure changes our constitution to make it more difficult for local voters to pass measures needed to fund local services and local infrastructure.
• It also includes a hidden provision that would retroactively cancel measures that were passed by local voters — effectively undermining the rights of voters to decide for themselves what their communities need.
• It would limit voter input by prohibiting local advisory measures, where voters provide direction to politicians on how they want their local tax dollars spent.

ATTACHMENT B 117
CaliforniaCityFinance.Com
Fiscal and Program Effects of
Initiative 21-0042A1 on Local Governments
If Initiative 21-0042A1 is placed on the ballot and passed by voters, it will result in:
 Billions of local government fee and charge revenues placed at heightened legal peril. Related public service reductions across virtually every aspect of city, county, special district, and school services especially for transportation, and public facility use.  Hundreds of millions of dollars of annual revenues from dozens of tax and bond measures approved by voters between January 1, 2022 and November 9, 2022 subject to additional voter approval if not in compliance with the initiative.
 Indeterminable legal and administrative burdens and costs on local government from new and more empowered legal challenges, and bureaucratic cost tracking requirements.  The delay and deterrence of municipal annexations and associated impacts on housing and commercial development.
 Service and infrastructure impacts including in fire and emergency response, law enforcement, public health, drinking water, sewer sanitation, parks, libraries, public schools, affordable housing, homelessness prevention and mental health services.

1. Local Government Taxes and Services Threatened
With regard to taxes, Initiative 21-0042A1:
 Prohibits advisory, non-binding measures as to use of tax proceeds on the same ballot. o Voters may be less informed and more likely to vote against measures.  Eliminates the ability of special tax measures proposed by citizen initiative to be enacted by majority voter approval (Upland).
o Because the case law regarding citizen initiative special taxes approved by majority vote (Upland) is so recent, it is unknown how common these sorts of measures might be in the future. This initiative would prohibit such measures after the effective date of the initiative. Any such measures adopted after January 1, 2022 through November 8, 2022 would be void after November 9, 2023.
 Requires that tax measures include a specific duration of time that the tax will be imposed. This seems to require that all tax increases or extensions contain a sunset (end date). o This would require additional tax measures to extend previously approved taxes at additional cost to taxpayers.
 Requires that a tax or bond measure adopted after January 1, 2022 and before the effective date of the initiative (November 9, 2022) that was not adopted in accordance with the measure be readopted in compliance with the measure or will be void twelve months after the effective date of the initiative (November 9, 2023).
o If past election patterns are an indication, dozens of tax and bond measures approving hundreds of millions of annual revenues may not be in compliance and would be subject to reenactment.

Most will be taxes without a specific end date. Because there is no regularly scheduled election within the 12 months following the effective date of the initiative, measures not in compliance would need to be placed on a special election ballot for approval before November 9, 2023 or the tax will be void after that date. General tax measures would require declaration of emergency and unanimous vote of the governing board.
2217 Isle Royale Lane • Davis, CA • 95616-6616
Phone: 530.758.3952 • Fax: 530.758.3952
Rev. January 7, 2022
ATTACHMENT C 118
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CaliforniaCityFinance.com
 Requires voter approval to expand an existing tax to new territory (annexations). This would require additional tax measures and would deter annexations and land development in cities. o If a tax is "extended" to an annexed area without a vote after January 1, 2022, it will be void 12 months later until brought into compliance. Because there is no regularly scheduled election within the 12 months following the effective date of the initiative, such extensions for general taxes would, under current law, each require unanimous vote of the agency board to be placed on a special election ballot or would be void after November 9, 2023.

1.a. Number of Measures and Value of Local Taxes at Risk1 In 2020, voters in California approved 293 local tax and bond measures for cities, counties, special districts and schools (95 in March and 198 in November). The approved measures enacted $3.85 billion in new annual taxes including $1.3 billion for cities, $302 million for counties, $208 million for special districts (fire, wastewater, open space and transit districts), and $2.037 billion for schools (including for school bonds).

Most tax measures go to the ballot during a presidential or gubernatorial primary or general election in an even year. However, some tax measures are decided at other times. During 2019, there were 45 approved tax and bond measures (24 city, 14 special district, 7 school) adopting $154.0 million in new annual taxes ($124.0 million city, $10.5 million special district and $19.2 million school).

Most tax and bond measures comply with the new rules in Initiative 21-0042Amdt#1 except:
 Dozens of taxes would require end dates. This would require additional measures in future years to extend the taxes further. Very few extensions of existing local taxes fail.  Majority vote general tax measures could not be accompanied on the same ballot with an advisory, non-binding measure as to use of tax proceeds.  Special taxes placed on the ballot via citizen initiative would require two-thirds voter approval.

Bond measures have fixed terms. Historically, about 20 percent of other tax measures have included specific durations (i.e. sunsets). Advisory measures as to use of revenues are uncommon. I do not expect the provisions of 21-0042A1 to have any substantial effect on passage rates. However, some 2022 approved measures would likely have to put back on the ballot.

Based on history, a reasonable estimate of the annualized tax revenues estimated to be approved by 1 Source: Compilation and summary of data from County elections offices.

ATTACHMENT C 119
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CaliforniaCityFinance.com
voters in 2022 and placed at risk by this initiative is at least $1.5 billion, including $1.0 billion from cities and $500 million from counties and special districts. 2 1.b. Additional Costs and Public Service Effects of the Tax Provisions In addition to service delays and disruption due to new tax revenues placed at greater legal risk, there will be substantial additional costs for legal defense. The deterrence of taxes for annexations will delay and deter municipal annexations.

2. “Exempt Charges” (fees and charges that are not taxes) and Services Threatened With regard to fees and charges adopted after January 1, 2022, Initiative 21-0042A1:
 Subjects new fees and charges for a product or service to a new "actual cost” test defined as “(i) the minimum amount necessary to reimburse the government for the cost of providing the service to the payor, and (ii) where the amount charged is not used by the government for any purpose other than reimbursing that cost. In addition, subjects these same charges to a new, undefined, “reasonable” standard.
 Subjects fees and charges for entrance to local government property; and rental and sale of local government property to a new, undefined, “reasonable” test.  Subjects a challenged fee or charge to new, higher burdens of proof if legally challenged.  Prohibits a levy, charge or exaction regulating or related to vehicle miles traveled, imposed as a condition of property development or occupancy.

2.a. Value on New Local Government Fees and Charges at Risk3 Virtually every city, county, and special district must regularly (e.g., annually) adopt increases to fee rates and charges and revise rate schedules to accommodate new users and activities. Most of these would be subject to new standards and limitations under threat of legal challenge. Based on the current volume of fees and charges imposed by local agencies and increases in those fees simply to accommodate inflation, the amount of local government fee and charge revenue placed at risk is about $1 billion per year including those adopted since January 1, 2022. Of this $1 billion, about $570 million is for special districts, $450 million is cities, and $260 million is counties.4
Major examples of affected fees and charges are:

1. Nuisance abatement charges - such as for weed, rubbish and general nuisance abatement to fund community safety, code enforcement, and neighborhood cleanup programs.

2. Commercial franchise fees.

3. Emergency response fees - such as in connection with DUI.

4. Advanced Life Support (ALS) transport charges.

5. Document processing and duplication fees.

6. Transit fees, tolls, parking fees, public airport and harbor use fees.

7. Facility use charges, fees for parks and recreation services, garbage disposal tipping fees.

In addition to fees and charges, the measure puts fines and penalties assessed for the violation of state and 2 This does not include citizen initiative special tax approved by majority but not two-thirds. Because this approach is new, the number of these measures and amount of revenue involved cannot be estimated. 3 Source: California State Controller Annual Reports of Financial Transactions concerning cities, counties and special districts, summarized with an assumed growth due to fee rate increases (not population) of 2 percent annually. 4 School fees are also affected but the amount is negligible by comparison.

ATTACHMENT C 120
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CaliforniaCityFinance.com
local law at risk, making them taxes subject to voter approval under certain circumstances.

2.b. Additional Costs and Public Service Effects of the Fee/Charge Provisions In addition to service delays and disruptions due to fee and charge revenues placed at greater legal risk, there would be substantial additional costs for legal defense. The risk to fees and charges will make infrastructure financing more difficult and will deter new residential and commercial development. ***********
mc
ATTACHMENT C 121
The Taxpayer Protection and Government Accountability Act Initiative No. 21-0042A1
January 21, 2022
Summary: The measure limits the voters’ input, adopts new and stricter rules for raising taxes and fees, and makes it more difficult to hold state and local law violators accountable.

Limiting Voter Authority and Accountability
• Limits voter input. Prohibits local voters from providing direction on how local tax dollars should be spent by prohibiting local advisory measures. • Invalidates Upland decision that allows majority of local voters to pass special taxes. Taxes proposed by the Initiative are subject to the same rules as taxes placed on the ballot by a city council. All measures passed between January 2022 and November 2022 would be invalidated unless reenacted within 12 months.

Restricting Local Fee Authority to Provide Local Services • Franchise fees. Sets new standard for fees and charges paid for the use of local and state government property. The standard may significantly restrict the amount oil companies, utilities, gas companies, railroads, garbage companies, cable companies, and other corporations pay for the use of local public property. Rental and sale of local government property must be “reasonable” which must be proved by “clear and convincing evidence.”
• Except for licensing and other regulatory fees, fees and charges may not exceed the “actual cost” of providing the product or service for which the fee is charged. “Actual cost” is the “minimum amount necessary.” The burden to prove the fee or charge does not exceed “actual cost” is changed to “clear and convincing” evidence.

Restricting Authority of State and Local Governments to Issue Fines and Penalties for Violations of Law.
• Requires voter approval of fines, penalties, and levies for corporations and property owners that violate state and local laws unless a new, undefined adjudicatory process is used to impose the fines and penalties.

ATTACHMENT D 122
Restricting Local Tax Authority to Provide Local Services • Expanding existing taxes (e.g., UUT, use tax, TOT) to new territory (e.g., annexation) or expanding the base (e.g., new utility service) requires voter approval.
• City charters may not be amended to include a tax or fee. • New taxes can be imposed only for a specific time period. • Taxes adopted after January 1, 2022, that do not comply with the new rules, are void unless reenacted.
• All state taxes require majority voter approval.
• Prohibits any surcharge on property tax rate and allocation of property tax to state.

Other Changes
• No fee or charge or exaction regulating vehicle miles traveled can be imposed as a condition of property development or occupancy.

ATTACHMENT D 123
Resolution No.

STOCKTON CITY COUNCIL
RESOLUTION TO OPPOSE INITIATIVE 21-0042A1- THE TAXPAYER PROTECTION

AND GOVERNMENT ACCOUNTABILITY ACT
The Taxpayer Protection and Government Accountability Act - Initiative No. 21- 0042A1 (Measure) limits the voters’ input, adopts new and stricter rules for raising taxes and fees, and makes it more difficult to hold state and local law violators accountable; and The Measure makes it much more difficult for state and local regulators to issue fines and levies on corporations that violate laws intended to protect our environment, public health and safety, and our neighborhoods; and
The Measure puts billions of dollars currently dedicated to state and local services at risk, and could force cuts to public schools, fire and emergency response, law enforcement, public health, parks, libraries, affordable housing, services to support homeless residents, mental health services, and more; and The Measure would reduce funding for critical infrastructure like streets and roads, public transportation, drinking water, new schools, sanitation, and utilities; now, therefore,

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

1. The City is authorized to join the NO on Initiative 21-0042A1 coalition, a growing coalition of public safety, labor, local government, infrastructure advocates, and other organizations throughout the state.

2. The City Manager is authorized to take all necessary and appropriate steps to carry out the purpose and intent of this Resolution.

PASSED, APPROVED, and ADOPTED March 22, 2022 .

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

ELIZA R. GARZA, CMC
City Clerk of the City of Stockton
124
City of Stockton
Legislation Text
File #: 21-0778, Version: 1
APPROVE AN AGREEMENT FOR PROFESSIONAL SERVICES WITH PLACEWORKS, INC. TO

ESTABLISH A NEW HOUSING ACTION PLAN AND COMPREHENSIVE UPDATE TO THE CITY

OF STOCKTON'S HOUSING ELEMENT

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

1. Award a three-year Professional Services Agreement with PlaceWorks, Inc., of Berkeley, CA in the amount of $599,786 for consulting services to establish a new Housing Action Plan and Comprehensive Update to the City's Housing Element; and

2. Approve finding pursuant to Stockton Municipal Code 3.68.070 in support of an exception to the competitive bidding process; and

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

Summary
In 2017, the California Legislature declared the lack of housing in the State a crisis and began approving legislation to increase housing production across the State. In addition, the Stockton City Council directed Staff to investigate ways to reduce barriers to affordable housing production. Staff proposes two complementary documents: a Housing Action Plan (HAP) and updating the existing Housing Element by prioritizing planning activities that accelerate housing production. The City adopted its last Housing Affordable Strategy in 2008 and the 2015-2023 Housing Element in 2014.

Since the adoption of these documents, there have been many changes to state housing law, the housing market, and funding availability.

Housing Action Plan
The Housing Action Plan (HAP) will be process and resource-oriented. It will not focus on creating additional zoning standards or policies, which are being developed under other Community Development Department efforts. The three main objectives of the HAP include inventory and identifying existing standards and processes for all types of housing, strategic planning by identifying priority housing sites, and providing recommendations on actions that could further housing production. Those recommendations could include code and policy amendments, partnerships, grant funding, and other activities to consider for the City and housing partners. 6th Cycle Housing Element
The Housing Element update is required by state law for the 2023-2031 eight-year housing cycle, which is the sixth Housing Element to be developed. The Housing Element includes updated City of Stockton Page 1 of 5 Printed on 3/16/2022
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File #: 21-0778, Version: 1
Stockton demographic and growth trends, a new Regional Housing Needs Allocation (RHNA) housing capacity analysis and must be certified by the California Department of Housing and Community Development (HCD) after City Council adoption. The Housing Element is policy-oriented, intending to direct Staff and the City Council on making a decision that impacts housing supply for all income groups.

A Request for Proposals (RFP) was issued on September 9, 2021 (PUR 21-016) to solicit proposals for consulting services to prepare a Housing Action Plan (HAP) and a comprehensive Housing Element update. After four weeks, the RFP closed on October 7, 2021, with the City receiving two (2) proposals from PlaceWorks, Inc. and Harris & Associates. A Selection Committee comprised of staff representatives from the Community Development and Economic Development Departments reviewed the proposals and interviewed the consultant teams on November 4, 2021. After a thorough review, the Selection Committee concluded that PlaceWorks, Inc. is qualified for the project.

PlaceWorks, Inc. will work with internal and external stakeholders, the Planning Commission, the Council Legislative/Environmental Committee, industry representatives, and the general public to establish these two documents and complete the entire effort by the end of the 2023 calendar year.

Completion by the end of 2023 is needed for Staff to request reimbursement through the accepted Local Early Action Planning (LEAP) housing grant. Staff has received authorization from the grant administrators (HCD) to reimburse the entire $599,786 cost of the HAP and Housing Element.

Staff recommends that Council approve and authorize the City Manager to execute a three-year Professional Service Agreement with PlaceWorks, Inc. for a not-to-exceed contract amount of $599,786.

DISCUSSION
Background
In 2017, the California Legislature declared the lack of housing in the State a crisis and began approving legislation to increase housing production across the State. In addition, the Stockton City Council directed Staff to investigate ways to reduce barriers to affordable housing production. Staff proposes two complementary documents: a Housing Action Plan (HAP) and updating the existing Housing Element by prioritizing planning activities that accelerate housing production. The City adopted its last Housing Affordable Strategy in 2008 and the 2015-2023 Housing Element in 2014.

Since the adoption of these documents, there have been many changes to state housing law, the housing market, and funding availability.

While the City has adopted many affordable housing and homelessness efforts, the City has not updated its Housing Strategic Plan since 2008. The adoption of the HAP will address new housing laws and include analysis and discussion of the current housing market and funding availability.

The City relies on the Stockton Housing Element and General Plan policies to dictate housing standards, partnerships, and funding availability. Under Government Code Section 65302, the Housing Element is one of seven mandated elements of a General Plan. The six other required elements include land use, circulation, open space, conservation, safety, and noise. California law mandates that local governments must adequately plan to meet the existing and projected housing needs of all economic segments of the community (Government Code §65580). Unlike other City of Stockton Page 2 of 5 Printed on 3/16/2022
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elements of the General Plan, the Housing Element must be periodically updated and submitted to HCD for review and ultimate certification. This certification ensures a City or County is making incremental progress towards meeting their existing and projected housing needs, including their share of the regional housing need. The City's current 2015-2023 Housing Element will expire in December 2023.

Each Housing Element update process begins with HCD allocating each region's share of the statewide housing need to the appropriate regional Council of Governments based on Department of Finance population projections and regional population forecasts used in preparing regional transportation plans. HCD further breaks down the housing need into four income levels, including very low, low, moderate, and above moderate. This division ensures adequate housing that is affordable for all income levels in the region.

The San Joaquin Council of Governments (SJCOG) receives the housing need allocation from HCD for San Joaquin County. SJCOG then prepares a Regional Housing Need Plan (RHNP) that allocates the region's share of the statewide need to the cities and county. The RHNP is required to promote the following objectives:
· Increase the housing supply and the mix of housing types, tenure, and affordability in all cities and counties within the region in an equitable manner;
· Promote infill development and socioeconomic equity, the protection of environmental and agricultural resources, and the encouragement of efficient development patterns; and · Promote an improved intraregional relationship between jobs and housing.

The Regional Housing Needs Allocation (RHNA) is a minimum projection of additional housing units needed to accommodate projected household growth of all income levels. For the 2014 - 2022 planning period, SJCOG allocated approximately 40,000 new housing units from HCD to plan countywide. Stockton's new housing unit allocation consists of nearly 11,824 new housing units (or 29%) of the total new housing units countywide.

Present Situation
The City intends to use the Local Early Action Planning (LEAP) housing grant to fund this project.

This grant will reimburse City costs associated with the HAP and Housing Element update. For the City to be compensated for this project, work must be completed by the end of 2023. To take full advantage of these grant funds, staff recommends initiating HAP preparation and Housing Element update as soon as possible.

The Housing Action Plan (HAP) will be process and resource-oriented. It will not focus on creating additional zoning standards or policies, which are being developed under other Community Development Department efforts. Rather, it will analyze and make recommendations to current housing policy in coordination with the Economic Development Department. The HAP intends to:
· Create a "one-stop-shop" for all housing-related processes, standards, policies, regional partners, and resources (funding).
· Review and highlight existing standards and processes for existing emergency housing (i.e., homeless), supportive and transitional housing, in addition to permanent housing for all City of Stockton Page 3 of 5 Printed on 3/16/2022
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income groups, programs and partnerships.
· Conduct land inventories to determine vacant and underutilized land and buildings for new housing.
· Include a displacement analysis for policy consideration. · Establish catalytic housing "priority" sites for focus partnerships and resources. · Identify partnerships and funding available for future housing development. · Further implement Envision 2040 General Plan and Housing Element policies. · Provide recommendations on policy and standard amendments included in the Development Code Overhaul and the Housing Element Update.

A Request for Proposals (RFP) was issued on September 9, 2021 (PUR 21-016) to solicit proposals for consulting services to prepare a Housing Action Plan (HAP) and a comprehensive Housing Element update. Since many cities are experiencing procurement issues due to consultant staffing shortages caused by state-wide grant-funded efforts, upcoming grant expenditure deadlines, and other pending commitments (such as Housing Element updates), staff conducted a proactive procurement procedure with RFPs sent to over 50 qualified firms. After four weeks, the RFP closed on October 7, 2021, with the City receiving two (2) proposals from PlaceWorks, Inc., and Harris & Associates.

A Selection Committee comprised of staff representatives from the Community Development and Economic Development Departments reviewed the proposals and interviewed the consultant teams on November 4, 2021. The Selection Committee met after concluding the consultant interview and weighted the following factors:
· Relevant project experience
· Understanding of scope and deliverables
· Project staff expertise
· Project work plan and management approach
· Ability to meet schedule and budget commitments; and
The Selection Committee also conducted follow-up meetings with PlaceWorks, Inc. for scope and cost and conducted reference checks (Attachment A). The Selection Committee concluded that PlaceWorks, Inc. is qualified for the project based on the following reasons:
· The consultant firm has a strong history with the City in helping prepare the award-winning 2040 Stockton General Plan and the "Series" map amendments for General Plan consistency. · The consultant has identified subconsultants with over 100 years combined experience who are familiar with the region and with whom the City has successfully worked previously; · The consultant was successful in other similar housing endeavors, including Housing Element updates through the state, housing action and code updates, and the monitoring of housing funds;
· The proposed costs are consistent with efforts in other cities, our FY 2021-22 Annual Budget, and the housing grant applications (SB2, LEAP, REAP); and · Delaying the HAP and Housing Element would lessen the chance of receiving cost reimbursement from the State due to the reimbursement deadline of 2023 proposed by the State.

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Based on this information, staff recommends that Council adopt a resolution authorizing the City Manager to execute a Professional Services Contract with PlaceWorks, Inc. for $599,786 for the Housing Action Plan (HAP) and Housing Element Update. Exhibit 1 of the proposed Resolution describes the Professional Service Contract in detail.

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 tasks outlined in the hearing report.

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.

FINANCIAL SUMMARY
The State of California Department of Housing and Community Development (HCD) has awarded a non-competitive Local Early Action Planning (LEAP) grant to the City in the total reimbursable amount of $750,000. The LEAP grant has provided for a sufficient budget to be available to fully fund this contract in Community Development’s Reimbursable Grant Accounts. The efforts this contract would support are fully eligible for LEAP grant reimbursement.

Attachment A -PlaceWorks, Inc. Proposed Scope of Work
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Work Scope
TASK 0 – PROJECT KICK-OFF MEETING AND PROJECT MANAGEMENT Task 0.1 Project Kick-off
Contractor shall communicate with City staff via phone and email throughout the project. Contractor shall prepare for and attend a virtual kick-off meeting with the City to exchange information and initiate work. At the meeting Contractor shall:
 Determine staff contact protocol.
 Review and finalize the scope of work and schedule.
 Review Housing Element legal requirements and California Department of Housing and Community Development (HCD) practices.
 Identify stakeholders.
 Provide a list of data needs.

Task 0.1 Deliverables:
 Kickoff meeting agenda, data needs list, list of stakeholders, and meeting minutes (electronic copies).  Agenda and notes for subsequent calls with staff (electronic copies).

Task 0.2 Project Management and Coordination
Contractor shall communicate with City staff via phone and email throughout the project. In addition, Contractors’ project team shall:
1) Provide monthly email progress reports to the City
2) Lead Zoom check-in discussions once a month with one or two appropriate team members. 3) Provide an Internet-based folder for all project materials accessible to the City and consultants. 4) Reallocate any remaining funds to other tasks within the scope when tasks are completed under budget. 5) Send all draft documents through quality control in advance of submitting to the City for review.

Task 0.2 Deliverables:
− Monthly progress report accompanying the invoice.
− Project discussion once a month via Zoom (assumed 10 check-in meetings).

TASK 1 - LAND INVENTORY
Contractor shall work with the City to assess the availability of land allowing residential development in the City and as a subset of the list of suitable sites, a list of Housing Priority Sites will be developed by the Contractor. This analysis will be used during Task 2, Housing Action Plan, and in Task 3 as part of the Housing Element Update.

Task 1.1 Draft RHNA Land Inventory
The City’s current Regional Housing Needs Allocation (RHNA) assigned for the 2015-2023 time period is 11,824. San Joaquin County Council of Governments (SJCOG) is currently working with the cities in their region on the draft RHNA for the 2023- 2031 planning period. Once the RHNA for the 2023-2031 timeframe is available, Contractor shall analyze the City’s ability to Attachment A - Proposed Scope of Work 130
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address those numbers during the eight-year timeframe of the next Housing Element. We will use the current vacant and underutilized sites inventory from the Housing Element and work with City staff to determine which sites are still available and meet HCD’s land inventory criteria. We will then work with City staff to determine if additional sites are needed to meet the RHNA and to ensure the City does not fall into a no-net-loss situation.

Contractor realizes that identifying adequate sites can be a large undertaking. Contractor shall use the current sites inventory as a starting point to determine which sites are still viable RHNA sites based on new state law requirements, including, but not limited to, the following:
 Additional analysis for sites smaller than one-half acre, larger than 10 acres  Additional analysis for underutilized, nonvacant sites  Identify sites included in the past housing element cycles that may require changes to zoning to continue listing in the Housing Element sites inventory
 Identify if sites are publicly owned
 Indicate whether a site has available or planned and accessible infrastructure It is not currently anticipated that rezoning will be needed to meet the RHNA. If rezoning is needed Contractor shall work with the City to analyze sites that would be suitable for residential development if their zoning was changed.

For this task, Contractor shall:
 Incorporate the Regional Housing Needs Allocation prepared by SJCOG for the 2023-2031 cycle.  Document potential sites. Contractor shall prepare an inventory, map, and analysis clearly illustrating Stockton’s capacity to accommodate the new RHNA. In keeping with state law, Contractor shall document the realistic development capacity of each site and will prepare a map showing all identified sites.  Investigate alternative RHNA credits. This includes analyzing the capacity for alternative RHNA credits for accessory dwelling units, guest quarters, preservation of existing at-risk affordable housing projects, and other similar, nontraditional RHNA credit opportunities.
 Ensure sites affirmatively further fair housing. Contractor shall work with City staff to determine if the sites identified in the inventory are located throughout the community in a manner that affirmatively furthers fair housing. The analysis done under Task 1 will be a preliminary assessment of whether the sites are consistent with state fair housing law. The full fair housing assessment will be conducted as part of Task 3.

Contractor shall complete an analysis of nonvacant sites to address a portion of the RHNA. As part of this analysis, Contractor shall analyze the realistic development potential within the planning period by considering the extent that a nonvacant site’s existing use impedes additional residential development, the jurisdiction's past experience converting existing uses to higherdensity residential development, market trends and conditions, and regulatory or other incentives or standards that encourage additional housing development on any nonvacant sites.

Contractor shall work to determine if parcels included in the inventory have sufficient water, sewer, and dry utilities (electricity, internet) supply available and accessible to support housing development. Contractor shall review existing general plan programs or other mandatory programs or plans to secure sufficient water, sewer, and dry utilities supply to support housing development on the site. The analysis shall include sufficient detail to determine whether the service levels of water delivery/treatment systems and sewer treatment facilities are sufficient and have capacity to accommodate development on all identified sites in order to accommodate the RHNA.

Task 1.1 Deliverables:
− Excel workbook with Draft RHNA land inventory and PDF of workbook.

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Task 1.2 Conduct Stakeholder Outreach
Contractor shall conduct stakeholder outreach to receive input on the potential RHNA Land Inventory. After preparing a preliminary update to the existing Housing Element land inventory and adding additional suitable parcels, Contractor shall hold two (2) workshops to receive input about the potential list of sites. One workshop shall be virtual and one in-person with the same content presented. Maps or other tools shall be decided on with City staff to facilitate the presentation of the draft land inventory.

Task 1.2 Deliverables:
− Attendance at one virtual workshop and one in-person workshop. Contractor shall have a Spanish-speaking staff person attend the workshops to translate if desired by the City. − Promotional flyer and announcements (in English and Spanish) − PowerPoint presentation (PowerPoint can be translated into Spanish for posting on the City website if desired) − Other materials, including maps or other suitable materials for the in-person workshop − Summary notes incorporated into the Housing Element
Task 1.3 Final RHNA Land Inventory
Based on feedback received from City staff and the public, Contractor shall revise the RHNA Land Inventory. The final list of sites that is suitable to meet the RHNA will need to be arrived at while considering and addressing the comments received.

Task 1.3 Deliverables:
− Revised Excel workbook with Final RHNA land inventory and PDF of workbook.

Task 1.4 Housing Priority Site Analysis
A subset of the RHNA Land Inventory sites shall be designated Housing Priority Sites and analyzed further by Contractor as part of the Housing Action Plan in Task 2. Contractor shall use the existing Housing Priority Site list the City has created as a starting point. Housing priority sites shall be sites that are best candidates for a variety of housing development during the Housing Element planning period, including for affordable housing. These will also be sites that can serve as a catalyst for economic and neighborhood-serving improvements. The list of sites identified by Contractor shall exceed the ultimate number the City would like to arrive at for the list of Housing Priority Sites so that further outreach and review can refine the list to reach a final list of Housing Priority Sites.

Task 1.4 Deliverables:
− Draft subset of sites from the Final RHNA land inventory (Excel workbook)that are proposed to be Housing Priority Sites.

Task 1.5 Identify Partnerships
Contractor shall work with the City to reach out to owners of the Housing Priority Sites identified on a draft list that are not owned by the government to explore their interest in housing development and potential partnerships. A partnership would increase the attractiveness of the site for development in the near-term and establish a working relationship to explore further possibilities for the site as part of the Housing Action Plan under Task 2.

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Task 1.5 Deliverables:
− Contractor shall assist the City with mailers, emails, and phone calls to the Draft Housing Priority Sites List property owners. If requested by the property owners, Contractor shall hold a meeting with the property owner to discuss their interest in residential development and working further with the City to position the site as a development-ready location.

Task 1.6 Final Housing Priority Sites
Based on feedback received from City staff and property owners, Contractor shall revise the Housing Priority Sites list. Next steps to develop information and analyze these sites will occur in Task 2 as part of the Housing Action Plan.

Task 1.6 Deliverables:
− Final subset of sites from the Final RHNA land inventory (Excel workbook)that are proposed to be Housing Priority Sites.

TASK 2 – HOUSING ACTION PLAN
Contractor shall prepare a Housing Action Plan (HAP). HAP shall serve as a toolkit that provides the City with an overarching strategy document to implement housing policies, improve existing policies, develop and implement new policies pertaining to increased housing production, housing standards, best practices, and means to administer the programs and efforts within a set timeframe. The HAP “toolkit” shall encompass existing housing plans and policy objectives to increase overall housing production in the City of Stockton. The toolkit shall be based on an assessment and determination of housing needs by type (emergency, supportive, permanent) and by income level (very low-, low-, moderate-, and above moderate-income). The HAP toolkit shall identify areas that allow each housing type, identify priority housing sites for catalytic projects, identify a possible list of housing partnerships and funding, based on site-specific and regional market analysis. The end product of this task shall be written and structured to be read and understood by the broad public, City staff, elected and appointed officials, local community-based organizations, housing developers, and regional partners. To accomplish these objectives, the Contractor will complete the following sub-tasks.

Task 2.1 Existing Inventory and Assessment
As a first step in developing the HAP, Contractor shall compile a comprehensive inventory of the existing housing policies and available background information. Following is a description of sub-tasks.

2.1.1 Review Plans, Reports, Studies, other Relevant Documentation City staff shall provide, and Contractor shall review, copies of relevant plans, reports, studies, and other relevant documentation of housing conditions, goals, and objectives in Stockton. This shall include, but shall not be limited to, background information coming out of the parallel Housing Element Update process, as well as existing policies, plans, and studies, including the City’s HUD Consolidated Plan and Analysis of Impediments to Fair Housing.

2.1.2 Review Gaps in Policy Recommendations
After gathering and reviewing the relevant background information, Contractor shall prepare a summary of the City’s existing housing policy, organized by type of housing and income level addressed and will highlight any gaps in housing policy for housing types and/or income levels that are not addressed in current policy. Contractor shall conduct interviews as part of Task Attachment A - Proposed Scope of Work 133
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2.1.7 to help to identify existing gaps in affordable housing policy. Once this task is complete Contractor will meet with the City about any identified gaps and whether any of them could be addressed by the City in a near-term timeframe.

2.1.3 Equity and Anti-Displacement Policies, Strategies, and Best Practices The Contractor will summarize the City’s current equity and anti-displacement policy structure with a goal of identifying gaps.

The analysis will include a brief review of best practices implemented in other jurisdictions that align with the issues identified in Stockton through prior research commissioned by the City. Contractor shall conduct interviews as part of Task 2.1.7 to help to identify existing gaps in the City’s housing policy pertaining to equity and anti-displacement. Once this task is complete Contractor will meet with the City about any identified gaps and whether any of them could be addressed by the City in a nearterm timeframe.

2.1.4 Prepare Overview of Existing Plans
From the Task 2.1.2 summary of existing housing policies, Contractor shall prepare a concise overview of the existing policies and programs and the implementation tools that the City currently uses to achieve stated goals and objectives. Contractor shall request information from City staff regarding the achievements or outcomes from the existing policies (including implementation and results of the existing Housing Element).

2.1.5 Review and Prepare Overview of Barriers to Housing Production Contractor shall prepare an overview of barriers to housing production in Stockton. Interviews conducted as part of Task

2.1.7 shall help to identify real or perceived barriers to local housing production. Based on feedback from key informants (as identified in Task 2.1.7) regarding the perceived barriers to housing production that the City may be able to influence, Contractor shall conduct follow-up research to try to verify the issues and identify potential solutions that could be incorporated into the HAP. This information may inform the subsequent preparation of the assessment of governmental and nongovernmental constraints to housing in the Housing Element Update process that will follow.

2.1.6 Inventory of Specialty Tools/Incentives
To begin the process of thinking about tools that could be utilized in Stockton to help facilitate production of housing of different types to serve different household income levels, Contractorwill compile an inventory of different tools and incentives that have been used in other communities. This inventory will include a brief description of each tool, along with pertinent information about the type and/or income level of housing that they can assist, any special requirements (e.g., voter approval, adoption of plans, other local governmental actions) for use in Stockton, as well as identification of potential funding sources and/or other resources needed for implementation. Examples of the types of tools/incentives to be considered include transfer of development rights, tax increment financing/EIFDs/CRIAs, land trusts, public private partnerships, use of publicly owned land, etc. Interviews to be conducted as part of Task 2.1.7 will help to inform this task.

2.1.7 Review and Prepare Overview of Existing Incentives Contractor will review and prepare an overview of the City of Stockton’s existing incentives and tools for facilitating housing production. This will identify the tools that the City already has in its toolkit to help increase housing production. Comparing this information with the information presented in Task 2.1.5 will help to identify gaps in the City’s toolbox and ideas for new tools that the City could consider adding to address specific needs that the study identifies.

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2.1.8 Conduct Interviews
To support the identification of housing needs, constraints, effectiveness of policies and programs, and possible new incentives or tools to add, Contractor will conduct interviews with up to 12 key informants who are knowledgeable about local housing needs; the effectiveness of existing policies, programs, and incentives; and potential new tools or resources that may be needed to achieve local goals. These may include for-profit developers, nonprofit housing developers, landholders, social service agencies, CBOs, and other relevant stakeholders to be identified in consultation with City staff.

Task 2.2 Draft Housing Action Plan
Contractor will synthesize the information generated in Task 2.1, Existing Inventory and Assessment, to prepare a Draft HAP.

Following are the specific sub-tasks that the consultant team will complete.

2.2.1 Review and Provide Existing Context
Contractor will prepare a brief Market Conditions and Demographics section as a preface to the HAP. The purpose of this information will be to set the context for the HAP, highlighting key pieces of information, such as the existing affordability gaps in the local housing market (e.g., which income groups are unable to afford market-rate housing).

2.2.2 Include Various Types/Tiers of Housing
Building on the work in Task 2.2.1, Contractor will also include in the Market and Demographics section an identification of specific socioeconomic groups that are under-served (e.g., under-served needs by housing type), including:
1- Emergency Housing (homeless)
2- Supportive Housing (state licensing required)
3- Permanent
a. By Income
b. By Type (i.e., density, mass, etc)
Contractor’s research on this topic can serve as a starting point for the Housing Needs Assessment/Assessment of Fair Housing that will be prepared as part of the Housing Element Update process. The findings from this task will help to determine the types of sites that should be identified as catalyst sites for further study in Task 2.2.3, based on the magnitude of unmet needs in various categories that are identified and the site suitability criteria associated with different housing types. (E.g., different types of sites and locations are needed for emergency shelters versus for market rate permanent housing.) In addition to the needs for affordable housing to be addressed in Task 2.2.1, to the extent possible, Contractor will also identify specific housing niches that present opportunities for the City to expand housing production, including specialty types such as transit-oriented development (TOD) and strengthening of the City's Missing Middle housing toolkit.

2.2.3 Homelessness Resource Inventory
Update and summarize the current inventory of resources to assist persons experiencing homelessness as documented in the Consolidated Plan and associated Comprehensive Annual Performance Reports, as well as any relevant documents maintained by the Continuum of Care (CoC). Contractor shall conduct interviews as part of Task 2.1.7 to help to identify existing gaps in service. Once this task is complete Contractor will meet with the City about any identified gaps and whether any of them could be addressed by the City in a near-term timeframe.

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2.2.4 Case Studies, Pro Formas, and Preplanning Activities for Catalyst Sites In collaboration with City staff, Contractor will take the lead in preparing a section of the HAP that will focus on potential housing projects on up to 20 catalyst housing sites, drawing from the Sites Inventory to be completed in Task 1. The budget for this task assumes that the Sites Inventory task will provide basic site information, such as APN, existing zoning and general plan designation, and existing land uses. Contractor and City staff will collaborate to review and refine the Sites Inventory list to a maximum of 20 and that City staff and Contractor will further collaborate to identify potential zoning and General Plan designation changes and targeted residential development density if not already identified in the Sites Inventory. City staff will provide any available information regarding the availability of utilities to serve the targeted development type, presence of any site constraints. Contractor will conduct limited additional assessment of each site to ascertain key factors such as existing site conditions, neighborhood context, and other factors relevant to the potential future development with the targeted housing type. For each site, Contractor will preliminarily identify a potential project type that would both address a specific segment of identified local housing needs and also be compatible with the site’s locational characteristics, site conditions, and development targeted in the Housing Element Sites Inventory. Contractor will then provide a pro-forma financial feasibility analysis that is based on one of up to five development prototypes (to be defined in consultation with City staff), modified to fit the size of the specific catalyst site being analyzed. The pro-forma analysis will identify the financial feasibility of the targeted development type and will identify any funding gap that may need to be addressed to achieve financial feasibility. In addition, for each catalyst site, Contractor will briefly outline a set of high-level “next steps” towards housing development. This will include necessary actions such as rezone/General Plan amendments, California Environmental Quality Act (CEQA) review, infrastructure evaluations, site remediation investigations, and other site-specific actions that would need to be undertaken to pre-plan and prepare shovel-ready housing sites. Depending on the site ownership and the type of development envisioned, these next steps may include actions such as issuing RFPs for City-owned properties, conducting outreach to owners of privately-owned sites, etc.

2.2.5 Define Housing “Priority Areas”
Based on the findings from prior tasks, Contractor will identify a range of potential housing priority areas within the City of Stockton. The objective will be to delineate geographic areas within the City of Stockton that should be targeted for locationfocused policies, programs, or actions to support increased housing production. For example, this could include sub-areas where there are particular housing opportunities due to the presence of catalyst sites, redevelopment potential, areas found to have geographically focused needs or opportunities for production (or rehabilitation) of certain housing types, and areas where certain tools, incentives, and/or partnerships may be particularly effective because of their specific characteristics.

Contractor will assemble the Draft HAP from the components described in the Task 2.2 sub-tasks into a single, cohesive action plan document. Contractor will provide the Draft HAP in electronic format for review and comment by City staff. Contractor will be available to discuss the Draft HAP with City staff via web meeting and will answer any questions.

