Agenda packet — City Council and Concurrent Authorities, April 19, 2022 (part 2 of 7)

ZONE A-1, WEBER SPERRY RANCHES:

Zone A-1 is generally bounded by West Lane, the East Bay Municipal Utilities District right-of-way, the Union Pacific Railroad line and the Calaveras River. Improvements maintained include trees in tree wells, back-up walls and the turf on the East Bay Municipal Utilities District right-of-way between West Lane and Lorraine Avenue.

There is a request for an appropriation of $52,892.82 from the reserve for continuing appropriations to balance the budget. The amount remaining in the reserve after this requested appropriation is considered sufficient to meet present. Any unexpended budgeted funds are returned to the Zone A-1 account at the close of the fiscal year.

The reserves in Zone A-1 are not sufficient to continue appropriating funds at proposed FY2022-23 levels without the zone falling into insolvency within the next two years. To address the shortfall, wall repairs will no longer be funded. All walls are a development requirement and are constructed on private property. Stockton Municipal Code (SMC) Section 8.30.040.D obligates the property owner to repair any wall constructed as a condition of development. Reductions in frequency of landscape maintenance services will be evaluated along with a reduction in irrigation frequency. Water for irrigating the East Bay Municipal Utilities District property between Lorrain Avenue and West Lane is $25,300 (approximately 22 percent of the 22-23 budget) of the total $115,010 proposed Zone A-1 Budget.

When the assessment for Zone A-1 was originally approved, it did not include a provision for an annual escalator. The assessment cannot be increased without the affected property owners voting to approve the increase. Therefore, no change is proposed in the $46.90/dueF assessment for FY 2022-23. If the assessment was set at a level that would fully fund the estimated FY 2022-23 expenditures without an appropriation from the reserve, the assessment would be $86.84 per dueF.

The anticipated Zone A-1 reserve balance as of June 30, 2022, is -$8,125.45. The recommended reserve balance is $1,332,781.01. Zone A-1 would require an appropriation from the reserve to cover contracted expenses, utilities, and administration even without budgeting for eventual, but unscheduled expenditures. This zone cannot continue to fund maintenance of all improvements for which it was formed and at the current service levels.

ZONE A-2, MORADA WEST:

Zone A-2 is generally bounded by Hammer Lane, Maranatha Drive, Christian Life Way and State Route 99. Improvements maintained include the back-up walls and trees in tree wells.

There is a request for an appropriation of $432.04 from the reserve for continuing appropriations to balance the budget. The amount in the reserve is not considered sufficient to meet present obligations and still provide for limited future contingencies.

Any unexpended budgeted funds are returned to the Zone A-2 account at the close of PRELIMINARY SUMMARY OF ZONES 239

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the fiscal year. All unnecessary expenses have been eliminated from the FY2022-23 budget. The Zone A-2 reserve is not sufficient to continue appropriating funds at prior fiscal year levels without the zone falling into insolvency. To address the limited revenue available, wall repairs will no longer be funded. All walls are a development requirement and are constructed on private property. SMC Section 8.30.040.D obligates the property owner to repair any wall constructed as a condition of development. There is a small amount of landscaping requiring irrigation. Annual utility expenses are approximately $775 and maintenance approximately $2,200. The balance of the revenue is used for administrative costs. The landscaping consists of approximately 40 square feet of shrubs and 35 trees in tree wells. It is more cost efficient to terminate this Zone and the City assume the maintenance and utility costs.

Reductions in frequency and extent of landscape maintenance services were considered but will not result in enough of a cost reduction to change the long-term viability of this Zone.

When the assessment for Zone A-2 was originally approved, it did not include a provision for an annual escalator. The assessment cannot be increased without the affected property owners voting to approve the increase. Therefore, no change is proposed in the $79.88/dueF assessment for FY 2022-23. If the assessment was set at a level that would fully fund the estimated FY 2022-23 expenditures without an appropriation from the reserve, the assessment would be $84.58 per dueF.

The anticipated Zone A-2 reserve balance as of June 30, 2022, is $9,378.40. The recommended reserve balance is $152,245.19. Zone A-2 would require an appropriation from the reserve to cover contracted expenses, utilities, and administration even without budgeting for eventual, but unscheduled expenditures. This zone cannot continue to fund maintenance of all improvements for which it was formed and at the current service levels.

ZONE A-3, LA MORADA:

Zone A-3 is located north and south of Morada Lane between the Union Pacific Railroad line and State Route 99. Improvements maintained include back-up walls, landscaping between the walls and back of sidewalk, landscaped medians, Matt Equinoa and Parma Sister City Parks and any future parks within Zone A-3, and the landscaping on the East Bay Municipal Utilities District right-of-way between Hammer Lane and the State Route 99 Frontage Road.

The assessment for this zone has a provision for an annual escalator. The escalator is the greater of three percent or the percentage increase of the local Consumer Price Index (CPI). The local CPI increased 7.12 percent; therefore, the FY 2021-22 escalator applied is 7.12 percent. The actual FY 2021-22 assessment was $253/dueF.

The anticipated Zone A-3 reserve balance as of June 30, 2020, is $2,884,352.81. The recommended reserve balance is $4,184,724.43. It is recommended that the assessment for Zone A-3 increase by 7.12 percent for FY2022-23 due to the financial PRELIMINARY SUMMARY OF ZONES 240

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impact of rapid inflation. This will be re-evaluated when preparing the FY2023-24 budget. The FY 2022-23 assessment will fully fund budgeted expenditures. Any unexpended budgeted funds are returned to the Zone A-3 account at the close of the fiscal year. Based on current projections, and since the assessment for this zone can be increased, barring any catastrophic event it is not anticipated that the reserve will be depleted.

The proposed actual FY 2022-23 assessment is $271/dueF. The proposed maximum FY 2022-23 assessment is $302.54/dueF, which is an increase of 7.12 percent over the FY 2021-22 maximum assessment. If the assessment was set at a level that would fully fund the estimated FY 2022-23 expenditures, the assessment would be $271 per dueF.

ZONE A-4, BLOSSOM RANCH:

Zone A-4 is located in the northeasterly part of the City generally at the intersection of March Lane and Holman Road and lying southerly of March Lane. Improvements maintained include back-up walls, landscaping between the walls and back of sidewalk, March Lane median landscaping, and funding a proportionate share of the costs for S.L.

Fong Park.

The assessment for this zone has a provision for an annual escalator. The escalator is the greater of three percent or the percentage increase of the local CPI. The local CPI increased 7.12 percent; therefore, the FY 2022-23 escalator applied is 7.12 percent.

The actual FY 2021-22 assessment was $171.40/dueF.

The anticipated Zone A-4 reserve balance as of June 30, 2022, is $435,517.79. The recommended reserve balance is $514,110.11. It is recommended that the assessment for Zone A-4 increase by 7.12 percent for FY2022-23 due to the financial impact of rapid inflation. This will be re-evaluated when preparing the FY2023-24 budget. It is recommended there be an appropriation of $24,950 from the reserve to fully fund estimated costs. The amount remaining in the reserve after this requested appropriation is considered sufficient to meet present obligations and still provide for future contingencies. Any unexpended budgeted funds are returned to the Zone A-4 account at the close of the fiscal year. Based on current projections, and since the assessment for this zone can be increased, barring any catastrophic event it is not anticipated that the reserve will be depleted.

The proposed actual FY 2022-23 assessment is $183.60/dueF. The proposed maximum FY 2022-23 assessment is $295.67/dueF, which is an increase of 7.12 percent over the FY 2021-22 maximum assessment. If the assessment was set at a level that would fully fund the estimated FY 2022-23 expenditures without an appropriation from the reserve, the assessment would be $251.96 per dueF.

ZONE A-5, WEBER WOODS:

Zone A-5 is generally located between the Calaveras River and Bianchi Road and just east of West Lane. Improvements maintained include back-up walls, landscaping PRELIMINARY SUMMARY OF ZONES 241

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between the walls and back of sidewalk, and contributing a proportionate share of the costs to maintain any parks within the service area of Zone A-5 or serving Zone A-5.

The actual FY 2021-22 assessment was $550/dueF.

The anticipated Zone A-5 reserve balance as of June 30, 2022, is -$1,237.85. The recommended reserve balance is $43,919.55. The assessment can be increased be increased to a level that will fully fund budgeted expenditures. Due to the limited number of properties in this zone, 17, the assessment would likely need to be slowly increased to the maximum rate that would fully fund estimated expenses and provide funds for a reserve. There is a request for an appropriation of $22,823 from the general fund to balance the budget. The amount remaining in the reserve is not considered sufficient to meet present obligations and still provide for future contingencies. Any unexpended budgeted funds are returned to the Zone A-5 account at the close of the fiscal year. Based on current projections, and since the assessment for this zone can be increased, barring any catastrophic event it is not anticipated that the zone will become insolvent if the assessment can be increased next FY close to the maxium.

This zone will not be able to generate sufficient revenue to fund replacement of the entire wall at the end of its service life.

The proposed actual FY 2022-23 assessment is $589.16/dueF. The proposed maximum FY 2022-23 assessment is $1,640.40/dueF, which is an increase of 7.12 percent over the FY 2021-22 maximum assessment. If the assessment was set at a level that would fully fund the estimated FY 2022-23 expenditures without an appropriation from the reserve, the assessment would be $1,931.69 per dueF which exceed the maximum allowed assessment.

ZONE A-6, BLOSSOM NORTH/CAMERA/SPERRY:

Zone A-6 is generally bounded by the Stockton Auto Mall, Holman Road, March Lane, and the Union Pacific Railroad tracks. Improvements maintained include back-up walls, landscaping between the walls and back of sidewalk, and Unity Park.

The actual FY 2021-22 assessment was $293.80/dueF.

The anticipated Zone A-6 reserve balance as of June 30, 2022, is $1,100,839.68. The recommended reserve balance is $683,176.64. The FY 2022-23 assessment will fully fund estimated expenditures. Any unexpended budgeted funds are returned to the Zone A-6 account at the close of the fiscal year. Based on current projections, and since the assessment for this zone can be increased, barring any catastrophic event it is not anticipated that the reserve will be depleted.

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The proposed actual FY 2022-23 assessment is $314.72/dueF. The proposed maximum FY 2022-23 assessment is $705.13/dueF, which is an increase of 7.12 percent over the FY 2021-22 maximum assessment. If the assessment was set at a level that would fully fund the estimated FY 2022-23 expenditures, the assessment would be $314.72 per dueF.

ZONE A-7, HUNTER RIDGE:

Zone A-7 is generally bounded by March Lane, Blossom Ranch subdivision, the Calaveras River, and the Union Pacific Railroad tracks. Improvements maintained include back-up walls, landscaping between the walls and back of sidewalk, and funding a proportionate share of the costs for S.L. Fong Park.

The actual FY 2021-22 assessment was $99.80/dueF.

The anticipated Zone A-7 reserve balance as of June 30, 2022, is $740,964.28. The recommended reserve balance is $619,879.90. It is recommended that the FY 2022-23 actual assessment increase by the CPI of 7.12 percent for FY 2022-23 and that there be a $123,920 appropriation from the reserve. The appropriation from the reserve is designed to mitigate too rapid an increase in the actual assessment in FY 2023-24 the assessment will increase and begin to revert to a level that will fully fund budgeted expenditures and maintain and replenish the reserve. The amount remaining in the reserve after this requested appropriation is considered sufficient to meet present obligations and still provide for future contingencies. Any unexpended budgeted funds are returned to the Zone A-7 account at the close of the fiscal year. Based on current projections, and since the assessment for this zone can be increased, barring any catastrophic event it is not anticipated that the reserve will be depleted.

The proposed actual FY 2022-23 assessment is $106.90/dueF. The proposed maximum FY 2022-23 assessment is $862.99/dueF, which is an increase of 7.12 percent over the FY 2021-22 maximum assessment. If the assessment was set at a level that would fully fund the estimated FY 2022-23 expenditures without an appropriation from the reserve, the assessment would be $282.67 per dueF.

ZONE A-10, CANNERY PARK:

Zone A-10 is generally bounded by Eight Mile Road, State Route 99, La Morada and Villa Antinori Subdivisions, and the Union Pacific Railroad tracks. Improvements maintained include back-up walls, landscaping between the walls and back of sidewalk, streetlights, and parks.

The assessment for this zone has a provision for an annual escalator. The escalator is the greater of three percent or the percentage increase of the local CPI. The local CPI PRELIMINARY SUMMARY OF ZONES 243

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increased 7.12 percent; therefore, the FY 2022-23 escalator applied is 7.12 percent.

The actual FY 2021-22 assessment was $154.50/dueF.

The anticipated Zone A-10 reserve balance as of June 30, 2022, is $203,816.98. The recommended reserve balance is $95,898.19. The assessment has been reverted to a level necessary to fund budgeted expenditures and maintain the reserve. It is recommended that FY 2022-23 assessment increase by the local CPI of 7.12 percent due to the financial impact of rapid inflation. This will be re-evaluated when preparing the FY2023-24 budget. The FY 2022-23 assessment will fully fund estimated expenditures. Any unexpended budgeted funds are returned to the Zone A-10 account at the close of the fiscal year. Based on current projections, and since the assessment for this zone can be increased, barring any catastrophic event it is not anticipated that the reserve will be depleted.

The proposed actual FY 2022-23 assessment is $165.50/dueF. The proposed maximum FY 2022-23 assessment is $460.19/dueF, which is an increase of 7.12 percent over the FY 2021-22 maximum assessment. If the assessment was set at a level that would fully fund the estimated FY 2022-23 expenditures without an appropriation from the reserve, the assessment would be $165.50 per dueF.

ZONE B-1, WILLIAM LONG PARK:

Zone B-1 is located in the southerly portion of Weston Ranch generally bounded by the PG&E easement, Henry Long Boulevard, McDougald Boulevard and French Camp Road, except the Manteca Unified School District high school site. This zone is for the maintenance of the William Long Park, which is also located in the southerly portion of Weston Ranch.

There is a request for an appropriation of $65,835 from the reserve for continuing appropriations to balance the budget. The amount remaining in the reserve after this requested appropriation is considered sufficient to meet present obligations and still provide for future contingencies. Any unexpended budgeted funds are returned to the Zone B-1 account at the close of the fiscal year.

The anticipated Zone B-1 reserve balance as of June 30, 2022, is $764,136.79. The recommended reserve balance is $398,996.51. When the assessment for Zone B-1 was originally approved, it did not include a provision for an annual escalator. The assessment cannot be increased without the affected property owners voting to approve the increase. Therefore, no change is proposed in the $84/dueF assessment for FY 2022-23. If the assessment was set at a level that would fully fund the estimated FY 2022-23 expenditures without an appropriation from the reserve, the assessment would be $143.80 per dueF.

ZONE B-2, WESTON RANCH:

Zone B-2 is located west of Interstate 5, east of the San Joaquin River, and north of French Camp Road. This zone encompasses all of the Weston Ranch development.

Improvements maintained include the back-up walls, landscaping between the walls PRELIMINARY SUMMARY OF ZONES 244

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and back of sidewalk, the landscaping on the PG&E easement/greenbelt, and Paul E.

Weston Park.

There is a request for an appropriation of $512,249.60 from the reserve for continuing appropriations to balance the budget and accommodate contributing to the maintenance of Paul E. Weston Park. The amount remaining in the reserve after this requested appropriation is considered insufficient to meet present obligations and still provide for future contingencies. Any unexpended budgeted funds are returned to the Zone B-2 account at the close of the fiscal year.

When the assessment for Zone B-2 was originally approved, it did not include a provision for an annual escalator. The assessment cannot be increased without the affected property owners voting to approve the increase. Therefore, no change is proposed in the $117.82/dueF assessment for FY 2022-23. If the assessment was set at a level that would fully fund the estimated FY 2022-23 expenditures without an appropriation from the reserve, the assessment would be $211 per dueF.

The anticipated Zone B-2 reserve balance as of June 30, 2022, is $674,832.05. The recommended reserve balance is $4,442,009.01. Zone B-2 will require an appropriation from the reserve and general fund to cover contracted expenses, utilities, and administration even without budgeting for eventual, but unscheduled expenditures. This zone will require further analysis to determine whether it can continue to fund maintenance of all improvements for which it was formed and at the current service levels.

ZONE B-3, PAUL E. WESTON PARK:

Zone B-3 is located west of Interstate 5, east of the San Joaquin River, and generally north of William Long Boulevard. This zone is for the maintenance of the Paul E.

Weston Park.

When the assessment for Zone B-3 was originally approved, it did not include a provision for an annual escalator. The assessment cannot be increased without the affected property owners voting to approve the increase. Therefore, no change is proposed in the $24/dueF assessment for FY 2022-23. If the assessment was set at a level that would fully fund the estimated FY 2022-23 expenditures without an appropriation from the reserve, the assessment would be $25.55 per dueF.

The anticipated Zone B-3 reserve balance as of June 30, 2022, is -$110,815.06. The recommended reserve balance is $811,123.72. The Zone requires an appropriation from the general fund of $7,391.14 to sustain it. This will push the reserve to a -$58,767.30 by June 30, 2023. Zone B-2 also funds a portion of Weston Park expenses.

This zone will require further analysis to determine whether it can continue to fund maintenance of all improvements for which it was formed and at the current service levels.

ZONE B-4, HONORABLE SANDRA BUTLER SMITH NEIGHBORHOOD PARK:

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Zone B-4 is located in the westerly portion of Weston Ranch and is generally bounded by the San Joaquin River, French Camp Road, the PG&E Easement/Greenbelt, and William Moss Boulevard. This zone is for the maintenance of the Honorable Sandra Butler Smith Neighborhood Park.

The actual FY 2021-22 assessment was $97.00/dueF.

The anticipated Zone B-4 reserve balance as of June 30, 2022, is $384,468.35. The recommended reserve balance is $300,262.77. It is recommended that FY 2022-23 assessment increase by the CPI of 7.12 percent due to the financial impact of rapid inflation. This will be re-evaluated when preparing the FY 2023-24 budget. The FY 2022-23 assessment will fully fund estimated expenditures. Any unexpended budgeted funds are returned to the Zone B-4 account at the close of the fiscal year. Based on current projections, and since the assessment for this zone can be increased, barring any catastrophic event it is not anticipated that the reserve will be depleted.

The proposed actual FY 2022-23 assessment is $103.88/dueF. The proposed maximum FY 2022-23 assessment is $109.20/dueF, which is an increase of 7.12 percent over the FY 2021-22 maximum assessment. If the assessment was set at a level that would fully fund the estimated FY 2022-2023 expenditures and contributing minimally to the reserve, the assessment would be $103.88/dueF.

ZONE B-5, WESTON RANCH – FRENCH CAMP ROAD FENCE:

Zone B-5 is located in the southwesterly portion of Weston Ranch and is generally bounded by the San Joaquin River, Henry Long Boulevard, Alice McCuen Avenue, and French Camp Road. This zone is for the maintenance of approximately 6,700 lineal feet of masonry wall located on the south side of French Camp Road from Carolyn Weston Boulevard to EWS Woods Boulevard.

The actual FY 2021-22 assessment was $75.60/dueF.

The Zone B-5 has an anticipated reserve balance as of June 30, 2022, of $100,025.06.

The recommended reserve balance is $330,784.54. This wall was constructed by the Weston Ranch development as a concession to the property owner to the south of French Camp Road for dedicating right-of-way to widen French Camp Road. When the property lying southerly of French Camp Road eventually develops, the fence system will no longer be necessary, and Zone B-5 can be closed. Assessment revenue funds replacements of damaged sections of the fence system. Until there is development to the south, it is recommended that the assessment be set to provide an amount for annual historical damage, which has been approximately $45,000, and not develop a PRELIMINARY SUMMARY OF ZONES 246

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reserve due to historical data that suggests additional funds are highly unlikely. Any potential overages will be funded from the general fund as there is no current reserve.

Since it is not anticipated that the fence system will reach the end of its service life before development southerly of French Camp Road, there does not appear to be a need to build a replacement reserve to the recommended level. An annual budget of $45,000 for repairs, should be adequate to fund any damage. While there could be a catastrophic series of events that could cause over $45,000 of damage, damage of that magnitude has not occurred in the past.

The budget reflects a potential request for an appropriation of $53,480 from the general fund to balance the budget, however as noted above this would only be in the event of an unlikely catastrophic series of events. The amount remaining in the reserve after this potential appropriation is considered insufficient to meet present obligations and would require the subsequent annual assessment be increase to the maximum allowed to replenish the general fund and the Zone. Any unexpended budgeted funds are returned to the Zone B-5 account at the close of the fiscal year. Based on current projections, and since the assessment for this zone can be increased, barring any catastrophic event it is not anticipated that the reserve will be depleted.

The proposed actual FY 2022-23 assessment is $80.94/dueF. The proposed maximum FY 2022-23 assessment is $206.96/dueF, which is an increase of 7.12 percent over the FY 2021-22 maximum assessment. If the assessment was set at a level that would fully fund the estimated FY 2022-23 expenditures without an appropriation from the reserve, the assessment would be $175.59/dueF.

ZONE C-1, SPANOS PARK:

Zone C-1 is located east of Thornton Road and north of Bear Creek. Improvements maintained include back-up walls, landscaping between the walls and curb, landscaped medians, and fund a proportionate share of the costs for Vivian "Lady B" Baxter Park.

There is a request for an appropriation of $12,847.56 from the reserve for continuing appropriations to balance the budget. The amount remaining in the reserve after this requested appropriation is not considered sufficient to meet future obligations and still provide for future contingencies. Any unexpended budgeted funds are returned to the Zone C-1 account at the close of the fiscal year.

The anticipated reserve in Zone C-1 is not sufficient to continue appropriating funds at prior year's levels without the zone becoming insolvent within the next two years. To address the limited available revenue, wall repairs will no longer be funded. All walls are a development requirement and are constructed on private property. SMC Section

8.30.040.D obligates the property owner to repair any wall constructed as a condition of development. Reductions in frequency of landscape maintenance services will be evaluated along with a reduction in irrigation frequency. Zone C-1 also pays its proportionate share of the cost to maintain Baxter Park. Zone C-1 was originally formed, and budget set based on maintaining the only street landscaping installed with the development. Baxter Park maintenance cost was added to Zone C-1 in 1997 PRELIMINARY SUMMARY OF ZONES 247

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without an increase in the existing assessment. Annually increasing park maintenance costs are taking a larger percentage of the budget and requiring an ever-increasing appropriation from the reserve. For FY 2022-23, the estimated share is $22,800, which is approximately 33 percent of the revenue generated by Zone C-1. If reserve appropriations continue at past years' magnitude, Zone C-1 will be insolvent in 2 to 3 years. It is further recommended the proportionate share of Baxter Park costs, estimated at $22,800, be funded by the General Fund. Account 010-3070-590. Zone C1 will be able to continue to fund scheduled maintenance of the development's street landscaping but will not be able to fund any enhancements or replacements without the property owners approving an increase in the assessment.

When the assessment for Zone C-1 was originally approved, it did not include a provision for an annual escalator. The assessment cannot be increased without the affected property owners voting to approve the increase. Therefore, no change is proposed in the $119.24/dueF assessment for FY 2022-23. If the assessment was set at a level that would fully fund the estimated FY 2022-23 expenditures without an appropriation from the reserve, the assessment would be $141.35/dueF.

The anticipated Zone C-1 reserve balance as of June 30, 2022, is -$23,875.56. The recommended reserve balance is $1,465,760.95. Zone C-1 would require an appropriation from the general fund to cover contracted expenses, utilities, and administration even without budgeting for eventual, but unscheduled expenditures. This zone will require further analysis to determine whether it can continue to fund maintenance of all improvements for which it was formed and at the current service levels.

ZONE C-2, NORTH STOCKTON PROJECTS:

Zone C-2 includes all of the Waterford Estates East and West, Beck Estates, Beck Ranch, Beck Farms, Elkhorn Country Club Estates, Silver Springs, and Gold Springs subdivisions in the northwesterly part of the City. The zone was formed to provide funds for the maintenance of masonry walls and landscaping, certain segments of the Pixley Slough bicycle/pedestrian path, and fund a proportionate share of the costs for Vivian "Lady B" Baxter Park.

The actual FY 2021-22 assessment was $250/dueF.

The anticipated Zone C-2 reserve balance as of June 30, 2022, is $1,642,162.79. The recommended reserve balance is $634,305.59. It is recommended that FY 2022-23 assessment increase by the CPI 4.37 percent due to the financial impact of rapid inflation. This will be re-evaluated when preparing the FY 2023-24 budget. Any unexpended budgeted funds are returned to the Zone C-2 account at the close of the fiscal year. Based on current projections, and since the assessment for this zone can PRELIMINARY SUMMARY OF ZONES 248

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be increased, barring any catastrophic event it is not anticipated that the reserve will be reduced.

The proposed actual FY 2022-23 assessment is $260.92/dueF. The proposed maximum FY 2022-23 assessment is $276.01/dueF, which is an increase of 7.12 percent over the FY 2021-22 maximum assessment. If the assessment was set at a level that would fully fund the estimated FY 2021-22 expenditures, the assessment would be $260.92 per dueF.

ZONE C-3, SPANOS PARK WEST:

Zone C-3 is located in the northwesterly portion of the City and is generally bounded by Interstate 5, Bear Creek, the Westlake Villages development, and Eight Mile Road.

This zone was formed to provide funds for the maintenance of decorative concrete pavement, bicycle/pedestrian path along a portion of Bear Creek, and maintenance of Michael Faklis and Iloilo Sister City Parks.

The actual FY 2021-2022 assessment was $142/dueF.

The anticipated Zone C-3 reserve balance as of June 30, 2022, is $1,523,702.79. The recommended reserve balance is $751,148.05. It is recommended that FY 2022-23 assessment increase by the CPI 7.12 percent due to the financial impact of rapid inflation. This will be re-evaluated when preparing the FY 2023-24 budget. It is recommended there be an appropriation of $118,460 from the reserve to moderate the increase. The amount remaining in the reserve after this requested appropriation is considered sufficient to meet present obligations and still provide for future contingencies. Any unexpended budgeted funds are returned to the Zone C-3 account at the close of the fiscal year. Based on current projections, and since the assessment for this zone can be increased, barring any catastrophic event it is not anticipated that the reserve will be depleted.

The proposed actual FY 2022-23 assessment is $152.10/dueF. The proposed maximum FY 2022-23 assessment is $237.68/dueF, which is an increase of 7.12 percent over the FY 2021-22 maximum assessment. If the assessment was set at a level that would fully fund the estimated FY 2022-23 expenditures without an appropriation from the reserve, the assessment would be $213.19/dueF.

ZONE C-4, FAIRWAY GREENS:

Zone C-4 includes all of the Fairway Greens subdivision in the northwesterly part of the City. The zone was formed to provide funds for the maintenance of masonry walls and landscaping and to provide its proportionate share of costs to maintain any parks serving the subdivision or within the service area of the subdivision.

PRELIMINARY SUMMARY OF ZONES 249

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The actual FY 2021-22 assessment was $78.40/dueF.

The anticipated Zone A-7 reserve balance as of June 30, 2022, is $225,700.38. The recommended reserve balance is $217,581.00. It is recommended that the FY 2022-23 actual assessment increase by the CPI of 7.12 percent and that there be a $20,317.00 appropriation from the reserve to moderate in the increase. The assessment can be slowly increased to fully fund the annual zone next FY. The amount remaining in the reserve after this requested appropriation is considered sufficient to meet present obligations and still provide for future contingencies. Any unexpended budgeted funds are returned to the Zone C-4 account at the close of the fiscal year. Based on current projections, and since the assessment for this zone can be increased, barring any catastrophic event it is not anticipated that the reserve will be depleted.

The proposed actual FY 2022-23 assessment is $83.98/dueF. The proposed maximum FY 2022-23 assessment is $314.70/dueF, which is an increase of 7.12 percent over the FY 2021-22 maximum assessment. If the assessment was set at a level that would fully fund the estimated FY 2021-22 expenditures without an appropriation from the reserve, the assessment would be $187.11/dueF.

ZONE C-6, WESTLAKE VILLAGES:

Zone C-6 is generally bounded by Eight Mile Road, A.G. Spanos Park West subdivision, Bear Creek and Disappointment Slough, and Rio Blanco Road. Zone C-6 was formed to provide funds for maintenance of public parks, a portion of the bicycle/pedestrian path on the Bear Creek levee, and public street lighting constructed within the Westlake Villages project.

The actual FY 2021-22 assessment was $92/dueF.

The anticipated Zone C-6 reserve balance as of June 30, 2022, is $388,492.12. The recommended reserve balance is $181,558.39. It is recommended there be an appropriation of $8,077.80 from the reserve to draw down the reserve. The appropriation from the reserve is designed to bring the reserve to the target level in a few years at which time the assessment will revert to a level that will fully fund budgeted expenditures and maintain the reserve. The amount remaining in the reserve after this requested appropriation is considered sufficient to meet present obligations and still provide for future contingencies. Any unexpended budgeted funds are returned to the Zone C-6 account at the close of the fiscal year. Based on current projections, and since the assessment for this zone can be increased, barring any catastrophic event it is not anticipated that the reserve will be depleted.

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The proposed actual FY 2022-23 assessment is $98.52/dueF. The proposed maximum FY 2022-23 assessment is $219.01/dueF, which is an increase of 7.12 percent over the FY 2021-22 maximum assessment. If the assessment was set at a level that would fully fund the estimated FY 2021-22 expenditures without an appropriation from the reserve, the assessment would be $106.51/dueF.

ZONE C-7 AND SUB-ZONE A, NORTH STOCKTON PROJECTS III:

North Stockton Projects III is generally bounded by Eight Mile Road, Lower Sacramento Road, and the Union Pacific Railroad. Zone C-7 was formed to provide for maintenance of Dorotha Pitts Park. Sub-Zone A was formed to provide for maintenance of streetscaping, walls, and streetlights in the Northbrook subdivision.

The actual FY 2021-22 Zone C-7 assessment was $183.20/dueF. The actual FY 2021- 22 Sub-Zone A assessment was $161.74/dueF.

The anticipated Zone C-7/7A reserve balance as of June 30, 2022, is $505,531.12. The recommended reserve balance is $1,010,680.89. It is recommended that FY 2022-23 assessment increase by the CPI of 7.12 percent due to the financial impact of rapid inflation. This will be re-evaluated when preparing the FY 2023-24 budget. There is a request for $41,698.62 from the Sub-Zone A reserve for continuing appropriations to modulate the annual increase. The assessment for the zone can be increased slowly in the coming years to fully fund the zone and sub-zone without drawing on the reserves.

The amount remaining in the reserve after these requested appropriations is considered sufficient to meet present obligations and still provide for future contingencies. Any unexpended budgeted funds are returned to the Zone C-7 and Sub-Zone A accounts at the close of the fiscal year. Based on current projections, and since the assessment for this zone can be increased, barring any catastrophic event it is not anticipated that the reserve will be depleted.

The proposed actual Zone C-7 FY 2022-23 assessment is $196.26/dueF. The proposed actual Sub-Zone A FY 2022-23 assessment is $161.74/dueF. The proposed maximum Zone C-7 FY 2022-23 assessment is $244.50/dueF, which is an increase of 7.12 percent over the FY 2021-22 maximum assessment. The proposed maximum SubZone A FY 2022-23 assessment is $269.99/dueF, which is an increase of 7.12 percent over the FY 2021-22 maximum assessment. If the assessments were set at a level that would fully fund the estimated FY 2022-23 expenditures without an appropriation from the reserve, the assessments for Zones C-7 and C-7 Sub-Zone A would be $196.26/dueF and $285.47/dueF, respectively.

ZONE D-1, BRIDGEPORT TRAILS:

Zone D-1 is located south of Charter Way, north of West Eighth Street, and east and west of Fresno Avenue. Improvements maintained include back-up walls and landscaping between the walls and back of sidewalk.

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There is a request for an appropriation of $24,628 from the reserve for continuing appropriations to balance the budget. The amount remaining in the reserve after this requested appropriation is considered sufficient to meet present obligations and still provide for future contingencies. Any unexpended budgeted funds are returned to the Zone D-1 account at the close of the fiscal year.

The anticipated Zone D-1 reserve balance as of June 30, 2022, is $267,251.86. The recommended reserve balance is $289,109.51. When the assessment for Zone D-1 was originally approved, it did not include a provision for an annual escalator. The assessment cannot be increased without the affected property owners voting to approve the increase. Therefore, no change is proposed in the $85/dueF assessment for FY 2022-23. If the assessment was set at a level that would fully fund the estimated FY 2022-23 expenditures without an appropriation from the reserve, the assessment would be $162.44/dueF.

ZONE D-3, BRIDGEPORT TRAILS UNIT 4 AND 5:

Zone D-3 is located south of Charter Way, north of West Eighth Street, and east and west of Fresno Avenue. This zone was formed to maintain back-up walls and landscaping between the walls and back of sidewalk, and landscaped buffer parcels.

The actual FY 2020-21 assessment was $215/dueF.

