Cities Index.
Agenda packet

City Council and Concurrent Authorities
November 14, 2023

Document
Agenda packet
Meeting
November 14, 2023
Body
City Council and Concurrent Authorities
Pages
38
Original file
40.5 MB
Text extracted from the city's file for reading and search. Open the original on www.stocktongov.com. That file is the official record.

EXHIBIT 2
180
Local Construction Contract -ST. FRANCIS ELECTRIC, LLC– PROJECT NO. WD22006 (Updated 04/24/23) It shall be a requirement under this agreement that any av ailable 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 lim
its 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 requir ed in this agreement may be sati sfied by a combination of primary and umbrella or excess insurance. Any umbrella or excess insurance shall contain or be endorsed to contai n a provision that such co verage 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 agreem ent) before the City of Stockton’s own insurance or self- insurance shall be called upon to protect it as a named insured.

All self-insured retentions (SIR) must be disclosed to the CITY’s Risk Management for approval and shall not reduce t he 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 cont ractor fails to obtain or maintain completed operations coverage as requir ed 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 Subcont ractors 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 ag ree 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

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EXHIBIT 2
181
Local Construction Contract -ST. FRANCIS ELECTRIC, LLC– PROJECT NO. WD22006 (Updated 04/24/23) and Insurance provisions will be furnished to the Subcontractor upon request. The General CONTRACTOR shall require all sub-cont
ractors 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 than permitted under the public poli cy 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 the City of Stockton, its offi cers, officials, 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 connect ed with the work performed, materials furnished, or services provided under this Agreemen t, or from any violation of any federal, State, or munici pal 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 br oad 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 C ontractor 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 gr eater 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 clai m against the City for damages which arise out of or are in any way co nnected with the work performed, materials furnished, or services provided under this Ag reement by Contractor or Contractor’s officers, agents, employees, vo lunteers or subcontractors. Contractor’s duties and obligations to defend the City shall apply regardless of whethe r or not the issue of the City’s liability, breach of this Agreement, or other obligation or fault has been determined.

Contractor shall be immediat ely 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, othe r witness fees, document repr oduction costs, arbitration fees, and, if after final judgm ent an appeal is pursued, all of such costs for the appeal.

At the conclusion of the claim, if there is any determinati on or finding of sole active negligence or willful misconduct on the part of the City, Cit y will then reimburse Contractor for amounts paid in excess of Contractor’s pr oportionate 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

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EXHIBIT 2
182
Local Construction Contract -ST. FRANCIS ELECTRIC, LLC– PROJECT NO. WD22006 (Updated 04/24/23) parties that this reimbursemen t provision assures Contractor is not obligated to defend or indemni
fy City in an amount greater than provided for under California law, including, without limitation, California Civil C ode sections 2782, 2782.6, and 2782.8.

With the exception that this section sh all in no event be construed to require indemnification by Contractor to a greater extent than pe rmitted under the public policy of the State of California, and in addition to the other i ndemnity obligations in this Agreement, Contractor shall indemnify, def end, and hold harmless the City of Stockton, its officers, officials, empl oyees, and volunteers from and against all claims, losses, expenses, and costs including, but not limited to, attorneys’ fees, arising out of any claim brought against the City by an employee, office, agent, or volunteer of 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 th e amount or type of damages, compensation, or benefits payable by or for the Contract or 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 responsibil ity 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, th e 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 unconsti tutional, such decision shall not affect the validity of the remaining portions of this indemnification.

5. STANDARD PLANS A ND SPECIFICATIONS. The performance of said work and the furnishing of said materials shall be executed in ac cordance 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.

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EXHIBIT 2
183
Local Construction Contract -ST. FRANCIS ELECTRIC, LLC– PROJECT NO. WD22006 (Updated 04/24/23)

6. WORKING DAYS. This work shall be dilig
ently prosecuted to completion
before the expiration of 20 WORKING DAYS begi nning 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 cont ract in all parts and requirements, is not finished or completed within the number of days as set fo rth, 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 TWO THOUSAND SIX HUNDRED AND NO/100 DOLLA RS ($2,600) per day for each and every calendar day's delay in finishing the work in e xcess of the number of days prescribed; and CONTRACTOR agrees to pay said liquidated damages as herein provided, and in case the same are not paid, agrees that CITY, may deduct the amount thereof from any monies due or that may become due CONTRACTOR under the contract.

It is further agreed that in case the work called for under the contract is not finished and completed in all parts and requirements within the number of days as specified, the CITY shall have the right to increase the number of days or not, as may seem best to serve the interest of CITY, and if the CITY decid es to increase the said number of days, the CITY shall further have the right to char ge 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 ov erhead expenses which are directly chargeable to the contract, and which accrue during the period of such extension, whichever is greater, except the cost of fi nal surveys and preparation of final estimate shall not be included in such charges.

A working day shall not include, nor sha ll CONTRACTOR be assessed with liquidated damages nor the additional cost of engineer ing 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, fl oods, epidemics, quarantine restri ctions, strikes, and freight embargoes and subject to approval by the Direc tor 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 beginni ng 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.

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EXHIBIT 2
184
Local Construction Contract -ST. FRANCIS ELECTRIC, LLC– PROJECT NO. WD22006 (Updated 04/24/23)

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 employme nt of persons or in the prov ision 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 ben
efits o f, or be subjected to
discrimination under any pr ogram or activity receiving federal financial assistance.” (42 USC Section 2000d)
http://www.dol.gov/oasam/regs/statutes/titlevi.htm.

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

AND HARASSMENT POLICY
The City of Stockton has a Discrimination and Harassment Polic y (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, investigat ing, and resolving complaints of discrimination and harassment in the workplace.
c. LABOR STANDARDS PROVIS IONS/CALIFORNIA LABOR CODE
The bidder shall understand that conditions
set forth in Chapter 1, Part 7,
Division 2 of the California Labor C ode 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, trav el time, and subsistence pay as provided for in Section 1773.1, apprenticeship or other training programs

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EXHIBIT 2
185
Local Construction Contract -ST. FRANCIS ELECTRIC, LLC– PROJECT NO. WD22006 (Updated 04/24/23) authorized by Section 3093 and similar pur poses applicable to the work to be done. CONTRACTOR performing the work under this contract shall obtain a copy of the wage rate determi nation and shall distribute copies to each subc
ontractor. As the wage determi nation for each craft reflects an expiration date, it shall be the prime CONTRACTOR and each subcontractor's responsibility to ensur e that the preva iling 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 co st of engineering, inspection, superintendence, and or other ov erhead expenses which are directly chargeable to the contract. Shoul d such work be undertaken at the request of the CITY, reimbursement wil l not be required. To conform strictly with the provisions of Division 2, Part 7, Chapter 1, Article 2, of the Labor Code of the Stat e 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 duri ng 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 t he 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 cont ract is awarded shall ensure 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 Comp liance Officer. It shall be the CONTRACTOR’S responsibility to obtain copies of the current prevailing wage rate determination for all subcontractors. Additionally, certified payroll records must be uploaded to the DIR website as required by labor code.

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EXHIBIT 2
186
Local Construction Contract -ST. FRANCIS ELECTRIC, LLC– PROJECT NO. WD22006 (Updated 04/24/23) iv. The CONT
RACTOR shall comply wit h the provisions established in Section 1777.5 of the Labor Code c oncerning the 1) certified approval by local joint apprenticeship commi ttees for the employment and training of apprentices, and 2) contri bution 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 fa ith effort to employ at least 50 percent of the workforce on this projec t from local residents, as measured by total labor work hours. Failure of any C
ONTRACTOR 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 moni toring their compliance with section

3.68.095.
f. SANCTIONS
Deliverables must conform with a ll applicable federal, state, and loca l
laws. Such conformity includes compliance with federal sanctions, and Contractor certifies that it has not and will not e ngage in prohibited transactions with sanctioned persons or entities.

CITY agrees:

8. COMPENSATION. To pay CONTRACTOR for the work herein
contemplated in the following manner: Progress payments will be made on or about the first day of each calendar month, in such sum as shall make the aggregate of payment up to such day equal to ninety-five percent (95%) of the proportional contract price, upon the basis of the progress certif icate 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 t he contract price not as aforesai d 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.

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EXHIBIT 2
187
Local Construction Contract -ST. FRANCIS ELECTRIC, LLC– PROJECT NO. WD22006 (Updated 04/24/23)

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 su ch extra work as may be determined by the Engineer to be required for t he 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 Specif ications 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 peri odically audit all charges made by CONTRACTOR to CITY for services under the contract. Upon request, CONTRACTOR agrees to furnish CITY, or a designated repr esentative, 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 rele vant information requested and shall permit CITY or its delegate access to its prem ises, upon reasonable not ice, during normal business hours for the purpose of intervie wing employees and inspecting and copying such books, records, accounts, and other material that may be relevant to a matter under investigation for the purpos e of determining compliance with this requirement.

CONTRACTOR further agrees to maintain such records for a period of three (3) years after final payment under the contract.
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EXHIBIT 2
188

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:

ELIZA R. GARZA

CITY CLERK
By: ____________ _
APPROVED AS TO FORM & CONTENT:

LORI M. ASUNCION

OFFICE OF THE CITY ATTORNEY
By:-------------

DEPUTY CITY ATTORNEY
CITY:

By: ____________ _

HARRY BLACK

CITY MANAGER
By:Ar
ST. F(!3,ANCIS ELECTRIC, LLC
47-2615956
Tax Identification No.

Local Construction Contract -ST. FRANCIS ELECTRIC, LLC- PROJECT NO. WD22006 (Updated 04/24/23)

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EXHIBIT 2 189
STREETLIGHT POLE REPLACEMENT FY 2022-23 S81
PROJECT NO. WD23006

BIDD ING SC HEDULE
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.

Item
1 2
3 5
6 Descripti on Unit
Mobilization 1
Traffic Control 1
Water Pollution Control 1
Remove Existing Streetlight Poles &
Equipment (Existing LED fixtures to be 21
reused),
Remove Existing Streetlight 3 Foundation
Install Type 15 Streetlight Foundation, 3 including Pull Box Install New Streetlight Pole with Mast
Arm (Reuse existing LED fixtures from 21
removed poles)
Qua ntity Unit price
LS $22, 330.00
LS $10, 000.00
LS $2 ,570.00
EA $ 3, 000.00
EA $ 3,5 00. 00
EA $5 ,400.00
EA $4,700.00
TOTAL BID $223, 300.00
BIDDER'S NAME St. Francis Electric, LLC.

Total Price
$22, 330.00
$1 0, 000. 00
$2 ,570. 00
$63, 000.00
$1 0,5 00.00
$16, 200.00
$98,700.00

EXHIBIT A

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EXHIBIT 2
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REV 2022-05-17
Exhibit B:

Insurance Requirements
C
ontractor shall procure and maintain for the duration of the contract, and for 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, his agents, representatives, employees, or subcontractors.

MIN

IMUM SCOPE AND LIMIT OF INSURANCE
C
overage shall be at least as broad as:

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

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

3. W
orkers’ 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. S
urety Bonds as described below.

I
f the contractor maintains broader coverage and/or higher limits than the minimums shown above, the City of Stockton requires and shall be entitled to the broader coverage and/or the higher limits maintained by the contractor. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City of Stockton.

S
elf-Insured Retentions
S
elf-insured retentions must be declared to and approved by the City of Stockton. 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

EXHIBIT B

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EXHIBIT 2
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REV 2022-05-17
either the named insured or City of Stockton. The CGL and any policies, including Excess liability policies, may not be subject to a self-insured retention (SIR) or deductible that exceeds $25,000 unless approved in writing by City of Stockton. Any and all deductibles and SIRs shall be the sole responsibility of Contractor or subcontractor who procured such insurance and shall not apply to the Indemnified Additional Insured Parties. City of Stockton may deduct from any amounts otherwise due Contractor to fund the SIR/deductible. Policies shall NOT contain any self-insured retention (SIR) provision that limits the satisfaction of the SIR to the Named Insured.

The policy must also provide that Defense costs, including the Allocated Loss Adjustment Expenses, will satisfy the SIR or deductible. City of Stockton reserves the right to obtain a copy of any policies and endorsements for verification.

Ot
her Insurance Provisions
T
he insurance policies are to contain, or be endorsed to contain, the following provisions:

1. T
he City of Stockton, it s 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 and automobiles owned, leased, hired, or borrowed by or on behalf of the Contractor.

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 both CG 20 10, CG 20 26, CG 20 33, or CG 20 38; and CG 20 37 forms if later revisions 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.

2. For
any claims related to this project, the Contractor’s insurance coverage shall be primary and non-contributory insurance coverage at least as broad as ISO CG 20 01 04 13 as respects the City of Stockton, its officers, officials, employees, and volunteers. Any insurance or self-insurance maintained by the City of Stockton, its officers, officials, employees, or volunteers shall be excess of the Contractor’s insurance and shall not contribute with it. This requirement shall also apply to any Excess or Umbrella liability policies. The City of Stockton does not accept endorsements limiting the Contractor’s insurance coverage to the sole negligence of the Named Insured. 3 . Each insurance policy required by this clause shall provide that coverage shall not be canceled, except with notice to the City of Stockton.

Claims Made Policies (Professional & Pollution only)

EXHIBIT B

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EXHIBIT 2
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REV 2022-05-17
If any coverage required is written on a claims-made coverage form:

1. T
he 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 cancelled 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.

Umb rella or Excess Policies
The Contractor may use Umbrella or Excess Policies to provide the liability limits as required in this agreement. This form of insurance will be acceptable provided that all of the Primary and Umbrella or Excess Policies shall provide all of the insurance coverages herein required, including, but not limited to, primary and non-contributory, additional insured, Self-Insured Retentions (SIRs), indemnity, and defense requirements. The Umbrella or Excess policies shall be provided on a true “following form” or broader coverage basis, with coverage at least as broad as provided on the underlying Commercial General Liability insurance. No insurance policies maintained by the Additional Insureds, whether primary or excess, and which also apply to a loss covered hereunder, shall be called upon to contribute to a loss until the Contractor’s primary and excess liability policies are exhausted.

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

Waiver of Subrogation
Contractor hereby agrees to waive rights of subrogation which any insurer of Contractor may acquire from Contractor by virtue of the payment of any loss.

Contractor agrees to obtain any endorsement that may be necessary to affect this

EXHIBIT B

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EXHIBIT 2
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REV 2022-05-17
waiver of subrogation. 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.

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 and a copy of the Declarations and Endorsements Pages of the CGL and any Excess policies listing all policy endorsements. All certificates and endorsements and copies of the Declarations & Endorsements pages are to be received and approved by the City of Stockton 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. 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.

Subcontractors
Contractor shall require and verify that all subcontractors maintain insurance meeting all requirements stated herein, and Contractor shall ensure that City of Stockton is an additional insured on insurance required from subcontractors. For CGL coverage, subcontractors shall provide coverage with a form at least as broad as CG 20 38 04 13.

Duration of Coverage
CGL & Excess liability policies for any construction related work, including, but not limited to, maintenance, service, or repair work, shall continue coverage for a minimum of 5 years for Completed Operations liability coverage. Such Insurance must be maintained and evidence of insurance must be provided for at least five (5) years after completion of the contract of work .

Surety Bonds
Contractor shall provide the following Surety Bonds:

1. Bid Bond

2. Performance Bond
3 . Payment Bond
4 . Maintenance Bond
T
he Payment Bond and the Performance Bond shall be in a sum equal to the contract price. If the Performance Bond provides for a one-year warranty a separate

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194
REV 2022-05-17
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 circumstances.

C
ertificate Holder Address
T
he address for mailing certificates, endorsements and notices shall be:

C
ity of Stockton
Its Officers, Officials, Employees and Volunteers
400 E Main Street, 3rd Floor – HR
Stockton, CA 95202

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195
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

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196
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 non­ employee by another employee, non-employee, supervisor, or manager for reporting, filing, testifying, assisting or participating in any manner in any investigation, proceeding, or hearing conducted by the employer or a federal or state enforcement agency.

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

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

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197
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)

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198
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

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EXHIBIT 2
199
Subject:

CITY OF STOCKTON, CALIFORNIA

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

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.

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200
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

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201
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 non­ employees shall report any such incidents occurring in the workplace, whether committed by coworkers, supervisors or managers, or third persons doing business with the City, such as customers or vendors, or other non-employees. If
comfortable doing so, an employee or non-employee who has a complaint of discrimination or harassment is encouraged to directly inform the person(s) engaging in the behavior that such conduct is offensive and insist the behavior to stop.
b. Employees and non-employees must immediately contact a supervisor or manager to register a complaint of discrimination or harassment, unless that supervisor or manager is the individual engaging in the unwanted behavior. In that case, the employee or non-employee may contact someone at the next supervisory level. If the employee or non-employee feels uncomfortable dealing directly with his or her immediate supervisor or manager, he or she may contact the department head, or the Director of Human Resources (or either of their designees) to register a complaint of discrimination or harassment.
c. Employees and non-employees may file a formal complaint of harassment or discrimination with their department head or

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202
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 non­ employee to cease the conduct.

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203
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

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204
Subject:

B.

CITY OF STOCKTON, CALIFORNIA

CITY MANAGER ADMINISTRATIVE DIRECTIVE
Directive No. HR-15 Page No.10 of 14
DISCRIMINATION AND Effective Date: Revised From:

HARASSMENT POLICY 7/27/09
5/1/2015 4/6/09
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

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205
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

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206
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)

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207

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

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208

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

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209

BOND FOR FAITHFUL PERFORMANCE

KNOW ALL MEN BY THESE PRESENTS:

That
we, ST. FRANCIS ELECTRIC, LLC a STATE OF
CALIFORNIA CORPORATION, as Principal and
, a corporation, organized and existing under the laws of the State of and duly authorized to transact business under the laws of the State of California, as Su rety, are held and firmly bound unto the City of Stockton, a municipal corpor ation, duly created and existing under and by virtue of the laws of the State of Californi a, as obligee, in the just and full sum of TWO HUNDRED TWENTY-THREE THOUSAND THREE HUNDRED AND 00/100 DOLLARS ($223,300), 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:

STREETLIGHT POLE REPLACEMENT FY 2022-23 SB1
(PROJECT NO.WD23006)
NOW, THEREFORE, if the above bounde d Principal, CONTRACTOR, Company or
Corporation or its subcontract or, shall well and truly perform the work contracted to be done under said contract, then this obligation to be null and vo id; 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,

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EXHIBIT 2
210
and consent by said Surety is hereby giv
en, and the said Surety hereby waives the
provisions of Sections 2819 and 2845 of the Civil Code of the State of California.

SIGNED AND SEALED on

APPROVED
AS TO SURETY: By:

P R I N C I P A L

S U R E T Y
APPROVED AS TO FORM & CONTENT:

LORI M. ASUNCION

OFFICE OF THE CITY ATTORNEY
B
y :

A T T O R N E Y - I N - F A C T
B
y :

DEPUTY CITY ATTORNEY

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

That
we, ST. FRANCIS ELECTRIC, LLC , a STATE OF CALIFORNIA
CORPORATION, as Principal and , corporation,
organized and existing under the laws of the State of and duly authorized to transact business under the laws of the State of California, as Surety, are held and firmly bound unto the City of Stockton, a municipal corporation, duly created and existing under and by virtue of the laws of the State of Californi a, and unto any and all material suppliers, persons, companies, or corporations furnishing materials, provisions, provender or other supplies used in, upon, fo r or about the performance of the work contemplated to be executed or performed under the contract hereinafter mentioned, and all persons, companies, or corporations rent ing 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 bot h work and materials, and whose claims have not been paid by the contractor, company or corporation in the just and full sum of TWO HUNDRED TWENTY-THREE THOU SAND THREE HUNDRED AND 00/100 DOLLARS ($223,300), in lawful money of the Un ited States of Americ a (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, wit h the CITY, to do and perform the following work, to-wit:

STREETLIGHT POLE REPLACEMENT FY 2022-23 SB1
(PROJECT NO. WD23006)
NOW, THEREFORE, if the abov e bounden Principal, CO NTRACTOR, 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 la bor done thereon of any kind, the Surety on

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212
this bond will pa
y the same, in an amount not exceeding the sum specified in this bond, provided that any and all claims hereunder shall be filed and pr oceedings 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 spec ifications agreed to between the said CONTRACTOR and the said CI TY and no forbearance on the part of the said CITY shall operate to relieve any sure ty 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.

S I G N E D A N D S E A L E D o n .

APPROVED AS
TO SURETY: By:

P R I N C I P A L

S U R E T Y
APPROVED AS TO FORM & CONTENT:

LORI M. ASUNCION

OFFICE OF THE CITY ATTORNEY
B y
:

A T T O R N E Y - I N - F A C T
B y
:

DEPUTY CITY ATTORNEY

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City of Stockton
Legislation Text
File #: 23-0955, Version: 1

APPROVE AN AGREEMENT FOR PROFESSIONAL SERVICES WITH COMMUNITY MEDICAL

CENTERS OF STOCKTON TO UTILIZE FUNDS RECEIVED THROUGH THE NATIONAL OPIOID

SETTLEMENT AGREEMENTS

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

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

2. Awarding a Professional Services Contract to Community Medical Centers (CMC) of Stockton, CA in the Not-to-Exceed amount of $4,500,000 for three years to utilize funds received through the National Opioid Settlement in order to remediate and provide activities that end, reduce, and/or lessen the effects of the opioid epidemic in communities.

3. Authorizing the City Manager to accept and appropriate all funds allocated to the City of Stockton under the Opioid Settlement Agreement Funds.

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

Summary
California has joined multiple national lawsuits against manufacturers, distributors, and other entities responsible for aiding the opioid epidemic. As a result, the City of Stockton has received funds from opioid judgments and anticipates receiving funds from future judgments. The City is scheduled to receive settlement funds through payments based on an allocated percentage of National Opioid Settlement funds directed to the State of California. Opioid Settlement Agreement (OSA) allocations must be utilized for substance use prevention, intervention, harm reduction, treatment, and recovery services in communities, as prescribed in the program guidelines.

Funds allocated to the City of Stockton from California’s opioid settlements will be distributed into one of two sub-funds: 1) Abatement Account Funds, to use for future opioid remediation, and 2) California Subdivision Funds, to use for future opioid remediation activities and to reimburse past opioid-related expenses.

The City intends to contract with Community Medical Centers (CMC) for a three-year term to utilize up to $4.5 Million of funding received by the City of Stockton through the California Opioid Settlements. In alignment with the California Department of Health Care Services approved uses of funds for High Impact Abatement Activities, CMC will utilize funding to expand the existing Substance City of Stockton Printed on 11/9/2023Page 1 of 5
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Use Disorder (SUD) treatment infrastructure delivered through the CMC Respite Center, to include providing withdrawal care and residential treatment in a community-based setting for individuals experiencing uncomfortable withdrawal symptoms deemed mild to moderate for sub-acute level of care. The program will prioritize prevention, intervention, harm reduction, assessment, treatment, recovery services, service support, and aftercare delivery to impacted community members.

Compensation to CMC under this agreement is restricted to Opioid Settlement funds and is subject to availability of these funds during the contractual term. The City’s agreement with CMC is the first anticipated initiative for usage of OSA funds. It is the City’s intent to explore other allowable uses of funds with additional community partners, following the initial agreement term.

DISCUSSION
Background
California has joined multiple national lawsuits against manufacturers, distributors, and other entities responsible for aiding the opioid epidemic. Local jurisdictions have received funds from opioid judgments, and it is anticipated that allocations from future settlements will be received. Each state’s share of the funding has been determined by agreement among the states using a formula that considers the impact of the opioid crisis on the state - the number of overdose deaths, the number of residents with SUD, and the number of opioids prescribed - and the population of the state.

On July 21, 2021, a $26 billion offer to settle was made by opioid manufacturer Janssen Pharmaceuticals (“Janssen”), which is a parent company of Johnson & Johnson; and the “big three” distributors - McKesson, AmerisourceBergen and Cardinal Health (“Distributors”)- to resolve their liabilities in over 3,000 opioid crisis-related lawsuits nationwide. It is estimated that California will receive approximately $2.05 billion from the Janssen and Distributors Settlement Agreements through the year 2038. The Janssen and Distributors settlements provide substantial funds for the abatement of the opioid epidemic in California and require that the companies change the way they conduct their business.

On July 9, 2023, five additional pending settlements were announced. The pharmacies CVS, Walgreens, and Walmart (“Pharmacies”), and the manufacturers Allergan and Teva Pharmaceuticals, together proposed settling on $17.3 billion to address their roles in the opioid crisis, of which California’s share could potentially be $1.8 billion. The agreements with CVS, Walgreens, and Walmart are the first multistate settlements to hold chain pharmacies accountable for their failure to intervene in prescription abuse and drug diversion. The Pharmacies settlements are expected to provide substantial funds for the abatement of the opioid epidemic in California and will require changes in the way that the Pharmacies conduct their business. Settlements build on the existing framework that states and subdivisions have created through the other opioid settlements.

In February 2022, Mallinckrodt Pharmaceuticals (“Mallinckrodt”), a generic opioid manufacturer, confirmed that the company was filing for bankruptcy and reached an agreement to address its opioid litigation with multiple states, including California. The agreement stipulates that $1.6 billion will be provided to states to use for opioid abatement, with approximately $14.7 million of those funds awarded to California. In early 2023, cities and counties in California received the first round of payments from Mallinckrodt. Additional bankruptcies from other opioid manufacturers, including with Endo Pharmaceuticals and Purdue Pharmaceuticals L.P., are still pending.