Task 2.3 Final Housing Action Plan
Upon receipt of a single, consolidated set of City staff comments on the Draft HAP, Contractor will prepare revisions as appropriate, add additional elements, and finalize the plan. Following are the specific sub-tasks that Contractor will complete:

2.3.1 Refinement of Draft Housing Action Plan
Contractor will revise the Draft HAP in response to the City’s written comments and will add the following additional components. Contractor will be available to discuss the revised HAP with City staff, focusing on the new components. Upon receipt of a single, consolidated set of City staff comments on the new components, Contractor will make revisions and submit the Final HAP for the City’s use. Contractor will provide the revised and final HAP documents in Adobe PDF format.

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2.3.2 Create Action Steps/Implementation Matrix
Based on City staff input on the Draft HAP, including staff feedback on potential tools and incentives to add to the City’s housing toolbox, Contractor will prepare an implementation matrix that groups and categorizes the tools/strategies/actions and, within each grouping, prioritizes implementation based on identified needs and opportunities. For each recommended tool/strategy/action, Contractor will also identify roles and responsibilities for implementation. This will focus on the responsible City department(s) but will also identify potential outside partners, if applicable.

2.3.3 Recommend Financing Mechanisms
In the process of refining the Draft HAP, the Contractor will also add recommendations for financing mechanisms to assist with housing development. This will include consideration of short-term and long-term financing solutions as well as traditional affordable housing financing mechanisms and any new/emerging financing mechanisms that appear to be a good fit for Stockton’s needs and opportunities.

TASK 3 – 2023 – 2031 HOUSING ELEMENT AND SAFETY ELEMENT UPDATE Task 3.1 Project Schedule Development
The City of Stockton Housing Element is due to adopt by December 31, 2023. Contractor recommends starting the Housing Element efforts beginning in July 2022 to meet the December 2023 due date shown in Table 2. The following is a high-level schedule outlining the major milestones associated with the Housing Element and Safety Element Updates, Housing Action Plan, and associated CEQA requirements. Contractor will work with City staff to confirm and finalize the schedule should we have the opportunity to negotiate a contract with the City.

TABLE 1 PROPOSED SCHEDULE
Task Proposed Timeline
Task 0: Project Kick-off Meeting and Project Management Project Kick-off Meeting March 2022
Task 1: Land Inventory
Land Inventory Analysis March – April 2022
Draft RHNA Land Inventory May 2022
Stakeholder Outreach for Land Inventory May – June 2022 Final RHNA Land Inventory July 2022
Housing Priority Site Analysis May – July 2022
Draft Housing Priority Sites July 2022
Identify Potential Housing Priority Sites Partnerships July – August 2022 Final Housing Priority Sites August 2022
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Task 2: Housing Action Plan
Existing Inventory & Assessment July – August 2022
Draft Housing Action Plan November 2022
Final Housing Action Plan January 2023
Tasks 3, 4 and 5: 2023-2031 Housing Element and Safety Element and Associated CEQA Review and Outreach
Existing Conditions and Needs September 2022
Review of Previous Housing Element October – November 2022 Stakeholder Consultations November 2022
Community Meetings November 2022 – January 2023
Administrative Draft Housing Element and Safety
Element
February 2023
Receive City Review of Administrative Drafts March 2023 Public Draft Housing Element and Safety Element April 2023 Meeting with Planning Commission to review Draft
Housing Element and Safety Element
April 2023
Start on General Plan EIR Addendum April – May 2023
Submit Draft Housing Element to HCD for 60-Day
Review
May 2023
Call with HCD to received comments on Draft Housing
Element
June 2023
Draft Addendum to City for Review June 2023
Receive Findings Letter from HCD July 2023
Revise Housing Element and submit to HCD for Second
60-day Review
August 2023
Receive Findings Letter from HCD October 2023
Final Addendum to City October – November 2023
Planning Commission Review of Adoption Draft Housing
Element and Safety Element
November 2023
City Council Review of Adoption Draft Housing Element
and Safety Element
By December 15, 2023
Attachment A - Proposed Scope of Work 138
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Submit Adopted Housing Element to HCD for 90-Day
Review
December 2023
HCD 90-Day Certification Review December 2023 – March 2024 Task 3.2 Existing Conditions and Needs
Currently, HCD is not offering a streamlined review process. If that type of process becomes available before submittal of the Draft Housing Element to HCD, Contractor will look into whether it is an option. Submittal for HCD review will also comply with Assembly Bill (AB) 215, which was recently approved and will go into effect in 2022.

Task 3.2.1 Document Review
Contractor will review documents relevant to the Housing Element Update to gain an understanding of local conditions and needs. Documents will include, but are not limited to:
 2015–2023 Housing Element
 All past communication with HCD, including any findings letters  General Plan
 Housing Element annual progress reports
 Zoning code
 Any other applicable programs and ordinances
Task 3.2.2 Review of Previous Housing Element
Contractor will work closely with the City to determine the status, effectiveness, and appropriateness of the 2015–2023 housing programs. We will gather and document all available information regarding specific accomplishments. We will identify content to drop, change, or add. Findings from the evaluation will be detailed in a matrix to be included in the draft Housing Element and used as a basis for program revisions for the remainder of the planning period. Contractor will send the review matrix to City staff to provide input before including it in the Administrative Draft Housing Element.

Task 3.2.2 Deliverable:
− Included in Administrative Draft, Review of Previous Housing Programs chapter.

Task 3.3 Regional Housing Needs Allocation Assessment (RHNA) The Regional Housing Needs Assessment related part of this task will be completed as part of Task 1, Land Inventory.

In addition, during Housing Element preparation, Contractor will conduct a built environment inventory of buildings in Downtown Core and the 3 neighborhoods. This task will involve review of existing data from the City regarding building occupancy and follow up research and outreach to property owners to confirm information about occupancy and vacancy of buildings. This task will happen via internet research and email and phone outreach. On-the-ground surveying is not anticipated.

Task 3.3 Deliverable:
− Memo with list of buildings in Downtown Core and 3 neighborhoods and the available data regarding their occupancy status.

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Task 3.4 Assessment of Housing Needs
Task 3.4.1 Assessment of Housing Needs Document
Contractor will create a housing needs analysis document pursuant to Government Code Section 65583 with data from the HCD pre-approved data packet, 2020 U.S. Census data, American Community Survey, and other relevant sources. Contractor will coordinate with staff to analyze housing needs and housing conditions using state-approved criteria. The housing needs analysis will include the following.
 Population and Demographics: Population trends and projections, race and ethnicity, and population age.  Household Characteristics: Number, size, and type of existing households, and characteristics of lower-income households (including extremely low).
 Employment and Income: Employment by industry, occupation of employed residents, and income trends.  Housing Stock Characteristics: Housing types and conditions, overcrowded households, and vacancy rates.  Housing Costs and Affordability: Home sale price trends, rental costs, affordability for households at all income levels, and overpayment.
 Special Housing Needs: Special housing needs of persons with disabilities (including persons with developmental disabilities), seniors, large households, female-headed households.  At-Risk Housing: Inventory and analysis of existing affordable units at risk of converting to market rate during the planning period.
 Opportunities for Energy Conservation: Pursuant to Senate Bill (SB) 375 and AB 32, an inventory and analysis of opportunities to encourage the incorporation of energy-saving features, energy-saving materials, and energy-efficient systems and design for residential development.
 Contractor will update financial, physical, and programmatic resources available for affordable housing programs, including local, state funding programs, and private-sector resources.

Task 3.4.1 Deliverable:
− Included in the Administrative Draft, Assessment of Housing Needs chapter.

Task 3.4.2 Fair Housing Assessment
AB 686 requires each city or county to take actions to overcome patterns of segregation, address disparities in housing needs and access to opportunity, and foster inclusive communities. The City will need to include an assessment of fair housing practices, examine the relationship of available sites to areas of high opportunity, and include actions to affirmatively advance fair housing. The California Tax Credit Allocation Committee/HCD Opportunity Maps will be included and are intended to display the areas, according to research, that offer low-income children and adults the best chance at economic advancement, high educational attainment, and good physical and mental health. The goal of AB 686 is to ensure available sites for lowincome housing are in high resource areas rather than concentrated in areas of high segregation and poverty. It will be important to demonstrate adequate sites throughout the county and meaningful actions to overcome geographic disparities.

Based on our experience with recent HCD review, we feel we can prepare this analysis for the City to include in their Housing Element.

Task 3.4.2 Deliverable:
− Included in the Administrative Draft, Fair Housing Assessment chapter.

Attachment A - Proposed Scope of Work 140
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Task 3.4.3 Housing Constraints
Contractor will update the analysis of potential and actual governmental and nongovernmental constraints to meeting housing needs, including constraints to maintenance, improvement, and development of housing (pursuant to California Government Code Section 65583(a)(4,5)). Potential constraints to be reviewed include any land use controls, fees and exactions, permit processing procedures, building codes and code enforcement, land and construction costs, and the availability of financing.

We will identify potential programs and strategies to reduce or remove identified constraints. This task will include all the analysis needed to comply with recent updates to state housing law.

Task 3.4.3 Deliverable:
− Included in the Administrative Draft, Constraints chapter.

Task 3.4.4 Housing Goals, Policies, Programs, and Quantified Objectives Contractor will work with the City to update goals, policies, programs, and quantified objectives (pursuant to Government Code Sections 65583 et seq.) to address identified housing needs and constraints based on the effectiveness and continued appropriateness of existing programs, information received through public outreach, the analysis of constraints, and findings from the needs assessment. Programs will describe specific steps for implementation and will identify a time frame and responsible department. Programs will address:
 All new state requirements since adoption of the existing Housing Element  Consistency and compliance with the rest of the City General Plan elements and community goals  Development controls and regulatory incentives
 Housing opportunities for all City residents, including the elderly, those with disabilities, the homeless, and other specialneeds groups  Fair housing programs
 Sources of affordable housing funding
 Preserving and improving existing affordable housing
 Facilitating development of adequate housing and infrastructure to meet the needs of low- and moderate-income households in keeping with the regional fair-share allocation  Mitigating any governmental constraints to providing and improving housing Task 3.4.4 Deliverable:
 Included in the Administrative Draft; Goals, Policies, Programs and Quantified Objectives chapter.

Task 3.5 Preparation of Draft Housing Element
Task 3.5.1 Administrative Draft Housing Element
Contractor will incorporate the feedback received during the community meetings and stakeholder consultations into a comprehensive, formatted Administrative Draft Housing Element. Contractor will submit the Administrative Draft Housing Element to City staff for review as an electronic copy in Microsoft Word. Any outstanding data still needed from the City will be flagged in the Administrative Draft Housing Element so it can be addressed during City staff’s review. We request that we receive one consolidated set of City comments on the Administrative Draft.

Task 3.5.1 Deliverable:
− One electronic copy (in MS Word) of the Administrative Draft Housing Element.

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Task 3.5.2 Public Review Draft Housing Element
Contractor will address staff comments on the Administrative Draft and reply to any questions. We will incorporate comments and revisions from staff’s review of the Administrative Draft, as directed. Contractor will then prepare and submit a Public Review Draft Housing Element to present to both the Planning Commission at a public hearing.

Task 3.5.2 Deliverables:
− One electronic copy (in MS Word and PDF and Excel) of the Public Review Draft Housing Element. − 10 hardcopies and a flash drive with the documents of the Public Review Draft Housing Element to the City.

Task 3.5.3 HCD Review of Housing Element
During the 60-day state review periods, Contractor will serve as the City’s liaison to HCD. This service will include:
 Submittal of the draft Housing Element to HCD (60-day review).  Calls and emails with HCD staff to discuss comments.
 Incorporating HCD’s requested revisions.

Task 3.5.3 Deliverables:
− An electronic and hardcopy submittal to HCD, including cover letter of the Housing Element. − Emails and memorandums to address HCD questions and comments, as needed. − Memos with proposed revisions to the Housing Element resulting from HCD comments incorporated into the Housing Element in a tracked-changes format for review and approval by City staff.

Task 3.5.4 Adopted Final Housing Element
Contractor will prepare a final Housing Element that incorporates any changes to the public draft from City staff, HCD, or public comments received. In addition, pursuant to SB 6 (Chapter 667, Statutes of 2019), for a Housing Element adopted on or after January 1, 2021, an electronic copy of the final inventory of the land inventory parcels using HCD-approved Excel spreadsheets must be prepared and submitted to HCD with the Housing Element.

Task 3.5.4 Deliverables:
− Upon adoption of the Final Housing Element, Contractor will prepare a final adopted version with the date of adoption prominently displayed on the front cover and throughout the document to distinguish it as the official document from other versions of the General Plan Elements.
− Electronic copies (in MS Word and PDF and Excel) of the Adopted Housing Element and Electronic Sites Inventory to the City and to HCD with a cover letter for their 90-day review. One clean version and one showing all changes made will be included.
− Hard copies (one clean version and one showing all changes made) will be submitted to HCD. − 10 hardcopies and a flash drive with the documents of the Final Housing Element to the City.

Task 3.6 General Plan Amendment
Task 3.6.1 Land Use Element Amendments (if applicable)
Contractor doesn’t anticipate changes being needed to the City’s Land Use Element. However, if changes to zoning or land use are necessary to address the City’s RHNA, Contractor will prepare a memo listing the recommended changes.

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Task 3.6.1 Deliverables:
− Prepare memo (Word and PDF format) to City identifying recommended changes to the City’s Land Use Element and Land Use Map for consistency with the adopted 2023-2031 Housing Element.

Task 3.6.2 Safety Element Amendments
Based on our review of the RFP and review of available City plans and resources, including the General Plan, the Local Hazard Mitigation Plan, and regional resources, Contractor proposes the following scope of work for the Safety Element Update. The associated budget reflects our assumption for level of effort. We are open to adjusting our assumptions, scope, and budget if staff has other preferences for the project.

Task 3.6.2.a Conduct Climate Change Vulnerability Assessment Contractor will prepare a communitywide climate change vulnerability assessment (CCVA or vulnerability assessment) that meets the standards in the California Government Code and clearly identifies climate change stressors, hazards, impacts, and vulnerabilities expected to be present in Stockton. The City’s CCVA will look at the threat posed by climate-related hazards in the community, such as drought, flooding, extreme heat, extreme weather, human health hazards, wind, and wildfire, and to what extent the threat from these hazards may change in the future. The CCVA will identify the populations and assets in the community that may be affected by these hazards, including populations (persons likely to be disproportionately harmed), buildings and infrastructure, economic drivers, community services, and ecosystems. We will assess the vulnerability of populations and assets for all relevant climate hazards by looking at impact and adaptive capacity. Contractor will rely on the most accurate and up-to-date science using resources such as Cal-Adapt, the California Fourth Climate Assessment, Delta Adapts and other supporting reports from the Delta Stewardship Council, peer-reviewed scientific studies, publications from academic institutions, and other credible regional, state, and national sources. Assessment of impact and adaptive capacity will be translated into an overall vulnerability score, ranging from low to high. This scoring will help identify the priority populations/assets most susceptible to the effects of natural hazards, which will guide development of the updated Safety Element. Contractor will present the results of this assessment in a summary report. These reports will inform the topics to be addressed in the climate adaptation and resilience goals, policies, and implementation programs of the updated element.

Deliverables:
− Memo presenting method and approach to vulnerability assessment and list of climate hazards and populations/assets for inclusion (electronic, Word and PDF) − Vulnerability assessment scoring matrix with memo summary (draft and final, electronic, Word and PDF) − Up to three virtual meetings with staff to discuss the hazards, populations, assets, and services, preliminary vulnerability assessment scoring and staff comments, and final scoring and summary (phone/video conference) Task 3.6.2.b Review Evacuation Routes
Recent changes to state law require that Safety Elements updated after January 2022 must identify evacuation routes in the community and their capacity, safety, and viability to allow for effective evacuations under emergency conditions. We expect that planning for effective evacuations will be a key part of this update to the Safety Element, given the land use and circulation patterns and presence of hazard zones in Stockton. Contractor will ensure that the updated Safety Element address these and other state requirements. Contractor will rely on the City and County’s evacuation route mapping as a starting point. This subtask is expected to include the following steps, with the work bound by the level of effort estimated in the budget. - Identify and map existing evacuation routes.
- Identify evacuation scenarios and define hazard zones. The budget assumes evaluation of two to three hazard or disaster scenarios. Contractor assumes at least one scenario would focus on a flood event. - Review capacity of designated routes in the hazard zones, assuming this information (level of service and/or capacity data) is available from the recent General Plan and environmental impact report (EIR) or other similar Attachment A - Proposed Scope of Work 143
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efforts led by the City or a regional agency. This task does not include preparation of a level of service study for the City’s roadway network.
- Assess risks and vulnerabilities for the hazard zones and evacuation routes, which includes a review of the location of the City’s mapped routes against the available hazard maps, demographics of affected areas, and results of the vulnerability assessment.
- Identify goals, policies, and implementation programs to reduce risk and vulnerability.

Deliverables:
− Memo confirming evacuation routes, evacuation scenarios, and hazard zones. − Tables of evacuation route capacities and identification of pinch points based on data availability for each zone. − Maps of evacuation routes, hazard zones, and vulnerable populations in each zone. − Recommendations for evacuating vulnerable populations within hazard zones.

Task 3.6.2.c Prepare Safety Element
Contractor will initiate the project with a kick-off meeting to introduce the project team and allow for a review of project goals, communication protocols, project schedule, work plan, data needs, status of current and planned efforts that are relevant to the project, and the proposed approach to staff and community engagement. This meeting will also establish the project management procedures, including invoicing terms and communication protocols, and data collection approach. This meeting can occur with the kick-off of the Housing Element or as a stand-alone meeting.

Following identification of data needs and data collection, Contractor will conduct a crosswalk review of the City’s Safety Element and related documents to assess applicability with Section 65302(g) of the California Government Code and assess the applicability and relevance of each Safety Element’s existing goals, policies, and actions. As part of the crosswalk review, Contractor will also review the City’s Local Hazard Mitigation Plan (LHMP), and supporting regional documents and applicable local studies, to identify analyses, maps, policies, actions, or other content that could support compliance with existing guidance and regulations. We understand the City’s Office of Emergency Services is currently updating the City’s LHMP and that the County is initiating an update to its LHMP later this year. Contractor will review the LHMP as part of our crosswalk review and integrate applicable information. We will present the results of our crosswalk review in a spreadsheet that lists which revisions are needed to the Safety Element and why, what existing documents or other work can be leveraged to support these revisions, and any additional resources that may be needed. We will recommend integration of existing technical studies and analyses, policies, or other content, as well as updates of existing information and preparation of new content.

In addition, we will review the existing Safety Element’s goals, policies, and implementation actions and provide recommendations. For goals, policies, and actions that could be retained, we will note if they can be kept as written or revised to support consistency with state requirements or current conditions. This review involves consultation with City staff to learn more about implementation and effectiveness of the Safety Element. We will present the results of this review in a matrix or table format in a Word document.

Following completion of the vulnerability assessment, evacuation analysis, and crosswalk review, Contractor will prepare a Safety Element that complies with applicable state laws, including the guidance issued by the Governor’s Office of Planning and Research (OPR) and California Governor’s Office of Emergency Services (Cal OES). We anticipate a focused update to the City’s Safety Element. We expect new climate change-related goals, policies, and actions to address risk and vulnerabilities of climate-related hazards, such as drought, extreme heat, severe weather, and others as identified in the vulnerability assessment. In addition, there will likely be new goals, policies, and actions to address any issues raised through the evacuation route analysis. We anticipate minor updates to goals, policies, and implementation actions to address other natural and humanmade hazards, including flooding, seismic activity, landslides, hazardous materials, wildfire and smoke impacts, emergency preparedness, and response.

Attachment A - Proposed Scope of Work 144

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We will update background information, hazard-specific information and details, including mapping as applicable, and goals, policies, and actions to reduce exposure, risk, and vulnerability and promote community resilience. We will prepare policies that are responsive to these issues and meet the requirements of the California Government Code, including improving safety and resiliency for people, public and private property, and infrastructure systems, as well as the natural environment. As part of the Safety Element Update, we will prepare updated mapping for the community. These maps will identify areas at increased risk of natural hazards, locations of potentially vulnerable populations and assets, access in constrained neighborhoods, and evacuation routes.

To the extent necessary and appropriate, we will coordinate with Cal OES, OPR’s Integrated Climate Adaptation and Resiliency Program, the Department of Conservation’s California Geological Survey, Central Valley Flood Protection Board, and the Delta Stewardship Council. We recommend review by state agencies 90 days in advance of review and consideration for adoption by the City Council.

Contractor will prepare three drafts (administrative, public review, and public hearing drafts) and one final Safety Element.

After receiving one set of consolidated staff comments on the Administrative Draft Safety Element, the Contractor will prepare a Public Review Draft Safety Element for distribution and review by community and agency stakeholders. Following receipt of comments from the public and state agencies and direction from City staff on changes, Contractor will prepare the Public Hearing Draft Safety Element for review and recommendation by the Planning Commission and consideration of adoption by the City Council. Following review by the Planning Commission and City Council and direction from staff on changes, Contractor will prepare the Final Safety Element, inclusive of maps and supporting analyses.

The Safety Element team will participate in one community meeting, two public hearings, a kick-off meeting, and regular project coordination meetings. Our scope and budget assumes the Safety Element will be combined with the Housing Element for final review by Planning Commission and City Council.

Deliverables:
− Kick-off meeting attendance
− Kick-off meeting agenda (electronic, Word)
− Kick-off meeting summary (electronic, Word)
− Data needs list (electronic, Word)
− Memo summarizing crosswalk of existing plan review and spreadsheet of results (electronic, Word and PDF) − Matrix presenting review of existing Safety Element goals, policies, and actions (electronic, Word and PDF) − Meeting(s) with staff to review results (phone/video conference) − Administrative Draft Safety Element – background content, goals, policies, actions, and maps (electronic, Word and PDF)
− Public Review Draft Safety Element (electronic, Word and PDF) − Track changes edits to Public Review Draft (electronic, Word and PDF) − Public Hearing Draft Safety Element (electronic, Word and PDF) − Final Safety Element (electronic, Word and PDF)
− Consultations with applicable state and regional agencies (phone/video conference) − Meetings with staff (phone/video conference)
TASK 4 ENVIRONMENTAL REVIEW FOR BOTH EFFORTS
Task 4.1 General Plan EIR Addendum
The focus of the project will be to update the Housing Element to meet the City’s RHNA and ensure compliance with new regulations. The use of an Addendum builds on the investment made in the City’s adopted General Plan, and significantly shortens the time period for consideration of the new Housing Element. Finally, provided that the City’s decision to use an Addendum is supported with substantial evidence in the record, the City’s decision enjoys the same substantial evidence level of challenge as the General Plan EIR.

Attachment A - Proposed Scope of Work 145

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Contractor will provide an Administrative Draft Addendum following a format discussed during the kickoff meeting. Our default format for an Addendum is short and follows the findings in CEQA Guidelines Section 15162 rather than using an initial study.

If a formal initial study is requested, we will need to increase the budget and scope accordingly. We will use a copy of the certified General Plan EIR and findings of fact to inform the analysis portion of the Addendum. We will also include any local standards and ordinances that address physical changes to the environment. All significant impacts identified in the General Plan EIR will be reviewed in the context of the proposed changes. One administrative draft of the Addendum will be provided for review. The final draft of the Addendum will be used to support the CEQA determination during the hearing(s) for the Housing Element. Contractor’s environmental staff will attend a Zoom meeting to answer questions regarding the Addendum.

This scope does not include physical attendance at a meeting; however, we would be happy to amend the scope/budget to attend meetings in person.

Task 4.1 Deliverables:
− Administrative Draft Addendum, Final Addendum, Assistance with Resolution and Staff Report Language.

Task 4.2 Tribal Consultation
Contractor will assist the City by completing the Native American Heritage Commission (NAHC) online form requesting a tribal contact list. Using the addresses on the list from NAHC, Contractor will draft letters (for distribution on City letterhead) to each of the tribes on the NAHC list inquiring whether they want consultation. Because an Addendum is not a publicly circulated document, compliance with AB 52 would not be required. However, if there is uncertainty regarding whether an Addendum will be the appropriate environmental document and a Mitigated Negative Declaration (MND) or subsequent EIR (SEIR) may be required, it may be prudent to notify tribes pursuant to AB 52.

Contractor can facilitate and attend the consultation(s) with any tribes requesting consultation; however, the City must be represented. Pursuant to SB 18, tribes identified by NAHC will receive a written letter notifying them of the proposed project and asking if they wish to consult; tribes who notified the City under AB 52 will also be notified of the project and asked if they desire to consult in accordance with AB 52 and Sections 21080.3.1 and 21080.3.2 of CEQA. Following the consultation meeting (or conference call), Contractor will provide the written outcome of the process and a record for the environmental documentation showing that AB 52 consultation has been completed. Completion of the AB 52 process is needed prior to circulation of the environmental document for public review. Completion of the SB 18 process is needed prior to acting on the project.

Task 4.2 Deliverables:
− Draft letter to NAHC; Draft letters to identified tribes; Facilitation, attendance, and documentation of requested consultations; and written results of consultation, including closure of AB 52 consultation.

Task 4.3 SB 18 and AB 52 Consultation
If an Addendum is prepared for the proposed project, only SB 18 compliance is required. If an SEIR is prepared, compliance with both SB 18 and AB 52 will be required.

Contractor will complete the NAHC online form requesting a tribal contact list. Using the addresses on the list from NAHC, Contractor will draft letters (on City letterhead) to each of the tribes inquiring whether they want consultation. In addition to the NAHC list, letters will also be prepared for any tribes who have requested consultation pursuant to AB 52. As consultation for AB 52 and Section 21080.3.1 of CEQA is a government-to-government process, it must be initiated by the local government agency, and cities are usually represented at the consultation(s). Contractor can facilitate and attend the consultation(s); however, the City must be represented. Pursuant to SB 18, tribes identified by NAHC will receive a written letter notifying them of the proposed project and asking if they wish to consult; tribes who notified the City under AB 52 will also be notified of the project and asked if they desire to consult in accordance with AB 52 and Sections 21080.3.1 and 21080.3.2 of CEQA. Following Attachment A - Proposed Scope of Work 146
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the consultation meeting (or conference call), Contractor will provide the written outcome of the process and a record for the environmental documentation showing that AB 52 consultation has been completed. Completion of the AB 52 process is needed prior to circulation of the environmental document for public review. Completion of the SB 18 process is needed prior to acting on the project.

Task 4.3 Deliverables:
 Draft letter to NAHC; draft letters to identified tribes; facilitation, attendance, and documentation of requested consultations; and written results of consultation, including closure of AB 52 consultation.

TASK 5 HOUSING ELEMENT OUTREACH AND MEETINGS
Task 5.1 Stakeholder Consultation
Contractor recommends conducting virtual/phone stakeholder consultations with organizations representing different socioeconomic members of the community to identify housing needs. We have found these consultations to be a valuable way of getting targeted input. We will work with City staff to develop a list of 10 to 12 organizations, and we will conduct a phone or email survey to discuss the issues and housing-related needs of their clients.

Task 5.1 Deliverable:
− Summary of six to eight completed consultations to be included in the Housing Element.

Task 5.2 Community Meetings
Contractor will work with City staff to develop and implement an approach to engaging with the community that will build on the targeted engagement that has already occurred as part of Task 1, Land Inventory, and during the stakeholder consultations in Task 5.1. We envision the community meetings occurring early in the process to introduce the Housing Element Update to the community and to gather input on housing issues and potential policy solutions. We propose two workshops covering the same content occurring during the same week if possible – one virtual and one in-person.

Traditional in-person meetings have been restricted due to COVID-19. Although restrictions have begun to lift, we learned over the course of the last year and a half that virtual engagement can often result in greater participation and the ability to reach people who cannot attend in-person meetings. Contractor proposes to host one virtual workshop and one in-person workshop and prepare materials, including the PowerPoint presentation. This presentation will be designed to inform and ask questions for residents and stakeholdersto respond. In addition, during the virtual workshop we will use polling tools and other electronic methods of gauging public opinion.

Task 5.2 Deliverables:
− Attendance at one virtual workshop and one in-person workshop. Contractor is happy to have a Spanish-speaking staff person attend the workshops to translate if desired by the City. − Promotional flyer and announcements (in English and Spanish) − PowerPoint presentation (PowerPoint can be translated into Spanish for posting on the City’s website if desired by the City)
− Live polling exercises during the virtual workshop
− Summary notes incorporated into the Housing Element
Attachment A - Proposed Scope of Work 147
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Task 5.3 Planning Commission and City Council Hearings
We propose three public hearings. One hearing each with the Planning Commission to present the Draft Housing Element prior to submitting it to HCD, then one public hearing with the Planning Commission to recommend adoption, and one public hearing with the City Council for adoption of the Housing Element.

Task 5.3 Deliverables:
− Provide information for staff reports, draft and final PowerPoint presentations for each meeting, assuming in-person attendance at three public hearings.

OPTIONAL TASKS
Optional Task 1 Fatal Flaw and Infrastructure Analysis for “Priority Areas” (used for future funding discussions)
Contractor will prepare the following analysis for up to 8 individual Housing Priority Sites. The intent of these tasks is to provide the City with a fatal flaw analysis to determine if conditions on the site could hinder future development potential. • Conduct a Phase 0 screening assessment, which includes review of databases, aerials, topographic maps, and Sanborn map. A Phase 0 could identify potential sites of concern that may need a full Phase I or to go straight to a Phase II, if the land use history identifies a former gas station, factory, dry cleaners, etc. • Conduct a Phase I ESA in accordance with the American Society for Testing and Materials (ASTM) Standards on Environmental Site Assessments, ASTM E 1527-13 (ASTM 1527-13) and in accordance with the USEPA Standards and Practices for All Appropriate Inquiries (40 CFR 312), published November 2005. The goal of an ASTM Phase I is to evaluate site history, existing observable conditions, current site use, and current and former uses of surrounding properties to identify the potential presence of “Recognized Environmental Conditions (RECs)” associated with the site.
• Conduct desktop analysis including working with City departments for infrastructure, cultural resources, biological resources, and qualitative noise review
Optional Task 2 Additional Community Engagement
The engagement process for the HAP could be expanded to include more public involvement. Contractor anticipates conducting 3 additional workshops in the 3 neighborhoods and up to 3 meetings on up to 10 priority sites. Meetings for priority sites will be grouped by neighborhood to include multiple sites with similar stakeholders, ownership, and issues at one meeting.

Optional Task 3 Case Studies and Best Practices Research The contractor will prepare white papers and analysis as requested by the City. It is anticipated one white paper will address the subject of the State Pro-Housing Designation and another on potential funding/financing tools. One additional white paper can be prepared as requested by the City.

Attachment A - Proposed Scope of Work 148
The PlaceWorks Team
City of Stockton Housing Element and Housing Action Plan

COST PROPOSAL
Jennifer
Gastelum
Amy
Sinsheimer
Charlie
Knox
Karla
Martinez
Tammy
Seale Eli Krispi Mark Teague Patrick Hindmarsh Denise Clendening Miles Barker Rob Mazur Giselle Vandrick BAE Principal in
Charge
Project
Manager
Senior
Advisor
Senior
Associate
Project
Planner
Project
Planner,
Outreach
Principal, Sr.

Advisor, SE
Project
Manager,
SE
Principal,
CEQA
Senior
Associate,
CEQA
Associate
Principal
Project
Planner,
CEQA
Senior
Associate,
GIS
Project
Planner,
GIS
Support
Hourly Rate: $225 $180 $240 $165 $125 $115 $230 $175 $230 $210 $195 $115 $180 $115 $115 $115 $115 TASK 0. Project Kick-off Meeting and Project Management

0.1 Project Kickoff 2 8 2 2 10 2812 12 2 51 $161 $8,231 0 $0 $0 $8,231

0.2 Project Management and Coordination 4 12 8 12 4 4 18 8 18 4 92 $298 $15,178 0 $0 $0 $15,178 Task 0. Subtotal 6 20 2 10 22 4 6 26 1 10 0 30 4 0 0 0 2 143 $459 $23,409 0 $0 $0 $23,409 TASK 1. Land Inventory

1.1 Draft RHNA Land Inventory 2 16 24 6 16 64 $204 $10,414 0 $0 $0 $10,414

1.2 Stakeholder Outreach 2 12 12 8 4 24 2 46 $142 $7,242 0 $0 $0 $7,242

1.3 Final RHNA Land Inventory 2 6 822 44 28 $90 $4,600 0 $0 $0 $4,600

1.4 Housing Priority Site Analysis 1 824 2 44 25 $88 $4,493 0 $0 $0 $4,493

1.5 Identify Partnerships 4 4 4 12 $47 $2,387 0 $0 $0 $2,3871.6 Final Housing Priority Sites 2 2 24 10 $33 $1,693 0 $0 $0 $1,693 Task 1. Subtotal 7 48 8 52 10 6 0 0 0 2 0 0 18 32 0 0 2 185 $604 $30,829 0 $0 $0 $30,829 TASK 2. Housing Action Plan

2.1 Existing Inventory & Assessment 0 $0 $0 0 $0 $0 $0

2.1.1 Review Plans, Reports, Studies, other Relevant Doc 0 $0 $0 3,500 $350 $3,850 $3,8502.1.2 Review Gaps in Policy Recommendations 0 $0 $0 1,500 $150 $1,650 $1,6502.1.3 Equity and Anti‐Displacement 0 $0 $0 10,000 $1,000 $11,000 $11,0002.1.4 Prepare Overview of Existing Plans 0 $0 $0 5,000 $500 $5,500 $5,500

2.1.5 Review and Prepare Overview of Barriers 0 $0 $0 9,000 $900 $9,900 $9,900

2.1.6 Inventory of Specialty Tools/Incentives 0 $0 $0 6,000 $600 $6,600 $6,6002.1.7 Review and Prepare Overview of Existing Incent 0 $0 $0 4,000 $400 $4,400 $4,400

2.1.8 Conduct Interviews 0 $0 $0 8,250 $825 $9,075 $9,075

2.2 Draft Housing Action Plan 0 $0 $0 0 $0 $0 $0

2.2.1 Review and Provide Existing Content 0 $0 $0 14,000 $1,400 $15,400 $15,400

2.2.2 Include Various Types/Tiers of Housing 0 $0 $0 4,500 $450 $4,950 $4,950

2.2.3 Homelessness Resource Inventory 0 $0 $0 7,500 $750 $8,250 $8,2502.2.4 Case Studies, Pro Formas, & Preplanning 0 $0 $0 82,000 $8,200 $90,200 $90,200

2.2.5 Define Housing "Priority Areas" 0 $0 $0 8,000 $800 $8,800 $8,800

2.3 Final Housing Action Plan 0 $0 $0 0 $0 $0 $0

2.3.1 Refinement of Draft Housing Action Plan 0 $0 $0 4,000 $400 $4,400 $4,4002.3.2 Create Action Steps/Implementation Matrix 0 $0 $0 5,000 $500 $5,500 $5,500

2.3.3 Recommend Financing Mechanisms 0 $0 $0 6,000 $600 $6,600 $6,600 Task 2. Subtotal 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 $0 $0 178,250 $17,825 $196,075 $196,075 TASK 3. 2023 - 2031 Housing and Safety Element Update

3.1 Project Schedule Development 2 2 4 $12 $622 0 $0 $0 $622

3.2 Existing Conditions and Needs 0 $0 $0 0 $0 $0 $0

3.2.1 Document Review 1 4 4 9 $23 $1,163 0 $0 $0 $1,163

3.2.2 Review of Previous Housing Element 2 8 16 4 30 $83 $4,223 0 $0 $0 $4,223

3.3 RHNA Assessment 4 8 2 24 8 16 62 $182 $9,282 0 $0 $0 $9,2823.4 Assessment of Housing Needs 0 $0 $0 0 $0 $0 $0

3.4.1 Assessment of Housing Needs Document 4 8 16 26 54 $141 $7,171 0 $0 $0 $7,171

3.4.2 Assessment of Fair Housing 2 4 26 8 46 50 $132 $6,732 0 $0 $0 $6,732

3.4.3 Housing Constraints 4 8 16 26 54 $141 $7,171 0 $0 $0 $7,1713.4.4 Housing Goals, Policies, Programs and Quant Obj 2 12 20 34 $118 $6,028 0 $0 $0 $6,028

3.5 Preparation of Draft Housing Element 0 $0 $0 0 $0 $0 $0

3.5.1 Administrative Draft 4 8 2 24 16 4 16 12 86 $249 $12,709 0 $0 $0 $12,709

3.5.2 Public Review Draft 8 16 16 86 54 $154 $7,844 0 $0 $0 $7,844

3.5.3 HCD Review 2 12 20 20 8 42 68 $200 $10,220 0 $0 $0 $10,220

3.5.4 Adopted Final Housing Element 6 12 10 24 34 $100 $5,100 0 $0 $0 $5,100

3.6 General Plan Amendment 0 $0 $0 0 $0 $0 $0

3.6.1 Land Use Element Amendments Memo 2 4 6 46 22 $58 $2,978 0 $0 $0 $2,9783.6.2 Safety Element Amendments 0 $0 $0 0 $0 $0 $0

3.6.2.a Vulnerability Assessment 4 12 80 8 8 8 120 $300 $15,280 0 $0 $0 $15,280

3.6.2.b Safety Element Map Updates & Evacuation Analysis 4 12 16 80 2 114 $307 $15,637 0 $0 $0 $15,637

3.6.2.c Safety Element Update 8 24 48 488 100 $277 $14,137 0 $0 $0 $14,137 Task 3. Subtotal 12 71 4 124 172 72 16 48 0 0 0 128 28 110 14 48 48 895 $2,477 $126,297 0 $0 $0 $126,297 TASK 4. Environmental Review for Both Efforts

4.1 General Plan EIR Addendum 26 70 78 $195 $9,965 0 $0 $0 $9,965

4.2 Tribal Consultation 28 10 $27 $1,367 0 $0 $0 $1,367 Task 4. Subtotal 0 0 0 0 0 0 0 0 2 8 0 78 0 0 0 0 0 88 $222 $11,332 0 $0 $0 $11,332 TASK 5. Housing Element Outreach and Meetings

5.1 Stakeholder Consultations 1 4 20 2 27 $71 $3,641 0 $0 $0 $3,641

5.2 Community Meetings 8 12 24 24 12 8 16 12 4 8 128 $366 $18,666 0 $0 $0 $18,6665.3 Planning Commission/City Council Meetings 12 12 16 4 4 16 16 4 2 2 88 $280 $14,300 0 $0 $0 $14,300 Task 5. Subtotal 20 25 0 44 48 16 0 24 0 0 0 32 0 0 16 6 12 243 $717 $36,607 0 $0 $0 $36,607 Labor Hours Total 45 164 14 230 252 98 22 98 3 20 0 268 50 142 30 54 64 1554 Labor Dollars Total $10,125 $29,520 $3,360 $37,950 $31,500 $11,270 $5,060 $17,150 $690 $4,200 $0 $30,820 $9,000 $16,330 $3,450 $6,210 $7,360 $4,479 $228,474 178,250 $196,075 $424,549 PlaceWorks Percent of Total Labor 3% 11% 1% 15% 16% 6% 1% 6% 0% 1% 0% 17% 3% 9% 2% 3% 4% Total Task
Budget
PlaceWorks
Hours
PlaceWorks
Total

SUBCONSULTANTS
PlaceWorks 2%
Office Expenses
10%
Subconsultant
Markup
GRAPHICS TECH. EDITOR WP/ CLERICAL

PLACEWORKS
Subconsultant
Total

PLACEWORKS
Attachment A - Proposed Scope of Work
149
The PlaceWorks Team
City of Stockton Housing Element and Housing Action Plan

COST PROPOSAL
Jennifer
Gastelum
Amy
Sinsheimer
Charlie
Knox
Karla
Martinez
Tammy
Seale Eli Krispi Mark Teague Patrick Hindmarsh Denise Clendening Miles Barker Rob Mazur Giselle Vandrick BAE Principal in
Charge
Project
Manager
Senior
Advisor
Senior
Associate
Project
Planner
Project
Planner,
Outreach
Principal, Sr.

