Agenda packet — City Council and Concurrent Authorities, January 23, 2024 (part 3 of 3)

Will adviseEstimated Delivery:

Valid
Through: 2/10/2024
FOB Origin
Net 30
CD207268
12/12/2023
Shipping Terms:

Payment Terms:

Quotation Number:

Date:

City of Stockton
425 N. El Dorado St.

Stockton, CA 95202
Alanna BindiTO:

Quotation
CD201826Reference:

E.H. Wachs is pleased to offer the following quotation.

U/MQtyDescriptionItem Number
Unit Price
(USD)
Line Total
(USD)
89,745.00 89,745.00EA 177-000-58 1
Standard SB (Diesel) – VMS (RH): Single turner valve maintenance skid to be used in conjunction with Wachs proprietary Valve Service Body manufactured by Knapheide; includes Wachs 750 Ft/lb (1020 Nm) Extended Reach Valve operator for those preventive maintenance activities, telescoping valve key and Wachs ruggedized TC-100 with GPS controller/datalogger. A Tier 4F compliant, Kubota 1.1L, I-3 4-stroke, liquid cooled, IDI diesel engine provides ample power for all contained functions, including an auxiliary HTMA Class II circuit; 10 gallon (38 L) reservoir, fan cooled heat exchanger, continuous duty rated for 8 GPM (30.3 LPM) @ 2,000 PSI (140 bar). A positive displacement blower provides 500 CFM (14.2 cmm)-11" (280mm) Hg vacuum, with spoils containment provided by a 250 (950 L) gallon tank with power hydraulic dump (rear discharge) and latching rear door. Also driven from the common power train is a 2.5 gpm (9.5 LPM) @ 3000 PSI (210 bar) pressure washer system with 3 gallon (11.4 L) anti-freeze tank and 95 gallon (360 L) water tank. Includes 2-1/2" (63.5mm), 1-1/4" (31.75mm) & 7/8” (22mm) suction wands and one each short and long wash-down guns. The SB adds all the LX features: the service light bar with arrow board, 45' (14 M) auxiliary hydraulic hose reel for operation of hydraulic power tools & Bluetooth tethering module (installed in ERV-750) for wireless communication between the exerciser and Controller/Data Logger; plus a 50’ electric hose reel and fuel lift pump (the skid’s engine draws fuel directly from the Chassis Cab tank).

Available Options: TM-7 HD Plus (up to 2,500 Ft/lb [3,390 Nm] of torque) with both automated and manual control valve operator (17-405-01) for those stubborn valves, Hot Water Heater (77-414-02) or already GPS enabled, however adding Trimble R2 GNSS receiver (79-412-02) provides capability of submeter to centimeter level positioning accuracy (highest accuracy in real-time with the use of correction sources). A unique feature of the Custom Service body is the dedicated storage tray located under the bed, between the frame rails for a Wachs 45lb hydraulic breaker (08-000-10), a variety of breaker bits are available separately. 55,832.00 55,832.00EA 177-811-01 2
Valve Truck Service Body and Upfit - Ford, Diesel. Custom W achs Valve Service Body painted Oxford White (custom paint color available for extra charge) and Upfitting for Ford Chassis Cabs. Chassis Cab must be 84” Cab to Axle with a GVRW Rating of 19,500 lbs, included with Upfitter Switches, Reverse Camera with Prep Kit, minimum 220 amp alternator (300+ amp recommended) and drop shipped to Knapheide in Quincy, IL (drop ship code 88QNR4).

Features include:

Underbody Storage for TM-7 (integrated into service body deck maximizing free deck space) with Rollup Service Door (TM-7 #17-405-01 & upfitting #77-813-01 sold separately). Underbody Storage at rear for 45 lb Breaker (#08-000-10 and tools sold separately), located between frame rails. 110v Electric, 20 Amp Continuous (90 Amp Peak) Low Frequency Inverter with (2) Auxiliary Batteries & Electric Cord Reel - 50ft (cord reel included with VMS). Two Drawer Tool Box. Grip Strut Rear Bumper with Pintle Hook Recess, Class V Receiver (Rated @ 12,000 lb trailer weight & 2,400 lb tongue) and Cable Step. LED Warning Strobe Lights (front/rear), LED lighting in all cabinets and full width Cab Guard with 2 rear facing LED Work Lights & Grab Handle. Key/Shovel Storage Box (132in L x 10in H x 20in D) above full height cabinets with Reinforced and Covered front (32"). Retractable Steps (2x 24in & 2x 12in) with Stainless Steel Kick Plates to protect the painted cabinets. Extended Cargo Floor to Edge of Body Curb Side (vertical compartments deleted above floor level), all Spray Lined. 30” walk up between skid and cab guard with 6” removable side board for storage and service. Rear Spray Booth with storage for Paint Cans & Wire Brush. Installation includes Wachs Valve Maintenance Skid (including fuel and power taps) & OEM Backup Camera installed behind bumper for protection (camera kit must be ordered with the chassis cab).
6,204.25 3.25MILE 1909.00DELIVERY 3
Pool Delivery Rate (Per Mile) with a minimum of 300 miles. Rate calculated is from Taylor, MO to final destination.
11,951.58 11,951.58EA 1SALES TAX 4
Sales Tax
**Price does not include the Cheverolet or Ford T ruck. Quote is for 2.1 Scope of Services (J).**
**Price does not include the Cheverolet or Ford Truck. Quote is for 2.1 Scope of Services (J).** Subtotal 163,732.83
850.00Shipping & Handling
$164,582.83Total (USD)

ATTACHMENT G
430

Page 2 of 2 ends

CD207268
12/12/2023
Quotation Number:

Date:Alanna BindiTO
:

Quotation
We will prepay and add shipping charges to your order, or we can ship collect via your choice of carrier service. If you have any questions please feel free to call Chris Damkoehler at 424-304-4937 or call me at 847-484-2773. (SALES
TAX!!!!) We collect sales tax in all but the following states: AK, DE, MT, OR and NH. If you are tax exempt please supply your identification number and certificate with your order. If your exempt number is not on file, tax will be added to your invoice.

Please reference this quote number when placing your order. Thank You.

Ken Redding
Utility Technical Sales Rep
847-484-2773
[email protected]
Sales of E.H. Wachs products and services are expressly limited to and made conditional on acceptance of its current Terms and Conditions of Sale, found at www.ehwachs.com (“Terms”). Any additional or different terms are hereby rejected. Commencement of work by E.H. Wachs or acceptance of delivery of products by you constitutes your acceptance of the Terms.

ATTACHMENT G
431
City of Stockton
Legislation Text
File #: 23-1165, Version: 1

ADOPT A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE AND SUBMIT THE TRANSPORTATION DEVELOPMENT ACT CLAIM FOR FISCAL YEAR 2023-24

RECOMMENDATION
It is recommended that the City Council adopt a resolution to authorize the City Manager or his designee to:

1. Execute and submit a claim to the San Joaquin Council of Governments for the Transportation Development Act tax revenue for the 2023-24 fiscal year.

2. Receive and deposit the proceeds in Transportation Development Act Fund 245 pursuant to State of California requirements.

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

Summary
The City is entitled to a formula-based apportionment of the statewide Transportation Development Act (TDA) tax revenue to offset costs related to transportation projects. The San Joaquin Council of Governments (SJCOG) administers the State apportionment on an annual basis to agencies within the county. No matching funds are required as a condition to receipt, but SJCOG requires that the claim documents include a resolution by the governing body authorizing an annual claim. The recommended action would authorize the City Manager or his Designee to submit a claim to SJCOG for the TDA funds.

DISCUSSION
Background
SJCOG is responsible for the ongoing administration of TDA funds provided from a State Tax allocation to its Local Transportation Fund (LTF) established in 1972. The funding is for local public transit as well as bicycle and pedestrian projects. The LTF receives revenue from a 1/4 percent retail sales tax collected by the State of California in accordance with the TDA legislation.

Pursuant to the TDA regulations, 98 percent of the LTF funding is allocated to the San Joaquin Regional Transit District (SJRTD) to fund public transit services, and two percent of the apportionment can be allocated for bicycle and pedestrian purposes. This “non-motorized” apportionment is distributed within San Joaquin County by SJCOG to cities and unincorporated areas based on population. The City uses these funds for bicycle paths, sidewalk repairs, and wheelchair City of Stockton Printed on 1/19/2024Page 1 of 2
powered by Legistar™
432
File #: 23-1165, Version: 1
ramps. Public Works maintains a database of wheelchair ramps and sidewalks in need of repair, and the non-motorized LTF-TDA funding is allocated entirely to these projects and includes the TDA resources when compiling its annual Capital Improvement Plan (CIP).

SJCOG calculates the apportionments, allocates the resources, and notifies the agencies of the value of available funding. To receive TDA funds, the City is required to submit a claim to SJCOG, along with a Council resolution.

Present Situation
The total amount to be claimed by the City for the 2023-24 fiscal year is $1,835,250. This includes $1,341,774 previously claimed and received by the City that must be reclaimed as part of the annual process.

The current TDA available balance for the City held by SJCOG is $493,476.

FINANCIAL SUMMARY
The TDA revenues and expenditures are allocated to a special revenue fund (Fund 245). Projects are allocated funding through the annual CIP budget or other Council action. The recommended action authorizes a 2023-24 TDA claim, upon receipt of which, the funds will be deposited into TDA Fund 245 for the Sidewalk, Curb, and Gutter Repair Program. No General Fund or matching resources are required to receive TDA funds as a result of this action.

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

City of Stockton Printed on 1/19/2024Page 2 of 2
powered by Legistar™
433
Resolution No.

STOCKTON CITY COUNCIL

RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE AND SUBMIT THE TRANSPORTATION DEVELOPMENT ACT CLAIM FOR FISCAL YEAR 2023-24 AND

AUTHORIZING THE DEPOSIT OF FUNDS FOR THE SIDEWALK, CURB, AND

GUTTER REPAIR PROGRAM PURSUANT TO STATE OF CALIFORNIA

REQUIREMENTS

The San Joaquin Council of Governments (SJCOG) is responsible for the ongoing administration of Transportation Development Act (TDA) funds provided from a State Tax allocation to its Local Transportation Fund (LTF) established in 1972. The funding is for local public transit and bicycle/pedestrian projects; and

The LTF receives revenue from a 1/4 percent retail sales tax collected by the State of California in accordance with the TDA legislation; and

The City is entitled to a formula -based apportionment of the statewide TDA tax revenue to offset costs related to transportation projects; and

To receive TDA funds, the City is required to submit a claim to SJCOG, along with a Council resolution; now, therefore,

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

1. The City Manager or his Designee is hereby authorized and directed to execute and submit a claim to SJCOG for the TDA tax revenue for Fiscal Year 2023-24.

2. The City Manager or his Designee is hereby authorized to receive and deposit the proceeds in TDA Fund 245 pursuant to State of California requirements for the Sidewalk, Curb, and Gutter Repair Program.

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

PASSED, APPROVED, and ADOPTED January 23, 2024 .

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

ELIZA R. GARZA, CMC
City Clerk of the City of Stockton
434
City of Stockton
Legislation Text
File #: 23-1173, Version: 1
ADOPT RESOLUTION TO AUTHORIZE THE STREETLIGHT KNOCKDOWN REPAIRS PHASE 7

PROJECT

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

1. Approve Notice of Exemption No. NOE58-23 under the California Environmental Quality Act for the Streetlight Knockdown Repairs Phase 7, Project No. OM-23-016.

2. Approve the plans and specifications for the Streetlight Knockdown Repairs Phase 7, Project No. OM-23-016.

3. Award a Construction Contract in the amount of $122,723 to Ray’s Electric of Oakland, CA, for the Streetlight Knockdown Repairs Phase 7, Project No. OM-23-016.

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

Summary
Streetlight poles are installed close to the roadway and are occasionally struck by motor vehicles, resulting in toppled poles or “knockdowns.” The Streetlight Knockdown Repairs project will remove and replace five streetlight poles and four traffic signal poles that were damaged by automobile accidents at various locations citywide (Attachment A).

On November 9, 2023, the City received four bids for this project. Staff recommends award of the Construction Contract to the lowest responsive bidder, Ray’s Electric, in the amount of $122,723.

Staff also recommends that Council adopt a resolution approving Notice of Exemption No. NOE58-23 under the California Environmental Quality Act (CEQA) and approving the plans and specifications for the project. Construction is anticipated to begin and be completed by spring 2024, weather permitting.

DISCUSSION
Background
The City is responsible for the operation and maintenance of approximately 19,000 streetlights. The majority of these streetlights are mounted on galvanized poles. Streetlight poles are installed close to the roadway and are occasionally struck by motor vehicles, resulting in toppled poles or “knockdowns.” The cost to replace a foundation, pole, and fixture has increased significantly in the City of Stockton Printed on 1/19/2024Page 1 of 3
powered by Legistar™
435
File #: 23-1173, Version: 1
last five years. Depending on the severity of the damage to the foundation base and wiring, repair costs range between $5,000 and $20,000 per knockdown. The City has an average of 75 such incidents annually. The City attempts to recover damage expenses when there is a police report identifying the responsible party.

The Streetlight Knockdown Repairs project will remove and replace five streetlight poles and four traffic signal poles that were damaged by automobile accidents at various locations citywide (Attachment A).

On July 26, 2016, Council adopted a Community Workforce and Training Agreement (CWTA). The CWTA became effective August 25, 2016, and applies to all Public Works projects over $1 million that are bid after that date. On July 16, 2019, by Motion No. 2019-07-16-1403, Council extended the CWTA term to August 25, 2024. The CWTA was not applied to this project as the estimated construction cost is less than $1 million
Present Situation
On October 19, 2023, the Streetlight Knockdown Repairs Phase 7, Project No. OM-23-016, was advertised for bids. On November 9, 2023, four bids were received with the following results:

COMPANY NAME BID AMOUNT
Ray’s Electric $122,723
(Oakland, CA)
Tennyson Electric, LLC $138,075
(Livermore, CA)
St. Francis Electric, LLC $159,300
(San Leandro, CA)
Bear Electrical Solutions, Inc. $353,500
(Alviso, CA)
Engineer’s Estimate $119,000
The requirements of Stockton Municipal Code (SMC) section 3.68.090, Local Business Preference, apply to this project. Application of the Local Business Preference has no effect on the bid order, as no local firms bid on the project. The Local Employment Ordinance, SMC section 3.68.095, also applies to this contract.

The bid from Ray’s Electric, the lowest responsive bidder, is regular in all respects and has the proper license to perform the work. Staff recommends Council approve the plans and specifications for the project and award a Construction Contract to Ray’s Electric of Oakland, CA, in the amount of $122,723.

City of Stockton Printed on 1/19/2024Page 2 of 3
powered by Legistar™
436
File #: 23-1173, Version: 1
The project is in conformance with the City’s General Plan, pursuant to California Government Code, section 65402, and is categorically exempt from the requirements of CEQA as specified under Section 15301(c) of the CEQA Guidelines. As a result, the project has been granted a Categorical Exemption. The activities related to this project constitute a discretionary project under the City’s jurisdiction and qualifies as a project that does not have a significant effect on the environment. The resolution will approve the filing of Notice of Exemption No. NOE58-23 under CEQA. Construction is anticipated to begin and be completed by spring 2024, weather permitting.

FINANCIAL SUMMARY
There is sufficient funding in the Fiscal Year 2023-24 Electrical and Traffic Signals, Account No. 4570- 717-630013-250-252-30-45-000-000, to award a Construction Contract in the amount of $122,723 to Ray’s Electric of Oakland, CA, for the Streetlight Knockdown Repairs Phase 7, Project No. OM-23- 016.

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

Attachment A - Vicinity Map
City of Stockton Printed on 1/19/2024Page 3 of 3
powered by Legistar™
437
Ã4
Ã4
Ã4
Ã4
Ã4
§¨5
§¨
5 §¨
5 Ã26
Ã26
Ã88
Ã99
Ã99
Ã99
Ã99

STOCKTON CHANNEL

TURNING

BASINSTOCKTON DEEP WA TER CHANNEL

FREN CHCAMP SLOUGH

F RENCH CAM P SLOUGH

FRENCHCAM
P
SLOUGH

NORTH LITTLEJOHNS CREEK

CALAVERA S RIVER

CALAVERAS RIVER

WEBERSLOUGH

NORTH LITTLEJOHNS CREEK

MOSHER SLOUGH
SO. BEAR CR EEK

MEADOW LAKE

VENEZIA
LAKE

FIVE MILE SLOUGH

SOUTH BEAR CREEK

MOSHER SLOUGH

FIVE MILE SLOUGH

DUCK CREEK

STOCKTON DIVERTING CANAL

SAN JOAQUIN RIVER

CALAVERAS RIVER

QUAIL LAKE
OXIDATION POND #3
OXIDATION POND #2
OXIDATION POND #1

CONSTRUCTED WETLANDS
GRUPE
LAKE

MOSHER SLOUGH

LINCOLN FOURTEEN MILE SLOUGH

HERONLAKE

SMITHS CANAL

YOSEMITELAKE

MORMON SL

MORMON SLOUGH

SANJOAQUIN
RIVE
R
SAN

JOAQUIN
RIVER
MOSHER

MOSHER SLOUGH

MOSHER SLOUGH
5 MILE
SL

FOURTEEN MILE SLOUGH

STOCKTON DIVERTING CANAL

MORMON SL

MORMON SLOUGH

MORMON SL OUGH

MCLEODLK

FREMONT CH

SAN JOAQUIN
RIVER

SAN JOAQUIN RIVER
SAN
JO
AQUIN
RIVER

WALKER SLOUGH

SOUTH DUCK CREEK

HAMMER LNHAMMER LN

BEN HOLT DR

ELDORAD
O
ST
W
ILSON
WY

MARCH LN

WATERLOO RD

FREMONT ST

MARIPOSA
RD

AIRPORT WY

DR MLK JR BL

MAIN ST

THORNTON
RD

PARK ST

PACIFIC AV

CHEROKEE RD

ROBERTS RD

EIGHTH ST

MORADA LN

PACIFIC AV

PERSHING AV

ALPINE AV

WEST LN

HARDING WY

EL DORADO ST
CALIF
ST

CENTER ST

CHARTER WY
µ
0 0.65 1.3 1.95 2.60.325
Miles
LEGEND
Streetlight Knockdown Locations
STREETLIGHT KNOCKDOWN REPAIRS PHASE 7
PROJECT NO. OM-23-016

CITY OF STOCKTON

DEPARTMENT OF PUBLIC WORKS
9 7
6 5
4 3
1 2
8 ATTACHMENT A
438
Resolution No.