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Funds received from all of California’s opioid settlements will be distributed as follows:
· 15 percent allocated to the State of California to use for future opioid remediation activities (California State Fund).
· 70 percent allocated to cities and counties to use for future opioid remediation activities via the Abatement Account Fund.
· 15 percent allocated to cities and counties who filed original lawsuits against opioid defendants, to use for future opioid remediation activities and to reimburse past opioid-related expenses, via the California Subdivision Fund.

California cities and counties receiving OSA allocations must utilize funds for substance use prevention, intervention, harm reduction, treatment, and recovery services in communities.

Abatement Accounts funding must be used for responses that qualify under California’sHigh Impact Abatement Activities (HIAA), as defined by the California Department of Health Care Services (DHCS). Within this HIAA List of Opioid Remediation Uses are both “Core Strategies” and “Approved Uses” (Attachment A). In their role as Plaintiff Subdivisions, localities must utilize California Subdivision Accounts to fund future opioid remediation projects and reimburse past opioid-related expenses, and the Plaintiff Subdivisions must ensure compliance with annual reporting requirements to DHCS.

Although funding is expected to be received from at least eight separate settlements (e.g., Janssen, Distributors, Teva, etc.), the total funding amount during the three-year contractual term is unknown.

Attachment B shows Payment Information reflected on the DHCS website, tabled by settlement types, estimated distribution periods, and links to formal Agreements. Exact percentages provided to cities and counties will be based on the percentage schedules found in the relevant Agreements. For example, Stockton receives a weighted allocation percentage of 0.3256176 percent from both the Janssen and Distributors Settlements - the weighted allocation percentage constitutes 0.313 percent of the Abatement Account Fund and 0.383 percent from the Subdivision Fund.

Due to pending settlements with five additional entities, the total amount of funding allocated for the City of Stockton cannot be specified with absolute certainty at this time, however, based on previous allocations to the City, it is reasonably anticipated that $4,500,000 of funding may be distributed during the three-year term. All services provided under this contract are subject to availability of funding received through the California OSA (Exhibit 1 to the Resolution).

Present Situation
In July 2022, City Council approved by motion (2022-07-26-1503) an Agreement for Professional Services with Community Medical Centers (CMC) to establish outreach, crisis intervention and support for community well-being under American Rescue Plan Act funds. In November 2022, CMC launched the Mobile Crisis Intervention Response, a pilot project that dispatches a mental health clinician and support team as an alternative response to non-emergency calls in Stockton. At its inception, the Mobile Response Team (MRT) operated on a limited schedule while the project was being built out. In April 2023, the MRT increased operations, currently responding to direct calls and referrals on a 7-day-per-week schedule for 15 hours each day. Monthly data reflects a consistent uptick in calls for service.

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A primary objective of the pilot project is to ensure ongoing patient engagement that supports stabilization, rehabilitation, and sustainable outcomes through access to Care Team programs such as the CMC Respite Center and Medication Assisted Treatment (MAT) and CMC Substance Use Disorder (SUD) Outpatient Services. CMC’s existing outreach and community well-being efforts through the MRT critically align with DHCS requirements for using opioid abatement funding, as shown in the HIAA/Attachment A:

1. Core Strategy: MEDICATION-ASSISTED TREATMENT (“MAT”) DISTRIBUTION AND OTHER

OPIOID-RELATED TREATMENT
i) Expand availability of treatment for Opioid Use Disorder (OUD) and any co-occurring SUD or Mental Health (MH) condition through evidence-based or evidence-informed programs and strategies.
ii) Provide treatment and recovery support services such as residential and inpatient treatment, intensive outpatient treatment, outpatient therapy or counseling, and recovery housing, that allow or integrate medication and with other support services.

2. Core Strategy: EXPANSION OF HAND-OFF PROGRAMS AND RECOVERY SERVICES i) Expand warm hand-off services to transition to recovery services. ii) Broaden scope of recovery services to include co-occurring SUD or MH conditions. iii) Provide comprehensive wrap-around services to individuals in recovery, including aftercare direct services and referrals or assistance to obtain housing, transportation, job placement/training, and childcare.

As a primary stakeholder in mental and behavioral health care throughout the community, CMC is foundationally positioned to provide comprehensive treatment and whole-person centered services with OSA funds allocated to the City of Stockton. CMC will utilize funds to expand the existing SUD treatment infrastructure delivered within the CMC Respite Center. The Respite Center will provide withdrawal care and residential SUD treatment at a cost of $300 per bed, per day, in a community- based setting for individuals experiencing withdrawal symptoms deemed mild to moderate for sub- acute level of care. Secondarily, CMC will provide Aftercare Recovery, which includes counseling, transition and resource connection, outpatient treatment support and transportation assistance.

Additionally, CMC will incorporate approved Program objectives which include expanding treatment availability through evidence-based programs and strategies; wraparound service support and case management; and collaboration with local partners, such as the San Joaquin County Opioid Safety Coalition, to develop a coordinated and transparent process for opioid reduction and prevention.

The CMC Respite Center is one of California’s three SUD treatment facilities that is operated by a Federally Qualified Health Center (FQHC). The FQHC designation requires that a medically- underserved population receives comprehensive services, all individuals are treated regardless of income, and the organization maintains an ongoing quality assurance program. The Respite Center fills a much-needed gap in the Stockton area as long-term SUD treatment facilities often require patients to be sober for up to two weeks. The Respite Center provides such gap coverage, which allows intermediate short-term placement for withdrawal. Thus, only at the Respite Center can a patient detoxify for up to 14 days while receiving services including group and individual counseling and medical treatment. Clients can access services through any “door” - individuals can voluntarily seek services, they can be referred, or they can be brought by a family member. This nexus with the crisis intervention pilot project ensures that residents already being served by the Care Link team can be connected with the next levels of wraparound support and don’t get overlooked in a bureaucratic City of Stockton Printed on 11/9/2023Page 4 of 5
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transition between agencies. The uniqueness of the scope of CMC’s Respite Center and aftercare services qualifies Community Medical Centers as a Single Available Source for this contract.

Findings
Pursuant to Stockton Municipal Code section 3.68.070, Council may approve findings which support and justify an exception to the competitive bidding process. The following findings support such an exception:

1. The City does not have sufficient expertise or staff resources to utilize funds through the National Opioid Settlement with direct activities that prevent and remediate the opioid epidemic.

2. Use of the Single Available Source procurement is appropriate for this Professional Services Contract because the Contractor scope is unique among local entities in providing intermediate “gap coverage” or short-term placement for withdrawal to clients in a residential treatment setting.

CMC is exclusive in providing bridge services to address all phases of care with SUD.

Additionally, CMC’s designation as an FQHC ensures equity of services, and maintains an ongoing quality assurance program.

3. In utilizing OSA funds, Community Medical Centers will leverage efforts underway provided through the existing Crisis Intervention and Community Well-Being pilot project to expand SUD treatment and will connect clients with aftercare delivery and comprehensive wraparound support.

FINANCIAL SUMMARY
Payments to the City of Stockton will be distributed either yearly or periodically when front-ended, extending through the year 2031 for Janssen and 2040 for Distributors. As of October 2023, Settlement front-ended payments in the amount of $1,033,410.08 have been distributed to Stockton through the Janssen and Distributors entities, as Abatement and Subdivision sub-funds. A Settlement in the amount of $28,283.15 has been received through the Mallinckrodt bankruptcy payment. Future Pharmacies Settlement payments are anticipated. All OSA payments are housed in State Settlement Payments revenue accounts and are separately tracked and reported as Abatement or Subdivision funds by entity (e.g., Janssen, Distributors), along with interest accrual. This action authorizes the appropriation of revenues received and corresponding expenditure budgets, amending the City’s Annual Budget. Services provided under the CMC contract are subject to availability from the California Opioid Settlement Agreement funds. This contract is not intended to be funded from any other account.

Based on payments received so far, staff anticipate an amount of up to $4.5 million will be received and available to fund a three-year Professional Services Contract to Community Medical Centers to utilize for opioid prevention and reduction activities, and program and service expansion of the Substance Use Disorder Respite Center. CMC will receive funding only from the National Opioid Settlement Funds, and the City will not provide funding from any other funding source under this agreement. There is no impact to the General Fund, or any other unrestricted fund, from this action.

Attachment A - Final Settlement Agreement: List of Opioid Remediation Uses Attachment B - California Department of Health Care Services Payment Information City of Stockton Printed on 11/9/2023Page 5 of 5
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EXHIBIT E
List of Opioid Remedia
tion Uses
Schedule A
Core Strategies
States and Qualifying Block Grantees shall choose from a mong the abatement strategies listed in
Schedule B. However, priority shall be given to the following core abatement strategies (“Core Strategies”).14
A. NALOXONE OR OTHER FDA-APPROVED DRUG TO

REVERSE OPIOID OVERDOSES

1. Expand training for first responders, schools, community support groups and families; and

2. Increase distribution to individuals who are uninsured or whose insurance does not cover the needed service.

B. MEDICATION-ASSISTED TREATMENT (“MAT”)

DISTRIBUTION AND OTHER OPIOID-RELATED

TREATMENT

1. Increase distribution of MAT to individuals who are
uninsured or whose insurance does not cover the needed
service;

2. Provide education to school-based and youth-focused
programs that discourage or prevent misuse;

3. Provide MAT education and awareness training to
healthcare providers, EMTs, law enforcement, and other
first responders; and

4. Provide treatment and recovery support services such as residential and inpatient treatment, intensive outpatient treatment, outpatient therapy or counseling, and recovery housing that allow or integrate medication and with other support services.
14 As used in this Schedule A, words like “expand,” “fund,” “provide” or the like shall not indicate
a preference for new or existing programs.

ATTACHMENT A
219
E-2
C. PREGNANT & POSTPART

UM WOMEN

1. Expand Screening, Brief Intervention, and Referral to Treatment (“SBIRT”) services to non-Medicaid eligible or uninsured pregnant women;

2. Expand comprehensive evidence-based treatment and
recovery services, including MAT, for women with co-
occurring Opioid Use Disorder (“OUD”) and other
Substance Use Disorder (“SUD”)/Mental Health disorders
for uninsured individuals for up to 12 months postpartum; and

3. Provide comprehensive wrap-around services to individuals with OUD, including housing, transportation, job
placement/training, and childcare.

D. EXPANDING TREATMENT FOR NEONATAL
ABSTINENCE SYNDROME (“NAS”)

1. Expand comprehensive evidence-based and recovery
support for NAS babies;

2. Expand services for better continuum of care with infant- need dyad; and

3. Expand long-term treatment and services for medical
monitoring of NAS babies and their families.

E. EXPANSION OF WARM HAND-OFF PROGRAMS AND

RECOVERY SERVICES

1. Expand services such as navigators and on-call teams to begin MAT in hospital emergency departments;

2. Expand warm hand-off services to transition to recovery services;

3. Broaden scope of recovery services to include co-occurring SUD or mental health conditions;

4. Provide comprehensive wrap-around services to individuals in recovery, including housing, transportation, job
placement/training, and childcare; and

5. Hire additional social workers or other behavioral health workers to facilitate expansions above.

ATTACHMENT A
220
E-3
F. TREA

TMENT FOR INCARCERATED POPULATION

1. Provide evidence-based treatment and recovery support, including MAT for persons with OUD and co-occurring
SUD/MH disorders within and transitioning out of the
criminal justice system; and

2. Increase funding for jails to provide treatment to inmates with OUD.

G. PREVENTION PROGRAMS

1. Funding for media campaigns to prevent opioid use (similar to the FDA’s “Real Cost” campaign to prevent youth from misusing tobacco);

2. Funding for evidence-based prevention programs in
schools;

3. Funding for medical provider education and outreach
regarding best prescribing practices for opioids consistent with the 2016 CDC guidelines, including providers at
hospitals (academic detailing);

4. Funding for community drug disposal programs; and

5. Funding and training for first responders to participate in pre-arrest diversion programs, post-overdose response
teams, or similar strategies that connect at-risk individuals to behavioral health services and supports.

H. EXPANDING SYRINGE SERVICE PROGRAMS

1. Provide comprehensive syringe services programs with more wrap-around services, including linkage to OUD
treatment, access to sterile syringes and linkage to care and treatment of infectious diseases.

I. EVIDENCE-BASED DATA COLLECTION AND

RESEARCH ANALYZING THE EFFECTIVENESS OF THE

ABATEMENT STRATEGIES WITHIN THE STATE

ATTACHMENT A
221
E-4
Schedule B
Approved Uses
Support treatment of Opi
oid Use Disorder (OUD) and any co-occurring Substance Use Disorder or Mental Health (SUD/MH) conditions through evidence-based or evidence-informed programs or strategies that may include, but are not limited to, the following:

PART ONE: TREATMENT
A. TREA

T OPIOID USE DISORDER (OUD)
Support treatment of Opioid Use Disorder (“OUD”) and any co-occurring Substance Use Disorder or Mental Health (“SUD/MH”) conditions through evidence-based or evidence- informed programs or strategies that may include, but are not limited to, those that:15

1. Expand availability of treatme
nt for OUD and any co-occurring SUD/MH
conditions, including all forms of Medication-Assisted Treatment (“MAT”) approved by the U.S. Food and Drug Administration.

2. Support and reimburse evidence-based services that adhere to the American Society of Addiction Medicine (“ASAM”) continuum of care for OUD and any co- occurring SUD/MH conditions.

3. Expand telehealth to increase access to treatment for OUD and any co-occurring SUD/MH conditions, including MAT, as well as counseling, psychiatric support, and other treatment and recovery support services.

4. Improve oversight of Opioid Treatment Programs (“OTPs”) to assure evidence- based or evidence-informed practices such as adequate methadone dosing and low threshold approaches to treatment.

5. Support mobile intervention, treatment, and recovery services, offered by qualified professionals and service providers, such as peer recovery coaches, for persons with OUD and any co-occurring SUD/MH conditions and for persons who have experienced an opioid overdose.

6. Provide treatment of trauma for individuals with OUD (e.g., violence, sexual assault, human trafficking, or adverse childhood experiences) and family members (e.g., surviving family members after an overdose or overdose fatality), and training of health care personnel to identify and address such trauma.

7. Support evidence-based withdrawal management services for people with OUD and any co-occurring mental health conditions.
15 As used in this Schedule B, words like “expand,” “fund,” “provide” or the like shall not indicate
a preference for new or existing programs.

ATTACHMENT A
222
E-5

8. Provide training on MAT for health care providers, first responders, students, or other supporting professionals, such as peer recovery coaches or recovery outreach specialists, including telementoring to assist comm unity-based providers
in rural or underserved areas.

9. Support workforce development for addiction professionals w ho work with
persons with OUD and any co-occurring SUD/MH conditions.

10. Offer fellowships for addiction medicine specialists for direct patient care, instructors, and clinical research for treatments.

11. Offer scholarships and supports for behavioral health practitioners or workers involved in addressing OUD and any co-occurring SUD/MH or mental health conditions, including, but not limited to, training, scholarships, fellowships, loan repayment programs, or other incentives for providers to work in rural or underserved areas.

12. Provide funding and training for clinicians to obtain a waiver under the federal Drug Addiction Treatment Act of 2000 (“DATA 2000”) to prescribe MAT for OUD, and provide technical assistance and professional support to clinicians who have obtained a DATA 2000 waiver.

13. Disseminate of web-based training curricula, such as the American Academy of Addiction Psychiatry’s Provider Clinical Support Service–Opioids web-based training curriculum and motivational interviewing.

14. Develop and disseminate new curricula, such as the American Academy of Addiction Psychiatry’s Provider Clinical Support Service for Medication– Assisted Treatment.

B. SUPPORT PEOPLE IN TREATMENT AND RECOVERY
Support people in recovery from OUD and any co-occurring SUD/MH conditions through evidence-based or evidence-informed programs or strategies that may include, but are not limited to, the programs or strategies that:

1. Provide comprehensive wrap-around services to individuals with OUD and any co-occurring SUD/MH conditions, including housing, transportation, education, job placement, job training, or childcare.

2. Provide the full continuum of care of treatment and recovery services for OUD and any co-occurring SUD/MH conditions, including supportive housing, peer support services and counseling, community navigators, case management, and connections to community-based services.

3. Provide counseling, peer-support, recovery case management and residential treatment with access to medications for those who need it to persons with OUD and any co-occurring SUD/MH conditions.

ATTACHMENT A
223
E-6

4. Provide access to housing for people with OUD and any co-occurring SUD/MH conditions, including supportive housing, recovery housing, housing assistance programs, training for housing providers, or recovery housing program s that allow
or integrate FDA-approved mediation with other support services.

5. Provide community support services, including social and legal services, to assist in deinstitutionalizing persons with OUD and any co-occurring SUD/MH conditions.

6. Support or expand peer-recovery centers, which may include support groups, social events, computer access, or other services for persons with OUD and any co-occurring SUD/MH conditions.

7. Provide or support transportation to treatment or recovery programs or services for persons with OUD and any co-occurring SUD/MH conditions.

8. Provide employment training or educational services for persons in treatment for or recovery from OUD and any co-occurring SUD/MH conditions.

9. Identify successful recovery programs such as physician, pilot, and college recovery programs, and provide support and technical assistance to increase the number and capacity of high-quality programs to help those in recovery.

10. Engage non-profits, faith-based communities, and community coalitions to support people in treatment and recovery and to support family members in their efforts to support the person with OUD in the family.

11. Provide training and development of procedures for government staff to appropriately interact and provide social and other services to individuals with or in recovery from OUD, including reducing stigma.

12. Support stigma reduction efforts regarding treatment and support for persons with OUD, including reducing the stigma on effective treatment.

13. Create or support culturally appropriate services and programs for persons with OUD and any co-occurring SUD/MH conditions, including new Americans.

14. Create and/or support recovery high schools.

15. Hire or train behavioral health workers to provide or expand any of the services or supports listed above.

C. CONNECT PEOPLE WHO NEED HELP TO THE HELP THEY NEED
(CONNECTIONS TO CARE)
Provide connections to care for people who have—or are at risk of developing—OUD and any co-occurring SUD/MH conditions through evidence-based or evidence-informed programs or strategies that may include, but are not limited to, those that:

ATTACHMENT A
224
E-7

1. Ensure that health care providers are screening for OUD and other risk factors and know how to appropriately counsel and treat (or refer if necessary) a patient for OUD treatment.

2. Fund SBIRT programs to reduce the transition from
use to disorders, including
SBIRT services to pregnant women who are uninsured or not eligible for Medicaid.

3. Provide training and long-term implementation of SBIRT in key systems (health, schools, colleges, criminal justice, and probation), with a focus on youth and young adults when transition from misuse to opioid disorder is common.

4. Purchase automated versions of SBIRT and support ongoing costs of the technology.

5. Expand services such as navigators and on-call teams to begin MAT in hospital emergency departments.

6. Provide training for emergency room personnel treating opioid overdose patients on post-discharge planning, including community referrals for MAT, recovery case management or support services.

7. Support hospital programs that transition persons with OUD and any co-occurring SUD/MH conditions, or persons who have experienced an opioid overdose, into clinically appropriate follow-up care through a bridge clinic or similar approach.

8. Support crisis stabilization centers that serve as an alternative to hospital emergency departments for persons with OUD and any co-occurring SUD/MH conditions or persons that have experienced an opioid overdose.

9. Support the work of Emergency Medical Systems, including peer support specialists, to connect individuals to treatment or other appropriate services following an opioid overdose or other opioid-related adverse event.

10. Provide funding for peer support specialists or recovery coaches in emergency departments, detox facilities, recovery centers, recovery housing, or similar settings; offer services, supports, or connections to care to persons with OUD and any co-occurring SUD/MH conditions or to persons who have experienced an opioid overdose.

11. Expand warm hand-off services to transition to recovery services.

12. Create or support school-based contacts that parents can engage with to seek immediate treatment services for their child; and support prevention, intervention, treatment, and recovery programs focused on young people.

13. Develop and support best practices on addressing OUD in the workplace.

ATTACHMENT A
225
E-8

14. Support assistance programs for health care providers with O UD.

15. Engage non-profits and the faith community as a system to support outreach for treatment.

16. Support centralized call centers that provide information and connections to appropriate services and supports for persons with OUD and any co-occurring SUD/MH conditions.

D. ADDRESS THE NEEDS OF CRIMINAL JUSTICE-INVOLVED PERSONS Address the needs of persons with OUD and any co-occurring SUD/MH conditions who are involved in, are at risk of becoming involved in, or are transitioning out of the criminal justice system through evidence-based or evidence-informed programs or strategies that may include, but are not limited to, those that:

1. Support pre-arrest or pre-arraignment diversion and deflection strategies for persons with OUD and any co-occurring SUD/MH conditions, including established strategies such as:

1. Self-referral strategies such as the Angel Programs or the Police Assisted Addiction Recovery Initiative (“PAARI”);

2. Active outreach strategies such as the Drug Abuse Response Team (“DART”) model;

3. “Naloxone Plus” strategies, which work to ensure that individuals who have received naloxone to reverse the effects of an overdose are then linked to treatment programs or other appropriate services;

4. Officer prevention strategies, such as the Law Enforcement Assisted Diversion (“LEAD”) model;

5. Officer intervention strategies such as the Leon County, Florida Adult Civil Citation Network or the Chicago Westside Narcotics Diversion to Treatment Initiative; or

6. Co-responder and/or alternative responder models to address OUD-related 911 calls with greater SUD expertise.

2. Support pre-trial services that connect individuals with OUD and any co- occurring SUD/MH conditions to evidence-informed treatment, including MAT, and related services.

3. Support treatment and recovery courts that provide evidence-based options for persons with OUD and any co-occurring SUD/MH conditions.

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4. Provide evidence-informed treatment, including MAT, recovery support, harm reduction, or other appropriate services
to individuals with OUD and any co-
occurring SUD/MH conditions who are incarcerated in jail or prison.

5. Provide evidence-informed treatment, including MAT, recovery support, harm reduction, or other appropriate services to individuals with OUD and any co- occurring SUD/MH conditions who are leaving jail or prison or have recently left jail or prison, are on probation or parole, are under community corrections supervision, or are in re-entry programs or facilities.

6. Support critical time interventions (“CTI”), particularly for individuals living with dual-diagnosis OUD/serious mental illness, and services for individuals who face immediate risks and service needs and risks upon release from correctional settings.

7. Provide training on best practices for addressing the needs of criminal justice- involved persons with OUD and any co-occurring SUD/MH conditions to law enforcement, correctional, or judicial personnel or to providers of treatment, recovery, harm reduction, case management, or other services offered in connection with any of the strategies described in this section.

E. ADDRESS THE NEEDS OF PREGNANT OR PARENTING WOMEN AND

THEIR FAMILIES, INCLUDING BABIES WITH NEONATAL ABSTINENCE

SYNDROME
Address the needs of pregnant or parenting women with OUD and any co-occurring SUD/MH conditions, and the needs of their families, including babies with neonatal abstinence syndrome (“NAS”), through evidence-based or evidence-informed programs or strategies that may include, but are not limited to, those that:

1. Support evidence-based or evidence-informed treatment, including MAT, recovery services and supports, and prevention services for pregnant women—or women who could become pregnant—who have OUD and any co-occurring SUD/MH conditions, and other measures to educate and provide support to families affected by Neonatal Abstinence Syndrome.

2. Expand comprehensive evidence-based treatment and recovery services, including MAT, for uninsured women with OUD and any co-occurring SUD/MH conditions for up to 12 months postpartum.

3. Provide training for obstetricians or other healthcare personnel who work with pregnant women and their families regarding treatment of OUD and any co- occurring SUD/MH conditions.

4. Expand comprehensive evidence-based treatment and recovery support for NAS babies; expand services for better continuum of care with infant-need dyad; and expand long-term treatment and services for medical monitoring of NAS babies and their families.

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5. Provide training to health care providers who work with pregnant or parenting wome
n on best practices for compliance with federal requirements that children born with NAS get referred to appropriate services and receive a plan of safe care.

6. Provide child and family supports for parenting women with OUD and any co- occurring SUD/MH conditions.

7. Provide enhanced family support and child care services for parents with OUD and any co-occurring SUD/MH conditions.

8. Provide enhanced support for children and family members suffering trauma as a result of addiction in the family; and offer trauma-informed behavioral health treatment for adverse childhood events.

9. Offer home-based wrap-around services to persons with OUD and any co- occurring SUD/MH conditions, including, but not limited to, parent skills training.

10. Provide support for Children’s Services—Fund additional positions and services, including supportive housing and other residential services, relating to children being removed from the home and/or placed in foster care due to custodial opioid use.

PART TWO: PREVENTION
F. PREVENT OVER-PRESCRIBING AND ENSURE APPROPRIATE

PRESCRIBING AND DISPENSING OF OPIOIDS
Support efforts to prevent over-prescribing and ensure appropriate prescribing and dispensing of opioids through evidence-based or evidence-informed programs or strategies that may include, but are not limited to, the following:

1. Funding medical provider education and outreach regarding best prescribing practices for opioids consistent with the Guidelines for Prescribing Opioids for Chronic Pain from the U.S. Centers for Disease Control and Prevention, including providers at hospitals (academic detailing).

