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

ATTACHMENT A 634
Quote
Date
5/29/2024 5/29/2024
Quote #
3037

CUSTOMER
Stockton Police Dept.

SHIP TO
Customer P.O. Rep
Danny
Color 1
See powdercoat details
Color 2 Est Completion
Revision Date
20% Deposit required to
place your boat on the
schedule for production
Add Credit Card Processing
Fee 3% over $1,000.00
1303 S 96th St
Seattle, WA 98108
Phone: (206) 722-8998
Email: [email protected]
www.wooldridgeboats.com
Line Qty Description Unit Price Total
- Electric horn
- Upgrade from stock seat to Patriot seat with Shockwave SS Sentinel suspension & slider
- Dash mounted cable steering system
NOTE: Install Stockton County Police Dept decals on sides of boat - NO CHARGE
NOTE: Flatstock front deck w/ Heskins non-slip
1 Custom 24" wide console 599.00 599.00
1 Locking doors on console 699.00 699.00
1 Folding windshield on 24" wide console 799.00 799.00
4 Removable pedestals w/ flush mount bases - Forward of console 249.00 996.00 4 Navi Highback style seat for above pedestals 264.00 1,056.00 Dual 1,000 MCA/AGM starting batteries (Group 27) forward under front deck w/ Blue Sea selector switch
1 2,399.00 2,399.00
Garmin EchoMap UHD2 74sv marine fishfinder/ chartplotter- installed on top of console
1 1,829.00 1,829.00
1 Vision-X XPR-9M 19" LED headlight recessed in bow 1,649.00 1,649.00 Interior LED light package - (6) 20" LED light strips located under gunnels to illuminate side trays and flooring (3 on each side)
1 627.00 627.00
Four (4) Whelen LED blue flashing lights mounted in top forward & top side corners of console windshield (see San Joaquin XL for reference) 1 1,775.00 1,775.00
Powdercoat interior/ exterior of boat (not bottom) - Similar color to San Joaquin XL (graphite metallic)
1 7,400.00 7,400.00
1 Yamaha VF250LB VMAX SHO 4.2L outboard engine- less lower unit 24,629.00 24,629.00 1 Rigging Kit (Control box,tach,shift/throttle cables & wire harness) 1,429.00 1,429.00 1 Installation and testing of new outboard motor and controls 1,899.00 1,899.00 1 Jet unit with 4-blade SS impeller 3,899.00 3,899.00
1 Installation of jet on outboard motor 425.00 425.00

Page 2 ends

ATTACHMENT A 635
Quote
Date
5/29/2024 5/29/2024
Quote #
3037

CUSTOMER
Stockton Police Dept.

Page 3 ends

Total $106,197.00
ATTACHMENT A 636
City of Stockton
Legislation Text
File #: 24-1132, Version: 1
ADOPT AN ORDINANCE AMENDING TITLE 8, CHAPTER 8.44, SECTIONS 8.44.060, 8.44.080,

8.44.085, 8.44.110, 8.44.115, and 8.44.230 OF THE STOCKTON MUNICIPAL CODE TO CORRECT

INCONSISTENCIES WITHIN THE CODE AND TO IMPROVE ADMINISTRATION AND

ENFORCEMENT OF THE CODE

RECOMMENDATION
It is recommended that the City Council:

1. Adopt an ordinance amending Title 8, Chapter 8.44, Sections 8.44.060, 8.44.080, 8.44.085,

8.44.110, 8.44.115, and 8.44.230 of the Stockton Municipal Code to correct inconsistencies within the Code and to improve administration and enforcement of the Code.

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

Summary
The Stockton Alarm Ordinance aims to curb the problem of false alarms, which drain police resources, cost taxpayers money, and hinder effective crime response. By requiring permits, imposing fines for excessive false alarms, and setting standards for alarm systems, the ordinance promotes responsible alarm use and minimizes unnecessary police dispatches.

The Stockton Police Department’s Alarm Ordinance, adopted in 1984 and partially revised in 2011, is outdated. Originally designed for commercial and industrial alarm systems, the ordinance has not kept pace with the explosion of residential alarm systems fueled by the internet, wireless technology, and affordable home security options. This surge in residential systems has led to a dramatic increase in false alarms, burdening law enforcement agencies nationwide.

False alarms, often triggered by user error or equipment malfunctions, have become a significant problem. Studies show that the vast majority of alarm calls are false, diverting police resources from genuine emergencies. The rise of AI-powered systems, while offering potential benefits, is expected to increase false alarms due to the challenges of implementing modern technology.

DISCUSSION
Background
The Stockton Police Department, recognizing the importance of public safety and efficient resource allocation, maintains an ordinance (Stockton Municipal Code “SMC” Chapter 8.44) to regulate intrusion detection devices and address the ongoing challenge of false alarms. This ordinance, like City of Stockton Page 1 of 3 Printed on 11/27/2024
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File #: 24-1132, Version: 1
those adopted by numerous other municipalities, aims to balance the benefits of alarm systems with the need to minimize unnecessary strain on law enforcement resources. While the intent behind Stockton's ordinance aligns with best practices, a comprehensive review reveals several areas requiring attention and revision.

In Stockton, over 90% of alarm calls in recent years were false, straining police resources. This highlights the urgent need to update the city's alarm ordinance to address the current landscape of home security systems and reduce the burden of false alarms on law enforcement.

Fiscal Year Alarm Calls False Alarms False Alarm %
2021 7,702 6,906 89.6%
2022 8,303 7,442 89.6%
2023 6,920 6,289 90.8%
Furthermore, an analysis of SMC Chapter 8.44 reveals inconsistencies with ordinances in comparable municipalities. These inconsistencies are particularly notable in areas such as grace periods for false alarms, appeal processes, and criteria for placing alarm users on "No Response Lists." In addition to these inconsistencies, the ordinance itself suffers from ambiguous language and unclear processes, hindering its effective interpretation and enforcement.

To ensure the ordinance remains relevant and effective in addressing the evolving landscape of alarm systems, a comprehensive revision is necessary. This revision should prioritize clarity, streamline processes, and align Stockton's approach with best practices observed in other municipalities. By doing so, the City can strengthen its commitment to public safety while optimizing the allocation of valuable law enforcement resources.

Present Situation
Currently, the responsibility for managing all aspects of the non-fire alarm permitting process falls under the purview of the Neighborhood Services Section (NSS). This encompasses a wide range of tasks, including issuing permits, processing renewals, tracking false alarms, issuing notifications, collecting fines, and managing appeals. The sheer volume of work associated with these duties currently consumes 65-70% of a single Office Technician's time, leaving limited capacity for other essential functions.

Looking ahead, the anticipated growth in alarm system usage, fueled by advancements in technology and increasing affordability, presents a significant challenge. This projected growth will inevitably lead to a corresponding rise in false alarms, further exacerbating the workload for NSS staff. Without adequate resources and a revised ordinance, the City risks falling behind in its efforts to effectively manage alarm systems and mitigate the impact of false alarms on police response.

While false alarms are an ongoing challenge, a review of SMC Chapter 8.44 reveals opportunities to improve clarity and effectiveness. Although generally well-written and aligned with other municipal codes, certain sections would benefit from revision to enhance public understanding and facilitate potential future collaborations.

City of Stockton Page 2 of 3 Printed on 11/27/2024
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File #: 24-1132, Version: 1
Specifically, revisions should focus on clarifying the permit acquisition process (SMC 8.44.060), providing clearer definitions of permit expiration timeframes (SMC 8.44.080), outlining permit revocation procedures (SMC 8.44.085), and defining excessive false alarms and their consequences (SMC 8.44.110). Additionally, the appeals process (SMC 8.44.115) and the distinction between service fees and fines, including the fee appeal process (SMC 8.44.230), require further clarification.

This ordinance is about ensuring public safety by optimizing police resources and response time.

When police are constantly responding to false alarms, it delays their response to real emergencies like burglaries, fires, or medical crises. By reducing the number of false alarms, the police can prioritize genuine threats and respond more quickly, ultimately increasing the safety and security of everyone in Stockton. The ordinance also encourages residents and businesses to properly maintain their alarm systems and use them responsibly, fostering a community-wide effort to improve public safety.

Amendments to this ordinance will provide greater transparency and understanding for the public.

Furthermore, these revisions will prove invaluable should the City opt to transition its alarm program to a third-party vendor, enabling a smoother implementation and a program tailored to Stockton's specific needs (Attachment A).

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

Attachment A - Proposed Ordinance, Title 8, Chapter 8.44 Red-Lined Version City of Stockton Page 3 of 3 Printed on 11/27/2024
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ORDINANCE NO. ________________
AN ORDINANCE AMENDING TITLE 8, CHAPTER 8.44, SECTIONS 8.44.060, 8.44.080,

8.44.085, 8.44.110, 8.44.115, and 8.44.230 OF THE STOCKTON MUNICIPAL CODE TO

CORRECT INCONSISTENCIES WITHIN THE CODE AND TO IMPROVE ADMINISTRATION AND ENFORCEMENT OF THE CODE.

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

SECTION I. FINDINGS AND INTENT.