STOCKTON CITY COUNCIL

RESOLUTION AP PROVING THE NOTICE OF EXEMPTION NO. NOE58-23,

APPROVING THE PLANS AND SPECIFICATION S, AND AWARDING A

CONSTRUCTION CONTRACT FOR THE STREET LIGHT KNOCKDOWN REPAIRS PHASE 7, PROJECT NO. OM-23-016

On November 9, 2023, the City Clerk of the City of Stockton opened, examined, and publicly declared the sealed proposals or bids offered for the Streetlight Knockdown Repairs Phase 7, Project No. OM-23-016; and

The project will remove and replace five streetlight poles and four traffic signal poles that were damaged and knocked down by automobile accidents at various locations citywide; and

Ray’s Electric is the lowest responsive bidder in the amount of $122,723; and

The project is categorically exempt from the requirements of the California Environmental Quality Act (CEQA) as specified under section 15301 (c) of the CEQA Guidelines, because this is a discretionary project under the City’s jurisdiction and qualifies as a project which has been determined to not have a significant effect on the environment; now, therefore,

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

1. The City Council approves the filing of Notice of Exemption No. NOE58-23 under CEQA for the Streetlight Knockdown Repairs Phase 7, Project No. OM-23-016, a copy of which is attached as Exhibit 1 and incorporated by this reference.

2. The City Council a pproves the plans and specifications for the Streetlight Knockdown Repairs Phase 7, Project No. OM-23-016.

3. The City Council a wards a Construction Contract between the City of Stockton and Ray’s Electric in the amount of $122,723, and the City Manager is authorized and directed to execute same, a copy of which is attached as Exhibit 2 and incorporated by this reference.

//
//
//
//
//
//
//
439

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

PASSED, APPROVED, and ADOPTED January 23, 2024 .

____________________________
KEVIN J. LINCOLN II
Mayor of the City of Stockton

ATTEST:

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

440

CITY OF STOCKTON

NOTICE OF EXEMPTION
TO: COUNTY CLERK

COUNTY OF SAN JOAQUIN
44 N. San Joaquin St., Ste. 260
Stockton, CA 95202
FROM: Lead Agency
City of Stockton
c/o Public Works Department
22 East Weber Avenue, Suite 301
Stockton, CA 95202
NOTICE OF EXEMPTION PURSUANT TO PUBLIC RESOURCES CODE SECTION 21152(8) AND CALIFORNIA CODE OF REGULATIONS TITLE 14 SECTION 15062

PROJECT DATA
Project Tille: Streetlight Knockdown Repairs Phase 7, Project No. OM-23-016 CEQA Exemption File No.: NOE 58-23
Applicant: City of Stockton Public Works Department
Project Description/Location: The City of Stockton's Public Works Department will be repairing damaged streetlights and traffic signal poles at various locations throughout the City. See attachment A for more information.

DETERMINATION/FINDING OF EXEMPTION
The above-described activity/project is exempt from the environmental assessment requirements of the California Environmental Quality Act (CEQA) pursuant to the following section(s) of the State CEQA Guidelines (California Code of Regulations, Title 14):

The activity is not a "project" as defined in CEQA Guidelines Section 15378.

The activity is exempt under the "general rule" at CEQA Guidelines Section15061(B)(3). _X_ The project is "Statutorily Exempt" per CEQA Guidelines Section: 15301(c).

The project is "Categorically Exempt" per CEQA Guidelines Section 15332.

BASIS FOR FINDING OF EXEMPTION
The activity does not qualify as a project and/or clearly could not have a significant effect on the environment and, therefore, CEQA does not apply.
-1L The activity constitutes a discretionary project under the City's jurisdiction and qualifies as a project which has been determined not to have a significant effect on the environment and, therefore, is exempt from the provisions of CEQA under the above-noted statutory or categorical exemption(s).

JODI ALMASSY, DIRECTOR

PUBLIC WORKS DEPARTMENT
By�
Adriana Garibay, Project Manager
October 30 2023
(DATE OF PREPARATION)
(DATE OF FINAL APPROVAL)

AFFIDAVIT OF FILING AND POSTING
I declare that on the date stamped above, I received and posted this notice or included ii on a list of such notices which was posted as required by California Public Resources Code Section 21152(6). Said notice or list of notices will remain posted for 35 days from the filing date.

Signature Title
Posting Period Ending Date
EXHIBIT 1
441

CONSTRUCTION CONTRACT

This c ontract is made and entered into on _____________, by and between RAY’S ELECT RIC, a STATE OF CALIFORNIA CORPORATION, with a business address at 411 PENDLETON WAY, STE. B, OAKLAND, CA 94621 , hereinafter called "CONTRACTOR," and CITY OF STOCKTON, a municipal corporation, hereinafter called "CITY."

W I T N E S S E T H:

WHEREAS, plans and specifications for the construction of STREETLIGHT KNOCKDOWN REPAIRS PHASE 7 (PROJECT NO. OM -23-016), hereinafter called “PROJECT,” were regularly adopted by Council Resolution No. __________________, on _________________; and
WHEREAS, the contract for said work was regularly awarded to CONTRACTOR, by Council Resolution No. __________________, on ________________.

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

CONTRACTOR agrees:

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

2. COMPENSATION. To do an d perform the work contemplated hereby in a good and workmanlike manner and to furnish all labor, materials, tools , and equipment necessary therefore at the prices specified in Exhibit A, attached hereto and by reference made a part hereof, under the direction of and to the complete satisfaction of the Director of Public Works of the City of Stockton. Total compensation for services and reimbursement for costs shall not exceed $122,723.00, or as otherwise mutually agreed to in a Contract Change Order.

3. INSURANCE. C
ONTRACTOR shall not commence any work before
obtaining, and shall maintain in force at all times during the duration and performance of this contract, the policies of insurance specified in Exhibit B, which is attached to this contract and incorporated by this reference, and as provided in the “contract documents” including Section 7- 1.06 of the City of Stockton Standard Specifications and Plans as adopted on September 27, 2016, by Council Resolution No. 2016-09-27-1213, effective September 27, 2016.

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

EXHIBIT 2

Page 1 of 41 ends

442
Furthermore, the requirements for coverage and limits shall be (1) the minimum coverage and limits specified in this Agreement; or (2) the broader coverage and maximum limits of coverage of any i nsurance policy or proceeds available to the named Insured; whichever is greater.

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

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

Pol
icies 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 CI
TY reserves the right to obtain a full certified copy of any i nsurance policy and endorsements.

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

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

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

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

4. I
NDEMNITY AND HOLD HARMLESS. To the f ullest extent permitted by law, Contractor shall hold harmless, defend, and indemnify City of Stockton and its officers, officials, employees, and volunteers from and against all claims, damages, losses, and EXHIBIT 2

Page 2 of 41 ends

443
expenses including attorney fees arising out of the performance of the work described herein, caused in whole or in part by any negligent act or omission of the Contractor, any subcontractor, anyone directly or indirectly employed by any of them, or anyone for whose acts any of them may be liable, except where caused by the active negligence, sole negligence, or willful misconduct of the City of Stockton. This obligation is independent of, and shall not in any way be limited by, the minimum Insurance obligations contained in this agreement. These obligations shall survive the completion or termination of this agreement.

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

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

6. W
ORKING DAYS. T his work shall be diligently prosecuted to completion before the expiration of 40 WORKING DAYS beginning on the tenth calendar day after the date shown on the Notice to Proceed. It is agreed by the parties to the contract that in case all the work called for under the contract in all parts and requirements, is not finished or completed within the number of days as set forth, damage will be sustained by the CITY, and that it is and will be impracticable and extremely difficult to ascertain the actual damage which CITY will sustain in the event of and by reason of such delay; and it is the refore agreed that CONTRACTOR will pay to CITY the sum of TH REE THOUSAND ONE HUNDRED AND NO/100 DOLLARS ($3,100.00) per day for each and every calendar day's delay in finishing the work in excess of the number of days prescribed; and CONTRACTOR agrees to pay said liquidated damages as herein provided, and in case the same are not paid, agrees that CITY, may deduct the am ount thereof from any monies due or that may become due CONTRACTOR under the contract.

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

EXHIBIT 2

Page 3 of 41 ends

444
A working day shall not include, nor shall CONTRACTOR be assessed with liquidated damages nor the additional cost of engineering and inspection during any delay beyond the time named for the completion of the work caused by acts of God or of the public enemy, acts of CITY, fire, floods, epidemics, quarantine restrictions, strikes, and freight embargoes and subject to approval by the Director of Public Works , inability to get materials ordered by CONTRACTOR or subcontractor due to such causes provided that CONTRACTOR shall notify the Director of Public Works in writing of the causes of delay within five (5) working days from the beginning of any such delay, and the Director shall ascertain the facts and the extent of the delay, and Director's findings of the facts thereon shall be final and conclusive.

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

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

The C
ity 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 C
ity of Stockton has a Discrimination and Harassment Policy ( Exhibit C). The purpose of this policy is to reaffirm the CITY’s commitment to demonstrating respect for all individuals by strictly prohibiting discrimination and harassment, including sexual harassment in the workplace, to define the types of behavior and conduct prohibited by this policy, and to set forth a procedure for reporting, investigating, and resolving complaints of discrimination and harassment in the workplace.
c. LABOR STANDARDS PROVISIONS/CALIFORNIA LABOR CODE
EXHIBIT 2

Page 4 of 41 ends

445
The bidder shall understand that conditions set forth in Chapter 1, Part 7, Division 2 of the California Labor Code shall be considered part of the contract agreement.
https://leginfo.legislature.ca.gov/faces/codes_displayText.xhtml?lawCode= LAB&division=2.&title=&part=7.&chapter=1.&article=2.
d. PREVAI

LING WAGE
CO
NTRACTOR and any subcontractor shall pay each employee engaged in the trade or occupation not less than the prevailing hourly wage rate. In accordance with the provisions of Section 1770 of the Labor Code, the Director of Department of Industrial Relations of the State of California has determined the general prevailing wage and employer payments for health and welfare, pension, vacation, travel time, and subsistence pay as provided for in Section 1773.1, apprenticeship or other training programs authorized by Section 3093 and similar purposes applicable to the work to be done. CONTRACTOR performing the work under this contract shall obtain a copy of the wage rate determination and shall distribute copies to each subcontractor. As the wage determination for each craft reflects an expiration date, it shall be the prime CONTRACTOR and each subcontractor's responsibility to e nsure that the prevailing wage rates of concern is current and paid to the employee.
i. T
he 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. Shoul
d the CONTRACTOR choose to work on a Saturday, Sunday or on a holiday recognized by the Labor Unions, the CONTRACTOR shall reimburse the CITY the actual cost of engineering, inspection, superintendence, and or other overhead expenses which are directl y chargeable to the contract. Should such work be undertaken at the request of the CITY, reimbursement will not be required. To conform strictly with the provisions of Division 2, Part 7, Chapter 1, Article 2, of the Labor Code of the State of Cali fornia. To forfeit as a penalty to CITY the sum of TWENTY -FIVE AND NO/100 DOLLARS ($25.00) for each laborer, worker, or mechanic employed by CONTRACTOR, or by any subcontractor under CONTRACTOR, in the execution of this contract, for each calendar day during which any laborer, worker, or mechanic is required or permitted to work more than eight (8) hours and who is not paid the general prevailing rate of per diem wages for holiday and overtime work in violation of the provisions of Sections 1770 to 1781 of the Labor Code of the State of California. That all sums forfeited under the provisions of the foregoing sections shall be EXHIBIT 2

Page 5 of 41 ends

446
deducted from the payments to be made under the terms of this contract.

iii. The CONTRACTOR to whom the contract 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 Complianc e Officer. It shall be the CONTRACTOR’S responsibility to obtain copies of the current prevailing wage rate determination for all subcontractors. Additionally, certified payroll records must be uploaded to the DIR website as required by labor code.

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

e. LOCAL EMPLOYMENT ORDINANCE

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

3.68.095.

f. SANCTIONS

Deliverables must conform with all applicable federal, state, and local laws. Such conformity includes compliance with federal sanctions, and Contractor certifies that it has not and will not engage in prohibited transactions with sanctioned persons or entities.

CITY agrees:

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

EXHIBIT 2

Page 6 of 41 ends

447

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 depos it.

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

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

Any
suc
h 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 wi ll not become effective until approved by the City Manager and/or the City Council.

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

11. AUDI
TS. CI TY reserves the right to periodically audit all charges made by CONTRACTOR to CITY for services under the contract. Upon request, CONTRACTOR agrees to furnish CITY, or a designated representative, with necessary information and assistance.

CO
NT
RACTOR agrees that CITY or its delegate will have the right to review, obtain and copy all records pertaining to performance of the contract. CONTRACTOR agrees to provide CITY or its delegate with any relevant information requested and shall permit CITY or its delegate access to its premises, upon reasonable notice, during normal business hours for the purpose of interviewing employees and inspecting and copying such books, records, accounts, and other material that may be relevant to a matter under investigation for the purpose of determining compliance with this requirement.

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

12. W
AIVER. It i s 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.

EXHIBIT 2

Page 7 of 41 ends

448
EXHIBIT 2
37XXX41
449

BIDD IN G SCHE DUL E
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 · Description Unit Quantity Unifprice Total Price .· 1 8th St I Scribner St (NE Corner -
Type 15 foundation) LS 1 $11,350.00 $11,350.00
2 3220 Be llview Ave (Type 15 LS 1 $12,558.00 $12,558.00 foundation) 3 1445 Temple St (Type 15 LS 1 $10,550.00 $10,550.00 foundation) S Wilson Wy I E Anderson St (NW
4 Corner - Type 15 LS
foundation}
1 $14,650.00 $14,650.00
E Main St I E Market St (Located
5 in media island - Type 15 LS 1 $12,585.00 $12,585.00
Foundation}
6 1844 Allston Wy (Type 15 LS 1 $14,280.00 $14,280.00 foundation) 7 Center St I Park St (SE Corner - 2 LS 1 $19,600.00 $19,600.00 Type 1 B foundations) N El Dorado St/ W March Ln (SE
Corner - Type 1 B LS 1 $13,100.00 $13,100.00
foundation}
9 N Airport Wy I E Park St (NW LS 1 $14,050.00 $14,050.00 Corner - Type 1 B foundation) TOTAL BID $122,723.00
BIDDER'S NAME____._R .... a,1-y'..._s _EJ..,.e ..... ct .... ri..._c ______ _ Bid Forms Last Revised 12/31/20
EXHIBIT 2

Page 9 of 41 ends

450
-Ria.i i., �.ul:...v .rRIC
411 PENDLETON WAY
SUITE BOAKLAND, CA 94621 BIDDER CERTIFICATION
The undersigned agrees that if this bid is accepted, he/she will contract with the City of Stockton in the form of contract attached hereto to perform all of the work in accordance with the contract and the drawings, specifications, and other documents incorporated therein; that he/she will take in full payment therefor, and for all other obligations assumed under the contract, the prices set forth in the following bid schedule except as otherwise provided in the specifications; and that he/she will execute such contract and furnish the required contract bonds in the manner and within the time provided in the bidding requirements and conditions. The undersigned further agrees that he/she has carefully examined the site of the work and the bid documents and any addenda thereto, and is fully informed of the nature and location of the work, the quantities of the work, and the conditions to be encountered in performing the work; that the only parties interested in this bid as principals are those named herein and that this bid is made without collusion with any other party; and that this bid is submitted in all respects in accordance with the bidding requirements and conditions and all other requirements of the bid documents.

A BID GUARANTY ACCOMPANIES THIS BID IN THE FORM OF: (Check one of the following) Cash, or
Cashier's check, or
□ □ □
K]
Certified check payable to City of Stockton, or
Bidder's bond in favor of the City.

For any amount not less than ten percent (10%) of the aggregate of the bid.