The anticipated Zone D-3 reserve balance as of June 30, 2022, is $212,355.96. The recommended reserve balance is $124,114. It is recommended that the assessments for Zone D-3 be increased due to rapid inflation. It is recommended there be an appropriation of $8,325 from the reserve to provide to fully fund estimated costs and to moderate the increase. Any unexpended budgeted funds are returned to the Zone D-3 account at the close of the fiscal year. Based on current projections, and since the assessment for this zone can be increased, barring any catastrophic event it is not anticipated that the reserve will be depleted.

The proposed actual FY 2023-23 assessment is $230.04/dueF. The proposed maximum FY 2022-23 assessment is $287.48/dueF, which is an increase of 7.12 percent over the FY 2021-22 maximum assessment. If the assessment was set at a level that would fully fund the estimated FY 2022-23 expenditures without an appropriation from the reserve, the assessment would be $275.29/dueF.

ZONE D-4, CALAVERAS ESTATES:

Zone D-4 includes the new development lying generally north of Barrymore Street on the east and west sides of Alvarado Avenue. This zone was formed to maintain the wall between the subdivision and the railroad tracks, public street lighting, an access way to the Calaveras River at the northerly end of Alvarado Avenue, landscaping in the vicinity PRELIMINARY SUMMARY OF ZONES 252

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of Alvarado Avenue and Beeler Street, and develop a replacement reserve for the eventual replacement of the wall.

The actual FY 2021-22 assessment was $114.80/dueF.

The anticipated Zone D-4 reserve balance as of June 30, 2022, is $212,303.64. The recommended reserve balance is $81,297.17. While the reserve exceeds the recommended reserve balance, the proposed FY 2022-23 assessment does not fully fund the estimated expenditures. There is a request for an appropriation of $31,996.28 from the reserve. This appropriation from the reserve is designed to bring the reserve balance to the target level within a couple years, at which point the assessment will revert to a level necessary to fund budgeted expenditures and maintain the reserve.

The amount remaining in the reserve after this requested appropriation is considered sufficient to meet present obligations and still provide for future contingencies. Any unexpended budgeted funds are returned to the Zone D-4 account at the close of the fiscal year. Based on current projections, and since the assessment for this zone can be increased, barring any catastrophic event it is not anticipated that the reserve will be depleted.

The proposed actual FY 2022-23 assessment is $122.96/dueF. The proposed maximum FY 2022-23 assessment is $1,369.45/dueF, which is an increase of 7.12 percent over the FY 2021-22 maximum assessment. If the assessment was set at a level that would fully fund the estimated FY 2022-23 expenditures without an appropriation from the reserve, the assessment would be $365.36/dueF.

ZONE D-6, MOSS GARDEN:

Zone D-6 is located southeasterly of State Route 4/Charter Way and Fresno Avenue.

Improvements maintained/to be maintained include landscaping between the walls and curb, public street lighting, and its proportionate share of the cost to any park that serves the development or is within the service area of the development.

The actual FY 2021-22 assessment was $11.78/dueF.

The anticipated Zone D-6 reserve balance as of June 30, 2022, is $301,708.77. The recommended reserve balance is $32,944.20. It is recommended that there be a $65,841.92 appropriation from the reserve, since the reserve exceeds the recommended reserve balance. Increasing the assessment by the CPI to offset rapid inflation, along with the appropriation from the reserve, is designed to bring the reserve closer to the target level within a few years at which time the assessment will revert to a level that will fully fund budgeted expenditures and maintain the reserve. The amount PRELIMINARY SUMMARY OF ZONES 253

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remaining in the reserve after this requested appropriation is considered sufficient to meet present obligations and still provide for future contingencies. Any unexpended budgeted funds are returned to the Zone D-6 account at the close of the fiscal year.

Based on current projections, and since the assessment for this zone can be increased, barring any catastrophic event it is not anticipated that the reserve will be depleted.

The proposed actual FY 2022-23 assessment is $12.60/dueF. The proposed maximum FY 2022-23 assessment is $559.46/dueF, which is an increase of 7.12 percent over the FY 2021-22 maximum assessment. If the assessment was set at a level that would fully fund the estimated FY 2022-23 expenditures without an appropriation from the reserve, the assessment would be $188.32/dueF.

ZONE E-1, LITTLE JOHN CREEK:

Zone E-1 is located north of Industrial Drive between Pock Lane and State Highway 99.

Improvements maintained/to be maintained include back-up walls, trees in tree wells, landscaping between the walls and back of sidewalk, the special bridge railing on the Pock Lane Bridge, and fund a proportionate share of the costs for Ernie Shropshire Park. This zone also contributes its proportionate share of costs for maintenance of the Stockton Airport Business Center storm drainage basin.

The assessment approved when the Little John Creek Zone was originally formed was $59.68. In June of 2000, an increase to the assessment was approved to account for increased maintenance costs and to provide for park maintenance. That additional assessment amount was also approved with an annual escalator. The portion of the FY 2021-22 maximum allowable assessment for this zone that is over the original $59.68, $199.96, is subject to the escalator. The escalator is the greater of three percent or the percentage increase of the local CPI. The local CPI increased 7.12 percent; therefore, the FY 2022-23 escalator applied is 7.12 percent. The actual FY 2021-22 assessment was $197.20/dueF.

The anticipated Zone E-1 reserve balance as of June 30, 2022, is $654,740.40. The recommended reserve balance is $324,519.76. It is recommended that FY 2022-23 assessment increase by the CPI of 7.12 percent due to the financial impact of rapid inflation. This will be re-evaluated when preparing the FY 2023-24 budget. It is recommended there be an appropriation of $24,337.20 from the reserve to bring the reserve closer to the target level. Any unexpended budgeted funds are returned to the Zone E-1 account at the close of the fiscal year. Based on current projections, and since the assessment for this zone can be increased, barring any catastrophic event it is not anticipated that the reserve will be depleted.

Zone E-1 will contribute its proportionate share of $5,096.00 to the Stockton Airport Business Center Storm Drain Basin Maintenance District for maintenance costs of the Stockton Airport Business Center storm drain basin.

The proposed actual FY 2022-23 assessment is $211.22/dueF. The proposed maximum FY 2022-23 assessment is $280.96/dueF, which is a 7.12 percent increase in PRELIMINARY SUMMARY OF ZONES 254

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the park maintenance portion of the assessment over the FY 2021-22 maximum assessment. If the assessment was set at a level that would fully fund the estimated FY 2022-23 expenditures and reserve allocation, the assessment would be $242.03/dueF.

ZONE E-3, SEABREEZE:

Zone E-3 is generally located south of Industrial Drive and west of State Highway Route 99, and at the northwesterly corner of Pock Lane and Industrial Drive. Improvements maintained/to be maintained include back-up walls, landscaping between the walls and back of sidewalk, a landscaped area under the PG&E power lines west of Pock Lane, and fund a proportionate share of the costs for Ernie Shropshire Park. This zone also contributes its share for the costs of maintenance of the Stockton Airport Business Center storm drainage basin.

The actual FY 2021-22 assessment was $375/dueF.

The anticipated Zone E-3 reserve balance as of June 30, 2022, is $426,941.66. The recommended reserve balance is $413,678.66. It is recommended that FY 2022-23 assessment increase by the CPI of 7.12 percent due to the financial impact of rapid inflation. This will be re-evaluated when preparing the FY 2023-24 budget. There is a request for an appropriation of $51,426.84 from the reserve for continuing appropriations to fully fund estimated costs. The amount remaining in the reserve after this requested appropriation is considered sufficient to meet present obligations and still provide for future contingencies. The appropriation will be reduced, and the assessment gradually increased over the next several years until the assessment fully funds maintenance expenses and provide for contributing to the reserve to fund replacement of long service life improvements. Any unexpended budgeted funds are returned to the Zone E-3 account at the close of the fiscal year. Based on current projections, and since the assessment for this zone can be increased, barring any catastrophic event it is not anticipated that the reserve will be depleted.

Zone E-3 will also contribute $2,116 to the Stockton Airport Business Center Storm Drain Basin Maintenance District for its proportionate share of maintenance costs of the Stockton Airport Business Center storm drain basin.

The proposed actual FY 2022-23 assessment is $401.68/dueF. The proposed maximum FY 2022-23 assessment is $938.61/dueF, which is an increase of 7.12 percent over the FY 2021-22 maximum assessment. If the assessment was set at a level that would fully fund the estimated FY 2022-23 expenditures without an appropriation from the reserve, the assessment would be $566.51/dueF.

ZONE E-4, OAKMORE MEADOWS:

Zone E-4 is generally bounded by Alpine Avenue, the Union Pacific Railroad tracks, the Calaveras River, and Sanguinetti Lane. Improvements maintained/to be maintained PRELIMINARY SUMMARY OF ZONES 255

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include back-up walls, landscaping between the walls and back of sidewalk, and a future park.

The actual FY 2021-22 assessment was $11.60/dueF.

The anticipated Zone E-4 reserve balance as of June 30, 2022, is $409,375.81. The recommended reserve balance is $417,156.95. It is recommended that there be a $105,798.60 appropriation from the reserve, since the reserve exceeds the recommended reserve balance. The appropriation from the reserve, is designed to bring the reserve below the target level after this FY at which time the assessment will revert to a level that will fully fund budgeted expenditures and maintain the reserve.

The amount remaining in the reserve after this requested appropriation is considered sufficient to meet present obligations and still provide for future contingencies. Any unexpended budgeted funds are returned to the Zone E-4 account at the close of the fiscal year. Based on current projections, and since the assessment for this zone can be increased, barring any catastrophic event it is not anticipated that the reserve will be depleted.

The proposed actual FY 2022-23 assessment is $12.40/dueF. The proposed maximum FY 2022-23 assessment is $333.26/dueF, which is an increase of 7.12 percent over the FY 2021-22 maximum assessment. If the assessment was set at a level that would fully fund the estimated FY 2022-23 expenditures without an appropriation from the reserve, the assessment would be $154.22/dueF.

ZONE E-5, RANCHO DEL SOL:

Zone E-5 is located on the east side of Airport Way and lies north and south of Duck Creek. Improvements maintained/to be maintained include back-up walls, landscaping between the walls and back of sidewalk, and landscaping and path along the northerly side of Duck Creek.

The actual FY 2022-23 assessment was $120/dueF.

The anticipated Zone E-5 reserve balance as of June 30, 2022, is $506,695.99. The recommended reserve balance is $195,584. It is recommended there be an appropriation of $57,011.76 from the reserve. The appropriation in is designed to bring the reserve balance to the target level over the next few years at which time the assessment will revert to a level necessary to fund budgeted expenditures and maintain the reserve. The amount remaining in the reserve after this requested appropriation is considered sufficient to meet present obligations and still provide for future contingencies. Any unexpended budgeted funds are returned to the Zone E-5 account PRELIMINARY SUMMARY OF ZONES 256

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at the close of the fiscal year. Based on current projections, and since the assessment for this zone can be increased, barring any catastrophic event it is not anticipated that the reserve will be depleted.

The proposed actual FY 2022-23 assessment is $128.52/dueF. The proposed maximum FY 2022-23 assessment is $578.27/dueF, which is an increase of 7.12 percent over the FY 2021-22 maximum assessment. If the assessment was set at a level that would fully fund the estimated FY 2022-23 expenditures without an appropriation from the reserve, the assessment would be $286.01/dueF.

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Resolution No.

STOCKTON CITY COUNCIL

RESOLUTION OF INTENTION TO PRELIMINARILY APPROVE THE FISCAL YEAR 2022-23 STOCKTON CONSOLIDATED LANDSCAPE MAINTENANCE ASSESSMENT DISTRICT NO. 96-2 ANNUAL ENGINEER'S REPORT, PRELIMINARILY APPROVE THE PROPOSED FISCAL YEAR 2022-23 BUDGET, AND SET A PUBLIC HEARING FOR JUNE 14, 2022
On February 26, 1996, the City Council of the City of Stockton adopted Resolution No. 96-0084, which formed the "Stockton Consolidated Landscape Maintenance Assessment District No. 96-2", pursuant to the Landscaping and Lighting Act of 1972; and
The Engineer of Work has made and filed with the City Clerk the Annual Engineer's Report (the "Engineer's Report") for the district for Fiscal Year (FY) 2022-23 containing a full and detailed description of the improvements, the boundaries of the assessment district, the proposed budget for FY 2022-23, and the proposed assessments upon assessable lots and parcels of land within the assessment district necessary to provide funding for the landscaping, maintenance, inspection, repair, and replacement of improvements and other costs related to parks and other public improvements of benefit to property within the district; and
The City Council has duly considered said Engineer's Report and the assessments proposed for the maintenance of the improvements, and finds that the Engineer's Report is sufficient and that neither said Engineer's Report, nor any part thereof, requires modification in any respect; now, therefore,

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

1. The City Council finds that the Engineer's Report generally describes the existing, proposed improvements and any substantial changes proposed to be made to existing improvements and indicates the general location of the district and a full and detailed description of the improvements, the boundaries of the assessment district and the zones therein, and the proposed assessments upon assessable lots and parcels of land within the district. The Engineer's Report is on file with and can be viewed at the office of the City Clerk.

2. The Engineer's Report for the maintenance of the improvements for FY 2022-23 is preliminarily approved and confirmed for the Stockton Consolidated Landscape Maintenance Assessment District No. 96-2. All the assessments are within the assessment formula or range of assessments previously approved for the assessment district at the time it was established.
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3. The City Council intends to levy and collect the assessments set forth in the Engineer's Report.

4. Tuesday, June 14, 2022, at 5:30 p.m., or as soon thereafter as the matter can be heard, in the Council Chambers of City Hall, 425 North El Dorado Street, Stockton, California, is set as the date, time, and place when the City Council will conduct a public hearing to consider the final approval of the Annual Engineer's Report and the levy and collection of assessments for FY 2022-23.

5. The City Clerk is authorized and directed to publish notice of this public hearing in a newspaper of local circulation, at least 10 days prior to said hearing date, by publishing this Resolution as required by the Landscaping and Lighting Act of 1972 (Streets & Highways Code, §§ 22552 and 22553).

6. 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 April 19, 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 #: 22-0235, Version: 1
AUTHORIZE CONTRACT AMENDMENT NO. 2 WITH ALPHA ANALYTICAL LABORATORIES, INC. TO PROVIDE LABORATORY SERVICES

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

1. Authorizing Contract Amendment No. 2 (Attachment A) in the amount of $163,300 with Alpha Analytical Laboratories, Inc., Elk Grove, California, to provide laboratory services; and

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

Summary
Municipal Utilities Department (MUD) operations are regulated under Title 23 of the California Code of Regulations (Cal. Code Regs.) for the Water Enterprise, and the National Pollution Discharge Elimination System (NPDES) permits for the Wastewater and Stormwater Enterprises. The regulations prescribe the nature and type of analytical testing required to monitor MUD operations.

Testing services from specialized contract laboratories are necessary to supplement MUD laboratory capabilities to complete the required tests.

On December 10, 2019, by Motion 2019-12-10-1109, the City Council authorized a five-year contract with Alpha Analytical Laboratories, Inc. (Alpha Analytical), in the amount of $265,635. (Attachment B).

The contract was executed on January 9, 2020 and expires on December 31, 2024.

Contract Amendment No. 1 was approved under City Manager authority in May 2021. Amendment No. 1 modified the scope of work to include contract laboratory services for the MUD Environmental Control Division for Fiscal Years 2020-2021 and 2021-2022 and increased compensation by $64,048 (Attachment C). The total contract amount was revised to $329,683 for the five-year period.

On December 22, 2021, Alpha Analytical requested a five percent (5%) cost increase due to fuel, materials, and transportation cost escalation, effective January 1, 2022. (Attachment D).

If approved by Council, Contract Amendment No. 2 will revise the total contract price to $492,983 for the five-year period.

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DISCUSSION
Background
MUD operations are regulated under Title 23 of the Cal. Code Regs. for the Water Enterprise, and the National Pollution Discharge Elimination System (NPDES) permits for the Wastewater and Stormwater Enterprises. Each regulation prescribes the nature and type of analytical testing required to monitor the MUD’s operations. Testing services from specialized contract laboratories are necessary to supplement City capabilities to complete the required tests.

On December 10, 2019, by Motion 2019-12-10-1109, the City Council authorized a five-year Contract with Alpha Analytical in the amount of $265,635 (Attachment B). The contract was executed on January 9, 2020 and expires on December 31, 2024.

On May 14, 2021, Contract Amendment No. 1 was approved under the City Manager authority, modifying the scope of work to include contract laboratory services for the Environmental Control Division for Fiscal Years 2020-2021 and 2021-2022, and increase compensation by $64,048.

Contract Amendment No. 1 revised the total contract amount to $329,683 for the five-year period.

Present Situation
On December 22, 2021, Alpha Analytical informed staff they have experienced increased materials, and transportation costs and requested a five percent (5%) cost increase (Attachment D) effective January 1, 2022.

Staff also identified testing services required by regulatory agencies that were not included in the original scope of services, which need to be included (Attachment D). These services will be added to the scope of work with the approval of Contract Amendment No. 2.

As shown in the table below, this change order will be split between the Laboratory accounts and the Environmental Control accounts over the remainder of the contract.

Division FY 21-22 FY 22-23 FY 23-24 FY 24-25* Total
Laboratory $2,657 $2,790 $2,930 $1,537 $9,914
Environmental
Control
$2,613 $57,961 $60,860 $31,952 $153,386
Total $5,270 $60,751 $63,790 $33,489 $163,300
Note: *Contract expires December 31, 2024, so only half a fiscal year is shown.

Staff recommends approving a motion to authorize Contract Amendment No. 2 with Alpha Analytical Laboratories, Inc. of Elk Grove, California in the amount of $163,300 for the remaining two and a half years of the contract. Upon approval of Amendment No. 2, the Council authorized total contract over the five-year period will be $492,983.

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FINANCIAL SUMMARY
Funds are available for Fiscal Year 2021-22 from the Laboratory Services accounts. Costs for the subsequent years will be budgeted in the same accounts and subject to approval by the City Council during the annual budget development process.

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

Attachment A - Alpha Analytical Laboratories, Inc. Contract Amendment No. 2 Attachment B - Alpha Analytical Laboratories, Inc. Contract Attachment C - Alpha Analytical Laboratories, Inc. Contract Amendment No. 1 Attachment D - Cost Increase Request and Proposed Tests City of Stockton Page 3 of 3 Printed on 4/12/2022
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City of Stockton
Legislation Text
File #: 22-0297, Version: 1

APPROVE A RESOLUTION TO ACCEPT TRUST FUNDS OF THE ESTATE OF THE DECEDENT, CARL O. SCHATZ AS ORDERED BY THE SUPERIOR COURT OF CALIFORNIA, COUNTY OF SAN JOAQUIN IN THE AMOUNT OF $200,000 AND AMEND THE FY 2021-22 BUDGET

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

1. Accept funding from the estate of the decedent, Carl O. Schatz as ordered by the Superior Court of California, County of San Joaquin in the amount of $200,000; and

2. Appropriating revenue and expenditure budget in the Police Special Revenue Fund; and

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

Summary
On June 6, 2019, Carl O. Schatz died testate in San Joaquin County, California. The decedent’s will was admitted to probate by order of the court on February 26, 2020. Petitioner, Janice Fitzgerald, the duly appointed executrix of the estate was granted full authority by order of the court to administer the assets. All claims filed against the estate have been allowed by the executrix and paid. All debts of the decedent and all expenses of administration have been paid. The remaining balance of $200,000 was distributed to the City of Stockton’s Animal Shelter in November 2021.

DISCUSSION
Background
On June 6, 2019, Stockton resident, Carl O. Schatz died in San Joaquin County, California, leaving his estate to be distributed accordingly. On February 26, 2020, Janice Fitzgerald was appointed executrix of the decedent’s estate and granted authority to administer the estate without court supervision under the Independent Administration of Estates Act. Notices of administration had been given to each reasonably ascertainable creditor, and the time for filing the claims had expired as to all creditors, including those given notice of administration. All acts and transactions of the executrix relating to the matters set forth in the petition were confirmed and approved. The estate in the hands of the executrix remaining for distribution shall be distributed as follows: Janice Fitzgerald, Trustee of the Carl O. Schatz Revocable Trust dated January 25, 2002, states the remaining estate balance is to be given to the Stockton Animal Shelter. Funds were remitted to the City in the amount of $200,000 in November 2021.

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Present Situation
On February 22, 2021, the Superior Court of California, County of San Joaquin ordered the distribution of the remaining estate trust under the Carl O. Schatz Revocable Trust Agreement dated January 25, 2002 (Attachment A). The amount of $200,000 was distributed to the City of Stockton for use at the Animal Shelter.

Funds will be used to support the Stockton Animal Shelter renovation project, currently underway.

FINANCIAL SUMMARY
The City of Stockton Animal Shelter has received a court filing receipt of distribution for the Estate of Carl O. Schatz in the amount of $200,000. These trust funds will have no fiscal impact on the General Fund or any other unrestricted fund. Staff is requesting revenue and expenditure budget be established in the FY 2021-22 Police Animal Services Division, Special Revenue Fund to support the renovation of the Stockton Animal Shelter.

Attachment A - Court Order STK-PR-EST_2019-1349
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Resolution No.

STOCKTON CITY COUNCIL

RESOLUTION AUTHORIZING ACCEPTANCE OF TRUST FUNDS OF THE ESTATE OF THE DECEDENT, CARL O. SCHATZ AS, ORDERED BY THE SUPERIOR COURT OF CALIFORNIA, COUNTY OF SAN JOAQUIN, IN THE AMOUNT OF $200,000 AND APPROVING AN AMENDMENT OF THE FISCAL YEAR 2021-22 ANNUAL BUDGET On June 06, 2019, Carl O. Schatz died testate in San Joaquin County, leaving $200,000 of his estate to the City of Stockton Animal Shelter; and On February 26, 2020, the duly appointed executrix of the estate, Janice Fitzgerald was granted authority to administer the estate without court supervision under the Independent Administration of Estates Act; and On February 22, 2021, by order of the Superior Court of San Joaquin, the remaining estate trust of $200,000 was distributed to the City of Stockton Animal Shelter; now, therefore,

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

1. The City Council hereby accepts the trust funds of the estate of decedent, Carl O. Schatz, in the amount of $200,000.

2. The City Council hereby appropriates revenue and expenditure budget in the amount of $200,000 in the Police Department’s Fiscal Year 2021-22 Special Revenue Fund.

3. The City Manager, or designee, is hereby 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 April 19, 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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Legislation Text
File #: 22-0328, Version: 1

APPROVE MOTION TO AUTHORIZE THE SUBMITTAL OF PROJECTS TO THE SAN JOAQUIN COUNCIL OF GOVERNMENTS FOR “ONE VOICE” PROJECT PRIORITIES FOR FEDERAL FISCAL YEAR 2022-2023

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

1. Authorize the submittal of three projects to the San Joaquin Council of Governments for proposed federal funding as part of the annual “One Voice” trip to Washington, D.C.

2. Authorize associated agreements and undertake actions to accept and receive the funding in the event that the funding requests are successful, including any future amendments.

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 San Joaquin Council of Governments (SJCOG) coordinates an annual process known as “One Voice” to develop and present unified regional funding requests and legislative priorities to the federal government. The SJCOG asked the City to submit potential projects for the 2022 “One Voice” effort.

In priority order, staff recommends that the following projects and approximate requested funding amounts be submitted:

1. Lower Sacramento Road Corridor - $35,000,000;

2. Stockton Diamond Grade Separation Mitigation - $70,000,000; and

3. City of Stockton Sustainability Plan - $1,000,000.

This recommendation is derived from a staff review of significant projects in the Council adopted Five -Year Capital Improvement Plan (CIP), SJCOG Regional Transportation Plan, or other regionally significant projects. “One Voice” project recommendations are typically comprised of larger-scale transportation projects involving major arterials, portions of freeway systems through Stockton, or a project of significant benefit to the City or citizenry. Past submittals included: Miracle Mile (Pacific Avenue), Sperry Road Extension, French Camp and I-5 Interchange, Airport Way and Weber Avenue Beautification, Arch Road Widening, and North Stockton I-5 Widening. This year, SJCOG asked agencies to align proposed projects with one or more of certain thematic concepts. All three projects align with one or more of the thematic concepts outlined by SJCOG.

The SJCOG requires Council approval to submit funding requests for the “One Voice” effort. Staff will return to Council to accept any funding received as a result of the “One Voice” effort.

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DISCUSSION
Background
Since 2000, the SJCOG has coordinated an annual process known as “One Voice” to develop and present unified regional funding requests and legislative priorities to the federal government.

Typically, a delegation of policymakers, government officials, and business leaders from San Joaquin County present a targeted list of regional priorities to Congressional representatives and high-level agency staff in Washington, D.C., demonstrating cooperation among local agencies to secure federal funding. In recent years, trips have been cancelled or modified due to the impacts of COVID-19.

Recent lifting of COVID-19 restrictions has made it possible for the San Joaquin County delegation to physically go to Washington D.C. SJCOG has organized and planned a trip to present our region’s priorities for the week of May 8-12, 2022.
“One Voice” project recommendations are typically comprised of larger-scale transportation projects involving major arterials, portions of freeway systems through Stockton, or a project of significant benefit to the City or citizenry. Past submittals involved: Miracle Mile (Pacific Avenue), Sperry Road Extension, French Camp and I-5 Interchange, Airport Way and Weber Avenue Beautification, Arch Road Widening, and North Stockton I-5 Widening.

This year, SJCOG asked agencies to align proposed projects with one or more of the following thematic concepts:
· Environmental Sustainability - projects whose core features improve air quality, reduce vehicle miles traveled, and are responsive to climate change/resiliency goals. · Trade Corridors - projects which foster goods movement, commerce, or enhance/eliminate barriers to trade.
· Innovation and Technology - strategies/projects that capture cutting edge technology investments.
· Growth Management - projects which strengthen connections to housing and have strong, direct connectivity to economic development.
· Social Equity and Mobility - investments that provide options for disadvantaged communities.

The Lower Sacramento Road Corridor project fits with the growth management theme, as well as environmental sustainability. The project would provide a vital connection between communities and new housing areas. In addition, this project will encourage alternate modes of transportation with the incorporation of sidewalks and bicycle lanes.

The Stockton Diamond Grade Separation Mitigation project is new to “One Voice” and aligns with the Trade Corridors and Social Equity and Mobility themes. This project proposes to offset the impacts created by the Stockton Diamond Grade Separation project, which is currently being delivered by the San Joaquin Regional Rail Commission. While the Stockton Diamond Grade Separation project has City of Stockton Page 2 of 4 Printed on 4/12/2022
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many benefits for transit and freight movement, it also impacts the City’s transportation network, land uses, air quality, and other community concerns. The proposed “One Voice” project seeks to construct improvements to work in tandem with and enhance the Stockton Diamond Grade Separation project for the benefit of the community. The “One Voice” improvements are comprised of grade separation improvements at Hazelton Avenue and Dr. MLK Jr. Boulevard, development of a Union Street Multimodal greenbelt, fiber infrastructure, quiet zone, or other improvements. The estimated cost of the envisioned improvements totals approximately $80,000,000. However, the “One Voice” project request is $70,000,000 for the construction of grade separations at Hazelton Avenue and Dr. MLK Jr. Boulevard.

The City of Stockton Sustainability Plan is also new to “One Voice” and will align with the Environmental Sustainability and Innovation and Technology themes. This proposed sustainability plan will seek to lay out policies, goals, and objectives that will lead to the City becoming a leading agency in sustainability. The plan will focus on renewable energy, conversion of City facilities to more sustainable systems, and SMART City communication technologies.

Present Situation
The SJCOG requires Council approval to submit funding requests for the “One Voice” effort.

In response to the invitation to participate in the 2022 “One Voice” process, staff recommends submitting the following projects and requested funding amounts:

1. Lower Sacramento Road Corridor - $35,000,000;

2. Stockton Diamond Grade Separation Mitigation - $70,000,000; and

3. City of Stockton Sustainability Plan - $1,000,000.

In choosing these projects to submit for “One Voice,” staff reviewed significant projects in the Council adopted Five-Year CIP, SJCOG Regional Transportation Plan, and other regionally significant projects. In addition, all three projects align with one or more of the thematic concepts outlined by SJCOG.

A brief description of each project follows below:

1. Lower Sacramento Road Corridor - The Lower Sacramento Road Corridor project has been a “One Voice” project since 2014 and would complete the widening of this important regional arterial. The project will widen the Lower Sacramento Road Corridor from Royal Oaks Drive to Pixley Slough. Other improvements along this corridor include the replacement of the bridge over Bear Creek and Pixley Slough, as well as intersection improvements at Eight Mile Road, sidewalks, and bicycle lanes. These improvements will tie into the recently completed Lower Sacramento Road Grade Separation Underpass project and the San Joaquin County's Lower Sacramento Road Widening project. The City requests $35,000,000 for right-of-way acquisition and construction. Funding for design and environmental clearance has already been secured from the Measure K program.

2. Stockton Diamond Grade Separation Mitigation - The Stockton Diamond Grade Separation Mitigation project is new to “One Voice”. This project proposes to offset the impacts created by the Stockton Diamond Grade Separation project, which is currently being delivered by the San City of Stockton Page 3 of 4 Printed on 4/12/2022
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Joaquin Regional Rail Commission. While the Stockton Diamond Grade Separation project has many benefits for transit and freight movement, it also impacts the City’s transportation network, land use development, separation of communities, and other impacts. The proposed project seeks to construct improvements to work in tandem with and enhance the Stockton Diamond Grade Separation project. Projects may include, but not be limited to, (1) Reconstruction of Dr. MLK Jr. Boulevard between Airport Way and Stanislaus Street; (2) Construction of a grade separation on Hazelton Avenue at the Union Pacific Railroad; (3) Construction of a green belt area adjacent to the Stockton Diamond Grade Separation project; (4) Creation of a quiet zone from Dr. MLK Jr. Boulevard to Harding Way; and (5) Construction of various transportation, pedestrian, and bicycle improvements to local streets adjacent to the Stockton Diamond Grade Separation project. The City requests $70,000,000 for the construction of grade separation improvements at Hazelton Avenue and Dr. MLK Jr.

Boulevard.

3. City of Stockton Sustainability Plan - The City of Stockton Sustainability Plan is also new to “One Voice”. The City needs a Sustainability Plan that will provide clear direction on sustainability policy, goals, and objectives to enable the City of Stockton to become a leading agency in sustainability. The Sustainability Plan will focus on key areas of transportation, renewable energy, SMART City information and communication technologies, available funding sources, and identification of key strategic and priority projects. It is envisioned that City infrastructure, facilities, fleet, and other relevant assets will be reviewed for opportunities to advance sustainability goals. Regional and local sustainable efforts will also be reviewed for consistency and potential collaboration relative to City infrastructure, facilities, and other assets that will define how the City can become a leading agency in sustainability. The total estimated cost to develop the Plan is approximately $1,000,000 and will take 18 months to complete.

FINANCIAL SUMMARY
There are no immediate financial impacts associated with submitting these “One Voice” requests.

Should any federal funding be granted as a result of the “One Voice” effort, staff will return to Council with further information and recommendations specific to these projects. In the long run, the financial impacts will be favorable if the requests are successful since the City is already committed to implementing the projects.

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

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City of Stockton
Legislation Text
File #: 22-0394, Version: 1

ADOPT RESOLUTION TO AUTHORIZE THE ALEXANDRIA AND FIVE MILE SLOUGH CULVERT

REPLACEMENT PROJECT

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

1. Approve the Notice of Exemption No. NOE32-21 under the California Environmental Quality Act for the Alexandria and Five Mile Slough Culvert Replacement, Project No. WT19018.

2. Approve the plans and specifications for the Alexandria and Five Mile Slough Culvert Replacement, Project No. WT19018.

3. Award a Construction Contract in the amount of $708,215 to Sinclair General Engineering Construction, Inc. of Oakdale, CA, for the Alexandria and Five Mile Slough Culvert Replacement, Project No. WT19018.

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

Summary
The Alexandria and Five Mile Slough Culvert Replacement project will replace the existing corrugated metal pipe culvert beneath Alexandria Place and Five Mile Slough. The project will also install erosion mitigation elements near the Alexandria Place and Five Mile Slough storm pump station. The project was identified in the Five Mile Slough and Five Mile Creek Project Study Report (PSR) as an upcoming project the City would be implementing. The project was included in the 2019-24 FiveYear Capital Improvement Plan (CIP).

On January 20, 2022, the City received four bids for this project. Staff recommends award of the Construction Contract to the apparent low bidder, Sinclair General Engineering Construction, Inc., with a base bid amount of $682,865. There is sufficient budget available to award the base bid and the additive alternate in the amount of $25,350 for a total award amount of $708,215.

Staff also recommends that Council adopt a resolution approving Notice of Exemption No. NOE32-21 under the California Environmental Quality Act (CEQA) and approving the plans and specifications for the project.

Pending receipt of all project permitting, construction is anticipated to begin May 2022 and be substantially complete by December 2022.