The current version of the City of Stockton’s Alarm Ordinance was adopted in 1984 and is currently codified in the Stockton Municipal Code (SMC) 8.44 et seq. The Purpose of the Code, “to establish standards and controls for the various types of intrusion, hold-up and other emergency signals from alarm systems for which police response or investigation is expected, and for the businesses and persons installing and servicing said systems in order to protect the public health, welfare, and safety,” was adopted at a time when commercial and industrial concerns were the majority of end users of these systems. Over time, there has been a large increase in residential security systems. The SMC needs to be updated to allow staff to address concerns around residential security systems in addition to commercial and industrial systems.

Furthermore, in reviewing the Code for potential areas of improvement, inconsistencies in how alarm user permits were issued were discovered. Minor changes to the Code can correct these inconsistencies and improve permit issuance.

The proposed amendments to the SMC will correct inconsistencies in the SMC that were found during a review of the existing Code and improve administration and enforcement of the Code.

SECTION II. AMENDMENT OF CODE
Title 8, Chapter 8.44 section 8.44.060 of the Stockton Municipal Code is amended to read as follows:

8.44.060 Alarm user's permit.

A. No person shall install, cause to be installed, use, maintain, or possess an alarm system on the premises owned or in the possession or control of such person within the City without first having obtained an alarm user's permit from the Chief of Police of the City, in accordance with this section.

B. The application for an alarm user's permit shall be submitted on a form prescribed by the Chief of Police and shall include the address of the premises wherein the system is to be located and the name, address, and telephone number of the applicant and the person(s) who will respond to an alarm and provide access during any hour of the day or night, and any such additional information that the Chief of Police shall deem necessary for the evaluation and proper processing of the permit application.

C. Any permittee who operates or maintains more than one alarm system upon any particular property may, at the permittee's option, apply for a single permit for that particular property or for ATTACHMENT A 640
separate permits for each alarm system operated or maintained; provided, however, that if such permittee chooses to secure separate permits for each alarm system, a separate application shall be submitted for each such system and a separate permit fee shall accompany each such application.

D. The application shall be accompanied by a nonrefundable fee on a fee schedule established by the City Council of Stockton. The permit shall expire according to the schedule of permits and fees established by the City Council, at which time a renewal fee will be collected in accordance with the schedule of permits and fees applicable at the time of renewal.

E. Permit fees shall be paid in full at the beginning of each calendar year according to the schedule of permits and fees established by the City Council. Permit fees shall not be prorated.

Permit fees shall be paid in full at the time of application according to the schedule of permits and fees established from time to time by the City Council. A commercial/industrial permit shall expire at the end of the calendar year in which the permit was issued. A residential permit shall expire at the end of the calendar year, two years after the permit was issued. Permit renewal fees shall be paid no later than the first day of the calendar year in accordance with SMC

8.44.080. Permit fees shall not be prorated.

F. Nothing in this chapter shall be construed to require any police response to alarm devices.

The issuance of the alarm user's permit does not entitle the holder to any special level of police service to an alarm device. The fees will be used to offset costs to control false alarms and maintain records of existing alarm systems in the City. All fees associated with this Chapter shall be deposited into the General Fund. A portion of the fees deposited in the Fund shall be used to offset costs associated with administrating the provisions of this Chapter. All police responses to alarm devices will be made in accordance to the alarm response policy established by the Chief of Police.
(Prior code § 5-405)
SECTION III. AMENDMENT OF CODE
Title 8, Chapter 8.44 section 8.44.080 of the Stockton Municipal Code is amended to read as follows:

8.44.080 Expiration of permits.

A. Length of Permit Period. Each alarm use permit is valid, from the date of issuance, for one year for a business and three years for a residence; unless, the permit is revoked at an earlier time and must be renewed in compliance with current regulations. The date of issuance is the date shown on the permit. If a permit is not renewed, or if it is revoked, the alarm system may not be operated until a new permit is secured. Each alarm use permit shall be valid as follows:

1. Commercial/Industrial – from the date the application is approved, through the end of the calendar year in which it was issued.

2. Residential – from the date the application is issued, through two calendar years after the year in which the permit was issued.

B. Application for Renewal. If an application for renewal is not filed with the Chief of Police within 30 business days prior to the permit's expiration date, the permit shall may be canceled, ATTACHMENT A 641
and should it be determined the alarm system continues to be activated prior to obtaining a new permit, the permittee shall be in violation of this chapter and punishable as defined in Section 8.44.230. The permit renewal fee shall accompany the renewal application.

C. If the permit is revoked prior to the renewal date, the alarm system shall be deactivated and a new permit shall be obtained in compliance with current regulations, and a new permit fee shall be charged pursuant to SMC 8.44.060. The date of issuance is the date shown on the permit. If a permit is not renewed, or it is revoked, the alarm system shall not be operated until a new permit is obtained.
(Prior code § 5-407; Ord. 004-11 C.S. § 1, eff. 3-17-11) SECTION IV. AMENDMENT OF CODE
Title 8, Chapter 8.44 section 8.44.085 of the Stockton Municipal Code is amended to read as follows:

8.44.085 Revocation and reissuance of alarm use permits.

A. An alarm user permit may be revoked if good cause exists. Good cause for revocation shall include, but not be limited to:

1. Failure to take corrective measures to prevent false alarms;

2. Failure to pay service charges fees resulting from excessive false alarms. as authorized by this chapter.
a. Pursuant to SMC 8.44.110, excessive shall mean more than two (2) false alarms during any ninety-day period, which begins on the date of, and includes, the first false alarm.

B. Notice of alarm permit revocation shall be made by the Chief of Police to the permittee by certified or registered mail.

C. Use of an alarm system after permit revocation notification has been issued is unlawful and may result in an administrative fine issued by the Chief of Police or designee in accordance with Section 1.32.030 through 1.32.070 or the Stockton Municipal Code.

D. Revoked permits may be reissued by the Chief of Police if the former permittee can show that action has been taken to correct the cause or causes which resulted in the revocation of the original alarm use permit. Reissuance of an alarm use permit shall be accomplished by the same procedure as the issuance of a new permit.
(Ord. 004-11 C.S. § 2, eff. 3-17-11)
SECTION V. AMENDMENT OF CODE
Title 8, Chapter 8.44 section 8.44.110 of the Stockton Municipal Code is amended to read as follows:

8.44.110 False alarms.

ATTACHMENT A 642
False alarms as defined in this chapter will be subject to review according to a false alarm policy established by the Chief of Police. In accordance with this policy, a service fee will be charged by the City for excessive false alarms or failure to respond to alarms by alarm owners or their designated representative. It is unlawful to activate an alarm designed to communicate an emergency situation for nonemergency purposes. Emergency for the purpose of this chapter means the commission of a felony crime. shall be defined pursuant to (Penal Code 653y(d)).

A. Excessive shall mean more than two (2) false alarms during any ninety-day period, which begins on the date of, and includes, the first false alarm.

B. Pursuant to SMC 8.44.190, excessive false alarms may result in police services no longer responding to an alarm at that location.

C. The false alarm service fee shall be determined, from time to time, as approved by the City Council.
(Prior code § 5-410; Ord. 004-11 C.S. § 1, eff. 3-17-11 SECTION VI. AMENDMENT OF CODE
Title 8, Chapter 8.44 section 8.44.115 of the Stockton Municipal Code is amended to read as follows:

8.44.115 Appeals.

A. Any person who is denied an alarm use permit, or whose alarm use permit has been revoked, or who is denied an alarm use permit reissuance, or who has been assessed an administrative fine after revocation of an alarm permit, or whose location the Chief of Police has determined there will be no response by police services to an alarm in accordance with SMC 8.44.190, or who has received an alarm service charge assessment, may appeal the action in writing to the City Manager or designee within 15 business days of the denial, revocation, denial of reissuance, or assessment of a service charge or administrative fine. Within 30 business days of receipt of an appeal, the City Manager or designee shall render a written decision on the appeal. If the appeal is denied, such decision shall be effective immediately upon personal service to the applicant/permittee or shall be effective five calendar days after being deposited with the United States Postal Service. The decision of the City Manager or designee shall be final.

B. Any person who has received an Administrative Fine associated with a Notice of Violation / Administrative Citation may appeal the fine in accordance with SMC Sections

1.32.030 through 1.32.070.
(Ord. 004-11 C.S. § 2, eff. 3-17-11)
SECTION VII. AMENDMENT OF CODE
Title 8, Chapter 8.44 section 8.44.230 of the Stockton Municipal Code is amended to read as follows:

8.44.230 Violation of chapter.

A. Penalties. Any person violating any of the provisions of this chapter shall be deemed guilty of either an infraction as provided under Section 1.08.010 of the Stockton ATTACHMENT A 643
Municipal Code, or may be assessed an administrative fine issued by the Chief of Police in accordance with Sections 1.32.030 through 1.32.070 of the Stockton Municipal Code.

A.B. Service Fees. As authorized within this Chapter, some violations may result in a service fee being charged rather than a fine being assessed. Service fees may be appealed pursuant to SMC 8.44.115
CB. Enforcement. The conviction or punishment of any person for violation of the provisions of this chapter or for failing to secure a permit as required by this chapter shall not relieve such person from paying the permit fee due and unpaid at the time of such conviction, nor shall payment of any permit fee prevent criminal prosecution for violation of any of the provisions of this chapter.