ALSO ACCOMPANYING THIS BID ARE THE FOLLOWING ATTACHMENTS, PROPERLY EXECUTED AND SIGNED:

1. 2.

3. List of Subcontractors
Non-Collusion Declaration
DIR Self-Certification

4. Title VI Self-Certification

5. Local Employment Ordinance Acknowledgement

6. Local Business Preference Acknowledgement

THE CITY RESERVES THE RIGHT TO REJECT ANY AND ALL BIDS
Ray's Electric
Name of Firm
411 Pendleton Way Suite B
Address
#682725 A & Cl0
Contractor Lie. No. & Classification
510-577-7700
Phone
Oakland
City
CA
State
94-3106593
Tax I.D. No.
94621
Zip
12/31/2023
Expiration Date
NOTE - State law requires bidders on public agency contracts to include on their bid: (1) their State contractors license number, (2) the license expiration date, and (3) a statement that the representations made therein are made under penalty of perjury. The law further states that "Any bid not containing this information, or bid containing information which is substantially proven false shall be considered non-responsive and shall be rejected by the public agency."

THE REPRESENTATIONS MADE HEREIN ARE MADE UNDER PENALTY OF PERJURY Bid Forms

BIDDER SIGN
¢:::: HERE Secretary
----------
Title
Last Revised 12/31 /20
EXHIBIT 2

Page 10 of 41 ends

451

LIST OF SUBCONTRACTORS
GENERAL CONTRACTOR: Ray's Electric
PROJECT: Streetlight Knockdown Repairs Phase 7

PLEASE LIST BELOW ALL SUBCONTRACTORS CONTRIBUTING TO THIS WORK Each bidder shall give the name, business address, license number, description of the work, and the dollar amount to be PAID the subcontractor, for each subcontractor that will be used on the project, if the Bidder is awarded the contract. Only subcontractors with work in excess of one-half of one percent (0.5%) or $10,000 (whichever is greater) of the Bidder's total bid need to be listed. All work in excess of one-half of one percent (0.5%) or $10,000 (whichever is greater) of the Bidder's total bid, for which a subcontractor is not listed on this form, shall be performed by the Bidder's own organization.

Additional numbered pages listing proposed subcontractors may be attached to this page. Each page shall be headed "Proposed Subcontractors" and shall be signed by the Bidder.

PRINT LEGIBLY OR TYPE
BUSINESS LICENSE DEPT. OF TYPE OF WORK AMOUNT

NAME/ADDRESS NUMBER & INDUSTRIAL

LICENSE RELATIONS

CLASSIFICATION REGISTRATION
NUMBER
CMC Traffic Control 792059 Traffic Control Plans $900.00 �450 3rd St Suite 3g San Francisco, CA 941 �4 1000006503 -n..tu � t;LECTRIC 411 J �P.1\TT\T .'C'"11"\'I\.T ,..,.,.� - SUIT] ------· ._.,. '"""· � B .-- ---Vn.�! ,li..l'J.U, . 94621 /1
#�

BIDDER SIGN
¢::: HERE
/(SIGNATURE OF BIDDER)
Bid Forms Last Revised 12/31/20
EXHIBIT 2

Page 11 of 41 ends

452
11/9/23, 9:11 AM
O Plasterer/Tender
0 Plumber
0 Roofing
0 Sheet Metal Worker
0 Stator Rewinder
0 Teamster
O Terrazzo Worker/Finisher
0 Tile Setter/Finisher
0 Water Well Driller
!Apply}
Registrations
Search Results: 1 found
[ Print PDF Q ][ Export .t.}

GRUENDLINC
Detail:

Registration Number: 1000005610
Status: Active
CSLB Number: 682725
1 Legal Entity Type: Corporation
Registrations
4>-t
.£�✓✓ :,..�
o�.��,�c
�,b �� oo"o �
�& �
�<%>✓
Showing Page 1 of 1 [ Previous J [ Next j
[ Add all to my list I[ �y List (0),,]
{view Details) 1+ Add to My List/!
https://cadir.my.salesforce-sites.com/ContractorSearch?inputSearch=1000005610 3/4 EXHIBIT 2

Page 12 of 41 ends

453
11/9/23, 9:11 AM
Mailing Address:

County:

Craft:

Email:

DBA
Name

RAY'S ELECTRIC
https://cadir.my.salesforce-sites.com/ContractorSearch?inputSearch=1 00000561 0 Registrations
411 PENDELTON WAY SUITE B

OAKLAND
CA 94621
Alameda
Cement Mason;Electrical Utility;Electrician;General Building;General Engi [email protected]
4/4
EXHIBIT 2

Page 13 of 41 ends

454
11/9/23, 9:12AM
O Plasterer/Tender
O Plumber
O Roofing
O Sheet Metal Worker
0 Stator Rewinder
0 Teamster
O Terrazzo Worker/ Finisher
0 Tile Setter/Finisher
O Water Well Driller
!Apply}
Registrations
Search Results: 1 found
[ Print PDF Q] [Export.!.]
Registrations
Showing Page 1 of 1 [ Previous 1{ Next J
[ Add all to my list}[ My List (O) .... j
CMC TRAFFIC CONTROL SPECIALISTS, INC. [view Details){+ Add to My List) l Detail: Registration HistorY-
1 Registration 1000006503
Number:

Status: Active
CSLB Number: 792059
Effective Date Expiration Date
7/1/2023 6/30/2024
7/1/2020 6/30/2023
https://cadir.my.salesforce-sites.com/ContractorSearch?inputSearch=1000006503 3/4 EXHIBIT 2

Page 14 of 41 ends

455
11/9/23, 9:12 AM Registrations
Legal Entity Corporation Effective Date Expiration Date Type: 7/1/2019 6/30/2020 Mailing Address: 3450 THIRD STREET, UNIT 3G SAN FRANCISCO 5/31/2018 6/30/2019
CA 94124
County: San Francisco 6/21/2017 6/30/2018
Craft: Laborer 7/14/2016 6/30/2017
Email: [email protected]
i
7/1/2015 6/30/2016
1/22/2015 6/30/2015
OBA
Name
https://cadir.my.salesforce-sites.com/ContractorSearch?inputSearch=1000006503 4/4 EXHIBIT 2

Page 15 of 41 ends

456
REV 2022-05-17
Exhibit B:

Insurance Requirements for Construction Contracts
(Streetlight Knockdown Repairs Phase 7 OM-23-016)
Contractor 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.

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

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

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

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

If 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.

Self-Insured Retentions
Self-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 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 EXHIBIT 2

Page 16 of 41 ends

457
REV 2022-05-17
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.

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

1. The City of Stockton, its officers, officials, employees, and volunteers are to be covered as additional insureds on the CGL policy with respect to liability arising out of work or operations performed by or on behalf of the Contractor including materials, parts, or equipment furnished in connection with such work or operations 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)
If any coverage required is written on a claims-made coverage form:

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

EXHIBIT 2

Page 17 of 41 ends

458
REV 2022-05-17

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.

Umbrella 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 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
EXHIBIT 2

Page 18 of 41 ends

459
REV 2022-05-17
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.

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.

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

City of Stockton
Its Officers, Officials, Employees and Volunteers
400 E Main Street, 3rd Floor – HR
Stockton, CA 95202
EXHIBIT 2

Page 19 of 41 ends

460
Subject:

CITY OF STOCKTON, CALIFORNIA

CITY MANAGER ADMINISTRATIVE DIRECTIVE
Directive No. HR-15 Page No. 1 of 14
DISCRIMINATION AND Effective Date: Revised From:

HARASSMENT POLICY 7/27/09
5/1/2015 4/6/09
3/1/2010
(see below)
PER-015 (Sexual Harassment in the Workplace) revised from 10/21/94, 5/1/95, 1/1/98 PER-037 (Sexual Harassment Investigative Procedures) revised from 2/15/93 I. PURPOSE
The purpose of this policy is to reaffirm the City's commitment to demonstrating respect for all individuals by strictly prohibiting discrimination and harassment, including sexual harassment in the workplace. This policy defines prohibited behavior and conduct, and sets forth a procedure for reporting, investigating and resolving complaints of discrimination, harassment, in the workplace, including retaliation and hostile work environment.

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

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

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

D. All City employees and non-employees share a responsibility to assist in EXHIBIT 2

Page 20 of 41 ends

461
EXHIBIT 2

Page 21 of 41 ends

462
EXHIBIT 2

Page 22 of 41 ends

463
EXHIBIT 2

Page 23 of 41 ends

464
EXHIBIT 2

Page 24 of 41 ends

465
EXHIBIT 2

Page 25 of 41 ends

466
EXHIBIT 2

Page 26 of 41 ends

467
EXHIBIT 2

Page 27 of 41 ends

468
EXHIBIT 2

Page 28 of 41 ends

469
EXHIBIT 2

Page 29 of 41 ends

470
EXHIBIT 2

Page 30 of 41 ends

471
EXHIBIT 2

Page 31 of 41 ends

472
EXHIBIT 2

Page 32 of 41 ends

473
EXHIBIT 2

Page 33 of 41 ends

474

BOND FOR FAITHFUL PERFORMANCE
KNOW ALL MEN BY THESE PRESENTS:

Gruendl, Inc. dba
Bond No. ES00016177
Premium: $1,841.00
EXHIBIT 2
That we, RA Y'S ELECTRIC , a STATE OF CALIFORNIA CORPORATION, as Principal and Everest National Insurance Company , a corporation, organized and existing under the laws of the State of Delaware and duly authorized to transact business under the laws of the State of California, as Surety, are held and firmly bound unto the City of Stockton, a municipal corporation, duly created and existing under and by virtue of the laws of the State of California, as obligee, in the just and full sum of

ONE HUNDRED TWENTY-TWO THOUSAND SEVEN HUNDRED TWENTY-THREE AND 00/100 DOLLARS ($122,723.00}, in lawful money of the United States of America (being 100% of the contract price) for the payment whereof well and truly to be made to the said CITY, the said Principal and Surety bind themselves, their successors and assigns, jointly and severally, firmly by these presents.

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

STREETLIGHT KNOCKDOWN REPAIRS PHASE 7
(PROJECT NO. OM-23-016)
NOW, THEREFORE, if the above bounded Principal, CONTRACTOR, Company or
Corporation or its subcontractor, shall well and truly perform the work contracted to be done under said contract, then this obligation to be null and void; otherwise to remain in full force and effect.

No prepayment or delay in payment and no change, extension, addition or alteration of any provision of said contract, or in said plans or specifications agreed to between the said CONTRACTOR and the said CITY, and no forbearance on the part of the said CITY shall operate to relieve any Surety or Sureties from liability on this bond, and consent by said Surety is hereby given, and the said Surety hereby waives the EXHIBIT 2

Page 34 of 41 ends

475
EXHIBIT 2
provisions of Sections 2819 and 2845 of the Civil Code of the State of California.

SIGNED AND SEALED on December 8, 2023 ----------------
APPROVED AS TO SURETY:

Everest National Insurance Company
SURETY
APPROVED AS TO FORM & CONTENT:

LORI M. ASUNCION

OFFICE OF THE CITY ATTORNEY
By: ________ _

DEPUTY CITY ATTORNEY
EXHIBIT 2

Page 35 of 41 ends

476

ACKNOWLEDGMENT
A notary public or other officer completing this
certificate verifies only the identity of the individual who signed the document to which this certificate is
attached, and not the truthfulness, accuracy, or
validity of that document.

State of California
County of ______ A_l_am_e_ d a _____ �
before me, _____ C_o _urt_n_e_y_C_h_e_w_,_N_o_ta_ry_P_ u_b_lic ____ _ (insert name and title of the officer)
personally appeared Thuy du ong Le
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENAL TY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signat ure G .. G\\_'cW (Seal)
EXHIBIT 2

Page 36 of 41 ends

477
Ji.everest'"

POWER OF ATTORNEY
EVEREST REINSURANCE COMPANY and EVEREST NATIONAL INSURANCE COMPANY KNOW ALL PERSONS BY THESE PRESENTS: That Everest Reinsurance Company and Everest National Insurance Company, corporations of the State of Delaware ("Company") having their principal offices located at Warren Corporate Center, 100 Everest Way, Warren, New Jersey, 07059, do hereby nominate, constitute, and appoint:

Francis E. Cook, Ronald G. Speno, K. Zerounian, Brittany Kavan, Betty L. Tolentino, Virginia L. Black, Susan M. Exline, Kevin Re, Thuyduong Le, Julia Ortega, Maureen O'Connell, Robert P. Wrixon, Susan Hecker, Janet C. Rojo, M. Moody, Misty R. Hemje, Courtney Chew, Maria D. Reynoso, Tina K. Nierenberg, Forrest Chamberlain its true and lawful Attorney(s)-in-fact to make, execute, attest, seal and deliver for and on its behalf, as surety, and as its act and deed, where required, any and all bonds and undertakings in the nature thereof, for the penal sum of no one of which is in any event to exceed UNLIMITED, reserving for itself the full power of substitution and revocation.

Such bonds and undertakings, when duly executed by the aforesaid Attorney(s)-in-fact shall be binding upon the Company as fully and to the same extent as if such bonds and undertakings were signed by the President and Secretary of the Company and sealed with its corporate seal.

This Power of Attorney is granted and is signed by facsimile under and by the authority of the following Resolutions adopted by the Board of Directors of Company ("Board") on April 21, 2016:

RESOLVED, that the President, any Executive Vice President, and any Senior Vice President are hereby appointed by the Board as authorized to make, execute, seal and deliver for and on behalf of the Company, any and all bonds, undertakings, contracts or obligations in surety or co-surety with others and that the Secretary or any Assistant Secretary of the Company be and that each of them hereby is authorized to attest to the execution of any such bonds, undertakings, contracts or obligations in surety or co-surety and attach thereto the corporate seal of the Company.

RESOLVED, FURTHER, that the President, any Executive Vice President, and any Senior Vice President are hereby authorized to execute powers of attorney qualifying the attorney named in the given power of attorney to execute, on behalf of the Company, bonds and undertakings in surety or co-surety with others, and that the Secretary or any Assistant Secretary of the Company be, and that each of them is hereby authorized to attest the execution of any such power of attorney, and to attach thereto the corporate seal of the Company.

RESOLVED, FURTHER, that the signature of such officers named in the preceding resolutions and the corporate seal of the Company may be affixed to such powers of attorney or to any certificate relating thereto by facsimile, and any such power of attorney or certificate bearing such facsimile signatures or facsimile seal shall be thereafter valid and binding upon the Company with respect to any bond, undertaking, contract or obligation in surety or co-surety with others to which it is attached.

IN WITNESS WHEREOF, Everest Reinsurance Company and Everest National Insurance Company have caused their corporate seals to be affixed hereto, and these presents to be signed by their duly authorized officers this 10th day of October 2023.

Everest Reinsurance Company and Everest National Insurance Company By: Anthony Romano, Senior Vice President
On this 22,a of March 2023, before me personally came Anthony Romano, known to me, who, being duly sworn, did execute the above instrument; that he knows the seal of said Company; that the seal affixed to the aforesaid instrument is such corporate seal and was affixed thereto; and that he executed said instrument by like order.

LINDA ROBINS
Notary Public, State of New York
No 01 R06239736
Qualified in Queens County
Term Expires April 25, 2027 4�/JL-J
Linda Robins, Notary Public
I, Sylvia Semerdjian, Assistant Secretary of Everest Reinsurance Company and Everest National Insurance Company do hereby certify that I have compared the foregoing copy of the Power of Attorney and affidavit, and the copy of the Section of the bylaws and resolutions of said Corporation as set forth in said Power of Attorney, with the ORIGINALS ON FILE IN THE HOME OFFICE OF SAID CORPORATION, and that the same are correct transcripts thereof, and of the whole of the said originals, and that the said Power of Attorney has not been revoked and is now in full force and effect.

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the seal of said Company, this� day of December 202�.

ES 00 01 04 16
ll
it,j'·,
(; �
� { SEAL
�. 1985
�
By: Sylvia Semerdjian, Assistant Secretary
EXHIBIT 2

Page 37 of 41 ends

478
EXHIBIT 2
Bond No. ES00016177
Premium included in Performance Bo nd

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

Gruend l, Inc. dba
That we, RA Y'S ELECTRIC , a STATE OF CALIFORNIA CORPORATION, as Principal and Everest National Insurance Company , corporation, organized and existing under the laws of the State of _oe_la_w_are ____ and duly authorized to transact business under the laws of the State of California, as Surety, are held and firmly bound unto the City of Stockton, a municipal corporation, duly created and existing under and by virtue of the laws of the State of California, and unto any and all material suppliers, persons, companies, or corporations furnishing materials, provisions, provender or other supplies used in, upon, for or about the performance of the work contemplated to be executed or performed under the contract hereinafter mentioned, and all persons, companies, or corporations renting or hiring teams, or implements of machinery, for or contributing to said work and all persons who perform work or labor upon the same, and all persons who supply both work and materials, and whose claims have not been paid by the contractor, company or corporation in the just and full sum of ONE HUNDRED TWENTY-TWO THOUSAND SEVEN HUNDRED TWENTY-THREE AND 00/100 DOLLARS ($122,723.00), in lawful money of the United States of America (being 100% of the contract price) for the payment whereof well and truly to be made to said CITY and to said persons jointly and severally, the said principal and Surety bind themselves, their successors and assigns, jointly and severally, firmly by these presents.