2. Training for health care providers regarding safe and responsible opioid prescribing, dosing, and tapering patients off opioids.

3. Continuing Medical Education (CME) on appropriate prescribing of opioids.

4. Providing Support for non-opioid pain treatment alternatives, including training providers to offer or refer to multi-modal, evidence-informed treatment of pain.

5. Supporting enhancements or improvements to Prescription Drug Monitoring Programs (“PDMPs”), including, but not limited to, improvements that:

ATTACHMENT A
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1. Increase the number of prescribers using PDMPs;

2. Im
prove point-of-care decision-making by increasing the quantity, quality, or format of data available to prescribers using PDMPs, by improving the interface that prescribers use to access PDMP data, or both; or

3. Enable states to use PDMP data in support of surveillance or intervention strategies, including MAT referrals and follow-up for individuals identified within PDMP data as likely to experience OUD in a manner that complies with all relevant privacy and security laws and rules.

6. Ensuring PDMPs incorporate available overdose/naloxone deployment data, including the United States Department of Transportation’s Emergency Medical Technician overdose database in a manner that complies with all relevant privacy and security laws and rules.

7. Increasing electronic prescribing to prevent diversion or forgery.

8. Educating dispensers on appropriate opioid dispensing.

G. PREVENT MISUSE OF OPIOIDS
Support efforts to discourage or prevent misuse of opioids through evidence-based or evidence-informed programs or strategies that may include, but are not limited to, the following:

1. Funding media campaigns to prevent opioid misuse.

2. Corrective advertising or affirmative public education campaigns based on evidence.

3. Public education relating to drug disposal.

4. Drug take-back disposal or destruction programs.

5. Funding community anti-drug coalitions that engage in drug prevention efforts.

6. Supporting community coalitions in implementing evidence-informed prevention, such as reduced social access and physical access, stigma reduction—including staffing, educational campaigns, support for people in treatment or recovery, or training of coalitions in evidence-informed implementation, including the Strategic Prevention Framework developed by the U.S. Substance Abuse and Mental Health Services Administration (“SAMHSA”).

7. Engaging non-profits and faith-based communities as systems to support prevention.

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8. Funding evidence-based prevention programs in schools or evidence-informe d
school and community education programs and campaigns for students, families, school employees, school athletic programs, parent-teacher and student associations, and others.

9. School-based or youth-focused programs or strategies that have demonstrated effectiveness in preventing drug misuse and seem likely to be effective in preventing the uptake and use of opioids.

10. Create or support community-based education or intervention services for families, youth, and adolescents at risk for OUD and any co-occurring SUD/MH conditions.

11. Support evidence-informed programs or curricula to address mental health needs of young people who may be at risk of misusing opioids or other drugs, including emotional modulation and resilience skills.

12. Support greater access to mental health services and supports for young people, including services and supports provided by school nurses, behavioral health workers or other school staff, to address mental health needs in young people that (when not properly addressed) increase the risk of opioid or another drug misuse.

H. PREVENT OVERDOSE DEATHS AND OTHER HARMS (HARM REDUCTION) Support efforts to prevent or reduce overdose deaths or other opioid-related harms through evidence-based or evidence-informed programs or strategies that may include, but are not limited to, the following:

1. Increased availability and distribution of naloxone and other drugs that treat overdoses for first responders, overdose patients, individuals with OUD and their friends and family members, schools, community navigators and outreach workers, persons being released from jail or prison, or other members of the general public.

2. Public health entities providing free naloxone to anyone in the community.

3. Training and education regarding naloxone and other drugs that treat overdoses for first responders, overdose patients, patients taking opioids, families, schools, community support groups, and other members of the general public.

4. Enabling school nurses and other school staff to respond to opioid overdoses, and provide them with naloxone, training, and support.

5. Expanding, improving, or developing data tracking software and applications for overdoses/naloxone revivals.

6. Public education relating to emergency responses to overdoses.

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7. Public education relating to immuni
ty and Good Samaritan laws.

8. Educating first responders regarding the existence and operation of immunity and Good Samaritan laws.

9. Syringe service programs and other evidence-informed programs to reduce harms associated with intravenous drug use, including supplies, staffing, space, peer support services, referrals to treatment, fentanyl checking, connections to care, and the full range of harm reduction and treatment services provided by these programs.

10. Expanding access to testing and treatment for infectious diseases such as HIV and Hepatitis C resulting from intravenous opioid use.

11. Supporting mobile units that offer or provide referrals to harm reduction services, treatment, recovery supports, health care, or other appropriate services to persons that use opioids or persons with OUD and any co-occurring SUD/MH conditions.

12. Providing training in harm reduction strategies to health care providers, students, peer recovery coaches, recovery outreach specialists, or other professionals that provide care to persons who use opioids or persons with OUD and any co- occurring SUD/MH conditions.

13. Supporting screening for fentanyl in routine clinical toxicology testing.

PART THREE: OTHER STRATEGIES
I. FIRST RESPONDE
RS
In addition to items in section C, D and H relating to first responders, support the following:

1. Education of law enforcement or other first responders regarding appropriate practices and precautions when dealing with fentanyl or other drugs.

2. Provision of wellness and support services for first responders and others who experience secondary trauma associated with opioid-related emergency events.

J. LEADERSHIP, PLANNING AND COORDINATION
Support efforts to provide leadership, planning, coordination, facilitations, training and technical assistance to abate the opioid epidemic through activities, programs, or strategies that may include, but are not limited to, the following:

1. Statewide, regional, local or community regional planning to identify root causes of addiction and overdose, goals for reducing harms related to the opioid epidemic, and areas and populations with the greatest needs for treatment

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intervention services, and to support training and tec
hnical assistance and other
strategies to abate the opioid epidemic described in this opioid abatem ent strategy
list.

2. A dashboard to (a) share reports, recommendations, or plans to spend opioid settlement funds; (b) to show how opioid settlement funds have been spent; (c) to report program or strategy outcomes; or (d) to track, share or visualize key opioid- or health-related indicators and supports as identified through collaborative statewide, regional, local or community processes.

3. Invest in infrastructure or staffing at government or not-for-profit agencies to support collaborative, cross-system coordination with the purpose of preventing overprescribing, opioid misuse, or opioid overdoses, treating those with OUD and any co-occurring SUD/MH conditions, supporting them in treatment or recovery, connecting them to care, or implementing other strategies to abate the opioid epidemic described in this opioid abatement strategy list.

4. Provide resources to staff government oversight and management of opioid abatement programs.

K. TRAINING
In addition to the training referred to throughout this document, support training to abate the opioid epidemic through activities, programs, or strategies that may include, but are not limited to, those that:

1. Provide funding for staff training or networking programs and services to improve the capability of government, community, and not-for-profit entities to abate the opioid crisis.

2. Support infrastructure and staffing for collaborative cross-system coordination to prevent opioid misuse, prevent overdoses, and treat those with OUD and any co- occurring SUD/MH conditions, or implement other strategies to abate the opioid epidemic described in this opioid abatement strategy list (e.g., health care, primary care, pharmacies, PDMPs, etc.).

L. RESEARCH
Support opioid abatement research that may include, but is not limited to, the following:

1. Monitoring, surveillance, data collection and evaluation of programs and strategies described in this opioid abatement strategy list.

2. Research non-opioid treatment of chronic pain.

3. Research on improved service delivery for modalities such as SBIRT that demonstrate promising but mixed results in populations vulnerable to opioid use disorders.

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4. Research on novel harm
reduction and prevention efforts such as the
provision of fentanyl test strips.

5. Research on innovative supply-side enforcement efforts such as im proved
detection of mail-based delivery of synthetic opioids.

6. Expanded research on swift/certain/fair models to reduce and deter opioid misuse within criminal justice populations that build upon promising approaches used to address other substances (e.g., Hawaii HOPE and Dakota 24/7).

7. Epidemiological surveillance of OUD-related behaviors in critical populations, including individuals entering the criminal justice system, including, but not limited to approaches modeled on the Arrestee Drug Abuse Monitoring (“ADAM”) system.

8. Qualitative and quantitative research regarding public health risks and harm reduction opportunities within illicit drug markets, including surveys of market participants who sell or distribute illicit opioids.

9. Geospatial analysis of access barriers to MAT and their association with treatment engagement and treatment outcomes.

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Table 1. List of California Opioid Settlements
Type Estimated Distribution
Periods
Agreement
Allergan Pending California State-Subdivision Agreement - Allergan Settlement CVS Pending California State-Subdivision Agreement - CVS Agreement Distributors 2022-2040 California State-Subdivision Agreement - Distributors Agreement Janssen 2022-2031 California State-Subdivision Agreement - Janssen Settlement Walgreens Pending California State-Subdivision Agreement - Walgreens Settlement Walmart Pending California State-Subdivision Agreement - Walmart Settlement Teva Pending California State-Subdivision Agreement - Teva Settlement Table 2. List of California Bankruptcies
Type Distribution Periods Agreement
Mallinckrodt 2023-2031 California Statewide Abatement Agreement - Mallinckrodt Bankruptcy
Table 1 provides a list of opioid settlements from which California will receive funds for opioid remediation activities. Table 2 provides a list of opioid bankruptcies. Exact percentages provided to cities and counties will be based on the percentage schedules found in the relevant California State-Subdivision Agreements and California Mallinckrodt Statewide Abatement Agreement. https://www.dhcs.ca.gov/provgovpart/Pages/California-Opioid-Settlements.aspx

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Resolution No.

STOCKTON CITY COUNCIL

RESOLUTION TO APPROVE AGREEMENT WITH COMMUNITY MEDICAL CENTERS

FOR USE OF OPIOID SETTLEMENT FUNDS

California has joined multiple national lawsuits against manufacturers, distributors, and other entities responsible for aiding the opioid epidemic; and

As a result, the City of Stockton has received funds from opioid judgments and anticipates receiving funds from future judgments; and

The City of Stockton is scheduled to receive settlement funds through payments based on an allocated percentage of National Opioid Settlement funds directed to the State of California; and

The City intends to contract with Community Medical Centers (CMC) for a three - year term to utilize up to $4.5 Million of funding, subject to availabi lity, received by the City of Stockton through the California Opioid Settlements; and

In alignment with the California Department of Health Care Services approved uses of funds for High Impact Abatement Activities, CMC will utilize funding to expand the existing Substance Use Disorder (SUD) treatment infrastructure delivered through the CMC Respite Center, to include providing withdrawal care and residential treatment in a community-based settin g for individuals experiencing uncomfortable withdrawal symptoms deemed mild to moderate for sub-acute level of care.

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

1. The following findings are made pursuant to Stockton Municipal Code section 3.68.070 to justify and support an exception to the competitive bidding process.

a) The City does not have sufficient expertise or staff resources to utilize funds through the National Opioid Settlement with direct activities that prevent and remediate the opioid epidemic.

b) Use of the Single Available Source procurement is appropriate for this Professional Services Contract because the Contractor scope is unique among local entities in providing intermediate “gap coverage” or short- term placement for withdrawal to clients in a residential treatment setting.

CMC is exclusive in providing bridge services to address all phases of care with SUD. Additionally, CMC’s designation as an FQHC ensures equity of services, and maintains an ongoing quality assurance program.

235
c) In utilizing OSA funds, Community Medical Centers will leverage efforts underway provided through the existing Crisis Intervention and Community Well-Being pilot project to expand SUD treatment and will connect clients with aftercare delivery and comprehensive wraparound support.

2. The City Manager is hereby authorized to award a contract to Community Medical Centers of Stockton, providing funding in the Not -to-Exceed amount of up to $4,500,000, subject to availability of funding from the Opioid Settlement Agreements, to utilize for opioid remediation and abatement activities, and attached as Exhibit 1.

3. Authorize the City Manager to accept and appropriate all funds allocated to the City of Stockton under the Opioid Settlement Agreement Funds.

4. Authorize the City Manager to take any and all necessary and appropriate actions to carry out the purpose and intent of this resolution.

PASSED, APPROVED, and ADOPTED November 14, 2023 .

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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237
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238
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239
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/37 /45 /i255 /14 /i255 /20 /18 /17 /32 /i255 /12 /18 /85 /i255 /36 /25 /19 /21 /23 /i255 /80 /76 /21 /20 /26 /12 /19 /28 /21 /i255/41/23/23 /19 /20 /21 /13 /i255 /i255
/89 /51/i255/90/57/86 /i255 /91 /57 /54 /69 /59 /64 /64 /57 /66 /i255 /i255
/36 /25/13 /19 /16 /12 /19 /15 /21 /i255 /84 /18 /27 /26 /21 /13 /14 /29 /i255 /36 /25 /19 /21 /23 /i255 /80 /76 /21 /20 /26 /12 /19 /28 /21 /i255/41/23/23 /19 /20 /21 /13/i255/92/73 /87 /88 /93 /i255 /75 /35 /75 /44 /73 /47 /73 /94 /i255 /i255
/95 /51/i255/96 /63/56 /55 /59 /64 /i255 /56 /59 /i255 /97 /57 /64 /57/98/51/i255 /83 /25 /21 /i255 /12 /21 /13/31/i255/18 /23 /i255 /12 /25 /21 /i255 /38 /27 /13 /21 /21/31/21/15 /12 /i255/31/14/32 /i255 /30 /21 /i255 /21 /76 /12 /21 /15 /22 /21 /22 /i255 /26 /17 /i255 /12 /18 /i255 /73 /i255 /92 /12 /37 /18 /93 /i255 /14 /22 /22 /19 /12 /19 /18 /15 /14 /24 /i255 /32 /21 /14 /13 /16 /i255 /30 /32 /i255 /14 /i255 /37 /13 /19 /12 /12 /21 /15 /i255 /14/31/21/15 /22/31/21/15 /12 /i255 /21 /76 /21 /20 /26 /12 /21 /22 /i255 /30 /32 /i255 /30 /18 /12 /25 /i255 /17 /14 /13 /12 /19 /21 /16 /33 /i255 EXHIBIT 1
240
/0 /1 /2 /i255 /4 /5 /4 /4 /6 /5 /7 /6 /8 /9 /i255
/i255
/i255
/i255
/11 /12 /13 /14 /15 /14 /16 /i255 /18 /19 /i255
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EXHIBIT 1
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/i255
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243
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/i255
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/58 /48 /51 /46 /52 /45 /52 /41 /37/46 /48 /i255/83/42/50 /39 /48 /51 /i255 /84 /39 /39 /51 /48 /53 /53 /i255 /70 /20 /25 /i255 /17 /31 /31 /16 /25/19 /19 /i255 /22 /13 /16 /i255/32/17/24 /21 /24 /14 /30 /i255 /18 /25 /16 /15 /24 /22 /24 /18 /17 /15 /25 /19 /68 /i255 /25 /14 /31 /13 /16 /19 /25/32/25/14 /15 /19 /i255 /17 /14 /31 /i255 /14 /13 /15 /24 /18 /25 /19 /i255 /19 /20 /17 /21 /21 /i255 /34 /25 /85 /i255 /12 /24 /15 /26 /i255 /13 /22 /i255 /27 /15/13 /18 /28 /15 /13 /14 /i255 /82 /15 /19 /i255 /81 /22 /22 /24 /18 /25/16 /19 /68 /i255 /81 /22 /22 /24 /18 /24 /17 /21 /19 /68 /i255 /66/32/33/21 /13 /26 /25 /25 /19 /68 /i255 /17 /14 /31 /i255 /86 /13 /21 /23 /14 /15 /25 /25 /16 /19 /i255 /87 /88 /88 /i255 /66 /i255/89/17/24 /14 /i255 /27 /15 /16 /25 /25 /15 /68 /i255 /90/16 /31 /i255/91 /21 /13 /13 /16 /i255 /92 /i255 /67 /93 /i255 /27 /15 /13 /18 /28 /15 /13 /14 /68/i255 /12 /63 /i255 /94 /80 /95 /88 /95 /i255 EXHIBIT 1
244
/0 /1 /2 /3 /4 /i255 /6 /7 /4 /8 /7 /4 /6 /9 /10 /i255/11/12/13 /i255 /7 /14 /4 /7 /9 /4 /15 /8 /i255 /1/11/16/i255 /i255
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EXHIBIT 1
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252
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/50 /4 /80/i255/i255/48 /27 /i255 /24 /12 /17 /25 /14 /26 /19 /25 /12 /14 /i255 /27 /26 /18 /11 /13 /i255 /25 /12 /i255 /19 /12/29/16/11 /23 /i255 /32 /18 /25 /28 /i255 /25 /28 /2 /i255 /27 /12 /14 /2 /51 /12 /18 /17 /51 /i255 /13 /25 /26 /17 /21 /26 /14 /21 /13 /31 /i255 /24 /12 /17 /25 /14 /26 /19/25 /12 /14 /i255/29/20/13 /25 /i255 /16 /2 /14 /27 /12 /14/29/i255/26/51 /26 /18 /17 /31 /i255 /26 /25 /i255 /18 /25 /13 /i255 /12 /32 /17 /i255 /2 /15 /16 /2 /17 /13 /2 /31 /i255 /26 /11 /11 /i255 /30 /2 /14 /3 /18 /19 /2 /13 /i255 /14 /2 /75 /20 /18 /14 /2 /21 /i255 /25 /12 /i255 /22 /2 /i255 /14 /2 /81 /16 /2 /14 /27 /12 /14/29/2/21 /i255 /26 /13 /i255 /26/i255 /21 /18 /14 /2 /19 /25 /i255 /12 /14 /i255 /18 /17 /21 /18 /14 /2 /19 /25 /i255 /14 /2/13 /20 /11 /25 /i255 /12 /27 /i255 /25 /28 /26 /25 /i255 /27 /26 /18 /11 /20 /14 /2 /4 /i255 /76 /17 /23 /i255 /14 /2 /3 /18 /2 /32 /31 /i255 /26 /16 /16 /14 /12 /3 /26 /11 /31 /i255 /26 /19 /19 /2 /16 /25 /26 /17 /19 /2 /i255 /12 /14 /i255 /16 /26 /23/29/2/17 /25 /i255 /27 /12 /14 /i255 /26/17 /23 /i255 /12 /27 /i255 /25 /28 /2 /i255 /30 /2 /14 /3 /18 /19 /2 /13 /i255/22 /23 /i255 /25 /28 /2 /i255 /24 /18 /25 /23 /i255 /21 /12 /2 /13 /i255 /17 /12 /25 /i255 /14 /2 /11 /18 /2 /3 /2 /i255 /24 /12 /17 /25 /14 /26 /19 /25 /12 /14 /i255 /12 /27 /i255 /18 /25 /13 /i255 /14 /2 /13 /16 /12 /17 /13 /18 /22 /18 /11 /18 /25 /23 /i255 /27 /12 /14 /i255 /25 /28 /2 /i255 /16 /14 /12/27 /2 /13 /13 /18 /12 /17 /26 /11 /i255 /13 /57 /18 /11 /11 /i255 /26 /17 /21 /i255 /19/26 /14 /2 /i255 /26 /17 /21 /i255 /25 /2 /19 /28 /17 /18 /19 /26 /11 /i255 /26 /19 /19 /20 /14 /26 /19 /23 /i255 /12 /27 /i255 /18 /25 /13 /i255 /30 /2 /14 /3 /18 /19 /2 /13 /i255 /26 /17 /21 /i255 /78 /2 /11 /18 /3 /2 /14 /26 /22 /11 /2 /13 /4 /i255 /82 /28 /18 /13 /i255 /16 /14 /12/3 /18 /13 /18 /12 /17 /i255 /18 /17 /i255 /72 /62 /i255 /66 /59 /65 /i255 /60 /67 /63/67 /68 /54 /i255 /68 /58 /69 /i255 /83 /67 /68 /65 /53 /54 /i255 /70 /67 /84 /58 /68 /54 /i255 /59 /84 /59 /67 /72 /54 /68 /i255 /24 /12 /17 /25 /14 /26 /19 /25 /12 /14 /i255 /2 /18 /25 /28 /2 /14 /i255 /20 /17 /21 /2 /14 /i255 /25 /28 /18 /13 /i255 /76 /51 /14 /2 /2/29/2/17 /25 /31 /i255 /26 /25/i255 /11 /26 /32 /i255 /12 /14 /i255 /18 /17 /i255 /2 /75 /20 /18 /25 /23 /4 /i255
/i255
/85 /35/i255/86/42/46/87/45 /39 /88 /38 /37 /89 /42 /39 /i255 /i255
/90 /4 /8/i255/48/17 /i255 /26 /21 /21 /18 /25 /18 /12 /17 /i255 /25 /12 /i255 /30 /2 /19 /25 /18 /12 /17 /i255 /80 /i255 /24 /12/29/16/2 /17 /13 /26 /25 /18 /12 /17 /i255 /18 /17 /i255 /49 /15 /28 /18 /22 /18 /25 /i255 /24 /i255 /91 /i255/92/82/24 /31 /i255 /25 /28 /2 /i255 /24/12 /17 /25 /14 /26 /19 /25 /12 /14 /i255 /13 /28 /26 /11 /11 /i255 /22 /2 /i255 /19 /12/29/16/2 /17 /13 /26 /25 /2 /21 /i255 /27 /12 /14 /i255 /25 /28 /2 /i255 /13 /2 /14 /3 /18 /19 /2 /13 /i255 /16 /14 /12 /3 /18 /21 /2 /21 /i255 /20 /17 /21 /2 /14 /i255 /25 /28 /18 /13 /i255 /76 /51 /14 /2 /2/29/2/17 /25 /i255 /26 /13 /i255 /27 /12 /11 /11 /12 /32 /13 /52 /i255 /i255
/90 /4 /8 /4 /8/i255/24/12 /17 /25 /14 /26 /19 /25 /12 /14/i255/13/28 /26 /11 /11/i255/22/2/i255/19/12/29/16/2 /17 /13 /26 /25 /2 /21/i255/27/12 /14/i255/13/2 /14 /3 /18 /19 /2 /13/i255/14/2 /17 /21 /2 /14 /2 /21/i255/26/17 /21 /i255 /26 /19 /19 /2 /16 /25 /2 /21 /i255 /20 /17 /21 /2 /14 /i255 /25 /28 /18 /13 /i255 /76 /51 /14 /2 /2/29/2/17 /25 /i255 /26 /17 /21 /i255 /13 /28 /26 /11 /11 /i255 /22 /2 /i255 /16 /26 /18 /21 /i255/29/12/17 /25 /28 /11 /23 /31 /i255 /18 /17 /i255 /26 /14 /14 /2 /26 /14 /13 /i255 /12 /17 /i255 /26 /i255 /17 /12 /25 /i255 /25 /12 /i255 /2 /15 /19 /2 /2 /21 /i255 EXHIBIT 1
253
/0/1 /2 /3 /4 /i255 /6 /7 /4 /8 /9 /4 /9 /9/10/i255
/11 /12 /13 /14 /13 /15 /i255 /11 /12 /13 /2 /16 /i255 /17 /18 /19 /20 /i255 /21 /22 /2 /i255 /23 /12 /21 /2 /13 /i255 /13 /2 /21 /i255 /24 /19 /23 /21 /22 /i255 /14 /20 /i255 /25 /26 /22 /14 /11 /14 /21 /i255 /25 /i255 /12 /21 /21 /12 /27 /22 /2 /16 /i255 /22 /2 /23 /2 /21 /19 /i255 /12 /20 /16 /i255/28/12/16 /2 /i255 /12 /i255 /18 /12 /23 /21 /i255 /19 /24 /i255 /21 /22 /14 /13 /i255 /29 /30 /23 /2 /2/28/2/20 /21 /4 /i255 /31 /19 /20 /21 /23 /12 /27 /21 /19 /23 /i255/28/12/32 /i255 /3 /12 /23 /32 /i255 /21 /22 /2 /i255 /27 /19/28/18/2 /20 /13 /12 /21 /14 /19 /20 /i255 /24 /19 /23 /i255 /2 /12 /27 /22 /i255 /21 /12 /13 /33 /i255 /14 /20 /i255 /25 /26 /22 /14 /11 /14 /21 /i255 /25 /i255 /18 /23 /19 /3 /14 /16 /2 /16 /i255 /21 /22 /12 /21 /i255 /21 /22 /2 /i255 /21 /19 /21 /12 /34 /i255 /18 /23 /19 /35 /2 /27 /21 /i255 /27 /19/28/18/2 /20 /13 /12 /21 /14 /19 /20 /i255 /34 /14 /13 /21 /2 /16 /i255 /14 /20 /i255 /25 /26 /22 /14 /11 /14 /21 /i255 /25 /i255 /12 /20 /16 /i255 /21 /22 /2 /i255 /36 /21 /12 /20 /16 /12 /23 /16 /i255 /29 /30 /23 /2 /2/28/2/20 /21 /i255 /14 /13 /i255 /20 /19 /21 /i255 /2 /26 /27 /2 /2 /16 /2 /16/4 /i255 /i255
/37 /4 /8 /4 /9/i255/31/19 /20 /21 /23 /12 /27 /21 /19 /23/i255/12/27 /33 /20 /19 /38 /34 /2 /16 /30 /2 /13/i255/21/22 /12 /21/i255/24/17 /20 /16 /14 /20 /30/i255/14/13/i255/23/2 /13 /21 /23 /14 /27 /21 /2 /16/i255/21/19/i255/39/18/14 /19 /14 /16 /i255 /36 /2 /21 /21 /34 /2/28/2/20/21 /i255 /24 /17 /20 /16 /13 /15 /i255 /12 /20 /16 /i255 /12 /20 /32 /i255 /23 /2 /14/28/11/17 /23 /13 /2/28/2/20 /21 /i255 /12 /20 /16 /40 /19 /23 /i255 /27 /19/28/18/2 /20 /13 /12 /21 /14 /19 /20 /i255 /13 /22 /12 /34 /34 /i255 /19 /20 /34 /32 /i255 /11 /2 /i255/18 /23 /19 /3 /14 /16 /2 /16 /i255 /13 /17 /11 /35 /2 /27 /21 /i255 /21 /19/i255 /12 /3 /12 /14 /34 /12 /11 /14 /34 /14 /21 /32 /i255 /19 /24 /i255 /21 /22 /2 /13 /2 /i255 /24 /17 /20 /16 /13 /4 /i255 /i255 /i255
/41 /42/i255/44/45/46 /47 /48 /49 /49 /45 /50 /i255
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/82 /20/i255/25/16/15 /2 /14 /22 /16 /29 /19 /26 /i255 /22 /12 /27 /29 /11 /13 /22 /12 /24 /i255 /28 /11 /15 /i255 /12 /20 /15 /i255 /29 /22/25/22/15 /2 /13 /i255 /15 /20 /i255 /14 /2 /18 /20 /14 /15 /19 /26 /i255/25/16/18 /19 /26 /i255 /20 /14 /i255 /13 /20 /27 /11/25/2/12 /15 /19 /i255 /18/14 /20 /13 /11 /27 /2 /13 /i255 /16 /19 /i255 /16 /i255 /14 /2 /19 /11/29 /15 /i255 /20 /32 /i255 /15 /21 /22 /19 /i255 /23 /24 /14 /2 /2/25/2/12 /15 /26 /i255 /22 /12 /i255 /30 /21 /20 /29 /2 /i255 /20 /14 /i255 /22 /12 /i255 /18 /16 /14 /15 /26 /i255 /19 /21 /16 /29 /29 /i255 /28 /2 /i255 /16 /3 /16 /22 /29 /16 /28 /29 /2 /i255 /15 /20 /i255 /51 /20 /12 /15 /14/16 /27 /15 /20 /14 /i255 /32 /20 /14 /i255 /27 /20 /18 /31 /14 /22 /24 /21 /15/i255 /18 /11 /14 /18 /20 /19 /2 /19 /4 /i255 /23 /12 /31 /i255 /19 /11 /27 /21 /i255/25/16/15 /2 /14 /22 /16 /29 /19 /i255 /18 /14 /20 /13 /11 /27 /2 /13 /i255 /16 /19 /i255 /16 /i255 /14 /2 /19 /11 /29 /15 /i255 /20 /32 /i255 /15 /21 /22 /19 /i255 /23 /24 /14 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/15 /21 /2 /i255/51/22/15 /31 /i255 /13 /2/15 /2 /14/25/22/12 /2 /19 /i255 /15 /21 /16 /15 /i255 /51 /20 /12 /15/14 /16 /27 /15 /20 /14 /i255 /21 /16 /19 /i255 /32 /16 /22 /29 /2 /13 /i255 /15 /20 /i255 /27 /20/25/18/29 /31 /i255 /30 /22 /15 /21 /i255 /15 /21 /2 /i255 /32 /20 /14 /2 /24 /20 /22 /12 /24 /i255 /19 /15 /16 /12 /13 /16 /14 /13 /19 /26 /i255 /22 /15 /i255 /21 /16 /19 /i255 /93 /6 /i255 /13 /16 /31 /19/i255 /32 /14 /20/25/i255/15 /21 /2 /i255 /13 /22 /19 /27 /20 /3 /2 /14 /31/i255 /15 /20 /i255 /12 /20 /15 /22 /32 /31 /i255 /51 /20 /12 /15 /14 /16 /27 /15 /20 /14 /i255 /20 /32 /i255 /22 /15 /19 /i255 /32 /16 /22 /29 /11 /14 /2 /4 /i255 /92 /32 /i255 /51 /20 /12 /15 /14 /16 /27 /15 /20 /14 /i255 /13 /20 /2 /19 /i255 /12 /20 /15 /i255 /27 /20 /14 /14 /2 /27 /15 /i255 /15 /21 /2 /i255 /32 /16 /22/29 /11 /14 /2 /26 /i255 /20 /14 /i255 /22 /32 /i255 /22 /15 /i255 /22 /19 /i255 /18 /20 /19 /19 /22/28 /29 /2 /i255 /15 /20 /i255 /13 /20 /i255 /19 /20 /26 /i255 /30 /22 /15 /21 /22 /12 /i255 /93 /6 /i255 /13 /16 /31 /19 /i255 /16 /32 /15 /2 /14 /i255 /14 /2 /27 /2 /22 /18 /15 /i255 /20 /32 /i255 /12 /20 /15 /22 /27 /2 /i255 /32 /14 /20/25/i255/15 /21 /2 /i255 /51 /22 /15 /31 /i255 /19 /18 /2 /27 /22/32 /31 /22 /12 /24 /i255 /15 /21 /2 /i255 /32 /16 /22 /29 /11 /14 /2 /26 /i255 /15 /21/2 /12 /i255 /15 /21 /2 /i255 /51 /22 /15 /31 /26 /i255 /28 /31 /i255 /30 /14 /22 /15 /15 /2 /12 /i255 /12 /20 /15 /22 /27 /2 /26 /i255/25/16/31 /i255 /15 /14 /2 /16 /15 /i255 /15 /21 /2 /i255 /32 /16 /22 /29 /11 /14 /2 /i255 /16 /19 /i255 /16 /i255 /13 /2 /32 /16 /11 /29 /15 /i255 /20 /32 /i255 /15 /21 /22 /19 /i255 /23 /24/14 /2 /2/25/2/12 /15 /4 /i255 /94 /16 /14 /15 /22 /16 /29 /i255 /20 /14/i255 /22 /12 /27 /20/25/18/29 /2 /15 /2 /i255 /89 /2 /29 /22 /3 /2 /14 /16 /28 /29 /2 /19 /i255/25/16/31 /i255 /28 /2 /i255 /16 /27 /27 /2 /18 /15 /2 /13 /i255 /32 /20 /14 /i255 /14 /2 /3 /22 /2 /30 /i255 /20 /12 /29 /31 /i255 /30 /21 /2 /12 /i255 /14 /2 /53 /11 /22/14 /2 /13 /i255 /32 /20 /14 /i255 /16 /i255 /19 /18 /2 /27 /22 /32 /22 /27 /i255 /16/12 /13 /i255 /30 /2 /29 /29 /95 /13 /2 /32 /22 /12 /2 /13 /i255 /18 /11 /14 /18 /20 /19 /2 /i255 /16 /12 /13 /i255 /30 /21 /2 /12 /i255 /27 /20 /12 /19 /2 /12 /15 /2 /13 /i255 /15 /20 /i255 /22 /12 /i255 /16 /13 /3 /16 /12 /27 /2 /i255 /28 /31 /i255 /15 /21 /2 /i255 /51/22 /15 /31 /4 /i255 /96 /11 /27 /21 /i255 /89 /2 /29 /22 /3 /2 /14 /16 /28/29 /2 /19 /i255 /30 /22 /29 /29 /i255 /12 /20 /15 /i255 /28 /2 /i255 /27 /20 /12 /19 /22 /13 /2 /14 /2 /13 /i255 /16 /19 /i255 /19 /16 /15 /22 /19 /32 /31 /22 /12 /24 /i255 /15 /21 /2 /i255 /14 /2 /53 /11 /22 /14 /2/25/2/12 /15 /19 /i255 /20 /32 /i255 /15 /21 /22 /19 /i255 /23 /24 /14 /2 /2 /25/2 /12 /15 /i255 /16 /12 /13 /i255 /18 /16 /14 /15 /22 /16 /29 /i255 /20 /14 /i255 /22 /12 /27 /20/25/18/29 /2 /15 /2 /i255 /89 /2 /29 /22 /3 /2 /14 /16 /28 /29 /2 /19 /i255 /22 /12 /i255 /12 /20 /i255 /30 /16 /31 /i255 /14 /2 /29 /22 /2 /3 /2 /i255 /51 /20 /12 /15 /14 /16 /27 /15 /20 /14 /i255 /20 /32 /i255 /22 /15 /19 /i255 /27 /20/25/25/22/15/25/2/12 /15 /19 /i255 /11 /12 /13 /2 /14 /i255 /15 /21 /22 /19 /i255 /23 /24 /14 /2 /2/25/2/12 /15 /4 /i255 /i255 EXHIBIT 1
255
/0/1 /2 /3 /4 /i255 /6 /7 /4 /8 /9 /4 /9 /9/10/i255
/11 /11 /12/i255/14/15 /15 /16 /17 /18 /19 /20 /16 /21 /i255 /22 /19/23/24/i255 /25 /2 /26 /27 /3 /2 /28 /29 /30 /26 /2 /31 /i255/32/33/31 /34 /i255 /35 /36 /37 /38 /36 /28/32/i255/39 /27 /34 /40 /i255 /29 /26 /26 /i255 /29 /41 /41 /26 /27 /35 /29 /30 /26 /2 /i255 /38 /2 /42 /2 /28 /29 /26 /43 /i255 /31 /34 /29 /34 /2 /43 /i255 /29 /37 /42 /i255 /26 /36 /35 /29 /26 /i255 /26 /29 /39 /31 /4 /i255 /44 /33 /35 /40 /i255 /35 /36 /37 /38 /36 /28/32/27/34/45 /i255 /27 /37 /35 /26 /33 /42 /2 /31 /i255 /35 /36/32/41/26 /27 /29 /37 /35 /2 /i255 /39 /27 /34 /40 /i255 /38 /2 /42 /2 /28 /29 /26 /i255 /31 /29 /37 /35 /34 /27 /36 /37 /31 /43 /i255 /29 /37 /42 /i255 /46 /36 /37 /34 /28 /29 /35 /34 /36 /28 /i255 /35 /2 /28 /34 /27 /38 /27 /2 /31 /i255 /34/40 /29 /34 /i255 /27 /34 /i255 /40 /29 /31 /i255 /37 /36 /34 /i255 /29 /37 /42 /i255 /39/27 /26 /26 /i255 /37 /36 /34 /i255 /2 /37 /47 /29 /47 /2 /i255 /27 /37 /i255 /41 /28 /36 /40 /27 /30 /27 /34 /2 /42 /i255 /34 /28 /29 /37 /31 /29 /35 /34 /27 /36 /37 /31 /i255 /39 /27 /34 /40 /i255 /31 /29 /37 /35 /34 /27 /36 /37 /2 /42 /i255 /41 /2 /28 /31 /36 /37 /31 /i255 /36 /28 /i255 /2 /37/34 /27 /34 /27 /2 /31 /4/i255 EXHIBIT 1
256
/0 /1 /2 /3 /4 /i255 /6 /7 /4 /8 /7 /4 /6 /9/10 /i255
/i255
/i255
/12 /13 /14 /15 /16 /15 /17 /i255 /12 /i255
/19/20/21/22/12 /23 /24 /25 /17 /15/20/23/i255 /24 /19 /14 /12 /26 /27 /28 /12 /i255 /i255
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/113 /82 /76 /82 /i255 /74 /72 /74/101/74/71 /76 /83 /i255 /78 /87 /72 /72 /74 /78 /76 /74 /86 /i255 /73 /71 /78 /72 /79 /86 /74 /84 /i255 /116 /79 /76 /i255 /82 /80 /74 /i255 /71 /87 /76 /i255 /72 /73/101/73/76 /74 /86 /i255 /76 /87 /123 /i255 /i255
/124 /125/126/127/128 /129 /130 /131 /132 /133 /134 /i255/106/74/71 /86 /74 /80 /i255 /112 /102 /74 /i255
/93 /82 /78 /74 /i255 /82 /71 /86 /i255 /91 /76 /77 /71 /73 /78 /73 /76 /88 /i255 /96/82/80 /73 /76 /82 /72 /i255 /114 /76 /82 /76 /79 /83 /i255 EXHIBIT 1
263
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EXHIBIT 1
264