DC. All remedies shall be cumulative, and the use of one or more remedies by the City shall not bar the use of any other remedy for the purpose of enforcing the provisions of this chapter. The amount of any permit fee shall be deemed a debt to the City. An action may be commenced in the name of the City in any court of competent jurisdiction for the amount of any delinquent permit fee. All permit fees shall be deemed delinquent 30 days after they are due and payable.
(Prior code § 5-423; Ord. 004-11 C.S. § 1, eff. 3-17-11) SECTION IV. SEVERABILITY.

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

SECTION V. EFFECTIVE DATE.

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

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

ATTACHMENT A 644

KATHERINE ROLAND, CMC, CPMC
City Clerk of the City of Stockton
ATTACHMENT A 645
ORDINANCE NO. ________________
AN ORDINANCE AMENDING TITLE 8, CHAPTER 8.44, SECTIONS 8.44.060, 8.44.080,

8.44.085, 8.44.110, 8.44.115, and 8.44.230 OF THE STOCKTON MUNICIPAL CODE TO

CORRECT INCONSISTENCIES WITHIN THE CODE AND TO IMPROVE ADMINISTRATION AND ENFORCEMENT OF THE CODE.

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

SECTION I. FINDINGS AND INTENT.

The proposed amendments to the SMC will correct inconsistencies in the SMC that were found during a review of the existing Code and improve administration and enforcement of the Code.

SECTION II. AMENDMENT OF CODE
Title 8, Chapter 8.44 section 8.44.060 of the Stockton Municipal Code is amended to read as follows:

8.44.060 Alarm user's permit.

C. Any permittee who operates or maintains more than one alarm system upon any particular property may, at the permittee's option, apply for a single permit for that particular property or for 646
separate permits for each alarm system operated or maintained; provided, however, that if such permittee chooses to secure separate permits for each alarm system, a separate application shall be submitted for each such system and a separate permit fee shall accompany each such application.

E. Permit fees shall be paid in full at the time of application according to the schedule of permits and fees established from time to time by the City Council. A commercial/industrial permit shall expire at the end of the calendar year in which the permit was issued. A residential permit shall expire at the end of the calendar year, two years after the permit was issued. Permit renewal fees shall be paid no later than the first day of the calendar year in accordance with SMC

8.44.080. Permit fees shall not be prorated.

F. Nothing in this chapter shall be construed to require any police response to alarm devices.

The issuance of the alarm user's permit does not entitle the holder to any special level of police service to an alarm device. All fees associated with this Chapter shall be deposited into the General Fund. A portion of the fees deposited in the Fund shall be used to offset costs associated with administrating the provisions of this Chapter. All police responses to alarm devices will be made in accordance to the alarm response policy established by the Chief of Police.
(Prior code § 5-405)
SECTION III. AMENDMENT OF CODE
Title 8, Chapter 8.44 section 8.44.080 of the Stockton Municipal Code is amended to read as follows:

8.44.080 Expiration of permits.

A. Length of Permit Period. Each alarm use permit shall be valid as follows:

1. Commercial/Industrial – from the date the application is approved, through the end of the calendar year in which it was issued.

2. Residential – from the date the application is issued, through two calendar years after the year in which the permit was issued.

B. Application for Renewal. If an application for renewal is not filed with the Chief of Police within 30 business days prior to the permit's expiration date, the permit may be canceled, and should it be determined the alarm system continues to be activated prior to obtaining a new permit, the permittee shall be in violation of this chapter and punishable as defined in Section 8.44.230. The permit renewal fee shall accompany the renewal application.

C. If the permit is revoked prior to the renewal date, the alarm system shall be deactivated and a new permit shall be obtained in compliance with current regulations, and a new permit fee shall be charged pursuant to SMC 8.44.060. The date of issuance is the date shown on the 647
permit. If a permit is not renewed, or it is revoked, the alarm system shall not be operated until a new permit is obtained.
(Prior code § 5-407; Ord. 004-11 C.S. § 1, eff. 3-17-11) SECTION IV. AMENDMENT OF CODE
Title 8, Chapter 8.44 section 8.44.085 of the Stockton Municipal Code is amended to read as follows:

8.44.085 Revocation and reissuance of alarm use permits.

A. An alarm user permit may be revoked if good cause exists. Good cause for revocation shall include, but not be limited to:

1. Failure to take corrective measures to prevent false alarms;

2. Failure to pay service fees resulting from excessive false alarms. a. Pursuant to SMC 8.44.110, excessive shall mean more than two (2) false alarms during any ninety-day period, which begins on the date of, and includes, the first false alarm.

B. Notice of alarm permit revocation shall be made by the Chief of Police to the permittee by certified or registered mail.

8.44.110 False alarms.

False alarms as defined in this chapter will be subject to review according to a false alarm policy established by the Chief of Police. In accordance with this policy, a service fee will be charged by the City for excessive false alarms or failure to respond to alarms by alarm owners or their designated representative. It is unlawful to activate an alarm designed to communicate an emergency situation for nonemergency purposes. Emergency for the purpose of this chapter shall be defined pursuant to (Penal Code 653y(d)).

A. Excessive shall mean more than two (2) false alarms during any ninety-day period, which begins on the date of, and includes, the first false alarm. 648
B. Pursuant to SMC 8.44.190, excessive false alarms may result in police services no longer responding to an alarm at that location.

8.44.115 Appeals.

A. Any person who is denied an alarm use permit, or whose alarm use permit has been revoked, or who is denied an alarm use permit reissuance, or whose location the Chief of Police has determined there will be no response by police services to an alarm in accordance with SMC 8.44.190, or who has received an alarm service charge assessment, may appeal the action in writing to the City Manager or designee within 15 business days of the denial, revocation, denial of reissuance, or assessment of a service charge. Within 30 business days of receipt of an appeal, the City Manager or designee shall render a written decision on the appeal. If the appeal is denied, such decision shall be effective immediately upon personal service to the applicant/permittee or shall be effective five calendar days after being deposited with the United States Postal Service.

The decision of the City Manager or designee shall be final.

B. Any person who has received an Administrative Fine associated with a Notice of Violation / Administrative Citation may appeal the fine in accordance with SMC Sections

1.32.030 through 1.32.070.
(Ord. 004-11 C.S. § 2, eff. 3-17-11)
SECTION VII. AMENDMENT OF CODE
Title 8, Chapter 8.44 section 8.44.230 of the Stockton Municipal Code is amended to read as follows:

8.44.230 Violation of chapter.

A. Penalties. Any person violating any of the provisions of this chapter shall be deemed guilty of either an infraction as provided under Section 1.08.010 of the Stockton Municipal Code, or may be assessed an administrative fine issued by the Chief of Police in accordance with Sections 1.32.030 through 1.32.070 of the Stockton Municipal Code.

B. Service Fees. As authorized within this Chapter, some violations may result in a service fee being charged rather than a fine being assessed. Service fees may be appealed pursuant to SMC 8.44.115
C. Enforcement. The conviction or punishment of any person for violation of the provisions of this chapter or for failing to secure a permit as required by this chapter shall not relieve such person from paying the permit fee due and unpaid at the time of such 649
conviction, nor shall payment of any permit fee prevent criminal prosecution for violation of any of the provisions of this chapter.

D. All remedies shall be cumulative, and the use of one or more remedies by the City shall not bar the use of any other remedy for the purpose of enforcing the provisions of this chapter. The amount of any permit fee shall be deemed a debt to the City. An action may be commenced in the name of the City in any court of competent jurisdiction for the amount of any delinquent permit fee. All permit fees shall be deemed delinquent 30 days after they are due and payable.
(Prior code § 5-423; Ord. 004-11 C.S. § 1, eff. 3-17-11) SECTION IV. SEVERABILITY.

SECTION V. EFFECTIVE DATE.

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

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

KATHERINE ROLAND, CMC, CPMC
City Clerk of the City of Stockton
650
City of Stockton
Legislation Text
File #: 24-1111, Version: 1

APPROVE MOTION TO AUTHORIZE PROFESSIONAL SERVICES CONTRACT AMENDMENT NO. 3 FOR THE REDEVELOPMENT OF THE VAN BUSKIRK MUNICIPAL GOLF COURSE

RECOMMENDATION
It is recommended that the City Council approve a motion to authorize the City Manager to execute Professional Services Contract Amendment No. 3 in the amount of $1,306,000 with Design Workshop, Inc. for additional design services of the Van Buskirk Municipal Golf Course, Project No.

WT24050.

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

Summary
Professional Services Contract Amendment No. 3 in the amount of $1,306,000 with Design Workshop, Inc. will complete final design and environmental documents for Phase 1 and Phase 2 for the redevelopment of the former Van Buskirk Municipal Golf Course, Project No. WT24050.

On April 2, 2024, by Resolution No. 2024-04-02-1205, Council approved a grant award through Round 4 of the California Statewide Park Development and Community Revitalization (SPP) program for design and construction of Phase 1 of the redevelopment of the former Van Buskirk Municipal Golf Course, Project No. WT24050. Phase 1 of the project includes renovation of the existing basketball courts and creation of two new basketball courts, construction of a new skate park, BMX track, and bike trails. The project scope will include all associated landscape planting and irrigation, lighting, signage, fencing, and site furnishings for those specific recreational features.

Phase 2 of the project will include a design for the new nature-based amenities and recreational features such as a community garden, a nature-based water play/splash pad, a multipurpose lawn/field, and walking and biking paths. Final design of Phase 1 and Phase 2 is anticipated to be completed in winter of 2025. Construction of Phase 1 is anticipated to be advertised in spring of 2026.