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

STREETLIGHT KNOCKDOWN REPAIRS PHASE 7
(PROJECT NO. OM-23-016)
NOW, THEREFORE, if the above bounden Principal, CONTRACTOR, Company or Corporation or its subcontractor, fail to pay for all materials, provisions, provender, or other supplies, or teams, used in, upon, for or about the performance of the work contracted to be done, or for any work or labor done thereon of any kind, the Surety on EXHIBIT 2

Page 38 of 41 ends

479
EXHIBIT 2
this bond will pay the same, in an amount not exceeding the sum specified in this bond, provided that any and all claims hereunder shall be filed and proceedings had in connection therewith as required by the provisions of Division 3, Part 4, Title 15, Chapter 5, Article 1 of the Civil Code of California, provided that in case suit is brought upon this bond, a reasonable attorney's fee shall be awarded by the Court to the prevailing party in said suit; said attorney's fee to be fixed as costs in said suit, and to be included in the judgment therein rendered.

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

SIGNED AND SEALED on December 8, 2023 ----�------------- APPROVED AS TO SURETY:

APPROVED AS TO FORM & CONTENT:

LORI M. ASUNCION

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

DEPUTY CITY ATTORNEY
::M'·'�
1 PRINCIP L
Everest National Insurance Company
SURETY
By:��•�•·•-�--��-�--
Thuyduong Le, �YTNCdcT
EXHIBIT 2

Page 39 of 41 ends

480

State of California
County of ______ A_l_am_e_da _____ __,
On \)e c..eMbe. y 8 1'7023 before me, _____ C_o_u_rtn_ e...;.y_C_h_e_w_, _N_ot_a...;.ry_P_u_b_lic ___ _ (insert name and title of the officer)
personally appeared Thuyduong Le
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENAL TY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature 0 • Ck\<iW (Seal)
········1COURTNEY CHEW
Notary Public - California :

Contra Costa County ?:

Commission /I H◄8287 -
y Comm. Expires Miy 19, 2027
EXHIBIT 2

Page 40 of 41 ends

481
1J.. everest'"

Francis E. Cook, Ronald G. Speno, K. Zerounian, Brittany Kavan, Betty L. Tolentino, Virginia L. Black, Susan M. Exline, Kevin Re, Thuyduong Le, Julia Ortega, Maureen O'Connell, Robert P. Wrixon, Susan Hecker, Janet C, Rojo, M. Moody, Misty R. Hemje, Courtney Chew, Maria D. Reynoso, Tina K. Nierenberg, Forrest Chamberlain its true and lawful Attorney(s)-in-fact to make, execute, attest, seal and deliver for and on its behalf, as surety, and as its act and deed, where required, any and all bonds and undertakings in the nature thereof, for the penal sum of no one of which is in any event to exceed UNLIMITED, reserving for itself the full power of substitution and revocation.

This Power of Attorney is granted and is signed by facsimile under and by the authority of the following Resolutions adopted by the Board of Directors of Company ("Board") on April 21, 2016:

IN WITNESS WHEREOF, Everest Reinsurance Campany and Everest National Insurance Company have caused their corporate seals to be affixed hereto, and these presents to be signed by their duly authorized officers this 10th day of October 2023.

Everest Reinsurance Company and Everest National Insurance Company By: Anthony Romano, Senior Vice President
On this 22"d of March 2023, before me personally came Anthony Romano, known to me, who, being duly sworn, did execute the above instrument; that he knows the seal of said Company; that the seal affixed to the aforesaid instrument is such corporate seal and was affixed thereto; and that he executed said instrument by like order.

LINDA ROBINS
Notary Public, State of New York
No 01 R06239736
Qualified in Queens County
Term Expires April 25, 2027
4�fd�
Linda Robins, Notary Public
I, Sylvia Semerdjian, Assistant Secretary of Everest Reinsurance Company and Everest National Insurance Company do hereby certify that I have compared the foregoing copy of the Power of Attorney and affidavit, and the copy of the Section of the bylaws and resolutions of said Corporation as set forth in said Power of Attorney, with the ORIGINALS ON FILE IN THE HOME OFFICE OF SAID CORPORATION, and that the same are correct transcripts thereof, and of the whole of the said originals, and that the said Power of Attorney has not been revoked and is now in full force and effect.

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the seal of said Company, this� day of Dece mber 2022_.

By: Sylvia Semerdjian, Assistant Secretary
ES00 010416
EXHIBIT 2

Page 41 of 41 ends

482
City of Stockton
Legislation Text
File #: 24-0072, Version: 1
ADOPT AN ORDINANCE AMENDING CHAPTER 5.104 TO THE STOCKTON MUNICIPAL CODE

RELATED TO TOBACCO RETAILERS

RECOMMENDATION
It is recommended that the City Council:

1. Adopt an ordinance amending Chapter 5.104 to the Stockton Municipal Code relating to tobacco retailers, creating additional exemptions to the Chapter 5.104 distancing restrictions.

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

Summary
On June 20, 2023, the City Council approved the adoption of Ordinance 2023-06-20-1502, amending sections of Title 5 of the Stockton Municipal Code (“SMC”) concerning tobacco and the licensing of tobacco retailers (the “Ordinance”). Specifically, the Ordinance amended chapter 5.16.010, adding a required Tobacco Retailer License to the City’s approved business license schedule, and also added chapter 5.104 - Tobacco Retailers, which outlines the purpose, application, and requirements of the new Tobacco Retailers License.

Since the start of implementing this new business license, staff have been observing and taking note of the functionality of the established process and impacts and have worked with the Legislative and Environmental Committee to provide recommended revisions to the Ordinance, codified at SMC chapter 5.104.

DISCUSSION
Background
On July 20, 2022, the Council Legislation and Environmental Committee (“Committee”) directed the City Attorney’s Office to draft a proposed ordinance requiring tobacco retailers to obtain a license prior to conducting business within the City. The Committee expressed concern that the City cannot currently track the number or location of tobacco retailers in the City, and was particularly concerned with minors’ access to tobacco products. The Committee also expressed a desire to enact certain restrictions and requirements for tobacco retailers to operate within the City.

After the item was agendized for the November 15, 2022, City Council meeting, the item was pulled with reference to a number of public comments that had been delivered to the City in advance of that meeting. The proposed ordinance was brought back to the Committee for further input at its February City of Stockton Printed on 1/19/2024Page 1 of 4
powered by Legistar™
483
File #: 24-0072, Version: 1
15, 2023, and March 15, 2023 meetings. The new permit type was approved by the full Council on June 20, 2023, requiring tobacco retailers to obtain a tobacco retailing license in addition to a standard business license.

Some portions of the new SMC chapter 5.104 could be summarized as follows:

Tobacco Retailer Defined
Defines tobacco retailers broadly, to include any person who sells tobacco, tobacco products, or tobacco paraphernalia, without regard to the quantity sold.

According to the California Department of Tax and Fee Administration, when the City last inquired, there were 272 State-licensed tobacco retailers within the City. This count would include business categories like gas stations, grocery stores, and smoke shops. Under the Ordinance, all 272 retailers are required to obtain a license.

Applying for a License
Provides for a license application process. The full list of information sought from an applicant can be found at SMC Section 5.104.040, which includes details on the retail location, information about all individuals who have ownership or managerial interest in an applicant business, and proof that the business is licensed by the State.

Distance Restrictions
Provides for the denial of a license application if the tobacco retailer is within 600 feet of a school, public park, public playground, public recreational area, youth facility, or a tobacco retailer. These distancing restrictions do not apply to a tobacco retailer operating lawfully on the day before the effective date of the ordinance. This exemption would cease to apply if a tobacco retailer fails to timely renew its tobacco retailer license, or if the retailer’s tobacco retailer license is revoked.

Non-transferability of License
A tobacco retailer license is non-transferable and is location specific. If a licensee desires to change its business location, it must obtain a new license for the new location. If a licensed business is sold or experiences a change in ownership, the business must obtain a new license before continuing its tobacco retailing.

Staff from the Administrative Services, Police, and Community Development departments collaborated to establish a comprehensive application process. This involved creating new application forms, developing GIS layers, and streamlining the internal application flow. During August 2023, all identified licensed businesses were sent an informational letter detailing the ordinance along with the tobacco retail license application. The Police Department also conducted outreach through social media to notify the public of the new ordinance and included links to the code and information on how to report suspected violations.

Present Situation
During the Legislative and Environmental Committee Meeting on January 18, 2024, the committee, staff, and constituents discussed the lack of a “grandfathering clause” that would consider certain projects that were already in development before the effective date of the Ordinance to be exempt from the Ordinance’s 600-foot distancing restrictions.

City of Stockton Printed on 1/19/2024Page 2 of 4
powered by Legistar™
484
File #: 24-0072, Version: 1
Since the Ordinance’s effective date in September 2023, staff have been tracking impacts of the Ordinance on pending projects and presented the following information, based on the location requirements of the ordinance:
- 1 Planning Entitlement (Convenience Store) failed to meet location requirements § This project was deemed complete prior to adoption of the ordinance - 5 Proposed Convenience Stores, in the Building Permit stage, will fail to meet the location requirements of the new business license permit
§ 4 of the 5 permits were applied for prior to ordinance adoption § 2 of the 5 permits are currently under construction
Note, there may be additional projects beyond those listed above, which were already in development, and would satisfy the new exemption language in the proposed ordinance.

The SMC now prohibits a person from obtaining a tobacco retailer license if the retail location is within 600 feet of certain locations, including schools, parks, and other tobacco retailers. Businesses which pre-date the effective date of the Ordinance (which was September 17, 2023) are exempt from the 600-foot restriction. However, because tobacco licenses are non-transferable, if a business is sold (or franchised, or transferred in some other way), the new owner (or franchisee) would need to obtain their own tobacco retailer license. That new owner (or new franchisee) would not have been operating prior to September 17, 2023, so they would not be exempt from the 600-foot restriction.

Thus, if the location in question is within 600 feet of a restricted location, the new owner (or franchisee) currently cannot obtain a license of their own for the location and would be unable to sell tobacco products there.

Since the Ordinance’s adoption, staff have knowledge of four existing convenience stores that desire, but are unable, to move to the franchise model (i.e., conduct an ownership change) due to the locations’ proximity to other tobacco retailers or sensitive uses.

Based on constituent feedback and direction from the Committee, there was a desire to create an exemption to the 600-foot distancing restriction for businesses that not only predate the Ordinance, but also businesses that subsequently obtain that business location from the prior license holder.

To address the negative impacts to projects already in progress at the time of the effective date, and to create an additional 600-foot restriction exemption for certain business locations, the Environmental and Legislative Committee and staff are recommending the following amendments to SMC Title 5, Chapter 5.104:

Development Projects which Predate the Ordinance
The proposed ordinance will permit a location that was in development before the effective date of Chapter 5.104, which satisfies specified criteria, to have a tobacco retailer obtain a license at that location without regard to the 600-foot distancing restrictions.

City of Stockton Printed on 1/19/2024Page 3 of 4
powered by Legistar™
485
File #: 24-0072, Version: 1
Locations with Tobacco Retailing which Predate the Ordinance.

The proposed ordinance will allow a location to be exempt from the 600-foot distancing restrictions if (A) a tobacco retailer was retailing there lawfully prior to the effective date of Chapter 5.104, and (B) the location has been continually licensed as a tobacco retail location (plus up to 6 months after the expiration of the most recent license). This will allow a retail location which predates the ordinance to sell its establishment to a new owner, who will be able to obtain their own license to continue retailing tobacco at the location. If a retail location predating the ordinance has not yet been required to obtain a tobacco retailer license due to the phased rollout of the license requirement, a sale or transfer of the business would not trigger the location requirements.

The Committee has also expressed interest in exploring additional inspection and enforcement mechanisms, which staff will continue to explore as we continue implementation and adjustment of this new business license permit type.

FINANCIAL SUMMARY
There are no General Fund costs associated with the adoption of the ordinance as drafted.

Attachment A - Proposed Ordinance Red-lined Version
City of Stockton Printed on 1/19/2024Page 4 of 4
powered by Legistar™
486
1 ORDINANCE NO. ________________

AN ORDINANCE AMENDING TI
TLE 5, CHAPTER 5. 104, SECTION 5.104.060 OF

THE STOCKTON MUNICIPAL CODE CONCERNING TOBA CCO RETAILER

LICENSES

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

SECTION I. AMENDMENT OF CODE
Title 5, Chapter 5.104, section 5.104.060 of the Stockton Municipal Code is amended to read as follows:

5.104.060 Issuance and renewal of license; grounds for denial.

A. Upon the receipt of an application for a license and the applicable fee, the City shall issue a license unless any of the following exist:

1. The application is incomplete or inaccurate.

2. The application seek s authorization for tobacco retailing at an address that appears on a license that is suspended, has been re voked, or is subject to suspension or revocation proceedings for violation of any of the provisions of this chapter; provided, however, this subsection shall not constitute a basis for denial of a license if either or both of the following apply:
a. The applicant prov ides the City with documentation demonstrating that the applicant has acquired or is acquiring the pr emises or business in an arm’s length transaction.
b. It has been more than five (5) years si nce the most recent license for that location was revoked.

3. The app lication seeks authorization for toba cco retailing that is unlawful pursuant to this code, or that is unlawful pursuant to any ot her local, Stat e, or Federal law.

4. Ma king any false statements in the application or as to any other information presented as part of the application process.

5. Ev idence of current or prior unlawful or nuisance-creating operation in this or another jurisdiction.

6. The application seeks authorization for t obacco retailing at any location within 600 feet of a school, public park, public playground, public recreational area, or

ATTACHMENT A
487

2 youth facility, as measured in a straight line from the parcel boundar y of these locations to the boundary lines of the parcel of the tobacco retail license applicant’s proposed business location. However, t he prohibition contained in this subsection (A)(6) shall not apply to the following:

a. Any tobacco retailer operating lawfully on the day before the effective date of City of Stockton Ordinance 2023-06-20-1502the ordinance codified in this chapter;. or

b. An y lawfully operating tobacco reta iler that would otherwise become ineligible to receive a new license due to th e creation or relocation of a school, public park, public playground, public recreational area, or youth facility..

c. Any location that sati sfies both of the following:

(i) A tobacco retailer was lawfully operat ing at the location on the day before the effective date of City of Stockton Ordinance 2023-06-20-1502, or a tobacco retailer was lawfully operating at the location pursuant to subsection (d) of this section, and

(ii) Either (a) The location has since been a licensed tobacco retail location, without interruption, except t hat the most recently issued license for the location may have expired no more than six (6 ) months from the date of the present application, or (b) the present application has been submitt ed less than one year since the effective date of City of Stockton Ordinance 2023-06-20-1502.

d. Any location that was a qualifie d development project, as defined below, before the effective date of City of Stockton Ordinanc e 2023-06-20-1502. A “qualified development project” for purposes of this section is one where a land use permit or entitlement application has been determined by the Community Development Department to be complete before the effect ive date of City of Stockton Ordinance 2023-06-20-1502, and said land use permit or entitlement application has not expired pursuant to SMC Section 16.96.020(B).

7. T he application seeks authorization for tobacco retailing at any location within 600 feet of a location occupied by another tobacco retailer, as measured in a straight line from the parcel boundary of an existing tobacco retailer’s business location to the boundary lines of the parcel of the tobacco retailer license applicant’s proposed business location. However, t he prohibition contained in this subsection (A)(7) shall not apply to the following:

a. Any tobacco retailer operating lawfully on the day before the effective date of City of Stockton Ordinance 2023-06-20-1502the ordinance codified in this chapter.; or

b. Any location that sati sfies both of the following:

ATTACHMENT A
488

3 (i) A tobacco retailer was lawfully operat ing at the location on the day before the effective date of City of Stockton Ordinance 2023-06-20-1502, or a tobacco retailer was lawfully operating at the location pursuant to subsection (c) of this section, and

(ii) Either (a) The location has sinc e been a licensed tobacco retail location, without interruption, except t hat the most recently issued license for the location may have expired no more than six (6 ) months from the date of the present application, or (b) the present application has been submitt ed less than one year since the effective date of City of Stockton Ordinance 2023-06-20-1502.

c. Any location that was a qualifie d development project, as defined below, before the effective date of City of Stockton Ordinanc e 2023-06-20-1502. A “qualified development project” for purposes of this section is one where a land use permit or entitlement application has been determined by the Community Development Department to be complete before the effect ive date of City of Stockton Ordinance 2023-06-20-1502, and said land use permit or entitlement application has not expired pursuant to SMC Section 16.96.020(B).

8. An y exemption granted to a tobacco retailer pursuant to subsections (A)(6)(a)-(db) and (A)(7)(a) -(c) of this section shall cease to apply if a tobacco retailer fails to timely renew the tobacco retail license pursuant to this chapter or shall cease to apply if the tobacco retail license is revoked pursuant to this chapter.

9. The City is in po ssession of information that t he applicant or his agents or employees has violated any local, State, or Federal tobacco control law within the preceding 30-day period.

