Agenda packet — City Council and Concurrent Authorities, July 9, 2024 (part 4 of 8)

OR ANY POLITICAL SUBDIVISION THEREOF (OTHER THAN THE AUTHORITY), AND SHALL BE PAYABLE SOLELY FROM THE REVENUES PLEDGED THEREFOR PURSUANT TO THE 2024 INDENTURE. THE OBLIGATION OF THE CITY TO MAKE 2024 INSTALLMENT PAYMENTS IS A SPECIAL OBLIGATION PAYABLE SOLELY FROM THE NET SYSTEM REVENUES AS PROVIDED IN THE 2024 CONTRACT. NEITHER

THE FAITH AND CREDIT NOR THE TAXING POWER OF THE CITY, THE STATE OF CALIFORNIA OR ANY POLITICAL SUBDIVISION THEREOF (INCLUDING THE AUTHORITY) IS PLEDGED TO THE PAYMENT OF THE PRINCIPAL OF OR INTEREST ON THE 2024 BONDS OR THE 2024 INSTALLMENT PAYMENTS. THE AUTHORITY HAS NO TAXING POWER. THE ISSUANCE OF THE 2024 BONDS SHALL NOT

DIRECTLY OR INDIRECTLY OBLIGATE THE AUTHORITY, THE CITY, THE STATE OF CALIFORNIA OR ANY POLITICAL SUBDIVISION

MATURITY SCHEDULE
(See Inside Cover)
This cover page contains certain information for general reference only. It is not a summary of this issue. Investors must read the entire Official Statement to obtain information essential to the making of an informed investment decision.

The 2024 Bonds are offered when, as and if issued, subject to the approval as to their validity by Hawkins Delafield & Wood LLP, San Francisco, California, Bond Counsel, and certain other conditions. Hawkins Delafield & Wood LLP, San Francisco, California, is serving as Disclosure Counsel to the City. Certain legal matters will be passed on for the Authority and the City by the City Attorney, [for the Insurer by its general counsel,] and for the Underwriters by Kutak Rock LLP, Irvine, California. It is anticipated that the 2024 Bonds will be available for delivery through the facilities of DTC on or about [September __, 2024].

Hilltop Securities Inc. Oppenheimer & Co. Inc.

Dated: [August] __, 2024
EXHIBIT 5 736
________________________________
∗ Preliminary, subject to change.

EXHIBIT 5 737

MATURITY SCHEDULE
$[PAR AMOUNT]∗

STOCKTON PUBLIC FINANCING AUTHORITY
WASTEWATER REVENUE REFUNDING BONDS, SERIES 2024
(WASTEWATER REFUNDING PROJECT)
Maturity
(September 1) Principal Amount Interest Rate Price/Yield(1) CUSIP No.†
(Base: ______)
2025
2026
2027
2028
2029
∗ Preliminary, subject to change.
(1) Reoffering prices/yields furnished by the Underwriters. The City and the Authority take no responsibility for the accuracy thereof.
† CUSIP® is a registered trademark of the American Bankers Association. CUSIP Global Services (CGS) is managed on behalf of the American Bankers Association by FactSet Research Systems Inc. Copyright© 2024 CUSIP Global Services. All rights reserved. CUSIP® data herein is provided by CUSIP Global Services. This data is not intended to create a database and does not serve in any way as a substitute for the CGS database. CUSIP® numbers are provided for convenience of reference only.

None of the City, the Authority, the Underwriters, or their agents or counsel assume responsibility for the accuracy of such numbers.

EXHIBIT 5 738
No dealer, broker, salesperson or other person has been authorized by the Authority, the City or the Underwriters (as defined herein) to give any information or to make any representations other than as contained in this Official Statement, and if given or made, such other information or representations must not be relied upon as having been authorized by any of the foregoing.

This Official Statement does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the 2024 Bonds by any person, in any jurisdiction in which it is unlawful for such person to make such offer, solicitation or sale.

This Official Statement is not to be construed as a contract with the purchasers of the 2024 Bonds. Statements contained in this Official Statement which involve estimates, forecasts or matters of opinion, whether or not expressly so described herein, are intended solely as such and are not to be construed as representations of fact.

The information set forth herein has been obtained from sources which are believed to be reliable, but such information is neither guaranteed as to accuracy or completeness, nor shall it be construed as a representation of such by the Authority, the City or the Underwriters. The information and expressions of opinion stated herein are subject to change without notice; and neither the delivery of this Official Statement nor any sale made hereunder shall, under any circumstances, create any implication that there has been no change in the affairs of the City or in the condition of the Wastewater System, since the date hereof.

The summaries and references to the 2024 Indenture, the 2024 Contract, the Act (as defined herein) and to other statutes and documents referred to herein do not purport to be comprehensive or definitive and are qualified in their entireties by reference to each such statute and document. This Official Statement including any amendment or supplement hereto is intended to be deposited with one or more information repositories.

The Underwriters have provided the following sentence for inclusion in this official statement: the Underwriters have reviewed the information in this Official Statement in accordance with, and as part of, their responsibilities to investors under the federal securities laws as applied to the facts and circumstances of this transaction, but the Underwriters do not guarantee the accuracy or completeness of such information.

IN CONNECTION WITH THIS OFFERING, THE UNDERWRITERS MAY OVERALLOT OR EFFECT TRANSACTIONS WHICH STABILIZE OR MAINTAIN THE MARKET PRICE OF THE 2024 BONDS AT A LEVEL ABOVE THAT WHICH MIGHT OTHERWISE PREVAIL IN THE OPEN MARKET. SUCH STABILIZING, IF COMMENCED, MAY BE DISCONTINUED AT ANY TIME. THE UNDERWRITERS MAY OFFER AND SELL THE 2024 BONDS TO CERTAIN

DEALERS AND OTHERS AT PRICES LOWER THAN THE PUBLIC OFFERING PRICES SET FORTH ON THE COVER

PAGE HEREOF AND SAID PUBLIC OFFERING PRICES MAY BE CHANGED FROM TIME TO TIME BY THE UNDERWRITERS.

THE 2024 BONDS HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, IN RELIANCE UPON AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS CONTAINED IN SUCH ACT. THE 2024 BONDS HAVE NOT BEEN REGISTERED OR QUALIFIED UNDER THE SECURITIES LAWS OF ANY STATE.

The City maintains a website and social media accounts. Unless specifically indicated herein, the information presented on such website and social media accounts is not incorporated by reference as part of this Official Statement and should not be relied upon in making investment decisions with respect to the 2024 Bonds. [[INSURANCE PROVIDER] makes no representation regarding the 2024 Bonds or the advisability of investing in the 2024 Bonds. In addition, [INSURANCE PROVIDER] has not independently verified, makes no representation regarding, and does not accept any responsibility for the accuracy or completeness of this Official Statement or any information or disclosure contained herein, or omitted herefrom, other than with respect to the accuracy of the information regarding [INSURANCE PROVIDER], supplied by [INSURANCE PROVIDER] and presented under the heading “BOND INSURANCE” and EXHIBIT G – “SPECIMEN MUNICIPAL BOND INSURANCE POLICY.”]
Any statement involving any forecast or matter of opinion or estimates, whether or not expressly stated, is intended solely as such and not as a representation of fact. Certain statements included or incorporated by reference in this Official Statement constitute “forward looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995, Section 21E of the United States Securities Exchange Act of 1934, as amended, and Section 27A of the United States Securities Act of 1933, as amended (the “Securities Act”). Such forward-looking statements are generally identified by use of the words “plan,” “project,” “expect,” “estimate,” “budget” or other similar words. Such forward looking statements refer to the achievement of certain results or other expectations or performance which involve known and unknown risks, uncertainties and other factors.

These risks, uncertainties and other factors may cause actual results, performance or achievements to be materially different from any projected results, performance or achievements described or implied by such forward looking statements. Neither the Authority or the City plans to issue updates or revisions to such forward looking statements if or when its expectations, or events, conditions or circumstances on which such statements are based, occur, or if actual results, performance or achievements are materially different from any results, performance or achievements described or implied by such forward looking statements.

EXHIBIT 5 739

STOCKTON PUBLIC FINANCING AUTHORITY

CHAIRMAN AND BOARD OF DIRECTORS
AND

CITY COUNCIL

CITY OF STOCKTON

CHAIRMAN AND BOARD OF DIRECTORS

AND MAYOR AND CITY COUNCIL
Mayor Kevin J. Lincoln II Chair and Mayor
Kimberly Warmsley Vice Chair and Vice Mayor, District 6 Michele Padilla Member and Councilmember, District 1
Daniel R. Wright Member and Councilmember, District 2
Michael Blower Member and Councilmember, District 3
Susan Lenz Member and Councilmember, District 4
Brando Villapudua Member and Councilmember, District 5

CITY STAFF
Harry Black, City Manager
Lori M. Asuncion, City Attorney
Jay Kapoor, Interim Chief Financial Officer
C. Mel Lytle, Ph.D., Director of Municipal Utilities
Nancy Xiong, Municipal Utilities Finance Officer
Moss Adams LLP, City Auditor
Katherine Roland, Interim City Clerk

SPECIAL SERVICES

BOND COUNSEL AND DISCLOSURE COUNSEL
Hawkins Delafield & Wood LLP
San Francisco, California

MUNICIPAL ADVISOR
Del Rio Advisors, LLC
Modesto, California

TRUSTEE
U.S. Bank Trust Company, National Association
San Francisco, California
EXHIBIT 5 740

TABLE OF CONTENTS
Page
INTRODUCTION ................................................................................................................................................ 1 General .............................................................................................................................................................. 1 Security for the 2024 Bonds ............................................................................................................................. 1 2024 Reserve Account ...................................................................................................................................... 2 Outstanding and Additional Parity and Subordinate Obligations ..................................................................... 2 Continuing Disclosure ...................................................................................................................................... 2 2024 Bondowners’ Risks .................................................................................................................................. 3 Certain Information Related to This Official Statement ................................................................................... 3 PLAN OF REFUNDING ...................................................................................................................................... 3 General .............................................................................................................................................................. 3 ESTIMATED SOURCES AND USES OF FUNDS ............................................................................................ 4 DEBT SERVICE SCHEDULE............................................................................................................................. 4 THE 2024 BONDS ............................................................................................................................................... 4 General .............................................................................................................................................................. 4 2024 Bonds Not Subject to Redemption ........................................................................................................... 5 SECURITY AND SOURCES OF PAYMENT FOR THE 2024 BONDS ........................................................... 5 General .............................................................................................................................................................. 5 Rate Covenant ................................................................................................................................................... 6 Rate Stabilization Fund ..................................................................................................................................... 6 2024 Reserve Account ...................................................................................................................................... 7 Outstanding Parity Obligations ......................................................................................................................... 7 Additional Parity Obligations ........................................................................................................................... 7 Subordinate Obligations ................................................................................................................................... 9 Certain Rights of the Insurer ............................................................................................................................. 9 BOND INSURANCE ........................................................................................................................................... 9 Bond Insurance Policy ...................................................................................................................................... 9 [INSURANCE PROVIDER] ............................................................................................................................ 9 THE AUTHORITY ............................................................................................................................................ 11 THE CITY .......................................................................................................................................................... 11 THE WASTEWATER SYSTEM ....................................................................................................................... 11 Overview ........................................................................................................................................................ 11 Service Area.................................................................................................................................................... 11 Organization and Management ....................................................................................................................... 12 Facilities .......................................................................................................................................................... 14 Wastewater System Users ............................................................................................................................... 17 Rate Setting, Billing, and Collection Procedures ............................................................................................ 20 Rates, Fees and Charges ................................................................................................................................. 20 Comparative Rates and Fees ........................................................................................................................... 24 Financial Policies and Practices ...................................................................................................................... 25 Historical Debt Service Coverage ................................................................................................................... 26 Projected Debt Service Coverage ................................................................................................................... 27 Projected Reserve Balances ............................................................................................................................ 28 Capital Improvement Program ........................................................................................................................ 28 Expected Future Parity Obligations and/or Subordinate Obligations ............................................................. 29 Employees and Employee Benefits ................................................................................................................ 29 Regulatory Compliance .................................................................................................................................. 34 2024 BONDOWNERS’ RISKS .......................................................................................................................... 35 General ............................................................................................................................................................ 35 Rate Covenant Not a Guarantee of Sufficient Net System Revenues ............................................................. 35 EXHIBIT 5 741
System Expenses and Capital Costs ............................................................................................................... 35 No Acceleration of 2024 Bonds or 2024 Installment Payments ..................................................................... 36 Initiatives; Changes in Law ............................................................................................................................ 36 Statutory and Regulatory Impact .................................................................................................................... 36 Climate Change .............................................................................................................................................. 36 Risk of Earthquake and Other Natural Disasters ............................................................................................ 37 Future Parity Obligations ................................................................................................................................ 40 Risk Management and Insurance .................................................................................................................... 40 Limitations on Remedies ................................................................................................................................ 40 Investment of Funds ....................................................................................................................................... 41 Cybersecurity .................................................................................................................................................. 41 Loss of Tax Exemption on the 2024 Bonds .................................................................................................... 42 Risk of Tax Audit ........................................................................................................................................... 42 Secondary Market ........................................................................................................................................... 42 Bankruptcy ...................................................................................................................................................... 42 Public Health Emergencies ............................................................................................................................. 43 Bond Insurance ............................................................................................................................................... 44 CONSTITUTIONAL AND STATUTORY LIMITATIONS ON TAXES AND APPROPRIATIONS ............ 44 Taxing and Spending Limitations ................................................................................................................... 45 Proposition 218 ............................................................................................................................................... 45 Proposition 26 ................................................................................................................................................. 47 TAX MATTERS................................................................................................................................................. 47 Opinion of Bond Counsel ............................................................................................................................... 47 Certain Ongoing Federal Tax Requirements and Covenants .......................................................................... 48 Certain Collateral Federal Tax Consequences ................................................................................................ 48 Original Issue Discount .................................................................................................................................. 48 Bond Premium ................................................................................................................................................ 49 Information Reporting and Backup Withholding ........................................................................................... 49 Miscellaneous ................................................................................................................................................. 50 LEGAL MATTERS ............................................................................................................................................ 50 ABSENCE OF MATERIAL LITIGATION ....................................................................................................... 50 The Authority.................................................................................................................................................. 50 The City .......................................................................................................................................................... 50 RATINGS ........................................................................................................................................................... 50 MUNICIPAL ADVISOR ................................................................................................................................... 51 UNDERWRITING ............................................................................................................................................. 51 VERIFICATION OF MATHEMATICAL COMPUTATIONS ......................................................................... 51 CONTINUING DISCLOSURE .......................................................................................................................... 51 FINANCIAL STATEMENTS ............................................................................................................................ 52 MISCELLANEOUS ........................................................................................................................................... 52 APPENDIX A: GENERAL ECONOMIC AND DEMOGRAPHIC INFORMATION RELATING TO THE CITY OF STOCKTON ................................................................................................................ A-1 APPENDIX B: AUDITED FINANCIAL STATEMENTS OF THE CITY OF STOCKTON FOR THE FISCAL YEAR ENDED JUNE 30, 2023 ............................................................................................. B-1 APPENDIX C: SUMMARY OF CERTAIN PROVISIONS OF THE PRINCIPAL LEGAL DOCUMENTS...................................................................................................................................... C-1 APPENDIX D: FORM OF CONTINUING DISCLOSURE CERTIFICATE ................................................. D-1 APPENDIX E: DTC AND THE BOOK-ENTRY ONLY SYSTEM ............................................................... E-1 APPENDIX F: PROPOSED FORM OF OPINION OF BOND COUNSEL .....................................................F-1 APPENDIX G: SPECIMEN MUNICIPAL BOND INSURANCE POLICY .................................................. G-1 EXHIBIT 5 742

REGIONAL MAP
City of Stockton
San Joaquin County, California
EXHIBIT 5 743

OFFICIAL STATEMENT
$[PAR AMOUNT]∗

STOCKTON PUBLIC FINANCING AUTHORITY
WASTEWATER REVENUE REFUNDING BONDS, SERIES 2024
(WASTEWATER REFUNDING PROJECT)

INTRODUCTION
This Introduction is only a brief description of, and is qualified by, more complete and detailed information contained in the entire Official Statement, including the cover page through the appendices hereto, and the documents summarized or described herein. A full review should be made of the entire Official Statement. The offering of the 2024 Bonds to potential investors is made only by means of the entire Official Statement. Capitalized terms used herein and not otherwise defined shall have the meanings given to such terms as set forth in the 2024 Indenture or the 2024 Contract (each as defined below). See APPENDIX C – “SUMMARY OF CERTAIN PROVISIONS OF THE PRINCIPAL LEGAL DOCUMENTS – DEFINITIONS OF CERTAIN TERMS” attached hereto.

General
The purpose of this Official Statement is to furnish information with respect to the issuance, sale and delivery of $[PAR AMOUNT]∗
principal amount of Stockton Public Financing Authority Wastewater Revenue Refunding Bonds, Series 2024 (Wastewater Refunding Project) (the “2024 Bonds”). The 2024 Bonds are being issued by the Stockton Public Financing Authority (the “Authority”) under and pursuant to Chapter 5 of Division 7 of Title 1 of the California Government Code, as amended (the “Act”), a resolution adopted by the Authority on [July 9, 2024], and in accordance with the provisions of a 2024 Indenture, dated as of August 1, 2024 (the “2024 Indenture”), by and between the Authority and U.S. Bank Trust Company, National Association, as trustee (the “Trustee”).

The 2024 Bonds are being issued by the Authority for the purpose of providing funds which, together with certain other available moneys, will be used to: (i) refund all of the outstanding principal amount of the Stockton Public Financing Authority Wastewater Revenue Refunding Bonds, Series 2014 (1998 Wastewater Project and 2003 Wastewater Project) (the “2014 Bonds”); [(ii) pay the premiums of a municipal bond insurance policy and a municipal bond debt service reserve insurance policy for the 2024 Bonds;] and (iii) pay certain costs for the 2024 Bonds. The 2014 Bonds were executed and delivered in October 2014 to provide funds to the City of Stockton (the “City”) to refund certain costs used to acquire and construct certain improvements to the City’s wastewater system (the “Wastewater System”), pursuant to a certain installment sale agreement that the City entered into with the Authority. See “PLAN OF REFUNDING” and “ESTIMATED SOURCES AND USES OF FUNDS” herein.

Security for the 2024 Bonds
The 2024 Bonds are limited obligations of the Authority payable solely from certain installment payments (the “2024 Installment Payments”) to be made by the City under the 2024 Installment Purchase Contract, dated as of August 1, 2024 (the “2024 Contract”), by and between the Authority and the City and certain amounts held under the 2024 Indenture. The City has pledged the Net System Revenues (as defined herein) of the Wastewater System to the payment of the 2024 Installment Payments as provided in the 2024 Contract. See “SECURITY AND SOURCES OF PAYMENT FOR THE 2024 BONDS” herein. [The scheduled payment of principal of and interest on the 2024 Bonds when due will be guaranteed under a municipal bond insurance policy (the “Policy”) to be issued concurrently with the delivery of the 2024 ∗ Preliminary, subject to change.

EXHIBIT 5 744
Bonds by [INSURANCE PROVIDER] (the “Insurer”). See “BOND INSURANCE” and APPENDIX G – “SPECIMEN MUNICIPAL BOND INSURANCE POLICY”] herein.

THE 2024 BONDS ARE LIMITED OBLIGATIONS OF THE AUTHORITY PAYABLE SOLELY FROM THE 2024 INSTALLMENT PAYMENTS AND CERTAIN MONEYS HELD UNDER THE 2024 INDENTURE. THE 2024 BONDS ARE NOT A DEBT OF THE CITY, THE STATE OF CALIFORNIA OR

ANY POLITICAL SUBDIVISION THEREOF (OTHER THAN THE AUTHORITY), AND SHALL BE PAYABLE SOLELY FROM THE REVENUES PLEDGED THEREFOR PURSUANT TO THE 2024 INDENTURE. THE OBLIGATION OF THE CITY TO MAKE 2024 INSTALLMENT PAYMENTS IS A

SPECIAL OBLIGATION PAYABLE SOLELY FROM THE NET SYSTEM REVENUES AS PROVIDED IN THE 2024 CONTRACT. NEITHER THE FAITH AND CREDIT NOR THE TAXING POWER OF THE CITY,

THE STATE OF CALIFORNIA OR ANY POLITICAL SUBDIVISION THEREOF (INCLUDING THE AUTHORITY) IS PLEDGED TO THE PAYMENT OF THE PRINCIPAL OF OR INTEREST ON THE 2024 BONDS OR THE 2024 INSTALLMENT PAYMENTS. THE AUTHORITY HAS NO TAXING POWER. THE ISSUANCE OF THE 2024 BONDS SHALL NOT DIRECTLY OR INDIRECTLY OBLIGATE THE

AUTHORITY, THE CITY, THE STATE OF CALIFORNIA OR ANY POLITICAL SUBDIVISION

THEREOF TO LEVY OR PLEDGE ANY FORM OF TAXATION WHATSOEVER OR TO MAKE ANY APPROPRIATION FOR PAYMENT OF THE 2024 BONDS. THE 2024 BONDS AND THE 2024 INSTALLMENT PAYMENTS ARE NOT PAYABLE FROM THE GENERAL FUND OF THE CITY. 2024 Reserve Account
The 2024 Indenture establishes a reserve account for the 2024 Bonds. In connection with the 2024 Bonds, the City is obtaining a municipal bond debt service reserve insurance policy for the benefit of such reserve account. See “SECURITY AND SOURCES OF PAYMENT FOR THE 2024 BONDS – 2024 Reserve Account” herein.

Outstanding and Additional Parity and Subordinate Obligations The City has certain outstanding obligations (described below), and may issue or incur additional obligations, secured by the pledge of, and payable from, Net System Revenues on a parity basis with the 2024 Installment Payments. See “SECURITY AND SOURCES OF PAYMENT FOR THE 2024 BONDS – Additional Parity Obligations” herein. The City may also issue or incur additional obligations payable from the Net System Revenues on a basis subordinate to the 2024 Installment Payments and other Parity Obligations.

See “SECURITY AND SOURCES OF PAYMENT FOR THE 2024 BONDS – Subordinate Obligations” herein.

The pledge of Net System Revenues securing the 2024 Installment Payments is on parity with the pledge of Net System Revenues securing (1) installment payments made by the City to the Authority in connection with a bond issued by the United States Environmental Protection Agency, an agency of the United States of America, acting by and through the Administrator of the Environmental Protection Agency, in the original aggregate principal amount of up to $108,000,000 (the “2020 WIFIA Loan”), which is current outstanding in the aggregate principal amount of $[_____], and (2) a November 2021 loan issued by the California State Water Resources Control Board in the original aggregate principal amount of $46,800,000 (the “2021 SRF Loan”), which is currently outstanding in the aggregate principal amount of $[_______], and that will remain outstanding following the issuance of the 2024 Bonds. See “SECURITY AND SOURCES OF PAYMENT FOR THE 2024 BONDS – General” and “ – Outstanding Parity Obligations” herein.

Continuing Disclosure
The Authority has determined that no financial or operating data concerning the Authority is material to an evaluation of the offering of the 2024 Bonds or to any decision to purchase, hold or sell the 2024 Bonds, and the Authority will not provide any such information.

EXHIBIT 5 745
The City has undertaken all responsibilities for any continuing disclosure to Holders of the 2024 Bonds.

The City will covenant for the benefit of Holders of the 2024 Bonds and beneficial owners to provide certain financial information and operating data relating to the City and the Wastewater System by not later than the end of the ninth month following the end of the City’s Fiscal Year, commencing with the Report for the Fiscal Year 2023-24 (the “Annual Report”), and to provide notices of the occurrence of certain enumerated events. The Annual Report and notices of events will be filed by means of the Electronic Municipal Market Access (“EMMA”) site maintained by the Municipal Securities Rulemaking Board (the “MSRB”). The specific nature of the information to be contained in the Annual Report or the notices of certain enumerated events is set forth in APPENDIX D ─ “FORM OF CONTINUING DISCLOSURE CERTIFICATE.” These covenants have been made in order to assist the Underwriters in complying with the Securities Exchange Commission Rule 15c2-12, as amended (the “Rule”). See “CONTINUING DISCLOSURE” herein. 2024 Bondowners’ Risks
An investment in the 2024 Bonds involves risk. See “2024 BONDOWNERS’ RISKS” for a discussion of important investment considerations and other risk factors associated with the purchase of the 2024 Bonds.

Any one or more of the risks discussed, and others, could lead to a decrease in the market value of the 2024 Bonds or impact the ability of the City to make 2024 Installment Payments. Potential purchasers of the 2024 Bonds are advised to review the entire Official Statement carefully and to conduct such due diligence and other review as they deem necessary and appropriate under the circumstances.

Certain Information Related to This Official Statement
Brief descriptions of the 2024 Bonds, the security for the 2024 Bonds, the Wastewater System, the Authority and the City are included in this Official Statement together with summaries of certain provisions of the 2024 Bonds, the 2024 Indenture, the 2024 Contract and certain other documents. Such descriptions do not purport to be comprehensive or definitive. Capitalized terms used herein and not otherwise defined shall have the meanings given to such terms as set forth in the 2024 Indenture or the 2024 Contract. See APPENDIX C ─ “SUMMARY OF CERTAIN PROVISIONS OF THE PRINCIPAL LEGAL DOCUMENTS ─ DEFINITIONS OF CERTAIN TERMS” attached hereto. Certain general demographic and economic information relating to the City is contained in APPENDIX A.

All references herein to the 2024 Indenture, the 2024 Contract and other documents are qualified in their entirety by reference to such documents, and references herein to the 2024 Bonds are qualified in their entirety by reference to the form thereof included in the 2024 Indenture, copies of which are available prior to the issuance of the 2024 Bonds at the office of the Chief Financial Officer, City of Stockton, 425 North El Dorado Street, Stockton, California 95202; and thereafter at the office of the Trustee, U.S. Bank Trust Company, National Association, 633 West Fifth Street, 24th Floor, Los Angeles, California 90071.

PLAN OF REFUNDING
General
The 2024 Bonds are being issued for the purpose of providing funds which[, together with certain other available moneys,] will be used to: (i) refund all of the outstanding principal amount of the 2014 Bonds [(ii) pay the premiums of a municipal bond insurance policy and a municipal bond debt service reserve insurance policy for the 2024 Bonds; and] (iii) pay certain costs associated with the issuance of the 2024 Bonds.

A portion of the proceeds of the 2014 Bonds[, together with other available moneys,] will be deposited into an escrow fund for the 2014 Bonds to be refunded (the “Escrow Fund”) established under an escrow agreement between the City and Computershare Trust Company, N.A., as escrow agent (the “Escrow Agent”).

The moneys so deposited in the Escrow Fund will be invested in direct obligations of the United States of America (the “Defeasance Securities”), the interest on and principal of which will be sufficient, together with EXHIBIT 5 746
any money held in the related Escrow Fund uninvested, to prepay the outstanding 2014 Bonds approximately [89] days after the date of delivery of the 2024 Bonds. Upon deposit, all liability of Authority and the City with respect to the 2014 Bonds (except for the obligation to pay the interest and principal evidenced and represented by the 2014 Bonds from moneys on deposit in the Escrow Fund) will cease. The Defeasance Securities nor the interest income thereon, and moneys in the Escrow Fund, will not secure the 2024 Bonds and will not be available to pay the principal of or interest on the 2024 Bonds. See “VERIFICATION OF MATHEMATICAL COMPUTATIONS.”

ESTIMATED SOURCES AND USES OF FUNDS
The estimated sources and uses of funds with respect to the 2024 Bonds are set forth below.

Sources of Funds:

Principal amount of 2024 Bonds
Net Original Issue Premium
[Other available funds]
Total Estimated Sources of Funds
Uses of Funds:

Escrow Fund(1)
Costs of Issuance(2)
Total Estimated Uses of Funds
____________
(1) See “PLAN OF REFUNDING” and “VERIFICATION OF MATHEMATICAL COMPUTATIONS.” (2) Includes Trustee fees, Escrow Agent fees, Bond Counsel and Disclosure Counsel fees, Municipal Advisor fees, the Underwriters’ discount, premiums for the municipal bond insurance policy and the municipal bond debt service reserve insurance policy, rating agency fees, printing costs and other costs of issuance.

DEBT SERVICE SCHEDULE
The Fiscal Year debt service requirements for the 2024 Bonds are set forth below.

Fiscal Year
(June 30) Principal Interest Total
2025
2026
2027
2028
2029
2030
Total
THE 2024 BONDS
General
The 2024 Bonds will be issued as fully registered bonds without coupons in denominations of $5,000, or any integral multiple thereof and shall be dated the date of delivery. The 2024 Bonds will be issued in bookentry only form and The Depository Trust Company, New York, New York (“DTC”) will act as securities depository for the 2024 Bonds. So long as the 2024 Bonds are held in book-entry only form, principal of and EXHIBIT 5 747
interest on the 2024 Bonds will be paid directly to DTC for distribution to the beneficial owners of the 2024 Bonds in accordance with the procedures adopted by DTC. See APPENDIX E – ”DTC AND THE BOOKENTRY ONLY SYSTEM” attached hereto.

The 2024 Bonds will mature on September 1 in each of the years and in the respective principal amounts, and will bear interest from their date of delivery at the rates, as shown on the inside cover page of this Official Statement. Interest on the 2024 Bonds will be payable semiannually on March 1 and September 1 of each year, commencing March 1, 2025 (each, an “Interest Payment Date”). Interest on the 2024 Bonds will be calculated on the basis of a 360-day year of twelve, 30-day calendar months. The Record Date for each Interest Payment Date is the 15th day of the month prior to such Interest Payment Date. 2024 Bonds Not Subject to Redemption
No Optional Redemption. The 2024 Bonds are not subject to redemption, prior to maturity.

SECURITY AND SOURCES OF PAYMENT FOR THE 2024 BONDS
General
Pledge of Net System Revenues. The 2024 Bonds are limited obligations of the Authority issued under and pursuant to the 2024 Indenture, payable solely from the 2024 Installment Payments to be made by the City under the 2024 Contract and certain amounts held under the 2024 Indenture. The obligation of the City to make 2024 Installment Payments constitutes a special obligation of the City payable solely from a pledge of the “Net System Revenues.”
“Net System Revenues” is defined in the 2024 Contract as, for any period, the System Revenues during such period less the Operation and Maintenance Costs during such period. “System Revenues” is defined in the 2024 Contract as all gross income and revenue received or receivable by the City from the ownership or operation of the Wastewater System, determined in accordance with Generally Accepted Accounting Principles, including all fees, rates, charges and amounts paid under any contracts received by or owed to the City in connection with the operation of the Wastewater System and all other proceeds of insurance relating to the Wastewater System and all other income and revenue howsoever derived by the City from the ownership or operation of the Wastewater System. “Operation and Maintenance Costs” is defined in the 2024 Contract as the reasonable and necessary costs paid or incurred by the City for maintaining and operating the Wastewater System, determined in accordance with Generally Accepted Accounting Principles, including the expenses of maintenance, repair, billing and collection and other expenses incurred to maintain and preserve the Wastewater System in good repair and working order, and including all administrative and management costs of the City that are charged directly or apportioned to the operation of the Wastewater System, such as salaries and wages of employees, payments to employee retirement systems, overhead, taxes (if any) and insurance premiums (including payments required to be paid into any self-insurance funds), and including all other reasonable and necessary costs of the City or charges required to be paid by it to comply with the terms hereof, any Parity Obligations, but excluding in all cases (i) depreciation, replacement and obsolescence charges or reserves therefor, (ii) amortization of intangibles, (iii) costs of capital additions, replacements, betterments, extensions or improvements to the Wastewater System which under Generally Accepted Accounting Principles are chargeable to a capital account, and (iv) charges for the payment of principal and interest on any debt service on account of any Parity Obligation or obligation subordinate to the Parity Obligations.
“Parity Obligations” is defined in the 2024 Contract as the 2024 Installment Payments, the 2020 WIFIA Loan, the 2021 SRF Loan and any other obligation (including, but not limited to, any installment payment obligation) payable on a parity with the 2024 Installment Payments from Net System Revenues, and the regularly EXHIBIT 5 748
scheduled payments under any Payment Agreement designated as a “Parity Obligation” in the Payment Agreement.

SPECIAL OBLIGATION PAYABLE SOLELY FROM THE NET SYSTEM REVENUES AS PROVIDED IN THE 2024 CONTRACT. NEITHER THE FAITH AND CREDIT NOR THE TAXING POWER OF THE CITY,

AUTHORITY, THE CITY, THE STATE OF CALIFORNIA OR ANY POLITICAL SUBDIVISION

Rate Covenant
Under the 2024 Contract, the City has covenanted that it will fix, prescribe and collect rates, fees and charges for the Wastewater Service during each Fiscal Year which are estimated to yield Net System Revenues for such Fiscal Year equal to at least the Coverage Requirement (i.e. generally 115% of Parity Debt Service as defined below) for such Fiscal Year. The City may make adjustments from time to time in such fees and charges and may make such classification thereof as it deems necessary, but may not reduce the rates, fees and charges then in effect unless the Net System Revenues from such reduced rates, fees and charges are estimated to be sufficient to meet the requirements of such covenant.
“Adjusted Net System Revenues” is defined in the 2024 Contract as, for any Fiscal Year, the Net System Revenues for such Fiscal Year less, to the extent included in the calculation of Net System Revenues for such Fiscal Year, all amounts received or expected to be received by the City or fiduciary, on behalf of the City, in such Fiscal Year in respect of any subsidy, reimbursement or other payment from a governmental entity in connection with, or related to, payment of principal and/or interest on Parity Obligations. “Coverage Requirement” is defined in the 2024 Contract as, for any Fiscal Year or any other period, an amount of Adjusted Net System Revenues equal to at least 115% of Parity Debt Service for such Fiscal Year or such other period, as applicable.
“Parity Debt Service” is defined in the 2024 Contract as, generally, all net debt service on obligations of the City relating to the Wastewater System that are secured by the Net System Revenues on a parity with the 2024 Installment Payments as described in APPENDIX C – ”SUMMARY OF CERTAIN PROVISIONS OF THE PRINCIPAL LEGAL DOCUMENTS – DEFINITIONS OF CERTAIN TERMS.” Rate Stabilization Fund
Under the 2024 Contract, the City may establish a fund denominated the Rate Stabilization Fund. From time to time the City may deposit into the Rate Stabilization Fund, from current System Revenues, such amounts as the City shall determine and the amount of available current System Revenues in the Fiscal Year shall be reduced by the amount so transferred. Amounts may be transferred from the Rate Stabilization Fund and deposited in the Revenue Fund, and any amounts so transferred within 270 days after the end of a Fiscal Year shall be deemed System Revenues for such Fiscal Year when so transferred. The City may also apply moneys EXHIBIT 5 749
on deposit in the Rate Stabilization Fund for any lawful purpose. All interest or other earnings upon amounts in the Rate Stabilization Fund may be withdrawn therefrom and accounted for as System Revenues in accordance with the terms of the 2024 Contract or used for any lawful purpose. [The City currently does not have a Rate Stabilization Fund but may establish one in the future.] [Confirm] 2024 Reserve Account
The 2024 Indenture establishes a reserve account for the 2024 Bonds (the “2024 Reserve Account”). [The 2024 Reserve Requirement as of the date of issuance of the 2024 Bonds is $_______ and will be initially satisfied by a municipal bond debt service reserve insurance policy (the “Reserve Fund Policy”) issued by the Insurer. See “BOND INSURANCE – [INSURANCE PROVIDER]” herein.] Outstanding Parity Obligations
The pledge of Net System Revenues securing the 2024 Installment Payments is on parity with the pledge of Net System Revenues securing (1) the 2020 WIFIA Loan, and (2) the 2021 SRF Loan. See “PLAN OF REFUNDING,” “DEBT SERVICE SCHEDULE,” and “SECURITY AND SOURCES OF PAYMENT FOR THE 2024 BONDS – Outstanding Parity Obligations” herein.

Additional Parity Obligations
No Senior Obligations. The City covenants in the 2024 Contract that it will not incur any obligations payable from Net System Revenues on a basis superior to the payment of the 2024 Installment Payments.

Issuance of Parity Obligations. Under the 2024 Contract, the City may at any time and from time to time issue or create any Parity Obligations, provided:
(i) There has not occurred and be continuing (A) an Event of Default under the terms of the 2024 Contract, and any installment purchase contract, indenture, trust agreement or other document that provides for the issuance of Parity Obligations (each an “Issuing Document”) or (B) an Event of Default or Termination Event (as defined in any Payment Agreement) under any Payment Agreement; and (ii) The City obtains or provides a certificate or certificates, prepared by the City or at the City’s option by a Consultant, showing that either:
(A) the Adjusted Net System Revenues for either the most recent Fiscal Year for which audited financial statements are available or any 12 consecutive calendar month period during the 18 consecutive calendar month period ending immediately prior to the incurring of such additional Parity Obligations were at least sufficient to satisfy the Coverage Requirement for each of the next five full Fiscal Years following the incurring of such additional Parity Obligations or each of the next three full Fiscal Years following the incurring of such additional Parity Obligations during which no interest is capitalized, whichever is later, including the Parity Debt Service during such Fiscal Years on such additional Parity Obligations; and for the purpose of providing such certificate or certificates, the City or the City’s Consultant, as applicable, may adjust the Adjusted Net System Revenues for such Fiscal Year or 12 calendar month period, as the case may be, to reflect:
(1) an allowance for Net System Revenues that would have been derived from each new connection to the Wastewater System that was made prior to the incurrence of such additional Parity Obligations but which was not in existence, during all or any part of such Fiscal Year or 12 calendar month period under consideration, in an amount equal to the estimated additional Net System Revenues that would have been derived from each such EXHIBIT 5 750
connection if it had been made prior to the beginning of such Fiscal Year or 12 calendar month period, and
(2) an allowance for Net System Revenues that would have been derived from any increase in the rates, fees and charges fixed and prescribed for Wastewater Service which became effective prior to the incurrence of such additional Parity Obligations but which was not in effect, during all or any part of such Fiscal Year or 12 calendar month period, in an amount equal to the estimated additional Net System Revenues that would have been derived from such increase in rates, fees and charges if it had been in effect prior to the beginning of such Fiscal Year or 12 calendar month period; or
(B) the estimated Adjusted Net System Revenues for each of the five full Fiscal Years next following the earlier of (i) the end of the period during which interest on such additional Parity Obligations is to be capitalized or, if no interest is capitalized, the Fiscal Year in which such additional Parity Obligations are incurred, or (ii) the date on which substantially all Wastewater Projects financed with such additional Parity Obligations plus all Wastewater Projects financed with all existing Parity Obligations are expected to commence operations, will be at least sufficient to satisfy the Coverage Requirement for such period; and for the purpose of providing such certificate or certificates, the City or the City’s Consultant, as applicable, may adjust the foregoing estimated Adjusted Net System Revenues to reflect:
(1) an allowance for Net System Revenues that are estimated to be derived from any increase in the rates, fees and charges for Wastewater Service which have been adopted by the City and which will be in effect during all or any portion of the period for which such estimates are provided; and
(2) an allowance for Net System Revenues that are estimated to be derived from new customers of the Wastewater System anticipated to be served by any additions or improvements to or extensions of the Wastewater System reasonably expected to become available during such five year period in an amount equal to the additional Net System Revenues that are estimated to be derived from such customers.

For purposes of clause (B) above, with respect to Operation and Maintenance Costs, the City or the City’s Consultant, as applicable, is required to use such assumptions (which are required to be set forth in such certificate or certificates) as such believes to be reasonable, taking into account: (i) historical Operation and Maintenance Costs, (ii) Operation and Maintenance Costs associated with the additions or improvements to or extensions of the Wastewater System to be financed with the proceeds of such additional Parity Obligations and any other new additions or improvements to or extensions of the Wastewater System during such five year period and (iii) such other factors, including inflation and changing operations or policies of the City, as the City or the City’s Consultant, as applicable, believes to be appropriate.

The certificate or certificates described above in paragraph (ii) are not required if the Parity Obligations being issued are for the purpose of refunding (x) then outstanding Parity Obligations, if at the time of the issuance of such refunding Parity Obligations a certificate of the City is delivered showing that Parity Debt Service in each Fiscal Year on all Parity Obligations outstanding after the issuance of the refunding Parity Obligations will not exceed one hundred ten per cent (110%) of Parity Debt Service in each corresponding Fiscal Year on all Parity Obligations outstanding prior to the issuance of such refunding Parity Obligations; or (y) then outstanding Balloon Obligations or Variable Interest Rate Obligations, but only to the extent that the principal amount of such Balloon Obligations or Variable Interest Rate Obligations has been put, tendered to or otherwise purchased by a standby purchase or other liquidity facility relating to such Balloon Obligations or Variable Interest Rate Obligations.

EXHIBIT 5 751
Subordinate Obligations
Under the 2024 Contract, the City may issue or incur obligations secured by Net System Revenues on a priority subordinate to the Parity Obligations and such obligations may be paid only in accordance with the provisions of 2024 Contract as long as (i) no Event of Default has occurred and is continuing (unless such Event of Default will not be continuing after the incurrence of such subordinate obligations) and (ii) no Event of Default or Termination Event (as defined in any Payment Agreement) under any Payment Agreement has occurred and is continuing (unless such Event of Default or Termination Event will not be continuing after the incurrence of such subordinate obligations).

Certain Rights of the Insurer
[In the event that principal of or interest due on the 2024 Bonds shall be paid by the Insurer pursuant to the Policy or the Reserve Fund Policy, the Insurer will be subrogated to the rights of the registered owners of the 2024 Bonds. Any amendment, supplement, modification to, or waiver of, the 2024 Indenture or the 2024 Contract that requires the consent of holders of the 2024 Bonds will also require the prior written consent of the Insurer. Upon the occurrence and continuance of a default or an event of default under the 2024 Indenture or 2024 Contract, the Insurer will be deemed to be the sole owner of the 2024 Bonds for all purposes under the 2024 Indenture and the 2024 Contract, including, without limitations, for purposes of exercising remedies and approving amendments. In the event of any reorganization or liquidation of the City, the Insurer will have the right to vote on behalf of all holders of the 2024 Bonds on any reorganization or liquidation plan absent a continuing failure by the Insurer to make a payment under the Policy.]

BOND INSURANCE
[Section to be updated]
Bond Insurance Policy
Concurrently with the issuance of the 2024 Bonds, [INSURANCE PROVIDER] (“[INSURANCE PROVIDER]”) will issue its Municipal Bond Insurance Policy for the 2024 Bonds (the “Policy”). The Policy guarantees the scheduled payment of principal of and interest on the 2024 Bonds when due as set forth in the form of the Policy included as APPENDIX G to this Official Statement.

The Policy is not covered by any insurance security or guaranty fund established under New York, California, Connecticut or Florida insurance law.
[INSURANCE PROVIDER]
[INSURANCE PROVIDER] is a New York domiciled mutual insurance corporation. BAM provides credit enhancement products solely to issuers in the U.S. public finance markets. BAM will only insure obligations of states, political subdivisions, integral parts of states or political subdivisions or entities otherwise eligible for the exclusion of income under section 115 of the U.S. Internal Revenue Code of 1986, as amended.

No member of [INSURANCE PROVIDER] is liable for the obligations of [INSURANCE PROVIDER].

The address of the principal executive offices of [INSURANCE PROVIDER] is: [address] [INSURANCE PROVIDER] is licensed and subject to regulation as a financial guaranty insurance corporation under the laws of the State of New York and in particular Articles 41 and 69 of the New York Insurance Law.
[INSURANCE PROVIDER]’s financial strength is rated “AA/Stable” by Standard and Poor’s Ratings Services, a Standard & Poor’s Financial Services LLC business (“S&P”). An explanation of the significance of EXHIBIT 5 752
the rating and current reports may be obtained from S&P at www.standardandpoors.com. The rating of [INSURANCE PROVIDER] should be evaluated independently. The rating reflects the S&P’s current assessment of the creditworthiness of [INSURANCE PROVIDER] and its ability to pay claims on its policies of insurance. The above rating is not a recommendation to buy, sell or hold the 2024 Bonds, and such rating is subject to revision or withdrawal at any time by S&P, including withdrawal initiated at the request of [INSURANCE PROVIDER] in its sole discretion. Any downward revision or withdrawal of the above rating may have an adverse effect on the market price of the 2024 Bonds. [INSURANCE PROVIDER] only guarantees scheduled principal and scheduled interest payments payable by the issuer of the 2024 Bonds on the date(s) when such amounts were initially scheduled to become due and payable (subject to and in accordance with the terms of the Policy), and [INSURANCE PROVIDER] does not guarantee the market price or liquidity of the 2024 Bonds, nor does it guarantee that the rating on the 2024 Bonds will not be revised or withdrawn.

Capitalization of [INSURANCE PROVIDER]
[INSURANCE PROVIDER]’s total admitted assets, total liabilities, and total capital and surplus, as of [___ __], 2024 and as prepared in accordance with statutory accounting practices prescribed or permitted by the New York State Department of Financial Services were $[___] million, $[___] million and $[___] million, respectively.
[INSURANCE PROVIDER] is party to a first loss reinsurance treaty that provides first loss protection up to a maximum of [15]% of the par amount outstanding for each policy issued by [INSURANCE PROVIDER], subject to certain limitations and restrictions.
[INSURANCE PROVIDER]’s most recent Statutory Annual Statement, which has been filed with the New York State Insurance Department and posted on [INSURANCE PROVIDER]’s website at [website], is incorporated herein by reference and may be obtained, without charge, upon request to [INSURANCE PROVIDER] at its address provided above (Attention: Finance Department). Future financial statements will similarly be made available when published.
[INSURANCE PROVIDER] makes no representation regarding the 2024 Bonds or the advisability of investing in the 2024 Bonds. In addition, [INSURANCE PROVIDER] has not independently verified, makes no representation regarding, and does not accept any responsibility for the accuracy or completeness of this Official Statement or any information or disclosure contained herein, or omitted herefrom, other than with respect to the accuracy of the information regarding [INSURANCE PROVIDER], supplied by [INSURANCE PROVIDER] and presented under the heading “BOND INSURANCE.” Additional Information Available from [INSURANCE PROVIDER] Credit Insights Videos. For certain [INSURANCE PROVIDER]-insured issues, [INSURANCE PROVIDER] produces and posts a brief Credit Insights video that provides a discussion of the obligor and some of the key factors [INSURANCE PROVIDER]’s analysts and credit committee considered when approving the credit for insurance. The Credit Insights videos are easily accessible on [INSURANCE PROVIDER]’s website at [website].

Obligor Disclosure Briefs. Subsequent to closing, [INSURANCE PROVIDER] posts an Obligor Disclosure Brief on every issue insured by [INSURANCE PROVIDER], including the 2024 Bonds. [INSURANCE PROVIDER] Obligor Disclosure Briefs provide information about the gross par insured by CUSIP, maturity and coupon; sector designation (e.g. general obligation, sales tax); a summary of financial information and key ratios; and demographic and economic data relevant to the obligor, if available. The Obligor Disclosure Briefs are also easily accessible on [INSURANCE PROVIDER]’s website at [website].

Disclaimers. The Obligor Disclosure Briefs and the Credit Insights videos and the information contained therein are not recommendations to purchase, hold or sell securities or to make any investment EXHIBIT 5 753
decisions. Credit-related and other analyses and statements in the Obligor Disclosure Briefs and the Credit Insights videos are statements of opinion as of the date expressed, and [INSURANCE PROVIDER] assumes no responsibility to update the content of such material. The Obligor Disclosure Briefs and Credit Insight videos are prepared by [INSURANCE PROVIDER]; they have not been reviewed or approved by the Authority, the City or the underwriters for the 2024 Bonds, and the Authority, the City and underwriters assume no responsibility for their content.
[INSURANCE PROVIDER] receives compensation (an insurance premium) for the insurance that it is providing with respect to the 2024 Bonds. Neither [INSURANCE PROVIDER] nor any affiliate of [INSURANCE PROVIDER] has purchased, or committed to purchase, any of the 2024 Bonds, whether at the initial offering or otherwise.

THE AUTHORITY
The Authority was created by a Joint Exercise of Powers Agreement, dated June 18, 1990 (the “JPA Agreement”), between the City and the former Redevelopment Agency of the City of Stockton. The JPA Agreement was entered into pursuant to the Joint Exercise of Powers Act, Chapter 5 of Division 7 of Title 1 of the Government Code of the State of California (the “State”). The Authority was created for the purpose of facilitating the financing or refinancing public improvement facilities within the City.

THE CITY
The City is a municipal corporation and charter city incorporated in 1850. The City is the county seat of San Joaquin County and is located in California’s San Joaquin Valley, 78 miles east of the San Francisco Bay Area, 345 miles north of Los Angeles and 45 miles south of Sacramento. San Joaquin County is bounded by Sacramento County on the north, Stanislaus County on the south, Contra Costa County and Alameda County on the west and Amador County, Calaveras County and Stanislaus County on the east.

Certain economic and demographic information with respect to the City is contained in APPENDIX A.

Such economic and demographic information is presented as general background information only. The 2024 Bonds are secured solely by the 2024 Installment Payments (which are payable from Net System Revenues) and funds and accounts established under the 2024 Indenture, and not by the general fund of the City. See “SECURITY AND SOURCES OF PAYMENT FOR THE 2024 BONDS” herein.

THE WASTEWATER SYSTEM
Overview
The City of Stockton Wastewater System is one of three utilities managed, operated, and maintained by the City of Stockton Municipal Utilities Department (the “Stockton MUD”). The two other utilities are Water and Stormwater. The Wastewater System is comprised of the regional wastewater collection system (the “Collection System”) and the treatment and disposal facilities located at the Stockton Regional Wastewater Control Facility (the “Stockton RWCF”). See “ – Facilities” below.

Service Area
The Wastewater System provides wastewater service within the City limits and certain contiguous portions of unincorporated San Joaquin County (collectively, the “Service Area”). The Service Area covers approximately 100 square miles, of which the City comprises approximately 55.5 square miles. The total population of the City is approximately 317,204 (as of January 1, 2024 as estimated by the State Department of Finance), including eight service districts located outside of City limits (Colonial Heights, Lincoln Village, Taft, Pacific Gardens, Morrison Gardens, Boggs Tract, College Parkview, and Country Club) and an unincorporated EXHIBIT 5 754
portion of the County. The eight service districts and the unincorporated portion of the County are referred to collectively as “Non-City Customers.”
The following is a map of the Service Area.

Organization and Management
Organization. The Wastewater System is operated under the management and control of the City Council. Day-to-day management is provided by C. Mel Lytle, Ph.D., the Director of Stockton MUD; Deedee Antypas, Deputy MUD Director of Wastewater Operations; Ali Gharegozloo, Deputy MUD Director of Engineering and Department Services; and Jeff Marasovich, Deputy MUD Director of Maintenance and Collections Systems, under the general supervision of the City Manager. The Assistant MUD Director position is currently vacant.

The organization of the Wastewater System is presented in the organizational chart on the following page. The Wastewater System also receives services from other divisions within Stockton MUD, including engineering, administration, laboratory, maintenance, and environmental control.

The Wastewater System operates within the legal requirements of the City Charter, the City Municipal Code, and in accordance with the laws of the State and the nation. The Wastewater System is regulated at the State level by the State Water Resources Control Board (the “SWRCB”), the Central Valley Regional Water EXHIBIT 5 755
Quality Control Board (the “RWQCB”), and at the Federal level by the Environmental Protection Agency (the “EPA”).

The Wastewater System also receives guidance from the Water Advisory Group (described below) and the City Council Water Committee.

Water Advisory Group. In 2009, the City Council adopted Resolution No. 09-0279 establishing the Water Advisory Group (the “WAG”) to foster citizen input and transparency in the operations of Stockton MUD.

The WAG reports directly to the Council Water Committee (described below) on current and future issues impacting the Wastewater, Water, and Stormwater Utilities of the City, including review of Stockton MUD monthly operations and maintenance reports (including those for the Wastewater System). The WAG is comprised of seven members, who must reside within one of the service areas of the City’s three Utilities, and serve four-year terms for a maximum of two terms. The Mayor and each Council member nominate one candidate with all nominees ratified by the full City Council.

The Director of Stockton MUD serves ex-officio as Secretary of the Water Advisory Group.

Council Water Committee. The Council Water Committee is a standing committee of the City Council.

This Committee is comprised of three members of the City Council and one alternate appointed by the Mayor and ratified by the full City Council. The Council Water Committee is responsible for advising and making recommendations to the City Council on all issues related to wastewater, including, but not limited to, projects, treatment, regulatory issues, and recommendations made by the WAG. [Remainder of Page Intentionally Left Blank]
EXHIBIT 5 756
Wastewater System Organizational Chart
Management. The Wastewater System operates within the legal requirements of the City Charter, the Municipal Code and in accordance with the laws of the State and the nation. See also “ – Regulatory Compliance.”
The Wastewater System receives administrative and overhead support services from the City and is charged for these services through an interdepartmental cost allocation system.

A Brief resume of the Stockton MUD Director is set forth below:

C. Mel Lytle, Ph.D., Director of Municipal Utilities. Dr. Mel Lytle began work for the City of Stockton in 2012 as Director of the Municipal Utilities Department. Prior to his time with the City, Mel worked for 10 years as the Water Resources Manager for San Joaquin County. Dr. Lytle is a published author, invited lecturer and Postdoctoral Fellow of the University of California Berkeley. His academic training includes bachelor’s & master’s degrees in agricultural business/science and a Ph.D. in botany & range science from Brigham Young University, Utah.

Facilities
General. The Stockton RWCF is located on an approximately 690-acre site in the southwestern portion of the City adjacent to the San Joaquin River. The Stockton RWCF is comprised of primary, secondary, and EXHIBIT 5 757
tertiary wastewater treatment and discharge to the San Joaquin River. The current capacity of the Stockton RWCF in million gallons per day (“mgd”) is as follows:

Design Average Dry Weather Flow...................... 47 mgd Maximum Secondary Treatment Capacity............ 79.4 mgd Maximum Outfall Capacity .................................. 55 mgd In Fiscal Year 2022-23, the Stockton RWCF treated and discharged approximately 9.9 billion gallons of wastewater originating from residential, commercial, industrial and institutional customers within the Service Area.

The Stockton RWCF is undergoing a multi-year project to repair, replace and upgrade the treatment process units at the Stockton RWCF in order to meet treated wastewater discharge limits regulated by the Central Valley Regional Water Quality Control Board by June 1, 2024. As of the date hereof, completion of the project has been extended to January 2025.

Collection System. The existing sanitary collection system conveys all wastewater for the Service Area to the Stockton RWCF. The collection system is comprised of ten smaller collection systems that function somewhat independently of each other, although some interties and shared facilities do exist. More than 108,000 sanitary sewer connections and more than 1,400 miles of sanitary sewer pipelines, including pressurized force mains, gravitational sewer mains and service laterals, comprise the collection system. The sanitary collection system also includes 27 pump stations. The sanitary collection system and the City’s storm water collection system are separate, unconnected systems.

Wastewater generally flows by gravity from east to west. Wastewater from north Stockton and several east Stockton locations must be pumped to the Stockton RWCF. Capacities of these pump stations range from several hundred to over 30,000 gallons per minute.

Treatment Process and Disposal System. Wastewater is treated at the Stockton RWCF and discharged into the San Joaquin River. The Stockton RWCF processes wastewater in three steps: primary, secondary, and tertiary (advanced) which are required to meet environmental standards. A summary of each stage of the treatment process is set forth below.

Primary Treatment. Primary treatment includes screening, grit removal, and sedimentation.

Screens remove large objects such as rags, sticks, plastics, small stones, and pieces of wood. The wastewater flows through six primary settling tanks to allow heavy particles to settle to the bottom to be moved to sludge hoppers. Floating materials are removed with water sprays and rotating collectors or skimmers. Floatable substances, such as grease, are skimmed and sent to the bio-oxidation towers.

Secondary Treatment. After passing through primary settling tanks, the effluent is pumped to four secondary clarifiers where further settling of solids occurs. Cleaned effluent from the secondary clarifiers then flows to the aeration basins where aerobic, anaerobic, and swing zones activate the microbes to metabolize the remaining organic matter in the wastewater stream. The microbes are recycled through a return activated sludge system in a continuous loop back into the aeration basins to replenish the microbe stock. The aeration basins, and activated sludge system removes the majority of BOD, TSS, and ammonia from the wastewater stream.

Advanced Tertiary Treatment. The tertiary treatment facilities consist of disk filters and ultraviolet radiation. Effluent from the aeration basins is routed though disk filters to remove any final remaining solids. The filtered water is then pumped through channels containing ultraviolet bulbs for final disinfection before discharge into the San Joaquin River.

A diagram of the treatment process is set forth on the next page.

EXHIBIT 5 758
EXHIBIT 5 759
Fat, Oils, and Grease. Fats, oils, and grease (“FOG”) in the collection system is also a major concern.

Wastewater lines blocked with FOG can cause overflows and result in sanitary sewer overflows (“SSOs”). The City has developed a comprehensive program to address sanitary sewer overflows associated with FOG, consisting of preventative maintenance, inspections, enforcement procedures, and public education and outreach to food service establishments. The City also requires industrial users to install pretreatment equipment, including equipment to reduce FOG and has public educational outreach programs for other users to reduce FOG in the collection system and SSOs.

Power Source. The Stockton RWCF produces approximately 47 million pounds of sludge each month.

The decomposition of this sludge produces enough methane to generate 38,000 megawatts (“MW”) per year to supply the majority of the power needs of the Stockton RWCF. The City also purchases electrical power from Pacific Gas & Electric. In order to satisfy State requirements that all wastewater treatment facilities have an alternate source of power, the Stockton RWCF is equipped with a standby 1,750 kilowatt black start diesel generator and a 3MW Kohler generator.

Disposal System. The Stockton RWCF discharges treated effluent to the San Joaquin River through a pipe outfall in compliance with State requirements. Solids removed from the treatment process include grit, screenings and large debris. These solids are collected or removed through various processes and disposed of to a local landfill. Sludge collected from the treatment process is pumped to the anaerobic digesters. Once digested, the solids are dewatered and are sent through the belt filter presses where the remaining water is removed, and a biosolids “cake” is produced. This cake is hauled by a contract hauler off site and is land disposed or land applied (to land located outside of the County). The Stockton RWCF hauls approximately 5,400 dry tons of biosolids off-site each year.

Wastewater System Users
Customer Class. During Fiscal Year 2022-23, the Wastewater System served 108,807 accounts, of which approximately 96% were residential users. Table 1 summarizes the customer base by the number of connections for the last five Fiscal Years.
[Remainder of Page Intentionally Left Blank]
EXHIBIT 5 760
Table 1
City of Stockton Wastewater System
Customer Class by Type of Account
(Fiscal Years 2018-19 through 2022-23)
Fiscal Years
Account Type 2018-19 2019-20 2020-21 2021-22 2022-23
Residential:

Single Family and Condo 75,826 76,139 76,350 76,774 77,879 Multi-Family and Apartments 26,624 26,630 26,630 26,626 26,635 Commercial:

Low Strength 192 196 196 201 205
Medium Strength 3,117 3,121 3,136 3,145 3,176
High Strength 393 394 395 394 404
Industrial:

Low Strength 35 35 35 36 36
Medium Strength 429 431 432 433 441
High Strength 17 19 19 20 20
Wastewater Haulers 13 11 11 11 11
TOTAL 106,646 106,976 107,204 107,640 108,807
____________
Source: City of Stockton, Utility Billing.

Additionally, the County bills on the tax bill certain property owners in three unincorporated areas where the City takes in the wastewater flows. These accounts are serviced and billed by the County and directly serviced through County Assessment Districts. These areas are Lincoln Village and Colonial Heights, together comprising over 800 acres, and Country Club, which is roughly 1,200 acres, and is comprised of two County districts. Roughly 1,000 homes in the Country Club Sanitary District Area of Country Club entered into an agreement with the City and are directly billed by the City. The remaining roughly 2,460 properties are serviced through the Pacific Gardens Maintenance District. These unincorporated areas are predominately made up of residential development, but do include some small commercial developments. They are fully surrounded by the City limits. Except for the roughly 1,000 properties in the Country Club Sanitary District, parcels in these unincorporated areas previously estimated in the above table have been excluded since the customers are both serviced and billed by the County and the City has no automated way to track ownership or zoning changes.