DISCUSSION
Background
Van Buskirk Golf Course is a 192-acre parcel located at 1740 Houston Avenue. The property deeded to the City in 1957 by Charles and Bertha Van Buskirk includes the Van Buskirk Golf Course, Community Center, park, and ballfields. A deed restriction limits use to “public recreation or public park purpose.” The deed also identifies that the property would revert to the donor’s heirs if the City City of Stockton Page 1 of 3 Printed on 11/27/2024
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File #: 24-1111, Version: 1
became non-compliant with respect to those restricted uses. The Van Buskirk heirs expressed their continued support for recreational purposes and possible educational opportunities.

On November 17, 2020, by Motion No. 2020-11-17-1403, Council awarded a Professional Services Contract in the amount of $258,857 to Design Workshop, Inc. to develop a Master Plan for the Reuse of Van Buskirk Municipal Golf Course. The scope of work included preparing conceptual site plan alternatives, conducting needs assessment, drafting and finalizing studies, and completing environmental documentation. It was later decided that the cost allocated for preparation of environmental documents be reallocated toward public outreach and community engagement efforts.

The Community Services Department worked with Design Workshop, Inc., consultant team, stakeholders, and community members to develop a Master Plan for rehabilitating and reusing the former Van Buskirk Municipal Golf Course property. This property is adjacent to the Van Buskirk Community Center and is deed restricted for recreation.

On December 9, 2022, Professional Services Contract Amendment No. 1 was administratively issued under the City Manager’s authority to extend the expiration date from November 30, 2022, to November 30, 2024, to complete the creation of the 2023 Van Buskirk Master Plan.

On August 22, 2023, by Motion No. 2023-08-22-1501, Council accepted the Concept Master Plan recommended by the 2023 Van Buskirk Master Plan and Biological Resources and Ecosystem Values report for the rehabilitation and reuse of the Van Buskirk Municipal Golf Course (Attachment A).

On April 2, 2024, by Resolution No. 2024-04-02-1205, Council approved a grant award from the SPP for the Van Buskirk Park Renovation project in the amount of $7,016,086. The SPP grant performance period is from July 1, 2023, through June 30, 2027. City staff identified the scope for the SPP grant as Phase 1 of the project, which includes renovation of the existing basketball courts and creation of two new basketball courts, new skate park, BMX track, and bike trails. The scope for Phase 1 will build a portion of what was visioned in the Concept Master Plan.

On October 25, 2024, Professional Services Contract Amendment No. 2 was administratively issued under the City Manager’s authority to extend the expiration date to November 30, 2027, to align with the performance schedule of the SPP grant received for the Van Buskirk Golf Course Reuse project.

Present Situation
Professional Services Contract Amendment No. 3 in the amount of $1,306,000 with Design Workshop, Inc. will complete final design and environmental documents for Phase 1 and Phase 2 for the redevelopment of the former Van Buskirk Municipal Golf Course, Project No. WT24050 (Attachment B).

On April 2, 2024, by Resolution No. 2024-04-02-1205, Council approved a grant award through Round 4 of the California Statewide Park Development and Community Revitalization (SPP) program for design and construction of Phase 1 of the redevelopment of the former Van Buskirk Municipal Golf Course, Project No. WT24050. Phase 1 of the project includes renovation of the existing basketball courts and creation of two new basketball courts, construction of a new skate park, BMX City of Stockton Page 2 of 3 Printed on 11/27/2024
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track, and bike trails. The project scope will include all associated landscape planting and irrigation, lighting, signage, fencing, and site furnishings for those specific recreational features.

Based on preliminary coordination with Design Workshop, Inc., final design is anticipated to be complete in winter 2025.

The proposed Professional Services Contract Amendment No. 3, in the amount of $1,306,000, is above the City Manager’s delegation of authority and requires Council action.

It is recommended that Council approve Professional Services Contract Amendment No. 3 in the amount of $1,306,000 with Design Workshop, Inc. for additional design services for the redevelopment of the Van Buskirk Municipal Golf Course, Project No. WT24050.

FINANCIAL SUMMARY
There is sufficient budget in the Van Buskirk Municipal Golf Course, Project No. WT24050, to approve Professional Services Contract Amendment No. 3 in the amount of $1,306,000 with Design Workshop, Inc.

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

Attachment A - Master Plan Schematic Design with Phases 1 and 2 scope highlighted Attachment B - Professional Services Contract Amendment No. 3 with Design Workshop, Inc.

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CITY OF STOCKTON

PROFESSIONAL SERVICES AGREEMENT FOR

VAN BUSKIRK PARK- PHASE TWO

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Project Understanding:

This project includes providing final design, environmental permitting, construction and bid documents and construction observation support for the second phase of the Van Buskirk Park.

Based on the master plan approved in August 2023, the City of Stockton (CITY) is in process of obtaining grant funding for implementing the second phase of park improvements which includes the following and is illustrated on Attachment A.

Community Garden
Two Parking Lots (may combine the two parking lots as part of Schematic Design for Phase One)
Multi-Purpose Fields
Splash Pad and water Play area.

Picnic area next to splash pad (including Exeloo style restroom) Trails to connect the recreation features around Phase Two and connection to Phase One
Project Scope
The following is the scope of work and related fees to provide the necessary documents to gain approval and solicit bids from contractors interested in building the improvements. The following includes the design team and their respective roles in providing the necessary services.

Design Workshop
Lead Consultant and project manager for design team and direct coordination with CITY staff
Design services for the proposed park improvements to include a community garden, multipurpose fields, splash pad and water play area, picnic areas, prefabricated restroom (Exeloo style), parking lots walkways and trails, planting and irrigation, and selection of all site furnishings and materials.

Prepare and coordinate construction documents for the design team and submit 30%, 60%, 90% and final bid documents and specifications.

Provdide construction observation when requested by CITY.

BKF
Civil Engineering services include grading design, stormwater design, sewer and water services.

Assist with ADA accessibility compliance.

Qualified SWPPP Developer (QSD) services.

Prepare construction documents at 30%, 60%, 90% and final bid documents and specifications.

Construction bid support for civil-related items during bidding.

PK Electrical, Inc.

Prepare preliminary and final electrical site lighting for activity areas and security lighting.

Prepare construction documents at 30%, 60%, 90% and final bid documents and specifications.

Construction bid support for electrical-related items during bidding.

ATTACHMENT B

EXHIBIT A
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CITY OF STOCKTON

PROFESSIONAL SERVICES AGREEMENT FOR

VAN BUSKIRK PARK- PHASE TWO

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Trident Aquatics International
Provide design services for the proposed splash pad area, coordination of selection options for nozzles, splash deck materials, and required circulation and feature equipment selections.

Prepare and coordinate construction documents for the design team and submit 30%, 60%, 90% and final bid documents and specifications.

Provide documentation for health/building department review and permitting.

Provdide construction observation and reporting when requested.

TASK ONE. PROJECT MANAGEMENT/COORDINATION
This includes management tasks, and the meetings associated with the project that are not included in the tasks described below. Under the CITY’s project management and direction, Design Workshop will administer and coordinate the Project, including items within the scope of services and in a timely task completion of all work.

We will run the project through our project delivery system which includes project management tools and review to assist the design team to stay on track and deliver quality work efficiently and will be used to manage this project and the subconsultants. The specific tasks to be completed are as follows:

1. Coordinate with CITY on weekly regular project updates via email with a status of the project, as well as outlined meetings and technical review sessions.

2. Coordination and facilitation of the regular team virtual conference meetings including creating agendas and providing meeting access information.

3. Coordinate work progress, schedule, and responsibilities with the Project team.

4. Maintenance of schedule throughout the timeline of the project.

The following products will be prepared / delivered:

1. Action lists including progress reports, responsibilities and notes from scheduled CITY meetings and weekly team virtual conference meetings.

2. Updated schedule as the project progresses.

3. Meeting minutes from scheduled meetings.

4. Management of the scope and fee for project team consultants.

5. Invoices and progress reports.

TASK TWO. PROJECT START-UP / BACKGROUND MEETINGS
This phase of the work is confirming the project limits, project budgets, confirming roles and responsibilities and finalizing the project schedule. The specific tasks to be completed are as follows:

ATTACHMENT B

EXHIBIT A
674

CITY OF STOCKTON

PROFESSIONAL SERVICES AGREEMENT FOR

VAN BUSKIRK PARK- PHASE TWO

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1. Meet with the CITY to review the project and any potential issues, confirm project goals, site program and roles and responsibility of the project team, outline sustainable design strategies, the construction budget and project schedule.

2. Review pertinent codes, current entitlements, and conditions of approval, which may impact the site development concepts.

3. Review existing site information provided by the CITY that may impact or assist with final site improvements.

4. Visit the site to become familiar with the site conditions, context surrounding the site and limits of topographic survey.

5. Attending information meetings with CITY to gain an understanding of items that will need to be considered in the final design. This will include but not limited to the Police, Fire and Emergency Response, staff at the Community Center, Public Works and Parks and Recreation.

6. Prepare a memo summarizing our review of information, site visit and meetings with the CITY. A final project schedule will be provided.