OPIOID SETTLEMENT

AGREEMENTS
City Co u n c il Me e tin g
Novem ber 1 4, 2023
A genda I tem 1 5. 1
265
National
Opioid
Settlement
California
Opioid
Settlement
City of
Stockton
Allocations
$3.875 Billion to California
• 15% to State
• 85% to Local Jurisdictions

0.3256176%
Stockton’s weighted allocation
percentage of local jurisdiction
portion
~$10.7 Million to Stockton over
distribution period
$43.3 Billion in National
Opioid Settlement Funds
Source: California Department of Health Care Services
All funding distribution subject to availability from Opioid Settlements 266
Current Settlement Agreements ($2.05B CA)
 Janssen Pharmaceuticals
 “Big Three Distributors” – McKesson, AmerisourceBergen, Cardinal Health
Bankruptcy Settlements
 Mallinckrodt Pharmaceuticals ($14.7M CA)
 Endo Pharmaceuticals
 Purdue Pharmaceuticals L.P .

PENDING Settlement Agreements ($1.8B CA)
 “Pharmacies” – CVS, Walgreens, Walmart
 Allergan Pharmaceutical
 Teva Pharmaceutical Industries Ltd.
267

PROJECT SCOPE
 All funding distribution is subject to availability from California Opioid Settlement Agreements, and no
funding is guaranteed.
 Funding up to the Not-to-Exceed amount will only be
provided during the contractual term.
 Agreement is the first of anticipated initiatives for utilizing OSA funds during multi-year tranches.
 The City will explore other Allowable Uses of Funds with additional community partners.
268

USE OF OPIOID SETTLEMENT FUNDS
High Impact Abatement Activities (HIAA)
 Expansion of Medication-Assisted Treatment (MAT)
Distribution and other Opioid-Related Treatment
 Expansion of Warm Hand-Off Programs and Recovery
Services
 Expansion of Comprehensive Wraparound Services,
including Aftercare Direct Services
 Connection with local partners, such as San Joaquin
County Opioid Safety Coalition, to leverage programs
and resources, and develop a coordinated and
transparent process.

Source: CA Department of Health Care Services, Exhibit E, Final Settlement Agreement 269 CMC

RECOVERY

SERVICES
Stockton City
Counci l
Novem ber 1 4, 2023
A genda I tem 1 5. 1
270
about CMC
C MC Mission: Working together to improve
health and well -being in our communities.

Network of 28 neighborhood health centers
providing comprehensive services:
• Medical (primary and specialty)
• Behavioral Health (low/moderate need)
• Substance Use Disorder (SUD) treatment
• Case management
• Dental
C el ebr ati ng 45 year s as a non - p rofit!
271
SUD Program Overview
In January 2018,
Community Medical
Centers used grant funds
to implement its
substance use disorder
(SUD) services using an
integrated whole-person
approach
Focused on individuals
struggling with one or more
of the following:
• homelessness
• substance use disorder
• mild/moderate
behavioral health issues
• involvement with law
enforcement
Helps meet the needs of
individuals in the
community and decrease
impact on jails and ERs by
lowering barriers to
needed care and services
272
CM C R espi te Center
201 N. Stanislaus Street, Stockton
(a c ross the stre e t from CMC
Channel Cl i ni c/Pharmacy)
Open 24 hours per day,
7 days a week
RES IDENTIAL 2 4 / 7
Monday–Friday, 8am–5pm

MEDIC AL C LINIC
273
Respite Team + Services

COUNSEL ING
BH Clinician (LCSW)
Counselor (SUD Certified)

MEDIC AL
X- Waiver Provider (MD/NP/PA)
Medical Assistant (MA)
Nurse (RN/LVN)

SUPPORT
Case Managers
Patient Health Navigators
Peer Counselors
• 1-1 Behavioral and
Substance Use
Counseling
• Case Managemen
• Medication
Assisted Treatmen
(MAT) for opioids
and alcohol
• Group Counseling
• Sobering (6
chairs—Stockton
only)
• 14-Day Transitiona
Respite Stay
• Monitored Detox
• 1-1 Behavioral and
Substance Use
Counseling
• Group Counseling
• Case Management
• Medication Assisted
Treatment (MAT) for
opioids and alcohol
• Monitored detox
• Sobering
• Serving individuals 18
and over
• 14-Day Transitional
Respite Stay
• 24-hour monitoring
• Life skills classes and
activities
• Community programs
• Presentations
274
Common A reas

SITTING AREA

GROUP ME E TING SPACE

C O VERED P ATIO
Do rm ito ry Style
Caf eter i a
Respite Residential
MEN’S DORM - 8 BEDS
WOMEN’S DORM - 5 BEDS
S P EC IAL NEEDS – 1 R OOM

G RO UP DINING AREA

KITC HEN FAC ILITY

L AUNDRY
275
SUD Progra m Referra ls & E nrollm ent
2 0 18– 2023
Progra m sta rted with a n
enrol l ment rate of 52% ,
whi ch rose to 82% i n
20 23. Ove ra ll ra te is 6 8 %
276
THANK
YOU
Alfo n s o Ap u
C h ie f Be h a vio ra l He a lt h Offic e r
[email protected]
L e iHu a ( L e i) Mc Mille r, L MFT
Dire c tor of SUD Se rvic e s
[email protected]
277

RECOMMENDATION
Approve findings pursuant to Stockton Municipal Code section

3.68.070 in support of an exception to the competitive bidding process.

Award a Professional Services Contract to Community Medical Centers (CMC) of Stockton, CA in the Not-to-Exceed amount of $4,500,000 for three years to utilize funds received through the National Opioid Settlement in order to remediate and provide activities that end, reduce, and/or lessen the effects of the opioid epidemic in communities and include prevention, intervention, harm reduction, treatment and recovery services.

Authorize the City Manager to accept and appropriate all funds allocated to the City of Stockton under the Opioid Settlement Agreement Funds Program
278
City of Stockton
Legislation Text
File #: 23-0992, Version: 1

STOCKTON DIAMOND GRADE SEPARATION PROJECT - EMINENT DOMAIN

RECOMMENDATION
Informational only. No action to be taken.

Summary
This will be an informational presentation from the San Joaquin Regional Rail Commission to update the City Council on the Stockton Diamond Grade Separation Project - Eminent Domain.

City of Stockton Printed on 11/9/2023Page 1 of 1
powered by Legistar™
279
City of Stockton
Council Presentation
November 14, 2023
Agenda Item 15.2
280
Independent piece to Unlocking Valley Rail
2  Extends ACE service North from
Stockton to Natomas
with additional
San Joaquins service
 Extends
ACE service South from to
Ceres/Merced
Stimulates Mobility
Improves Sustainability
Enhances Safety
Economic Vitality
Inspires Connections
281
The Need
3  2 rail lines intersect at-grade at the Stockton
Diamond
 Busiest, most congested rail bottleneck in
California
 Significant congestion & service delays
which impact frequency, reliability and
expansion potential
 Critical transportation hub for freight from
Port of Stockton to national network and for
passenger service between affordable
housing & jobs
 Multimodal delays at rail crossings
282
The Solution
4 NorCal’s Mobility &
Goods Movement
Potential

UNLOCKING
283
5 284
Stockton Diamond Flyover Concept
6 Existing at grade Diamond
crossing removed
Grade separation of Diamond
crossing & Wye connection
tracks
285
Unlocking… requires teamwork
7 286
Stockton Historic Aesthetic Options
8 287
Right of Way Impacts
9  Zero Residential Acquisitions
 Majority of private acquisitions (17)
between E. Scotts Ave. and E. Main
Street (except for CAMCO)
 Combination of full, partial takes and
temporary construction easements
 Eminent Domain Proceedings
required for multiple parcels due to
schedule constraints
 Permanent Road Closures (2)
 City Street Abandonments (3)
288
Opportunity Zone | Union Street Corridor
10 N
289
Opportunity Zone | Dr. MLK Jr. Blvd Underpass
11 Existing Proposed
290
Stockton Diamond Economic Benefits
12 291
Project Status
13  Project Initiation - 2020
 CEQA/NEPA Complete - 2020/2021
 Current Phase - Final Design/ROW
Fall 2021 - Spring 2024
Construction
Summer 2024 - Summer 2027
292
Questions?
14 293
Questions?
15 294
City of Stockton
Legislation Text
File #: 23-1066, Version: 1

PUBLIC HEARING FOR THE DISCUSSION OF THE PROPOSED MEASURE A SUNSET

EXTENSION

RECOMMENDATION
It is recommended that the City Council hold the first required public hearing to discuss an extension of the ¾ Cent General Transaction and Use Tax previously approved by voters at the November 5, 2013 election (Measure A).

Summary
Measure A is a ¾ cent general transaction and use (sales) tax initiative that was approved by voters on November 5, 2013. Pursuant to the Measure A ordinance (2013-07-09-1601, Attachment B), the tax would sunset after ten years, on March 31, 2024, unless Council holds two publicly noticed meetings and adopts specific findings based on evidence. The findings and evidence must demonstrate that (i) the revenues provided by the tax continue to be necessary to accomplish the City’s general purposes, and (ii) that the total compensation paid to City employees is not excessive when compared to those of other similarly situated public-sector employers. This item represents the first of the two required public hearings to review these findings and evidence, which are included as Attachment A.

DISCUSSION
Background
In April 2012, the City initiated development of a Marshall Plan to reduce homicides and violence.

Also in 2012, the City took the necessary action of filing for bankruptcy to maintain health and safety services for the Stockton community. An ultimate recovery plan was needed to emerge from the bankruptcy, become financially solvent again, restore City services, and invest in the Marshall Plan.

In June of 2013, the City Council approved the Funding Proposal for Stockton’s Marshall Plan on Crime and Recovery from Bankruptcy (Attachment C). The Law Enforcement, Crime Prevention, and Other Essential Services Measure was approved by the City Council on July 9, 2013 for placement on the November 5, 2013 ballot. The measure was assigned the letter A on the ballot and was approved by voters with an effective date of April 1, 2014.

Measure A is a ¾ cent transaction and use (sales) tax that was approved as a general tax. Under California law, a general tax is any tax imposed for general governmental purposes, while a special tax is one imposed for specific purposes. However, Measure A was accompanied by advisory Measure B, which allowed voters to express an advisement that 65% of Measure A proceeds would City of Stockton Printed on 11/9/2023Page 1 of 12
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be prioritized for law enforcement and crime prevention purposes such as those outlined in the Marshall Plan, while the remaining 35% would be prioritized for bankruptcy recovery and general service purposes. Measure A and B also instituted the Measure A Citizens’ Oversight Advisory committee, which would meet at least once annually to review the expenditures of revenues generated by the tax measure and make recommendations to Council.

Measure B’s primary programmatic document is the Marshall Plan, which called for doubling the staff of the Office of Violence Prevention (OVP), the institution of Neighborhood Betterment (previously Blitz) Teams, and the approval of 120 additional fully funded police officers. The Office of Violence Prevention targets the highest risk individuals in the community, offering resources and assistance to alleviate the factors that lead to continued violence and gang activity on an individual level. The Neighborhood Betterment Teams perform targeted abatement actions on neighborhoods to reduce blight. Another component of the Marshal Plan that has been implemented through Measure A is Operation Ceasefire, a partner-based violence reduction strategy uses respectful, direct communication with the highest-risk youth and young adults.

On February 25, 2014, the City Council approved the Marshall Plan implementation plan to add 120 sworn police officers and 43 civilian staff positions to rebuild the Police Department, establish the Neighborhood Betterment Team, expand the Office of Violence Prevention, and provide administrative support to these areas. The Police Officer positions were phased in over a three-year period adding 120 new positions to the 365 authorized sworn positions prior to the new tax measure.

The chart below shows the City’s authorized sworn positions and the percent filled for each fiscal year through June 30, 2023. Over the years, Measure A also funded 114 cars, 412 radios, police recruitment expenses, police academy costs, OVP client services, fuel, radio system improvements, and numerous other services and supplies.

In addition to the 65% programmed for law enforcement and crime prevention efforts, 35% was advised, per Measure B, to be programmed towards funding the City’s bankruptcy exit plan, restoring reserves, replacing failing assets, and preparing for the next economic recession. In addition, any savings from the 65% also went to contribute to these efforts, including likely future programming for public safety. The FY 2023-24 Adopted Budget programmed 55%, or $158 million, of the General Fund’s $290 million in expenditures towards the Police Department alone.

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including a separate page for Measure B expenditures in both the City’s Annual Comprehensive Financial Report (ACFR) and Annual Budgets, additional external auditor attestation concerning the Measure’s agreed-upon procedures each year, and, most recently, a performance audit performed by the City’s internal auditors, which was presented to the Council Audit Committee in October 2023.

In addition to expending most of the unrestricted City funds each year on law enforcement, the following restorations to service from bankruptcy were funded using General Fund dollars. While the Measure A funds are legally classified as general-purpose revenues (i.e., General Fund), many of these service restorations would likely have been impossible without the additional General Fund revenues afforded by Measure A. Over the years that the transaction and use tax has been in effect, the City has leveraged the tax to effect considerable service recovery and delivery accomplishments.