EXHIBIT 5 761
Largest Users by Flow. The table below shows the 10 largest users (unaudited) of the Wastewater System by flow for Fiscal Year 2022-23
Table 2
City of Stockton Wastewater System
Ten Largest Users by Flow
Fiscal Year 2022-23
Fiscal Year 2022-23 Users
Name Industry/Type of Business
Peak
Monthly
Flow (mg)
Total Yearly
Flow (mg)
Campbell Soup Supply Co. Food Processing 47.17 137.68
San Joaquin County French Camp Correctional Facility 9.76 91.36 Northern California Youth Center Correctional Facility 7.63 74.54 Niagara 811 Zephyr Bottle Water Supply 6.95 72.86
Yosemite Foods Food Processing 7.32 70.12
Niagara(1) Bottle Water Supply 5.51 57.88
Aramark Commercial/Industrial Laundry 3.91 39.14
DTE Stockton Electric Generation Facility 4.35 33.65
California Health Care Facility Health care 3.24 31.05
Unifirst Corp Commercial/Industrial Laundry 3.25 26.04
____________
(1) Niagara includes multiple accounts billed to the same address.

Source: City of Stockton
Largest Users by Revenue. The table below shows the 10 largest users (unaudited) of the Wastewater System based on revenue for Fiscal Year 2022-23.

Table 3
City of Stockton Wastewater System
Ten Largest Users by Revenue
Fiscal Year 2022-23
Fiscal Year
2022-23 Revenues
Name Industry/Type of Business Amount Percent
Niagra(1) Bottled Water Supplier $672,377 0.92%
PW FUND B LP Financial Services 207,778 0.28
Trader Joe’s Company Food Processing 118,570 0.16
Cintas Corp Commercial/Industrial Laundry 87,975 0.12
Prologis Real Estate Investment 87,867 0.12
Amazon Distribution Center Distribution Center 78,230 0.11 KeHE Distributers - NCA Food Distribution 66,306 0.09
Simpson Manufacturing Co Inc Building Manufacturer 61,246 0.08 EGMR NORCAL LOGISTICS CTR LLC Distribution Center 61,169 0.08 ArcBest Transportation 60,321 0.08
SUBTOTAL $1,501,863 2.03%
All Others Various $71,539,004 97.94%
TOTAL $73,040,867 100.00%
____________
(1) Niagara includes multiple accounts billed to same address.

Source: City of Stockton
EXHIBIT 5 762
Rate Setting, Billing, and Collection Procedures
Rate Setting. In accordance with California law, the City Council may, from time to time and at its discretion, fix, alter, change, amend or revise any user fees, connection charges and all other fees related to the Wastewater System. No other governmental authority, board, body or commission has jurisdiction over or is required to approve the Wastewater System rates established by the City Council. However, the ability of the City to increase user fees related to the Wastewater System is subject to the limitations imposed by Proposition 218. See “CONSTITUTIONAL AND STATUTORY LIMITATIONS ON TAXES AND APPROPRIATIONS” herein.

Wastewater Rate Study. The City has contracted with HDR Engineering, Inc. (“HDR”) to conduct a new 2024 wastewater rate study (the “2024 Wastewater Rate Study”). In accordance with the California state law, requiring that billing for wastewater service be based on water consumption, the Wastewater System will use the results of the 2024 Wastewater Rate Study to establish equitable rate schedules for both consumptionbased and flat-rate water usage. The 2024 Wastewater Rate Study included review of a 10-year CIP to ensure adequate future revenue to construct and maintain the Wastewater System infrastructure. The 2024 Wastewater Rate Study is currently underway and the City currently expects it to be completed in the summer of 2024, and be subsequently adopted by City Council in late 2024. Once the 2024 Wastewater Rate Study is approved, it can be viewed online at www.stocktonca.gov/files/218RateStudyReport.pdf or a copy can be obtained by contacting the City Clerk, City of Stockton, 425 North El Dorado Street, Stockton, California 95202.

In 2019, the City contracted with HDR to conduct a wastewater rate cost of service study (the “2019 Wastewater Rate Study”. On May 21, 2019, the City Council approved a resolution (“Resolution No. 2019-05- 21-1506”), authorizing annual wastewater rate increases based upon a user classification, that became effective commencing July 1, 2019 and on each July 1 thereafter, commencing July 1, 2020 through July 1, 2023 as recommended in the 2019 Wastewater Rate Study.

Billing. Wastewater, water, and stormwater services are considered “ready to use” and are billed monthly as long as the account remains open. Bills for City utility services are issued monthly by the City.

Within the Service Area, City customers are billed for all applicable utility services (water, wastewater, storm water, and garbage collection) on a unified bill issued by the City.

Collection. Utility bills are due 18 days from the date of billing and become delinquent 25 days thereafter. If such bills remain unpaid on the 26th day after billing a 10% penalty is assessed, and an additional 1% penalty is assessed for each additional month that charges remain unpaid. Postmark dates are not accepted as received by dates. If wastewater service is terminated due to unpaid delinquent charges, wastewater service is not to be restored or provided until all delinquent charges and associated service charges and fees, reconnection charges have been paid in full, or an amortization agreement has been authorized by the City or its authorized agent for billing and collection pursuant to Sections 779 or 10010 of the State Public Utilities Code or other applicable statute or regulation. Delinquent balances may result in the recording of a lien or assessment against the property where service is provided.

Any partial payments of a unified bill received by the City are applied to pay, in full, utility charges in the following priority: storm water, Wastewater System, water, and garbage collection. Any amounts remaining unpaid would be subject to an amortization agreement, which the City would enforce in the event of non-payment of such amortization agreement as described above.

Rates, Fees and Charges
The Wastewater System receives moneys from two primary sources: (i) monthly sewer service charges and connection fees; and (ii) interest income.

EXHIBIT 5 763
Monthly Wastewater Service Charges. Customers of the Wastewater System are billed monthly sewer service charges based on a user classification: residential, commercial, institutional, and industrial and whether the customer is located within the City. Below is a summary of the method for calculating the monthly sewer charges and the rates for Fiscal Year 2023-24.

Residential. Single family residential users of the Wastewater System are billed a flat monthly charge of $55.68. Non-City customers received a discount on the flat monthly charge based on prior agreements to credit them for collection system charges for which they receive no benefit. Multifamily and apartment residential users are also billed a slightly lower amount per dwelling unit.

Commercial. Commercial users of the Wastewater System are billed the greater of a minimum charge of $26.83 per month, with a discount for Non-City customers, plus a volume charge based on one-hundred cubic feet of metered sewage effluent measured. Different volume charges are applied depending upon whether the user is classified as a low, medium or high strength discharger into the Wastewater System.

Institutional. Institutional users, such as government facilities, hospitals and schools of the Wastewater System are billed based on their type of business activity, with a discount for Non-City customers.
• Low Strength Discharge Fee. Institutional users classified as low strength are charged a minimum charge $26.83 plus a volume charge based on $2.22 per 100 cubic feet of metered sewage effluent.
• Medium Strength Discharge Fee. Institutional users classified as medium strength are charged a minimum charge of $26.83 plus a volume charge based on $2.70 per 100 cubic feet of metered sewage effluent.
• High Strength Discharge Fee. Institutional users classified as high strength are charged a minimum charge of $26.83 plus a volume charge based on $4.54 per 100 cubic feet of metered sewer effluent.

Schools. The City bills schools for wastewater service based upon the number of students, based upon average daily attendance (“ADA”), attending the institution at a rate of $1.30 per student per day.

Industrial. Industrial users of the Wastewater System are charged a fixed monthly administrative charge of $26.83, plus additional charges based upon capacity, in addition to annual operation and maintenance costs, and monitoring charges. Capacity charges are $864.80 per million gallons per month; plus strength charges of $140.13 per 1,000 pounds of BOD and $102.88 per 1,000 pounds of total suspended solids (“TSS”). The annual operation and maintenance charges are $748.52 per million gallons; plus strength charges of $52.14 per 1,000 pounds of BOD and $83.45 per 1,000 pounds of TSS. In addition, industrial users are billed for actual cost of monitoring charges.

Historical and Current Rates. Pursuant to Resolution No. 2019-05-21-1506, the first increase in wastewater rates of 6% took effect on July 1, 2019, with subsequent increases of up to 6% in each Fiscal Year thereafter through Fiscal Year 2023-24. The adopted rates are comprised of: (i) fixed monthly charges based upon customer class; (ii) volume costs; and (iii) strength charges. Table 7 sets forth the approved wastewater rates for Fiscal Years 2019-20 through 2023-24. The 2024 Wastewater Rate Study is currently underway and the City currently expects it to be completed in the summer of 2024, and be subsequently adopted by City Council in late 2024. Once the 2024 Wastewater Rate Study is approved, it can be viewed online at www.stocktonca.gov/files/218RateStudyReport.pdf or a copy can be obtained by contacting the City Clerk, City EXHIBIT 5 764
of Stockton, 425 North El Dorado Street, Stockton, California 95202. See “Rate Setting, Billing, and Collection Procedures – Wastewater Rate Study,” above.
[Remainder of Page Intentionally Left Blank]
EXHIBIT 5 765
Table 4
City of Stockton
Wastewater System
Schedule of Current and Approved Rates, Charges and Effective Dates Fiscal Years
2019-20 2020-21 2021-22 2022-23 2023-24
Category Fixed Flow Other(2) Fixed Flow Other(2) Fixed Flow Other(2) Fixed Flow Other(2) Fixed Flow Other(2) Residential Charge
(Per Dwelling Unit)
Single-Family & Condo (City) $44.10 – – $46.75 – – $49.56 – – $52.53 – – $55.68 – – Single-Family & Condo (Non-City) 40.22 – – 42.63 – – 45.19 – – 47.90 – – 50.77 – – Multi-Family (City) 41.55 – – 44.04 – – 46.68 – – 49.48 – – 52.45 – – Multi-Family (Non-City) 37.27 – – 39.51 – – 41.88 – – 44.39 – – 47.05 – – Apartments (City) 37.68 – – 39.94 – – 42.34 – – 44.88 – – 47.57 – – Apartments (Non-City) 33.08 – – 35.06 – – 37.16 – – 39.39 – – 41.75 – – Commercial/Institutional(1)
Fixed Changes
Fixed Monthly Charge (City) 21.25 – – 22.53 – – 23.88 – – 25.31 – – 26.83 – – Fixed Monthly Charge (Non-City) 18.66 – – 19.78 – – 20.97 – – 22.23 – – 23.56 – – Consumption Charges ($/CCF)(3)
Commercial/Institutional-Low strength – 1.75 – – 1.86 – – 1.97 – – 2.09 – – 2.22 – Commercial/ Institutional -Med strength – 2.14 – – 2.27 – – 2.41 – – 2.55 – – 2.70 – Commercial/ Institutional -High strength – 3.59 – – 3.81 – – 4.04 – – 4.28 – – 4.54 – Schools/Churches ($/ADA)(4) – 1.03 – 1.09 – 1.16 – 1.23 – 1.30 Industrial
Fixed Monthly Charge 21.25 – – 22.53 – – 23.88 – – 25.31 – – 26.83 – – Consumption Charges
Industrial-Flow ($/MG)(5) – 592.90 – – 628.47 – – 666.18 – – 706.15 – – 748.52 – Industrial-BOD ($/Klbs)(6) – 41.30 – – 43.78 – – 46.41 – – 49.19 – – 52.14 – Industrial-SS ($/Klbs)(6) – 66.10 – – 70.07 – – 74.27 – – 78.73 – – 83.45 – Admin/Standby-by Charge
Industrial-Flow ($/MG)(5) – – 685.00 – – 726.10 – – 769.67 – – 815.85 – – 864.80 Industrial-BOD ($/Klbs)(6) – – 111.00 – – 117.66 – – 124.72 – – 132.20 – – 140.13 Industrial-SS ($/Klbs)(6) – – 81.50 – – 86.39 – – 91.57 – – 97.06 – – 102.88 ____________
(1) Rates are based upon a fixed charge per month plus the flow per one hundred cubic feet (HCF). (2) Charged on the basis of the average daily attendance (ADA). (3) CCF = one hundred cubic feet.
(4) ADA = average daily attendance.
(5) MG = million gallons
(6) Klbs = one thousand pounds.

Source: City of Stockton.

EXHIBIT 5 766
Connection Fees. One-time charges (“Connection Fees”) are levied by the City to recover costs incurred for providing capacity in the Wastewater System required by new users. The amount of such fees collected is therefore subject to the pace of development in the Service Area.

Connection Fees have been in effect in the City since Fiscal Year 1976-77. On July 6, 1988, the City Council adopted an ordinance creating and establishing the authority for imposing and charging public facilities fees (“Public Facilities Fees”). On September 12, 1988, the City Council adopted a resolution establishing and imposing Public Facilities Fees, including Connection Fees, to be paid at the time of issuance of a building permit for development and are used to finance the acquisition, construction and improvement of public facilities needed as a result of new development.

The historical connection fee revenues received by the City are set forth in the table below.

Table 5
City of Stockton Wastewater System
Historical Connection Fee Revenues
(Fiscal Year Ended June 30)
($ in thousands)
2018-19 2019-20 2020-21 2021-22 2022-23
Connection Fee Revenues $1,452 $2,123 $4,521 $3,943 $2,455 ____________
Source: City of Stockton.

Interest Income. The Wastewater System receives additional income from interest income earned on funds available for use in operations and for application to capital facilities projects.

Delinquencies. Set forth in the table below is a summary of the amounts billed for charges for services and estimated to be uncollectible for the last five Fiscal Years. The amount estimated as uncollectible is determined at the end of each Fiscal Year and does not take into account any amounts that may be collected after the end of that Fiscal Year.

Table 6
City of Stockton Wastewater System
Uncollectible Charges for Services
(Fiscal Years)
2018-19 2019-20(1) 2020-21 2021-22 2022-23
Charges for Services $65,976,659 $69,851,118 $72,997,043 $76,884,317 $82,906,319 Amount Uncollectible(1) 3,526,090 6,035,462 4,712,089 8,936,561 5,924,674 Uncollectible % 5.35% 8.64% 6.46% 11.62% 7.15%
____________
(1) Represents the Fiscal Year end delinquent amount over four years, plus 3% of the amount delinquent more than 115 days which equals the amount at the end of the Fiscal Year that the City estimates will be uncollectible.

Source: City of Stockton.

Comparative Rates and Fees
Comparative Monthly Residential Wastewater Service Charges. The City’s standard residential charges are set forth in Table 7 below with a comparison to other comparable, neighboring cities.

EXHIBIT 5 767
Table 7
City of Stockton Wastewater System
Current Monthly User Fee Comparison
Residential Service/Residential Charge
[To be updated]
City Monthly User Fees(1)
Tracy
Pleasanton (PSRD)
Modesto
Manteca
Stockton 55.68
Brentwood
Lathrop-West
Lathrop-East
____________
(1) Rates shown for comparable cities are as of Fiscal Year 2023-24.

Source: City of Stockton, Municipal Utilities Department.

Comparative Residential Connection Fees. The current residential Connection Fees and a comparison to those of other Central Valley and Northern California cities are set forth in Table 8. City residential Connection Fees are included as part of the City’s Wastewater System Net System Revenues which are used, in part, to pay the 2024 Installment Payments.

Table 8
City of Stockton Wastewater System
Current Residential Wastewater Connection Fees Comparison (As of July 1, 2023)
[To be updated]
City Connection Fee(s)
Pleasanton
Brentwood
Lathrop
Stockton [5,300.00]
Modesto
Manteca
____________
Source: City of Stockton, Municipal Utilities Department.

Financial Policies and Practices
[City to confirm]
Reserve Policy. In 2006, to ensure sound fiscal management, preserve the discretion of the City Council in its resource allocation decisions, and to minimize the impact to citizens of potentially significant rate increases, the City established a reserve policy for all of its utilities, including the Wastewater System. The target reserve seeks to: (i) build a six-month reserve of the annual operating budget of the Wastewater System using a threeyear trend to project the actual amount; (ii) transfer all revenue exceeding expenses, after the payment of debt service and on-going capital project costs of the Wastewater System, into the reserve account until the target is met; and (iii) establish a rate stabilization account and transfer all remaining revenue exceeding expenses on an “as needed” basis; such as when an upcoming project is expected to significantly increase rates. The rate stabilization account will help distribute any rate increase over a period of time in lieu of a one-time increase.

EXHIBIT 5 768
As of June 30, 2024, six-month reserve was calculated to be approximately $33.6 million. As of June 30, 2024, the balance in the reserve was approximately $51.48 million, including the balance in the Rate Stabilization Fund in the amount of approximately $13.6 million. See also “SECURITY AND SOURCES OF PAYMENT FOR THE 2024 BONDS – Rate Stabilization Fund” herein.

Investment Policy. Funds held by the Wastewater System are invested pursuant to the City’s Investment Policy. The Investment Policy establishes three objectives in investing moneys under control of the City: safety, liquidity, and return on investment. The City Council is provided with monthly and quarterly investment reports.

A copy of the City’s Investment Policy can be viewed on its website.

Historical Debt Service Coverage
Table 9 sets forth historical revenues, expenses (based upon audited financial information) and debt service coverage for Fiscal Year 2018-19 through Fiscal Year 2022-23. The information set forth below has been excerpted from the financial statements of the City but certain non-cash items have been excluded and certain other adjustments have been made.

Table 9
City of Stockton Wastewater System
Historical Revenues, Expenses and Debt Service Coverage (Fiscal Years Ended June 30)
($ in thousands)
2018-19 2019-20 2020-21 2021-22 2022-23
Revenues
Rate Revenue(1) $65,977 $69,851 $72,997 $76,884 $82,906 Other Operating Income 1,456 6,111 888 1,625 1,487
Plus: Connection Fees 1,722 2,464 4,522 3,943 2,455
Plus: Interest Income 2,131 5,969 1,825 1,464 1,669
Deposit to Rate Stabilization Fund – – – – –
Total Revenues $71,286 $82,314 $80,232 $83,916 $88,517
Expenditures
Operation and Maintenance $29,967 $32,362 $36,382 $44,388 $43,786 General and Administrative 12,053 15,593 9,321 8,899 9,343 Total Expenditures $42,020 $47,955 $45,703 $53,287 $53,129 Net Revenues Available for Debt Service $29,266 $34,360 $34,529 $30,629 $35,388 Debt Service
2014 Bonds $6,495 $6,487 $6,492 $6,488 $6,488
2019 Bond Anticipation Notes - 1,009 1,659 147 -
2020 WIFIA Loan - - - 378 1,296
Annual Debt Service $6,495 $7,496 $8,151 $7,013 7,784
Net Revenue Available for Capital and Other $22,771 $26,863 $26,378 $23,616 $27,604 Debt Service Coverage (Minimum 1.15x)(2) 4.51x 4.58x 4.24x 4.37x 4.55x ____________
(1) Approved annual rate increases of 6.0% per year through fiscal year ending June 30, 2024. (2) Net Revenues divided by Total Debt Service.

Source: City of Stockton for revenues and expenses and Del Rio Advisors, LLC, for debt service coverage information.

The audited financial statements for the Wastewater System for the Fiscal Year ended June 30, 2023 are attached as APPENDIX B–“AUDITED FINANCIAL STATEMENTS OF THE CITY OF STOCKTON FOR THE YEAR ENDED JUNE 30, 2023.” These statements should be read in their entirety.

EXHIBIT 5 769
Projected Debt Service Coverage
Revenues, expenses and debt service coverage for Fiscal Years 2023-24 (budgeted) and Fiscal Years 2024-25 through 2028-29 (projected) are set forth in Table 10, based on certain assumptions described in the footnotes to Table 10. The following projections are based on the current circumstances of the City and currently available information and are believed to be reasonable. The projections may be affected by various factors and there can be no assurance that they will be achieved and any variation from projected operating results may be material.

Table 10
City of Stockton Wastewater System Fund
Projected Revenues, Expenses and Debt Service Coverage
($ in thousands)
2023-24
(Budgeted)
2024-25
(Projected)
2025-26
(Projected)
2026-27
(Projected)
2027-28
(Projected)
2028-29
(Projected)
Revenues
Rate Revenue(1) $91,602 $94,350 $97,181 $100,096 $103,099 $106,192 Other Operating Income(2) 1,617 1,650 1,683 1,717 1,751 1,786 Plus: Connection Fees(3) 2,835 2,863 2,892 2,921 2,950 2,980 Plus: Interest Income(4) 1,611 1,789 1,452 1,462 1,576 1,590 Deposit to Rate Stabilization Fund – – – – – –
Total Revenues $97,665 $100,652 $103,208 $106,196 $109,376 $112,548 Expenditures
Operation and Maintenance(5) $63,875 $62,791 $64,675 $66,615 $68,613 $70,671 General and Administrative(6) 12,762 13,400 14,070 14,774 15,513 16,289 Total Expenditures $76,636 $76,191 $78,745 $81,389 $84,126 $86,960 Net Revenues Available for Debt Service $21,029 $24,461 $24,463 $24,807 $25,250 $25,588 Debt Service
2014 Bonds(7) $6,486 $5,968 - - - -
2020 WIFIA Loan 1,296 1,296 $1,296 $1,296 $1,296 $1,296 2021 SRF Loan - 1,603 1,791 1,791 1,791 1,791
2024 Bonds(8) 706 6,491 6,491 6,491 6,491 6,492
Annual Debt Service $7,782 $9,563 $9,578 $9,577 $9,578 $9,579 Net Revenue Available for Capital and Other $13,247 $14,898 $14,885 $15,230 $15,672 $16,009 Debt Service Coverage (Minimum 1.15x)(9) 2.70x 2.56x 2.55x 2.59x 2.64x 2.67x __________
(1) Assumes approved annual rate increases of 6.0% per year through fiscal year ending June 30, 2024, and annual rate increases of 3.0% per year for fiscal year ending June 30, 2025 and thereafter. (2) For fiscal year ending June 30, 2025 and thereafter, growth in Other Operating Income is assumed at 2.0% per year. (3) For fiscal year ending June 30, 2025 and thereafter, growth in new connections assumed at 1.0% per year. (4) For fiscal year ending June 30, 2025 and thereafter, growth in interest earnings assumed at 1.0% per year. (5) For fiscal year ending June 30, 2025 and thereafter, growth in inflation in O&M assumed at 3.0% per year. (6) For fiscal year ending June 30, 2025 and thereafter, growth in inflation in General and Administrative Expenses assumed at

5.0% per year.
(7) Assumes that the 2014 Bonds redeemed in full with proceeds from the sale of the 2024 Bonds. Preliminary, subject to change. (8) Preliminary, subject to change.
(9) Net Revenues divided by Total Debt Service.

Source: City of Stockton for revenues and expenses and Del Rio Advisors, LLC, for debt service coverage information.

EXHIBIT 5 770
Projected Reserve Balances
The City’s Wastewater System reserve balances for Fiscal Years 2023-24 (budgeted) and Fiscal Years 2024-25 through 2028-29 (projected) are set forth in Table 11. The following projections are based on the current circumstances of the City and currently available information and are believed to be reasonable. The projections may be affected by various factors and there can be no assurance that they will be achieved and any variation from projected operating results may be material.

Table 11
City of Stockton
Wastewater System Reserve Balances
($ in thousands)
2024
(Budgeted)
2025
(Projected)
2026
(Projected)
2027
(Projected)
2028
(Projected)
2029
(Projected)
Beginning Balance $89,504 $101,350 $77,518 $67,725 $78,474 $79,146 Sewer Fund Operating Cash 32,835 42,924 38,380 49,128 49,801 50,510 Sewer Connection Fee Fund 5,450 5,450 5,450 5,450 5,450 5,450 Sewer Capital Fund 46,500 9,665 3,293 3,293 3,293 3,293 Rate Stabilization Fund 13,196 13,196 13,196 13,196 13,196 13,196 WIFIA Reserve Fund Balance 3,369 4,492 5,615 5,615 5,615 5,615 SRF Reserve Fund Balance - 1,791 1,791 1,791 1,791 1,791 Ending Balance $101,350 $77,518 $67,725 $78,474 $79,146 $79,855 Reserves as Percentage of Annual
Expenditures (Excludes Sewer Capital
Fund, WIFIA and SRF Reserve Funds)
(Target 50% or 180 Days of O&M) (1) 67.18% 80.81% 72.42% 83.27% 81.36% 79.53% (1) Total Reserve Balance Divided by Total Expenditures Source: City of Stockton and Del Rio Advisors, LLC.

Capital Improvement Program
The City maintains a five-year Capital Improvement Plan (the “CIP”) for the budgeting and planning of public projects throughout the City. The adoption of the Citywide CIP is governed by the City Charter. The CIP is updated annually by the City Council based upon available funding sources, anticipated capital needs and project priority.

The City’s current 5-year CIP was approved by the City Council on June 18, 2024 and includes approximately $145 million to fund projects necessary to upgrade the Stockton RWCF, to meet regulatory requirements, replace or rehabilitate aged infrastructure to meet current permitted capacity, including all of the costs of implementing portions of the CIEMP (described below). The City’s current CIP [does/doesn’t] provide for borrowing [in the amount of $_________].

The City’s 2011 Capital Improvement and Energy Management Plan (“CIEMP”) was approved and adopted by the City Council on August 9, 2011 to include 46 near-term projects to the Stockton RWCF required to maintain compliance with the prior NPDES permit. The “Stockton RWCF Modifications Project,” a major component of the CIEMP, was a multi-year $248 million project to repair, replace and upgrade the treatment process units at the Stockton RWCF in order to meet treated wastewater discharge limits regulated by the Central Valley Regional Water Quality Control Board by June 1, 2024. As of the date hereof, completion of the RWCF Modifications Project has been extended to January 2025. Approximately [___] million of the $248 million Stockton RWCF Modifications Project has been debt financed.

EXHIBIT 5 771
Funding Sources. [Discussion to come, including any planned borrowing] Expected Future Parity Obligations and/or Subordinate Obligations The City does not currently have plans to issue or incur additional Parity Obligations and/or Subordinate Obligations in connection with the Wastewater System.

Employees and Employee Benefits
Employees. Stockton MUD personnel oversee the system’s functions and maintain and repair the equipment and facilities, including the collection system and sanitary pump stations. For Fiscal Year 2024-25, the Stockton MUD has 233 budgeted full-time equivalent employees, with 117 full time equivalent employees allocable to the Wastewater System.

Currently, approximately 93% of all the Wastewater System employees are covered by negotiated agreements with four bargaining units. All four bargaining unit contracts are due to expire on June 30, 2026.

Employee Benefits Generally. The City contributes to two pension plans on behalf of Wastewater System employees: The Miscellaneous Plan of the City of Stockton (the “Miscellaneous Plan”), an agent multiple–employer defined benefit plan administered by the California Employees’ Retirement System (“CalPERS”) and the City of Stockton Retirement Enhancement Plan (the “REP”) administered by Public Agency Retirement Services (“PARS”), a multiple-employer agency trust that acts as a common investment and administrative agent for participating public entities in the State.

Substantially all full-time City employees, including employees of the Wastewater System, are eligible to participate in retirement benefit plans through a contract with the CalPERS. CalPERS provides retirement, disability, and death benefits to plan members and beneficiaries. CalPERS benefits are payable monthly for life in an amount equal to a certain percent of the employees highest annual salary. Benefit provisions and all other requirements are established by contract with CalPERS, State statue, and City ordinance. CalPERS acts as a common investment and administrative agent for participating public entities within the State. CalPERS is a contributory plan deriving funds from employee contributions as well as from employer contributions and earnings from investments.

The REP is a closed retirement plan that provides retirement benefits for Stockton MUD employees for the period when they worked for OMI-Thames Water Stockton, Inc. to cover retirement benefits between 2003 and 2008. See “ – PARS Retirement Enhancement Plan” below.

California Public Employees’ Retirement System. The following information concerning the California Public Employees’ Retirement System is excerpted from publicly available sources, which the City believes to be accurate. CalPERS is not obligated in any manner for payment of debt service on the 2024 Bonds and the assets of CalPERS are not available for such payment. CalPERS should be contacted directly at California Public Employees’ Retirement System, Lincoln Plaza Complex, 400 Q Street, Sacramento, California 95814, Telephone: 888-225-7377 for other information, including information relating to its financial position and investments.

Set forth below is information with respect to the Miscellaneous Plan for the entire City. CalPERS does not prepare nor are separate reports available for the Wastewater System. The City can only allocate costs of the Miscellaneous Plan to the Wastewater System to the extent such costs are allocable to employees of the Wastewater System.

The Miscellaneous Plan is available to full-time employees not enrolled in the Safety Plan. Part-time employees must meet specific criteria for participation. City employees are eligible for service or normal EXHIBIT 5 772
retirement at age 55 or older with a minimum of five years CalPERS service. The contribution requirements of the plan members and the City are established by CalPERS and may be amended.

For Fiscal Year 2022-23, there are a total of 967 budgeted full-time equivalent City employees participating in the Miscellaneous Plan of which [___] (or approximately [___]%) are budgeted for the Wastewater System.

Benefits Provided. CalPERS provides service retirement and disability benefits, the annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. The provisions and benefits for the Miscellaneous Plan in effect at June 30, 2023, are summarized as follows:

Miscellaneous Plan
Hire Date Prior to January 1, 2014 After January 1, 2014 Benefit Vesting Schedule 5 years service 5 years service Benefit Formula Tier I: 2% @ 55 years of age
Tier II: 2% @ 60 years of age
2% @ 62 years
Benefit Payments monthly for life monthly for life
Required Employee Contribution Rates 7.00% 6.75%
Required Employer Contribution Rates 9.86% 9.86%
____________
Source: Audited Financial Statements of the City of Stockton for the Year Ended June 30, 2023.

Employees Covered. At June 30, 2023 the following Miscellaneous Plan employees were covered under benefit terms:

Inactive employees or beneficiaries currently receiving benefits 1,595 Inactive employees entitled to but not yet receiving benefits 531 Active employees 967
TOTAL 4,093
Contributions. The City establishes rates based on an actuarially determined rate recommended by an independent actuary. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by the employee during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. For Fiscal Year 2022-23, the total Miscellaneous Plan employer contribution rate was 9.86% of wages. See “ – Discount Rate” below.

Net Pension Liability. The City’s net pension liability was measured as of June 30, 2022, using an annual actuarial valuation as of June 30, 2021, using standard update procedures.

Actuarial Assumptions. The total pension liability on June 30, 2022, the actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement:

EXHIBIT 5 773
Miscellaneous Plan
Valuation Date 6/30/2021
Measurement Date 6/30/2022
Actuarial Cost Method Entry-Age Normal Cost Method
Actuarial Assumptions:

Discount Rate 6.90%
Inflation 2.30%
Payroll Growth 2.80%
Projected Salary Increase Varies(1)
Mortality (2)
____________
(1) Depending on age, service and type of employment based on the 2021 CalPERS Experience Study for the period from 2001 to 2019.
(2) Pre-retirement and post-retirement mortality rates include generational mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries. For more details, please refer to the CalPERS Experience Study and review of Actuarial Assumptions report from November 2021 that can be found on the CalPERS website.

Source Audited Financial Statements of the City of Stockton for the Year Ended June 30, 2023.

Discount Rate. The discount rate used to measure the total pension liability for the June 30, 2022 valuation was 6.90% [Why CalPERS 6.8% as of June 30, 2022?]. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rate and that the City contributions will be made at statutorily required rates, actuarially determined. Based on those assumptions, the pension plan’s fiduciary net position was projected to be available to make all projected future benefit payments of currently active and inactive employees. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability.

The long-term expected rate of return on pension plan investments was determined using a buildingblock method in which expected future real rates of return (expected returns, net of pension plan investment expenses and inflation) are developed for each major asset class. The expected real rates of return by asset class are as follows:

Miscellaneous Plan
Asset Class Assumed Asset Allocation
Real Return Years
1-10(a)(b)
Global Equity – cap weighted 30% 4.45%
Global Fixed – non-cap weighted 12 3.84
Private Equity 13 7.28
Treasury 5 0.27
Mortgage Backed Securities 5 0.50
Investment Grate Corporates 10 1.56
High Yield 5 2.27
Emerging Market Debt 5 2.48
Private Debt 5 3.57
Real Assets 15 3.21
Leverage (5) (0.59)
TOTAL 100%
____________
(a) An Expected inflation of 2.3% used for this period. (b) Figures are based on the 2021-22 Aset Liability Management Study.

Source Audited Financial Statements of the City of Stockton for the Year Ended June 30, 2023.

EXHIBIT 5 774
Changes in the Net Pension Liability.

Miscellaneous Plan
Total Pension
Liability
(a)
Plan
Fiduciary
Net Position
(b)
Net Pension
Liability
(a) – (b)
Balance at 06/30/2021 $780,242,258 $722,389,028 $57,853,230 Changes for the year:

Service cost 12,191,998 – 12,181,998
Interest 52,840,932 – 52,840,932
Changes of Assumption 8,143,881 – 8,143,881
Differences between expected and actual experience (6,779,583) – (6,779,583) Plan to plan resource movement – – –
Contributions employer – 20,485,648 (20,485,648)
Contributions employee – 4,857,018 (4,857,018)
Net investment income – (54,203,709) 54,203,709
Benefit payments, including refunds of employee (43,773,909) (43,773,909) – Administrative expense – (450,005) 450,005
Other Changes – – –
Net Changes 22,613,319 (73,084,957) 95,698,276
Balances at 06/30/2022 $802,855,577 649,304,071 $153,551,506 ____________
Source Audited Financial Statements of the City of Stockton for the Year Ended June 30, 2023.

Sensitivity of the Net Pension Liability to Changes in the Discount Rate. The following table presents the net pension liability of the City for the Miscellaneous Plan, calculated using the discount rate of 6.90%, as well as what the net pension liability of the City would be it were calculated using a discount rate that is onepercentage point lower (5.90%) or one-percentage point higher (7.90%) than the current rate.

Miscellaneous Plan
1% Decrease Current Discount 1% Increase
Rate =5.90% Rate =6.90% Rate = 7.90%
Net pension liability $255,399,878 $153,551,506 $69,160,881 ____________
Source Audited Financial Statements of the City of Stockton for the Year Ended June 30, 2023.

Miscellaneous Plan Fiduciary Net Position. Detailed information about the fiduciary net position for the Miscellaneous Plan is available from CalPERS in the separately issued CalPERS financial report.

Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions. Information on the deferred outflows of resources and deferred inflows of resources related to pensions for the Miscellaneous Plan is presented in Note 12 of the City’s Fiscal Year 2022-23 Annual Comprehensive Financial Report. See APPENDIX B – “AUDITED FINANCIAL STATEMENTS OF THE CITY OF STOCKTON FOR THE YEAR ENDED JUNE 30, 2023” attached hereto.

PARS Retirement Enhancement Plan. The PARS Retirement Enhancement Plan, a closed retirement plan, provides retirement benefits for Stockton MUD employees for the period during which they worked for OMI/Thames Water Stockton, Inc. (“OMI-Thames”). The City entered into an agreement with PARS to contribute to a supplemental plan for employees joining or re-joining City service after having been employed between 2003 and 2008 by OMI-Thames. OMI-Thames employees did not earn CalPERS service credit during the period of time OMI-Thames operated the City utilities.

EXHIBIT 5 775
Benefits Provided. Upon retirement, the REP benefits will supplement any CalPERS retirement for which those employees are eligible. Eligibility for REP, other than employment with OMI-Thames between 2003 and 2008, is defined as concurrent retirement with CalPERS and the City upon attaining age 55 and a minimum of five years of full-time continuous service with the City, with at least one year of continuous City service after March 1, 2008.

As of June 30, 2023, a total of 82 employees were covered by the REP, consisting of 55 inactive employees or beneficiaries currently receiving benefits and 27 active employees.

Contributions. The City establishes rates based on an actuarially determined rate recommended by an independent actuary. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by the employee during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees.

Net Pension Liability. The City’s net pension liability was measured as of June 30, 2023, using an annual actuarial valuation as of June 30, 2022, using standard update procedures.

Actuarial Assumptions. The total pension liability on June 30, 2023, the actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement:

Enhancement Plan
Valuation Date 6/30/2022
Measurement Date 6/30/2023
Actuarial Cost Method Entry-Age Normal Cost Method
Actuarial Assumptions:

Discount Rate 6.50%
Inflation 2.30%
Payroll Growth 2.80%
Projected Salary Increase 3.34% - 9.01%(1)
Investment Rate of Return 6.50%
Mortality (2)
____________
(1) Depending on years of service.
(2) Pre-retirement: Consistent with Non-Industrial rates used to value the CalPERS Miscellaneous Public Agency Pension Plans after June 30, 2021. Post-retirement: Consistent with Non-Industrial rates used to value the CalPERS Miscellaneous Public Agency Pension Plans after June 30, 2021
Source: Audited Financial Statements of the City of Stockton for the Year Ended June 30, 2023.

Discount Rate. The discount rate used to measure the total pension liability was 6.50%. The projection of cash flows used to determine the discount rate assumed that employee contributions will be made at the current contribution rate and that the City contributions will be made at rates equal to the difference between actuarially determined contribution rates and the employee rate. Based on those assumptions, the pension plan’s fiduciary net position was projected to be available to make all projected future benefit payments of currently active and inactive employees. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability.

Additional information with respect to the REP, including changes in net pension lability, target investment allocation, sensitivity of the net pension liability, changes in the discount rate and deferred outflows of resources and deferred inflows of resources related to pension can be found in Note 12 to the Audited Financial Statements of the City. See APPENDIX B – “AUDITED FINANCIAL STATEMENTS OF THE CITY OF STOCKTON FOR THE FISCAL YEAR ENDED JUNE 30, 2023” attached hereto.

Changes in the Net Pension Liability.

EXHIBIT 5 776
Enhancement Plan
Total Pension
Liability
(a)
Plan
Fiduciary
Net Position
(b)
Net Pension
Liability
(a) – (b)
Balance at 06/30/2022 $12,935,662 $9,620,909 $3,314,753 Changes for the year:

Service cost 114,224 – 114,224
Interest on total pension liability 826,109 – 826,109
Effect of Economic/demographic gains or losses 300,141 – 300,141 Effect of assumptions changes or inputs 74,188 – 74,188 Benefit payments (691,937) (691,937) –
Employer Contributions – 854,389 (854,389)
Net Investment Income – 682,430 (682,430)
Administrative Expense – (16,773) 16,773
Net Changes 662,725 828,109 (205,384)
Balances at 06/30/2023 $13,558,387 $10,449,018 $3,109,369 ____________
Source Audited Financial Statements of the City of Stockton for the Year Ended June 30, 2023.

Sensitivity of the Net Pension Liability. The following presents the net pension liability of the City, calculated using the discount rate of 6.50 percent, as well as what the City’s net pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower (5.50 percent) or 1-percentage-point higher (7.50 percent) than the current rate:

Enhancement Plan
1% Decrease Current Discount 1% Increase
Rate =5.50% Rate =6.50% Rate = 7.50%
Net pension liability $4,714,537 $3,109,369 $1,755,989
____________
Source Audited Financial Statements of the City of Stockton for the Year Ended June 30, 2023.

Health Insurance Premiums. The City also provides health benefits to certain employees and their dependents for medical, dental and vision care. For Fiscal Years 2019-20, 2020-21, 2021-22, and 2022-23, the City paid premiums in the amount of $1.557 million, $[____] million, $[____] million, and $[____] million, respectively for Wastewater System employees. For Fiscal Year 2023-24, the amount paid for premiums for Wastewater System employees is budgeted to be $[____] million. The City pays a portion of the premium for health benefits for a small group of Stockton MUD employees who were reinstated to City employment on March 1, 2008, when Stockton MUD operations were transferred back to the City. See also “ – PARS Retirement Enhancement Plan” above. The remainder is paid for by the employee and varies by the number of dependents covered. Each employee and dependent is covered by a life insurance policy and the employee also is covered by a long-term disability policy.

Post-Employment Health Care Benefits. The City does not provide post-employment health care benefits to its retirees and does not have any liability listed in its financials to account for such a benefit.

Regulatory Compliance
Wastewater treatment plants are required under State and federal law to meet various requirements for the disposal/discharge of wastewater. These standards are set forth in National Pollution Discharge Elimination System (the “NPDES”) permits issued and modified every five years by the California Regional Water Quality Control Board-Central Valley Region (the “RWQCB”). The City operates the Stockton RWCF under NPDES EXHIBIT 5 777
Permit No. CA0079138 (Order R5-2020-0007-01) issued by the RWQCB. The current NPDES permit (the “Permit”) became effective on July 1, 2023 and expires June 20, 2024. The Permit prescribes wastewater discharge requirements for the Stockton RWCF as set forth in the California Code of Regulations, Title 22, Division 4, Chapter 3 (“Title 22”). Title 22 requires that wastewater be adequately disinfected, oxidized, coagulated, clarified and filtered prior to reuse on food crops, parks, playgrounds, school yards and other areas of similar public access. The City, however, does not have any current plans to reuse treated wastewater for these purposes because the quantity discharged to the San Joaquin River is the basis of the City’s water right for the Delta Water Supply Project, which treats and distributes potable water to the City’s drinking water system. 2024 BONDOWNERS’ RISKS
This section provides a general overview of certain risk factors which should be considered, in addition to the other matters set forth in this Official Statement, in evaluating an investment in the 2024 Bonds. This section is not meant to be a comprehensive or definitive discussion of the risks associated with an investment in the 2024 Bonds, and the order in which this information is presented does not necessarily reflect the relative importance of various risks. Potential investors in the 2024 Bonds are advised to consider the following factors, among others, and to review this entire Official Statement to obtain information essential to the making of an informed investment decision. Any one or more of the risk factors discussed below, among others, could lead to a decrease in the market value and/or in the marketability of the 2024 Bonds or the ability of the City to make 2024 Installment Payments. There can be no assurance that other risk factors not discussed herein will not become material in the future.

General
The 2024 Installment Payments supporting the 2024 Bonds are payable solely from Net System Revenues pursuant to the 2024 Contract. If for any of the reasons described below, or for any other reason, the City does not collect sufficient Net System Revenues to pay the 2024 Installment Payments, the City will not be obligated to utilize any other of its funds, other than amounts available in the 2024 Reserve Account and certain other amounts on deposit in the funds and accounts established under the 2024 Indenture to pay debt service on the 2024 Bonds. See also “SECURITY AND SOURCES OF PAYMENT FOR THE 2024 BONDS – 2024 Reserve Account.”
Rate Covenant Not a Guarantee of Sufficient Net System Revenues The ability of the City to pay the 2024 Installment Payments depends on the ability of the City to generate Net System Revenues in the levels required by the 2024 Contract. Although the City has covenanted in the 2024 Contract to impose rates, fees and charges as more particularly described herein under “SECURITY AND SOURCES OF PAYMENT FOR THE 2024 BONDS – Rate Covenant,” and expects that sufficient System Revenues will be generated through the imposition and collection of such rates, fees and charges and other System Revenues described herein, there is no assurance that such imposition of such rates, fees and charges or other System Revenues will result in the generation of Net System Revenues in the amounts required by the 2024 Contract. The City’s covenant does not constitute a guarantee that sufficient Net System Revenues will be available to pay the 2024 Installment Payments.

System Expenses and Capital Costs
There can be no assurance that the City’s actual Operation and Maintenance Costs, other expenses or capital costs will be consistent with the projections in this Official Statement. Increases in expenses and/or capital costs including, but not limited to, personnel costs, regulatory compliance costs, changes in technology, and aging facilities could require an increase in rates or charges in order to comply with the rate covenant. Such increases could be material.

EXHIBIT 5 778
The Wastewater System’s facilities are aging and in need of repair or replacement. See “THE WASTEWATER SYSTEM – Capital Improvement Plan.” Long-lived facilities result in decreased reliability due to unplanned outages and place a greater maintenance burden on Wastewater System’s operations.

Private sewer laterals are not owned or operated by the City; however, faulty private sewer laterals can increase inflow and infiltration into the Wastewater System’s facilities. Excessive inflow and infiltration into the facilities due to faulty sewer laterals may cause damage to the Wastewater System’s facilities.

No Acceleration of 2024 Bonds or 2024 Installment Payments The 2024 Indenture does not contain a provision allowing for the acceleration of the 2024 Bonds in the event of a payment default or other default under the terms of the 2024 Bonds or the 2024 Indenture. The 2024 Contract does not contain a provision allowing for the acceleration of the 2024 Installment Payments in the event of a payment default or other default under the terms of the 2024 Contract.

Initiatives; Changes in Law
In recent years several initiative measures have been proposed or adopted which affect the ability of local governments to increase taxes and rates. Article XIII A, Article XIII B, Article XIII C, Article XIII D, and Proposition 26, were adopted as measures that qualified for the ballot through California’s initiative process.

From time to time, other initiative measures could be adopted, which may place further limitations on the ability of the State, the City or local districts to increase revenues or to increase appropriations which may affect the City’s revenues or its ability to expend its revenues. There is no assurance that the electorate or the State Legislature will not at some future time approve additional limitations which could affect the ability of the City to implement rate increases which could reduce Net System Revenues and adversely affect the security for the 2024 Bonds. See “CONSTITUTIONAL AND STATUTORY LIMITATIONS ON TAXES AND APPROPRIATIONS” herein.

Statutory and Regulatory Impact
Laws and regulations governing transmission, treatment and delivery of wastewater are enacted and promulgated by government agencies on the federal, State and local levels. Compliance with these laws and regulations may be costly, and, as more stringent standards are developed, these costs will likely increase. In addition, claims against the City for violations of regulations with respect to its facilities and services could be significant. Such claims are payable from Revenues or from other legally available sources.

Although the City has covenanted in the 2024 Contract to fix, prescribe and collect rates and charges for the sewer service during each Fiscal Year sufficient to yield the debt service coverage required by the 2024 Contract, no assurance can be given that the cost of compliance with such laws and regulations will not materially adversely affect the ability of the City to generate Net System Revenues in the amounts required by the 2024 Contract and to pay debt service on the 2024 Bonds. Higher regulatory standards could materially increase the cost to the City of providing wastewater services.

Climate Change
The adoption by the State of the California Global Warming Solutions Act of 2006 (AB 32) and subsequent companion bills demonstrate the commitment by the State to take action and reduce greenhouse gases (“GHG”) to 1990 levels by 2020 and 80% below 1990 levels by 2050. The State Attorney General’s Office, in accordance with SB 375, now requires that local governments examine local policies and large-scale planning efforts to determine how to reduce greenhouse gas emissions. Additionally, in 2006, the State adopted Senate Bill No. 32, which established a revised Statewide GHG emission reduction target of 40% below 1990 levels by 2030.

EXHIBIT 5 779
Following the adoption of its 2035 General Plan, which outlined development goals and stipulations for the reduction of City‐wide GHG emissions, the City was sued by the Sierra Club alleging that the City had violated CEQA in approving the 2035 General Plan. In order to avoid further litigation, in October 2008, the City entered into a settlement agreement with the Sierra Club and the Attorney General, who also raised concerns about the adequacy of the EIR under CEQA, including but not limited to the failure of the EIR to incorporate enforceable measures to mitigate GHG emission impacts that would result for the adoption of the 2035 General Plan. The settlement agreement required the City to address GHG reductions in a variety of ways, including through the preparation of a Climate Action Plan (discussed below) and programs to support the development of 18,400 new housing units within the City as it existed in 2008 with at least 4,400 of those units located within the greater downtown area. As a result, the City enacted the Envision Stockton 2040 General Plan (the “2040 General Plan”) on December 4, 2018. The 2040 General Plan represents substantial changes in policy framework for future development in the City compared to the 2035 General Plan, with a fundamental shift from emphasizing growth in “outfill” areas on the periphery of the City to focusing new construction and redevelopment in existing “infill” neighborhoods. A copy of the 2040 General Plan is available on the City’s website.

During the development of its Climate Action Plan (a “CAP”), the City evaluated the effect of the State’s reduction measures and evaluated a wide range of potential local GHG reduction measures to examine the feasibility, cost, and benefits of potentially meeting the interim reduction target. Although technically feasible to meet the interim reduction target, it was City’s judgment that meeting the target would require some measures or actions that were infeasible under then-current economic conditions in the City, would result in short‐ and near‐term financial impacts that could affect economic recovery in the City, and would affect the ability of the City to invest in energy efficiency and other GHG reduction strategies in the long run.

The City designed the CAP to rely, for the most part, on voluntary, incentive‐based measures for existing development, flexible performance‐based measures for new development, and only uses mandatory measures for new development where required by prior State or local mandates (such as for water conservation) or where advantageous to the City. By providing flexibility, the intent is that the City government, residences, and businesses would employ the most cost‐effective methods to reduce GHG emissions.

The City approved a CAP on December 2, 2014 that includes an interim GHG emissions reduction goal for the purposes of initial CAP development of 15% below 2005 levels by 2020, and the City certified the Final EIR for the Envision Stockton 2040 General Plan on December 4, 2018.

Climate change concerns are leading to new laws and regulations at the federal, State and local levels.

Research suggests that the State will experience hotter and drier conditions, reductions in winter snow and increases in winter rains, sea level rise, significant changes to the water cycle, increased occurrences of extreme and unpredictable weather events, and increased catastrophic wildfires and severity of flood events. The compound impacts of which will affect economic systems throughout the State, including within the City. The City is unable to predict the impact that such laws and regulations, if adopted, and the effects of climate change will have on the Net System Revenues, however, the effects could be material.

Risk of Earthquake and Other Natural Disasters
Earthquake. There are several active geological faults in the State that have potential to cause serious earthquakes that could result in damage within the City to the Wastewater System, buildings, roads, bridges, and other property. The City is located in a zone 3 seismic area. Seismic zones aid in identifying and characterizing certain geological conditions and the risk of seismic damage at a particular location, and are used in establishing building codes to minimize seismic damage. The five seismic zones are: zone 0 (no measurable damage), zone 1 (minor damage), zone 2 (moderate damage), zone 3 (major damage) and zone 4 (major damage and greater proximity than zone 3 to certain major fault systems). While the City is not located in any existing special study zone delineated by the State Division of Mines and Geology as an area of known active faults, it is possible that new geological faults could be discovered in the area and that an earthquake occurring on such faults could result EXHIBIT 5 780
in damage of varying degrees of seriousness to property and infrastructure in the City, including the Wastewater System.

In the event of a severe seismic event in or around the City, there could be substantial damage to the Wastewater System facilities resulting in a reduction of Net System Revenues. Such reduction of Net System Revenues could have a material adverse effect on the City’s ability to make timely payments of 2024 Installment Payments with respect to the 2024 Bonds.

Flooding. [City to review and provide updates as necessary] In accordance with the National Flood Insurance Reform Act (the “NFIRA”) requiring, among other things, that the Federal Emergency Management Agency (“FEMA”) assess its flood hazard map inventory at least once every five years. In 1995, FEMA informed the City that updated flood insurance rate maps would be prepared. In the absence of the construction of flood improvements, FEMA indicated that all of metropolitan Stockton and the surrounding County areas would be located within the boundaries of a 100-year floodplain. A 100-year floodplain is an area expected to be inundated during a flood event of the magnitude for which there is a 1% (or 1-in-100) probability of occurrence in any year.

In May 1995, the City, the County, and the San Joaquin County Flood Control and Water Conservation District formed the San Joaquin Area Flood Control Agency (“SJAFCA”), a joint powers authority, for the purpose of addressing flood protection for the City and surrounding County areas.

In the aftermath of Hurricane Katrina in August 2005, FEMA implemented a Flood Map Modernization program to update existing flood insurance rate maps (“FIRMs”), policies, regulations and procedures. In particular, FEMA placed a high priority on reviewing, identifying and accrediting levees and levee systems nationwide to verify whether such levees and levee systems provide flood protection. To assure that levees shown on modernized FIRMs still provide that level of protection, FEMA requires that each levee in the country have a maintenance and operation plan.

In October 2007, the Governor signed into law Senate Bill 5 (“SB 5”) requiring urban areas in the Central Valley to reach a 200-year level of protection by 2025. SB 5 and a subsequent cleanup bill, Senate Bill 1278, require local city and county planning agencies in the Central Valley including Stockton, to amend their General Plans by July 2, 2015 and to subsequently amend their zoning ordinances by July 2, 2016 to include specific information and requirements for new development, located within a flood hazard zone, to have 200- year flood protection. On June 15, 2015, the City Council adopted a resolution amending the City’s General Plan to comply with SB 5. The amendments included, among other things, modifications to existing and adoption of new goals, policies, and measures to strengthen the relationship between land use planning decisions and consideration of potential floodplain hazards, siting of new development, and retrofitting of existing development. The effect of complying with SB 5 on new development within the City has been insignificant.

In 2005 voters approved State propositions 1E and 84 making available $5 billion for flood management. After the passage of propositions 1E and 84 the State Department of Water Resources has spent millions of dollars to evaluate levees and support existing and future projects to reach a 200-year level of flood protection for urban communities in the County including the City.

FEMA completed inspection of the levees in the County and final FIRMs became effective in 2009, placing approximately 5,000 parcels in a 100-year floodplain and decertifying Smith Canal.

Smith Canal, a man-made backwater slough of the San Joaquin River adjacent to the Sacramento-San Joaquin Delta (the “Delta”) located in the County, has levees that are heavily encroached upon and are not eligible to be certified as meeting either the current FEMA standards or the State’s Levee Design Criteria.

In April 2017, SJAFCA partnered with Reclamation District 1614 and Reclamation District 828 to process a Conditional Letter of Map Revision with FEMA, the purpose of which was to determine an appropriate solution to protect areas affected by Smith Canal levee decertification and FEMA re-mapping. As part of that EXHIBIT 5 781
effort, SJAFCA developed several conceptual approaches to providing at least a 100- year level of flood protection to those areas. On January 13, 2011, FEMA concluded that a solution proposed by SJAFCA and its partners, a gate structure at the mouth of Smith Canal, if constructed, would provide at least 100-year flood protection and warrant a revision in the FIRM.

On July 18, 2019, the SJAFCA Board of Directors approved the issuance of not to exceed $25 million to construct and maintain various flood control improvements, including a gate structure at the mouth of Smith Canal to regulate flows from the Delta, that are designed to provide protection to property within an assessment district known generally as the Smith Canal Flood Control Gate. This assessment district encompasses 8,099 parcels, including the approximately 5,000 affected parcels. SJAFCA expects to commence construction of this project during the first quarter of calendar year 2020 and complete construction in summer 2022.

The City makes no representation that the construction of the SJAFCA project will guaranty that FEMA will not issue revised FIRMs in the future that place all or some of the City within the boundaries of a 100-year floodplain.

As required under SB 5, the Cities of Lathrop and Manteca and Reclamation District 17 prepared an Adequate Progress Report for Urban Level of Protection (an “APR”) for the Mossdale Tract area in June 2016.

The APR served as a strategic plan describing and outlining the steps to be taken to generate the local funding necessary to advance and ultimately implement 200-year levee improvements in accordance with the requirements of SB 5. The APR described several aspects including: the requirements set forth by SB 5 and the Urban Level of Flood Protection (a “ULOP”); the requirements of the Cities of Lathrop and Manteca and Reclamation District 17 in making findings related to Adequate Progress toward a ULOP, and, more specifically; the approach the Cities of Lathrop and Manteca Reclamation District 17 in the Mossdale Tract Area were taking with respect to compliance with the guidance provided by the California Department of Water Resource in support of their maintenance of findings of Adequate Progress, as defined in the 2007 California Flood Legislation (Government Code sections 65007).

Effective January 1, 2018, members of SJAFCA amended and restated the joint exercise of powers agreement forming SJAFCA to include the Cities of Lathrop and Manteca as members. This was done to achieve an ULOP for portions of the Mossdale Tract area that encompasses areas within the jurisdictions, as amended, of each of the members of SJAFCA. The City, the Cities of Lathrop and Manteca, and the County, acting through SJAFCA, are working to comply with the SB5 requirements to establish 200-year level of flood protection within the urban areas planned for development.

Adequate progress to achieve ULOP was last documented in 2019 with the submittal by SJAFCA of the APR to the Central Valley Flood Control Board. The APR provided further details regarding continued progress toward achieving ULOP by 2025.

SJAFCA’s plan for flood protection through 2025 is an approximately $210 million project consisting of: (i) the Mossdale Tract Levee Seepage Repair Project, and (ii) SJAFCA Levee Improvements.

In areas of the City that are outside of the Mossdale Tract in which development is planned, developer driven SB 5 levee improvements have been completed or are planned. SJAFCA is also working with the United States Army Corps of Engineers under Congressional authorization on completing approximately $1.1 billion in levee repairs and seepage improvements (as described in a Lower San Joaquin Feasibility Study). This project will be installed along the western edge and interior areas of the City beginning at French Camp Slough in the south, north to Mosher Slough.

The Stockton RWCF is located in an area of the City that is protected by levees providing 100-year level of flood protection. However, the City makes no representation that such levees will be sufficient to protect the Stockton RWCF from all flood events in the future.

EXHIBIT 5 782
Other Natural Disasters. The occurrence of any other natural disaster or changes in natural conditions in or around the service area of the City, including, without limitation, fires (including wildfires), landslides, land subsidence, high winds, drought or other natural disasters could interrupt operation of the Wastewater System, or adversely affect economic activity in the City’s service area.

The State has historically been susceptible to wildfires and hydrologic variability. Portions of the Wastewater System are may be at risk of damage from wildfires. Since 2017, California has experienced numerous major wildfires which caused significant property damage throughout the State.

There can be no assurance that the occurrence of any natural calamity would not cause substantial damage to the Wastewater System facilities, including exacerbated infiltration and/or inflow of ground and other waters into the wastewater system, or that the Wastewater System would have insurance or other resources available to make repairs in order to resume normal operations and generate sufficient Net Revenues to pay debt service on the 2024 Bonds when due. The insurance coverage maintained by the Wastewater System may not cover damages and losses to the Wastewater System’s facilities due to earthquake, fire or flood.

Future Parity Obligations
As described in “SECURITY AND SOURCES OF PAYMENT FOR THE 2024 BONDS – Additional Parity Obligations” above, the City has $[______] outstanding Parity Obligations, and the 2024 Contract permits the City to issue or create additional Parity Obligations that would be payable on parity with the payment of the 2024 Installment Payments. See also “INTRODUCTION – Outstanding and Additional Parity and Subordinate Obligations” herein.

The coverage tests described in “SECURITY AND SOURCES OF PAYMENT FOR THE 2024 BONDS – Rate Covenant” and “ – Additional Parity Obligations” involve, to some extent, projections of revenues. If Parity Obligations are issued, the debt service coverage for the 2024 Bonds could be diluted below what it otherwise would be. Moreover, there is no assurance that the assumptions that form the basis of such projections, if any, will be actually realized subsequent to the date of such projections. If such assumptions are not realized, the amount of future net revenues may be less than projected, and the actual amount of revenues may be insufficient to provide for the payment of the 2024 Bonds and any future Parity Obligations.

Risk Management and Insurance
The Deputy Director of Human Resources of the City serves as the City’s Risk Manager, who oversees City personnel that handle claims and loss control activities, for the prevention and mitigation of property, liability, and employee claims for injury or damage. The City has maintained a program of self-insurance for many years. The City participates in two public entity insurance risk pools: the California Joint Powers Risk Management Authority (“CJPRMA”) and the California State Association of Counties-Excess Insurance Authority (CSAC-EIA) for various risk pooling and financing. For Fiscal Year 2023-24, excess pooled coverage for the self-insured general liability program is provided through the CJPRMA with an excess policy limit of $[__________] subject to a self-insured retention (SIR) of $[_________]; auto damage coverage is provided through Alliant Insurance Company and has a policy deductible of $[__________] per claim; and property coverage is provided through an insured program with CJPRMA with a deductible of $[__________] per occurrence (excluding earthquake damage to any of its facilities). For Fiscal Year 2023-24, excess pooled coverage for the self-insured workers’ compensation program is provided through CSAC-EIA with statutory limits subject to a $[__________] SIR.

Limitations on Remedies
The ability of the City to comply with its covenants under the 2024 Contract and to generate Net System Revenues sufficient to pay principal of and interest with respect to the 2024 Bonds may be adversely affected by actions and events outside of the control of the City and may be adversely affected by actions taken (or not EXHIBIT 5 783
taken) by voters, property owners, taxpayers or persons obligated to pay assessments, fees and charges. See “CONSTITUTIONAL AND STATUTORY LIMITATIONS ON TAX AND APPROPRIATIONS” herein.