The following products will be prepared / delivered:

1. Meeting notes and summary memo including any potential challenges to development.

2. Final project schedule.

TASK THREE. SITE SURVEY
This includes providing Supplemental Topographic Surveying using Aerial Topographic Mapping provided as part of Phase One survey work

1. A Supplemental Topographic Survey will provide for the project as shown on Attachment B. The topographic survey will be comprised of identified visible site features such as roadways, pavements, evidence of significant traveled ways, walls, fences, trees 9- inches and larger in diameter and visual utility infrastructure. We will obtain a succession of spot elevations to define the general terrain of the site and immediately adjacent improvements to produce mapping at a 1-foot contour interval. The vertical control for the survey will be tied to the North American Vertical Datum of 1988 (NAVD88), unless otherwise agreed upon in writing prior to commencement of the survey. The horizontal location and rotation of the mapping is anticipated to be on an "assumed" coordinate system otherwise agreed upon in writing prior to commencement of the survey.

2. Utility infrastructure within the mapping limits, including sewer, water valves, hydrants, meter boxes, storm drain and marked utilities, if encountered during our field survey, will also be identified. The basic routing, inverts and orientation of the on-site gravity utilities will be identified based on field evidence and any available plans provided prior to

ATTACHMENT B

EXHIBIT A
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CITY OF STOCKTON

PROFESSIONAL SERVICES AGREEMENT FOR

VAN BUSKIRK PARK- PHASE TWO

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commencement of the survey. If as-built drawings are not provided or are inconclusive when compared to the field evidence, only data at the dipped structures will be provided.

The following products will be prepared / delivered:

1. Supplemental Topographic Survey anticipated to be compiled at 1" = 20’ and will also indicate individual spot elevations at various locations throughout the site.

2. A signed hardcopy Topographic Map will be an instrument of service. Electronic mapping will be completed in an AutoCAD format.

3. A series of photographs for future reference and documentation of current field conditions encountered during the time of the survey.

TASK FOUR. SCHMATIC DESIGN
This phase of the work is to revisit the master plan and make any adjustments based on information collected, existing conditions and funding. This includes the following.

1. Prepare a plan that shows the design refinements to the master plan that will include the elements in Phase Two improvements per Attachment A.

2. Identify areas in the design where potential cost savings could occur by modifying the design and recognizing how the future phases will be built.

3. Prepare enlargement design concept drawings for key areas of the master plan that need further design refinement. These areas include:

Community Garden
Two Parking Lots (may combine the two parking lots as part of Schematic Design for Phase One)
Multi-Purpose Fields
Splash Pad and water Play area.

Picnic area next to splash pad (including Exeloo style restroom) Trails to connect the recreation features around Phase Two and connection to Phase One

4. Prepare schematic site grading and drainage concepts for Phase Two site at a level that will illustrate land contouring, swales and hardscape drainage. This will not be a detailed design yet will establish general grading benchmarks for key areas of the site to ensure Phase Two will interface with future improvements.

5. Identify a preferred strategy to achieve local and state stormwater quality compliance.

Stormwater treatment facilities will be conceptually programmed to confirm general feasibility.

6. Prepare a Preliminary infrastructure plan that establishes general locations and sizes of utilities such as water (domestic and irrigation), sanitary sewer, storm drain, telephone, etc. and proposed point of connections and stub outs for Phase One and subsequent phases based on estimated demand.

ATTACHMENT B

EXHIBIT A
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CITY OF STOCKTON

PROFESSIONAL SERVICES AGREEMENT FOR

VAN BUSKIRK PARK- PHASE TWO

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7. Preliminary Stormwater Control Plan – BKF will prepare a stormwater control plan based on the stormwater programming coordination.

8. Prepare Preliminary water quality C.3 calculations (i.e., impervious areas, tributary drainage areas, storm outfall flows, BMP sizing, etc.) necessary to confirm the preliminary planning design proposed for Design Review. We will also calculate the preliminary earthwork quantities relative to the proposed grading plan.

9. Coordinate structural footprint of splash pad feature with team, develop structural thicknesses based on soil report provided by others. Revise aquatic footprints based on access requirements of health and ADA codes. Coordinate exterior locations of equipment yards or underground equipment vaults.

10. Prepare a Schematic Design level construction cost estimate for Phase Two elements of the project area.

11. Conduct project team meetings on a regular basis to confirm the program progress and discuss issues, changes or modifications that need to be considered to move forward with detailed design. Up to three (3) meetings during this phase will be held in Stockton and other remote meetings as deemed necessary by the City to review information and identify potential issues, alternative approaches and cost saving opportunities or address any questions the City may have.

The following products will be prepared / delivered:

1. Refined Overall Master Plan for Schematic Level Plan

2. Enlargement Plans and design concepts

3. Schematic Site Grading Plan

4. Infrastructure Plan for Phase Two

5. Schematic Level Cost Estimate of Construction

6. Meeting minutes

7. Updated Project Schedule
TASK FIVE. DESIGN DEVELOPMENT (30% Construction Documents) Upon approval by the CITY of the Schematic Design products, we will commence Design Development. This phase of the work is to develop the necessary plans and documents to effectively illustrate the design and update the cost estimation. From this task forward, our efforts are focused on Phase Two. The specific tasks to be completed are as follows:

1. Prepare a cover sheet and general notes per CITY standards to include the following drawings for Design Development (30%) submittal:

ATTACHMENT B

EXHIBIT A
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PROFESSIONAL SERVICES AGREEMENT FOR

VAN BUSKIRK PARK- PHASE TWO

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Landscape materials plans: Refine the design of the landscape structures like site furnishings, pedestrian pavement and hardscaping including pedestrian sidewalks, site stairs/ ramps, and non-structural walls.

Prepare a horizontal control plan based on the CITY approved Schematic Design site plan, including blowup details of key control areas, provided by the design team in electronic AutoCAD format.

Landscape planting and revegetation plans including composition, plant palette, locations, sizes and quantity of plantings.

Prepare on-site paving, drainage and grading plans, in conformance with the drainage analysis, and geotechnical soils investigation. Grading will include contouring, spot elevations, slopes, swales and necessary drainage facilities.

Prepare updated earthwork calculations to fine tune earthwork balance efforts.

Prepare separate on-site storm drain plans and profiles as required from the preliminary investigations.

Prepare on-site utility infrastructure plans showing locations and sizes of fire and domestic water connections and sanitary sewer service to the site with points of connection five (5) feet from the proposed buildings and structures.

Coordinate submittals with the CITY.

Prepare electrical plans including major site power distribution locations for Phase Two and future needs. Switchboards will be incorporated into restroom and maintenance structures whenever possible.

Detail sheets which identify materials, patterns, finishes, colors, etc., for paving, landscape walls, steps, and plantings to illustrate constructability and cost. Including grading cross-sections, drainage facilities, and utility connections to support approvals of the 30% civil improvement plans with the CITY meeting the minimum Uniform Standards for Design and Construction

2. Prepare draft specifications for all site, landscape, civil, mechanical, electrical and related components of the project that are not included as standard referenced specifications. To be formatted in standard CSI format to meet CITY standards.

3. Prepare a final on-site drainage analysis and Phase Two specific drainage calculations for review by the design team. The analysis will incorporate the recommendations of the design team preliminary analysis to determine the storm water runoff and site discharge for Phase Two final design components.

4. Prepare final layout of the splash pad concept and equipment room base with all MEP coordination for the splash pad (electrical loads, cold water supply, sewer connections etc.) Provide preliminary locations for pipe routing trenches and locations through or

ATTACHMENT B

EXHIBIT A
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CITY OF STOCKTON

PROFESSIONAL SERVICES AGREEMENT FOR

VAN BUSKIRK PARK- PHASE TWO

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under foundation walls. Coordinate bathroom locations, fence design and site lighting with design team.

5. Conduct project team meetings on a regular basis to confirm the program progress and discuss issues, changes or modifications that need to be considered to move forward with detailed design. Up to two (2) meetings during this phase will be held in Stockton following the CITY meetings, the remaining meetings will be held via virtual conference meetings.

6. Prepare a Design Development level construction cost estimate for the Phase One project area.

7. Submit Design Development (30%) plans to the CITY and participate in a review session to identify elements that need to be addressed in final documents.

The following products will be prepared / delivered:

1. Design Development Drawing Submittal for the following will be prepared:

Site Layout and Materials
Preliminary Grading and Drainage
Preliminary Utility Infrastructure Layout
Preliminary Planting Design
Preliminary Storm Drain Plans
Enlargement Plans for key feature areas
Design details/ sections for key feature elements

2. Design Development level construction cost estimate

3. Draft specifications

4. Preliminary structural calculations

5. Meeting minutes from coordination with CITY

6. Schedule Update
TASK SIX. CONSTRUCTION DOCUMENTS
Upon approval of the Design Development (30%) submittal set from the CITY, we will move forward into Construction Documents for Phase Two. This phase of the work is to prepare final documentation drawings that incorporate the most current information regarding construction practices. We will submit drawings at 60%, 90% for approval before it finalizes the Construction Documents for 100% Bid submittal. The specific tasks to be completed are as follows:

1. Prepare finalized working drawings, for each of the three submittals to include:

Finalized enlargements plans, cross sections and elevations of key detail areas.