Advisor, SE
Project
Manager,
SE
Principal,
CEQA
Senior
Associate,
CEQA
Associate
Principal
Project
Planner,
CEQA
Senior
Associate,
GIS
Project
Planner,
GIS
Support
Hourly Rate: $225 $180 $240 $165 $125 $115 $230 $175 $230 $210 $195 $115 $180 $115 $115 $115 $115 Total Task
Budget
PlaceWorks
Hours
PlaceWorks
Total

SUBCONSULTANTS
PlaceWorks 2%
Office Expenses
10%
Subconsultant
Markup
GRAPHICS TECH.

EDITOR
WP/

CLERICAL

PLACEWORKS
Subconsultant
Total

OPTIONAL TASKS
1 Fatal Flaw and Infrastructure Analysis 2 6 4 24 140 180 140 80 180 32 32 32 852 $2,695 $137,445 0 $0 $0 $137,445 2 Additional Community Engagement 30,000 $3,000 $33,000 $33,000 3 Case Studies and Best Practices Research 9,000 $900 $9,900 $9,900 Optional Tasks Subtotal $180,345

EXPENSES
PlaceWorks Reimbursable Expenses $5,124
Subconsultants' Reimbursable Expenses $1,100
EXPENSES TOTAL $6,224
GRAND TOTAL $430,773GRAND TOTAL WITH OPTIONAL TASKS $599,786

PLACEWORKS
Attachment A - Proposed Scope of Work
150
Resolution No.

STOCKTON CITY COUNCIL
==================================================================

RESOLUTION APPROVING AN AGREEMENT FOR PROFESSIONAL SERVICES WITH PLACEWORKS, INC. TO ESTABLISH A NEW HOUSING ACTION PLAN AND

COMPREHENSIVE UPDATE TO THE CITY OF STOCKTON'S HOUSING ELEMENT On December 4, 2018, the City of Stockton City Council adopted the Envision Stockton 2040 General Plan. The 2040 General Plan reduced the urban land use north of Eight Mile Road by nearly 3,000 acres east of Davis Road. This was the first time in Stockton’s history that the urban footprint was reduced from the previous General Plan; and
The City adopted its last Housing Affordable Strategy in 2008 and the 2015-2023 Housing Element in 2014, as required by state law; and
The City is looking for a consultant to help the City establish a new strategic housing plan (hereafter “Housing Action Plan”) and update the City’s Housing Element to align with the adopted Envision 2040 General Plan as well as State housing law; and A Request for Proposals (RFP) was issued on September 9, 2021, to solicit proposals for consulting services to provide a Development Code Update; and The current consultant market is experiencing staff shortages due to the amount of state-wide grant-funded efforts, upcoming grant expenditure deadlines, and other pending commitments (such as Housing Element updates), thus creating an environment where jurisdictions are experiencing a low number of proposal submittals; and In response to the RFP, two firms submitted a proposal to assist the City in preparing the two housing documents. The proposals included assistance with public workshops and coordination with the Planning Commission, Council, and the community; and
A Selection Committee comprised of representatives from the Community Development and Economic Development Departments reviewed the proposals and interviewed the proposal team on November 4, 2021; and
The Selection Committee met after concluding the interviews. It weighted the following factors: relevant project experience, project staff expertise, project work plan and management approach, subconsultant team, ability to meet schedule and budget commitments, and project cost. This review determined that the PlaceWorks, Inc. proposal addressed the needs highlighted in the RFP and that the proposed consultant team was qualified to provide the specialized services required for this project; and 151
Upon conclusion of this process, PlaceWorks, Inc. was selected as the more qualified and higher-ranked firm and was selected to provide the assistance to establish the Housing Action Plan and Housing Element Update; and PlaceWorks, Inc. fee proposal for this project is $599,786, which staff considers reasonable for a project of this scope and complexity; now, therefore,

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

1. A Professional Services Agreement between the City of Stockton and PlaceWorks, Inc. for $599,786 is approved as described in Exhibit 1.

2. The City Manager is authorized and directed to execute the Professional Services Agreement between the City of Stockton and PlaceWorks, Inc.

3. 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:

A. The City does not have staffing available to perform the tasks outlined in the hearing report.

B. 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.

C. The City negotiated a contract following solicitation of competitive proposals in accordance with SMC section 3.68.070.A.3.
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152

4. The City Manager is authorized and directed to take whatever actions are necessary and appropriate to carry out the purpose and intent of this Resolution.

PASSED, APPROVED, and ADOPTED March 22, 2022 .

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

ELIZA R. GARZA, CMC
City Clerk of the City of Stockton
153

CITY OF STOCKTON

STANDARD AGREEMENT

1. This Agreement is entered into between the City of Stockton (“City”) and (“Contractor”) to provide
as set forth in Exhibit A to this Agreement.
_____________________________________________________________________________

2. The term of this Agreement is as follows, unless amended as described in Exhibit A and Exhibit C section 8:

Commences on: Terminates on:
_____________________________________________________________________________

3. The maximum not to exceed amount to be paid to Contractor for the term of this Agreement, including if authorized, reimbursement of expenses, is: $

4. The complete Agreement consists of all the following Agreement documents which by reference are incorporated and made a part of this Agreement. The parties agree to comply with the terms and conditions of this Agreement.

J
([KLELW*6SHFLDO)XQGLQJ7HUPV &RQGLWLRQV    ,IDSSOLFDEOHFKHFNER[
<(6 ____________________________________________________________________________ IN WITNESS WHEREOF, the authorized parties have executed this Agreement.

CONTRACTOR
______________________________________________________________________________________________ Contractor’s Name (if other than an individual, state whether a corporation, partnership, etc.):
______________________________________________________________________________________________ Authorized Signature Date
______________________________________________________________________________________________ Printed Name and Title of Person Signing
______________________________________________________________________________________________ Address

CITY OF STOCKTON
_________________________________________________________BB________________ +DUU\%ODFN City Manager Date
ATTEST:
____________________________________________________________________________ (OL]D5*DU]D&0&, City Clerk
APPROVED AS TO FORM:

John M. Luebberke, City Attorney
BY:

Agreement Number:
(a) Exhibit A – Statement of Work
(b) Exhibit B – Insurance
(c) Exhibit C – General Terms Conditions
(d) Exhibit D –

H
Exhibit E – Compensation Schedule
(f) Exhibit F – Timeline
EXHIBIT 1 - CONTRACT
PlaceWorks Housing Action Plan and Housing Element Update March 22, 2022 March 22, 2024
$599,786
Professional Services Special Terms & Conditions
CARES
PlaceWorks
154
1 EXHIBIT A

STATEMENT OF WORK

1. Project Objectives

1.1. To provide technical review and analysis, framework development, public participation. drafting regulations, and preparation of the City's Development Code.

2. Project Scope

2.1. Project Kick-off Meeting and Project Management

2.1.1. Project Kick-off
The contractor shall communicate with City staff via phone and email throughout the project. The Contractor shall prepare for and attend a virtual kick-off meeting with the City to exchange information and initiate work. At the meeting Contractor shall:

2.1.1.1. Determine staff contact protocol.

2.1.1.2. Review and finalize the scope of work and schedule.

2.1.1.3. Review Housing Element legal requirements and California Department of Housing and Community Development (HCD)
practices.

2.1.1.4. Identify stakeholders.

2.1.1.5. Provide a list of data needs.

Deliverables:

2.1.1.5.1. Kickoff meeting agenda, data needs list, list of stakeholders, and meeting minutes (electronic copies).

2.1.1.5.2. Agenda and notes for subsequent calls with staff (electronic copies).

2.1.2. Project Management and Coordination

2.1.2.1. The Contractor shall communicate with City staff via phone and email throughout the project. In addition, the Contractors’ project team shall:

2.1.2.2. Provide monthly email progress reports to the City

2.1.2.3. Lead Zoom check-in discussions once a month with one or two appropriate team members.

EXHIBIT 1 - CONTRACT
155
2 2.1.2.4. Provide an Internet-based folder for all project materials accessible to the City and consultants.

2.1.2.5. Reallocate any remaining funds to other tasks within the scope when tasks are completed under budget.

2.1.2.6. Send all draft documents through quality control in advance of submitting to the City for review.

Deliverables:

2.1.2.6.1. Monthly progress report accompanying the invoice.

2.1.2.6.2. Project discussion once a month via Zoom (assumed 10 check-in meetings).

2.2. Land Inventory
The Contractor shall work with the City to assess the availability of land allowing residential development in the City and as a subset of the list of suitable sites, a list of Housing Priority Sites will be developed by the Contractor. This analysis will be used during Housing Action Plan, and as part of the Housing Element Update.

2.2.1. Draft RHNA Land Inventory
The City’s current Regional Housing Needs Allocation (RHNA) assigned for the 2015-2023 time period is 11,824. San Joaquin County Council of Governments (SJCOG) is currently working with the cities in their region on the draft RHNA for the 2023-2031 planning period. Once the RHNA for the 2023-2031 timeframe is available, The Contractor shall analyze the City’s ability to address those numbers during the eight-year timeframe of the next Housing Element. The Contractor will use the current vacant and underutilized sites inventory from the Housing Element and work with City staff to determine which sites are still available and meet HCD’s land inventory criteria. The Contractor will then work with City staff to determine if additional sites are needed to meet the RHNA and to ensure the City does not fall into a no-net-loss situation.

The Contractor realizes that identifying adequate sites can be a large undertaking. The Contractor shall use the inventory of the current site as a starting point to determine which sites are still viable RHNA sites based on new state law requirements, including, but not limited to, the following:

2.2.1.1. Additional analysis for sites smaller than one-half acre, larger than 10 acres

2.2.1.2. Additional analysis for underutilized, nonvacant sites

2.2.1.3. Identify sites included in the past housing element cycles that may require changes to zoning to continue listing in the Housing Element sites inventory

2.2.1.4. Identify if sites are publicly owned
EXHIBIT 1 - CONTRACT
156
3 2.2.1.5. Indicate whether a site has available or planned and accessible infrastructure.

It is not currently anticipated that rezoning will be needed to meet the RHNA.

If rezoning is needed, the Contractor shall work with the City to analyze sites that would be suitable for residential development if their zoning was changed.

For this task, The Contractor shall:

2.2.1.6. Incorporate the Regional Housing Needs Allocation prepared by SJCOG for the 2023-2031 cycle.

2.2.1.7. Document potential sites. The Contractor shall prepare an inventory, map, and analysis clearly illustrating Stockton’s capacity to accommodate the new RHNA. In keeping with state law, the Contractor shall document the realistic development capacity of each site and will prepare a map showing all identified sites.

2.2.1.8. Investigate alternative RHNA credits. This includes analyzing the capacity for alternative RHNA credits for accessory dwelling units, guest quarters, preservation of existing at-risk affordable housing projects, and other similar, nontraditional RHNA credit opportunities.

2.2.1.9. Ensure sites affirmatively further fair housing. The Contractor shall work with City staff to determine if the sites identified in the inventory are located throughout the community in a manner that affirmatively furthers fair housing. The analysis will be a preliminary assessment of whether the sites are consistent with state fair housing law. A full fair housing assessment will be conducted.

The Contractor shall complete an analysis of nonvacant sites to address a portion of the RHNA. As part of this analysis, the Contractor shall analyze the realistic development potential within the planning period by considering the extent that a nonvacant site’s existing use impedes additional residential development, the jurisdiction's past experience converting existing uses to higher-density residential development, market trends and conditions, and regulatory or other incentives or standards that encourage additional housing development on any nonvacant sites. The Contractor shall work to determine if parcels included in the inventory have sufficient water, sewer Contractor, and dry utilities (electricity, internet) supply available and accessible we support housing development. The Contractor shall review existing general plan programs or other mandatory programs or plans to secure sufficient water, sewer, and dry utility supply to support housing development on the site. The analysis shall include sufficient detail to determine whether the service levels of water delivery/treatment systems and sewer treatment EXHIBIT 1 - CONTRACT
157
4 facilities are sufficient and have the capacity to accommodate development on all identified sites in order to accommodate the RHNA.

Deliverables:

2.2.1.9.1. Excel workbook with Draft RHNA land inventory and PDF of workbook.

2.2.2. Conduct Stakeholder Outreach
The Contractor shall conduct stakeholder outreach to receive input on the potential RHNA Land Inventory. After preparing a preliminary update to the existing Housing Element land inventory and adding additional suitable parcels, The Contractor shall hold two (2) workshops to receive input about the potential list of sites. One workshop shall be virtual and one in-person with the same content presented. Maps or other tools shall be decided on with City staff to facilitate the presentation of the draft land inventory.

Deliverables:

2.2.2.1.1. Attendance at one virtual workshop and one in-person workshop. The Contractor shall have a Spanish-speaking
staff person attend the workshops to translate if desired by the City.

2.2.2.1.2. Promotional flyer and announcements (in English and Spanish)

2.2.2.1.3. PowerPoint presentation (The PowerPoint can be translated into Spanish for posting on the City website if desired)

2.2.2.1.4. Other materials, including maps or other suitable materials for the in-person workshop

2.2.2.1.5. Summary notes incorporated into the Housing Element

2.2.3. Final RHNA Land Inventory
Based on feedback received from City staff and the public, the Contractor shall revise the RHNA Land Inventory. The final list of sites that is suitable to meet the RHNA will need to be arrived at while considering and addressing the comments received.

Deliverables:

2.2.3.1.1. Revised Excel workbook with Final RHNA land inventory and PDF of workbook.

2.2.4. Housing Priority Site Analysis
A subset of the RHNA Land Inventory sites shall be designated Housing Priority Sites and analyzed further by The Contractor as part of the Housing Action Plan in Task 2. The Contractor shall use the existing Housing Priority EXHIBIT 1 - CONTRACT
158
5 Site list the City has created as a starting point. Housing priority sites shall be sites that are best candidates for a variety of housing development during the Housing Element planning period, including affordable housing. These will also be sites that can serve as a catalyst for economic and neighborhood-serving improvements. The list of sites identified by the Contractor shall exceed the ultimate number the City would like to arrive at for the list of Housing Priority Sites so that further outreach and review can refine the list to reach a final list of Housing Priority Sites.

Deliverables:

2.2.4.1.1. Draft subset of sites from the Final RHNA land inventory (Excel workbook)that are proposed to be Housing Priority Sites.

2.2.5. Identify Partnerships
The Contractor shall work with the City to reach out to owners of the Housing Priority Sites identified on a draft list that are not owned by the government to explore their interest in housing development and potential partnerships. A partnership would increase the attractiveness of the site for development in the near-term and establish a working relationship to explore further possibilities for the site as part of the Housing Action Plan under Task 2.

Deliverables:

2.2.5.1.1. The Contractor shall assist the City with mailers, emails, and phone calls to the Draft Housing Priority Sites List property owners. If requested by the property owners, the Contractor shall hold a meeting with the property owner to discuss their interest in residential development and working further with the City to position the site as a development-ready location.

2.2.6. Final Housing Priority Sites
Based on feedback received from City staff and property owners, the Contractor shall revise the Housing Priority Sites list. Next steps to develop information and analyze these sites will occur in Task 2 as part of the Housing Action Plan.

Deliverables:

2.2.6.1.1. Final subset of sites from the Final RHNA land inventory (Excel workbook)that are proposed to be Housing Priority Sites.

2.3. Housing Action Plan
EXHIBIT 1 - CONTRACT
159
6 The Contractor shall prepare a Housing Action Plan (HAP). HAP shall serve as a toolkit that provides the City with an overarching strategy document to implement housing policies, improve existing policies, develop and implement new policies pertaining to increased housing production, housing standards, best practices, and means to administer the programs and efforts within a set timeframe. The HAP “toolkit” shall encompass existing housing plans and policy objectives to increase overall housing production in the City of Stockton. The toolkit shall be based on an assessment and determination of housing needs by type (emergency, supportive, permanent) and by income level (very low-, low-, moderate-, and above moderate-income). The HAP toolkit shall identify areas that allow each housing type, identify priority housing sites for catalytic projects, identify a possible list of housing partnerships and funding, based on sitespecific and regional market analysis. The end product of this task shall be written and structured to be read and understood by the broad public, City staff, elected and appointed officials, local community-based organizations, housing developers, and regional partners. To accomplish these objectives, the Contractor will complete the following sub-tasks.

2.3.1. Existing Inventory and Assessment
As a first step in developing the HAP, the Contractor shall compile a comprehensive inventory of the existing housing policies and available background information. Following is a description of sub-tasks.

2.3.2. Review Plans, Reports, Studies, other Relevant Documentation City staff shall provide, and the Contractor shall review, copies of relevant plans, reports, studies, and other relevant documentation of housing conditions, goals, and objectives in Stockton. This shall include, but shall not be limited to, background information coming out of the parallel Housing Element Update process, as well as existing policies, plans, and studies, including the City’s HUD Consolidated Plan and Analysis of Impediments to Fair Housing.

2.3.3. Review Gaps in Policy Recommendations
After gathering and reviewing the relevant background information, the Contractor shall prepare a summary of the City’s existing housing policy, organized by type of housing and income level addressed and will highlight any gaps in housing policy for housing types and/or income levels that are not addressed in current policy. The Contractor shall conduct interviews as part of to help to identify existing gaps in affordable housing policy. Once this task is complete Contractor will meet with the City about any identified gaps and whether any of them could be addressed by the City in a nearterm timeframe.

EXHIBIT 1 - CONTRACT
160
7 2.3.4. Prepare Overview of Existing Plans
From the summary of existing housing policies, the Contractor shall prepare a concise overview of the existing policies and programs and the implementation tools that the City currently uses to achieve stated goals and objectives. The Contractor shall request information from City staff regarding the achievements or outcomes from the existing policies (including implementation and results of the existing Housing Element).

Review and Prepare Overview of Barriers to Housing Production The Contractor shall prepare an overview of barriers to housing production in Stockton. Interviews conducted shall help to identify real or perceived barriers to local housing production. Based on feedback from key informants regarding the perceived barriers to housing production that the City may be able to influence, the Contractor shall conduct follow-up research to try to verify the issues and identify potential solutions that could be incorporated into the HAP. This information may inform the subsequent preparation of the assessment of governmental and nongovernmental constraints to housing in the Housing Element Update process that will follow.

2.3.5. Inventory of Specialty Tools/Incentives
To begin the process of thinking about tools that could be utilized in Stockton to help facilitate the production of housing of different types to serve different household income levels, the Contractor will compile an inventory of different tools and incentives that have been used in other communities. This inventory will include a brief description of each tool, along with pertinent information about the type and/or income level of housing that they can assist, any special requirements (e.g., voter approval, adoption of plans, other local governmental actions) for use in Stockton, as the well as identification of potential funding sources and/or other resources needed for implementation. Examples of the types of tools/incentives to be considered include the transfer of development rights, tax increment financing/EIFDs/CRIAs, land trusts, public-private partnerships, use of publicly owned land, etc. Interviews to be conducted.

2.3.6. Review and Prepare Overview of Existing Incentives The Contractor will review and prepare an overview of the City of Stockton’s existing incentives and tools for facilitating housing production. This will identify the tools that the City already has in its toolkit to help increase housing production. Comparing this information with the information presented will help to identify gaps in the City’s toolbox and ideas for new tools that the City could consider adding to address specific needs that the study identifies.

EXHIBIT 1 - CONTRACT
161
8 2.3.7. Conduct Interviews
To support the identification of housing needs, constraints, the effectiveness of policies and programs, and possible new incentives or tools to add, The Contractor will conduct interviews with up to eight key informants who are knowledgeable about local housing needs; the effectiveness of existing policies, programs, and incentives; and potential new tools or resources that may be needed to achieve local goals. These may include for-profit developers, nonprofit housing developers, landholders, social service agencies, CBOs, and other relevant stakeholders to be identified in consultation with City staff.

2.3.8. Draft Housing Action Plan

The Contractor will synthesize the information generated, Existing Inventory and Assessment, to prepare a Draft HAP. Following are the specific subtasks that the consultant team will complete.

2.3.9. Review and Provide Existing Context
The Contractor will prepare a brief Market Conditions and Demographics section as a preface to the HAP. The purpose of this information will be to set the context for the HAP, highlighting key pieces of information, such as the existing affordability gaps in the local housing market (e.g., which income groups are unable to afford market-rate housing).

2.3.10. Include Various Types/Tiers of Housing
Building on the work, Contractor will also include in the Market and Demographics section an identification of specific socioeconomic groups that are under-served (e.g., under-served needs by housing type), including:

2.3.10.1.1. Emergency Housing (homeless)

2.3.10.1.2. Supportive Housing (state licensing required)

2.3.10.1.3. Permanent

2.3.10.1.4. By Income

2.3.10.1.5. By Type (i.e., density, mass, etc)
The Contractor’s research on this topic can serve as a starting point for the Housing Needs Assessment/Assessment of Fair Housing that will be prepared as part of the Housing Element Update process. The findings from this task will help to determine the types of sites that should be identified as catalyst sites for further study, based on the magnitude of unmet needs in various categories that are identified and the site suitability criteria associated with different housing types. (E.g., different types of sites and EXHIBIT 1 - CONTRACT
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9 locations are needed for emergency shelters versus for market-rate permanent housing.) In addition to the needs for affordable housing to be addressed, to the extent possible, the Contractor will also identify specific housing niches that present opportunities for the City to expand housing production, including specialty types such as transit-oriented development (TOD) and strengthening of the City's Missing Middle housing toolkit.

2.3.11. Case Studies, Pro Formas, and Preplanning Activities for Catalyst Sites
In collaboration with City staff, the Contractor will take the lead in preparing a section of the HAP that will focus on potential housing projects on up to 20 catalyst housing sites, drawing from the Sites Inventory to be completed.

The budget for this task assumes that the Sites Inventory task will provide basic site information, such as APN, existing zoning and general plan designation, and existing land uses. The contractor and City staff will collaborate to review and refine the Sites Inventory list to a maximum of 20 and the City staff and Contractor will further collaborate to identify potential zoning and General Plan designation changes and targeted residential development density if not already identified in the Sites Inventory. City staff will provide any available information regarding the availability of utilities to serve the targeted development type, the presence of any site constraints.

The contractor will conduct a limited additional assessment of each site to ascertain key factors such as existing site conditions, neighborhood context, and other factors relevant to the potential future development with the targeted housing type.

For each site, the Contractor will preliminarily identify a potential project type that would both address a specific segment of identified local housing needs and also be compatible with the site’s locational characteristics, site conditions, and development targeted in the Housing Element Sites Inventory. The contractor will then provide a pro-forma financial feasibility analysis that is based on one of up to five development prototypes (to be defined in consultation with City staff), modified to fit the size of the specific catalyst site being analyzed. The pro-forma analysis will identify the financial feasibility of the targeted development type and will identify any funding gap that may need to be addressed to achieve financial feasibility.

In addition, for each catalyst site, the Contractor will briefly outline a set of high-level “next steps” toward housing development. This will include necessary actions such as rezone/General Plan amendments, California Environmental Quality Act (CEQA) review, infrastructure evaluations, site remediation investigations, and other site-specific actions that would need to be undertaken to pre-plan and prepare shovel-ready housing sites.

Depending on the site ownership and the type of development envisioned, these next steps may include actions such as issuing RFPs for City-owned properties, conducting outreach to owners of privately-owned sites, etc.

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10 2.3.12. Define Housing “Priority Areas”
Based on the findings from prior tasks, the Contractor will identify a range of potential housing priority areas within the City of Stockton. The objective will be to delineate geographic areas within the City of Stockton that should be targeted for location-focused policies, programs, or actions to support increased housing production. For example, this could include sub-areas where there are particular housing opportunities due to the presence of catalyst sites, redevelopment potential, areas found to have geographically focused needs or opportunities for production (or rehabilitation) of certain housing types, and areas where certain tools, incentives, and/or partnerships may be particularly effective because of their specific characteristics.

The Contractor will assemble the Draft HAP from the components described in sub-tasks into a single, cohesive action plan document. The Contractor will provide the Draft HAP in electronic format for review and comment by City staff. The contractor will be available to discuss the Draft HAP with City staff via the web meeting and will answer any questions.

2.3.13. Final Housing Action Plan
Upon receipt of a single, consolidated set of City staff comments on the Draft HAP, the Contractor will prepare revisions as appropriate, add additional elements, and finalize the plan. Following are the specific subtasks that Contractor will complete:

2.3.14. Refinement of Draft Housing Action Plan
The contractor will revise the Draft HAP in response to the City’s written comments and will add the following additional components. The contractor will be available to discuss the revised HAP with City staff, focusing on the new components. Upon receipt of a single, consolidated set of City staff comments on the new components, the Contractor will make revisions and submit the Final HAP for the City’s use. The contractor will provide the revised and final HAP documents in Adobe PDF format.

2.3.15. Create Action Steps/Implementation Matrix
Based on City staff input on the Draft HAP, including staff feedback on potential tools and incentives to add to the City’s housing toolbox, the Contractor will prepare an implementation matrix that groups and categorizes the tools/strategies/actions and, within each grouping, prioritizes implementation based on identified needs and opportunities. For each recommended tool/strategy/action, the Contractor will also identify roles and EXHIBIT 1 - CONTRACT
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11 responsibilities for implementation. This will focus on the responsible City department(s) but will also identify potential outside partners, if applicable.

2.3.16. Recommend Financing Mechanisms
In the process of refining the Draft HAP, the Contractor will also add recommendations for financing mechanisms to assist with housing development. This will include consideration of short-term and long-term financing solutions as well as traditional affordable housing financing mechanisms and any new/emerging financing mechanisms that appear to be a good fit for Stockton’s needs and opportunities.

2.4. 2023 – 2031 Housing Element and Safety Element Update

2.4.1. Project Schedule Development
The City of Stockton Housing Element is due to adopt by December 31, 2023. The contractor recommends starting the Housing Element efforts beginning in July 2022 to meet the December 2023 due date. The following is a high-level schedule outlining the major milestones associated with the Housing Element and Safety Element Updates, Housing Action Plan, and associated CEQA requirements.

2.4.2. Proposed Schedule
9 Project Kick-off Meeting March 2022
9 Land Inventory Analysis March – April 2022
9 Draft RHNA Land Inventory March – April 2022
9 Stakeholder Outreach for Land Inventory March – April 2022 9 Final RHNA Land Inventory May 2022
9 Housing Priority Site Analysis March-May 2022
9 Draft Housing Priority Sites May 2022
9 Identify Potential Housing Priority Sites Partnerships May – June 2022 9 Final Housing Priority Sites June 2022
9 Existing Inventory & Assessment July – August 2022
9 Draft Housing Action Plan October 2022
9 Final Housing Action Plan December 2022
9 Existing Conditions and Needs September 2022
9 Review of Previous Housing Element October – November 2022 9 Stakeholder Consultations November 2022
9 Community Meetings November 2022 – January 2023
9 Administrative Draft Housing Element and Safety Element February 2023 9 Receive City Review of Administrative Drafts March 2023 9 Public Draft Housing Element and Safety Element April 2023 9 Meeting with Planning Commission to review Draft Housing Element and Safety Element April 2023
9 Start on General Plan EIR Addendum April – May 2023
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12 9 Submit Draft Housing Element to HCD for 60-Day Review May 2023 9 Call with HCD to received comments on Draft Housing Element June 2023 9 Draft Addendum to City for Review June 2023
9 Receive Findings Letter from HCD July 2023
9 Revise Housing Element and submit to HCD for Second 60-day Review August 2023
9 Receive Findings Letter from HCD October 2023
9 Final Addendum to City October – November 2023
9 Planning Commission Review of Adoption Draft Housing Element and Safety Element November 2023
9 City Council Review of Adoption Draft Housing Element and Safety Element By December 15, 2023
9 Submit Adopted Housing Element to HCD for 90-Day Review December 2023
9 HCD 90-Day Certification Review December 2023 – January 2024

2.4.3. Existing Conditions and Needs
Currently, HCD is not offering a streamlined review process. If that type of process becomes available before submittal of the Draft Housing Element to HCD, the Contractor will look into whether it is an option. Submittal for HCD review will also comply with Assembly Bill (AB) 215, which was recently approved and will go into effect in 2022.

2.4.4. Document Review
The contractor will review documents relevant to the Housing Element Update to gain an understanding of local conditions and needs. Documents will include, but are not limited to:

2.4.4.1.1. 2015–2023 Housing Element

2.4.4.1.2. All past communication with HCD, including any findings letters

2.4.4.1.3. General Plan

2.4.4.1.4. Housing Element annual progress reports

2.4.4.1.5. Zoning code

2.4.4.1.6. Any other applicable programs and ordinances

2.4.5. Review of Previous Housing Element
The Contractor will work closely with the City to determine the status, effectiveness, and appropriateness of the 2015–2023 housing programs.

The Contractor will gather and document all available information regarding specific accomplishments. The Contractor will identify content to drop, change, or add. Findings from the evaluation will be detailed in a matrix to be included in the draft Housing Element and used as a basis for program revisions for the remainder of the planning period. The Contractor will send EXHIBIT 1 - CONTRACT
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13 the review matrix to City staff to provide input before including it in the Administrative Draft Housing Element.

Deliverable:

2.4.5.1.1. Included in Administrative Draft, Review of Previous Housing Programs chapter.

2.4.6. Regional Housing Needs Allocation Assessment (RHNA) This task will be completed as part of the Land Inventory.

2.4.7. Assessment of Housing Needs

2.4.8. Assessment of Housing Needs Document
The contractor will create a housing needs analysis document pursuant to Government Code Section 65583 with data from the HCD pre-approved data packet, 2020 U.S. Census data, American Community Survey, and other relevant sources. The contractor will coordinate with staff to analyze housing needs and housing conditions using state-approved criteria. The housing needs analysis will include the following.

2.4.8.1.1. Population and Demographics: Population trends and projections, race and ethnicity, and population age.

2.4.8.1.2. Household Characteristics: Number, size, and type of existing households, and characteristics of lower-income households (including extremely low).

2.4.8.1.3. Employment and Income: Employment by industry, occupation of employed residents, and income trends.

2.4.8.1.4. Housing Stock Characteristics: Housing types and conditions, overcrowded households, and vacancy rates.

2.4.8.1.5. Housing Costs and Affordability: Home sale price trends, rental costs, affordability for households at all income levels, and overpayment.

2.4.8.1.6. Special Housing Needs: Special housing needs of persons with disabilities (including persons with developmental disabilities), seniors, large households, female-headed households.

2.4.8.1.7. At-Risk Housing: Inventory and analysis of existing affordable units at risk of converting to market rate during the planning period.

2.4.8.1.8. Opportunities for Energy Conservation: Pursuant to Senate Bill (SB) 375 and AB 32, an inventory and analysis of opportunities to encourage the incorporation of energy-saving features, energy-saving materials, and energy-efficient systems and design for residential development.

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14 2.4.8.1.9. Contractor will update financial, physical, and programmatic resources available for affordable housing programs, including local, state funding programs, and private-sector resources.

Deliverable:

2.4.8.1.10. Included in the Administrative Draft, Assessment of Housing Needs chapter.

2.4.9. Fair Housing Assessment
AB 686 requires each city or county to take actions to overcome patterns of segregation, address disparities in housing needs and access to opportunity, and foster inclusive communities. The City will need to include an assessment of fair housing practices, examine the relationship of available sites to areas of high opportunity, and include actions to affirmatively advance fair housing. The California Tax Credit Allocation Committee/HCD Opportunity Maps will be included and are intended to display the areas, according to research, that offer low-income children and adults the best chance at economic advancement, high educational attainment, and good physical and mental health. The goal of AB 686 is to ensure available sites for low-income housing are in high resource areas rather than concentrated in areas of high segregation and poverty. It will be important to demonstrate adequate sites throughout the county and meaningful actions to overcome geographic disparities. The Contractor shall prepare this analysis for the City to include in their Housing Element.

Deliverable:

2.4.9.1.1.1. Included in the Administrative Draft, Fair Housing Assessment chapter.

2.4.10. Housing Constraints
The Contractor will update the analysis of potential and actual governmental and nongovernmental constraints to meeting housing needs, including constraints to maintenance, improvement, and development of housing (pursuant to California Government Code Section 65583(a)(4,5)). Potential constraints to be reviewed include any land use controls, fees and exactions, permit processing procedures, building codes and code enforcement, land and construction costs, and the availability of financing.

The Contractor will identify potential programs and strategies to reduce or remove identified constraints. This task will include all the analysis needed to comply with recent updates to state housing law.

Deliverable:

2.4.10.1. Included in the Administrative Draft, Constraints chapter.

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15 2.4.10.2. Housing Goals, Policies, Programs, and Quantified Objectives
The Contractor will work with the City to update goals, policies, programs, and quantified objectives (pursuant to Government Code Sections 65583 et seq.) to address identified housing needs and constraints based on the effectiveness and continued appropriateness of existing programs, information received through public outreach, the analysis of constraints, and findings from the needs assessment. Programs will describe specific steps for implementation and will identify a time frame and responsible department. Programs will address:

2.4.10.2.1. All new state requirements since the adoption of the existing Housing Element

2.4.10.2.2. Consistency and compliance with the rest of the City General Plan elements and community goals

2.4.10.2.3. Development controls and regulatory incentives

2.4.10.2.4. Housing opportunities for all City residents, including the elderly, those with disabilities, the homeless, and other specialneeds groups

2.4.10.2.5. Fair housing programs

2.4.10.2.6. Sources of affordable housing funding

2.4.10.2.7. Preserving and improving existing affordable housing

2.4.10.2.8. Facilitating the development of adequate housing and infrastructure to meet the needs of low- and moderate-income households in keeping with the regional fair-share allocation

2.4.10.2.9. Mitigating any governmental constraints to providing and improving housing
Deliverable:

2.4.10.2.9.1. Included in the Administrative Draft; Goals, Policies, Programs and Quantified Objectives chapter.

2.4.11. Preparation of Draft Housing Element

2.4.12. Administrative Draft Housing Element
The Contractor will incorporate the feedback received during the community meetings and stakeholder consultations into a comprehensive, formatted Administrative Draft Housing Element. The Contractor will submit the Administrative Draft Housing Element to City staff for review as an electronic copy in Microsoft Word. Any outstanding data still needed from the City will be flagged in the Administrative Draft Housing Element so it can be addressed during City staff’s review. The Contractor request to receive one consolidated set of City comments on the Administrative Draft.

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16 Deliverable:

2.4.12.1.1.1. One electronic copy (in MS Word) of the Administrative Draft Housing Element.

2.4.13. Public Review Draft Housing Element
The Contractor will address staff comments on the Administrative Draft and reply to any questions. The Contractor will incorporate comments and revisions from City staff’s review of the Administrative Draft, as directed. The Contractor shall then prepare and submit a Public Review Draft Housing Element to present to both the Planning Commission at a public hearing.

Deliverables:

2.4.13.1.1.1. One electronic copy (in MS Word and PDF and Excel) of the Public Review Draft Housing Element.

2.4.13.1.1.2. 10 hardcopies and a flash drive with the documents of the Public Review Draft Housing Element to the City.

2.4.14. HCD Review of Housing Element

2.4.14.1. During the 60-day state review periods, the Contractor will serve as the City’s liaison to HCD. This service will include:

2.4.14.2. Submittal of the draft Housing Element to HCD (60-day review).

2.4.14.3. Calls and emails with HCD staff to discuss comments.

2.4.14.4. Incorporating HCD’s requested revisions.

Deliverables:

2.4.14.4.1.1. An electronic and hardcopy submittal to HCD, including cover letter of the Housing Element.

2.4.14.4.1.2. Emails and memorandums to address HCD questions and comments, as needed.

2.4.14.4.1.3. Memos with proposed revisions to the Housing Element resulting from HCD comments incorporated into the
Housing Element in a tracked-changes format for review
and approval by City staff.

2.4.15. Adopted Final Housing Element
The Contractor will prepare a final Housing Element that incorporates any changes to the public draft from City staff, HCD, or public comments received. In addition, pursuant to SB 6 (Chapter 667, Statutes of 2019), for a Housing Element adopted on or after January 1, 2021, an electronic copy of the final inventory of the land inventory parcels using HCD-approved Excel spreadsheets must be prepared and submitted to HCD with the Housing Element.

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17 Deliverables:

2.4.15.1.1.1. Upon adoption of the Final Housing Element, Contractor will prepare a final adopted version with the date of adoption prominently displayed on the front cover and throughout the document to distinguish it as the official document from other versions of the General Plan Elements.

2.4.15.1.1.2. Electronic copies (in MS Word and PDF and Excel) of the Adopted Housing Element and Electronic Sites Inventory to the City and to HCD with a cover letter for their 90-day review.

One clean version and one showing all changes made will be included.

2.4.15.1.1.3. Hard copies (one clean version and one showing all changes made) will be submitted to HCD.

2.4.15.1.1.4. 10 hardcopies and a flash drive with the documents of the Final Housing Element to the City.

2.4.16. General Plan Amendment

2.4.17. Land Use Element Amendments (if applicable)
If changes are needed to the City’s Land Use Element, zoning or land use are necessary to address the City’s RHNA, the Contractor shall prepare a memo listing the recommended changes.

Deliverables:

2.4.17.1.1. Prepare memo (Word and PDF format) to City identifying recommended changes to the City’s Land Use Element and
Land Use Map for consistency with the adopted 2023-2031 Housing Element.

2.4.18. Safety Element Amendments
Based on the Contractor’s review of the RFP and review of available City plans and resources, including the General Plan, the Local Hazard Mitigation Plan, and regional resources, the Contractor shall prepare the associated budget for amendments to the Safety Element.

2.4.18.1. Conduct Climate Change Vulnerability Assessment The Contractor will prepare a communitywide climate change vulnerability assessment (CCVA or vulnerability assessment) that meets the standards in the California Government Code and clearly identifies climate change stressors, hazards, impacts, and vulnerabilities expected to be present in Stockton. The City’s CCVA will look at the threat posed by climate-related hazards in the community, such as drought, flooding, extreme heat, extreme EXHIBIT 1 - CONTRACT
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18 the weather, human health hazards, wind, and wildfire, and to what extent the threat from these hazards may change in the future. The CCVA will identify the populations and assets in the community that may be affected by these hazards, including populations (persons likely to be disproportionately harmed), buildings and infrastructure, economic drivers, community services, and ecosystems. The Contractor will assess the vulnerability of populations and assets for all relevant climate hazards by looking at impact and adaptive capacity. The Contractor will rely on the most accurate and up-to-date science using resources such as Cal-Adapt, the California Fourth Climate Assessment, Delta Adapts and other supporting reports from the Delta Stewardship Council, peer-reviewed scientific studies, publications from academic institutions, and other credible regional, state, and national sources.