Furthermore, the remedies available to the owners of the 2024 Bonds upon the occurrence of an event of default under the 2024 Contract are in many respects dependent upon judicial actions which are often subject to discretion and delay and could prove both expensive and time consuming to obtain. See also “ – No Acceleration of 2024 Bonds or 2024 Installment Payments.”
In addition, equity principles may limit the specific enforcement under state law of certain remedies; the exercise by the United States of America of the powers delegated to it by the Federal constitution; and the reasonable and necessary exercise, in certain exceptional situations, of the police power inherent in the sovereignty of the State of California and its governmental bodies in the interest of serving a significant and legitimate public purpose. Bankruptcy proceedings, or the exercise of powers by the federal or state government, if initiated, could subject the Owners of the 2024 Bonds to judicial discretion and interpretation of their rights in bankruptcy or otherwise, and consequently may entail risks of delay, limitations, or modification of their rights.

In addition to the limitations on remedies contained in the 2024 Contract, the rights and obligations under the 2024 Contract may be subject to bankruptcy, insolvency, reorganization, arrangement, fraudulent conveyance, moratorium and other laws relating to or affecting creditors’ rights, to the application of equitable principles, to the exercise of judicial discretion in appropriate cases and to limitations on legal remedies against cities in the State of California. The opinion to be delivered by Bond Counsel, concurrently with the issuance of the 2024 Bonds, will be subject to such limitations and the various other legal opinions to be delivered concurrently with the issuance of the 2024 Bonds will be similarly qualified. See APPENDIX F – “PROPOSED FORM OF BOND COUNSEL OPINION” attached hereto. In the event the City fails to comply with its covenants under the 2024 Contract or the Authority fails to pay principal of and interest on the 2024 Bonds, there can be no assurance of the availability of remedies adequate to protect the interest of the holders of the 2024 Bonds.

Investment of Funds
All moneys in any of the funds or accounts established with the Trustee under the 2024 Indenture will be invested by the Trustee solely in Permitted Investments as provided under the 2024 Indenture. See APPENDIX C – “SUMMARY OF CERTAIN PROVISIONS OF THE PRINCIPAL LEGAL DOCUMENTS” attached hereto for a summary of the definition of Permitted Investments. See also APPENDIX B – “AUDITED FINANCIAL STATEMENTS OF THE CITY OF STOCKTON FOR THE FISCAL YEAR ENDED JUNE 30, 2023.” All investments, including the Permitted Investments and those authorized by law from time to time for investments by public agencies contain a certain degree of risk. Such risks include, but are not limited to, a lower rate of return than expected, loss of market value and loss or delayed receipt of principal. The occurrence of these events with respect to amounts held under the 2024 Indenture or by the City could have a material adverse effect on the ability to pay debt service on the 2024 Bonds.

Cybersecurity
The City and the Wastewater System, like many other public and private entities, rely on computer and other digital technology and systems to conduct its operations. The City and its departments, including the Wastewater System, are potentially subject to multiple cyber threats including, but not limited to, hacking, viruses, malware, ransomware, and other attacks on computers and other sensitive digital networks and systems.

Entities or individuals may attempt to gain unauthorized access to City systems for the purposes of misappropriating assets or information or causing operational disruption or damage. The City has adopted security awareness training, incident response reporting protocols, and security policies, which are reviewed annually, to identify potential vulnerabilities and proactively mitigate them. The City maintains insurance coverage for cyber threat losses if a successful breach occurs, however, the City makes no representation that such insurance would be sufficient to cover all losses in the event of a material and sustained cyber breach.

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There have been, however, only limited cyber-attacks on the computer systems of the City and the Wastewater System
No assurances can be given that the security and operational control measures of the City and the Wastewater System will be successful in guarding against any and each cyber threat and attack. The results of any attack on the computer and information technology systems of the City could have a material adverse impact on the operations and finances of the City and the Wastewater System and damage the digital networks and systems. The resulting impacts on the operations of the City and of the Wastewater System and the costs of remedying any such damage could be material and result in a delay of payments on the 2024 Bonds or the ability of the City to comply with its reporting obligations under the Continuing Disclosure Certificate.

Loss of Tax Exemption on the 2024 Bonds
In order to maintain the exclusion from gross income for federal income tax purposes of the interest on the 2024 Bonds, the City and the Authority have covenanted in the 2024 Contract to comply with the applicable requirements of the Internal Revenue Code of 1986, as amended. The interest on the 2024 Bonds could become includable in gross income for purposes of federal income taxation retroactive to the date of issuance of such 2024 Bonds as a result of acts or omissions of the City or the Authority in violation of this or other covenants in the 2024 Contract applicable to the 2024 Bonds. The 2024 Bonds are not subject to redemption or any increase in interest rates should an event of taxability occur and will remain outstanding until maturity or prior redemption in accordance with the provisions contained in the 2024 Contract. See “TAX MATTERS” herein.

Risk of Tax Audit
The Tax Exempt and Government Entities Division (the “TE/GE Division”) of the Internal Revenue Service (the “IRS”) has a subdivision that is specifically devoted to tax-exempt bond compliance. There is no assurance that if an IRS examination of the 2024 Bonds was undertaken that it would not adversely affect the market value of the 2024 Bonds. See “TAX MATTERS” herein.

Secondary Market
There can be no guarantee that there will be a secondary market for the 2024 Bonds or, if a secondary market exists, that the 2024 Bonds can be sold for any particular price. Occasionally, because of general market conditions or because of adverse history or economic prospects connected with a particular issue, secondary marketing practices are suspended or terminated. Additionally, prices of issues for which a market is being made will depend upon then prevailing circumstances. Such prices could be substantially different from the original purchase price.

Bankruptcy
The Wastewater System, being an enterprise department of the City, likely cannot itself file for bankruptcy. While an involuntary bankruptcy petition cannot be filed against the City, the City is authorized to file for bankruptcy under certain circumstances. Should the City file for bankruptcy, there could be adverse effects on the holders of the 2024 Bonds.

To the extent that Revenues are “special revenues” under the United States Bankruptcy Code (the “Bankruptcy Code”), then Revenues collected after the date of the bankruptcy filing should be subject to the lien of the 2024 Indenture. If any or all of the Revenues are determined not to be “special revenues,” then any such amounts collected after the commencement of the bankruptcy case will likely not be subject to the lien of the 2024 Indenture. The holders of the 2024 Bonds may not be able to assert a claim against any property of the City other than the Net System Revenues, and if any or all of the Revenues are no longer subject to the lien of the Indenture, then there may be limited, if any, funds from which the holders of the 2024 Bonds are entitled to be paid.

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The Bankruptcy Code provides that “special revenues” can be applied to necessary operating expenses of the project or system, before they are applied to other obligations. This rule applies regardless of the provisions of the transaction documents. It is not clear precisely which expenses would constitute necessary operating expenses, and any definition in the transaction documents may not be applicable.

If the City is in bankruptcy, the parties (including the Trustee and the holders of the 2024 Bonds) may be prohibited from taking any action to collect any amount from the City or to enforce any obligation of the City, unless the permission of the bankruptcy court is obtained. These restrictions may also prevent the Trustee from making payments to the holders of the 2024 Bonds from funds in the Trustee’s possession. The rate covenants (see “SECURITY AND SOURCES OF PAYMENT FOR THE 2024 BONDS – Rate Covenant” herein) may not be enforceable in bankruptcy by the Trustee or the holders of the 2024 Bonds.

Revenues are deposited with and in the City Treasury and may be commingled with other City funds.

See “SECURITY AND SOURCES OF PAYMENT FOR THE 2024 BONDS” herein. If the City goes into bankruptcy, the City may not be required to turn over to the Trustee any Revenues that are in its possession at the time of the bankruptcy filing. In addition, if the City has possession of Revenues (whether collected before or after commencement of the bankruptcy) and if the City does not voluntarily turn over such Revenues to the Trustee, it is not clear what procedures the Trustee and the holders of the 2024 Bonds would have to follow to attempt to obtain possession of such Revenues, how much time it would take for such procedures to be completed, or whether such procedures would ultimately be successful.

The City may be able to borrow additional money that is secured by a lien on any of its property (including the Revenues), which lien could have priority over the lien of the Indenture, or to cause some of the Revenues to be released to it, free and clear of lien of the Indenture, in each case as long as the bankruptcy court determines that the rights of the Trustee and the holders of the 2024 Bonds will be adequately protected.

If the City is in bankruptcy it may be able, without the consent and over the objection of the Trustee and the holders of the 2024 Bonds, to alter the priority, interest rate, principal amount, payment terms, collateral, maturity dates, payment sources, covenants (including tax-related covenants), and other terms or provisions of the Indenture and the 2024 Bonds, as long as the bankruptcy court determines that the alterations are fair and equitable.

There may be delays in payments on the 2024 Bonds while the court considers any of these issues. There may be other possible effects of a bankruptcy of the City that could result in delays or reductions in payments on the 2024 Bonds, or result in losses to the holders of the 2024 Bonds. Regardless of any specific adverse determinations in a City bankruptcy proceeding, the fact of a City bankruptcy proceeding could have an adverse effect on the liquidity and value of the 2024 Bonds.

The City declared bankruptcy on July 18, 2012 and emerged from bankruptcy on February 25, 2015 when the City’s plan of adjustment became effective. Throughout its bankruptcy case, the City maintained that revenues of the Wastewater System qualified as “special revenues” under the United States Bankruptcy Code, and no creditor or party in interest argued otherwise. As a result, all revenues attributable to the Wastewater System were available solely for Wastewater System operations. At no point were revenues of the Wastewater System diverted to fund general fund operations; nor did the general fund borrow funds from the Wastewater System.

Public Health Emergencies
The City and the Wastewater System’s finances and operations are exposed to risks from public health events and concerns, including the occurrence of epidemics or pandemics, such as the COVID-19 pandemic.

Although the federal COVID-19 public health emergency declaration ended on May 11, 2023, the economy of the City, the State, as well as national and global economies, were profoundly affected by the COVID-19 pandemic. The Wastewater System’s finances have generally not been materially and adversely impacted by the EXHIBIT 5 786
COVID-19 pandemic; however, because of its evolving nature and the uncertainty of its duration, the cumulative impact of the crisis on the Wastewater System’s financial condition and operations cannot be fully determined at this time. Future public health events, alone or in combination with other events or circumstances, could have material adverse impacts on City’s economy and the City and Wastewater System’s finances and operations.

Bond Insurance
In the event of default of the payment of the scheduled principal or interest with respect to the 2024 Bonds when all or some becomes due, the Trustee on behalf of any owner of the 2024 Bonds shall have a claim under the Policy for such payments. The Policy does not insure redemption premium, if any. The payment of principal and interest in connection with optional prepayment of the 2024 Bonds which is recovered from the bond owner as a voidable preference under applicable bankruptcy law is covered by the insurance policy, however, such payments will be made by the Insurer at such time and in such amounts as would have been due absent such prepayment unless the Insurer chooses to pay such amounts at an earlier date.

Under most circumstances, default of payment of principal and interest does not obligate acceleration of the obligations of the Insurer without appropriate consent. The Insurer may direct and must consent to any remedies with respect to the 2024 Bonds and the Insurer’s consent may be required in connection with amendments to any applicable documents relating to the 2024 Bonds.

In the event the Insurer is unable to make payment of principal and interest as such payments become due under the Policy, the 2024 Bonds are payable solely from the Revenues as provided in the 2024 Indenture.

In the event the Insurer becomes obligated to make payments with respect to the 2024 Bonds, no assurance is given that such event will not adversely affect the market price of the 2024 Bonds or the marketability (liquidity) for the 2024 Bonds.

The long-term ratings on the 2024 Bonds are dependent in part on the financial strength of the Insurer and its claims paying ability. The Insurer’s financial strength and claims paying ability are predicated upon a number of factors which could change over time. No assurance is given that the long-term ratings of the Insurer and of the ratings on the 2024 Bonds will not be subject to downgrade and such event could adversely affect the market price of the 2024 Bonds or the marketability (liquidity) for the 2024 Bonds. See “RATINGS” herein.

The obligations of the Insurer are unsecured contractual obligations and in an event of default by the Insurer, the remedies available may be limited by applicable bankruptcy law or state law related to insolvency of insurance companies.

None of the Authority, the City or the underwriters has made independent investigation into the claims paying ability of the Insurer and no assurance or representation regarding the financial strength or projected financial strength of the Insurer is given. Thus, when making an investment decision, potential investors should carefully consider the ability of the Authority to pay principal and interest on the 2024 Bonds from the Revenues as provided in the 2024 Indenture and the claims paying ability of the Insurer, particularly over the life of the investment. See “BOND INSURANCE” herein for further information regarding the Insurer and the Policy, which includes further instructions for obtaining current financial information concerning the Insurer.

CONSTITUTIONAL AND STATUTORY LIMITATIONS ON TAXES AND APPROPRIATIONS Described below are certain measures which have impacted or may in the future impact Net System Revenues.

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Taxing and Spending Limitations
The taxing powers of public agencies in the State are limited by Article XIIIA of the California Constitution, added by an initiative amendment approved by the voters on June 6, 1978, and commonly known as Proposition 13.

Article XIIIA limits the maximum ad valorem tax on real property to 1% of “full cash value,” which is defined as “the County Assessor’s valuation of real property as shown on the Fiscal Year 1975-76 tax bill under ‘full cash value’ or, thereafter, the appraised value of real property when purchased, newly constructed, or a change in ownership has occurred after the 1975 assessment.” The full cash value may be adjusted annually to reflect inflation at a rate not to exceed 2% per year, or reduction in the consumer price index or comparable local data, or declining property value caused by damage, destruction, or other factors.

The tax rate limitation referred to above does not apply to ad valorem taxes to pay the debt service on any indebtedness approved by the voters before July 1, 1978, or on any bonded indebtedness for the acquisition or improvement of real property approved by two-thirds of the votes cast by the voters voting on the proposition.

Under the terms of Article XIIIA and pursuant to an allocation system created by implementing legislation, each county is required to levy the maximum ad valorem tax permitted by Article XIIIA and to distribute the proceeds to local agencies.

Assessed valuation growth allowed under Article XIIIA (new construction, change of ownership and up to 2% annual value growth) is allocated among the jurisdictions that serve the tax rate area within which the growth occurs. Local agencies and schools share the growth of base revenues from the tax rate area. Each year’s growth allocation becomes part of each agency’s allocation in the following year. The availability of revenues from tax bases to such entities may be affected by the existence of certain successor agencies to former redevelopment agencies that, under certain circumstances, may be entitled to such revenues resulting from the upgrading of certain property values.

Under State law, any fee that exceeds the reasonable cost of providing the service for which the fee is charged may be considered a “special tax” that must be authorized by a two thirds vote of the electorate.

Accordingly, if a portion of the City’s wastewater user rates or capacity charges were determined by a court to exceed the reasonable cost of providing service, the City might not be permitted to continue to collect that portion unless it were authorized to do so by a two-thirds majority of the votes cast in an election to authorize the collection of that portion of the rates or fees. If the City were unable to obtain such a two-thirds majority vote and were unable to reduce costs, such failure could adversely affect the City’s ability to pay the debt service on the 2024 Bonds.

The United States Supreme Court has upheld Article XIIIA against a challenge alleging violation of equal protection under the Fourteenth Amendment to the United States Constitution.

Proposition 218
General. Proposition 218, a State ballot initiative known as the “Right to Vote on Taxes Act,” was approved by California voters on November 5, 1996. The initiative added Articles XIIIC and XIIID to the California Constitution, creating additional requirements for the imposition by most local governments of “general taxes,” “special taxes,” “assessments,” “fees,” and “charges.” Articles XIIIC and XIIID became effective, pursuant to their terms, as of November 6, 1996, although compliance with some of the provisions was deferred until July 1, 1997, and certain of the provisions purport to apply to any tax imposed for general governmental purposes (i.e., “general taxes”) imposed, extended or increased on or after January 1, 1995 and prior to November 6, 1996.

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Article XIIID imposes substantive and procedural requirements on the imposition, extension or increase of any “fee” or “charge” subject to its provisions. A “fee” or “charge” subject to Article XIIID includes any levy, other than an ad valorem tax, special tax or assessment, imposed by an agency upon a parcel or upon a person as an incident of property ownership. Article XIIID prohibits, among other things, the imposition of any proposed fee or charge, and, possibly, the increase of any existing fee or charge, in the event written protests against the proposed fee or charge are presented at a required public hearing on the fee or charge by a majority of owners of the parcels upon which the fee or charge is to be imposed. Except for fees and charges for water, sewer and refuse collection services, the approval of a majority of the property owners subject to the fee or charge, or at the option of the agency, by a two-thirds vote of the electorate residing in the affected area, is required not less than 45 days following the public hearing on any such proposed new or increased fee or charge.

Judicial Interpretation. The California Supreme Court decisions in Richmond v. Shasta Community Services District, 32 Cal. 4th 409 (2004) (“Richmond”), and Bighorn-Desert View Water Agency v. Verjil, 39 Cal. 4th 206 (2006) (“Bighorn”) have clarified uncertainty surrounding the applicability of Section 6 of Article XIIID to service fees and charges. In Richmond, the Shasta Community Services District charged a water connection fee, which included a capacity charge for capital improvements to the water system and a fire suppression charge. The Court held that both the capacity charge and the fire suppression charge were not subject to Article XIIID because a water connection fee is not a property-related fee or charge because it results from the property owner’s voluntary decision to apply for the connection. In both Richmond and Bighorn, however, the Court stated that a fee for ongoing water service through an existing connection is imposed “as an incident of property ownership” within the meaning of Article XIIID, rejecting, in Bighorn, the water agency’s argument that consumption-based water charges are not imposed “as an incident of property ownership” but as a result of the voluntary decisions of customers as to how much water to use.

Article XIIIC extends the people’s initiative power to reduce or repeal previously authorized local taxes, assessments, fees and charges. This extension of the initiative power is not limited by the terms of Article XIIIC to fees, taxes, assessment fees and charges imposed after November 6, 1996 and absent other authority could result in retroactive reduction in any existing taxes, assessments, fees or charges. In Bighorn, the Court concluded that under Article XIIIC local voters by initiative may reduce a public agency’s water rates and delivery charges.

The Court noted, however, that it was not holding that the authorized initiative power is free of all limitations, stating that it was not determining whether the electorate’s initiative power is subject to the public agency’s statutory obligation to set water service charges at a level that will “pay the operating expenses of the agency, … provide for repairs and depreciation of works, provide a reasonable surplus for improvements, extensions, and enlargements, pay the interest on any bonded debt, and provide a sinking or other fund for the payment of the principal of such debt as it may become due.”
Article XIIID imposes the substantive requirement that any wastewater charges may not exceed the proportional cost of providing service to customers. The Fourth District of the California Court of Appeal decision in Capistrano Taxpayers Association, Inc. v. City of San Juan Capistrano, 235 Cal.App.4th 1493 (2015), clarified that tiered rate structures are compatible with the cost of service limitations of Article XIIID when each tier structure is supported by cost of service calculations. The court held that San Juan Capistrano’s water rates violated Article XIIID because no evidence in the record adequately showed that each tier corresponded to the cost of providing service at a given level of usage.

City’s Wastewater Rates and Charges. The City’s current sewer rates were adopted by resolution of the City Council on May 21, 2019, following notice to property owners and a public hearing held at least 45 days after the notice had been mailed, in compliance with Articles XIII C and XIII D.

Further, the City believes the Wastewater System rates and charges, respectively, do not constitute “taxes” under Article XIII C as revised by Proposition 26 because, as described in subsection 1(e)(7) of Article XIII C, they are “property-related fees imposed in accordance with the provisions of Article XIII D” (and are also charges for a “property-related service” as defined in subsection 2(g) of Article XIII D) and because, as EXHIBIT 5 789
described in subsection 1(e)(2) of Article XIII C, they are charged for sewer service, “a specific government service or product provided directly to the payor that is not provided to those not charged.” The City believes that it has complied with the required procedures in connection with its approved rate increases.

Conclusion. It is not possible to predict how courts will further interpret Proposition 218 in future judicial decisions, and what, if any, further implementing legislation will be enacted. Under the Bighorn case, local voters could adopt an initiative measure that reduces or repeals the rates and charges of the City, though it is not clear whether (and California courts have not decided whether) any such reduction or repeal by initiative would be enforceable in a situation in which such rates and charges are pledged to the repayment of bonds or other indebtedness, as is the case with respect to the 2024 Bonds. There can be no assurance that the courts will not further interpret, or the voters will not amend, Article XIII C and Article XIII D to limit the ability of local agencies to impose, levy, charge and collect increased fees and charges for wastewater services, or to call into question previously adopted wastewater services rate increases.

Proposition 26
Proposition 26, which amended Article XIII A and XIII C of the California Constitution, was approved by the electorate at the November 2, 2010 election. Proposition 26 imposes a two thirds voter approval requirement for the imposition of fees and charges by the State. It also imposes a majority voter approval requirement on local governments with respect to fees and charges for general purposes, and a two thirds voter approval requirement with respect to fees and charges for special purposes. According to its supporters, Proposition 26 was designed to prevent the circumvention of tax limitations imposed by the voters pursuant to Proposition 13, approved in 1978, Proposition 218, and other measures through the use of non tax fees and charges.

Proposition 26 expressly excludes from its scope “a charge imposed for a specific government service or product provided directly to the payor that is not provided to those not charged, and which does not exceed the reasonable cost to the governmental entity of providing the service or product to the payor” and “assessments and property related fees imposed in accordance with the provisions of Article XIII D.” The California Supreme Court has held that a fee for ongoing water service through an existing connection is imposed “as an incident of property ownership” within the meaning of Article XIII D. See “– Proposition 218” above.

The City can give no assurance that the courts will not further interpret, or the voters will not amend, the California Constitution to limit the ability of local agencies to impose, levy, charge, and collect increased fees and charges for wastewater service.

TAX MATTERS
Opinion of Bond Counsel
In the opinion of Hawkins Delafield & Wood LLP, Bond Counsel, under existing statutes and court decisions and assuming continuing compliance with certain tax covenants described herein, (i) interest on the 2024 Bonds is excluded from gross income for federal income tax purposes pursuant to Section 103 of the Internal Revenue Code of 1986, as amended (the “Code”) and (ii) interest on the 2024 Bonds is not treated as a preference item in calculating the alternative minimum tax under the Code, however, interest on the 2024 Bonds is included in the “adjusted financial statement income” of certain corporations that are subject to the alternative minimum tax under Section 55 of the Code. In rendering its opinion, Bond Counsel has relied on certain representations, certifications of fact, and statements of reasonable expectations made by the Authority and the City in connection with the 2024 Bonds, and Bond Counsel has assumed compliance by the Authority and the City with certain ongoing covenants to comply with applicable requirements of the Code to assure the exclusion of interest on the 2024 Bonds from gross income under Section 103 of the Code.

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In addition, in the opinion of Bond Counsel, under existing statutes, interest on the 2024 Bonds is exempt from State of California personal income taxes.

Bond Counsel expresses no opinion as to any other federal, state or local tax consequences arising with respect to the 2024 Bonds, or the ownership or disposition thereof, except as stated above. Bond Counsel renders its opinion under existing statutes and court decisions as of the issue date, and assumes no obligation to update, revise or supplement its opinion to reflect any action thereafter taken or not taken, any fact or circumstance that may thereafter come to its attention, any change in law or interpretation thereof that may thereafter occur, or for any other reason. Bond Counsel expresses no opinion as to the consequence of any of the events described in the preceding sentence or the likelihood of their occurrence. In addition, Bond Counsel expresses no opinion on the effect of any action taken or not taken in reliance upon an opinion of other counsel regarding federal, state or local tax matters, including, without limitation, exclusion from gross income for federal income tax purposes of interest on the 2024 Bonds.

Certain Ongoing Federal Tax Requirements and Covenants
The Code establishes certain ongoing requirements that must be met subsequent to the issuance and delivery of the 2024 Bonds in order that interest on the 2024 Bonds be and remain excluded from gross income under Section 103 of the Code. These requirements include, but are not limited to, requirements relating to use and expenditure of gross proceeds of the 2024 Bonds, yield and other restrictions on investments of gross proceeds, and the arbitrage rebate requirement that certain excess earnings on gross proceeds be rebated to the federal government. Noncompliance with such requirements may cause interest on the 2024 Bonds to become included in gross income for federal income tax purposes retroactive to their issue date, irrespective of the date on which such noncompliance occurs or is discovered. The Authority and the City have covenanted to comply with certain applicable requirements of the Code to assure the exclusion of interest on the 2024 Bonds from gross income under Section 103 of the Code.

Certain Collateral Federal Tax Consequences
The following is a brief discussion of certain collateral federal income tax matters with respect to the 2024 Bonds. It does not purport to address all aspects of federal taxation that may be relevant to a particular owner of a 2024 Bond. Prospective investors, particularly those who may be subject to special rules, are advised to consult their own tax advisors regarding the federal tax consequences of owning and disposing of the 2024 Bonds.

Prospective owners of the 2024 Bonds should be aware that the ownership of such obligations may result in collateral federal income tax consequences to various categories of persons, such as corporations (including S corporations and foreign corporations), financial institutions, property and casualty and life insurance companies, individual recipients of Social Security and railroad retirement benefits, individuals otherwise eligible for the earned income tax credit, and taxpayers deemed to have incurred or continued indebtedness to purchase or carry obligations the interest on which is excluded from gross income for federal income tax purposes. Interest on the 2024 Bonds may be taken into account in determining the tax liability of foreign corporations subject to the branch profits tax imposed by Section 884 of the Code.

Original Issue Discount
“Original issue discount” (“OID”) is the excess of the sum of all amounts payable at the stated maturity of a 2024 Bond (excluding certain “qualified stated interest” that is unconditionally payable at least annually at prescribed rates) over the issue price of that maturity. In general, the “issue price” of a maturity (a bond with the same maturity date, interest rate, and credit terms) means the first price at which at least 10 percent of such maturity was sold to the public, i.e., a purchaser who is not, directly or indirectly, a signatory to a written contract to participate in the initial sale of the 2024 Bonds. In general, the issue price for each maturity of 2024 Bonds is expected to be the initial public offering price set forth on the cover page of the Official Statement. Bond EXHIBIT 5 791
Counsel further is of the opinion that, for any 2024 Bonds having OID (a “Discount Bond”), OID that has accrued and is properly allocable to the owners of the Discount Bonds under Section 1288 of the Code is excludable from gross income for federal income tax purposes to the same extent as other interest on the 2024 Bonds.

In general, under Section 1288 of the Code, OID on a Discount Bond accrues under a constant yield method, based on periodic compounding of interest over prescribed accrual periods using a compounding rate determined by reference to the yield on that Discount Bond. An owner’s adjusted basis in a Discount Bond is increased by accrued OID for purposes of determining gain or loss on sale, exchange, or other disposition of such 2024 Bond. Accrued OID may be taken into account as an increase in the amount of tax-exempt income received or deemed to have been received for purposes of determining various other tax consequences of owning a Discount Bond even though there will not be a corresponding cash payment.

Owners of Discount Bonds should consult their own tax advisors with respect to the treatment of original issue discount for federal income tax purposes, including various special rules relating thereto, and the state and local tax consequences of acquiring, holding, and disposing of Discount Bonds.

Bond Premium
In general, if an owner acquires a bond for a purchase price (excluding accrued interest) or otherwise at a tax basis that reflects a premium over the sum of all amounts payable on the bond after the acquisition date (excluding certain “qualified stated interest” that is unconditionally payable at least annually at prescribed rates), that premium constitutes “bond premium” on that bond (a “Premium Bond”). In general, under Section 171 of the Code, an owner of a Premium Bond must amortize the bond premium over the remaining term of the Premium Bond, based on the owner’s yield over the remaining term of the Premium Bond determined based on constant yield principles (in certain cases involving a Premium Bond callable prior to its stated maturity date, the amortization period and yield may be required to be determined on the basis of an earlier call date that results in the lowest yield on such bond). An owner of a Premium Bond must amortize the bond premium by offsetting the qualified stated interest allocable to each interest accrual period under the owner’s regular method of accounting against the bond premium allocable to that period. In the case of a tax-exempt Premium Bond, if the bond premium allocable to an accrual period exceeds the qualified stated interest allocable to that accrual period, the excess is a nondeductible loss. Under certain circumstances, the owner of a Premium Bond may realize a taxable gain upon disposition of the Premium Bond even though it is sold or redeemed for an amount less than or equal to the owner’s original acquisition cost. Owners of any Premium Bonds should consult their own tax advisors regarding the treatment of bond premium for federal income tax purposes, including various special rules relating thereto, and state and local tax consequences, in connection with the acquisition, ownership, amortization of bond premium on, sale, exchange, or other disposition of Premium Bonds.

Information Reporting and Backup Withholding
Information reporting requirements apply to interest paid on tax-exempt obligations, including the 2024 Bonds. In general, such requirements are satisfied if the interest recipient completes, and provides the payor with, a Form W-9, “Request for Taxpayer Identification Number and Certification,” or if the recipient is one of a limited class of exempt recipients. A recipient not otherwise exempt from information reporting who fails to satisfy the information reporting requirements will be subject to “backup withholding,” which means that the payor is required to deduct and withhold a tax from the interest payment, calculated in the manner set forth in the Code. For the foregoing purpose, a “payor” generally refers to the person or entity from whom a recipient receives its payments of interest or who collects such payments on behalf of the recipient.

If an owner purchasing a 2024 Bond through a brokerage account has executed a Form W-9 in connection with the establishment of such account, as generally can be expected, no backup withholding should occur. In any event, backup withholding does not affect the excludability of the interest on the 2024 Bonds from gross income for federal income tax purposes. Any amounts withheld pursuant to backup withholding would be EXHIBIT 5 792
allowed as a refund or a credit against the owner’s federal income tax once the required information is furnished to the Internal Revenue Service.

Miscellaneous
Tax legislation, administrative actions taken by tax authorities, or court decisions, whether at the federal or state level, may adversely affect the tax-exempt status of interest on the 2024 Bonds under federal or state law or otherwise prevent beneficial owners of the 2024 Bonds from realizing the full current benefit of the tax status of such interest. In addition, such legislation or actions (whether currently proposed, proposed in the future, or enacted) and such decisions could affect the market price or marketability of the 2024 Bonds.

Prospective purchasers of the 2024 Bonds should consult their own tax advisors regarding the foregoing matters.

LEGAL MATTERS
The validity of the 2024 Bonds and certain other legal matters are subject to the approving opinion of Hawkins Delafield & Wood LLP, Bond Counsel. A complete copy of the proposed form of Bond Counsel opinion is contained in APPENDIX F to this Official Statement. Bond Counsel undertakes no responsibility for the accuracy, completeness or fairness of this Official Statement. Hawkins Delafield & Wood LLP is serving as Disclosure Counsel to the City. Certain legal matters will be passed upon for the Authority and the City by the City Attorney. Certain legal matters will be passed upon for the Underwriters by their counsel, Kutak Rock LLP, [and for the Insurer by its general counsel].

ABSENCE OF MATERIAL LITIGATION
The Authority
No litigation is pending with service of process having been accomplished or, to the knowledge of the Authority, threatened, concerning the validity of 2024 Indenture or 2024 Contract.

The City
There is no litigation pending with service of process having been accomplished or, to the knowledge of the City, threatened, questioning the existence of the City, or the title of the offices of the City to their respective offices. Except as otherwise described in this Official Statement, there is no litigation pending or, to the knowledge of the City, threatened, questioning or affecting in any material respect the financial condition of the City’s Wastewater System or the validity of the 2024 Bonds, the 2024 Contract, or the 2024 Indenture.

RATINGS
[S&P Global Ratings (“S&P”)] and [Fitch Ratings (“Fitch”)], has assigned the 2024 Bonds the municipal bond ratings of “[__]” and “[__],” respectively, with the understanding that upon delivery of the 2024 Bonds, the Policy will be issued by [INSURANCE PROVIDER]. See “BOND INSURANCE” herein and APPENDIX G – “SPECIMEN MUNICIPAL BOND INSURANCE POLICY” attached hereto. [S&P] and [Fitch] have assigned the 2024 Bonds the underlying municipal bond ratings of “[___]” and “[___]” respectively.

A rating reflects only the view of the agency giving such rating and is not a recommendation to buy, sell or hold the 2024 Bonds. An explanation of the significance of each rating may be obtained from the rating agencies.

There is no assurance that the ratings will be retained for any given period of time or that the same will not be revised downward or withdrawn entirely by either rating agency if, in its judgment, circumstances so warrant.

Any such downward revision or withdrawal of such ratings, or either of them, may have an adverse effect on the market price of the 2024 Bonds.

EXHIBIT 5 793

MUNICIPAL ADVISOR
The Authority has retained Del Rio Advisors, LLC of Modesto, California, as municipal advisor (the “Municipal Advisor”) in connection with the offering of the 2024 Bonds and the preparation of this Official Statement. The Municipal Advisor assisted in the preparation and review of this Official Statement. All financial and other information presented in this Official Statement has been provided by the Authority and the City from their records, except for information expressly attributed to other sources. The Municipal Advisor takes no responsibility for the accuracy or completeness of the data provided by the Authority, the City or others and has not undertaken to make an independent verification or does not assume responsibility for the accuracy, completeness, or fairness of the information contained in this Official Statement. The fee of the Municipal Advisor is contingent upon the successful closing of the 2024 Bonds.

UNDERWRITING
The Underwriters, as identified on the cover of this Official Statement, have agreed to purchase the 2024 Bonds at a purchase price equal to $________, which represents the principal amount of the 2024 Bonds plus a net original issue premium in the amount of $________ and less an underwriters’ discount in the amount of $________). The bond purchase agreement relating to the 2024 Bonds provides that the Underwriters will purchase all of the 2024 Notes if any are purchased, the obligation to make such purchase being subject to certain terms and conditions set forth in said bond purchase agreement, the approval of certain legal matters by counsel and certain other conditions. The Underwriters may offer and sell the 2024 Bonds to certain dealers and others at prices lower than (or yields higher than) the public offering prices (or yields) set forth on the cover page hereof.

VERIFICATION OF MATHEMATICAL COMPUTATIONS
The accuracy of the mathematical computations of the adequacy of the maturing principal of and interest earned on the escrow securities to provide for the payment, when due, of all principal and interest and redemption price with respect to the 2014 Bonds to their redemption date will be verified by [VERIFICATION AGENT] (the “Verification Agent”). The Verification Agent will express no opinion on the assumptions provided to them, nor as to the exemption from taxation of the interest on the Bonds. See “PLAN OF REFUNDING” above.

CONTINUING DISCLOSURE
The Authority has determined that no financial or operating data concerning the Authority is material to an evaluation of the offering of the 2024 Bonds or to any decision to purchase, hold or sell the 2024 Bonds and the Authority will not provide any such information. The City has undertaken all responsibilities for any continuing disclosure to Holders of the 2024 Bonds as described below, and the Authority shall have no liability to the Holders of the 2024 Bonds or any other person with respect to the Rule.

The City has covenanted for the benefit of the Holders of the 2024 Bonds to provide the Annual Report not later than the end of the ninth month following the end of the City’s Fiscal Year (which currently is June 30) commencing with the Annual Report for the 2023-24 Fiscal Year, and to provide notices of the occurrence of certain enumerated events. The Annual Report and notices of events will be filed by means of EMMA maintained by the MSRB. The specific nature of the information to be contained in the Annual Report or the notices of certain enumerated events is set forth in APPENDIX D – “FORM OF CONTINUING DISCLOSURE CERTIFICATE.” These covenants have been made in order to assist the Underwriters in complying with the Rule. The City has an ongoing contract with Willdan Financial Services as Dissemination Agent. [In the past five years, the City has not failed to comply in all material respects with its outstanding continuing disclosure undertakings] [To be confirmed]
EXHIBIT 5 794

FINANCIAL STATEMENTS
Audited financial statements of the City (including the Wastewater System Fund) for the Fiscal Year ended June 30, 2023, are attached hereto as APPENDIX B. The City’s financial statements were audited by The Pun Group, LLP (the “Independent Auditor”), as stated in its report dated March 13, 2024 appearing in APPENDIX B hereto. The Independent Auditor has not reviewed, audited or examined the finances of the City subsequent to March 13, 2024 and has not undertaken any review of any of the information contained in this Official Statement.

MISCELLANEOUS
This Official Statement is not to be construed as a contract or agreement among the Authority, the City and the Underwriters of the 2024 Bonds. Any statements made in this Official Statement involving matters of opinion or of estimates, whether or not so expressly stated, are set forth as such and not as representations of fact, and no representation is made that any of the estimates will be realized. The information and expressions of opinion herein are subject to change without notice and neither the delivery of the Official Statement nor any sale made hereunder shall, under any circumstances, create any implication that there has been no change in the affairs of the Authority or the City since the date hereof.

References are made herein to certain documents and reports which are brief summaries thereof which do not purport to be complete or definitive and reference is made to such documents and reports for full and complete statements of the contents thereof. Copies of such documents and reports are available for inspection at the office of the Chief Financial Officer, City of Stockton, 425 North El Dorado Street, Stockton California 95202.

The execution and delivery of the Official Statement by the Authority and the City have been duly authorized by the Board of Directors of the Authority and the City Council of the City, respectively.

STOCKTON PUBLIC FINANCING AUTHORITY
By:___________________________________________
[Name, Title]

CITY OF STOCKTON
By:___________________________________________
[Name, Title]
EXHIBIT 5 795

APPENDIX A

GENERAL ECONOMIC AND DEMOGRAPHIC INFORMATION

RELATING TO THE CITY OF STOCKTON
The following information concerning the City and surrounding areas is included only for the purpose of supplying general information regarding the community. The 2024 Bonds are not a debt of the City, the State or any of its political subdivisions and neither the City, the State, nor any of its political subdivisions is liable therefor. See “SECURITY AND SOURCES OF PAYMENT FOR THE 2024 BONDS” herein.

Overview
The City is a charter city incorporated in 1850. The City is the county seat of San Joaquin County and is located in California’s San Joaquin Valley, 78 miles east of the San Francisco Bay Area, 345 miles north of Los Angeles and 45 miles south of Sacramento. The County of San Joaquin covers approximately 1,400 square miles. The County is bounded by Sacramento County on the north, Stanislaus County on the south, Contra Costa County and Alameda County on the west and Amador County, Calaveras County and Stanislaus County on the east. The City is a municipal corporation and a chartered city, duly organized and existing under the constitution and laws of the State.

Governing Body
The City operates under a Council/Manager form of government, with a seven-member City Council (current members were elected by district voting) for staggered four-year terms. Under this form of government, policy making and legislative authority is entrusted to the City Council. The Mayor and representatives from six districts are elected by City-wide election for staggered four-year terms, with a two-term limit. Newly elected representatives are sworn in on the first Tuesday of January of each odd-numbered year. The City Council is also the governing board of the Redevelopment Agency.

The City Manager is responsible for carrying out policies and ordinances of the City Council for appointing heads of departments and overseeing the operation of the City. The City Manager, the City Attorney, the City Auditor and the City Clerk are appointed by the City Council. [Remainder of Page Intentionally Left Blank]
EXHIBIT 5 796
The Mayor, current members of the City Council and key administrative personnel of the City are listed in Table A-1 and Table A-2, respectively.

TABLE A-1

CITY OF STOCKTON
Mayor and City Councilmembers
Name Office Term Expires Occupation
Kevin J. Lincoln II Mayor 12/31/2024 Mayor
Kimberly Warmsley Vice Mayor, District 6 12/31/2024 Social worker Michele Padilla Councilmember, District 1 12/31/2026 Educator Daniel R. Wright Councilmember, District 2 12/31/2024 Educator Michael Blower Councilmember, District 3 12/31/2026 Realtor Susan Lenz Councilmember, District 4 12/31/2024 Certified Public Accountant and Business Owner
Brando Villapudua Councilmember, District 5 12/31/2026 Sales Manager TABLE A-2

CITY OF STOCKTON
Key Administrative Personnel
Name Position
Harry Black City Manager
Lori M. Asuncion City Attorney
Jay Kapoor Interim Chief Financial Officer
Moss Adams LLP City Auditor
Katherine Roland Interim City Clerk
The City provides a full range of municipal services. As provided in the City Charter, these services include public safety (police, fire, paramedics, water rescue and building inspection), sanitation (solid waste disposal, wastewater and stormwater utilities), water utility, community development, library, parks and recreation and general administrative services.

EXHIBIT 5 797
Population
Population information is set forth in Table A-3.

TABLE A-3

CITY OF STOCKTON, COUNTY OF SAN JOAQUIN

AND STATE OF CALIFORNIA
Population
(As of January 1)
Year City of Stockton County of San Joaquin State of California 2020(1) 320,290 779,233 39,538,223
2021 319,882 780,320 39,327,868
2022 318,477 782,163 39,114,785
2023 315,685 783,903 39,061,058
2024 317,204 791,408 32,128,162
____________
(1) As of April 1 of that year.

Source: California State Department of Finance, E-4 Population Estimates for Cities, Counties and the State, 2020-2024, with 2024 Benchmark.
[Remainder of Page Intentionally Left Blank]
EXHIBIT 5 798
Labor Force and Employment
Table A-4 table represents the labor patterns in the City, the County, the State, and the United States from 2020 through 2023.

Table A-4

CITY OF STOCKTON, SAN JOAQUIN COUNTY,

TATE OF CALIFORNIA AND UNITED STATES
Civilian Labor Force, Employment, and Unemployment
2020 through 2023
Year and Area Labor Force Employment Unemployment
Unemployment
Rate
2023
City 135,100 126,600 9,500 7.0%
County 346,800 325,100 21,600 6.2
State 19,308,300 18,388,300 920,000 4.8
United States 167,116,000 161,037,000 6,080,000 3.6
2022
City 134,300 126,100 8,200 6.1
County 342,200 323,900 18,300 5.3
State 19,169,300 18,348,900 820,400 4.3
United States 164,287,000 158,291,000 5,996,000 3.6
2021
City 132,800 119,700 13,200 9.9
County 336,100 307,300 28,900 8.6
State 18,956,600 17,568,700 1,387,800 7.3
United States 161,204,000 152,581,000 8,623,000 5.3
2020
City 132,800 115,400 17,400 13.1
County 334,800 296,300 38,400 11.5
State 18,958,600 17,037,000 1,921,600 10.1
United States 160,742,000 147,795,000 12,947,000 8.1
____________
Sources: California State Employment Development Department and U.S. Department of Labor, Bureau of Labor Statistics.

EXHIBIT 5 799
Employment and Industry
Approximately 3,000 acres in the City are zoned for light and heavy industry. Included in this acreage are 15 industrial parks with all on/site improvements. Six industrial parks are rail served.

The largest employers in the City as of Fiscal Year 2022-23 are set forth in Table A-5.

Table A-5

CITY OF STOCKTON
Largest Employers Fiscal Year 2022-23
(As of July 2023)
Company Product/Service Employees
Percent of Total
City Employment
Stockton Unified School District Public Education 5,341 3.96% Amazon Technology 4,650 3.45
St. Joseph’s Medical Center Health Care 3,200 2.37
San Joaquin County Office of Education Public Education 2,436 1.81 City of Stockton City Government 2,138 1.59
University of the Pacific Private College 1,816 1.35
Pacific Gas and Electric Utilities 1,550 1.15
Lincoln Unified School District Public Education 1,125 0.83 Kaiser Permanente Health Care 1,065 0.79
San Joaquin Delta College Public College 813 0.60
____________
Sources: City of Stockton Fiscal Year 2022-23 Annual Comprehensive Financial Report. [Remainder of Page Intentionally Left Blank]
EXHIBIT 5 800
The Industry Employment and Labor Force for the Stockton Metropolitan Statistical Area (MSA) are set forth in Table A-6. The central city of the Stockton MSA is the City.

Table A-6

STOCKTON MSA
Industry Employment(1) and Labor Force
By Annual Average
March 2023 Benchmark
2019 2020 2021 2022 2023
Total All Industries 262,400 257,700 269,800 286,300 288,900 Agriculture 15,400 14,600 14,200 13,800 14,100
Nonagriculture 247,000 243,100 255,600 272,500 274,900
Goods Producing 33,700 33,200 35,300 37,800 37,400
Manufacturing 20,500 20,100 21,300 23,000 23,500
Wholesale Trade 11,700 10,600 10,800` 11,600 12,300
Retails Trade 26,200 24,600 26,200 27,000 27,200
Transportation, Warehousing,
Utilities
31,300 38,800 43,000 48,100 46,800
Information 1,600 1,200 1,200 1,200 1,100
Financial Activities 7,900 7,800 8,000 8200 8000
Professional and Business Services 20,200 21,300 22,500 24,100 23,700 Education and Health Services 39,100 37,300 38,000 39,800 42,200 Leisure and Hospitality 22,600 18,500 21,300 24,300 24,600 Other Services 7,800 6,800 7,300 7,900 8,200
Government 44,900 43,000 42,000 42,600 43,400
____________
(1) Industry employment is by place of work; excludes business owners, self-employed people, unpaid volunteers or family workers and private household workers.

Source: State of California Employment Development Department, Labor Market Information Division.

Personal Income
Total personal income is defined by the Bureau of Economic Analysis, an agency of the U.S.

Department of Commerce, as income received from all sources, including income received from participation in production as well as from government and business transfer payments. It represents the sum of compensation received by employees, supplements to wages and salaries, proprietors’ income with inventory valuation adjustment and capital consumption adjustment (the “CCAdj”), rental income of persons with the CCAdj, personal income receipts on assets, and personal current transfer receipts, less contributions for government social insurance. Per capita income is calculated as the personal income divided by the resident population based upon the Census Bureau’s annual midyear population estimates.

Table A-7 summarizes the total personal income and per capita income for the Stockton Metropolitan Statistical Area (an “MSA”), the State and the United States for the calendar years 2019 through 2023. The principal city for the Stockton MSA is the City.

EXHIBIT 5 801
Table A-7

STOCKTON METROPOLITAN AREA,

STATE OF CALIFORNIA AND UNITED STATES
Personal Income
Year and Area
Personal Income
(millions of dollars)
Per Capita
Personal Income
(dollars)
2023
Stockton MSA - -
State $3,133,678 $80,423
United States 22,952,028 68,531
2022
Stockton MSA $ 42,979 $54,183
State 3,006,647 77,013
United States 21,820,248 65,473
2021
Stockton MSA $ 43,999 $55,827
State 3,013,676 76,987
United States 21,392,812 64,427
2020
Stockton MSA $ 40,056 $51,317
State 2,767,521 70,058
United States 19,609,985 59,151
2019
Stockton MSA $ 34,952 $45,239
State 2,537,950 64,174
Unites States 18,343,601 55,547
____________
Source: U.S. Department of Commerce, Bureau of Economic Analysis.

EXHIBIT 5 802
Construction Activity
Building activity for the past five calendar years for which data is available in the City is shown in Table A-8.

Table A-8

CITY OF STOCKTON
Total Building Permit Valuations†
($ in thousands)
Permit Valuation 2019 2020 2021 2022 2023
New Single Family $99,207 $129,515 $137,024 $156,148 $177,814 New Multiple Family 32,174 12,061 20,336 0 52,646
Residential Alterations/Additions 66,557 17,943 94,667 141,666 26,680 TOTAL RESIDENTIAL $197,939 $159,520 $252,028 $297,815 $257,142 TOTAL NONRESIDENTIAL 305,600 85,696 241,848 718,175 174,249 TOTAL $503,540 $245,216 $503,876 $1,015,991 $434,578
Net Dwelling Units 2019 2020 2021 2022 2023
Single Family 302 481 465 497 544
Multiple Family 262 93 18 0 456
TOTAL 564 574 483 497 1000
____________
† Certain columns may not total due to rounding.

Source: Construction Industry Research Board.

Transportation
[City to confirm]
The City is located on Interstate 5, the West Coast’s major route from Canada to Mexico. The City’s cross-town freeway connects Interstate 5 with State Route 99, the State’s other principal north-south freeway.

The City also benefits from direct highway connections to the San Francisco Bay Area via Interstate 580, and to the Reno-Lake Tahoe area via Interstate 80. Thirty-five major transcontinental truck lines and nearly 200 contract carriers serve the City and provide overnight delivery to Los Angeles, San Francisco and Reno. The City is also served by Greyhound and the San Joaquin Regional Transit District.

The City is served by the rail services of Santa Fe, Southern Pacific, and Union Pacific systems in addition to three short line railroads: Central California Traction Company, Tidewater Southern, and Stockton Terminal and Eastern Railroad. Passenger service is provided by Amtrak.

The Stockton Metropolitan Airport, located on 1,449 acres on the southern boundary of the City, is a general aviation facility offering both passenger and freight transport services. It has six air carrier gates adjoining a 44,355 square foot terminal building.

The Port of Stockton is the largest inland deep water port in the State. It is located on the Stockton deepwater ship channel and encompasses a 2,000 acre operating area. The Port has berthing space for 17 vessels,

1.1 million square feet of dockside transit sheds and shipside rail trackage, and 7.7 million square feet of warehousing, and is 75 nautical miles east of the Golden Gate Bridge.

Railroad service is provided to the City by Burlington Northern, Santa Fe and the Union Pacific railroads. Daily passenger service by Amtrak is available to San Francisco, Los Angeles and Sacramento.

EXHIBIT 5 803
Education and Recreation
[City to confirm]
Education. Within the City, there are five post-secondary institutions: San Joaquin Delta Community College, California State University Stanislaus-Stockton (extension), University of the Pacific, Humphrey’s College and School of Law and National University (private).

The majority of students living within City limits attend schools operated by one of four unified school districts providing kindergarten through grade 12 education: the Stockton Unified School District, the Lodi Unified School District, the Lincoln Unified School District and the Manteca Unified School District.

The Escalon Unified School District, the Holt Union Elementary School District, the Linden Unified School District, the Tracy Unified School District and the County Office of Education also operate schools located within the City.

There are also more than 20 private schools located within the City offering elementary and secondary education.

There is also one central, five branch City libraries and two mobile library units holding more than one million books in the collection.

Recreation. The City is situated along the San Joaquin Delta waterway which connects to the San Francisco Bay and the Sacramento and San Joaquin Rivers and is also located in close proximity to Lake Tahoe and Yosemite National Park. There are approximately 619 acres of parkland located within the City.

The Stockton Children’s Museum is located in downtown Stockton and offers educational experiences based upon hands-on, play-based exhibits that enhance a child’s understanding of how the world works. The Museum features more than a dozen different child-sized environments that recreate the ambience of a small city where merchants, bankers and doctors might mingle among the grocery shoppers, fast food customers and canning crew.

The 5,000 seat Stockton Ballpark that opened in April 2005 is the home of the Stockton Ports single A minor league team for the Oakland Athletics features four luxury suites, lawn seating, a family recreation area and a barbeque area with umbrella seating behind the outfield.

The City Centre Cinema Complex in downtown Stockton offers a 16-screen movie theater, restaurants and retail shopping.

The 220,000 square foot, 10,000 seat Stockton Arena is home of the Stockton Thunder Minor League Hockey Team.

The 2,042-seat Bob Hope Theater is located in the historic former Fox Theater that was constructed in 1930. This performing arts center hosts national and local theatrical, musical, comedy and dance productions.

The Gary & Janice Podesto IMPACT Teen Center, located in downtown Stockton, features four bowling lanes, a half-court basketball area, stage, meeting rooms, game rooms, classrooms, a computer lab, snack bar, and a climbing wall.

The City also operates a Skate Park and Ice Arena and offers various other sports and recreational opportunities through the City Park and Recreation Department.

EXHIBIT 5 804

APPENDIX B

AUDITED FINANCIAL STATEMENTS OF THE CITY OF STOCKTON FOR THE FISCAL YEAR ENDED JUNE 30, 2023
EXHIBIT 5 805

APPENDIX C

SUMMARY OF CERTAIN PROVISIONS OF THE PRINCIPAL LEGAL DOCUMENTS EXHIBIT 5 806

APPENDIX D

FORM OF CONTINUING DISCLOSURE CERTIFICATE
This Continuing Disclosure Certificate (the “Disclosure Certificate”) is executed and delivered by the City of Stockton (the “City”) in connection with the issuance of $__________ aggregate principal amount of Stockton Public Financing Authority Wastewater Revenue Refunding Bonds, Series 2024 (Wastewater Refunding Project) (the “2024 Bonds”). The 2024 Bonds were issued pursuant to a 2024 Indenture, dated as of August 1, 2024 (the “Indenture”), between the Stockton Public Financing Authority and U.S. Bank Trust Company, National Association, as Trustee (the “Trustee”). The City covenants and agrees as follows:

SECTION 1. Purpose of the Disclosure Certificate. This Disclosure Certificate is being executed and delivered by the City for the benefit of the Holders and Beneficial Owners of the 2024 Bonds and in order to assist the Participating Underwriters in complying with S.E.C. Rule 15c2-12(b)(5).

SECTION 2. Definitions. In addition to the definitions set forth in the 2024 Indenture, which apply to any capitalized term used in this Disclosure Certificate unless otherwise defined in this Section, the following capitalized terms shall have the following meanings:
“Annual Report” means any Annual Report provided by the City pursuant to, and as described in, Section 3 and Section 4 of this Disclosure Certificate. “Beneficial Owner” means any person which (a) has the power, directly or indirectly, to vote or consent with respect to, or to dispose of ownership of, any 2024 Bonds (including persons holding 2024 Bonds through nominees, depositories or other intermediaries).
“Disclosure Representative” means the Chief Financial Officer of the City or a designee, or such other officer or employee as the City shall designate in writing to the Dissemination Agent from time to time. “Dissemination Agent” means initially Willdan Financial Services, acting in its capacity as Dissemination Agent hereunder, or any successor Dissemination Agent designated in writing by the City and which has filed with the City written evidence of such designation. “EMMA” means the Electronic Municipal Marketplace Access site maintained by the MSRB, currently located at http://emma.msrb.org.
“Filing Date” means March 31 following the end of each Fiscal Year of the City (or the next succeeding business day if such day is not a business day), commencing with the filing for Fiscal Year 2023-24 due March 31, 2025.
“Financial Obligation” means a debt obligation; derivative instrument entered into in connection with, or pledged as security or a source of payment for, an existing or planned debt obligation; or a guarantee of a debt obligation or derivative instrument entered into in connection with, or pledged as security or a source of payment for, an existing or planned debt obligation. The term financial obligation excludes municipal securities for which a final official statement has been provided to the MSRB consistent with the Rule. “Fiscal Year” means with respect to the City, the period beginning on July 1 of each year and ending on the next succeeding June 30, or any 12-month or 52-week period thereafter selected by the City with notice of such selection of change in fiscal year to be provided as set forth in Section 3(a). “Holders” means either the registered owners of the 2024 Bonds, or, if the 2024 Bonds are registered in the name of The Depository Trust Company or another recognized depository, any applicable participant in its depository.

EXHIBIT 5 807
“MSRB” means the Municipal Securities Rulemaking Board, which has been designated by the Securities and Exchange Commission as the sole repository of disclosure information for purposes of the Rule, or any other repository of disclosure information that may be designated by the Securities and Exchange Commission as such for purposes of the Rule in the future. “Official Statement” means the Official Statement dated August __, 2024 relating to the 2024 Bonds. “Participating Underwriters” means the original underwriter of the 2024 Bonds required to comply with the Rule in connection with offering of the 2024 Bonds. “Rule” means Rule 15c2-12(b)(5) adopted by the Securities and Exchange Commission under the Securities Exchange Act of 1934, as the same may be amended from time to time. “Specified Event” means any of the events listed in Section 5(a) or Section 5(b) of this Disclosure Certificate and any other event legally required to be reported pursuant to the Rule.

SECTION 3. Provision of Annual Reports.
(a) The City shall provide, or shall cause the Dissemination Agent to provide to the MSRB, not later than the Filing Date, an Annual Report that is consistent with the requirements of Section 4 of this Disclosure Certificate. The Annual Report shall be submitted in electronic format, accompanied by such identifying information as is prescribed by the MSRB. The Annual Report may be submitted as a single document or as separate documents comprising a package, and may include by reference other information as provided in Section 4 of this Disclosure Certificate; provided that the audited financial statements of the City may be submitted separately from the balance of the Annual Report, and later than the Annual Report Date, if not available by that date. If the Fiscal Year of the City changes, it shall give notice of such change in the same manner as for a Specified Event under this Disclosure Certificate. The City shall provide a written certification with each Annual Report furnished to the Dissemination Agent to the effect that such Annual Report constitutes the Annual Report required to be furnished by the City hereunder. (b) Not later than 15 Business Days prior to the Filing Date, the City shall provide the Annual Report to the Dissemination Agent (if other than the City). The City shall provide, or cause the preparer of the Annual Report to provide, a written certificate with each Annual Report furnished to the Dissemination Agent to the effect that such Annual Report constitutes the Annual Report required to be furnished to it hereunder. The Dissemination Agent may conclusively rely upon such certification and shall have no duty or obligation to review such Annual Report.
(c) If the City is unable to provide to the Annual Report to the MSRB by the date required in Section 3(a), the City shall send a notice in a timely manner to the MSRB in substantially the form attached as Exhibit A.
(d) The Dissemination Agent shall:
(i) Provided it has received the Annual Report from the City pursuant to Section 3(a), file the Annual Report the MSRB by the Filing Date, and file any notice of a Specified Event, if requested by the City, as soon as practicable following receipt from the City of such notice; and (ii) Provided it has received the Annual Report from the City pursuant to Section 3(a), file a report with the City certifying that the Annual Report has been provided pursuant to this Disclosure Certificate, and stating the date it was provided.

SECTION 4. Content of Annual Reports. The City’s Annual Report shall contain or incorporate by reference the following:

EXHIBIT 5 808
(a) The Statement of Net Assets, the Statement of Revenues, Expenditures and Changes in Fund Net Assets and the Statement of Cash Flows for the Wastewater System for the prior Fiscal Year, prepared in accordance with generally-accepted accounting principles as promulgated to apply to governmental entities from time to time by the Governmental Accounting Standards Board. If such financial reports are not available by the time the Annual Report is required to be filed pursuant to Section 3(a), the Annual Report shall contain unaudited financial statements similar to the audited financial statements contained in the Official Statement, and shall be filed in the same manner as the Annual Report when they become available. (b) To the extent not presented in the audited financial statements:
(i) Information for the Wastewater System for the prior Fiscal Year substantially similar to that provided in the following tables of the Official Statement; [To be Confirmed]
(A) Table 1 – “Customer Class by Type of Account and Number of Connections;” (B) Table 2 – “Ten Largest Users by Flow;”
(C) Table 3 – “Ten Largest Users by Revenue;”
(D) Table 4 – “Schedule of Rates and Charges and Effective Dates;” (E) Table 5 – “Connection Fee Revenues;”
(F) Table 6 – “Uncollectible Charges for Services;”
[(G) Table 9 – “Historical Revenues Expenses and Debt Service Coverage”]; and (ii) Debt service schedules for the 2024 Bonds and any Parity Obligations.