ATTACHMENT B

EXHIBIT A
679

CITY OF STOCKTON

PROFESSIONAL SERVICES AGREEMENT FOR

VAN BUSKIRK PARK- PHASE TWO

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Landscape materials plans: Finalize the design of the landscape structures like site furnishings, pedestrian pavement and hardscaping including pedestrian sidewalks, site stairs/ ramps, and non-structural walls.

Landscape planting and revegetation plans: Finalize the planting design including composition, plant palette, locations, sizes and quantity of plantings.

Final irrigation plans illustrate points of connections, controller locations, lateral layouts, drip emitters, bubblers and spray heads.

Final landscape lighting design for all pedestrian, vehicular, and sports field areas.

Horizontal control plan to be finalized, including enlargement details of key control areas.

Final on-site paving, drainage and grading plans, in conformance with the final drainage analysis, and geotechnical soils investigation. Grading will include contouring, spot elevations, slopes, swales and final location of all necessary drainage facilities. Finalized earthwork calculations to fine tune earthwork balance efforts.

Finalize on-site storm drain plans
Finalize on-site utility infrastructure plans showing locations and sizes of fire and domestic water connections and sanitary sewer service to the site with points of connection five (5) feet from the proposed buildings and structures.

Coordinate submittals with the CITY of Stockton Building and Fire Safety and the CITY Utility Services Department.

Final electrical plans including major site power distribution locations for Phase Two and future needs.

Final detail sheets for landscape, civil and electrical elements which identify materials, patterns, finishes, colors, etc., for paving, landscape walls, steps, and plantings to illustrate constructability and cost. Including grading cross-sections, drainage facilities, and utility connections.

Provide dimension plan sheet of the splash pad, document all fittings and deck nozzle placement, and all finishes structural rebar placement.

2. Conduct up to two (2) technical work sessions with the CITY to correspond with document submittals 90% and 100% Bid Documents to facilitate the plan check reviews and potential cost savings measures along the process.

3. Review materials selection, constructability and technical systems with potential fabricators and suppliers.

ATTACHMENT B

EXHIBIT A
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CITY OF STOCKTON

PROFESSIONAL SERVICES AGREEMENT FOR

VAN BUSKIRK PARK- PHASE TWO

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4. Coordinate with dry utility companies to assist in their design process. Submit electronic AutoCAD drawings and paper documents from all team consultants, as required to assist in their approval process.

5. Utility Agency Application Support: BKF will provide application support to the CITY in order to submit the necessary documentation for application review and permitting with the CITY as needed for sewer and Cal Water for water services.

BKF will coordinate the project design with each agency and work with the design team on the necessary deliverables for permits. BKF will take the lead on submitting and managing the applications.

6. CITY/County Stormwater Compliance: BKF will further develop the methods to meet the CITY of Stockton’s Stormwater Quality Control Criteria Plan requirements for post-construction stormwater discharge. BKF will work with the landscape architect to implement the site water quality features. BKF will prepare a Final Stormwater Quality Control Plan. This report will show calculations as well as site design features that will serve to treat the site stormwater.

7. Stormwater Maintenance Plan: BKF will prepare a Stormwater Maintenance Plan defining the obligations of the CITY to operate and maintain the stormwater treatment facilities after construction is complete. The agreement will include details for each of the treatment facilities as well as reduced plans for the maintenance staff. We will work with the CITY to finalize the negotiated agreement. We have assumed that the CITY will record the final document with the County.

8. Stormwater Pollution Prevention Plan (SWPPP): SWPPP/NOI Development:

BKF shall assist the LRP to obtain an NOI/WDID and submit permit registration documents including,

1. Notice of Intent (NOI)

2. Stormwater Pollution Prevention Plan (SWPPP)

3. Site Maps & Civil Plans, including Erosion Control Sediment Plans

4. Site-specific Risk Analysis (Risk Level 1, 2 or 3)

5. Post-Construction Stormwater Compliance Documentation

6. Total Maximum Daily Load (TMDL) Pollutant Assessment

7. Annual Fee (Paid by owner)

9. Coordinate interdisciplinary Construction Document reviews between the consultants.

10. Submit Documents at 90% and 100%, complete and facilitate a plan check review meeting with the CITY following each submittal. The drawing sheet list as determined in Design Development will be used in these submittals.

11. Prepare a Preliminary Construction Document level opinion of probable construction cost for each of the 90% and 100% submittals.

The following products will be prepared / delivered:

ATTACHMENT B

EXHIBIT A
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CITY OF STOCKTON

PROFESSIONAL SERVICES AGREEMENT FOR

VAN BUSKIRK PARK- PHASE TWO

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1. Final Plans will be prepared for each of the two submittals (90% and 100%):

Cover Sheet /Notes & Legend
Existing Conditions
Demolition/Utility Relocation Plan
Site Layout and Materials
Final Grading and Drainage Plans
Final Utility Plans
Final Planting Plans
Final Irrigation Plans
Final Site Lighting Plan
Final Stormwater Control Plan
Final Sedimentation and Erosion Control Plan
Final Enlargement Plans for key feature areas
Final Splash Pad Plans
Final Electrical Plans
Design details/ sections for key feature elements
Final construction details, sections and elevations of the above-described materials with information required for construction, installation, and finishing of components

2. Calculations for Earthwork Storm Drain hydrology and hydraulics in memorandum format.

3. Final Construction Document level opinion of probable construction cost.

4. Project Manual including technical specifications in standard CSI format. General Conditions, Special Requirements and Bidding Documents shall be provided by the CITY. TASK SEVEN. BIDDING AND NEGOTIATION This phase of the work will be to assist the CITY in obtaining bids and aid the bidders in developing a clear understanding of the project. The specific tasks to be completed are as follows:

1. Issue Bid Documents which conform to the CITY Requirements.

2. Participate in a Pre-Bid conference with the CITY and potential bidders to review the work and provide clarification.

3. Prepare addenda to the Construction Documents, as clarification is required.

4. Review Bid Documents to ensure that there are no major errors or omissions.

5. Review substitutions and alternatives as requested by the bidders and make recommendations regarding the same.

6. Attend one (1) meeting with the CITY and the selected bidder to review the bid and participate in a value engineering session with selected bidder (if necessary).

TASK EIGHT. CONSTRUCTION OBSERVATION

ATTACHMENT B

EXHIBIT A
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CITY OF STOCKTON

PROFESSIONAL SERVICES AGREEMENT FOR

VAN BUSKIRK PARK- PHASE TWO

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This phase of the work is to provide observation of the construction process and ensure the quality of the final product. We understand that the CITY will assign a Project Manager that will be involved in daily oversight of the project and the design team will be available to assist when needed. The specific tasks to be completed are as follows:

1. Attend pre-construction meetings with contractor and his subcontractors as part of the project start up.

2. Review and approve shop drawings, samples, mock-ups and other submissions of the contractor for compliance with construction documents.

3. Respond to requests for clarifications or information (RFI).

4. Prepare and submit related field change orders.

5. Preparation of Drainage Compliance Report for the CITY and acceptance of slopes, swales, drains, utilities and civil related improvements.

6. Review as-built drawings.

7. Conduct a substantial completion punch list and recommend acceptance of the installation to the CITY.

8. Site visits as part of the construction meetings to observe consistency with the construction documents. These will be billed as a cost per visit as outlined in the fee section.

Assumptions
Existing utilities identified on BKF's drawings/plans are based on information obtained by BKF, or provided to BKF, and may not be accurately documented in their horizontal location or vertical profile. Other utilities may be present that were not disclosed. BKF highly recommends that critical facilities be underground service alert (USA) located and potholed during design or prior to construction.

Unless otherwise addressed, existing utilities (sewer, domestic water, storm drains) have adequate capacity to serve the proposed improvements, that they are adjacent to the site frontage and do not require main extensions, and that utility system capacity studies are not required. This will be discussed and confirmed at the project start up.

Fire System: if required, certification of the fire protection system from the point of connection at the public water main to the building sprinkler system must be provided by a properly-licensed fire protection engineer or contractor.

Off-site improvements will not be required for this phase of the project.

ATTACHMENT B

EXHIBIT A
683

CITY OF STOCKTON

PROFESSIONAL SERVICES AGREEMENT FOR

VAN BUSKIRK PARK- PHASE TWO

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The project will be permitted and constructed in one phase and that construction phasing plan(s), or interim condition plans, will not be required for this project.

FEES
Task Lump Sum Fee
One Project Management/ Coordination $ 17,400.00
Two Project Start Up/ Background Meetings $ 14,700.00
Three Site Survey and Preliminary Studies $ 35,200.00
Four Schematic Design $ 11,600.00
Five Design Development (30% Construction Docs.) $122,400.00 Six Construction Documents $256,600.00
Seven Bidding and Negotiation $ 12,200.00
Eight Construction Observation $ 60,800.00
Total (Labor Only) $530,900.00
Reimbursable Expenses (4% of Labor) $21,200.00

SCHEDULE
The CONSULTANT shall perform the professional services specified in this Agreement in accordance with the anticipated schedule starting from the Notice to Proceed:

TO BE DETERMINED

ATTACHMENT B

EXHIBIT A
684
City of Stockton
Legislation Text
File #: 24-1197, Version: 1
PROGRAM UPDATE: AVA COMMUNITY ENERGY

RECOMMENDATION
This is an informational presentation only. No action to be taken.