10. The applicant does not have a valid current pe rmit or license from the California Board of Equalization or any other applicable tobacco retail licensing agency, where the applicant is r equired to obtain any such permit or license in order to lawfully engage in tobacco retailing in the State of Calif ornia and/or in the County of San Joaquin.

B. If t he City does not approve a license or renewal of a license, the City shall notify the applicant of the specific grounds for the denial in writing. The notice shall be served personally, by regular mail, or by certified mail not later than five (5) days after the denial. If notice is delivered by mail, it shall be addressed to the applicant at the address as it appears on t he application. The giving of notice shall be deemed complete at the time of deposit of the notic e in the United States mail without extension of time for any reason. In lieu of mailing, the notice may be served personally by delivering to the person to be served and serv ice shall be deemed complete at the time of such delivery. Personal service to a corporation may be made by delivery of the notice to any person designated in the Califo rnia Code of Civil Procedure to be served for the corporation with summons and complaint in a civil action.

ATTACHMENT A
489
4 C. The denial of a tobacco retail license or renewal of a license may be
appealed. Notice of such appea l, in writing stating the grounds for such appeal, and admitting or denying those determinations of t he City included in the denial notice, shall be filed with the Chief of Polic e, or designee, within 10 days of the giving of the denial notice as specified in subsection B above. Upon failure to file the notice of appeal within the 10-day period, the action of the City in denying such tobacco retail license or renewal of such license shall be final and conclu sive. If the notice of appeal is filed in timely order, accompanied by payment of an appeal fee in an amount as may be established from time to time by resolution of the City Counc il, the Chief of Police, or designee, shall refer the matter to the City Attorney for scheduling of an administrative appeal hearing in accordance with the provisions of Chapter 1.44 of this code.

D. No twithstanding Section 5.104. 070, in the event a tobacco retailer files a timely appeal from the denial of the rene wal of a license pursuant to subsection C above, the tobacco retailer may continue to operate under the existing license pending the appeal decision. The determination of t he administrative hearing officer shall be final.

SECTION II. SEVERABILITY.

If any provision of this or dinance or the application thereof to any person or circumstance is held invalid, that invalidit y shall not affect other provisions, or applications of the fact which can be given without the invalid prov ision or application, and to this end the provisions of this act are severable.

SECTION III. EFFECTIVE DATE.

This ordinance shall be in full force and take effect 30 days after its passage.

ADOPTED: ___________________
EFFECTIVE: ___________________
_____________________________
KEVIN J. LINCOLN
Mayor of the City of Stockton
ATTEST:

ELIZA R. GARZA, CMC
City Clerk

ATTACHMENT A
490

5 City of Stockton

ATTACHMENT A
491

1 ORDINANCE NO. ________________

AN ORDINANCE AMENDING TITLE 5, CHAPTER 5.10 4, SECTION 5.104.060 OF

THE STOCKTON MUNICIPAL CODE CONCERNING TOBACCO RETAILER

LICENSES

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

SECTION I. AMENDMENT OF CODE

Title 5, Chapter 5.104, section 5.104.060 of the Stockton Municipal Code is amended to read as follows:

5.104.060 Issuance and renewal of license; grounds for denial.

A. Upon the receipt of an application for a license and the applicable fee, the City shall issue a license unless any of the following exist:

1. The application is incomplete or inaccurate.

a. The applicant provides the City with documentation demonstrating that the applicant has acquired or is acquiring the premises or business in an arm’s length transaction.

b. It has been more than five (5) years since th e most recent license for that location was revoked.

3. The application seeks authorization for tobacco retailing that is unlawful pursuant to this code, or that is unlawful pursuant to any other local, State, or Federal law.

4. Making any false statements in the application or as to any other information presented as part of the application process.

5. Evidence of current or prior unlawful or nuisance -creating operation in this or another jurisdiction.

6. The application seeks authorization for tobacco retailing at any location within 600 feet of a school, public park, public playground, public recreational area, or 492

2 youth facility, as measured in a straight line from the parcel boundary of these lo cations to the boundary lines of the parcel of the tobacco retail license applicant’s proposed business location. However, the prohibition contained in this subsection (A)(6) shall not apply to the following:

a. Any tobacco retailer opera ting lawfully on the day before the effective date of City of Stockton Ordinance 2023-06-20-1502.

b. Any lawfully operating tobacco retailer that would otherwise become ineligible to receive a new license due to the creation or relocation o f a school, public park, public playground, public recreational area, or youth facility.

c. Any location that satisfies both of the following:

(i) A tobacco retailer was lawfully operating at the location on the day before the effective date of City of Stockton Ordinance 2023 -06-20-1502, or a tobacco retailer was lawfully operating at the location pursuant to subsection (d) of this section, and

(ii) Either (a) The location has since been a licensed tobacco retail location, without interruption, except that the most recently issued license for the location may have expired no more than six (6) months from the date of the present application, or (b) the present application has been submitted less than one year since the effective date of City of Stockton Ordinance 2023-06-20-1502.

d. Any location that was a qualified development project, as defined below, before the effective date of City of Stockton Ordinance 2023 -06-20-1502. A “qualified development project” for purposes of this section is one where a land use permit or entitlement application has been determined by the Community Development Department to be complete before the effective date of City of Stockton Ordinance 2023-06-20-1502, and said land use permit or entitlement application has not expired pursuant to SMC Section 16.96.020(B).

7. The application seeks authorization for tobacco retailing at any location within 600 feet of a location occupied by another tobacco ret ailer, as measured in a straight line from the parcel boundary of an existing tobacco retailer’s business location to the boundary lines of the parcel of the tobacco retailer license applicant’s proposed business location. However, the prohibition containe d in this subsection (A)(7) shall not apply to the following:

a. Any tobacco retailer operating lawfully on the day before the effective date of City of Stockton Ordinance 2023-06-20-1502; or

b. Any location that satisfies both of the following:

493

3 (i) A tobacco retailer was lawfully operating at the location on the day before the effective date of City of Stockton Ordinance 2023-06-20-1502, or a tobacco retailer was lawfully operating at the location pursuant to subsection (c) of this section, and

(ii) Either (a) The location has since been a licensed tobacco retail location, without interruption, except that the most recently issued license for the location may have expired no more than six (6) months from the date of the present app lication, or (b) the present application has been submitted less than one year since the effective date of City of Stockton Ordinance 2023-06-20-1502.

c. Any location that was a qualified development project, as defined below, before the effective date of City of Stockton Ordinance 2023 -06-20-1502. A “qualified development project” for purposes of this section is one where a land use permit or entitlement application has been determined by the Community Development Department to be complete before the effective date of City of Stockton Ordinance 2023-06-20-1502, and said land use permit or entitlement application has not expired pursuant to SMC Section 16.96.020(B).

8. Any exemption granted to a tobacco retailer pursuant to subsections (A)(6)(a)(d) and (A)(7)(a) -(c) of this section shall cease to apply if a tobacco retailer fails to timely renew the tobacco retail license pursuant to this chapt er or shall cease to apply if the tobacco retail license is revoked pursuant to this chapter.

9. The City is in possession of information that the applicant or his agents or employees has violated any local, State, or Federal tobacco cont rol law within the preceding 30-day period.

10. The applicant does not have a valid current permit or license from the California Board of Equalization or any other applicable tobacco retail licensing agency, where the applicant is required to obtain any such permit or license in order to lawfully engage in tobacco retailing in the State of California and/or in the County of San Joaquin.

B. If the City does not approve a license or renewal of a license, the City shall notify the applicant of the specific grounds for the denial in writing. The notice shall be served personally, by regular mail, or by certified mail not later than five (5) days after the denial. If notice is delivered by mail, it shall be addressed to the applican t at the address as it appears on the application. The giving of notice shall be deemed complete at the time of deposit of the notice in the United States mail without extension of time for any reason. In lieu of mailing, the notice may be served personall y by delivering to the person to be served and service shall be deemed complete at the time of such delivery. Personal service to a corporation may be made by delivery of the notice to any person designated in the California Code of Civil Procedure to be s erved for the corporation with summons and complaint in a civil action.

494

4 C. The denial of a tobacco retail license or renewal of a license may be appealed. Notice of such appeal, in writing stating the grounds for such appeal, and admitting or denying those determinations of the City included in the denial notice, shall be filed with the Chief of Police, or designee, within 10 days of the giving of the denial notice as specified in subsection B above. Upon failure to file the notice of appeal w ithin the 10day period, the action of the City in denying such tobacco retail license or renewal of such license shall be final and conclusive. If the notice of appeal is filed in timely order, accompanied by payment of an appeal fee in an amount as may b e established from time to time by resolution of the City Council, the Chief of Police, or designee, shall refer the matter to the City Attorney for scheduling of an administrative appeal hearing in accordance with the provisions of Chapter 1.44 of this code.

D. Notwithstanding Section 5.104.070, in the event a tobacco retailer files a timely appeal from the denial of the renewal of a license pursuant to subsection C above, the tobacco retailer may continue to operate under the existing licen se pending the appeal decision. The determination of the administrative hearing officer shall be final.

SECTION II. SEVERABILITY.

If any provision of this ordinance or the application thereof to any person or circumstance is held invalid, that invalidity shall not affect other provisions, or applications of the fact which can be given without the invalid provision or application, and to this end the provisions of this act are severable.

SECTION III. EFFECTIVE DATE.

This ordinance shall be in full force and take effect 30 days after its passage.

ADOPTED:

EFFECTIVE:

KEVIN J. LINCOLN II
Mayor of the City of Stockton

ATTEST:

ELIZA R. GARZA, CMC
City Clerk City of Stockton
495
City of Stockton
Legislation Text
File #: 24-0048, Version: 1
ACCEPT THE FISCAL YEAR 2022-23 FOURTH QUARTER BUDGET STATUS UPDATE,

AUTHORIZE BUDGET AMENDMENTS, AND MAKE ALLOCATIONS TO GENERAL FUND

RESERVES

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

1. Accept this budget status report on the unaudited results of the fourth quarter of Fiscal Year (FY) 2022-23.

2. Allocate the General Fund Vacancy Savings budget reduction for FY 2022-23 from Other Administration (Non-Departmental) category to the following departments:

Reduce Expenditure Budget:

Department
Amount
a. City Clerk $ 37,000
b. City Manager $125,000
c. Office of Violence Prevention $ 67,000
d. City Attorney $ 93,000
e. Economic Development $107,000
$429,000
Increase Expenditure Budget:

Other Administration $429,000

3. Authorize a reserve for future appropriation of $925,000 from FY 2022-23 ending balance in the General Fund to reimburse the United States Department of Housing and Urban Development for costs deemed ineligible associated with Oak Park Ice Arena improvements.

4. Authorize a reserve for future appropriation of $1,469,000 from FY 2022-23 available funds for the estimated increase in the Assured Guaranty Settlement contingent payments for a total reserve of $3,600,000.

5. Authorize a FY 2022-23 General Fund appropriation of $21,450,000 for Council priority projects including restoration of Fire Station 7, parks maintenance, and the Victory Park Pool.

6. Allocate available fund balance to reserve categories consistent with the Council Reserve and Fund Balance Policy - General Fund Policy. The net increase in fund balance will be added to the current reserve levels, as displayed in Table 6, to achieve the total reserve amounts as follows:

City of Stockton Printed on 1/19/2024Page 1 of 16
powered by Legistar™
496
File #: 24-0048, Version: 1
Priority 1 Reserves
Working Capital $48,300,000
Known Contingency $68,000,000
Priority 2 Reserves
Risk-Based Reserves $10,800,000

7. Authorize a FY 2022-23 budget amendment increasing expenditure and revenue appropriations in the Downtown Marina Fund by $8,500.

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

Summary
City staff analyzes the City’s expenditures and revenues quarterly and provides reports to the City Council and the public to increase transparency, make financial recommendations in response to financial activities, and perform routine financial operations that require Council’s authority to complete.

The City has experienced higher than anticipated revenues and lower than anticipated expenditures.

Projected revenues of $321.8 million are $36.2 million more than the adopted budget and $12.0 million more than the projection in the Third Quarter Budget Update. Projected expenditures of $328.8 million are $21.9 million less than the adopted budget and $2.2 million more than the projection in the Third Quarter Budget Update. The fiscal year-end projected numbers reflect actuals as they currently stand but are unaudited and subject to changes before the Annual Comprehensive Financial Report (ACFR) is published.

The City has prudently adopted the Reserve and Fund Balance Policy - this policy attempts to set aside reserves using the Long-Range Financial Plan (L-RFP), a tool designed to help the City’s consultants and analysts understand how the City will respond to likely future economic factors. The L-RFP and the Reserve and Fund Balance Policy are designed to set aside fund balance during financially prosperous years so that City services can continue during financially lean years.

DISCUSSION
Background
One of the strategic initiatives developed to support the City’s long-term fiscal sustainability was to provide regular analysis and reporting of the City’s financial status. As a result, the Council and the public should anticipate quarterly reports.

A fund is a set of accounts designed to track a specific kind of financial activity. Each fund is its own business entity and consists of its own “set of books” and specific rules. This allows the City to provide and account for different kinds of activities and departments separately. The General Fund is the City’s largest and most important fund. It is the fund which provides for most of the City’s fundamentally necessary or “general” activities such as public safety. The City’s General Fund balance is also considered unassigned, which means that it is not tied to a specific service or type of City of Stockton Printed on 1/19/2024Page 2 of 16
powered by Legistar™
497
File #: 24-0048, Version: 1
expenditure, although most of the General Fund has been assigned to restricted balances. The remainder of the General Fund might be used to support or enhance any service that the City might require.

The City accrues or “moves back” transactions that occur up until 90 days after the fiscal year closes on June 30 that represent activity that occurred during the fiscal year. This practice is used to accurately reflect best accounting practice or Generally Accepted Accounting Principles (GAAP) to present the financial activity in the same accounting period in which it occurred.

To achieve long-term fiscal sustainability, the City Council adopted the Reserve and Fund Balance Policy - General Fund on March 29, 2016, that establishes reserves for known contingencies, unforeseen revenue changes, infrastructure failures, and catastrophic events in addition to the operating reserve. Accordingly, Staff recommends increasing reserves from the available General Fund dollars.

Present Situation
General Fund
Staff analyzed General Fund unaudited expenditure and revenue results for the full 12 months of FY 2022-23, as shown in Attachments A and B. The City’s financial statements have not yet undergone the full annual audit process and are subject to change. Staff will provide audited financial statements for all funds through the publication of the ACFR. Attachment A summarizes the City's General Fund revenues, expenditures, and available balance by Approved Budget, Third Quarter Projection, Year- End Projection, and variance amounts.

Council adopted the FY 2022-23 Annual Budget of $898.7 million in appropriations, including $282.9 million in General Fund appropriations, on June 21, 2022. Throughout the fiscal year, Administrative and Council-approved amendments to the adopted budget increased the total General Fund expenditure appropriations to $350.6 million, mainly resulting from one-time appropriations for City- wide projects and operating budget adjustments based on approved employee labor agreements.

Summary Tables
Staff reviewed the City’s unaudited Fourth Quarter (Q4) FY 2022-23 financial activity in the General Fund (Attachment A). The following tables summarize the results of the Fourth Quarter / Year-End review of General Fund compared to the Approved Budget and the Year-End (YE) Projection as of the Third Quarter Budget Update (Q3):

City of Stockton Printed on 1/19/2024Page 3 of 16
powered by Legistar™
498
File #: 24-0048, Version: 1
Summary Revenues and Expenditures
The General Fund ended FY 2022-23 with revenues that were 3.9% above the Third Quarter estimates and 12.7% above the Approved Budget of $285.6 million. In the Third Quarter Budget Update, Staff estimated that the City’s General Fund would end the fiscal year with revenues of $309.8 million. At year-end, City staff are reporting a total of $321.8 million in revenue. Sales tax and business license tax revenues accounted for most of the variance between what was budgeted and actual receipts.

The General Fund Ended FY 2022-23 with expenditures that were less than one percent above the Third Quarter estimates and 6.2% below the approved budget. The General Fund had an approved expenditure budget of $350.6 million. In the Third Quarter Budget Update, Staff estimated that the City would end with $326.6 million in General Fund expenditures. At year-end, City staff are reporting a total of $328.8 million in expenditures on a budgetary basis. Vacancy savings accounted for most of the variance between what was budgeted and what was spent.

Net Position
The net position is the difference between revenues and expenditures and represents how much of the fiscal year’s activity will be made available to fund future efforts, or, if negative, how much fund balance was used or committed to cover current or future activity.

The approved budget originally expended or committed $65.1 million more than anticipated revenues. At the third quarter reporting, Staff anticipated spending or committing $16.8 million in excess of anticipated revenues, and at year-end, the City’s books are showing that the City only expended or committed $7.0 million in excess of anticipated revenues.

A combination of global economic factors pertaining mostly due to Covid-19 and salary savings have led to the net position being $58.0 million more than initially anticipated. It is recommended that a portion of these savings be programmed towards Council priority items and that the remainder be put towards reserves, saving for future commitments and potential economic downturns.

General Fund Revenues
As generally described in the previous section, overall revenues came in higher than anticipated compared to both the Approved Budget and the Third Quarter Budget Update year-end projection.