SECTION 5. Reporting of Specified Events.
(a) Pursuant to the provisions of this Section 5, the City shall give, or cause to be given, notice of the occurrence of any of the following events with respect to the 2024 Bonds:
(i) Principal and interest payment delinquencies on the 2024 Bonds; (ii) Non-payment related defaults, if material;
(iii) Unscheduled draws on debt service reserves reflecting financial difficulties; (iv) Unscheduled draws on credit enhancements reflecting financial difficulties; (v) Substitution of credit or liquidity providers, or their failure to perform; (vi) Adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final determinations of taxability, Notices of Proposed (Issue (IRS Form 5701-TEB) or other material notices or determinations with respect to the tax status of the 2024 Bonds, or other material events affecting the tax status of the 2024 Bonds;
(vii) Modifications to rights of the 2024 Bond Holders, if material; EXHIBIT 5 809
(viii) Note calls, if material, and tender offers;
(ix) Defeasances;
(x) Release, substitution, or sale of property, if any, securing repayment of the 2024 Bonds, if material;
(xi) Rating changes;
(xii) Bankruptcy, insolvency, receivership or similar event of the City or other obligated person;
(xiii) The consummation of a merger, consolidation, or acquisition involving the City or an obligated person, or the sale of all or substantially all of the assets of the City or an obligated person (other than in the ordinary course of business), the entry into a definitive agreement to undertake such an action, or the termination of a definitive agreement relating to any such actions, other than pursuant to its terms, if material;
(xiv) Appointment of a successor or additional trustee or the change of name of a trustee, if material;
(xv) Incurrence of a Financial Obligation of the obligated person, if material, or agreement to covenants, events of default, remedies, priority rights, or other similar terms of a Financial Obligation of the obligated person, any of which affect security holders, if material; and (xvi) Default, event of acceleration, termination event, modification of terms, or other similar events under the terms of a Financial Obligation of the obligated person, any of which reflect financial difficulties.
(b) The Trustee shall, promptly upon obtaining actual knowledge at its principal corporate trust office as specified in Section 12 hereof of the occurrence of any of the Specified Events and notify the City of such Specified Events; provided, that failure by the Trustee to so notify the City shall not relieve the City of its duty to report Specified Events as required in this Section 5. For the purpose of this Disclosure Agreement “actual knowledge” means actual knowledge at the corporate trust office of the Trustee by an officer of the Trustee with responsibility for matters related to the administration of the Indenture. (c) Wherever the City obtains knowledge of the occurrence of Specified Event, the City shall, or shall cause the Dissemination Agent (if not the City) to, file a notice of such occurrence with the MSRB, in an electronic format as prescribed by the MSRB, in a timely manner not in excess of 10 business days after the occurrence of the Specified Event.
(d) The City acknowledges that the events described in subparagraphs (a)(ii), (a)(vii), (a)(x), (a)(xiii), (a)(xiv), (a)(xiv), and (a)(xv) of this Section 5 contain the qualifier “if material”. The City shall cause a notice to be filed as set forth in this Section 5 with respect to any such event only to the extent that it determines the event’s occurrence is material for purposes of U.S. federal securities law. Whenever the City obtains knowledge of the occurrence of any of these Specified Events, the City will as soon as possible determine if such event would be material under applicable federal securities law. If such event is determined to be material, the City will cause a notice to be filed as set forth in Section 5(c). (e) If in response to a request under Section 5(b), the City determines that the Specified Event would not be material under applicable federal securities laws, the City shall so notify the Trustee in writing and instruct the Dissemination Agent not to report the occurrence.

EXHIBIT 5 810
(f) If the Dissemination Agent has been instructed by the City to report the occurrence of a Specified Event, the Dissemination Agent shall file a notice of such occurrence with the MSRB.

Notwithstanding the foregoing, notice of Specified Events described in Section 5(a)(viii) and (ix) need not be given under this subsection any earlier than the notice (if any) of the underlying event is given to Holders of affected 2024 Bonds pursuant to the Indenture.
(g) For purposes of this Disclosure Agreement, any event described in Section 5(a)(xii) above is considered to occur when any of the following occur: the appointment of a receiver, fiscal agent, or similar officer for the City in a proceeding under the United States Bankruptcy Code or in any other proceeding under State or federal law in which a court or governmental authority has assumed jurisdiction over substantially all of the assets or business of the City, or if such jurisdiction has been assumed by leaving the existing governing body and officials or officers in possession but subject to the supervision and orders of a court or governmental authority, or the entry of an order confirming a plan of reorganization, arrangement, or liquidation by a court or governmental authority having supervision or jurisdiction over substantially all of the assets or business of the City.
(h) The Dissemination Agent may conclusively rely on an opinion of counsel that the City’s instructions to the Dissemination Agent under this Section 5 comply with the requirements of the Rule.

SECTION 6. Identifying Information for Filings with EMMA. All documents provided to the MSRB under the Disclosure Certificate shall be accompanied by identifying information as prescribed by the MSRB.

SECTION 7. Termination of Reporting Obligation. The obligations of the City under this Disclosure Certificate shall terminate upon the legal defeasance, prior redemption or payment in full of all of the 2024 Bonds. If such termination occurs prior to the final maturity of the 2024 Bonds, the City shall give notice of such termination in the same manner as for a Specified Event under Section 5(c).

SECTION 8. Dissemination Agent. The City may, from time to time, appoint or engage a Dissemination Agent to assist it in carrying out its obligations under this Disclosure Certificate, and may discharge any such Agent, with or without appointing a successor Dissemination Agent. The Dissemination Agent may resign at any time upon delivery of written notice thereof to the City at least 30 days prior to the effective date of such resignation. If at any time there is not any other designated Dissemination Agent, the City shall be the Dissemination Agent. The Dissemination Agent, if other than the City, shall not be responsible in any manner for the content of any notice or report prepared by the City pursuant to this Disclosure Certificate.

The initial Dissemination Agent shall be Willdan Financial Services.

SECTION 9. Amendment; Waiver. Notwithstanding any other provision of this Disclosure Certificate, the City may amend this Disclosure Certificate, and any provision of this Disclosure Certificate may be waived, provided that the following conditions are satisfied with respect to such amendment or waiver:
(a) If the amendment or waiver relates to the provisions of Section 3(a), Section 4, or Section 5(a), it may only be made in connection with a change in circumstances that arises from a change in legal requirements, change in law or a change in the nature, identity or status of an obligated person with respect to the 2024 Bonds or the type of business conducted by such person; (b) The undertaking in this Disclosure Certificate, as amended or taking into account such waiver, would, in the opinion of nationally recognized 2024 Bond counsel, have complied with the requirements of the Rule at the time of the original issuance of the 2024 Bonds, after taking into account any amendments or interpretations of the Rule, as well as any change in circumstances; and (c) The amendment or waiver either: (i) is approved by the Holders of the 2024 Bonds in the same manner as provided in the 2019 Indenture for amendments to such Indenture with the consent of Holders, or (ii) EXHIBIT 5 811
does not, in the opinion of nationally recognized bpmd counsel, materially impair the interests of the Holders or Beneficial Owners of the 2024 Bonds.
(d) Any amendment that modifies or increases the duties or obligations of the Dissemination Agent shall be agreed to in writing by the Dissemination Agent. (e) In the event of any amendment or waiver of a provision of this Disclosure Certificate, the City shall describe such amendment in the next Annual Report, and shall include, as applicable, a narrative explanation of the reason for the amendment or waiver and its impact on the type (or, in the case of a change of accounting principles, on the presentation) of financial information or operating data being presented by the City. In addition, if the amendment relates to the accounting principles to be followed in preparing financial statements, (i) notice of such change shall be given in the same manner as for a Specified Event, and (ii) the Annual Report for the year in which the change is made shall present a comparison (in narrative form and also, if feasible, in quantitative form) between the financial statements as prepared on the basis of the new accounting principles and those prepared on the basis of the former accounting principles. (f) Notice of any amendment made pursuant to this Section 9 shall be filed in the same manner as for the occurrence of a Specified Event under Section 5(c).

SECTION 10. Additional Information. Nothing in this Disclosure Certificate shall be deemed to prevent the City from disseminating any other information, using the means of dissemination set forth in this Disclosure Certificate or any other means of communication, or including any other information in any Annual Report or notice of occurrence of a Specified Event, in addition to that which is required by this Disclosure Certificate. If the City chooses to include any information in any Annual Report or notice of occurrence of a Specified Event in addition to that which is specifically required by this Disclosure Certificate, the City shall have no obligation under this Disclosure Certificate to update such information or include it in any future Annual Report or notice of occurrence of a Specified Event.

SECTION 11. Default. This Disclosure Certificate shall be solely for the benefit of the holders and beneficial owners from time to time of the 2024 Bonds. In the event of a failure of the City to comply with any provision of this Disclosure Certificate, the Trustee may (and, at the request of the Participating Underwriter or the Holders of at least 25% aggregate principal amount of Outstanding 2024 Bonds and upon receipt of indemnity satisfactory to the Trustee, shall), or any Holder or Beneficial Owner of the 2024 Bonds may take such actions as may be necessary and appropriate, including seeking mandate or specific performance by order of a court of competent jurisdiction in the County of San Joaquin, California, to cause the City to comply with its obligations under this Disclosure Certificate, provided that any holder or beneficial owner seeking to require the City to comply with this Disclosure Certificate shall first provide at least thirty (30) days prior written notice to the City of the failure of the City, giving reasonable detail of such failure. Failure by the City to comply with any provision of this Disclosure Certificate shall not be deemed an Event of Default under the 2019 Indenture, and the sole remedy under this Disclosure Certificate in the event of any failure of the City to comply with the terms of this Disclosure Certificate shall be an action to compel performance. No person or entity shall be entitled to recover monetary damages under this Disclosure Certificate.

SECTION 12. Duties, Immunities and Liabilities of Dissemination Agent. The Dissemination Agent shall have only such duties as are specifically set forth in this Disclosure Certificate, and the City agrees to indemnify and save the Dissemination Agent, its officers, directors, employees and agents, harmless against any loss, expense and liabilities which it may incur arising out of or in the exercise or performance of its powers and duties hereunder, including the costs and expenses (including attorneys’ fees) of defending against any claim of liability, but excluding liabilities due to the negligence or willful misconduct of the Dissemination Agent. The Dissemination Agent shall be paid compensation by the City for its services provided hereunder in accordance with its schedule of fees as amended from time to time and all expenses, legal fees and advances made or incurred by the Dissemination Agent in the performance of its duties hereunder. The obligations of the City under this Section 12 shall survive resignation or removal of the Dissemination Agent and payment of the 2024 Bonds.

EXHIBIT 5 812
SECTION 13. Notices. Any notice or other communication to be given by the City or the Dissemination Agent under this Disclosure Certificate may be given by delivering the same by first class mail, postage prepaid, messenger, or overnight delivery to the addresses set forth below (until another address is filed by the City or the Dissemination Agent with the Trustee):

To the City: City of Stockton
425 North El Dorado Street
Stockton, California 95202
Attention: Chief Financial Officer
If to the Trustee: U.S. Bank Trust Company, National Association [Address]
If to the Dissemination Agent: Willdan Financial Services 27368 Via Industria, Suite 200
Temecula, California 92590
SECTION 14. Beneficiaries. This Disclosure Certificate shall inure solely to the benefit of the City, the Dissemination Agent, the Participating Underwriter and Holders and Beneficial Owners from time to time of the 2024 Bonds, and shall create no rights in any other person or entity.

SECTION 15 Record Keeping. The City shall maintain records of Annual Reports and notices of Specified Events, including the content of such disclosure, the name of the entities with which such disclosure was filed and the date of filing of such disclosure.

SECTION 16. Governing Law. The laws of the State of California shall govern this Disclosure Certificate, the interpretation thereof and any right or liability arising hereunder. Any action or proceeding to enforce or interpret any provision of this Disclosure Certificate shall be brought, commenced or prosecuted in any courts of the State located in the County of San Joaquin, California.

SECTION 17. Counterparts. This Disclosure Certificate may be executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument.

Dated: August __, 2024

CITY OF STOCKTON
By:

Chief Financial Officer
The undersigned hereby agrees to act as
Dissemination Agent pursuant to the terms
and conditions of this Continuing Disclosure Certificate

WILLDAN FINANCIAL SERVICES
By:______________________________
Authorized Officer
EXHIBIT 5 813

EXHIBIT A

NOTICE TO REPOSITORIES OF FAILURE TO FILE ANNUAL REPORT Name of Obligated Person: City of Stockton
Name of Issue: Stockton Public Financing Authority Wastewater Refunding Revenue Bonds, Series 2024 (Wastewater
Refunding Project)
Date of Issuance: August __, 2024
NOTICE IS HEREBY GIVEN that the City of Stockton has not provided an Annual Report with respect to the above-named 2024 Bonds as required by the Continuing Disclosure Certificate, dated August __, 2024 relating to the 2024 Bonds. [The City anticipates that the Annual Report will be filed by _________________________________________.]
Dated:_______________

CITY OF STOCKTON
By
Title
cc: Willdan Financial Services
27368 Via Industria, Suite 200
Temecula, California 92590

EXHIBIT 5 814

APPENDIX E

DTC AND THE BOOK-ENTRY ONLY SYSTEM
The following description of the procedures and record keeping with respect to beneficial ownership interests in the 2024 Bonds, payment of principal, redemption premium, if any, and interest with respect to the 2024 Bonds to DTC, its Participants or Beneficial Owners, confirmation and transfers of beneficial ownership interests in the 2024 Bonds and other related transactions by and between DTC, its Participants and the Beneficial Owners is based solely on the understanding of the Authority of such procedures and record keeping from information provided by DTC. Accordingly, no representations can be made concerning these matters and neither DTC, its Participants nor the Beneficial Owners, should rely on the foregoing information with respect to such matters, but should instead confirm the same with DTC or its Participants, as the case may be. The Authority, the Trustee and the Underwriters understand that the current “Rules” applicable to DTC are on file with the Securities and Exchange Commission and that the current “Procedures” of DTC to be followed in dealing with Participants are on file with DTC.

The Depository Trust Company (“DTC”), New York, NY, will act as securities depository for the 2024 Bonds. The 2024 Bonds will be issued as fully-registered securities registered in the name of Cede & Co. (DTC’s partnership nominee) or such other name as may be requested by an authorized representative of DTC. One fully-registered 2024 Bond certificate will be issued for each maturity of each Series of the 2024 Bonds, each in the aggregate principal amount of such maturity, and will be deposited with DTC.

DTC, the world’s largest depository, is a limited-purpose trust company organized under the New York Banking Law, a “banking organization” within the meaning of the New York Banking Law, a member of the Federal Reserve System, a “clearing corporation” within the meaning of the New York Uniform Commercial Code, and a “clearing agency” registered pursuant to the provisions of Section 17A of the Securities Exchange Act of 1934. DTC holds and provides asset servicing for over 3.5 million issues of U.S. and non-U.S. equity issues, corporate and municipal debt issues, and money market instruments (from over 100 countries) that DTC’s participants (“Direct Participants”) deposit with DTC. DTC also facilitates the post-trade settlement among Direct Participants of sales and other securities transactions in deposited securities, through electronic computerized book-entry transfers and pledges between Direct Participants’ accounts. This eliminates the need for physical movement of securities certificates. Direct Participants include both U.S. and non-U.S. securities brokers and dealers, banks, trust companies, clearing corporations, and certain other organizations. DTC is a wholly-owned subsidiary of The Depository Trust & Clearing Corporation (“DTCC”). DTCC is the holding company for DTC, National Securities Clearing Corporation and Fixed Income Clearing Corporation, all of which are registered clearing agencies. DTTC is owned by the users of its regulated subsidiaries. Access to the DTC system is also available to others such as both U.S. and non-U.S. securities brokers and dealers, banks, trust companies, and clearing corporations that clear through or maintain a custodial relationship with a Direct Participant, either directly or indirectly (“Indirect Participants”). DTC has a Standard & Poor’s rating of AA+.

The DTC rules applicable to its Participants are on file with the Securities and Exchange Commission. More information about DTC can be found at www.dtcc.com.

Purchases of the 2024 Bonds under the DTC system must be made by or through Direct Participants, which will receive a credit for the 2024 Bonds on DTC’s records. The ownership interest of each actual purchaser of each 2024 Bond (“Beneficial Owner”) is in turn to be recorded on the Direct and Indirect Participants’ records.

Beneficial Owners will not receive written confirmation from DTC of their purchase. Beneficial Owners are, however, expected to receive written confirmations providing details of the transaction, as well as periodic statements of their holdings, from the Direct or Indirect Participant through which the Beneficial Owner entered into the transaction. Transfers of ownership interests in the 2024 Bonds are to be accomplished by entries made on the books of Direct and Indirect Participants acting on behalf of Beneficial Owners. Beneficial Owners will not receive certificates representing their ownership interests in the 2024 Bonds, except in the event that use of the book-entry system for the 2024 Bonds is discontinued.

EXHIBIT 5 815
To facilitate subsequent transfers, all 2024 Bonds deposited by Direct Participants with DTC are registered in the name of DTC’s partnership nominee, Cede & Co., or such other name as may be requested by an authorized representative of DTC. The deposit of the 2024 Bonds with DTC and their registration in the name of Cede & Co. or such other DTC nominee do not effect any change in beneficial ownership. DTC has no knowledge of the actual Beneficial Owners of the 2024 Bonds; DTC’s records reflect only the identity of the Direct Participants to whose accounts such 2024 Bonds are credited, which may or may not be the Beneficial Owners. The Direct and Indirect Participants will remain responsible for keeping account of their holdings on behalf of their customers.

Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to Indirect Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be governed by arrangements among them, subject to any statutory or regulatory requirements as may be in effect from time to time. Beneficial Owners of the 2024 Bonds may wish to take certain steps to augment the transmission to them of notices of significant events with respect to the 2024 Bonds, such as redemptions, tenders, defaults, and proposed amendments to the 2014 Indenture. For example, Beneficial Owners of the 2024 Bonds may wish to ascertain that the nominee holding the 2024 Bonds for their benefit has agreed to obtain and transmit notices to Beneficial Owners. In the alternative, Beneficial Owners may wish to provide their names and addresses to the registrar and request that copies of notices be provided directly to them.

Redemption notices shall be sent to DTC, if less than all of the 2024 Bonds within a maturity are being redeemed. DTC’s practice is to determine by lot the amount of the interest of each Direct Participant in each issue to be redeemed.

Neither DTC nor Cede & Co. (nor any other DTC nominee) will consent or vote with respect to the 2024 Bonds unless authorized by a Direct Participant in accordance with DTC’s MMI Procedures. Under its usual procedures, DTC mails an Omnibus Proxy to the issuer as soon as possible after the record date. The Omnibus Proxy assigns Cede & Co.’s consenting or voting rights to those Direct Participants to whose accounts the 2024 Bonds are credited on the record date (identified in a listing attached to the Omnibus Proxy).

Payments of principal of, premium, if any, and interest on the 2024 Bonds will be made to Cede & Co., or such other nominee as may be requested by an authorized representative of DTC. DTC’s practice is to credit Direct Participants’ accounts upon DTC’s receipt of funds and corresponding detail information from the Authority or the Trustee, on payable date in accordance with their respective holdings shown on DTC’s records.

Payments by Participants to Beneficial Owners will be governed by standing instructions and customary practices, as is the case with securities held for the accounts of customers in bearer form or registered in “street name,” and will be the responsibility of such Participant and not of DTC, its nominee, the Trustee, or the Authority, subject to any statutory or regulatory requirements as may be in effect from time to time. Payment of principal of, premium, if any, and interest on the 2024 Bonds to Cede & Co. (or such other nominee as may be requested by an authorized representative of DTC) is the responsibility of the Authority or the Trustee.

Disbursement of such payments to Direct Participants will be the responsibility of DTC, and disbursement of such payments to the Beneficial Owners will be the responsibility of Direct and Indirect Participants.

DTC may discontinue providing its services as depository with respect to the 2024 Bonds at any time by giving reasonable notice to the Authority or the Trustee. Under such circumstances, in the event that a successor depository is not obtained, 2024 Bond certificates are required to be printed and delivered.

The Authority may decide to discontinue use of the system of book-entry transfers through DTC (or a successor securities depository). In that event, 2024 Bond certificates will be printed and delivered.

The foregoing information concerning DTC concerning and DTC’s book-entry system has been provided by DTC, and neither the Authority nor the Trustee take any responsibility for the accuracy thereof.

EXHIBIT 5 816

NEITHER THE AUTHORITY NOR THE TRUSTEE WILL HAVE ANY RESPONSIBILITY OR

OBLIGATION TO DTC PARTICIPANTS, INDIRECT PARTICIPANTS OR BENEFICIAL OWNERS WITH

RESPECT TO THE PAYMENTS OR THE PROVIDING OF NOTICE TO DTC PARTICIPANTS, INDIRECT PARTICIPANTS OR BENEFICIAL OWNERS OR THE SELECTION OF 2024 BONDSS FOR REDEMPTION.

In the event that the book-entry system is discontinued as described above, the requirements of the 2014 Indenture will apply.

The Authority and the Trustee cannot and do not give any assurances that DTC, the Participants or others will distribute payments of principal, interest or premium, if any, evidenced by the 2024 Bonds paid to DTC or its nominee as the registered owner, or will distribute any redemption notices or other notices, to the Beneficial Owners, or that they will do so on a timely basis or will serve and act in the manner described in this Official Statement. Neither the Authority nor the Trustee are responsible or liable for the failure of DTC or any Participant to make any payment or give any notice to a Beneficial Owner with respect to the 2024 Bonds or an error or delay relating thereto.

EXHIBIT 5 817

APPENDIX F

PROPOSED FORM OF OPINION OF BOND COUNSEL
Upon the issuance of the 2024 Bonds, Hawkins Delafield & Wood LLP, Bond Counsel, proposes to render their final approving opinion in substantially the following form:
[Closing Date]
Stockton Public Financing Authority
Stockton, California
City of Stockton
Stockton, California
Re: $_________ Stockton Public Financing Authority Wastewater Revenue Refunding Bonds, Series 2024 (Wastewater Refunding Project) Ladies and Gentlemen:

We have acted as Bond Counsel in connection with the issuance by the Stockton Public Financing Authority (the “Authority”) of $_______ in aggregate principal amount of the Stockton Public Financing Authority Wastewater Revenue Refunding Bonds, Series 2024 (Wastewater Refunding Project) (the “Bonds”).

The Bonds are being issued pursuant to the laws of the State of California (the “State”), including Chapter 5 of Division 7 of Title 1 of the Government Code of the State, as amended (the “Act”), a resolution adopted by the Authority on _____ __, 2024 “Resolution”), the 2024 Installment Purchase Contract, dated as of August 1, 2024 (the “Installment Purchase Contract”), between the Authority and the City of Stockton (the “City”), and the 2024 Indenture, dated as of August 1, 2024 (the “Indenture”), between the Authority and U.S. Bank Trust Company, National Association, as trustee (the “Trustee”).

In our capacity as Bond Counsel we have reviewed the Act, the Resolution, the Installment Purchase Contract, the Indenture, certificates of the Authority, the City, the Trustee and others, an opinion of the City Attorney, and such other documents, opinions and instruments as we deemed necessary to render the opinions set forth herein. Capitalized terms not otherwise defined herein shall have the meanings assigned thereto in the Indenture.

We have assumed the genuineness of all documents and signatures presented to us (whether as originals or as copies) and the due and legal execution and delivery thereof by, and validity against, any parties other than the Authority and the City. We have assumed, without undertaking to verify, the accuracy of the factual matters represented, warranted or certified in the documents, and of the legal conclusions contained in the opinions, referred to in the second paragraph hereof.

We call attention to the fact that the rights and obligations under the Indenture and their enforceability may be subject to bankruptcy, insolvency, reorganization, arrangement, fraudulent conveyance, moratorium and other laws relating to or affecting creditors’ rights, to the application of equitable principles, to the exercise of judicial discretion in appropriate cases and to the limitations on legal remedies against public entities in the State.

We express no opinion with respect to any indemnification, contribution, penalty, choice of law, choice of forum or waiver provisions contained in the foregoing documents.

EXHIBIT 5 818
Based on and subject to the foregoing, and in reliance thereon, as of the date hereof, we are of the following opinions:

1. The Bonds constitute valid and binding limited obligations of the Authority and are payable solely from Revenues and certain other amounts held under the Indenture.

2. The Indenture has been duly authorized, executed and delivered by, and constitutes a valid and binding obligation of, the Authority. The Indenture creates a valid lien on the Revenues and certain other amounts held by the Trustee under the Indenture, as and to the extent set forth in the Indenture and subject to the provisions of the Indenture permitting the application thereof for the purposes and on the terms and conditions set forth therein.

3. The Installment Purchase Contract has been duly authorized, executed and delivered by, and constitutes a valid and binding obligation of, the Authority and the City. The Installment Purchase Contract creates a valid lien on the Net System Revenues and certain other amounts pledged by the Installment Purchase Contract for the security of the 2024 Installment Payments.

4. Under existing statutes and court decisions and assuming continuing compliance with certain tax covenants described below, (i) interest on the Bonds is excluded from gross income for federal income tax purposes pursuant to Section 103 of the Internal Revenue Code of 1986, as amended (the “Code”), and (ii) interest on the Bonds is not treated as a preference item in calculating the alternative minimum tax under the Code; however, interest on the Bonds is included in the “adjusted financial statement income” of certain corporations that are subject to the alternative minimum tax under Section 55 of the Code.

The Code establishes certain requirements that must be met subsequent to the issuance and delivery of the Bonds in order that, for federal income tax purposes, interest on the Bonds be not included in gross income pursuant to Section 103 of the Code. These requirements include, but are not limited to, requirements relating to the use and expenditure of proceeds of the Bonds, restrictions on the investment of proceeds of the Bonds prior to expenditure and the requirement that certain earnings be rebated to the federal government.

Noncompliance with such requirements may cause interest on the Bonds to become subject to federal income taxation retroactive to their date of issue, irrespective of the date on which such noncompliance occurs or is ascertained.

On the date of delivery of the Bonds, the Authority and the City will execute a Tax Certificate relating to the Bonds containing provisions and procedures pursuant to which such requirements can be satisfied. In executing the Tax Certificate, the Authority and the City covenant that they will comply with the provisions and procedures set forth therein and that it will do and perform all acts and things necessary or desirable to assure that the interest paid on the Bonds will, for federal income tax purposes, be excluded from gross income.

In rendering the opinion in this paragraph 4, we have relied upon and assumed (i) the material accuracy of the Authority’s and the City’s representations, statements of intention and reasonable expectations, and certifications of fact contained in the Tax Certificate with respect to matters affecting the status of interest paid on the Bonds, and (ii) compliance by the Authority and the City with the procedures and covenants set forth in the Tax Certificate as to such tax matters.

5. Under existing statutes, interest on the Bonds is exempt from State personal income taxes.

We express no opinion as to any other federal, state or local tax consequences arising with respect to the Bonds, or the ownership or disposition thereof, except as stated in paragraphs 4 and 5 above. We render our opinion under existing statutes and court decisions as of the date hereof, and assume no obligation to update, revise or supplement our opinion to reflect any action hereafter taken or not taken, any fact or circumstance that may hereafter come to our attention, any change in law or interpretation thereof that may hereafter occur, or for any other reason. We express no opinion as to the consequence of any of the events described in the preceding EXHIBIT 5 819
sentence or the likelihood of their occurrence. In addition, we express no opinion on the effect of any action taken or not taken in reliance upon an opinion of other counsel regarding federal, state or local tax matters, including, without limitation, exclusion from gross income for federal income tax purposes of interest on the Bonds.

Respectfully submitted,
EXHIBIT 5 820

APPENDIX G

SPECIMEN MUNICIPAL BOND INSURANCE POLICY
EXHIBIT 5 821
Stockton Public Financing Authority
Wastewater Revenue Refunding Bonds
Series 2024 (the “2024 Bonds”)
City Council / Stockton Public Financing Authority
July 9, 2024
Agenda Item 15.5
"Independent Registered Municipal Advisor"
822
1 Existing Parity Obligations of the City’s Wastewater Fund Water Infrastructure Finance and Innovation Act (“WIFIA”) Loan Number: N18126CA
Principal Payments: September 1, 2030 to September 1, 2051 Remaining Amount: $108,000,000
Interest Rate: 1.20%
Purpose: Repaid Bond Anticipation Notes sold to fund the Regional Wastewater Control Facilities Modification Project ___________________________________________________________________________________ California Department of Water Resources SRF Loan Number: D2001045
Principal Payment: December 31, 2024 to December 31, 2051 Remaining Amount: $46,800,000
Interest Rates: 0.90%
Purpose: Used to pay project costs associated with the Regional Wastewater Control Facilities Modification Project ________________________________________________________________ • The 2024 Bonds are being issued to refund the outstanding:

Stockton Public Financing Authority
Wastewater Revenue Refunding Bonds, Series 2014 (the “2014 Bonds”) • The 2024 Bonds will be on parity with both the WIFIA Loan and the SRF Loan • The 2024 Bonds will be amortized over the same remaining term as the 2014 Bonds (no extension) 823
2 Estimated Financing Summary (Assumes Market Interest Rates as of May 14) Outstanding 2014 Bonds $29,620,000 (1)
Principal Amount of the 2024 $28,615,000
2014 Bonds Total Debt Service $34,211,250
2024 Bonds Total Debt $33,038,077
Total Savings $1,173,173
Average Annual Savings $227,225 (2)
Net Present Value Savings ($) $1,055,707
Net Present Value Savings (%) (3) 3.56%
Final Maturity September 1, 2029 (FY 2030) (4)
Notes
(1) Amount Outstanding After September 1, 2024
(2) From Fiscal Year 2026 to Fiscal Year 2030
(3) As a Percentage of the Principal Amount of Bonds Refunded (4) Same Final Maturity as the 2014 Bonds (No Extension) The Resolutions establish a minimum cash flow savings target of $150,000 per year (FY 2026 to FY 2030) which equates to 2.38% net present value savings. While the transaction currently meets the standards establish in the City’s debt policy at > 3.00% net present value savings, the minimum cash flow target would require a waiver from the City’s debt policy by utilizing “Section XVI: Exceptions To These Policies”:
“The City may find in limited and exceptional instances that a waiver to any of the above stated policies is warranted given identified special City benefits to be derived from such waiver. Such waivers may be granted by the City Manager or CFO with the approval of the City Attorney, if provisions waived are not material, and shall be granted only by action of the City Council if as to material provisions and shall be based upon stated policies as warranted given identified special City benefits to be derived from such specific public purpose, economic and/or health and safety findings.”
824
3 Estimated Costs of Issuance
Role Party Total
Bond / Disclosure Counsel Hawkins Delafield & Wood LLP $52,000.00 Bond Counsel Expenses (NTE) Hawkins Delafield & Wood LLP 1,500.00 Municipal Advisor Del Rio Advisors, LLC 62,500.00
Municipal Advisor Expenses (NTE) Del Rio Advisors, LLC 750.00 Rating Fee Standard & Poor's Corporation 29,500.00
Trustee (Acceptance Fee) U.S. Bank 1,000.00
Trustee (Annual Fee) U.S. Bank 2,750.00
Trustee (Counsel Fee) U.S. Bank 3,000.00
Escrow Agent ComputerShare 2,500.00
Printing of Official Statement TBD 5,000.00
Rounding Adjustment / Miscellaneous Misc. 15,372.97
Total Estimated Costs $178,762.97
825
4 Estimated Savings
826
5 Proposed 2024 Bonds, Financing Team and Remaining Schedule Proposed 2024 Bonds
 $28.615 million public offering
 Proposed same amortization term as the 2014 Bonds (no extension)  Estimated fixed Costs of Issuance of $178,762.97
 Estimated Bond Insurance and Surety Premium of $184,959.23  Estimated Underwriter’s Discount of $140,213.50 (0.49% of the refunding principal amount) Financing Team
 Bond / Disclosure Counsel: Hawkins Delafield & Wood LLP  Municipal Advisor: Del Rio Advisors, LLC
 Co-Underwriters: Hilltop Securities and Oppenheimer & Co. Inc.  Trustee: U.S. Bank Trust Company, National Association Proposed Financing Schedule
Date Action
Tuesday July 9 City Council / Authority Board Meeting th Week of July 29 Print and Post the Preliminary Official Statement th Wednesday August 14 Sell the Bonds th
Print and Post Final Official Statement
Documents Executed
Weeks of August 19th and August 26th
Wednesday September 4 Transaction Closes th
827
6 Documents for Review and Approval
 2024 Indenture: An agreement between the Authority and U.S. Bank Trust Company, National Association (“U.S. Bank”) as Trustee. This document governs all the terms and conditions of the 2024 Bonds including the role of U.S. Bank as Trustee, the principal payments along with the interest rates on the individual maturities, the redemption provisions of the 2024 Bonds, establishes the funds and accounts for the 2024 Bonds, establishes the City obligations for continuing disclosure reporting, arbitrage rebate and annual CDIAC reporting, and remedies for bondholders in an event of default.  2024 Installment Purchase Contract: An agreement between the Authority (seller) and the City (purchaser) whereby the City will purchase from the Authority the Wastewater System improvements funded with proceeds of the 2014 Bonds. In exchange, the City agrees to make installment payments to the Authority. The installment payments are equal to the debt service on the 2024 Bonds.  Official Statement (Including the Continuing Disclosure Certificate): The Official Statement is the primary document used by the Underwriter to market the 2024 Bonds to investors. The official statement describes the 2024 Bonds in detail and all the information used by investors to make an informed purchase decision. The official statement, in the preliminary form presented, is deemed final pursuant to Rule 15c-2-12 under the Securities Exchange Act of 1934.  Bond Purchase Contract: An agreement between the City, the Authority and the Underwriters, pursuant to which the Underwriters agree to purchase the 2024 Bonds from the Authority, on the terms and conditions set forth therein. It provides certain conditions for closing that must be met prior to the closing and funding of the 2024 Bonds and will be executed on the date of pricing. 828
7 Resolutions for Consideration
 Resolution of the City of Stockton: This Resolution authorizes the form of and the execution and delivery of an Installment Purchase Contract, Bond Purchase Contract, Continuing Disclosure Certificate and Official Statement all relating to the issuance of the 2024 Bonds and approving certain actions in connection therewith.
 Resolution of the Stockton Public Financing Authority: This Resolution authorizes the issuance and sale of the 2024 Bonds in an aggregate principal amount not to exceed $32,000,000; approves the form of and authorizes the execution and delivery of an Indenture, an Installment Purchase Contract, a Bond Purchase Contract, and an Official Statement all relating to the issuance of the 2024 Bonds and approving certain actions in connection therewith.

The Resolutions also approve the execution of all documents and other actions related to the issuance of the 2024 bonds and that the Chair of the Authority (Mayor), Executive Director of the Authority (City Manager), Treasurer of the Authority (Chief Financial Officer) or their designee be authorized to take appropriate and necessary actions to carry out the purpose and intent of the Resolutions.
829
8 Questions and Discussion
830
City of Stockton
Legislation Text
File #: 24-0664, Version: 1

ADOPT A RESOLUTION APPROVING MEASURE A EXPENDITURE GUIDELINES

RECOMMENDATION
It is recommended that City Council adopt a Resolution to:

1. Approve the Measure A Expenditure Guidelines (Exhibit 1 to the proposed Resolution); and

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

Summary
On December 5, 2023, the City Council adopted an ordinance to extend Measure A, a three-quarter percent transactions and use (sales) tax through March 31, 2034. The measure was originally approved by voters on November 5, 2013, and became effective April 1, 2014.

In an October 2023 performance audit, the City’s internal auditors recommended the City implement expenditure guidelines for Measure A revenues to improve transparency and utilization of Measure A funds. The proposed Measure A Expenditure Guidelines are hereby presented to City Council for approval.

DISCUSSION
Background
On December 5, 2023, the Stockton City Council adopted an ordinance to extend Measure A, a three -quarter percent transactions and use (sales) tax, through March 31, 2034. The measure was originally approved by voters on November 5, 2013, and became effective April 1, 2014.

On the same ballot, voters also approved Measure B, a non-binding advisory measure, to help communicate priorities and express an opinion about how the additional tax money should be used.

On February 25, 2014, Stockton’s City Council supported the citizens’ approval of Measure B by implementing the first phase of the Marshall Plan on Crime.

Measure B recommends that 65% of Measure A proceeds be used for law enforcement and crime prevention services, such as the Marshall Plan on Crime, and that 35% of Measure A proceeds be used for general City services, including recovery from bankruptcy.

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A performance audit conducted by the City’s internal auditor, Moss Adams LLP, noted the following:

While expenditure processes appear to comply with Measure A provisions, the City does not have updated expenditure guidelines to define allowable expenditures, proactively plan for future use of the funds, or support tracking of expenditures. This contributes to limited visibility into the impact of the Measure among the public and creates a lack of clarity among City staff for what constitutes allowable use of the funds.

The Measure A Citizens Advisory Committee receives regular reports from City staff on Measure B eligible expenditures, including annual economic recovery reports, quarterly financial reports, annual reports on the 65%/35% usage, and quarterly statistics concerning progress on crime reduction and staff retention.

Present Situation
The proposed Measure A Expenditure Guidelines (Exhibit 1 to the Resolution) address the City’s internal auditor’s finding noted above, by constructing expenditure guidelines that can be used to understand, direct, and track eligible costs.

According to Section 21 of the Ordinance (2013-07-09-1601), 100% of the proceeds of Measure A may be used for any lawful purpose of the City, as authorized by ordinance, resolution, or action of the City Council. The Ordinance explicitly states that Measure A is a general tax and not a special tax. The proposed guidelines do not restrict or legislate the use of these general-purpose tax revenues and are not intended in any way to legally obligate Measure A funds for any particular purpose. Instead, this document is designed to increase visibility and transparency, and demonstrate the City’s alignment with Measure B.

The spending priorities for Measure A funds included in the proposed guidelines can be summarized as follows:
· Law Enforcement and Crime Prevention (65% recommended): This category includes Police Department and Crime Prevention personnel and related program expenditures, recruitment and retention incentives, and any special projects or initiatives to the extent funds are available.
· General City Services (35% recommended): The priorities for this category include contingency payments made to Assured Guaranty as required under the current terms and agreement, post-bankruptcy recovery/restoration of services, general City expenditures as approved by City Council, and maintaining a healthy General Fund reserve to mitigate impacts from the next economic downturn.

Several benefits will be achieved by establishing clear Measure A guidelines:
· Specific guidance to prescribe and encourage eligible costs to incur against Measure B. · Specific contingencies for use of Measure B when savings occur in high priority areas. · Outlining the Marshall plan into specific items that can be adjusted to respond to changes in the City’s demand for services.

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The guidelines are meant to replace the aging Marshall Plan with a list of items categorized into goals that can be adjusted annually to respond to a changing fiscal environment.

As part of the annual budget process, the City will develop and present an expenditure plan for Measure A funds for the upcoming fiscal year based on the spending priorities identified in the proposed guidelines. The plan will be presented to the Measure A Citizens’ Advisory Committee, followed by a presentation to City Council for approval.

Any revisions to the spending plan will be presented to the Measure A Citizens’ Advisory Committee at regularly scheduled meetings. City Council will be presented with spending plan updates and/or revisions as part of the quarterly budget updates that are currently provided to Council.

Attachment A displays the Measure A Expenditure Plan for FY 2024-25 for informational purposes.

This plan was incorporated into the FY 2024-25 Adopted Budget that was approved by City Council on June 18, 2024.

The approved guidelines may subsequently be modified or revised as economic and programmatic conditions evolve over time, including but not limited to:
· Anticipated or unanticipated changes in projected or actual revenues and/or expenditures · Economic trends and/or forecasts
· Overall fiscal health of the City
· Changes in programmatic and/or personnel needs
· Council priorities
Any future proposed changes to the guidelines will be presented to the Measure A Citizens’ Advisory Committee for discussion, and subsequently presented to City Council for approval.

A draft of the Measure A Expenditure Guidelines was presented to the Measure A Citizens’ Advisory committee for review and discussion on June 6, 2024. The Committee did not make any recommendations concerning the guidelines for staff to consider. Staff subsequently made minor, technical changes to the draft guidelines, and those changes are reflected in the current version recommended for Council approval (Exhibit 1 to the Resolution).

FINANCIAL SUMMARY
There is no fiscal impact associated with City Council’s approval of the Measure A Expenditure Guidelines. The expenditures displayed in the FY 2024-25 Measure A Expenditure Plan (Attachment A) are already included in the FY 2024-25 Budget that was adopted by City Council on June 18, 2024.

Attachment A - FY 2024-25 Measure A Expenditure Plan
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ATTACHMENT A
Measure A Revenues
Measure A Transaction & Use Tax $ 47,058,000
Total Measure A Revenues $ 47,058,000
Law Enforcement and Crime Prevention (65%)
Law Enforcement
Salary & Benefits - 60 Sworn Positions $ 14,242,486
Salary & Benefits - 33 Civilian Positions 4,825,845
Vacancy Savings (1,531,305)
Recruitment, Retention, and Wellness Efforts (Side Letter) 12,295,709 Administration and Contracted Service Delivery Costs 4,590,249 Fuel 378,960
Materials & Supplies 755,825
Training & Staff Development Services 601,809
Office of Violence Prevention
Salary & Benefits - 8 Civilian Positions 1,220,264
Administration and Contracted Service Delivery Costs 328,934 Fuel 33,418
Materials & Supplies 45,000
Office Equipment 3,379
Training & Staff Development Services 53,500
Total Law Enforcement and Crime Prevention Expenditures $ 37,844,073 % of Revenues (65% advised) 80%
General City Services (35%)
Bankruptcy Recovery: Assured Guaranty Contingent Payment $ 5,927,000 Restoration of Service: Victory Park Pool 3,000,000
Restoration of Service: Fire Station No. 7 286,927
Total General City Services Expenditures $ 9,213,927
% Of Revenues (35% advised) 20%
Measure A Expenditure Plan*
FY 2024-25
*Measure A is a general tax imposed for general governmental purposes, the proceeds of which may be used for any lawful purpose of the City and are not restricted or limited to the expenditures identified in this plan. 834
Resolution No.

STOCKTON CITY COUNCIL

RESOLUTION APPROVING MEASURE A EXPENDITURE GUIDELINES
On December 5, 2023, City Council adopted an ordinance extending for 10 years (through March 31, 2034) the term of the City of Stockton transactions and use tax ordinance (“Measure A”) approved by voters at the November 5, 2013, election; and Measure A is a general tax imposed for general governmental purposes; and Voters also approved Measure B on November 5, 2013, a non-binding advisory measure that recommends 65% of Measure A proceeds be used for law enforcement and crime prevention services, and 35% of Measure A proceeds be used for general City services, including recovery from bankruptcy; and
The City’s internal auditor recommended City Council adopt guidelines to increase visibility and transparency of the uses of Measure A proceeds, and to demonstrate the City’s alignment with Measure B; and
The City Council’s adoption of guidelines for Measure A proceeds does not restrict or legislate the use of those proceeds, nor do the guidelines legally obligate the proceeds for any particular purpose; now, therefore,

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

1. The City Council hereby adopts the Measure A Expenditure Guidelines, attached hereto as Exhibit 1, incorporated by this reference.

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

PASSED, APPROVED, and ADOPTED July 9, 2024 .

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

KATHERINE ROLAND, CMC, CPMC
Interim City Clerk of the City of Stockton
835
EXHIBIT 1
Measure A/B Expenditure Guidelines
Introduction
On December 5, 2023, the Stockton City Council adopted an ordinance to extend Measure A, a three-quarter percent transactions and use (sales) tax, through March 31, 2034. The measure was originally approved by voters on November 5, 2013, and became effective April 1, 2014.

On the same ballot, voters also approved Measure B, a non-binding advisory measure, to help communicate priorities and express an opinion about how the additional tax money should be used. On February 25, 2014, Stockton’s City Council supported the citizen’s approval of Measure B by implementing the first phase of the Marshall Plan on Crime.

Background
A performance audit performed by the City’s internal auditor, Moss Adams, noted the following:

Purpose
The purpose of this document is to address the above finding from Moss Adams, and construct expenditure guidelines that can be used to understand, direct, and track eligible costs.

According to Section 21 of the Measure A Ordinance (2013-07-09-1601), 100% of the proceeds of Measure A may be used for any lawful purpose of the City, as authorized by ordinance, resolution, or action of the City Council. The Ordinance explicitly states that Measure A is a general tax and not a special tax. The guidelines set forth below do not 836
EXHIBIT 1
restrict or legislate the use of these general purpose tax revenues, and are not intended in any way to legally obligate Measure A funds for any particular purpose. Instead, this document is designed to increase visibility and transparency, and demonstrate the City’s alignment with Measure B.

Benefits of Establishing Expenditure Guidelines
Several benefits will be achieved by establishing clear Measure A guidelines:
 Specific guidance to prescribe and encourage eligible costs to incur against Measure B recommendations.
 Specific contingencies for use of Measure funds when savings occur in high priority areas.
 Outlining the Marshall Plan into specific items that can be adjusted to respond to changes in the City’s demand for services.

These guidelines are meant to replace the aging Marshall Plan with a list of items categorized into goals that can be adjusted annually to respond to a changing fiscal environment.

Spending Priorities for the 65% Funds (Law Enforcement and Crime Prevention) What follows is a list of funding priorities that fit into general goals originally set forth by the Marshall Plan on crime. Funds will be prioritized in the order below. In addition, if a service or improvement will advance Marshall Plan goals, it will be in compliance with these priorities, even if not itemized below.

1. Fund Police Department (PD) and Crime Prevention Personnel a. 60 Sworn positions
b. 41 Civilian positions: 8 positions for the Office of Violence Prevention (OVP), and 33 positions for the Police Department and Neighborhood Betterment Teams (NBT) Division

2. Fund program expenditures:
a. PD capacity expenditures; technology, equipment
b. OVP expenditures
c. NBT expenditures
d. PD and Crime Prevention General Administration expenditures

3. Recruitment and Retention – Fund temporary recruitment and retention incentives, as provided for in the Side Letter Agreement Between the City of Stockton and Police Officers’ Association

4. Special Projects – Funds may be identified for special crime prevention projects or initiatives if savings occur in any of the above areas 837
EXHIBIT 1
Spending Priorities for the 35% Funds (General City Services) In addition to the 65% originally allocated to law enforcement and crime prevention expenditures, 35% is advised to go towards general City expenditures. Any amount not spent on law enforcement and crime prevention expenditures will be analyzed on an annual basis with the fourth quarter budget report and made available to the City Council for special consideration. Items specifically funded by this portion of Measure A will be tracked going forward to demonstrate the impact of the 35%. Budget Priorities include:

1. Assured Guaranty Contingent Payments – this is a direct result of the bankruptcy

2. Post-bankruptcy recovery/restoration of services

3. General City expenditures as approved by City Council

4. Building healthy reserves for the next economic downturn Development of Expenditure Plan
As part of the annual budget process, the City will develop and present an expenditure plan for Measure A funds for the upcoming fiscal year based on the spending priorities identified in these guidelines. The plan will be presented to the Measure A Citizens’ Advisory Committee, followed by a presentation to City Council for approval.

Future Updates to Guidelines
The guidelines contained herein may subsequently be modified or revised as economic and programmatic conditions evolve over time, including but not limited to:
 Anticipated or unanticipated changes in projected or actual revenues and/or expenditures
 Economic trends and/or forecasts
 Overall fiscal health of the City
 Changes in programmatic and/or personnel needs
 Council priorities
Any proposed changes to the guidelines will be presented to the Measure A Citizens’ Advisory Committee for discussion, and subsequently presented to City Council for approval.
838
Adopt Resolution Approving
Measure A Expenditure
Guidelines
City Council Meeting
July 9, 2024
Agenda Item 15.6
839
Measure A Background
¾ Cent Sales Tax
Approved as a General Tax by Voters in 2013
Accompanied by Advisory Measure B
35% General City Services
65% Law Enforcement and Crime Prevention
Subject to an array of oversight controls,
audits, and attestations
Extended by Council through March 31, 2034
¾ Cent Sales Tax
Approved as a General Tax by Voters in 2013
Accompanied by Advisory Measure B
35% General City Services
65% Law Enforcement and Crime Prevention
Subject to an array of oversight controls,
audits, and attestations
Extended by Council through March 31, 2034
840
Internal Performance Audit
 Internal Performance Audit performed by Moss
Adams in early FY 2023-24 at the Measure A
Advisory Committee’s request
 Performance Audit found no compliance
issues
 Audit recommended that the City could
benefit from Measure A Expenditure Guidelines
& Planning to Increase Visibility and
Transparency
 Internal Performance Audit performed by Moss
Adams in early FY 2023-24 at the Measure A
Advisory Committee’s request
 Performance Audit found no compliance
issues
 Audit recommended that the City could
benefit from Measure A Expenditure Guidelines
& Planning to Increase Visibility and
Transparency
841
Purpose and Benefits
Purpose:
 Understand, direct, and track uses of Measure A proceeds Benefits:
 Prescribe and Encourage eligible Measure B costs
 Identify Contingencies when savings occur
 Itemize Marshall Plan into specific items that can be adjusted to respond to changes in demand for
services, economic forecasts, Council priorities, etc.
Purpose:
 Understand, direct, and track uses of Measure A proceeds Benefits:
 Prescribe and Encourage eligible Measure B costs
 Identify Contingencies when savings occur
 Itemize Marshall Plan into specific items that can be adjusted to respond to changes in demand for
services, economic forecasts, Council priorities, etc.
842
Priorities: Law Enforcement
and Crime Prevention - 65%

1. Fund Police Department & Crime Prevention Personnel
a. 60 Sworn Positions, 41 Civilian Positions

2. Fund Program Expenditures
a. PD capacity Expenditures
b. OVP expenditures
c. Neighborhood Betterment Teams (NBT) expenditures
d. PD & Crime Prevention General Administration
Expenditures

3. Recruitment and Retention Incentives

4. Special Crime Prevention Projects

1. Fund Police Department & Crime Prevention Personnel
a. 60 Sworn Positions, 41 Civilian Positions

2. Fund Program Expenditures
a. PD capacity Expenditures
b. OVP expenditures
c. Neighborhood Betterment Teams (NBT) expenditures
d. PD & Crime Prevention General Administration
Expenditures

3. Recruitment and Retention Incentives

4. Special Crime Prevention Projects
843
Priorities: General City
Services - 35%

1. Assured Guaranty contingent payments

2. Post-bankruptcy recovery / restoration of
service

3. General City expenditures as approved by
City Council

4. Building healthy reserves for the next
economic downturn

1. Assured Guaranty contingent payments

2. Post-bankruptcy recovery / restoration of
service

3. General City expenditures as approved by
City Council

4. Building healthy reserves for the next
economic downturn
844
Expenditure Plan

1. Develop an Expenditure Plan each year
a. Provide to the Measure A Citizens Advisory
Committee followed by City Council approval

2. Revisions will be presented to committee and
council regularly

1. Develop an Expenditure Plan each year
a. Provide to the Measure A Citizens Advisory
Committee followed by City Council approval

2. Revisions will be presented to committee and
council regularly
845
Expenditure Plan (Attachment A)
(dollars in thousands)
Law Enforcement,
$36,160 (77%)
OVP, $1,684 (3%)
Assurred Guaranty
Payment, $5,927
(13%)
Victory Park Pool,
$3,000 (6%)
Fire Station No. 7, $287
(1%)
Measure A, $9,214
(20%)
FY 2024-25 Expenditure Plan
Measure B, $37,844
(80%)
846
Future Updates to Guidelines
 Will allow the City to respond to anticipated
and/or unanticipated changes, economic
trends, demand, priorities, and fiscal health
 Revisions will be presented to the Advisory
Committee for discussion, followed by City
Council approval
 Will allow the City to respond to anticipated
and/or unanticipated changes, economic
trends, demand, priorities, and fiscal health
 Revisions will be presented to the Advisory
Committee for discussion, followed by City
Council approval
847
Recommendation Action
 Adopt a Resolution approving the Measure A
Expenditure Guidelines (Exhibit 1 to the
proposed Resolution)
 Authorize the City Manager to take necessary
and appropriate actions to carry out the
purpose and intent of the approved guidelines
 Adopt a Resolution approving the Measure A
Expenditure Guidelines (Exhibit 1 to the
proposed Resolution)
 Authorize the City Manager to take necessary
and appropriate actions to carry out the
purpose and intent of the approved guidelines
848
City of Stockton
Legislation Text
File #: 24-0694, Version: 1
ACCEPT THE FISCAL YEAR 2023-24 FIRST AND SECOND QUARTER BUDGET STATUS

UPDATE AND AUTHORIZE BUDGET AMENDMENTS

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

1. Accept this budget status report on the unaudited results through the second quarter of Fiscal Year (FY) 2023-24.

2. Authorize a budget amendment to increase expenditure appropriation by $363,979 from the Development Services Fund (220) balance to cover the Information Technology Internal Services Fund expense.

3. Authorize a budget amendment to increase expenditure appropriation by $110,508 from the Development Services Fund (220) balance and $208,727 from the Measure K Fund (250) balance to cover Indirect Costs.

4. Authorize a budget amendment of $145,000 in the Public Works Department to reflect a transfer of Measure K funds between two capital projects.

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.

At the end of the second quarter, it would be expected that actuals would be at around 50% of the budget, or halfway utilized. As of December 31, 2023, General Fund revenues are at approximately 25% of the anticipated budget. This is due to the timing of receipts. Tax remittances are usually remitted from the collection agencies to the City any time from 60 - 90 days after the period closes.

Expenditures are largely at 38% utilization, with $129.0 million of the $340.0 million General Fund budget being spent down. The main factors driving this level of underutilizations are salary savings from vacant positions and project expenditures not yet being fully allocated to the funding source - project expenditures for the year are usually fully allocated by the fourth quarter.

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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. The mid-year quarters are not fully closed or audited, so it is expected that these numbers may change in future reports as departments reconcile their books and complete closing entries.

Present Situation
General Fund Revenues
The General Fund Revenues are detailed in Attachment B. Overall, Revenues are coming in at approximately 25% of revenues, which is generally consistent with previous second quarter results due to the timing of receipt of certain revenue streams.

General Tax Revenues make up 91% of the budgeted revenues in the General Fund. Staff expect that remittances from the collection agencies can take up to 90 days to post to the General Fund; as such, only first quarter sales tax revenues are reflected in this report. Taking this into consideration, the sales tax appears to be coming in slightly over budget, at 28.5% utilization. Property taxes are remitted to the City each year by San Joaquin County in January and April. Receipts for the first six months are about 1.7% of the annual estimate. These timing issues are normal and expected and will be adjusted by the fourth quarter report.

The other revenues are largely proceeding as expected or slightly lower due to anticipated market cooling and similar timing issues. These amounts generally do not contribute to the low utilization, as they make up only 9% of General Fund revenues. Overall, revenues are coming in as expected. After higher-than-expected revenues in the past several years, the City, under the advice of its tax consultants, is anticipating some cooling in tax revenue.

General Fund Expenditures
The General Fund Expenditures are detailed in Attachment A, with summary revenue amounts populated from Attachment B, for an estimated ending fund balance based on staff’s understanding of the City’s current fiscal climate. Expenditures are currently at 38% budget utilization; this is due to several factors.

Salary Savings Across the Board have resulted in mild-to-moderate savings in most program expenditures. Several departments continue to experience staff vacancies. At December 31, 2023, 1,450 out of 1,794 authorized positions had been filled Citywide, with 156 sworn and 59 civilian public safety positions vacant. The city has made comprehensive efforts to recruit and retain positions in a highly competitive environment, including expanding benefits and wellness efforts for employees. The City’s Office of Performance and Data Analytics is also collecting data and advising on data-driven solutions to hiring and retention.

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Timing with Multi-Year Program and Capital Improvement Expenditures has resulted in those items being understated in the first and second quarters. Economic Development and Capital improvement lines both show underutilization due to new contracts that have not been fully spent down yet. For instance, approximately $2.0 million in budget in the economic development fund will be reprogrammed in a future period for use in the land acquisition and redevelopment fund. Likewise, Capital Improvement expenditures will not be allocated to the funding sources until year-end close, resulting in what appears to be only a 6% utilization. In addition, much of the Capital Improvement budget of approximately $41.8 million is reserved for future years’ expenditures.

Other Major Funds
Attachment C summarizes the FY 2023-24 unaudited second quarter ending results for other significant City funds. Funds are coming in at around 50% budget utilization, with some exceptions - such as Measure W tax revenue, which has understated revenue due to similar reasons to the General Fund taxes described above. Likewise, debt service transactions are not expended in any regular pattern but instead by the scheduled due dates to bondholders. In addition, other transactions have not yet been posted through the second quarter.

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

FINANCIAL SUMMARY
This report provides an analysis of FY 2023-24 first and second quarter budget status results. The unaudited 6-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.

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 first and second quarter of FY 2023-24.

2. Increase FY 2023-24 expenditure appropriation in the Development Services Fund (220) by $363,979 from fund balance to cover the Information Technologies (IT) ISF calculated expenditure amount omitted in the FY 2023-24 Adopted Budget. This administrative budget amendment is necessary to reimburse the IT ISF for the service it provides to City Departments.

3. Increase FY 2023-24 expenditure appropriation in the Development Services Fund (220) by $110,508 from fund balance and in the Measure K Fund (250) by $208,727 from fund balance to cover the Indirect Costs expenditure amounts omitted in the FY 2023-24 Adopted Budget.

This administrative budget amendment is necessary to reimburse the General Fund for indirect costs incurred by City Departments.

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4. Authorize a budget amendment transferring $145,000 in Measure K funding from a traffic signal modification project to a lighted crosswalk upgrades project. Project No. WT15026 Lighted Crosswalk Upgrades will upgrade the existing pedestrian-actuated warning system in three locations. The three sites are on El Dorado Street, at the intersections of Main, Channel, and Lindsay Streets. The project was advertised for construction, and the construction bids received exceeded the available funding for the project. Staff is requesting to transfer $145,000 from project no. WT15029 Traffic Signal Modification to project no. WT15026 Lighted Crosswalk Upgrades to support construction for any unforeseen costs, risks, or scope changes that may impact the project's cost throughout the construction phase.