Assessment of impact and adaptive capacity will be translated into an overall vulnerability score, ranging from low to high. This scoring will help identify the priority populations/assets most susceptible to the effects of natural hazards, which will guide development of the updated Safety Element. The Contractor will present the results of this assessment in a summary report. These reports will inform the topics to be addressed in the climate adaptation and resilience goals, policies, and implementation programs of the updated element.

Deliverables:

2.4.18.1.1. Memo presenting method and approach to vulnerability assessment and list of climate hazards and
populations/assets for inclusion (electronic, Word and PDF)

2.4.18.1.2. Vulnerability assessment scoring matrix with memo summary (draft and final, electronic, Word and PDF)

2.4.18.1.3. Up to three virtual meetings with staff to discuss the hazards, populations, assets, and services, preliminary vulnerability assessment scoring and staff comments, and final scoring and summary (phone/video conference)

2.4.18.2. Review Evacuation Routes
Recent changes to state law require that Safety Elements updated after January 2022 must identify evacuation routes in the community and their capacity, safety, and viability to allow for effective evacuations under emergency conditions. The Contractor expect that planning for effective evacuations will be a key part of this update to the Safety Element, given the land use and circulation patterns and presence of hazard zones in Stockton.

The Contractor will ensure that the updated Safety Element address these and other state requirements. The Contractor will rely on the City and County’s evacuation route mapping as a starting point. This sub-task is expected to include the following steps, with the work bound by the level of effort estimated in the budget.
x Identify and map existing evacuation routes.

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19 x Identify evacuation scenarios and define hazard zones. The budget assumes the evaluation of two to three hazard or disaster scenarios. The contractor assumes at least one scenario would focus on a flood event.
x Review capacity of designated routes in the hazard zones, assuming this information (level of service and/or capacity data) is available from the recent General Plan and
environmental impact report (EIR) or other similar efforts led by the City or a regional agency. This task does not include preparation of a level of service study for the City’s roadway network.
x Assess risks and vulnerabilities for the hazard zones and evacuation routes, which includes a review of the location of the City’s mapped routes against the available hazard maps, demographics of affected areas, and results of the
vulnerability assessment.
x Identify goals, policies, and implementation programs to reduce risk and vulnerability.

Deliverables:

2.4.18.2.1.1. Memo confirming evacuation routes, evacuation scenarios, and hazard zones.

2.4.18.2.1.2. Tables of evacuation route capacities and identification of pinch points based on data availability for each zone.

2.4.18.2.1.3. Maps of evacuation routes, hazard zones, and vulnerable populations in each zone.

2.4.18.2.1.4. Recommendations for evacuating vulnerable populations within hazard zones.

2.4.18.3. Prepare Safety Element
The Contractor will initiate the project with a kick-off meeting to introduce the project team and allow for a review of project goals, communication protocols, project schedule, work plan, data needs, status of current and planned efforts that are relevant to the project, and the proposed approach to staff and community engagement. This meeting will also establish the project management procedures, including invoicing terms and communication protocols, and data collection approach. This meeting can occur with the kick-off of the Housing Element or as a stand-alone meeting.

Following identification of data needs and data collection, the Contractor will conduct a crosswalk review of the City’s Safety Element and related documents to assess applicability with Section 65302(g) of the California Government Code and assess the applicability and relevance of each Safety Element’s existing goals, policies, and actions. As part of the EXHIBIT 1 - CONTRACT
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20 crosswalk review, the Contractor will also review the City’s Local Hazard Mitigation Plan (LHMP), and supporting regional documents and applicable local studies, to identify analyses, maps, policies, actions, or other content that could support compliance with existing guidance and regulations. The Contractor understand the City’s Office of Emergency Services is currently updating the City’s LHMP and that the County is initiating an update to its LHMP later this year. The Contractor will review the LHMP as part of the Contractor’s crosswalk review and integrate applicable information. The Contractor will present the results of the Contractor’s crosswalk review in a spreadsheet that lists which revisions are needed to the Safety Element and why, what existing documents or other work can be leveraged to support these revisions, and any additional resources that may be needed. The Contractor will recommend integration of existing technical studies and analyses, policies, or other content, as well as updates of existing information and preparation of new content.

In addition, the Contractor will review the existing Safety Element’s goals, policies, and implementation actions and provide recommendations. For goals, policies, and actions that could be retained, the Contractor will note if they can be kept as written or revised to support consistency with state requirements or current conditions. This review involves consultation with City staff to learn more about the implementation and effectiveness of the Safety Element. The Contractor will present the results of this review in a matrix or table format in a Word document.

Following completion of the vulnerability assessment, evacuation analysis, and crosswalk review, Contractor will prepare a Safety Element that complies with applicable state laws, including the guidance issued by the Governor’s Office of Planning and Research (OPR) and California Governor’s Office of Emergency Services (Cal OES). The Contractor anticipates a focused update to the City’s Safety Element. The Contractor expect new climate change-related goals, policies, and actions to address risk and vulnerabilities of climate-related hazards, such as drought, extreme heat, severe weather, and others as identified in the vulnerability assessment. In addition, there will likely be new goals, policies, and actions to address any issues raised through the evacuation route analysis. The Contractor anticipate minor updates to goals, policies, and implementation actions to address other natural and human-made hazards, including flooding, seismic activity, landslides, hazardous materials, wildfire and smoke impacts, emergency preparedness, and response.

The Contractor will update background information, hazard-specific information and details, including mapping as applicable, and goals, policies, and actions to reduce exposure, risk, and vulnerability and promote community resilience. The Contractor will prepare policies that EXHIBIT 1 - CONTRACT
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21 are responsive to these issues and meet the requirements of the California Government Code, including improving safety and resiliency for people, public and private property, and infrastructure systems, as the well as the natural environment. As part of the Safety Element Update, the Contractor will prepare updated mapping for the community. These maps will identify areas at increased risk of natural hazards, locations of potentially vulnerable populations and assets, access in constrained neighborhoods, and evacuation routes.

To the extent necessary and appropriate, the Contractor will coordinate with Cal OES, OPR’s Integrated Climate Adaptation and Resiliency Program, the Department of Conservation’s California Geological Survey, Central Valley Flood Protection Board, and the Delta Stewardship Council.

The Contractor recommends review by state agencies 90 days in advance of review and consideration for adoption by the City Council.

The Contractor will prepare three drafts (administrative, public review, and public hearing drafts) and one final Safety Element. After receiving one set of consolidated staff comments on the Administrative Draft Safety Element, the Contractor will prepare a Public Review Draft Safety Element for distribution and review by community and agency stakeholders.

Following receipt of comments from the public and state agencies and direction from City staff on changes, the Contractor will prepare the Public Hearing Draft Safety Element for review and recommendation by the Planning Commission and consideration of adoption by the City Council.

Following review by the Planning Commission and City Council and direction from staff on changes, Contractor will prepare the Final Safety Element, inclusive of maps and supporting analyses.

City staff will participate in one community meeting, two public hearings, a kick-off meeting, and regular project coordination meetings. The Contractor’s scope and budget assumes the Safety Element will be combined with the Housing Element for final review by Planning Commission and City Council.

Deliverables:

2.4.18.3.1. Kick-off meeting attendance

2.4.18.3.2. Kick-off meeting agenda (electronic, Word)

2.4.18.3.3. Kick-off meeting summary (electronic, Word)

2.4.18.3.4. Data needs list (electronic, Word)

2.4.18.3.5. Memo summarizing crosswalk of existing plan review and spreadsheet of results (electronic, Word and PDF)

2.4.18.3.6. Matrix presenting review of existing Safety Element goals, policies, and actions (electronic, Word and PDF)

2.4.18.3.7. Meeting(s) with staff to review results (phone/video conference)
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22 2.4.18.3.8. Administrative Draft Safety Element – background content, goals, policies, actions, and maps (electronic, Word and PDF)

2.4.18.3.9. Public Review Draft Safety Element (electronic, Word and PDF)

2.4.18.3.10. Track changes edits to Public Review Draft (electronic, Word and PDF)

2.4.18.3.11. Public Hearing Draft Safety Element (electronic, Word and PDF)

2.4.18.3.12. Final Safety Element (electronic, Word and PDF)

2.4.18.3.13. Consultations with applicable state and regional agencies (phone/video conference)

2.4.18.3.14. Meetings with City staff (phone/video conference)

2.5. Environmental Review for Both Efforts

2.5.1. General Plan EIR Addendum
The focus of the project will be to update the Housing Element to meet the City’s RHNA and ensure compliance with new regulations. The use of an Addendum builds on the investment made in the City’s adopted General Plan, and significantly shortens the time period for consideration of the new Housing Element. Finally, provided that the City’s decision to use an Addendum is supported with substantial evidence in the record, the City’s decision enjoys the same substantial evidence level of challenge as the General Plan EIR.

The Contractor will provide an Administrative Draft Addendum following a format discussed during the kickoff meeting. The Contractor’s default format for an Addendum is short and follows the findings in CEQA Guidelines Section 15162 rather than using an initial study. If a formal initial study is requested, the Contractor will need to increase the budget and scope accordingly. The Contractor will use a copy of the certified General Plan EIR and findings of fact to inform the analysis portion of the Addendum. The Contractor will also include any local standards and ordinances that address physical changes to the environment. All significant impacts identified in the General Plan EIR will be revied in the context of the proposed changes. One administrative draft of the Addendum will be provided for review. The final draft of the Addendum will be used to support the CEQA determination during the hearing(s) for the Housing Element. Contractor’s environmental staff will attend a Zoom meeting to answer regarding the Addendum. This scope does not include physical attendance at a meeting; however, the Contractor would be happy to amend the scope/budget to attend meetings in person.

Deliverables:

2.5.1.1.1. Administrative Draft Addendum, Final Addendum, Assistance with Resolution and Staff Report Language.

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23 2.5.2. Tribal Consultation
The Contractor will assist the City by completing the Native American Heritage Commission (NAHC) online form requesting a tribal contact list. Using the addresses on the list from NAHC, the Contractor will draft letters (for distribution on City letterhead) to each of the tribes on the NAHC list inquiring whether they want consultation. Because an Addendum is not a publicly circulated document, compliance with AB 52 would not be required. However, if there is uncertainty regarding whether an Addendum will be the appropriate environmental document and a Mitigated Negative Declaration (MND) or subsequent EIR (SEIR) may be required, it may be prudent to notify tribes pursuant to AB 52.

Contractor can facilitate and attend the consultation(s) with any tribes requesting consultation; however, the City must be represented. Pursuant to SB 18, tribes identified by NAHC will receive a written letter notifying them of the proposed project and asking if they wish to consult; tribes who notified the City under AB 52 will also be notified of the project and asked if they desire to consult in accordance with AB 52 and Sections 21080.3.1 and 21080.3.2 of CEQA.

Following the consultation meeting (or conference call), Contractor will provide the written outcome of the process and a record for the environmental documentation showing that AB 52 consultation has been completed.

Completion of the AB 52 process is needed prior to circulation of the environmental document for public review. Completion of the SB 18 process is needed prior to acting on the project.

Deliverables:

2.5.2.1.1. Draft letter to NAHC; Draft letters to identified tribes; Facilitation, attendance, and documentation of requested consultations; and written results of consultation, including closure of AB 52 consultation.

2.5.3. SB 18 and AB 52 Consultation
If an Addendum is prepared for the proposed project, only SB 18 compliance is required. If an SEIR is prepared, compliance with both SB 18 and AB 52 will be required.

The Contractor will complete the NAHC online form requesting a tribal contact list. Using the addresses on the list from NAHC, Contractor will draft letters (on City letterhead) to each of the tribes inquiring whether they want consultation. In addition to the NAHC list, letters will also be prepared for any tribes who have requested consultation pursuant to AB 52. As consultation for AB 52 and Section 21080.3.1 of CEQA is a government-to-government process, it must be initiated by the local government agency, and cities are usually represented at the consultation(s). The Contractor can facilitate and attend the consultation(s); EXHIBIT 1 - CONTRACT
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24 however, the City must be represented. Pursuant to SB 18, tribes identified by NAHC will receive a written letter notifying them of the proposed project and asking if they wish to consult; tribes who notified the City under AB 52 will also be notified of the project and asked if they desire to consult in accordance with AB 52 and Sections 21080.3.1 and 21080.3.2 of CEQA. Following the consultation meeting (or conference call), the Contractor will provide the written outcome of the process and a record for the environmental documentation showing that AB 52 consultation has been completed. Completion of the AB 52 process is needed prior to circulation of the environmental document for public review. Completion of the SB 18 process is needed prior to acting on the project.

Deliverables:

2.5.3.1.1.1. Draft letter to NAHC; draft letters to identified tribes; facilitation, attendance, and documentation of requested consultations; and written results of consultation, including closure of AB 52 consultation.

2.6. Housing Element Outreach and Meetings

2.6.1.1. Task 5.1 Stakeholder Consultation
The Contractor recommends conducting virtual/phone stakeholder consultations with organizations representing different socio-economic members of the community to identify housing needs. The Contractor have found these consultations to be a valuable way of getting targeted input. The Contractor will work with City staff to develop a list of 10 to 12 organizations, and the Contractor will conduct a phone or email survey to discuss the issues and housing-related needs of their clients.

Deliverable:

2.6.1.1.1.1. Summary of six to eight completed consultations to be included in the Housing Element.

2.6.2. Community Meetings
The Contractor will work with City staff to develop and implement an approach to engaging with the community that will build on the targeted engagement that has already occurred as part of the Land Inventory, and during the stakeholder consultations. The Contractor envision the community meetings occurring early in the process to introduce the Housing Element Update to the community and to gather input on housing issues and potential policy solutions. The Contractor propose two workshops covering the same content occurring during the same the workshop if possible – one virtual and one in-person.

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25 Traditional in-person meetings have been restricted due to COVID-19.

Although restrictions have begun to lift, the Contractor learned over the course of the last year and a half that virtual engagement can often result in greater participation and the ability to reach people who cannot attend inperson meetings. Contractor proposes to host one virtual workshop and one in-person workshop and prepare materials, including the PowerPoint presentation. This presentation will be designed to inform and ask questions for residents and stakeholders to respond. In addition, during the virtual workshop The Contractor will use polling tools and other electronic methods of gauging public opinion.

Deliverables:

2.6.2.1.1. Attendance at one virtual workshop and one in-person workshop. Contractor is happy to have a Spanish-speaking staff person attend the workshops to translate if desired by the City.

2.6.2.1.2. Promotional flyer and announcements (in English and Spanish)

2.6.2.1.3. PowerPoint presentation (PowerPoint can be translated into Spanish for posting on the City’s the website if desired by the City)

2.6.2.1.4. Live polling exercises during the virtual workshop

2.6.2.1.5. Summary notes incorporated into the Housing Element

2.6.3. Planning Commission and City Council Hearings
The Contractor propose three public hearings. One hearing each with the Planning Commission to present the Draft Housing Element prior to submitting it to HCD, then one public hearing with the Planning Commission to recommend adoption, and one public hearing with the City Council for adoption of the Housing Element.

Deliverables:

2.6.3.1.1. Provide information for staff reports, draft and final PowerPoint presentations for each meeting, assuming inperson attendance at three public hearings.

2.7. Supportive Tasks

2.7.1. Fatal Flaw and Infrastructure Analysis for “Priority Areas” (used for future funding discussions)
To facilitate housing production in Priority Areas, the City may wish to consider funding optional infrastructure analysis. The scope and cost of this optional work can vary substantially, depending on whether the EXHIBIT 1 - CONTRACT
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26 infrastructure analysis is limited to a specific catalyst site, or covers a larger focus area. Additionally, the scope and cost will vary depending on whether the infrastructure analysis covers a single key infrastructure system that is identified as being constrained, or if it covers an in-depth analysis of all infrastructure systems. The following analysis can be prepared for individual Housing Priority Sites where the City would like more information than is needed for the Addendum. The intent of these tasks is to provide the City with a fatal flaw analysis to determine if conditions on the site could hinder future development potential.

2.7.1.1. Conduct a Phase 0 screening assessment, which includes review of databases, aerials, topographic maps, and Sanborn map. A Phase 0 could identify potential sites of concern that may need a full Phase I or to go straight to a Phase II, if the land use history identifies a former gas station, factory, dry cleaners, etc.

2.7.1.2. Conduct a Phase I ESA in accordance with the American Society for Testing and Materials (ASTM) Standards on Environmental Site Assessments, ASTM E 1527-13 (ASTM 1527-13) and in
accordance with the USEPA Standards and Practices for All Appropriate Inquiries (40 CFR 312), published November 2005.

The goal of an ASTM Phase I is to evaluate site history, existing observable conditions, current site use, and current and former uses of surrounding properties to identify the potential presence of “Recognized Environmental Conditions (RECs)” associated with the site.

2.7.1.3. Conduct desktop analysis including working with City departments for infrastructure, cultural resources, biological resources, and qualitative noise review

2.7.2. Additional Community Engagement
The engagement process for the HAP could be expanded to include more public involvement. Contractor anticipates conducting 3 additional workshops in the 3 neighborhoods and up to 3 meetings on up to 10 priority sites. Meetings for priority sites will be grouped by neighborhood to include multiple sites with similar stakeholders, ownership, and issues at one meeting.

2.7.3. Case Studies and Best Practices Research
The contractor will prepare white papers and analysis as requested by the City. It is anticipated one white paper will address the subject of the State Pro-Housing Designation and another on potential funding/financing tools.

One additional white paper can be prepared as requested by the City.

3. Notices
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27 Pursuant to Exhibit C – General Terms and Conditions, Paragraph 15 – Notices, the mailing address for all required notices is as follows:

Contractor: PlaceWorks City: City of Stockton
Jennifer Gastelum Attn: City Manager
101 Parkshore Drive, Suite 112 425 N. El Dorado Street
Folsom, California 95630 Stockton, CA 95202
placeworks.com
916.804.3910

4. Key Personnel
Amy Sinsheimer, AICP,
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1 EXHIBIT B

INSURANCE REQUIREMENTS
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). Please see the attached flyer regarding PINS Advantage.

Exhibit B:

Insurance Requirements for Consulting Services
Consultant shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property that may arise from or In connection with the performance of the work hereunder by the Consultant, its agents, representatives, or employees.

MINIMUM SCOPE AND UMIT 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 with limits no less than$1,000,000 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 Number CA 0001 covering, Code 1 (any auto), or if Consultant has no owned autos, Code 8 (hired) and 9 (nonowner), with a 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 a limit of no less than $1,000,000 per accident for bodily injury or disease. (Not required If the Consultant provides written verification, it has no employees}

4. Professional Liability (Errors and Omissions) Insurance appropriate to the Consultant's profession, with a limit of no less than $1,000,000 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 1 - CONTRACT
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2 representation is made that the minimum insurance requirements of this agreement are sufficient to cover the obligations of the Consultant 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 Consultant 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 Consultant's insurance (at least as broad as ISO Form CG 20 10 1185 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 the 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 Consultant's policy shall be "primary and noncontributory" and will not seek contribution from the City's insurance or self-insurance and shall be at least as broad as CG 20 010413. The City of Stockton does not accept endorsements limiting the Consultant'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.

Waiver of Subrogation
Consultant hereby grants to the City of Stockton a waiver of any right to subrogation which any insurer of said Consultant may acquire against the City of Stockton by virtue of the payment of any loss under such insurance. The consultant 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 EXHIBIT 1 - CONTRACT
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3 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 Consultant, 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 Consultant to purchase coverage with 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-applicable 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 claimsmade policy form with a Retroactive Date prior to the contract effective date, the Consultant must purchase "extended reporting" coverage for a minimum of five (5) years after completion of the contract work.

Verification of Coverage
Consultant shall furnish the City of Stockton with original certificates and amendatory endorsements or copies of the applicable policy language affecting 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 Consultant'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.

Consultant 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
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4 Consultants 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. Consultant shall include the following language in their agreement with Subcontractors: Subcontractors hired by Consultant agree to be bound to Consultant and City in the same manner and to the same extent as Consultant 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.

The consultant shall provide proof of such compliance and verification to the City upon request.

Special Risks or Circumstance
The 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
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EXHIBIT C

GENERAL TERMS AND CONDITIONS

1. Goods, Equipment and Services. Subject to the terms and conditions set forth in this Agreement, Contractor shall provide to City the services described in Exhibit A of the Agreement. Contractor shall provide said services at the time, place and in the manner specified in Exhibit A of the Agreement.

2. City Assistance, Facilities, Equipment and Clerical Support. Except as set forth in Exhibit A, Contractor shall, at its sole cost and expense, furnish and maintain all facilities and equipment that may be required for furnishing services pursuant to this Agreement. If applicable, City shall furnish to Contractor only the facilities and equipment listed in Exhibit A to the Agreement.

3. Compensation. City shall pay Contractor for services rendered pursuant to this Agreement as described more particularly in Exhibit A and Exhibit E to the Agreement.

3.1Invoices submitted by Contractor to City must contain a brief description of work performed, time spent and City reference number. Within thirty (30) days of receipt of Contractor’s invoice, City will review invoice, and if acceptable make payment on approved invoice.

3.2 Upon completion of work and acceptance by City, Contractor 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. The City shall have no obligation or liability to pay any invoice for work performed which the Contractor fails or neglects to submit within sixty (60) days, or any extension thereof granted by the City, after the work is accepted by the City.

4. Sufficiency of Contractor’s Work. All Contractor services, work, and deliverables shall be performed in a good and workmanlike manner with due diligence in accordance with the degree of skill normally exercised by similar contractors supplying services and work of a similar nature, and in conformance with applicable laws, codes and professional standards. Contractor’s work shall be adequate and sufficient to meet the purposes of this Agreement.

5. Ownership of Work. All reports, work product, all other documents completed or partially completed by Contractor or its approved subcontractors, in performance of this Agreement, and if applicable, drawings, designs, and plan review comments shall become the property of the City. Any and all copyrightable subject matter in all materials is hereby assigned to the City and the Contractor and its approved subcontractors agree EXHIBIT 1 - CONTRACT
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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 Agreement. If any materials are lost, damaged or destroyed before final delivery to the City, the Contractor shall replace them at its own expense.

Contractor and its approved subcontractors shall keep materials confidential. Materials shall not be used for purposes other than performance of services under this Agreement and shall not be disclosed to anyone not connected with these services, unless the City provides prior written consent.

6. Timeliness. Time is of the essence in this Agreement. Further, Contractor acknowledges that the failure of Contractor to comply with the time limits described in Exhibit A and Exhibit F may result in economic or other losses to the City.

7. Changes. Both parties to this Agreement understand that it may become desirable or necessary during the term of this Agreement for City to modify the scope of services provided for under this Agreement. Any material extension or change in the scope of work shall be discussed with City and the change and cost shall be memorialized in a written amendment to the original contract prior to the performance of the additional work. Until the amendment is so executed, City will not be responsible to pay any charges Contractor may incur in performing such additional services, and Contractor shall not be required to perform any such additional services.

8. Amendment. No variation of the terms of this Agreement shall be valid unless an amendment is made in writing and signed by both parties.

9. Contractor’s Status.

9.1 In performing the obligations set forth in this Agreement, Contractor shall have the status of an independent contractor and Contractor shall not be considered to be an employee of the City for any purpose. All persons working for or under the direction of Contractor are its agents and employees and are not agents or employees of City. Contractor by virtue of this Agreement, has no authority to bind or incur any obligation on behalf of City. Except as expressly provided in Exhibit A, Contractor has no authority or responsibility to exercise any rights or power vested in the City. No agent, officer or employee of the City is to be considered an employee of the Contractor.

It is understood by both Contractor and City that this Agreement shall not be construed or considered under any circumstances to create an employer-employee relationship or a joint venture.

9.2 Contractor shall determine the method, details and means of performing the work and services to be provided by Contractor under this Agreement. Contractor shall be responsible to City only for the requirements and results specified in this Agreement and, except as expressly provided in this Agreement, shall not be subjected to City's EXHIBIT 1 - CONTRACT
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control with respect to the physical action or activities of Contractor in fulfillment of this Agreement. Contractor has control over the manner and means of performing the services under this Agreement. If necessary, Contractor has the responsibility for employing other persons or firms to assist Contractor in fulfilling the terms and obligations under this Agreement.

9.3 If in the performance of this Agreement any third persons are employed by Contractor, such persons shall be entirely and exclusively under the direction, supervision and control of Contractor. All terms of employment including hours, wages, working conditions, discipline, hiring and discharging or any other term of employment or requirements of law shall be determined by the Contractor.

9.4 It is further understood and agreed that Contractor must issue W-2 forms or other forms as required by law for income and employment tax purposes for all of Contractor's assigned personnel under the terms and conditions of this Agreement.

10. Subcontractor.

10.1 Subcontractors shall not be recognized as having any direct or contractual relationship with City. Contractor shall be responsible for the work of subcontractors, which shall be subject to the provisions of this Agreement. Subcontractors will be provided with a copy of the Agreement and be bound by its terms. Contractor is responsible to City for the acts and omissions of its subcontractors and persons directly or indirectly employed by them.

10.2 If in the performance of this Agreement any third persons are employed by Contractor, such persons shall be entirely and exclusively under the direction, supervision and control of Contractor. 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 Contractor.

10.3 It is further understood and agreed that Contractor must issue W-2 forms or other forms as required by law for income and employment tax purposes for all of Contractor’s personnel.

11. Termination.

11.1 Termination for Convenience of City. The City may terminate this Agreement at any time by mailing a notice in writing to Contractor. The Agreement shall then be deemed terminated, and no further work shall be performed by Contractor. If the Agreement is so terminated, the Contractor shall be paid for the work actually completed at the time the notice of termination is received.

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11.2 Should either party default in the performance of this Agreement or materially breach any of its provisions, the other party, at that party’s option, may terminate this Agreement by giving written notification to the other party.

11.3 Funding- Non-Appropriation. It is mutually understood between the Parties that payment to the Contractor for performance shall be dependent upon the availability of appropriations by the City Council for the purposes of this Agreement. No legal liability on the part of the City for any payment may arise under this Agreement until funds are made available and until the Contractor has received funding availability, which will be confirmed in writing. If funding for any fiscal year is reduced or deleted, or if the City loses funding for any reason, the City, in its sole discretion, shall have the option to either (a) cause this Agreement to be canceled or terminated pursuant to applicable provisions of the Agreement; or (b) offer to amend the Agreement to reflect the reduced funding for this Agreement.

12. Non-Assignability. The Contractor shall not assign, sublet, or transfer this Agreement or any interest or obligation in the Agreement without the prior written consent of the City, and then only upon such terms and conditions as City may set forth in writing. Contractor shall be solely responsible for reimbursing subcontractors.

13. Indemnity and Hold Harmless. To the fullest extent permitted by law, Contractor shall hold harmless, defend at its own expense, and indemnify the City of Stockton, its officers, employees, agents, and volunteers, against any and all liability, claims, losses, damages, or expenses, including reasonable attorney’s fees, arising from all acts or omissions of contractor or its officers, agents, or employees in rendering services under this contract; excluding, however, such liability, claims, losses, damages, or expenses arising from the City of Stockton’s sole negligence or willful acts.

The duty to defend and the duty to indemnify are separate and distinct obligations. The indemnification obligations of this section shall survive the termination of this agreement.

14. Insurance. During the term of this Agreement, Contractor shall maintain in full force and effect at its own cost and expense the insurance coverage as set forth in the attached Exhibit B to this Agreement and shall otherwise comply with the other provisions of Exhibit B to this Agreement.

15. Notices. All notices herein required shall be in writing and shall be sent by certified or registered mail, postage prepaid, addressed in Exhibit A to this Agreement.

16. 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 Agreement on the basis of any legally protected classification, including race, color, national origin, ancestry, sex or religion of such person.

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17. Licenses, Certifications and Permits. Prior to the City’s execution of this Agreement and prior to the Contractor’s engaging in any operation or activity set forth in this Agreement, Contractor shall obtain a City of Stockton business license, which must be kept in effect during the term of this Agreement. Contractor covenants that it has obtained all certificates, licenses, permits and the like required to perform the services under this Agreement. Such licenses, certificates and permits shall be maintained in full force and effect during the term of this Agreement.

18. Records and Audits. Contractor shall maintain all records regarding this Agreement and the services performed for a period of three (3) years from the date that final payment is made. At any time during normal business hours, the records shall be made available to the City to inspect and audit. To the extent Contractor renders services on a time and materials basis, Contractor shall maintain complete and accurate accounting records, in a form prescribed by City or, if not prescribed by City, in accordance with generally accepted accounting principles, such records to include, but not be limited to, payroll records, attendance cards, time sheets, and job summaries.

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

20. Conflicts of Interest. Contractor covenants that other than this Agreement, Contractor has no financial interest with any official, employee or other representative of the City. Contractor 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 Contractor’s services under this Agreement. If such an interest arises, Contractor shall immediately notify the City.

21. Waiver. In the event either City or Contractor at any time waive any breach of this Agreement by the other, such waiver shall not constitute a waiver of any other or succeeding breach of this Agreement, whether of the same or of any other covenant, condition or obligation. No payment, partial payment, acceptance, or partial acceptance by City shall operate as a waiver on the part of City of any of its rights under this Agreement.

22. Governing Law. California law shall govern any legal 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.

23. No Personal Liability. No official or employee of City shall be personally liable to Contractor in the event of any default or breach by the City or for any amount due Contractor.

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24. Severability. If any portion of this Agreement or application thereof to any person or circumstance shall be declared invalid by a court of competent jurisdiction or if it is found in contravention of any federal, state or city statue, ordinance or regulation the remaining provisions of this Agreement or the application thereof shall not be invalidated thereby and shall remain in full force and effect to the extent that the provisions of this Agreement are severable.

25. Non-Discrimination. During the performance of this Agreement, Contractor and its officers, employees, agents, representatives or subcontractors shall not unlawfully discriminate in violation of any federal, state, or local law, rule or regulation against any employee, applicant for employment or person receiving services under this Agreement because of race, religion, color, national origin, ancestry, physical or mental disability, medical condition (including genetic characteristics), marital status, age, political affiliation, gender identity, gender expression, sex or sexual orientation, family and medical care leave, pregnancy leave, or disability leave. Contractor and its officers, employees, agents, representative or subcontractors shall comply with all applicable Federal, State and local laws and regulations related to non-discrimination and equal opportunity, including without limitation the City’s nondiscrimination policy; the Fair Employment and Housing Act (Government Code sections 12990 (et seq.); California Labor Code sections 1101, 1102 and 1102.1; the Federal Civil Rights Act of 1964 (P.L. 88-352), as amended; and all applicable regulations promulgated in the California Code of Regulation or Code of Federal Regulations. 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 requires compliance with the requirements of Title VI in all of its programs and activities regardless of funding source.

26. Force Majeure. Neither party shall be responsible for delays or failures in performance resulting from acts of God, acts of civil or military authority, terrorism, fire, flood, strikes, war, epidemics, pandemics, shortage of power or other acts or causes reasonably beyond the control of that party. The party experiencing the force majeure event agrees to give the other party notice promptly following the occurrence of a force majeure event, and to use diligent efforts to re-commence performance as promptly as commercially practicable.

27. Taxes and Charges. Contractor shall be responsible for payment of all taxes, fees, contributions or charges applicable to the conduct of the Contractor’s business.

28. Cumulative Rights. Any specific right or remedy provided in this Agreement will not be exclusive but will be cumulative of all other rights and remedies to which may be legally entitled.

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29. Advice of Attorney. Each party warrants and represents that in executing this Agreement, it has received independent legal advice from its attorneys or the opportunity to seek such advice.

30. Heading Not Controlling. Headings used in this Agreement are for reference purposes only and shall not be considered in construing this Agreement.

31. Entire Agreement, Integration, and Modification.

31.1 This Agreement represents the entire integrated agreement between Contractor and the City; supersedes all prior negotiations, representations, or agreements, either written or oral between the parties and may be amended only by a written Amendment signed by the Contractor and City Manager.

31.2 All Exhibits to this Agreement and this Agreement are intended to be construed as a single document.

32. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original. All counterparts shall be construed together and shall constitute one agreement.

33. Authority. The individual(s) executing this Agreement represent and warrant that they have the legal capacity and authority to do so on behalf of their respective legal entities.

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EXHIBIT D

PROFESSIONAL SERVICES SPECIAL TERMS AND CONDITIONS

1. Definitions. The following words and phrases have the following meanings for purposes of this Agreement:

1.1 "Services" means, collectively, the services, duties and responsibilities described in Exhibit A of this Agreement and any and all work necessary to complete them or carry them out fully and to the standard of performance required in this Agreement.

1.2 “Deliverable” means quantifiable goods or services that will be provided upon completion of a project. A deliverable is any tangible material, work or thing delivered by one party to the other, including associated technical documentation. A deliverable can be tangible or intangible parts of the development process, and often are specified functions or characteristics of the project.

2. General. The following terms and conditions are applicable for the Professional Services only. The special conditions shall be read in conjunction with the Standard Agreement, General Terms and Conditions (“GTC”) Exhibit C, and all other Exhibits identified in the Standard Agreement.

2.1 Where any portion of the GTC is in conflict to or at variance with any provisions of the Special Conditions of the Agreement, then unless a different intention stated, the provision(s) of the Special Conditions of the Agreement shall be deemed to override the provision(s) of GTC only to the extent that such conflict or variations in the Special Conditions of the Agreement are not possible of being reconciled with the provisions of the GTC.

2.2 In the case of modification of a part or provision of the GTC, the unaltered part or provision, or both shall remain in effect. The Special Conditions shall relate to a particular project and be peculiar to that project but shall not weaken the character or intent of the GTC.

3. Time for Performance.

3.1 Contractor shall perform the services according to the schedule contained in Exhibit F.

3.2 Timeliness of Performance i) Contractor shall provide the Services, and Deliverables within the term and within the time limits required under this Agreement, pursuant to the provisions of Exhibit A and Exhibit F. ii) Neither Contractor nor Contractor’s agents, employees nor subcontractors are entitled to any damages from the City, nor is any party entitled to be reimbursed by the City, for damages, charges or other EXHIBIT 1 - CONTRACT
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2 (Rev. 10.30.18)
losses or expenses incurred by Contractor by reason of delays or hindrances in the performance of the Services, whether or not caused by the City.

4. Standard of Performance
In addition to Exhibit C, Section 4 and 17, Contractor agrees as follows:

4.1 Contractor’s Services shall be performed in accordance with generally accepted professional practices and principles and in a manner consistent with the level of care and skill ordinarily exercised by members of Contractor’s profession currently practicing under similar conditions. Contractor shall comply with the profession’s standard of performance, applicable laws, regulations, and industry standards. By delivery of completed work, Contractor certifies that the work conforms to the requirements of this Agreement and all applicable federal, state and local laws. If Contractor is retained to perform services requiring a license, certification, registration or other similar requirement under California law, Contractor shall maintain that license, certification, registration or other similar requirement throughout the term of this Agreement.

4.2 Contractor acknowledges that it is entrusted with or has access to valuable and confidential information and records of the City and with respect to that information, Contractor agrees to be held to the standard of care of a fiduciary. Contractor shall assure that all services that require the exercise of professional skills or judgment are accomplished by professionals qualified and competent in the applicable discipline and appropriately licensed, if required by law. Contractor must provide copies of any such licenses. Contractor remains responsible for the professional and technical accuracy of all Services or Deliverables furnished, whether by Contractor or its subcontractors or others on its behalf. All Deliverables must be prepared in a form and content satisfactory to the Using Agency and delivered in a timely manner consistent with the requirements of this Agreement.

4.3 If Contractor fails to comply with the foregoing standards, Contractor must perform again, at its own expense, all Services required to be re-performed as a direct or indirect result of that failure. Any review, approval, acceptance or payment for any of the Services by the City does not relieve Contractor of its responsibility for the professional skill and care and technical accuracy of its Services and Deliverables. This provision in no way limits the City’s rights against Contractor either under this Agreement, at law or in equity.

5. Compensation

5.1 In addition to Section 3 Compensation in Exhibit C – GTC, the Contractor shall be compensated for the services provided under this Agreement as follows:

5.1.1 Contractor shall be compensated for services rendered and accepted under this Agreement and shall be paid monthly, in arrears on a not to exceed EXHIBIT 1 - CONTRACT
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basis, based upon the rates set forth in Exhibit E attached hereto and made a part of this Agreement. Contractor may vary the compensation for each task in Exhibit E provided that the total project compensation listed in Exhibit E and the Standard Agreement is not exceeded.

6. Personnel

6.1 None of the work or services covered by this Agreement shall be subcontracted without the prior written approval of the City. Any work or services subcontracted hereunder shall be specified by written agreement and shall be subject to each provision of this Agreement. Contractor shall provide subcontractor a copy of this fully executed Agreement.

6.2 Contractor agrees to assign only competent personnel according to the reasonable and customary standards of training and experience in the relevant field to perform services under this Agreement. Failure to assign such competent personnel shall constitute grounds for termination of this Agreement. The payment made to Contractor pursuant to this Agreement shall be the full and complete compensation to which Contractor and Contractor’s officers, employees, agents, and subcontractors are entitled for performance of any work under this Agreement. Neither Contractor nor Contractor’s officers or employees are entitled to any salary or wages, or retirement, health, leave or other fringe benefits applicable to employees of the City. The City will not make any federal or state tax withholdings on behalf of Contractor. The City shall not be required to pay any workers' compensation insurance on behalf of Contractor. Contractor shall pay, when and as due, any and all taxes incurred as a result of Contractor’s compensation hereunder, including estimated taxes, and shall provide City with proof of such payments upon request.

6.3 Key Personnel: Because of the special skills required to satisfy the requirements of this Agreement, Contractor shall not reassign or replace key personnel without the written consent of the City, which consent the City will not unreasonably withhold. "key personnel" means those job titles and the persons assigned to those positions in accordance with the provisions of this Agreement. The City may at any time in writing notify Contractor that the City will no longer accept performance of Services under this Agreement by one or more Key Personnel listed. Upon that notice Contractor shall immediately suspend the services of the key person or persons and must replace him or them in accordance with the terms of this Agreement. A list of key personnel is found in Exhibit A, Scope of Services.

7. Reports and Information
Contractor shall at such times and in such forms as the City may require furnish the City such periodic reports as it may request pertaining to the work or services undertaken pursuant to this Agreement, the costs and obligations incurred or to be incurred in connection therewith, and any other matters are covered by this Agreement as specified in Exhibit A and Exhibit E.

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8. Findings Confidential
All of the reports, information, data, et cetera, prepared or assembled by the Contractor under this Agreement are confidential and the Contractor agrees that they shall not be made available to any individual or organization without the prior written approval of the City. Contractor shall not be required under the provisions of this paragraph to keep confidential any data or information which is or becomes publicly available, is required by applicable law or by proper legal or governmental authority, is already rightfully in the Contractor’s possession without obligation of confidentiality, is independently developed by Contractor outside the scope of this Agreement or is rightfully obtained from third parties. Contractor shall give City prompt notice of any such legal or governmental demand and reasonably cooperate with City in any effort to seek a protective order or otherwise to contest such required disclosure.

9. Copyright
No materials, including but not limited to reports, maps, or documents produced as a result of this Agreement, in whole or in part, shall be available to Contractor for copyright purposes. Any such materials produced as a result of this Agreement that might be subject to copyright shall be the property of the City and all such rights shall belong to the City, and the City shall be sole and exclusive entity who may exercise such rights.