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DISCUSSION
Background
In October 2017, the Public Works Department finalized the Five Mile Slough and Five Mile Creek PSR documenting the roles and responsibilities of public agencies and property owners along Five Mile Slough. The PSR addresses concerns raised by stakeholders near the Slough, including those of the group Friends of Five Mile Slough. Maintenance of the culvert beneath Alexandria Place was identified as the City’s responsibility in the PSR, and the Alexandria and Five Mile Slough Culvert Replacement, Project No. WT19018 is identified in the adopted 2019-24 Five-Year CIP.

The Alexandria and Five Mile Slough Culvert Replacement Project will replace the existing corrugated metal pipe culvert beneath Alexandria Place and Five Mile Slough. The project will also install erosion mitigation elements near the Alexandria Place and Five Mile Slough storm pump station.

On May 19, 2020, Council approved a Professional Services Contract with Siegfried Engineering, Inc. of Stockton, CA, to design the Alexandria and Five Mile Slough Culvert Replacement project.

The design was completed in November 2021.

On July 26, 2016, Council adopted a Community Workforce and Training Agreement (CWTA). The CWTA became effective August 25, 2016, and applies to all Public Works projects over $1 million that are bid after that date. On July 16, 2019, by Motion No. 2019-07-16-1403, Council extended the CWTA term to August 25, 2024. The CWTA was not applied to this project because the estimated construction cost was less than $1 million.

Present Situation
On December 16, 2021, the Alexandria and Five Mile Slough Culvert Replacement, Project No.

WT19018, was advertised for bids. On January 20, 2022, four bids were received with the following results:

COMPANY NAME BID AMOUNT ADDITIVE ALTERNATE
Sinclair General Engineering $ 682,865.00 $ 25,350.00
Construction, Inc.
(Oakdale, CA)
Saboo, Inc. $1,036,274.00 $104,000.00
(Baldwin Park, CA)
Viking Engineering $1,076,045.50 $ 78,000.00
(Rancho Cordova, CA)
Power Engineering $1,167,418.00 $ 21,060.00
(Alameda, CA)
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Engineer’s Estimate $ 847,693.00 $ 45,500.00
The requirements of Stockton Municipal Code (SMC) section 3.68.090, Local Business Preference, apply to this project. Application of the Local Business Preference has no effect on the bid order.

The Local Employment Ordinance, SMC section 3.68.095, also applies to this contract.

This project is required to be awarded based on the lowest bid received for the base bid. The bid from Sinclair General Engineering Construction, Inc., the apparent low bidder, is regular in all respects. Sinclair General Engineering Construction, Inc. has the proper license to perform the work, and their bid is lower than the engineer’s estimate.

Design of the project included an additive alternate to install rock slope protection at the base of the storm water pump station adjacent to the culvert to help mitigate erosion. Staff recommends proceeding with the additive alternate. With the addition of the additive alternate, in the amount of $25,350, the total award amount to Sinclair General Engineering Construction, Inc. becomes $708,215. Staff recommends Council approve the plans and specifications for the project and award a Construction Contract to Sinclair General Engineering Construction, Inc. of Oakdale, CA, in the amount of $708,215.

The project is in conformance with the City’s General Plan, pursuant to California Government Code section 65402, and is categorically exempt from the requirements of CEQA as specified under Section 15301(d), of the CEQA Guidelines. The activities related to this project constitute a discretionary project under the City’s jurisdiction and qualifies as a project that does not have a significant effect on the environment. The resolution will approve the Notice of Exemption No.

NOE32-21 under CEQA. Pending receipt of all project permitting, construction is anticipated to begin May 2022 and be substantially complete by December 2022.

FINANCIAL SUMMARY
There is sufficient funding in the Alexandria and Five Mile Slough Culvert Replacement, Project No.

WT19018 (formerly PW1918) to award a Construction Contract in the amount of $708,215 to Sinclair General Engineering Construction, Inc.

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

Attachment A - Vicinity Map
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ATTACHMENT A

ALEXANDRIA AND FIVE MILE SLOUGH CULVERT
REPLACEMENT, PROJECT NO. WT19018

VICINITY MAP

NOT TO SCALE

C)CITYLIMIT

CJ COUNTY LIMIT
LEGEND
0CULVERT REPLACEMENT LOCATION

CITY OF STOCKTON

DEPARTMENT OF PUBLIC WORKS
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Resolution No.

STOCKTON CITY COUNCIL
RESOLUTION APPROVING THE NOTICE OF EXEMPTION NO. NOE32-21,

APPROVING THE PLANS AND SPECIFICATIONS, AND AWARDING A

CONSTRUCTION CONTRACT FOR THE ALEXANDRIA AND FIVE MILE SLOUGH CULVERT REPLACEMENT, PROJECT NO. WT19018
On January 20, 2022, the City Clerk of the City of Stockton opened, examined, and publicly declared the sealed proposals or bids offered for the Alexandria and Five Mile Slough Culvert Replacement, Project No. WT19018 (formerly PW1918); and The project will replace the existing corrugated metal pipe culvert beneath Alexandria Place and Five Mile Slough. The project will also install erosion mitigation elements near the Alexandria Place and Five Mile Slough storm pump station; and Sinclair General Engineering Construction, Inc. is the apparent low bidder in the amount of $708,215; and
The project is categorically exempt from the requirements of the California Environmental Quality Act (CEQA) as specified under Section 15301(d) of the CEQA Guidelines, because this is a discretionary project under the City’s jurisdiction and qualifies as a project which has been determined to not have a significant effect on the environment; now, therefore,

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

1. The City Council approves the filing of Notice of Exemption No. NOE32-21 under the CEQA for the Alexandria and Five Mile Slough Culvert Replacement, Project No. WT19018 (formerly PW1918), a copy of which is attached as Exhibit 1 and incorporated by this reference.

2. The City Council approves the plans and specifications for the Alexandria and Five Mile Slough Culvert Replacement, Project No. WT19018 (formerly PW1918).

3. The City Council awards a Construction Contract between the City of Stockton and Sinclair General Engineering Construction, Inc., in the amount of $708,215, and the City Manager is authorized and directed to execute same, a copy of which is attached as Exhibit 2 and incorporated by this reference. //
//
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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 April 19, 2022 .

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

ELIZA R. GARZA, CMC
City Clerk of the City of Stockton
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EXHIBIT 1 330
Local Construction Contract – SINCLAIR GENERAL ENGINEERING CONSTRUCTION, INC – WT19018 (Updated 12/31/20)
CONTRACTOR agrees:

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

2. COMPENSATION. To do and perform the work contemplated hereby in a good and workmanlike manner and to furnish all labor, materials, tools, and equipment necessary therefore at the prices specified in Exhibit A, attached hereto and by reference made a part hereof, under the direction of and to the complete satisfaction of the Director of Public Works of the City of Stockton. Total compensation for services and reimbursement for costs shall not exceed $708,215.00, or as otherwise mutually agreed to in a Contract Change Order.

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

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

CONSTRUCTION CONTRACT
This contract is made and entered into on _____________, by and between SINCLAIR GENERAL ENGINEERING CONSTRUCTION, INC. a STATE OF CALIFORNIA CORPORATION, with a business address at 4842 FREELOVE RD, OAKDALE, CA 95361, hereinafter called "CONTRACTOR," and CITY OF STOCKTON, a municipal corporation, hereinafter called "CITY."
W I T N E S S E T H:

WHEREAS, plans and specifications for the construction of ALEXANDRIA AND FIVE MILE SLOUGH CULVERT REPLACEMENT, PROJECT NO. WT19018, hereinafter called “PROJECT,” were regularly adopted by Council Resolution No. __________________, on _________________; and
WHEREAS, the contract for said work was regularly awarded to CONTRACTOR, by Resolution No. __________________, on ________________.

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

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

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

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

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

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

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

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

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

CONTRACTOR agrees to include with all Subcontractors in their subcontract the same requirements and provisions of this agreement including the indemnity and insurance requirements to the extent they apply to the scope of the Subcontractor’s work.

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

4. INDEMNITY AND HOLD HARMLESS. With the exception that this section shall in no event be construed to require indemnification by Contractor to a greater extent EXHIBIT 2 Page 2 of 35 332
Local Construction Contract – SINCLAIR GENERAL ENGINEERING CONSTRUCTION, INC – WT19018 (Updated 12/31/20)
than permitted under the public policy of the State of California, Contractor shall indemnify, protect, defend with counsel approved by City and at Contractor’s sole cost and expense, and hold harmless City, its Mayor, Council, officials, representatives, agents, employees, and volunteers from and against any and all claims, causes of action, liabilities, judgments, awards, losses, liens, claims, stop notices, damages, expenses, and costs (including without limitation attorneys’ fees, expert and consultant fees, and other expenses of litigation) of every nature, including, but not limited to, death or injury to persons, or damage to property, which arise out of or are in any way connected with the work performed, materials furnished, or services provided under this Agreement, or from any violation of any federal, State, or municipal law or ordinance, or City Policy, by Contractor or Contractor’s officers, agents, employees, volunteers or subcontractors.

Contractor shall not be obligated to indemnify or defend City for claims finally determined by a court of law or arbitrator to arise from the active negligence or willful misconduct of the City. It is the intent of the Parties that this indemnity obligation is at least as broad as is permitted under California law. To the extent California Civil Code sections 2782, et seq., limit the defense or indemnity obligations of Contractor to City, the intent hereunder is to provide the maximum defense and indemnity obligations allowed by Contractor under the law. The indemnity set forth in this section shall not be limited by insurance requirements or by any other provision of this Agreement.

With exception that this section shall in no event be construed to require indemnification, including the duty to defend, by Contractor to a greater extent than permitted under the public policy of the State of California, the parties agree that Contractor’s duty to defend City is immediate and arises upon the filing of any claim against the City for damages which arise out of or are in any way connected with the work performed, materials furnished, or services provided under this Agreement by Contractor or Contractor’s officers, agents, employees, volunteers or subcontractors. Contractor’s duties and obligations to defend the City shall apply regardless of whether or not the issue of the City’s liability, breach of this Agreement, or other obligation or fault has been determined.

Contractor shall be immediately obligated to pay for City’s defense costs of the claim, including, but not limited to, court costs, attorney’s fees and costs, expert consultant and witness fees and costs, other witness fees, document reproduction costs, arbitration fees, and, if after final judgment an appeal is pursued, all of such costs for the appeal.

At the conclusion of the claim, if there is any determination or finding of sole active negligence or willful misconduct on the part of the City, City will then reimburse Contractor for amounts paid in excess of Contractor’s proportionate share of responsibility for the damages within 30 days after Contractor provides City with copies of all bills and expenses incurred in the defense of the claim(s). It is agreed between the parties that this reimbursement provision assures Contractor is not obligated to defend or indemnify City in an amount greater than provided for under California law, including, without limitation, California Civil Code sections 2782, 2782.6, and 2782.8.

With the exception that this section shall in no event be construed to require indemnification by Contractor to a greater extent than permitted under the public policy of the State of California, and in addition to the other indemnity obligations in this Agreement, Contractor shall indemnify, defend, and hold harmless City, its Mayor, Council, officials, representatives, agents, employees, and volunteers from and against all claims, losses, expenses, and costs including, but not limited to, attorneys’ fees, EXHIBIT 2 Page 3 of 35 333
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arising out of any claim brought against the City by an employee, office, agent, or volunteer of Contractor, regardless of whether such claim may be covered by any applicable workers compensation insurance. Contractor’s indemnification obligation is not limited in any way by any limitation on the amount or type of damages, compensation, or benefits payable by or for the Contractor under workers’ compensation acts, disability acts, or other employee benefit acts.

The City’s acceptance of the insurance certificates required under this Agreement does not relieve the CONTRACTOR from its obligation under this paragraph. The indemnification obligations of this section shall survive the termination of this agreement.

Any exceptions to this language may result in a proposal being deemed non-responsive.

CONTRACTOR/Subcontractor's responsibility for such defense and indemnity obligations shall survive the termination or completion of this agreement for the full period of time allowed by law.

The defense and indemnification obligations of this agreement are undertaken in addition to, and shall not in any way be limited by, the insurance obligations contained in this agreement. If any section, subsection, sentence, clause or phrase of this indemnification is for any reason held to be invalid or unconstitutional, such decision shall not affect the validity of the remaining portions of this indemnification.

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

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

6. WORKING DAYS. This work shall be diligently prosecuted to completion before the expiration of 80 WORKING DAYS beginning on the tenth calendar day after the date shown on the Notice to Proceed. It is agreed by the parties to the contract that in case all the work called for under the contract in all parts and requirements, is not finished or completed within the number of days as set forth, damage will be sustained by the CITY, and that it is and will be impracticable and extremely difficult to ascertain the actual damage which CITY will sustain in the event of and by reason of such delay; and it is therefore agreed that CONTRACTOR will pay to CITY the sum of THREE THOUSAND FIVE HUNDRED AND NO/100 DOLLARS ($3,500) per day for each and every calendar days delay in finishing the work in excess of the number of days prescribed; and CONTRACTOR agrees to pay said liquidated damages as herein provided, and in case the same are not paid, agrees that CITY, may deduct the amount thereof from any monies due or that may become due CONTRACTOR under the contract.

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

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

If CONTRACTOR is delayed by reason of alterations made in these specifications, or by any act of the Director of Public Works or of the CITY, not contemplated by the contract, the time of completion shall be extended proportionately and CONTRACTOR shall be relieved during the period of such extension of any claim for liquidated damages, engineering or inspection charges or other penalties. CONTRACTOR shall have no claim for any other compensation for any such delay.

7. CONFORMANCE TO APPLICABLE LAWS. Contractor shall comply with all applicable Federal, State, and Municipal laws, rules, and ordinances. Contractor shall not discriminate in the employment of persons or in the provision of services under this Contract on the basis of any legally protected classification, including race, color, national origin, ancestry, sex or religion of such person.
a. TITLE VI
Title VI of the Civil Rights Act of 1964 requires that “no person in the United States shall, on the grounds of race, color, or national origin, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity receiving federal financial assistance.” (42 USC Section 2000d)
http://www.dol.gov/oasam/regs/statutes/titlevi.htm.

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

EXHIBIT 2 Page 5 of 35 335
Local Construction Contract – SINCLAIR GENERAL ENGINEERING CONSTRUCTION, INC – WT19018 (Updated 12/31/20)
b. DISCRIMINATION AND HARASSMENT POLICY
The City of Stockton has a Discrimination and Harassment Policy (Exhibit C). The purpose of this policy is to reaffirm the CITY’s commitment to demonstrating respect for all individuals by strictly prohibiting discrimination and harassment, including sexual harassment in the workplace, to define the types of behavior and conduct prohibited by this policy, and to set forth a procedure for reporting, investigating, and resolving complaints of discrimination and harassment in the workplace. c. LABOR STANDARDS PROVISIONS/CALIFORNIA LABOR CODE
The bidder shall understand that conditions set forth in Chapter 1, Part 7, Division 2 of the California Labor Code shall be considered part of the contract agreement.
https://leginfo.legislature.ca.gov/faces/codes_displayText.xhtml?lawCode= LAB&division=2.&title=&part=7.&chapter=1.&article=2.
d. PREVAILING WAGE
CONTRACTOR and any subcontractor shall pay each employee engaged in the trade or occupation not less than the prevailing hourly wage rate. In accordance with the provisions of Section 1770 of the Labor Code, the Director of Department of Industrial Relations of the State of California has determined the general prevailing wage and employer payments for health and welfare, pension, vacation, travel time, and subsistence pay as provided for in Section 1773.1, apprenticeship or other training programs authorized by Section 3093 and similar purposes applicable to the work to be done. CONTRACTOR performing the work under this contract shall obtain a copy of the wage rate determination and shall distribute copies to each subcontractor. As the wage determination for each craft reflects an expiration date, it shall be the prime CONTRACTOR and each subcontractor's responsibility to insure that the prevailing wage rates of concern is current and paid to the employee.
i. The CONTRACTOR performing the work shall be responsible for obtaining a copy of the State wage rate determination. State wage rates may be obtained at
http://www.dir.ca.gov/OPRL/pwd/Determinations/Northern/Northern.pd f. The CONTRACTOR shall be responsible for posting said wage rates at a prominent location at the work site and shall maintain same in a good readable condition for the duration of the work.
ii. Should the CONTRACTOR choose to work on a Saturday, Sunday or on a holiday recognized by the Labor Unions, the CONTRACTOR shall reimburse the CITY the actual cost of engineering, inspection, superintendence, and or other overhead expenses which are directly chargeable to the contract. Should such work be undertaken at the EXHIBIT 2 Page 6 of 35 336
Local Construction Contract – SINCLAIR GENERAL ENGINEERING CONSTRUCTION, INC – WT19018 (Updated 12/31/20)
request of the CITY, reimbursement will not be required. To conform strictly with the provisions of Division 2, Part 7, Chapter 1, Article 2, of the Labor Code of the State of California. To forfeit as a penalty to CITY the sum of TWENTY-FIVE AND NO/100 DOLLARS ($25.00) for each laborer, worker, or mechanic employed by CONTRACTOR, or by any subcontractor under CONTRACTOR, in the execution of this contract, for each calendar day during which any laborer, worker, or mechanic is required or permitted to work more than eight (8) hours and who is not paid the general prevailing rate of per diem wages for holiday and overtime work in violation of the provisions of Sections 1770 to 1781 of the Labor Code of the State of California. That all sums forfeited under the provisions of the foregoing sections shall be deducted from the payments to be made under the terms of this contract.
iii. The CONTRACTOR to whom the contract is awarded shall insure that the prime and each subcontractor will in accordance with Section 1776 of the Labor Code, maintain certified payroll records. A copy of said records shall be provided with each invoice to the Public Works Department, Attention Contract Compliance Officer. It shall be the CONTRACTOR’S responsibility to obtain copies of the current prevailing wage rate determination for all subcontractors. Additionally, certified payroll records must be uploaded to the DIR website as required by labor code.
iv. The CONTRACTOR shall comply with the provisions established in Section 1777.5 of the Labor Code concerning the 1) certified approval by local joint apprenticeship committees for the employment and training of apprentices, and 2) contribution of funds to administer and conduct apprenticeship programs, if applicable to the job. e. LOCAL EMPLOYMENT ORDINANCE
Pursuant to Stockton Municipal Code Section 3.68.095 the CONTRACTOR and all subcontractors shall make a good faith effort to employ at least 50 percent of the workforce on this project from local residents, as measured by total labor work hours. Failure of any CONTRACTOR or subcontractor to comply with these requirements shall be deemed a material breach of the contract or subcontract. CONTRACTORS and subcontractors shall maintain records necessary for monitoring their compliance with section

3.68.095.

CITY agrees:

8. COMPENSATION. To pay CONTRACTOR for the work herein
contemplated in the following manner: Progress payments will be made on or about the first day of each calendar month, in such sum as shall make the aggregate of payment up to such day equal to ninety-five percent (95%) of the proportional contract price, upon EXHIBIT 2 Page 7 of 35 337
Local Construction Contract – SINCLAIR GENERAL ENGINEERING CONSTRUCTION, INC – WT19018 (Updated 12/31/20)
the basis of the progress certificate of the Director of Public Works as to the amount of work done and the proportional amount of the contract price represented therefore; and all of the remaining part of the contract price not as aforesaid paid, shall be paid at the expiration of thirty-five (35) days from the completion of said work of construction and the certification by the Director of Public Works of such completion.

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

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

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

Any such changes will be set forth in a contract change order which will specify, in addition to the work done in connection with the change made, adjustment of contract time, if any, and the basis of compensation for such work. A contract change order will not become effective until approved by the City Manager and/or the City Council.

Processing of change orders shall be in accordance with Section 4-1.05A of the City of Stockton Standard Specifications and Plans as adopted by Council on September 27, 2016, by Resolution No. 2016-09-27-1213, effective September 27, 2016, or as otherwise amended by Council. When the compensation for an item of work is subject to adjustment under the provisions of Standard Specifications and Plans, Section 4-1.05A, CONTRACTOR shall, upon request, promptly furnish the Engineer with adequate detailed cost data for such item of work.

11. AUDITS. 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.

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.

EXHIBIT 2 Page 8 of 35 338
Local Construction Contract – SINCLAIR GENERAL ENGINEERING CONSTRUCTION, INC – WT19018 (Updated 12/31/20)
CONTRACTOR further agrees to maintain such records for a period of three (3) years after final payment under the contract.

12. WAIVER. 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.

It is further understood and agreed by and between the parties hereto that time is of the essence of this contract in all respects.

IN WITNESS WHEREOF, the parties hereto have hereunto affixed their hands and seals the day and year first above written.

ATTEST: CITY:

ELIZA R. GARZA

CITY CLERK
By:

By: HARRY BLACK

CITY MANAGER
APPROVED AS TO FORM & CONTENT:

JOHN M. LUEBBERKE

OFFICE OF THE CITY ATTORNEY
By:

SINCLAIR GENERAL ENGINEERING
CONSTRUCTION, INC.

By:

DEPUTY CITY ATTORNEY
Tax Identification No.

EXHIBIT 2 Page 9 of 35 339

ALEXANDRIA AND FIVE MILE SLOUGH CULVERT REPLACEMENT
PROJECT NO. WT19018 (FORMERLY PW1918}

BIDDING SCHEDULE
Each bidder shall bid each item, including all alternate bid(s). Failure to bid an item shall be just cause for considering the bid as non-responsive. Line-item costs should include all Contractor's overhead and profit and indirect costs. Bids not presented on City forms shall be cause for considering the bid as non-responsive.

SECTION I
Item Description Unit
1 MOBILIZATION /GENERAL CONDITIONS LS
2 STORMWATER POLLUTION BMP'S LS
3 CONSTRUCTION STAKING LS
4 TRAFFIC CONTROL DETOURS AND LS ACCESS
5 COFFERDAMS LS
6 CLEARING AND GRUBBING LS
7 MISCELLANEOUS LANDSCAPE WORK LS
8 TEMPORARY CONSTRUCTION FENCING LF
9 REMOVE AND OFFHAUL OF EXISTING CY

SEDIMENT (CLASS II LANDFILL)
10 REMOVE AND DISPOSE OF EXISTING LF

ARCH CMP CULVERT
11 REMOVE AND DISPOSE OF EXISTING EA

WOOD HEADWALL
12 REMOVE AND DISPOSE OF EXISTING LF

WOOD FENCE
13 REMOVE AND DISPOSE OF EXISTING SF

ASPHALT CONCRETE
14 REMOVE AND DISPOSE OF EXISTING SF

CONCRETE
15 REMOVE AND DISPOSE OF EXISTING LF

CURB AND GUTTER
16 REMOVE AND DISPOSE OF EXISTING SF

DIRT/LAWN
17 REMOVE EXISTING STRIPING LF
Bid Forms Page 4 of 13
Quantity
1 1
1 1
1 1
1 490
190
90 1
13 926
301
75 1,221
28 Unit price
llo "2.�\ .OD
\ e,, '2DO .t:{)
S.9CO.C6
z�,000.00
4�,?Do.oo
2 l, l.\Db .CC)
lb ()S-0.CO
{g.SO
\l.\(J .oo

1.r�s .oo
4Be.cc
'3"1 .DC)

2.D()
lo .C)()
\ \.C)()

15.Cb

1..lo .DO
Total Price
l\.o, '2 '?>\.OD
lb.I�.Ot)
5 9D�.c::o
23,:,60-DO
L\B,706.t:o

2.\,1..\DD -OD
lD,O'SO.C:O
?, l'cS .Do
Z.to , louD -00
39,ISO.co
4i�.OD
'-li1.oo
\ ��2.tD
\�{)lo.ti)
tSZ.S .00
\�,'31'S.C()
728.Cf)
Last Revised: 12/31/20
EXHIBIT 2 Page 10 of 35 340
Item Description Unit Quantity Unit price Total Price
18 REMOVE EXISTING TREE EA 4 3SlS-DO I'-\ ?>m.OD
19 SAWCUT LF 191 lo.DD \ \ l\ lo .C)()
20 EARTHWORK/ ROUGH GRADING SF 3,759 olo .Do \ "3S.32.'-\.C1) 21 INSTALL 12" ASPHALT CONCRETE SF 836 DEEPLIFT 3D.DD ZS D&).OO 22 INSTALL CONCRETE SF 301 tS.DO '-\ $\S ,DO
23 INSTALL CURB AND GUTTER LF 75 �\-OD '3�2S.co
24 REPAIR OR REPLACE DIRT/LAWN SF 878 ls,. (')0 S.2.lo'o . .C:D 25 INSTALL 72"x42" CONCRETE BOX LF 85 CULVERT \ 9'1-Z.OD I lo9 � "2,_t)_ .(SD 26 INSTALL CONCRETE HEADWALL AND EA 2 APRON 21..\,t>to '-\'o, tco. m 27 INSTALL CLASS Ill ROCK SLOPE TON 90 PROTECTION 2.\� .OD \'t,ltO.C:O 28 CURB PAINT (RED) LF 58 lD.ro �B�
29 6" THERMOPLASTIC - YELLOW LF 52 2'-\.DD \.2.\.\B.ffi 30 4" THERMOPLASTIC - WHITE LF 10 24.tlD 240.CO
31 INSTALL WOOD FENCE LF 13 59b.OO 7,t �.cl:>
32 10" STORM DRAIN PIPE LF 102 100.ro l D . ? ('{') .ro

ADD AL TERNA TE
Item
1 Description Unit Quantity Unit price Total Price
INSTALL CLASS V ROCK SLOPE TON PROTECTION AT EXISTING PUMP 130 STATION OUTFALL \9S.to Z.'5, 3SO .co
SECTION 1 SUBTOTAL -��to&-Z. =p:.::::...::::::__8,(oS .(i) ___: _______ _ ADD AL TERNA TE SUBTOTAL --=2:...::
5::..!.
,..:::::.3-=---==D0°i___:-C�0-------- TOT AL BID ]DB,2.15 .t)D Bid Forms Page 5 of 13 Last Revised: 12/31/20
EXHIBIT 2 Page 11 of 35 341
The City of Stockton is now using www.PINSAdvantage.com to track Insurance Certificates and all related documents.

The PINS system starts with The City of Stockton. A Stockton User logs into PINS and emails a request for proof of insurance to the Vendor/Contractor. The Vendor/Contractor forwards the request email to their Insurance Agent(s). The Insurance Agent(s) logs into www.PINSAdvantage.com and completes the insurance certificate online.
www.pinsadvantage.com
+ 1 626 844 1838
WHAT IS THE PROCESS?
Note: Vendors will receive the insurance request email from: [email protected] Thank you for your compliance!
01 02
03 04
The Vendor/
Contractor forwards
the email to their
insurance agent(s).

PINS notifies
The City of Stockton
that documents have
been submitted and
automatically checks
for compliance.

Agent(s) log into
PINSAdvantage.com
and complete
the insurance
certificate online
A Stockton User
logs into PINS and
emails a request for
insurance to the
Vendor/Contractor
EXHIBIT 2 Page 12 of 35 342
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F:\PW Desktop Working Files\WT19018 ALEXANDRIA-5 MILE SLOUGH CULVERT SB1\Contruction\CONSTRUCTION - CONTRACT Files\Exhibit_05_Insurance_for_WT19018.docx
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.

ALEXANDRIA AND FIVE MILE SLOUGH CULVERT REPLACEMENT
PROJECT NO. WT19018
Insurance Requirements for Construction Contracts
Contractor shall procure and maintain for the duration of the contract, and for five (5) years thereafter, insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder by the Contractor, their agents, representatives, employees, or subcontractors. In the event contractor fails to obtain or maintain completed operations coverage as required by this agreement, the City, at its sole discretion, may purchase the coverage required and the cost will be paid by the contractor.

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

1. Commercial General Liability (CGL): Insurance Services Office (ISO) Form CG 00 01 covering CGL on an “occurrence” basis, including products and completed operations, property damage, bodily injury and personal & advertising injury with limits no less than $5,000,000 per occurrence. If a general aggregate limit applies, either the general aggregate limit shall apply separately to this project/location (ISO CG 25 03 or 25 04) or the general aggregate limit shall be twice the required occurrence limit.

2. Automobile Liability: Insurance Services Office Form CA 0001 covering Code 1 (any auto), with limits no less than $5,000,000 per accident for bodily injury and property damage.

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

4. Surety Bonds as described below.

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

EXHIBIT 2 Page 13 of 35 343
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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 is made that the minimum insurance requirements of this agreement are sufficient to cover the obligations of the Contractor under this agreement.

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

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

Additional Insured Status
The City of Stockton, its officers, officials, employees, and volunteers are to be covered as additional insureds on the CGL policy with respect to liability arising out of work or operations performed by or on behalf of the Contractor including materials, parts, or equipment furnished in connection with such work or operations. General liability coverage can be provided in the form of an endorsement to the Contractor’s insurance (at least as broad as ISO Form CG 20 10 11 85 or if not available, through the addition of both CG 20 10, CG 20 26, CG 20 33, or CG 20 38; and CG 20 37 if a later edition is used). Additional insured Name of Organization shall read “City of Stockton, its officers, officials, employees, and volunteers.” Policy shall cover City of Stockton, its officers, officials, employees, and volunteers for all locations work is done under this contract.

Primary Coverage
The Additional Insured coverage under the Contractor’s policy shall be “primary and non-contributory” and will not seek contribution from the City’s insurance or selfinsurance 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.

EXHIBIT 2 Page 14 of 35 344
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F:\PW Desktop Working Files\WT19018 ALEXANDRIA-5 MILE SLOUGH CULVERT SB1\Contruction\CONSTRUCTION - CONTRACT Files\Exhibit_05_Insurance_for_WT19018.docx
Claims Made Policies – (Note – applicable only to professional and/or pollution liability)
If any coverage required is written on a claims-made coverage form:

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

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

3. If coverage is canceled or non-renewed, and not replaced with another claims-made policy form with a retroactive date prior to the contract 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
EXHIBIT 2 Page 15 of 35 345
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All Self-insured retentions must be disclosed to Risk Management for approval and shall not reduce the limits of liability. The City of Stockton may require the Contractor to purchase coverage with a lower retention or provide proof of ability to pay losses and related investigations, claim administration, and defense expenses within the retention.

The policy language shall provide, or be endorsed to provide, that the self-insured retention may be satisfied by either the named insured or City of Stockton.

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

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.

EXHIBIT 2 Page 16 of 35 346
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Surety Bonds
Contractor shall provide the following Surety Bonds:

1. Bid bond

2. Performance bond

3. Payment bond (or Labor and Material bond)

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

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

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

City of Stockton
Attn: City Risk Services
400 E Main Street, 3rd Floor – HR
Stockton, CA 95202
EXHIBIT 2 Page 17 of 35 347
Subject:

CITY OF STOCKTON, CALIFORNIA

CITY MANAGER ADMINISTRATIVE DIRECTIVE
Directive No. HR-15 Page No. 1 of 14
DISCRIMINATION AND Effective Date: Revised From: HARASSMENT POLICY 7/27/09 5/1/2015 4/6/09
3/1/2010
(see below)
PER-015 (Sexual Harassment in the Workplace) revised from 10/21/94, 5/1/95, 1/1/98 PER-037 (Sexual Harassment Investigative Procedures) revised from 2/15/93 I. PURPOSE
The purpose of this policy is to reaffirm the City's commitment to demonstrating respect for all individuals by strictly prohibiting discrimination and harassment, including sexual harassment in the workplace. This policy defines prohibited behavior and conduct, and sets forth a procedure for reporting, investigating and resolving complaints of discrimination, harassment, in the workplace, including retaliation and hostile work environment.

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, childbirth and breastfeeding), political affiliation, age (40 and older), concerted labor activity, or any other category or attribute consistent with state or federal law.

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

C. The City will neither tolerate nor condone discrimination and/or harassment of employees by managers, supervisors, co-workers, or non-employees with whom City employees have a business service, or professional relationship.

D. All City employees and non-employees share a responsibility to assist in EXHIBIT 2 Page 18 of 35 348
Subject:

CITY OF STOCKTON, CALIFORNIA

CITY MANAGER ADMINISTRATIVE DIRECTIVE
Directive No. HR-15 Page No. 2 of 14
DISCRIMINATION AND Effective Date: Revised From: HARASSMENT POLICY 7/27/09 5/1/2015 4/6/09
3/1/2010
(see below)
PER-015 (Sexual Harassment in the Workplace) revised from 10/21/94, 5/1/95, 1/1/98 PER-037 (Sexual Harassment Investigative Procedures) revised from 2/15/93 maintaining an employment environment free of discrimination and harassment. This policy applies to all aspects of City employment, including, but not limited to, hiring, reassignment, placement, promotion, employment action, disciplinary action, layoff, reemployment, transfer, leave of absence, compensation and benefits, training; or other terms of treatment of that person in an unpaid internship, or another limited duration program to provide unpaid work experience for that person, or the harassment of an unpaid intern or volunteer.