Summary
This is an informational presentation from Ava Community Energy, the City’s selected community choice power supplier.

No action to be taken.

City of Stockton Page 1 of 1 Printed on 11/26/2024
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Program Update:

Ava Community Energy
City Council Meeting
Agenda Item 15.1
December 3, 2024
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Ava Community Energy
City of Stockton
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Ava Community Energy Overview
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What is Ava Community Energy?
Ava Community Energy (Ava) is a local community
choice power supplier committed to providing Alameda
County and the City of Tracy with more renewable
energy at lower rates. Ava service will begin in the
cities of Stockton and Lathrop in April 2025.

Ava is the default provider of electricity generation (the power plants) for all customers (residential, commercial, and municipal) in the jurisdictions we serve. Per State law (AB 117), customers are automatically enrolled in
Ava’s service and are billed by PG&E.

As a not-for-profit public agency, Ava reinvests earnings back into the community to create green energy jobs,
local programs, and renewable power projects.
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On October 24, 2023,
East Bay Community Energy became
Ava Community Energy
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4 History in Brief
5 CCA Steering Committee convened & feasibility
study commissioned by Alameda County
2016 Ava formed as a Joint Powers Authority (JPA)
2018 Launched service to residential and commercial customers in 11 cities and unincorporated Alameda County
2019
2021
2022
Cities of Tracy, Pleasanton, and Newark join JPA
2023
2025
Began service to Cities of Tracy, Pleasanton, and Newark City of Stockton joins JPA
City of Lathrop joins JPA
Service begins to the Cities of Stockton and Lathrop
2024
Unincorporated San Joaquin County joins JPA; service
expected to begin in 2026 (pending CPUC certification)
2015
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6 Ava Member Jurisdictions
Alameda County and the City of Tracy are
members of Ava’s Joint Powers Authority
(JPA). In 2022, the City of Stockton joined the
JPA, quickly followed by the City of Lathrop in
2023. These two San Joaquin County cities will
begin service with Ava in 2025.

In July of 2024, Ava's Board approved the JPA
membership request of unincorporated San
Joaquin County. The County's membership is
currently pending certification by the California
Public Utilities Commission (CPUC), with
service expected to begin in 2026.
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How it Works
7 Ava Buys Clean Power
Ava buys from, and is
building, clean power
plants. Ava sells the power
to customers at low rates.

PG&E Delivers the
Power
Ava’s power is delivered to
customers by PG&E.

Customers pay PG&E for
power delivery as they
always have.

You Get the Power &
Benefits
You benefit from clean
energy, low rates, local
governance, and
innovative programs.
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Customer Billing: How it Works
8 Receive a Monthly Credit
As an Ava customer, PG&E issues a Generation
Credit each month. That credit is the amount PG&E
would have charged you for generation services,
and it offsets Ava charges.

It’s NOT an Additional Charge
Ava charges REPLACE the generation charges
that PG&E used to charge you. It is not a new or
additional charge compared to what you used to
pay.

Billing from PG&E You get a single bill each month from PG&E that includes Ava charges.
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Customer Billing: How it Works
9 Your bill comes for PG&E every month.

A. Your Account Number
You will need this number if you change your
Ava service level or choose PG&E service.

B. PG&E Delivery Charges
This is PG&E’s charge to deliver electricity
over their transmission lines, maintain
infrastructure, and provide other services
including their customer service and billing.

C. Ava Electric Generation Charges
This charge covers Ava’s cost of purchasing
clean electricity for customers, plus relevant
local taxes.

D. Total Amount Due
This is the total amount you pay to PG&E for
all charges from both PG&E and Ava.

Page 1 ends

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10 What Are My Options?
Bright Choice
~55% renewable energy
at rates 5% below PG&E
Renewable 100
100% solar & wind
energy at 1/4 cent per
kilowatt-hour above PG&E rates
PG&E
Default for all
Stockton customers
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What are the Benefits?
11 Lower Rates Local Control &
Investment
Sustainability Customer Choice
and Programs
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Customer Outreach & Marketing
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12 Outreach Timeline
13 February/March April/May June/July
Key Message: Savings on your
electricity bill are
coming - no action
required
Welcome to Ava,
you’ve been
automatically enrolled
to save 5% on
electricity compared
to PG&E
5% savings on your
bill compared to
PG&E standard rates
Channels:
● Enrollment notices (4 notices total)
● Advertising (digital, TV, out of home)
● Event outreach
● Social media
● Website land page
● Press release
● Opinion piece by elected
● Sponsorships (local orgs and sports teams)
● Key account outreach
● Partner channels (chambers of commerce, city,
CBOs)
● Webinars/office hours
● City Council presentation
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Enrollment Notice Examples
(will be Ava branded)
● Four (4) notices to every customer
● Variety of formats (e.g., letter; trifold brochure; postcard) ● Emails to customers with email on file
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14 Events outreach
15 February March April May June
Farmers
markets
Farmers
markets
Farmers
markets
Farmers
markets
Farmers
markets
Host a webinar Chinese New
Year
Celebration
Asparagus
Fest
Flavor Fest SJ County Fair
Cambodian
New Year
Cinco de Mayo Concerts in the
Park
Earth Day
Note: Ava will hire a full-time outreach coordinator in Stockton or Lathrop before 2025.
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Advertising
16 February/March
• Savings are coming - no action required
April/May
• Welcome to Ava
June/July
• Find the savings on your bill
Theme Placement
• Digital display
• Social media
• YouTube
• Streaming audio
• Comcast
• Print - Stockton Record
• Billboards
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Website landing page
17 • AvaEnergy.org/stockton
• AvaEnergy.org/lathrop
Will include all of the information
that customers need to know, can
be linked from City’s website or
social media
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Social media
18 NextDoor - post all Stockton and Lathrop neighborhoods Facebook - boost posts in Stockton and Lathrop
Instagram - ads in Stockton and Lathrop
Twitter - organic posts
LinkedIn - organic posts
Ava will provide a social media toolkit each month for:
• Cities of Stockton and Lathrop
• Local CBOs
• Local Chambers of Commerce
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Residential - English
• Intro to Ava
• Ava for NEM
Residential - Spanish
• Intro to Ava
Commercial - English
• promoted by Chamber of Commerce, City
Economic Development Department
• live and recorded for web
19 Webinars and Office Hours
Webinars
• promoted by City, CBOs, posted on social
• live and recorded for web
Office Hours
Do a short presentation and long Q&A. Vary the
locations (coffee shop, library, city hall, etc)
• Feb/March - focus on “coming soon”
• April/May - focus on “welcome”
• June/July - focus on understand your bill
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Thank you!
AvaEnergy.org
+1 833.699.3223
[email protected]
PoweredWithAva
Online
Phone
Email
Social
706
20 707
City of Stockton
Legislation Text
File #: 24-1196, Version: 1
PROGRAM UPDATE: TRANSFORMATIVE CLIMATE COMMUNITIES

RECOMMENDATION
This is an informational item only. No action to be taken.

Summary
This is an informational update from staff on the City’s Transformative Climate Communities (TCC) Program, Stockton Rising.

No action to be taken.

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City of Stockton
Legislation Text
File #: 24-1213, Version: 1

ADOPT RESOLUTION TO APPROVE A GRANT AWARD AND GRANT AGREEMENT FOR THE MIRACLE MILE PUBLIC SAFETY; MAINTENANCE SUBSTATION AND PARKING

IMPROVEMENT DEVELOPMENT PROJECT

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

1. Approve a grant award in the amount of $3,100,000 to the Miracle Mile Community Improvement District for the Maintenance Substation; Public Safety and Parking Improvement Development.

2. Authorize the City Manager, or designee, to execute a Grant Agreement for the Maintenance Substation; Public Safety and Parking Improvement Development.

3. Authorize the City Manager, or designee, to execute a Performance Deed of Trust and Security Agreement for the property located at 230-250 Dorris Place and 231 Bedford Road (APN 113-364-050).

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

Summary
Section 19.561, subdivision (g) (46) of the Budget Act of 2023 appropriated $3,100,000 from the State General Fund to Caltrans to be allocated to the City of Stockton for the Redevelopment on the Miracle Mile: Public Safety/Maintenance Substation/Parking.

This funding will allow for the acquisition and renovations to establish a Maintenance Substation as well as other maintenance, safety, and parking improvements in the Miracle Mile corridor (Attachment A - Vicinity Map).

In September 2024, Public Works issued a Notice of Funding Availability (NOFA) in the amount of $3,100,000. The Miracle Mile Community Improvement District (MMCID) responded to the NOFA with a funding request in the amount of $3,100,000 for property acquisition to establish a Maintenance Substation and to perform other development improvements (Attachment B - Acquisition and Development Budget).

It is recommended that Council adopt a resolution approving a grant award in the amount of $3,100,000 to the MMCID to acquire and establish a Maintenance Substation and to complete other identified development improvements. It is also recommended that Council authorize the City Manager to execute a Grant Agreement for award of funding.

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File #: 24-1213, Version: 1
It is further recommended that Council authorize the City Manager to execute a Performance Deed of Trust and Security Agreement for the property located at 230-250 Dorris Place and 231 Bedford Road (APN 113-364-050).