10. Deliverables
Contractor shall prepare or provide to the City various Deliverables. "Deliverables" include work product, such as written reviews, recommendations, reports and analyses, produced by Contractor for the City. The City may reject Deliverables that do not include relevant information or data, or do not include all documents or other materials specified in this Agreement or reasonably necessary for the purpose for which the City made this Agreement or for which the City intends to use the Deliverables. If the City determines that Contractor has failed to comply with the foregoing standards, it has 30 days from the discovery to notify Contractor of its failure. If Contractor does not correct the failure, or if it is possible to do so, within 30 days after receipt of notice from the City specifying the failure, then the City, by written notice, may treat the failure as a default of this Agreement.

Partial or incomplete Deliverables may be accepted for review only when required for a specific and well-defined purpose and when consented to in advance by the City. Such Deliverables will not be considered as satisfying the requirements of this Agreement and partial or incomplete Deliverables in no way relieve Contractor of its commitments under this Agreement.

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EXHIBIT E

COMPENSATION SCHEDULE
The Contractor shall be compensated for the services identified in Exhibit A, Exhibit C, and Exhibit D to this Agreement as follows:

1. Project Price

1.1 The maximum the Contractor shall be paid on this Agreement is $599,786 (hereafter the “not to exceed” amount). The “not to exceed” amount includes all payments to be made pursuant to this Agreement, including City approved reimbursable expenses, if any. Nothing in this Agreement requires the City to pay for work that does not meet the Standard of Performance identified in Exhibit D section 4 or other requirements of this Agreement.

1.2 The Contractor shall be entitled to receive payments for its work performed pursuant to the Agreement. The City will pay Contractor based on invoices for acceptable work performed and approved until the “not to exceed” amount is reached.

Thereafter, Contractor must complete services based on the Agreement without additional compensation unless there is a material change to the Statement of Work and Scope by a written Amendment.

1.3 If work is completed before the “not to exceed” amount is reached, the Contractor’s compensation will be based on the Contractor’s invoices previously submitted for acceptable work performed and approved.

1.4 Subcontractor Costs: Compensation for subcontractors shall be limited to the same restrictions imposed on the Contractor.

2. Task Price. Below is the price for the services and reimbursable expenses as described in Exhibit A of this Agreement.

Task Description Task Price
0 Project Kick-Off $23,409
1 Land Inventory $30,829
2 Housing Action Plan $196,075
3 Housing and Safety Element Update $126,297
4 Environmental Review $11,332
5 Outreach and Meetings $36,607
6 Additional Items $180,345
7 Direct Costs $6,224
TOTAL PRICE $599,786

3. Hourly Rates. The following is a list of hourly billable rates that the Contractor shall apply for additional services requested of the Contractor. The Contractor shall be EXHIBIT 1 - CONTRACT
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compensated based on the hourly rates set forth below, on a time and material basis for those services that are within the general scope of services of this Agreement, but beyond the description of services required under Exhibit A, and all services are reasonably necessary to complete the standards of performance required by this Agreement. Any changes and related fees shall be mutually agreed upon between the parties by a written amendment to this Agreement.

Hourly Billable Rate Schedule
Title Role on Project
Hourly
Billable
Rates
Jennifer Gastelum Principal in Charge $225
Amy Sinsheimer Project Manager $180
Charlie Knox Senior Advisor $240
Senior Associate $165
Project Planner $125
Karla Martinez Project Planner, Outreach $115
Tammy Seale Principal, Sr. Advisor, SE $230
Eli Krispi Project Manager, SE $175
Mark Teague Principal, CEQA $230
Patrick Hindmarsh Senior Associate, CEQA $210
Denise
Clendening
Associate Principal $195
Miles Barker Project Planner, CEQA $115
Rob Mazur Senior Associate, GIS $180
Giselle Vandrick Project Planner, GIS $180
Graphics $115
Tech Editor $115
WP/Clerical $115

4. Invoice to Address. Each invoice submitted shall identify the specific task(s) listed in Exhibit A and this Exhibit, and the completed work product/deliverable for the agreed upon price listed in this Exhibit. Invoices shall be submitted to the below address:

City of Stockton Community Development Department
Attention: Matt Diaz
425 N. El Dorado Street
Stockton, CA 95202
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EXHIBIT F

TIMELINE

1. Consultant shall complete the requested services identified in Exhibit A as follows:

1.1 TIMELINE FOR COMPLETION OF WORK
Task Proposed Timeline
Project Kick-off Meeting and Project Management
Project KickͲoff Meeting March 2022
Land Inventory
Land Inventory Analysis March – April 2022
Draft RHNA Land Inventory May 2022
Stakeholder Outreach for Land Inventory May – June 2022 Final RHNA Land Inventory July 2022
Housing Priority Site Analysis May – July 2022
Draft Housing Priority Sites July 2022
Identify Potential Housing Priority Sites
Partnerships
July – August 2022
Final Housing Priority Sites August 2022
Task 2: Housing Action Plan
Existing Inventory & Assessment July – August 2022
Draft Housing Action Plan November 2022
Final Housing Action Plan January 2023
2023-2031 Housing Element and Safety Element and Associated CEQA Review and Outreach
Existing Conditions and Needs September 2022
Review of Previous Housing Element October – November 2022 Stakeholder Consultations November 2022
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Task Proposed Timeline
Community Meetings November 2022 – January 2023
Administrative Draft Housing Element
and Safety Element
February 2023
Receive City Review of Administrative
Drafts
March 2023
Public Draft Housing Element and Safety
Element
April 2023
Meeting with Planning Commission to
review Draft Housing Element and Safety
Element
April 2023
Start on General Plan EIR Addendum April – May 2023
Submit Draft Housing Element to HCD for
60ͲDay Review
May 2023
Call with HCD to received comments on
Draft Housing Element
June 2023
Draft Addendum to City for Review June 2023
Receive Findings Letter from HCD July 2023
Revise Housing Element and submit to
HCD for Second 60Ͳday Review
August 2023
Receive Findings Letter from HCD October 2023
Final Addendum to City October – November 2023
Planning Commission Review of Adoption
Draft Housing Element and Safety
Element
November 2023
City Council Review of Adoption Draft
Housing Element and Safety Element
By December 15, 2023
Submit Adopted Housing Element to HCD
for 90ͲDay Review
December 2023
HCD 90ͲDay Certification Review December 2023 – March 2024 EXHIBIT 1 - CONTRACT
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Exhibit G
CARES Act
Special Funding Terms and Conditions
The City has entered into this Agreement using funds governed by the Coronavirus Relief Fund. The funding available is governed under section 601(d) of the Social Security Act, as added by section 5001 of the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”). The CARES Act established the Coronavirus Relieve Fund (the “Fund”). Under the CARES Act, the Fund is to be used for payments for specified uses to certain local governments.

The following terms and conditions are applicable for the funds governed by the CARES ACT only. These special conditions shall be read in conjunction with the Standard Agreement, General Terms and Conditions (“GTC”) Exhibit C, and all other Exhibits identified in the Standard Agreement.

Where any portion of the GTC is in conflict to or at variance with any provisions of the CARES Act Special Funding Terms and Conditions of the Agreement, then unless a different intention stated, the provision(s) of the CARES Act Special Funding Terms and Conditions of the Agreement shall be deemed to override the provision(s) of GTC only to the extent that such conflict or variations in the CARES Act Special Funding Terms and Conditions of the Agreement are not possible of being reconciled with the provisions of the GTC.

In the case of modification of a part or provision of the GTC, the unaltered part or provision, or both shall remain in effect. The CARES Act Special Funding Terms and Conditions shall relate to a particular project and be peculiar to that project but shall not weaken the character or intent of the GTC. In consideration of the mutual promises contained in this Agreement, the City and Contractor agree as follows:

1. SURVIVAL OF PROMISES. All promises, requirements, terms, conditions, provisions, representations, guarantees, and warranties contained herein shall survive the Agreement expiration or termination date unless specifically provided otherwise herein, or unless superseded by applicable federal or state statutes of limitation.

2. SEPARATE ACCOUNTING. Contractor shall establish a separate account for all funds specified in this Agreement and shall use the funds to purchase necessary supplies, defray travel, and will employ the necessary personnel to perform the Work specified in this Agreement. Contractor shall also establish and maintain, if applicable, such accounting and documentation of matching expenditures of the Contractor to satisfy the requirements of the project.

3. AUDIT. The City, and any other appropriate government agencies authorized by law, or their duly authorized representatives shall, until five (5) years after final payment under this Agreement, have access to any of the Contractor’s records related to this Agreement, at the Contractor’s regular place of business, for the purpose of conducting audits. The period of access for records relating to a) appeals under a dispute, b) litigation or settlement of claims arising from the performance of this Agreement, or c) costs and expenses of this Agreement to which exception has been taken shall continue until such appeals, litigation, claims, or exceptions are disposed of.

4. AUTHORIZED USE OF FUNDS. The Contractor shall use or expend the funds provided by this Agreement only for the purposes for which they were appropriated. Further, the funds provided by the City shall be used by the Contractor only for the purpose and activities specified in the Agreement, including associated attachments and exhibits which are attached hereto and incorporated herein by reference as if fully set forth herein.

5. COMPLIANCE WITH COST PRINCIPLES AND RELATED REGULATIONS. The Contractor shall not be reimbursed for expenditures under this Agreement that do not comply with the CARES Act and Related Regulations that are incorporated.

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6. PUBLICATIONS. The Contractor shall be free to publish results of the Work provided that the terms of the project are met and the review copies of materials intended for publication are submitted to the City’s project Director at least 15 days prior to publication.

7. DELAYS. Contractor shall notify the City promptly of any expected delay in performance of services.

However, Contractor shall not be liable for delays in performance beyond reasonable control.

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City of Stockton
Legislation Text
File #: 22-0260, Version: 1

APPROVE A MOTION AUTHORIZING AND RATIFYING THE CITY MANAGER SUBMISSION OF A

GRANT APPLICATION FOR A CALIFORNIA STATE LIBRARY GRANT - THE BUILDING

FORWARD INFRASTRUCTURE PROGRAM FOR THE CHAVEZ LIBRARY REMODEL PROJECT

RECOMMENDATION
It is recommended that City Council approve a motion authorizing and ratifying the City Manager’s submission of a grant application to the California State Library requesting an award of up to $10,000,000 from the Building Forward Library Infrastructure 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 motion.

Summary
The California State Budget Act of 2021 (SB129, Chapter 69, Statutes of 2021) allocated $439 million in one-time funds to the California State Library to address life-safety and critical maintenance needs of public library facilities throughout California. The California State Library Grant: Building Forward Library Infrastructure Program (“Infrastructure Grant”) prioritizes library facilities in high poverty areas such as Stockton. The City of Stockton 2021-2026 Capital Improvement Plan (“CIP”) includes the Cesar Chavez Library Remodel (“Project)” with a budget of $8,080,000. The CIP budget is not sufficient for the current critical needs and deferred maintenance of the Chavez Library. Library staff have sought additional funding opportunities for this Project.

The Infrastructure Grant is a competitive grant that focuses on prioritizing infrastructure projects for local libraries located in high poverty areas of the State of California. This grant has a short application period of less than 60 days. The application period will close on March 21, 2022, before a staff report could be submitted with the full application for review and approval by City Council.

DISCUSSION
Background
The Stockton-San Joaquin County Public Library System provides free library services at 16 library branches to 781,600 residents in San Joaquin County. The Cesar Chavez Library (“Chavez Library”) is a 70,000 square foot facility first dedicated in 1964 and partially remodeled in 2004. Chavez Library serves as the Central Library, or “hub” of the library system, housing a central library book collection, special historical collections, the Community Services administration department, technical services, and delivery staff who support library operations.

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Years of deferred maintenance have affected the practical use of the facility. The building is outdated, and modifications have been hindered by the cost of removing hazardous materials such as asbestos in the floor tiles, spray-on fireproofing, pipe fittings, and roofing. The current floorplan, deteriorating interior, and operating systems need updating for modern library customer needs.

In 2016 the Measure M ballot initiative was passed, and a long-range expenditure plan was created.

The plan has earmarked $8,080,000 for the Cesar Chavez Library renovation project, which begins in FY2022-23. The Public Works department estimates that the allotted Measure M funding will not cover a majority of the needs for a meaningful renovation of the Chavez Library.

In the fall of 2021, the State Library announced the Building Forward Library Infrastructure Program Grant. It will be funded by the State of California in Fiscal Year 2021-22 and administered by the California State Library. The grant intends to expand library services and program opportunities in underserved communities across California. Guidelines allow a library system of our size to apply for an award not to exceed $10,000,000. Staff is seeking the full $10,000,000 based on the overall estimated costs of the Project. The Infrastructure Grant requires a dollar-for-dollar match for the Project; however, the required match is predicated on the Library’s Local Income Per Capita (“LIPC”) level, which is derived from the California Public Library’s Survey Data. Our Library’s LIPC is considered a Level 2, which allows the match to be reduced by 50%. Should the City be awarded the full 10,000,000, the maximum required City match would be $5,000,000. It is recommended the remaining $3,080,000 be held for contingency, FF&E, and other essential construction costs not deemed eligible for grant funding use.

Present Situation
The Infrastructure Grant application period opened on February 4, 2022 with a submittal deadline of March 21, 2022.

Staff recommends that City Council approve a motion authorizing and ratifying the City Manager’s submission of a grant application to the California State Library requesting an award of up to $10,000,000. The staff will return to City Council for authorization to accept the grant and refine the matching funds CIP schedule if the grant is awarded.

FINANCIAL SUMMARY
There is no impact to the general fund or any other unrestricted funds as a result of taking the recommended action.

Staff will return to City Council for authority to accept the grant and confirm funding. The allocation of $5,000,000 in matching funds has been identified in the Strong Communities Expenditure Plan.

Those matching funds will be appropriated via the annual Capital Improvement Plan budget process.

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City of Stockton
Legislation Text
File #: 22-0143, Version: 1

AUTHORIZE SUBMITTAL OF GRANT APPLICATION FOR EQUITABLE COMMUNITY

REVITALIZATION GRANT PROGRAM

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

1. Authorize the City Manager, or designee, to submit a grant application to the California Department of Toxic Substances Control for the Equitable Community Revitalization Grant Program.

2. If awarded, authorize the City Manager, or designee, to accept the grant award, conduct all negotiations, sign and submit all documents including applications, agreements, amendments, and payment requests, and make all necessary appropriations in compliance with and for the purposes stated in the grant application.

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

Summary
In 2021, Governor Newsom signed legislation referred to as the Cleanup in Vulnerable Communities Initiative, allocating $500 million to expedite the cleanup and beneficial reuse of contaminated properties, with priority given to properties in historically vulnerable and disadvantaged communities.

The Department of Toxic Substances Control’s Office of Brownfields Equitable Communities Revitalization Grant (ECRG) will provide more than $250 million in grants to incentivize cleanup and investment in disadvantaged areas of California.

California local governments, nonprofits and federally and non-federally recognized tribes are eligible to apply. Grants will be awarded following an application process, with funds available for community -wide assessments, environmental investigations, and environmental cleanups that support beneficial reuses, such as recreational uses, commercial enterprises, and housing.

Staff recommends the submittal of a grant application in the amount of up to $7,000,000 for the ECRG Program. This grant does not have a local match requirement. Staff recommends the adoption of the proposed resolution.

DISCUSSION
Background
On October 16, 2018, City Council accepted and executed a Brownfields Coalition Community-Wide City of Stockton Page 1 of 2 Printed on 3/16/2022
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Assessment Grant agreement (“Brownfields Grant”) with the U.S. Environmental Protection Agency.

As part of the Brownfields Grant, the City contracted with Stantec for the development of the City’s Brownfields Site Revitalization Program, which includes Phase I and II Environmental Site Assessment (ESA), Remedial Action Plan, and site-specific cleanup/reuse planning to ready properties and areas for productive reuse. The Brownfields Grant has advanced environmental assessments at sites throughout the waterfront and Downtown area, providing an opportunity for the City to pursue funding for further environmental investigations and cleanups.

The City is being assisted in the grant application process by the Center for Creative Land Recycling, who has been contracted by the State to provide technical assistance to applicants. Staff will also be supported by the Brownfields Grant work undertaken by Stantec, including the many ESAs that have been completed.

Present Situation
The California Department of Toxic Substances Control estimates it will allocate $70.5 million for the first fiscal year of the ECRG Program. Funding can be pursued for community-wide assessments, environmental investigations, and environmental cleanups. The maximum award per application is $7,000,000 for environmental cleanups, while the minimum application award is $80,000.

FINANCIAL SUMMARY
ECRG applications may request no less than $80,000 and no more than $7,000,000. There is no matching funds requirement and there is no impact to the City’s General Fund or any other unrestricted fund as a result of the recommended action.

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Resolution No.

STOCKTON CITY COUNCIL

RESOLUTION OF CITY COUNCIL OF THE CITY OF STOCKTON APPROVING THE

APPLICATION FOR EQUITABLE COMMUNITY REVITALIZATION GRANT

PROGRAM
The State Department of Toxic Substances Control has been delegated the responsibility by the Legislature of the State of California for the administration of the Equitable Community Revitalization Grant Program; and
The City of Stockton is an eligible applicant under the Equitable Community Revitalization Grant Program; and
The Program aligns with ongoing efforts to assess and cleanup Brownfields sites in Downtown Stockton; now, therefore,

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

1. Hereby approves the filing of an application through the Equitable Community Revitalization Grant Program.

2. Delegates the authority to the City Manager, or designee, to accept the grant award, conduct all negotiations, sign and submit all documents, including, but not limited to applications, agreements, amendments, and payment requests.

3. Agrees to comply with all applicable federal, state, and local laws, ordinances, rules, regulations, and guidelines.

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 22, 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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City of Stockton
Legislation Text
File #: 22-0198, Version: 1
ADOPT AN ORDINANCE AMENDING TITLE 3, CHAPTER 3.96, SECTIONS 3.96.020 AND

3.96.030 AND ADDING SECTIONS 3.96.040, 3.96.050, 3.96.060, 3.96.070, 3.96.080, 3.96.090,

3.96.100, 3.96.110, 3.96.120, AND 3.96.130 OF THE STOCKTON MUNICIPAL CODE, RELATING

TO THE ESTABLISHMENT OF COMMUNITY IMPROVEMENT DISTRICTS

RECOMMENDATION
It is recommended that the City Council adopt an ordinance amending Title 3, Chapter 3.96, sections

3.96.020 and 3.96.030 and adding sections 3.96.040, 3.96.050, 3.96.060, 3.96.070, 3.96.080,

3.96.090, 3.96.100, 3.96.110, 3.96.120, and 3.96.130 of the Stockton Municipal Code, relating to the establishment of Community Improvement Districts.

Summary
City staff recommends Council enact the attached proposed revisions to Chapter 3.96 of the Stockton Municipal Code (“SMC”) relating to Community Improvement Districts (Attachment A - Redline Ordinance). Considering the elimination of the Stockton Redevelopment Agency, this amendment will allow existing Stockton business districts new mechanisms to establish innovative ways of attracting, retaining, and expanding their businesses to remain competitive with other areas in the region. One way to create such a district is through a Community Improvement District (CID) which provides greater flexibility to meet local needs than other tools. City staff recommends that the SMC Chapter 3.96 be revised to support the above, which allows for the creation of a CID within the boundaries of the City of Stockton.

DISCUSSION
Background
Considering the elimination of California Redevelopment Agencies, the City of Stockton is proposing an amendment to the existing ordinance to improve the overall environment for its residents, property owners, and business owners and allow new methods for long-term economic development.

Stockton contains many neighborhoods and downtown mixed-use (residential and commercial) property owners that could benefit from property-based assessment districts to enhance the security, safety, appearance, and economic viability.

A CID is a community driven partnership with the City to improve the quality of life in neighborhoods and mixed-use commercial districts. They are enacted through a local enabling ordinance that allows for establishing a new special benefit district. Allowing CID’s provides cities greater flexibility to neighborhoods and corridors that have existing districts or those that wish to form new districts. It also serves as a response to the needs of businesses and property owners. It can provide a funding mechanism for economic development programs and initiatives through community-driven partnerships.

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Existing Property and Business Improvement Districts (PBID), the Downtown Stockton Alliance and the Miracle Mile Improvement District both currently provide a strong unified voice for their respective districts and represent the business and community interests to local government agencies and investors. Much like PBIDs, authorized by the Streets and Highways code, a CID is a voluntary funding mechanism where property owners, business owners, or a combination of the two are levied a special assessment to fund services that benefit the district. Benefits to businesses or residents may include the development of public space, marketing efforts, organization and promotion of special community events, business attraction and retention initiatives, beautification and decorations and advocacy. In addition, maintenance may include landscaping, cleaning of public rights of way, additional trash removal, security services over and above local police, installation of security cameras, graffiti removal and special lighting. Districts could also include residential property owners in areas with mixed-use developments. The ordinance will allow the inclusion of residential properties at initial formation or a later date. The funds and services are administered by an existing or newly established non-profit entity that pays the assessments, including merchants, property owners, residents, and stakeholder organizations.

Historically, the two PBIDs in Stockton, the Miracle Mile Improvement District and the Downtown Stockton Alliance, have been able to provide additional maintenance, safety measures, and economic development activity such as organized events that drive traffic and recruitment of small businesses into the district. Districts have the ability to prioritize initiatives that best serve their neighborhood.

Present Situation
The establishment and presence of a PBID are beneficial to an area served to enhance and provide additional security, improve appearance with added maintenance, enrichment of marketing efforts, and overall economic viability. This ordinance amendment would provide a greater level of flexibility for the potential to form additional districts that could be either strictly business, residential, or a mix of business and residential. A CID can be created for a longer period of time than a PBID thus allowing longer-term certainty for future planning and investment. CID’s can also include residential and mixed-use areas, providing flexibility in creating districts that reflect the changing face of neighborhoods.

Business districts support the City’s recently approved Economic Development Strategic Action Plan (EDSAP) and aid in the development of Investment Area 1 to strengthen the local business climate to drive economic activity. The benefits of the establishment and presence of districts can retain existing businesses and attract desired businesses to Stockton. It can serve as a unifying mechanism for all stakeholders in a business district (merchants, property owners, and residents) to voluntarily work toward a common goal, that of an economically revitalized business district which is enjoyable to visit and shop and meets the community’s needs while also attracting repeat visitors from other areas.

Districts can help facilitate increased sales to existing businesses with marketing campaigns and by developing a vibrant environment.

With the amendment of Title 3, Chapter 3.96, four primary changes will occur to our existing ordinance:
· 3.96.070 lowers the percentage of ownership interest that needs to initially petition the Council to form a district (from 50 percent to 30 percent). Likewise, 3.96.120 provides an equally City of Stockton Page 2 of 3 Printed on 3/16/2022
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lowered percentage of ownership to petition Council to disestablish the district pursuant to Streets and Highway Code Section 36670(a)(2).
· 3.96.080 allows new cost categories to be included in the assessment for the district. These cost categories are those related to district formation. · 3.96.090 allows the Council to advance City funds to operate the district initially. The Resolution of Intention would dictate the terms of the advance (interest rate, duration, etc.) · 3.96.100 and 110 allow for longer terms & renewal terms, up from 10 to 20 years. This will reduce expenses associated with a renewal for the City and District.

It is recommended that the Stockton City Council adopt the proposed changes to SMC Chapter 3.96 relating to the establishment of Community Improvement Districts, providing greater flexibility to meet local needs.

FINANCIAL SUMMARY
There is no financial impact concerning the proposed amendment to SMC Chapter 3.96.

Attachment A - Redline Ordinance
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ATTACHMENT A
ORDINANCE NO.

AN ORDINANCE AMENDING TITLE 3, CHAPTER 3.96, SECTIONS 3.96.020 AND

3.96.030 AND ADDING SECTIONS 3.96.040, 3.96.050, 3.96.060, 3.96.070, 3.96.080,

3.96.090, 3.96.100, 3.96.110, 3.96.120, AND 3.96.130 OF THE STOCKTON

MUNICIPAL CODE, RELATING TO THE ESTABLISHMENT OF COMMUNITY

IMPROVEMENT DISTRICTS

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

SECTION I. AMENDMENT OF CODE.

Title 3, Chapter 3.96, Section 3.96.020 of the Stockton Municipal Code is amended and shall read as follows:

3.96.020 Purpose Alternative Procedures.

California Streets and Highways Code (Sections 36600 et seq.) provides procedures to form property and business improvement districts. This chapter incorporates that State law and specifies how the City Council may choose to augment those State law provisions by choosing to: (1) expand the activities which may be conducted by the district; (2) have the district encompass and assess property that is zoned residential; and (3) extend the initial term of the district to a maximum of 10 years, unless a longer term is authorized by State law. Through proceedings under this chapter, the City Council may establish districts, which shall be called “community improvement districts,” and may finance enhancements through annual assessments apportioned among parcels of real property within such districts. It is the intent of this chapter to provide a vehicle for financing improvements and activities that supplement and enhance existing City services. District formation and assessment proceedings may not be initiated under this chapter to finance services that replace or supplant existing City services. Nothing herein shall be construed as prohibiting the establishment of property and business improvement districts or such other districts under any other ordinance or any other law of the State of California.

A. The procedures established in this chapter shall be additional or alternative to any other procedure established by ordinance or state law and are intended to supplement those procedures.

B. In forming assessment districts to fund activities and improvements that confer a special benefit on property, the City Council may elect to use the procedures set forth in the Property and Business Improvement District Law of 1994 (Streets & Highways Code §§ 36600 et seq. (the “PBID Law”) as modified by this chapter. The City Council shall be bound by, and comply with, applicable state law governing the establishment and operation of property and business improvement districts in all respects not inconsistent 211

ATTACHMENT A
with this chapter. In the event of inconsistent provisions of this chapter and those of the PBID Law, the provisions in this chapter shall prevail.

C. An assessment district established pursuant to this chapter shall be denominated a “Community Improvement District” or “district” and the assessment levied in connection with such a district shall be denominated a “Community Improvement Assessment” or “assessment.”
D. Except where otherwise provided in this chapter, “Community Improvement District” shall have the meaning given to “Property and Business Improvement District” by Section 36614.5 of the PBID Law and each reference in the PBID Law to a “property and business improvement district” or a “district” shall be deemed also a reference to a “Community Improvement District.”
E. Except where otherwise provided in this chapter, “Community Improvement Assessment” shall have the meaning given to “assessment” by Section 36606.5 of the PBID Law and each reference in the PBID Law to an “assessment” shall be deemed also a reference to a “Community Improvement Assessment.”
SECTION II. AMENDMENT OF CODE.

Title 3, Chapter 3.96, Section 3.96.030 of the Stockton Municipal Code is amended and shall read as follows:

3.96.030 Community improvement district provisions augmenting State law requirements governing property and business improvement districts Establishment of District.

A. In forming assessment districts that will fund improvements and activities that confer special benefit on businesses, residential, commercial or residential and commercial property, the City Council may elect to use the procedures set forth in California Street and Highways Code Sections 36600 et seq., or may elect to use those procedures as modified herein. The City Council shall be bound by, and comply with, the applicable State law governing the formation of property and business improvement and maintenance districts in all other respects not inconsistent with this chapter when forming an assessment district to fund improvements and activities that provide special benefits to business, commercial and/or residential property.

B. Notwithstanding Streets and Highways Code Section 36613 or any other provision of State law, the City Council may form a community improvement district authorized to conduct the following activities in addition to those stated in Section 36613:

1. Maintenance and irrigation of landscaping;

2. Providing managerial services for businesses engaged in the business of providing multifamily housing;
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ATTACHMENT A

3. Providing building inspection and code enforcement services for businesses engaged in the business of providing multifamily housing supplemental to those normally provided by the City.

C. Notwithstanding Streets and Highways Code Section 36622(h) or any other provision of State law, the City Council may form a community improvement district authorized to levy assessments for an initial term of up to 10 years or such longer term which may be authorized by State law.

D. Notwithstanding Streets and Highways Code Sections 36632(c) or any other provision of State law, the City Council may form a community improvement district authorized to levy assessments on real property, including property zoned solely for residential use, on the basis of the estimated benefit to the real property within the district.

The City Council may classify properties for purposes of determining the benefit to property of the improvements and activities pursuant to this section and may determine that property zoned solely for residential use may benefit from the improvements and activities of the district.

The City Council may establish Community Improvement Districts and levy assessments in connection with such Districts pursuant to this chapter.

SECTION III. AMENDMENT OF CODE.

Title 3, Chapter 3.96, Sections 3.96.040, 3.96.050, 3.96.060, 3.96.070, 3.96.080,

3.96.090, 3.96.100, 3.96.110, 3.96.120, and 3.96.130 are added to the Stockton Municipal Code and shall read as follows:

3.96.040 Additional Activities.

Notwithstanding Section 36606 of the PBID Law or any other provision of State law, the City Council may form a Community Improvement District authorized to conduct any or all of the following activities in addition to those stated in Section 36606:

A. Maintenance and irrigation of landscaping;
B. Providing managerial services for businesses engaged in the business of providing multifamily housing;
C. Providing building inspection and code enforcement services for businesses engaged in the business of providing multifamily housing supplemental to those normally provided by the City.

3.96.050 Relationship of Assessments to Zoning.
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Notwithstanding the requirements of Section 36632 of the PBID Law, any parcel of real property, regardless of the zoning of such parcel, may be included in a Community Improvement District and subject to an assessment in connection therewith, so long as such parcel specially benefits from the services and improvements funded by that District.

3.96.060 Assessment Against Real Property.

Only assessments against real property may be levied in connection with a Community Improvement District.

3.96.070 Initiation of Proceedings.

In lieu of the requirements of Section 36621(a) of the PBID Law, the City Council may initiate proceedings to form a Community Improvement District upon the submission of a written petition, signed by property owners in the proposed District who will pay more than 30 percent of the assessments proposed to be levied in connection with such District. The amount of assessment attributable to property owned by the same property owner that is in excess of 20 percent of the amount of all assessments proposed to be levied, shall not have any percentage over the 20 percent threshold be included in determining whether the petition is signed by property owners who will pay more than 30 percent of the total amount of assessments proposed to be levied.

3.96.080 Formation Costs.

If so provided in the engineer’s report for a Community Improvement District, the assessment levied in connection with such a District may include amounts sufficient to recover the costs incurred in forming the District, including:

A. The costs of preparation of the management plan and engineer's report required by State law; and
B. The cost of preparing, circulating and submitting the petition to the City Council seeking establishment of the District; and
C. The costs of printing, advertising, and the giving of published, posted, or mailed notices; and
D. Compensation of any consultant, engineer, or attorney employed to render services in proceedings under this chapter or the PBlD Law; and E. Costs incurred by the City for public hearings, notices, ballots and other proceedings required by law for approval of a new or increased assessment.

The engineers report shall specify the formation costs eligible for recovery through assessments, the schedule for recovery of those costs, and the basis for determining the amount of the additional assessment for recovery of costs, including the maximum 214

ATTACHMENT A
amount of the additional assessment, expressed either as a dollar amount, or as a percentage of the underlying assessment.

3.96.090 Advancement of Costs.

The City Council may, in the Resolution of Intention for a Community Improvement District, provide that if the District is established, funds may be advanced from the City’s general fund to permit the operation of the District prior to the City’s collection of the assessment. Such advance shall occur only after the establishment of the District, and no advance shall be made if the District is not established. Any such advance may not exceed the total anticipated assessment proceeds for the first year of the assessment.

Any such advance must be recovered from assessment proceeds as provided in the Resolution of Intention, along with interest calculated at a rate set forth in the Resolution of Intention. The duration of any such advance shall not exceed five years.

3.96.100 Duration.

The duration of a new Community Improvement District shall be no greater than specified in the Resolution of Intention for the District, and shall in no event be in excess of 20 years. This section is intended to supplant any shorter limitation set forth in the PBID Law on the duration of assessments levied in connection with an assessment district.

3.96.110 Renewal.

A Community Improvement District may be renewed for successive periods not to exceed 20 additional years each by following the procedures set forth in the PBID Law.

3.96.120 Disestablishment.

The City Council may, on its own initiative, at any time, adopt a resolution of intention to disestablish a Community Improvement District and shall adopt a such a resolution if, during the annual thirty-day period set forth in Section 36670(a)(2) of the PBID Law, the City Council receives a written petition requesting disestablishment signed by property owners who pay more than 30 percent of the assessments levied in connection with the District. This section provides an alternative method for the initiation of proceedings to disestablish a Community Improvement District and shall not be interpreted to preempt the existence of other methods set forth in Section 36670 of the PBID Law. A resolution of intention adopted pursuant to this section shall have the same effect, and trigger the same notice and hearing requirements, as a resolution of intention otherwise adopted pursuant to Section 36670 of the PBID Law.

3.96.130 Validity.

As provided under Section 36633 of the PBID Law, the validity of an assessment levied under this chapter shall not be contested in any action or proceeding unless the action 215

ATTACHMENT A
or proceeding is commenced within 30 days after the resolution levying the assessment is adopted. Any appeal from a final judgment in an action or proceeding shall be perfected within 30 days after the entry of judgment.

SECTION IV. SEVERABILITY.

If any section of this ordinance or the application thereof to any person or circumstance is held invalid, the invalidity shall not affect other provisions or applications of the act which can be given without the invalid provisions or application, and to this end the provisions of this act are severable.

SECTION V. EFFECTIVE DATE.

This ordinance shall take effect and be in full force thirty (30) days after its passage.

ADOPTED: ___________________
EFFECTIVE: ___________________
_____________________________
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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ORDINANCE NO.

AN ORDINANCE AMENDING TITLE 3, CHAPTER 3.96, SECTIONS 3.96.020 AND

3.96.030 AND ADDING SECTIONS 3.96.040, 3.96.050, 3.96.060, 3.96.070, 3.96.080,

3.96.090, 3.96.100, 3.96.110, 3.96.120, AND 3.96.130 OF THE STOCKTON

MUNICIPAL CODE, RELATING TO THE ESTABLISHMENT OF COMMUNITY

IMPROVEMENT DISTRICTS

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

SECTION I. AMENDMENT OF CODE.

Title 3, Chapter 3.96, Section 3.96.020 of the Stockton Municipal Code is amended and shall read as follows:

3.96.020 Alternative Procedures.

A. The procedures established in this chapter shall be additional or alternative to any other procedure established by ordinance or state law and are intended to supplement those procedures.

B. In forming assessment districts to fund activities and improvements that confer a special benefit on property, the City Council may elect to use the procedures set forth in the Property and Business Improvement District Law of 1994 (Streets & Highways Code §§ 36600 et seq. (the “PBID Law”) as modified by this chapter. The City Council shall be bound by, and comply with, applicable state law governing the establishment and operation of property and business improvement districts in all respects not inconsistent with this chapter. In the event of inconsistent provisions of this chapter and those of the PBID Law, the provisions in this chapter shall prevail.

C. An assessment district established pursuant to this chapter shall be denominated a “Community Improvement District” or “District” and the assessment levied in connection with such a district shall be denominated a “Community Improvement Assessment” or “assessment.”
D. Except where otherwise provided in this chapter, “Community Improvement District” shall have the meaning given to “Property and Business Improvement District” by Section 36614.5 of the PBID Law and each reference in the PBID Law to a “property and business improvement district” or a “district” shall be deemed also a reference to a “Community Improvement District.”
E. Except where otherwise provided in this chapter, “Community Improvement Assessment” shall have the meaning given to “assessment” by Section 36606.5 of the PBID Law and each reference in the PBID Law to an “assessment” shall be deemed also a reference to a “Community Improvement Assessment.”
SECTION II. AMENDMENT OF CODE.

Title 3, Chapter 3.96, Section 3.96.030 of the Stockton Municipal Code is amended and shall read as follows:
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3.96.030 Establishment of District.

The City Council may establish Community Improvement Districts and levy assessments in connection with such Districts pursuant to this chapter.

SECTION III. AMENDMENT OF CODE.

Title 3, Chapter 3.96, Sections 3.96.040, 3.96.050, 3.96.060, 3.96.070, 3.96.080,

3.96.090, 3.96.100, 3.96.110, 3.96.120, and 3.96.130 are added to the Stockton Municipal Code and shall read as follows:

3.96.040 Additional Activities.

Notwithstanding Section 36606 of the PBID Law or any other provision of State law, the City Council may form a Community Improvement District authorized to conduct any or all of the following activities in addition to those stated in Section 36606:

A. Maintenance and irrigation of landscaping;
B. Providing managerial services for businesses engaged in the business of providing multifamily housing;
C. Providing building inspection and code enforcement services for businesses engaged in the business of providing multifamily housing supplemental to those normally provided by the City.

3.96.050 Relationship of Assessments to Zoning.

Notwithstanding the requirements of Section 36632 of the PBID Law, any parcel of real property, regardless of the zoning of such parcel, may be included in a Community Improvement District and subject to an assessment in connection therewith, so long as such parcel specially benefits from the services and improvements funded by that District.

3.96.060 Assessment Against Real Property.

Only assessments against real property may be levied in connection with a Community Improvement District.

3.96.070 Initiation of Proceedings.

In lieu of the requirements of Section 36621(a) of the PBID Law, the City Council may initiate proceedings to form a Community Improvement District upon the submission of a written petition, signed by property owners in the proposed District who will pay more than 30 percent of the assessments proposed to be levied in connection with such District. The amount of assessment attributable to property owned by the same property owner that is in excess of 20 percent of the amount of all assessments proposed to be levied, shall not have any percentage over the 20 percent threshold be included in determining whether the petition is signed by property owners who will pay more than 30 percent of the total amount of assessments proposed to be levied.
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3.96.080 Formation Costs.

If so provided in the engineer’s report for a Community Improvement District, the assessment levied in connection with such a District may include amounts sufficient to recover the costs incurred in forming the District, including:

A. The costs of preparation of the management plan and engineer's report required by State law; and
B. The cost of preparing, circulating and submitting the petition to the City Council seeking establishment of the District; and
C. The costs of printing, advertising, and the giving of published, posted, or mailed notices; and
D. Compensation of any consultant, engineer, or attorney employed to render services in proceedings under this chapter or the PBlD Law; and E. Costs incurred by the City for public hearings, notices, ballots and other proceedings required by law for approval of a new or increased assessment.

The engineers report shall specify the formation costs eligible for recovery through assessments, the schedule for recovery of those costs, and the basis for determining the amount of the additional assessment for recovery of costs, including the maximum amount of the additional assessment, expressed either as a dollar amount, or as a percentage of the underlying assessment.

3.96.090 Advancement of Costs.

The City Council may, in the Resolution of Intention for a Community Improvement District, provide that if the District is established, funds may be advanced from the City’s general fund to permit the operation of the District prior to the City’s collection of the assessment. Such advance shall occur only after the establishment of the District, and no advance shall be made if the District is not established. Any such advance may not exceed the total anticipated assessment proceeds for the first year of the assessment.

Any such advance must be recovered from assessment proceeds as provided in the Resolution of Intention, along with interest calculated at a rate set forth in the Resolution of Intention. The duration of any such advance shall not exceed five years.

3.96.100 Duration.

The duration of a new Community Improvement District shall be no greater than specified in the Resolution of Intention for the District, and shall in no event be in excess of 20 years. This section is intended to supplant any shorter limitation set forth in the PBID Law on the duration of assessments levied in connection with an assessment district.
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3.96.110 Renewal.