Attachment A - FY 2023-24 General Fund First and Second Quarter Budget Update Attachment B - FY 2023-24 General Fund First and Second Quarter Revenues Attachment C - FY 2023-24 First and Second Quarter for Other Major Funds City of Stockton Page 4 of 4 Printed on 7/3/2024
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ATTACHMENT A
City of Stockton
FY 2023-24 Budget Update - First and Second Quarter
General Fund - 100 by Program (Budgetary Basis)
Year to Date Year-End Projection Variance
Approved Activity % of Projected vs. Approved from
Budget Thru 12/31/2023 Budget as of 12/31/23 Budget Budget Beginning Available Balance $ 39,045,490 $ 39,045,490 $ 39,045,490 Release of Funds* 48,304,704 48,304,704 48,304,704
87,350,193 87,350,193 87,350,193
Revenues
General Tax Revenues 232,931,661 55,163,105 24% 244,472,417 11,540,756 5.0% Measure A/B Sales Tax 46,338,887 11,704,493 25% 46,596,000 257,113 0.6% Program Revenues 17,074,312 7,112,796 42% 20,213,627 3,139,315 18.4% Interfund Reimbursements 8,978,916 2,598,014 29% 8,979,569 653 0.0% 305,323,776 76,578,408 25% 320,261,614 14,937,837 4.9%
Expenditures
Programs
Police 161,086,108 73,269,667 45% 143,452,943 17,633,165 10.9% Fire 60,463,841 28,516,243 47% 59,403,756 1,060,085 1.8% Public Works 22,273,384 8,792,533 39% 18,584,554 3,688,830 16.6% Economic Development 7,722,966 1,319,038 17% 3,362,217 4,360,749 56.5% Office of Violence Prevention 2,265,599 1,057,787 47% 2,239,830 25,769 1.1% 253,811,898 112,955,268 45% 227,043,300 26,768,598 10.5% Program Support for Other Funds
Library 4,109,000 2,054,500 50% 4,109,000 - 0.0%
Recreation 3,292,592 1,646,296 50% 3,292,592 - 0.0%
Entertainment Venues 4,446,074 2,223,037 50% 4,446,074 - 0.0% Downtown Marina 262,000 131,000 50% 262,000 - 0.0%
Capital Improvement 41,818,303 2,575,000 6% 41,818,303 - 0.0% Golf Course 110,000 55,000 50% 110,000 - 0.0%
Grant Match 100,000 - 0% - 100,000 100.0%
Development Services 800,000 400,000 50% 800,000 - 0.0% 54,937,969 9,084,833 17% 54,837,969 100,000 0.2%
Administration
City Council 1,178,713 506,917 43% 1,068,782 109,931 9.3% City Manager 3,350,649 1,162,656 35% 2,896,836 453,813 13.5% City Attorney 1,488,127 559,001 38% 1,156,851 331,276 22.3% City Clerk 1,248,120 595,186 48% 1,205,433 42,687 3.4%
City Auditor 1,050,040 148,114 14% 513,147 536,893 51.1% Administrative Services 6,802,864 2,551,362 38% 6,674,487 128,377 1.9% Human Resources 4,364,245 1,146,091 26% 2,306,275 2,057,970 47.2% Tax Collection 2,789,474 496,709 18% 2,619,000 170,474 6.1% Elections 550,000 - 0% 850,000 (300,000) -54.5%
Other Administration (40,191) (381,518) 949% (307,038) 266,847 -664.0% General Legal 500,000 184,402 37% 500,000 - 0.0%
23,282,042 6,968,921 30% 19,483,773 3,798,269 16.3%
Debt Service 7,988,425 - 0% 9,061,425 (1,073,000) -13.4% Contingency - - - -
Total Expenditures 340,020,335 129,009,022 38% 310,426,467 29,593,868 8.7% Net Annual Activity (34,696,559) (52,430,614) 9,835,147 44,531,705 Proj. Ending Available Balance $ 52,653,635 $ 97,185,340 $ 44,531,705 Fund Balance as % of Expenses 15% 31%
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City of Stockton ATTACHMENT B
FY 2023-24 First and Second Quarters Revenues
General Fund - 100
Approved
Year-to-Date
Activity % of
Year-End
Projection
Year-end
Projection vs % Variance
Budget Thru 12/31/2023 Budget as of 12/31/2023 Budget vs. Budget General Tax Revenues
Sales Tax
Point of Sale 74,233,436 $ 22,231,575 $ 29.9% 73,863,832 $ (369,604) $ -0.5% Measure A Transaction Tax 46,338,887 11,704,493 25.3% 46,596,000 257,113 0.6% Proposition 172 3,218,074 1,404,401 43.6% 3,269,086 51,012 1.6% 35,340,469 123,790,397 28.5% 123,728,918 (61,479) 0.0%
Property Taxes
Property Taxes 43,251,000 740,405 1.7% 46,821,415 3,570,415 8.3% In-Lieu of Motor Vehicle Fees 31,042,455 - 0.0% 31,590,015 547,560 1.8% 74,293,455 740,405 1.0% 78,411,430 4,117,975 5.5%
Utility Users Tax
Water 5,020,799 2,519,617 50.2% 5,306,338 285,539 5.7%
Electric & Gas UUT 29,536,687 13,115,025 44.4% 31,554,103 2,017,416 6.8% Cable 2,562,827 945,968 36.9% 2,241,680 (321,147) -12.5% Telecommunications 3,382,714 1,667,175 49.3% 4,035,103 652,389 19.3% 40,503,027 18,247,785 45.1% 43,137,224 2,634,197 6.5%
Franchise Tax
Electric & Gas FT 3,010,218 - 0.0% 3,143,211 132,993 4.4% Cable/Video 2,049,381 412,342 20.1% 1,908,903 (140,478) -6.9% Waste Haulers 13,637,288 5,938,410 43.5% 14,263,539 626,251 4.6% Other 1,630 - 0.0% 2,860 1,230 75.5%
18,698,517 6,350,752 34.0% 19,318,513 619,996 3.3%
Business License Tax 14,874,886 5,213,832 35.1% 19,369,187 4,494,301 30.2% Hotel/Motel Tax 3,453,342 917,258 26.6% 3,405,378 (47,964) -1.4% Document Transfer Tax 972,295 412,979 42.5% 934,492 (37,803) -3.9% Motor Vehicle License 338,181 - 0.0% 399,537 61,356 18.1% Investment Proceeds 2,346,448 (355,881) -15.2% 2,363,738 17,290 0.7% 21,985,152 6,188,188 28.1% 26,472,332 4,487,180 20.4%
Program Revenues
Fire Contracts 5,636,461 3,033,803 53.8% 5,824,268 187,807 3.3% Code Enforcement 4,051,319 1,325,965 32.7% 4,250,653 199,334 4.9% Charges for Services 2,407,795 967,278 40.2% 2,851,316 443,521 18.4% Fines & Forfeitures 560,382 169,883 30.3% 452,866 (107,516) -19.2% Revenues from Other Agencies 4,033,724 1,046,621 25.9% 6,701,063 2,667,339 66.1% Licenses & Permits 381,331 21.0% 80,078 227,378 (153,953) -40.4% Sale of Fixed Assets 100,000 434 0.4% 10,000 (90,000) -90.0% Contributed Capital - 446,463 - -
Misc. Other Revenues (96,700) 42,271 -43.7% (103,917) (7,217) 7.5% 17,074,312 7,112,796 41.7% 20,213,627 3,139,315 18.4%
Interfund Reimbursements
Indirect Cost Allocation 4,856,141 2,250,510 46.3% 4,856,141 - 0.0% Refunds & Reimbursements 244,440 72,759 29.8% 257,093 12,653 5.2% Rents/Leases/Concessions 3,878,335 274,745 7.1% 3,866,335 (12,000) -0.3% 8,978,916 2,598,014 28.9% 8,979,569 653 0.0%
Total Revenues $ 305,323,776 $ 76,578,408 25.1% $ 320,261,614 $ 14,937,837 4.9% % Change from Prior Year 7.0% 5.0%
2023-24
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Attachment C
City of Stockton
FY 2023-24 First and Second Quarters
Financial Report for Other Major Funds
General Fund Subfunds
Measure A (Breakout of General Fund) Redevelopment & Land Acquisition Fund Year to % of Year to % of
Budget Date Actual Budget Budget Date Actual Budget
Revenues 46,338,887 11,704,493 25% Revenues - -
Transfers from General Fund - -
- -
Marshall Plan Expenditures Expenditures
Office of Violence Prevention 1,347,354 739,274 55% Land Acquisition - - Police 37,675,180 17,437,365 46% Total Expenses - -
Capital Projects - - 0%
Total Expenses 39,022,534 18,176,639 47%
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 3,600,693 3,600,693 Beginning Balance 894,737 894,737 Revenues 7,991,066 4,016,889 50% Revenues 4,896,441 2,029,431 41% General Fund Transfer 4,109,000 2,054,500 50% Expenditures 5,016,122 2,331,650 46% 6,071,389 12,100,066 50%
Expenditures Ending Balance 775,057 592,518
Administration 1,682,318 719,388 43%
Operations 1,831,492 873,932 48% Recreation 100-125 Fund Year to % of County Branches 7,315,979 3,005,610 41% Budget Date Actual Budget City Branches 3,629,572 1,615,884 45% Beginning Balance 1,465,071 1,465,071 Total Expenses 14,459,361 6,214,814 43%
Revenues 929,742 391,121 42%
Ending Balance 1,241,398 3,457,267 General Fund Transfer 3,292,592 1,646,296 50% 2,037,417 4,222,334 48%
Entertainment Venues 100-145 Fund Year to % of Expenditures Budget Date Actual Budget Administration 3,585,162 633,724 18% Beginning Balance 3,699,273 3,699,273 Recreation Programs 3,460,737 1,269,696 37% Total Expenses 7,045,899 1,903,419 27%
Revenues 3,657,343 2,428,926 66%
General Fund Transfer 4,446,074 2,223,037 50% Ending Balance (1,358,494) 1,599,069 Other Fund Transfer - -
4,651,963 8,103,417 57% Boat Launch 100-140 Fund Year to % of Expenditures Budget Date Actual Budget
Administration 392,180 101,738 26% Beginning Balance 1,189,600 1,189,600 Venue Operations 8,351,491 4,169,079 50%
Maintenance & Equip./Capital 2,649,206 600,539 23% Revenues 386,652 93,136 24% Total Expenses 11,392,877 4,871,356 43% Expenditures
Operations & Maintenance 255,543 109,116 43%
Ending Balance 409,813 3,479,880 Capital Projects - 0% - Total Expenses 255,543 109,116 43%
Ending Balance 1,576,252 1,282,736
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Attachment C
City of Stockton
FY 2023-24 First and Second Quarters
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 12,914,043 12,914,043 Beginning Balance 38,991,560 38,991,560 Revenues 15,328,904 3,882,934 25% Revenues 22,454,017 10,329,107 46% Expenditures General Fund Transfer 800,000 400,000 50%
Police 7,552,496 3,975,912 53% 23,254,017 10,729,107 46% Fire 8,181,871 3,788,131 46% Expenditures
Total Expenses 15,734,367 7,764,043 49% Community Development 14,905,776 5,458,558 37% Fire 4,399,807 1,926,457 44%
Ending Balance 12,508,580 9,032,934 Capital - - 0%
Total Expenses 19,305,583 7,385,015 38%
Strong Communities (Measure M) 210 Fund Year to % of
Budget Date Actual Budget Endging Balance 42,939,994 42,335,653 Beginning Balance 35,271,350 35,271,350
Revenues 15,039,465 3,753,909 25%
Expenditures
Library Programs 4,547,289 1,299,866 29%
Recreation Programs 6,539,876 1,970,407 30%
Administration 1,501,083 523,096 35%
Capital Projects 26,664,911 - 0%
Total Expenses 39,253,159 3,793,369 10%
Ending Balance 11,057,656 35,231,889
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 97,010,774 33,786,807 35% Revenues 6,180,215 2,948,772 48% Expenditures Expenditures
Administration 4,700,222 1,564,295 33% Administration 744,816 260,822 35% Operations & Maintenance 71,834,400 22,853,817 32% Parking Operations 3,054,947 1,543,519 51% Debt Service 12,772,636 - 0% Parking Enforcement 614,252 317,356 52% Capital 27,560,940 2,340,795 8% Debt Service 1,708,350 (361,608) -21% Total Expenses 116,868,198 26,758,907 23% Facility Improvements 1,597,717 230,202 14% Total Expenses 7,720,082 1,990,291 26%
Wastewater Utility 610 Funds Year to % of
Working Capital Budget Date Actual Budget Downtown Marina 640 Fund Year to % of Revenues 190,285,485 45,340,119 24% Working Capital Budget Date Actual Budget Expenditures Revenues 386,849 221,048 57%
Administration 5,902,977 1,847,469 31% General Fund Transfer 262,000 131,000 50% Operations & Maintenance 80,232,611 23,899,585 30% 648,849 352,048 54% Debt Service 4,219,219 - 0% Expenditures
Capital 121,227,161 13% Administration 5,000 15,460,837 305 6% Total Expenses 211,581,968 41,207,891 19% Operations 664,151 328,337 49% Capital - - 0%
Stormwater Utility 620 Funds Year to % of Total Expenses 669,151 328,642 49% Working Capital Budget Date Actual Budget
Revenues 8,294,258 3,019,358 36% Golf 650 Fund Year to % of Expenditures Working Capital Budget Date Actual Budget
Administration 2,872,960 613,376 21% Revenues 22,094 13,576 61% Operations & Maintenance 7,100,493 2,158,191 30% General Fund Transfer 110,000 55,000 50% Capital 2,299,665 248,377 11% 132,094 68,576 52%
Total Expenses 12,273,118 3,019,944 25% Expenditures
Administration 54,714 28,491 52%
Swenson Golf Course 62,500 0% -
Van Buskirk Golf Course 89,276 19,371 22%
Total Expenses 206,490 47,862 23%
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Resolution No.

STOCKTON CITY COUNCIL
RESOLUTION ACCEPTING THE FISCAL YEAR 2023-24 FIRST AND SECOND

QUARTER BUDGET STATUS UPDATE REPORT, AND AUTHORIZE BUDGET

AMENDMENTS
Fiscal Sustainability is one of the City Council’s goals; and City Council adopted the Fiscal Year (FY) 2023-24 Annual Budget on June 20, 2023, following a duly noticed budget study session and a public hearing, and By the staff report accompanying this Resolution, incorporated into this Resolution by this reference (Staff Report), the Council has been provided with additional information upon which the actions set forth in this Resolution are based; now, therefore,

BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF STOCKTON, AS FOLLOWS:
1) Accept this budget status report on the results of the First and Second quarters of Fiscal Year 2023-24.
2) Authorize a budget amendment to increase expenditure appropriation by $363,979 in the Development Services Fund (220) from fund balance. 3) Authorize a budget amendment to increase expenditure appropriation by $110,508 in the Development Services Fund (220) from fund balance and by $208,727 in the Measure K Fund (250) from fund balance.
4) Authorize a budget amendment transferring Measure K funding between two capital projects in the amount of $145,000.
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5) The City Manager is hereby authorized to take whatever actions are appropriate and necessary to carry out the purpose and intent of this Resolution.

PASSED, APPROVED, and ADOPTED July 9, 2024 .

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

KATHERINE ROLAND, CMC, CPMC
Interim City Clerk of the City of Stockton
858
FY 2023-24
First and SecondQuarters –Budget ReportImelda ArroyoBudget OfficerAgenda Item 15.7July 9, 2024 859
2nd Quarter FY 2023‐24
General Fund Revenues
As of December 31, 2023:• Year to Date = $76.6 million
• 25.1% of the $305.3 million budget
Year‐end Projection:• $320.3 million
• $14.9 million, 4.9% over the budget
• Largest variances:
• Business License Tax +$4.5 million• Property Taxes +$3.6 million • Rev. from Other Agencies +$2.7 million
860
Revenues
Proceeding as expected – tax revenues
can take up to 90 days to post.

Operating revenues are showing signs ofmild cooling anticipated by City’sconsultants.

Budget
Budget
Budget Budget
Q2 Actuals
Q2 Actuals
Q2 Actuals Q2 Actuals
0 50
100150200250300
2023 Tax Revenue 2024 Tax Revenue 2023 Program
Revenue
2024 Program
Revenue
Budget Q2 Actuals
861
2nd Quarter FY 2023‐24
General Fund Expenditures
As of December 31, 2023:• Expenditures = $129.0 million • 38% of the $340.0 million budget
Year‐end Projection:• $310.4 million
• $29.6 million, 8.7% under budget
• Police Department $17.6 million
• Economic Development $4.4 million
• Public Works $3.7 million
862
Expenditures
• Expenditures also proceeding as expected.
• Currently at 38% Budget Utilization
• Due to Salary Savings & Multi‐year
expenditures that have not posted yet.
1,450out of1,794Positionsfilled
Authorized /
budgeted Authorized / budgeted
filled /
utilized filled / utilized
0%
20%40%60%80%
100%120%
Positions Filled Q2 Budget
Utilized
Police
Fire 57%
22%
Public
Works
7%
Econ Dev
1%
Violence
Prevention
1%
Other
Funds 7%
Admin 5%
Actual Q2 Expenditures
863
2nd Quarter FY 2023‐24
Recommendations
• Accept 2nd Quarter Budget Status Update report.
• Adopt Resolution approving three budget amendments:

1. Appropriate $363,979 from the Development
Services fund balance to cover the IT ISFs
expense

2. Appropriate $110,508 from the Development fund balance and $208,727 from the Measure K fund balance to cover Indirect Costs

3. Transfer funds in the amount of $145,000 from
the Traffic Signal Modification, Project No.

WT15029 to the Lighted Crosswalk Upgrades ,
Project No. WT15026
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City of Stockton
Legislation Text
File #: 24-0648, Version: 1
DISCUSS AND CONSIDER A RESOLUTION TO AUTHORIZE APPROPRIATION OF $3,000,000

FROM THE GENERAL FUND TO CITY COUNCIL PRIORITY PROJECTS

RECOMMENDATION
It is recommended that the City Council discuss and consider a resolution recommended by the Council Budget/Finance/Economic Development Committee authorizing a FY 2024-25 General Fund appropriation and any necessary transfers of $3,000,000 to eleven City Council priority projects.

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
At the Council meeting on January 23, 2024, the City Council discussed Agenda Item 15.1 - Accept the Fiscal Year 2022-23 Fourth Quarter Budget Status Update, Authorize Budget Amendments, and Make Allocations to General Fund Reserves, which included appropriating $4,000,000 from the General Fund for Council priority projects to be allocated following discussions by the Council Budget/Finance/Economic Development Committee (Committee).

At its March 29, 2024 meeting, the Committee approved Motion 2024-03-29-0303 recommending that $1,000,000 of the $4,000,000 from the FY 2022-23 General Fund balance be appropriated and allocated to the Stockton Shelter Navigation Center, and the balance of $3,000,000 remaining available to be discussed at a future Committee meeting. City Council subsequently approved the Committee’s recommended $1,000,000 for the Stockton Shelter Navigation Center during its May 21, 2024 meeting (Motion 2024-05-21-1203).

The Committee convened again on May 1, 2024, and June 11, 2024, to consider allocation of the remaining $3,000,000 General Fund balance available and make recommendations to the full Council. During these meetings, staff provided information on several potential projects identified by the Committee at the March 29, 2024 meeting.

At the June 11, 2024 meeting, the Committee approved Motion 2024-06-11-0302 recommending that the $3,000,000 from the FY 2022-23 General Fund balance be appropriated as follows, and be presented to the Council for consideration: Grupe Park pickleball courts, $302,500; Mormon Slough improvements, $425,000; Lincoln Road/Alexandria clean-up, $130,000; Formation of Maintenance District for Five Mile Creek, $100,000; Swenson Park miniature golf, $433,057; Anderson Park playground, $300,000; Loch Lomond Park playground, $300,000; Van Buskirk tennis court lighting replacement, $185,000; Van Buskirk Park playground replacement, $375,000; Williams Brotherhood handball court lighting replacement, $80,000; Oak Park Magpie fencing replacement, $80,000; Contingency for Council priority projects, $289,443. The Committee also recommended that to the City of Stockton Page 1 of 3 Printed on 7/3/2024
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File #: 24-0648, Version: 1
extent the $3 million is not fully expended on the aforementioned projects, the unobligated balance should be put towards restoration of old asphalt and addition of a decorative concrete/brick walkway at the Haggin Museum.

The Committee is recommending that the City Council discuss adopting a resolution to authorize a FY 2024-25 General Fund appropriation of $3,000,000 to the various projects as itemized in Exhibit 1 to the Resolution.

DISCUSSION
Background
At the Council meeting on January 23, 2024, the City Council discussed Agenda Item 15.1 - Accept the Fiscal Year 2022-23 Fourth Quarter Budget Status Update, Authorize Budget Amendments, and Make Allocations to General Fund Reserves. This item included authorization to earmark $4,000,000 for Council priority needs with allocation of the funds to be brought back to the full Council after discussion by the Committee. The $4,000,000 is one-time in nature from unanticipated expenditure savings and revenues, and therefore it should be used for one-time activities.

The Committee met to discuss potential projects on March 29, 2024, May 1, 2024, and June 11, 2024. At the March 29th meeting, Committee approved a motion for City Council to consider allocating $1,000,000 of the available priority funding to the Stockton Shelter Navigation Center. City Council subsequently approved this allocation at its May 21, 2024 meeting.

Present Situation
The Committee motion from its June 11, 2024 meeting recommends the following allocation of FY 2024-25 General Fund moneys:

1. Anderson Park playground $300,000

2. Loch Lomand Park playground $300,000

3. Van Buskirk tennis court lighting replacement $185,000

4. Van Buskirk Park playground replacement $375,000

5. Williams Brotherhood Park handball court lighting replacement $80,000

6. Oak Park Magpie fencing replacement $80,000

7. Grupe Park pickleball courts $302,500

8. Mormon Slough improvements $425,000

9. Lincoln Rd/Alexandria clean-up $130,000

10. Maintenance District formation for Five Mile Creek $100,000

11. Swenson Park miniature golf $433,057
Subtotal $2,710,557
Contingency $289,443
Total $3,000,000
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FINANCIAL SUMMARY
Following are the budget amendments and transactions needed to complete the recommended actions:

Appropriate $3,000,000 from the General Fund Balance to the various projects and necessary transfer accounts based on Council allocation. Exhibit 1 to the Resolution details the recommendation from the Committee. A contingency of $289,443 is available for administrative appropriation to the projects specified as needed, for a total appropriation not to exceed $3,000,000.

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Resolution No.

STOCKTON CITY COUNCIL
RESOLUTION AUTHORIZING APPROPRIATION OF $3,000,000 FROM THE

GENERAL FUND TO CITY COUNCIL PRIORITY PROJECTS
City Council adopted the Fiscal Year (FY) 2023-24 Annual Budget on June 20, 2023, following a duly noticed budget study session and a public hearing; and City Council discussed the FY 2022-23 Fourth Quarter Budget Status Update on January 23, 2024, and allocated $4,000,000 to Council priority projects; and The City Council Budget/Finance/Economic Development Committee met on March 29, 2024, to discuss potential uses of the $4,000,000 and made a recommendation for review by the full City Council to allocate $1,000,000 to the Stockton Shelter Navigation Center; and
City Council approved the allocation of $1,000,000 General Fund to the Stockton Shelter Navigation Center on May 21, 2024; and
The City Council Budget/Finance/Economic Development Committee subsequently met on May 1, 2024, and June 11, 2024, to discuss potential uses of the remaining $3,000,000 and made a recommendation for review by the full City Council; now, therefore,

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

1. Authorize the appropriation and any necessary transfers of $3,000,000 from the General Fund Balance to the various projects as detailed in Exhibit 1. //
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2. 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 July 9, 2024 .

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

KATHERINE ROLAND, CMC, CPMC
Interim City Clerk of the City of Stockton
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EXHIBIT 1
Project Description
Committee
Recommendation
1 Playground at Anderson Park Install a new playground at Anderson Park. $ 300,000 2 Playground at Loch Lomand
Park
Install a new playground at Loch Lomond Park,
replacing a structure that was burned.
300,000
3 Van Buskirk Tennis Court
Lighting Replacement
Replace stolen wire, controls, and lights at VB tennis
courts.
185,000
4 Van Buskirk Park Playground
Replacement
Playground area enhancements. 375,000
5 Williams Brotherhood Park
Handball Court Lighting
Replacement
Replace stolen wire, controls, and lights at Williams
Brotherhood handball courts.
80,000
6 Oak Park Magpie Fencing
Replacement
Remove and replace damaged ornamental fencing
surrounding picnic area.
80,000
7 Grupe Park Pickleball Courts Add pickleball courts to Grupe Park. 302,500 8 Mormon Slough Improvements Extensive sidewalk repairs (excludes Stanislaus St.) 425,000 9 Lincoln Rd/Alexandria Cleanup (Five Mile Creek)
Hyacinth removal on east and west sides. 130,000
10 Maintenance District formation
for Five Mile Creek
Proceed with formation of a Maintenance District for
Five Mile Creek to provide dedicated funding for future maintenance/repairs.
100,000
11 Miniature Golf at Swenson Park
Funding to support construction of miniature golf
course at Swenson Park.
433,057
Contingency Funds
Contingency funding to support unanticipated
increases in the projects listed above.
289,443
TOTAL $ 3,000,000
Budget/Finance/Economic Development Committee Meeting

PROJECT SUMMARY
870
Authorize
Appropriation of
$3 Million General
Fund for Council
Priority Projects
City Council Meeting
July 9, 2024
Agenda Item 15.8
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Background
• At the January 23, 2024 Council meeting, the Council
discussed Fiscal Year 2022-23 Fourth Quarter Budget results and General Fund Reserves
• Council action 2024-01-23-1501 approved an appropriation of $4,000,000 from the General Fund for Council Priority Projects to be guided by the Budget/Finance/Economic
Development Council Committee
• The Committee met on March 29, 2024, and approved a
motion to recommend City Council allocate $1 million of the $4 million to the Stockton Shelter Navigation Center, which the Council subsequently approved on May 21, 2024
• The Committee met in May and June of 2024 to discuss
potential uses of the remaining $3 million, and approved a motion with project funding recommendations for full
Council approval on June 11, 2024
872
Committee Recommendations
873
Recommendation
• Discuss and consider the funding allocations
recommended by the Budget/Finance/Economic
Development Council Committee
• Authorize a FY 2024-25 appropriation and any necessary transfers for the $3,000,000 earmarked from the FY 2022-23 General Fund balance
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Next Steps
• Tonight’s action authorizes adding the budget for the approved projects
• Staff will begin the necessary project planning and
procurement processes to implement each project
• Grant-funded projects will continue to take priority over General Fund projects, as grant funds are time-sensitive and subject to expiration and/or penalties
875
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City of Stockton
Legislation Text
File #: 24-0357, Version: 1
ADOPTION OF A RESOLUTION APPROVING AMENDMENTS TO THE CITY’S GENERAL PLAN TO ADOPT THE 2023-2031 HOUSING ELEMENT AND REVISE THE SAFETY ELEMENT TO

COMPLY WITH STATE LAW

RECOMMENDATION
It is recommended that City Council:

1. Find no further environmental review is required per California Environmental Quality Act (CEQA) Guidelines Section 15183 (Consistency with a Community Plan or General Plan); and

2. Adopt a Resolution amending the Stockton General Plan to approve the 2023-2031 Housing Element and update the Safety Element for consistency with State Law.

It is also recommended that the City Manager be authorized to submit the 2023-2031 Housing Element for state certification and take appropriate and necessary actions to carry out the purpose and intent of the resolution.

Summary
The City is required by California law to update its Housing Element for the next 8-year period (2023- 2031) and receive certification approval from the California Department of Housing and Community Development (HCD). HCD’s certification is to ensure the City’s Housing Element adequately addresses how Stockton will meet its share of the Regional Housing Needs Allocation (RHNA), which was determined to be 12,673 new housing units which is further divided into four income categories of Very Low, Low, Moderate and Above Moderate income levels. Stockton’s share represents approximately 24% of the total 52,719 San Joaquin Countywide new housing unit allocation.

The proposed draft City of Stockton 2023-2031 Housing Element (dated April 2024) identifies Goals, Policies and Implementation Actions for meeting and exceeding the forecasted housing needs with an identified capacity of providing for 22,999 new housing units. This draft Housing Element is reflective of a multitude of comments received from the Stockton community, interested stakeholders and HCD over the course of an approximate 18-month time period.

In addition to the Housing Element update, State regulation (Assembly Bill (AB) 747, approved in 2019) requires California cities and counties to update the Safety Element in their General Plan to provide enhanced safety measures for protection from unreasonable risks associated with geologic hazards, flooding, and wildland and urban fires. More specifically, this entails updates or the creation of evacuation routes and their capacity, safety, and viability under various emergency scenarios. This update must be completed in conjunction with the Housing Element Update and repeated every eight years. Further, state regulation (AB 1409, approved in 2021), mandates consideration of "evacuation City of Stockton Page 1 of 6 Printed on 7/3/2024
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locations". This update is included in the proposed General Plan Amendment.

On May 22, 2024, HCD notified the City that the draft Housing Element substantially complies with state housing law and directed the City to seek local (City Council) adoption to authorize filing for State certification. To comply with State law, the City Council must adopt the element and submit to HCD for certification. The State mandated deadline for certification was originally the end of 2023, however, HCD allowed for extension without penalty since the City was proactively seeking the State’s review and approval since early 2023. Following HCD’s certification, progress on implementation of the Housing Element will be monitored with annual progress reports presented to the Planning Commission and City Council.

On June 13, 2024, the Planning Commission considered and voted (5-0) recommending the City Council adopt the 2023-2031 Housing Element and update to the Safety Element. The City Council is asked to adopt the General Plan Amendment to approve 2023-2031 Housing Element and update to the Safety Element to comply with State of California (State) housing law, and authorize the City Manager to submit the adopted Housing Element to HCD for certification.

DISCUSSION
Background
California cities and counties update their Housing Element every eight years (i.e. cycles) to comply with State regulations, which are overseen by HCD. This is the only element of the General Plan that is subject to State review and certification and is often utilized as an eligibility requirement for State housing and economic development grant opportunities. The City last updated the 2015-2023 Housing Element in 2014 (5th Housing Cycle) and the deadline to adopt the 2023-2031 Housing Element (6th Cycle) was December 31, 2023. The City was informed by State representatives that since the City was actively pursuing the State’s approval since early 2023, the City is considered in good standing and will not be penalized.

PlaceWorks and City staff began outreach efforts on the Housing Element in fall of 2022. Since then, there have been numerous meetings on the housing issues facing Stockton, including property owner meetings to discuss opportunity sites for Land Inventory needed to comply with RHNA. The prominent feedback received from outreach meetings and public comment includes:
· Make zoning changes that remove barriers to developing housing, · Provide adequate housing sites for all income groups, and · Provide equal access to supportive services (disability, special housing needs, minority groups).

The following is a brief summary of the milestones completed and still remaining to obtain HCD certification:
· October 2022-April 2023: Housing Element outreach.
· April 12, 2023: Start of Public 30-Day Review
· June 6, 2023: Start of HCD 90-Day Review
· September 1, 2023: City Receives HCD Compliance Letter requesting revisions City of Stockton Page 2 of 6 Printed on 7/3/2024
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· December 2023 & January 2024: Revised Housing Element posted to website · February 6, 2024: Start of HCD 60-Day Review
· May 22, 2024: HCD indicates draft Housing Element complies with State law. · June 13, 2024: Planning Commission approves recommendation to Council · July 9, 2024: City Council Adoption Consideration
· July 2024: City Submittal to HCD for Certification
In addition to the Housing Element, State law requires General Plan Safety Elements to be updated after January 2022 to address new changes to State law. The update must identify evacuation routes in Stockton and assess their capacity, safety, and viability for emergencies. Since 2022, discussions occurred with City departments (Fire, Police, Public Works) culminating into public drafts circulated to the public and surrounding agencies involved with emergency planning. The result was to establish a map of existing evacuation routes and hazard zones, review infrastructure capacity, assess risks and vulnerabilities, and identify goals, policies, and implementation programs to reduce risk and vulnerability.

Present Situation
The following summarizes the content and main points for the proposed 2023-2031 Housing Element and revised Safety Element.

Housing Element
Changes made to the draft Housing Element since the Planning Commission’s April 27, 2023, study session and HCD’s generally compliant determination on April 5, 2024 include:
· Multiple Policy and Program amendments to address clarification on placed-based actions, additional actions for the Housing Action Plan (HAP) and development code, types of resources the City can provide, use of City-owned properties, options for maintaining land to accommodate housing capacity, and commitments to explore special housing topics (i.e., performance requirements, funding options) within the housing cycle. · Clarification in the background report on farmworker demographics in the region, the City’s adopted Local Homeless Action Plan (LHAP), regional trends, updated demographics, and details on the City’s development process review times and local housing regulatory requirements.
· The Housing Inventory was updated based on feedback received from the State. This inventory is needed for the City to comply with its fair share of the State-required Regional Housing Needs Allocation (RHNA). The Inventory indicated that overall unit capacity for potential housing sites increased slightly, and there were some decreases in the City’s surplus capacity for low- and moderate-income groups based on State denial of some proposed sites.

Additional information was provided on approved private projects and city-owned land based on feedback from the State.
· Responses to public comments received in August and December 2023 incorporated into the latest draft Housing Element.

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Attachment A (Draft 2023-2031 Housing Element) includes a link to the redline edits made to address HCD and public comments received since December 2023. All working drafts and supportive materials can be viewed and downloaded at the City’s website at www.stocktonca.gov/ShapeStockton. A clean copy of the Housing Element is included as Exhibit 1 of the Proposed Resolution.

Safety Element
AB 747 and AB 1409 aim to ensure that local agencies adequately address the need for sufficient evacuation routes during a full-scale emergency. While Stockton does not have the same risks as other areas of the State or Nation (e.g., fire, tornados), it is not immune from major disasters. The three largest risks to the community are:
· Issue #1: Risk from Flooding (existing and due to climate change) · Issue #2: Risk from Dam Inundation
· Issue #3: Severe heat (individual health risk and fire) An analysis of evacuation scenarios was prepared to address the potential occurrence of major disasters and offers best-practice response and evacuation plans for residents, community members, and City staff (see Attachment B Safety Element Background Report). The objective is to create customized evacuation plans for three disaster scenarios. While flood, fire risks, and dam inundation remained the same, the vulnerability assessment identified climate-related risks and hazards such as drought, extreme heat, and severe weather. Based on the analysis findings, the following revisions to the General Plan's goals and policies are proposed. The actions will not alter existing emergency plans but are meant to guide future decisions when planning for land use and infrastructure. · POLICY SAF-2.2: Enhance the effectiveness of evacuations in Stockton. · Action SAF-2.2A: Require new development to provide adequate access for emergency vehicles and evacuation routes, including by designing roadway systems to provide multiple escape routes in the event of flooding or other emergencies. · Action SAF-2.2B: Regularly review the City’s evacuation maps and update as necessary. · Action SAF-2.2C: Regularly share the City’s evacuation maps with the public and property owners within flood zones.
· Action SAF-2.2D: Coordinate with transit and service providers to identify and advertise ways to evacuate in the event of a flood or other emergency for individuals with restricted mobility or those who may need additional assistance.
· Action SAF-2.2E: In partnership with the San Joaquin Council of Governments and other local agencies, retrofit potential evacuation routes to protect them against floodwaters and other emergencies, and ensure that they can provide viable paths out of Stockton. · Action SAF-2.2F: Conduct door-to-door evacuation notifications in areas with limited access to reliable communication, particularly in frontline communities or those that may need the greatest advanced notification.

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· Action SAF-2.2G: To the extent feasible in emergency conditions, phase evacuations to minimize roadway constraints and to allow all residents sufficient time to leave.

Attachment C (Draft Amended Safety Element) includes redlines to the existing Safety Element adopted in 2018, while a clean copy of the Safety Element is included as Exhibit 2 of the Proposed Resolution.

STAFF ANALYSIS
The City Council is asked to consider amendments to the General Plan for adoption of the 2023-2031 Housing Element and update to the Safety Element based on the following analysis.

State and Local Compliance
Housing Element
As indicated in the HCD Letter dated May 22, 2024, the State found the City’s Draft 2023-2031 Housing Element generally in compliance with State housing law requirements (Attachment D - HCD Letter). In addition, the Housing Element does not conflict with any other General Plan Element or regulatory document. To fully comply with State Law, the City Council must adopt the Housing Element and submit to the State for Certification. Once Certified, the City will monitor action programs annually as required by law. Changes to supportive documents (i.e., Development Code, Housing Action Plans) will be completed after adoption of the Housing Element.

Safety Element
While the Safety Element is not approved by the State like the Housing Element, the proposed revision to the Safety Element has been reviewed by various departments and agencies and is found to be in compliance with the City’s General Plan, the County’s Local Hazard Mitigation Plan (LHMP), the City’s Emergency Preparedness Plan, and with applicable State laws including the guidance issued by the Governor’s Office of Planning and Research (OPR) and California Governor’s Office of Emergency Services (CalOES).

Public Outreach
Between Fall 2022 and Spring 2023, as part of the overall Shape Stockton effort, City staff sent mailed notices to property owners, published dozens of notices to the Record, sent dozens of updates via e-mail blasts, hosted over fifteen (15) workshops, conducted dozens of interviews, and held numerous meetings with residents and stakeholders. Specifically for the Housing Element, those workshops include:
· September 14, 2022: Land Inventory Public Workshop #1 · October 19, 2022: Housing Element/Housing Action Plan Kick-Off Meeting · February 28, 2023: Land Inventory Public Workshop #2
· April 10, 2023: Housing Element Public Workshop #2
· April 27, 2023: Planning Commission Housing Element Working-Session City of Stockton Page 5 of 6 Printed on 7/3/2024
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The Housing Element workshops were intended to introduce the Housing Element Update project, encourage feedback on potential sites and issues, provide a draft document for comment, and provide responses and edits to address those comments received. The draft 6th Cycle (2023-2031) Housing Element was circulated to residents, stakeholders, and City departments for comments in April, August, and December 2023, and again in February and April 2024. Based on feedback in 2023 and 2024, the final Draft Housing Element was revised and submitted to HCD on April 29, 2024.

In addition, given that this effort requires a General Plan Amendment, the Project was circulated to State and regional tribal representatives in accordance with Senate Bill 18 (2004) with no additional mitigation measures proposed by the groups contacted. As required by State law, the draft Safety Element was circulated to the Central Valley Flood Protection Board, San Joaquin County Flood Control, and Water Conservation District, with no comments submitted as of writing this report.

Environmental Analysis
No further environmental review is required under CEQA for General Plan amendments pursuant to Section 15183 (consistency with the development density established by existing zoning, community plan, or general). Changes to Housing and Safety Elements are required by State law and provide additional information to reaffirm and clarify objectives, but do not alter land use designations, zoning, or development intensity, or result in an indirect or direct physical change to the environment.

Therefore, the changes are consistent with the General Plan and General Plan Environmental Impact Report (EIR) provided under Section 15183, and no further environmental review is required.

Planning Commission
On June 13, 2024, the Planning Commission voted 5-0 (two members absent) recommending the City Council adopt the 2023-2031 Housing Element and update to the Safety Element (see Attachment E - Planning Commission Approved Resolution).

Public Notice
Notice for the City Council public hearing for this request was published in The Record on June 27, 2024. Copies of the notices were sent to all stakeholders and interested residents from the Shape Stockton contact group, which consists of over 500 individuals. As of the publication of this report, no written comments have been received.

FINANCIAL SUMMARY
While there is no financial impact on the City for the adoption, a certified Housing Element allows the City to submit for funding related to housing. Most of the funds for consultant time was reimbursed by the Local Early Action Planning (LEAP) grants given to the City from the state in 2022.

Attachment A - Draft 2023-2031 Housing Element (Redline) Attachment B - Draft Safety Element Background Report
Attachment C - Draft Amended Safety Element (Redline)
Attachment D - HCD Compliance Letter
Attachment E - Planning Commission Approved Resolution
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City of Stockton
2023-2031 Housing Element
Subsequent Draft, April 2024
The Housing Element can be downloaded on the ShapeStockton/Housing and Safety Element website at https://www.stocktonca.gov/business/planning___engineering/housing_element.php ATTACHMENT A 883
SAFETY 5

CONTENTS
1 Overview ............................................................. 1

1.1 Purpose and Content.................................. 1

1.2 Relationship to Other Documents................ 1

1.3 Community Profile...................................... 2

1.3 Climate Change Vulnerability...................... 3 2 Public Safety Issues ................................................ 6

2.1 Public Safety .............................................. 6

2.2 Seismic and Geologic Hazards .................10

2.3 Flood and Inundation Hazards..................25

2.4 Hazardous Materials ................................39

2.5 Drought ..................................................41

2.6 Fire Hazards............................................44

2.7 Agricultural and Ecosystem Pests ...............47

2.8 Extreme Heat ...........................................48

2.9 Severe Weather........................................49

2.10 Human Health Hazards............................50

FIGURES
Figure 1 Evacuation Routes and Residential Parcels
with Evacuation Constraints........................ 9
Figure 2 Evacuation Constraints Modeling – Major
Flood Event (Max Legal Speed)................. 11
Figure 3 Evacuation Constraints Modeling – Major
Flood Event (5 mph) ................................ 12 Figure 4 Evacuation Constraints Modeling – 2050
Sea Level Rise (Max Legal Speed).............. 13
Figure 5 Evacuation Constraints Modeling – 2050
Sea Level Rise (5 mph) ............................. 14 Figure 6 Evacuation Constraints Modeling – 2085
Sea Level Rise (Max Legal Speed).............. 15
Figure 7 Evacuation Constraints Modeling – 2085
Sea Level Rise (5 mph) ............................. 16 Figure 8 Evacuation Constraints Modeling – Dam
Inundation (Max Legal Speed)................... 17
Figure 9 Evacuation Constraints Modeling – Dam
Inundation (5 mph).................................. 18 Figure 10 Regional Fault Lines................................. 21 Figure 11 Landslide Susceptibility ............................. 23 Figure 12 Flood Hazard and Levee Protection Zones . 27
Figure 13 Levees..................................................... 32 Figure 14 Sea Level Rise Projections: 2050
(Deterministic) ......................................... 33 ATTACHMENT B - Safety Element Background Report 884
Figure 15 Sea Level Rise Projections: 2050
(Probabilistic)........................................... 34 Figure 16 Sea Level Rise Projections: 2085
(Probabilistic)........................................... 35 Figure 17 Dam Inundation ...................................... 37 Figure 18 Wildland-Urban Interface Zones ............... 46 ATTACHMENT B - Safety Element Background Report 885
1 OVERVIEW

1.1 PURPOSE AND CONTENT
The Hazard Protection section of the Stockton Safety
Element is one of the state-mandated general plan
elements and must identify potential natural and humancreated hazards that could affect Stockton’s residents, businesses, and services. The purpose of the Safety
Element is to establish a framework that anticipates these hazards and prepares the community to minimize exposure to these risks.

The Safety Element conveys the City’s goals, policies, and actions to minimize the hazardous situations and protect and improve public health in and around Stockton. It
identifies the natural and human-caused hazards that
affect existing and future development, describes present and expected future conditions, and sets policies and
standards for improved public safety. This includes efforts to minimize physical harm to the buildings and
infrastructure in and around Stockton to reduce damage
to local economic systems, community services, and
ecosystems.

Some degree of risk is inevitable because the potential for many disasters cannot be eliminated completely, and the ability to predict such disasters is limited. However, the Safety Element aims to reduce this risk by:
• Developing a framework by which safety
considerations are introduced into the land use
planning process.
• Establishing a policy framework for periodic
updates of the hazard mitigation plan.
• Facilitating the identification and mitigation of
hazards for new development, and
strengthening existing codes, project review,
and permitting processes.
• Presenting policies directed at identifying and
reducing hazards in existing developed areas.
• Strengthening preparedness planning and
postdisaster reconstruction policies for
earthquake, flood, dam inundation, wildland
fire, and other relevant hazards.
• Identifying how natural and climate-related
hazards are likely to increase in frequency and
intensity in the future and providing policies to
increase community resilience through
preparedness and adaptation.

The Safety Element addresses the topic of public health and safety following state requirements in Section
65302(g) of the California Government Code. State law
requires that the Safety Element contain background
information and policies to address multiple natural
hazards, analyze the vulnerabilities from climate change and contain policies to improve climate change resilience, and assess residential areas with evacuation constraints.

The public safety issues in Stockton include public safety, seismic and geologic hazards, flood and inundation
hazards, hazardous materials, drought, fire, and climate change hazards including ecosystem pests, extreme heat, and severe weather. The Safety Element identifies goals and policies for each of these hazards.

1.2 RELATIONSHIP TO OTHER

DOCUMENTS
The Stockton Safety Element is one of several plans that address community public safety and related topics. These other plans include other General Plan elements, the 2022 San Joaquin County Emergency Operations Plan, and
various local regulations. The Safety Element should be consistent with these other elements and plans to minimize conflicts between documents and ensure that the City has a unified strategy to address public safety issues. The Safety Element incorporates information, technical analyses, and policies from these other documents where appropriate to help support this consistency.

1.2.4 General Plan Elements
The City Council adopted the Envision Stockton 2040
General Plan in 2018. Its six chapters are:
• Introduction
• Planning Framework
• Land Use (containing the Land Use, Open
Space, and Conservation Elements)
• Transportation (containing the Circulation and
Land Use Elements)
• Safety (containing the Safety and Noise
Elements)
• Community Health (containing the Land Use,
Environmental Justice, Conservation, and Air
Quality Elements)
The Safety Element provides policy direction and identifies safety improvements that complement the intent and
policies of other General Plan elements. Crucial
ATTACHMENT B - Safety Element Background Report 886
relationships exist between the Safety Element and the
other General Plan elements. How land uses are
determined in areas prone to natural hazards, what
regulations limit development in these areas, and how
hazards are mitigated for existing development, are
among the issues that tie the elements together.

Environmental justice concerns discussed in the
Community Health chapter may exacerbate residents’
vulnerability to environmental hazards. The Open Space
and Conservation Elements in the Land Use chapter are
closely tied to the Safety Element. Floodplains, for
example, are not only hazard areas, but often serve as
sensitive habitat for threatened or endangered species or provide recreation or passive open space opportunities for residents and visitors. Therefore, flood and inundation policies balance the need to protect public health and
safety with the need to protect habitat and open space.

Community Health and Safety chapters policies, especially those concerning evacuation routes and critical facilities, must also be consistent with those of the Transportation chapter. This Safety Element is consistent with the other elements of the Stockton General Plan.

1.2.5 San Joaquin County Emergency
Operations Plan
The EOP describes the planned response to extraordinary emergency situations associated with natural disasters, technological (human-caused) emergencies, and war
emergency operations in or affecting San Joaquin County.

The EOP establishes an emergency management structure
that coordinates and supports on-scene responses,
including maintenance of situational awareness,
facilitation of effective communication between operations centers at various levels of government, continuity of
government, and interaction with public information
sources; establishes the overall operational concepts
associated with the management of incidents,
emergencies, crises, disasters, and catastrophes at the county and city levels; and provides a flexible platform for planning and response to all hazards, incidents, events, and emergencies believed to be important to the
operational area. It is applicable to a wide variety of anticipated events, including floods, droughts,
earthquakes, and public health issues.

1.3 COMMUNITY PROFILE
Founded in 1849 and incorporated in 1850, the City of
Stockton is one of the oldest incorporated cities in
California and the current seat of San Joaquin County. In 1922, Stockton city voters approved a city charter
(municipal constitution) with a city council–manager form of government that is still being used today. With a
population of approximately of 322,489, Stockton is one of the largest cities in the Central Valley. It is in Northern California, south of Sacramento and north of Modesto;
surrounded by farmland; and along Interstate 5, State
Route 99, and State Route 4. It is connected to San
Francisco Bay by the San Joaquin River, and is, with
Sacramento, one of the state's two inland seaports. The Stockton Municipal Airport, just south of the city limit, provides commercial passenger service to limited
destinations, along with air cargo service and other
operations.

Historically, Stockton’s major economic endeavors have
revolved around agriculture and shipping, including ship building. Stockton’s unique position as an inland seaport adjacent to agricultural land continues to influence the local economy. Today, major economic drivers include the construction, manufacturing, and engineering industries; e-commerce and logistics; education services; food
processing; and healthcare services. Major employers
include the Stockton Unified School District, St. Joseph’s Medical Center, Amazon, the City of Stockton, and San
Joaquin County.

In and around Stockton are thousands of miles of
waterways and rivers that make up the California Delta.

Local climate is generally characterized by warm, dry
summers and mild winters. The historical average high
temperature is 74.2°F, and the historical average low is

47.3°F. The city receives an average of 14.5 inches of rain per year.1
Stockton’s long history is marked by periods of systemic economic and racial discrimination. South Stockton was
redlined by the Home Owners Loan Corporation in the
1930s, discouraging lenders from offering loans in the
area. The Federal Housing Administration (FHA) and the
Veteran’s Administration used the HOLC maps for
underwriting, meaning residents of redlined communities could not benefit from federal mortgage subsidies the way white homebuyers and businesses could. This policy
ATTACHMENT B - Safety Element Background Report 887
reinforced segregation and led to disinvestment in redlined neighborhoods. Historical redlining has been shown to
correlate closely with the present-day environmental
quality and injustices in Stockton. Therefore, it is not surprising that historically redlined communities in
Stockton also have higher social vulnerability than other neighborhoods in the city.2

1.3 CLIMATE CHANGE VULNERABILITY
Changes to the global climate system are expected to
affect future occurrences of natural hazards in and around Stockton. Many hazards are projected to become more
frequent and intense in coming years and decades, and in some cases, these changes have already begun. Key
effects of climate change that affect Stockton include
increasing temperatures, changes in precipitation, and sea level rise. Overall, precipitation levels are expected to increase slightly; however, there are likely to be more years of extreme precipitation events and droughts that last
longer and are more severe.

Both droughts and floods are expected to become more
frequent and intense. Although Stockton is likely to
experience only a slight increase in overall annual
precipitation levels from climate change, rainfall is
expected to fall in fewer, extreme precipitation events.

Drought conditions will likely strain the water supplies obtained from the Stockton East Water District, causing the water shortage contingency plan and demand-reduction
actions to go into effect more frequently. Droughts also cause soil to dry out and condense, meaning that when
precipitation does return, water will be more likely to run off the surface rather than being absorbed into the ground, which can lead to floods.

High intensity and potentially catastrophic flooding is expected to occur more frequently in Stockton as a result of heavy rain events, which may overwhelm stormwater
systems, flood the San Joaquin and Calaveras Rivers, and contribute to levee failure. Sea level rise will further exacerbate the risk of levee failure and flooding.

Sea level rise is a gradual process, taking place over years or decades. Because Stockton is not immediately on the
coast, it is not affected by sea level rise as directly as a coastal community might be, and there is uncertainty
regarding which parts of the city will be most affected by sea level rise. However, sea level rise will cause water levels in the San Joaquin River Delta to rise, increasing the risk of flooding and threatening the integrity of the region’s levees. Saltwater intrusion due to sea level rise can also harm local ecosystems and agricultural production and
increase the salinity levels of local groundwater supplies.

Severe weather events, such as lightning, hail, heavy
rainfall, and high winds, may become more frequent and
intense due to climate change. Climate change is expected to cause an increase in intense rainfall, which is usually associated with strong storm systems. Heavy rainfall may also contribute to an increased risk of inland flooding.

Though landslide risk in Stockton is generally low, severe weather could exacerbate this risk.

Warmer temperatures are projected to cause an increase
in extreme heat events. The number of extreme heat
days—defined in Stockton as a day when the high
temperature is at least 102.3°F—is expected to rise from a historical annual average of 4 days per year to 23 days per year by the middle of the century (2035 to 2064), and to an average of 44 days per year by the end of the century (2070 to 2099). In addition, Stockton is expected to see an increase in the number of warm nights—defined in
Stockton as a night when the minimum temperatures stay
above 66°F—from a historical annual average of 4 nights per year to 27 nights per year by the middle of the century (2035 to 2064), and to an average of 66 nights per year by the end of the century (2070 to 2099). Extreme heat
and warm nights pose a significant human health risk,
especially to senior citizens, outdoor workers, and persons who do not have access to adequate cooling, including
people experiencing homelessness. Some buildings and
infrastructure systems may be damaged by very high
What is vulnerability?
Vulnerability is the degree to which natural, built, and human systems are susceptible to harm from
exposure to stresses associated with environmental
and social change and from the absence of a
capacity to adapt.

Source: California Governor’s Office of Emergency Services. 20202. California Adaptation Planning Guide.
https://www.caloes.ca.gov/climate.

ATTACHMENT B - Safety Element Background Report 888
temperatures, constraining their ability to meet community needs.

Hotter, drier weather because of climate change is
expected to lead to an increase in wildfires across Northern California. Wildfire risk in Stockton is generally low.

However, air quality in the city could be negatively
impacted by smoke from wildfires burning in other parts of the state.

Climate change can increase the rates of infection and
pest infestation for plants and animals because many of the pests that spread diseases are more active during
warmer weather. There are a number of diseases that are linked to climate change and can be harmful to the health of Stockton community members, such as hantavirus
pulmonary syndrome, Lyme disease, West Nile fever, and
Valley Fever. Many of these diseases are carried by mice and rats, ticks, mosquitos, and other pests. Weeds, insects, and diseases such as bark beetles and Sudden Oak Death
can impact local agricultural operations and ecosystems.

Warmer temperatures earlier in the spring and later in the winter can cause these animals to be active for longer
periods, increasing the time that diseases can be
transmitted.

1.4.4 Vulnerability Assessment Results
Under California law, the Safety Element is required to include a vulnerability assessment that looks at how
people, buildings, infrastructure, and other key community assets may be affected by climate change. The City
conducted a Climate Change Vulnerability Assessment in
the winter of 2023 to analyze Stockton’s susceptibility to climate-related hazards. Stockton’s vulnerability
assessment, prepared in accordance with the most recent available guidance in the California Adaptation Planning Guide, assesses how nine climate-related hazards
(agricultural and ecosystem pests, drought, extreme heat and warm nights, human health hazards, inland flooding, landslides, sea level rise, severe weather, and wildfire and smoke) may affect 62 different population groups and
community assets.

Each population or asset received a score of V1 (minimal vulnerability) to V5 (severe vulnerability) for each climaterelated hazard. The Climate Change Vulnerability Assessment indicates that Stockton’s populations and
assets are most vulnerable to inland flooding and sea level rise, followed by extreme heat, severe weather, wildfire and smoke, and human health hazards. The most vulnerable
communities include low-resourced people of color,
outdoor workers, and individuals experiencing
homelessness, all of whom are highly vulnerable to
extreme heat, human health hazards, inland flooding, sea level rise, severe weather, and poor air quality due to wildfire. Additional highly vulnerable populations include households in poverty; immigrant communities; persons
with chronic illnesses or disabilities; people without access to lifelines such as private vehicles, internet, and phone service; seniors; seniors living alone; and unemployed
persons.

Citywide, energy delivery is vulnerable to multiple hazards, including severe weather and flooding that can damage
or down power lines or flood or undermine substations. It is also vulnerable extreme heat, which reduces the
transmission capacity and strains the system, ultimately disrupting energy service. Extreme heat can also lead to power outages by causing mechanical failure of grid
equipment, heat damage to power lines, and creating a
high demand for electricity to power air conditioners, all of which place stress on the network and lead to rolling
blackouts.

Public safety power shutoff (PSPS) events or interruptions in energy service due to extreme heat can create
vulnerabilities for Stockton community members. A loss of electricity can cause a loss of refrigeration for food and medical supplies; limit cooking; and cause loss of cooling (particularly dangerous during extreme heat events),
lighting, and limited or no access to the Internet or other information systems. Many businesses are forced to close during a power outage, causing economic hardships and
depriving community members of important services, such as grocery stores, gas stations, and banks/ATMs. Power
outages may also be harmful to people who depend on
electrically powered medical devices.

The combined effects of flooding and sea level rise could cause significant damage and disruption to the majority of the city’s infrastructural systems, structures, economic drivers, and community services. Transportation
infrastructure, including bridges, roads, and railways, are all vulnerable to flood damage. SR-4 from Stockton west to Contra Costa County plays an important role in
economic development, daily commutes, shipping for
agricultural products and other goods, and evacuation
ATTACHMENT B - Safety Element Background Report 889
from the San Joaquin Delta in the event of flooding. This route runs through the 100-year floodplain and crosses
areas that are projected to be flooded under one foot of sea level rise (plus storm) scenarios. It is important to reduce flood risk along this roadway because it serves a rural area with few alternative routes.
3 Impacts to the
transit system are a major concern for the South Stockton neighborhood, which has a disproportionately high
percentage of transportation-disadvantaged
communities.* Several bus stops in downtown Stockton are within the 100-year floodplain, and the vast majority of bus stops surrounding transit-dependent census tracts in the Hammer Triangle area and the Harrell Park area are
within the 500-year floodplain.
4 Rail lines can be damaged by intermittent flooding. High water levels, particularly fast-moving flows, can damage railroad bridges and rail lines. These impacts cause
increased wear and tear on infrastructure, increasing
maintenance costs and disruptions during construction
and repair activities.
5 When flood water rises above the
rails, trains must reduce their speed to prevent damage to the train, slowing the movement of goods and people. The Union Pacific Railroad Stockton Railyard is immediately surrounded by a 500-year floodplain. The BNSF
Intermodal Railyard is in the 100-year floodplain. Flooding of these areas could cause widespread economic impacts
and subject nearby communities to health risks associated with exposure to hazardous materials.
6 Ports, including the Port of Stockton, are particularly vulnerable to flooding because they depend on the
waterfront and have limited ability to relocate. While the Port generally has 100-year flood protection, some of its access roads do not. Most terminals of the Port of Stockton are projected to be exposed to flooding by midcentury,
and the entire port is projected to be exposed by end of century.
7 Flooding at the Port of Stockton could interrupt
the Port’s operations, with potentially significant regional economic impacts.

Much of the Delta’s energy industry may be exposed to
flooding in the future, with the greatest number of exposed assets in San Joaquin County. Energy infrastructure has a * The U.S. Department of Transportation identifies transportation-disadvantaged communities as places where residents spend more and take longer to get where they need to go. Indicators considered when determining a community’s degree of transportation disadvantage include the percentage of the population that does not have access to a vehicle, commute length, walkability, and transportation costs as a percentage of household income. high sensitivity to flooding. Associated facilities are typically complex, with many electrical and mechanical
components that are susceptible to flood damage. Energy facilities also rely on a network of at- or below-grade pipelines and transmission lines to distribute natural gas and power throughout the region. Large floods may cause scouring or removal of sediment around pipelines,
creating support issues or damage. Submergence of pipes can also cause them to float or become displaced due to buoyancy effects. Depending on the materials, exposure to saltwater flooding may corrode transmission pipes,
requiring replacement before the end of the project’s
design life and or impediments to access for maintenance and inspections.
8 The City’s water and wastewater treatment infrastructure are also vulnerable to flooding and sea level rise. Water pipes, wells, and water intake and treatment infrastructure systems could be inundated by flood waters and sea level rise. Wastewater treatment plants (WWTP) contain
numerous treatment basins that may be overwhelmed
during a flood, resulting in sewage overflows. Damage to WWTPs could cause backup and overflows of untreated
sewage into adjacent neighborhoods and waterways,
which could cause serious public health and
environmental impacts.
9 Long-term sea level rise can
exacerbate wet weather flows into WWTPs.

Sea level rise is expected to place stress on the operation of the State Water Project and Central Valley Project and the ability of these projects to continue to meet water quality requirements in the Delta. Salinity intrusion into the Delta and San Joaquin Valley Groundwater Basin is
exacerbated by both sea level rise and drought.10 Water treatment plants can be corroded and damaged by salt
water, preventing the plants from functioning as needed.

Sea level rise and changes in hydrological patterns in Delta watersheds will place greater stress on the Delta’s flood management infrastructure, such as Delta levees and
upstream reservoirs. Most of the Delta’s flood
management infrastructure are designed to operate under historical sea level and hydrologic conditions that do not consider potential future climate change. Changing
ATTACHMENT B - Safety Element Background Report 890
climate conditions will place greater stress on the flood management system in the future.
11 Levees may be
overtopped or damaged by rising sea levels, reducing their flood protection benefits. Damage to Stockton’s key
infrastructure systems could have significant impacts on the economy, provision of basic services, and public health and safety. Floodwaters and sea level rise can also
damage homes, schools, medical buildings, and
businesses.

Though Stockton is most vulnerable to extreme heat,
flooding, and sea level rise, other hazards may also
damage buildings and infrastructure, interrupt community services and economic activity, threaten public health and well-being, and harm ecosystems. These include increases in agricultural and ecosystem pests, drought, human
health hazards, landslides (in limited areas), severe
weather, and wildfire and smoke events. Agricultural and ecosystem pests may make plant communities more
vulnerable to the effects of other climate stressors such as drought and may impact the operations of the local food processing industry. Drought may harm local ecosystems
and the communities and industries that depend on them, as well as facilitate saltwater intrusion and declines in local water quality. Overall landslide risk in the city is low, but landslides may damage buildings and roads in select
areas (see Figure 3). Stockton is most likely to experience the effects of wildfire through increased exposure to
wildfire smoke, which poses a threat to public health.

Outdoor workers, those with chronic health conditions,
those experiencing homelessness, and those lacking
access to adequate air filtration systems are most
vulnerable to the impacts of wildfire smoke.

The Safety Element includes goals, policies, and
implementation actions to increase community resilience and help lower vulnerability scores, particularly for the populations and assets that received a score of V4 or V5 in the Vulnerability Assessment. A full list of the
Vulnerability Assessment results is in Appendix A.
2 PUBLIC SAFETY ISSUES
This section outlines the existing and likely future
hazardous conditions and other public safety issues in
Stockton and the policy responses to these issues. The
public safety issues include:
• Public safety
• Seismic and geologic hazards
• Flood and inundation hazards
• Hazardous materials
• Drought
• Fire Hazards
• Agricultural and ecosystem pests
• Extreme heat
• Severe weather
This section provides details about the locations each
hazard or issue is likely, past notable events in and around Stockton, agencies responsible for providing protection from these public safety issues, and other background
information required by the State of California
Government Code Section 65302(g)(4).

The results of the Vulnerability Assessment are integrated into the hazards and other public safety issues previously mentioned.

2.1 PUBLIC SAFETY

2.1.4 Public Safety Services
The Stockton Police Department (SPD) and Fire
Department (SFD) provide essential services to keep the community safe.

2.1.4.1 Stockton Police Department
Stockton has one police station within the city limits, with two additional stations in the city’s sphere of influence, and provides 1.5 sworn officers per 1,000 residents.

The SPD provides service to a 65-square-mile area and is organized into two bureaus: the Operations Bureau, which includes the Field Operations, Special Operations,
Investigations Divisions; and the Logistics Bureau, which includes the Technical Services and Administrative Services Divisions. These divisions provide patrol, investigation, law enforcement, apprehension, and community programs in
Stockton. Other special programs in the SPD include
Special Weapons and Tactics Team (SWAT), Crisis
Negotiations Team, Community Response Teams (CRT),
Explosive Ordnance Disposal (EOD) Team, Mobile Field
ATTACHMENT B - Safety Element Background Report 891
Force, and Canine Unit. The animal service section is
included as part of the Administrative Services Division, which provides contracted shelter services to San Joaquin County.

The SPD maintains an average response time of five
minutes or less for priority one calls (where a threat to persons may exist).