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

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

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

I. This policy shall be administered by the Director of Human Resources.

EXHIBIT 2 Page 19 of 35 349
Subject:

CITY OF STOCKTON, CALIFORNIA

CITY MANAGER ADMINISTRATIVE DIRECTIVE
Directive No. HR-15 Page No. 3 of 14
DISCRIMINATION AND Effective Date: Revised From: HARASSMENT POLICY 7/27/09 5/1/2015 4/6/09
3/1/2010
(see below)
PER-015 (Sexual Harassment m the Workplace) revised from 10/21/94, 5/1/95, 1/1/98 PER-037 (Sexual Harassment Investigative Procedures) revised from 2/15/93 Ill. DEFINITION AND EXAMPLES OF DISCRIMINATION AND HARASSMENT A. "Discrimination," as used in this policy, is any action, behavior, practice, or process that is intended to deny, or results in the denial of, employment rights, privileges, or benefits because of a person's race, religious creed, color, national origin, ancestry, military and veterans status, physical or mental disability, medical condition, genetic characteristics or information, denial of family and medical care leave, marital status, sexual orientation, sex (including gender, gender identity, gender expression, transgender, pregnancy, childbirth and breastfeeding), political affiliation, age (40 and older), concerted labor activity, or any other prohibition identified under state and federal law. The following are examples of conduct that may constitute discrimination:

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

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

3. Questioning a job applicant about the existence, nature and severity of a disability.

B. "Harassment," as used in this policy, consists of any conduct affecting another person because of his or her race, religious creed, color, national origin, ancestry, military and veterans status, physical or mental disability, medical condition, genetic characteristics or information, denial of family and medical care leave, marital status, sexual orientation, sex (including gender, gender identity, gender expression, transgender, pregnancy, childbirth and breastfeeding), political affiliation, age (40 and older), concerted labor activity, or any other category or attribute identified under state and federal law when such conduct has the purpose or the effect of: (1) creating an intimidating, hostile or offensive work environment; (2) unreasonably interfering with the employee's or non-employee's work performance; or (3) EXHIBIT 2 Page 20 of 35 350
Subject:

CITY OF STOCKTON, CALIFORNIA

CITY MANAGER ADMINISTRATIVE DIRECTIVE
Directive No. HR-15 Page No. 4 of 14

DISCRIMINATION AND
HARASSMENT POLICY Effective Date: Revised From:
7/27/09
5/1/2015 4/6/09
3/1/2010
(see below)
PER-015 (Sexual Harassment in the Workplace) revised from 10/21/94, 5/1/95, 1/1/98 PER-037 (Sexual Harassment Investigative Procedures) revised from 2/15/93 otherwise adversely affecting an employee's or non-employee's employment opportunities.

Harassment may take many forms, including, but not limited to, the following examples:

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

2. 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.

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

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

1. Submission to such conduct is made a term or condition of employment; or

2. Submission to or rejection of such conduct is used as a basis for employment decisions affecting the individual; or
EXHIBIT 2 Page 21 of 35 351
Subject:

CITY OF STOCKTON, CALIFORNIA

CITY MANAGER ADMINISTRATIVE DIRECTIVE
Directive No. HR-15 Page No. 5 of 14

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 2 Page 22 of 35 352
Subject:

CITY OF STOCKTON, CALIFORNIA

CITY MANAGER ADMINISTRATIVE DIRECTIVE
Directive No. HR-15 Page No. 6 of 14
DISCRIMINATION AND Effective Date: HARASSMENT POLICY Revised From:
7/27/09
5/1/2015 4/6/09
3/1/2010
(see below)
PER-015 (Sexual Harassment in the Workplace) revised from 10/21/94, 5/1/95. 1/1/98 PER-037 (Sexual Harassment Investigative Procedures) revised from 2/15/93 i. Retaliation for making harassment reports or threatening to report harassment.

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

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

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

3. Testifies in a proceeding concerning such violation;

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

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

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

IV. REPORTING AND COMPLAINT PROCEDURES
A. Immediate Action Required
The City's reporting and complaint procedures provide for an immediate, thorough and objective investigation of discrimination or harassment claims, appropriate disciplinary action taken against any person found to have engaged in prohibited behavior, and appropriate alternative remedies to any EXHIBIT 2 Page 23 of 35 353
Subject:

CITY OF STOCKTON, CALIFORNIA

CITY MANAGER ADMINISTRATIVE DIRECTIVE
Directive No. HR-15 Page No. 7 of 14
DISCRIMINATION AND Effective Date: Revised From: HARASSMENT POLICY 7/27/09 5/1/2015 4/6/09
3/1/2010
(see below)
PER-015 (Sexual Harassment in the Workplace) revised from 10/21/94, 5/1/95, 1/1/98 PER-037 (Sexual Harassment Investigative Procedures) revised from 2/15/93 employee or non-employee subject to discrimination or harassment. To accomplish this, such incidents must be reported immediately to a supervisor or manager.

1. Employee's and Non-Employee's Responsibilities when Subjected to Discrimination and/or 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, shall 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 in the unwanted behavior. In that case, the employee or non-employee may contact someone at the next supervisory level. If the employee or non-employee feels uncomfortable dealing directly with his or her immediate supervisor or manager, he or she may contact the department head, or the Director of Human Resources (or either of their designees) to register a complaint of discrimination or harassment.
c. Employees and non-employees may file a formal complaint of harassment or discrimination with their department head or EXHIBIT 2 Page 24 of 35 354
Subject:

CITY OF STOCKTON, CALIFORNIA

CITY MANAGER ADMINISTRATIVE DIRECTIVE
Directive No. HR-15 Page No. 8 of 14

DISCRIMINATION AND
HARASSMENT POLICY Effective Date: Revised From:
7/27/09
5/1/2015 4/6/09
3/1/2010
(see below)
PER-015 (Sexual Harassment In the Workplace) revised from 10/21/94, 5/1/95, 1/1/98 PER-037 (Sexual Harassment Investigative Procedures) revised from 2/15/93 with Human Resources. To assist the City in conducting a thorough investigation, complaints shall be submitted in writing and shall include specific details of the incident(s), the names of the individuals involved, the names of any witnesses, and any documentary evidence (notes, pictures, cartoons, etc.) that will corroborate the allegations.
d. Employees and non-employees shall immediately report any retaliation to a supervisor, manager, department head or Director of Human Resources (or designee). All retaliation complaints shall be immediately, objectively and thoroughly investigated in accordance with the investigation procedures.

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

2. Supervisor's or Manager's Responsibilities to Eliminate Discrimination and/or Harassment
a. A supervisor or manager is responsible for enforcing the City's discrimination and harassment policy. Supervisors or
managers must ensure that all employees and non-employees are aware of the City's policy through open discussion of the policy at staff meetings and by posting the policy in a conspicuous location accessible to all staff members.
b. A supervisor or manager shall be cognizant of employees' and non-employees' behavior and shall not permit any employee or non-employee under their supervision to be subjected to or engage in any conduct prohibited by this policy.
c. A supervisor or manager who observes conduct prohibited by this policy shall immediately direct the employee or nonemployee to cease the conduct.

EXHIBIT 2 Page 25 of 35 355
Subject:

CITY OF STOCKTON, CALIFORNIA

CITY MANAGER ADMINISTRATIVE DIRECTIVE
Directive No. HR-15 Page No. 9 of 14
DISCRIMINATION AND Revised From: HARASSMENT POLICY Effective Date:
7/27/09
5/1/2015 4/6/09
3/1/2010
(see below)
PER-015 (Sexual Harassment in the Workplace) revised from 10/21/94, 5/1/95, 1/1/98 PER-037 (Sexual Harassment Investigative Procedures) revised from 2/15/93 d. A supervisor or manager who receives a complaint of
prohibited conduct is required to take the complaint seriously, and report the matter immediately to the department head; be supportive of the complainant; ensure there is no retaliation against the complainant; conduct an internal fact-finding review into the allegations; obtain as much detailed information as possible; thoroughly document the findings; communicate in written form to the parties the resolution of the complaint; and report to and consult with the Human Resources Department promptly, without delay.

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

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

V. INVESTIGATION PROCEDURES
A. Determination of Responsibility for Investigation
If a formal complaint is filed with the department head or the Director of Human Resources (or either of their designees), the department head and the Director of Human Resources shall consult with one another to determine whether the department or Human Resources shall conduct the fact-finding investigation into the allegations. Either the department head or the Director of Human Resources (or either of their designees), depending on who is EXHIBIT 2 Page 26 of 35 356
Subject:

CITY OF STOCKTON, CALIFORNIA

CITY MANAGER ADMINISTRATIVE DIRECTIVE
Directive No. HR-15 Page No.10 of 14
DISCRIMINATION AND Effective Date: Revised From: HARASSMENT POLICY 7/27/09 5/1/2015 4/6/09
3/1/2010
(see below)
PER-015 (Sexual Harassment In the Workplace) revised from 10/21/94, 5/1/95, 1/1/98 PER-037 (Sexual Harassment Investigative Procedures) revised from 2/15/93 responsible for the investigation, shall issue written notification to the complainant and alleged harasser(s). The notification shall specify the nature of the complaint, and inform the parties that an investigation into the allegations of discrimination and/or harassment shall be conducted.

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

1. Identify and preserve the evidence.

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

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

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

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

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

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

8. Ascertain if the complainant knows of or suspects that there are other victims of harassment by the same person(s).

9. Ascertain whether the complainant has spoken to anyone, especially EXHIBIT 2 Page 27 of 35 357
Subject:

CITY OF STOCKTON, CALIFORNIA

CITY MANAGER ADMINISTRATIVE DIRECTIVE
Directive No. HR-15 Page No. 11 of 14

DISCRIMINATION AND
HARASSMENT POLICY Effective Date: Revised From:
7/27/09
5/1/2015 4/6/09
3/1/2010
(see below)
PER-015 (Sexual Harassment m the Workplace) revised from 10/21/94, 5/1/95, 1/1/98 PER-037 (Sexual Harassment Investigative Procedures) revised from 2/15/93 supervisors, about the harassment.

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

11. Interview the alleged harasser to get his or her side of the story, including any possible motivation for a false allegation.

12. Interview witnesses who were identified by the complainant regarding the alleged harasser or other persons identified during the investigation.

13. Interview witnesses who were identified by the alleged harasser or other persons identified during the investigation.

14. Advise all participants that the investigation is "confidential" and not to engage in any retaliatory conduct, as such conduct is subject to disciplinary action up to and including discharge. Confidentiality will be maintained to the extent possible. An individual who is interviewed during the course of an investigation is prohibited from discussing the substance of the interview, except as otherwise directed by a supervisor or the Director of Human Resources. Any individual who discusses the content of an investigatory interview will be subject to discipline or other appropriate sanction.

15. Conduct follow-up interviews, if warranted.

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

VI. RESPONDING TO THE COMPLAINT
A. Following the completion of the fact-finding investigation, either the department head or the Director of Human Resources (or either of their designees), depending on who is responsible for the investigation, shall EXHIBIT 2 Page 28 of 35 358
Subject:

CITY OF STOCKTON, CALIFORNIA

CITY MANAGER ADMINISTRATIVE DIRECTIVE
Directive No. HR-15 Page No.12 of 14
DISCRIMINATION AND Effective Date: Revised From: HARASSMENT POLICY 7/27/09 5/1/2015 4/6/09
3/1/2010
(see below)
PER-015 (Sexual Harassment in the Workplace) revised from 10/21/94, 5/1/95, 1/1/98 PER-037 (Sexual Harassment Investigative Procedures) revised from 2/15/93 make a report of findings, along with a recommendation regarding the appropriate remedial action to be taken, if warranted. The recommendation shall be made after reviewing the findings of the investigation, giving consideration to all factual information, the nature of the alleged conduct, and the totality of the circumstances. If the investigation was conducted by the Director of Human Resources, or designee, the Director, or designee, shall confer with the affected department head and both shall concur on the remedial action to be taken, if any. If the investigation was conducted by the department head, the department head shall confer with the Director of Human Resources prior to making the report of findings and both shall concur on the remedial action to be taken, if any.

B. If either the department head or the Director of Human Resources does not concur with the findings and recommendation of the other, the City Attorney (or designee) shall review and resolve the matter in dispute.

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

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

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

2. Unfounded: The investigation proved that the act(s) or omission(s) EXHIBIT 2 Page 29 of 35 359

CITY OF STOCKTON, CALIFORNIA

CITY MANAGER ADMINISTRATIVE DIRECTIVE
Subject: Directive No. HR-15 Page No. 13 of 14
DISCRIMINATION AND Effective Date: Revised From: HARASSMENT POLICY 7/27/09

3. 5/1/2015 4/6/09
3/1/2010
(see below)
PER-015 (Sexual Harassment in the Workplace) revised from 10/21/94, 5/1/95, 1/1/98 PER-037 (Sexual Harassment Investigative Procedures) revised from 2/15/93 complained of did not occur. The finding also applies when the individual employee(s) named in the complaint were not involved in the act(s) or omission(s) alleged.

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

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

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

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

VIII. ALTERNATIVE REMEDIES
If upon exhausting all internal remedies to file, investigate, and respond to a charges of discrimination/harassment, pursuant to title VII of the Federal Civil Rights Act of 1964 (42 U.S.C §§ 2000e et seq.), any person has a right to file a charge of discrimination/harassment with the Equal Employment Opportunity Commission ("EEOC"). In addition, pursuant to the California Fair Employment and Housing Act (Gov. Code §§ 12900 - 12996.) a person may also file a complaint of discrimination/harassment with the California Department of Fair Employment and Housing ("DFEH"). Employees or non-employees who believe that they have been subjected to discrimination/harassment may file a complaint with either of these EXHIBIT 2 Page 30 of 35 360

CITY OF STOCKTON, CALIFORNIA

CITY MANAGER ADMINISTRATIVE DIRECTIVE
Subject: Directive No. HR-15 Page No. 14 of 14

DISCRIMINATION AND
HARASSMENT POLICY Effective Date: Revised From:
7/27/09
5/1/2015 4/6/09
3/1/2010
(see below)
PER-015 (Sexual Harassment in the Workplace) revised from 10/21/94, 5/1/95, 1/1/98 PER-037 (Sexual Harassment Investigative Procedures) revised from 2/15/93 agencies. Both the EEOC and DFEH serve as neutral fact-finders and attempt to assist parties in resolving disputes voluntarily.

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

APPROVED:
c:r��SON

CITY MANAGER
::ODMA\GRPWISE\COS.PER.PER_Library:96180.1
EXHIBIT 2 Page 31 of 35 361

BOND FOR FAITHFUL PERFORMANCE
KNOW ALL MEN BY THESE PRESENTS:

That we, SINCLAIR GENERAL ENGINEERING CONSTRUCTION, INC, a STATE OF CALIFORNIA CORPORATION, as Principal and
, a corporation, organized and existing under the laws
of the State of California 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 SEVEN HUNDRED EIGHT THOUSAND TWO HUNDRED FIFTEEN AND XX/100 DOLLARS ($708,215.00), 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:

ALEXANDRIA AND FIVE MILE SLOUGH CULVERT REPLACEMENT
(PROJECT NO. WT19018)
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.

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 1 EXHIBIT 2 Page 32 of 35 362
2 provisions of Sections 2819 and 2845 of the Civil Code of the State of California.

SIGNED AND SEALED on
APPROVED AS TO SURETY: By:

PRINCIPAL
SURETY
APPROVED AS TO FORM & CONTENT:

JOHN M. LUEBBERKE

OFFICE OF THE CITY ATTORNEY
By:

ATTORNEY-IN-FACT
By:

DEPUTY CITY ATTORNEY
EXHIBIT 2 Page 33 of 35 363

BOND FOR LABOR AND MATERIAL
KNOW ALL MEN BY THESE PRESENTS:

That we, SINCLAIR GENERAL ENGINEERING CONSTRUCTION, INC, a STATE OF CALIFORNIA CORPORATION, PARTNERSHIP, 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 SEVEN HUNDRED EIGHT THOUSAND TWO HUNDRED FIFTEEN AND XX/100 DOLLARS ($708,215.00), in lawful money of the United States of America (being 100% of the contract price) for the payment whereof well and truly to be made to said CITY and to said persons jointly and severally, the said principal and Surety bind themselves, 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:

ALEXANDRIA AND FIVE MILE SLOUGH CULVERT REPLACEMENT
(PROJECT NO. WT19018)
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 3 EXHIBIT 2 Page 34 of 35 364
4 this bond will pay the same, in an amount not exceeding the sum specified in this bond, provided that any and all claims hereunder shall be filed and proceedings had in connection therewith as required by the provisions of Division 3, Part 4, Title 15, Chapter 5, Article 1 of the Civil Code of California, provided that in case suit is brought upon this bond, a reasonable attorney's fee shall be awarded by the Court to the prevailing party in said suit; said attorney's fee to be fixed as costs in said suit, and to be included in the judgment therein rendered.

No prepayment or delay in payment and no change, extension, addition or alteration of any provision of said contract or in said plans or specifications agreed to between the said CONTRACTOR and the said CITY and no forbearance on the part of the said CITY shall operate to relieve any surety or sureties from liability on this bond, and consent to make such alterations without further notice to or consent by any such surety is hereby given, and the said sureties hereby waive the provisions of Sections 2819 and 2845 of the Civil Code of the State of California.

SIGNED AND SEALED on .

APPROVED AS TO SURETY: By:

PRINCIPAL
SURETY
APPROVED AS TO FORM & CONTENT:

JOHN M. LUEBBERKE

OFFICE OF THE CITY ATTORNEY
By:

ATTORNEY-IN-FACT
By:

DEPUTY CITY ATTORNEY
EXHIBIT 2 Page 35 of 35 365
City of Stockton
Legislation Text
File #: 22-0227, Version: 1
APPROVE THE 2022 STOCKTON TOURISM BUSINESS IMPROVEMENT DISTRICT BUDGET AND SERVICE PLAN, AND 2021 ANNUAL REPORT

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

1. Approving the 2022 Annual Service Plan for the Stockton Tourism Business Improvement District;

2. Approving the 2022 Operating Budget and Assessment for the Stockton Tourism Business Improvement District;

3. Approving the 2021 Annual Report for the Stockton Tourism Business Improvement District; and

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

Summary
The City of Stockton contracts with the Stockton Convention & Visitors Bureau (Visit Stockton) to manage assessed funds collected from the Stockton Tourism Business Improvement District (STBID) and provide services as described in the approved Management District Plan. The contract requires Visit Stockton to submit an Annual Service Plan for the upcoming year, and an Annual Report from the prior year. The 2022 Annual Service Plan consists of the proposed operating budget, assessment, and anticipated goals for this calendar year. The Council is being asked to approve the 2022 Annual Service Plan, 2021 Annual Report and 2022 Operating Budget for Visit Stockton, which are attached as Exhibits 1, 2, and 3 to the Resolution, respectively.

DISCUSSION
Background
The STBID was established in December 2010 for a five-year term. Prior to its expiration in 2015, it was renewed and extended for an additional ten years, set to expire on December 31, 2025. The STBID includes all lodging businesses, existing and future, available for public occupancy within the boundaries of the City of Stockton.

The formation of the STBID was made possible under the California Property and Business Improvement District Law of 1994 to act as a funding mechanism to promote tourism in Stockton.

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These businesses are assessed a 4% rate of gross revenue for short-term stays that are less than 31 days. Tourism Business Improvement Districts (TBIDs) allow lodging and tourism-related business owners to use the assessed funds for marketing, promotion, and tourism-related activities.

The City of Stockton contracts with the Stockton Convention & Visitors Bureau (Visit Stockton) to manage the funds and report annually on services and marketing activities. Its mission statement is to enhance the region’s quality of life by collaboratively leading the promotion of Stockton’s richly diverse community and advocating for initiatives that will enhance the City’s quality of place. The contract requires Visit Stockton to submit an Annual Service Plan and Annual Report to be approved by the City Council. The 2022 Annual Service Plan describes the proposed activities, goals, objectives, and budget for the coming year.

The STBID Management District Plan stipulates proportionate budget allocation as follows, per year:
· Sales and Marketing - 75% or greater (Designed to increase occupancy rates) · Administration and Operations - 20% or less (Administrative/Operational Expenses) · Contingency/Renewal - 5%
The Management District Plan allows for the proportionate budget allocation percentages to fluctuate based on the proposed objectives, but not to exceed 15% per category each year.

Present Situation
Approaching the second anniversary of the beginning of the pandemic, we continue to notice the impact to the travel and hospitality industries, but also the tenacity and persistence through these uncertain times. Stockton’s hotel community has seen one of the best years with occupancy in most months of 2021 above those in 2019. The Visit Stockton 2021 Annual Report summarizes the activities and services administered by Visit Stockton last year. A few of those accomplishments are listed below:
· Stockton Healthy Pledge: Launched in May 2020 and wrapped up in June 2021, this voluntary business pledge has served more than 300 participating businesses; providing PPE, window clings, resources, and marketing support for the health and safety of our community. · City of Stockton Small Business Relief Grant Program: Partnered with the City’s Economic Development Department over the past two years to administer the grant program by reviewing applications, distributing $3.15 million dollars, and completing tax reporting documentation; concluded in 2021.
· Stockton Brew Fest: First live event in two years was a great success at the new location of Weber Points Events Center.
· Stockton Experience Trails: Complemented the existing Savings Pass which included Stockton Taco Trail, the Stockton Arts Trail, and the San Joaquin County Farm Trail, all well received and successful campaigns.

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The primary goal of Visit Stockton is to increase hotel occupancy. As our community recovers from the pandemic, the hotel occupancy demand was up 14.4% and revenue up 29.8%. Lodging statistics also demonstrate positive economic impact that tourism and visitors have on our community, in 2021 the average hotel occupancy rate was 73.4% as compared to 64.7% in 2020. In addition, the following statistical trends from 2021 surpassed the 2019 milestones (pre-pandemic goals) demonstrating recovery with the reintroduction of leisure and business travel, opening of local attractions and stay at home orders lifted; Stockton’s economic impact shows:
· The average hotel occupancy for Stockton in 2021 was 73.4% · The 2021 Average Daily Rate (ADR) for Stockton hotels was $105.53 per night, which was an increase from 2020 at $93.02
· Overall hotel demand increased by 14.4% in 2021
· Stockton hotel revenue in 2021 was $80.6 million, increased from 2020’s revenue at $62.1 million
The 2022 Annual Service Plan addresses the proposed budget overview for the year, strategies, and objectives of Visit Stockton. A summary of the annual goals and strategies are outlined below:

Create a Destination-Driving Signature Event for Stockton · Aid in recovery efforts of downtown by highlighting Stockton’s assets with a focus on cultural foods, diverse entertainment, and local vendors.
· Create a revenue structure to support the community and ensures future success · Set the standard for Stockton events
Enhance Brand Awareness
· Highlight the people, places, and stories of Stockton with a podcast “This is Stockton” · Increase the reputation and visibility of Stockton with work of a public relations agency to increase media share of stories and mentions
· Expand video presence and increase social media presence and efficiency Support City Initiatives
· Create and execute an annual destination-driving event toward downtown recovery · Support program development with execution of an investor summit to increase awareness and investment into our economy
· Administer the Collide Arts Festival and Stockton Arts Week to benefit local creatives and the community
Visibility
· Evaluate the Stockton Resident Sentiment Survey results for a guideline for future awareness campaigns and events
· Introduce the new Stockton Experience Pass that elevates the evergreen offerings to support small business
· Embrace recovery with Visit Stockton presence at events and encourage development of staff.

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File #: 22-0227, Version: 1
The anticipated budget for 2022 amounts to $1,999,780.
2021 Total Revenue
TBID Assessment $1,600,000
Special Events, Co-ops & Other Program Revenue $99,780
Carry over from previous year $300,000
Total $1,999,780
The majority of the expenditures in 2022 are allocated as follows:
· Sales and Marketing - Total expenditure $1,677,340
· Administration and Operations - Total expenditure $242,440 · Contingency/Renewal - Total expenditure $80,000; 5% of the TBID Assessments The above percentages are consistent with the STBID Management District Plan that was adopted by the City Council on November 4, 2014. The 2022 Service Plan is consistent with the intent of the Tourism Business Improvement District Assessment.

The proposed Resolution summarizes the action items needed for approval.

FINANCIAL SUMMARY
The City will retain 3% of the collected STBID revenue amount (approx. $48,000) to offset the ongoing cost of processing and collecting the assessment. These funds are appropriated in the Maintenance District Fund, Business Development Division, TBID Program. There is no other direct financial impact to the City of Stockton with this action.

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Resolution No.

STOCKTON CITY COUNCIL
RESOLUTION APPROVING THE 2022 STOCKTON TOURISM BUSINESS IMPROVEMENT DISTRICT BUDGET AND SERVICE PLAN AND THE 2021 ANNUAL REPORT
In December 2010, the City Council established the formation of the Stockton Tourism Business Improvement District (“District”) to provide services to the District, including the promotion of Stockton as a business, conference, sports, and visitor destination; and
The District expired in 2015, but was renewed for an additional ten years, set to expire on December 31, 2025; and
City of Stockton (“City”) has contracted with the Stockton Convention and Visitors Bureau (“Visit Stockton”) to manage the District's funds and deliver the services; and The contract requires that Visit Stockton annually submit to the City for review, comment, and approval by the City Council, a report describing the District services, activities, and proposed budget for each year of operation; and The contract requires review and approval of the prior year’s activities as described in the 2021 Annual Report; and
The District serves as an important economic development tool to grow and enhance not only the tourism sector in Stockton, but a positive image of the community to visitors; now, therefore,

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

1. The City Council hereby approves the 2022 Annual Service Plan and Operating Budget, incorporated herein as Exhibits 1 and 3 respectively, in the amount of $1,999,780 and Annual Assessment of 4% fee per hotel room, per night, as proposed by the Stockton Convention and Visitors Bureau (Visit Stockton) for marketing and promotion of Stockton as a tourist, meeting, and event destination.

2. The City Council hereby approves the 2021 Annual Report for activities performed by Visit Stockton in 2021, incorporated herein as Exhibit 2.

3. The proposed amounts are in compliance with “Property and Business District Law of 1994” and the charge is levied without regard to property valuations. //
//
370

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 April 19, 2022 .

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

ELIZA R. GARZA, CMC
City Clerk of the City of Stockton
371
Visit Stockton Service Plan 2022 || 1
2022 ANNUAL SERVICE PLAN
Who We Are
Visit Stockton is the official
destination marketing organization
for Stockton, California and as such,
is charged with the promotion and
marketing of the City of Stockton
as a leisure travel, sports, events,
and meetings destination. Founded
in 1979 as a 501(c)6, non-profit
corporation, Visit Stockton is
dedicated to positively impacting
the local economy through its
programming and elevating
civic pride while highlighting the
Stockton community as a positive
place to work, live, and visit. Visit
Stockton is funded in partnership
with local hotel properties through
the Stockton Tourism Business
Improvement District.

Mission Statement
Visit Stockton is dedicated to
enhancing the region’s Quality of
Life by collaboratively leading the
promotion of our richly diverse
community and advocating for
initiatives that will enhance the
city’s Quality of Place.

Vision Statement
Stockton is widely respected as a
diverse and welcoming community,
providing unique and authentic
experiences and opportunities for all.

Our Organizational Values
Accountability • Have Fun
Excellent Service • Giving Back
Learn and Improve
General Overview
The current Stockton Tourism Business Improvement District (TBID) was established effective January 1, 2016 by the Stockton City Council and expires December 31, 2025. The current TBID assessment levies a 4% fee per hotel room, per night. The funds are used for the marketing and promotion of Stockton, targeted toward increasing overnight stays. The assessment is applied to all lodging establishments within the city limits of Stockton; at this time there are no proposed changes to the boundary of the district.

Included in this Annual Service Plan are the strategies and objectives of Visit Stockton for the year ending December 31, 2022.
2022 Budget Overview
The attached budget is in compliance with the percentage thresholds set forth in the Stockton Tourism Business Improvement District Management District Plan approved by City Council in December of 2014.

The 2022 Budget includes a carryover of $300,000 from 2021 and also reflects a 5% contingency fund allotment of $80,000 (5% of $1.6M) as per the TBID Management District Plan.
2022 Anticipated Revenue:
$1,999,780
($1,600,000 - TBID Revenue)
Sales & Marketing
$1,677,340
Administrative & Operations
$242,440
Average Daily Rate,
Hotel Occupancy, and
Hotel Revenue in 2021
were all above 2019
milestones.

TRENDS IN

STOCKTON

TOURISM
IN 2021
Overall hotel demand
was up 14.4%
Stockton hotel revenue
was up 29.8%
Average Hotel
Occupancy for
Stockton in 2021 was

73.4%, as compared
to 64.7% in 2020,
showing strong growth
in ADR and demand.

EXHIBIT 1 372
Visit Stockton Service Plan 2022 || 2
In addition to our demand and brand goals, Visit Stockton identifies the following as 2022 outcome measurements:

Overall Stockton Room Revenue • Sports and Group Events • Website Analytics Social Media Engagement Analytics • E- Mail Marketing Metrics • Overall Marketing Impressions Earned Media Impressions
2022 GOALS AND STRATEGIES
• Objective A: Highlight the assets and offerings of the community with a focus on cultural foods, diverse entertainment, priority for local vendors, and showcasing local organizations and creatives, in order to aid in the recovery efforts of downtown Stockton. • Objective B: Create a revenue structure that supports the community and ensures future success for the festival through sponsorships and volunteer-led support. • Objective C: Set the standard for events in Stockton, including visual appeal, elevated entertainment, economic awareness, and cleanliness.

GOAL: Create a Destination-Driving Signature Event for Stockton GOAL: Enhance Brand Awareness
• Objective A: Diversify our market share by creating the “This Is Stockton” podcast, highlighting the people, places, and stories of Stockton. • Objective B: Begin work with a public relations agency to increase the media share of Stockton stories and mentions, while increasing the reputation and visibility of Stockton, our events, and programs.
• Objective C: Expand our video presence, primarily on TikTok, including more “organic” content showcasing the characters and personality of Visit Stockton and our partners. • Objective D: Increase social media presence and efficiency by working with data providers and educational platforms.

Our first hosted live event in 2021, Stockton
Brew Fest welcomed 30 breweries and
1,100 guests at its new home at the Weber
Point Events Center. The event featured
live music, beer sampling, food trucks, an
artist market, yard games, and lots of fun
in the sun!
EXHIBIT 1 373
Visit Stockton Service Plan 2022 || 3
2022 GOALS AND STRATEGIES
• Objective A: Create and execute an annual destination-driving event as part of the City’s initiative towards downtown recovery with the support of federal funding and City support. • Objective B: Participate in workshops, case studies, and advisory roles for Stockton recovery initiatives.
• Objective C: Support with program development, marketing, branding, and the execution of a digital or in-person investor summit to increase awareness and investment into our economy. • Objective D: Administer the Collide Arts Festival artist workshop, sculptural, and merchant grants, as well as the Stockton Arts Week workshop grants to benefit our local creatives and the community.
• Objective A: Evaluate the final results of the Stockton Resident Sentiment Survey and use it as a guideline for future awareness campaigns for Visit Stockton programming and events. • Objective B: Introduce new Stockton Experience Passes that elevate the evergreen offerings in the community, help support small business and the economy, and create positive awareness. • Objective C: Continue work with user generated content and ambassador programs to increase the owned assets within the organization and to increase organic media presence. • Objective D: Encourage the development of Visit Stockton staff and the community through participation on non-profit boards, advisory committees, and civic engagement. • Objective E: Embrace reopening by increasing Visit Stockton’s presence at community events, whether through volunteer efforts, marketing, networking, and awareness opportunities.

GOAL: Support City Initiatives
GOAL: Visibility
Looking for additional information? A copy of the 2021 Visit Stockton Annual Report can be found online at visitstockton.us/annualreport21
Beautiful spaces are all around us, and
the Stockton Art Trail helps highlight
the artistic gems across the city. From
large-scale installations, sweeping painted
murals, to carved storm drain covers,
explore Stockton’s offerings for a chance to
claim an “I Love Stockton Arts” mug.

EXHIBIT 1 374
Visit Stockton Service Plan 2022 || 4

STOCKTON RESTAURANT WEEK (JANUARY
14-23)
For the 13th year, this promotion will be an economic
driver for local restaurants as Visit Stockton highlights the multi-course price-fixed menus.

ANNUAL TOURISM BREAKFAST (MARCH 16)
Visit Stockton will highlight the impact of tourism on
our community and celebrate those who work to aid
us in our mission at this 9th annual event.

FEAST AT THE FOX (MAY 6)
In its 3rd year, this farm to table fundraiser (in
partnership with the City of Stockton) will raise money for Delta College culinary students while highlighting
local agriculture and wine.

STOCKTON ARTS WEEK (MAY 6-15)
Artists, arts organizations, and community members
will come together to showcase their best during
the 6th year of this promotion that encourages
collaboration, education, and appreciation of
local artists.

STOCKTON FLAVOR FEST (MAY 14-15)
Visit Stockton will host the inaugural festival as part of the city’s downtown recovery efforts by highlighting
Stockton’s culture, cuisine, and community at Weber
Point Events Center.

COLLIDE ARTS FESTIVAL (MAY 14-15)
In its 3rd year, the City of Stockton, Stockton Arts
Commission and Visit Stockton will host this festival
within the footprint of the inaugural Stockton
Flavor Fest.

STOCKTON SPORTS FOUNDATION GOLF
TOURNAMENT (JUNE 3)
An inaugural fundraising event in support of the
Stockton Sports Foundation, increasing the visibility
and awareness of the foundation and how it increases
the visitor economy in Stockton.