A Community Improvement District may be renewed for successive periods not to exceed 20 additional years each by following the procedures set forth in the PBID Law.

3.96.120 Disestablishment.

The City Council may, on its own initiative, at any time, adopt a resolution of intention to disestablish a Community Improvement District and shall adopt a such a resolution if, during the annual thirty-day period set forth in Section 36670(a)(2) of the PBID Law, the City Council receives a written petition requesting disestablishment signed by property owners who pay more than 30 percent of the assessments levied in connection with the District. This section provides an alternative method for the initiation of proceedings to disestablish a Community Improvement District and shall not be interpreted to preempt the existence of other methods set forth in Section 36670 of the PBID Law. A resolution of intention adopted pursuant to this section shall have the same effect, and trigger the same notice and hearing requirements, as a resolution of intention otherwise adopted pursuant to Section 36670 of the PBID Law.

3.96.130 Validity.

As provided under Section 36633 of the PBID Law, the validity of an assessment levied under this chapter shall not be contested in any action or proceeding unless the action or proceeding is commenced within 30 days after the resolution levying the assessment is adopted. Any appeal from a final judgment in an action or proceeding shall be perfected within 30 days after the entry of judgment.

SECTION IV. SEVERABILITY.

If any section of this ordinance or the application thereof to any person or circumstance is held invalid, the invalidity shall not affect other provisions or applications of the act which can be given without the invalid provisions or application, and to this end the provisions of this act are severable.

SECTION V. EFFECTIVE DATE.

This ordinance shall take effect and be in full force thirty (30) days after its passage.

ADOPTED: ___________________
EFFECTIVE: ___________________
_____________________________
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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City of Stockton
Legislation Text
File #: 22-0044, Version: 1

AWARD A PROGRESSIVE DESIGN-BUILD CONTRACT FOR THE REHABILITATION OF SOUTH STOCKTON SYSTEM GROUNDWATER WELL SSS8 AND AMEND FISCAL YEAR 2021-22

ANNUAL BUDGET

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

1. Award a Progressive Design-Build Contract in the amount of $485,591.00 between the City and PCL Construction, Inc., of Tempe, AZ for the design and development of a lump sum price proposal for the rehabilitation of South Stockton System Groundwater Well SSS8 (Project No.

UH22008).

2. Authorize the City Manager to execute the Progressive Design-Build Contract.

3. Approve findings pursuant to Stockton Municipal Code section 3.68.070 which support and justify an exception to the competitive bidding process.

4. Reappropriate funds in the amount of $5,650,000 from existing capital projects UH21002 ($2,400,000), UH17002 ($1,750,000), UH21005 ($750,000), and UH14014 ($750,000) to the South Stockton System Groundwater Well SSS8 (Project No. UH22008).

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
If approved by Council, this action will retain the Design-Build team of PCL Construction, Inc./Hazen (PCL/Hazen) for the design and development of a lump sum price proposal to construct wellhead treatment improvements to rehabilitate South Stockton System Groundwater Well No. 8 (SSS8) located next to Ernie Shropshire Park in South Stockton. Wellhead treatment for removal of water quality constituents and contaminants is a standard industry practice and will be used to meet new State Water Resources Control Board (SWRCB) Drinking Water Standards and State law detailed in Assembly Bill 756.

On September 25, 2021, the City of Stockton Municipal Utilities Department (MUD) advertised a Request for Proposals (RFP) for the design and development of a lump sum price for the Rehabilitation of South Stockton System Groundwater Well SSS8 Project. Two firms submitted proposals for this project. A selection committee evaluated the proposals and found PCL/Hazen to be the Design-Build team most qualified to provide the requested services.

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File #: 22-0044, Version: 1
At the Water Advisory Group and Council Water Committee meetings held on January 5 and January 13, 2022, respectively, the MUD staff presented the results of the selection committee’s review and recommendation that the project team of PCL/Hazen be awarded the Progressive Design-Build contract.

If approved, this action will award a Progressive Design-Build Contract in the amount of $485,591.00 to PCL Construction, Inc. It is anticipated that the facility design will be completed by June 2022.

Once the project design is advanced and construction lump sum price is negotiated, staff will return to Council to award the construction contract.

DISCUSSION
Background
As listed in the most recent MUD Water Utility Master Plan and Urban Water Management Plan, there are two drinking water supply sources for the South Stockton System (SSS) including potable water purchased from Stockton East Water District and groundwater wells. Currently, there are a total of five groundwater wells in the South Stockton System, and two wells are in active status. The remaining wells were placed into inactive status and require rehabilitation prior to bringing them back into service.

The Water Utility Master Plan recommended the development of a well rehabilitation program to complete groundwater well improvements as an economic, cost-effective approach to reactivate inactive wells in lieu of the cost of constructing new wells. Groundwater well rehabilitation in the South Stockton System will ensure continued water supply, quality, reliability, and drought resiliency for the community.

Groundwater Well SSS8 is located next to Ernie Shropshire Park in South Stockton and will be the first water well from the South Stockton System to be rehabilitated. Wellhead treatment for removal of water quality constituents and contaminants is a standard industry practice and will be used to meet new SWRCB Drinking Water Standards and the requirements of Assembly Bill 756.

Present Situation
On September 25 and 26, 2021, the MUD advertised the project in the Stockton Record and posted to the City’s Bid Flash webpage. A notice with a brief project description was emailed to four engineering consulting firms with similar project experience. In addition, 3,273 notifications were sent through Ask Stockton.

The RFP defined a two-phase engineering and construction effort to meet the required project objectives. The goal of Phase 1 is to advance facility design to a point where the firm would bid construction packages leading to a Phase 2 lump sum construction cost, similar to the procurement process conducted for the Delta Water Supply Project and the RWCF Modifications Project. Built into the RFP was the concept of an “off-ramp,” whereby if the City and the firm were unable to reach an agreed upon construction cost and schedule, the City would have the option to direct the firm to complete the design and prepare bid documents for the City to competitively bid the project.

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File #: 22-0044, Version: 1
A non-mandatory pre-proposal meeting and job walk was held on October 7, 2021, with four (4) prospective design-build teams in attendance including Overaa/Hydroscience, W.M. Lyles Co./Provost & Pritchard, PCL Construction, Inc./Hazen, and GEI Consultants. On October 28, 2021, two (2) sealed proposals were received and publicly opened by the City Clerk including Overaa/Hydroscience and PCL Construction, Inc./Hazen (PCL/Hazen).

A selection committee evaluated the proposals based on the design/builder and key personnel experience/capabilities, organization, management, safety, project approach, schedule, and cost.

Based on this criteria, PCL/Hazen received the highest ranking and was determined to be the most qualified firm for this project.

The proposed Design-Build contract consists of Phase 1 engineering design services and environmental review needed to advance facility design to the 60 percent completion level and bidding of design packages to establish a fixed lump-sum price for construction. If pursued, Phase 2 services would consist of completing design, permitting, and construction of the facilities.

If PCL/Hazen and the City agree on the price and schedule for Phase 2, staff will return to Council to request award of the construction contract. If PCL Construction, Inc. and the City cannot agree on the Phase 2 price and schedule, the City could opt to take an “off-ramp” where Hazen would complete the design and prepare bid documents for the City’s use.

At the Water Advisory Group and Council Water Committee meetings held on January 5 and January 13, 2022, respectively, the MUD staff presented the results of the selection committee’s review and recommendation that the project team of PCL/Hazen be awarded the Progressive Design-Build contract.

Staff has negotiated a proposed fee in the amount of $485,591.00 and recommends that Council approve a resolution to award a Progressive Design-Build Contract to PCL Construction, Inc. for the Rehabilitation of South Stockton System Groundwater Well SSS8 Project. It is anticipated that the Phase 1 facility design will be completed by June 2022.

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

The following findings support and justify an exception:

1. The scope of design services requires an engineering firm experienced in wellhead and water treatment design.

2. Use of the RFP process is appropriate for this Progressive Design-Build 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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File #: 22-0044, Version: 1

LOCAL BUSINESS PREFERENCE
This contract is for engineering design services and as such, not subject to Local Employment requirements or CEQA requirements. CEQA documentation will be completed prior to the award of the Phase 2 construction contract.

FINANCIAL SUMMARY
Funds will be reappropriated in the current fiscal year from existing capital projects below to the Rehabilitation of South Stockton System Groundwater Well SSS8 Project UH22008, Account No. 6518-000-800007-600-602-00-65-000-000.

PROJECT Amount Available
to Transfer
UH21002 - DWTP Intake Pump Station Discharge Pipe Support Study and Improvements
$2,400,000
UH17002 - Water Well SSS #10 $1,750,000
UH21005 - DWTP Recharge Basins $750,000
UH14014 - DWTP Campus Improvements $750,000
TOTAL $5,650,000
Appropriation of new funding to these existing capital projects will be evaluated and added during the annual CIP budget development process for FY 2022-23.

There is no impact to the City’s General Fund or any other unrestricted fund because of taking the recommended action.

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Resolution No.

STOCKTON CITY COUNCIL

RESOLUTION AWARDING A PROGRESSIVE DESIGN-BUILD CONTRACT IN THE AMOUNT OF $485,591 WITH PCL CONSTRUCTION, INC. FOR THE DESIGN AND

DEVELOPMENT OF A LUMP SUM PRICE PROPOSAL FOR THE REHABILITATION OF SOUTH STOCKTON SYSTEM GROUNDWATER WELL SSS8
(PROJECT NO. UH22008); AND AUTHORIZING A REAPPROPRIATION OF $5,650,000 FROM EXISTING CAPITAL PROJECTS UH21002 ($2,400,000), UH17002 ($1,750,000), UH21005 ($750,000), AND UH14014 ($750,000) TO THE SOUTH STOCKTON SYSTEM GROUNDWATER WELL SSS8 (PROJECT NO. UH22008) The Rehabilitation of South Stockton System Groundwater Well SSS8 Project will provide a design and lump sum price proposal to implement wellhead treatment and facility improvements as an economic, cost-effective approach to reactivate inactive wells in lieu of constructing new wells. Groundwater well rehabilitation in the South Stockton System will ensure continued water supply, quality, reliability, and drought resiliency for the community; and
Once the Phase 1 engineering design is advanced and construction lump sum price is determined, staff will return to Council to award the Phase 2 construction contract; now, therefore,

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

1. The Progressive Design-Build Contract for the Project, in the amount of $485,591, between the City of Stockton and PCL Construction, Inc., of Tempe AZ is hereby awarded, a copy of which is attached hereto as Exhibit 1 and incorporated by reference.

2. The City Manager is hereby authorized and directed to execute the Progressive Design-Build Contract for the Project with PCL Construction, Inc.

3. The City Manager is hereby authorized to take the appropriate actions to carry out the purpose and intent of the resolution.

4. The City Manager is hereby authorized to reappropriate funds in the amount of $5,650,000 from existing capital projects UH21002 ($2,400,000), UH17002 ($1,750,000), UH21005 ($750,000), and UH14014 ($750,000) to the South Stockton System Groundwater Well SSS8 (Project No. UH22008).

5. This Resolution shall take effect upon its adoption. 225

6. The City Manager is authorized to take all necessary and appropriate steps to carry out the purpose and intent of this Resolution.

PASSED, APPROVED, and ADOPTED: March 22, 2022 .

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

ELIZA R. GARZA, CMC
City Clerk of the City of Stockton
226
EXHIBIT 1
SECTION 00500 – PROGRESSIVE DESIGN-BUILD CONTRACT
THIS CONTRACT (“Contract”) is made and entered into on , by and between PCL CONSTRUCTION, INC., a STATE OF COLORADO CORPORATION with a business address of 1711 W. GREENTREE DRIVE, SUITE 201, TEMPE, ARIZONA, 85284, 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 REHABILITATION OF SOUTH STOCKTON SYSTEM GROUNDWATER WELL SSS8 (PROJECT NO. UH22008), hereinafter called “PROJECT,” were regularly adopted by Council Motion –OR- Council Resolution No. _________________, on _________________; and
WHEREAS, the Contract for said work was regularly awarded to CONTRACTOR, by Council Motion –OR- Council Resolution No. __________________, on .

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

1. CONTRACTOR agrees:
(a) To do and perform the design and construction work and services and furnish all the labor, materials, tools, equipment, and insurance pursuant to the terms and conditions of the Contract Documents (as defined in Article 1(k) below) required for the Progressive Design-Build Services for the REHABILITATION OF SOUTH STOCKTON SYSTEM GROUNDWATER WELL SSS8 Project (“Project”), subject to CITY and CONTRACTOR agreeing to a Phase 2 Guaranteed Maximum Price (GMP) or Lump Sum Contract Price and Phase 2 Contract Time (as defined in Articles 1(f) and (g) below, respectively) for the Phase 2 portion of the Work. CITY is contracting with CONTRACTOR, whose key personnel and key subcontractors are set forth in Exhibit A, for the following Work: design, permitting and construction of a progressive design build project consisting of groundwater treatment components (“Facilities”) of the Project. The Work includes development and preparation of all design documents and construction of the Project, including construction administration and management services in two Phases, and the Work shall comply with and meet the Performance Requirements as set forth in Exhibit B hereto.

Phase 1 of the Work shall consist of the initial design of the Project and negotiation of the Phase 2 GMP or Lump Sum Contract Price and Phase 2 Contract Time. Phase 2 of the Work shall consist of the final design and construction of the Project, which shall take effect only if CITY and CONTRACTOR agree to a Phase 2 GMP or Lump Sum Contract Price and Phase 2 Contract Time, and CITY exercises the OPTION under Article 5 below.
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The general description of the Work which will be performed in Phases, shall include, but not be limited to, the following:

Phase 1 – Design Development and Construction Documents  Project management for the duration of Phase 1
 Conceptual and a significant degree of detailed design of the Facilities, including technology selection and equipment and materials specification; the Facilities design criteria shall ensure compliance with the Performance Requirements as described and identified in this Contract and Exhibit B.
 Evaluation of alternatives for groundwater treatment technologies, equipment, and other elements as necessary of the Project that affect construction and life cycle costs, Contract performance, and CITY goals for the Project
 Review of background and reference documents and preparation of Basis of Design Reports (“BDRs”) and other work products as defined in this Contract, with major milestones at 25%and 60-75% completion, and sufficient process and instrumentation diagrams (“P&IDs”), site plans, specifications, and other supporting documents to facilitate preparation of a Phase 2 GMP or Lump Sum Contract Price and Phase 2 Contract Time Proposal at 60-75% completion of design packages  Advising the CITY and facilitating CITY participation in all material decision making about the Facilities as such decision making may affect the Project scope and value, including CITY participation in select meetings and communications
 Preparation of the Supervisory Controls and Data Acquisition (“SCADA”) system and security/surveillance system design for the Facilities in conformance with the City’s SCADA system
 Necessary environmental documentation for compliance with California Environmental Quality Act (“CEQA”) requirements
 Preliminary preparation of all necessary permit applications and facilitation of regulatory agency approval of all permits that are CONTRACTOR’s responsibility (CITY will sign the permit applications, furnish permit application fees, and attend permitting coordination and review meetings with regulatory agencies as necessary). City will maintain a lead role with the State Water Resources Control Board, Division of Drinking Water.
 Preparation of unified sets of plans and specifications for use by the City to solicit competitive bids for construction of the Facilities if Contractor’s performance is unsatisfactory, Contract amendment negotiations for Phase 2 are unsuccessful, or the Contractor otherwise fails to perform under the terms of the Contract; it is anticipated in this event that Contractor shall assume responsibilities as the Engineer of Record and provide engineering services during construction by others. 228
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 Development of a startup, commissioning and testing plans that will demonstrate facility compliance with design parameters developed in Phase 1 and constructed in Phase 2  Solicitation of competitive proposals for the major trades, design packages, and material and equipment procurement, preparation of a firm Phase 2 GMP or Lump Sum and Contract Price and Phase 2 Contract Time, as defined and required in Articles 1(f) and (g) below, and negotiation of the Phase 2 GMP or Lump Sum Contract Price and Phase 2 Contract Time with CITY in accordance with the Contract
 Negotiation of the Contract amendment, as defined in Article 1(f) below, for Phase 2  In addition to the services identified above, CONTRACTOR will also perform all Phase 1 services identified in and reasonably inferred by this Contract, the RFP, and all Contract Documents for the Project. In particular, see the scope of services set forth in Exhibit C hereto.

Phase 2 – Final Design and Construction Phase (contingent upon satisfactory completion of Phase 1 services and successful negotiation of and agreement on a Phase 2 GMP or Lump Sum Contract Price and Phase 2 Contract Time):
 Completion of final design packages as necessary for physical construction of the Facilities  Completion of permitting services including obtainment of building and operating permits  Procurement of equipment and materials separately from construction contracts as necessary to achieve project delivery schedule
 SCADA and security/surveillance system integration with the City’s SCADA system  Compliance with all permitting terms and conditions
 Compliance with all environmental mitigation requirements if required  Site safety and security during construction including coordination of site visits  Completion of start-up and all required acceptance tests, including provision of chemicals and utilities during start-up
 Provision of an operations and maintenance (“O&M”) manual, as-built drawings and other project documentation in searchable Adobe Acrobat format and integrated into a computerized maintenance management system (“CMMS”); as-built drawings also provided on Mylar sheets and in AutoCAD files
 Training of the CITY-designated and licensed O&M workforce to explain the Facilities design intent, the Operations Manual, SOP, the equipment manufacturers’ recommendations, and the CMMS
 Completion of the project within the Phase 2 GMP or Lump Sum Contract Price and Phase 2 Contract time and in accordance with all Contract requirements  Provision of QA/QC plan for Phase 2
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In addition to the services identified above, CONTRACTOR will also perform all Phase 2 services and Work identified in and reasonably inferred by this Contract, the RFP, and the Contract Documents for the Project. In particular, see the scope of services identified in Section 3.5 of the RFP. The final scope of services for which will be identified by Contract Amendment following successful negotiation of a Phase 2 GMP or Lump Sum Price.
(b) To do and perform the work and services contemplated hereby in a good and professional manner. The standard of care for all design professional services performed by CONTRACTOR or its subcontractors pursuant to this Agreement shall be the care and skill ordinarily used by members of the design profession practicing under similar conditions at the same time and locality of the Project
(c) CONTRACTOR shall, during the life of the contract, take out and maintain insurance coverage as required herein under and by the General Conditions and all other Contract Documents with insurance carriers authorized to transact business in the State of California as will protect CONTRACTOR or any subcontractor or anyone directly or indirectly employed by any of them or by anyone for whose acts any of them may be liable from claims for damages because of bodily injury, sickness, disease, or death of its employees or any other persons, or for damages because of injury to or destruction of tangible property including loss of use resulting therefrom.

The minimum limits of liability for such insurance coverage, which shall include comprehensive general and automobile liability, including contractual liability assumed under the contract, shall be in the minimum amounts mandated by Section 00820 – Liability and Insurance Requirements of the Front End Contract Documents. Front End Contract Documents are Division 0 (Sections 00100 through 00820) and Division 1 (01010-01700). Defined terms are included in this Contract and in Section 01090 of the Division 1 Front End Contract Documents.

Such liability insurance policies shall name CITY as an additional insured by separate endorsement and shall agree to defend and indemnify CITY against loss arising from operations performed under the Contract and shall provide that written notice of any changes or cancellation in coverage shall be provided to CITY at least thirty (30) days prior to the effective date of such change or cancellation.

CONTRACTOR shall obtain, and keep in full force and effect, Workers’ Compensation Insurance necessary in connection with the performance of this Contract to protect itself and employees under the Workers’ Compensation Insurance and Safety Act and CONTRACTOR shall supply CITY with a suitable statement certifying to the protection and defining the terms of the policy prior to undertaking the work contemplated herein.

Before permitting any subcontractors to perform work under the contract, CONTRACTOR shall require subcontractors to furnish satisfactory proof that insurance has been issued 230
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and is maintained as may be applied to each subcontractor's work. The CONTRACTOR may adjust the Subcontractors’ coverage limits based on the size and scope of Subcontractor services or work. (d) CITY and all officers and employees thereof connected with the work, including but not limited to the Municipal Utilities Director and/or the Director’s designee, shall not be answerable or accountable in any manner, for any loss or damage that may happen to the Work or any part thereof, for any loss or damage to any of the materials or other things used or employed in performing the Work, for injury to or death of any person, either workers or the public, or for damage to property from any cause which might have been prevented by CONTRACTOR or CONTRACTOR's workers, or anyone employed by CONTRACTOR.

CONTRACTOR shall be responsible for any liability imposed by law and for injuries to or death of any person or damage to property resulting from defects or obstructions or from any cause whatsoever during the progress of the Work or any time before its completion and final acceptance.

The duty of CONTRACTOR to indemnify and save harmless, as set forth in the Contract Documents, shall include the duty to defend, as set forth in Section 2778 of the California Civil Code, provided, however, that nothing herein shall be construed to require CONTRACTOR to indemnify CITY against any responsibility or liability in contravention of Section 2782 of the California Civil Code. (e) The Contractor’s indemnity obligations wherever referred to or identified in the Contract Documents are to be read in conjunction with, and shall not supersede, the indemnity provision stated in Section 00820 – LIABILITY AND INSURANCE REQUIREMENTS. (f) To do and perform the Phase 1 Work contemplated hereby and set forth in Exhibit C to furnish all labor, services, materials, tools and equipment necessary therefor at the prices herein specified, to wit: Subject to the provisions of the Contract Documents, CITY shall pay to CONTRACTOR, for performance of the Phase 1 Work, FOUR HUNDRED EIGHTY-FIVE THOUSAND, FIVE HUNDRED NINETY-ONE ($485,591), the “Phase 1 Lump Sum Contract Price” as set forth in Exhibit D.

CITY shall pay for the performance of the Work for Phase 2, in an amount that CITY and CONTRACTOR will negotiate and agree to at the conclusion of Phase 1 (“Phase 2 GMP or Lump Sum Contract Price”) if the City agrees to exercise the OPTION under Article 5 below.

CONTRACTOR agrees that the portion of its Phase 2 GMP or Lump Sum Contract Price for Phase 2 design/engineering services as set forth in Exhibit E shall not exceed 10% of the Phase 2 GMP or Lump Sum Contract Price, as set forth in Exhibit F, and that Phase 2 Construction Management/Inspection services as set forth in Exhibit G shall not exceed 6.9% of the Phase 2 Lump Sum Contract Price as set forth in Exhibit H.

CONTRACTOR shall solicit and procure at least three competitive proposals from pre-qualified companies for all major subcontract packages, trades, and material and equipment procurements, in preparing and negotiating the final Phase 2 GMP or Lump Sum Contract Price. “Major” 231
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is defined as a trade, design package, and/or material and equipment procurement whose costs, respectively, exceed one-half (1/2) of one percent (1%) of the Phase 2 GMP or Lump Sum Contract Price.

Contractor shall provide the bids to CITY during the negotiation of the Phase 2 GMP or Lump Sum Contract Price. If CONTRACTOR is unable to procure at least three bids as required hereinabove, it shall provide to the CITY written detail on the steps taken by CONTRACTOR to obtain the bids, including, but not limited to, showing that CONTRACTOR solicited bids from at least three qualified subcontractors or suppliers, and a written explanation for why it is reasonable for CONTRACTOR not to have obtained the required three bids.

For Work that CONTRACTOR intends to self-perform, CONTRACTOR shall provide, in addition to its detailed bid/estimate for its self- performed work, evidence that the CONTRACTOR’S bid/estimate is at current market value. This shall be accomplished by providing actual estimates, costs, and labor production rates utilized in other similar CONTRACTOR constructed projects, or at the sole discretion of the City, by obtaining from CONTRACTOR, two comparable bids from other contractors for the self-performed work to allow the CITY to compare and evaluate the CONTRACTOR’s self-performance work price.

The above identified bidding requirements shall not preclude CONTRACTOR from requesting from the CITY permission to seek sole-source procurement of equipment, materials and subcontractors should CONTRACTOR prove to CITY, in CITY’s sole discretion that said procurement is in the best interests of the City. Further, for each instance in which CONTRACTOR does not use the lowest monetary bid obtained for each major design package, trade and/or equipment and material procurement, CONTRACTOR must provide to the CITY a written explanation showing why it is in the best interests of the CITY for CONTRACTOR not to use the lowest monetary bid. CONTRACTOR may also provide an allowance for certain major design packages, trades and/or equipment and material procurements, pursuant to Section 01210 – Allowances, found in the Front End Documents, but, if an allowance is provided, CONTRACTOR must provide to the CITY, for the CITY’s acceptance, written detail on why an allowance was provided in lieu of CONTRACTOR procuring and providing to the CITY the required three bids.

If CONTRACTOR does not provide proof to CITY that it has taken all reasonable efforts to bid all major design packages, trades, and equipment and material procurements, or provide to the CITY an acceptable written explanation for why CONTRACTOR is either not using lowest monetary bid(s) or is providing an allowance in lieu of bids, CITY reserves the right not to exercise the OPTION as identified below.

The final Phase 2 GMP or Lump Sum Contract Price and Phase 2 Contract Time shall be incorporated into this Contract by amendment, and the Work for Phase 2 shall be performed pursuant to the terms of this Contract.
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For each subcontractor or supplier whose contract value will exceed 3% of the total Phase 2 GMP or Lump Sum Contract price, CONTRACTOR shall provide acceptable qualifications information at the time CONTRACTOR provides its Phase 2 GMP or Lump Sum Contract Price to CITY. (g) To begin the Work contemplated hereby after this Contract has been approved as to form by the City Attorney of the City of Stockton and after receipt by CONTRACTOR of the Notice to Proceed.

CONTRACTOR shall commence the Work for Phase 1 on the date specified in the Notice to Proceed for Phase 1, and shall fully complete the Work within one hundred and five (105) calendar days as set forth in Exhibit I. The time for CONTRACTOR to complete Phase 1 Work is the “Phase 1 Contract Time.” The Phase 1 Contract Time is defined when CONTRACTOR achieves Substantial Completion of Phase 1 pursuant to General Conditions Section 00700-8.6. The “Phase 2 Contract Time” is defined as the number of calendar days for the CONTRACTOR to achieve Substantial Completion of Phase 2 pursuant to General Conditions Section 00700-8.6.

Assuming the CITY exercises the OPTION described herein below and issues a Notice to Proceed for Phase 2 to CONTRACTOR, the CONTRACTOR shall commence the Work for Phase 2 on the date specified in the Notice to Proceed for Phase 2, and shall achieve Substantial Completion of the Phase 2 Work within 240 calendar days.

By signing this agreement, CONTRACTOR represents to CITY that (i) the Phase 1 Contract Time and Phase 2 Contract Time are reasonable for completion of the Work of the respective Phases; and (ii) CONTRACTOR will complete the Work within the Phase 1 Contract Time and Phase 2 Contract Time, as applicable.

If CITY decides not to exercise the OPTION for CONTRACTOR to perform Phase 2 Work, CONTRACTOR shall complete all final design documents, in accordance with Exhibit J hereto and Article 5(b)(i) below, to allow for competitive bidding of the Phase 2 construction work in the Final Design Documents Contract Time. The “Final Design Documents Contract Time” is defined as the calendar days necessary for CONTRACTOR to complete the design in accordance with Exhibit J and Article 5(b)(i) below. The Final Design Documents Contract Time shall be within sixty (60) calendar days of a formal Notice to Proceed by CITY that it is taking the “off-ramp” pursuant to Article 5 below, and requests that CONTRACTOR complete the final design documents. The Notice to Proceed by CITY that it is taking the “off-ramp” pursuant to Article 5 below shall be provided by CITY no later than thirty (30) calendar days after the expiration of time the CITY can exercise the OPTION under Article 5 below (which is ninety (90) calendar days from the expiration of the Phase 1 Contact Time).

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 calendar days as set forth herein, damage will be sustained by the CITY, and that it is and will be impracticable and 233
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extremely 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 following sums:

If CONTRACTOR fails to complete the Work for Phase 1 within the Phase 1 Contract Time, CONTRACTOR shall pay to CITY, as liquidated damages and not as a penalty, the amount indicated below as “Liquidated Damages Daily Rate for Phase 1” of each calendar day after expiration of Contract Time that Work for Phase 1 remains incomplete.

If CONTRACTOR fails to complete the Work for Phase 2, within the Phase 2 Contract Time, CONTRACTOR shall pay to CITY, as liquidated damages and not as a penalty, the applicable amount(s) indicated below as “Liquidated Damages Daily rate for Phase 2 Substantial Completion” for each calendar day after the expiration of the Phase 2 Contract Time that Work for Phase 2 remains incomplete.

If CONTRACTOR fails to achieve Phase 2 Final Completion (as defined in General Conditions Section 00700-8.9), CONTRACTOR shall pay to CITY, as liquidated damages and not as a penalty the applicable amount(s) indicated below as “Liquidated Damages Daily Rate for Phase 2 Final Completion” for each calendar day that CONTRACTOR fails to achieve Phase 2 Final Completion.

If CITY does not exercise the OPTION for Phase 2, and CONTRACTOR fails to meet the Final Design Documents Contract Time, CONTRACTOR shall pay to CITY as liquidated damages and not as a penalty the applicable amount(s) indicated below as “Final Design Documents Liquidated Damages Daily Rate” for each calendar day that CONTRACTOR fails to achieve the Final Design Documents Contract Time.

CITY and CONTRACTOR agree that if the Work is not completed within the above defined contract times, CITY’s damages would be extremely difficult or impracticable to determine and that said amounts indicated below are reasonable estimates of and reasonable sums for such damages.

CITY may deduct any liquidated damages due from CONTRACTOR from any amounts otherwise due to CONTRACTOR under the Contract Documents. This provision shall not limit any right or remedy of CITY in the event of any other default of CONTRACTOR other than failing to complete the Work within the Contract Time.

Liquidated Damages Daily Rate for Phase 1: $300
Liquidated Damages Daily Rate for Phase 2 Substantial Completion: $1,000 Liquidated Damages Daily Rate for Phase 2 Final Completion: $1,000 Final Design Documents Liquidated Damages Daily Rate: $1,000 234
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Except as otherwise specifically provided herein, such delay liquidated damages shall constitute the sole and exclusive remedy for delay regardless of legal theory. In addition, the CONTRACTOR’s liability for liquidated damages in Phase 1 shall not exceed 20% of the Phase 1 Lump Sum Contract Price and liquidated damages in Phase 2 shall not exceed 5% of the Phase 2 Contract Price, provided however that this limitation shall not limit the City’s recovery of non-delay related damages otherwise due under this Contract as a result of CONTRACTOR’s default or termination for cause. The limitation shall be included under the aggregate limitation of liability included under Section 6 below.

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 calendar days specified, the City Council shall have the right to increase the number of calendar days or not, as may best to serve the interest of CITY, and if they decide to increase the said number of calendar days, they 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 liquidated damages set forth above.

A calendar day shall not include, nor shall CONTRACTOR be assessed with liquidated damages 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, delays caused by permitting agencies/entities, epidemics, quarantine restrictions, strikes, and freight embargoes, or delays of subcontractors due to such causes provided that CONTRACTOR shall notify the Director in writing of the causes of delay within ten (10) 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, unless appealed under the dispute provisions.

If CONTRACTOR is delayed by reason of alterations made to the specifications, or by any act of the Director or of the CITY, not contemplated by the Contract, and said delay is deemed to be an Excusable Delay pursuant to General Conditions Section 00700-6.3, 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.

If CONTRACTOR is entitled to an increase in the Contract Sum as a result of a Compensable Delay, determined pursuant to General Conditions Section 00700-6.0, the Contract Sum will be increased by the sum indicated below per calendar day for each day for which such compensation is payable. The below daily delay rates shall include all delay damages sought by CONTRACTOR, its design professionals, its subcontractors/suppliers of every tier, and all other entities or persons CONTRACTOR contracts with to perform Work under this Contract, and General Conditions Section 00700-6.4.3. This Article will apply only to the extent that the CONTRACTOR fulfills requisites proving entitlement to 235
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Compensable Delay. The delay daily rate for Phase 1 is the rate provided by CONTRACTOR in its Proposal. The delay daily rates for Phase 2 shall be provided by CONTRACTOR when it submits its Phase 2 proposal, and shall be incorporated into this Contract by the same Contract amendment which will include and add the Phase 2 GMP or Lump Sum Contract Price and Phase 2 Contract Time.

Compensable delay daily rate for Phase 1: $200 for first 15 calendar days, $300 per calendar day thereafter. (h) 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 ($25.00) DOLLARS 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 in violation of the provisions of the Labor Code of the State of California.
(i) 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. (j) CONTRACTOR and any subcontractor shall pay each employee engaged in the trade or occupation not less than the hourly prevailing 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 rates of wages and employer payments for health and welfare, pension, vacation, travel time, and subsistence pay as provided for in Section 1773.8, apprenticeship or other training programs authorized by Section 3093 and similar purposes applicable to the work to be done.

Said wages are available through the City of Stockton, Municipal Utilities Department, 2500 Navy Drive, Stockton, California, 95206. 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 rate of concern is current and paid to the employee. (k) Without superseding, limiting, or restricting any other representation or warrant set forth elsewhere in the Contract Documents, or implied by operation of law, the CONTRACTOR makes the following covenants and representations to CITY:

CONTRACTOR, including its design professionals and subcontractors, is properly certified, licensed and qualified to perform the Work required by the Contract Documents, and CONTRACTOR shall procure a City of Stockton Business License to be in effect during the entirety of the Project.

CONTRACTOR accepts the relationship of trust and confidence with the CITY established by the Contract Documents. CONTRACTOR will cooperate with CITY. 236
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CONTRACTOR, including its design professionals, has carefully examined the site of the Project and the adjacent areas, have suitably investigated the nature and location of the Work and have satisfied themselves as to the general and local conditions which will be applicable, including but not limited to: (1) conditions related to site access and to the transportation, disposal, handling and storage of materials; (2) the availability of labor, water, power and roads; (3) normal weather conditions; (4) observable physical conditions at the site and existing site conditions including: size, utility capacities and connection options of external utilities; (5) the surface conditions of the ground and (6) the character and availability of the equipment and facilities which will be needed prior to and during the performance of Work.

CONTRACTOR, including its design professionals, has suitably reviewed proposal documents, environmental documents and any other documentation furnished by CITY in the Contract Documents.

In Phase 1, CONTRACTOR shall submit to CITY design work products at 25% and 60-75% completion for scope compliance review by CITY as stated and delineated in Exhibit B. The 25% and 60-75% design work product submissions shall also include a cost estimate for all Work to be performed in Phase 2.

In Phase 1, CONTRACTOR shall submit to CITY design documents that are sufficient for CONTRACTOR to provide to CITY its proposed Phase 2 GMP or Lump Sum Contract Price and Phase 2 Contract Time. The design document submission shall include the information required in Section 3.2.7 of the RFP, and shall be delivered to the CITY concurrently with the proposed Phase 2 GMP or Lump Sum Contract Price and all bidding documents required by Article 1(f) of this Contract.

CONTRACTOR agrees that (1) it will manage, coordinate and fully complete the design; (2) CONTRACTOR will cause its design professionals to describe and depict the final design for the Project, as approved by the CITY, in Contract Documents which will include all information required by the building trades to complete the construction (other than such details customarily developed by others during construction) and (3) it will manage and timely construct the Project in consideration for the CITY’s payment of the Phase 1 and 2 GMP or Lump Sum Contract Prices.

CONTRACTOR, including its design professionals, has reviewed the milestones identified in the Request for Proposals and agree that the design and construction tasks and milestones are reasonable and feasible, except as modified by CONTRACTOR’s Proposed Contract Schedule, approved by CITY.

CONTRACTOR also agrees that the time is of the essence for the performance of the Work.

CONTRACTOR agrees that all Contract Documents will be completed, coordinated, and accurate. “Contract Documents” means the Request for Qualifications, Request for Proposals, Contractor’s Proposal, this Contract, Front End Contract Documents, including General Conditions and Supplemental Conditions, Exhibits, City of Stockton Standard Specifications, Specifications, List of Drawings, Drawings, Addenda, Notice to Proceed, Change Orders, Notice of 237
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Completion, and all other documents identified in this Contract of which together form the Contract between CITY and CONTRACTOR for the Work (the “Contract”). The Contract constitutes the complete agreement between CITY and CONTRACTOR and supersedes any previous agreements or understandings.

The design development documents to be prepared by CONTRACTOR shall include drawings and outline specifications fixing and describing the Project size and character as to site utilization, and other appropriate elements incorporating the civil, structural, geotechnical, architectural, mechanical, environmental, process, instrumentation, and electrical systems. The design development documents set forth in detail the requirements for the construction of the Work, and shall be based on codes, laws, or regulations enacted at the time of their preparation.

CONTRACTOR agrees that all materials, equipment and furnishings incorporated into or used in the construction work will be of good quality, new (unless otherwise required or permitted by the Contract Documents) and free of liens, claims and security interests of third parties. If required by the CITY, CONTRACTOR will furnish satisfactory evidence as to the kind and quality of the materials, equipment and furnishings.

CONTRACTOR agrees that the construction work will be of good quality, free of defects and will conform with the requirements of the Contract Documents. Work not conforming to the requirements of the Contract Documents, including substitutions in design or construction not specifically approved or authorized by the CITY in advance, may be considered defective.

CONTRACTOR agrees to correct any error(s), omission(s), or deficiencies in the Contract Documents at no additional cost to CITY; however, this provision in no way limits the liability of Contractor.

CONTRACTOR shall furnish a surety bond in an amount equal to one hundred percent (100%) of the Phase 2 GMP or Lump Sum Contract Price as security for faithful performance of Phase 2 of this Contract, and shall furnish a separate bond in an amount equal to one hundred percent (100%) of the Phase 2 GMP or Lump Sum Contract Price as security for payment to persons performing labor and furnishing materials in connection with Phase 2 of this Project. Bonds shall be in the form set forth and attached to this Contract.
(l) CONTRACTOR and each of its subcontractors shall comply with Stockton Municipal Code Section 3.68.095 (Local Employment—Public works contractors) (hereinafter “Local Employment Ordinance”), which is incorporated herein by this reference. CONTRACTOR and each of its subcontractors shall complete and maintain all documentation, reports and records required by, and necessary for monitoring their compliance with, the Local Employment Ordinance. The failure of CONTRACTOR or any of its subcontractors to comply with any of the requirements of the Local Employment Ordinance shall be deemed a material breach of the Contract or subcontract. 238
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2. CITY agrees:
(a) To pay CONTRACTOR for the work herein contemplated in the following manner:

For Phase 1, 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 one hundred percent (100%) of the proportional Phase 1 Lump Sum Contract Price, upon the basis of the progress certificate of the Municipal Utilities Director as to the amount of work done and the proportional amount of the contract price represented therefor; and all of the remaining part of the Phase 1 Lump Sum Contract Price not as aforesaid paid, shall be paid at the expiration of thirty-five (35) days in accordance with General Conditions Section 00700-8.0. Payments shall be made in accordance with the drawdown schedule required by Section 3.2.1 of the RFP.