Selected General Service / Bankruptcy Recovery Accomplishments Made Possible by Measure A Over the decade that Measure A has been in service, the General Fund:

1. Provided for the fueling and operation of the City’s Police Helicopter and Unmanned Air Support program.

2. Resumed Cost of Living Adjustments for police officers. Cost-of-living and market adjustments increased Police salaries by an average of 6.1% annually over the last five years.

3. Added four Human Resources and Administrative Services Department positions.

4. Provided for a police wellness staff member and wellness program.

5. Performed clean-up efforts related to the City’sunhoused population consistent with Marshall Plan recommendation “Reclaim Neighborhoods: Disorder & Blight Reduction.”

6. Provided for community clean-ups/Clean City initiatives consistent with Marshall Plan recommendation “Reclaim Neighborhoods: Disorder & Blight Reduction.“

7. Maintained the Integrated Ballistics Identification (IBIS) System, software that allows for enhanced forensics in gun-related crimes.

8. Implemented Police Body Cameras.

9. Provided for the restoration and reopening of Fire Station No. 1, including facility improvements and the procurement of furniture, firefighting tools, and equipment.

10. Increased Fire sworn staffing levels 17 positions, with 9 positions for Station No. 1 which will be fully funded by the General Fund when the Staffing for Adequate Fire and Emergency Response (SAFER) grant ends.

11.Expanded the Fire Dispatch Center by 10 positions.

12. Implemented a fireworks program designed to decrease the possession and use of illegal fireworks through public awareness and enforcement.

13.Replaced outdated cardiac monitor/defibrillator equipment for emergency cardiac care.

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14.Added a second fire academy per year to meet firefighter retention demands.

15. Added an Emergency Manager position that is responsible for emergency mitigation, preparedness, response, and recovery.

16. Allowed for Street Maintenance efforts, including: resurfacing streets, installing striped edge line lanes, improving sidewalk tripping hazards address, replacing sidewalks, sealing roadway cracks, street lighting improvement, and filling potholes.

17. Provided for tree services, including stump removal, trees trimmed at City Parks, and removed dead and hazardous trees citywide.

18. Helped fund parks maintenance and improvements, including replenishing playground surfacing; sports courts resurfacing; repairing and replacing playground structures; remodeling park restrooms; improvements to Pixie Woods’ boat, bridge, concession stands, irrigation system, and carousel; swimming pool repairs; Van Buskirk gym floor replacement; Victory Park tennis courts lighting improvements; Weber Point Events Center shade structure maintenance; and Oak Park ball field improvements.

19. Supported one-time costs associated with reopening the Fair Oaks Library in 2017, which was closed during the bankruptcy.

20.Performed field maintenance supporting youth and adult sports at City parks.

21.Allocated $2 million in grant funding for expanded Youth Service programming in FY 2023-24.

22. Resumed and expanded staff training efforts, such as the City Manager’s Leadership Academy.

23. Provided a complete replacement of all public safety radios; nearly every radio was beyond its useful life, and implemented and funded a replacement schedule for radio equipment.

Completed installation of a new radio infrastructure core and new network infrastructure.

24. Internal self-insurance fund resources have been restored to positive balances from negative $48 million.

25. Implemented a modernized Human Resources and Financial System resulting in increased financial accountability and efficiency.

The above list represents “one-time” and ongoing initiatives that might not have been possible without Measure A proceeds. The ongoing costs associated would likely make maintaining some of these efforts infeasible. Reproducing the “one-time” efforts the next time they are needed, such as the next financial system implementation or the next refresh of radio equipment or law enforcement vehicles would become very difficult without the continuation of Measure A revenues, eventually returning many service areas back to bankruptcy levels.

Present Situation
The voter-approved Measure A ordinance allows the City Council to extend the 10-year sunset of the tax through Section 17 of the ordinance, which reads:

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Sunset of Tax. (a) The taxes imposed by this Ordinance shall remain effective until the soonest to occur of the following: (i) the City Council repeals, or the voters repeal, this Ordinance; (ii) the City Council determines that the City has experienced economic recovery as defined in Section 18 of this ordinance, or (iii) ten (10) years from the date the taxes imposed by this Ordinance are first collected. However, the voters hereby authorize the Council to extend the sunset of the taxes pursuant to paragraph (b) of this Section 17.
(b) The City Council may extend the sunset of the taxes imposed by this ordinance as follows.

The Council shall hold two publicly noticed meetings at least 14 days apart and shall adopt findings based on evidence before it that: (i) the revenues provided by the taxes imposed by this Ordinance continue to be necessary to accomplish the purposes stated in Section 21 of this Ordinance and (ii) the total compensation paid to City employees is not excessive when compared to those of other similarly situated public-sector employees.

The above-referenced Section 21 defines the purpose of Measure A revenues as:

Declaration. The proceeds of the taxes imposed by this Ordinance may be used for any lawful purpose of the City, as authorized by ordinance, resolution or action of the City Council. These Taxes are not special taxes within the meaning of section 1, subdivision (d) of Article XIII C of the California Constitution, but are general taxes imposed for general governmental purposes.

This item represents the first of the two publicly-noticed meetings required to extend Measure A.

Measure A is a vital tool for economic recovery and for the City to remain fiscally solvent at its current level of services offered to the community. Approximately 17% of General Fund Revenues are provided for by Measure A funding. If Measure A were to sunset, the financial situation of the City would substantially deteriorate without significant budget cuts to General Fund supported programs, quickly eating through reserves and putting the City back at risk of insolvency.

The Long-Range Financial Plan (L-RFP) projects the City’sfinancial state over the next twenty years.

Measure A tax revenues contributed an average of $36 million per year to the General Fund since 2014. These revenues and the use of the funds are part of the financial projections in the L-RFP. The chart below shows the projected ending General Fund balance with Measure A revenues continuing to the end of the model.

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As can be seen in the graph below, without Measure A revenues the City would quickly start operating at a deficit, consuming General Fund reserves by FY 2027-28, and quickly returning the City to a state of insolvency. Extensive cuts to vital City Services would become necessary for the City to remain solvent.

To best understand the implications of this eventuality, City departments prepared a list of services they would be forced to scale back or eliminate in order to reduce their impact on the General Fund by 17%to maintain solvency. While these cuts are not an action plan, they demonstrate a plausible look at the choices City leadership would be forced to make in terms of service delivery without the City of Stockton Printed on 11/9/2023Page 6 of 12
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revenue provided by Measure A. A select number of these service delivery impacts include:

Department Citizen Impact from Potential Service Reductions Police* Elimination of 155 sworn police positions. Authorized strength would be reduced to 330 from 485, permanently impacting our ability to restore services to the community and our gun violence reduction strategy.

Additionally, there would be staffing cuts in Neighborhood Services, eliminating the Neighborhood Betterment Team funded by Measure A.

Many support positions would be eliminated, further impacting department operations. Maintaining public safety positions is critical to our community's safety.

Office of
Violence
Prevention*
The Office of Violence Prevention (OVP) faces total closure. The department's staff, once 16 strong, would be slashed in half, reverting to pre-Marshall Plan era staffing levels. This extreme budget cut would incapacitate the Office of Violence Prevention, severely impairing their ability to combat gun and gang violence effectively in the community.

The consequences would be dire: a breakdown in conflict mediation could fuel a surge in gang violence. The OVP's shooting emergency response program, a crucial peacekeeping initiative, would be eliminated, heightening the risk of retaliation without intervention.

Emergency relocation services, essential for protecting victims and families, would be severely diminished, leaving them exposed to further harm. Additionally, the reduction in OVP's intensive case management would deprive high-risk clients of vital support, potentially forcing them back into a cycle of gang and gun violence in a desperate pursuit of necessities. This devastating scenario would significantly exacerbate gang and gun violence, posing an overwhelming threat to the citizens of Stockton. This significant budget cut threatens to plunge the City of Stockton back to the alarming homicide levels of 2012, reminiscent of the pre-Marshall Plan era when the city experienced its highest recorded number of homicides-72.

Fire
Department
Total reduction in sworn fire personnel of approximately 30% to meet the 17% budget reduction target. Immediate response areas affected by the closures of three (3) engine companies and one (1) additional truck company will nearly double response times; and the effective response force on-scene time will almost triple the national standard identified in National Fire Protection Association (NFPA) 1710.

Elimination of three engine companies will also result in the closure of three (3) fire stations as there will be insufficient number of personnel on duty each day to keep all fire stations open. Only 10 out of 13 fire stations will remain open. There will be limited resources for firefighting, medical, and all other services provided to citizens and businesses throughout the City; which will have a substantial impact on the Fire Department's ability to respond to emergencies. Reduction of relief crew will impact daily staffing levels as less staff will be available to fill in for absences due to illness, injuries, required training, or vacation.

Loss of three engine companies and one truck company identified above will bring the total number of sworn personnel below the required SAFER grant minimum staffing maintenance requirement, resulting in to the potential loss of grant funds and the reduction of an additional 16 grant-funded firefighters.

Public Works General Fund park sites (some City parks are funded through property owner assessments) will no longer be watered or maintained, with the exception being fire hazard mitigation (weed abatement) only. An example of this type of maintenance is the former Van Buskirk Golf Course site. Contracted services for illegal dumping and homeless encampment cleanups will be reduced to about 50% leaving a large amount of garbage and debris across the City.

Community
Services
Reduction of security guard presence in Community Centers, fields, and aquatics, resulting in a loss of patron confidence in visiting centers, and participation in sports programs. Shootings have occurred at four facilities this year. Increased levels of vandalism and break-ins to facilities, and unruly behavior will be more difficult to stop and prevent.

Additional funds were requested for FY 2023-24 for security services because of patron feedback; seniors and others report feeling unsafe without guards. Stockton Arts Commission annual grants would have to be scaled back, resulting in reduced support of local artists and mural beautification projects. Reduce field maintenance (Stockton Soccer Complex, Misty Holt-Singh, Louis Park), resulting in increased weeds and general health of playfields negatively impacting sports activities and creating safety hazards and poor aesthetic appearance. Loss of revenue from field rentals and tournaments. Eliminate library and community center staff, resulting in a reduction of open hours, including evening and weekend hours. This would further reduce programming available to patrons, access to resources, literacy programming, community-specific programs, and youth/adult activities. Reduce Library Materials, Resulting in City patrons waiting for digital books exasperating the already long wait times for materials as demand for digital items is increasing; fewer copies of newly released physical materials; patrons will need to wait longer. Eliminate support staff, resulting in an inability to support picnic rentals; slow response times to customer inquiries; delayed invoice processing and payment; extended timeline to fill vacant positions; reduced support of Stockton Arts and Parks and Recreation commissions; slower updates to websites.

Economic
Development
Eliminate a position responsible for tracking and fostering business attraction leads, which has greatly improved Stockton’s ability to attract new businesses and assist current businesses with expansion efforts, as well as to recruit developers that best fit with the goals of the Economic Development Strategic Plan. Shut down the Oak Park Ice Rink. The Oak Park Ice Rink is the only Ice Rink in this region and used by several organizations in the area, including St. Mary's high school.

Total to operate is approximately $1.1 million per year, and currently generates approximately $500,000 of operating revenues which helps to offset yearly operating costs. Downscale special events such as Fourth of July, Christmas Parade/Tree Lighting, and Concerts in the Park.

Institute a seasonal closure of the Civic Auditorium, resulting in one full- time position reduction and decreased utilization by the public.

Downscale landscaping and maintenance of Pixie Woods, resulting in a less well-kept and enjoyable park.

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Department Citizen Impact from Potential Service Reductions Police* Elimination of 155 sworn police positions. Authorized strength would be reduced to 330 from 485, permanently impacting our ability to restore services to the community and our gun violence reduction strategy.

Additionally, there would be staffing cuts in Neighborhood Services, eliminating the Neighborhood Betterment Team funded by Measure A.

Many support positions would be eliminated, further impacting department operations. Maintaining public safety positions is critical to our community's safety.

Office of
Violence
Prevention*
The Office of Violence Prevention (OVP) faces total closure. The department's staff, once 16 strong, would be slashed in half, reverting to pre-Marshall Plan era staffing levels. This extreme budget cut would incapacitate the Office of Violence Prevention, severely impairing their ability to combat gun and gang violence effectively in the community.

The consequences would be dire: a breakdown in conflict mediation could fuel a surge in gang violence. The OVP's shooting emergency response program, a crucial peacekeeping initiative, would be eliminated, heightening the risk of retaliation without intervention.

Emergency relocation services, essential for protecting victims and families, would be severely diminished, leaving them exposed to further harm. Additionally, the reduction in OVP's intensive case management would deprive high-risk clients of vital support, potentially forcing them back into a cycle of gang and gun violence in a desperate pursuit of necessities. This devastating scenario would significantly exacerbate gang and gun violence, posing an overwhelming threat to the citizens of Stockton. This significant budget cut threatens to plunge the City of Stockton back to the alarming homicide levels of 2012, reminiscent of the pre-Marshall Plan era when the city experienced its highest recorded number of homicides-72.

Fire
Department
Total reduction in sworn fire personnel of approximately 30% to meet the 17% budget reduction target. Immediate response areas affected by the closures of three (3) engine companies and one (1) additional truck company will nearly double response times; and the effective response force on-scene time will almost triple the national standard identified in National Fire Protection Association (NFPA) 1710.

Elimination of three engine companies will also result in the closure of three (3) fire stations as there will be insufficient number of personnel on duty each day to keep all fire stations open. Only 10 out of 13 fire stations will remain open. There will be limited resources for firefighting, medical, and all other services provided to citizens and businesses throughout the City; which will have a substantial impact on the Fire Department's ability to respond to emergencies. Reduction of relief crew will impact daily staffing levels as less staff will be available to fill in for absences due to illness, injuries, required training, or vacation.

Loss of three engine companies and one truck company identified above will bring the total number of sworn personnel below the required SAFER grant minimum staffing maintenance requirement, resulting in to the potential loss of grant funds and the reduction of an additional 16 grant-funded firefighters.

Public Works General Fund park sites (some City parks are funded through property owner assessments) will no longer be watered or maintained, with the exception being fire hazard mitigation (weed abatement) only. An example of this type of maintenance is the former Van Buskirk Golf Course site. Contracted services for illegal dumping and homeless encampment cleanups will be reduced to about 50% leaving a large amount of garbage and debris across the City.

Community
Services
Reduction of security guard presence in Community Centers, fields, and aquatics, resulting in a loss of patron confidence in visiting centers, and participation in sports programs. Shootings have occurred at four facilities this year. Increased levels of vandalism and break-ins to facilities, and unruly behavior will be more difficult to stop and prevent.

Additional funds were requested for FY 2023-24 for security services because of patron feedback; seniors and others report feeling unsafe without guards. Stockton Arts Commission annual grants would have to be scaled back, resulting in reduced support of local artists and mural beautification projects. Reduce field maintenance (Stockton Soccer Complex, Misty Holt-Singh, Louis Park), resulting in increased weeds and general health of playfields negatively impacting sports activities and creating safety hazards and poor aesthetic appearance. Loss of revenue from field rentals and tournaments. Eliminate library and community center staff, resulting in a reduction of open hours, including evening and weekend hours. This would further reduce programming available to patrons, access to resources, literacy programming, community-specific programs, and youth/adult activities. Reduce Library Materials, Resulting in City patrons waiting for digital books exasperating the already long wait times for materials as demand for digital items is increasing; fewer copies of newly released physical materials; patrons will need to wait longer. Eliminate support staff, resulting in an inability to support picnic rentals; slow response times to customer inquiries; delayed invoice processing and payment; extended timeline to fill vacant positions; reduced support of Stockton Arts and Parks and Recreation commissions; slower updates to websites.

Economic
Development
Eliminate a position responsible for tracking and fostering business attraction leads, which has greatly improved Stockton’s ability to attract new businesses and assist current businesses with expansion efforts, as well as to recruit developers that best fit with the goals of the Economic Development Strategic Plan. Shut down the Oak Park Ice Rink. The Oak Park Ice Rink is the only Ice Rink in this region and used by several organizations in the area, including St. Mary's high school.

Total to operate is approximately $1.1 million per year, and currently generates approximately $500,000 of operating revenues which helps to offset yearly operating costs. Downscale special events such as Fourth of July, Christmas Parade/Tree Lighting, and Concerts in the Park.

Institute a seasonal closure of the Civic Auditorium, resulting in one full- time position reduction and decreased utilization by the public.

Downscale landscaping and maintenance of Pixie Woods, resulting in a less well-kept and enjoyable park.

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Department Citizen Impact from Potential Service Reductions Police* Elimination of 155 sworn police positions. Authorized strength would be reduced to 330 from 485, permanently impacting our ability to restore services to the community and our gun violence reduction strategy.

Additionally, there would be staffing cuts in Neighborhood Services, eliminating the Neighborhood Betterment Team funded by Measure A.

Many support positions would be eliminated, further impacting department operations. Maintaining public safety positions is critical to our community's safety.

Office of
Violence
Prevention*
The Office of Violence Prevention (OVP) faces total closure. The department's staff, once 16 strong, would be slashed in half, reverting to pre-Marshall Plan era staffing levels. This extreme budget cut would incapacitate the Office of Violence Prevention, severely impairing their ability to combat gun and gang violence effectively in the community.

The consequences would be dire: a breakdown in conflict mediation could fuel a surge in gang violence. The OVP's shooting emergency response program, a crucial peacekeeping initiative, would be eliminated, heightening the risk of retaliation without intervention.

Emergency relocation services, essential for protecting victims and families, would be severely diminished, leaving them exposed to further harm. Additionally, the reduction in OVP's intensive case management would deprive high-risk clients of vital support, potentially forcing them back into a cycle of gang and gun violence in a desperate pursuit of necessities. This devastating scenario would significantly exacerbate gang and gun violence, posing an overwhelming threat to the citizens of Stockton. This significant budget cut threatens to plunge the City of Stockton back to the alarming homicide levels of 2012, reminiscent of the pre-Marshall Plan era when the city experienced its highest recorded number of homicides-72.

Fire
Department
Total reduction in sworn fire personnel of approximately 30% to meet the 17% budget reduction target. Immediate response areas affected by the closures of three (3) engine companies and one (1) additional truck company will nearly double response times; and the effective response force on-scene time will almost triple the national standard identified in National Fire Protection Association (NFPA) 1710.

Elimination of three engine companies will also result in the closure of three (3) fire stations as there will be insufficient number of personnel on duty each day to keep all fire stations open. Only 10 out of 13 fire stations will remain open. There will be limited resources for firefighting, medical, and all other services provided to citizens and businesses throughout the City; which will have a substantial impact on the Fire Department's ability to respond to emergencies. Reduction of relief crew will impact daily staffing levels as less staff will be available to fill in for absences due to illness, injuries, required training, or vacation.

Loss of three engine companies and one truck company identified above will bring the total number of sworn personnel below the required SAFER grant minimum staffing maintenance requirement, resulting in to the potential loss of grant funds and the reduction of an additional 16 grant-funded firefighters.

Public Works General Fund park sites (some City parks are funded through property owner assessments) will no longer be watered or maintained, with the exception being fire hazard mitigation (weed abatement) only. An example of this type of maintenance is the former Van Buskirk Golf Course site. Contracted services for illegal dumping and homeless encampment cleanups will be reduced to about 50% leaving a large amount of garbage and debris across the City.

Community
Services
Reduction of security guard presence in Community Centers, fields, and aquatics, resulting in a loss of patron confidence in visiting centers, and participation in sports programs. Shootings have occurred at four facilities this year. Increased levels of vandalism and break-ins to facilities, and unruly behavior will be more difficult to stop and prevent.

Additional funds were requested for FY 2023-24 for security services because of patron feedback; seniors and others report feeling unsafe without guards. Stockton Arts Commission annual grants would have to be scaled back, resulting in reduced support of local artists and mural beautification projects. Reduce field maintenance (Stockton Soccer Complex, Misty Holt-Singh, Louis Park), resulting in increased weeds and general health of playfields negatively impacting sports activities and creating safety hazards and poor aesthetic appearance. Loss of revenue from field rentals and tournaments. Eliminate library and community center staff, resulting in a reduction of open hours, including evening and weekend hours. This would further reduce programming available to patrons, access to resources, literacy programming, community-specific programs, and youth/adult activities. Reduce Library Materials, Resulting in City patrons waiting for digital books exasperating the already long wait times for materials as demand for digital items is increasing; fewer copies of newly released physical materials; patrons will need to wait longer. Eliminate support staff, resulting in an inability to support picnic rentals; slow response times to customer inquiries; delayed invoice processing and payment; extended timeline to fill vacant positions; reduced support of Stockton Arts and Parks and Recreation commissions; slower updates to websites.

Economic
Development
Eliminate a position responsible for tracking and fostering business attraction leads, which has greatly improved Stockton’s ability to attract new businesses and assist current businesses with expansion efforts, as well as to recruit developers that best fit with the goals of the Economic Development Strategic Plan. Shut down the Oak Park Ice Rink. The Oak Park Ice Rink is the only Ice Rink in this region and used by several organizations in the area, including St. Mary's high school.

Total to operate is approximately $1.1 million per year, and currently generates approximately $500,000 of operating revenues which helps to offset yearly operating costs. Downscale special events such as Fourth of July, Christmas Parade/Tree Lighting, and Concerts in the Park.

Institute a seasonal closure of the Civic Auditorium, resulting in one full- time position reduction and decreased utilization by the public.

Downscale landscaping and maintenance of Pixie Woods, resulting in a less well-kept and enjoyable park.

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*Due to Police and OVP utilizing 65% of Measure A funding under Measure B, these departments were asked to provide a scenario which depicted the elimination of all of the 65% Measure B expenditures and their percentage of the 35% remaining in the General Fund, rather than the flat 17% scenario that other departments were asked to prepare.

It is clear that the City would face vital challenges without the proceeds from Measure A; it is for that reason that the process outlined in the Ordinance to renew Measure A is being undertaken and the recommendation is to extend the tax an additional 10 years through March 31, 2034.

Updating the Measure B Spending Plan with the Extension In alignment with the advisory Measure B, Measure A funds have been successfully utilized to implement the Marshall Plan components as outlined in the June 2013 funding plan including rebuilding the Police Department and expanding the Office of Violence Prevention. It is only in the last few years (since the COVID-19 pandemic) that filling police officer positions has become a significant challenge. While the 120 Measure A funded police positions stand open and ready for recruits, hiring to the full authorized strength of 485 sworn police officers has proved a challenge due to many factors, including a nationwide staffing shortage of police officers. The number of filled police positions has risen as high as 97% of the 485 approved positions in recent years, but historic challenges have resulted in a vacancy rate of 28% as of November 6, 2023.

In the October 2023 performance audit, the City’s internal auditors made several recommendations to improve transparency and utilization of Measure A funds, including a more strategic approach to officer retention, developing key performance indicators (KPIs) to better define and publish success of the measure, and implement expenditure guidelines to fully define what expenditures can be classified as Measure B.

If Measure A is continued, several actions will occur to accept these recommendations:
· Additional guidelines on the use of Measure A funds for Measure B purposes are in development and will be introduced during the FY 2024-25 Budget Development process.

These guidelines will assist in prioritizing how any unplanned tax receipts might be spent on service needs such as adding back police officer positions, reopening Fire Truck Company No. 7, adding more OVP outreach workers, or park improvements. · A new strategy will be proposed to reprogram the funding currently appropriated for 60 sworn positions that the City has been unable to fill toward recruitment and retention benefits for all non-management police officer positions. This proposed change in the spending plan is consistent with the recommendations in the October 2023 performance audit. Even with this reprogramming, per the required findings, officer compensation will not be excessive, being lower than several comparable agencies.

The New Strategy
With the consideration to extend Measure A, Staff is proposing a revision to the spending plan that will help in reducing the number of police officer vacancies. The City and the Stockton Police Officers Association (SPOA) have been collaborating to bring a plan to Council that represents a historic breakthrough in the City’s ongoing challenges to recruit and retain law enforcement officers. The City City of Stockton Printed on 11/9/2023Page 10 of 12
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has attempted year after year to hire the 120 officers authorized by the Marshall Plan, and has come close, but new nationwide challenges have pushed this objective farther than ever in the last two years. By reducing the 120 positions to a more achievable target of 60 officers and reprogramming the funds allocated to those positions toward a retention program for all officers, the City will become a more attractive and enticing employer of sworn law enforcement professionals.

The total funding positions out of Measure A would be reduced from 120 to 60 police officers. The funding for these 60 positions would be reprogrammed to additional pay and benefits for all other police positions. These compensation items are subject to the extension of Measure A and will only continue as long as economically feasible. The agreement with the union includes the following language:

1. Funding for recruitment and retention incentives is contingent on the extension of the sunset date in Measure A, which will be considered for approval by Council in December 2023.

2. The City will be reallocating Measure A funding to pay for temporary programs to address critical recruitment and retention issues of police officers.

3. The reallocation of Measure A funds by decreasing the number of allocated police positions from 120 to 60 full-time employees is temporary to fund a temporary recruitment and retention plan for the Police Department.

4. The reallocation of Measure A funds towards these recruitment and retention incentives shall be reviewed annually by the City Manager and the City Council and are subject to available Measure A Funding. The City retains the sole discretion to make changes to the reallocation and such determination shall be final.