STOCKTON BEER WEEK (SEPTEMBER 9-18)
This 10th annual celebration of beer culture will drive traffic to special events and limited-edition brews at
local bars, restaurants, and tap houses.

STOCKTON BREW FEST (SEPTEMBER 10)
In its new home in Downtown Stockton, this beer,
music, and food festival celebrates its 6th anniversary with a portion of the proceeds supporting the
Stockton Sports Foundation.

Hosted and produced events for 2022

COMMUNITY ENGAGEMENT
125 Bridge Place, 2nd Floor
Stockton, California
Call us at 877.778.6258
Office Hours: 8AM to 4PM, Monday - Friday
The objective of an ambassador program
is to make a destination the leader in
hospitality in their community, where
groups and guests know they will find
friendly and knowledgeable front-line staff, volunteers, and residents.

This is often carried out through a certification program (including prereadings and an in-person class), ongoing educational opportunities hosted through the organization, and other milestones.

Visit Stockton is currently evaluating the future of our Stockton Ambassador program and how it can best serve our community, visitors, and economy. An objective of the future program will be to expand the opportunities and visibility of our current ambassadors, including their presence as volunteers and leaders at Visit Stockton and other community events.

We look forward to enhancing the programming and hospitality leadership in our community.

Board of Directors
George Kaplanis, CTA
President
Omega Hospitality
Wes Yourth, CTA
Vice President
University of the Pacific
Susan Obert, CTA
Treasurer, Haggin Museum
Alex Munro, CTA
Hilton Stockton
Rhona Miles, CTA
University Plaza
Waterfront Hotel
Isadora Harness, CTA
Marriott Properties
Jai Patel
Red Roof Inn
Christina Fugazi
Council Appointee
Councilmember, District 5,
City of Stockton
Meet the Team
Wes Rhea, CTA

CDME, CHIA
Chief Executive Officer
Christa Griffith, CTA
Office Manager &
CTA Program Manager
Rebecca Scharmann, CTA
Director of Sports & Tourism
Development
Nicholas Ramirez
Events Services Manager
Amy Alpers, CTA
Director of Marketing &
Communications
Anthony Esteves, CTA
Social Media Manager
Jesse Salazar, CTA
Video Production Manager
Wesley Sosa
Graphic Designer &
Brand Manager
Diana Nuño
Events & Community
Engagement Manager
EXHIBIT 1 375
ANNUAL
REPORT
EXHIBIT 2 376

A LETTER FROM OUR CEO
WELCOME TO 2022!
Partners, Stakeholders and Community Members,
As we near the second anniversary of the beginning of the pandemic, we continue to be amazed by the tenacity and persistence of our hospitality and local business community through what continues to be uncertain times. 2021 brought with it much optimism and encouraging signs, but as the year came to a close, we soon realized that more challenges lie ahead. We are much better at navigating the unknown, but we are fatigued. Our community has become more resourceful and closer in many ways, as organizations across all spectrums continue to partner and work together for the betterment of Stockton.

In Stockton, our hotel community has seen one of the best years ever, but normal is still out of sight. While 2021 saw most months with occupancy and average rates above those in 2019, the entire hospitality community is still challenged with labor shortages, increasing costs, and supply chain issues. Many have not returned to offering the same level of service and amenities from before the pandemic. The continued loss of group and corporate business has been replaced by a robust leisure travel market and our youth and amateur sports market. As groups and companies adapt to the realization that the virus is here to stay, travel and conferences are returning safely. We are, again, optimistic about the year ahead.

Our team continues to work hard on behalf of the citizens of Stockton and the hospitality and small business community. As the year ended, I felt a sense of excitement as the team we have built and the organizational culture at Visit Stockton has never felt so solid. We are laser focused on supporting each other, our community, and our mission to this city. We also are thrilled to lead the efforts to return a signature food festival to Downtown Stockton with the Stockton Flavor Fest, May 14 & 15.

Some of our highlights from 2021 include:
•Wrapping up the Stockton Healthy Pledge in June, after a year of serving over 300 businesses with resources and PPE. •City of Stockton Small Business Relief Grant Program concluded after distributing $3.15 million dollars in funds over two years to our local small businesses through a partnership with the City of Stockton. •Our first live event in two years, Stockton Brew Fest, was a great success at our new location, the Weber Point Events Center. •The Stockton Experience Trails, including the Stockton Taco Trail, the Stockton Arts Trail, and the San Joaquin County Farm Trail were all well received and successful, and complement our existing Savings Pass well. •We are learning a lot from the results of our Stockton Resident Sentiment Survey, including insights into our community shared values, and feedback from our citizens about festivals, events and priorities moving forward. •Continuing to support our small business community through our efforts coordinating Stockton Small Business Week and the Virtual Downtown Stockton Investor Summit, both in partnership with the City of Stockton Economic Development Department; our hospitality job board; and the work to support our local farm stands and markets and the Stockton airport through the San Joaquin County Tourism Recovery Grant.

While we do not know everything 2022 will bring, we are hopeful that the year ahead is brighter and safer than the one before. The team at Visit Stockton is proud to be a part of, and serve, the Stockton community. We wish each of you a safe and healthy 2022.

Regards,
Wes Rhea, CEO

BOARD OF DIRECTORS
George Kaplanis, CTA
President
Omega Hospitality
Wes Yourth, CTA
Vice President
University of the Pacific
Susan Obert, CTA
Treasurer, Haggin Museum
Alex Munro, CTA
Hilton Stockton
Rhona Miles, CTA
University Plaza
Waterfront Hotel
Isadora Harness, CTA
Marriott Properties
Jai Patel
Red Roof Inn
Christina Fugazi
Council Appointee
Councilmember, District 5,
City of Stockton

MEET THE TEAM
Wes Rhea, CTA

THE TOURISM EFFECT 2021
2021 HOTEL REVENUE GENERATED
FROM OVERNIGHT VISITS:

OF STOCKTON HOTEL ROOMS WERE SOLD EACH NIGHT IN 2021.
2021 AVERAGE HOTEL OCCUPANCY
2021 DEMAND (ROOM NIGHTS)
2020 REVENUE:
2019 REVENUE:
2018 REVENUE:
$62,161,172
$69,423,227
$66,351,097
2021 AVERAGE DAILY RATE (IN DOLLARS)

LODGING STATS

RESIDENT SENTIMENT SURVEY
In partnership with University of the Pacific marketing students, Visit Stockton conducted a resident sentiment survey to identify the community shared value of Visit Stockton, including the awareness of the organization, our efforts, and local programming. This was an opportunity for residents to share what they would like to see from our organization, and for us to determine their understanding of local tourism and the positive impact tourists make in our community. The survey was deployed through August 31, 2021 and our goal was to collect 1,000 responses from zip codes across the city. We did reach our goal of collecting over 1,000 completed survey results, and over 2,000 partially competed. Those results are currently being reviewed and analyzed by the University of the Pacific Marketing Department, and we expect to have completed reporting early 2022.

STOCKTON AMBASSADOR PROGRAM
AS OF 12/31/2021

WE HAVE CERTIFIED
733
STOCKTON CTAS!
The Stockton Ambassador Program is a
multifaceted program that serves to increase
tourism by inspiring front-line employees and
community members to turn every visitor
encounter into a positive experience by
highlighting the quality of life in our city.

IN 2021...
19 CTAS

WERE CERTIFIED
2 CTA EVENTS 2 WERE HELD

CERTIFICATION

CLASSES

WERE HELD
Lodging Data Source: Smith Travel Research (STR), December 2021. 668k
764k
746k
765k
2018
2019
2020
2021
2018
2019
2020 93.02
105.53

88.88 90.69
2021

73.4%
$80,676,104
EXHIBIT 2 378

RECOVERY OVER EVERYTHING
Destination Marketing Organizations bring valuable visitor dollars to our community which in-turn improves and enhances the quality of life for the residents in our community. For Visit Stockton it is not only the place in which we work, but also where we live. Stockton is a community filled with loved ones, friends, families, and life long memories. Our priority in 2021 was to support our community and our partners during these unprecedented times. Read on to learn more about our efforts to support our community during the pandemic:

STOCKTON RESTAURANT WEEK
In order to comply with state mandates and
support our local restaurant community,
Stockton Restaurant Week 2021 shifted to a
focus on take-out and waived participation
fees. With the help of the Dine Pass, a digital
mobile passport program which allowed users
to check-in at restaurants to win prizes, the
event saw great success and we were grateful
to provide support to our community during
such a difficult time.

STOCKTON TACO TRAIL
Launched as a means of
economic recovery for
our restaurants and a
way to highlight the diversity of cuisine in our
community, the Stockton Taco Trail launched
in April 2021. The mobile passport saw nearly
3,000 sign-ups and 2,200 restaurant checkins in 2021.

SMALL BUSINESS RECOVERY GRANTS
The team assisted the City of Stockton with
processing federally funded small business
grants to local recipients. At the conclusion of
the program, our team processed over three
million dollars in grant funds directly to the
Stockton small business community.

STOCKTON SMALL BUSINESS WEEK
Our office was contracted by the City of
Stockton to coordinate the marketing and
programming of Stockton Small Business
Week in May. The event, through online digital
trainings, mixers, and toolkits, provided
support to our business community as they
navigated through their reopening process.

VIRTUAL DOWNTOWN STOCKTON

INVESTOR SUMMIT
For the second year, the City of Stockton
contracted our office to coordinate and host
their Virtual Downtown Stockton Investor
Summit. With nearly 200 registrants, the
half-day program featured presentations
from City leadership, Economic Development
professionals, and the business community
and highlighted why investors should choose
Downtown Stockton for their next project.

HOSPITALITY JOB BOARD
As a response to the ongoing struggle of
staffing shortages, our office created the
Hospitality Job Board. We reached out to
our hotel, restaurant, and attraction partners
and gave them the tools to post their open
positions on our compiled listing platform,
and we promoted the job board on our
website and social media pages.

SAN JOAQUIN COUNTY TOURISM

RECOVERY GRANT
Our office applied for and received a $80,526
grant from the San Joaquin County Tourism
Recovery Grant Fund. Our grant focused
on two main areas, Stockton Metropolitain
Airport promotion and the revamping of the
San Joaquin County Farm Stands and Markets
Guide. In coordination with the guide, we also
launched our third experience pass, the San
Joaquin County Farm Trail.

BACK IN ACTION
Live events are back, and Stockton was ready.
2021 welcomed the optimism we had been
hoping for, and the economic recovery seen
from reopening was welcomed with open
arms. From disc golf championships to beer
festivals, there was no shortage of things to
do in Stockton.
•OTB Championships In May the Open Disc
Golf Pro and Amateur Tours were hosted
at Swenson Park Golf Course. Our office
was integral in the soliciting, planning, and
executing of the multi-weekend event, which
welcomed dozens of athletes from across the
nation and hundreds of spectators. We are
proud of the success brought from the event
and are excited to welcome it back in 2022.
•Stockton Brew Fest: Our first hosted live
event in 2021, Stockton Brew Fest welcomed
30 breweries and 1,100 guests at its new
home at the Weber Point Events Center. The
event featured live music, beer sampling,
food trucks, an artist market, yard games,
and lots of fun in the sun!
•Stockton Flavor Fest: In coordination with
the City of Stockton, our office has started
the planning of the inaugural Stockton
Flavor Fest, hosted at the Weber Point
Events Center May 14 & 15, 2022. We have
contracted with Goodstock Productions as
our event management team, and together
we are creating the next great destination
driving festival for the economic prosperity
of our community.

STOCKTON HEALTHY PLEDGE
In June, the Stockton Healthy Pledge program was concluded after 14 months of supporting small businesses and their recovery from the Covid 19 pandemic. Businesses signed on to the pledge, affirming their commitment to creating a clean, safe, and healthy environment for residents and visitors. With the help of grant funding from the City of Stockton, Visit Stockton provided 333 businesses with marketing support, PPE, hand sanitizer stands, posters, window clings, floor decals, and more.

IN 2021 WE
DISTRIBUTED: 69,510
MASKS
31,600
GLOVES
1,266 BOTTLES

HAND SANITIZERS
131 BOTTLES

DISINFECTANT
1,367 SOCIAL

DISTANCING

FLOOR DECALS
$80,526 grant received from San
Joaquin County Tourism Recovery Fund
EXHIBIT 2 379

DIGITAL MARKETING
VISITSTOCKTON.ORG
2021 SNAPSHOT

SOCIAL MEDIA

DIGITAL MARKETING UPDATE
TOP 10 PAGES OF 2021

1. Event: Stockton Asparagus Festival

2. Events

3. Stockton Taco Trail

4. Homepage

5. Blog: Top Things to do in Stockton
According to Trip Advisor

6. Stockton Restaurant Week

7. Event: Stockton Con

8. Annual Events Listings

9. Pixie Woods Amusement Park

10. Free Things to do in Stockton
871,403
VISITS
664,414
USERS
1,386,249

PAGEVIEWS

19.82%

20.80%

25.44%
UP
19,570,576

TOTAL IMPRESSIONS
16,100,355 IMPRESSIONS
1,544,524 ENGAGEMENT

YOUTUBE
VIDEO
STATS:

PAID SOCIAL MEDIA PROMOTIONS:
1,670,989

TOTAL ENGAGEMENT
151.3K
VIEWS
262.1K

IMPRESSIONS
1,627

WATCH TIME
(in hours)
SOCIAL MEDIA FOLLOWERS:

EXPERIENCE PASSES
Visit Stockton began working with experience pass producer Bandwango in 2015 by launching our inaugural Stockton Savings Pass.

The success of the pass, which provides discounts and coupons across the city for local businesses, spurred us into creating more passes for visitors and residents alike. Our mobile passports are used as tools for visitors and residents alike to incentivize getting out and exploring the city. An added plus- users might even find a new favorite shop or restaurant along the way! Below is a highlight of the passes launched in 2021:
•Stockton Taco Trail - The Stockton Taco Trail
features over 50 restaurants, taquerias, and
trucks participating along the tasty trail, all
while celebrating the diversity of cuisine in our
community. Participants are rewarded for checkins with stickers, t-shirts, and trucker hats. •Stockton Art Trail - Beautiful spaces are all
around us, and the Stockton Art Trail helps
highlight the artistic gems across the city.

From large-scale installations, sweeping
painted murals, to carved storm drain covers,
explore Stockton’s offerings for a chance to
claim an “I Love Stockton Arts” mug.
•San Joaquin County Farm Trail – Farmers’
Markets, roadside stands, estate distilleries,
and community gardens are just a sample
of the locally-grown experiences to explore
along the San Joaquin County Farm Trail.

Check in to win an exclusive “Greatness
Grows Here” tote.

This data includes Social, Web, Display, and Connected TV which promotes videos, blog content, special events, initiatives, and landing pages.

58.3K 22.6K 3.5K 1.1K 795
Visit Stockton increased our social media presence by activating both Pinterest and TikTok in 2021. We worked with a digital marketing agency in Q4 to amplify our Pinterest program, and in Q2 we started our TikTok page. We look forward to continuing to invest in TikTok as video is a dominant marketing platform for 2022.

We were also able to increase our digital marketing budget by $80,000 due to the San Joaquin County Tourism Recovery Grant program, increasing CTV and display campaigns.

UP
UP
EXHIBIT 2 380

WHO WE ARE
Visit Stockton is the official destination
marketing organization for Stockton, California
and as such, is charged with the promotion and
marketing of the City of Stockton as a leisure
travel, sports, events, and meetings destination.

Founded in 1979 as a 501(c)6, non-profit
corporation, Visit Stockton is dedicated to
positively impacting the local economy through
its programming and elevating civic pride
while highlighting the Stockton community as
a positive place to work, live, and visit. Visit
Stockton is funded in partnership with local
hotel properties through the Stockton Tourism
Business Improvement District.

Mission Statement
Visit Stockton is dedicated to enhancing the
region’s Quality of Life by collaboratively
leading the promotion of our richly diverse
community and advocating for initiatives that
will enhance the city’s Quality of Place.

Vision Statement
Stockton is widely respected as a diverse and
welcoming community, providing unique and
authentic experiences and opportunities for all.

Our Organizational Values
ACCOUNTABILITY • HAVE FUN
EXCELLENT SERVICE • GIVING BACK

LEARN AND IMPROVE
EXHIBIT 2 381
Total
Income
4000 TBID Assessment $1,600,000.00
4015 Ambassador/Volunteer Registration/Events $5,800.00 4020 Co-op/Misc. Revenue $500.00
4030 Merchandise $6,000.00
4045 Feast at the Fox $42,000.00
4046 Stockton Brew Fest $45,000.00
4050 Interest Income $480.00
9000 Fund Balance from Previous Year $300,000.00
Total Income $1,999,780.00
Expenses
Administration & Operations $228,040.00
Payroll Processing Expenses $14,400.00
Sales & Marketing
7010 Advertising/Marketing/Research $520,000.00
7015 Public Relations $18,000.00
7025 Sports/Event Services and Supplies $13,000.00
7030 Trade Show Expenses $36,000.00
7035 Sports & Events Sponsorships $88,500.00
7040 Merchandise/Promotional Items $13,800.00
7050 Website/Hosting $32,000.00
7055 Volunteer/Ambassador Program $8,750.00
7060 Printing $24,600.00
7070 Industry Dues and Subscriptions $18,250.00
7075 Feast at the Fox Expenses $42,000.00
7076 Stockton Brew Fest Expenses $40,000.00
7080 Marketing Software/Subsciption Fees $40,000.00
7090 Education/Conferences/Networking Events $42,000.00 7100 Hospitality & Entertainment - CEO $6,000.00
7150 Mileage & Hospitality - Sales/Mktg $6,000.00
Salaries & Benefits - Sales & Marketing $728,440.00
Total Sales & Marketing $1,677,340.00
Total Expenses $1,919,780.00
Net Operating Income $80,000.00
Other Expenses
8000 TBID Contingency & Renewal - 5% $80,000.00
Total Other Expenses $80,000.00
Net Other Income -$80,000.00
Net Income $0.00
Visit Stockton
Budget Overview
January - December 2022
EXHIBIT 3 382
L

HIGHLIGHTS FOR THE YEAR AHEAD
City Council Update
April 19, 2022
Wes Rhea, CEO
Agenda Item 15.1
383
LODGING RECOVERY ‐ DEMAND
384
LODGING RECOVERY ‐ RATE
385

TRAVEL RELATED SPENDING
December 2019: $2,679,796 vs. December 2021: $3,061,640 386
L

ENHANCE BRAND AWARENESS
o Engaging a Marketing and PR Agency focused on destination visibility, reputation management, and local business support. Will include the development of video content focused on the diverse and interesting people of Stockton.
o Launch a positive, destination focused podcast highlighting local people, businesses, and attractions.
o Continue to grow our video presence, including on TikTok, with more “organic” content showcasing the characters and personality ofStockton and our partners. o Increase social media presence and efficiency by working with data providers and educational platforms.
387
o Be an active participant in the City of Stockton’s recovery and Economic Development efforts.
o Provide support with program development, marketing, branding, and the execution of a digital or in‐person investor summit to increase awareness and investment into our economy.
o Administer the Collide Arts Festival artist workshops, sculptural, and merchant grants, as well as the Stockton Arts Week workshop grants to benefit our local creatives and the community.
o Create and execute an annual destination‐driving event as part of the City’s initiative towards downtown recovery with the support of federal funding and City support.

SUPPORT CITY INITIATIVES
388
o Highlight the assets and offerings of the community with a focus on cultural foods, diverse entertainment, priority for local vendors, andshowcasing local organizations and creatives, in order to aid in the recovery efforts of downtown Stockton.
o Utilize a philanthropic model that supports the community and ensures future success for the festival through sponsorships and volunteer‐led support.
o Set the standard for events in Stockton, including visual appeal, elevated entertainment, economic awareness, and cleanliness.

CREATE A DESTINATION‐DRIVING

SIGNATURE EVENT FOR STOCKTON
389
Setting the Standard for Stockton Festivals:
• Celebrating Stockton’s diverse cultures through food
• Bringing residents and visitors to Downtown Stockton
• Signature look and feel throughout
• Family friendly and affordable
• Community Focused: 100% Non‐Profit
• Sustainable and Green
• Anchor event as part of a 10+ day downtown focus
Our goal is to create Stockton’s next big festival!
390

VISIBILITY
o Evaluate the results of the Stockton Resident Sentiment Survey and use it as a guideline for future campaigns, and for Visit Stockton programming and events.
o Embrace reopening by increasing Visit Stockton’s presence at community events, whether through volunteer efforts, marketing, networking, and awareness opportunities.
o Introduce new Stockton Experience Passes that elevate the evergreen offerings in the community, help support small business and the economy, and create positive awareness.
391
392
City of Stockton
Legislation Text
File #: 22-0289, Version: 1
AUTHORIZE AWARD OF 5-YEAR CONTRACTS FOR PROFESSIONAL SERVICES WITH PFM ASSET MANAGEMENT LLC AND CHANDLER ASSET MANAGEMENT SERVICES, INC., TO

PROVIDE INVESTMENT MANAGEMENT SERVICES

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

1. Approving findings that support an exception to the competitive bidding requirement pursuant to Stockton Municipal Code section 3.68.070(A)(3) for negotiated contracts following solicitation of competitive proposals;

2. Awarding 5-year Professional Services Contracts to PFM Asset Management LLC and Chandler Asset Management Services, Inc., to provide investment management services at a rate of 3.80 basis points (0.038%) on the monthly average portfolio balance; and

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

Summary
On October 20, 2021, the City released a Request for Proposals (RFP) for investment management services. PFM Asset Management LLC (PFM) and Chandler Asset Management Services, Inc. (Chandler), ranked as the most responsive bidders to the scope of the RFP. Staff recommends entering into 5-year contracts with both firms to manage the City’s long-term investment portfolio, which is currently valued at approximately $600 million.

During the competitive procurement process, both Chandler and PFM submitted superior investment management proposals and performed extremely well in their respective presentations. With the dynamic market conditions, inflation expectations, change in the federal monetary policy and future interest rate expectations, staff sees tremendous value in having two investment managers managing the City’s long-term portfolio, in areas such as analysis of market conditions, economic outlook, and investment performance comparison.

Furthermore, through this competitive procurement, staff was able to negotiate the same pricing for both investment managers - a savings of more than 35% compared to the prior contract with PFM.

The annual cost of 0.038% for investment management services will be based on the monthly average balance of the City’s reserve investment portfolio. Under the proposed contract, PFM and Chandler will provide all of the services and investment capabilities the City currently receives and add new investment strategies to enhance the overall returns on City’s investment portfolio. The contracted investment managers will adhere to the City’s investment policy and all State and Federal City of Stockton Page 1 of 3 Printed on 4/12/2022
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393
File #: 22-0289, Version: 1
laws as they pertain to investing of public funds.

DISCUSSION
Background
The City first moved to external investment portfolio management in 2007 when Chandler was selected to provide investment management services to the City. In 2017, PFM was selected to take over management of the holdings. PFM has been providing investment management services to the City since July 1, 2017, and the contract is set to expire on June 30, 2022.

In the last five years, the City’s reserve portfolio has increased substantially, rising by about 60% or over $200 million dollars (from $375 million to $600 million). This increase in the portfolio size is primarily attributable to an increase in the utility rates for long-term system improvements contributing to an accumulation of invested cash.

The ever-changing nature of investment markets, outlook on the financial markets based on domestic monetary policy, and current geo-political uncertainty, when coupled with the strict governing guidelines for the investment of public funds, makes recognizing and adapting to change important factors in portfolio management. The City requires utilization of full-service investment management firms with the resources to formulate new investment strategies to manage risk and capitalize on market opportunities in a timely, reliable and professional manner.

Present Situation
On October 20, 2021, the City released an RFP for investment management services. The objective of the RFP was to ensure a fair, competitive procurement process to attract high-quality investment management services and identify a firm capable of overseeing the City’s portfolio in accordance with the City’s investment policy with a proven ability to make strategic changes to optimize investment performance relative to benchmarks.

The City received six responses from interested investment management firms. All six vendors met the minimum qualifications, and the City invited the four top-ranked vendors to be interviewed.

Interview performance was ranked based on the quality of service, overall presentation, review of the City’s current portfolio and holdings, new investment strategies to optimize returns, and pricing.

The City’s review team determined, based on the above interview criteria, that PFM and Chandler were the best fit to provide quality investment management services at a competitive cost for the City.

Some key factors in the proposals include:

1. Experience: Both PFM and Chandler have over 34 years of public sector experience and assets managed by seasoned investment portfolio managers.

2. Assets Under Management: Both PFM and Chandler oversee in excess of $20 billion in assets for various California public agencies, with both firms managing investment portfolios in excess of $250 million for multiple governmental agencies.

City of Stockton Page 2 of 3 Printed on 4/12/2022
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File #: 22-0289, Version: 1

3. Investment Approach: Both firms thoroughly reviewed the City’s investment portfolio and made several recommendations in their respective proposals to realign the City’s current portfolio to capitalize on current market opportunities. These changes will take advantage of the full range of investment sectors permitted by the City’s investment policy.

4. Cash Flow Analysis: Both firms will assist in analyzing and recommending options for how to best align the investment of unused cash to achieve earnings while still being able to meet liquidity needs of the City.

With the dynamic market conditions, inflation expectations, change in federal monetary policy and future interest rate expectations, staff sees tremendous value in having two investment managers managing City’s long-term portfolio. Furthermore, through this competitive procurement, staff was able to negotiate the same pricing for both investment managers - a savings of more than 35% compared to the prior contract with PFM, which was based on a tiered structure of 0.06% on the first $100 million, and 0.05% above $100 million. The economies of scale with the large increase in assets managed is primarily responsible for the pricing achieved. The tiered pricing resulted in

0.05167% as opposed to the 0.038% under this proposed contract.

With Council approval, the City Manager will execute 5-year contracts with PFM Asset Management LLC and Chandler Asset Management Services, Inc.

FINANCIAL SUMMARY
If approved, PFM and Chandler will manage the long-term (also known as reserve) portion of the City’s investment portfolio and charge a management fee of 0.038% based on average monthly reserve portfolio balances managed by each firm. With the negotiated lower fees, the City is anticipated to save approximately $80,000 per year compared to the current PFM contract tiered fee of 0.05167%. The City’s investment portfolio is divided into short- and long-term portions, which together back the cash holdings of all City funds.

Annual contract costs will be based on the portfolio size and will be more than offset by investment returns generated though the reserve portfolio. In continuing to have the reserve portfolio managed, the City obtains teams of people dedicated to ensuring that as market conditions change and impact the value of securities held or proposed to be held, the City is able to take advantage of these changes, while also avoiding internal staffing costs that would be considerably higher to achieve the protection provided by external management.

This contract will be funded from the Pooled Investments account 0010-000-630006-100-198-00-00- 000-000-. The fees will be passed on to all City funds as part of the investment allocation.

Attachment A - Professional Services Agreement with PFM Asset Management LLC Attachment B - Professional Services Agreement with Chandler Asset Management Inc.

City of Stockton Page 3 of 3 Printed on 4/12/2022
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Attachment A
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Chandler Asset Management, Inc.
03/24/2022
Nicole Dragoo, President
6225 Lusk Boulevard, San Diego, CA 92121
Attachment B 438
Attachment B 439
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Attachment B 460

AWARD OF CONTRACTS FOR

INVESTMENT MANAGEMENT SERVICES
City Council Meeting
Date: April 19, 2022
Item 15.2
1 461
Investment Manager Introductions
Monique Spyke – Managing Director, PFM Asset ManagementMonique Spyke has been with PFM Asset Management for close to 20 years helping local government with development/implementation of investment strategies and management of public funds. She holds a B.A. in Economics and African-American Studies through Smith College.Carlos Oblites – Senior Portfolio Strategist, Chandler Asset ManagementCarlos has 26 years of investment and financial experience, focused largely on managing fixed income strategies for governmental and institutional non-profit clients. Carlos holds a Bachelor of Arts degree in History from the University of California, Santa Barbara, and a Master’s degree in Business Administration from San Francisco State University. 2 462
Background
• The City transitioned to external professional management of its investment pool in 2007 and has utilized both Chandler and PFMs expertise in the past 15 years. • PFM Asset Management provided the City’s investment management services since 2017. • The dynamic nature of investment markets and strict governing guidelines for public funds make recognizing and adapting to change an important factor in portfolio management. • The City requires a full-service investment management firm with the resources to formulate new investment strategies to hedge against risk and capitalize on market opportunities on City’s behalf. • The current contract is set to expire June 30, 2022.
3 463
Detailed Description of City’s portfolio
• The City’s Pooled Cash Portfolio consists of:• Reserve Portfolio, which includes longer-term securities that are invested to take advantage of rates offered for maturities out to five years • Short term holdings which are used to manage the
liquidity needs of the City that include: LAIF, CAMP, Bank of the West (BoW) accounts 4 464
City’s Investment Policy & State Code
• Professional management of the City’s
investment portfolios enables us to craftinvestment strategies to mitigate marketrisks, achieve diversification, and maintainreturns • Alleviate risk though the following:
• Safety: Diversification & Credit Quality• Liquidity: Duration & Interest Rate Risk• Yield: Time Horizon & Yield Curve 5 465
Selection Process
• The City released a Request for Proposals for investment management services in October 2021, with a submission deadline of December 9, 2021. • The City received 8 eligible proposals for investment management services, and these proposals were reviewed and scored. The top three candidates were then interviewed. • This process ensured a fair and competitive procurement for these services. • The City’s selection committee reached unanimous consensus to recommend PFM Asset Management LLC and Chandler Asset Management to provide investment management services. 6 466
Multi-manager Strategy for City’s Portfolio
• Diversity of thought, access to market research/information & performance comparison
• Over 35 years of experience in management of public funds • Dedicated and seasoned portfolio managers for City’s investment portfolio• Ongoing reevaluation of City’s cash flow structure• Realignment of City’s liquid and reserve portfolios to enhance returns• Detailed reporting, statements and online access to all information 7 467
Vendor Fee Proposal
• Currently, the City’s annual contract cost for investment management services is based on a tiered structure: 0.06% for the first $100 million, and 0.05% for balances over this amount – which amounts to an annual average of 0.052% or approximately $305,000. • With this procurement, City staff negotiated a much more favorable pricing of

0.038%, irrespective of the portfolio size, with both investment managers. The City’s new annual contract cost is anticipated to be around $225,000 – generating approximately $80,000 in annual savings. 8 468
Recommendations
• Authorize the City Manager to execute 5-year contracts with PFM Asset Management LLC and Chandler Asset Management to provide investment management services. 9 469
City of Stockton
Legislation Text
File #: 22-0373, Version: 1

ADOPT A RESOLUTION TO ACCEPT AND APPROPRIATE FUNDING FROM THE CALIFORNIA

STATE WATER RESOURCES CONTROL BOARD WATER AND WASTEWATER ARREARAGE PAYMENT PROGRAM; APPROVE THE ALLOCATION OF FUNDS AND APPROVE A WAIVER OF

ELIGIBLE CUSTOMER LATE FEES

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

1. Accept and appropriate funds from the California State Water Resources Control Board for the Water and Wastewater Arrearage Payment Program in an amount up to $2,253,527.34.

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

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

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

Summary
The California State Water Resources Control Board (State Board) is administering the California Water and Wastewater Arrearage Payment Program (Program). The Program offers community water and wastewater systems up to $985 million in Federal American Rescue Plan Act (ARPA) funds to provide financial relief for residential and commercial wastewater bill accounts experiencing financial hardships due to the COVID-19 pandemic.

In March 2022, the City of Stockton Municipal Utilities Department (MUD) applied for the Program to credit eligible past-due wastewater utility bills for more than 11,348 City of Stockton (City) residential and 394 commercial wastewater utility accounts. The Program requires the City to credit the wastewater accounts only within the MUD wastewater service area of eligible residential and commercial wastewater customers within 60 days of receiving funds. To qualify, the past-due wastewater utility bills must have accrued during the COVID-19 pandemic relief period established by the State Board between March 4, 2020, and June 15, 2021. Eligible residential and commercial customers do not need to apply for Program funds. Program funds will be applied as a credit to the wastewater utility bill of qualifying accounts.

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File #: 22-0373, Version: 1
Staff recommends the City Council adopt a resolution to authorize the acceptance, appropriation, and allocation of funding to credit eligible past-due wastewater utility bills in an amount up to $2,253,527.34 and approve a waiver of customer late payment fees eligible under the Program.

DISCUSSION
Background
In July 2021, the Governor signed Assembly Bill 148, allocating $985 million in Federal ARPA funds to the Water and Wastewater Arrearage Payment Program, administered by the State Board. The Program provides community wastewater systems, like the City, the opportunity to apply for funding for past-due wastewater bills for residential and commercial accounts.

Funds are intended to support Stockton residents and commercial businesses experiencing financial hardships due to the COVID-19 pandemic. The California Health and Safety Code defines “past-due bills” as customer wastewater bills unpaid for 60 days or more. The MUD utilized utility billing records to determine eligible accounts in accordance with the Program guidelines. The Program requires the City to allocate payments as wastewater bill credits to eligible customers to help address past-due bills incurred during the COVID-19 pandemic bill relief period. To be eligible for the Program, pastdue wastewater bills for residential and commercial customers must have accrued during the funding period between March 4, 2020, and June 15, 2021.