For Phase 2, 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 percent (90%) of the proportional Phase 2 GMP or Lump Sum Contract Price, upon the basis of the progress certificate of the Municipal Utilities Director as to the amount of work done and the proportional amount of the Phase 2 GMP or Lump Sum Contract Price represented therefor; and all of the remaining part of the Phase 2 GMP or Lump Sum Contract Price not as aforesaid paid, shall be paid at the expiration of thirty-five (35) days from the filing of the Notice of Completion of said work of construction. Payments shall be made in accordance with the drawdown schedule required by Section 4.5.3 of the RFP, and to be provided by CONTRACTOR in its Phase 2 Proposal. CITY retains the discretion to reduce retention from ten percent (10%) to five percent (5%) when CONTRACTOR has completed fifty percent (50%) of the Work for Phase 2 and pay retention by joint check(s) during the Work for Phase 2 to CONTRACTOR and any Subcontractor or Supplier who have completed their work in the Project.

Pursuant to 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. The costs of such escrow shall be paid by the CONTRACTOR.

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

CONTRACTOR shall have the obligation of ensuring that such securities deposited are sufficient so as to maintain, in total fair market value, an amount equal to the cash amount of the sums to be withheld under the Contract. If, upon written notice from CITY, or from the appropriate escrow agent, indicating that the fair market value of the securities has dropped below the dollar amount of 239
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monies to be withheld by CITY to ensure performance, CONTRACTOR shall, within five (5) days of the date of such notice, post additional securities as necessary to ensure that the total fair market value of all such securities held in escrow is equivalent to the amount of money to be withheld by CITY under the Contract.

3. 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 and/or City Representative to be necessary or advisable and to require such extra work as may be determined by the Engineer and/or City Representative to be required for the proper completion 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 compensation for such work. A contract change order will not become effective until approved by the authorized CITY official executing this contract and/or the City Council.

Cumulative change orders which exceed the charter limit [$100,000 as of December 2, 2021] and is adjusted annually on July 1st of each year) plus ten percent of the initial contract price over one hundred thousand dollars ($100,000) require CITY Council approval. Change orders not meeting the above criteria require approval by the CITY official executing this contract. the dollar amounts of change orders approved by specific city council actions, plus the dollar amounts of any change orders which predate such specific CITY Council action, shall not be counted in computing the authority limits set forth above for CITY officials to approve change orders hereunder. In emergency situations, the authorized CITY official may issue a change order beyond the authority limits described above in order to:
(i) Prevent interruption of the work which would result in a substantial increase in the costs to, or liability of, CITY; or
(ii) Protect the work, equipment, materials to be used in the work, human safety, or the environment at or near the work from substantial and immediate danger or injury; or (iii) Protect, where damage or injury has occurred, the work, equipment or materials to be used in the work, human safety, or the environment at or near the site of the work from further or additional damage or injury or deterioration.

The authorized CITY official shall have the authority to issue change orders in such sums as is reasonably necessary for such emergency purposes. After issuing a change order in an emergency situation described above, the authorized CITY official shall report such action and the reasons therefor to the City Council in writing not later than its next regularly scheduled meeting or as soon thereafter as is practicable.

Upon receipt of an approved contract change order, CONTRACTOR shall proceed with the ordered work. If ordered in writing by the Engineer and/or City Representative, CONTRACTOR shall 240
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proceed with the work so ordered prior to actual receipt of an approved contract change order therefor. In such cases, the Engineer will, as soon as practicable, issue an approved contract change order for such work and the provisions in General Conditions Section 00700-7.1.1, "Procedure and Protest," (Specifications) shall be fully applicable to such subsequently issued contract change order.

When the compensation for an item of work is subject to adjustment under the provisions of General Conditions Section 00700-7.1, “Changes,” (Specifications) CONTRACTOR shall, upon request, promptly furnish the Engineer with adequate detailed cost data for such item of work.

4. AUDITS:
(a) CITY reserves the right to periodically audit all charges made by CONTRACTOR to CITY for services under the contract. Upon request, CONTRACTOR agrees to furnish CITY, or a designated representative, with necessary information and assistance. (b) CONTRACTOR agrees that CITY or its delegate will have the right to review, obtain and copy all records pertaining to performance of the contract. CONTRACTOR 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 purpose of determining compliance with this requirement.

CONTRACTOR further agrees to maintain such records for a period of three (3) years after final payment under the contract.

5. OPTION
(a) The CITY may exercise its option for performance of the Phase 2 Work if CITY and CONTRACTOR agree to a Phase 2 GMP or Lump Sum Contract Price and Phase Contract Time by the end of the Phase 1 Contract Time, and by providing a written Notice to Proceed to the CONTRACTOR for performance under Phase 2. The Option for Phase 2 may be exercised not later than 90 days after the expiration of Phase 1 Contract Time. If CONTRACTOR has complied with all other terms of the Contract and the CITY fails to exercise its Option for Phase 2 by such calculated date, it shall be deemed that the CITY has decided not to exercise the OPTION.
(b) If CITY decides not to exercise the OPTION under this Article, and CITY notifies CONTRACTOR that CONTRACTOR is not required to perform construction services for Phase 2, it is anticipated that the CITY will take the “off-ramp” as identified in Section 3.4 and Appendix C of the RFP for the Project, and CONTRACTOR will perform, at CITY’s discretion and option, and after a Notice to Proceed is issued pursuant to Article 1(g) hereinabove, two separate scopes of work/services:
(i) Upon receipt of the Notice to Proceed identified above in Article 1(g), CONTRACTOR will complete the design of the Project by preparing unified sets of plans and specifications for use by the CITY to solicit competitive bids for construction of the Facilities in accordance with the scope of work set forth in Appendix J, and within the Final Design Documents Contract Time (as 241
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identified above in Article 1(g)). The performance of the final design services under this paragraph shall be performed for the Lump Sum Contract price of $360,355, as set forth in Exhibit K. (ii) Upon receipt of a Notice to Proceed from the CITY at a time after CONTRACTOR has completed the services required under Article 5(b)(i) above, CONTRACTOR, pursuant to the terms of the Contract Documents, shall remain the Engineer of Record, and will provide engineering services during construction as set forth in Exhibit L, for the Lump Sum Contract price of $166,462, as set forth in Exhibit M.
(c) The CITY’s “OPTION” rights under this Article 5 are independent of the “Termination for Convenience” rights set forth in General Conditions Section 00700-7.2.5. As such, if the CITY opts to not proceed with Phase 2 after the completion of Phase 1, CONTRACTOR’s right of recovery is limited to the Phase 1 Lump Sum Contract Price.
(d) The CITY retains the right to terminate this Contract for convenience at any time in accordance with General Conditions Section 00700-6.7.

6. Limitation of Remedies and Allocation of Risks. (a) The Contractor and City waive claims against each other for consequential damages arising out of or relating to this Contract. This waiver shall survive completion of or termination of the Contract.

The waiver of consequential damages set forth above specifically does not include any and all damages recoverable as liquidated damages as set forth in this contract; all damages arising from claims made by third parties, including, but not limited to, the parties' obligations under the indemnity obligations of this contract; fines or penalties, including those relating to environmental issues; all costs or damages to complete the work contemplated by this contract or to repair or correct defective work; damages incurred to require complete and full compliance with the terms of this contract; and all damages required to ensure that the Work meets the performance requirements of the contract. The waiver of consequential damages will not preclude a party from asserting such damages as an offset to any claim for damages made by the other party, provided that the City may not offset retainage owed to Contractor.

In recognition of the relative risks and benefits of the Project to both City and Contractor, City agrees, to the fullest extent permitted by law and notwithstanding any other provision in this Agreement, that any liability created by or arising out of this Agreement on the part of Contractor to City and any person or entity claiming by, through or under City, for any and all claims, liabilities, losses, costs, damages of any nature whatsoever, or claims expenses from any cause or causes (including without limitation any attorneys’ fees under this Agreement), shall not exceed 50% of the Contract Sum, inclusive of the limitation on liquidated damages above. This limitation of liability shall not reduce the availability of, or the ability of the City or any other party to pursue and recover amounts from, insurance required to be provided by Contractor, nor shall this limitation of liability limit be applicable to recovery under the performance and payment bonds provided for the Project; to the extent City has a right to recover under such performance 242
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and/or payment bonds, Contractor and the sureties under the bonds shall remain liable in the full amount of such bonds without regard to or reduction by the limitation of liability set forth herein.

7. It is expressly understood and agreed by and between the parties hereto that a waiver of any of the conditions of this contract shall not be considered a waiver of any of the other conditions thereof.

8. It is further understood and agreed by and between the parties hereto that time is of the essence of this contract in all respects.
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IN WITNESS WHEREOF, the parties hereto have hereunto affixed their hands and seals the day and year first above written.

ATTEST:

BY

CITY CLERK
APPROVED AS TO FORM:

Dated:

John Luebberke

CITY ATTORNEY
By

CITY ATTORNEY
CITY OF STOCKTON, a municipal corporation
By

CITY MANAGER
“CITY”
PCL CONSTRUCTION, INC.

By

MIKE MCKINNEY, VICE PRESIDENT AND DISTRICT MANAGER
“CONTRACTOR”
20-3598843
Tax Identification No.
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BOND FOR FAITHFUL PERFORMANCE
KNOW ALL MEN BY THESE PRESENTS:

That we, PCL CONSTRUCTION, INC., a STATE OF COLORADO 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 FOUR HUNDRED EIGHTYFIVE THOUSAND, FIVE HUNDRED NINETY ONE ($485,591), 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:

REHABILITATION OF SOUTH STOCKTON SYSTEM GROUNDWATER WELL SSS8 (PROJECT NO. UH22008)
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. 245
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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"

DIRECTOR OF FINANCE

SURETY
APPROVED AS TO FORM:

Dated:

John Luebberke

CITY ATTORNEY
By

ATTORNEY-IN-FACT
By

CITY ATTORNEY
246
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BOND FOR LABOR AND MATERIAL
KNOW ALL MEN BY THESE PRESENT:

That we, PCL CONSTRUCTION, INC., a STATE OF COLORADO 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 FOUR HUNDRED EIGHTY-FIVE THOUSAND, FIVE HUNDRED NINETY ONE ($485,591), 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 of Stockton and to said persons jointly and severally, the said principal and Surety bind themselves, their 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:

REHABILITATION OF SOUTH STOCKTON SYSTEM GROUNDWATER WELL SSS8 (PROJECT NO. UH22008)
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 Lump Sum as costs in said suit, and to be included in the judgment therein rendered. 247
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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 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"

DIRECTOR OF ADMINISTRATIVE

SERVICES/CFO

SURETY
APPROVED AS TO FORM:

Dated
By

ATTORNEY-IN-FACT
John Luebberke

CITY ATTORNEY
By

CITY ATTORNEY
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Exhibit A
Key Personnel and Subcontractor
City of Stockton Municipal Utilities Department
Progressive Design–Build Services
REHABILITATION OF SOUTH STOCKTON SYSTEM GROUNDWATER WELL SSS8 Project
The following is a list of Key Personnel who will be used in design, construction, and operation of the City of Stockton’s REHABILITATION OF SOUTH STOCKTON SYSTEM GROUNDWATER WELL SSS8 Project.
 Ankur Talwar – Principal-in-Charge
 Kevin Alexander – Principal-in-Charge
 Jeff Newman – Design-Build Manager
 Darren Wright – Project Manager
 Silvana Ghiu – Design Manager
 Alex Gorzalski – Design Engineer/Process Mechanical
 Ben Romero – Civil Lead
 Nicole Blute – DDW Permitting
The following is a list of Approved Subcontractors who will be used in design, construction and operation of the City of Stockton’s REHABILITATION OF SOUTH STOCKTON SYSTEM GROUNDWATER WELL SSS8 Project.
 Kjeldsen, Sinnock, Neudeck (KSN) – Surveying
 ENGEO – Geotechnical
 Jeff Gamboni – Landscape Architect
 V&A Consulting Engineers – Corrosion Engineering
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Exhibit B
Performance Requirements
City of Stockton Municipal Utilities Department
Progressive Design–Build Services
REHABILITATION OF SOUTH STOCKTON SYSTEM GROUNDWATER WELL SSS8 Project

1.0 Purpose
This Exhibit B sets forth the Minimum Performance Requirements for the Facilities.

Actual Performance Requirements and testing confirmation approach will be developed during the Phase I effort.

2.0 Minimum Performance Requirements
The Facilities shall meet or exceed the requirements of SWRCB. 250
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Exhibit C
Phase 1 Scope of Services
City of Stockton Municipal Utilities Department
Progressive Design–Build Services
REHABILITATION OF SOUTH STOCKTON SYSTEM GROUNDWATER WELL SSS8 Project
Task 1: Project Management, Meetings, and QA/QC
Task 1.1 Project Management
Contractor’s Design Manager will prepare monthly invoicing and status reports showing progress to date, project schedule update, and budget update. The Design Manager will coordinate activities with the design disciplines on a weekly basis throughout the design phase.

Task 1.2 Project Meetings and Coordination
Contractor will attend scheduled project coordination meetings with the City’s project team over the course of the design. This will include a virtual kickoff meeting and up to six (6) virtual coordination meetings with the option to substitute in-person meetings for virtual meetings if necessary. Contractor will provide an agenda at least one (1) day prior to the meetings and provide meeting minutes within five (5) days of all meetings attended. In addition, Contractor proposes weekly conference calls with the City to provide an update on design progress and discuss any key decision points related to the project. Contractor shall be prepared to attend City Council meeting for the award of the phase 1 contract.

Task 1.3 Quality Assurance / Quality Control (QA/QC)
Contractor will follow company quality control procedures and processes including identification of the QC team and responsibilities on this project and requirements for sub-consultants. Contractor will collect, organize and resolve comments and document responses to comments.

Task 1 Deliverables
The following deliverables will be provided for Task 1. Deliverables will be provided in electronic format unless otherwise noted.
 Monthly invoices and progress reports
 Meeting agendas, slides, and minutes
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Task 2: Basis of Design Report
Task 2.1 Document Review
The Contractor team will review relevant project documents, including existing as-built design drawings for the existing well and historical water quality data.

Task 2.2 Alternatives Analysis Workshop
A workshop will be conducted to review the treatment alternatives analysis conducted as part of the proposal, and to verify City justification and concurrence with the proposed treatment approach.

Task 2.3 Field Investigations
Contractor and its subconsultants will perform geotechnical boring and engineering, cathodic protection analyses, potholing, and field site surveying.

Geotechnical
Geotechnical analysis will include a single boring to a depth of approximately 50 feet below existing grade or refusal (whichever is shallower) with a truck-mounted drill rig.

The boring will be permitted with San Joaquin County and a private utility locator will be retained. Soil samples will be analyzed in a laboratory to determine their engineering properties. Based on these analyses, a geotechnical report will be prepared that includes earthwork, foundation, and pavement recommendations. The report will be signed by a licensed California Geotechnical Engineer.

Cathodic Protection
The cathodic protection subconsultant will conduct the following services:
 In-situ soil resistivity testing with by the Wenner four-electrode method at the well site. Resistivity testing will be conducted at up to three (3) locations to a depth of 20 feet below grade or the proposed pipeline depth, whichever is shallower.  Soil analysis on up to two (2) samples for as-received and saturated resistivities, pH, and concentrations of chlorides, sulfates, and bicarbonates.

Potholing
Potholing will be performed to confirm the location of buried utilities. Up to three (3) potholes will be performed at a depth of up to six (6) feet. 253
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Field Survey
Field surveys will be conducted to verify the existing conditions at the well site. The limits of the proposed survey area are shown in the image below.

Proposed Survey / Mapping Limits
Horizontal and vertical survey control will be established at the project site based upon the City of Stockton horizontal control network (Record of Survey 35-005) and vertical survey control system (City of Stockton Benchmark Book). Horizontal survey control will be referenced to the California Coordinate System of 1983, Zone 3, U.S. Survey Foot units (CCS83-Z3). Vertical survey control will be referenced to the City of Stockton’s Benchmarks, either the National Geodetic Vertical Datum of 1929 (NGVD29) or the North American Vertical Datum of 1988 (NAVD88), whichever is appropriate for the project. A ground-based survey will be performed utilizing conventional, 3D laser scanning, and/or GPS surveying techniques at the SSS8 well site. The general items to be surveyed within the project limits include the following:
1) Hardscape Features
2) Structures
3) Site Appurtenances
4) Fences
5) Trees
6) Visible Surface Utilities
7) Invert Elevations of Visible and Accessible Below Grade Utilities 254
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8) Spot Elevations in Flat Areas
9) Offsets to Utility Pothole Reference Points and Geotechnical Explorations Topographic mapping will be prepared using the survey information collected. Mapping will be prepared at a 1-foot contour interval and a horizontal scale of 1” = 20’. The final topographic mapping will show contours and visible surface features within the mapping limits. The topographic mapping will be delivered as an AutoCAD Civil 3D DWG file and PDF file. AutoCAD drawings shall be submitted in unprotected and modifiable digital CAD file in Civil 3D 2018 format.

Field surveys will be performed to search for existing monuments based on records research and prepare preliminary boundary/right of way mapping for the project site.

The mapping will show existing boundary lines, right of way lines, and existing easements, to be identified using record documents from a preliminary title report.

Preliminary boundary/right of way mapping will be referenced to the project base mapping coordinate system.

Task 2.4 Basis of Design Report
Contractor will prepare a Basis of Design Report (BODR) summarizing the findings of the preliminary design activities, which will serve as the engineering technical report for submittal to DDW.

The BODR is anticipated to include:
 Results of field investigations
 Documentation of treatment alternatives analysis
 Design criteria for project components and systems
 High-level evaluation of well pump hydraulic requirements  Electrical power supply requirements
 Preliminary site layouts
 Permitting requirements
 Startup, commissioning, and testing plan
 Preliminary drawing list
 Preliminary table of contents for specifications
 Well disinfection system
A BODR Review Meeting will be conducted with the City to review key BODR decisions and documentation.
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Task 2 Deliverables
The following deliverables will be provided for Task 2. Deliverables will be provided in electronic format unless otherwise noted.
 Alternatives Analysis Workshop agenda, slides, and minutes  Final Geotechnical Report
 Final Topographic Survey
 Draft and Final BODR
 BODR Review Meeting agenda, slides, and minutes
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Task 3: Permitting
Many of the permitting requirements pertain to construction and operation of the Facilities and therefore, are not applicable until Phase 2. Nevertheless, the Contractor will coordinate with the appropriate regulatory agencies, list the appropriate permits, understand the permitting requirements, resolve permitting issues identified in Phase 1, and prepare a schedule and action plan for obtaining all permits that are required to construct and operate the Facilities.

Contractor will support the City by identifying DDW concerns early in the project.

Contractor will coordinate a BODR review meeting with DDW and the City so that any DDW concerns are documented, and any potential requested changes can be incorporated into the detailed design. Contractor will also prepare a list of necessary permits and schedule for obtaining them during Phase 2.

CEQA Documentation
It is anticipated the project would require preparation of an Initial Study (IS) followed by a Negative Declaration (ND) or Mitigated Negative Declaration (MND). In addition, Contractor shall perform a Natural/Cultural Resources evaluation.

Prepare Mitigated Neg/Dec:

Task No. Description of Scope Item
1 Review background materials (proposed treatment system, existing site conditions, desktop environmental mapping)
2 Draft Project Description
3 Develop IS/MND Outline (EA Checklist)
4 Develop Admin Draft IS/MND
5 Client Review of Admin Draft IS/MND
6 Respond to Client Comments – Draft IS/MND
7 Client Backcheck of Draft IS/MND
8 Finalize Draft IS/MND
9 Client Review of final IS/MND
10 Respond to Client Comments and develop final IS/MND
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Public Engagement Activities:

Task No. Description of Scope Item
1 Draft Notice of Intent (NOI) to Adopt MND
2 Client Review and Finalize NOI
3 Public NOI and IS/MND
4 Public Review Period (30-d)
5 Public Meeting (if needed)
6 Response to Public and Agency Comments
7 Approval of Final IS/MND & File Notice of Determination with Local & State Agencies
Task 3 Deliverables
The following deliverables will be provided for Task 3. Deliverables will be provided in electronic format unless otherwise noted.
 DDW BODR Review Meeting agenda, slides, and minutes
 List of necessary permits and a schedule for obtaining them during Phase 2 Tasks 4 and 5: 25% and 60% Plans, Specifications, and Draft Cost Model Contractor will prepare 25% and 60% submittals that include plans, specifications, and a draft cost model. Contractor will use industry standard cost model and Contractor will provide review of the model for the early design submittals.

Specifications will be provided for major equipment only. Examples of major equipment include cartridge filters, media vessels, PFAS treatment media, disinfection system, and if required, well pumps, motors, and drives. Full specifications will be provided in Phase 2, if authorized.

The final project design is anticipated to include the number of drawings listed below.

The 25% and 60% design submittals will include drawings necessary to convey the project requirements at the respective level of design.  Four (4) General Drawings
 Five (5) Civil Site Drawings
 Two (2) Landscape Drawings
 Eight (8) Structural Drawings
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 Seven (7) Mechanical Drawings
 Eleven (11) Electrical Drawings
 Seven (7) Instrumentation and Control Drawings
A value engineering review will be conducted by Contractor at 25% design. Results of the VE will be shared with the City during the review meeting to determine if the ideas or concepts are worthy of carrying forward in the design.

Constructability reviews will be conducted as part of the QA/QC for each design submittal. Results of the constructability review will be documented in the QC comment response resolution form.

Task 4 and 5 Deliverables
The following deliverables will be provided for Tasks 4 and 5. Deliverables will be provided in electronic format unless otherwise noted.
 25% Design Submittal
o Plans in electronic PDF form
o Three (3) full-size sets of printed plans (22”x34”)
o Specifications for major equipment in electronic PDF form o Initial estimate of probable cost in the Cost Model Format  60% Design Submittal
o Comment response log for addressing City’s comments on 25% submittal o Plans in electronic PDF form
o Three (3) full-size sets of printed plans (22”x34”)
o Specifications for major equipment in electronic PDF form o Updated estimate of probable cost including assumptions in the Cost Model Format
o Outline of O&M manuals, written standard operating procedures (SOP), and training agenda
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Exhibit D
Phase 1 Cost
City of Stockton Municipal Utilities Department
Progressive Design–Build Services
REHABILITATION OF SOUTH STOCKTON SYSTEM GROUNDWATER WELL SSS8 Project 260
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Exhibit E
Phase 2 ESDC Scope of Services
City of Stockton Municipal Utilities Department
Progressive Design–Build Services
REHABILITATION OF SOUTH STOCKTON SYSTEM GROUNDWATER WELL SSS8 Project
Phase 2 Services
The following is a summary of the Phase 2 Design and Engineering Services during Construction (ESDC) Scope of Services. The Phase 2 Scope of Services will be further detailed in the Phase 2 Proposal. All Phase 2 services are contingent on satisfactory performance of Phase 1 services and successful negotiation of a Contract amendment for Phase 2. The following activities are anticipated in Phase 2:
 Completion of final design packages as necessary for physical construction of the Facilities
 Completion of permitting services including obtainment of building and operating permits
 Procurement of equipment and materials separately from construction contracts as necessary to achieve project delivery schedule
 Integration with the City’s SCADA system
 Compliance with all permitting terms and conditions
 Compliance with all environmental mitigation requirements if required  Site safety and security during construction including coordination of site visits  Completion of start-up and all required acceptance tests, SOP development, training, and including provision of chemicals during start-up  Provision of an operations and maintenance (O&M) manual, as-built drawings and other project documentation in searchable Adobe Acrobat format; as-built drawings also provided on Mylar sheets and in AutoCAD files  Training of the City staff
 Completion of the project within the GMP or Lump Sum Price and contract time and in accordance with all Contract requirements
Contractor shall prepare final design packages as necessary to facilitate permitting and construction of the Facilities and notify the City of any deviations from the approved Phase 261
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1 work products. City shall review the final design packages and construction/procurement submittals to confirm such conformance.

Contactor shall use the Phase 1 work products to procure all necessary equipment and materials for construction of the Facilities.

Contractor shall use the preliminary permitting information from Phase 1 and supplemental documentation to prepare complete applications for all necessary permits for construction of the Facilities and operation of the Facilities. Contractor shall track the permitting applications and proactively work with the permitting agencies to facilitate approval, respond to agency questions, and provide supplemental information as requested by the permitting entities.

The City and its agents will conduct regular inspections throughout construction to ensure that the work is completed in accordance with the approved Phase 1 work products, final design packages, and Contract amendment for Phase 2.

Contractor shall prepare and deliver conformed as-built drawings in both electronic and hard copy formats.

The Facilities must pass two acceptance tests: an Initial Acceptance Test as part of and as a condition of Substantial Completion and a Final Acceptance Test as part of and as a condition for Final Acceptance and Completion. The Contractor shall conduct the Initial Acceptance Test after certifying to the City that the Contractor is ready for the test, and the Contractor is in compliance with the applicable terms of the Contract. Readiness means that the Facilities can produce treated groundwater meeting drinking water standards is operable, and the equipment manufacturers have certified that the equipment was properly installed and tested in accordance with manufacturer recommendations.

It is recognized that construction to the point of final completion and acceptance is not necessary for the Acceptance Test. For example, non-operating components such as landscaping are not critical to Substantial Completion and the Acceptance Test.

Therefore, continued construction to the point of final completion is acceptable after the Acceptance Test as long as such construction does not affect compliance with the Performance Requirements.

The Acceptance Test shall demonstrate compliance with the Performance Requirements.

Contractor shall perform all acceptance testing for the Facilities and prepare and submit acceptance test reports (potentially by third-party consultant(s)) as specified in the Contract amendment. The City will not accept the Facilities until the Contractor furnishes an acceptable Acceptance Test report. Furthermore, the City will not accept the Acceptance Test results until the City and Contractor obtain any necessary regulatory agency approvals of the test results.
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Contractor shall complete all repairs and replacements to equipment, materials, structures and other improvements constituting the Facilities as necessary after the Acceptance Test and prior to Final Completion.

Except as excused by City fault, Contractor shall design and construct Facilities that can continuously operate (uninterrupted 24 hours per day, seven days per week) in accordance with the Performance Requirements as specified in the Contract. Liquidated damages may be assessed by the City if the design and construction result in Facilities that cannot achieve the Performance Requirements.
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Exhibit F
Phase 2 ESDC Cost
City of Stockton Municipal Utilities Department
Progressive Design–Build Services
REHABILITATION OF SOUTH STOCKTON SYSTEM GROUNDWATER WELL SSS8 Project
Phase 2 Engineering Fee:

10.00% of Construction cost
264
EXHIBIT 1
Exhibit G
Phase 2 CM Scope of Services
City of Stockton Municipal Utilities Department
Progressive Design–Build Services
REHABILITATION OF SOUTH STOCKTON SYSTEM GROUNDWATER WELL SSS8 Project
The Phase 2 Construction Management (CM) Scope of Services will be detailed in the Phase 2 Proposal to be submitted at the end of the Phase 1 Services. A general description of Phase 2 Services is provided in Exhibit E. 265
EXHIBIT 1
Exhibit H
Phase 2 CM Cost
City of Stockton Municipal Utilities Department
Progressive Design–Build Services
REHABILITATION OF SOUTH STOCKTON SYSTEM GROUNDWATER WELL SSS8 Project
Phase 2 Construction Management Fee:

6.90% of Construction cost
266
EXHIBIT 1
Exhibit J
Off Ramp Scope of Services
City of Stockton Municipal Utilities Department
Progressive Design–Build Services
REHABILITATION OF SOUTH STOCKTON SYSTEM GROUNDWATER WELL SSS8 Project
Task 1: Project Management and Meetings
Task 1.1 Project Management
Contractor’s Design Manager will prepare monthly invoicing and status reports showing progress to date, project schedule update, and budget update. The Design Manager will coordinate activities with the design disciplines on a weekly basis throughout the design phase.

Task 1.2 Project Meetings and Coordination
Contractor will attend scheduled project coordination meetings with the City’s project team over the course of the design. This will include up to three (3) virtual coordination meetings. Contractor will provide an agenda at least one (1) day prior to the meetings and provide meeting minutes within five (5) days of all meetings attended. In addition, Contractor proposes weekly conference calls with the City to provide an update on design progress and discuss any key decision points related to the project.

Task 1 Deliverables
The following deliverables will be provided for Task 2. Deliverables will be provided in electronic format unless otherwise noted.
 Monthly invoices and progress reports
 Meeting agendas, slides, and minutes
Task 3: Permitting
Contractor will provide assistance to the City for Permitting with DDW, including preparation of technical reports for the approval of a Domestic Water Supply Permit Amendment. Contractor shall incorporate approvable available treatment technologies in the system design for DDW permit issuance.

If upgrades to electrical service are required, Contractor will identify and apply for electrical service from Pacific Gas & Electric.
267
EXHIBIT 1
Tasks 6: 90% and 100% Plans, Specifications, and Cost Model Contractor will prepare 90% and 100% submittals that include plans, specifications, and a draft cost model.

The final project design is anticipated to include the number of drawings listed below.  Four (4) General Drawings
 Five (5) Civil Site Drawings
 Two (2) Landscape Drawings
 Eight (8) Structural Drawings
 Seven (7) Mechanical Drawings
 Eleven (11) Electrical Drawings
 Seven (7) Instrumentation and Control Drawings
A value engineering and constructability review will also be included as part of the QA/QC for each design submittal.

Task 6 Deliverables
The following deliverables will be provided for Task 6. Deliverables will be provided in electronic format unless otherwise noted.
 25% Design Submittal
o Comment response log for addressing City’s comments on 60% submittal o Plans in electronic PDF form
o Three (3) full-size sets of printed plans (22”x34”)
o Technical specifications in electronic PDF form
o Three (3) sets of printed and bound technical specifications o Engineer’s Opinion of Probable Cost Technical Memoranda  100% Design Submittal
o Comment response log for addressing City’s comments on 90% submittal o Plans in electronic PDF form
o Three (3) full-size sets of printed plans (22”x34”)
o Technical Specifications in electronic PDF form
o Three (3) sets of printed and bound technical specifications o Engineer’s Opinion of Probable Cost Technical Memoranda 268
EXHIBIT 1
Exhibit K
Off Ramp Cost
City of Stockton Municipal Utilities Department
Progressive Design–Build Services
REHABILITATION OF SOUTH STOCKTON SYSTEM GROUNDWATER WELL SSS8 Project
First-Off Ramp (Design) Fee:
$360,355 Lump Sum
269
EXHIBIT 1
Exhibit L
Off Ramp ESDC Scope of Work
City of Stockton Municipal Utilities Department
Progressive Design–Build Services
REHABILITATION OF SOUTH STOCKTON SYSTEM GROUNDWATER WELL SSS8 Project
Contractor will provide engineering services during construction phase, including:
 Review of up to 100 shop drawings, including resubmittals.  Respond to up to a total of 20 Requests for Information.  Provide revisions to the construction drawings as directed by the City. Assumed a total of 24 hours of design time and 18 hours of engineering time.  Attend up to 8 construction meetings. Assumed each meeting is 1-hour duration.  Prepare a draft and final electronic version of record drawings, and one full size hard copy of record drawings, at the completion of construction. City to review draft record drawings, and comments to be incorporated into final submittal.  Provide assistance during start-up and testing. Assistance, at a minimum, will include participation by the electrical design engineer and process mechanical engineer. Assumed start-up and testing assistance for a 2-day period. 270
EXHIBIT 1
Exhibit M
Off Ramp ESDC Cost
City of Stockton Municipal Utilities Department
Progressive Design–Build Services
REHABILITATION OF SOUTH STOCKTON SYSTEM GROUNDWATER WELL SSS8 Project
Second-Off Ramp (ESDC) Fee:
$166,462 Lump Sum
271
City of Stockton
Legislation Text
File #: 22-0148, Version: 1

APPROVE FINDINGS AND EXECUTE A CONTRACT WITH KEMIRA WATER SOLUTIONS FOR

THE PURCHASE OF FERRIC AND FERROUS CHLORIDE FOR WASTEWATER TREATMENT AND AMEND FISCAL YEAR 2021-22 ANNUAL BUDGET

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

1. Approving findings which support and justify an exception to the competitive bidding process.

2. Authorize the City Manager to execute a five-year contract with Kemira Water Solutions (Exhibit 1 to the Resolution) for the purchase of Ferric Chloride and Ferrous Chloride for wastewater treatment.

3. Appropriate funds in the amount of $210,000 from the Wastewater Utility Fund balance to the Wastewater Treatment Plant Operations, Maintenance & Repairs Services account.

It is also recommended that the Council action authorize the City Manager to take appropriate and necessary actions to carry out the purpose and intent of the resolution.

Summary
Ferric and ferrous chloride are chemicals used to control hydrogen sulfide production at the Regional Wastewater Control Facility (RWCF). Elevated hydrogen sulfide levels can be dangerous and are regulated under a permit with the San Joaquin Valley Air Pollution Control District. In July 2021, the contracted provider of ferric chloride, Thatcher Company of California, declared force majeure which prevented any further chemical supply deliveries under their contract. After additional investigation, it was found that Kemira Water Solutions, Mohave, CA is the only available chemical supplier able to provide sufficient ferric and ferrous chloride supplies to the RWCF. This company possesses its own production facility and is not dependent on other manufacturers.

The Council action will approve findings of an exception to the competitive bidding process and will authorize the City Manager to execute a five-year contract with Kemira Water Solutions (Kemira) for the purchase of ferric chloride and ferrous chloride for wastewater treatment at the price of $1,117.12 per ton and $1,224.32 per ton, respectively.

DISCUSSION
Background
Various chemicals are used in the wastewater treatment process to induce changes in the City of Stockton Page 1 of 3 Printed on 3/16/2022
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wastewater that reduce hazardous conditions and remove specific impurities. These chemical and physical changes are necessary to meet wastewater permit requirements.

Ferric and ferrous chloride are used to control hydrogen sulfide production at the RWCF Headworks and Anaerobic Digesters. Hydrogen sulfide production at the digesters is regulated under the San Joaquin Valley Air Pollution Control District (Air Board) permit for the operation of the RWCF Cogeneration engines. These permits set limits on the amount of hydrogen sulfide contained in the methane gas produced by the digesters and fed to the co-generation engines. The permit limits both the methane fuel content and the exhaust from the engines. Hydrogen sulfide production is effectively controlled by chemical addition and has been the operational standard for the RWCF for several years. The RWCF’s infrastructure was designed and constructed to dose ferric or ferrous chloride.

In May 2021, Council approved a contract to purchase ferric chloride from Thatcher Company of California (Thatcher) as part of the Bay Area Chemical Consortium (BACC) bid process. In July, Thatcher informed the MUD their supplier had declared force majeure on their production of ferric chloride due to a nationwide shortage of hydrochloric acid, a catalyst compound necessary in their production of ferric chloride. A contract change order was executed in August 2021 to allow for the purchase of a substitute chemical, ferrous chloride. Other BACC bidders were contacted, but no new contracts were issued until supplies could stabilize throughout the industry.

On September 28, Thatcher informed the MUD they would not be able to deliver either ferric or ferrous chloride. MUD again contacted the other BACC respondents to explore contract options. Only Kemira responded and confirmed they were willing to enter into a contract with the City and had supplies of both ferric and ferrous chloride available at the quantities needed by the RWCF. An emergency purchase order up to the City Manager’s spending limit was approved in October 2021.

Present Situation
Kemira is located in Southern California and owns its chemical production facility. Because they are not dependent on by-products from other industries, the company is able to reliably produce both ferric and ferrous chloride at the volumes needed by the RWCF to control the production of hydrogen sulfide. Kemira was the only company willing to offer a contract to the City when Thatcher could not meet its contractual obligations.

The funds from the emergency purchase order are insufficient to fund supplies through the end of FY 2021-22. If approved, this action will authorize the execution of a contract for the supply of ferric or ferrous chloride from Kemira for the remainder of FY 2021-22 through December 31, 2026.

Findings
Stockton Municipal Code Section 3.68.070(A)(4) provides an exception to the competitive bidding requirements when City Council approves findings that support and justify the purchase through a sole source vendor.

Proposed findings to support this purchase are:

1. Thatcher Company of California is unable to provide the chemicals needed by MUD under its City of Stockton Page 2 of 3 Printed on 3/16/2022
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contract.

2. The Air Board requires control of the formation of hydrogen sulfide in the digesters. The RWCF cannot control hydrogen sulfide production without adding either ferric or ferrous chloride and could be in violation of their permit.

3. The other respondents from the BACC bid were contacted to enter into a contract. Only Kemira responded to the staff inquiries.

4. There are no other companies capable of, or willing to, provide ferric or ferrous chloride to the RWCF.

5. Kemira owns its production facility and is not dependent on by-products from other industries.

6. Kemira has a previous history of reliable service to the City.

FINANCIAL SUMMARY
The table below shows the cost and projected usage for the entire 5-year term of the contract:

Ferric Chloride Ferrous Chloride Total
Cost/ton $1,117.12 $1,224.32
Estimated Annual Quantity (tons) 100 425 525
FY 2022 (partial) $37,237 $173,445 $210,682
FY 2023 $115,063 $535,946 $651,009
FY 2024 $118,515 $552,024 $670,539
FY 2025 $122,071 $568,585 $690,656
FY 2026 $125,733 $585,643 $711,376
FY 2027 (through 12-31-2026) $64,752 $301,606 $366,358
Total $583,371 $2,717,249 $3,300,620
The quantities listed above are estimates only. The actual quantities purchased may vary depending on treatment needs and will be purchased at the contracted rates. The not-to-exceed amount represents the total expense throughout the potential 5-year contract term and includes a 3% annual escalation per year starting in FY 2023.

A budget appropriation in FY 2021-22 is recommended in the amount of $210,000 from the Wastewater Utility Fund Balance account to the Wastewater Treatment Plant Operations, Chemicals account. With this appropriation, there will be sufficient funds in the proposed contract for the remainder of FY 2021-22. Future purchases will be budgeted in the same account in subsequent fiscal years and subject to Council approval during the annual budget development process.

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

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274
Resolution No.

STOCKTON CITY COUNCIL

RESOLUTION APPROVING FINDINGS TO SUPPORT AND JUSTIFY AN EXCEPTION TO THE COMPETITIVE BIDDING PROCESS; AUTHORIZING AN APPROPRIATION OF $210,000 FROM THE WASTEWATER UTILITY FUND BALANCE FISCAL YEAR 2021-22 BUDGET; AND AUTHORIZING A CONTRACT WITH KEMIRA WATER

SOLUTIONS FOR THE PURCHASE OF FERRIC AND FERROUS CHLORIDE The Regional Wastewater Control Facility (RWCF) uses various chemicals as part of the wastewater treatment process that reduce hazardous conditions and remove specific impurities. These chemical and physical changes are necessary to meet wastewater permit requirements; and
On May 21, 2021, by Motion No. 2021-05-25-1206, Council authorized the City Manager to award and execute a Contract with Thatcher Company of California, in the amount of $309,200, as part of the Bay Area Chemical Consortium (BACC) bid process, for the purchase of ferric chloride for wastewater treatment; and In July 2021, Thatcher informed the MUD their supplier had declared force majeure on their production of ferric chloride due to a nationwide shortage of hydrochloric acid, a catalyst compound necessary for producing ferric chloride. A contract change order was executed in August 2021 to allow for the purchase of a substitute chemical, ferrous chloride; and
On September 28, 2021, Thatcher informed the MUD they would not be able to deliver either ferric or ferrous chloride. Staff contacted other BACC respondents to explore contract options. Only Kemira responded and confirmed the company was willing to enter into a contract with the City and had supplies of both ferric and ferrous chloride available at the quantities needed by the RWCF; and
Kemira Water Solutions owns its chemical production facility and is capable meeting the supply needs of the City; and
In October 2021 an emergency purchase order with Kemira up to the City Manager’s spending limit was approved; and
The Fiscal Year 2021-22 expenditure budget does not include sufficient funds to purchase supplies of ferric or ferrous chloride through the end of the fiscal year ; and Appropriation from the fund balance is necessary to ensure adequate funds are available for purchase of these chemical for wastewater treatment during Fiscal Year 2021-22; now, therefore,

BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF STOCKTON, AS FOLLOWS:
275

1. The City Council approves the following findings pursuant to Stockton Municipal Code section 3.68.070, which support and justify an exception to the competitive bidding process for the purchase of ferric and ferrous chloride:
a. The current contracted company, Thatcher Company of California, is unable to provide the chemicals under their contract.
b. The San Joaquin Valley Air Pollution Control District requires control of the formation of hydrogen sulfide in the digesters. The RWCF cannot control hydrogen sulfide production without adding either ferric or ferrous chloride and could be in violation of their permit.
c. The other respondents from the BACC bid were contacted to enter into a contract on two separate occasions. Only Kemira responded to the MUD’s inquiries.
d. There are no other companies capable of, or willing to, provide ferric or ferrous chloride to the City.
e. Kemira owns its production facility and is not dependent on by-products from other industries.
f. Kemira has a previous history of reliable service to the City.