5. The City retains the right to increase or decrease the allocation of police positions based on the performance of Measure A Sales Tax.

This revolutionary new plan is expected to significantly decrease the City’slaw enforcement officer vacancy rate through highly attractive benefits for law enforcement officers.

Findings Based on Evidence
The evidence presented in Attachment A clearly supports the findings required by the Measure A ordinance: that the Measure A tax has been and continues to be necessary to provide for the general purposes of the City. The evidence contains a list of services that were restored using the General Fund as well as a list of General Fund supported services that would be considered for elimination in order for the City to remain solvent should Measure A sunset.

The evidence also supports the finding that City employee compensation is not excessive when compared to other similarly situated public-sector employees. While the details of each labor negotiation are protected and confidential information, the broad process and methodology used to determine employee compensation is outlined in Attachment A and the results of these efforts are shown in the appendices (Attachment D). In summary, during negotiations, an external consultant compares each position to comparable positions in other similar agencies to determine the median or “middle” rate for each position. Market adjustments are made to keep employee pay at this median.

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FINANCIAL SUMMARY
At this time no financial action is being requested. The City’s FY 2023-24 Annual Budget assumed the continuation of Measure A tax revenues and would need to be amended if the tax sunsets on March 31, 2024. The sunset extension findings may be approved after a public hearing at the next Council Meeting.

Allowing Measure A to sunset at this time would immediately result in disastrous consequences.

Measure A revenues have averaged $36 million per year since enactment with $46 million budgeted in FY 2023-24. Sales tax revenue increases since the pandemic should be viewed as an anomaly and these levels are not likely to be sustained long-term. In FY 2023-24, 82% of the projected Measure A revenues are budgeted toward Measure B eligible public safety expenses. The sunset of Measure A would inevitably result in a broad reduction to vital City services to the public.

Attachment A - Recommended Findings Based on Evidence for the Extension of the City of Stockton Measure A Sunset
Attachment B - Ordinance No. 2013-07-09-1601 An Ordinance of the City of Stockton Enacting a General Transactions and Use Tax to be Administered by the State Board of Equalization, Upon Adoption by the Voters
Attachment C - Funding Proposal For Stockton’s Marshall Plan On Crime And Recovery From Bankruptcy June 25, 2013 Staff Report
Attachment D - Successor Memoranda of Understanding (MOU) Appendices Outlying Market Adjustments
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RECOMMENDED FINDINGS BASED ON EVIDENCE FOR THE EXTENSION OF THE

CITY OF STOCKTON MEASURE A SUNSET
Section I. Background and Purpose.

On July 9, 2013, the City Council of the City of Stockton (the “Council”) adopted Ordinance No. 2013-07-09-1601 (Attachment B), enacting a general transaction and use tax (“Measure A) upon adoption by the voters. On November 5, 2013, voters approved Measure A, and the taxes imposed were first collected on April 1, 2014.

Ordinance No. 2013-07-09-1601 Section 17 reads:

Sunset of Tax. (a) The taxes imposed by this Ordinance shall remain effective until the soonest to occur of the following: (1) the City Council repeals, or the voters repeal, this Ordinance; (ii) the City Council determines that the City has experie nced economic recovery as defined in Section 18 of this ordinance , or (iii) ten (10) years from the date the taxes imposed by this Ordinance are first collected. However, the voters hereby authorize the Council to extend the sunset of the taxes pursuant to paragraph (b) of this Section 17.
(b) The City Council may extend the sunset of the taxes imposed by this ordinance as follows. The Council shall hold two publicly noticed meetings at least 14 days apart and shall adopt findings based on evidence before it that: (i) t he revenues provided by the taxes imposed by this Ordinance continue to be necessary to accomplish the purposes stated in Section 21 of this Ordinance and (ii) the total compensation paid to City employees is not excessive when compared to those of other similarly situated public-sector employees.

The above-referenced Section 21 reads:

Declaration. The proceeds of the taxes imposed by this Ordinance may be used for any lawful purpose of the City, as authorized by ordinance, resolution or action of the City Council. These taxes are not special taxes within the meaning of section 1, subdivision (d) of Article XIII C of the California Constitution, but are general taxes imposed for general governmental purposes.

Section II. Findings.

Finding (i): The revenues provided by the taxes imposed by Measure A continue to be necessary to accomplish the purposes stated in Section 21 of this Ordinance. (Any lawful purpose of the city, as authorized by ordinance, resolution, or action of the City Council.)
Evidence Supporting this Finding:

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Evidence A: The Long-Range Financial Plan:

The Long-Range Financial Plan (L-RFP) projects the City’s financial state over the next twenty years. Measure A tax revenues contributed an average of $36 million per year to the General Fund since 2014. These revenues and the use of the funds are part of the financial projections in the L-RFP. The chart below shows the projected ending General Fund balance with Measure A revenues continuing to the end of the model.

As can be s een in the graph below, without Measure A revenues the City would quickly start operating at a deficit, consuming General Fund reserves by FY 2027-28, and quickly returning the City to a state of insolvency. Extensive cuts to vital City Services would become necessary for the City to remain solvent.

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Evidence B: City Services that have been restored from bankruptcy levels using General Fund:

Measure A has helped the City ’s General Fund to partially recover from the “Great Recession,” prepare for the next economic downturn , and provide for the restoration of services. The following service areas were identified as experiencing significant cuts in the st aff report accompanying Motion 2013-06-25-1502 (Attachment C) that proposed Measure A. The City has demonstrated that Measure A has significantly contributed to the General fund, indirectly improving recovery in these service areas:

Over the years that the transaction and use tax has been in effect, the City has leveraged the tax to affect considerable service recovery and delivery accomplishments:

Measure B Eligible Accomplishments
Measure A specifically:

1. Performed Neighborhood Betterment missions each yea r, including inspections, enforcement actions, property clean-ups, graffiti removal, and abandoned vehicle citations.

2. Overhauled the Police Department ’s radio systems, including a complete replacement of all 412 radios and implementation of the infrastruct ure to support them.

3. Put 114 Police and Office of Violence Prevention Vehicles into service.

4. Provided ongoing strategic Office of Violence Prevention efforts, including employee placements, social services, educational advancements, housing assistance, ID & DMV issue resolution, and family relocations.

Selected General Service / Bankruptcy Recovery Accomplishments Made Possible by Measure A
Over the decade that Measure A has been in service, the General Fund:

1. Provided for the fueling and operation of the Ci ty’s Police Helicopter and Unmanned Air Support program.

2. Resumed Cost of Living Adjustments for police officers. Cost-of-living and market adjustments increased Police salaries by an average of 6.1% annually over the last five years.

3. Added four Human Resources and Administrative Services Department positions.

4. Provided for a police wellness staff member and wellness program.

5. Performed clean-up efforts related to the City ’s unhoused population consistent with Marshall Plan recommendation “Reclaim Neighborhoods: Disorder & Blight Reduction.”

6. Provided for community clean -ups/Clean City initiatives consistent with Marshall Plan recommendation “Reclaim Neighborhoods: Disorder & Blight Reduction.“

7. Maintained the Integrated Ballistics Identification (IBIS) System, software that allows for enhanced forensics in gun-related crimes.
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8. Implemented Police Body Cameras.

9. Provided for the restoration and reopening of Fire Station No. 1, including facility improvements and the procurement of furniture, firefighting tools, and equipment.

10. Increased Fire sworn staffing levels 17 positions, with 9 positions for Station No. 1 which will be fully funded by the General Fund when the Staffing for Adequate Fire and Emergency Response (SAFER) grant ends.

11. Expanded the Fire Dispatch Center by 10 positions.

12. Implemented a fireworks program designed to decrease the possession and use of illegal fireworks through public awareness and enforcement.

13. Replaced outdated cardiac monitor/defibrillator equipment for emergency cardiac care.

14. Added a second fire academy per year to meet firefighter retention demands.

15. Added an Emergency Manager position that is responsible for emergency mitigation, preparedness, response, and recovery.

16. Allowed for Street Maintenance efforts, including: resurfacing streets , installing striped edge line lanes, improving sidewalk tripping hazards address, replacing sidewalks, sealing roadway cracks, street lighting improvement, and filling potholes.

17. Provided for tree services, including stump removal, trees trimmed at City Parks, and removed dead and hazardous trees citywide.

18. Helped fund parks maintenance and improvements, including replenishing playground surfacing; sports courts resurfacing; repairing and replacing playground structures; remodeling park restrooms; improvements to Pixie Woods’ boat, bridge, concession stands, irrigation system, and carousel; swimming pool repairs; Van Buskirk gym floor replacement; Victory Park tennis courts lighting improvements; Weber Point Events Center shade structure maintenance; and Oak Park ball field improvements.

19. Supported one-time costs associated with reopening the Fair Oaks Library in 2017, which was closed during the bankruptcy.

20. Performed field maintenance supporting youth and adult sports at City parks.

21. Allocated $2 million in grant funding for expanded Youth Service programming in FY 2023-24.

22. Resumed and expanded staff training efforts, such as the City Manager ’s Leadership Academy.

23. Provided a complete replacement of all public safety radios; nearly every radio was beyond its useful life, and implemented and funded a replacement schedule for radio equipment. Completed installation of a new radio infrastructure core and new network infrastructure.

24. Internal self -insurance fund resources have been restored to positive balances from negative $48 million.

25. Implemented a modernized Human Resources and Financial System resulting in increased financial accountability and efficiency.

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The above list represents “one-time” and ongoing initiatives that might not have been possible without Measure A proceeds. The ongoing costs associated would likely make maintaining some of these efforts infeasible. Reproducing the “one-time” efforts the next time they are needed, such as the next financial system implementation or the next refresh of radio equipment or law enforcement vehicles would become very difficult without the continuation of Measure A revenues, eventually returning many service areas back to bankruptcy levels.

Evidence C: City Services that would be existentially threatened by the sunset of Measure A:

Methodology
Currently Measure A accounts for 17% of Budgeted General Fund Revenues. City departments were required to provide a likely scenario for the case where 17% of their General Fund usage were to be eliminated. The resulting list does not represent an action plan but does illustrate the difficult decisions that City Council would be forced to make, and the subsequent service impact that Citizens would feel as City services began to shut down.

Select Impacts of 17% General Fund Reduction on Key Departments Department Citizen Impact
Police*
Elimination of 155 sworn police positions. Authorized strength would be reduced to 330 from 485, permanently impacting our ability to restore services to the community and our gun violence reduction strategy.

Additionally, there would be staffing cuts in Neighborhood Services, eliminating the Neighborhood Betterment Team funded by Measure A.

Many support positions would be eliminated, further impacting department operations. Maintaining public safety positions is critical to our community's safety.

Office of
Violence
Prevention*
The Office of Violence Prevention (OVP) faces total closure. The department's staff, once 16 strong, would be slashed in half, reverting to pre-Marshall Plan era staffing levels. This extreme budget cut would incapacitate the Office of Violence Prevention, severely impairing their ability to combat gun and gang violence effectively in the community.

The consequences would be dire: a breakdown in conflict mediation could fuel a surge in gang violence. The OVP's shooting emergency response program, a crucial peacekeeping initiative, would be eliminated, heightening the risk of retaliation without intervention.

Emergency relocation services, essential for pr otecting victims and families, would be severely diminished, leaving them exposed to further harm. Additionally, the reduction in OVP's intensive case management would deprive high-risk clients of vital support, potentially forcing them back into a cycle o f gang and gun violence in a desperate pursuit of 311

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necessities. This devastating scenario would significantly exacerbate gang and gun violence, posing an overwhelming threat to the citizens of Stockton.

This significant budget cut threatens to plunge the City of Stockton back to the alarming homicide levels of 2012, reminiscent of the pre-Marshall Plan era when the city experienced its highest recorded number of homicides—72.

Fire
Department
Total reduction in sworn fire personnel of approximately 30% to meet the 17% budget reduction target. Immediate response areas affected by the closures of three (3) engine companies and one (1) additional truck company will nearly double response times; and the effective response force on -scene time will almost tri ple the national standard identified in National Fire Protection Association (NFPA) 1710.

Elimination of three engine companies will also result in the closure of three (3) fire stations as there will be insufficient number of personnel on duty each day to keep all fire stations open. Only 10 out of 13 fire stations will remain open.

There will be limited resources for firefighting, medical, and all other services provided to citizens and businesses throughout the City; which will have a substantial impact on the Fire Department's ability to respond to emergencies.

Reduction of relief crew will impact daily staffing levels as less staff will be available to fill in for absences due to illness, injuries, required training, or vacation.

Loss of three en gine companies and one truck company identified above will bring the total number of sworn personnel below the required SAFER grant minimum staffing maintenance requirement, resulting in to the potential loss of grant funds and the reduction of an additional 16 grant-funded firefighters.

Public Works
General Fund park sites (some City parks are funded through property owner assessments) will no longer be watered or maintained, with the exception being fire hazard mitigation (weed abatement) only. An example of this type of maintenance is the former Van Buskirk Golf Course site.

Contracted services for illegal dumping and homeless encampment cleanups will be reduced to about 50% leaving a large amount of garbage and debris across the City.

Community
Services
Reduction of security guard presence in Community Centers, fields, and aquatics, resulting in a loss of patron confidence in visiting centers, and 312

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participation in sports programs. Shootings have occurred at four facilities this year. Increased levels of vandalism and break -ins to facilities, and unruly behavior will be more difficult to stop and prevent.

Additional funds were requested for FY 2023 -24 for security services because of patron feedback; seniors and others report feeling unsafe without guards.

Stockton Arts Commission annual grants would have to be scaled back, resulting in reduced support of local artists and mural beautification projects.

Reduce field maintenance (Stockton Soccer Complex, Misty Holt-Singh, Louis Park), resulting in increased weeds and general health of playfields negatively impacting sports activities and creating safety hazards and poor aesthetic appearance. Loss of reven ue from field rentals and tournaments.

Eliminate library and community center staff, resulting in a reduction of open hours, including evening and weekend hours. This would further reduce programming available to patrons, access to resources, literacy programming, community-specific programs, and youth/adult activities.

Reduce Library Materials, Resulting in City patrons waiting for digital books exasperating the already long wait times for materials as demand for digital items is increasing; fewer copie s of newly released physical materials; patrons will need to wait longer.

Eliminate support staff, resulting in an inability to support picnic rentals; slow response times to customer inquiries; delayed invoice processing and payment; extended timeline to fill vacant positions; reduced support of Stockton Arts and Parks and Recreation commissions; slower updates to websites.

Economic
Development
Eliminate a position responsible for tracking and fostering business attraction leads, which has greatly improved Stockton’s ability to attract new businesses and assist current businesses with expansion efforts, as well as to recruit developers that best fit with the goals of the Economic Development Strategic Plan.

Shut down the Oak Park Ice Rink. The Oak Park Ice Rink is the only Ice Rink in this region and used by several organizations in the area, including St. Mary's high school. Total to operate is approximately $1.1 million per year, and currently generates approximately $500,000 of operating revenues which helps to offset yearly operating costs.

Downscale special events such as Fourth of July, Christmas Parade/Tree Lighting, and Concerts in the Park.
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Institute a seasonal closure of the Civic Auditorium, resulting in one full- time position reduction and decreased utilization by the public.

Downscale landscaping and maintenance of Pixie Woods, resulting in a less well-kept and enjoyable park.

*Due to Police and OVP utilizing 65% of Measure A funding under Measure B, these departments were asked to provide a scenario which depicted the elimination of all Measure B expenditures and their percentage of the 35% remaining in the General Fund, rather than the flat 17% scenario that other departments were asked to prepare.

Finding (ii) The total compensat ion paid to City employees is not excessive when compared to those of other similarly situated public-sector employees.

Evidence D: Methodology Used when Preparing Compensation Studies and negotiating Employee Salaries
During negotiations of successor Memoranda of Understanding (MOU) with the City ’s Safety and Miscellaneous bargaining units, the City utilizes the services of an external consultant to conduct a comprehensive compensation study to use as a tool for negotiating employee salaries. The compensation study helps the City ensure that employees receive fair and equitable compensation to attract and retain talented individuals.

The compensation survey parameters include the selection of public agencies that are used to compare wages and benefits of the City of Stockton. These comparable agencies are selected based on public service employers with whom the City would compete for employees, the size and complexity of the agency, the geographic proximity, and the nature of services provided. During the most recent contract negotiations for Safety in 2022 and with the Miscellaneous bargaining units in 2023, the City utilized the following agencies:
 The Stockton Police Officers ’ Association (SPOA) and the Stockton Police Management Association (SPMA): Bay Area Rapid Transit (BART), City of Bakersfield, City of Elk Grove, City of Fresno, City of Livermore, City of Modesto, City of Ontario, City of Pomona, City of Riverside, City of Sacramento, City of San Bernardino, City of Tracy, and County of San Joaquin.
 The Stockton Firefighters Local 456 (Fire) and Stockton Fire Management Unit:

Alameda County Fire Department, City of Bakersfield, City of Fresno, City of Modesto, City of Ontario, City of Pleasanton, City of Sacramento, San Joaquin Fire Authority (Tracy), Cosumnes Community Services District, County of San Bernardino, Sacramento Metro Fire Department.
 Miscellaneous Units and Unrepresented Management/Confidential and Law Employees: City of Bakersfield, City of Chula Vista, City of Fairfield, City of Fremont, 314

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City of Hayward, City of Livermore, City of Lodi, City of Manteca, City of Modesto, City of Riverside, City of Sacramento, City of Salinas, City of San Bernardino, San Joaquin County, City of Tracy.

The consultant gath ers key salary and benefits data from comparable agencies to determine the City’s position in the labor market based on the median of the market. The labor market median is described as the “middle” of the market and is a common market position because the data is less likely to be skewed by outliers (high and low -paying agencies in the market). The City ’s philosophy for salary increases is to offer a combination of Cost-of-Living Adjustment (COLA) and Market Adjustment increases that will move employees to the median of the market based on total compensation. The City has accomplished moving employees near or at the median of the market during the 2022 and 2023 MOU contract negotiations. The exception is the Operations and Maintenance (O&M) and Trades and M aintenance (T&M) units which have not yet reached an agreement on successor MOUs. Some classifications in these units remain with salaries under the median of the market.

Evidence E: MOU Appendices (Attachment D)
Attached are the appendices from the Memorandums of Understanding between the City and the bargaining groups outlining the COLAs and Market Adjustments made during this year’s labor negotiations demonstrating the effort to bring these classifications to the median of market.

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City of Stockton
Legislation Text
Council Chamber - City Hall
425 N. El Dorado Street,
Stockton CA
File #: 13-0549, Version: 1
title
FUNDING PROPOSAL FOR STOCKTON’S MARSHALL PLAN ON CRIME AND RECOVERY

FROM BANKRUPTCY

RECOMMENDATION
Schedule a noticed public hearing and consideration of a tax measure on July 9, 2013, for placement before the voters at the regularly scheduled election of November 5, 2013. On July 9 it will be recommended that the Council adopt a Resolution declaring a fiscal emergency; calling for the election and approving an Ordinance establishing the specificity for a ¾ cent sales tax to be considered by the voters.
body
Summary
This report presents a recommendation to place a tax measure before the voters on November 5, 2013. Its purpose will be twofold. First, it will provide the necessary general fund resources to fund the City’s comprehensive Marshall Plan on Crime. Second, it will provide the necessary resources to put the general fund back into a solvent position and fund the City’s bankruptcy exit plan. While six of you directed me to come back with this funding plan, explained later in this report such action will require a unanimous vote of the Councilmembers present to hear the item.

As you know, bankruptcy was a necessary action to maintain health and safety services to our community. It was a necessary but interim condition for the City to develop an ultimate recovery plan.

In addition to emerging from bankruptcy and becoming solvent again, the City must restore services and, most importantly, invest in the Marshall Plan on Crime. In order to meet these objectives the City needs additional tax revenues. It is important to note that while the tax measure will result in significant new revenues, it will not get the City back, revenue-wise, to where it was before the Great Recession (which was nothing short of a disaster for Stockton), nor provide the means to restore all service reductions. Moreover, even with all the restructuring savings the City is seeking and can obtain only under Chapter 9, the general fund will fall an average of $11 million short each year from being balanced just at its current level of inadequate public services. This leaves no resources to pay for the Marshall Plan, and leaves the City stuck in a service insolvent position. This is not a feasible option if the City is to achieve a sustainable budget that pays for adequate public services.

The only way to balance the general fund budget sustainably over time, restore adequate reserves, and improve public safety in the community, is to seek voter approval of additional tax revenue. The City has polled likely voters and determined that a 0.75% local sales tax, if structured so that the City could pay for improved safety services, has a good chance of garnering the needed majority vote for City of Stockton Printed on 6/19/2013Page 1 of 19
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a general tax measure. A unanimous vote of the members of the Council present on July 9, the date of the public hearing, is required to declare a fiscal emergency that allows such a tax on the November 5, 2013 ballot. Given the critical need to improve public safety funding, the lag time before tax proceeds come in and the lengthy process to fully implement the Marshall Plan, the City needs to pursue this tax in November, rather than wait until 2014. While the City has not concluded its bankruptcy proceeding, and may not have done so by the November 5 election, we have been declared eligible for Chapter 9 protection, and we will have a bankruptcy exit plan (Plan of Adjustment) before the judge by the election. The judge has made various rulings that minimize our concerns about voter approval of a tax before exiting bankruptcy. Furthermore, even if we received the judge’s approval of a Plan of Adjustment, it would be contingent upon a voter approval of additional revenues, given the insolvent nature of the general fund from a cash and service delivery standpoint. Given the time constraints for a November ballot, the City must take action now.

The “old” City of Stockton
Prior to beginning the road to Chapter 9 protection, staff felt and the Council concurred, the City was not in a supportable position to ask voters for additional tax revenues. At that time, we had: (1) compensation that was above the labor market average; (2) a retiree medical insurance program that would require setting aside 30% of payroll for the next 30 years to fund; (3) outstanding lawsuits with two labor groups over past compensation impositions; (4) a growing debt burden; and, (5) no realistic potential to restore services. Any new taxes would have been consumed by the above factors.

Professional polling supported the City assertions that voters would not approve new taxes without restoring services.

The “new” City of Stockton
However, we now have new labor agreements that have radically reduced compensation to a level that is below the labor market average for similar public agencies. We have resolved any outstanding lawsuits with the two labor groups. We have agreements with labor and retirees that will lead to the complete elimination of retiree medical insurance. The general fund’s annual budget is $40 million lighter due to these reforms. We are in the process of restructuring our debt burden. We now have an omnibus plan for restoring public safety services via the Marshall Plan on Crime. We have a new management team implementing “best practices” throughout the organization. In other words, we now have something to offer the voters. We have a reformed City organization with a comprehensive plan to restore public safety services.

The recommended action will give voters a chance to restore the revenues necessary to operate the City effectively. Management and policy changes made since the disaster will allow the City to operate efficiently. There are alternatives, of course, and they are presented here. The primary alternative approach would be more service reductions and expense cutting, but I do not believe this is consistent with a viable municipality. It should be noted the suggestion that the City somehow pull out of CalPERS to solve our problems is just a variation on this theme. Losing retirement benefits that are the standard statewide would, as the prevailing evidence showed in the bankruptcy eligibility City of Stockton Printed on 6/19/2013Page 2 of 19
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proceedings, result in a mass exodus of employees, leaving the City unable to staff at the numbers and quality needed to sustain critical public services. Cancelling the CalPERS contract would also saddle the City with a $946 million termination payment obligation to pay for accrued liability, which the City has no ability to fund. We would have a crippled organization with a mass employee exodus and no potential for hiring replacements. We would also gain a new “battle front” with another creditor that will consume time and resources, but to what ends? We would have to replace CalPERS with a market competitive pension plan. Instead, we need to continue advocating for CalPERS reform in Sacramento.

Finally, there is the nature of the tax proposal itself. While it is currently being drafted, some basic concepts I heard from Council members and the public include: (1) it should be a general tax to address the two goals of exiting bankruptcy and the Marshall Plan; (2) if “good times” come back, there should be some measures to reduce the likelihood of monies being “wasted” on new risky adventures or excessive employee compensation; and (3) the vast majority of the new tax proceeds should be spent on restoring public safety services. I look forward to any further goals from the Mayor or Council before the City Attorney and I submit ballot measure language for the July 9 th City
Council agenda.

BACKGROUND
Budget Impacts
Given Stockton’s heavily leveraged position, the Great Recession was nothing short of a fiscal disaster for the City. General fund revenues plunged from about $203 million to $166.5 million in one year and kept falling with a projected low of $156.8 million as of your Quarter 2 Budget Report. This revenue implosion coincided with growing costs for debt service, retiree medical coverage and compensation and benefits for employees. The City initially drew down any and all reserves, followed by deep cuts to services and reductions in any discretionary cost categories. Eventually the City was forced to declare a fiscal emergency and unilaterally implement employee compensation and benefit cuts. When these efforts all proved insufficient the City was forced to enter the AB506 mediation process and finally bankruptcy in order to address debt, labor and retiree medical cost obligations.

In other words, the City of Stockton was and remains service insolvent, meaning it is unable to pay all costs of providing services at the level and quality required for community health, safety and welfare.