In March 2022, the Municipal Utilities and Administrative Services Departments developed information, completed the application, and applied for a total of $2,253,527.34 in Program funding.

This included 11,348 residential ($2,033,089.92) and 394 commercial ($154,800.71) accounts eligible to receive a credit for past-due wastewater utility charges accrued during the bill relief period. The City may expend up to 3% ($65,636.71) for administrative costs incurred to apply or comply with Program requirements.

Present Situation
The Program application was submitted March 31, 2022. The Program requires the City to credit the wastewater accounts within the MUD wastewater service area of eligible residential, commercial and institutional wastewater customers within 60 days of receiving funds.

Upon Council approval, the City’s Administrative Services Department (ASD) will issue a credit to eligible accounts for past-due wastewater bills accrued between March 4, 2020, and June 15, 2021.

If the wastewater bill has already been paid under the Rental Assistance Program, any duplication of credit will be mitigated when applying the credit manually. Credit would only be applied to match the remaining arrearage balance due to each account. Eligible residential and commercial accounts, including active and inactive accounts, and accounts that have payment plans or payment arrangements will be credited automatically. The City must remit any funds not credited to customers back to the State Water Board within six months of receiving payment.

In accordance with Program guidelines, eligible customers will be mailed a Notice of Credit to Wastewater Bill (Notice) that includes the following:

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File #: 22-0373, Version: 1

1. The amount credited to their wastewater utility account,

2. Information about the Program funding sources, and

3. Instructions to contact the City with questions, to set up a payment plan, or to appeal or contest utility bill charges.

The Notice must include other available or future financial assistance programs to help pay utility bills accrued outside the Program bill relief period.

Program funds will cover all eligible wastewater bill debt accrued during the pandemic relief period.

Eligible residential and commercial customers do not need to apply for Program funds. Qualifying accounts will receive a credit applied to the wastewater utility bill. After the Program credit has been applied to the accounts of qualifying customers, those who have additional utility debt accrued outside the eligibility period between March 4, 2020, and June 15, 2021, have 30days to enroll in a payment plan as required by the Program. The Program also requires the City to waive all late fees for qualifying wastewater arrearages.

The City must provide certification to the State Water Board within six months of receiving funds that, except for authorized administrative costs up to three percent, or up to $1 million, whichever is less, Program funds were applied as credits to eligible customer bills to offset COVID-19 arrearages.

It is recommended that the City Council adopt a resolution to authorize the acceptance, appropriation, and allocation of funding in an amount up to $2,253,527.34 and approve a waiver of customer late payment fees eligible under the Program.

FINANCIAL SUMMARY
The City may expend up to 3% ($65,636.71) for administrative costs incurred to apply or comply with Program requirements. System costs to apply for funds and comply with Program requirements must be documented and reported to the State Board.

The allocation of the California State Water Resources Control Board Water and Wastewater Arrearage Payment Program funds in an amount up to $2,253,527.34 will be appropriated in the Wastewater Utility Federal Grant account (0000-000-430101-600-603-00-00-000-000).

The estimated unpaid late payment fees and penalties eligible for the Program is anticipated to be under $250,000 and can be sustained by the Wastewater Fund.

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

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Resolution No.

STOCKTON CITY COUNCIL

RESOLUTION TO ACCEPT AND APPROPRIATE FUNDING FROM THE CALIFORNIA

STATE WATER RESOURCES CONTROL BOARD WATER AND WASTEWATER ARREARAGE PAYMENT PROGRAM IN AN AMOUNT UP TO $2,253,527.34; TO APPROVE THE ALLOCATION OF FUNDS; AND TO APPROVE A WAIVER OF

ELIGIBLE CUSTOMER LATE PAYMENT FEES
On July 22, 2021, the Governor signed California Assembly Bill 148 allocating $985 million in federal American Rescue Plan Act of 2021 (Public Law No. 117-2) (ARPA) funds to the California Water and Wastewater Arrearage Payment Program (Program), administered by the California State Water Resources Control Board (State Board). The Program offers community wastewater systems up to $985 million in federal ARPA funds to provide financial relief for past-due residential and commercial wastewater bills accrued during the COVID-19 pandemic relief period between March 4, 2020, and June 15, 2021; and
In March 2022, the City of Stockton (City) applied for the Program and supplied all the necessary information to receive funds from the State Board Program. The City anticipates an award of up to $2,253,527.34 in Program funding; and The Program requires the City to issue a credit to eligible residential, commercial, and institutional wastewater utility accounts within the service area, notify customers in writing within 60 days, and waive all late fees for qualifying wastewater arrearages; and The City may expend up to three percent (3%) or $1 million, whichever is less, for costs incurred to apply for assistance or to comply with Program requirements; now, therefore,

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

1. The City Manager, or designee, is hereby authorized and directed to accept and appropriate funds from the California State Water Resources Control Board Water and Wastewater Arrearage Payment Program in an amount up to $2,253,527.34.

2. The City Manager, or designee, is authorized to allocate funds in accordance with all Water and Wastewater Arrearage Payment Program requirements. //
//
473

3. The City Manager is directed to approve a waiver of customer late payment fees for wastewater arrearages eligible under the Water and Wastewater Arrearage Payment Program in an amount anticipated to be under $250,000.00.

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 April 19, 2022 .

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

ELIZA R. GARZA, CMC
City Clerk of the City of Stockton
474
California Water and Wastewater
Arrearage Payment Program
Stockton City Council
Agenda Item 15.3
April 19, 2022
475
Important Dates
• July 23, 2021: Governor signs AB‐148.
• Allocated $985M to the State Water Resources Control Board (State Board) in American Rescue Plan Act (ARPA) funds to cover customer water and wastewater arrearages resulting from the COVID‐19 pandemic emergency.
• September 21, 2021: State Board published guidelines for the California Water and Wastewater Arrearage Payment Program. • December 6, 2021: City submitted eligible water arrearages to the State Board.
• February 1, 2022: State Board opened the program for wastewater arrearages.
• March 31, 2022: City submitted application to receive funding up to $2,253,527.34 for wastewater arrearages.
476
Program Background
• Eligible arrearages include all active or inactive residential and commercial accounts 60 days or more behind on payments for debt accrued between March 4, 2020, and June 15, 2021.
• City must allocate payments as bill credits to eligible accounts and notify customers within 60 days of receiving Program funds. • A payment plan must be offered for customers with remaining wastewater arrearages after credit is applied.
• Customers have 30 days to enroll.
• City must waive customer late fees and penalties for qualifying arrearages.
477
Determination of Eligibility
•In accordance with Program guidelines, a report of
past‐due wastewater bills was used to determineeligible accounts:
• Included past‐due wastewater bills for residential,
commercial and institutional customer accounts.
• Removed ineligible bills accrued outside the eligible pandemic relief period of March 4, 2020, through June
15, 2021.
478
Program Impact
• Total Program funds requested: $2,253,527.34.
• Total in arrearages: $2,187,890.63.
• 3% administrative cost: $65,636.71.
• Funds benefit 11,348 residential accounts, totaling
$2,033,089.92.
• Funds also benefit 394 commercial and institutional
accounts, totaling $154,800.71.
• Total in late fees and penalties required to be waived by the City: $250,000.
479
Recommendation
• Accept and appropriate funds from the State Board for the Program in the amount of $2,253,527.34.
• Approve the allocation of funds in accordance with all Program requirements.
• Approve a waiver of customer late payment fees eligible for the Program.
480
Next Steps
• Credit eligible accounts.
• Mail a notification to eligible customers within 60 days of receiving funds. Notice must include:
• The amount credited to wastewater account;
• Information about the Program funding sources;
• Instructions to contact the City with questions, to enroll in a payment plan, or to appeal or contest utility bill charges; and • A referral statement regarding additional assistance that may be available through the Low‐Income Household Water Assistance Program (LIHWAP), scheduled to be available in May 2022. • Waive late fees and penalties related to eligible arrearages. • Prepare required report for the Wastewater Arrearage Payment Program.
481
City of Stockton
Legislation Text
File #: 22-0390, Version: 1
DISCUSSION ON POTENTIAL 4TH OF JULY CELEBRATION
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City of Stockton
Legislation Text
File #: 22-0323, Version: 1

HOLD PUBLIC HEARING TO APPROVE THE ANNUAL BUDGET AND ASSESSMENT ROLLS FOR THE 2022-23 HOLIDAY PARK MAINTENANCE DISTRICT

RECOMMENDATION
This scheduled noticed public hearing is being held to consider public comments and testimony regarding the Holiday Park Maintenance District 2022-23 proposed Assessment budget and the levy of assessments.

At the conclusion of the public hearing, if a majority protest does not exist, it is recommended that the City Council adopt a resolution to:

1. Override any and all public hearing protests.

2. Approve the Annual Budget for Holiday Park Budget for FY2022-23.

3. Confirm and approve the assessment of $46,598 for the Holiday Park Maintenance District for FY2022-23.

4. Authorize the City of Stockton Chief Financial Officer to assess those parcels within the assessment district.

5. Certify the assessments meet the requirements pertaining to the levy of annual assessments.

6. Approve a subsidy in the amount of $81,489 from the Strong Communities Fund (210-000) to continue operations and maintenance of the facility.

7. Authorize the City Manager to take appropriate actions to carry out the purpose and intent of the resolution.

Summary
The City of Stockton owns the Holiday Park swimming pool located at 5703 Kermit Lane. The facility had been operated and maintained through an agreement with the Holiday Park Recreation Association (“Association”) since the pool’s construction in 1969 until May 2019, when the pool’s operation and maintenance reverted to the city. The pool is now open to the public with residents of the maintenance district receiving a discounted fee to use the pool.

Annually, City staff submits a budget (Attachment A) for operations and maintenance to the City Council for approval. The City Council approved budget forms the basis of an assessment of parcels within the maintenance district (Attachment B) related to the pool. Each year a public hearing is held, City of Stockton Page 1 of 5 Printed on 4/12/2022
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and the certified assessment is submitted to San Joaquin County based on County assessed property values.

In 1996, California voters passed Proposition 218, after which increases to the assessment were only allowed by a vote of the residents. Consequently, residents of the district have not favored any increase in the assessment to keep up with the cost of the pool maintenance and repair cost. The assessment rate has thus remained at $46,598 since 1996. The cost of operations has significantly increased over time and is higher than the annual assessment revenues.

From 2015 to 2017, the City Council approved a subsidy from the General Fund to keep the pool open to serve the community. Since 2017 the subsidy has been appropriated from the Strong Communities Fund, per City Council approval, on the condition that the Association would seek additional sources of funds and engage the district members to consider an election to raise the assessment. No additional funding sources were secured, and a survey of district members by the Association indicated there was no willingness to engage in the election process to increase the assessment.

In 2019, the agreement with the Association expired, and the pool was returned to the city. The 2019 assessment funds were used for significant repairs to the pool. In 2020, the city reopened the pool for the swim season, and assumed responsibility for pool operations. The 2021 assessment funds were also used for repairs to the pool and opening of the swim season.

DISCUSSION
Background
On January 6, 1969, the City of Stockton completed the acquisition of two parcels located at 5703 Kermit Lane, Stockton, California on which the primary appurtenance was an aquatics facility, the Holiday Park swimming pool. The city accepted the Holiday Park Pool and adjacent parking lot as part of a parcel land transfer from the Holiday Park Recreation Association. On January 13, 1969, the City Council adopted Resolution 27450 creating the Holiday Park Maintenance District whereby the property lying within the district would be wholly assessed for the costs of maintaining, operating, and making necessary improvements, repairs, and upgrades to meet health and safety codes at the Holiday Park swimming pool.

There are 304 parcels assessed within Holiday Park Maintenance District. The assessment rate is established each year based on estimated expenditures and levied on parcels according to the County’s assessed valuation for each individual parcel within the district. In 1996, California voters passed Proposition 218, after which increases to assessments were only allowed by a vote of the residents. Votes to increase the assessments have failed to pass, thus the assessment has remained at $46,598 since 1996, an average cost of $153 per parcel. Of that assessment, San Joaquin County receives a fee of $700, and the City of Stockton Community Services Department receives $1,700 to administer the assessment. The remaining assessment, as needed, has been used by the Association for operations and maintenance, including all utilities, chemicals, supplies, repairs, staffing, professional services, and insurance.

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From 1969 to 2019, the City contracted with the Association to maintain, operate, and make necessary improvements, repairs, and upgrades.

Due to financial hardships resulting from increasing costs and fixed assessment revenues, the pool was closed for the 2011, 2015 and 2019 swim seasons (approximately Memorial Day to Labor Day) because the assessment revenues were well below the expenses to repair, maintain, and operate the pool. Starting in 2015, the city began subsidizing the Association to keep the pool open while the Association board developed additional revenue sources.

In 2017, the Board requested an increased subsidy. City staff advised the Board the subsidy would not increase, and the Board agreed to poll the Association membership for a vote to increase the assessment or the pool could face closure due to deferred maintenance. City staff met with the Board and offered limited financial support for the budget shortfall, and City Council approved a modest General Fund subsidy of $6,663. This was offered in part because City insurance requirements for pool operators had increased. Staff informed the Board that the subsidy would not continue to increase and explained the process and timeline for increasing the Assessment. The Board shared the requirements with the membership, and the city was notified that few residents in the Association were in support of increasing the assessment, even if it meant closing the pool.

In 2018, the City provided an additional $6,663 General Fund subsidy to assist with the shortfall while the Board worked to establish new revenue sources for pool operations. During the 2018 swim season, the pool facility was damaged by a hit and run driver, and the Community Services Department provided additional funds to assist with necessary health and safety repairs. Even with support from the city, the Board was unable to raise additional revenue to pay for a full season of operation and maintenance costs.

City Staff met with the Board president and treasurer on September 29, 2018, to discuss the future of the Association operating the pool. Staff held four formal meetings and regular telephone calls with the Board to find solutions to the operating deficits. On March 21, 2019, the Board informed the City that the Association did not have the ability to develop a financial plan, the support for increased assessments, and could no longer operate the pool for the 2019 season. Furthermore, the Association allowed the operations agreement to expire and did not seek renewal. Consequently, the city assumed responsibility for operating the pool, and on May 19, 2020, by way of Resolution 2020- 05-19-1501 adopted the annual budget, confirming the Holiday Park Maintenance district assessment for fiscal year 2020-2021. It also authorized a subsidy of up to $12,902 from the Strong Communities Fund to supplement funding for pool operations. During the year, staff monitored operational expenditures, reviewed prior year actual expenditures, and in completing a full cost of operations estimate for the FY 2021-2022, found that additional operational costs were being absorbed by the city.

On May 25, 2021, Resolution No.2021-05-25-1601 was approved adopting the annual budget and $75,809.00 subsidy, confirming the Holiday Park Maintenance District Assessment for fiscal year 2021-2022, authorizing the City of Stockton Chief Financial Officer to assess parcels within the district, and authorizing the City Manager to take all appropriate actions to implement.

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Present Situation
A portion of pool operations are funded through an assessment that is subject to an annual public hearing and resolution presented to the City Council approving the assessment roll to San Joaquin County. The $46,598 assessment, unchanged since 1996, is not enough to cover all repair, maintenance, and operating costs. In 2021, the pool maintenance services contract with All Season Pool service ($34,500) was moved from Public Works budget to Community Services Aquatics Budget. The FY 2022-2023 proposed budget for Maintenance and Repair includes the latest contract rate for All Season Pool service ($39,992) plus $8,180 for landscape and other maintenance ($48,172 total). Utility costs have increased substantially and with the age of the facility, staff recommends an additional $5,000 incidentals budget for possible equipment repairs.

For the 2021 COVID-19 impacted season, the four City pools still welcomed 15,894 visitors. Holiday Park pool was the second most used pool with 4,313 users (27 percent); Oak Park pool saw the most users with 7,347 (46 percent). The current assessment of $46,598 funds approximately 38 percent of the cost to maintain and open the pool for recreational swimming. The requested subsidy of $81,489, intended to cover the increased utility, maintenance, and operations of the Holiday Park pool, will allow the city to continue operating the pool for the upcoming 2022 swim season, offering pool access for the Stockton community. Along with the City’s three other pools, Holiday Park pool is scheduled to open for this summer’s swim season on May 29, 2023.

Public Notice
“A Notice of Intent to Hold a Public Hearing” has been published at least ten (10) days prior to City Council Action.

FINANCIAL SUMMARY
The Proposed Budget recommends that receipts from assessment continue to be collected in the Holiday Park Assessment Fund (Account 680-0000-239.10-00 [0000-000-210090-780-781-00-00-000 -000-], a non-budgetary account).

Revenues from assessments cover the basic pool maintenance and landscape maintenance contract, but do not generate sufficient revenues for the remaining operational costs. The basic maintenance budget for Holiday Pool is included in the Recreation General Fund (5025-000-XXXXXX -100-125-000-000) and the remaining operational costs are funded by Strong Communities (5025- 000-XXXXXX-210-000-000-000). The Proposed action will allow for the continued collection of assessments and for these revenues to be transferred to the Recreation Fund for all actual maintenance costs incurred. In addition, the recommendation will authorize a subsidy from the Strong Communities Fund of up to $81,489 to offset costs of operations and maintenance more than the revenue received.

The table below provides operating expense details for Fiscal Years 2020-2021 through 2022-2023:

FY 2020-2021 Actuals FY 2021-2022
Projected (est.)
FY 2022-2023
Requested (est.)

PUBLICITY &

ADVERTISING
406 470 400
ELECTRICITY 11705 16200 16500
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FY 2020-2021 Actuals FY 2021-2022
Projected (est.)
FY 2022-2023
Requested (est.)

PUBLICITY &

ADVERTISING
406 470 400
ELECTRICITY 11,705 16,200 16,500
SEWER 6,399 7,200 7,200
WATER 10,452 7,200 7,500
MAINT. & REPAIR

SERVICES
49,883 42,500 48,172 Pool and Landscape
Maintenance
OTHER SERVICES 33,443 44,500 43,315 Permit $435, Security $1,680, Plumbing
$1100, Fire $100.

Operator contract
$40,000
Incidentals 5,000 5,000 5,000
117,288 123,070 128,087
Attachment A - Holiday Park Annual Budget
Attachment B - Holiday Park Assessment District Map
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ATTACHMENT A
INCOME
A. Assessments $46,598.00
TOTAL INCOME: $46,598.00

EXPENSES
A. Utilities:

PG&E $16,500.00
WATER $7,500.00
SEWER $7,200.00
$31,200.00
B. Property Maintenance:

Publicity $400.00
Maintenance & Repair (pool & landscape) $48,172.00
Permit $435.00
YMCA $40,000.00
Bay Alarm $1,680.00
Plumbing $1,100.00
Fire $100.00
Incidentals $5,000.00
$96,887.00
TOTAL EXPENSES: $128,087.00
(EXPENSES) OVER INCOME $ (81,489.00)

HOLIDAY PARK POOL
ANNUAL BUDGET 2022 -2023
488

CAVE LN
R

WOOD CT

HUTCHINSON AV

CARRINGTON C

PLEASANT

LINDA SUE DR

SWAIN RD

BANBURY DR

RIDGEWAY AV
CAM

SWAIN RD
Y.CT

JEFFREY CT
UPRR
U
P
R
R

HEMET AV

DUVALL CT
H.CT

MAYFAIR AV

KERMIT LN

MARCH LN

CARNELIAN DR

ELAINE DR
COLE

AUDREY DR
R

CARRINGTON CI

SILVER BREEZE CT
N

VIEW AV
URY DR

KERMIT LN

GARNER LN
MARLIN

MORNING DEW PL
OD DR

HOLIDAY DR

CAMANCHE LN

KERMIT LN
DR

YORKSHIRE

MAYFAIR AV
V

ROBINHOOD DR
DR
722
5504
5412
5528
5423
5444
619
5616
711
5509
5501
5440
5431
5640
5608
5621
602
621
812
5520
5616
5633
827
5433
5536
5627
5609
5536
5447
709
5448 605
5417
821
610
5628
5519
5416
724
5639
5522
5634
5424
5408
5448
809
5525
5422
5634
708 5506
5442
5434
5610
5432
5419
810
5602
5443
5441
5415
611
818
714
5520
5449
5645
5446
603
5534
813
5533
5439
824
5503
813
5652
5407
721
5646
5622
618
5523
546
5541
5615
719
5517
530
606 5441
802
5512
613
5425
5445
5628
706
5511
5445
5506
5539
703
5622
5521
5418
5630
972
826
918
824
856
958
934
919
839
5637
837
5638
5420
5636
5645
825
930
851
829
869
818
910
848
911
857
819
909
926
904
860
849
847
872
812
836
917
951
5411
840 853
863
830
826
5412
823
845
964
825
5643
835
834
912
927
5404
832 845
5624
816
866
833
5419
831
810
5631
942
842
842
902
829
903
935
5618
5625
950
822
5814 826 831
742
5812
5817
821
711
635
775
722
5724
5716
735 731
740
754
619
702
714
621
601
833
602
704
769
613
724
604
723
626
713
5830
533
802
5721
708
832
757
815
827
5732
832
745
620
760
5818
710
5740
5748
610
615
5835
801
743
5806
824
738
812
5808
729
726 728
727
5829
766
707
625
5821 841
608
737
5715
725
807
5815
620
735
774
628
803
5811
818
5802
641
601
806
813
5658
5842
5833
716
614
647
603
617
881
717
701
607
806
719
5827
732
820
5809
814
5836
748
622
5803
629
632
721
705
609
627
713
716
729
5823
5743
808
703
719
836
751
616
711
809
720
805
763
5824
5735
748
5708
875
5742
5718
5726
878
5702
5706
5704
884
5734
5712
959
943
777
779

DETAIL AREA
#212929
04/23/15
0 95 190 380 Feet µ Legend
Holiday Park Assessment Parcels
Holiday Park
Assessment District
ATTACHMENT B 489
Resolution No.

STOCKTON CITY COUNCIL

RESOLUTION ADOPTING THE ANNUAL BUDGET, CONFIRMING THE

HOLIDAY PARK MAINTENANCE DISTRICT ASSESSMENT FOR FISCAL YEAR 2022-2023, AUTHORIZING THE CITY OF STOCKTON CHIEF

FINANCIAL OFFICER TO ASSESS PARCELS WITHIN THE DISTRICT, AND

AUTHORIZING THE CITY MANAGER TO TAKE ALL APPROPRIATE ACTIONS

TO IMPLEMENT
The City of Stockton (City) accepted the Holiday Park swimming pool as part of a parcel of land transfer recorded under San Joaquin County deed number 326-211, on January 6, 1969, from the Holiday Park Recreation Association; and On November 25, 1968, the city adopted Resolution No. 27,384, and on January 13, 1969, the city adopted Resolution No. 27,450 creating the Holiday Park Maintenance District whereby the lands lying within the district would be wholly assessed for the costs and expenses of maintaining and operating the improvements described in the deeded acquisition; and
Since acquiring the Holiday Park pool in 1969, the City has contracted with the Holiday Park Recreation Association continuously for maintenance and operations of the facility. The most recently executed agreement expired on May 12, 2019, and the Association decided not to renew, returning operations and maintenance responsibilities to the city; and
City staff established a budget report for operation and maintenance costs as evidenced by the declaration on file with the City Clerk, whereupon the public hearing was duly and regularly held at the time and place stated in the notice; and City utilized $46,598 (2022-2023) from the Holiday Park Maintenance District to bring Holiday Park swimming pool to City standards of operations (maintenance, water quality and overall pump efficiency); and City staff have estimated that an additional $81,489 is needed to operate the pool for the 2022 summer season: and
A notice of the public hearing was duly and regularly published in The Record in the time, form, and manner required by law; and The estimated cost of the benefits to be assessed to each parcel of real property within the Holiday Park Maintenance District will not change from the prior year; now, therefore,
490

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

1. Any and all protests made either to the Report, the proposed budget, or to the proposed levy of assessments and all persons desiring to be heard in relation to any of the matters, whether as protestants or otherwise, have been fully heard and considered, and any and all such protests or objections are hereby overruled.

2. The Annual Budget for Holiday Park Pool for the Fiscal Year 2022-2023 is approved.

3. The subsidy of $81,489 from the Strong Communities Fund (5025-000-210) is approved.

4. The assessments follow all laws pertaining to the levy of the annual assessment. (Stockton Improvement Procedure Code, section 3.76.810 et seq.).

The purpose of the assessments is the maintenance and operation of the Holiday Park Swimming Pool facilities.

5. The assessments in the total amount of $46,598 are hereby approved, confirmed, and levied upon the parcels of real property within the Holiday Park Maintenance District.

6. The Chief Financial Officer or his designee is hereby directed to enter the assessments on the 2022-2023 tax roll for the parcels within the district as shown in the Report on file with the City Clerk.

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

PASSED, APPROVED, and ADOPTED April 19, 2022___.
_______________________
KEVIN J. LINCOLN II
Mayor of the City of Stockton
ATTEST:
__________________________
ELIZA R. GARZA, CMC
City Clerk of the City of Stockton
491

HOLIDAY PARK MAINTENANCE

DISTRICT
2022-23 ANNUAL ASSESSMENT
City Council Meeting
April 19, 2022
Agenda Item 16.1
Stephen Jiang
Community Services Deputy Director - Recreation
492
Holiday Park Maintenance District
2022-23 Annual Assessment
History
• 1968: City acquired parcel on Kermit Lane in Stockton. • 1969: City formed Holiday Park Maintenance District.
• Surrounding 304 parcels assessed for operation and
maintenance costs.
• March 21, 2019: Holiday Park Recreation Association
informed the City of their intent to end the lease
agreement.
• May 19, 2019: City assumed operation and maintenance
for Holiday Park Pool.
493
Holiday Park Maintenance District
2022-23 Annual Assessment
Facility Includes:
• Main Pool
• Tot Pool
• Restrooms
• Parking Lot
• Equipment Shed
• Fencing
Hours of Operation:

Open Swim
• Tues – Friday 2-5 p.m.
• Sat – Sun 1-5 p.m.

Family Swim
• Wed & Fri 5-7:30 p.m.
• Sat & Sun 5-7:30 p.m.

History of Use:
2021 Season:
• 2752 Individuals
• 1561 Families
2020 Season:
• 1738 Individuals
• 683 Families
Stockton Fire also uses
this facility for training.
494
Holiday Park Maintenance District
2022-23 Annual Assessment
Assessment:
• $46,598 since 1996.
• Assessment pays for chemicals, repairs, maintenance,
landscaping and insurance.
• No change to assessment rate for 2022-23.

Subsidy:
• A subsidy of $81,489 is needed for pool maintenance and operation.
• This is an increase of $5,680 from last year, due to increase in staffing cost and utility expenses
• A Strong Communities Fund appropriation has been included in the 2022-23 Community Services Department budget
495
Holiday Park Maintenance District
2022-23 Annual Assessment
Recommendation:
• Hold a public hearing on $46,598 proposed 2022-23 assessment • Adopt resolution to:
• Approve 2022-23 assessment & authorize CFO to assess the parcels
• Authorize a subsidy of $81,489 from the Strong Communities Fund (5025-000-210)
496
City of Stockton
Legislation Text
File #: 22-0134, Version: 1
PUBLIC HEARING TO ACCEPT THE ECONOMIC DEVELOPMENT SUBSIDY 2021 ANNUAL REPORT

RECOMMENDATION
It is recommended that the City Council, by motion:

1. Accept the Economic Development Subsidy 2021 Annual Report, which includes all subsidies the City has provided to developers/business entities for economic development purposes over $100,000; and

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

Summary
Effective January 1, 2014, California Government Code Section 53083 (Attachment A) requires local governments to report any economic development subsidy exceeding $100,000, and to provide specific information to the public before approving any economic development subsidy of $100,000 or more. The City is compliant with these requirements and provides information to the public through reports to the City Council on a per-project basis for City programs. The statute also requires a report to be provided to the public on an annual basis. The first report must be provided no later than five years after the action granting an economic development subsidy. The City Council accepted the 2020 Annual Report on April 27, 2021. The City has prepared the 2021 Annual Report (Attachment B) to meet the requirements of the statute.

Background
On October 11, 2013, Assembly Bill (AB) 562 was approved by Governor Brown and became effective January 1, 2014. The bill created a new section of the Government Code requiring local governments to report on any economic development subsidy over $100,000. The term “economic development subsidy” is defined as any expenditure of public funds or loss of revenue to a local agency in the amount of one hundred thousand dollars ($100,000) or more, for the purpose of stimulating economic development within the jurisdiction of a local agency, including, but not limited to, bonds, grants, loans, loan guarantees, enterprise zone or empowerment zone incentives, fee waivers, land price subsidies, matching funds, tax abatements, tax exemptions, and tax credits.

The following information is required as a part of the report:

Before approval of subsidy
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1. The name and address of all corporations or any other business entities, except for sole proprietorships, that are the beneficiary of the economic development subsidy, if applicable.

2. The start and end dates and schedule, if applicable, for the economic development subsidy

3. A description of the economic development subsidy, including the estimated total amount of the expenditure of public funds by, or of revenue lost to, the local agency as a result of the economic development subsidy.

4. A statement of the public purposes for the economic development subsidy.

5. Projected tax revenue to the local agency as a result of the economic development subsidy.

6. Estimated number of jobs created by the economic development subsidy, broken down by fulltime, part-time, and temporary positions.

Within five years after granting subsidy:

1. The name and address of all corporations or any other business entities, except for sole proprietorships, that are the beneficiary of the economic development subsidy, if applicable.

2. The start and end dates and schedule for the economic development subsidy.

4. The net tax revenue accruing to the local agency as a result of the economic development subsidy.

5. The net number of jobs created by the economic development subsidy, broken down by fulltime, part-time, and temporary positions.

Affordable housing projects do not require economic development subsidy reporting.

Present Situation
Local agencies are required to provide an annual report of all economic development subsidies no later than five years after the action granting an economic development subsidy. The City has prepared the 2021 Annual Report (Attachment B) to meet the requirements of the statute.

The 2021 Annual Report indicates the City provided approximately $21.3 million in economic subsidies for “qualifying” criteria, which includes projects that received over $100,000 in economic development subsidy and are either bonds, grants, loans, loan guarantees, enterprise zone or empowerment zone incentives, fee waivers, land price subsidies, matching funds, tax abatement, tax exemptions, and tax credits. The City provided a total of approximately $23.6 million for all economic subsidies in 2021.

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The City Programs that require reporting on the annual AB 562 report are:
· Stockton Economic Stimulus Plan (SESP) Program
· Public Facility Fee Reduction to Non-Residential Projects · Greater Downtown Stockton Residential Development Public Facilities Fee Exemption · Downtown Infill Infrastructure Program
· Office and Industrial Sales Tax Incentive Program
The City Programs that do not meet the AB 562 reporting qualifications but were included in the report for transparency purposes are:
· Storefront Beautification Micro Grant Program
· Stocked Full of Produce Grant Program
· Industrial Development Bonds (IDBs)
· Lien Forgiveness Program (Commercial)
· Commercial Emergency Grant Program
· Commercial Façade Improvement Forgivable Loan Program · Small Business Relief Grants
· Downtown Financial Incentive Program
Job Retention & Local Hire Requirement
The Stockton Economic Stimulus Plan Program requires participants to hire at least 50% of the workforce from employees who reside in Stockton. In 2021, 3,063 total workers were employed by participating projects, of which 1,595 employees lived in Stockton. The local hiring requirement does not apply to multi-family residence permits.

The Small Business Relief Grant focused on retention of jobs due to the financial impact caused by the Covid-19 pandemic. In 2021, the program assisted with the retention of 563 part-time jobs and 706 full-time jobs.

FINANCIAL SUMMARY
Total 2021 subsidies are as follows:

Program Eligible
Subsidies
Non-Eligible
Subsidies
Stockton Economic Stimulus Plan (SESP) $9,934,543
(Single-family)
$2365440
$789,086
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Program Eligible
Subsidies
Non-Eligible
Subsidies
Stockton Economic Stimulus Plan (SESP) $9,934,543
(Single-family)
$2,365,440
(Multi-family)
$789,086
Public Facility Fee (PFF) Reduction for Nonresidential Projects$3,618,823 $475,732 Greater Downtown Stockton Residential
Development Public Facilities Exemption
$118,890 -
Downtown Infill Infrastructure Program - -
Storefront Beautification Microgrant Program - -
Stocked Full of Produce Grant Program - -
Industrial Development Bonds (IDBs) - -
Lien Forgiveness Program (Commercial) - -
Commercial Emergency Grant Program - $7,000
Commercial Façade Improvement Forgivable
Loan Program
- $81,477
Office and Industrial Sales Tax Incentive
Program
$5,240,032 -
Small Business Relief Grant Program - $843,000
Downtown Financial Incentive Program (DFIP) - $94,242
$23,568,242 TOTAL $21,277,705 $2,290,537
For the calendar year of 2021, the City provided $21.3 million in eligible subsidies (i.e., over $100,000 per subsidy) and an additional $2.3 million in non-eligible subsidies (less than $100,000 per subsidy) for a total of $23.6 million.