2.1.4.2 Stockton Fire Department
Stockton contains 13 fire stations throughout the city, with

1.23 sworn firefighters per 1,000 residents. The SFD
mission is centered on providing emergency and
nonemergency services through public education,
prevention, and suppression and rescue activities. Fire prevention and response services include fire suppression, code enforcement, fire safety education, fire investigation, and special services such as plan checking and fire code operation permits. The SFD is an all-hazard fire
department, capable of mitigating all types of both
human-made and natural disasters. As such, the SFD
contains the following specialized teams:
• Hazardous Materials Team: A California Office
of Emergency Services Type II Hazardous
Materials Team staffed with seven personnel
daily, trained to the Hazardous Materials
Technician and Specialist level.
• Water Rescue Team: Staffed by a team of four
personnel daily, the water rescue team is
capable of both surface and subsurface water
rescues, helping to protect over 1,000 miles of
waterways surrounding the city. The team has
specialty apparatus including personal
watercraft, inflatable boats, and a water rescue
vehicle.
• Urban Search and Rescue (USAR) Team: Staffed
by a team of seven personnel daily, the USAR
Team is trained in rope rescue, confined space
rescue, trench rescue, and building collapse.

The team utilizes specialty apparatus including
a Type I heavy rescue and a California Office
of Emergency Services rescue trailer.

The SFD maintains mutual aid agreements with the
Lincoln, Tuxedo-Country Club, Boggs Tract, and Eastside Fire Districts and formal reciprocal agreements with the Woodbridge Fire Protection District, City of Lodi Fire
Department, and Cosumnes Fire Department in Elk Grove.

The City and San Joaquin County coordinate response in
emergency situations.

The SFD also supports the Community Emergency
Response Team (CERT), which provides training to
residents and members of the business community to
increase disaster awareness and emergency response
capacity.

The first arriving engine company typically arrives at the incident scene within 240 seconds. For low-rise structures, deployment of an initial full alarm assignment occurs
within 480 seconds. For high-rise structures, deployment of an initial full alarm assignment occurs within 610
seconds.

2.1.5 Funding for Public Safety
Measure W was approved by voters November 2, 2004.

It was originally adopted by Ordinance 038-04 C.S. and
is codified in Section 3.52 of the Stockton Municipal Code, Funding for Police and Fire Protection. The ordinance
provides for a ¼-cent transaction and use tax, a tax
dedicated to providing for police and fire personnel and services. The ordinance calls for Program Guidelines,
which were developed and adopted by the City Council on August 4, 2004. The Program Guidelines prescribe two
methods of ensuring that tax monies are used as specified by the ordinance—an independent audit and a citizen’s
committee. Measure W provides funding for 23
suppression positions in the SFD.

2.1.6 Emergency Response
The City maintains an EOP that addresses the City’s
planned response to natural disasters and public health emergencies. The plan is intended to facilitate multiagency and multi-jurisdictional coordination, particularly between the City of Stockton and its jurisdictions, including special districts, utilities, major businesses, and other government agencies.

The Stockton Municipal Code, Chapter 2.82, Emergency
Organization and Functions, establishes that the City
Manager is delegated to act as the Director of Emergency Services. In this role, the City Manager is authorized to manage the emergency events of the city, as well as to
develop, modify, and take other actions as may be
necessary to maintain and implement the City’s emergency response.

ATTACHMENT B - Safety Element Background Report 892
When emergency conditions exceed or have the potential
to exceed local resources and capabilities, the City may request, through the County, that the governor proclaim a state of emergency.

2.1.7 Community Warning Systems
San Joaquin County has partnered with Everbridge, a
public warning platform, to implement SJREADY, a
community notification system to alert residents about
emergency events and other important public safety
information. This system allows San Joaquin County to
provide residents with critical information quickly in a variety of situations, such as severe weather, unexpected road closures, and evacuations of neighborhoods and
buildings.

Other emergency alert systems include notifications
through broadcasters, cable television systems, and digital audio services, among others. These systems may be used by state and local authorities in cooperation with the
broadcast community to deliver important emergency
information, such as weather information, imminent
threats, AMBER alerts, and local incident information
targeted to specific areas. San Joaquin Office of
Emergency Services has historically used this system to provide real-time information to citizens about
evacuations, flood dangers, and other emergencies in our county.

2.1.3 Emergency Evacuation
With advanced warning, evacuation can be effective in
reducing injury and loss of life during a catastrophic event.

The San Joaquin County Office of Emergency Services has prepared an evacuation plan for response to flooding due to failure of a levee or dike. The evacuation plan includes routes for people evacuating by car; rally points for people needing assistance evacuating; and instructions for
evacuation and safety during a flood.

Figure 1 shows major evacuation routes in Stockton. The city has numerous roadways that may be called upon for
evacuation in the event of an emergency. Major
evacuation routes include SR-4, SR-26, SR-88, I-5, Airport Way, S El Dorado Street, W 8th Avenue, E Mariposa Road, Charter Way, Martin Luther King Jr Blvd, Hazelton Ave, E Main St, Weber Ave, W Park St, E Fremont St, Waterloo
Blvd, W Harding Way, Cherokee Rd, N El Dorado St,
Pacific Ave, Telegraph Ave, W Alpine Ave, Pershing Ave, Pacific Ave, N El Dorado St, E March Ln, N Wilson Way,
Holman Rd, E Hammer Ln, Morada Ln, Davis Rd, Thornton
Rd, and W Eight Mile Rd. If there is a need for an
evacuation, emergency responders will direct community
members to the suitable evacuation routes given the
specific needs and characteristics of the emergency.

Figure 1 also shows residential parcels with evacuation constraints, as required by Senate Bill 99, meaning that they are at least a half mile from a major roadway and
may have access to only one emergency evacuation route.

The lack of multiple emergency access points limits
roadway access for these properties, which may create
difficulties if there is a need to evacuate. Clusters of evacuation-constrained parcels are located throughout the city. Large clusters occur along the western edge of the city, especially in areas west of I-5 and north of Hammer Ln.

ATTACHMENT B - Safety Element Background Report 893
Figure 1 Evacuation Routes and Residential Parcels with Evacuation Constraints
ATTACHMENT B - Safety Element Background Report 894

2.1.4 Evacuation Constraints Analysis
As a part of the work to prepare the Safety Element, the City has identified the level of evacuation constraints in different parts of Stockton under four different emergency scenarios:
• A major flood, inundating both the 100-year
and 500-year flood plains and resulting in citywide levee failures. • Areas at risk of inundation from sea level rise by
2050.
• Areas at risk of inundation from sea level rise by
2085.
• Areas in the inundation zone of one or more
dams.

The City has modeled potential evacuation times under
these four scenarios. There are two sets of modeling results for each of the four scenarios. The first set assumes that all evacuees will be able to travel at the maximum speed limit along local roads and highways. The second set assumes
that all evacuees will be limited to a top speed of 5 miles per hour due to roadway constraints. Evacuees may be
able to travel at the maximum speed limit in some
instances, especially in the case of smaller evacuations or those that have enough advance warning to adequately
phase the evacuations. In a mass, sudden evacuation,
lower speeds are more likely.

This modeling uses a geographic information system (GIS) software to model travel times between residential areas in the affected hazard zones and points called “evacuation gateways”. These are access points out of Stockton, both highways and surface streets, that would not be blocked by the hazard event (including being blocked outside of Stockton’s borders, before evacuees could reach another community). These gateways are not ultimate destinations to which evacuees are traveling, but are points along
roadways where they can safely consider themselves
evacuated from Stockton once they have reached this
point. The more widespread the hazard, the more potential evacuation gateways are blocked, forcing evacuees to use a smaller number of gateways, creating additional
constraints. This modeling assumes a single car per
evacuating residential property. The modeling also
assumes some additional residential development in areas that are currently used for agriculture or open space, and includes modeling of unincorporated areas within the
Stockton’s sphere of influence.

Figures 2 through 9 show the results of the four scenarios under the two different speed results. Even under the
smaller evacuation scenarios, all viable evacuation
gateways are in northeast, east, and southeast Stockton.

Under the more widespread evacuation scenarios,
evacuation gateways are further limited to east or
southeast Stockton. If evacuees can travel at the maximum legal speed, almost all of Stockton can be safely evacuated in approximately 30 minutes or less, although some areas in east Stockton may take longer. If evacuees can only
travel at 5 miles per hour, evacuation times become
significantly longer. Most of the evacuating areas would need an hour or more to reach an evacuation gateway,
with some locations taking longer than three hours.

Many groups are likely to face higher levels of evacuation constraints, especially as flooding and other emergency events increase in frequency and severity. Disabled
persons and those with access and functional needs,
persons without access to a reliable personal vehicle, and similar groups are often most at risk. These persons may not be able to evacuate on their own and would require
assistance from the City or other government agencies,
community groups, or others (such as neighbors, family, or friends) to safely leave their homes. Stockton residents who have limited English proficiency or lack access to
reliable communications face evacuation constraints
because they may not receive accurate or timely
evacuation notices. Independent of other factors, residents in west Stockton generally face a greater level of
constraints because they are typically located further from safe ways out of the community.

ATTACHMENT B - Safety Element Background Report 895
Figure 2 Evacuation Constraints Modeling – Major Flood Event (Max Legal Speed)
ATTACHMENT B - Safety Element Background Report 896
Figure 3 Evacuation Constraints Modeling – Major Flood Event (5 mph) ATTACHMENT B - Safety Element Background Report 897
Figure 4 Evacuation Constraints Modeling – 2050 Sea Level Rise (Max Legal Speed)
ATTACHMENT B - Safety Element Background Report 898
Figure 5 Evacuation Constraints Modeling – 2050 Sea Level Rise (5 mph) ATTACHMENT B - Safety Element Background Report 899
Figure 6 Evacuation Constraints Modeling – 2085 Sea Level Rise (Max Legal Speed)
ATTACHMENT B - Safety Element Background Report 900
Figure 7 Evacuation Constraints Modeling – 2085 Sea Level Rise (5 mph) ATTACHMENT B - Safety Element Background Report 901
Figure 8 Evacuation Constraints Modeling – Dam Inundation (Max Legal Speed)
ATTACHMENT B - Safety Element Background Report 902
Figure 9 Evacuation Constraints Modeling – Dam Inundation (5 mph) ATTACHMENT B - Safety Element Background Report 903
There are several steps Stockton can take to prepare for evacuations and improve their effectiveness:
• Develop plans to safety evacuate Stockton
residents who do not have reliable access to a
private vehicle or would otherwise need
assistance evacuating. This can include using
transit vehicles, school buses, and other van
and bus fleets to provide evacuation support.
• Look at establishing shelter-in-place locations
throughout Stockton, especially in areas with
high levels of evacuation constraints, that are
adequately protected against flooding and
other hazards. For people who are unable to
safely evacuate the city, these locations can
provide a safe point of refuge. They should be
combined with resilience centers whenever
possible.
• If an evacuation is necessary, provide as much
advanced warning as possible. As the situation
allows, provide phased evacuation notices so
that those who need the most time to evacuate
are alerted first.
• In areas with low levels of English proficiency or
access to communication systems, conduct inperson evacuation noticing. Be sure to provide information in multiple languages.
• Work with the San Joaquin County Council of
Governments and other relevant agencies to
elevate or otherwise protect evacuation routes
and gateways, increasing the number of safe
paths out of Stockton.

The policies included in the Safety Element address these issues.

2.2 SEISMIC AND GEOLOGIC

HAZARDS
Seismic and geologic hazards are risks caused by the
movement of the Earth’s surface, or crust. Seismic hazards are earthquakes and related hazards. Geologic hazards
are other hazards involving land movements that are not linked to seismic activity.

2.2.4 Seismic Hazards
Seismic activity occurs along boundaries in the Earth’s crust called faults. Pressure along the faults builds over time and is ultimately released, resulting in ground shaking that we refer to as an earthquake. Earthquakes can also trigger other hazards, including surface rupture (cracks in the ground surface), liquefaction (causing loose soil to lose its strength), landslides, and subsidence (sinking of the ground surface). Earthquakes and other seismic hazards
often damage or destroy property and public
infrastructure, including utility lines, and falling objects or structures pose a risk of injury or death.

Earthquakes
An earthquake has the potential to cause significant
damage to life and property.

The Working Group on California Earthquake
Probabilities—a collaborative effort involving the US
Geological Survey, the California Geological Survey, and the Southern California Earthquake Center—estimates
that the 30-year probability of a magnitude 6.7 or greater earthquake striking the nearby San Francisco Bay area is 63 percent. The Hayward Fault, a major earthquake fault in the San Francisco Bay region, lies roughly 40 miles westsouthwest of Stockton. Recent seismological research concluded that the average earthquake recurrence interval on this fault is approximately 138 years, and the forecast probability of an earthquake of magnitude 6.7 or greater by 2036 is greater than 31 percent.

The Greenville Fault lies much closer to the city (i.e., estimated 22 miles), although its forecast activity is far less than the Hayward Fault. The maximum probable
earthquake is estimated to be magnitude 6.0, and the
probability of an earthquake of magnitude 6.7 or greater along this fault by 2036 is 3 percent.12 Figure 10 shows the location of faults around Stockton.

An earthquake of moderate to high magnitude generated
in the nearby San Francisco Bay area could cause
significant ground shaking in the Stockton area. This
ground shaking could cause damage to structures and
foundations not designed to resist those forces.

Underground utility lines are also susceptible where they lack sufficient flexibility to accommodate seismic ground motion. If an earthquake of this magnitude were to occur, most parts of Stockton could experience potential
casualties and damage from collapsed buildings,
damaged roads and bridges, fires, flooding, and other
threats to life and property. Modeling from the US
Geological Survey suggests that the shaking in Stockton ATTACHMENT B - Safety Element Background Report 904
would be considered “moderate” to “very strong” in the
event of a major Bay area earthquake.

Comparatively few subsurface faults have been mapped in the northern part of the San Joaquin Valley, and the largest of these is the Stockton Fault, which runs east-west across the city’s planning area. The fault is not exposed at the surface and is not recently active, with most of the known activity during the Oligocene and early Miocene epochs
(i.e., approx. 10 to 30 million years before present).

Furthermore, the Stockton Fault has not been classified as an “active” fault by the California Geological Survey.

In the event of an earthquake, the location of the
epicenter, as well as the time of day and season of the year, would have a profound effect on the number of
deaths and casualties and the extent of property damage.

There are several small-scale earthquakes that happen
weekly and are barely felt or not felt at all by people, but larger-scale or catastrophic shaking is less likely.

Nevertheless, property and human life in Stockton are at some risk for a significant earthquake causing substantial damage and strains on response and mitigation resources.

Most of the loss of life and injuries from earthquakes are due to damage and collapse of buildings and structures.

Building codes for new construction have generally been made more stringent following damaging earthquakes.

However, in Stockton, structures built prior to the
enactment of these improved building codes have
generally not been upgraded to current standards and are vulnerable in earthquakes. In Stockton, 52,737 homes, or 51 percent of all housing in the community, were
constructed prior to 1980.13 The damage caused by
earthquakes may trigger secondary hazards, including
urban fires, dam failures, and toxic chemical releases.

Liquefaction
In addition to the direct physical damage that can result from the motion of the earthquake, damage can result
from liquefaction. Liquefaction occurs where water-logged soils near the ground surface lose compaction during
strong ground motion, causing the soils to lose strength and behave as a liquid. This can cause building
foundations to shift and can result in significant structural damage. Soils susceptible to liquefaction are typically found in areas of low-lying, current, or former floodplains containing moist, fine-grained sediment.

Liquefaction is most often triggered by seismic shaking, but it can also be caused by improper grading, landslides, or other factors. The potential for liquefaction is greatest in areas underlain by bay mud or alluvium. Buildings in areas that experience liquefaction may suddenly subside and
suffer major structural damage. There are no liquefaction zones mapped in or around Stockton, although there may
still be a risk of liquefaction in the community.

ATTACHMENT B - Safety Element Background Report 905
Figure 10 Regional Fault Lines
ATTACHMENT B - Safety Element Background Report 906

2.2.5 Geologic Hazards
Geologic hazards such as subsidence, landslides,
liquefaction, and erosion depend on the geologic
composition of the area.

Landslides
Landslides are gravity-driven movements of earth materials that can include rock, soil, unconsolidated sediment, or combinations of such materials. The rate of landslide
movement can vary considerably; some move rapidly, as
in a soil or rock avalanche, and others creep or move
slowly for long periods of time. The susceptibility of a given area to landslides depends on many variables, but some
of the more important contributing factors are:
• Slope material: Loose, unconsolidated soil and
weakly hardened or highly fractured bedrock
are more prone to landslides.
• Slope steepness: Most landslides occur on
moderate to steep slopes.
• Structural geometry: The orientation of soils or
bedrock layers and their relationship to the
ground surface can affect landslide probability.
• Moisture: Increased moisture in subsurface soil,
bedrock pores, or bedrock fractures can
increase the likelihood of a landslide due to
decreased internal friction and increased weight
of the earth materials.
• Vegetation: Well-established vegetation and the
associated root structures help promote slope
stability.
• Eroded slopes or human-made cuts: Proximity
to eroded faces in soil or bedrock, as well as
proximity to cut (i.e., excavated) slope faces,
can increase landslide potential.
• Seismic shaking: Strong seismic shaking can
trigger landslides in otherwise stable slopes or
loosen the slope materials so they are more
prone to landslides in the future.

Due to the gentle topography throughout the city’s
planning area and lack of steep slopes, the probability of earthquake-induced landslides is very low.14 However,
several small landslide hazard areas are scattered
throughout the city, as seen on Figure 11.

Subsidence
Subsidence is the gradual caving in or sinking of an area of land. The Delta is vulnerable to subsidence; since the initiation of intense land management practices in the
1850s, half of the volume of organic peat soils in the Delta has been lost due to groundwater pumping, disturbance,
and oxidation, resulting in the lowering of some Delta
islands by as much as 25 feet below sea level. Subsidence rates have decreased substantially from early 20th century values and range from a few tenths of an inch per year to approximately 0.8 inches per year today.15
Subsidence of Delta islands creates height differences
between the land and adjacent water surface elevations in channels. These height differences amplify forces against the levees and drive flow through and underneath levees into the subsided islands. Irrigation water further
contributes to the accumulation of water in island drainage ditches, where it is routed to pumps and returned to
adjacent channels.16
Expansive Soils
Expansive soils can change dramatically in volume
depending on moisture content. When wet, these soils can expand; conversely, when dry, they can contract or shrink.

Sources of moisture that can trigger this shrink-swell
phenomenon include seasonal rainfall, landscape
irrigation, utility leakage, and/or perched groundwater.

Expansive soil can develop wide cracks in the dry season, and changes in soil volume have the potential to damage concrete slabs, foundations, and pavement. Special
building/structure design or soil treatments are often
needed in areas with expansive soils.

Expansive soils are typically very fine grained with a high to very high percentage of clay. The clay minerals typically include montmorillonite, smectite, and/or bentonite.

Based on a countywide map of expansive soils published
by the San Joaquin County Geographical Information
Systems Unit, much of the city’s planning area appears to be underlain by expansive soils, with shallow soils
exhibiting moderate shrink-swell potential.17 Measures
such as emplacement of nonexpansive fill or special
compaction of clay-rich soil may need to be considered
prior to construction. Soil shrink-swell properties often vary from site to site, and detailed geotechnical investigations generally provide the most reliable means of identifying and mitigating these soil characteristics.

ATTACHMENT B - Safety Element Background Report 907
Figure 11 Landslide Susceptibility
ATTACHMENT B - Safety Element Background Report 908

2.2.6 Past Occurrences
The 1989 Loma Prieta earthquake was a magnitude 6.9
earthquake on the San Andreas Fault near Mt. Loma Prieta in the Santa Cruz Mountains, approximately 80 miles
southwest of Stockton. Statewide, approximately 18,306
houses were damaged and 963 were destroyed, and
approximately 2,575 businesses were damaged and 147
were destroyed. The most notable damage included the
collapse of the elevated Cypress Structure section of I-880 in Oakland, the collapse of a section of roadbed on the Bay Bridge, and extensive damage to downtown Santa
Cruz and San Francisco’s Marina District. The Bay Bridge was unusable for a month.

The quake caused localized damages and significant
shaking across San Joaquin County. It resulted in 63
people killed, 3,757 reported injured, and 12,053
displaced, and the economic loss was approximately $10
billion. This earthquake was felt as far away as San Diego and western Nevada. As experienced before, an
earthquake equivalent to this strength in the Bay Area
would produce strong shaking and ground failure
throughout the region, including in Stockton. Other
notable seismic and geologic activity has occurred
periodically within and around San Joaquin County.

Significant incidents include:
• Linden earthquake, 1881. This earthquake,
possibly located on the Tracy-Stockton Fault,
had an estimated Modified Mercalli intensity of
VII.*
• The San Francisco earthquake of 1906, which
caused historic destruction in San Francisco,
also caused strong seismic shaking in San
Joaquin County.
• Two small quakes of magnitude 5.0 occurred in
Linden in 1940.
• Seismic shaking occurred within the Delta in
1979, 1980, 1983, 1984, and 1989. Impacts
of these shaking events were not verified.
• A magnitude 5.8 earthquake occurred along
the Greenville fault near Brentwood in 1980.
• In April 2006, heavy rains caused a landslide
along Corral Hollow Road at a Lawrence
Livermore Labs site in Tracy.
* The Modified Mercalli Intensity (MMI) estimates the shaking intensity of an earthquake at a specific location by considering its effects on people, objects, and buildings. It measures shaking on a scale of I (not felt) to X (extreme). At high intensities (MMI VII or above), earthquake shaking damages buildings.
• Though subsidence is generally a gradual
process, it can be exacerbated by periods of
drought with increased levels of groundwater
pumping. Significant subsidence in the San
Joaquin Valley was recorded during the 2012–
2016 drought; between May 2015 and
September 2016, subsidence of 25 inches was
recorded near the community of Corcoran.
18 2.2.7 Potential Changes to Geologic and
Seismic Risk in Future Years
Likelihood of Future Occurrence
a) Seismic Risk
Earthquakes are likely to continue on an occasional basis and are likely to be small in most instances. Most are
expected to cause no substantive damage and may not
even be felt by most people. Major earthquakes are rare, but a possibility in the region. A major earthquake along Earthquake Magnitude Scale
Magnitude 2.5 or less: Usually not felt but can be
recorded by seismograph.

Magnitude 2.5 to 5.4: Often felt, but only causes
minor damage.

Magnitude 5.5 to 6.0: Slight damage to buildings
and other structures.

Magnitude 6.1 to 6.9: May cause a lot of damage in
very populated areas.

Magnitude 7.0 to 7.9: Major earthquake. Serious
damage.

Magnitude 8.0 or greater: Great earthquake. Can
destroy communities near the epicenter.

Source: Michigan Technological University. 2022. Earthquake Magnitude Scale.
https://www.mtu.edu/geo/community/seismology/learn/eart hquake-measure/magnitude/.

ATTACHMENT B - Safety Element Background Report 909
any of the nearby faults could result in substantial
casualties and damage. A major earthquake on the
Hayward Fault could damage or destroy the primary
evacuation routes and bridges, limiting access in and out of the community. Underground utility lines are also
susceptible where they lack sufficient flexibility to
accommodate the ground motion. If serious shaking does
occur, newer construction is in general more earthquake resistant than older construction because of improved
building codes. Though liquefaction often causes severe damage to structures, structural collapse is uncommon.

Furthermore, the risk to public safety is relatively low as structures can be protected from liquefaction by special foundations.
b) Geologic Risk
Given the small area of the city that is subject to landslide risk, a major landslide in Stockton is unlikely. However, the city and larger Delta area will likely continue to be
susceptible to the effects of subsidence and expansive
soils.

Climate Change and Geologic and Seismic
Hazards
Though climate change is unlikely to increase earthquake frequency or strength, the threats from seismic and
geologic hazards are expected to continue. Climate
change may result in precipitation extremes (i.e., wetter rainfall periods and drier dry periods), though total
average annual rainfall may not change significantly.

Heavy rainfall could cause an increase in the number of landslides or make landslides larger than normal. The
combination of a generally drier climate in the future, which will increase the chance of drought and wildfires, and the occasional extreme downpour, is likely to cause more mudslides and landslides. Impacts from these
conditions would compound landslide potential for the
most susceptible locations.

The subsidence of Delta islands is exacerbated by
groundwater pumping, which in turn is exacerbated by
drought. Though groundwater management techniques
may reduce the severity of pumping-related subsidence,
they are not likely to eliminate it completely. Additionally, increasing water surface elevations due to sea level rise, hydrological changes, subsidence, and drainage ditch
deepening will increase pressure on levees and increase rates of seepage onto Delta islands. These effects will increase the probability of levee failure over time.19

2.3 FLOOD AND INUNDATION

HAZARDS
Flooding is the rising and overflowing of a body of water onto normally dry land. Floods are among the costliest
natural disasters in terms of human hardship and
economic loss nationwide, significantly threatening
people’s health and lives and causing substantial damage to structures, landscapes, and utilities. Flooding can be extremely dangerous, and even six inches of moving water can knock a person over given a strong current.

Floodwaters can transport large objects downstream that can damage or remove stationary structures, such as dam spillways. Ground saturation can result in instability, collapse, or other damage, and objects can be buried or destroyed through sediment deposition. Floodwaters can
break utility lines and interrupt services, and even standing water can cause damage to roads, foundations, and
electrical circuits. Other problems connected with flooding and stormwater runoff include erosion, degradation of
water quality, losses of environmental resources, and
certain health hazards.

A relatively common weather pattern that brings strong
winds and heavy rain to California, including Stockton, is often referred to as an atmospheric river. Atmospheric
rivers are long, narrow regions in the atmosphere that
transport most of the water vapor carried away from the tropics. When an atmospheric river makes landfall, it can release substantial amounts of water vapor in the form of rain or snow, often causing heavy rains that can lead to flooding and mudslides. On average, California
experiences five to six atmospheric rivers per year, though in some years it may only experience one to two
atmospheric rivers. Atmospheric rivers are responsible for up to half of the state’s annual precipitation and more than 80 percent of the flood damage, including levee breaches in the Delta.20
Reclamation of Delta land over many years has reduced
available floodplain and increased flooding potential.

Flood risk is therefore one of the most pressing threats to the Delta area, and Stockton is one of the areas at highest risk.

ATTACHMENT B - Safety Element Background Report 910

2.3.4 Flood Hazard Areas
Areas at an elevated risk of flooding are generally divided into 100-, 200-, and 500-year flood zones. A 100-year
flood zone has a 1 percent chance of experiencing a major flood in any given year, a 200-year flood zone has a 0.5 percent chance, and a 500-year flood zone has a 0.2
percent chance. The majority of the city is in one of these flood zones, as shown on Figure 12, making flooding a
hazard of significant concern for Stockton. Areas that fall in the 100-year flood zone include undeveloped land in
the northwestern portion of the City’s Planning Area, the area around the Country Club neighborhood with
inadequate levee protection, areas along the San Joaquin River and its floodplain in southern parts of the city, and the area north of the Stockton Diversion Canal, east of the city limit.21
FEMA’s flood hazard zones are established based on
historical data and may not fully predict the future areas that are most at risk of flooding or the frequency of future flood events.

ATTACHMENT B - Safety Element Background Report 911
Figure 12 Flood Hazard and Levee Protection Zones
ATTACHMENT B - Safety Element Background Report 912

2.3.5 Flood Protection
Since 1998, flood risks have been reduced significantly by the Locally Constructed Flood Control Project by the San Joaquin Area Flood Control Agency, which includes flood protection facilities on Bear Creek, Little Bear Creek, Pixley Slough, Upper Mosher Creek, the Mosher Diversion,
Mosher Slough, the Calaveras River, the Stockton
Diverting Canal, and Mormon Slough.

Stormwater management infrastructure in and around
Stockton includes storm drains, canals, and ditches. Storm drains convey runoff to pump stations discharging into
rivers, creeks, and sloughs, all of which flow westward to the San Joaquin River and Delta. Most storms drains have capacity for a 100-year storm.22
Levees
Waterways in Stockton have been heavily modified since
the 1800s by dredging natural channels, constructing
bypasses, and narrowing floodplains through levee
construction. Most of the city is protected from flooding by levees, which are shown on Figure 13. Despite this, areas within levee protection zones are still subject to flooding hazards due to the geotechnical instability of the levees, primarily seepage through and under levees; one bank of the levee being higher than the other; burrowing from
rodents; water flowing around the upstream end of a
levee; and encroachments such as culverts and roadway
crossings.23,24 The Country Club neighborhood and areas along the San Joaquin River and its floodplain within the southern part of the city do not receive adequate flood protection from levees.
25 In the event of a major levee
break, much of the city would be inundated, potentially damaging tens of thousands of homes.

Many Delta levees were initially constructed more than a century ago using rudimentary equipment and
nonengineered fill material excavated from adjacent
channels, sloughs, and marshes. Over the past century,
there have been more than 140 levee failures and island inundations; however, few have occurred over the past 30 years since state and local agencies—such as the Delta
Stewardship Council, the Central Valley Flood Protection Board, Department of Water Resources, U.S. Army Corps
of Engineers, and local reclamation districts—adopted a * An accredited levee system is a system that FEMA has determined to meet the design, data, and documentation requirements sufficient to be shown on a Flood Insurance Rate Map (FIRM) as reducing the base flood hazard. more active role in supporting the maintenance and
enhancement of the levees.26
Levee maintenance and improvement activities over the
last few decades have focused on raising crest elevations to meet freeboard requirements, achieve modern
standards of flood protection, and improve levee stability.

In 2005, FEMA began requiring local communities and
levee owners to submit documentation showing levee
systems providing 100-year flood protection. FEMA deaccredited levees that did not provide the required documentation.27
FEMA revoked accreditation of the Smith Canal levees in 2009.* During a 100-year flood, water from the San
Joaquin River to the west could back up into the Smith
Canal. Should the Smith Canal levees overtop or fail, the Country Club area, most of which lies at or near sea level, would be inundated by flood waters flowing through the
breach.28
The San Joaquin Area Flood Control Agency (SJAFCA) is
currently pursuing the design and construction of a gate structure at the mouth of Smith Canal. The gate would
normally rest on the bottom of the channel, allowing for boat traffic and normal tidal fluctuations. During high water periods, the gate would be raised, preventing
floodwaters from the San Joaquin River from entering
Smith Canal. The proposed wall and gate and structure
would provide a minimum 200-year level of performance,
as required in the Central Valley Flood Protection Plan (CVFPP).29
In addition, FEMA is currently reviewing a Conditional
Letter of Map Revision for the Bear Creek system, Upper Calaveras and Diverting Canal, which could be remapped
into the floodplain.30
Lower Bear Creek and Lower Mosher Slough, west of I-5
at the Twin Creeks subdivision, currently do not meet
FEMA criteria, and Twin Creeks could be placed in the
floodplain if FEMA remaps the area. The levee protecting the Boggs Tract does not currently meet FEMA criteria, and the local Reclamation District (#404) has been working to ATTACHMENT B - Safety Element Background Report 913
resolve the issues. There are also issues with the levee that provides protection for the Weston Ranch area.31
Although all remaining levees provide 100-year flood
protection, no levees meet the State’s 200-year flood
protection requirement in the CVFPP. There is currently a feasibility study underway to reach a 200-year flood
protection standard.32
The Delta’s levees are also threatened by the active seismic zones west of the Delta, including the San Andreas and
Hayward faults. A strong earthquake could damage Delta
levees because of the potential for deformation or cracking of levees or liquefaction of levee embankments and
foundations during strong ground shaking. Moderate
earthquakes between 1979 and 1984 damaged nearby
Delta levees, and many Delta islands’ levees failed during floods within a year after the 1906 San Francisco
earthquake. If a levee failed on an island subsided below sea level or during high flows or if a flood were to occur soon after an earthquake, the protected area could be
inundated.33
Even without an earthquake or flood, Delta levees can fail during high tides or even on sunny days. Generally, these failures may be the result of a combination of high tide and pre-existing internal levee and foundation weaknesses caused by burrowing animals, internal erosion of the levee and foundation through time, and human interventions
such as dredging or excavation at the toe of the levee.

Examples of sunny-day failures include the Brannon
Andrus Tract in 1972 and Upper Jones Tract in 2004. It is estimated that, based on current conditions, a sunny-day failure would occur once every 9 years on average.34
Flood Management Agencies
Several local reclamation districts play a role in
maintaining levees and other flood protection facilities in and around Stockton, including the Smith Tract, Weber
Tract, Boggs Tract, Rough and Ready Island, Sargent
Barnhart Tract, Smith Tract, and Wright-Elmwood Tract
Reclamation Districts.35
The Central Valley Flood Protection Board (CVFPB), is the regulating authority over flood risk management in the
Central Valley and is responsible for adopting the CVFPP.

The CVFPB’s governing body consists of seven members
appointed by the governor and confirmed by the Senate.

The board works in close partnership with the California Department of Water Resources (DWR), the US Army Corp
of Engineers (USACE), and stakeholders to implement the CVFPP. The CVFPB works closely with the California
Department of Fish and Wildlife, US Fish and Wildlife, and the National Marine Fisheries Service to evaluate the
environmental impacts of flood control.

The CVFPB, as part of its responsibility to oversee the flood control projects on the Sacramento and San Joaquin
Rivers, has adopted regulations to control encroachments on these rivers and some of the streams that flow into them.

It also regulates encroachments within designated
floodways, which are the channels of a river or other
watercourse and the adjacent land areas that convey
floodwaters The CVFPB regulates encroachment in
floodplains by designating floodways in the Sacramento
River and San Joaquin River drainages, including the
Delta.36
The CVFPP was last adopted by the CVFPB on December
16, 2022. The plan provides a policy, program, and
project implementation framework to help guide regionaland State-level financing plans and investments. The CVFPP proposes a State Systemwide Investment Approach
for sustainable, integrated flood management in areas
currently protected by facilities of the State Plan of Flood Control (SPFC). The CVFPP suggests improvements to
SPFC levees along the San Joaquin River and tributary
channels in the Stockton Metropolitan Area.37
SJAFCA is a joint powers agency made up of San Joaquin
County, the City of Stockton, and the San Joaquin Flood Control and Water Conservation District. The SJAFCA’s
mission is to study, plan, and implement flood protection projects in order to reduce the flood risk to people,
structures, and the economy.

The Regional Flood Management Plan provides a
framework for managing flood risk within the Lower San
Joaquin River Region and Delta South Region. The plan
provides a reconnaissance-level assessment of flood risks and presents a prioritized list of short-term and long-term flood risk reduction projects for each region. The Lower San Joaquin River Region and Delta South Region are
further divided into five planning regions. The city is in the Upper Sacramento / Mid-Sacramento River planning
region.

ATTACHMENT B - Safety Element Background Report 914
The City of Stockton sets stormwater quality requirements in Municipal Code Chapter 13.16, Stormwater
Management and Discharge Control, and 13.20,
Stormwater Quality Control Criteria Plan. Chapter 15.44, Flood Damage Prevention, includes provisions that serve to minimize public and private losses due to flood
conditions. In addition, Chapter 15.48 regulates grading and erosion control in the city.

Federal and State agencies responsible for flood control in Stockton include the USACE, Federal Insurance
Administration, and the DWR.
• The USACE identifies the need for and
constructs major flood-control facilities. It also
develops flood and dam inundation maps and
reports.
• FEMA manages the National Flood Insurance
Program, providing insurance to the public in
communities that participate in the program.

FEMA is the main federal government agency
contact during natural disasters and publishes
the Flood Insurance Rate Maps that identify the
extent of flood potential in flood-prone
communities based on a 100-year flood (or
base flood) event.
• The Federal Insurance Administration is the
primary agency that delineates potential flood
hazard areas and floodways through the rate
maps and the Flood Boundary and Floodway
Map. Flood insurance is required of all
homeowners who have federally subsidized
loans.
• DWR is responsible for managing and
protecting California’s water. DWR works with
other agencies to benefit the state’s people and
to protect, restore, and enhance the natural and
human environments. DWR also works to
prevent and respond to floods, droughts, and
catastrophic events that would threaten public
safety, water resources and management
systems, the environment, and property.

2.3.6 Sea Level Rise
Sea level rise is an increase in the ocean’s surface height relative to the land in a particular location. The two major causes of sea level rise are thermal expansion caused by warming of the ocean (since water expands as it warms)
and increased melting of land-based ice such as glaciers and ice sheets. Sea level rise is a gradual process that takes place over years or decades and is a direct result of climate change. It affects coastal communities as well as those along the San Francisco Bay and into the
Sacramento/San Joaquin Delta region. Sea level rise has the potential to inundate homes, businesses, and
infrastructure near the shorelines and to cause erosion of coastal lands over time. The sea level rose during the
twentieth century, and observations and projections
suggest that it will rise at a higher rate during the twentyfirst century. San Francisco has recorded an average sea level rise of about 2.0 millimeters (mm) per year since the late nineteenth century. This is comparable to a global average during the twentieth century of 1.4 mm per year, a pace that has not been exceeded in any century since at least 2,800 years ago.38 Rising seas increase the risk of coastal flooding, storm surge inundation, coastal erosion and shoreline retreat, and wetland loss. The cities and infrastructure that line many coasts are already vulnerable to damage from storms, which will likely increase as the sea level continues to rise and inundate areas further
inland.

Sea levels in the San Francisco Bay-Delta Estuary are likely to rise at least 0.6 to 1.1 feet (7.2 to 13.2 inches) by 2050, and potentially as high as 1.9 feet (22.8 inches). By the end of the century, sea levels are likely to rise to at least

1.2 to 3.4 feet (14.4 to 40.8 inches), and potentially as high as 6.9 feet to 10.2 feet (82.8 to 122.4 inches).
39 The
Delta Stewardship Council has mapped levels of flooding associated with sea level rise under two scenarios:
deterministic and probabilistic. The deterministic scenario shows areas that are expected to be underwater given a
particular amount of sea level rise. The probabilistic
scenarios show the likelihood that a particular area will be underwater as a result of sea level rise by a certain year. 40Figure 14 shows sea level rise for Stockton under the deterministic scenario by 2050. Figures 15 and 16 show
the probabilistic sea level rise for Stockton by 2050 and 2085, respectively.

There are a range of factors that impact water levels in the San Joaquin Delta, including inflows (from local and
upstream precipitation), San Joaquin Delta exports,
astronomical tides, atmospheric effects (pressure and
wind), and flow control operations. Regional and local
land subsidence further complicates local sea level trends for the Delta region. Decomposition of drained and
converted marsh and peat soils within diked Delta islands ATTACHMENT B - Safety Element Background Report 915
have caused much of the Delta region to lie below sea
level—in some places by as much as 15 to 20 feet.

Continued land subsidence may increase the relative rate of locally observed sea level change for the Delta area when comparing water levels to local land elevations.41 The San Francisco Bay Conservation and Development
Commission requires that shoreline protection projects, such as levees and seawalls, be designed to withstand the effects of projected sea level rise and be integrated with adjacent shoreline protection. Whenever feasible, projects must integrate hard shoreline protection structures with natural features, such as marsh or upland vegetation, that enhance the Bay ecosystem. The Commission also
requires risk assessments for projects within 100 feet of the shoreline; however, as a matter of best practice,
development within areas susceptible to sea level rise
should be designed for resilience.

ATTACHMENT B - Safety Element Background Report 916
Figure 13 Levees
ATTACHMENT B - Safety Element Background Report 917
Figure 14 Sea Level Rise Projections: 2050 (Deterministic) ATTACHMENT B - Safety Element Background Report 918
Figure 15 Sea Level Rise Projections: 2050 (Probabilistic) ATTACHMENT B - Safety Element Background Report 919
Figure 16 Sea Level Rise Projections: 2085 (Probabilistic) ATTACHMENT B - Safety Element Background Report 920

2.3.7 Dam Failure
A dam failure is an uncontrolled release of water from a reservoir through a dam because of structural failures or deficiencies in the dam, usually associated with intense rainfall or prolonged flooding. Dam failures can range
from minor to catastrophic and can potentially harm
human life and property downstream from the failure. In addition, ecosystems and habitats are destroyed because of waters flooding them. In a dam failure scenario, the greatest threat to life and property typically occurs in the areas immediately below the dam, since flood depths and discharges generally decrease as the flood wave moves
downstream. The primary danger associated with dam
failure is high-velocity flooding downstream and limited warning times for evacuation.

Although dam failures are very rare, they are not
unprecedented. There are four major causes of dam
failures:
• Overtopping: These failures occur when a
reservoir fills too high with water, especially in
times of heavy rainfall, leaving water to rush
over the top of the dam. Other causes of this
type of failure include settling of the crest of the
dam or spillway blockage.
• Foundation defects: These failures occur as a
result of settling in the foundation of the dam,
instability of slopes surrounding the dam, uplift
pressures, and seepage around the foundation.

All these failures result in structural instability
and potential dam failure.
• Piping and seepage failures: These failures
occur as a result of internal erosion caused by
seepage and erosion along hydraulic structures
such as the spillways. Erosion may also be
caused by animal burrows and cracks in the
dam structure.
• Conduit and valve failure: These failures occur
as a result of problems with valves and conduits.

Many dam failures are also the secondary result of other natural disasters, such as earthquakes, landslides, extreme storms, or heavy snowmelt. Other causes include
equipment malfunction, structural damage, and sabotage.

Stockton is within the inundation areas of four major dams:
the New Hogan Dam on the Calaveras River, the New
Melones Dam on the Stanislaus River, the Camanche Dam
on the Mokelumne River, and the Don Pedro Dam across
the Tuolumne River at the Don Pedro Reservoir. Figure 17 illustrates areas in the city that would be affected by inundation if any of these dams failed. The majority of the city is within the dam inundation area of the New Hogan Dam and Don Pedro Dam, and the west half of the city is in the dam inundation area of the New Melones Dam and
Camanche Dam42. Failure of any of these dams would
give residents about seven hours to evacuate. Other major regional dams could also affect Stockton, but would have longer warning times.

The New Hogan Dam is owned and operated by the
USACE, the New Melones Dam is operated by the US
Bureau of Reclamation; the Camanche Dam is owned and
operated by the East Bay Municipal Utilities District; and the Don Pedro Dam is owned and operated by the
Modesto Irrigation District (MID) and Turlock Irrigation District (TID) and falls within the jurisdiction of the California Division of Dam Safety.

The USACE’s Dam Safety Program conducts dam
inundation risk assessments and repairs and rehabilitates dams deemed to be at high risk.

The Bureau of Reclamation’s Dam Safety Program works
to perform site evaluations and identify dams in need of corrective action or which pose a near-term or elevated threat to the public.

The Division of Dam Safety inspects dams on an annual
basis to ensure the dam is safe and performing as
intended. Dams are also assessed for seismic stability and are projected to withstand the maximum credible
earthquake.

The Federal Energy Regulatory Commission, as required
by federal law, has reviewed and approved comprehensive emergency action plans (EAP) for each of these dams. The EAPs minimize the threat to public safety and the response time to an impending or actual sudden release of water
from project dams. EAPs are also designed to provide
emergency notification when floodwater releases present the potential for major flooding.

ATTACHMENT B - Safety Element Background Report 921
Figure 17 Dam Inundation
ATTACHMENT B - Safety Element Background Report 922

2.3.8 Past Occurrences
Floods are a regular feature in California and cause the second-greatest number of disaster declarations in the
state. Stockton and the greater San Joaquin County have been subject to periodic flooding, including:
• 1950: Almost 14,000 acres of the Delta
flooded, washing out the Southern Pacific
Railroad tracks and U.S. 50 west of Stockton.
• 1955 to 1956: Extensive flooding occurred
along the eastern tributaries of the San Joaquin
River. This event had the highest flows as
recorded on the Calaveras River at Bellota, with
approximately 1,500 acres of Stockton
inundated to depths of six feet for as long as
eight days.43
• 1958: Approximately 250,000 acres from
Stockton to Fresno along the San Joaquin River
flooded, in part due to prolonged and unusually
voluminous snowmelt from the Sierra Nevada.
• 1972: The San Joaquin River breached the
Andrus Island levee 6 miles south of Isleton
between Bruno’s Yacht Harbor and Spindrift
Resort, about 20 miles northwest of Stockton.

The breach eventually grew to 300 feet long,
flooding Highway 12, the low-lying residential
area of Isleton, and portions of Andrus and
Brannan Islands, in some places up to 20 feet
deep. At least 1,400 Isleton residents were
evacuated as well as 1,500 residents from the
Andrus and Brannan Islands. A full year after the
levee break, more than one-third of the
residents had neither moved back into their
homes nor begun to rebuild. Officials estimated
that damages were $21.8 million, slightly more
than half of that from crop loss and saltwater
damage to farmland. The cost for levee repairs
was put at $800,000, and $500,000 went to
pump the 20 square miles of flooded land dry.

More than $1.5 million in federal disaster relief
was made available. No definitive cause was
ever determined for the levee breach.44
• 1997: Flooding resulted in a voluntary
evacuation of the Weston Ranch area of
Stockton at the north end of Mossdale Tract.

While it did not directly damage areas of
Stockton, 1,842 residences and businesses
were affected in San Joaquin County.

Significant flood-fighting efforts were conducted
by Reclamation Districts 404 and 17 at
breaches upstream of Mossdale Tract along the
San Joaquin and Stanislaus Rivers. Estimated
damages in San Joaquin County were
approximately $80 million.45
• 2004: The Upper Jones Tract levee near
Woodward Island failed, flooding the island,
creating $100 million in damages, and
threatening the state’s water supply.46 The
island, which lies approximately 10 feet below
sea level, required three weeks to repair the
breach, and an additional five months for
dewatering.

2.3.9 Potential Changes to Flood Risk in
Future Years
Likelihood of Future Occurrence
The city’s proximity to the Delta, relatively low elevation, and potential to experience heavy rains mean that flood will continue to pose a significant hazard to the
community.

Floodplains can change over time. The floodplain and
watercourse of a stream can be affected by anthropogenic (human) influences, such as the development of land into residential or commercial structures and the resulting
reduction of pervious land (resulting in increased stream flow), the construction of bridges or culverts, or the
creation of levees or other impoundment structures that control the flow in the watercourse.

Sea levels have risen in the Bay and Delta and are
expected to continue to rise over the coming century. Sea levels will rise slowly and increase impacts of other coastal hazards, such as shoreline erosion and subsidence.

The potential for a dam failure event in Stockton is likely to remain a risk in future years, although the odds of such events are expected to remain very low.

Climate Change and Flooding
Climate change is expected to increase the severity of
flooding. Although climate change may not change
average precipitation levels significantly, scientists expect that it will cause more years with extreme precipitation events that drop enough precipitation over a short enough period to cause flooding. Floods are thus expected to
occur more often in Stockton, and climate change may
expand the parts of the city that are considered prone to flood. By 2050, an addition 29,550 residents of Stockton ATTACHMENT B - Safety Element Background Report 923
are expected to be exposed to flooding, and 55,690 by
the end of the century.47
Although there is no doubt that sea levels have risen and will continue to rise over the coming century, it is difficult to predict with certainty how much the sea level will rise within a given time frame. The uncertainties increase over time (i.e., the uncertainties associated with 2100
projections are greater than those associated with 2050 projections) because of uncertainties in future greenhouse gas (GHG) emissions, the sensitivity of climate conditions to GHG concentrations, and the overall capabilities of
climate models. Nonetheless, rising seas increase the risk of tidal flooding, storm surge inundation, levee failure, coastal erosion and shoreline retreat, and wetland loss.

The impacts to the community are compounded when
atmospheric rivers coincide with king tides. King tides bring unusually high water levels and can cause local tidal
flooding. By 2050, rising sea levels will more than double the probability of flooding if levees are not actively
improved. Drainage of Delta islands will also be more
difficult, impairing agriculture.
48 There are some indirect effects of climate change that may also increase flooding in the city. Climate change is
expected to increase the frequency and severity of
droughts, which cause soil to dry out and become hard.

When precipitation does return, more water runs off the surface than is absorbed into the ground, which can lead to floods. In addition to the pressure resulting from sea level rise, climate change will result in increased severity of winter storms, particularly in El Niño years.* Such weather events will result in higher levels of seasonal flooding than currently. This too will strain levees and increase floodplain areas. More intense storms and increased runoff could
impact Delta water quality by increasing sediment load or contaminants from urban and agricultural runoff.49
Future flooding is anticipated to impact safety facilities (fire stations, police stations, and hospitals); schools; water infrastructure; flood infrastructure; wastewater treatment facilities; and hundreds of miles of critical infrastructure supporting energy, utilities, and transportation, potentially * El Niño is a naturally occurring climate pattern associated with warming of the ocean surface temperatures in the central and eastern tropical Pacific Ocean, which can significantly influence weather patterns and ocean conditions globally. El Niño occurs on average every 2 to 7 years, and episodes typically last 9 to 12 months. El Niño has its largest impacts during the winter. In the winter, El Niño typically brings milder weather to the northern parts of the United States and wetter conditions across the southern United States.
resulting in economic disruption across the Delta region.50 Increased frequency and severity of Delta flooding could have significant impacts on some of Stockton’s most
vulnerable residents. Approximately 65 percent of the
Delta’s population that could be exposed to the 100-year flood by 2050 reside in areas with high concentrations of socially vulnerable residents.51 The City of Stockton has high concentrations of socially vulnerable block groups and constitutes a significant percentage of the Delta
population exposed to flooding. Increases in damaging
flood events will cause greater property damage, public health and safety concerns, displacement, and loss of life.

Displacement of residents can include both temporary and long-term displacement, increase in insurance rates, or restriction of insurance coverage in vulnerable areas.

As sea levels rise and high-flow events become more
common, the likelihood of levee overtopping will increase.

Levee breaks could cause large amounts of salt water from the Bay to enter the Delta and would have an adverse
effect on Delta water quality and water system operations.

Saltwater intrusion could take months to dissipate,
depending on the severity of the levee break and the
degree of intrusion.52
Of the ecosystems currently protected by levees in the
Delta region, 73 percent are at risk of flooding due to levee overtopping resulting from a combination of sea
level rise and storm events. By 2085, rising sea levels will cause all critical remaining tidal wetland ecosystems in the Delta to transition to different plant communities or drown completely.53

2.4 HAZARDOUS MATERIALS
Hazardous materials are materials that pose a significant risk to public safety or human or environmental health.

These include toxic chemicals, flammable or corrosive
materials, petroleum products, and unstable or
dangerously reactive materials. They can be released
through human error, malfunctioning or broken
equipment, or as an indirect consequence of other
emergencies (e.g., if a flood damages a hazardous
ATTACHMENT B - Safety Element Background Report 924
material storage tank). Hazardous materials can also be released accidentally during transportation as a
consequence of vehicle accidents.

A release or spill of bulk hazardous materials could result in fire, explosion, toxic cloud, or direct contamination of water, people, and property. The effects may involve a
local site or many square miles. Health problems may be immediate, such as corrosive effects on skin and lungs, or gradual, such as the development of cancer from a
carcinogen. Damage to property could range from
immediate destruction by explosion to permanent
contamination by a persistent hazardous material.

Most hazardous materials in the region are transported on truck routes along major roadways that pass through
Stockton, such as I-5, SR-99, SR-4, SR-26, and SR-88; via the Port of Stockton; and along the Union Pacific Railroad.

Transporters of hazardous wastes are required to be
certified by the United States Department of
Transportation, and manifests are required to track the hazardous waste during transport.

Although hazardous materials are carefully regulated
today, past activities have left several contaminated sites in Stockton, and there are others where contamination is
suspected and investigation is underway. Contamination
has resulted from leaking underground storage tanks,
disposal of hazardous materials, and various past
industrial practices. The potential for accidents and spills means that the City must strive to reduce risks and be
prepared for emergencies. The California Department of
Toxic Substances Control (DTSC) oversees the
environmental cleanup of contaminated sites.

Several state agencies monitor hazardous materials/waste facilities. Potential and known contamination sites are monitored and documented by the Regional Water Quality
Control Board and the DTSC. A review of the DTSC
EnviroStor database indicates that there are 145
hazardous waste facilities within Stockton, 53 of which require no further remediation. The Regional Board’s
GeoTracker database shows 553 sites within Stockton that may impact or have the potential to impact water quality.

Of these, 403 are leaking underground storage tank sites and 68 are military sites.

The Stockton Fire Department’s Hazardous Materials (Haz Mat) Team is charged with mitigating hazardous materials releases and environmental emergencies. The Haz Mat
Team is also responsible for coordinating with State and local authorities to prepare, prevent, respond to, mitigate, and determine the responsible party for a variety of
hazardous materials releases.

Hazardous materials and waste in San Joaquin County are managed by the Certified Unified Program Agency
(CUPA), a local administrative agency within the San
Joaquin County Environmental Health Department. The
CUPA consolidates, coordinates, and makes consistent the regulatory activities of several hazardous materials and hazardous waste programs, including Hazardous
Materials Management, California Accidental Release
Prevention, Hazardous Waste Management, Underground
Storage Tanks, Aboveground Storage Tanks, and
Emergency Response.

2.4.4 Past Occurrences
Stockton and the greater San Joaquin County area has
been subject to periodic hazardous materials incidents; San Joaquin County typically responds to more than 200
incidents per year. Notable hazardous materials incidents occurred in the 1998 Tracy Tire Fire and the 1989
Manteca freight train derailment.

2.4.5 Potential Changes to Hazardous
Materials in Future Years
Likelihood of Future Occurrence
Given the presence of the Port of Stockton, Union Pacific Railroad, and several major highways within Stockton, as well as the centrality of the shipping and logistics industries to the region’s economy, there is a high chance that
hazardous materials will continue to be transported in the community. Though the likelihood of a major hazardous
materials incident may be small, minor and moderatescale hazardous materials spills will likely continue to occur.

Climate Change and Hazardous Materials
Climate change is unlikely to substantially affect hazardous materials transportation incidents or conditions relating to the exposure of pollution and contamination in the
community. However, increases in the frequency and
intensity of hazards, such as floods, landslides, and severe storms, may create a greater risk of hazardous materials releases during these events.

ATTACHMENT B - Safety Element Background Report 925

2.5 DROUGHT
A drought is an extended period when precipitation levels are well below normal and is a normal part of the climate cycle. Drought may cause losses to agriculture; affect
domestic water supply, energy production, public health, and wildlife; or contribute to wildfire. Like most of
California and the western United States, Stockton
chronically experiences drought cycles. Drought impacts the city’s water supply, which in severe instances, ultimately makes less water available for people, businesses, and
natural systems.

Less snow falling in mountainous areas causes water levels in lakes and reservoirs to drop, which can affect recreation activities. Local ecosystems that are not well adapted to drought conditions can be more easily harmed. Droughts
can also indirectly lead to more wildfires, and the stress caused by water shortages can weaken plants, making
them more susceptible to pests and diseases.

The U.S. Drought Monitor recognizes a five-point scale for drought events: D0 (abnormally dry), D1 (moderate
drought), D2 (severe drought), D3 (extreme drought), and D4 (exceptional drought). As of May 2023, San Joaquin
County, including Stockton, was not in drought conditions, although the County was in a state of extreme to
exceptional drought as recently as December 2022.

During severe drought conditions, water shortages are
common and water restrictions may be imposed to meet
essential community needs.

2.5.4 Water Supply
Two water purveyors serve the city—California Water
Service Company Stockton District (Cal Water) and the
City of Stockton Municipal Utilities Department
(COSMUD). Cal Water serves the central part of the city, and COSMUD serves the northern and southern parts of
the city. Cal Water and COSMUD water supplies consist
of purchased water and groundwater. Both Cal Water and
COSMUD purchase water from the Stockton East Water
District (SEWD), which obtains supplies from the New
Hogan Reservoir on the Calaveras River and the New
Melones Reservoir on the Stanislaus River. Both obtain
groundwater from the East San Joaquin Subbasin of the
San Joaquin Valley Groundwater Basin. Cal Water
Stockton District obtains approximately 84 percent of its water from SEWD.

COSMUD also obtains surface water from the Mokelumne
River via the Woodbridge Irrigation District (WID) and from the San Joaquin Delta via the Delta Water Supply
Project.54 WID’s water supply is from the Mokelumne River.

This water augments supply if diversions from the San
Joaquin River are not available due to environmental
restrictions. The water is conveyed through WID’s
Wilkerson Canal and Pixley lateral pipeline for treatment and conveyance to the water distribution system. In 2020, COSMUD obtained approximately 20 percent of its water
from SEWD, 25 percent from WID, 25 percent from
groundwater, and 30 percent directly from the San
Joaquin River.

The City’s primary water sources during base years are
surface water from the San Joaquin River and WID and
purchased water from SEWD. These water supply sources
complement each other; when water diversion from the
San Joaquin River is curtailed due to environmental
restrictions, COSMUD obtains supplemental water supply
from WID. Groundwater supply is used to meet increased
water demands primarily in the summer months.

The COSMUD Water Shortage Contingency Plan (WSCP)
projects that COSMUD will have adequate water supply
through 2045 for normal year, single dry, and multiple dry year water supply conditions.55 The COSMUD WSCP also
contains water conservation provisions to be implemented in the event of a water shortage. These include expanding public education about water conversation, restricting uses of potable water, implementing or modifying a drought
rate structure, increasing water waste patrols, and
reducing system water loss. Should the COSMUD water
supply portfolio prove insufficient to meet the planned demands of its customers, COSMUD may augment its
water supply by engaging in exchanges and transfers with other water providers. COSMUD may also activate
standby wells in the North and South Stockton water
service areas to address shortages in surface water
supplies.

Cal Water expects that its combination of purchased water and groundwater supply for the Stockton District will fully meet future demands under all hydrological conditions,
including normal, single dry, and multiple dry years.56 Cal Water’s WSCP defines specific policies and actions
that will be implemented at various shortage level
scenarios. The WSCP includes six levels to address
ATTACHMENT B - Safety Element Background Report 926
shortage conditions from up to 10 percent to greater than 50 percent shortage, identifies a suite of demand
mitigation measures for the Stockton District to implement at each level, and identifies procedures for the Stockton District to annually assess whether a water shortage is likely in the coming year. Demand reduction measures include
restricting uses of potable water, expanding rebates for water efficiency upgrades, implementing or modifying a
drought rate structure, increasing water waste patrols, and reducing system water loss.

Groundwater Resources
The San Joaquin Valley Groundwater Basin is divided into several subbasins. Most of Stockton is above the Eastern San Joaquin Subbasin, which is classified as critically overdrafted.

Historically, average groundwater elevations have
declined about 1.7 feet per year, creating a gradient that allows saline water underlying the Delta region to migrate northeast in the southern portion of the City’s Planning Area. This flow from the Delta area is significant because it moves poor-quality water eastward toward the Stockton area. Degradation of water quality due to saline migration threatens the long-term sustainability of the underlying basin. Salt-laden groundwater is unusable for urban
drinking water needs and for irrigating crops. However, demand for water in San Joaquin County has declined
since the 1990s, and long-term groundwater elevations
suggest water level recovery in some areas.57
The Eastern San Joaquin Subbasin is recharged by water
from various sources, including streams, percolation of rainfall and irrigation water, inflow from other
groundwater basins, and intentional recharge at numerous facilities. Intentional recharge is conducted in recharge ponds and on some farm fields, with compensation to
landowners.58
Several agencies in the Eastern San Joaquin and Tracy
Subbasins have become groundwater sustainability
agencies under the Sustainable Groundwater
Management Act, including the City of Stockton, San
Joaquin County, the East Stockton Water District, Central San Joaquin Water Conservation District, and South San
Joaquin Groundwater Sustainability Agency. The Eastern
San Joaquin County Groundwater Basin Authority (GBA),
a joint powers agency, was established in 2001 to
collectively develop locally supported projects to
strengthen water supply reliability in eastern San Joaquin County. The GBA issues annual reports for the subbasin
and prepares the Eastern San Joaquin Groundwater Basin
Groundwater Sustainability Plan (GSP), intended to
achieve a sustainable withdrawal-recharge balance in the subbasin by 2040.