The budgets for fiscal years 2008-09, 2009-10 and 2010-11 combined to implement $52 million in labor compensation reductions and $38 million in staffing and service level reductions, for a total of $90 million in cuts, equivalent to a 36% reduction in the general fund budget.

Employee compensation was reduced to levels that surveys now show to be below the labor market.

Depending on the labor group, compensation was cut between 12% and 34%, including the following impacts:
· · Furloughs since 2008
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· · Salary COLAs eliminated beginning in 2008
· · Employees paying their own employee retirement contribution of 7-9% of salary · · Medical plan design changes resulting in higher deductibles and co-pays, with a cap on City contribution
· · Add-pays, deferred compensation, longevity, education, uniform allowances either eliminated or reduced
· · Reduction in leave accruals and change in sick/vacation leave cash outs at retirement Staffing level reductions resulted in the following general fund position cuts:
· · Sworn police officers down 25% (-98 FTE)
· · Non-sworn police staffing down 20% (-47 FTE)
· · Fire staffing down 30% (-76 FTE)
· · Non-safety staffing down 43% (-203 FTE)
In addition to 424 total general fund position cuts (31% of total), a net reduction of 42 positions in all other funds resulted in a loss of 466 positions for all funds, or 25% of the entire City workforce. Back when the budget cuts began in FY 2008-09, about 69% of general fund expenditures were allocated to labor costs, and most labor costs (86%) were for public safety. As a result, Stockton has been unable to avoid making reductions in police and fire services, despite the fact that the City ranks low in median income and high in total crime rate. The following factors highlight why the impact of these public safety reductions is more critical in Stockton than in most other California cities.

Police Service Impacts: Low staffing levels have had the following significant impacts on safety for the community:
· · Activation of a “condition blue” during times of peak activity where residents must use on-line or telephone reporting and depending on the type of report, the department may only respond to crimes-in-progress.
· · Elimination of the School Resource Officer Program which puts the burden on school districts to provide funding for a law enforcement presence on campus. This has contributed to a rise in juvenile crime and gang membership.
· · Reduction in gang and drug focused missions to only those funded with grants or outside agencies. Gang-related homicides have increased 525% in three years · · Elimination of the Narcotics Enforcement Team resulted in an increase of drug trafficking within the City and also reduces the funds received through disposition of asset forfeiture City of Stockton Printed on 6/19/2013Page 4 of 19
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proceeds. These proceeds are used to fund capital equipment and other one-time needs such as tactical gear, weapons and protective equipment critical to equipping sworn staff. · · Significant cutbacks to Proactive Policing Strategy have erased all progress made in the mid- 2000s, returning the city to the high crime rates and overwhelming perception that the city is no longer a safe place to live, work or raise a family. A limited Proactive Policing Strategy is employed only on a case-by-case basis. However, there is a complete inability to sustain any efforts after a major mission. The officers are simply too busy responding to calls and cannot get out of their cars to interact with the community as part of any community policing effort.

The detectives group has been greatly reduced, thus triaging what crimes they do investigate. · · Reduction of Community Service Officers has severely limited the ability of the Police Department to attend community meetings and respond to non-emergency accidents and calls for service including traffic control and parking enforcement (which has also reduced traffic violation revenue).

Fire Service Impacts: Sworn staffing has been reduced from 225 total sworn positions at the beginning of FY 2010-11 to the current level of 181 for a total reduction of 44 positions, a reduction of nearly 32% in the past 24 months. Staffing on each piece of equipment has been reduced by one person per company, with truck companies currently staffed at four persons, and engine companies staffed with three personnel. In addition, one fire station and one engine company have closed due to the reduced staffing plan. These reductions have had the following major service impacts on the community:
· · Reduction in the number of trucks assigned in the northern half of the City, which increases the response time for a second truck company, when required, on all structure fires. · · Increase in response times for engines located outside of the Fire Station One area by 1-3 minutes on average and an average increase in 5 to 7 minutes to residents and businesses within in the Fire Station One area.

Exacerbating these impacts are the following workload demands:
· · The Fire Department responded to more than twice the number of fire calls of Fresno, Sacramento, or Oakland, each of which have 50,000-150,000 more in total population served and have more than twice the on-duty staffing.
· · The Fire Department responded to 483 working structure fires in 2011, compared to 599 in the City of Fresno, 273 in the City of Oakland and 444 in the City of Sacramento. The City of Stockton has fewer than half the fire sworn staffing of the Cities of Fresno, Oakland, and Sacramento.
· · AMR (the paramedic service provider in Stockton) exceeded its maximum emergency response time every 4 hours in the City of Stockton, compared to exceeding that response time criteria only every 70 plus hours in the cities of Lodi and Tracy.

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Public Infrastructure and City Facility Impacts: The City has been unable to dedicate sufficient dollars of regular and periodic maintenance of the city’s public infrastructure or facilities for many years. The general fund contributed just $575,000 in FY 2012-13 to capital improvements, with no funding programmed in the FY 2012-17 Capital Improvement Program for the succeeding four years of the proposed five-year program. While not a complete list, the following illustrates the magnitude of the deferred maintenance and capital investment:
· · Vehicles: The replacement backlog is $8.5 million, with 172 units past their useful life. · · Trees: About $3.1 million is needed to bring the urban forest up to an acceptable standard, with an additional $3.5 million is needed annually to provide proper maintenance. · · Roadways: Approximately $10 million per year is needed to maintain the City’s roadways in their current condition; the City’s current street maintenance program allocates only $2 million per year. The current condition can be quantified using a Pavement Condition Index (PCI) which provides an overall rating between 0 and 100 of the entire pavement in a community.

The current PCI for Stockton is 66, which, while in the middle of the fair range, will degrade 2 to 3 points per year. If the network is allowed to deteriorate, repairs become more expensive as cost effective maintenance strategies are no longer feasible. · · Parks: About $12 million would be required to bring play areas, park furnishings, irrigation systems, buildings, courts, ball fields, and flatwork up to a standard level, able to be maintained in the future.
· · City Facilities: The proposed program to provide critically needed improvements to City Hall includes $7 million to replace the roof, replace the HVAC system, and update interior finishes.

For a complete renovation, the cost is likely double that amount ($14 million). Other City facilities would require at least $6 million to catch up on maintenance, not including about $7 million for roof repair alone.

Library Service Impacts: A reduction in the Stockton-San Joaquin County Public Library system- wide operating hours by 28% and staffing levels by 50%. Customer services and literacy programs in the libraries have been reduced and there are fewer books and library materials available to the public, as well as long wait times for materials that are available. Specific reductions in library services include:
• Reduction of open hours by 48% and 11% in City and County branches, respectively. • Reduction of Mobile Library hours by 60%.
• Reduction in books and materials by 50% over the last six years, which severely impacts the ability to acquire new format materials, e.g., digital books. • Suspension of Homework Center Grants offered to elementary and middle school students City of Stockton Printed on 6/19/2013Page 6 of 19
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with low grade point averages and limited opportunities which put them at educational risk.

Community Program Service Impacts: As a result of the elimination of 15 full-time positions and an 80% reduction in part-time hours, Recreation programs have experienced significant service reductions including:
• Partial Closure of the McKinley Community Center in 2009. Most of the recreation programs were moved to other community centers, so residents have to travel further to participate in these recreation opportunities.
• Reduction in operating hours at all other community centers of 20%. • Fewer recreational classes.
• Decrease in operational hours at the Children’s Museum, Pixie Woods amusement park, and Oak Park Senior Center.
• Consolidation of After School Program (ASP) sites resulting in reduced programs for at-risk youth.

Internal Support Needs: What is invisible to most citizens is the degradation of programs necessary to support all services, including public safety. · · The internal self-insurance funds were gradually drained of their resources to the point our workers compensation fund has a negative $43 million fund balance. Our liability fund has a negative $5 million fund balance.
· · Our technology systems have not been replaced in a timely fashion. For example, our financial system is 21 years old, with an estimated replacement cost of $10 million.

This level of cuts, while unheard of among California cities, was still not enough to avoid insolvency.

To be truly sustainable, many of these prior cuts will have to be reinstated at some point. As emphasized in its AB506 restructuring proposal, the City must remain viable as a municipality by achieving a sustainable fiscal position and regain service solvency. Chapter 9 was the only possible option for creating a viable foundation to meet these goals. However, while the restructuring savings achievable only under Chapter 9 are vitally necessary, they are insufficient, even with all of the prior City budget cuts, to resolve the City’s financial woes, without additional resources.

Bankruptcy Process
The City has experienced massive budget deficits for the past several years, owing to the economic collapse of the Central Valley economy during the Great Recession, an excessive debt burden amassed by the City since 2003, the granting of unsustainable labor contracts and retiree medical benefits, past financial miscalculations and the elimination by the state of redevelopment agencies.

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huge employee compensation reductions, the FY 2012-13 Budget faced a shortfall of $26 million.

In February 2012 the City implemented budget corrections to retain a balanced budget through June 30, and started the AB506 mediation process in an effort to avoid bankruptcy. During the AB506 process some participants worked very hard to understand the City’s financial status and many tried to reach agreements that would improve the City’s unsustainable financial position. The City was required by its Charter and by state law to adopt a balanced budget by June 30, and so on June 26, 2012 the City closed its remaining deficit by approving the 2012-13 Pendency Plan. The Pendency Plan suspended debt payments, phased out all retiree medical benefits over one year, continued reductions of pay and benefits imposed under previous Declarations of Fiscal Emergency and reduced compensation components that exceeded those in the City’s labor market to close the $26 million gap.

The City’s eligibility for bankruptcy was immediately challenged by a consortium of financial debt creditors consisting of Assured Guaranty, National Public Finance Guaranty and Franklin Funds, collectively known as the Capital Markets Creditors. While the eligibility issue was being litigated, the City’s bankruptcy Judge, the Honorable Christopher Klein, ordered the City to mediate obligations in dispute and appointed Judge Elizabeth Perris to act as our Mediation Judge.

In mediation with Judge Perris, the hard work and good faith efforts of the City’s labor team and labor groups begun in AB506 continued, resulting in six amended labor agreements by July 24, 2012.

Another two agreements with labor were reached on August 28, 2012. Those agreements resulted in waiving claims to prior imposed pay and benefit reductions, achieving approximately 85% of the original AB506 ask with respect to future savings, and avoided further litigation costs between the labor groups and the City.

In March 2013 the City was able to negotiate a tentative agreement with Ambac relating to the 2003 Certificates of Participation debt obligation. This agreement was finalized in April 2013.

As mentioned above, the Capital Markets Creditors challenged the City’s eligibility for bankruptcy, which consumed months of effort. This legal process culminated in Judge Klein’s ruling on April 1, 2013 granting Stockton access to bankruptcy protection, in which he ruled that Stockton officials and financial experts had demonstrated the City was indeed insolvent on June 28, 2012, that it needed the muscle of Chapter 9 to maintain its viability and that the City had acted in good faith. Through this bankruptcy case the judge has made another important decision. He confirmed that the judiciary cannot tell the City Council how to run itself and spend its money. We believe this is an important decision that greatly reduces the risk of seeking more tax revenues before the judge actually rules on a bankruptcy Plan of Adjustment. Since then the City has continued to be engaged in mediation efforts with retirees, bond creditors and other claimants.

In June 2013 the City was able to reach a tentative agreement with one of the largest creditors in the bankruptcy, the Association of Retired Employees of the City of Stockton (approximately 1,100 retired individuals who had been promised lifetime medical insurance coverage at no cost for the City of Stockton Printed on 6/19/2013Page 8 of 19
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retiree and a spouse). This agreement should be finalized in July 2013.

We also have a tentative agreement with the Marina Towers group.

We have continued to mediate with the remaining creditors which consist of · · The Capital Markets Creditors (Assured, NPFG and Franklin), which have five secured and one unsecured debt obligation between them
· · Sports teams (the Stockton Thunder and Ports), which are both subsidized by the City · · Two legal settlements known as the Price and Jarvis matters · · The State of California Department of Boating and Waterways relative to loan funding for the Stockton Marina
Our schedule calls for submittal of a plan of adjustment in the third Quarter of 2013 which will set the stage for a final resolution via a litigated confirmation process. Once the plan is approved it becomes the basis for exiting bankruptcy. However, I do not think Stockton’s recovery of much needed services should be held hostage to an unknown court schedule and creditor actions.

Bankruptcy presents a special challenge in the context of voter consideration of a new general tax measure. It introduces some uncertainty but because of the previously mentioned judge’s decision we think it is a manageable risk. As I said earlier, neither the Court nor the creditors override the discretion of the elected City Council to determine the requirements for the municipal corporation and to make decisions about the allocation of the resources available. Stockton has been completely honest and transparent about the need to obtain additional general fund revenues for the purposes of addressing the critical public safety needs which exist and addressing the other critical needs of the City. We have shared this fact with creditors.

In addition, such revenues are necessary to allow the City to meet the requirements of the restructuring proposals which have been made in the AB506 process and bankruptcy mediation. Any plan of adjustment approved by the judge will be contingent on voter approval, anyways. Thus, voter approval of more resources makes for a stronger plan from the City. The Court has rebuffed efforts by the creditors to submit alternative spending proposals which are implicitly anchored in alternative public policy determinations, in order to substitute them for the considered determinations actually made by the elected City Council. Our proposal to submit a general tax measure for consideration is shaped by the fact that such a tax best meets the needs of the City and its citizens, and the settled law under Chapter 9. The City retains its ability to make the determinations about resource allocation which are fundamental to elected representative governance.

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DEVELOPMENT OF MARSHALL PLAN TO IMPROVE PUBLIC SAFETY
In April 2012 the City initiated development of a Marshall Plan to reduce homicides and violence.

This is a multi-generational chronic problem that has only gotten worse with a hard economy and reduced police staffing levels, as illustrated by the following points:
• The City of Stockton has the second highest total crime rate per capita for any city with a population of 100,000 or greater in California.
• While violent crime rates dropped 5.5% nationwide in 2010, they were up in Stockton, which ranked 10th in the entire U.S. with 13.81 violent crimes per 1,000 residents. • Despite this high service demand, budget cuts have reduced sworn police staffing from 1.52 per 1,000 residents in 2005 to 1.17 currently (before addition of 17 grant-funded positions), which is the lowest ratio for cities over 250,000 population, notwithstanding our high crime rate.
• The City has a lower level of sworn police staffing than has been recommended by industry standards or which is observed in other similar service settings. The 2006 Braga study recommended sworn officer staffing levels at 2.0 per 1,000 residents, which even with the pending addition of 17 grant-funded officers, would require the addition of 240 police officers at a total annual cost (including equipment and support costs) of $50 million when fully implemented in FY 2020-21.

As the Marshall Plan report endorsed by the City Council stated, violence is a learned and contagious behavior perpetrated by a relatively small number of individuals. There is no single solution to violence, and the Marshall Plan has engaged key stakeholders in the community and criminal justice system to develop workable strategies. This will require a significant financial commitment by the City in excess of $20 million annually.

With five of the six City Council Town Hall Meetings concluded, the feedback has been cautiously supportive. The most common concern revolves around past Council decisions in the areas of employee compensation, retiree health and new business ventures (debt and operating subsidies).

Other feedback on the Marshall Plan was consistent with what you heard at your Council meeting, e.g. we need additional employment opportunities and can we really impact the balance of the criminal justice system. On the topic of mistrust due to previous decisions, I will be submitting a tax proposal on July 9 that responds to these concerns.

Table 1 shows the projected cost by major element of the Marshall Plan, including additional sworn officers added over a three-year period, and staffing level relative to population. Officer costs include supervisory positions needed for an expanded force, vehicles, equipment and overtime. Salaries and benefits include projected future cost increases. Support positions include additional crime analysts and records assistants needed to service the increased number of officers and a small Office of Violence Reduction, whose sole focus will be to ensure the sustainability of the Marshall Plan goals.

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be expanded. Neighborhood improvement programs include expanded code enforcement and neighborhood “blitz” teams.

Table 1
11-12 12-13 13-14 14-15 15-16 16-17 17-18 18-19 19-20 20-21 New Officers - - - 40 40 40 - - - - Total Sworn FTE 345 362 362 402 442 482 482 482 482 482 Est City Pop (000) 295.0 296.5 297.9 299.4 300.9 302.4 303.9 305.5 307.0 308.5 Sworn FTE/1000 Pop 1.17 1.22 1.22 1.34 1.47 1.59 1.59 1.58 1.57 1.56 Costs:

New Officers - - - $6.64 $12.72 $19.37 $19.98 $21.51 $23.10 $24.44 Support Staff - - - 0.52 0.60 0.75 0.76 0.78 0.79 0.81 Violence Reduction Office - - - 0.25 0.26 0.26 0.27 0.27 0.28 0.28 Ceasefire/Peacekeepers - - - 0.61 0.63 0.64 0.65 0.66 0.68 0.69 Neighborhood Imprvmt - - - 1.31 0.71 0.52 0.53 0.54 0.55 0.56 Total Cost - - - 9.33 14.91 21.53 22.18 23.76 25.40 26.78 Projected Marshall Plan Cost Over General Fund Forecast ($ in Millions)

TRANSACTIONS AND USE TAX TO FUND THE MARSHALL PLAN AND OTHER CRITICAL NEEDS
In fall 2012 the City polled likely voters to assess attitudes toward a potential ballot measure to enact an additional local sales tax rate. In January 2013, Mayor Silva proposed a special tax initiative devoted to public safety. On April 2 the City Council discussed that proposal and concerns about harming our bankruptcy efforts and exacerbating the general fund’s financial condition. The Council directed me to facilitate town hall meetings on the Marshall Plan and return with a funding proposal for it. Following discussions with business leaders the City was urged to bring forward a general tax proposal that would both balance the general fund budget and fund the Marshall Plan for improved public safety, which will be the measure before you on July 9.

A local sales tax, technically known as a transactions and use tax, requires voter approval. Normally, a general tax requiring majority voter approval must appear on a municipal ballot along with council elections. The next Stockton municipal ballot does not occur until June 2014, which is too long to wait given the City’s dire financial condition and the need to begin recovery. However, pursuant to Section 2(b) of Article XIIIC of the California Constitution, the City Council may, upon declaration of a fiscal emergency by a unanimous vote of the members of the Council present at the public hearing, submit the proposed transactions and use tax as a special election, in this case consolidating it with the county’s uniform district election of November 5, 2013.

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As shown by the magnitude of the budget cuts already enacted, the City is not in a position to absorb any more cuts. The only alternative to further reducing public services is additional tax revenue. The California Constitution requires voter approval for new taxes, and a number of other California cities have taken tax proposals to their residents in recent years. As reported by the California Local Government Finance Almanac, on the November 2012 statewide ballot a total of 48 of 60 city general tax (majority vote) measures were passed (80% approval rate), while 5 of 15 city special tax (two- thirds vote) measures passed (33.3% approval rate). As to local transactions and use tax measures specifically, 31 of 33 city general tax measures passed (93.9% approval rate) versus 1 of 3 city special tax measures (33.3% approval rate). This recent level of success of general taxes is significantly higher than the outcome for such measures since 1995, as shown in Table 2.

Table 2
Passed Failed Total % Passed
General Tax 115 54 169 68.0%
Special Tax 27 28 55 49.1%
Total 142 82 224 63.4%
City Transaction and Use Tax Measures (1995-2013)
Table 3 breaks down the city transaction and use taxes currently in effect by level of tax rate.

Section 7285.9 of the Revenue and Taxation Code provides that a city may levy a transactions and use tax in multiples of 0.125% provided all overlapping tax rates do not exceed 2.00%. No city in California has ever levied greater than a combined 1.00% local rate. There are 10 other cities that have two transaction and use tax rates, as would Stockton if this measure is enacted. Stockton has the 0.25% Measure W rate now, and adding 0.75% would go to the maximum any other city is charging. For competitive reasons, it would not be prudent to go in excess of this amount.

Table 3
General Special
Rate Tax Tax Total

0.250% 14 6 20

0.375% 1 0 1

0.500% 59 17 76

0.750% 6 2 8

1.000% 20 0 20
City Total 100 25 125
Other Agencies 39
Grand Total 164
Transaction and Use Taxes Currently in Effect
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The City’s poll of likely voters last fall showed an initial 71% support for a 0.75% general sales tax to “improve and maintain essential City services, which may include a community-wide plan, developed by local leaders and criminal justice experts, with strategies to reduce crime in Stockton, including expanding the police force, improving 9-1-1 emergency response services, increasing anti-gang and crime prevention programs, and other general services such as street repair, libraries and parks.” After hearing both pro and con arguments the level of support moved to 68%. Alternatively, only 21% supported a measure whose proceeds “would primarily provide funding to pay existing debt holders, employee compensation and benefits, and city paid retiree medical benefits, but would not improve existing services or restore services that have previously been cut.”

PROPOSED TAX
The proposed ballot measure language is currently being drafted and will be available during the normal publication of the July 9 City Council Agenda. The proposed new tax would be a 0.75% transaction and use tax (sales tax) that as a general tax requires a majority voter to enact. It is expected to produce approximately $28 million in its first full year and grow at a rate of about 3.5% annually. Over a ten-year period approximately $219 million would be used to fund the Marshall Plan, and approximately $112 million would be used to fund the City’s exit from bankruptcy. With a three- year phase-in to full additional police staffing, and the need to eliminate the remaining general fund shortfall and re-establish reserves at the outset, in the initial years a larger proportion of funds would be devoted to the Bankruptcy Recovery Plan. By year four and thereafter the added public safety services would require 70-75% of the additional tax revenues; over time the ratio is projected to be approximately 66% for Marshall Plan expenses and 34% for the Bankruptcy Recovery Plan and other services. Given the well documented poor practices of the past, I will be recommending very unique accountability measures in the tax ordinance that ameliorate the risks going forward.

Table 4 shows the recent and future changes in total sales tax rate applicable in Stockton, assuming implementation of a 0.75% transactions and use tax.

Table 4
Rate Date Action

8.00% 1/1/12 Before Prop 30

8.25% 1/1/13 After Prop 30

9.00% 4/1/14 Approval of New Tax

8.75% 1/1/16 Prop 30 Expires
Change in Total Sales Tax Rate in Stockton
Table 5 compares the current and proposed level of total sales tax rate in Stockton to the current total rates applicable in surrounding jurisdictions.

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Table 5

9.000% Lathrop

9.000% Livermore

9.000% Stockton (proposed)

8.625% Fairfield

8.500% Manteca

8.500% Sacramento

8.500% Tracy

8.250% Stockton (current)

8.000% Elk Grove

8.000% Lodi

7.625% Modesto
Surrounding Jurisdiction Tax Rates

FINANCIAL SUMMARY
Revenue Generating Capacity
If the tax is approved on the November 5, 2013 ballot, it will take effect on April 1, 2014, and the City will accrue one quarter’s worth of revenue (approximately $6.8 million) for FY 2013-14, with full year collection starting in FY 2014-15 at approximately $28 million annually.

A transaction and use tax may raise less (or more) than the equivalent rate of sales tax due to special provisions affecting vehicle sales and other transactions that are based on residency of the buyer, rather than location of the sale. HdL Companies, a sales tax consultant, summarizes the revenue effect as follows: “In projecting revenues, cities who serve a regional market for vehicles or merchandise to be delivered elsewhere such as contractor materials or industrial equipment and goods, will find that their transactions and use tax is proportionally lower than their sales tax revenues. A city whose residents and businesses must shop outside the city for vehicles and business and construction related goods, will find that their transactions and use tax receipts are proportionally higher than their sales tax revenues.”
As a regional market, a transactions and use tax in Stockton would raise proportionately less than its sales tax revenue, which is the experience with the City’s current 0.25% tax for public safety (Measure W), which generates around 94.6% of a comparable rate of sales tax. The revenue projected from the proposed 0.75% tax is based on the revenue-generating capacity of Measure W (i.e., three times the revenue collected from Measure W’s 0.25% tax rate).

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Table 6 shows the projected use of the new tax proceeds between balancing the general fund budget (Bankruptcy Recovery Plan) and improving public safety services (Marshall Plan). Initially more proceeds are devoted to bankruptcy recovery, and then as Marshall Plan costs are fully phased in, more proceeds will be used to fund this improvement in public safety services. Over a ten-year period, it is estimated that safety services will consume approximately 66% of total tax proceeds, and balancing the general fund budget and emerging from bankruptcy will require approximately 34% of total tax proceeds.

Table 6
13-14 14-15 15-16 16-17 17-18 18-19 19-20 20-21 21-22 22-23 23-24 New Tax Revenue $6.9 $28.4 $29.4 $30.4 $31.5 $32.7 $33.8 $35.0 $36.2 $37.5 $29.1 Marshall Plan - $9.3 $14.9 $21.5 $22.2 $23.8 $25.4 $26.8 $27.0 $27.5 $21.0 % Annual Use of Tax 0% 33% 51% 71% 70% 73% 75% 77% 75% 73% 72% % Cumulative Use 0% 26% 37% 48% 54% 58% 61% 63% 65% 66% 66% Bankrupcy Recovery $6.9 $19.1 $14.5 $8.9 $9.4 $8.9 $8.4 $8.2 $9.2 $10.0 $8.1 % Annual Use of Tax 100% 67% 49% 29% 30% 27% 25% 23% 25% 27% 28% % Cumulative Use 100% 74% 63% 52% 46% 42% 39% 37% 35% 34% 34% ($ in Millions)
Projected Use of New Tax Revenue Over Ten Year Period
General Fund Forecast
Unless this tax is approved by the voters, the City will continue to run shortfalls. Tables 7, 8 and 9 on the following pages are based on 2011-12 financial statements pending audit and 2012-13 projections as of your Quarter 2 Budget Report. Table 7 shows the annual general fund shortfall and ending fund balance after Chapter 9 restructuring savings, but without both the Marshall Plan and new tax revenue, over the City’s 10-year forecast period; the annual shortfall ranges from $8.6 million in FY 2013-14 to $79.1 million by FY 2020-21, and deficits begin in FY 2014-15.