There is no financial impact with the filing of the Economic Development Subsidy 2021 Annual Report.

Attachment A - Government Code 53083
Attachment B - Economic Development Subsidy 2021 Annual Report City of Stockton Page 4 of 4 Printed on 4/12/2022
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500
State of California

GOVERNMENT CODE
Section 53083
53083. (a) On and after January 1, 2014, each local agency shall, before approving any economic development subsidy within its jurisdiction, provide all of the following information in written form available to the public, and through its Internet Web site, if applicable:
(1) The name and address of all corporations or any other business entities, except for sole proprietorships, that are the beneficiary of the economic development subsidy, if applicable.
(2) The start and end dates and schedule, if applicable, for the economic development subsidy.
(3) A description of the economic development subsidy, including the estimated total amount of the expenditure of public funds by, or of revenue lost to, the local agency as a result of the economic development subsidy. (4) A statement of the public purposes for the economic development subsidy. (5) Projected tax revenue to the local agency as a result of the economic development subsidy.
(6) Estimated number of jobs created by the economic development subsidy, broken down by full-time, part-time, and temporary positions.
(b) Before granting an economic development subsidy, each local agency shall provide public notice and a hearing regarding the economic development subsidy. A public hearing and notice under this subdivision is not required if a hearing and notice regarding the economic development subsidy is otherwise required by law. (c) The information required to be provided in subdivision (a) shall remain available to the public under existing state and federal law and be posted on the local agency’s Internet Web site, if applicable, for the entire term of the economic development subsidy.
(d) The local agency, within the term of the economic development subsidy but not later than five years after the action granting an economic development subsidy, as defined in paragraph (1) of subdivision (g), shall issue a report for each economic development subsidy. The report shall contain the information described in subdivision (a). The local agency shall make the report available to the public and through its Internet Web site, if applicable. The report shall also contain the following information, if applicable:
(1) The name and address of all corporations or any other business entities, except for sole proprietorships, that are the beneficiary of the economic development subsidy, if applicable.
(2) The start and end dates and schedule for the economic development subsidy.

STATE OF CALIFORNIA

AUTHENTICATED

ELECTRONIC LEGAL MATERIAL
Attachment A 501
(3) A description of the economic development subsidy, including the estimated total amount of the expenditure of public funds by, or of revenue lost to, the local agency as a result of the economic development subsidy. (4) The net tax revenue accruing to the local agency as a result of the economic development subsidy.
(5) The net number of jobs created by the economic development subsidy, broken down by full-time, part-time, and temporary positions.
(e) (1) The local agency, within the term of the economic development subsidy but no later than five years after the action granting an economic development subsidy, as defined in paragraph (1) of subdivision (g), shall hold a public hearing to consider any written or oral comments on the information contained in the report prepared pursuant to subdivision (d).
(2) For an economic development subsidy, as defined in paragraph (1) of subdivision (g), with a term of 10 years or more, the local agency shall hold a public hearing at the conclusion of each economic development subsidy that shall contain the information described in subdivision (d), in written form available to the public, and through its Internet Web site, if applicable.
(f) Each public hearing required by this section shall be consolidated with a local agency’s regularly scheduled hearing.
(g) As used in this section, the following terms have the following meanings:
(1) “Economic development subsidy” means any expenditure of public funds or loss of revenue to a local agency in the amount of one hundred thousand dollars ($100,000) or more, for the purpose of stimulating economic development within the jurisdiction of a local agency, including, but not limited to, bonds, grants, loans, loan guarantees, enterprise zone or empowerment zone incentives, fee waivers, land price subsidies, matching funds, tax abatements, tax exemptions, and tax credits. “Economic development subsidy” shall not include expenditures of public funds by, or loss of revenue to, the local agency for the purpose of providing housing affordable to persons and families of low or moderate income, as defined in Section 50093 of the Health and Safety Code.
(2) “Local agency” means a city, including a charter city, county, or city and county.
(Added by Stats. 2013, Ch. 740, Sec. 1. (AB 562) Effective January 1, 2014.) Attachment A 502
Attachment B
APRIL 2022

CITY OF STOCKTON

COMMUNITY DEVELOPMENT DEPARTMENT

ECONOMIC DEVELOPMENT DEPARTMENT
Attachment B

ECONOMIC

DEVELOPMENT

SUBSIDY

ANNUAL REPORT
2021
503
Attachment B
2 2021 ECONOMIC DEVELOPMENT SUBSIDIES ANNUAL REPORT
Effective January 1, 2014, Assembly Bill 562 (Williams) added section 53083 to the Government Code, which requires local agencies to annually report subsidies for economic development purposes.

Government Code §53083 requires the report to include a description of each business entity that is a beneficiary of a subsidy, description of each program and total amount of the expenditure of public funds or of revenue lost as a result of the subsidy, statement of public purpose of the subsidy, net tax revenue as a result of the subsidy, and estimated number of jobs created by the subsidy. “Economic development subsidy” means any expenditure of public funds or loss of revenue to a local agency in the amount of one hundred thousand dollars ($100,000) or more, for the purpose of stimulating economic development within the jurisdiction of a local agency, including, but not limited to, bonds, grants, loans, loan guarantees, enterprise zone or empowerment zone incentives, fee waivers, land price subsidies, matching funds, tax abatements, tax exemptions, and tax credits. “Economic development subsidy” shall not include expenditures of public funds by, or loss of revenue to, the local agency for the purpose of providing housing affordable to persons and families of low or moderate income, as defined in Section 50093 of the Health and Safety Code.

QUALIFYING CITY PROGRAMS
City Programs that provide “economic development subsidies” as defined by Assembly Bill 562 include:

1. Stockton Economic Stimulus Plan (SESP)

2. Public Facility Fee (PFF) Reduction for Non-residential Projects

3. Greater Downtown Stockton Residential Development Public Facilities Exemption

4. Downtown Infill Infrastructure Program

5. Storefront Beautification Microgrant Program

6. Stocked Full of Produce Grant Program

7. Industrial Development Bonds (IDBs)

8. Lien Forgiveness Program (Commercial)

9. Commercial Emergency Grant Program

10. Commercial Façade Improvement Forgivable Loan Program

11. Office and Industrial Sales Tax Incentive Program

12. Small Business Relief Grant Program

13. Downtown Financial Incentive Program (DFIP)

1. STOCKTON ECONOMIC STIMULUS PLAN (SESP)
The SESP program provides a Public Facility Fees (PFF) fee reduction for qualifying single-family residential, multi-family residential, commercial, and industrial projects in Stockton.

PFF reduction amounts to the categories above are as follows:
 Up to a total of $19,997 or 100% (whichever is less) for single-family residential.  $14,080 per unit for multi-family residential.
 50% reduction for commercial and industrial.
504
Attachment B
3 Fee reductions are applied to the following PFF fee categories:

PFF Category Residential Commercial / Industrial
City Office Space  
Libraries  
Fire Stations  
Parkland 
Community  
Recreation Centers  
Police Stations  
Street Improvements  
The Fee Reduction applies to Single-family residential, multi-family residential, and non-residential (commercial/industrial) permits issued citywide for builders/developers who comply with terms of the program.

To participate in the single-family residential component of SESP, a developer must comply with the local hire and disadvantaged individual requirements. Only units within the existing City Limits as described in 2008 General Plan Settlement Agreement are eligible to meet the local hire requirement of the program. The commercial/industrial component, formerly the Public Facilities Fee Reduction Program (established in 2010), was folded in to the SESP program in 2015; reporting of local hiring is not a requirement.

The SESP program will remain in place until the City conducts a nexus study for the Public Facility Fees (Development Impact Fee) program and adopts new fees.
27%
17%
13%
10%
9%
5%
4%
4%
1%
1%
7%
SESP - Single-family Fees Waived 2021
KB HOME - 27%
D.R. HORTON CA2 INC - 17%
LENNAR HOMES OF CALIFORNIA - 13%
K. HOVNANIAN CALIFORNIA OPERATIONS INC - 10%
LGI HOMES-CALIFORNIA LLC - 9%
CARESCO BUILDERS CORP - 5%
RICHMOND AMERICAN HOMES - 4%
AFFORDABLE LUXURY HOMES - 4%
MEDINA & ASSOCIATES - 1%
NEWFH, INC - 1%
FEES WAIVED <$100K - 7%
505
Attachment B
4 SESP Single-family Fee Waiver Recipients 2021

KB HOME
4830 BUSINESS CENTER DR, SUITE 150
FAIRFIELD, CA 94534
$2,919,759
D.R. HORTON CA2 INC
2260 DOUGLAS BLVD, SUITE 110
ROSEVILLE, CA 95661
$1,809,124

LENNAR HOMES OF CALIFORNIA
15131 ALTON PKWY #345
IRVINE, CA 92618
$1,419,505
K. HOVNANIAN CALIFORNIA OPERATIONS INC
3721 DOUGLAS BLVD., SUITE 130
ROSEVILLE, CA 95661
$1,097,022

LGI HOMES-CALIFORNIA LLC
2251 DOUGLAS BLVD, SUITE 100
ROSEVILLE, CA 95661
$1,000,792

CARESCO BUILDERS CORP
3350 DEER PARK DR, SUITE C
STOCKTON, CA 95219
$533,722

RICHMOND AMERICAN HOMES

ONE HARBOR CENTER
SUISUN, CA 94585
$481,150

AFFORDABLE LUXURY HOMES
5711 N EL DORADO ST
STOCKTON, CA 95207
$384,779

MEDINA & ASSOCIATES
5830 E ASHLEY LN
STOCKTON, CA 95212
$153,968

NEWFH, INC
1701 W. MARCH LN
STOCKTON, CA 95207
$134,722
FEES WAIVED UNDER $100K $789,086
Total Single-family $10,723,629
506
Attachment B
5 SESP Multi-family Fee Waiver Recipient 2021

DESCOR INC
3164 GOLD CAMP DRIVE STE 250
RANCHO CORDOVA, CA 95670
$2,365,440
TOTAL Multi-family $2,365,440
Net Tax Revenue Accrued as a Result of Subsidy – Not applicable.

Number of Jobs Created by Subsidy – 3,063 (1,595 Stockton residents)

2. PUBLIC FACILITY FEE (PFF) REDUCTION FOR NON-RESIDENTIAL PROJECTS In September 2010, the City Council adopted resolution #10-0308 which authorized the reduction of fees for residential and non-residential projects. The program was extended and evolved with adoption and extension of the SESP program in 2019. The PFF Reduction to Non-Residential Projects program will remain in place until the City conducts a nexus study for the Public Facility Fees (Development Impact Fee) program and adopts new fees.

Non-residential projects located anywhere in the City receive a 50% reduction for PFF components for the following PFF categories:
 City Office Space
 Libraries
 Fire Stations
 Police Stations
 Street Improvements
Recipients Amount

CRP/PDC TIDEWATER OWNER LLC
3400 E EIGHT MILE RD STE A
STOCKTON, CA 95212
$1,871,626

GILL HOSPITALITY, LLC, & SETHI HOLDINGS, LP
8657 RANCH RD
TRACY, CA 95304
$538,164

I&T PROPERTIES LLC & SETHI GAURAV ETA
8657 RANCH RD
TRACY, CA 95304
$538,164

DPML ARCH ROAD LLC
5500 EQUITY AVE
RENO, NV 89502
$432,012
BUZZ OATES CONSTRUCTION INC, 5
55 CAPITOL MALL STE 900
SACRAMENTO, CA 95814
$238,857
FEES WAIVED UNDER $100K $475,732
TOTAL $4,094,555
507
Attachment B
6 Net Tax Revenue Accrued as a Result of Subsidy – Not applicable.

Number of Jobs Created by Subsidy – Not applicable.

3. GREATER DOWNTOWN STOCKTON RESIDENTIAL DEVELOPMENT PUBLIC FACILITIES

EXEMPTION
The Greater Downtown Stockton Residential Development Public Facilities Fees Exemption Program provides fee exemptions for qualifying residential developments within the greater downtown area to encourage housing production. The PFF Exemption Program will remain in place until the City conducts a nexus study for the Public Facility Fees (Development Impact Fee) program and adopts new fees.

Eligible development projects will receive an exemption for the following Public Facilities Fees (PFF) categories:
 City Office Space
 Libraries
 Fire Stations
 Parkland
 Community Recreation Centers
 Police Stations
 Street Improvements
Recipient 2021
OTT CONSTRUCTION for

KCL WORLDWIDE PROPERTIES LLC
$118,890
TOTAL $118,890
Net Tax Revenue Accrued as a Result of Subsidy – Not applicable. 6%
11%
13%
13% 46%
12%
Non-Residential Public Facility Fee Reduction
BUZZ OATES CONSTRUCTION INC - 6%
DPML ARCH ROAD LLC - 11%
I &T PROPERTIES LLC & SETHI GAURAV ETA - 13%
GILL HOSPITALITY, LLC, & SETHI HOLDINGS, LP - 13%
CRP /PDC TIDEWATER OWNER LLC - 46%
Fees Waived < $100k - 12%
508
Attachment B
7 Number of Jobs Created by Subsidy – Not applicable.

4. DOWNTOWN INFILL INFRASTRUCTURE PROGRAM
The Downtown Infill Infrastructure Program provides a financial incentive to eligible parties interested in developing new market-rate residential, commercial, or mixed-use projects in Downtown Stockton.

In Stockton’s downtown area, aging infrastructure, such as sewer and water lines, as well as the rehabilitation of older structures can significantly increase project costs and serve as barriers to infill development.

Under the Downtown Infill Infrastructure Program, eligible development projects may receive a reimbursement for certain public infrastructure improvements. Examples of eligible public infrastructure improvements include sewer and water; storm drain; street improvements, including crosswalks, bike lanes, striping, and medians; traffic signals; streetlights; and landscaping.

To qualify for the program, the developer must meet these criteria:

1. Develop a minimum of 35 new market-rate residential units and/or develop a minimum of 30,000 square feet of new, or newly renovated retail or commercial space.

2. Be located within the program boundary, which includes Center Street to the west, Park Street to the north, ACE Rail/Union Pacific Railroad to the east, and Washington Street to the south.

3. Make a capital investment of at least $500,000.

4. Eligible public infrastructure improvements must equal $100,000 or more.

Applicants must submit a request for funding to the Economic Development Department for review and consideration. If deemed eligible under the program guidelines, a Reimbursement Agreement requiring Council approval will be executed between the City and applicant. The City will reimburse the applicant within six (6) months of completion of the public improvements included within the reimbursement agreement of up to $900,000 annually. The program was approved by Council on July 7, 2015 and is scheduled to sunset in July 2025.

During 2021, no applicants received an economic development subsidy under the Downtown Infill Program.

Net Tax Revenue Accrued as a Result of Subsidy – Not applicable.

Number of Jobs Created by Subsidy – Not applicable.

5. STOREFRONT BEAUTIFICATION MICROGRANT PROGRAM
In 2018, the City Council adopted a micro grant program to provide Community Development Block Grant (CDBG) funds for minor storefront improvements for businesses located within specific commercial corridors within Stockton city limits. The program offers commercial property owners and/or business owners up to $2,000 for the replacement and/or improvements of windows, signs, paint, awnings, lighting, planters, and trellises in order to transform commercial corridors into neighborhood destinations. There is no expiration date for this program.

During 2021, no applicants received economic development subsidies under the Storefront Beautification Microgrant Program.
509
Attachment B
8 Net Tax Revenue Accrued as a Result of Subsidy – Not applicable.

Number of Jobs Created by Subsidy – Not applicable.

6. STOCKED FULL OF PRODUCE GRANT PROGRAM
In 2018, the City implemented the Stocked Full of Produce Grant Program that provides Community Development Block Grant (CDBG) funds for corner and convenience stores to make necessary improvements to sell fresh, healthy food options. The program offers store owners, located within designated food deserts, up to $10,000 to purchase equipment or make infrastructure improvements to support the sale and storage of healthy food options. Eligible improvements include items such as the installation of cold storage refrigeration, electrical or other infrastructure improvements to accommodate such cold storage, shelving or other food storage, and cosmetic improvements to the structure to improve overall store layout which increases the visibility of healthier food options thereby encouraging customer purchases. There is no expiration date for this program.

During 2021, no applicant received an economic development subsidy under the Stocked Full of Produce Grant Program.

Net Tax Revenue Accrued as a Result of Subsidy – Not applicable.

Number of Jobs Created by Subsidy – Not applicable.

7. INDUSTRIAL DEVELOPMENT BONDS (IDBs)
Small- and medium-sized manufacturers may benefit from Industrial Development Bonds, a low-cost source of financing. (Bond financing can be as low as 75% of prime.) The City may discount the packaging fee by 50%, resulting in substantial up-front savings. The City did not issue any Industrial Development bonds in 2021. Applications are accepted on a rolling basis and there is no end date to the program.

Net Tax Revenue Accrued as a Result of Subsidy – Not applicable.

Number of Jobs Created by Subsidy – Not applicable.

8. LIEN FORGIVENESS PROGRAM (COMMERCIAL)
The Lien Forgiveness Program alleviates the burden of code enforcement liens on certain properties to allow for successful rehabilitation. The program permits forgiveness for certain liens imposed by the City for the public purpose of facilitating substantial investment, improvements, and blight abatement to eligible properties.

To be considered for the program, the property must meet all the following:
 Commercial property.
 Liens must exceed $5,000.
 Applicant must provide a letter verifying financial need.  Improvements to the property must further the objectives of the Economic Development Strategic Plan, Urban Land Institute Report, Council goals, or other related City plans, as well as bring the property into compliance.
510
Attachment B
9  Applicant must demonstrate that the proposed improvements will have a significant effect on the neighborhood and encourage additional investment.
 Applicant must demonstrate the ability to undertake and complete the proposed improvements.
 Applicant cannot be the party responsible for causing, maintaining, or allowing the violations, fines, fees, or liens at the subject property.

Liens will only be forgiven if the improvements are completed upon City inspection and the property is maintained. If the subject property maintains compliance during the term of the five-year agreement, the applicant may request the City remove the applicable lien(s) from the property.

This program was approved by Council on November 4, 2008, and there is no set date for expiration of the program. During 2021, no applicant received this economic development subsidy under the Lien Forgiveness Program.

Net Tax Revenue Accrued as a Result of Subsidy – Not applicable.

Number of Jobs Created by Subsidy – Not applicable.

9. COMMERCIAL EMERGENCY GRANT PROGRAM
The Commercial Emergency Grant Program provides grant funding for commercial property owners or business owners for immediate relief of emergency conditions. The program grants up to $7,500 to property owners or business owners for the purpose of repairing code violations, where the health and safety of employees or the general public are in jeopardy, and for which private funds are not readily available. To be eligible, the business must be located within City limits and the applicant must demonstrate a financial need.

This program was approved by Council on December 8, 1986, and there is no set date for expiration of the program. During 2021, no applicant received $100,000 or more of his economic development subsidy. The total subsidies funded by the Commercial Emergency Grant Program are as follows:

Recipient 2021
ARUNEE PHONGPHANCHUEN $7,000
TOTAL $7,000
Net Tax Revenue Accrued as a Result of Subsidy – Not applicable.

Number of Jobs Created by Subsidy – Not applicable.

10. COMMERCIAL FAÇADE IMPROVEMENT FORGIVABLE LOAN PROGRAM The Commercial Façade Improvement Forgivable Loan Program provides funding for exterior commercial improvement projects in Stockton. The program offers up to $20,000 per 50 linear feet of building street frontage, with a maximum of $100,000, to commercial property owners to enhance the exterior façade of commercial, nonresidential properties (including nonprofit facilities), for the purpose of reducing blight and stimulating economic development. 511
Attachment B
10 The program requires property owners to work with a licensed architect and ensure that the proposed improvements adhere to the City’s Design Guidelines. The loan amount requires a matching component from the property owner. Funds are granted in the form of a loan with a lien placed on the property during the term of the six-year loan. The loan is forgiven, and the lien is removed if the property is kept free of graffiti and blight.

This program was approved by Council on December 8, 1986. During 2021, no applicant received $100,000 or more of his economic development subsidy. The total amount of subsidies funded by the Commercial Façade Improvement Forgivable Loan Program are as follows:

Recipients 2021
RUHL BUILDING $37,900
STAR PROPERTY $43,577
TOTAL $81,477
Net Tax Revenue Accrued as a Result of Subsidy – Not applicable.

Number of Jobs Created by Subsidy – Not applicable.

11. OFFICE AND INDUSTRIAL SALES TAX INCENTIVE PROGRAM
The Office and Industrial Sales Tax Incentive Program provided an annual sales tax rebate to new or expanding office and industrial businesses located within Stockton city limits. Examples of the types of office and industrial businesses that would have been eligible under the program include eCommerce businesses, fuel distributors, high-tech equipment manufacturers or software developers, medical device manufacturers, and business-to-business sales. To qualify for the program, the business must have met the following criteria:

1. Generate net new annual gross taxable sales of $25 million of more.

2. Generate sales tax to the City corresponding with the gross sales tax amount.

3. Create a minimum of ten full-time equivalent jobs.

4. Make a capital investment of $50,000 or more.

The sales tax rebate is based on the annual net new sales tax revenue received by the City and is restricted to the Bradley-Burns tax. The rebate amount is based on the following tiers:

Net New Sales Tax Revenue % of Sales Tax Revenue Rebated to the Business
% of Sales Tax Revenue
Retained by the City
Less than $250,000 0% 100%
$250,000 - $500,000 50% 50%
More than $500,000 65% 35%
Qualifying businesses must have executed an agreement with the City, which required Council approval. The term of the agreement is 10 years, with options to extend for up to an additional 10 years.
512
Attachment B
11 This program was approved by Council on June 24, 2014, and sunset in June 2019 for new applications.

During 2021, four companies continued to receive subsidies under prior agreements. The 2021 subsidies for each company are as follows:

Recipients 2021

VALLEY PACIFIC PETROLEUM
152 FRANK W CIR, STE 100
STOCKTON, CA 95206
$1,597,194

DIESEL DIRECT WEST
3861 DUCK CREEK DR
STOCKTON, CA 95215
$1,467,252

RETAIL DEVELOPMENT WEST
(BED BATH AND BEYOND)
650 LIBERTY AV
UNION, NJ 07083
$167,520

BED BATH AND BEYOND

BBBYCF, LLC
3610 S. AIRPORT WAY
STOCKTON, CA 95206
$2,008,066
TOTAL $5,240,032
During 2021, the City rebated more than $5,240,032 in net new sales tax revenue as a result of the Office and Industrial Sales Tax Incentive Program. A minimum of 40 full-time equivalent new jobs were created as a result of this program.

12. SMALL BUSINESS RELIEF GRANTS
The Small Business Relief Grant program’s goal is intended to advance economic development in the City of Stockton with grant funds for local small businesses for the stabilization and expansion of Stockton’s economic base affected by COVID-19. This program was created as a response to the Covid19 pandemic and included funding from a source that has been augmented as funding has become available. The program expired in 2021. No participant received $100,000 or more of this economic development subsidy. This program helped to retain 563 part-time jobs and 706 full-time jobs.

Funding Source Amount Grant Awards
CDBG-CV $843,000 281
TOTAL $843,000 281
Net Tax Revenue Accrued as a Result of Subsidy – Not applicable.

Number of Jobs Created by Subsidy – Not applicable.

13. DOWNTOWN FINANCIAL INCENTIVE PROGRAM (DFIP)
The Downtown Financial Incentive Program (DFIP) encourages the economic reuse of structures within Downtown Stockton that have been vacant for a period of six months or longer. The City of Stockton will grant to the owner of eligible structures a sum equal to certain City imposed fees required to be paid in order to secure a building permit for tenant improvements with the purpose of eliminating blight and/or blighting influences. Residential or commercial structures located within the Downtown 513
Attachment B
12 Stockton Property Based Improvement District (a/k/a Downtown Stockton Alliance) that have been vacant for six months or more are eligible to apply.

This program was approved by Council on December 14, 1999 and there is no set date for expiration of the program. During 2021, no applicant received $100,000 or more of this economic development subsidy.

Recipients 2021
CALMAIN $94,242
TOTAL $94,242
Net Tax Revenue Accrued as a Result of Subsidy – Not applicable.

Number of Jobs Created by Subsidy – Not applicable.

SUMMARY
City Programs that provided “economic development subsidies” in 2021:

Program Eligible Subsidies Non-Eligible
Subsidies

1. Stockton Economic Stimulus Plan (SESP) $9,934,543
(Single-family)
$2,365,440
(Multi-family)
$789,086

2. Public Facility Fee (PFF) Reduction for Non-residential Projects
$3,618,823 $475,732

3. Greater Downtown Stockton Residential Development
Public Facilities Exemption
$118,890 -

4. Downtown Infill Infrastructure Program - -

5. Storefront Beautification Microgrant Program - -

6. Stocked Full of Produce Grant Program - -

7. Industrial Development Bonds (IDBs) - -

8. Lien Forgiveness Program (Commercial) - -

9. Commercial Emergency Grant Program [CDBG] - $7,000

10. Commercial Façade Improvement Forgivable Loan
Program [CDBG]
- $81,477

11. Office and Industrial Sales Tax Incentive Program $5,240,032 -

12. Small Business Relief Grant Program [CDBG-CV] - $843,000

13. Downtown Financial Incentive Program (DFIP) - $94,242 $23,568,242 TOTAL $21,277,705 $2,290,537
514

STOCKTON

ECONOMIC

DEVELOPMENT SUBSIDY
2021 ANNUAL REPORT
City Council MeetingApril 19, 2022Agenda Item 16.2
515
Background
 AB 562 effective January 1, 2014 Requires local governments report economic development subsidiesover $100,000
 Current Reporting Period – 2021 Comprehensive report of all programs
516
Qualifying Programs
(
 $100,000 Subsidy)
 Stockton Economic Stimulus Plan
(SESP)
 Public Facility Fee Reduction to
Non-residential Projects
 Greater Downtown Stockton
Residential Development PublicFacilities Exemption
 Downtown Infill Infrastructure
Program
 Office and Industrial Sales Tax
Incentive Program
517
Additional Programs Reported
(<$100,000 Subsidy)
 Storefront Beautification
Microgrant
 Stocked Full of Produce Grant Industrial Development Bonds (IDBs)
 Lien Forgiveness Program
(Commercial)
 Commercial Emergency Grant
Program
 Commercial Façade Improvement
Forgivable Loan
 Small Business Relief Grants Downtown Financial Incentive Program
518
Eligible
vs. NonEligible Subsidy

GRAND TOTAL
$23.6 MILLION
$21.3M
$2.3M
2021
Eligible Non-Eligible
519
Eligible Programs
GRAND TOTAL FOR ELIGIBLE PROGRAMS = $21.3 MILLION
SESP PFF Non- Residential Downtown Infill Sales Tax
Subsidy $12,299,983 $3,618,823 $118,890 $0 $5,240,032Total Recipients 11 5 1 0 4 $12,299,983
$3,618,823 $118,890
$0
$5,240,032
$0
$2,000,000$4,000,000$6,000,000$8,000,000
$10,000,000$12,000,000$14,000,000
520
2021
Employment Impacts
SESP recipients to
hire at least 50%
Stockton Residents
1,465 Jobs
(746
Stockton
Residents)
Small Business Relief Grant focus on Covid related job retention 706
full-time
+ 563
part-time
Job creation data tracking is not required by the remaining reported programs 521
Staff Recommends
 Accept the Economic Development
Subsidy 2021 Annual Report; and
 Authorize the City Manager to take
appropriate and necessary action tocarry out the purpose and intent of thismotion. 522
City of Stockton
Legislation Text
File #: 22-0265, Version: 1

ADOPT A RESOLUTION CERTIFYING AN ENVIRONMENTAL IMPACT REPORT, ADOPT AN

ORDINANCE FOR PRE-ZONING, ADOPT A DEVELOPMENT AGREEMENT, AND ADOPT A

RESOLUTION AUTHORIZING ANNEXATION REQUESTS FOR A PROPOSED INDUSTRIAL DEVELOPMENT AT 5110, 5150, 5268, 5280, AND 5290 MARIPOSA ROAD, 4500 EAST CLARK ROAD, AND 4600 AND 4610 MARFARGOA DRIVE (APNS 179-220-10; -11; -12; -13; -16; -17; -18; -19; -24) (P20-0805)

RECOMMENDATION
It is recommended that the City Council:

1. Adopt a Resolution certifying the Mariposa Industrial Park Environmental Impact Report (SCH #2020120283), including a Statement of Overriding Considerations, and adopt a Mitigation Monitoring and Reporting Program; and

2. Adopt an Ordinance for the Pre-zoning of APNs 179-220-10; -11; -12; -13; -16; -17; -18-; 19; and -24 to Industrial, Limited (IL); and

3. Adopt an Ordinance for a Development Agreement; and

4. Adopt a Resolution authorizing the filing of an annexation application with the San Joaquin Local Agency Formation Commission; and

5. Authorize the City Manager to take appropriate and necessary actions to carry out the purpose and intent of the resolutions.

Summary
The Project applicant, Greenlaw Partners, LLC, submitted an application to develop industrial and warehouse uses on nine (9) legal parcels totaling approximately 203.48 acres, that is presently within the jurisdiction of the County of San Joaquin.

To develop the proposed industrial project, the City Council is asked to consider certification of an Environmental Impact Report (EIR) (SCH #20201202893), Pre-zoning the property to Industrial, Limited (IL), adoption of a Development Agreement, and authorizing the filing of an application for annexation with the San Joaquin Local Agency Formation Commission (LAFCo).

An EIR was prepared for the project in compliance with the California Environmental Quality Act (CEQA). On December 14, 2020, a Notice of Preparation was published for a 30-day review period inviting comments from interested agencies through the State Clearinghouse, local agencies, and the general public. During this period, a community / EIR scoping meeting was held. A Draft EIR was prepared and circulated for a 45-day public review period beginning on August 24, 2021, and ending City of Stockton Page 1 of 9 Printed on 4/12/2022
powered by Legistar™
523
File #: 22-0265, Version: 1
October 7, 2021. The City received six (6) comment letters from interested parties during this process. Pursuant to CEQA Guidelines Section 15088, all substantive comments are provided responses in the Final EIR (Attachment F - Final EIR). None of the comments received required any changes to the impact analysis or new mitigation measures than those already identified in the Draft EIR. All potentially significant effects are identified and paired with feasible mitigation measures to reduce them to less than significant levels, with the exception of six (6) potential impacts that remain significant and unavoidable even with provided mitigation measures related to: Agricultural Land Conversion, Air Quality Emissions, Exposure to Sensitive Receptors to Criteria Pollutants, Greenhouse Gas Construction Emissions, Traffic Noise Levels, and Vehicle Miles Traveled. A Statement of Overriding Considerations is proposed based on the employment and economic benefits of the project.

Pursuant to CEQA Guidelines Section 15092, the City Council must consider the EIR prior to acting on the project. As reflected in the Proposed Resolution, an approval recommendation to certify the EIR is presented, including the adoption of a corresponding Mitigation Monitoring and Reporting Program (MMRP), findings, and a Statement of Overriding Considerations.

The EIR is intended by CEQA to be an informational document (CEQA Guidelines Section 15121).

Decision-making on the project in relation to its environmental impacts is reserved to the Lead Agency and any Responsible Agencies. Consequently, information in the EIR does not limit the Lead Agency's ultimate discretion on the project. As noted, the Lead Agency must address each significant effect identified in the EIR in written findings before they approve the project, or portions of the project (CEQA Guidelines Section 15091).

The proposed future development of the subject site is expected to result in a positive effect on City revenues, given the increase in property values and tax transfers, less the annual expenditures to provide services to the project site. Additionally, the proposed project will generate approximately $5,997,979 in one-time Utility connection and Public Facilities Fees (PFF) to cover expenses associated with new or expanded public facilities and services. Plan check and permit fees will be generated based on the building construction valuation. Since industrial/warehouse development is proposed on the subject site, it is likely that no direct taxable sales activity and no sales tax revenue to the City would be generated, however, there is some indirect sales tax revenue assumed to be generated by employee spending while in the City of Stockton.

The project and site are consistent with the 2040 General Plan Land Use Map designation of Industrial. The project furthers General Plan policies aimed at attracting and retaining companies that offer high-quality jobs with wages that are competitive with the region and state (Goal LU-4), attracting employment and tax-generating businesses in the city (Policy LU-4.2), and prioritizing development and redevelopment of vacant, underutilized, and blighted infill areas (Policy LU-6.2).

On March 10, 2022, the Stockton Planning Commission held a duly noticed public hearing to consider the proposed project. A total of four (4) written comments in opposition were submitted just prior to the Planning Commission hearing. At the hearing, two (2) labor union representatives provided comments in support of the project during the public hearing. One (1) member of the public provided comments opposing the project during the public hearing. Additionally, three (3) written comments in opposition were submitted from representatives (Pruitt, Harper, Elizabeth) during the public hearing. The Planning Commission voted 6-0 (Rizvi absent) recommending City Council City of Stockton Page 2 of 9 Printed on 4/12/2022
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approval of the proposed Project.