Although the Basin as a whole is considered overdrafted, groundwater conditions vary spatially within the Basin. In the vicinity of the Stockton District, groundwater conditions (as represented by water levels measured in the District’s wells) have been generally stable over the long term,
varying within a relatively small and consistent range of approximately 20 feet over the past 25 years. These
conditions indicate that overdraft is not occurring in the local vicinity of the City of Stockton and the Stockton District.59
Water quality issues have been detected on the west side of the subbasin, some of which are from wells underlying the city. The GSP outlined the need to reduce basinwide overdraft conditions and identified 23 projects for potential development that, along with management actions, either replace groundwater use or supplement groundwater
supplies to meet current and future water demands. The
23 potential projects in the GSP represent a variety of project types, including direct and in-lieu recharge, intrabasin water transfers, demand conservation, water recycling, and stormwater reuse, to be undertaken by the member agencies.60

2.5.5 Past Occurrences
Droughts occur periodically across California and drought conditions have been present in Stockton and the greater San Joaquin area numerous times. Noteworthy countywide
droughts occurred in 1977, 1990, 2002, 2004, 2008,
2014-2017, and 2020-2023.

2.5.6 Potential Changes to Drought in Future
Years
Likelihood of Future Occurrence
Drought is different than many of the other natural hazards in that it is not a distinct event and usually has a slow onset.

Drought can severely impact a region both physically and economically, affecting different sectors in different ways and with varying intensities. Adequate water is the most critical issue for commercial and domestic use. As the
ATTACHMENT B - Safety Element Background Report 927
population in the city continues to grow, so will the
demand for water. However, water supply is currently
considered adequate to meet projected water needs
through the year 2045. The COSMUD and Cal Water
2020 Urban Water Management Plans demonstrate that
Stockton has adequate capacity to accommodate its water demand through 2045 through a diversified and resilient portfolio that includes conservation programs.

Based on historical information, the occurrence of drought in California, including San Joaquin County, is cyclical, driven by weather patterns. Drought has occurred in the past and will occur in the future. Periods of actual drought with adverse impacts can vary in duration, and the period between droughts is often extended. Although an area may be under an extended dry period, determining when it
becomes a drought is based on comparing observed
precipitation with what is normal (climatologic);
comparing soil moisture and crop conditions with what is normal (agricultural); or by looking at how much water is contained in snow, the level or flow rate of moving water, water in reservoirs, or groundwater levels (hydrologic).

How individuals recognize drought depends on the ways
that it affects them. The impacts from drought include
reduction in water supply and an increase in dry fuels.

Drought and Climate Change
Although droughts are a regular feature of California’s climate, scientists expect that climate change will lead to more frequent and intense droughts statewide. Overall,
precipitation levels are expected to stay similar and may even increase in some places. However, the state’s current data say that there will be more years with extreme levels of precipitation, both high and low, as a result of climate change. This is expected to cause more frequent and
intense droughts compared to historical norms. Climate
change will reduce reservoir storage in all year types, meaning less water can be carried over from one year to the next, increasing the water supply system’s vulnerability to drought. In addition, the type of extreme drought that California experienced from 2012 to 2016 will be five to seven times more likely to occur by 2050. These changes will result in greater water shortages, especially in dry years.61
In the past, Delta water quality has been compromised
during droughts, as salt water is able to penetrate further into the Delta when freshwater flows are reduced. Future drought combined with sea level rise may once again
compromise Delta water quality and expose more acres of Delta agriculture to more salt water than historically.62 Drought conditions can cause soil to dry out and become hard, so that when precipitation does return, more water runs off the surface than is absorbed into the ground,
which can lead to floods. Higher air temperatures are
expected to increase evaporation, causing more water loss from lakes and reservoirs, exacerbating drought
conditions. Reduced winter precipitation levels and
warmer temperatures have greatly decreased the size of
the Sierra Nevada snowpack (the volume of accumulated
snow), which in turn makes less freshwater available for communities throughout California, including the
imported water supply for Stockton. Continued decline in the Sierra Nevada snowpack volume is expected, which
may lead to lower volumes of available imported water.

In the Mokelumne/Amador/Calaveras area (origin of the
Mokelumne and Calaveras Rivers), the state Cal-Adapt
database indicates the snowpack levels (i.e., snow water equivalent) in the spring are expected to decline from a historical average of 815.4 inches to as low as an average of 118.1 by the middle of the century (2051 to 2070). In the Tuolumne-Stanislaus area (origin of the Tuolumne-and Stanislaus Rivers), snowpack levels in the spring are
expected to decline from a historical average of 1,765.3 inches to as low as an average of 565.3 by the middle of the century (2051 to 2070). Within the Madera region
(origin of the San Joaquin River), snowpack levels in the spring are expected to decline from a historical average of 942.8 inches to as low as an average of 288.4 inches by the middle of the century.

Climate change is expected to cause more precipitation to fall as rain instead of snow, and the snow that does fall will melt earlier, reducing the Sierra Nevada spring snowpack by as much as 70 to 90 percent. How much snowpack will
be lost depends in part on future precipitation patterns, the projections for which remain uncertain. However, even
under wetter climate projections, the loss of snowpack
would pose potential water shortage issues and exacerbate drought conditions. The operation of storage reservoirs could be impacted by shifting runoff and snowmelt
patterns, making it more difficult to refill reservoir flood control space during late spring or early summer and
ATTACHMENT B - Safety Element Background Report 928
potentially reducing the amount of surface water available for use during the summer/fall season.63
Drought and other climate change impacts may
exacerbate existing water affordability issues. In the short term, drought can contribute to increased water rates
because water utilities may have to enact temporary
charges to cover costs when mandatory or voluntary
restrictions lead to declining water use. Longer term,
utilities are weighing options to adapt to increased
frequency and intensity of droughts by diversifying their water supply portfolios, purchasing or developing costlier water supplies, or pumping groundwater from greater
depths. Increased frequency of droughts may also
contribute to harmful algal blooms and degrade raw water quality, requiring drinking water treatment system
upgrades.64
Increasing frequency and severity of droughts will likely have negative impacts on Delta agriculture. Drought,
especially in combination with other climate change
stressors and hazards such as extreme heat, may reduce
crop productivity. Reductions in agricultural productivity would disproportionately impact low-income agricultural laborers, who would be more likely to lose their jobs first and tend to have fewer resources to cope with drought and other climate change impacts. Agricultural adaptation
strategies to cope with drought, such as shifting to less labor-intensive crops and increasing groundwater use, can result in increased vulnerability for farmworkers.65
Projected reductions in spring and fall precipitation and increased interannual precipitation variability will stress Delta species, favor less diverse species assemblages, and lead to increased presence of nonnative species.

2.6 FIRE HAZARDS
Fire hazards include both wildfires and urban fires. Though the city is vulnerable to both kinds of fire threats, the climatic and vegetative conditions in Stockton are
generally not conducive to the spread or development of wildfires.

2.6.4 Wildfires
Wildfires occur on mountains, hillsides, and grasslands.

Fuel, weather, and topography are primary factors that
affect how wildland fires spread. Wildfire risk in San
Joaquin County is generally low.

Wildfire Smoke
Greater frequency of regional fires can create recurrent air quality degradation, leading to respiratory health effects.

Wildfire smoke consists of a mix of gases and fine
particulate matter from burning vegetation and materials.

The pollutant of most concern from wildfire smoke is fine particulate matter (PM2.5). PM2.5 from wildfire smoke is damaging to human health due to its ability to deeply
penetrate lung tissue and affect the heart and circulatory system. Although wildfire smoke presents a health risk to everyone, sensitive groups may experience more severe
acute and chronic symptoms from exposure to wildfire
smoke, such as children, older adults, people with chronic respiratory or cardiovascular disease, or people
experiencing low socioeconomic status.

Public Safety Power Shutoff Events
High winds can bring tree branches and debris into contact with energized lines, damage equipment, and ignite a
wildfire. As a result, PG&E sometimes turns off power
during severe weather to help prevent wildfires. This is called a public safety power shutoff.

San Joaquin County and the City of Stockton have been
subject to PSPS events and warnings during severe weather events, most notably in October 2021.

Wildland-Urban Interface Fires
The wildland-urban interface (WUI) is an area where
buildings and infrastructure (e.g., cell towers, schools, water supply facilities) mix with areas of flammable
wildland vegetation. There are two types of WUI: interface and intermix communities. Intermix WUI refers to areas
where housing and wildland vegetation intermingle, and
interface WUI refers to areas where housing is in the
vicinity of a large area of dense wildland vegetation. In addition, the Wildfire Influence Zone refers to an area made up of wildfire-susceptible vegetation up to 1.5 miles from the WUI, and the threat zone is an additional strip of vegetation modified to reduce flame heights and radiant heat.

The WUI is where most buildings are destroyed by wildfire in California.66 The interface WUI in California contains approximately 50 percent of the buildings destroyed by
wildfire, and the intermix WUI contains approximately 32 percent. Human-caused fires are the leading cause of
wildland fires, and with thousands of people living near ATTACHMENT B - Safety Element Background Report 929
and visiting wildland areas, the probability of humancaused fires is growing.

The city of Stockton contains small areas of WUI scattered throughout the city (see Figure 18).

Structural Fires
Stockton is at risk from structural fires. These fires occur in built-up environments, destroying buildings and other
human-made structures. Structural fires are often due to faulty wiring or mechanical equipment and combustible
construction materials. The absence of fire alarms and fire sprinkler systems are often conditions that exacerbate the damages associated with a structural fire. Structural fires are largely from human accidents, although some fires
may be started deliberately (arson). Older buildings that lack modern fire safety features may face greater risk of damage from fires. To minimize fire damage and loss, the City’s Fire and Building Codes, based on the California Fire and Building Codes, sets standards for building and construction. They require the provision of adequate water supply for firefighting, fire-retardant construction, and minimum street widths, among other things.

2.6.5 Fire Hazard Zones
CAL FIRE (California Department of Forestry and Fire
Protection) establishes fire hazard severity zones (FHSZ), designating each as moderate, high, or very high severity.

Incorporated areas where local agencies are responsible for fire protection service, such as Stockton, are called Local Responsibility Areas (LRAs). Unincorporated areas where State agencies have responsibility for providing fire protection are called State Responsibility Areas (SRAs). CAL FIRE only designates very high FHSZs in LRAs. There are no very high FHSZs in the city. However, there are notable high and very high FHSZs in neighboring counties, and
smoke from fires in these areas could impact local air
quality.

ATTACHMENT B - Safety Element Background Report 930
Figure 18 Wildland-Urban Interface Zones
ATTACHMENT B - Safety Element Background Report 931

2.6.6 Fire Protection
Fire protection in Stockton is provided by the SFD, as
described in Section 2.1, Public Safety.

2.6.7 Past Occurrences
There is limited detail on historical fires in the Stockton area. However, small- to medium-sized wildfires have
periodically occurred in San Joaquin County. In 2018, the Waverly Fire burned 12,300 acres and prompted
evacuations and road closures in San Joaquin County. The fire started near the town of Milton.67 In 2020, a 150-acre fire burned west of Tracy off Highway 580.68 In 2022, the 23-acre Cord Fire was ignited in the community of
Clements.69
Air quality in Stockton has been impacted by major recent wildfires, most notably the Lightning Complex Fire of
2020, Creek Fire of 2020, and Camp Fire of 2018. All of these fires resulted in elevated levels of particulate matter in San Joaquin County for several days.

2.6.8 Potential Changes to Fire Risk in Future
Years
Likelihood of Future Occurrence
Given the limited range of fire hazard areas within and immediately around the city, the likelihood of the city experiencing a large-scale fire is small. However, the city is still susceptible to structural fires and may be affected by wildfire smoke from fires in the broader region.

Climate Change and Wildfire
Warmer weather, reduced snowpack, and earlier
snowmelt attributable to climate change are expected to increase wildfire risk due to increased fuel and ignition risks. Additionally, increased flood frequency may
exacerbate wildfire risk by facilitating the growth of
flammable materials. However, projections from the
state’s Cal-Adapt database indicate that Stockton’s annual wildfire risk is unlikely to change significantly.

However, wildfire risk is generally projected to increase across Northern California, and wildfires are expected to become larger and harder to control, so Stockton will likely continue to be subject to wildfire smoke. Regional wildfires may also interfere with the city’s power supply via PSPS events or damage to electricity transmission infrastructure.

2.7 AGRICULTURAL AND ECOSYSTEM
PESTS
Though there is limited agricultural land and open space within Stockton itself, San Joaquin County contains
significant farmland, including prime farmland and
farmland of statewide importance, as well as extensive
wetlands and levee systems. Therefore, the county is
vulnerable to agricultural and ecosystem pests. Pests that have been of particular concern in San Joaquin County
recently include nutria and Russian knapweed.

The nutria is a large, semiaquatic rodent that is native to South America and highly invasive in California. Nutria are regulated as a California Department of Food and
Agriculture (CDFA) A-rated pest and California
Department of Fish and Wildlife (CDFW) live restricted
animal. Nutria are notorious for their ecological and
economic impacts, causing extensive damage to wetlands, riparian habitats, restoration efforts, levees and other infrastructure, agriculture crops, and water supplies. In 2018, nutria were found in San Joaquin County near the
town of Lathrop. Since then, nutria have been detected
and/or captured in Walthall Slough and Riley Slough.

These nutria sightings are troubling because the Delta has an extremely fragile levee system. Nutria are known to
burrow in levees, which can cause them to collapse.70
Russian knapweed has become an invasive nuisance in
San Joaquin County. In an effort to minimize spreading, California Department of Food and Agriculture within the San Joaquin County Agricultural Commissioner’s Office
has released Russian knapweed gall wasps, a biological
control method to slow the weed’s spread.71

2.7.1 Potential Changes to Agricultural and
Ecosystem Pests in Future Years
Likelihood of Future Occurrence
Agricultural and ecosystem pests will likely maintain a presence in San Joaquin County, though their activity can be at least partially managed via the County’s pest-control initiatives.

Climate Change and Agricultural and
Ecosystem Pests
Pest activity is likely to increase because higher
temperatures caused by global warming allow insects to
reproduce more rapidly and increase the activity window ATTACHMENT B - Safety Element Background Report 932
for pests and diseases. Row crops can be affected by
fungal pathogens and invasive disease vectors as
temperatures continue to rise, affecting the quality and viability of crops.

2.8 EXTREME HEAT
California’s Cal-Adapt database of climate change effects defines extreme heat as temperatures that are hotter than 98 percent of the historical high temperatures for the area, as measured between April and October of 1961 to 1990.

Days that reach this level are called extreme heat days. In Stockton, the extreme heat threshold is 102.3°F. An event with five extreme heat days in a row is called a heat wave.

Extreme heat also takes the form of warm nights when
temperatures do not cool down overnight to provide
community members with relief from the hot days. This can also cause higher electricity use during the nighttime hours as community residents use more energy to cool homes.

In Stockton, a warm night occurs when the temperature
stays above 66°F.

Health impacts are the primary concern with this hazard, though economic impacts are also an issue. The Centers
for Disease Control and Prevention recognize extreme heat as a substantial public health concern. Historically, data from the National Oceanic and Atmospheric
Administration indicate that about 175 Americans
succumb to the demands of summer heat every year,
although this number has increased in recent years. From 2004 to 2018, studies by the U.S. Department of Health
and Human Services indicate an average of 702 deaths
annually that are directly or indirectly linked to extreme heat. Following a record-breaking heat wave in 2006,
over 16,000 emergency room visits, more than 1,100
hospitalizations, and at least 140 deaths were reported.

Because heat events are projected to become more
frequent and last longer, preparing for the public health challenges they pose is critical.

People exposed to extreme heat can suffer heat-related
illnesses such as heat cramps, heat exhaustion, and (most severely) heat stroke. . The elderly, individuals below the poverty level, outdoor workers, immigrant communities,
and those experiencing homelessness are among the most
vulnerable to extreme heat. Nursing homes and elder-care facilities are especially vulnerable to extreme heat events when power outages occur and air conditioning is not
available. In addition, individuals below the poverty level may be at increased risk to extreme heat if use of air
conditioning is not affordable.

Very high temperatures can harm plants, animals, and
natural ecosystems that are not well adapted to them.

Extreme heat can increase the temperature of water in
lakes, streams, creeks, and other water bodies, especially during drought events when water levels are lower. In
some cases, water temperatures may exceed comfortable
levels for several plants and animals, causing ecological harm. Outdoor workers in construction or landscaping are much more exposed to the elements than most people, so
they are more susceptible to extreme heat conditions and the potential illnesses associated with very high
temperatures. Indirectly, extreme heat puts more stress on power lines, causing them to run less efficiently. The heat causes more demand for electricity (usually to run air
conditioning units), and in combination with the stress on the power lines, may lead to brownouts and blackouts.

Wildfire risk increases as vegetation dries out. Damage to roadways, bridges, and other transportation infrastructure may also occur.

Over half of all homes in Stockton—51 percent or 52,737 homes—were constructed prior to 1980, and some may
lack air conditioning and effective insulation. People living in these homes, especially vulnerable populations, are at higher risk for heat-related illnesses from extreme heat events.

To help provide relief from the heat, the City opens cooling centers at the Arnold Rue Community Center, Seifert
Community Center, Stribley Community Center, and Van
Buskirk Community Center during extreme heat days and
heat waves. These air-conditioned community spaces
provide essential cooling for vulnerable populations,
especially those susceptible to heat-related illnesses. Trees and other vegetation in the natural and urban environment also help to lower surface and air temperatures by
providing shade and through evapotranspiration.

Evapotranspiration, alone or in combination with shading, can help reduce peak summer temperatures by 2°F to
9°F.72 73

2.8.1 Past Occurrences
Warm temperatures are a regular occurrence in Stockton
and the greater San Joaquin County area. Significant high heat events in summer 2003 and summer 2006 resulted
ATTACHMENT B - Safety Element Background Report 933
in agricultural and economic losses, and the event in 2006 also resulted in 23 casualties.

2.8.2 Potential Changes to Extreme Heat in
Future Years
Likelihood of Future Occurrence
Extreme heat tends to occur on an annual basis and is
likely to continue occurring annually.

Climate Change and Extreme Heat
The warmer temperatures brought on by climate change
are likely to cause an increase in extreme heat events.

Depending on the location and emissions levels, the state Cal-Adapt database indicates that the number of extreme heat days in Stockton is expected to rise from a historical annual average of 4 to 23 by the middle of the century
(2035 to 2064) and 44 by the end of the century (2070 to 2099), with occasional years experiencing many more
extreme heat days. The number of warm nights in Stockton is projected to increase from an annual average of 4
historically to 27 by midcentury and 66 by the end of the century.

Overall, Stockton is expected to see an increase in the average daily high temperatures. Depending on the future severity of climate change, the Cal-Adapt database
indicates that the annual average maximum temperature
is expected to increase from a historical 74.2°F to 79.4°F by the middle of the century (2035 to 2064) and 82.7°F
by the end of the century (2070 to 2099). Although the
temperature increases may appear modest, the projected
high temperatures are substantially greater than historical norms. These increases also make it more likely that an above-average high temperature will cross the extreme
heat threshold. As temperatures increase, Stockton
residents can expect to face increased risk of death from dehydration, heat stroke, heat exhaustion, heart attack, stroke, and respiratory distress caused by extreme heat.

Increases in both average air temperature and extreme
heat days, especially when these occur sequentially, will stress Delta plant and wildlife species and alter ecosystem dynamics.74

2.9 SEVERE WEATHER
Severe weather is generally any destructive weather event, but usually occurs in Stockton as local storms that bring heavy rain, hail, thunderstorms, strong winds, and heavy fog. Severe weather is usually caused by intense storm
systems, although strong winds can occur without a storm.

The types of dangers posed by severe weather vary widely and may include injuries or deaths, damage to buildings and structures, fallen trees, roads and railways blocked by debris, and fires sparked by lightning. Severe weather can produce high winds and lightning that can damage
structures and cause power outages. Lightning from these storms can ignite structure fires that can cause damage to buildings and endanger people. Objects such as vehicles, unprotected structures (e.g., bus stops, car ports), fences, telephone poles, or trees can also be struck directly by lightning, which may result in an explosion or fire.

Atmospheric rivers are a relatively common weather
pattern that bring southwest winds and heavy rain to
California. They can be hundreds to thousands of miles
long, and though they are narrow in the context of weather systems, narrow can mean up to 300 miles across. When
atmospheric rivers make landfall, they can release
substantial amounts of water vapor in the form of rain or snow, often causing heavy rains that lead to flooding and mudslide events. On average, California experiences five to six atmospheric rivers per year, but in some years may only experience one or two. Atmospheric rivers are
responsible for up to half of the state’s annual precipitation and more than 80 percent of the flood damage, including levee breaches in the Delta.75
A thunderstorm is a rain event that includes thunder and lightning. A thunderstorm is classified as “severe” when it includes one or more of the following: hail with a diameter of three-quarters of an inch or greater, winds gusting in excess of 57.5 miles per hour (mph), or a tornado.

High winds often accompany severe storms and can cause
significant property damage, threaten public safety, and have adverse economic impacts from business closures
and power loss. High winds, as defined by the National
Weather Service, are sustained wind speeds of 40 mph or greater lasting one hour or longer, or wind gusts of 58 mph or greater for any duration. These winds may occur
as part of a seasonal climate pattern or in relation to other severe weather events, such as thunderstorms. All wind
events pose several different types of threats. By
themselves, winds pose a threat to the health of people and structures in the county. Dust and plant pollen blown by the wind can create breathing problems. The winds can ATTACHMENT B - Safety Element Background Report 934
blow roofs off buildings and cause tree limbs to fall on structures. High winds also increase the threat of wildfires.

Wind dries out brush and forest areas, increasing the fuel load in fire-prone areas. Winds can spark wildfires by
knocking down power lines or causing them to arc. If
wildfires do start, high winds can push flames quickly into new areas, contributing to the rapid spread of wildfires and making them harder to control. This can affect the air
quality in Stockton and may disrupt regional infrastructure networks.

Dense fog diminishes visibility to the point of creating a hazard, especially to transportation. San Joaquin County is subject to periods of localized dense fog in the winter called tule fog, which creates a visibility hazard on roads, freeways, airports, and rail lines throughout the county.76 While thick tule fog presents hazards to users of local transportation systems, the fog is valuable to the
agricultural community. Several crops, including almonds, apricots, cherries, peaches, and pistachios rely on tule fog to aid in their production of flowers and fruit.

2.9.1 Past Occurrences
Stockton and the greater San Joaquin County area
regularly experience severe weather incidents.

Countywide, notable incidents of excessive rain and severe storms occurred in 1982, 1990, 1993, 1995, 2005,
2006, and 2019.
77 These incidents were responsible for
tens of millions of dollars of damage to agricultural
products and road closures.

Vehicle collisions have occurred due to tule fog in San Joaquin County. One of the worst such fog-caused chainreaction accidents involved 108 vehicles and closed Highway 99 in Fresno for more than 12 hours in
November 2007. The collision unfolded over 10 minutes
and resulted in two fatalities and 40 injuries.78

2.9.2 Potential Changes to Severe Weather in
Future Years
Likelihood of Future Occurrences
Severe weather is an annual occurrence in San Joaquin
County. However, actual damage associated with the
primary effects of severe weather have been limited.

Climate Change and Severe Weather
Climate change is expected to cause an increase in intense rainfall and strong storm systems. This means that Stockton could see more intense weather resulting from these storms in the coming years and decades, although such an
increase may not affect all forms of severe weather.

Though average annual rainfall may increase only slightly, climate change is expected to cause an increase in the
number of years with intense levels of precipitation. Heavy rainfall can increase the frequency and severity of other hazards, including flooding. The incidence of winter fog has decreased dramatically over the past three decades, due in part to declines in winter chill caused by climate change.

2.10 HUMAN HEALTH HAZARDS
Human health hazards are bacteria, viruses, parasites, and other organisms that are spread by insects, animals, and other pest organisms and can cause diseases and illness in people. Some of these diseases may cause only mild
inconvenience, but others are potentially life threatening.

These diseases can be and often are carried by animals, such as mice and rats, ticks, and mosquitos. Warmer
temperatures and high levels of precipitation can lead to increased populations of disease-carrying animals,
creating a greater risk of disease and increased rates of infection.

Populations most vulnerable to human health hazards are those who spend a disproportionate amount of time
outdoors (such as outdoor workers or persons
experiencing homelessness), those with fragile immune
systems or existing illnesses (which may include persons with chronic illnesses, seniors and seniors living alone, and pollution-burdened populations), and those who may live in sub-standard housing or not have access to health
insurance and medical care (households in poverty, lowresourced people of color, immigrant communities, and overcrowded households). These persons may live in
conditions that increase their chances of catching vectorborne illnesses, lack the ability to fight off infection, or lack the financial resources to seek timely medical care.

2.10.1 Past Occurrences
Incidence of West Nile virus increases with growth of the mosquito population, which typically swells in the summer months. Recorded incidents of West Nile virus occur
annually in San Joaquin County in recent years. Lyme
disease, Zika virus, and malaria are occasionally reported in San Joaquin County.79
ATTACHMENT B - Safety Element Background Report 935

2.10.2 Potential Changes to Human Health
Hazards in Future Years
Likelihood of Future Occurrence
Human health hazards of various scales and levels of
severity are likely to occur in the future.

Climate Change and Human Health Hazards
Climate change is projected to contribute to increases in average temperature and changes in precipitation patterns that favor large precipitation events and associated
flooding. These changes in climatic changes promote the reproduction and speed the growth of many pest species, leading to higher populations of potential disease vectors.

Overall risk of human health hazards is thus expected to increase.

ATTACHMENT B - Safety Element Background Report 936
1 Cal-Adapt. Annual Averages. https://cal-adapt.org/
tools/annual-averages. 2 Delta Stewardship Council. 2021. “Delta Adapts: Creating a Climate Resilient Future.”
https://www.deltacouncil.ca.gov/pdf/delta-plan/2021-06- 25-delta-adapts-vulnerability-assessment.pdf 3 San Joaquin County Council of Governments. 2020. “San Joaquin Council of Governments Climate Adaptation &
Resiliency Study: Climate Adaptation Report.”
4 San Joaquin County Council of Governments. 2020. “San Joaquin Council of Governments Climate Adaptation &
Resiliency Study: Climate Adaptation Report.”
5 Delta Stewardship Council. 2021. “Delta Adapts: Creating a Climate Resilient Future.”
6 San Joaquin County Council of Governments. 2020. “San Joaquin Council of Governments Climate Adaptation &
Resiliency Study: Climate Adaptation Report.”
7 Delta Stewardship Council. 2021. “Delta Adapts: Creating a Climate Resilient Future.”
8 Delta Stewardship Council. 2021. “Delta Adapts: Creating a Climate Resilient Future.”
9 Delta Stewardship Council. 2021. “Delta Adapts: Creating a Climate Resilient Future.”
10 Delta Stewardship Council. 2021. “Delta Adapts:

Creating a Climate Resilient Future.”
11 Delta Stewardship Council. 2021. “Delta Adapts:

Creating a Climate Resilient Future.”
12 City of Stockton. 2018. “Envision Stockton 2040 General Plan Update and Utility Master Plan Supplements Draft EIR.” http://www.stocktonca.gov/files/EnvisionStockton2040GP_ DEIR.pdf
13 United States Census Bureau. 2017 - 2021 American
Community Survey 5-Year Estimates: Year Structure Built. 14 City of Stockton. 2018. “Envision Stockton 2040 General Plan Update and Utility Master Plan Supplements Draft EIR.” http://www.stocktonca.gov/files/EnvisionStockton2040GP_ DEIR.pdf
15 Delta Stewardship Council. 2021. “Delta Adapts:

Creating a Climate Resilient Future.”
https://www.deltacouncil.ca.gov/pdf/delta-plan/2021-06- 25-delta-adapts-vulnerability-assessment.pdf
16 Delta Stewardship Council. 2021. “Delta Adapts:

Creating a Climate Resilient Future.”
https://www.deltacouncil.ca.gov/pdf/delta-plan/2021-06- 25-delta-adapts-vulnerability-assessment.pdf 17 City of Stockton. 2018. “Envision Stockton 2040 General Plan Update and Utility Master Plan Supplements Draft EIR.” http://www.stocktonca.gov/files/EnvisionStockton2040GP_ DEIR.pdf
18 Wyatt, D. 2021. “San Joaquin Valley Sinks in Droughts.” https://www.mantecabulletin.com/news/local-news/sanjoaquin-valley-sinks-droughts/ 19 Delta Stewardship Council. 2021. “Delta Adapts:

Creating a Climate Resilient Future.”
https://www.deltacouncil.ca.gov/pdf/delta-plan/2021-06- 25-delta-adapts-vulnerability-assessment.pdf 20 Delta Stewardship Council. 2021. “Delta Adapts:

Creating a Climate Resilient Future.”
https://www.deltacouncil.ca.gov/pdf/delta-plan/2021-06- 25-delta-adapts-vulnerability-assessment.pdf 21 City of Stockton. 2018. “Envision Stockton 2040 General Plan Update and Utility Master Plan Supplements Draft EIR.” http://www.stocktonca.gov/files/EnvisionStockton2040GP_ DEIR.pdf
22 City of Stockton. 2018. “Envision Stockton 2040 General Plan Update and Utility Master Plan Supplements Draft EIR.” http://www.stocktonca.gov/files/EnvisionStockton2040GP_ DEIR.pdf
23 City of Stockton. 2018. “Envision Stockton 2040 General Plan Update and Utility Master Plan Supplements Draft EIR.” http://www.stocktonca.gov/files/EnvisionStockton2040GP_ DEIR.pdf
24 Delta Stewardship Council. 2022. “The Delta Plan.”
https://deltacouncil.ca.gov/delta-plan/ 25 City of Stockton. 2018. “Envision Stockton 2040 General Plan Update and Utility Master Plan Supplements Draft EIR.” http://www.stocktonca.gov/files/EnvisionStockton2040GP_ DEIR.pdf
26 Delta Stewardship Council. 2021. “Delta Adapts:

Creating a Climate Resilient Future.”
https://www.deltacouncil.ca.gov/pdf/delta-plan/2021-06- 25-delta-adapts-vulnerability-assessment.pdf 27 City of Stockton. 2018. “Envision Stockton 2040 General Plan Update and Utility Master Plan Supplements Draft EIR.” http://www.stocktonca.gov/files/EnvisionStockton2040GP_ DEIR.pdf
28 City of Stockton. 2018. “Envision Stockton 2040 General Plan Update and Utility Master Plan Supplements Draft EIR.” http://www.stocktonca.gov/files/EnvisionStockton2040GP_ DEIR.pdf
29 City of Stockton. 2018. “Envision Stockton 2040 General Plan Update and Utility Master Plan Supplements Draft EIR.” http://www.stocktonca.gov/files/EnvisionStockton2040GP_ DEIR.pdf
30 City of Stockton. 2018. “Envision Stockton 2040 General Plan Update and Utility Master Plan Supplements Draft EIR.” http://www.stocktonca.gov/files/EnvisionStockton2040GP_ DEIR.pdf
31 City of Stockton. 2018. “Envision Stockton 2040 General Plan Update and Utility Master Plan Supplements Draft EIR.” http://www.stocktonca.gov/files/EnvisionStockton2040GP_ DEIR.pdf
ATTACHMENT B - Safety Element Background Report 937
32 City of Stockton. 2018. “Envision Stockton 2040 General Plan Update and Utility Master Plan Supplements Draft EIR.” http://www.stocktonca.gov/files/EnvisionStockton2040GP_ DEIR.pdf
33 Delta Stewardship Council. 2022. “The Delta Plan.”
https://deltacouncil.ca.gov/delta-plan/ 34 Delta Stewardship Council. 2022. “The Delta Plan.” https://deltacouncil.ca.gov/delta-plan/ 35 San Joaquin County. 2022. “Reclamation Districts.” https://sjmap.org/mapdocs/FrontCounter_Reclamation_Dist ricts.pdf
36 Delta Stewardship Council. 2022. “The Delta Plan.”
https://deltacouncil.ca.gov/delta-plan/ 37 City of Stockton. 2018. “Envision Stockton 2040 General Plan Update and Utility Master Plan Supplements Draft EIR.” http://www.stocktonca.gov/files/EnvisionStockton2040GP_ DEIR.pdf
38 San Francisco Bay Keeper. 2022. Sea Level Rise in
California. https://baykeeper.org/shoreview/california-slr. 39 Delta Stewardship Council. 2021. “Delta Adapts:

Creating a Climate Resilient Future.”
https://www.deltacouncil.ca.gov/pdf/delta-plan/2021-06- 25-delta-adapts-vulnerability-assessment.pdf 40 Delta Stewardship Council. 2021. “Delta Adapts:

Creating a Climate Resilient Future – Technical
Memorandum, Flood Hazard Assessment”.
https://www.deltacouncil.ca.gov/pdf/delta-plan/2021-06- 17-flood-hazard-assessment-technical-memorandum.pdf. 41 Delta Stewardship Council. 2021. “Delta Adapts:

Creating a Climate Resilient Future.”
https://www.deltacouncil.ca.gov/pdf/delta-plan/2021-06- 25-delta-adapts-vulnerability-assessment.pdf 42 City of Stockton. 2018. “Envision Stockton 2040 General Plan Update and Utility Master Plan Supplements Draft EIR.” http://www.stocktonca.gov/files/EnvisionStockton2040GP_ DEIR.pdf
43 San Joaquin Area Flood Control Agency. 2022.
“Strategic Plan.”
https://www.sjafca.org/home/showpublisheddocument/132
5/637991766105930000
44 Delta Stewardship Council. 2022. “The Delta Plan.”
https://deltacouncil.ca.gov/delta-plan/
45 San Joaquin Area Flood Control Agency. 2022.
“Strategic Plan.”
https://www.sjafca.org/home/showpublisheddocument/132
5/637991766105930000
46 Meehan, R. “High Risk in the California Delta.”
https://web.stanford.edu/~meehan/deltalevees/Introductio n.html
47 Delta Stewardship Council. 2021. “Delta Adapts:

Creating a Climate Resilient Future.”
https://www.deltacouncil.ca.gov/pdf/delta-plan/2021-06- 25-delta-adapts-vulnerability-assessment.pdf 48 Delta Stewardship Council. 2022. “The Delta Plan.” https://deltacouncil.ca.gov/delta-plan/
49 City of Stockton Municipal Utilities District. 2021. “City of Stockton 2020 Urban Water Management Plan.”
50 Delta Stewardship Council. 2021. “Delta Adapts:

Creating a Climate Resilient Future.”
https://www.deltacouncil.ca.gov/pdf/delta-plan/2021-06- 25-delta-adapts-vulnerability-assessment.pdf 51 Delta Stewardship Council. 2021. “Delta Adapts:

Creating a Climate Resilient Future.”
https://www.deltacouncil.ca.gov/pdf/delta-plan/2021-06- 25-delta-adapts-vulnerability-assessment.pdf 52 City of Stockton Municipal Utilities District. 2021. “City of Stockton 2020 Urban Water Management Plan.”
52 Delta Stewardship Council. 2021. “Delta Adapts:

Creating a Climate Resilient Future.”
53 Delta Stewardship Council. 2021. “Delta Adapts:

Creating a Climate Resilient Future.”
https://www.deltacouncil.ca.gov/pdf/delta-plan/2021-06- 25-delta-adapts-vulnerability-assessment.pdf
54 City of Stockton. 2018. “Envision Stockton 2040 General Plan Update and Utility Master Plan Supplements Draft EIR.” http://www.stocktonca.gov/files/EnvisionStockton2040GP_ DEIR.pdf
55 City of Stockton Municipal Utilities Department. 2021. “Water Shortage Contingency Plan.”
56 Cal Water. 2020. “2020 Urban Water Management
Plan.”
https://www.calwater.com/docs/uwmp2020/STK_2020_U
WMP_FINAL.pdf
57 City of Stockton. 2018. “Envision Stockton 2040 General Plan Update and Utility Master Plan Supplements Draft EIR.” http://www.stocktonca.gov/files/EnvisionStockton2040GP_ DEIR.pdf
58 City of Stockton. 2018. “Envision Stockton 2040 General Plan Update and Utility Master Plan Supplements Draft EIR.” http://www.stocktonca.gov/files/EnvisionStockton2040GP_ DEIR.pdf
59 Cal Water. 2021. “2020 Urban Water Management
Plan.”
https://www.calwater.com/docs/uwmp2020/STK_2020_U
WMP_FINAL.pdf
60 City of Stockton Municipal Utilities District. 2021. “City of Stockton 2020 Urban Water Management Plan.”
61 Delta Stewardship Council. 2021. “Delta Adapts:

Creating a Climate Resilient Future.”
https://www.deltacouncil.ca.gov/pdf/delta-plan/2021-06- 25-delta-adapts-vulnerability-assessment.pdf
62 Delta Stewardship Council. 2021. “Delta Adapts:

Creating a Climate Resilient Future.”
https://www.deltacouncil.ca.gov/pdf/delta-plan/2021-06- 25-delta-adapts-vulnerability-assessment.pdf
63 City of Stockton Municipal Utilities District. 2021. “City of Stockton 2020 Urban Water Management Plan.”
64 Delta Stewardship Council. 2021. “Delta Adapts:

Creating a Climate Resilient Future.”
ATTACHMENT B - Safety Element Background Report 938
https://www.deltacouncil.ca.gov/pdf/delta-plan/2021-06- 25-delta-adapts-vulnerability-assessment.pdf
65 Delta Stewardship Council. 2021. “Delta Adapts:

Creating a Climate Resilient Future.”
https://www.deltacouncil.ca.gov/pdf/delta-plan/2021-06- 25-delta-adapts-vulnerability-assessment.pdf
66 Kramer, Heather Anu; Mockrin, Miranda H.; Alexandre, Patricia M.; Radeloff, Volker C. 2019. High wildfire damage in interface communities in California. International Journal of Wildland Fire 28(9): 641.
https://doi.org/10.1071/WF18108.
67 CBS Sacramento. 2018. “Wavely Fire Grows to 12,300
Acres in San Joaquin County, Evacuations Lifted.”
https://www.cbsnews.com/sacramento/news/san-joaquincounty-calaveras-county-waverly-fire/ 68 FOX40 Web Desk. 2020. “Fire burned 150 acres in San
Joaquin County, 100% contained.”
https://fox40.com/news/local-news/fire-burns-150-acres-insan-joaquin-county-50-contained/ 69 Walike, L. 2022. “Sparks from grinder ignited 23-acre wildfire in San Joaquin County, Cal Fire says.”
https://www.abc10.com/article/news/local/wildfire/cordfire-san-joaquin-county/103-64b77fe3-26f1-4336-a669- e45bc43aba18
70 San Joaquin County. “2019 San Joaquin County Crop
Report.” https://www.sjgov.org/docs/defaultsource/agricultural-commissioner-documents/croprptarchive/2010to2019/2019.pdf?sfvrsn=441fa1_5 71 San Joaquin County. “2018 San Joaquin County Crop
Report.” https://www.sjgov.org/docs/defaultsource/agricultural-commissioner-documents/croprptarchive/2010to2019/2018.pdf?sfvrsn=caf2adda_5 72 Huang, J., H. Akbari, and H. Taha. 1990. The WindShielding and Shading Effects of Trees on Residential Heating and Cooling Requirements. ASHRAE Winter
Meeting, American Society of Heating, Refrigerating and Air-Conditioning Engineers. Atlanta, Georgia. 73 Kurn, D., S. Bretz, B. Huang, and H. Akbari. 1994. The Potential for Reducing Urban Air Temperatures and Energy Consumption through Vegetative Cooling. ACEEE Summer
Study on Energy Efficiency in Buildings, American Council for an Energy Efficient Economy. Pacific Grove, California. 74 Delta Stewardship Council. 2021. “Delta Adapts:

Creating a Climate Resilient Future.”
https://www.deltacouncil.ca.gov/pdf/delta-plan/2021-06- 25-delta-adapts-vulnerability-assessment.pdf 75 Delta Stewardship Council. 2021. “Delta Adapts:

Creating a Climate Resilient Future.”
https://www.deltacouncil.ca.gov/pdf/delta-plan/2021-06- 25-delta-adapts-vulnerability-assessment.pdf
76 San Joaquin County. 2017. “Local Hazard Mitigation
Plan.”
77 San Joaquin County Council of Governments. 2020.
“San Joaquin Council of Governments Climate Adaptation
& Resiliency Study: Climate Adaptation Report.”
78 Duginski, P. 2020. “What causes dangerous tule fog in California’s Central Valley, and why is it becoming less common?” Los Angeles Times.
https://www.latimes.com/california/story/2020-01-
11/what-causes-dangerous-tule-fog-in-californias-centralvalley-and-why-is-it-becoming-less-common 79 Bays, J. 2018. “Tick, mosquito borne diseases on the rise – outside of San Joaquin.”
https://www.lodinews.com/news/article_7a76bf18-5025-
11e8-a9c6-2f3d3f25fb3a.html
ATTACHMENT B - Safety Element Background Report 939
SAFETY 5
Every general plan in California must address
natural and human-made hazards and dangers,
and identify the potential risk of death, injuries,
property damage, and economic and social
dislocation from fires, floods, earthquakes, and
other events. Public safety and emergency
response are top priorities in Stockton, but not just
in relation to widespread events. Concerns over
personal safety weigh heavily on many
neighborhoods, even to the point of discouraging
residents from recreating or traveling along
specific routes or at certain times of day. The focus
of this chapter is on improving public safety and
reducing the risk of hazards. The chapter is
organized around four key goals that represent
the priorities of the Stockton community:
■ Safe Community
■ Hazard Protection
■ Clean Water
■ Clean Air
ATTACHMENT C - Draft Safety Element (Redline) 940

GOALS, POLICIES, AND ACTIONS

PUBLIC SAFETY IS A TOP

COMMUNITY PRIORITY
Violence and crime prevention are major issues
for the Stockton community. As one of the City’s
strategic initiatives to reduce violence and crime
and increase public safety, the Stockton Marshall
Plan, funded by a ¾-cent sales tax approved by
voters in 2013, emphasizes data-based targeting
of "focus area" locations and predictive policing
to achieve the objectives of preventing and
stopping violence and building violenceprevention capacity.

Design of the built environment can also help
prevent crime and increase both the sense and
reality of safety. Research has shown that the most
effective deterrent to criminal activity is the risk of being caught, and design of public spaces that
places more eyes on the street and limits access
points can create safer environments. Strategies
for Crime Prevention Through Environmental
Design (CPTED) include locating windows to
overlook sidewalks and parking lots, increasing
pedestrian and bicycle traffic, and installing
fencing, landscaping, or lighting to control
access. Well-maintained buildings and property
also signal alert, active owners and can deter
criminal activity.

The Stockton Police Department (SPD) and Fire
Department (SFD) provide essential services to
keep the community safe; police and fire stations
are shown on Figure 5-1. The SPD provides
professional law enforcement based on a model
of prediction, prevention, pursuit, and
partnerships. This model combines policing and
enforcement strategies with community
involvement and engagement. Through its
commitment to community policing, the SPD has
established a variety of mentorship programs and
training classes that promote proactive
partnership with neighborhood organizations and
business owners to identify and solve issues.

The SFD mission is centered on providing excellent
emergency and non-emergency services through
public education, prevention, and aggressive
suppression and rescue activities. The SFD is an allhazard fire department, capable of mitigating all types of both human-made and natural disasters.

As such, the fire department has the following
specialized teams:
■ Hazardous Materials Team: A California
Office of Emergency Services Type II
Hazardous Materials Team staffed with seven
personnel daily, trained to the Hazardous
Materials Technician and Specialist level.

Specialty apparatus and personnel are
assigned to Fire Company 3.
■ Water Rescue Team: Staffed by a team of
four personnel daily, the water rescue team is
capable of both surface and sub-surface
water rescues, helping to protect over 1,000
miles of waterways surrounding the city. The
team has specialty apparatus including
personal watercraft, inflatable boats, and a
water rescue vehicle. The Water Rescue
Team is assigned to Fire Company 6. In
addition to City resources, the California
Office of Emergency Services has also
assigned the City a tow vehicle and trailer
(OES Boat Team #13) for deployment
anywhere in the United States.

GOAL SAF-1: SAFE COMMUNITY
Create a safe and welcoming environment in all areas of the city at all times of day.

ATTACHMENT C - Draft Safety Element (Redline) 941
■ Urban Search and Rescue (USAR) Team:

Staffed by a team of seven personnel daily,
the USAR Team is trained in rope rescue,
confined space rescue, trench rescue, and
building collapse. The team utilizes specialty
apparatus including a Type I heavy rescue,
and a California Office of Emergency
Services Rescue Trailer.

ATTACHMENT C - Draft Safety Element (Redline) 942
Figure 5-1
Police and Fire Stations
ATTACHMENT C - Draft Safety Element (Redline) 943
To reinforce their public service model, the SFD
offers a variety of volunteer programs including
the Community Emergency Response Team
(CERT), which provides training to residents and
members of the business community to increase
disaster awareness and emergency response
capability, as well as the Stockton Fire Explorers
and Stockton Fire Auxiliaries. The City and San
Joaquin County coordinate for response in
emergency situations, and SFD offers disaster
preparedness training opportunities through the
CERT program. The risk of wildfire in the Planning
Area is considered relatively low, given the lack of
forest or grassland area that could serve as fuel
sources for a wildfire.

Measure W was approved by voters November 2,
2004. It was originally adopted by Ordinance 038-
04 C.S., and is codified in Section 3.52 of the
Stockton Municipal Code, entitled Funding for
Police and Fire Protection Services. The ordinance
provides for a ¼-cent (0.25 per cent) transaction
and use tax (i.e., sales tax), a tax dedicated to
providing for police and fire personnel and
services. The ordinance calls for Program
Guidelines, which were developed and adopted
by the City Council, August 4, 2004. The Program
Guidelines prescribe two methods of ensuring that
tax monies collected are used as specified by the
ordinance. The first method is an independent
audit and the second method is a citizens'
committee. Measure W provides funding for 23
suppression positions within the SFD.

Public safety staffing and response time standards
provide a means to ensure that the community
will remain safe as the city develops. The City
strives to achieve the following public safety
standards:
■ Police Staffing: 1.5 sworn officers per 1,000
residents.
■ Police Response Times: Average law
enforcement response time of 5 minutes or
less for priority one calls (where a threat to
persons may exist).
■ Fire Staffing: 1.23 sworn firefighters per 1,000
residents for a population up to 500,000
people.
■ Fire Response Times:
• 240 seconds or less travel time for the arrival
of the first arriving engine company at a fire
suppression incident.
• For other than high-rise, 480 seconds or less
travel time for the deployment of an initial
full alarm assignment at a fire suppression
incident.
• For high-rise, 610 seconds or less travel time
for the deployment of an initial full alarm
assignment at a fire suppression incident.

POLICY SAF-1.1
Invest in neighborhood safety through
partnerships with the community to help prevent
violence and crime ("community policing").

ATTACHMENT C - Draft Safety Element (Redline) 944
Action SAF-1.1A
Promote public safety programs, including
business, neighborhood, and school watches;
child identification and fingerprinting; and other
public education efforts.

Action SAF-1.1B
Maintain and expand community outreach
programs to improve the community’s
understanding of how the criminal justice system
works, foster a positive relationship between
community members and public safety staff,
provide a venue for open dialog, and promote
transparency in public safety.

Action SAF-1.1C
Engage with schools, non-profit organizations,
and faith-based organizations to recognize and
work with at-risk youth to avert future criminal
activity.

POLICY SAF-1.2
Reduce community violence and crime by
fostering community connectivity, creating a
sense of place, and encouraging social
interactions between residents, employees, and
business owners.

Action SAF-1.2A
Update the City’s Design Guidelines and
Development Code to require new and retrofitted
development to support effective police and fire
protection response and services by using the
following principles of crime prevention through
environmental design (CPTED):
■ Delineate private and public spaces
■ Enhance visibility
■ Control property access
■ Ensure adequate property maintenance
Action SAF-1.2B
Pursue public art projects that match the culture
of the neighborhood to create a sense of
ownership and belonging.

Action SAF-1.2C
Engage residents and business owners in ongoing
discussions about how land use and planning
decisions can help to reduce violence.

Action SAF-1.2D
Incentivize a variety of uses in a neighborhood
that will be active throughout the day and night.

POLICY SAF-1.3
Ensure that City-managed spaces and facilities
support a feeling of safety for users.

Action SAF-1.3A
Design and maintain parks, waterways, trail
corridors, and other facilities to meet the
recreational needs of the community, while
maximizing public safety and access concerns,
such as through the following approaches:
■ Locate facilities to ensure visibility along
public roadways where appropriate.
■ Provide clear access points.
■ Maintain vegetation to maximize visibility and
demonstrate active attention to the site.
■ Use signage to clearly convey site ownership
and rules.

Action SAF-1.3B
Design and improve City streetscapes to create
safer places by maximizing visibility through
installation and maintenance of appropriate
lighting and landscaping.

ATTACHMENT C - Draft Safety Element (Redline) 945
ATTACHMENT C - Draft Safety Element (Redline) 946

WE NEED TO BE PREPARED

FOR EMERGENCIES
The Hazard Protection section contains the City’s
policies and actions to minimize hazardous
situations in and around Stockton. It identifies the
natural and human-caused hazards that affect
existing and future development, describes
present and expected future conditions, and sets
policies and standards for improved public safety.

This includes efforts to minimize physical harm to
the buildings and infrastructure in and around
Stockton to reduce damage to local economic
systems, community services, and ecosystems.

Much more detail about this section and the issues
it addresseds are included in the Safety Element
Background Report.

CLIMATE CHANGE VULNERABILITY
Changes to the global climate system are
expected to affect future occurrences of natural
hazards in and around Stockton. Many hazards
are projected to become more frequent and
intense in coming years and decades, and —in
some cases, these changes have already begun.

Key effects of climate change that affect
Stockton include increasing temperatures,
changes in precipitation, and sea level rise.

Overall, precipitation levels are expected to
increase only slightly,. However, but there are likely
to be more years of extreme precipitation events
andas well as droughts that last longer and are
more severe.

Under California law, the Safety Element is
required to include a vulnerability assessment that
looks at how people, buildings, infrastructure, and
other key community assets may be affected by
climate change. The City conductedprepared a
Climate Change Vulnerability Assessment in the
winter of 2023 to analyze Stockton’s susceptibility
to climate-related hazards,. prepared in
accordance withThe assessment followed the
most recent available guidance in the California
Adaptation Planning Guide.

The Climate Change Vulnerability Assessment
found that inland flooding and sea level rise poses
the greatest threat to Stockton, followed by
extreme heat, severe weather, wildfire and
smoke, and human health hazards. The most
vulnerable communities include low-resourced
people of color, outdoor workers, and individuals
experiencing homelessness, althoughbut many
other groups also face an increased risk of harm.

Many local and regional infrastructure networks
are vulnerable, including the electrical grid,
transportation systems, flood control systems, and
water and wastewater infrastructure. Damage to
these systems can create serious public health
hazards and cause widespread economic harm.

The Safety Element includes goals, policies, and
implementation actions to increase community
resilience and help lower vulnerability.

COMMUNITY WARNING SYSTEMS
San Joaquin County has partnered with
Everbridge, a public warning platform, to
implement SJREADY, a community notification
system to alert residents about emergency events
and other important public safety information. This
system allows San Joaquin County to provide
Stockton residents with critical information quickly
in an emergency. There are also several other
emergency alert systems, including notifications
through broadcasters, cable television systems,
GOAL SAF-2: HAZARD PROTECTION
Protect residents and businesses from natural and human-caused hazards.

ATTACHMENT C - Draft Safety Element (Redline) 947
and digital audio services. Social media and
websites can supplement these alert systems.

EMERGENCY EVACUATION
With advanced warning, evacuation can be
effective in reducing injury and loss of life during a
catastrophic event. The San Joaquin County
Office of Emergency Services has prepared an
evacuation plan for response to flooding due to
failure of a levee or dike. The evacuation plan
includes routes for people evacuating by car, rally
points for people needing assistance evacuating,
and instructions for how to evacuate safely during
a flood.

Figure 5-2 shows potential major evacuation
routes in Stockton, including highways and
surface streets. If there is a need for an
evacuation, emergency responders will direct
community members to the most suitable
evacuation routes givenfor the specific needs
and characteristics of the emergency. This figure
also shows residential parcels that are at least half
a mile from a major roadway and with limited
access points. These parcels may face
evacuation constraints, creating potential
difficulties if there is a need to evacuate.

Stockton has prepared an analysis of potential
evacuation times for different areas of the city
under different emergency situations: a city-wide
evacuation due to a 500-year flood event that
results in levee breaches, a major dam break, and
a smaller-scale flood event exacerbated by sea
level rise. In each scenario, the City identified the
paths out of Stockton (referred to asor
“evacuation gateways”) that would remain
viable and would not lead into another hazard
zone, and then estimated the amount of time it
would take residents to reach one of these
gateways under either normal driving speeds or a
constrained 5 miles per hour.

If normal driving speeds remain feasible, this
modeling shows that most of Stockton could be
evacuated in approximately 30 minutes, although
areas in northwest Stockton could take longer
since the most viable evacuation routes lead
toward the southeast. Under constrained driving
speeds, evacuation times are significantly longer,
particularly for areas in northwest Stockton, such
as the Spanos Park and Bear Creek
neighborhoods. The full results of the evacuation
scenario are presented in the Safety Element
Background Report. The policies included in this
Safety Element help address issues of evacuation
constraints and similar challenges.

ATTACHMENT C - Draft Safety Element (Redline) 948
Figure 5-2
Evacuation Routes and Residential Parcels with Evacuation Constraints ATTACHMENT C - Draft Safety Element (Redline) 949
ATTACHMENT C - Draft Safety Element (Redline) 950
POLICY SAF-2.1
Ensure that community members are
adequately prepared for natural disasters and
emergencies through education and training.

Action SAF-2.1A
Develop neighborhood watch and emergency
support groups to be trained and put into action
in the event of an emergency in support of
government staff.

Action SAF-2.1B
Inform the public about the specific risks of living
in flood-prone areas and provide residents with
instructional information on how to take steps to
reduce their exposure to flood damages.

POLICY SAF-2.12
Prepare sufficiently for major events to enable
quick and effective response.

Action SAF-2.12A
Require new development to provide adequate
access for emergency vehicles and evacuation
routes, including by designing roadway systems to
provide multiple escape routes in the event of
flooding or other emergenciesin the event of a
levee failure.

Action SAF-2.1B
Regularly review the City’s evacuation maps and
update as necessary.

Action SAF-2.1C
Regularly share the City’s evacuation maps with
the public and property owners within flood zones.

Action SAF-2.1D
Coordinate with transit and service providers to
identify and advertise ways for individuals with
restricted mobility to evacuate in the event of a
flood or other emergency.

Action SAF-2.12EAB
Formulate, review, periodically update, and make
available to the public emergency management
plans for the safe evacuation of people from
areas subject to environmental hazardsto
inundation from levee and dam failure.

Action SAF-2.12FBC
Require new critical facilities, including hospitals,
emergency operations centers, communications
facilities, fire stations, and police stations, to be
located, designed, and constructed to avoid or
mitigate potential risks and ensure functional
operation during flood events. (i.e., aAvoid
locating critical facilities in the 100-year and 200-
year floodplains or, within the 2085 projected sea
level inundation zone, and construct facilities to
be resilient to seismic and geological events, fires,
and explosions.
the 100-year and 200-year floodplains or within the
2050 projected sea level inundation zone as
shown in Figures XX),all
Action SAF-2.12GCD
Continue to work with San Joaquin County, the
County Office of Emergency Services, other cities
in the region, and disaster agencies to coordinate
disaster and emergency preparedness planning.

Action SAF-2.1D
Ensure that emergency alerts and related
notifications are widely distributed in multiple
languages, formats, and media so as to
effectively reach as many people as possible,
including those with limited English proficiency
and with access and functional needs.

POLICY SAF-2.2
Enhance the effectiveness of evacuations in
Stockton.

Action SAF-2.12A
Require new development to provide adequate
access for emergency vehicles and evacuation
ATTACHMENT C - Draft Safety Element (Redline) 951
routes, including by designing roadway systems to
provide multiple escape routes in the event of
flooding or other emergencies.

Action SAF-2.12B
Regularly review the City’s evacuation maps and
update as necessary.

Action SAF-2.12C
Regularly share the City’s evacuation maps with
the public and property owners within flood zones.

Action SAF-2.12D
Coordinate with transit and service providers to
identify and advertise ways to evacuate in the
event of a flood or other emergency for
individuals with restricted mobility or those who
may need additional assistance to evacuate in
the event of a flood or other emergency.

Action SAF-2.12E
In partnership with the San Joaquin Council of
GovenrmentsGovernments and other local
agencies, retrofit potential evacuation routes to
protect them against floodwaters and other
emergencies, and ensure that they can provide
viable paths out of Stockton.

Action SAF-2.12F
Conduct door-to-door evacuation notifications in
areas with limited access to reliable
communication, particularly in frontline
communities or those that may need the greatest
advanced notification.

Action SAF-2.12G
To the extent feasible givenin emergency
conditions, phase evacuations to minimize
roadway constraints and to allow all residents
sufficient time to leave.

POLICY SAF-2.23
Ensure that community members are
adequately prepared for natural disasters and
emergencies through education and training.

Action SAF-2.23A
Develop neighborhood watch and emergency
support groups to be trained and put into action
in the event of an emergency in support of
government staff in the event of an emergency.

Action SAF-2.23B
Conduct public education campaigns to
increase awareness of and preparation for
climate hazards.

ATTACHMENT C - Draft Safety Element (Redline) 952

SEISMIC AND GEOLOGIC HAZARDS
Seismic and geologic hazards are risks caused by
the movement of the Earth’s surface, or crust.

Seismic hazards are earthquakes and related
hazards. Geologic hazards are other hazards
involving land movements that are not linked to
seismic activity.

There are a few faults in the region capable of
causing a major earthquake in Stockton,
althoughbut they are all of these faults sit west of
Stockton, closer to the San Francisco Bay. Smaller
faults sit Closer to Stockton are some smaller faults,
including the Stockton Fault whichthat runs eastwest across the city, but it is not known to be active. Strong shaking from a major earthquake is
rare in Stockton, although there were reports of
significant shaking and localized damage in the
area during the 1989 Loma Prieta earthquake.

Figure 5-3 shows key fault lines in the region,
although but not all smaller or less active faults are
shown.

If major shaking from an earthquake does occur
in Stockton, there is a risk of significant injury or loss of life from the damage or collapse of buildings
and structures. Older homes in particular are at
risk, asbecause they were constructed prior to the
advent ofbefore modern buildings codes and
may not be seismically retrofitted. There is also a
risk of harm from secondary hazards caused by
the shaking, including urban fires, dam failures,
and toxic chemical releases.

Other geologic hazards that may occur in the
area, includinge landslides, subsidence (the
gradual sinking of land, often due to groundwater
pumping), and soils that can significant expand
and contract depending on their moisture levels.

There are no areas of substantial landslide risk in
Stockton. Other parts of the Delta region have
experienced subsidence, and there is an
increased risk of further subsidence due to water
management practices. Most of Stockton sits on
areas with a moderate risk of soil expansion. Any
construction on these soils may require
certainspecific management practices to reduce
potential damage.

POLICY SAF-2.54
Reduce the potential harm from earthquakes
and geologic hazards.

Action SAF-2.54A
Participate in local, county, and State-sponsored
earthquake preparedness programs.

Action SAF-2.54B
Coordinate with the Stockton Fire Department,
Stockton Community Emergency Response Team,
San Joaquin County Office of Emergency
Services, special districts, local utility providers,
and major businesses to ensure effective
preparation, response, and recovery services are
available throughout the community before,
during, and after a seismic event.

Action SAF-2.54C
Assess critical and lifeline facilities for seismic and landslide safety to ensure they remain operational
after a seismic event or landslide.

Action SAF-2.54D
Identify City infrastructure with seismic or landslide
vulnerabilities and pursue funding to conduct
appropriate seismic retrofits.

Action SAF-2.54E
Continue to implement California Building
Standards Code seismic safety standards for
construction of new buildings.

Action SAF-2.54F
Target low-income households, owners and
occupants of structures constructed prior to 1980,
and owners and occupants of unreinforced
masonry buildings with information regarding the
importance of seismic retrofitting, and help
building owners and occupants connect with
providers of these services
ATTACHMENT C - Draft Safety Element (Redline) 953
Action SAF-2.54G
Locate new critical and lifeline facilities outside of
landslide susceptibility areas, when feasible. If not
feasible, appropriately site, design, and construct
new critical facilities to be resilient to landslides.