Below is a discussion of selected categories of General Fund revenues (also displayed in Attachment City of Stockton Printed on 1/19/2024Page 4 of 16
powered by Legistar™
499
File #: 24-0048, Version: 1
B). Chart 1 shows the various revenue categories as a percent of total General Fund revenues.

Sales Tax Collections, the General Fund’s largest revenue source, are expected to be $14.6 million greater than the budgeted level of $112.0 million, which is an increase of approximately $827,000 from the Third Quarter Budget Report projection. Measure A is projected to be $7.6 million more (18%) than the budgeted amount of $42.1 million. At $126.7 million, Sales Tax receipts make up approximately 39.4% of all General Fund revenues.

Current year-end sales tax receipts for FY 2022-23 are projected to be 13% more than budgeted and

4.1% more than FY 2021-22 receipts. Revenues have been difficult to predict in recent years but have been higher than usual due to national factors caused by a rapidly changing economy. Sales tax revenue is directly related to retail sales. On a national scale, at the start of January 2020, the Legislative Analyst’s Office (using U.S. Census Bureau data) reported national U.S. Retail Sales at $525 million. At the end of October 2023, the number had risen to $706 million, or approximately 34%.

Chart 2, “U.S. Retail Sales” Illustrates the unpredictability of the Retail Sales sector, showing a national response to the 2008 Financial Crisis followed by slow and steady growth until the COVID- 19 Pandemic in 2020, and then erratic and mercurial growth up until the present day. It is anticipated that sales will soon normalize and return to their previous “slow and steady” growth pattern. Starting towards the end of FY 2022-23, the chart has already begun to reflect a more stable trajectory and retail sales are beginning to cool.

City of Stockton Printed on 1/19/2024Page 5 of 16
powered by Legistar™
500
File #: 24-0048, Version: 1
As demonstrated in Table 2 below, on an unadjusted cash basis, sales tax receipts declined in FY 2022-23. Since the below numbers are shown on a slightly different accounting basis than the City’s books, City revenues will not directly reflect these numbers and some of the market cooling that occurred in the FY 2022-23 months will not post to the City’s financial statements until early FY 2023-

24. Likewise, some of the peak FY 2021-22 revenues have spilled over into the City’s FY 2022-23 financial statements.

Timing variances aside, almost all markets have slowed. This is due to a natural normalization period after upward swings during and following COVID. The rates of decline below were anticipated in City revenue projections but materialized later than originally thought.

Autos and Transportation have naturally slowed as supply chains around obtaining vehicles have cleared and interest rates have driven up the cost of personal vehicle purchases. Likewise, Building and Construction revenues have also decreased from peak levels as lumber prices normalize and interest rates slow home purchases and improvements. The Business and Industry category also reflects this market cooling. Food and Drugs cooling has slowed, approaching normalcy sooner than other categories, given peak levels during and just after COVID.

The City’s Sales Tax consultants are projecting a return to normalcy over the next couple of years as City of Stockton Printed on 1/19/2024Page 6 of 16
powered by Legistar™
501
File #: 24-0048, Version: 1
supply chains, spending habits, and employment stop fluctuating due to recent unanticipated world events. During the next few years, this will likely result in moderate decreases followed by mild and consistent increases, at least until the next economic downturn. Due to adjustments for payment misallocations, the City’s General Ledger will not reflect the full effects of this slow-down until early in FY 2023-24.

Property Tax revenue estimates (including Motor Vehicle In-Lieu Fees) are up $1.3 million or 2% compared to the Approved Budget. Property Tax receipts make up approximately 22.4% of the City’s General Fund revenues. They are remitted to the City each year by the County of San Joaquin in January and April. Property Tax growth is attributable to increasing home values, commercial and industrial construction, and new home construction.

Utility Users Tax (UUT) is a 6% tax imposed on the users of various utilities and represents 13.2% of General Fund revenues. The FY 2022-23 UUT receipts are projected to be $42.4 million, which is

10.0% higher than the Approved Budget of $38.7 million. UUT is subject to a certain degree of volatility as consumers’ use of utilities can be dependent on weather conditions, conservation efforts, and the availability of substitutes. Most of the additional revenue has come from Electric & Gas - this is attributable to a PG&E rate increase at the start of 2023, as well as the FY 2022-23 winter season being notably longer and colder than anticipated.

While electricity and gas revenues were higher than anticipated, cable, water and telecommunications revenues declined compared to prior year receipts. As wireless technologies continue to expand, telecommunications will decline in usage as an ongoing trend. The decline in water billing is also attributable to a longer and wetter winter compared to recent years, causing a decrease in required irrigation and billable water usage.

Franchise Tax revenues are collected from companies that provide municipal services in three categories--PG&E, Cable/Video, and Waste Haulers--and make up approximately 5.9% of revenues.

These businesses are charged based on a percentage of income generated. Revenues from Electric & Gas came in 17% higher than budget, and Waste Haulers came in 11% higher than budget. The PG&E variance is attributable to the same reasons discussed in the UUT section above. The waste haulers’ variance is attributable to a City audit of businesses resulting in identifying entities that did not have required services and requiring them to sign up for the mandatory service. This audit resulted in more commercial waste hauler activity than in prior years.

Business License Tax revenues make up 6.8% of revenues. Business License Taxes are expected to end the year at $22.0 million or 56.8% increase over the prior year. Approximately 50% of business license tax collections occur in the last three months of the fiscal year, and this timing contributes to the volatility of year-end revenue projections. In addition, new efficiencies and cleanup related to the implementation of the City’s new financial system have resulted in more accurate and timely billing and bringing old accounts current. The increased revenues also include new types of Cannabis businesses permitted in previous years but only recently generating business license revenues based on sales. A portion of the revenues received in FY 2022-23 were catch-up payments or penalties related to business license cleanup and will not be reoccurring revenues.

While Hotel/Motel Tax revenues were $221,438 greater than the budget of $3.2 million, they came in

5.2% less than the prior year revenues of $3.6 million.

City of Stockton Printed on 1/19/2024Page 7 of 16
powered by Legistar™
502
File #: 24-0048, Version: 1
Document Transfer Tax revenues came in below budget by $171,519 and below the prior year by $597,072. A cooling in property sales after previous years’ surge has resulted in the Document Transfer Tax revenues starting to return to their pre-pandemic levels following a 33.9% increase in FY 2021-22. Home sale values reached peak levels in FY 2021-22 with early signs of market cooling towards the end of that year that continued into the present fiscal year.

Motor Vehicle License revenue receipts of $331,550 are 66% more than the budgeted amount of $200,000 but almost $40,000 less than FY 2021-22. Constrained supply led to much higher-than- expected sale values; however, recent data shows cooling consistent with the sales tax revenues discussed above and is expected to return to normal levels in FY 2023-24.

Interest Proceeds are highly dependent on unpredictable market performance. These amounts include proceeds from investments and the benefit of paying the full amount of the CalPERS Unfunded Accrued Liability payment in July rather than over the course of a year. Interest income is estimated to be an unprecedented $6.4 million, coming in $4.0 million more than the budget.

Additional investment earnings are due primarily to more cash on hand from one-time federal grant dollars and improved revenues as well as favorable performance of the City’s investment portfolio.

This return on investments is not expected to be maintained as one-time funding sources are expended and the investment environment normalizes.

Program Revenues are above budget by $2.2 million (13%). The categories with the most significant variances are discussed below:
· Fines & Forfeitures revenues have fluctuated, falling short of budget expectations by $147,908, or (27%). Traffic and parking enforcement activities that result in fine and forfeiture revenues often decline when the Police Department is experiencing higher vacancies as employee resources are deployed differently.
· Revenues from other Agencies ended the year up by 39% or $1.6 million, mainly due to $1.4 million above budget in the City’s share of Redevelopment Property Tax Trust Fund monies. The City also received State Mandated Cost reimbursements of $119,435 more than anticipated.
· Miscellaneous Other Revenues are heavily influenced by the allowance for doubtful accounts adjustment as well as the year-end bank reconciliation. As such, it is very difficult to anticipate and varies widely depending on the timing of the entry. It ended the year at $247,413 after being budgeted at ($172,271) for an increase of $419,684.

Refund & Reimbursement revenues came in 28% higher than budgeted or $267,960, largely due to cash reimbursement for police academy costs, as well as escheated checks, which are difficult to anticipate and budget for as the City’s assumption is that no checks will remain unclaimed.

General Fund Expenditures
Staff reviewed year-end General Fund expenditures as detailed in Attachment A. General Fund expenditures are projected to end the year at $328.8 million, which is $21.8 million, or 6.2% less than the Approved Budget. Except for Other Administration, all General Fund departmental activities ended the fiscal year below their appropriation levels.

City of Stockton Printed on 1/19/2024Page 8 of 16
powered by Legistar™
503
File #: 24-0048, Version: 1
The chart below summarizes all departments and programs' spending levels as a percent of their total budget compared with the Third Quarter projections.

The FY 2022-23 Budget included approximately $10.4 million in anticipated salary savings, which is

5.2% of the total salary and benefits budget of $201.2 million (includes full-time and part-time expenses). The labor market has become much more competitive since the pandemic, making retention and recruitment more difficult. In FY 2021-22, the vacancy rate was 11.5%, and this trend continued in FY 2022-23 with a total General Fund vacancy rate of 15.4%. The unanticipated additional savings of $20.5 million is the most significant cause of expenditure savings in the General Fund.

City of Stockton Printed on 1/19/2024Page 9 of 16
powered by Legistar™
504
File #: 24-0048, Version: 1
Most departments experienced greater-than-anticipated vacancy savings with salary expenses coming in under budget by about 15%. Below is a summary of those savings by department before factoring in budgeted vacancy savings.

The Police Department spent $13.8 million (8.8%) less than its authorized budget primarily due to vacancy savings. The department expanded recruitment efforts during FY 2022-23 via attendance at local events and media advertisements, implementing a wellness unit, and partnering with local educational institutions to pipeline students into a police field. As a result of these efforts, 33 officers were hired. Despite this, the department experienced 68 departures. In response to this result, in December of 2023, the City reprogrammed the staffing costs committed to 60 vacant and continuously unfilled positions towards expanded recruitment and retention benefits for all existing officer positions, effective April 1, 2024. It is expected that these expanded benefits will increase the City’s competitiveness in the law enforcement recruitment field.

The Fire Department ended the fiscal year with approximately $3.0 million in savings or 5.2% of the budget primarily due to vacancies. Fire Academy 22-2 and Fire Academy 23-1 successfully graduated Firefighter trainees that filled 31 vacant positions. Personnel attrition continued throughout the fiscal year and created additional vacancies of 11 sworn positions at the end of FY 2022-23.

Vacancy savings more than offset the additional overtime costs incurred by the department to maintain required emergency service levels.

In the Program Support for Other Funds category, the only notable budget variance is in the grant match category. There were no grants requiring matching funds from the General Fund in FY 2022- 23, leaving an unspent balance of $100,000. Grant match needs vary from year-to-year based on grant award requirements.

City of Stockton Printed on 1/19/2024Page 10 of 16
powered by Legistar™
505
File #: 24-0048, Version: 1
The various departments under Administration (City Manager, City Attorney, City Clerk, City Auditor, Administrative Services, and Human Resources) cumulatively, came in 10.2% under budget primarily due to vacancy savings. Some items of note: Election expenses were less than budgeted because only one of three districts required a runoff in the November 2022 election. The Other Administration category shows an overage because it includes budgeted vacancy savings for smaller departments in the General Fund. A recommended budget amendment to spread this negative budget to the City Clerk’s Office, City Manager’s Office, the Office of Violence Prevention, City Attorney, and Economic Development will result in a positive balance.

Fund Balance and Reserves
With the above General Fund revenue and expenditure results, the variance from the FY 2022-23 budget is approximately $58.0 million. Expenditure savings are one-time dollars that should be spent on one-time costs. The revenues received over the budgeted amount are also one-time funds but can be indicative of an ongoing source of funds. Of the $36.2 million revenue variance, $20 million was known and incorporated into long-term planning during the most recent budget cycle for the FY 2023-24 Budget. At that time, it was programmed toward a variety of new expenditures. The City Council also approved successor labor agreements with four employee units in September 2023 that added ongoing expenses which draw on these revenue sources. The table below shows the previous commitments against the $58.0 million budget variance including labor agreements and new expenses in the FY 2023-24 Budget.

Table 4: Previous Commitments on Budget Variance
It is recommended that two commitments be funded out of the year-end balance before reserves or special projects are considered.

1. $1,469,000 in additional set-aside for future payments to Assured Guaranty under the City’s bankruptcy settlement. The increased revenue receipts in FY 2022-23 will increase future City of Stockton Printed on 1/19/2024Page 11 of 16
powered by Legistar™
506
File #: 24-0048, Version: 1
payments by $1,469,000. This amount will be added to funds set aside in prior years for a total restriction of $3.6 million.

2. $925,000 for the repayment of Community Development Block Grant (CDBG) funding to U.S.

Department of Housing and Urban Development (HUD) for the Oak Park Ice Rink (OPIR) improvement project. This is based on the results from the Federal Fiscal Year (FFY) 2021 Remote Monitoring Review where HUD identified this activity as unable to meet HUD’s expectations to document that the activity met the Low/Mod Area Benefit CDBG national objective criteria. At the time of allocation in 2019, City staff determined that the OPIR met the CDBG national objective under the Low/Mod Income Area Benefit. This determination was made due to the high number of Stockton youth that utilize OPIR for birthday parties, ice skating, and ice hockey. Furthermore, Oak Park is in a census tract with economic indicators that meet the Low/Mod Area benefit criteria. After several attempts at clearing up this finding, City staff were unsuccessful at demonstrating that the project met a national objective and therefore needs to move forward with a repayment to HUD. The funds will go back to the CDBG program line of credit, for future allocation/use.

After the above commitments, there is expected to be $35.3 million in fund balance that is not assigned to any kind of reserve, made up of non-spendable assets (such as inventory), nor encumbered or carried forward for future years expenditures by prior Council action. This resolution recommends that $21.45 million be set aside for the Council projects and $13.8 million be assigned to the various reserves.

Per the City Council General Fund Reserve Policy, the target reserve levels are as follows. These target funding levels are based on calculations that are adopted each year as part of the annual budget process. The target under the reserve policy totals $203.1 million. With recommended increases to the Working Capital Reserve ($1.1 million) and to the Known Contingency Reserve ($12.7 million), the total funded reserves would be $127.1 million, or 39% of annual expenditures.

Target Level
Recommended Funding
Priority 1:

1. Working Capital $48.3 million $48.3 million

2. Known Contingencies $74.0 million $68.0 million
Priority 2:

3. Risk-Based Reserves $80.8 million $10.8 million
While there is sufficient funding to fully fund the Priority 1 reserves, the recommendation is to use a portion of these funds to improve services and facilities for the community. This approach will balance the City’s priorities, follow the reserve policy, fund vital Council priority projects while safeguarding against the immediate economic slowdown, and significantly improve the City’s ability to weather the next economic downturn, while still providing a small amount of short-term “breathing room” for small discretionary costs in FY 2023-24.

City of Stockton Printed on 1/19/2024Page 12 of 16
powered by Legistar™
507
File #: 24-0048, Version: 1
Funding for Projects
City departments proposed over $60.0 million in potential uses for $21.5 million in year-end funds.

Table 5 below is a summary of the recommended projects from that list. In addition to the listed projects, Staff is recommending that $5.0 million be reserved for one-time Council priority projects to be allocated as directed by the Council. Some proposed uses of the $5.0 million are shown in Attachment C.

Table 5: Funding for Projects (dollars in thousands)
Long-Range Financial Plan
The City’s updated Long-Range Financial Plan (L-RFP) incorporates the revised year-end financial projections. The projected increase in the General Fund available fund balance will fund reserves essential to keeping the fund balance above the 5% warning level over the next 20 years.

The graph below illustrates the short and long-term impact on the General Fund available balance forecast compared to the 16.7% Working Capital reserve and the 5% warning level. The bars depict the General Fund ending available fund balance at each fiscal year-end beginning with actual balances for FY 2018-19 through FY 2022-23 and continuing forward based on forecasts. The light blue bars represent the Working Capital reserve. The dark blue portion of the bars includes both Known Contingency and Risk-Based reserves. The yellow bars represent the projected Pension Trust balance.

As shown in the graph, the available balance is above the 16.7% goal for all projected years due to updated revenue projections. The combined balance from Pension Trust dollars and current year balances enables the General Fund to weather more than ten years of deficit spending starting in FY 2025-26 and totaling more than $140 million. Expenditures are greater than revenues for 13 of the next 20 years starting in FY 2025-26, which draws down the fund balance. Funds in the Pension Trust are depleted by FY 2034-35.

Chart 5 reflects the recommended actions to allocate $21.45 million to priority projects and to increase reserves by $12.7 million. It does not include the ongoing cost to reopen Fire Truck No. 7 once grant funding is exhausted. In the current L-RFP, the annual General Fund cost of $3.5 million for Truck No. 7 is slightly out of reach. Chart 6 shows the General Fund balance at almost $0 in FY 2039-40 when these additional costs are incorporated. It is anticipated that the long-term fund balance will improve in the L-RFP model as more assumptions are updated in preparation for the City of Stockton Printed on 1/19/2024Page 13 of 16
powered by Legistar™
508
File #: 24-0048, Version: 1
upcoming FY 2024-25 budget development process, resulting in the reopening of Truck No. 7 becoming feasible.