DISCUSSION
Background
The subject site consists of nine (9) legal parcels identified as Assessor’s Parcel Numbers 179-220- 10; -11; -12; -13; -16; -17; 18; -19; and -24 and is located on the south of Mariposa Road and east of the terminus of Clark Drive and Marfargoa Road, presently within the jurisdiction of the County of San Joaquin (Attachment A - Location Map and Aerial Photo). The site is bounded to the:
· North by rural residential homes and across Mariposa Road by industrial development located on the County of San Joaquin; and
· West of the site along Marfargoa Road and Clark Drive by predominantly rural residential; and · South by lands under development for industrial warehouse projects within the City of Stockton; and
· East by three rural residences and mostly vacant agricultural lands located in the County of San Joaquin.

As the subject site abuts the incorporated limits of the City of Stockton, there is no Zoning Map designation provided for the subject properties. Zoning Map designations for properties located in the city adjacent to the site and referenced above are identified at Attachment B - Zoning Map. The 2040 General Plan Land Use Map designates the subject site as Industrial (Attachment C - General Plan Land Use Map).

Project Description
Greenlaw Partners, LLC, has applied for all required entitlements to establish an industrial development south of Mariposa Road (Attachment D - Project Plans). The parcel is in the unincorporated county, abutting the City of Stockton limits.

The project totals approximately 203.48 acres and would be developed as an industrial development with the potential for a total of seven (7) buildings for a combined square footage of 3,616,870 square feet in floor area, along with parking areas, vehicular access, and storm drainage retention.

Access to the proposed project would be from two (2) driveways proposed along the project frontage of Mariposa Road in the northeastern portion of the project site. The southernmost of the two driveways would provide the main access to the project site, leading to most of the proposed buildings. The northernmost driveway would provide access to the two northernmost buildings proposed on the site. The project would include restriping the Mariposa Road frontage to accommodate turn pockets and acceleration/deceleration lanes and traffic signalization. Additional emergency vehicle access (EVA) is provided into the site from Marfargoa Road and Clark Drive, however these access points are limited to first responders and accessed via a locked gate operable only by first responders.

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The proposed industrial development is a “Permitted” use under the proposed IL pre-zoning and would not require additional discretionary action. Provision of utility service to the project will require off-site improvements. These improvements will be subject to the review and approval of the City Municipal Utilities and Public Works departments and a review of their consistency with adopted wastewater, water, and stormwater master plans.

The proposed industrial warehouse uses are consistent with the existing General Plan designation and proposed pre-zoning of the site; the necessary development approvals are within the range of probable development-related activities considered in the EIR.

ANALYSIS
To develop the industrial park, the City Council is asked to certify the EIR, Prezone the subject site to Industrial, Limited (IG) Zone, adopt a Development Agreement, and authorize the filing of an annexation application with LAFCo. Each request and analysis are provided below.

Environmental Clearance
Pursuant to CEQA Guidelines section 15064, the City Council must consider the EIR prior to acting on the project. As reflected in the Proposed Resolution, certification of the EIR is presented, including adoption of a corresponding Statement of Overriding Considerations and Mitigation Monitoring and Reporting Program (MMRP).

An EIR has been prepared for the project, in accordance with the CEQA. Sections 15090 through 15093 of the CEQA Guidelines outline procedures for decision making by the Lead Agency (the City of Stockton) when an EIR has been prepared. A Notice of Preparation was published for agency and public review during a 30-day period starting on December 14, 2020. Comments received were then considered in the preparation of a Draft EIR that was circulated for a 45-day public review period beginning on August 24, 2021, and ending October 7, 2021 (Attachment E - Draft EIR).

Before taking action on the project, the City must first certify that the EIR is adequate under CEQA.

Then, in conjunction with its decision on the project, the City must make specific findings with respect to each of the significant environmental effects identified in the EIR. Guidelines for the certification of an EIR (CEQA Guidelines Section 15090) require that the Lead Agency certify that 1) the Final EIR has been completed in compliance with CEQA, 2) that the Final EIR was presented to the decisionmaking body of the Lead Agency, and the decision-making body reviewed and considered the information contained in the Final EIR prior to a decision on the project, and 3) that the Final EIR reflects the Lead Agency’s independent judgment and analysis.

The EIR is intended by CEQA to be an informational document (CEQA Guidelines Section 15121).

Decision-making on the project in relation to its environmental impacts is reserved to the Lead Agency and any Responsible Agencies with approval authority over the project. Consequently, information in the EIR does not limit the Lead Agency’s ultimate discretion on the project, but as noted, the Lead Agency must address each significant effect identified in the EIR in written findings before they approve the project, or portions of the project (CEQA Guidelines Section 15091). These findings are contained in a separate document (CEQA Findings and Mitigation Monitoring/Reporting Program) that accompanies this Final EIR.

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In the event that the City wishes to approve a project without providing substantial mitigation for all its significant impacts of the project (i.e., if the second or third finding options are utilized), then CEQA Guidelines Section 15093 allows the decision-makers to balance the project’s benefits against its unavoidable environmental risks. This decision must be documented in a Statement of Overriding Considerations and adopted by the project decision-makers. The CEQA findings for the project, as noted above, include a Statement of Overriding Considerations.

As a part of the project consideration and approval process described above, the City Council must also adopt a Mitigation Monitoring and/or Reporting Program (MMRP) (CEQA Guidelines Section 15097). The mitigation monitoring/reporting program is required to ensure that the mitigation measures and project revisions identified in the EIR are implemented. The measures and revisions described in the EIR are fully enforceable through permit conditions, agreements, or other measures.

The mitigation monitoring/reporting program for this project is contained in a separate document that accompanies this Final EIR.

The Draft EIR identified potentially significant effects under several topic areas, many of which are discussed below:

Aesthetics and Visual Resources: There are no significant scenic vistas or scenic resources on the Project site. The project has the potential to introduce light and glare, site improvements, site structures, landscaping, that would be designed in conformance to the City of Stockton Municipal Code, which is designed to minimize impacts to the public.

Agricultural Resources: The project would result in conversion of Farmland to industrial use.

The project would be required to participate in the City’s Agricultural Land Mitigation Program, which would provide partial compensation for loss of agricultural lands. This issue was addressed in the Envision Stockton 2040 General Plan EIR.

Air Quality: The project has the potential to exceed Air Pollution Control District significance standards. All feasible mitigation measures have been included in the EIR, but since their effectiveness cannot be adequately quantified, this impact would remain significant after mitigation
Biological Resources: Although no biological resources have been identified on-site, potentially suitable habitat for special status species is present on the site and would be impacted by proposed development. Mitigation is identified to ensure no such resources are significantly impacted by development of the vacant site. The applicant has agreed to participate in the San Joaquin Multi Species Habitat Conservation Plan (SJMSCP).

Compliance with the SJMSCP ensures potentially significant effects to biological resources are reduced to a less than significant level. Additionally, trees will also be removed outside of bird nesting seasons or, if within the nesting season, a biologist will complete a survey to ensure no protected migratory bird nests are present. Development would affect wetlands along North Little John Creek, but these impacts would be mitigated through existing permitting processes.

The project would involve removal of Heritage Oak Trees, which will be mitigated through the City’s permitting program.

Cultural Resources/Tribal Cultural Resources: No archaeological or historical resources were identified on the site, but there is potential for discovery of buried cultural resources, including those related to Native Americans. If cultural resources or human remains are accidentally City of Stockton Page 5 of 9 Printed on 4/12/2022
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uncovered, all work will cease until their significance is evaluated and treated in conformance with CEQA. SMC Section 16.36.050 (Cultural Resources) provides additional code language regarding historical resources, archaeological resources, and human remains if found on site.

Geology and Soils: There are no active or potentially active faults or other geologic hazards within or near the Project site. Construction activities on site have the potential to loosen the soil, leaving it exposed to wind and water erosion, however a Project at the site would be required to obtain a permit from the City of Stockton which will have conditions that will reduce soil erosion impacts. Additionally, if any paleontological resources are encountered during construction, all construction activities within a 50’ radius of the encounter shall be immediately halted until a qualified paleontologist can evaluate them and follow the protocol set forth in the Mitigation Monitoring and Reporting Program (MMRP).

Greenhouse Gas Emissions: There are potentially significant impacts related to greenhouse gas emissions for the Project, as identified in the EIR, which can be mitigated by implementing Air Quality Improvement Measures, such as compliance with applicable State and San Joaquin Valley Air Pollution Control District rules and regulations, as well as following the best practices identified in the City of Stockton Climate Action Plan.

Noise: Noise generated by project traffic on-site and along Mariposa Road would involve exceedance of City noise standards in existing residential areas near the project site. The project would include noise barriers such as berms and/or walls between the project and nearby residences. Noise impacts along Mariposa Road cannot be mitigated to a less than significant level. Noise resulting from construction activities could temporarily affect nearby residences. Identified mitigation will limit construction to between 7 a.m. to 10 p.m. Monday through Friday and 7 a.m. to 6 p.m. on Saturday and Sunday, if equipment is to be used near noise-sensitive land uses.

Transportation: The project would involve significant effects on Vehicle Miles Traveled (VMT) and would require certain roadway improvements to maintain City Level of Service Standards.

Mitigation measures would partially mitigate, but not eliminate, VMT impacts. Recommended transportation improvements would address Level of Service deficiencies.

By the conclusion of the Draft EIR review period, three (3) comment letters were received by the City.

After the close of the review period, an additional three (3) comment letters were received. Pursuant to CEQA Guidelines Section 15088, all substantive comments are provided responses in the Final EIR (Attachment F - Final EIR). None of the comments received required any changes to the impact analysis or additional mitigation measures than those already identified in the Draft EIR, as no new information was provided that causes changes or reevaluation of the existing technical studies prepared.

Pursuant to CEQA Guidelines Section 15092, the City Council must consider the EIR prior to acting on the project. As reflected in the attached Proposed Resolution, certification of the EIR is presented, including adoption of a corresponding Mitigation Monitoring and Reporting Program (MMRP), findings, and a Statement of Overriding Considerations.

Pre-zone
Since the project site is presently located within the County of San Joaquin, annexation must occur City of Stockton Page 6 of 9 Printed on 4/12/2022
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and be preceded by “Pre-zoning” it through a Zoning Map Amendment. The project, therefore, includes a request to Pre-zone the site to Industrial, Limited (IL) Zone (Attachment G - Pre-zone Description).

The 2040 General Plan Land Use Map designates the project site as Industrial. Pursuant to Table 2-1 (General Plan Relationship to Development Code) of the General Plan, the IL Zone is compatible with the General Plan Land Use Map designation of Industrial. As reflected in the Proposed Resolution, all necessary findings can be made to support the proposed Pre-zone action.

Upon approval of the Annexation by (LAFCo), the Zoning Map Amendment would become effective and applicable.

Annexation
As the project site is presently located within the jurisdiction of San Joaquin County, the applicant has requested annexation of the project site into the City of Stockton. Pursuant to SMC Section

16.212.050(C)(1), the City Council is the Review Authority for annexation requests upon recommendation from the Development Review Committee (DRC). On March 28, 2022, the DRC forwarded, after considering a City Services Plan (Attachment H - City Services Plan), an approval recommendation for the annexation request.

The project site is located within the City’s Sphere of Influence and as discussed, designated Industrial by the General Plan Land Use Map. The area proposed for annexation includes the project area, and adjacent public roadway segments along Mariposa Road (Attachment I - Annexation Map).

If approved by City Council, the City Manager would be authorized to file an annexation application with (LAFCo).

Development Agreement
A Development Agreement (DA) is being requested with the proposed project that identifies a range of developer and City obligations and responsibilities for how the Project development may occur in the coming years. (Attachment J - Development Agreement). The DA addresses issues such as maximum building heights, infrastructure construction, payment of applicable fees, and similar issues. As a benefit to the greater south Stockton Community, the Developer is agreeing to fund the preparation of a fire service area study to initiate the formation of a new Community Facilities District, to be applied to similar new non-residential development sites, to finance the construction of a new fire station and provide on-going staffing services. The Developer will fund up to $3 million to go towards the construction of the new fire station and contribute to the ongoing tax to fund operations of the fire station. The Draft Development Agreement is included as an Exhibit to the Development Agreement Ordinance.

Development Permits
As of the writing of this staff report, there have been no subsequent applications made for physical development of the site beyond the conceptual site plan evaluated in the EIR. Should an application be made to develop the site, it would be required to adhere to the conditions of approval and mitigation and monitoring reporting plan adopted by the City Council, as well as a comprehensive City of Stockton Page 7 of 9 Printed on 4/12/2022
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review and approval through Site Plan Review and Design Review.

Municipal Service Review
The General Plan illustrates the City’s anticipated 20-year growth within the approved planning boundaries. State law requires the City to prepare a Sphere of Influence and Municipal Service Review (SOI/MSR) report to assess services (fire, police, schools, utilities, etc.) for the anticipated General Plan growth. The SOI/MSR includes a section highlighting the City’s anticipated 10-year growth through pending project approvals and areas of interest. As the proposed annexation was not anticipated in the SOI/MSR 10-year Planning Horizon, the Applicant has proposed changes to include the Project as part of that analysis. The City’s SOI/MSR is included as Attachment L and included as Exhibit 4 to the Resolution to approve the Annexation, Detachment of Rural Fire Services, and amend the adopted Sphere of Influence and Municipal Service Review report.

PUBLIC COMMENT
As the Project was required to prepare an EIR, there have been significant public outreach efforts required during the CEQA process.

A Notice of Preparation (NOP) was distributed to the public for review and comment on December 14, 2020. This initial noticing period ran from December 14, 2020, through January 14, 2021, and concluded with a virtual public scoping meeting on January 5, 2021, in which five (5) members of the public attended, in addition to city staff and the applicant team. There was one (1) public comment related to access into their private property.

The City prepared a Draft EIR and circulated that draft for public review and comment starting August 24, 2021 through October 7, 2021. The City received six (6) comment letters from interested parties during that process. The Final EIR has been prepared pursuant to the requirements of CEQA and the CEQA Guidelines, which culminates the public review process of the environmental document, and includes all correspondence received to-date, as well as the Notice of Availability posted at the San Joaquin County Clerk’s office, the distribution list for the EIR public notices, the Notice of Completion, and other material related to the public review of the EIR.

Throughout the CEQA process, community members in the adjacent neighborhood to the direct west have been in communication with staff regarding status of the environmental documents and timing of the public hearing process. Staff has also received multiple public records requests for all documentation related to the project from multiple groups.

Planning Commission
On March 10, 2022, the Stockton Planning Commission recommended that the City Council approve the proposed Project. A total of four (4) written comments were submitted just prior to the Planning Commission hearing. At the hearing, the applicant provided a brief presentation after Staff’s presentation. Two (2) union representatives provided comments in support of the project during the public hearing. One (1) member of the public provided comments opposing the project during the public hearing. Additionally, three (3) written comments were submitted (Pruitt, Harper, Elizabeth) during the public hearing. Comments were generally directed to the potentially significant environmental effects that were analyzed and addressed in the EIR. Staff and the environmental City of Stockton Page 8 of 9 Printed on 4/12/2022
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preparer’s team provided clarity and response in the meeting. The Planning Commission voted 6-0 (Rizvi absent) approving a recommendation to the City Council to certify the EIR, including a Statement of Overriding Considerations and adoption of a Mitigation and Monitoring Reporting Program. The Planning Commission also approved a recommendation that the City Council adopt an Ordinance for the Pre-zoning of APNs 179-220-10; -11; -12; -13; -16; -17; -18; -19-; -24, to Industrial, Limited (IL), and a Development Agreement. (Attachment K - Planning Commission Resolutions).

Construction of the Project is contingent on City Council and LAFCo approval, and subsequent Site Plan Review and Design Review through the Planning Division of the Community Development Department.

Public Notice
On April 8, 2022, notice for the City Council public hearing for this request was published in The Record and mailed notice was sent to all property owners within a 300-foot radius, interested parties, and local agencies, at least ten days prior. As of the writing of this staff report, no written comments have been submitted.

FINANCIAL SUMMARY
All application fees were paid to cover staff time for processing the requested actions. According to the City Services Plan (Attachment H), the proposed project will result in a positive effect on the City to cover expenses associated with new or expanded public facilities and services as a result of the collection of one-time utility connection and Public Facilities Fees (PFF) estimated at $5,997,979.

Other plan check and permit fees will be generated based on construction valuation.

In addition to the immediate permit fee revenue, the City Services Plan (Attachment H) estimates that the long-term result of the fully completed and annexed project will primarily increase annual property taxes and some minor sales tax revenue by a total of approximately $1,624,287 in the first year. The annexed area is estimated to introduce an annual increase of $900,106 in expenditures on city resources in the first year.

Lastly, the Development Agreement (Attachment J) will require the formation of a Community Facilities District (CFD) which will provide funding from the development for the construction, staffing, equipment, and maintenance for a fire station to serve the annexed area. The estimated cost of the station is $10 million with $3 million in ongoing annual staffing, equipment, and maintenance costs.

Attachment A - Location Map and Aerial Photo
Attachment B - Zoning Map
Attachment C - General Plan Land Use Map
Attachment D - Project Plans
Attachment E - Draft EIR
Attachment F - Final EIR
Attachment G - Prezone Description
Attachment H - City Services Plans
Attachment I - Annexation Map
Attachment J - Development Agreement
Attachment K - Planning Commission Resolutions
Attachment L - MSR 10-Year Horizon Exhibit
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City of Stockton, CA
January 31, 2022 Locati on Map and Aerial Photo
Property Information
Property ID 17922019-109393
Location 5110 E MARIPOSA RD
Owner

MAP FOR REFERENCE ONLY

NOT A LEGAL DOCUMENT
City of Stockton, CA makes no claims and no warranties, expressed or implied, concerning the validity or accuracy of the GIS data presented on this map.

Geometry updated 01/19/2022
Data updated 01/03/2022
Print map scale is approximate.

Critical layout or measurement
activities should not be done using
this resource.
1" = 2104.9041695198844 ft
Attachment A 532
City of Stockton, CA
January 31, 2022 Zoning Map
Property Information
Property ID 17922019-109393
Location 5110 E MARIPOSA RD
Owner

MAP FOR REFERENCE ONLY

NOT A LEGAL DOCUMENT
City of Stockton, CA makes no claims and no warranties, expressed or implied, concerning the validity or accuracy of the GIS data presented on this map.

Geometry updated 01/19/2022
Data updated 01/03/2022
Print map scale is approximate.

Critical layout or measurement
activities should not be done using
this resource.
1" = 2104.9041695198844 ft
Attachment B 533
Map Theme Legends
Zoning
City of Stockton, CA Zoning Data

COMMERCIAL AUTO DISTRICT (CA)

DOWNTOWN COMMERCIAL (CD)

GENERAL COMMERCIAL (CG)

LARGE SCALE COMMERCIAL (CL)

NEIGHBORHOOD COMMERCIAL (CN)

OFFICE COMMERCIAL(CO)

GENERAL INDUSTRIAL(IG)

LIMITED INDUSTRIAL (IL)

PORT (PT)

LOW DENSITY RESIDENTIAL (RL/P)

MEDIUM DENSITY RESIDENTIAL (RM/P)

HIGH DENSITY RESIDENTIAL (RH/P)

MIXED USE (MX)

OPEN SPACE (OS)

PUBLIC FACILITIES (PF)

UNIVERSITY/COLLEGE (UC)

RIGHT OF WAY (ROW)
Attachment B
534
City of Stockton, CA
January 31, 2022 Genera l Plan Land Use Map
Property Information
Property ID 17922019-109393
Location 5110 E MARIPOSA RD
Owner

MAP FOR REFERENCE ONLY

NOT A LEGAL DOCUMENT
City of Stockton, CA makes no claims and no warranties, expressed or implied, concerning the validity or accuracy of the GIS data presented on this map.

Geometry updated 01/19/2022
Data updated 01/03/2022
Print map scale is approximate.

Critical layout or measurement
activities should not be done using
this resource.
1" = 2104.9041695198844 ft
Attachment C 535
Map Theme Legends
General Plan Map
City of Stockton GIS data

ECONOMIC AND EDUCATION ENTERPRISE

RESIDENTIAL ESTATE

LOW DENSITY RESIDENTIAL

MEDIUM DENSITY RESIDENTIAL

HIGH DENSITY RESIDENTIAL

ADMINISTRATIVE-PROFESSIONAL

COMMERCIAL

INDUSTRIAL

INSTITUTIONAL

OPEN SPACE/ AGRICULTURE

PARKS AND RECREATION

MIXED USE

RIGHT OF WAY
Attachment C 536
BaseCamp
Figure 2-2
BaseCamp Environmental CONCEPTUAL SITE PLAN
SOURCE: Ware Malcomb
Attachment D 537

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*(%#%

!
)#%
!

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Due to the size of the electronic file, the complete Draft Environmental Impact Report for the Mariposa Industrial Park Project may be viewed at the following weblink:
http://www.stocktonca.gov/files/MariposaAnnexation_PublicReviewDraftEIR.pdf 538
Z:\2020\A20631\DOCS\SURVEY DOCS\LEGAL DESCRIPTION\A20631-LD MARIPOSA INDUSTRIAL PARK - ANNEX.doc
LAFCO __‐__
MARIPOSA INDUSTRIAL PARK ANNEXATION
TO THE CITY OF STOCKTON
EXHIBIT “A” - Annexation Legal & Prezoning Description
ALL THAT CERTAIN REAL PROPERTY SITUATE IN THE UNINCORPORATED AREA OF SAN JOAQUIN COUNTY, STATE OF CALIFORNIA, DESCRIBED AS FOLLOWS:

BEING A PORTION OF SECTION 59 AND 69 OF THE C. M. WEBER GRANT, AS DESCRIBED IN THAT CERTAIN DOCUMENT RECORDED JANUARY 14, 2005, AS DOCUMENT NO. 2005‐010345, THAT CERTAIN DOCUMENT RECORDED NOVEMBER 12, 2008, AS DOCUMENT NO. 2008‐177643, THAT CERTAIN DOCUMENT RECORDED FEBRUARY 10, 2020, AS DOCUMENT NO. 2020‐017708 AND THAT CERTAIN DOCUMENT RECORDED DECEMBER 24, 2019, AS DOCUMENT NO. 2019‐151974 SAN JOAQUIN COUNTY RECORDS AND BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS:

BEGINNING AT A POINT AT THE SOUTHEAST CORNER PARCEL ONE OF THE LANDS OF HOGGAN ESTATES. LLC, AS DESCRIBED IN THAT CERTAIN DOCUMENT RECORDED JANUARY 14, 2005, AS DOCUMENT NO. 2005‐010345, SAN JOAQUIN COUNTY RECORDS, SAID POINT ALSO BEING ALONG THE EXISTING BOUNDARY OF THE STOCKTON CITY LIMIT LINE; THENCE ALONG THE SOUTHERLY BOUNDARY OF SAID PARCEL ONE AND ALSO ALONG THE EXISTING BOUNDARY OF THE STOCKTON CITY LIMIT LINE, (1) SOUTH 72° 09’ 06” EAST, 2410.37 FEET, TO THE SOUTHWEST CORNER OF SAID PARCEL ONE, SAID POINT ALSO BEING ALONG THE EASTERLY LINE OF THE “MAP OF SUBDIVISION NO. 4 CLARKADOTA FIG PLANTATIONS”, FILED IN BOOK 10 OF MAPS & PLATS, AT PAGE 38, SAN JOAQUIN COUNTY RECORDS; (2) THENCE LEAVING SAID EXISTING BOUNDARY OF THE STOCKTON CITY LIMIT AND RUNNING ALONG SAID EASTERLY LINE OF THE “MAP OF SUBDIVISION NO. 4 CLARKADOTA FIG PLANTATIONS” NORTH 17° 09’ 06” WEST, 3940.90, TO THE NORTHEAST CORNER THEREOF, BEING A POINT ON THE NORTHERLY LINE OF SAID SECTION 59 OF THE C. M. WEBER GRANT,
(3) THENCE ALONG SAID NORTHERLY LINE OF SECTIONS 59 AND 69 OF SAID C. M. WEBER GRANT, NORTH 72° 09’ 06” EAST, 1691.35 FEET TO A POINT ON THE SOUTHWESTERLY RIGHT OF WAY LINE OF MARIPOSA ROAD,
(4) THENCE ALONG SAID SOUTHWESTERLY RIGHT OF WAY LINE, SOUTH 59° 53’ 28” EAST, TO THE WESTERLY LINE OF THE LANDS OF OCHOA, AS DESCRIBED IN THAT CERTAIN DOCUMENT RECORDED SEPTEMBER 12, 2008, AS DOCUMENT NO. 2008‐149798, SAN JOAQUIN COUNTY RECORDS,
(5) THENCE ALONG SAID WESTERLY LINE OF OCHOA THE FOLLOWING TWO COURSES:

SOUTH 71° 52’ 14’’” EAST, 282.52 FEET, AND
(6) SOUTH 59° 48’ 18” WEST, 170.97 FEET, TO A POINT ON THE EASTERLY LINE OF THE LANDS OF MARIPOSA ROAD OWNERS, LLC, AS DESCRIBED IN THAT CERTAIN DOCUMENT Attachment G 539
Z:\2020\A20631\DOCS\SURVEY DOCS\LEGAL DESCRIPTION\A20631-LD MARIPOSA INDUSTRIAL PARK - ANNEX.doc
RECORDED DECEMBER 24, 2019, AS DOCUMENT NO. 2019‐151974, SAN JOAQUIN COUNTY RECORDS,
(7) THENCE ALONG SAID EASTERLY LINE OF THE LANDS OF MARIPOSA ROAD OWNERS, LLC, SOUTH 17° 50’ 54” EAST, 1065.25 FEET, TO THE NORTHWESTERLY CORNER OF THE LANDS OF THE TOLENTINO TRUST AS DESCRIBED IN THAT CERTAIN DOCUMENT RECORDED FEBRUARY 25, 2019, AS DOCUMENT NO. 2019‐019341, SAN JOAQUIN COUNTY RECORDS,
(8) THENCE ALONG THE NORTHERLY LINE OF SAID LANDS OF THE TOLENTINO TRUST, SOUTH 72° 29’ 06” WEST, 301.20 FEET, TO THE NORTHWESTERLY CORNER THEREOF, (9) THENCE ALONG THE WESTERLY LINE OF THE LANDS OF THE TOLENTINO TRUST, AND ALONG THE WESTERLY LINE OF THE LANDS OF LOTT TRUST, AS DESCRIBED IN THAT CERTAIN DOCUMENT RECORDED AUGUST 11, 2008, AS DOCUMENT NO. 2008‐130946, SAN JOAQUIN COUNTY RECORDS, SOUTH 17° 50’ 54” EAST, 717.85 FEET, TO THE SOUTHWESTERLY CORNER OF SAID LANDS OF LOTT TRUST,
(10) THENCE ALONG THE SOUTHERLY LINE OF THE LANDS OF LOTT TRUST, NORTH 72° 09’ 06” EAST, 301.20 FEET, TO THE SOUTHEASTERLY CORNER THEREOF, ALSO BEING A POINT ON THE EASTERLY LINE OF THE LANDS OF HOGGAN ESTATES. LLC, AS DESCRIBED IN THAT CERTAIN DOCUMENT RECORDED NOVEMBER 11, 2008, AS DOCUMENT NO. 2008‐177643, SAN JOAQUIN COUNTY RECORDS,
(11) THENCE ALONG SAID EASTERLY LINE OF THE LANDS OF LEWIS, AND THE EASTERLY LINE OF THE LANDS OF HOGGAN ESTATES, LLC, AS DESCRIBED IN THAT CERTAIN DOCUMENT RECORDED JANUARY 14, 2005, AS DOCUMENT NO. 2005‐010345, SAN JOAQUIN COUNTY RECORDS, SOUTH 17° 50’ 24” EAST, 1077.85 FEET, TO THE POINT OF BEGINNING.

CONTAINING 205.78 ACRES, MORE OR LESS.

FOR ASSESSMENT PURPOSES ONLY. THIS DESCRIPTION OF LAND IS NOT A LEGAL PROPERTY DESCRIPTION AS DEFINED IN THE SUBDIVISION MAP ACT (GOVERNMENT CODE SECTION 66410) AND MAY NOT BE USED AS THE BASIS FOR AN OFFER FOR SALE OF THE LAND DESCRIBED.

EXHIBIT “B” A PLAT IS ATTACHED HERETO AND BY THIS REFERENCE MADE A PART HEREOF.

KIER & WRIGHT CIVIL ENGINEERS & SURVEYORS, INC.

THIS DESCRIPTION WAS PREPARED BY ME OR UNDER MY DIRECTION.

DEAN A. JURADO, P.L.S. NO. 9032 DATE
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Attachment F
548
BaseCamp
Figure 1-1
BaseCamp Environmental REGIONAL LOCATION MAP
Humboldt
S Bb
Kern San Luis
Obispo
Inyo
Tulare
Kings Monterey
Fresno
San
Benito
Mono
Madera
Mariposa
Tuolumne
Calaveras
Amador
El Dorado
Sacramento
Alpine
Santa
Clara
San
Joaquin
Contra
Costa
Merced
Marin
Napa
Yolo
Solano
Sutter
Placer
Nevada
Sierra
Plumas
Glenn Butte
Lake
Mendocino
Shasta Lassen
Tehama
Trinity
Colusa Yuba
Sonoma
Stanislaus Alameda
Santa Cruz
San Mateo
San Francisco
Ke San Luis
Obispo
Inyo
Tulare
Kings y

PROJECT LOCATION
Attachment F
549
Figure 1-2
USGS MAP BaseCamp Environmental
SOURCE: USGS Quadrangle Map, Stockton East, 2018. The project site is located in Township 1 N, Range 7 East and Sections 59 and 69 of the USGS Map.

PROJECT SITE
Attachment F
550
BaseCamp
Figure 1-3
BaseCamp Environmental AERIAL PHOTO
BaseCamp
SOURCE: Google Maps

PROJECT SITE
Attachment F
551
Figure 1-4
PROJECT AREA INDUSTRIAL DEVELOPMENT BaseCamp Environmental LEGEND
Existing Industrial
Approved Industrial
Institutional

PROJECT SITE
Attachment F
552

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555

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Figure 2-1
BaseCamp Environmental PROPOSED ANNEXATION AND PREZONING BaseCamp

PROPOSED ANNEXATION

AND PREZONING BOUNDARY
PROPOSED PREZONING: AG-40
(COUNTY) TO IL LIGHT INDUSTRIAL

EXISTING

CITY LIMITS
EXISTING ZONING: IL - LIGHT INDUSTRIAL
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558
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Figure 2-2
BaseCamp Environmental CONCEPTUAL SITE PLAN
BaseCamp
SOURCE: Ware Malcomb
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Attachment F
574

arb.ca.gov 1001 I Street • P.O. Box 2815 • Sacramento, California 95812 (800) 242-4450 October 8, 2021
Nicole Moore
Senior Planner
City of Stockton Community Development Department
345 N. El Dorado
Stockton, California 95202
[email protected]
Dear Nicole Moore:

Thank you for providing the California Air Resources Board (CARB) with the opportunity to comment on the Mariposa Industrial Park Project (Project) Draft Environmental Impact Report (DEIR), State Clearinghouse No. 2020120283. The Project is proposed within the City of Stockton (City), California, which is the lead agency for California Environmental Quality Act (CEQA) purposes.

As part of the Project, the City plans to annex approximately 203 acres of land from the County of San Joaquin. Once annexed, the City will rezone the Project site from General Agriculture to Industrial Limited to construct and operate seven light industrial buildings totaling 3,616,870 square feet. Although the Project’s future occupant(s) are unknown, the City expects that the proposed light industrial buildings would be occupied by a high-cube warehouse operator(s). Anticipated uses of the proposed light industrial buildings may include transload, short-term storage, cold storage, fulfillment center, or parcel hub uses.

Once in operation, the Project is expected to generate 12,370 daily vehicle trips; the DEIR did not specify the number of daily truck trips out of the total daily vehicle trips that would serve the Project.

If approved, the Project will expose nearby communities to elevated levels of air pollution beyond the existing baseline emissions at the Project site. Residences are located north, east, and west of the Project, with the closest homes located within 50 feet of the Project’s western boundary. In addition to residences, Hamilton Elementary School, Monroe Elementary School, and Montezuma Elementary School are located within 2 miles of the Project. These residences are already exposed to toxic diesel particulate matter (diesel PM) emissions generated by existing industrial buildings, vehicle traffic along State Route 99 (SR99), and rail traffic along existing rail lines.

The State of California has placed additional emphasis on protecting local communities from the harmful effects of air pollution through the passage of Assembly Bill 617 (AB 617) (Garcia, Chapter 136, Statutes of 2017). AB 617 is a significant piece of air quality legislation that highlights the need for further emission reductions in communities with high exposure burdens, like those in which the Project is located. Diesel PM emissions generated during the construction and operation of the Project would negatively impact neighboring communities, which are already impacted by air pollution from existing industrial buildings, vehicle traffic along SR-99, and local rail traffic.

Attachment F
575

Nicole Moore
October 8, 2021

Page 2 ends

City Council and Concurrent AuthoritiesApril 19, 2022

City Council and Concurrent Authorities
April 19, 2022