ATTACHMENT C - Draft Safety Element (Redline) 954
Figure 5-3
Regional Fault Lines
ATTACHMENT C - Draft Safety Element (Redline) 955

FLOODING AND INUNDATION

HAZARDS
Floods are among the costliest natural disasters in
terms of human hardship and economic loss
nationwide, significantly threatening people’s
health and lives and causing substantial damage
to structures, landscapes, and utilities.

Reclamation of Delta land over many years has
reduced available floodplain and increased
flooding potential. Flood risk is therefore one of the
most pressing threats to the Delta area, and
Stockton is one of the areas at highest risk.

Areas at an elevated risk of flooding are generally
divided into 100-, 200-, and 500-year flood zones.

A 100-year flood zone has a 1 percent chance of
experiencing a major flood in any given year, a
200-year flood zone has a 0.5 percent chance,
and a 500-year flood zone has a 0.2 percent
chance. The majority of the city is in one of these
flood zones, as shown on Figure 5-4, making
flooding a hazard of significant concern for
Stockton. Figure 5-5 shows the land uses in these
affected areas.

Most of the city is protected from flooding by
levees, which are shown on Figure 5-6. However,
many levees in the Delta region were initially
constructed more than a century ago using
rudimentary equipment and nonengineered fill
material excavated from adjacent channels,
sloughs, and marshes. There have been several
improvements to the levee system in and around
Stockton in recent years, including construction of
new flood protection facilities led by the San
Joaquin Area Flood Control Agency. A number of
local, regional, state, and federal agencies play a
role in maintaining levees and other flood
protection facilities in and around Stockton. This
includes the Central Valley Flood Protection
Board, a regulating authority over flood risk
management in the Central Valley and
responsible for adopting the Central Valley Flood
Protection Plan.

Despite these improvements, vulnerabilities
remain in Stockton’s levee system. The Country
Club neighborhood and areas along the San
Joaquin River and its floodplain within the
southern part of the city do not receive adequate
flood protection from levees. Although all
remaining levees provide 100-year flood
protection, no levees meet the State’s 200-year
flood protection requirement in the Central Valley
Flood Protection PlanCVFPP. The Delta’s levees
are also threatened by the active seismic zones
west of the Delta, including the San Andreas and
Hayward faults. Even without an earthquake or
flood, Delta levees can fail during high tides or
even on sunny days. In the event of a major levee
break, much of the city would be inundated,
potentially damaging tens of thousands of homes.

Sea Level Rise
Sea level rise is an increase in the ocean’s surface
height relative to the land in a particular location.

It is a gradual process that takes place over years
or decades, affecting communities near
shorelines and low-lying waterways, including the
Sacramento/San Joaquin Delta region. Sea levels
in the San Francisco Bay-Delta Estuary are likely to
rise at least to 7 to 13 inches by 2050, and
potentially as high as 23 inches (almost two feet).

By the end of the century, sea levels are likely to
rise significantly higher, potentially as much as
about 7 to 10 feet. Figures 5-7 and 5-8 show the
likelihood that certain areas of Stockton will be
flooded due to sea level rise by 2050 and 2085,
respectively.

There are a range of factors that impact water
levels in the San Joaquin Delta, including inflows
(from local and upstream precipitation), San
Joaquin Delta exports into regional and state
water systems, astronomical tides, atmospheric
effects (pressure and wind), and flow control
operations. Regional and local land subsidence
further complicates local sea level trends for the
Delta region. Decomposition of drained and
converted marsh and peat soils within diked Delta
islands have caused much of the Delta region to
lie below sea level—in some places by as much as
ATTACHMENT C - Draft Safety Element (Redline) 956
15 to 20 feet. Continued land subsidence may
increase the relative rate of locally observed sea
level change for the Delta area when comparing
water levels to local land elevations.

ATTACHMENT C - Draft Safety Element (Redline) 957
Figure 5-4
Flood Hazard and Levee Protection Zones
ATTACHMENT C - Draft Safety Element (Redline) 958
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ATTACHMENT C - Draft Safety Element (Redline) 959
Figure 5-65
Planned Land Uses in Flood Hazard Zones
ATTACHMENT C - Draft Safety Element (Redline) 960
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ATTACHMENT C - Draft Safety Element (Redline) 961
Figure 5-6
Flood Protection Levees
ATTACHMENT C - Draft Safety Element (Redline) 962
Figure 5-7
2050 Sea Level Rise Projections (Probabilistic)
ATTACHMENT C - Draft Safety Element (Redline) 963
Figure 5-8
2085 Sea Level Rise Projections (Probabilistic)
ATTACHMENT C - Draft Safety Element (Redline) 964
Dam Failure
A dam failure is an uncontrolled release of water
from a reservoir through a dam because of
structural failures or deficiencies in the dam,
usually associated with intense rainfall or
prolonged flooding. Dam failures can range from
minor to catastrophic. Although dam failures are
very rare, they are not unprecedented. There are
four major causes of dam failures: overtopping
(when water levels in a reservoir rise above the top
of the dam), foundation defects in the dam
structure, piping and seepage failure in the dam
or surrounding rock, and conduit and valve
failure.

Failure of any of these dams would give residents
about seven hours to evacuate. Other major
regional dams could also affect Stockton, but
would have longer warning times. Figure 5-89
shows the dam hazard areas in Stockton.

Likelihood of Future Flooding
The city’s proximity to the Delta, relatively low
elevation, and potential to experience heavy
rains mean that flood will continue to pose a
significant hazard to the community. Climate
change is expected to increase the frequency
and intensity of strong storms that are more likely
to create flooding. Sea level rise is expected to
exacerbate this risk by increasing the height of the
water surface in the Delta, including expanding
the parts of the city that are considered prone to
flood. By 2050, an addition 29,550 residents of
Stockton are expected to be exposed to flooding,
and 55,690 by the end of the century.

Increased frequency and severity of Delta
flooding could have significant impacts on some
of Stockton’s most vulnerable residents.

Approximately 65 percent of the Delta’s
population that could be exposed to the 100-year
flood by 2050 reside in areas with high
concentrations of socially vulnerable residents.

Increases in damaging flood events will cause
greater property damage, public health and
safety concerns, displacement, and loss of life.

As sea levels rise and heavy precipitation
becomes more common, the likelihood of levee
overtopping will increase. Levee breaks could
cause large amounts of salt water from the Bay to
enter the Delta and would have an adverse effect
on Delta water quality and water system
operations. Salt water intrusion could take months
to dissipate, depending on the severity of the
levee break and the degree of intrusion.

Of the ecosystems currently protected by levees
in the Delta region, 73 percent are at risk of
flooding due to levee overtopping resulting from
a combination of sea level rise and storm events.

By 2085, rising sea levels are expected to cause all
critical remaining tidal wetland ecosystems in the
Delta to transition to different plant communities
or drown completely.

ATTACHMENT C - Draft Safety Element (Redline) 965
Figure 5-9
Dam Inundation
ATTACHMENT C - Draft Safety Element (Redline) 966
ATTACHMENT C - Draft Safety Element (Redline) 967
POLICY SAF-2.35
Protect the community from potential flood
events.

Action SAF-2.3A5A
Coordinate with appropriate State, federal, and
local flood control agencies to develop a flood
protection plan for the levee systems protecting
the city that:
■ Identifies the levees protecting the city and
the entities responsible for the operation and
maintenance of the levees.;
■ Determines the flood levels in the waterways
and the level of protection offered by the
existing levees along the waterways.;
■ Identifies a long-term plan to upgrade the
system as necessary to provide at least a 100-
year level of flood protection to the city, and
200-year level of flood protection, where
feasible.;
■ Encourages multi-purpose flood
management projects that, where feasible,
incorporate recreation, resource
conservation, preservation of natural riparian
habitat, and scenic values of the city's
streams, creeks, and lakes.; and
■ Includes provisions for updates to reflect
future State or federally mandated levels of
flood protection.

Action SAF-2.3B5B
Collaborate with State and local flood
management agencies and other interested
parties to develop funding mechanisms to
finance the local share of flood management
responsibilities and maintain cooperative working
relationships with appropriate agencies to
minimize flood hazards and improve safety.

Action SAF-2.3C5C
Require new public and private waterfront
development to be oriented to waterways and
provide setbacks and easements along levees
and channels to provide space for levee
widening, flood fighting, roadway and
maintenance access, open space and trail
amenities, and appropriate landscaping.

Action SAF-2.35D
For any critical public facility sited within the 100-
year floodplains (as shown ion Figure 5-4) or within
theareas at risk of inundation from sea level rise by
2085 projected sea level(as shown ion Figure 5-8)
inundation zone as shown in Figures XX,, the
responsible agency or department shall
implement site or building flood protection
improvement methods to ensure operability and
minimize damage.

Action SAF-2.3D
Prepare and maintain a map of evacuation routes
for major flood events.

Action SAF-2.35FE
Work with residents experiencing insecure
housing, with low incomes, with access and
functional needs, and/or living in mapped flood
hazard zones and levee protection areas (as
identified ion Figure XX5-4) to connect with local,
regional, state, and federal initiatives to improve
housing resiliency.

Action SAF-2.3G5F
Work with residents experiencing insecure
housing, with low incomes, with access and
functional needs, and/or living in mapped flood
hazard zones and levee protection areas (as
identified ion Figure XX5-4) to insure their property
and receive recovery resources in the aftermath
of a flood.

Action SAF-2.3H5G
Work with residents experiencing insecure
housing, with low incomes, with access and
functional needs, and/or living in mapped flood
hazard zones (as identified in Figure XX5-4) to
obtain relocation assistance and/or obtain
affordable housing outside of flood hazard zones.

ATTACHMENT C - Draft Safety Element (Redline) 968
.

Identify
POLICY SAF-2.46
Minimize risks to the community from flooding
through appropriate siting and protection of
structures and occupants.

Action SAF-2.4A6A
Regulate new urban development in
accordance with State requirements for 200-year
level of flood protection and federal requirements
for 100-year level of flood protection.

Action SAF-2.46B
Require flood-proofing of new and expanded
buildings and structures in the mapped flood
hazard zones and levee protection areas shown
ion Figure XX5-4. Flood-proofing methods will be
determined on a project-by-project basis, and
may include, but not be limited to:
(a) Anchoring to prevent flotation, collapse, or
lateral movement.
(b) Using flood-resistant construction materials.
(c) Employing construction methods and
practices that minimize flood damage.
(d) Elevating building pads and habitable
building floors above the base flood elevation plus
required freeboard.
(e) Providing adequate venting to allow for
equalization of hydrostatic flood forces.

Action SAF-2.4C6CB
Investigate and implement when feasible
mitigation measures that offer 200-year level of
flood protection for existing urban development in
flood-prone areas.

Action SAF-2.4D6DC
Preserve floodways and floodplains for non-urban
uses to maintain existing flood carrying
capacities, except when mitigated in
conformance with the City's floodplain
management program.

Action SAF-2.4E6ED
Consider the best available flood and sea-level
hazard information and mapping from regional,
State, and federal agencies to inform land use
and public facilities investment decisions.

OTHER HAZARDS OF CONCERN
Drought
A drought is an extended period when
precipitation levels are well below normal andbut
is a normal part of the climate cycle. Drought may
cause losses to agriculture; affect domestic water
supply, energy production, public health, and
wildlife; or contribute to wildfire. Like most of
California and the western United States, Stockton
chronically experiences drought cycles.

Drought impacts the city’s water supply,
whichand, in severe instances, ultimately makes
less water available for people, businesses, and
natural systems. Both the City of Stockton
Municipal Utilities District (COSMUD) and the
California Water Service Company Stockton
District (Cal Water) supply water to different parts
of the community. Stockton’s primary water
sources during base years are surface water from
several local and regional rivers (including the
Calaveras, Stanislaus, and San Joaquin Rivers)
and the East San Joaquin Subbasin of the San
Joaquin Valley Groundwater Basin. As of August
2023, Stockton and the location of its water
sources were not in drought conditions, although
San Joaquin County was in a state of extreme to
exceptional drought—(the highest level of
drought recognized by the US Drought Monitor) —
as recently as December 2022. COSMUDThe City
Utilities District and Cal California Water both
project that they will have an adequate water
supply through 2045 for normal years, single dry
years, and multiple dry years water supply
conditions.

ATTACHMENT C - Draft Safety Element (Redline) 969
Although droughts are a regular feature of
California’s climate, scientists expect that climate
change will lead to more frequent and intense
droughts statewide. Climate change is expected
to cause more precipitation to fall as rain instead
of snow, and the snow that does fall will melt
earlier, reducing the Sierra Nevada spring
snowpack by as much as 70 to 90 percent. How
much snowpack will be lost depends in part on
future precipitation patterns, the projections for
which remain uncertain. However, even under
wetter climate projections, the loss of snowpack
would pose potential water shortage issues and
exacerbate drought conditions.

Increasing frequency and severity of droughts will
likely have negative impacts on Delta agriculture.

Drought, —especially in combination with other
climate change stressors and hazards, such as
extreme heat, —may reduce crop productivity.

Reductions in agricultural productivity would
disproportionately impact low-income
agricultural laborers, who would be more likely to
lose their jobs first and who tend to have fewer
resources to cope with drought and other climate
change impacts. Drought and other climate
change impacts may exacerbate existing water
affordability issues. Increased frequency of
droughts may also contribute to harmful algal
blooms and degrade raw water quality, requiring
drinking water treatment system upgrades.

Fire Hazards
Fire hazards include both wildfires and urban fires.

Though the city is vulnerable to both kinds of fire
threats, the climatic and vegetative conditions in
Stockton are generally not conducive to the
spread or development of wildfires. Fuel, weather,
and topography are primary factors that affectin
how wildland fires spread. Wildfire risk in San
Joaquin County is generally low. Fire protection in
Stockton is provided by the SFD, as described in
Section 2.1, Public Safety.

CAL FIRE (California Department of Forestry and
Fire Protection) establishes fire hazard severity
zones (FHSZ), designating each as moderate,
high, or very high severity. There are no FHSZs in or
immediately next to the city. However, there are
high and very high FHSZs in neighboring counties,
and smoke from fires in these areas could impact
local air quality.

The wildland-urban interface (WUI) is an area
where buildings and infrastructure (e.g., cell
towers, schools, water supply facilities) mix with
areas of flammable wildland vegetation. There
are two types of WUI: interface (areas where
housing and other development borders wildland
areas) and intermix (where development is
mingled and interspersed with wildland areas).

Additionally, the , influence zone refers to an area
made up of wildfire-susceptible vegetation up to

1.5 miles from the WUI, and the threat zone is an
additional strip of vegetation modified to reduce
flame heights and radiant heat. Figure 5-10 shows
the WUI zones around Stockton.

Although the wildfire risk in Stockton is low, there is a risk of structural fires. Structural fires are often due to faulty wiring or mechanical equipment and
combustible construction materials. The absence
of fire alarms and fire sprinkler systems are often
conditions that exacerbate the damages
associated with a structural fire. Structural fires are largely from human accidents, although some
fires may be started deliberately (arson). Older
buildings that lack modern fire safety features
may face greater risk of damage from fires.

Greater frequency of regional fires can create
recurrent air quality degradation, leading to
respiratory health effects. Wildfire smoke consists
of a mix of gases and fine particulate matter from
burning vegetation and materials. The pollutant of
most concern from wildfire smoke is fine
particulate matter (PM2.5). PM2.5 from wildfire
smoke is damaging to human health due to its
ability to deeply penetrate lung tissue and affect
the heart and circulatory system. Although wildfire
smoke presents a health risk to everyone, sensitive
groups may experience more severe acute and
chronic symptoms from exposure to wildfire
smoke, such as children, older adults, people with
ATTACHMENT C - Draft Safety Element (Redline) 970
chronic respiratory or cardiovascular disease, or
people experiencing low socioeconomic status.

Air quality in Stockton has been impacted by
major recent wildfires, most notably the Lightning
Complex Fire of 2020, Creek Fire of 2020, and
Camp Fire of 2018. All of these fires resulted in
elevated levels of particulate matter in San
Joaquin County for several days.

Warmer weather, reduced snowpack, and earlier
snowmelt attributable to climate change are
expected to increase wildfire risk due to increased
fuel and ignition risks. Although Stockton itself
faces a low wildfire risk, wildfire risk is generally
projected to increase across Northern California,
and wildfires are expected to become larger and
harder to control, so Stockton will likely continue to
be subject to wildfire smoke. Regional wildfires
may also interfere with the city’s power supply via
Public Safety Power Shutoff events or damage to
electricity transmission infrastructure.

Agricultural and Ecosystem Pests
Though there is limited agricultural land and open
space within Stockton itself, San Joaquin County
contains significant farmland, including prime
farmland and farmland of statewide importance,
as well as extensive wetlands and levee systems.

Therefore, the county is vulnerable to agricultural
and ecosystem pests. Pests that have been of
particular concern in San Joaquin County
recently include nutria and Russian knapweed.

Agricultural and ecosystem pests will likely
maintain a presence in San Joaquin County,
though their activity can be at least partially
managed via the County’s pest-control initiatives.

Pest activity is likely to increase because higher
temperatures caused by global warming allow
insects to reproduce more rapidly and increase
the activity window for pests and diseases. Row
crops can be affected by fungal pathogens and
invasive disease vectors as temperatures continue
to rise, affecting the quality and viability of crops.

ATTACHMENT C - Draft Safety Element (Redline) 971
FIGURE 5-10
Wildland-Urban Interface Zones
ATTACHMENT C - Draft Safety Element (Redline) 972
ATTACHMENT C - Draft Safety Element (Redline) 973
Extreme Heat
California’s Cal-Adapt database of climate
change effects defines extreme heat as
temperatures that are hotter than 98 percent of
the historical high temperatures for the area, as
measured between April and October of 1961 to
1990. Days that reach this level are called extreme
heat days. In Stockton, the extreme heat threshold
is 102.3°F. An event with five extreme heat days in
a row is called a heat wave. Extreme heat also
takes the form of warm nights when temperatures
do not cool down overnight to provide
community members with relief from the hot days.

This can also cause higher electricity use during
the nighttime hours as community residents use
more energy to cool homes. In Stockton, a warm
night occurs when the temperature stays above
66°F.

Health impacts are the primary concern with this
hazard, though economic impacts are also an
issue. People exposed to extreme heat can suffer
heat-related illnesses such as heat cramps, heat
exhaustion, and (most severely) heat stroke. The
elderly, individuals below the poverty level,
outdoor workers, immigrant communities, and
those experiencing homelessness are among the
most vulnerable to extreme heat. Very high
temperatures can harm plants, animals, and
natural ecosystems that are not well adapted to
them. The heat causes more demand for
electricity (usually to run air conditioning units),
and, in combination with the stress on the power
lines, may lead to brownouts and blackouts.

Extreme heat tends to occur on an annual basis
and is likely to continue occurring annually.

According to California’s climate change
projections, the number of extreme heat days in
Stockton is expected to rise from a historical
annual average of 4 to 23 by the middle of the
century (2035 to 2064) and 44 by the end of the
century (2070 to 2099), with occasional years
experiencing many more extreme heat days. The
number of warm nights in Stockton is projected to
increase from an annual average of 4 historically
to 27 by midcentury and 66 by the end of the
century.

Severe Weather
Severe weather is generally any destructive
weather event, but usually occurs in Stockton as
strong storms andor heavy fog. Severe weather is
usually caused by intense storm systems, although
strong winds can occur without a storm. The types
of dangers posed by severe weather vary widely
and may include injuries or deaths, damage to
buildings and structures, fallen trees, roads and
railways blocked by debris, and fires sparked by
lightning. Severe weather can produce high winds
and lightning that can damage structures and
cause power outages. Lightning from these storms
can ignite structure fires that can cause damage
to buildings and endanger people. Objects such
as vehicles, unprotected structures (e.g., bus
stops, car ports), fences, telephone poles, or trees
can also be struck directly by lightning, which may
result in an explosion or fire.

Severe weather is an annual occurrence in San
Joaquin County. However, actual damage
associated with the primary effects of severe
weather have been limited. Climate change is
expected to cause an increase in intense rainfall
and strong storm systems. This means that
Stockton could see more intense weather resulting
from these storms in the coming years and
decades, although such an increase may not
affect all forms of severe weather. Though
average annual rainfall may increase only slightly,
climate change is expected to cause an increase
in the number of years with intense levels of
precipitation. Heavy rainfall can increase the
frequency and severity of other hazards, including
flooding. The incidence of winter fog has
decreased dramatically over the past three
decades, due in part to declines in winter chill
caused by climate change.

Human Health Hazards
Human health hazards are bacteria, viruses,
parasites, and other organisms that are spread by
ATTACHMENT C - Draft Safety Element (Redline) 974
insects, animals, and other pest organisms and
can cause diseases and illness in people. Some of
these diseases may cause only mild
inconvenience, but others are potentially life
threatening. These diseases can be and often are
carried by animals, such as mice and rats, ticks,
and mosquitos. Warmer temperatures and high
levels of precipitation can lead to increased
populations of disease-carrying animals, creating
a greater risk of disease and increased rates of
infection. Populations most vulnerable to human
health hazards are those who spend a
disproportionate amount of time outdoors, those
with fragile immune systems or existing illnesses,
and those who may live in sub-standard housing
or not have access to health insurance and
medical care.

Human health hazards of various scales and levels
of severity are likely to continue to occur in the
future. Climate change is projected to contribute
to increases in average temperature and
changes in precipitation patterns that favor large
precipitation events and associated flooding.

These changes in climatic changes promote the
reproduction and speed the growth of many pest
species, leading to higher populations of potential
disease vectors. Overall risk of human health
hazards is thus expected to increase.

POLICY SAF-2.7CH-5.21
Accommodate a changing climate through
adaptation, mitigation, and resiliency planning
and projects.

Action SAF-2.7CH-5.21A
Create a city-specific Local Hazard Mitigation
Plan and incorporate this plan into the Safety
Element. Begin creation of the plan within one
year.

Action SAF-2.7CH-5.2B
Conduct regular updates to the Upon the next
revision of the City’s Local Hazard Mitigation Plan,
conduct a comprehensive climate change
vulnerability assessment and associated to inform
the development of adaptation and resilience
policies and strategies, and incorporate them into
the Safety Element, in accordance with SB 379.

Action CH-5.1B
Maintain and implement the City of Stockton
Climate Action Plan (CAP) and update the CAP
to include the following:
■ Updated communitywide GHG emissions
inventory;
■ 2030 GHG emissions reduction target,
consistent with SB 32;
■ Estimated 2030 GHG emissions reduction
benefits of State programs;
■ Summary of the City’s progress toward the
2020 local GHG emissions reduction target;
■ New and/or revised GHG reduction
strategies that, when quantified, achieve the
2030 reduction target and continue emission
reductions beyond 2030; and
■ New or updated implementation plan for the
CAP.

Action SAF-2.7CH-5.21C
Continue to participate in regional climate
change vulnerability assessment, adaptation
planning, and resilience efforts. Accommodate a
changing climate through adaptation and
resiliency planning and projects, including
through pursuit of grant funding for
implementation of resilience efforts.

Action SAF-2.7CH-5.2D
Continue to identify opportunities to expand the
City’s organization capacity to respond to the
effects of climate change.

Action SAF-2.7CH-5.2E
Establish a network of equitably located
community resilience centers that would offer
refuge and backup power for community
members in the event of a large-scale disaster or
extreme heat event, including as a last resort
shelter-in-place location.

ATTACHMENT C - Draft Safety Element (Redline) 975
Action SAF-2.7CH-5.2F
Install backup power and water resources at
critical City facilities, emergency shelters, and
cooling centers in case of power and water
outages.

Action SAF-2.7CH-5.2G
Work with regional and local partners to increase
the number of solar and battery systems installed
at homes, businesses, and City facilities.
communityAction SAF-2.7CH-5.2H
Coordinate with transit providers to identify and
advertise ways for individuals with restricted
mobility to reach resilience centers, cooling
centers, and alternate care sites.

Action SAF-2.7CH-5.2I
Conduct targeted public outreach and
education about cooling strategies for those
populations sensitive to higher temperatures,
especially seniors and those who work outdoors,
lack permanent shelter, and lack air conditioning.

Action SAF-2.7CH-5.2J
Partner with local community-based organizations
to pursue grant funding opportunities to provide
financial assistance or reduced costs for energy
retrofits, cooling, ventilation, or other adaptation
measures to help protect low-income households,
senior citizens, and other vulnerable persons
against extreme heat events.

Action SAF-2.7CH-5.2K
DeployPlant trees and installation more of green
space in order toto provide shade and combat
high heat, with a focus on neighborhoods that are
most vulnerable to heat.

Action SAF-2.7CH-5.2L
Target residents living within the wildland urban
interface (as shown ion Figure XX5-10) with
information about the dangers of living in a
wildfire hazard area and strategies for reducing
wildfire risk.

Action SAF-2.7CH-5.2M
Target residents living within the wildland-urban
interface (as shown ion Figure XX) with information
about the dangers of living in a wildfire hazard
area and strategies for reducing wildfire risk.

Action SAF-2.7CH-5.2NM
Work with existing property owners within wildlandurban interface areas to establish and maintain fire breaks and defensible space, vegetation
clearance, emergency access roads, water
supply and fire flow, signage, and firefighting
infrastructure that meets current adopted State,
County, or community fire safety standards.

Action SAF-2.7CH-5.2ON
Discourage new development within the
wildland-urban interface (as shown ion Figure XX5-
10). If new development does occur within these
areas, require any construction of buildings or
infrastructure to incorporate fire-safe design
features that meet the State Fire Safe Regulations
and Fire Hazard Reduction Around Buildings and
Structures Regulation for road ingress and egress,
fire equipment access, and adequate water
supply.

Action SAF-2.7CH-5.2PO
Expand and maintain the City’s network of public
drinking fountains and water dispensers.

Action SAF-2.7CH-5.2QP
Coordinate with local medical providers and
Public Health Services of San Joaquin County to
ensure low-cost medical and emergency medical
services are available to all residents in the city.

Action SAF-2.7CH-52RQ
Work with San Joaquin County and the San
Joaquin County Mosquito and Vector Control
District to monitor the status of mosquitoes and
ATTACHMENT C - Draft Safety Element (Redline) 976
agricultural and ecosystem pests and contribute
resources to pest management initiatives as
feasible.

Earthquakes are also among the threats to levee
and dam stability. According to the Federal
Emergency Management Agency (FEMA), most
of the levees in the Planning Area meet minimum
standards, but levees are subject to structural
failure, erosion, and damage from vegetation
and rodents, as well as earthquakes and floods
(see next section). Given these possible risks, the
California Department of Water Resources (DWR)
provides Levee Flood Protection Zone (LFPZ) maps
to increase awareness of flood risks from levee
failure. These zones, shown in Figure 5-2, estimate
the maximum area that may be flooded from
failure of a State or federal levee.

ATTACHMENT C - Draft Safety Element (Redline) 977
As shown in Figure 5-3, Stockton is also within the
inundation areas of three major dams:
■ New Hogan Dam on the Calaveras River
■ New Melones Dam on the Stanislaus River
■ Camanche Dam on the Mokelumne River
Failure of any of these dams (each is about 30
miles from the city) would give residents about 7
hours to evacuate. Other major regional dams
could also affect Stockton, but would have longer
lead times. The California Division of Safety of
Dams (DSOD) inspects each dam on an annual
basis to ensure the dam is safe and performing as
intended. The dams have also been assessed for
seismic stability and are projected to withstand
the maximum credible earthquake.

POLICY SAF-2.1
Ensure that community members are
adequately prepared for natural disasters and
emergencies through education and training.

Action SAF-2.1A
Develop neighborhood watch and emergency
support groups to be trained and put into action
in the event of an emergency in support of
government staff.

Action SAF-2.1B
Inform the public about the specific risks of living
in flood-prone areas, and provide residents
instructional information on how to take steps to
reduce their exposure to flood damages.

POLICY SAF-2.2
Prepare sufficiently for major events to enable
quick and effective response.

Action SAF-2.2A
Require new development to provide adequate
access for emergency vehicles and evacuation
routes, including by designing roadway systems to
provide multiple escape routes in the event of a
levee failure.

ATTACHMENT C - Draft Safety Element (Redline) 978
Figure 5-2
Levee Flood Protection Zones
ATTACHMENT C - Draft Safety Element (Redline) 979
Figure 5-3
Dam Inundation Areas
ATTACHMENT C - Draft Safety Element (Redline) 980
Action SAF-2.2B
Formulate, review, periodically update, and make
available to the public emergency management
plans for the safe evacuation of people from
areas subject to inundation from levee and dam
failure.

Action SAF-2.2C
Require new critical facilities, including hospitals,
emergency operations centers, communications
facilities, fire stations, and police stations, to be
located, designed, and constructed to avoid or
mitigate potential risks and ensure functional
operation during flood events (i.e., avoid locating
in the 100-year and 200-year floodplains), seismic
and geological events, fires, and explosions.

Action SAF-2.2D
Continue to work with San Joaquin County, the
County Office of Emergency Services, other cities
in the region, and disaster agencies to coordinate
disaster and emergency preparedness planning.

PARTS OF STOCKTON ARE

AT RISK FROM FLOODING
Reclamation of Delta land over many years has
reduced available floodplain and increased
flooding potential, especially along the western
boundary of the community. Land along local
waterways is protected by levees, but
earthquakes or overtopping due to major storms
can cause levees to fail. Stockton has historically
faced flooding, especially during the 1950’s:
■ 1950: Almost 14,000 acres of the Delta
flooded, washing out the Southern Pacific
Railroad tracks and State Highway 50 west of
Stockton.
■ 1955 -1956: Extensive flooding occurred
along the eastern tributaries of the San
Joaquin River.
■ 1958: Approximately 250,000 acres from
Stockton to Fresno along the San Joaquin
River flooded, in part due to prolonged and
unusually voluminous snowmelt from the
Sierra Nevada.

Since 1998, flood risks have been reduced
significantly through the Locally Constructed
Flood Control Project by the San Joaquin Area
Flood Control Agency, which includes flood
protection facilities on Bear Creek, Little Bear
Creek, Pixley Slough, Upper Mosher Creek, the
Mosher Diversion, Mosher Slough, the Calaveras
River, the Stockton Diverting Canal, and Mormon
Slough. Figure 5-4 shows levees in the Stockton
area and the boundaries of the local reclamation
districts that are responsible for maintaining levees
and other flood protection facilities.

The Federal Emergency Management Agency
maps areas at risk of inundation from a 100-year
flood, which has a 1 percent chance of occurring
in any year, and a 500-year flood, where the risk
of flooding is 0.2 percent annually, along with
areas protected by levees, as shown in Figure 5-5.

ATTACHMENT C - Draft Safety Element (Redline) 981
In Figure 5-6, these flood hazard zones are overlaid
on the General Plan land use map to illustrate how
planned land uses are affected by flood risk. State
Senate Bill 5, adopted in 2007, also requires
Central Valley cities to protect development from
a 200-year flood, which has a 0.5 percent
probability of occurring in any year. Areas that
would be subject to flooding levels of 3 feet or
more during a 200-year storm are shown on Figure
5-7. The 2012 Central Valley Flood Protection Plan
provides additional guidance for regional flood
protection, including suggestions for
improvements to levees along the San Joaquin
River and tributary channels in and around
Stockton that are part of the State Plan of Flood
Control Facilities, which are shown in Figure 5-8.

Areas already protected by those facilities are
shown in Figure 5-9, and Figure 5-10 shows
waterway and land areas that can help
accommodate flood and storm waters.

ATTACHMENT C - Draft Safety Element (Redline) 982
Figure 5-4
Levees and Reclamation Districts
ATTACHMENT C - Draft Safety Element (Redline) 983
Figure 5-5 FEMA Flood Zones
ATTACHMENT C - Draft Safety Element (Redline) 984
POLICY SAF-2.3
Protect the community from potential flood
events.

Action SAF-2.3A
Coordinate with appropriate State, federal, and
local flood control agencies to develop a flood
protection plan for the levee systems protecting
the city that:
■ Identifies the levees protecting the city and
the entities responsible for the operation and
maintenance of the levees;
■ Determines the flood levels in the waterways
and the level of protection offered by the
existing levees along the waterways;
■ Identifies a long-term plan to upgrade the
system as necessary to provide at least a 100-
year level of flood protection to the city, and
200-year level of flood protection, where
feasible;
■ Encourages multi-purpose flood
management projects that, where feasible,
incorporate recreation, resource
conservation, preservation of natural riparian
habitat, and scenic values of the city's
streams, creeks, and lakes; and
■ Includes provisions for updates to reflect
future State or federally mandated levels of
flood protection.

Action SAF-2.3B
Collaborate with State and local flood
management agencies and other interested
parties to develop funding mechanisms to
finance the local share of flood management
responsibilities, and maintain cooperative working
relationships with appropriate agencies to
minimize flood hazards and improve safety.

Action SAF-2.3C
Require new public and private waterfront
development to be oriented to waterways and
provide setbacks and easements along levees
and channels to provide space for levee
widening, flood fighting, roadway and
maintenance access, open space and trail
amenities, and appropriate landscaping.

Action SAF-2.3D
Prepare and maintain a map of evacuation
routes for major flood events.

POLICY SAF-2.4
Minimize risks to the community from flooding
through appropriate siting and protection of
structures and occupants.

Action SAF-2.4A
Regulate new urban development in
accordance with State requirements for 200-year
level of flood protection and federal requirements
for 100-year level of flood protection.

Action SAF-2.4B
Investigate and implement when feasible
mitigation measures that offer 200-year level of
flood protection for existing urban development in
flood-prone areas.

Action SAF-2.4C
Preserve floodways and floodplains for non-urban
uses to maintain existing flood carrying capacities,
except when mitigated in conformance with the
City's floodplain management program.

ATTACHMENT C - Draft Safety Element (Redline) 985
Action SAF-2.4D
Consider the best available flood hazard
information and mapping from regional, State,
and federal agencies to inform land use and
public facilities investment decisions.

ATTACHMENT C - Draft Safety Element (Redline) 986
Figure 5-6
Planned Land Uses in Flood Hazard Zones
ATTACHMENT C - Draft Safety Element (Redline) 987
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ATTACHMENT C - Draft Safety Element (Redline) 988
Figure 5-7
200-Year Storm Flood Depths
ATTACHMENT C - Draft Safety Element (Redline) 989
Figure 5-8
State Plan of Flood Control Facilities in the Stockton Area ATTACHMENT C - Draft Safety Element (Redline) 990
Figure 5-9
Areas Protected by State Plan of Flood Control Facilities ATTACHMENT C - Draft Safety Element (Redline) 991
ATTACHMENT C - Draft Safety Element (Redline) 992
Figure 5-10
Floodwater Accommodations
ATTACHMENT C - Draft Safety Element (Redline) 993

NOISE CAN DETRACT

FROM QUALITY OF LIFE
Noise can affect the way people live and work.

Some types of noise are only short-term irritants,
like the pounding of a jackhammer or the whine
of a leaf blower. These mobile sources can
generally be controlled through the City’s noise
ordinance, but fixed sources such as roads, the
railroad, and the airport instead require the City to
ensure that land uses, especially "sensitive
receptors" like homes and schools, do not bring
people too close to noise, unless noise reduction
measures like thicker walls and windows are
determined to be acceptable.

State law requires general plans to use the
Community Noise Equivalent Level (CNEL) or the
Day/Night Average Sound Level (Ldn) to describe
the community noise environment (in decibels,
"dBA") and its effects on the population. The City
of Stockton land use compatibility standards for
noise are shown in Table 5-1, and the future 2040
roadway noise conditions are depicted
graphically on Figure 5-11.

POLICY SAF-2.58
Protect the community from health hazards and
annoyance associated with excessive noise
levels.

Action SAF-2.5A8A
Prohibit new commercial, industrial, or other noisegenerating land uses adjacent to existing sensitive noise receptors such as residential uses, schools,
health care facilities, libraries, and churches if
noise levels are expected to exceed 70 dBA
Community Noise Equivalent (CNEL) (decibels on
A-weighted scale CNEL) when measured at the
property line of the noise sensitive land use.

Action SAF-2.5B8B
Require projects that would locate noise sensitive
land uses where the projected ambient noise level
is greater than the "normally acceptable" noise
level indicated on Table 5-1 to provide an
acoustical analysis that shall:
■ Be the responsibility of the applicant;
■ Be prepared by a qualified person
experienced in the fields of environmental
noise assessment and architectural
acoustics;
■ Include representative noise level
measurements with sufficient sampling
periods and locations to adequately
describe local conditions;
■ Estimate existing and projected (20-year)
noise levels in terms of Ldn/CNEL and
compare the levels to the adopted noise
policies and actions in this General Plan;
■ Recommend appropriate mitigation to
achieve compatibility with the adopted
noise policies and standards;
■ Where the noise source in question consists of
intermittent single events, address the effects
of maximum noise levels in sleeping rooms in
terms of possible sleep disturbance;
■ Estimate noise exposure after the prescribed
mitigation measures have been
implemented;
■ If the project does not comply with the
adopted standards and policies of this
General Plan, provide acoustical information
for a statement of overriding considerations
for the project; and
■ Describe a post-project assessment program,
which could be used to evaluate the
effectiveness of the proposed mitigation
measures.

Action SAF-2.5C8C
Require noise produced by commercial uses to
not exceed 75 dB Ldn/CNEL at the nearest
property line.

Action SAF-2.5D8D
Grant exceptions to the noise standards for
commercial and industrial uses only if a recorded
noise easement is conveyed by the affected
property owners.

ATTACHMENT C - Draft Safety Element (Redline) 994
Action SAF-2.5E8E
Require all new habitable structures to be set
back from railroad tracks to protect residents from
noise, vibration, and safety impacts.

ATTACHMENT C - Draft Safety Element (Redline) 995
Table 5-1: Maximum Allowable Noise Exposure by Land Use

LAND USE TYPE

NOISE LEVEL, LDN (DBA)
0-55 56-60 61-65 66-70 71-75 75-80 >81
Residential
Urban Residential Infill
Hotels, Motels
Schools, Libraries, Churches,
Hospitals, Extended Care
Facilities
Auditoriums, Concert Halls,
Amphitheaters
Sports Arenas, Outdoor
Spectator Sports
Playgrounds, Neighborhood
Parks
Golf Courses, Riding Stables,
Water Recreation, Cemeteries
Office Buildings, Business
Commercial and Professional
Mining, Industrial,
Manufacturing, Utilities,
Agriculture
Normally Acceptable. Specified land use is satisfactory based on the assumption that any buildings involved are of normal, conventional construction, without any special noise insulation requirements.

Conditionally Acceptable. New construction or development should be undertaken only after a detailed analysis of the noise reduction requirements is made and needed insulation features have been included in the design.

Unacceptable. New construction or development should not be undertaken.

Notes: If existing noise standards are currently exceeded, a proposed project shall not incrementally increase noise levels by more than 3 dBA. Urban residential infill applies to residential uses in the Greater Downtown.

ATTACHMENT C - Draft Safety Element (Redline) 996
Figure 5-11
2040 Roadway Noise Contours
ATTACHMENT C - Draft Safety Element (Redline) 997

HAZARDOUS MATERIALS

NEED TO BE CONTROLLED
State and federal laws regulate the production,
storage, handling, and disposal of hazardous
materials and waste, including industrial wastes,
pesticides, radioactive substances, asbestos, and
combustible fuels. Hazardous materials commonly
used in the home include garden pesticides,
waste oil, paint supplies, car batteries, and pool
chemicals. Limited quantities of household
hazardous waste may be transported to and
dropped off at a recycling center. State and
federal rules require inventory and reporting for
businesses that store more than 55 gallons of
hazardous liquids, 500 pounds of solids, or 200
cubic feet of compressed gases, including plans
for incident prevention and emergency response
and evacuation.

Although hazardous materials are carefully
regulated today, past activities have left some
contaminated sites in Stockton, as well as others
where contamination is suspected and
investigation is underway. Contamination has
resulted from leaking underground storage tanks,
disposal of hazardous materials, and various past
industrial practices. The California Department of
Toxic Substances Control oversees cleanup of
such sites, but the potential for accidents and spills
means that the City also must strive to reduce risks.

POLICY SAF-2.69
Minimize the risk to city residents and property
associated with the transport, distribution, use,
and storage of hazardous materials.

Action SAF-2.6A9A
Restrict transport of hazardous materials within the
city to routes that have been designated for such
transport.

Action SAF-2.6B9B
When appropriate, require new development to
prepare a hazardous materials inventory and/or
prepare Phase I or Phase II hazardous materials
studies, including any required cleanup measures.

Action SAF-2.6C9C
Educate the public regarding about the types of
household hazardous wastes and the proper
methods of for their disposal.

Action SAF-2.79DE
Restrict, to the extent feasible, development of
new hazardous waste storage facilities in within
mapped 100-year flood hazard zones , levee
protection areas, and areas subject to sea level
rise in 2085 (see Figures 5-4XX and XX5-8)rise.

Action SAF-2.79EF
Work with existing handlers of hazardous materials
and the Stockton Fire Department to reduce the
risk of hazardous materials exposures in the event
of flooding.
.

ATTACHMENT C - Draft Safety Element (Redline) 998

EVERYONE HAS A RIGHT

TO CLEAN WATER
Access to safe water is a fundamental human
need for both physical and social health.

Maintaining clean water supplies requires
constant vigilance, significant expenditures, and
sometimes changes in behavior, especially as the
impacts of human activities become more
pervasive.

Water supply, quality, and distribution are vital to
Stockton’s ability to serve its population now and
in the future. Regulatory pressures, droughts, and
saline intrusion affecting groundwater supplies
have already strained the region’s water supplies.

As a result, the City has focused attention on the
availability of existing surface water supplies, and
is cooperating with other agencies in the region to
manage groundwater resources at a sustainable
yield.

Meanwhile, water conservation and efficiency
has become a normal way of life in and around
Stockton. Increasing use of reclaimed (or
"recycled") water can be an effective way to
protect water supply. For example, simple
"graywater" systems can re-use water from
bathroom sinks, showers, bathtubs, and washing
machines to irrigate landscaping. Stockton also is
committed to protecting water quality by
ensuring adequate collection, treatment, and
safe disposal of wastewater.

POLICY SAF-3.1
Secure long-term renewable contracts and
related agreements to ensure that surface water
rights will be available to meet projected
demand.

Action SAF-3.1A
Actively participate in appropriate forums
designed to discuss and solve regional water
supply and quality issues.

POLICY SAF-3.2
Protect the availability of clean potable water
from groundwater sources.

Action SAF-3.2A
Continue to cooperate with San Joaquin County,
Stockton East Water District, and CalWater to
monitor groundwater withdrawals and ensure that
they fall within the target yield for the drinking
water aquifer.

Action SAF-3.2B
Require new development to employ low impact
development (LID) approaches, including:
■ Conserving natural areas and reducing
imperviousness
■ Runoff storage
■ Hydro-modification (to mimic predevelopment runoff volume and flow rate) ■ Reducing trash accumulation
■ Public education and outreach
GOAL SAF-3: CLEAN WATER
Sustain clean and adequate water supplies.

ATTACHMENT C - Draft Safety Element (Redline) 999
POLICY SAF-3.3
Encourage use of recycled ("gray") water for
landscaping irrigation to reduce demand on
potable supplies.

Action SAF-3.3A
Require new development to install non-potable
water infrastructure for irrigation of large
landscaped areas where feasible.

Action SAF-3.3B
Investigate and implement Code amendments to
allow installation of dual plumbing and/or
rainwater capture systems to enable use of
recycled water and/or captured rainwater
generated on-site.

POLICY SAF-3.4
Ensure adequate collection, treatment, and safe
disposal of wastewater.

Action SAF-3.4A
Require all new urban development to be served
by an adequate wastewater collection system to
avoid possible contamination of groundwater
from onsite wastewater disposal systems.

Action SAF-3.4B
Conduct outreach and provide information to
encourage homeowners with septic tanks to
abandon existing septic tanks and hook up to the
City wastewater collection system.

Action SAF-3.4C
Continue to discharge treated effluent to the
Delta and reuse that water through the City’s
California Water Code Section 1485 water right.

ATTACHMENT C - Draft Safety Element (Redline) 1000

AIR QUALITY IN THE VALLEY
HAS TO IMPROVE The San Joaquin Valley Air Basin is burdened by air pollution from a variety of industrial and vehicular
sources. Topographic and meteorological
conditions unique to the area trap these
particulates and generate high levels of
unhealthy air in the region. The San Joaquin Valley
Air Pollution Control District oversees plans and
control measures to address air pollution, primarily
from stationary sources such as industry and
power plants. The District also enforces rules and
regulations to control air pollution and to assess
potential air quality impacts of proposed land
uses. The City of Stockton also plays an important
role in helping to minimize air pollutant emissions,
both through direct regulations on land use
activities and through policies and actions that
help reduce the need to travel long distances and
that promote alternatives to single-occupant
vehicular travel. Goals, policies, and actions that
address air quality are highlighted with the thr
throughout the document.

POLICY SAF-4.1
Reduce air impacts from mobile and stationary
sources of air pollution.

Action SAF-4.1A
Require the construction and operation of new
development to implement best practices that
reduce air pollutant emissions, including:
■ Use of low-emission and well-maintained
construction equipment, with idling time
limits.
■ Development and implementation of a dust
control plan during construction.
■ Installation of electrical service connections
at loading docks, where appropriate.
■ Installation of Energy Star-certified
appliances.
■ Entering into Voluntary Emissions Reduction
Agreements with the San Joaquin Valley Air
Pollution Control District.

Action SAF-4.1B
Use the results of the Health Risk Assessments
required by the California Air Toxics "Hot Spots" Act
to establish appropriate land use buffer zones
around any new sources of toxic air pollutants that
pose substantial health risks.

Action SAF-4.1C
Require the use of electric-powered construction
and landscaping equipment as conditions of
project approval when appropriate.

Action SAF-4.1D
Limit heavy-duty off-road equipment idling time to
meet the California Air Resources Board’s idling
regulations for on-road trucks.

POLICY SAF-4.2
Encourage major employers to participate in a
transportation demand management program
(TDM) that reduces vehicle trips through
approaches such as carpooling, vanpooling,
GOAL SAF-4: CLEAN AIR
Improve local air quality.

ATTACHMENT C - Draft Safety Element (Redline) 1001
shuttles, car-sharing, bike-sharing, end-of-trip
facilities like showers and bicycle parking,
subscription bus service, transit subsidies,
preferential parking, and telecommuting.

ATTACHMENT C - Draft Safety Element (Redline) 1002
Action SAF-4.2A
Provide information and conduct marketing and
outreach to major existing and new employers
about the transportation demand management
(TDM) program facilitated by the San Joaquin
Council of Governments.

POLICY SAF-4.3
Coordinate with the San Joaquin Valley Air
Pollution Control District and non-profit
organizations to promote public awareness on
air quality issues and consistency in air quality
impacts analyses.

Action SAF-4.3A
Distribute educational materials from the San
Joaquin Valley Air Pollution Control District on the
City’s website and at its Permit Center.

Action SAF-4.3B
Coordinate review of development project
applications with the San Joaquin Valley Air
Pollution Control District to ensure that air quality
impacts are consistently identified and mitigated
during CEQA review.

Policy SAF-4.4
Help the public prepare for and avoid the
negative impacts of poor air quality events.

Action SAF-4.4A
Develop and implement a plan to provide
convenient, equitable, accessible clean air
indoor refuges during times when outdoor air
quality is deemed unhealthy.

Action SAF-4.4B
Work with local employers, service agencies, and
health providers to distribute N95 masks during
poor air quality events.

Action SAF-4.4C
Work with residents, community service providers,
and employers to improve residential and
commercial indoor ventilation systems, including
identifying funding assistance for low-income
households to purchase air purifiers, air
conditioners, fans, or similar devices.

POLICY CH-5.1SAF-4.5
Reduce community GHG emissions.

Action SAF-4.5CH-5.1BA
Maintain, implement, and regularly update the
City of Stockton Climate Action Plan (CAP) and
update the CAP to include the following:
■ Updated communitywide GHG emissions
inventory;
■ 2030 and 2045 GHG emissions reduction
targets, consistent with SB 32 and AB 1279;
■ Estimated 2030 and 2045 GHG emissions
reduction benefits of State programs;
■ New and/or revised GHG reduction
strategies that, when quantified, achieve the
2030 and 2045 reduction targets and
continue emission reductions beyond 2045;
and
■ New or updated implementation plan for the
CAP.

POLICY SAF-4.6CH-5.32
Expand opportunities for recycling, re-use of
materials, and waste reduction.

Action CH-5.3SAF-4-62A
Use recycled materials and products for City
projects and operations where economically
feasible, and work with recycling contractors to
encourage businesses to use recycled products in
their manufacturing processes and encourage
consumers to purchase recycled products.

Action SAF-4-6CH-5.32B
Continue to require recycling in private and
public operations, including construction/
demolition debris.

ATTACHMENT C - Draft Safety Element (Redline) 1003
Action SAF-4-6CH-5.32C
Expand educational and outreach efforts to
promote recycling by occupants of multi-family
housing, businesses, and schools.

ATTACHMENT C - Draft Safety Element (Redline) 1004
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ATTACHMENT C - Draft Safety Element (Redline) 1005
STATE OF CALIFORNIA - BUSINESS, CONSUMER SERVICES AND HOUSING AGENCY GAVIN NEWSOM, Governor May 22, 2024
Matt Diaz, Advanced Planning Manager
Community Development Department
City of Stockton,
425 North El Dorado St,
City of Stockton, CA 95202
Dear Matt Diaz,
RE: City of Stockton’s 6th Cycle (2023-2031) Revised Draft Housing Element Thank you for submitting the City of Stockton’s (City) revised draft housing element received for review on April 29, 2024. Pursuant to Government Code section 65585, the California Department of Housing and Community Development (HCD) is reporting the results of its review.

The revised draft meets the statutory requirements that were described in HCD’s review on April 5, 2024. The housing element will substantially comply with State Housing Element Law (Gov. Code, § 65580 et seq) when it is adopted, submitted to, and approved by HCD, in accordance with Government Code section 65585.

Public participation in the development, adoption and implementation of the housing element is essential to effective housing planning. Throughout the housing element process, the City should continue to engage the community, including organizations that represent lower-income and special needs households, by making information regularly available and considering and incorporating comments where appropriate. Please be aware, any revisions to the element must be posted on the local government’s website and to email a link to all individuals and organizations that have previously requested notices relating to the local government’s housing element at least seven days before submitting to HCD.

As a reminder, the City’s 6th cycle housing element was due December 31, 2023. As of today, the City has not completed the housing element process for the 6th cycle. The City’s 5th cycle housing element no longer satisfies statutory requirements. HCD encourages the City to revise the element as described above, adopt, and submit to HCD to regain housing element compliance.

For your information, pursuant to Assembly Bill 1398 (Chapter 358, Statutes of 2021), if a local government does not adopt a compliant housing element within 120 days of the statutory deadline (December 31, 2023), then any rezoning to make prior identified sites available or accommodate the regional housing needs allocation shall be completed no

DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT

DIVISION OF HOUSING POLICY DEVELOPMENT
2020 W. El Camino Avenue, Suite 500
Sacramento, CA 95833
(916) 263-2911 / FAX (916) 263-7453
www.hcd.ca.gov
ATTACHMENT D - HCD Compliance Letter 1006
later than one year from the statutory deadline pursuant to Government Code sections 65583, subdivision (c) and 65583.2, subdivision (c). Otherwise, the local government’s housing element will no longer comply with State Housing Element Law, and HCD may revoke its finding of substantial compliance pursuant to Government Code section 65585, subdivision (i). Please be aware, if the City does not adopt a compliant housing element within one year from the statutory deadline, the element cannot be found in substantial compliance until these rezones are completed.

For your information, pursuant to Government Code section 65583.3, the City must submit an electronic sites inventory with its adopted housing element. The City must utilize standards, forms, and definitions adopted by HCD. Please see HCD’s housing element webpage at https://www.hcd.ca.gov/planning-and-communitydevelopment/housing-elements for a copy of the form and instructions. The City can reach out to HCD at [email protected] for technical assistance.

Several federal, state, and regional funding programs consider housing element compliance as an eligibility or ranking criteria. For example, the CalTrans Senate Bill (SB) 1 Sustainable Communities grant, Affordable Housing and Sustainable Communities programs, and the Permanent Local Housing Allocation consider housing element compliance and/or annual reporting requirements pursuant to Government Code section 65400. With a compliant housing element, the City will meet housing element requirements for these and other funding sources.

For your information, some general plan element updates are triggered by housing element adoption. HCD reminds the City to consider timing provisions and welcomes the opportunity to provide assistance. For information, please see the Technical Advisories issued by the Governor’s Office of Planning and Research at:
https://www.opr.ca.gov/planning/general-plan/guidelines.html.

HCD appreciates the hard work and commitment you and your staff provided in the preparation of the City’s housing element and looks forward to receiving the City’s adopted housing element. If HCD can provide assistance, please contact Irvin Saldana, of our staff, at [email protected].

Sincerely,
Paul McDougall
Senior Program Manager
ATTACHMENT D - HCD Compliance Letter 1007
ResolutionNo.2O24-Q6-13-Q5Q1

STOCKTON PLANNING COMMISSION

RESOLUTION RECOMMENDING THE CITY COUNCIL ADOPT A GENERAL PLAN AMENDMENT TO APPROVE THE 2023-2031 HOUSING ELEMENT AND UPDATETHE

SAFETY ELEMENT TO COMPLY WITH STATE LAW
California Government Code section 65580 mandates that local governments must adequately plan to meet the existing and projected housing needs of all economic segments of the community as set forth in the goals in its adopted General Plan; and The Envision Stockton 2040 General Plan was adopted on December 4, 2018, containing four chapters, each of which identify goals, policies, and implementation programs to guide future land use, development, and environmental protection decisions.

The Housing and Safety Elements of the Envision Stockton 2040 General Plan identify goals, policies, and implementation programs related to housing and avoiding natural and manmade hazards; and
The Housing Element must comply with California Government Code section 65580, and evaluate the appropriateness and effectiveness of its housing goals, objectives, and policies in attaining the City's State and regional housing on an eight-year basis; and
On May 22, 2024, the City received a letter from the California Department of Housing and Community Development (HCD) indicating the City's revised Housing Element was in statutory compliance with State housing law. HCD is the approving authority for the state on housing elements; and
The Safety Element must comply with Assembly Bills 747 and 1409 (AB 747 and AB 1409) that aim to ensure that local agencies adequately address the need for sufficient evacuation routes during a full-scale emergency. AB 1409 expands on this, requiring the General Plan to consider evacuation locations in addition to routes. California adopted AB 747 to enhance safety measures, which mandates that the Safety Element of the General Plan be reviewed and updated to identify evacuation routes and their capacity, safety, and viability under various emergency scenarios. This update must be completed in conjunction with the Housing Element Update and repeated every eight years; and Staff recommends that the Planning Commission forward a recommendation to the City Council to adopt a General Plan Amendment to approve the City of Stockton 2023-2031 Housing Element and update the Safety Element to comply with State law; and
On June 13, 2024, the Planning Commission held a duly noticed public hearing, ATTACHMENT E - Approved Resolution 1008
pursuant to Stockton Municipal Code (SMC) chapter 16.88, at which all times all interested parties had the opportunity to be heard; now, therefore;

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

1. The foregoing recitals are true and correct and incorporated by reference.

2. To forward a recommendation to the City Council to adopt a General Plan Amendment to incorporate the 2023-2031 Housing Element and revise the Safety Element for consistency with State law, based on the following findings per SMC section 16.116.050 for Amendments to the General Plan:
a. The proposed amendment updates existing and incorporates new policies and programs that are consistent with and support General Plan Goals CH-2 Restored Communities and CH-4 Affordable Housing, and Policies LU-2.2, CH-2.2, and CH-4.1 and would not create any inconsistencies with the City's Development Code. The proposed Housing Element has been updated in conformity with the provisions of State Law requirements of California Government Code section 65588 as evidenced by the May 22, 2024, conditional approval letter from the Department of Housing and Community Development. The Safety Element was circulated to local and regional agencies responsible for managing safety in the region and was also reviewed by the City's Engineering, Fire, and Police departments. b. The Housing Element is needed to comply with State Law to identify current and future housing needs and identify actions the City can take to accommodate those needs. The Element establishes appropriate goals, objectives, and policies to address such issues as adequate sites, affordability, governmental constraints, preservation of housing and neighborhoods, housing accessibility, and energy conservation.

The revised Safety Element is also required by State Law to identify potential hazards to the City and its residents and identify actions the City could take to minimize or mitigate those impacts. Like the Housing Element, the Safety Element establishes appropriate goals, objectives, and policies to identify likely hazards (environmental and man-made) and identify resources and service that will provide timely assistance in the event of those an emergency.

These elements are vital for the City in addressing sufficient housing and emergency management systems. As they are needed to maintain services to residents, the proposed Housing Element and revised Safety Element will not endanger, jeopardize, or otherwise constitute a hazard to the public convenience, health, interest, safety, or general welfare of persons residing or working in the City.

ATTACHMENT E - Approved Resolution 1009
c. That no further environmental review is required per California Environmental Quality Act (CEQA) Guidelines section 15183 (Consistency with a Community Plan or General Plan). Changes to Housing and Safety Elements are required by State law and provide additional information to reaffirm and clarify objectives, but do not alter land use designations, zoning, or development intensity, or result in an indirect or direct physical change to the environment.

Therefore, the changes are consistent with the General Plan and General Plan Environmental Impact Report (EIR) provided under section 15183, and no further environmental review is required.

3. The Planning Commission recommends the City Council adopt a General Plan amendment to approve the 2023-2031 Housing Element as illustrated in Exhibit 1 and update the Safety Element as illustrated in Exhibit 2, based on the findings and evidence detailed above, incorporated by reference.

PASSED, APPROVED AND ADOPTED: __ ..c.,.Ju=n"-"e_1'"""3""'-=20.C....C2"'--'4 __ CHAEL McDOWELL, SECRETARY
City of Stockton Planning Commission

TERRYHLJL,CHAI R
City of Stockton Planning Commission
ATTACHMENT E - Approved Resolution 1010
Resolution No.

STOCKTON CITY COUNCIL
RESOLUTION AMENDING THE GENERAL PLAN TO ADOPT THE 2023-2031

HOUSING ELEMENT AND REVISE THE SAFETY ELEMENT TO COMPLY WITH

STATE LAW
California Government Code section 65580 mandates that local governments must adequately plan to meet the existing and projected housing needs of all economic segments of the community as set forth in the goals in its adopted General Plan; and The Envision Stockton 2040 General Plan was adopted on December 4, 2018, containing four chapters, each of which identify goals, policies, and implementation programs to guide future land use, development, and environmental protection decisions.

The Housing and Safety Elements of the Envision Stockton 2040 General Plan identify goals, policies, and implementation programs related to housing and avoiding natural and manmade hazards; and
The Housing Element must comply with California Government Code section 65580, and evaluate the appropriateness and effectiveness of its housing goals, objectives, and policies in attaining the City’s State and regional housing on an eight-year basis; and
On May 22, 2024, the City received a letter from the California Department of Housing and Community Development (HCD) indicating the City’s revised Housing Element was in statutory compliance with State housing law. HCD is the approving authority for the state on housing elements; and
The Safety Element must comply with Assembly Bills 747 and 1409 (AB 747 and AB 1409) that aim to ensure that local agencies adequately address the need for sufficient evacuation routes during a full-scale emergency. AB 1409 expands on this, requiring the General Plan to consider evacuation locations in addition to routes. California adopted AB 747 to enhance safety measures, which mandates that the Safety Element of the General Plan be reviewed and updated to identify evacuation routes and their capacity, safety, and viability under various emergency scenarios. This update must be completed in conjunction with the Housing Element Update and repeated every eight years; and On June 13, 2024, the Planning Commission held a duly noticed public hearing and voted 5-0 (two members absent) recommending the City Council approving a resolution adopting the 2023-2031 Housing Element and approving changes to the Safety Element of the City’s General Plan; and
On July 9, 2024, the City Council held a duly noticed public hearing, pursuant to 1011
Stockton Municipal Code (SMC) 16.88, at which all times all interested parties had the opportunity to be heard; now, therefore,

City Council and Concurrent AuthoritiesJuly 9, 2024

City Council and Concurrent Authorities
July 9, 2024