Chart 5: Long-Range Financial Plan
Chart 6: Long-Range Financial Plan with the reopening of Fire Truck No. 7 Other Funds
Attachment D summarizes the FY 2022-23 unaudited fiscal year-end results for all other significant City funds. All funds are coming in under budget except Economic Development’s Downtown Marina Fund. Staff slightly underestimated the activity that the Marina would experience and, as a result, City of Stockton Printed on 1/19/2024Page 14 of 16
powered by Legistar™
509
File #: 24-0048, Version: 1
revenues and expenditures are both over budget by about 3%. The additional revenues received will cover the overage in expenses, so an $8,500 budget amendment increasing both revenues and expenditures is recommended.

In most cases, the other funds all experienced revenue at or greater than expected and expenditures below budget - this is largely attributable to salary savings. No other action is required to balance these funds.

FINANCIAL SUMMARY
This report provides an analysis of FY 2022-23 fourth-quarter budget status results. The unaudited 12-month period review indicates General Fund revenue increases and expenditure savings are estimated to result in a year-end balance that can fully fund the Working Capital Reserve and mostly fund the Known Contingency Reserve. No additional funding is being contributed toward Priority II - Risk-Based Reserves.

Following are the budget amendments and transactions needed to complete the recommended actions:

1. Accept this budget status report on the unaudited results of the fourth quarter of FY 2022-23.

2. Allocate Vacancy Savings budget reduction for FY 2022-23 from Other Administration (Non- Departmental) category to the following departments:

Reduce Expenditure Budget:

Department
Division/Fund Amount
a. City Clerk 1110-100-000 $ 37,000
b. City Manager 1230-100-000 $125,000
c. Office of Violence Prevention 1220-100-000 $ 67,000 d. City Attorney 1410-100-000 $ 93,000
e. Economic Development 6000-100-000 $107,000
$429,000
Increase Expenditure Budget:

Other Administration $429,000

3. Authorize a $925,000 budget appropriation from the FY 2022-23 ending balance to the General Fund to reimburse the Community Development Block Grant (CDBG) fund for costs associated with the Oak Park Ice Arena improvements in FY 2023-24. Staff originally expended CDBG funding on these improvements, but the United States Department of Housing and Urban Development (HUD) later deemed the project ineligible for that funding, resulting in $925,000 in ineligible costs that will need to be reimbursed by the General Fund over the next two years.

However, the $925,000 will return to the City’s account with HUD to be drawn down for future eligible projects.

City of Stockton Printed on 1/19/2024Page 15 of 16
powered by Legistar™
510
File #: 24-0048, Version: 1

5. Authorize a FY 2022-23 appropriation of $21,450,000 from the General Fund balance for Council priority projects identified in the resolution including restoration of Fire Station 7, parks maintenance, and the Victory Park Pool.

Priority 1 Reserves
Working Capital $48,300,000
Known Contingency $68,000,000
Priority 2 Reserves
Risk-Based Reserves $10,800,000

7. Authorize a FY 2022-23 budget amendment increasing expenditure and revenue appropriations in the Downtown Marina Fund.

Division/Fund Amount
Increase Revenue Budget
Downtown Marina 6050-640-000 $ 8,500
Increase Expenditure Budget
Downtown Marina 6050-640-000 $ 8,500
Attachment A - FY 2022-23 General Fund Year-End Budget Update Attachment B - FY 2022-23 General Fund Year-End Revenue Summary Attachment C - FY 2022-23 Recommended Projects for Funding Consideration Attachment D - FY 2022-23 Year-End Report for Other Major Funds City of Stockton Printed on 1/19/2024Page 16 of 16
powered by Legistar™
511
City of Stockton ATTACHMENT A
FY 2022-23 Budget Update - Year End
General Fund - 100 by Program (Budgetary Basis)
Year-End Year-End Year-End
Approved Projection Actuals Year End Projection
Budget as of 3rd Quarte r as of 4th Quarter Projection vs. Budget % Beginning Available Balance 47,735,042$ 47,735,042 $ 47,966,763 $ 47,735,042 $ Release of Funds* 58,254,597 58,254,597 58,254,597 58,254,597 105,989,639 105,989,639 106,221,360 105,989,639 Revenues
General Tax Revenues 217,851,365 231,911,723 243,478,981 243,478,981 25,627,616 11.8% Measure A/B Sales Tax 42,080,000 49,703,488 49,703,488 49,703,488 7,623,488 18.1% Program Revenues 16,695,254 18,647,041 18,900,352 18,900,352 2,205,098 13.2% Interfund Reimbursements 8,960,158 9,513,663 9,676,928 9,676,928 716,770 8.0% 285,586,777 309,775,915 321,759,749 321,759,749 36,172,972 12.7% Expenditures
Programs
Police 156,542,480 139,599,808 140,935,908 142,693,394 13,849,086 8.8% Fire 57,578,388 54,096,473 53,535,750 54,585,349 2,993,039 5.2% Public Works 19,854,657 19,199,261 18,241,837 19,854,657 - - Economic Development 4,305,517 3,820,757 1,403,316 3,898,145 407,372 9.5% Office of Violence Prevention 2,244,915 1,949,424 1,936,562 1,953,651 291,265 13.0% 240,525,957 218,665,723 216,053,373 222,985,195 17,540,761 7.3% Program Support for Other Funds
Library 4,109,000 4,109,000 4,109,000 4,109,000 - - Recreation 5,628,000 5,628,000 3,542,000 5,628,000 - - Entertainment Venues 3,318,000 3,318,000 3,318,000 3,318,000 - - Downtown Marina 262,000 262,000 262,000 262,000 - -
Capital Improvement 48,244,791 48,105,292 14,576,488 48,244,791 - - Golf Course 110,000 110,000 110,000 110,000 - -
Grant Match 100,000 - - - 100,000 100.0%
Development Services 800,000 800,000 800,000 800,000 - - Retirement Trust 10,000,000 10,000,000 10,000,000 10,000,000 - - Fire Emergency Communications 720,000 715,632 715,362 715,362 4,638 0.6% Radio ISF 5,134,542 5,134,542 5,134,542 5,134,542 - - 78,426,333 78,182,466 42,567,392 78,321,695 104,638 0.1% Administration
City Council 1,124,328 1,104,304 977,244 1,106,421 17,907 1.6% City Manager 2,873,738 2,490,586 2,502,467 2,512,768 360,971 12.6% City Attorney 1,352,865 1,073,761 1,085,534 1,089,442 263,423 19.5% City Clerk 1,214,561 1,096,785 1,095,566 1,135,939 78,622 6.5% City Auditor 821,828 821,828 399,892 807,357 14,471 1.8% Administrative Services 6,385,393 5,693,066 5,637,920 5,770,580 614,813 9.6% Human Resources 4,223,219 3,794,539 2,383,769 3,754,859 468,360 11.1% Tax Collection 2,658,848 2,634,479 2,437,657 2,608,132 50,716 1.9% Elections 650,000 650,000 87,883 87,883 562,117 86.5%
Other Administration (533,252) (319,367) (429,312) (104,649) (428,603) 80.4% General Legal 500,000 309,760 293,552 293,552 206,448 41.3% 21,271,528 19,349,740 16,472,173 19,062,282 2,209,246 10.4% Debt Service 8,422,050 8,422,050 8,422,050 8,422,050 - - Contingency 2,000,000 2,000,000 - - 2,000,000 100.0% Total Expenditures 350,645,868 326,619,979 283,514,988 328,791,223 21,854,645 6.2% Net Annual Activity (65,059,091) (16,844,064) 38,244,761 (7,031,474) (58,027,617) Proj. Ending Available Balance 40, 930,548$ 89,145,575 $ 144,466,121 $ 98,958,165 $ 58,027,617 $ Fund Balance as % of Expenses 12% 27% 51% 30%
512
City of Stockton ATTACHMENT B
FY 2022-23 Year-End Unaudited Revenues
General Fund - 100
Approved Projection as of Year-End Year-end Proj. % Year-end vs Budget 3rd Quarter Projection vs. Budget vs. Bdgt 3rd Qtr Proj.

General Tax Revenues
Sales Tax
Point of Sale 66,824,000$ 72,699,495$ 73,526,747$ 6,702,747$ 10% 827,252$ Measure A Transaction Tax 42,080,000 49,703,488 49,703,488 7,623,488 18% - Proposition 172 3,109,000 3,427,403 3,427,403 318,403 10% - 112,013,000 125,830,385 126,657,638 14,644,638 13% 827,252 Property Taxes
Property Taxes 41,490,000 42,577,881 42,577,881 1,087,881 3% - In-Lieu of Motor Vehicle Fees 29,165,000 29,343,468 29,343,468 178,468 1% - 70,655,000 71,921,349 71,921,349 1,266,349 2% - Utility Users Tax
Water 5,172,176 4,995,711 4,938,175 (234,001) -5% (57,536) Electric & Gas 27,075,000 29,672,403 31,066,501 3,991,501 15% 1,394,098 Cable 2,427,000 2,462,666 2,463,385 36,385 1% 718
Telecommunications 4,057,000 4,026,213 3,977,040 (79,960) -2% (49,173) 38,731,176 41,156,993 42,445,100 3,713,924 10% 1,288,107 Franchise Tax
Electric & Gas 2,558,000 2,980,414 2,980,414 422,414 17% - Cable/Video 2,009,000 1,983,706 2,016,302 7,302 0% 32,596 Waste Haulers 12,556,000 13,568,464 13,939,134 1,383,134 11% 370,670 Other 1,630 1,730 1,730 100 6% -
17,124,630 18,534,315 18,937,580 1,812,950 11% 403,265 Business License Tax 14,350,000 16,182,206 21,992,189 7,642,189 53% 5,809,983 Hotel/Motel Tax 3,211,540 3,273,374 3,432,978 221,438 7% 159,605 Document Transfer Tax 1,200,000 1,028,481 1,028,481 (171,519) -14% - Motor Vehicle License 200,000 331,550 331,550 131,550 66% - Investment Proceeds 2,446,019 3,356,560 6,435,605 3,989,586 163% 3,079,045 21,407,559 24,172,169 33,220,802 11,813,243 55% 9,048,633 Program Revenues
Fire Contracts 4,932,287 5,388,456 5,388,456 456,169 9% - Code Enforcement 4,009,457 3,938,104 3,930,951 (78,506) -2% (7,153) Charges for Services 2,981,472 2,619,056 2,988,104 6,632 0% 369,048 Fines & Forfeitures 548,863 400,955 400,955 (147,908) -27% (0) Revenues from Other Agencies 3,984,115 5,542,250 5,542,250 1,558,135 39% - Licenses & Permits 351,331 622,319 296,182 (55,149) -16% (326,136) Sale of Fixed Assets 60,000 240,704 44,165 (15,835) -26% (196,539) Contributed Capital - 61,876 61,876 61,876 -
Misc. Other Revenues (172,271) (166,679) 247,413 419,684 -244% 414,092 16,695,254 18,647,041 18,900,352 2,205,098 13% 253,311 Interfund Reimbursements
Indirect Cost Allocation 4,956,141 5,312,930 5,312,930 356,789 7% - Refunds & Reimbursements 943,350 1,216,477 1,211,310 267,960 28% (5,167) Rents/Leases/Concessions 3,060,667 2,984,256 3,152,688 92,021 3% 168,432 8,960,158 9,513,663 9,676,928 716,770 8% 163,265
Total Revenues 285,586,777$ 309,775,915$ 321,759,749$ 36,172,972$ 13% 11,983,834$ % Change from Prior Year 8.2%
FY 2022-23
513

PROGRAMS & PROJECTS FOR FUNDING CONSIDERATION ATTACHMENT C Fiscal Year 2022-23 Year-End Funds
Name Description Dept. Request
Recommended Projects
1 Fire Truck No. 7 Restoration
Costs
The proposed restoration of Truck 7 will bring the number of truck companies in operation to pre-bankruptcy levels. Measure W and grant funds will offset costs for the first few years of operations.

This would fund the General Fund share for the same timeframe (FY 2024-25 to 2026-27).

Fire 5,000,000
2 Fire Truck No. 7 One-Time
Equipment Costs
Firefighting equipment, tools, and supplies to outfit and restore operations of Truck 7. Fire 300,000
3 Employee Incentive Program
The employee incentive program consisting of a $5,000 bonus for sworn full-time employees and $2,500 for non-sworn full-time employees is proposed to improve employee retention.

Citywide 6,000,000
4 Parks Maintenance Restoration of
Services (three years)
Increase services to add: turf aeration, turf fertilization, weed control, and increase mowing in March and October. Public Works 1,300,000 5 Park Maintenance for FY 2023-24
(ongoing)
Six month inflationary increase in contracted costs for maintenance of City parks. Public Works 600,000
6 Victory Park Pool Address shortfall for reconstruction of Victory Park Pool. CSD / PW 3,000,000 7 El Concilio Community Center
Repairs
Provide funding to El Concilio for the upgrade and renovation of their community center facility. External 250,000
Subtotal 16,450,000
1 of 2
514
PROGRAMS & PROJECTS FOR FUNDING CONSIDERATION Attachment C Fiscal Year 2022-23 Year-End Funds
Name Description Dept. Request
Other Potential Uses of Council Priority Project Funds ($5,000,000) 8 Fire Computer Aided Dispatch
(CAD) System Upgrade/Patch
Professional programming services to rehost the current Fire CAD system from the old Windows operating system and SQL server versions to the new supported server versions.

Fire 55,000
9 Fire Apparatus Gas Monitoring
Equipment
Equip front line apparatus and Battalion Chiefs with a gas monitoring device to detect and verify the presence of gas in their surroundings that pose a danger and/or is unsafe to human health.

Fire 45,000
10 Generator Replacements at Fire
Stations
Replace generators at two (2) fire stations. Generators are beyond their useful life. If the equipment fails, the stations will lose backup power, potentially disrupting emergency service delivery.

Fire 500,000
11 Telecommunications Network
Upgrade at Fire Stations
Replace T1 communication lines from each fire station to the dispatch center. Lines are beyond their useful life and updating the techonology will result in more continuous and faster access.

Fire 705,000
12 Oak Park Senior Center Parking
Lot
This is a current Discretionary Project that has a shortfall.

Additional funding would allow the parking lot to be constructed with all necessary improvements including drainage, traffic calming, and aesthetics.

Public Works 600,000
13 Neighborhood Traffic Calming
Project
Contracted services to address high priority items in the backlog of 84 locations within the Traffic Calming Program. Public Works 1,775,000 14 Playground at Anderson Park Install a new playground at Anderson Park. Public Works 300,000 15 Playground at Loch Lomond Park Install a new playground at Loch Lomond Park replacing a structure that was burned. Public Works 300,000 16 Van Buskirk Tennis Court Lighting
Replacement
This project would replace the stolen wire, controls, and lights at VB tennis courts. Public Works 185,000 17 Van Buskirk Park Playground
Replacement Playground area enchancements. Public Works 375,000 18 Williams Brotherhood Handball
Court Lighting Replacement
This project would replace the stolen wire, controls, and lights at Williams Brotherhood handball courts. Public Works 80,000 19 Oak Park Magpie Fencing
Replacement
Remove and replace damaged ornamental fencing surrounding picnic area. Public Works 80,000 Subtotal (Proposed Projects at $5,000,000 Funding Level) 5,000,000 Total Identified Projects 21,450,000
2 of 2
515