2. The City Manager, or designee, is hereby authorized to amend the Fiscal Year 2021-22 Annual Budget to appropriate $210,000 from the Wastewater Utility Fund Balance to the Wastewater Treatment Plant Operations, Chemicals account.

3. The City Council authorizes the City Manager to execute a five-year contract with Kemira Water Solutions, Exhibit 1 attached and incorporated by this reference, for the purchase of ferric chloride and ferrous chloride for wastewater treatment.

4. 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 22, 2022 .

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

ELIZA R. GARZA, CMC
City Clerk of the City of Stockton
276

CITY OF STOCKTON
STANDARD AGREEMENT Agreement Number: I

1. This Agreement is entered into between the City of Stockton ("City") and Kemira Water Solutions, Inc. ("Contractor") to provide Ferric Chloride and/or Ferrous Chloride for purchase as set forth in Exhibit A to this Agreement.

2. The term of this Agreement is as follows, unless amended as described in Exhibit A and Exhibit C section 8:

Commences on: Terminates on: December 31, 2026

3. The maximum not to exceed amount to be paid to Contractor for the term of this Agreement, including if authorized, reimbursement of expenses, is: $ 3,330,620

4. The complete Agreement consists of all the following Agreement documents which by reference are incorporated and made a part of this Agreement. The parties agree to comply with the terms and conditions of this Agreement.
(a) Exhibit A - Statement of Work
(b) Exhibit B - Insurance
(c) Exhibit C - General Terms and Conditions
(d) Exhibit D - Goods and Services Special Terms & Conditions (e) Exhibit E - Compensation Schedule
(f) Exhibit F - Discrimination and Harassment Policy (HR-15) IN WITNESS WHEREOF, the authorized parties have executed this Agreement.

CONTRACTOR
Kemira Water Solutions, Inc. �v-�bv-tck "�
Con o 's Na (if other than an individual, state wh ther a corporation, partnership, etc.):

A
Christina M. Imbrogno Commercial Support Manager
Printed Name and Title of Person Signing
4321 W. 6th St.

Lavorence, KS 66049 Address

CITY OF STOCKTON
Harry Black, City Manager
ATTEST:

Eliza R. Garza CMC, City Clerk
APPROVED AS TO FORM:

John M. Luebberke, City Attorney
BY:
(Rev. 1.06.22)
1 ;)- 3 2--L.--
Date
EXHIBIT 1 277

1. 2.

Project Objectives.

EXHIBIT A

STATEMENT OF WORK
The objective of this project is for the supply and delivery of Ferric Chloride and/or Ferrous Chloride.

Proiect Scope.

The Contractor shall provide the goods and insurance as specified. The contractor shall supply Material Safety Data Sheets.

3. Notices.

Pursuant to Exhibit C - General Terms and Conditions, Paragraph 15 - Notices, the mailing address for all required notices is as follows:

Contractor: Kemira Water Solutions, Inc.

Attn: Christina Imbrogno
4321 W. 6
th Street
Lawrence, KS 66049
City: City of Stockton
Attn: City Manager
425 N. El Dorado Street
Stockton, CA 95202
EXHIBIT 1 278
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). Please see attached flyer regarding PINS Advantage.

Exhibit B:

Insurance Requirements
(Chemical Vendor- Ferric and Ferrous Chloride)
Contractor shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damage to property which may arise from or in connection with the performance of the work hereunder and the results of that work by the Contractor, their agents, representatives, employees, or subcontractors. With respect to General Liability, Errors & Omissions, Contractors Pollution Liability, and/or Asbestos Pollution Liability, coverage should be maintained for a minimum of five (5) years after contract completion.

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, bodily injury and personal & advertising injury with limits no less than $3,000,000 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 Number CA 0001 covering any auto (Code 1), or if Contractor has no owned autos, hired (Code 8) and non-owned (Code 9) autos, with limit 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 Employer's Liability Insurance with limit of no less than $1,000,000 per accident for bodily injury or disease.

4. Contractors Pollution Liability and/or Asbestos Pollution Liability applicable to the work being performed, with a limit no less than $2,000,000 per claim or occurrence and $2,000,000 aggregate per policy period of one year.

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 representation 1 (Rev. 10.30.18)
EXHIBIT 1 279
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 noncontributory" 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.

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.
2 (Rev. 10.30.18)
EXHIBIT 1 280

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, 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.

5. If the services involve lead-based paint or asbestos identification/remediation, the Contractors Pollution Liability policy shall not contain lead-based paint or asbestos exclusions. If the services involve mold identification/remediation, the Contractors Pollution Liability 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 that 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 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
Self-insured retentions must be declared to and approved by the City of Stockton Risk Services. At the option of the City of Stockton, the Contractor shall provide coverage to reduce or eliminate such self-insured retentions as respects the City of Stockton, its officers, officials, employees, and volunteers; or the Contractor shall provide evidence satisfactory to the City of Stockton guaranteeing payment of losses and related investigations, claim administration, and defense expenses. 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. 3 (Rev. 10.30.18)
EXHIBIT 1 281
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, 3
rd Floor - HR
Stockton, CA 95202
(Rev. 10.30.18)
4 EXHIBIT 1 282

EXHIBIT C

GENERAL TERMS AND CONDITIONS
1 Goods, Equipment and Seryjces, Subject to the terms and conditions set forth in this Agreement, Contractor shall provide to City the services described in Exhibit A of the Agreement. Contractor shall provide said services at the time, place and in the manner specified in Exhibit A of the Agreement.
2 Cjty Assjstance, Facjljtjes, Eaujpment and c1erjca1 Support, Except as set forth in Exhibit A, Contractor shall, at its sole cost and expense, furnish and maintain all facilities and equipment that may be required for furnishing services pursuant to this Agreement. If applicable, City shall furnish to Contractor only the facilities and equipment listed in Exhibit A to the Agreement.
3 Compensatjon. City shall pay Contractor for services rendered pursuant to this Agreement as described more particularly in Exhibit A and Exhibit E to the Agreement.

3.1 Invoices submitted by Contractor to City must contain a brief description of work performed, time spent and City reference number. Within thirty (30) days of receipt of Contractor's invoice, City will review invoice, and if acceptable make payment on approved invoice.

3.2 Upon completion of work and acceptance by City, Contractor 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. The City shall have no obligation or liability to pay any invoice for work performed which the Contractor fails or neglects to submit within sixty (60) days, or any extension thereof granted by the City, after the work is accepted by the City.
4 Syfficjencv of Contractor's Work. All Contractor services, work, and deliverables shall be performed in a good and workmanlike manner with due diligence in accordance with the degree of skill normally exercised by similar contractors supplying services and work of a similar nature, and in conformance with applicable laws, codes and professional standards. Contractor's work shall be adequate and sufficient to meet the purposes of this Agreement.
5 Ownershjp of Work. All reports, work product, all other documents completed or partially completed by Contractor or its approved subcontractors, in performance of this Agreement, and if applicable, drawings, designs, and plan review comments shall become the property of the City. Any and all copyrightable subject matter in all materials is hereby assigned to the City and the Contractor and its approved subcontractors agree 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 Agreement. If any materials are lost, damaged or destroyed before final delivery to the City, the Contractor shall replace them at its own expense. Contractor and its approved subcontractors shall keep materials confidential. Materials shall not be used for purposes other than performance of 1 ( Rev 10.30.18)
EXHIBIT 1 283
services under this Agreement and shall not be disclosed to anyone not connected with these services, unless the City provides prior written consent. 6 Timeliness. Time is of the essence in this Agreement. Contractor acknowledges that the failure of Contractor to comply with the time limits described in Exhibit A may result in economic or other losses to the City.
7 Changes. Both parties to this Agreement understand that it may become desirable or necessary during the term of this Agreement for City to modify the scope of services provided for under this Agreement. Any material extension or change in the scope of work shall be discussed with City and the change and cost shall be memorialized in a written amendment to the original contract prior to the performance of the additional work. Until the amendment is so executed, City will not be responsible to pay any charges Contractor may incur in performing such additional services, and Contractor shall not be required to perform any such additional services.
8 Amendment. No variation of the terms of this Agreement shall be valid unless an amendment is made in writing and signed by both parties. 9 Contractor's status,

9.1 In performing the obligations set forth in this Agreement, Contractor shall have the status of an independent contractor and Contractor shall not be considered to be an employee of the City for any purpose. All persons working for or under the direction of Contractor are its agents and employees and are not agents or employees of City. Contractor by virtue of this Agreement, has no authority to bind or incur any obligation on behalf of City.

Except as expressly provided in Exhibit A, Contractor has no authority or responsibility to exercise any rights or power vested in the City. No agent, officer or employee of the City is to be considered an employee of the Contractor. It is understood by both Contractor and City that this Agreement shall not be construed or considered under any circumstances to create an employer-employee relationship or a joint venture.

9.2 Contractor shall determine the method, details and means of performing the work and services to be provided by Contractor under this Agreement. Contractor shall be responsible to City only for the requirements and results specified in this Agreement and, except as expressly provided in this Agreement, shall not be subjected to City's control with respect to the physical action or activities of Contractor in fulfillment of this Agreement.

Contractor has control over the manner and means of performing the services under this Agreement. If necessary, Contractor has the responsibility for employing other persons or firms to assist Contractor in fulfilling the terms and obligations under this Agreement.

9.3 If in the performance of this Agreement any third persons are employed by Contractor, such persons shall be entirely and exclusively under the direction, supervision and control of Contractor. All terms of employment including hours, wages, working conditions, discipline, hiring and discharging or any other term of employment or requirements of law shall be determined by the Contractor.
2 {Rev 10.30.18)
EXHIBIT 1 284

9.4 It is further understood and agreed that Contractor must issue W-2 forms or other forms as required by law for income and employment tax purposes for all of Contractor's assigned personnel under the terms and conditions of this Agreement. 10 subcontractor,

10.1 Subcontractors shall not be recognized as having any direct or contractual relationship with City. Contractor shall be responsible for the work of subcontractors, which shall be subject to the provisions of this Agreement. Subcontractors will be provided with a copy of the Agreement and be bound by its terms. Contractor is responsible to City for the acts and omissions of its subcontractors and persons directly or indirectly employed by them.

10.2 If in the performance of this Agreement any third persons are employed by Contractor, such persons shall be entirely and exclusively under the direction, supervision and control of Contractor. 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 Contractor.

10.3 It is further understood and agreed that Contractor must issue W-2 forms or other forms as required by law for income and employment tax purposes for all of Contractor's personnel.
11 Tertninatjon,

11.1 Termination for Convenience of City. The City may terminate this Agreement at any time by mailing a notice in writing to Contractor. The Agreement shall then be deemed terminated, and no further work shall be performed by Contractor. If the Agreement is so terminated, the Contractor shall be paid for the work actually completed at the time the notice of termination is received.

11.2 Should either party default in the performance of this Agreement or materially breach any of its provisions, the other party, at that party's option, may terminate this Agreement by giving written notification to the other party.

11.3 Funding- Non-Appropriation. It is mutually understood between the Parties that payment to the Contractor for performance shall be dependent upon the availability of appropriations by the City Council for the purposes of this Agreement. No legal liability on the part of the City for any payment may arise under this Agreement until funds are made available and until the Contractor has received funding availability, which will be confirmed in writing. If funding for any fiscal year is reduced or deleted, or if the City loses funding for any reason, the City, in its sole discretion, shall have the option to either (a) cause this Agreement to be canceled or terminated pursuant to applicable provisions of the Agreement; or (b) offer to amend the Agreement to reflect the reduced funding for this Agreement. 12 Non-Assjgnabmty. The Contractor shall not assign, sublet, or transfer this Agreement or any interest or obligation in the Agreement without the prior written consent of the City, and 3 (Rev 10.30.18)
EXHIBIT 1 285
then only upon such terms and conditions as City may set forth in writing. Contractor shall be solely responsible for reimbursing subcontractors.
13 lndemnjty and Hold Harmless. To the fullest extent permitted by law, Contractor shall hold harmless, defend at its own expense, and indemnify the City of Stockton, its officers, employees, agents, and volunteers, against any and all liability, claims, losses, damages, or expenses, including reasonable attorney's fees, arising from all acts or omissions of contractor or its officers, agents, or employees in rendering services under this contract; excluding, however, such liability, claims, losses, damages, or expenses arising from the City of Stockton's sole negligence or willful acts. The duty to defend and the duty to indemnify are separate and distinct obligations. The indemnification obligations of this section shall survive the termination of this agreement. 14 losyrance. During the term of this Agreement, Contractor shall maintain in full force and effect at its own cost and expense the insurance coverage as set forth in the attached Exhibit B to this Agreement and shall otherwise comply with the other provisions of Exhibit B to this Agreement.
15 Notjces. All notices herein required shall be in writing and shall be sent by certified or registered mail, postage prepaid, addressed in Exhibit A to this Agreement. 16 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 Agreement on the basis of any legally protected classification, including race, color, national origin, ancestry, sex or religion of such person.
17 Licenses. Certifications and Perrnjts. Prior to the City's execution of this Agreement and prior to the Contractor's engaging in any operation or activity set forth in this Agreement, Contractor shall obtain a City of Stockton business license, which must be kept in effect during the term of this Agreement. Contractor covenants that it has obtained all certificates, licenses, permits and the like required to perform the services under this Agreement. Such licenses, certificates and permits shall be maintained in full force and effect during the term of this Agreement.
18 Records and Audits,
Contractor shall maintain all records regarding this Agreement and the services performed for a period of three (3) years from the date that final payment is made. At any time during normal business hours, the records shall be made available to the City to inspect and audit. To the extent Contractor renders services on a time and materials basis, Contractor shall maintain complete and accurate accounting records, in a form prescribed by City or, if not prescribed by City, in accordance with generally accepted accounting principles, such 4 (Rev 10.30.18)
EXHIBIT 1 286
records to include, but not be limited to, payroll records, attendance cards, time sheets, and job summaries.
19 Confjdentjaljtv. Contractor shall exercise reasonable precautions to prevent the unauthorized disclosure and use of City reports, information or conclusions. 20 Conflicts of Interest. Contractor covenants that other than this Agreement, Contractor has no financial interest with any official, employee or other representative of the City. Contractor 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 Contractor's services under this Agreement. If such an interest arises, Contractor shall immediately notify the City.
21 Wajyer. In the event either City or Contractor at any time waive any breach of this Agreement by the other, such waiver shall not constitute a waiver of any other or succeeding breach of this Agreement, whether of the same or of any other covenant, condition or obligation. No payment, partial payment, acceptance, or partial acceptance by City shall operate as a waiver on the part of City of any of its rights under this Agreement. 22 Goyernjng Law. California law shall govern any legal 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.
23 No Personal LjabHjtv. No official or employee of City shall be personally liable to Contractor in the event of any default or breach by the City or for any amount due Contractor. 24 Seyerabmty. If any portion of this Agreement or application thereof to any person or circumstance shall be declared invalid by a court of competent jurisdiction or if it is found in contravention of any federal, state or city statue, ordinance or regulation the remaining provisions of this Agreement or the application thereof shall not be invalidated thereby and shall remain in full force and effect to the extent that the provisions of this Agreement are severable.
25 Non-pjscrjmjnatjon, During the performance of this Agreement, Contractor and its officers, employees, agents, representatives or subcontractors shall not unlawfully discriminate in violation of any federal, state, or local law, rule or regulation against any employee, applicant for employment or person receiving services under this Agreement because of race, religion, color, national origin, ancestry, physical or mental disability, medical condition (including genetic characteristics), marital status, age, political affiliation, sex or sexual orientation, family and medical care leave, pregnancy leave, or disability leave.

Contractor and its officers, employees, agents, representative or subcontractors shall comply with all applicable Federal, State and local laws and regulations related to non-discrimination 5 ( Rev 10.30.18)
EXHIBIT 1 287
and equal opportunity, including without limitation the City's nondiscrimination policy; the Fair Employment and Housing Act (Government Code sections 12990 (et seq.); California Labor Code sections 1101, 1102 and 1102.1; the Federal Civil Rights Act of 1964 (P.L. 88-352), as amended; and all applicable regulations promulgated in the California Code of Regulation or Code of Federal Regulations. 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 requires compliance with the requirements of Title VI in all of its programs and activities regardless of funding source. 26 Force Majeure. Neither party shall be responsible for delays or failures in performance resulting from acts of God, acts of civil or military authority, terrorism, fire, flood, strikes, war, epidemics, pandemics, shortage of power or other acts or causes reasonably beyond the control of that party. The party experiencing the force majeure event agrees to give the other party notice promptly following the occurrence of a force majeure event, and to use diligent efforts to re-commence performance as promptly as commercially practicable. 27 Taxes and Charges. Contractor shall be responsible for payment of all taxes, fees, contributions or charges applicable to the conduct of the Contractor's business. 28 Cumyjatjye Rjghts. Any specific right or remedy provided in this Agreement will not be exclusive but will be cumulative of all other rights and remedies to which may be legally entitled.
29 Adyjce of Attorney. Each party warrants and represents that in executing this Agreement, it has received independent legal advice from its attorneys or the opportunity to seek such advice.
30 Headjng Not Contromng, Headings used in this Agreement are for reference purposes only and shall not be considered in construing this Agreement. 31 Entjre Agreement. Integration, and Modjfjcatjon,

31.1 This Agreement represents the entire integrated agreement between Contractor and the City; supersedes all prior negotiations, representations, or agreements, either written or oral between the parties and may be amended only by a written Amendment signed by the Contractor and City Manager.

31.2 All Exhibits to this Agreement and this Agreement are intended to be construed as a single document.
6 ( Rev 10.30.18)
EXHIBIT 1 288
32 Counterparts, This Agreement may be executed in one or more counterparts, each of which shall be deemed an original. All counterparts shall be construed together and shall constitute one agreement.
33 Authorjty, The individual(s) executing this Agreement represent and warrant that they have the legal capacity and authority to do so on behalf of their respective legal entities. 7 ( Rev 10.30.18)
EXHIBIT 1 289

EXHIBIT D

GOODS AND SERVICES SPECIAL TERMS AND CONDITIONS
1 pefjnjtjons, The following words and phrases have the following meanings for purposes of this Agreement:

1.1 "Services" means, collectively, the services, duties and responsibilities described in Exhibit A of this Agreement and any and all work necessary to complete them or carry them out fully and to the standard of performance required in this Agreement.

1.2 "Deliverable" means quantifiable goods or services that will be provided upon completion of a project. A deliverable is any tangible material, work or thing delivered by one party to the other, including associated technical documentation. A deliverable can be tangible or intangible parts of the development process, and often are specified functions or characteristics of the project.
2 General. The following terms and conditions are applicable for the purchase of goods and services only. The special conditions shall be read in conjunction with the Standard Agreement, General Terms and Conditions ("GTC") Exhibit C, and all other Exhibits identified in the Standard Agreement.

2.1 Where any portion of the GTC is in conflict to or at variance with any provisions of the Special Conditions of the Agreement, then unless a different intention stated, the provision(s) of the Special Conditions of the Agreement shall be deemed to override the provision(s) of GTC only to the extent that such conflict or variations in the Special Conditions of the Agreement are not possible of being reconciled with the provisions of the GTC.

2.2 In the case of modification of a part or provision of the GTC, the unaltered part or provision, or both shall remain in effect. The Special Conditions shall relate to a particular project and be peculiar to that project but shall not weaken the character or intent of the GTC.
3 Jjme tor Pertormance,

3.1 Contractor shall perform the services according to the schedule contained in Exhibit A

3.2 Timeliness of Performance i) Contractor shall provide the Services, and Deliverables within the term and within the time limits required under this Agreement, pursuant to the provisions of Exhibit A ii) Neither Contractor nor Contractor's agents, employees nor subcontractors are entitled to any damages from the City, nor is any party entitled to be reimbursed by the City, for damages, charges or other losses or expenses incurred by Contractor by reason of delays or hindrances in the performance of the Services, whether or not caused by the City.
8 ( Rev 10.30.18)
EXHIBIT 1 290
4 Standard of Performance
In addition to Exhibit C, Section 4 and 17, Contractor agrees as follows:

4.1 Contractor's Services shall be performed in accordance with generally accepted professional practices and principles and in a manner consistent with the level of care and skill ordinarily exercised by members of Contractor's profession currently practicing under similar conditions. Contractor shall comply with the profession's standard of performance, applicable laws, regulations, and industry standards. By delivery of completed work, Contractor certifies that the work conforms to the requirements of this Agreement and all applicable federal, state, and local laws. If Contractor is retained to perform services requiring a license, certification, registration or other similar requirement under California law, Contractor shall maintain that license, certification, registration, or other similar requirement throughout the term of this Agreement.

4.2 Contractor acknowledges that it is entrusted with or has access to valuable and confidential information and records of the City and with respect to that information, Contractor agrees to be held to the standard of care of a fiduciary. Contractor shall assure that all services that require the exercise of professional skills or judgment are accomplished by professionals qualified and competent in the applicable discipline and appropriately licensed, if required by law. Contractor must provide copies of any such licenses. Contractor remains responsible for the professional and technical accuracy of all Services or Deliverables furnished, whether by Contractor or its subcontractors or others on its behalf. All Deliverables must be prepared in a form and content satisfactory to the Using Agency and delivered in a timely manner consistent with the requirements of this Agreement.

4.3 If Contractor fails to comply with the foregoing standards, Contractor must perform again, at its own expense, all Services required to be re-performed as a direct or indirect result of that failure. Any review, approval, acceptance or payment for any of the Services by the City does not relieve Contractor of its responsibility for the professional skill and care and technical accuracy of its Services and Deliverables. This provision in no way limits the City's rights against Contractor either under this Agreement, at law or in equity.
5 Compensatjon

5.1 In addition to Section 3 Compensation in Exhibit C - GTC, the Contractor shall be compensated for the services provided under this Agreement as follows:

5.1.1 Contractor shall be compensated for services rendered and accepted under this Agreement and shall be paid monthly, in arrears on a not to exceed basis, based upon the rates set forth in Exhibit E attached hereto and made a part of this 9 ( Rev 10.30. 18}
EXHIBIT 1 291
Agreement. Contractor may vary the compensation for each task in Exhibit E provided that the total project compensation listed in Exhibit E and the Standard Agreement is not exceeded.
6 Reports and latormatjon
Contractor shall at such times and in such forms as the City may require furnish the City such periodic reports as it may request pertaining to the work or services undertaken pursuant to this Agreement, the costs and obligations incurred or to be incurred in connection therewith, and any other matters are covered by this Agreement as specified in Exhibit A and Exhibit E.
7 Eiadings Confidential
All the reports, information, data, et cetera, prepared or assembled by the Contractor under this Agreement are confidential and the Contractor agrees that they shall not be made available to any individual or organization without the prior written approval of the City. Contractor shall not be required under the provisions of this paragraph to keep confidential any data or information which is or becomes publicly available, is required by applicable law or by proper legal or governmental authority, is already rightfully in the Contractor's possession without obligation of confidentiality, is independently developed by Contractor outside the scope of this Agreement or is rightfully obtained from third parties. Contractor shall give City prompt notice of any such legal or governmental demand and reasonably cooperate with City in any effort to seek a protective order or otherwise to contest such required disclosure. a Bight of lospectjon
All Product furnished by Supplier must be as specified in the Order and will be subject to inspection and approval of City after delivery. City reserves the right to reject and return, at the risk and expense of Supplier, the portion of any Product which may be defective or fail to comply with specifications in the Order without invalidating the remainder of the Order. If rejected, Product will be held for disposition at the expense and risk of Supplier. Payment for Product on this Order prior to inspection shall not constitute acceptance of the Product.
9 warranty
Supplier warrants that (i) any Product created or performed by Supplier for City under this Order will conform to specifications, drawings or samples furnished by City to Supplier for a minimum period of one year, and (ii) any standard Product sold by Supplier to other customers besides City will meet or exceed any the standards for such types of product in industry, any express or implied warranty stated or advertised by Supplier or the actual manufacturer of such Product, or any warranties implied by law. Supplier's 10 (Rev 10.30.18)
EXHIBIT 1 292
warranty shall survive delivery of Product and shall not be deemed waived by City's failure to discover defects, acceptance of the Product, or payment, therefore. 10 ownership
Supplier shall have title to and bear the risk of any loss or damage to the Product until the Product is delivered and accepted by City in conformity with this Order. Upon delivery and acceptance, Product delivered by Supplier shall become the exclusive property of City. The ownership rights described herein shall include, but not be limited to, the right to copy, publish, display, transfer, or otherwise use the Product. All artwork, patterns, dies, models, samples, materials, drawings, specifications, technical material, advertising material and any other personal property furnished by City to Supplier, or specifically paid for by City for use in performance of an Order, shall be and remain the property of City and said property shall be used only for Product benefiting City. Supplier shall return to City or shall dispose of this property only according to City's instruction. 11 Applicable Laws
Under guidelines specified in 29 CFR 1910.1200 (f) and (g) City requests that Supplier label applicable Product accordingly and provide associated Material Safety Data Sheets ("MSDS") to City.
12 Pcevamna Wage
It shall be the responsibility of the Contractor to comply, when applicable, with the prevailing wage rates in accordance with the State of California Department of Industrial Relations. It shall further be the responsibility of the Contractor to monitor the prevailing wage rates as established by the California Department of Industrial Relations for any increase in rates during the term of this Agreement and adjust wage rates accordingly.

CONTRACTOR REGISTRATION REQUIREMENTS- Pursuant to Labor Code Section 1771.1 (a): A Contractor or subcontractor shall not be qualified to bid on, be listed in a bid proposal, subject to the requirements of Section 4104 of the Public Contract Code, or engage in the performance of any contract for public work, as defined in this chapter, unless currently registered and qualified to perform public work pursuant to Labor Code Section 1725.5. It is not a violation of this section for an unregistered Contractor to submit a bid that is authorized by Section 7029.1 of the Business and Professions Code or by Section 10164 or 20103.5 of the Public Contract Code, provided the Contractor is registered to perform public work pursuant to Section 1725.5 at the time the contract is awarded.

No contractor or subcontractor may be listed on a bid proposal for a public works project unless registered with the Department of Industrial Relations pursuant to Labor 11 (Rev 10.30.18)
EXHIBIT 1 293
Code section 1725.5 [with limited exceptions from this requirement for bid purposes only under Labor Code section 1771.1 (a)].

No contractor or subcontractor may be awarded a contract for public work on a public works project unless registered with the Department of Industrial Relations pursuant to Labor Code Section 1725.5. Department of Industrial Relations- Contractor Registration information and web link: https://www.dir.ca.gov/publicworks/publicworks. html. In compliance with Senate Bill 854 and the California Labor Code, all Bidders shall includewith their Bid proof of registration from the Department of Industrial Relations (DIR) that includes the contractor's Legal Name, Registration Number, License Type/Number, Registration Date and Expiration Date, for every contractor and subcontractor, regardlessof tier.

This project may be subject to compliance monitoring and enforcement by the Department of Industrial Relations. Contractors must submit their certified payroll records directly to the Division of Labor Standards Enforcement Compliance Monitoring Unit, as well as the City of Stockton.
13 SbiPPioq Terms
City shipment terms are F.O.B. Destination, Freight Prepaid and Added unless otherwise specified in the Order. Supplier shall observe shipping instructions and, unless otherwise stated in the instructions, shall ship Product in the safest and most economical manner necessary to meet the delivery date specified in the Order. Supplier shall provide an itemized packing list showing the Order number with the shipment. Supplier shall include the Order number on all packages, boxes, invoices, and shipping documents.

Supplier shall label all individual boxes with stock number and quantity and items with different stock numbers shall be boxed separately. City reserves the right to refuse, at Supplier's expense, any shipments not containing the Order number or stock numbers as required under this section.
14 Peliverjes
TIME IS OF THE ESSENCE IN THE PERFORMANCE OF ANY ORDER. If Product is not provided or performed within the times specified in an Order, City may cancel this Order and hold Supplier liable for damages incurred due to the untimely delivery including, but not limited to, the additional costs resultant from City procuring substitute product elsewhere.
15 Pcice and auantjtjes
Prices and quantities set forth in this Order may not be altered by Supplier without the prior written authorization of City, with the exception that quantities of custom paper 12 ( Rev 10.30. 18}
EXHIBIT 1 294
or printed products, chemicals, or fuel may deviate from those on the Order by the lesser of (i) standard industry practices, or (ii) 3%.
13 ( Rev 10.30.18}
EXHIBIT 1 295

EXHIBIT E

COMPENSATION SCHEDULE
The Contractor shall be compensated for the services identified in Exhibit A, Exhibit C, and Exhibit D to this Agreement as follows:
1 Project Price.

1.1 The maximum the Contractor shall be paid on this Agreement is $3,300,620 (hereafter the "not to exceed" amount). The "not to exceed" amount includes all payments to be made pursuant to this Agreement, including City approved reimbursable expenses, if any. Nothing in this Agreement requires the City to pay for work that does not meet the Standard of Performance identified in Exhibit D section 4 or other requirements of this Agreement.

1.2 The Contractor shall be entitled to receive payments for its work performed pursuant to the Agreement. The City will pay Contractor based on invoices for acceptable work performed and approved until the "not to exceed" amount is reached.

Thereafter, Contractor must complete services based on the Agreement without additional compensation unless there is a material change to the Statement of Work and Scope by a written Amendment.

1.3 Annual cost adjustments may be made, as necessary, to increase or decrease the unit cost. The annual increase shall not exceed three percent (3%) for each succeeding year. Any increase requested must be submitted at least sixty (60) days before requested implementation date. In the event that the supplier finds it necessary to increase the base price in any given year, the supplier shall provide evidence satisfactory to the City documenting the reason(s) for and actual cost of the cost increase. Annual cost decreases are allowed with written notice to the City.

2. Item p rjce. Below is the price for the products as described in Exhibit A of this Agreement.

Item Description Item Price
1 Ferrous Chloride $1,224.32/ Dry Ton
2 Ferric Chloride $1, 117.12/ Dry Ton

3. lavojce to Address, Each invoice submitted shall identify the specific task(s) listed in Exhibit A and this Exhibit, and the completed work product/deliverable for the agreed upon price listed in this Exhibit. Invoices shall be submitted electronically via e-mail to [email protected] or through the City's VSS portal. 14 (Rev 10.30.18)
EXHIBIT 1 296
EXHIBIT F - DISCRIMINATION AND HARASSMENT POLICY (HR-15)

CITY OF STOCKTON, CALIFORNIA

CITY MANAGER ADMINISTRATIVE DIRECTIVE
Subject: Directive No. HR-15 Page 1",o. 1 of 14
DISCRIMINATION AND E.ffecdve Date: Rellfse:I From: HARASSMENT POLICY 7/27/09 5/1/2015 416/09
311/2010
(see below)
PER-015 (Selt\H!I H8rassmeot In !he Workplace1 ,e.,.ed 'rom 1Qf21JEM, 5/1196, 1/1/98 PER-0J7 (Sexual Hara&amef11 !n'IM\i';laU"11 Proatdins; n�esd lr0111 211 !V93 I. 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 behavfor 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.

II. 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, ctidbirth and breastfeeding), political affiliation, age (40 and older), concerted labor activity, or any other category or attribute consistent with state a 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 gExchange. �
B. It is an unlawful employment practice to discriminate againstorto 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-en1p loyees with whom City employees have a business service, or professional relationship.

D. Ali City employees and non-employees share a responsibilit)i to assist in EXHIBIT 1 297
I
Subject:

CITY OF STOCKTON, CALIFORNIA
CITY MANAGER ADMrNISTRATIVE DIRECTIVE
Directive No. HR-15 Page No. 2 of 14
DISCRIMINATION AND Effective Date: Revised From: HARASSMENT POLICY 7/27/09 S/1/2015 4/6/09
3/1/2010
(aee b&low}
PER-C16 (Sexual rlar11S$111ent Ir, !tie Warli:pl ce) re\115ed from 10l"211!M, S/1/95, 111196 PE.�-037 (Sexual 1-'araaiimcnl lnvealigaliWI Procadure5) revised fiom 211Ml3 maintaining an employment environment free of discrimination and harassmenl This policy applies to all aspects of City employment, including, but not limited to, hiring, reassignment. placement, promotion, employment action, discip�nary action, layoff, reemployment, transfer, leave of absence, compensation and benefits, training; or other tenns of treatment of that person In an unpaid internship, or another limited duration program to provide unpaid wofk experience for that person. or the harassment of an unpaid intern or volunteer.

E. All allegations of discrimination and/or harassment shall be investigated immediatety 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, indMdual 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.

G. The City of Stockton prohibits retaliation against any employee or nonemployee 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 appfies to all officials, employees, volunteers, unpaid Interns, agents, or contractors of the City.

I. This policy shall be administered by the Director of Human Resoorces.

EXHIBIT 1 298

CITY OF STOCKTON, CALIFORNIA

CITY MANAGER ADMINISTRATIVE DIRECTIVE
Subject: Directive No. HR�15 Page No. 3 of 14
DISCRIMINATION AND Effective Date: RevlMd F,om: HARASSMENT POLICY 7/27/09 5/1/2015 4/6/09
3/112010
(see below)
PER 015 (SelCUal HereS!ml!l11 ,n lhe Wo,tplace) rsYl&ed from 10/'2119-11 5"1,'95 1111'\M PER-037 (Stxull Harassment tnvesCIQatl\le PfOCOdl.Wes) revised from 211 5193 Ill. DEFINITION AND EXAMPLES OF DISCRIMINATION AND HARASSMENT A. MDiscriminatron," 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 raoe, 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.

8. "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 offamily 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 1 299
Subject:

CITY OF STOCKTON, CALIFORNIA

CITY MANAGER ADMINISTRATIVE DIRECTIVE
Directive No. HR�15 Page, No. 4 of 14

DISCRIMINATION AND
HARASSMENT POLICY Eff�tlve Date: Revised From:
7/27/09
4/6/09
3/1/2010
5/1/2015
PER-0"' 5 /Sr,� al Han1ssiner.c 111 lhe p ,;e ,1 rorn 1 119-1, 1,'95, 111/98 PER-037 (Se:ruai tiafa!511111fll l�lgllthle PfocedllteS) reYised from 2115'93 otherwise adversely affecting an employee's or non-employee's employment opportunities.

Harassment may take many forms, induding, but not limited to, the foftowing examples:

1. 2.

3. Verbal Harassment1 Eptthets, 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 Harassmen : 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. MSexual 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 1 300
Subject:

CITY OF STOCKTON, CALIFORNIA

CITY MANAGER ADMINISTRATIVE DIRECTIVE
Dlrectrve No. HR-15 Page No. 5 of 14
DISCRIMINATION AND Effective Date: Revised From: HARASSMENT POLICY 7/27/09 5/1/2015 416/09
3/1/2010
(see below)
t'ttt-015 (Smitl r..aruamenl In IJle Workp!Ke) r�\llsed from 1012•f94. 111/ftS, 111198 PER-OJ7 (Sexual Harasament IIIV8Sflg3ttw Proa!dures) ff:1/fsed from 2/151'33

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. Making 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 1 301
Subfecl:

CITY OF STOCKTON, CALIFORNIA

CITY MANAGER ADMINISTRATIVE DIRECTIVE

DISCRIMINATION AND

HARASSMENT POLICY
CNrectlve No. HR-15
Effective Date:
5/1/2015
Page No. 6 of 14
Revised From:
7/27/09
416/09
3/1/2010
see below
PER-01 (S ,c ,._anent In ho We I ce) rtM3Cd rllm 10/2 19«, 611/i5, 11'1/ll PE:R--037 (S11ICU!II Hera.wmeo! I� Prooadurn) ra'liled from 2115m i. Retaliation for making harassment reports or threatening to report harassment.

D. Affordable Care Act {ACA} Anti-Retaljation
Pursuant to sectfon §1558 of the Affordable Care Act, the City prohibits discrimination or retaliation towards any employee who:

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

2. Reports potential violations of protections afforded under Ttde 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 partlclpate in, any activfty, policy, practice, or assjgned 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 prooedures provide for an immediate, thorough and objective lnvestigation 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 1 302
Subject:

CITY OF STOCKTON, CALIFORNIA

CITY MANAGER ADMINISTRATIVE DIRECTIVE
Dlrecdve No. HR-15 Page No. 7 of 14

DISCRJMINATION AND
HARASSMENT POLICY Effe1:tive Dilte: Revised From:
7/27/09
4/6/09
3/1/2010
see below
5/1/2015
--0 5 (Sexual ara■sml!flC Jn tho Worl placo) '9\'iM;l from 1Ml , !95_ 1/1196 PER-037 (Se•lall 1-'armsmenl lnveldg■!Ne Proced�) ,evlsed lrom 2115193 employee or non-employee subject to discrimination or harassment. To accompHsh 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 Harassment
a. Employees or non-employees who believe they have been subjected to discrimination or harassment. or are aware of discrimination or harassment against others, shalt report the situation immediately to his/her supervisor or manager, except as specified in subsection (b), below. Employees and nonemployees 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 [n 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 Resoorces (or either of their deslgnees) 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 1 303
Subject:

CITY OF STOCKTON, CALIFORNIA

CITY MANAGER ADMINISTRATIVE DIRECTIVE

DISCRIMINATION AND

HARASSMENT POLICY
Directive No. HR-15
Effoctlvo Date:
5/1/2015
Page No. 8 of 14
Rovlsed From:
7/27/09
416/09
3/1/2010
-01& :xual usnent I l�e W�) re-'ltli&el from 10121�. 5'1 , 111, P1:R 7 (SeJIUII HMISSll"ellt lnvotlgatm, PrtlGedures) relllsl!d from 2/15193 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 retaliatlon to a supervisor, manager, department head or Director of Human Resources (or designee). All retaliation complaints shall be immediatety, 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. Superyiso 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 meetllgs 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 e111>loyee or non-employee under their supervision to be subjected to or engage in any conduct prohibited by this policy.
c. A superv1sor or manager who observes conduct prohibited by this policy shall immediately direct the employee or nonemployee to cease the conduct.