Table 7
11-12 12-13 13-14 14-15 15-16 16-17 17-18 18-19 19-20 20-21 Total Revenue $160.3 $156.8 $159.5 $161.5 $165.5 $171.1 $176.0 $181.1 $186.3 $190.1 Total Expenditures 166.8 156.9 159.5 170.1 177.0 179.1 186.0 192.9 200.7 204.9 Net Annual (6.6) (0.1) - (8.6) (11.5) (8.0) (10.0) (11.8) (14.4) (14.8) Beginning Balance 6.6 0.1 - - (8.6) (20.1) (28.1) (38.1) (49.9) (64.3) Ending Balance 0.1 0.0 - (8.6) (20.1) (28.1) (38.1) (49.9) (64.3) (79.1) Bal as % of Total Exp 0.0% 0.0% 0.0% -5.0% -11.3% -15.7% -20.5% -25.9% -32.0% -38.6% Summary Forecast After Chapter 9 But No Marshall Plan and No New Tax ($ in Millions)
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Table 8 shows the impact of adding the cost of the Marshall Plan to Chapter 9 savings, but without the new tax, which results in annual shortfalls $17.9 in FY 2014-15 to $223.0 million by FY 2020-21; the ending fund balance falls dramatically farther into deficit.

Table 8
11-12 12-13 13-14 14-15 15-16 16-17 17-18 18-19 19-20 20-21 Total Revenue $160.3 $156.8 $159.5 $161.5 $165.5 $171.1 $176.0 $181.1 $186.3 $190.1 Total Expenditures 166.8 156.9 159.5 179.4 191.9 200.6 208.2 216.7 226.1 231.7 Net Annual (6.6) (0.1) - (17.9) (26.4) (29.5) (32.2) (35.6) (39.8) (41.6) Beginning Balance 6.6 0.1 - - (17.9) (44.3) (73.8) (106.0) (141.6) (181.4) Ending Balance 0.1 0.0 - (17.9) (44.3) (73.8) (106.0) (141.6) (181.4) (223.0) Bal as % of Total Exp 0.0% 0.0% 0.0% -10.0% -23.1% -36.8% -50.9% -65.4% -80.2% -96.2% Summary Forecast After Chapter 9 With Marshall Plan But No New Tax ($ in Millions)
Table 9 shows the impact of adding a 0.75% local sales tax, as well as the cost of the Marshall Plan and Chapter 9 savings, which results in a balanced budget throughout the forecast period, with reserve levels averaging approximately 8% for the period of FY 2013-14 through 2020-21. While the balance declines in the latter years of the City’s 10-year forecast, beyond that forecast period the rate of decline slows in the mid-2020’s and the general fund is projected to avoid going into deficit due largely to the expected long-term trend of pension costs.

CalPERS rates are projected to increase significantly through 2020 due to recently adopted rate smoothing and unfunded liability amortization policies, an expected further reduction in the discount rate (actuarial investment return), and other changes. However, the Public Employee Pension Reform Act (PEPRA) grants lower benefits to new employees, so savings will accrue over time with turnover in the workforce. Also, under the smoothing and amortization changes the City pays more in the near-term, but less later on. As a consequence of this restructuring, pension contribution rates as a percent of payroll will level off and then begin to decline, resulting in projected annual surpluses and increasing fund balance by the late 2020’s. The City is projecting this rate of decline at a much more conservative rate than that discussed by CalPERS staff.

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Table 9
11-12 12-13 13-14 14-15 15-16 16-17 17-18 18-19 19-20 20-21 Total Revenue $160.3 $156.8 $166.4 $190.1 $195.3 $202.0 $208.0 $214.2 $220.5 $225.3 Total Expenditures 166.8 156.9 159.5 179.4 191.9 200.6 208.2 216.7 226.1 231.7 Net Annual (6.6) (0.1) 6.9 10.8 3.4 1.3 (0.2) (2.5) (5.6) (6.3) Beginning Balance 6.6 0.1 - 6.9 17.6 21.0 22.3 22.2 19.7 14.0 Ending Balance 0.1 0.0 6.9 17.6 21.0 22.3 22.2 19.7 14.0 7.7 Bal as % of Total Exp 0.0% 0.0% 4.3% 9.8% 11.0% 11.1% 10.6% 9.1% 6.2% 3.3% ($ in Millions)
Summary Forecast After Chapter 9 With Both Marshall Plan and New Tax

ALTERNATIVE TO NEW TAX REVENUE IS ADDITIONAL BUDGET CUTS The alternative to enacting a new tax is to make additional reductions in service levels. Otherwise, the City cannot present a viable Plan of Adjustment for exiting bankruptcy. · · Balancing the general fund budget without both the Marshall Plan and new tax would require a 7% reduction in the total general fund expenditures remaining after Chapter 9 restructuring.

This would generate approximately $11 million in savings when fully implemented in FY 2014- 15 (half that amount in FY 2013-14 by the time cuts could be started), with growth in the value of the avoided costs over time.
· · Balancing the general fund budget with
the Marshall Plan but no new tax would require a 15%
reduction in total general fund expenditures remaining after Chapter 9 restructuring, which would generate approximately $26 million in savings when fully implemented in FY 2014-15 (half that amount in FY 2013-14 by the time cuts could be started), with growth in the value of the avoided costs over time.

Additional budget cuts in this range of $11-26 million, especially if the weight of cuts were borne by non-safety services, would seriously undermine the long-term viability of Stockton. Even if the Marshall Plan is adopted, the City’s viability is not determined by public safety services alone. As important as is public safety, citizens and businesses don’t move to or stay in a city solely on the basis of police services. Parks, libraries, recreation and/or entertainment opportunities, schools, employment opportunities, reputation, sense of safety, predictability and lifestyle are all part of a city’s long-term viability.

Table 10 shows the type of budget cuts that might be required in the absence of new tax revenue.

These items were on a contingent cut list from the FY 2011-12 budget and total $22 million. This is more than enough to balance the general fund budget without the Marshall Plan, or just enough to City of Stockton Printed on 6/19/2013Page 17 of 19
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balance the budget while funding about 75% of the Marshall Plan.

Table 10
Non-Safety: Fire:

Admin, CC, Non-Dept-cut 5 FTE $354 Truck 2-cut 1 FF/shift $405 Admin Svc-cut 9 FTE 442 Truck 3-cut 1 FF/shift 405 Auditor-15% reduction 65 Truck 7-cut 1 FF/shift 405 City Atty-cut 1 advisory atty 126 Close Engine 6 1,351 City Clerk-cut 1 FTE 79 Close Engine 11 1,351 Econ Dev-15% reduction 103 Close Engine 14 1,351 Ent Venue-reduce maint/other 244 Close Truck 3 1,351 Ent Venue-close ballpark 366 Other savings 65 Develop Svcs-elim GF subsidy 1,000 Reduced Fire Dist reimburse (662) Golf-close Van Buskirk 250 Subtotal Fire Dept 6,022 CIP-cut GF funding 575
HR-reduce training 80 Police:

HR-cut 3 FTE 184 Cut 30 CSOs (net of rev loss) 1,751 Library-cut 7 FTE/31% fewer hrs 500 Records staff cut 3 FTE 199 Library-cut landscaping 50% 10 Telecommunication cut 3 FTE 267 Rec-cut 3 FT/3 PT 242 Investig/traffic/other cut 14 FTE 1,139 Rec-after school reduction 48 Traffic section cut 12 FTE 1,368 Peacekeepers-cut GF 15% 27 Investig cut 21 FTE (6 left) 2,543 PW-park maint to min levels 185 Patrol cut 31 FTE 3,727 PW-cut water use 50% 165 Subtotal Police Dept 10,994 PW-cut 1 FTE, fund shift to Gas 170
Subtotal Non-Safety Depts 5,214 Grand Total Cuts 22,230 Example of $22 Million in Additional Cuts That Might Be Required in the Absense of New Tax Revenue Based on Contingent Departmental Cut List from 2011-12 Budget ($ in 000) It would be difficult, however, to implement the Marshall Plan while simultaneously cutting other key elements of the Police Department. Table 11 shows that if the $11 million in Police cuts were spread to other departments, the percentage impact jumps to unsustainable levels: if both Police and Fire were held harmless from cuts of this magnitude, non-safety would suffer a 54% reduction in budget levels.

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File #: 13-0549, Version: 1
Table 11
($ in 000) Other Fire Police
Depts Dept Dept Totals
Cuts from Contingent List $5,214 $6,022 $10,994 $22,230 % Cut (13-14 dollars) 13% 17% 13%
No Cuts to Police 11,125 11,105 - $22,230 % Cut (13-14 dollars) 27% 31% 0%
No Cuts to Police+Fire 22,230 - - $22,230 % Cut (13-14 dollars) 54% 0% 0%
Sample Impact Assuming Re-Allocation of Contingent Cut List Among Safety and Non-Safety Departments ($ in 000)
These impacts are limited to the $22 million value of the cuts on the existing list. Cutting the entire $26 million needed to both balance the budget and fund the full Marshall Plan, without affecting the Police and Fire departments, would boost the cuts to the remaining non-safety departments from 54% to 62%. All of this comes on top of previously implemented cuts totaling 36% of total general fund expenditures. Even if none of these cuts came from the Police Department, this action would be like building a structure on a crumbling foundation. It would be difficult, if not impossible, to run the entire City without the administrative, planning, financial and other support functions that would be largely eliminated through an effort to balance the general fund budget, and pay for the Marshall Plan, without any additional resources.

CONCLUSION
It is recommended that the City Council call for a public hearing for July 9 and consider placing a tax measure before the voters for approval on November 5, 2013. On July 9 it will be recommended that the Council adopt the Resolution calling the election, and approve the Ordinance establishing the terms and conditions of a sales tax for consideration by the voters. First reading of the ordinance is done by Council and under state law the second reading is the action by voters at the election.

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Measure A
Extension
First Public
Hearing
November 14, 2023
Agenda Item 16.1
419
Measure A Overview
• ¾ Percent Sales and Use Tax
• $36 million average in General Revenue each year (17%) • Tax will sunset after 10 Years
• Extension requires two Public Hearings to Adopt Findings 2 SUMMARY
420
Background

APPROVED BY VOTERS
Measures A and B were approved by voters as a General Tax.

MEASURE B
• Nonbinding advisory measure
• Created 120 new police positions
• Advised 65% prioritized for Law Enforcement & Crime Prevention AUDITS
Subject to the General Fund (ACFR) Audit, Agreed Upon Procedures Attestation, and Most recently an internal performance audit

HEALTHY CITY
Instrumental to a fiscally healthy City that can perform basic services for its Citizenry in response to the bankruptcy 3 421
Revenues
4 REVENUES

6.9 28.4

29.4 30.4

31.5 32.7

33.8 35.0

36.2 37.5

29.1 6.6

27.8 29.3

30.0 31.7

34.6 34.3

40.8 45.4

49.7 34.5

0.0 10.0

20.0 30.0

40.0 50.0

60.0 FY
2013-14
FY
2016-17
FY
2018-19
FY
2020-21
FY
2022-
23*
FY
2023-
24*
Measure A Revenues
(Millions)
Projected Actual*Projected using current data
• Revenues have been
steady with modest
increases
• Expected to return to a
normal level within the
next several fiscal years if
tax is re-adopted.
• Pandemic Increases should
be viewed as an anomaly
and these levels are not
likely to be sustained
moving into the future.
422
Marshall Plan
Recommendations

OPERATION CEASEFIRE
This partner-based violence reduction strategy using respectful, direct communication with highest-risk youth and young adults has been implemented.

OFFICE OF VIOLENCE PREVENTION/ OUTREACH

WORKERS
OVP staff has doubled. In 2022 alone, OVP assisted 115 clients in securing employment, provided relocation support to 76 families, connected 109 clients with social services, and conducted 45 conflict mediations.

NEIGHBORHOOD BETTERMENT TEAM
In FY 2021-22 this team completed 3 missions, resulting in 1,556 inspections, 187 enforcement actions, 5 property clean-ups, 10,065 sq. ft. of graffiti removal, and 86 abandoned vehicles.

ADD POLICE OFFICERS
Before Measure A, 347 filled of 365 positions. Budgeted positions increased to 485. By FY 2017 – 445 of 485 filled (92%), peak filled positions was reached in FY 2018 with 470 and stayed over 90% filled until 2021. Filled sworn positions at 6/30/2023 were 364. 95% 96% 92% 92% 97% 96% 95% 91% 82% 75%
365
405
445
485
6/30/2014 6/30/2017 6/30/2019 6/30/2021 6/30/2023
Authorized Police Officer Positions
% Hired Authorized Sworn Postions
49 58
71 32
49 49 49 55
33 34
56 39 42
2010 2012 2014 2016 2018 2020 2022
Homicides
Measure A
Effective
4/1/14
423
General Fund
Service
Highlights
REOPENED FIRE STATION 1
Firefighting tools, furniture, and
equipment, 9 firefighting
positions.

REOPENED THE FAIR OAKS

LIBRARY
ALLOCATED $2 MILLION

FOR EXPANDED YOUTH

PROGRAMMING
6 In addition to Law Enforcement
and Crime Prevention efforts…
…Measure A has made these
bankruptcy recovery items
possible.

Including Weber Point, Pixie
Woods, Van Buskirk, and Victory
Park

IMPROVED AND MAINTAINED

PARKS AND REC CENTERS

ALLOWED FOR TREE & STREET

MAINTENANCE EFFORTS

RESUMED COST-OF-LIVING

ADJUSTMENTS FOR POLICE

EXPANDED THE FIRE DISPATCH
CENTER

RESUMED STAFF TRAINING

IMPLEMENTED A

MODERNIZED HUMAN

RESOURCES AND FINANCIAL
SYSTEM

RESTORED POSITIVE

BALANCES TO INTERNAL

SELF-INSURANCE FUNDS
Previously negative ($48 million!)POLICE HELICOPTER AND

UNMANNED AIR SUPPORT

PROGRAM
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Sunset Provisions and Findings
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Sunset Provision
SUNSET
Section 17 of the ordinance
Sunset of Tax. (a) The taxes imposed by this Ordinance shall remain effective until the soonest to occur of the following:
(i) the City Council repeals, or the voters repeal, this Ordinance; (ii) the City Council determines that the City has experienced economic recovery as defined in Section 18 of this ordinance, or (iii) ten (10) years from the date the taxes imposed by this Ordinance are first collected. However, the voters hereby authorize the Council to extend the sunset of the taxes pursuant to paragraph (b) of this Section

17. 426
Economic Recovery Requirement
9 Economic Recovery is
measured annually after
the audited financial
reports and presented to
the oversight committee.

Per the table, revenues
have not yet reached
peak bankruptcy levels,
adjusted for inflation.

Detailed Adjusted Revenues compared to CPI-Adjusted
Peak Revenues
(Dollars in Millions) 21-22 21-22 22-23
ACFR Gen Fund Gen Fund
page 24 Portion Only Budget
Revenues 303.97 287.25 285.35
Sale of Capital Assets 0.02 0.02 0.06
303.99 287.26 285.41
Minus Measure A Revenues (45.41) (42.08)
Gen. Fund Revenue after Adjustments 241.85 243.33
Fully Adjusted Revenue Over/(Under) $(23.10) $(41.51)
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Extension and Findings
The revenues provided by the taxes
imposed by this Ordinance continue
to be necessary to accomplish the
purposes stated in Section 21* of
this Ordinance
*SECTION 21
The proceeds of the taxes imposed by this Ordinance may be used for any lawful purpose of the City, as authorized by ordinance, resolution or action of the City Council.

EMPLOYEE COMPENSATION IS

NOT EXCESSIVE

FINDINGS

REVENUES CONTINUE TO BE

NECESSARY
The total compensation paid to City
Employees is not excessive when
compared to those of other similarly
situated public-sector employees
Section 17 (b) The City Council may extend the sunset of the taxes imposed by this ordinance as follows. The Council shall hold two publicly noticed meetings at least 14 days apart and shall adopt findings based on evidence before it that:
428
• 17% of General Fund
• Loss = Massive cuts to nearly every service area
• Effective Elimination of Violence Prevention
• Closure of three fire stations doubling response times • Reduction of Library Open Hours
• Closure of Oak Park Ice Rink
• Severe reductions in park maintenance and watering
• Reduced cleanups of homeless encampments
• Reduced police force and response times
11 FINDINGS
Measure A is NECESSARY!
429
Without Measure A the City will expend its reserves by the end of FY 2027-28 and become insolvent unless significant cuts to vital city services are made. 12 FINDINGS
Impact of Sunset on Long-Range Financial Plan
Fund Balance without Measure AFund Balance with Measure A 430
Employee Salaries are NOT excessive
Compared to Similarly Situated Agencies

MOUS ARE REGULARLY

NEGOTIATED
The City uses an external
consultant who compares City
employee compensation to
other agencies’ compensation

THE MIDDLE OF THE

MARKET RATE
The independent consultant
gathers salary and benefits
data from these agencies that
helps the City target the labor
market median for each
position.

MARKET ADJUSTMENTS
Market adjustments based on
the compensation study are
negotiated and included in the
successor labor agreements
13 431
Updating the Measure B
Spending Plan with the Extension
14 432
• The Measure A Performance Audit released in October 2023 recommended:
• Leverage Salary Savings for greater retention
• Create expenditure Guidelines to help identify Measure B eligible costs
• To address these recommendations, the City will:
• Reimagine Key Performance Indicators (KPIs) and publish successes • Develop Expenditure Guidelines that will clarify and encourage Measure B eligible expenditures
• Reallocate salary savings to affect more effective retention and recruitment
15 GOING FORWARD
Better Strategies
433
The City is proposing a new plan that represents a historic breakthrough to the City’s Police recruitment and retention problems. • Convert 60 unfilled positions of the 120 authorized to be used toward retention and recruitment
• Existing budgeted funds will be reprogrammed for this purpose • All additional compensation items are subject to the extension of Measure A and will be reviewed annually for economic feasibility Expected to make the City a much more competitive option in the Law Enforcement recruitment marketplace.
16 GOING FORWARD
A New Retention Plan
434
Next Steps
• A second public
hearing will be held
on December 5, 2023
• An ordinance and
the findings will be
presented for
adoption
435
City of Stockton
Legislation Text
File #: 23-0970, Version: 1
MEASURE A FISCAL YEAR 2018-19, FISCAL YEAR 2019-20, AND FISCAL YEAR 2020-21

ANNUAL REPORTS UPDATE

RECOMMENDATION
This is an informational item submitting Annual Reports for Fiscal Year (FY) 2018-19, FY 2019-20, and FY 2020-21 to the City Council as required by the “City of Stockton Transaction and Use Tax Ordinance Citizens’ Oversight Committee Charter.”
Summary
Measures A was approved by Stockton voters in November 2013, authorizing a ¾-cent Transaction and Use tax effective April 1, 2014, and is a general tax. Measure B, an advisory measure, was concurrently approved and recommended that Measure A funds be used by the City to support law enforcement and crime prevention services through the implementation of the Marshall Plan and to be used to exit bankruptcy and provide other City services.

The Measure A Citizens’ Advisory Committee (Committee) is responsible for reviewing expenditures for Measure A proceeds and adopting and presenting an Annual Report to the City Council regarding whether the additional General Fund money generated by Measure A tax proceeds were expended in compliance with the purposes outlined in the Measures. As part of its Annual Report, the Committee is also responsible for reporting on the City’s progress in implementing the recommendations of the Marshall Plan and providing a summary of the Committee’s proceedings for the preceding year.

The Committee is four years behind on preparing annual reports. Initially, the reports were delayed due to the COVID-19 pandemic, and since then, the appointed subcommittee has shown no progress in producing these reports. To assist the Committee members to bring the annual reports up to date, Staff prepared the attached FY 2018-19, FY 2019-20, and FY 2020-21 Annual Reports (Attachments A, B, and C) for the Committee’s review, input, and approval. A meeting was scheduled for the Committee to review these reports on September 27, 2023, but had to be canceled due to a lack of quorum. The next available date for the Committee to convene was November 13, 2023. Since the communication of the results of Measure A funds to the Council and the public is so important, the draft annual reports prepared by Staff are being transmitted without the Committee’s approval for informational purposes.

Background
Measure A was approved by Stockton voters on November 5, 2013, and enacted a ¾-cent general transaction and use sales tax measure, effective April 1, 2014. The residents of Stockton approved Measure B, an advisory measure which recommended to the Council that 65% of the total sales tax revenue generated by Measure A be used for law enforcement and crime prevention services for City of Stockton Printed on 11/9/2023Page 1 of 3
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File #: 23-0970, Version: 1
implementation of the Marshall Plan and 35% be used for the City’s costs to exit bankruptcy and other City Services. Ordinance 2013-07-09-1601 established a seven-member Citizens’ Advisory Committee (Committee) appointed by City Council. The Committee is responsible for reviewing the expenditures of the additional General Fund revenues generated by Measure A. The specific requirements for this Annual Report are outlined in detail below.

As part of its commitment to the public to ensure accountability and transparency in the oversight of the expenditures of the Measure A tax proceeds, the Council adopted Resolution No. 2014-10-08- 1505, establishing a Charter governing the Committee’s responsibilities. Once formed, the Committee adopted By-Laws establishing its objectives and duties. A principal part of those duties, as outlined in both section 2.2.3 of their Charter and Section 9 of the By-Laws, is preparation and adoption of a public Annual Report to be presented to the City Council reporting on the City’s compliance with the purposes set forth in Measures A and B. Charter section 2.2.3 reads as follows:
“The Committee shall present to the City Council, in public session, an annual written report, which shall include the following:
a) A statement indicating whether the City is in compliance with the purposes set forth in the applicable ballot measures with respect to the tax proceeds; b) A review of tax revenues and expenditures to verify that amounts collected were expended for the purposes set forth in the applicable ballot measure with respect to the tax proceeds; c) A review of the City’s progress in implementing the recommendation of the Marshall Plan on Crime, including the hiring of 120 additional police officers and other investments; and d) A summary of the Committee’s Proceedings and activities for the Preceding Year.” The Committee approved the FY 2017-18 Annual Report on October 16, 2019, and it was presented to the City Council on November 5, 2019.

The Committee opted to form a subcommittee to draft their annual reports from the informational materials provided by the City and auditors. At the March 20, 2019, and June 11, 2021 Committee meetings, members were appointed to a subcommittee tasked with preparing annual reports for FY 2018-19 and FY 2019-20. No draft reports have been provided by the subcommittee since that time, and two additional fiscal year reports are now needed.

Present Situation
In compliance with the Ordinance, Charter, and By-Laws, the Committee has continued to meet to review and discuss the Measure A revenues and expenditures and has received programmatic updates from the Police Department, Office of Violence Prevention, and Administrative Services Department.

The Committee met in four public meetings during FY 2018-19, four during FY 2019-20, three during FY 2020-21, three during FY 2021-22, and twice during FY 2022-23. The Measure, A Citizens’ City of Stockton Printed on 11/9/2023Page 2 of 3
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File #: 23-0970, Version: 1
Advisory Committee, received the audited Annual Comprehensive Financial Reports (ACFR) and independent accountants report on applying agreed-upon procedures for each of the fiscal years on the following meeting dates:

FY 2018-19 January 23, 2020
FY 2019-20 January 28, 2021
FY 2020-21 April 25, 2022
To assist the Committee members with the annual reports, Staff prepared the attached FY 2018-19, FY 2019-20, and FY 2020-21 Annual Reports for the Committee’s review and approval. It is common practice with the City’s transaction tax oversight committees for Staff to prepare a draft annual report for the committee’s review, input, and approval. A meeting was scheduled for September 27, 2023, but had to be canceled due to a lack of quorum. Multiple attempts to schedule meetings in October and early November were unsuccessful. The next available date for the Committee to convene was November 13, 2023. A committee meeting will be held to review the findings for extending the sunset of the tax.

Since the communication of the results of Measure A funds to the Council and the public is so important, and it is unknown at the time this report was published if the Committee will be able to meet to review these reports, the Staff-prepared draft annual reports are being transmitted without the Committee’s approval for informational purposes. The FY 2021-22 Annual Report was not prepared because the Committee still needs to review the audited financial statements for that year.

The audit reports were included in the March 6, 2023, May 15, 2023, and September 27, 2023 meeting agendas. Both the March and September meetings were canceled due to a lack of quorum, and the Committee ran out of time to review the audits at the May meeting.

Financial Summary
This item is informational only and has no fiscal impact(s).

Attachment A - Annual Report for Fiscal Year 2018-19
Attachment B - Annual Report for Fiscal Year 2019-20
Attachment C - Annual Report for Fiscal Year 2020-21
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ATTACHMENT A
DRAFT

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