ATTACHMENT D
City of Stockton
FY 2022-23 Fourth Quarter
Financial Report for Other Major Funds
Measure A (Breakout of General Fund) Year to % of
Budget Date Actual Budget
Revenues 42,080,000 49,703,488 118%
Marshall Plan Expenditures
Office of Violence Prevention 1,311,445 1,105,064 84% Police 32,732,081 30,672,917 94%
Capital Projects 277,254 77,254 28%
Total Expenses 34,320,780 31,855,235 93%
Funds Combined with General Fund in ACFR
Library 100-120 Fund Year to % of Emergency Dispatch 100-130 Fund Year to % of Budget Date Actual Budget Budget Date Actual Budget
Beginning Balance 3,493,650 3,493,650 Beginning Balance 24,893 24,893 Revenues 8,457,640 8,365,537 99% Revenues 5,277,132 5,277,558 100% General Fund Transfer 4,109,000 4,109,000 100% Expenditures 5,238,006 4,407,716 84% 12,566,640 12,474,537 99%
Expenditures Ending Balance 64,020 894,735
Administration 1,674,462 1,621,874 97%
Operations 1,844,211 1,566,908 85% Recreation 100-125 Fund Year to % of County Branches 7,438,773 5,820,873 78% Budget Date Actual Budget City Branches 3,572,583 3,357,841 94% Beginning Balance 1,095,521 1,095,521 Total Expenses 14,530,029 12,367,496 85%
Revenues 1,773,634 1,278,922 72%
Ending Balance 1,530,261 3,600,691 General Fund Transfer 5,628,000 3,542,000 63% 7,401,634 4,820,922 65%
Entertainment Venues 100-145 Fund Year to % of Expenditures Budget Date Actual Budget Administration 3,299,048 955,646 29% Beginning Balance 1,999,301 1,999,301 Recreation Programs 4,164,779 3,495,727 84% Total Expenses 7,463,827 4,451,373 60%
Revenues 3,435,339 5,266,118 153%
General Fund Transfer 3,318,000 3,318,000 100% Ending Balance 1,033,328 1,465,070 Other Fund Transfer 2,300,000 -
9,053,339 8,584,118 95% Boat Launch 100-140 Fund Year to % of Expenditures Budget Date Actual Budget
Administration 430,171 188,851 44% Beginning Balance 973,009 973,009 Venue Operations 7,894,371 7,978,283 101%
Maintenance & Equip./Capital 2,400,000 379,255 16% Revenues 355,147 355,158 100% Total Expenses 10,724,542 8,546,388 80% Expenditures Operations & Maintenance 203,541 169,498 83% Ending Balance 328,098 2,037,031 Capital Projects 500,000 - 0% Total Expenses 703,541 169,498
Ending Balance 1,328,156 1,328,167
516
Attachment D
City of Stockton
FY 2022-23 Fourth Quarter
Financial Report for Other Major Funds
Special Revenue Funds
Measure W 200 Fund Year to % of Development Services 220 Fund Year to % of Budget Date Actual Budget Budget Date Actual Budget
Beginning Balance 9,973,679 9,973,679 Beginning Balance 32,699,463 32,699,463 Revenues 14,000,000 16,748,229 120% Revenues 19,128,661 22,310,776 117% Expenditures General Fund Transfer 800,000 800,000 100% Police 7,119,540 6,985,570 98% 19,928,661 23,110,776 116% Fire 7,096,578 6,576,777 93% Expenditures
Total Expenses 14,216,118 13,562,347 95% Community Development 15,818,946 12,289,347 78% Fire 3,889,102 3,559,474 92%
Ending Balance 9,757,561 13,159,561 Capital 5,700,000 ‐ 0% Total Expenses 25,408,048 15,848,821 62%
Strong Communities (Measure M) 210 Fund Year to % of
Budget Date Actual Budget Ending Balance 27,220,076 39,961,418 Beginning Balance 32,549,515 32,549,515
Revenues 14,027,000 17,157,690 122%
Expenditures
Library Programs 4,471,033 2,843,994 64%
Recreation Programs 6,374,341 3,759,755 59%
Administration 264,350 1,136,902 430%
Capital Projects 18,759,615 6,695,204 36%
Total Expenses 29,869,339 14,435,855 48%
Ending Balance 16,707,176 35,271,350
Enterprise Funds
Water Utility 600 Fund Year to % of Parking Authority 630 Fund Year to % of Working Capital Budget Date Actual Budget Working Capital Budget Date Actual Budget Revenues 61,260,307 70,165,386 115% Revenues 6,979,215 7,660,731 110% Expenditures Expenditures
Administration 6,035,125 4,411,372 73% Administration 1,718,846 626,299 36% Operations & Maintenance 37,359,641 30,092,268 81% Parking Operations 2,744,118 2,852,958 104% Debt Service 14,308,450 8,029,885 56% Parking Enforcement 699,629 680,962 97% Capital 44,863,171 1,910,819 4% Debt Service 2,320,724 1,306,515 56% Total Expenses 102,566,387 44,444,344 43% Facility Improvements 3,417,663 1,170,685 34% Total Expenses 10,900,980 6,637,419 61%
Wastewater Utility 610 Funds x Year to % of
Working Capital Budget Date Actual Budget Downtown Marina 640 Fund Year to % of Revenues 125,703,968 89,623,937 71% Working Capital Budget Date Actual Budget Expenditures Revenues 382,275 392,767 103% Administration 9,459,232 8,574,953 91% General Fund Transfer 262,000 262,000 100% Operations & Maintenance 59,879,067 47,155,755 79% 644,275 654,767 102% Debt Service 7,792,000 3,307,350 42% Expenditures Capital 183,235,031 40,646,695 22% Administration 17,800 6,365 36% Total Expenses 260,365,330 99,684,753 38% Operations 642,598 662,171 103% Capital - - 0%
Stormwater Utility 620 Funds Year to % of Total Expenses 660,398 668,536 101% Working Capital Budget Date Actual Budget
Revenues 5,705,680 7,607,058 133% Golf 650 Fund Year to % of Expenditures Working Capital Budget Date Actual Budget
Administration 2,598,646 2,410,948 93% Revenues - 22,759 0% Operations & Maintenance 4,361,078 4,103,904 94% General Fund Transfer 110,000 110,000 100% Capital 2,994,720 119,883 4% 110,000 132,759 121% Total Expenses 9,954,444 6,634,735 67% Expenditures Administration 51,980 34,223 66%
Swenson Golf Course 62,500 96,692 155% Van Buskirk Golf Course 67,517 48,202 71% Total Expenses 181,997 179,117 98%
517
Attachment D
City of Stockton
FY 2022-23 Fourth Quarter
Financial Report for Other Major Funds
Internal Service Funds
PW Fleet Services 500 Fund Year End % of Retirement ISF 550 Fund Year End % of Budget Actual Budget Budget Actual Budget
Beginning Balance 16,884,766 16,884,766 Beginning Balance 7,060,874 7,060,874 Revenues 14,132,410 15,079,946 107% Revenues 98,723,968 94,579,735 96% Expenditures Expenditures 88,019,649 78,286,580 89% Administration 1,966,498 1,366,670 69%
Operations & Maintenance 6,212,708 5,552,938 89% Ending Balance 17,765,193 23,354,029 Replacements 4,399,217 1,633,743 37%
Fuel 2,415,532 2,453,201 102% Other Benefits 560 Fund Year End % of Debt Service 487,716 30,172 6% Budget Actual Budget Capital - - Beginning Balance 872,698 872,698 15,481,671 11,036,724 71%
Revenues 2,811,235 2,551,787 91%
Ending Balance 15,535,505 20,927,988 Expenditures 2,912,270 2,001,743 69% Health Benefit ISF 540 Fund Year End % of Ending Balance 771,663 1,422,742 Budget Actual Budget
Beginning Balance 5,488,413 5,488,413 General Liability Ins. ISF 520 Fund Year End % of Budget Actual Budget
Revenues 25,571,143 21,453,818 84% Beginning Balance 8,751,755 8,751,755 Expenditures 27,085,179 21,125,691 78%
Revenues 12,996,650 13,075,182 101%
Ending Balance 3,974,377 5,816,540 Expenditures 14,677,868 13,683,074 93% Workers Comp ISF 530 Fund Year End % of Ending Balance 7,070,537 8,143,863 Budget Actual Budget
Beginning Balance 2,840,987 2,840,987 IT Communications 510-515 Fund Year End % of Budget Actual Budget
Revenues 17,858,264 19,251,350 108% Beginning Balance 6,240,936 6,240,936 Expenditures 15,517,713 15,427,817 99%
Revenues 8,298,994 8,343,344 101%
Ending Balance 5,181,538 6,664,520 Expenditures 9,614,561 2,570,508 27% IT Technology 510-511 Fund Year End % of Ending Balance 4,925,369 12,013,772 Budget Actual Budget
Beginning Balance 29,974,462 29,974,462
Revenues 14,808,148 14,615,726 99%
Expenditures
Administration 1,846,343 1,449,055 78%
Operations 10,243,898 8,262,904 81%
Governance 13,806,795 4,459,562 32%
Capital 5,068,570 2,373,001 47%
30,965,606 16,544,522 53%
Ending Balance 13,817,004 28,045,666
518
Resolution No.

STOCKTON CITY COUNCIL

RESOLUTION ACCEPTING THE FISCAL YEAR 2022-23 FOURTH QUARTER

BUDGET STATUS UPDATE REPORT, APPROVING THE RECOMMENDED AMENDMENTS TO THE FISCAL YEAR 2022-23 AND FISCAL YEAR 202 3-24

ANNUAL BUDGETS, AND AUTHORIZE THE ALLOCATION OF AVAILABLE FUND

BALANCE TO RESERVES

Fiscal Sustainability is one of the City Council’s goals; and

City Council adopted the Fiscal Year (FY) 20 22-23 Annual Budget on June 21, 2022, following a duly noticed budget study session and a public hearing; and

By the staff report accompanying this Resolution, incorporated into this Resolution by this reference (Staff Report), the Council has been provided with additional information upon which the actions set forth in this Resolution are based; now, therefore,

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

1) Accept this budget status report on the unaudited results of the fourth quarter of FY 2022-23.

2) Allocate the General Fund Vacancy Savings budget reduction for FY 2022-23 from Other Administration (Non -departmental) category to the following departments:

Reduce Expenditure Budget:

Department Amount
a) City Clerk $ 37,000
b) City Manager $125,000
c) Office of Violence Prevention $ 67,000
d) City Attorney $ 93,000
e) Economic Development $107,000

Increase Expenditure Budget:

Other Administration (Non-departmental) $429,000

3) Authorize a reserve for future appropriation of $925,000 from FY 2022 -23 ending balance in the General Fund to reimburse the United States 519
Department of Housing and Urban Development for costs associated with Oak Park Ice Arena improvements.

4) Authorize a reserve for future appropriation of $1,469,000 from FY 2022 -23 available funds for the estimated increase in the Assured Guaranty Settlement contingent payments for a total reserve of $3,600,000.

5) Authorize a FY 2022 -23 General Fund appropriation of $ 21,450,000 for Council priority projects including restoration of Fire Station 7, parks maintenance, and the Victory Park Pool , as displayed in Table 5 of the staff report.

6) Allocate available fund balance to reserve categories consistent with the Council Reserve and Fund Balance Policy – General Fund Policy. The net increase in fund balance will be added to the current reserve levels, as displayed in Table 4 of the staff report, to achieve the total reserve amounts as follows:

Priority 1 Reserves
Working Capital $48,300,000
Known Contingency $68,000,000
Priority 2 Reserves
Risk-Based Reserves $10,800,000

7) Authorize a FY 2022 -23 budget amendment increasing expenditure and revenue appropriations in the Downtown Marina Fund by $8,500.

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

PASSED, APPROVED, and ADOPTED ___January 23, 2024__ .

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

ELIZA R. GARZA, CMC
City Clerk of the City of Stockton
520
FY 2022-23
Year-End
Budget Status
Update
January 23, 2024
Item 15.1
521
General Fund – Revenues
(Attachment B)
General Fund – Revenues
(Attachment B)
Budgeted Revenues $ 285.6 million
3rd Quarter Projection $ 309.8 million
Actual Revenues (unaudited)$ 321.8 million
$12 million increase compared to 3rd quarter report:
Sales Tax +$ 827,000
Electric & Gas Utility Users Tax +$ 1.4 million
Business License Tax +$ 5.8 million
Investment Proceeds +$ 3.1 million
Budgeted Revenues $ 285.6 million
3rd Quarter Projection $ 309.8 million
Actual Revenues (unaudited)$ 321.8 million
$12 million increase compared to 3rd quarter report:
Sales Tax +$ 827,000
Electric & Gas Utility Users Tax +$ 1.4 million
Business License Tax +$ 5.8 million
Investment Proceeds +$ 3.1 million
522
General Fund - Revenues
523
General Fund –
Revenue Trends
2015 growth
due to
Measure A
Revenues
Blue bars =
normal
growth
Green bars
= Pandemic
growth
524
General Fund –
Expenditures (Attachment A)
General Fund –
Expenditures
(Attachment A)
Budgeted Expenditures $ 350.6 million
3rd Quarter Projection $ 326.6 million
Actual Expenditures $ 328.8 million
Increase compared to Q3 Report +$2.2 million
Unanticipated Vacancy Savings -$20.5 million
Budgeted Expenditures $ 350.6 million
3rd Quarter Projection $ 326.6 million
Actual Expenditures $ 328.8 million
Increase compared to Q3 Report +$2.2 million
Unanticipated Vacancy Savings -$20.5 million
525
General Fund
Expenditures
(Attachment A)
General Fund
Expenditures
(Attachment A)
526
General Fund
Budget Variance (Attachment A)
General Fund
Budget Variance
(Attachment A)
Revenues
$36.17 Million
• 12.7% more than budget
Expenditures
$21.85 Million
• 6.2% less than budget
________________
Variance from Budget
$58.02 Million
Revenues
$36.17 Million
• 12.7% more than budget
Expenditures
$21.85 Million
• 6.2% less than budget
________________
Variance from Budget
$58.02 Million
527
New $ Cumulative
Frontload COLA $ 3.4
Lump Sum Payments 4.3
Enhanced Services 1x 6.6
Ongoing 6.0
Contingent Payment (result of higher revenues) 1.5 3.6 HUD Finding Oak Park Ice Rink 0.9
Working Capital 16.67% 1.1 48.3 Known Contingency 12.7 68.0
Total 36.5
(58.0)
$ 21.5 Balance for Council Discussion
Uses of $58 Million Budget Variance
(Dollars in Millions)
Labor Negotiations
FY 2023-24 Budget
Adds
Net Budget Variance
Formula Reserves
Commitments
528
General Fund Reserve
Policy and Targets
General Fund Reserve
Policy and Targets
Reserve & Fund Balance Policy – General Fund
Targets set in June 2023
Reserve & Fund Balance Policy – General Fund
Targets set in June 2023
Recommended
Funding
Reserve TargetsReserve Categories
$48.3 million$48.3 millionWorking Capital
(16.67%)
$68.0 million$74.0 millionKnown Contingency
$10.8 million$80.8 millionRisk-Based
$127.1 million$203.1 millionTotal
529
Recommendations for $21.5 Million
(Dollars in thousands)
Recommendations for $21.5 Million
(Dollars in thousands)
$ 5,000Fire Truck No. 7 Restoration Costs (FY 2025 to 2027) 300Fire Truck No. 7 One-time Equipment Costs
6,000Employee Incentive Program
600Parks Maintenance (FY 2023-24 only)
1,300Parks Maintenance Restoration of Services (3 years) 3,000Victory Park Pool
250El Concilio Community Center Repairs
$ 16,450Subtotal
5,000Council Priority Project Funds
$ 21,450Total
530
Potential Uses of Council Priority
Project Funds (Dollars in thousands)
Potential Uses of Council Priority
Project Funds
(Dollars in thousands)
$ 55Fire Computer Aided Dispatch (CAD) System Upgrade/Patch 45Fire Apparatus Gas Monitoring Equipment
500Generator Replacements at Fire Stations
705Telecommunications Network Upgrade at Fire Stations
600Oak Park Senior Center Parking Lot
1,775Neighborhood Traffic Calming Project
300Playground at Anderson Park
300Playground at Loch Lomond Park
185Van Buskirk Tennis Court Lighting Replacement
375Van Buskirk Park Playground Replacement
80Williams Brotherhood Handball Court Lighting Replacement 80Oak Park Magpie Fencing Replacement
$ 5,000Total
531
Long-Range Financial Plan
(Updated with Year-End)
Long-Range Financial Plan
(Updated with Year-End)
532
Long-Range Financial Plan
(With Fire Truck No. 7)
Long-Range Financial Plan
(With Fire Truck No. 7)
533
Other Recommended
Budget Actions
Other Recommended
Budget Actions
• Allocate $429,000 in vacancy savings from other
administration to:
• City Clerk $ 37,000
• City Manager $ 125,000
• Office of Violence Prevention $ 67,000
• City Attorney $ 93,000
• Economic Development $ 107,000
• Authorize Budget Amendment to cover overage
• Downtown Marina Fund by $8,500
• Reserve $925,000 for a reimbursement to US Dept. of
Housing & Urban Development (HUD)
• Allocate $429,000 in vacancy savings from other
administration to:
• City Clerk $ 37,000
• City Manager $ 125,000
• Office of Violence Prevention $ 67,000
• City Attorney $ 93,000
• Economic Development $ 107,000
• Authorize Budget Amendment to cover overage
• Downtown Marina Fund by $8,500
• Reserve $925,000 for a reimbursement to US Dept. of
Housing & Urban Development (HUD)
534
FY 2022-23 4th Quarter Report
Recommendation Summary
FY 2022-23 4th Quarter Report
Recommendation Summary
• Accept FY 2022-23 budget status report
• Authorize two FY 2022-23 Budget Amendments:
• Downtown Marina Fund
• Allocate General Fund vacancy savings budget
• Authorize reserve for:
• Reimbursement to US Dept. of Housing & Urban Development • Contingent payment
• Authorize FY 2022-23 General Fund appropriation of
$21.5 million for council priority projects
• Allocate General Fund Balance to reserves $127.1 million • Accept FY 2022-23 budget status report
• Authorize two FY 2022-23 Budget Amendments:
• Downtown Marina Fund
• Allocate General Fund vacancy savings budget
• Authorize reserve for:
• Reimbursement to US Dept. of Housing & Urban Development • Contingent payment
• Authorize FY 2022-23 General Fund appropriation of
$21.5 million for council priority projects
• Allocate General Fund Balance to reserves $127.1 million 535

City Council and Concurrent AuthoritiesJanuary 23, 2024

City Council and Concurrent Authorities
January 23, 2024