DISCUSSION
Background
Section 19.561, subdivision (g) (46) of the Budget Act of 2023 appropriated $3,100,000 from the State General Fund for the Redevelopment on the Miracle Mile: Public Safety/Maintenance Substation/Parking.

In September 2024, Public Works issued a Single Available Source NOFA in the amount of $3,100,000.

Present Situation
On October 31, 2024, the City received a response to the NOFA from the MMCID, requesting a grant funding for the following categories:
· Maintenance Substation acquisition and renovations $1,665,000 · Public Safety improvements $750,000
· Parking improvements/maintenance $685,000
TOTAL $3,100,000
The proposed property to be acquired and renovated to a Maintenance Substation is located at 230- 250 Dorris Place and 231 Bedford Road (APN 113-364-050). The property is 0.16 acres, zoned General Commercial and is well suited for a Maintenance Substation. Any remaining funds not utilized for items noted in the Acquisition and Development Budget will be reallocated to the Miracle Mile Pedestrian Safety Improvements & Revitalization, Project No. WT24043.

The MMCID will be required to enter into a Grant Agreement. The Grant Agreement outlines the roles and responsibilities of the parties along with the requirements and conditions related to the grant funding.

It is recommended that Council adopt a resolution approving a grant award in the amount of $3,100,000 to the MMCID to acquire and establish a Maintenance Substation and complete other identified development improvements (Attachment B - Acquisition and Development Budget). It is also recommended that Council authorize the City Manager to execute a Grant Agreement for award of funding.

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File #: 24-1213, Version: 1
Upon execution of the Grant Agreement, MMCID will proceed with the acquisition and other elements of the funding request. It is anticipated that MMCID could complete implementation of all funding categories noted above by mid-2026.

FINANCIAL SUMMARY
There is sufficient budget available in the Redevelopment on the Miracle Mile: Public Safety/Maintenance Substation/Parking Improvement, Project No. WT24049, to award the proposed grant.

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

Attachment A - Vicinity Map
Attachment B - Acquisition and Development Budget
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Public Safety
Security Camera Expansion Security System Hardware, Software, Installation and Service/Warranty $ 165,000
Façade/Safety Facilitator $ 235,000
Pedestrian Lighting $ 350,000
Subtotal $ 750,000
Maintenance
Acquisition of Maintenance
Substation
Maintenace substation acquisition, improvements and
maintenance (includes single available NOFA to secure location for maintenance)
$ 1,500,000
Trash Receptacles Victor Stanley trash receptacle, can & installation (additional 20 cans to district for zones 2 & 3) $ 30,000
Enclosed Garbage Corrals Enclosed Garbage Corrals (4), with existing corral refitted with top (1). Estimate $30,000 per corral, and $15,000 for retrofit. $ 135,000 Subtotal $ 1,665,000
Parking Improvements/Maintenance
Parking Microsurfacing
City of Stockton to retain funding for parking lotrepair and maintenance projects (slurry seals cape seals,micro-surfacing overlays, pulverization, and full depth reclamations with cement) and enhanced lighting initiatives as funding will allow.

Initial parking lot priority is as follows:
$ 550,000

1. City lot J (Dorris Place)

2. City lot G & H (Elm/Walnut)

3. City Lot F (Walnut/Alder)

4. Lot D & E (Alder/Maple)

5. Lot B (Pine/Adams)

6. Lot A, C, K Enhanced Lighting
Maintenance District maintenance projoects, including planter landscape design, backflow units, irrigations and planting. $ 135,000 Subtotal $ 685,000
Total $ 3,100,000
Project ID PLBP-5008(215)
Advantage ID 1024000249

2.1 Section 19.561, subdivision (g)(46) of the Budget Act of 2023 (the Act) appropriated $3,100,000 (the Funds) from the State General Fund to Caltrans, to be allocated to City for the Redevelopement on the Miracle Mile: Public Safety/Maintenance Substation/Parking.

ACQUISITION & DEVELOPMENT BUDGET
ATTACHMENT B 722
Resolution No.

STOCKTON CITY COUNCIL

APPROVAL OF A GRANT AWARD AND GRANT AGREEMENT FOR THE MIRACLE MILE PUBLIC SAFETY; MAINTENANCE SUBSTATION AND PARKING

IMPROVEMENT DEVELOPMENT PROJECT
Section 19.561, subdivision (g) (46) of the Budget Act of 2023 appropriated $3,100,000 from the State General Fund to Caltrans to be allocated to the City of Stockton for the Redevelopment on the Miracle Mile: Public Safety/Maintenance Substation/Parking; and
In September 2024, Public Works issued a Notice of Funding Availability (NOFA) in the amount of $3,100,000; and
On October 31, 2024, the City received a response to the NOFA from the Miracle Mile Community Improvement District (MMCID) requesting a grant funding in the amount of $3,100,000 for property acquisition to establish a Maintenance Substation and to perform other development improvements; and
The proposed property to be acquired and renovated to a Maintenance Substation is located at 230-250 Dorris Place and 231 Bedford Road (APN 113-364-050). The property is 0.16 acres, zoned General Commercial and is well suited for a Maintenance Substation; and
MMCID proposes to use the requested funding as follows:
 Maintenance Substation Acquisition and Renovations $1,665,000  Public Safety Improvements $750,000
 Parking Improvements/Maintenance $685,000
TOTAL $3,100,000
It is anticipated that MMCID could complete implementation of all funding categories noted above by mid-2026; now, therefore,

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

1. The City Council approves a grant award in the amount of $3,100,000 to the MMCID for the purpose of acquiring property located at 230-250 Dorris Place and 231 Bedford Road (APN 113-364-050) to establish a Maintenance Substation and to perform other development improvements.
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2. The City Council authorizes the City Manager, or designee, to execute a Grant Agreement for the Maintenance Substation; Public Safety and Parking Improvement Development, a copy of which is attached as Exhibit 1 and incorporated by this reference.

3. The City Council authorizes the City Manager, or designee, to execute a Performance Deed of Trust and Security Agreement for the property located at 230-250 Dorris Place and 231 Bedford Road (APN 113-364-050), a copy of which is attached as Exhibit 2 and incorporated by this reference.

4. The City Manager, or designee, is hereby authorized to execute all documents and to take appropriate and necessary actions to carry out the purpose and intent of this Resolution.

PASSED, APPROVED, and ADOPTED December 3, 2024 .

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

KATHERINE ROLAND, CMC, CPMC
City Clerk of the City of Stockton
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EXHIBIT 1
2048\15\3700743.3 1

GRANT AGREEMENT
FOR
MIRACLE MILE PUBLIC SAFETY; MAINTENANCE SUBSTATION AND

PARKING IMPROVEMENT DEVELOPMENT PROJECT
By and Between

THE CITY OF STOCKTON
a municipal corporation
and

MIRACLE MILE COMMUNITY IMPROVEMENT DISTRICT
a California 501 (c)(3) nonprofit public benefit corporation for

ACQUISITION OF DORRIS PLACE AND BEDFORD ROAD PROPERTY
230-250 Dorris Place AND 231 Bedford Road, Stockton, CA 95210 Public Works Notice of Funding Availability (NOFA)
Miracle Mile Substation Property Acquisition [$3,100,000] Dated as of _________________
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EXHIBIT 1
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GRANT AGREEMENT
NOFA
Miracle Mile Substation Property Acquisition
This Grant Agreement (the “Agreement”) is entered into as of, _____________ _____, 2024 (the “Effective Date”), by and between the City of Stockton, a municipal corporation (the “City”), and Miracle Mile Community Improvement District, a California 501 (c)(3) nonprofit public benefit corporation (the "Grantee").

RECITALS
A. City has received funding through Section 19.561, subdivision (g)(46) of the Budget Act of 2013 (the Act) in the amount $3,100,000 (the Act Funding) from the State General Fund for redevelopment on the Miracle Mile: Public Safety/ Maintenance Substation / Parking.

B. The Grantee intends to purchase land located at 230-250 Dorris Place and 231 Bedford Road, Stockton, CA 95210, more particularly described in the attached Exhibit A (the "Property"). Grantee intends to develop the Property into a Miracle Mile Maintenance Substation. Grantee will also perform other public safety, maintenance and parking improvements in support of the Miracle Mile Improvement District’s (“District”) goals in the area (“Development").

C. City wishes to grant, and Grantee wishes to accept, Three Million One Hundred Thousand Dollars ($3,100,000) of designated Funds (the “Act Funding”) for eligible expenses to acquire and develop the Property and complete other approved grant funding improvements.

D. Through this Agreement, the City is imposing restrictions on the Development.

F. As more fully set forth in Section 7.17, this Agreement does not authorize the granting of land use approvals for the Development or the construction of the Development. To the extent such actions require discretionary approval by the City in accordance with applicable law, such actions may be authorized and will become possible only upon subsequent discretionary action of the City.

NOW, THEREFORE, in consideration of the recitals hereof and the mutual promises and covenants set forth in this Agreement, the Parties agree as follows:

ARTICLE 1

DEFINITIONS AND EXHIBITS
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EXHIBIT 1
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Section 1.1 Definitions. The following capitalized terms have the meanings set forth in this Section 1.1 wherever used in this Agreement unless otherwise provided:
"Agreement" shall mean this Grant Agreement between the City and the Grantee.
"Approved Financing" shall mean all the funds obtained by the Grantee and approved by the City for the purpose of financing the acquisition and other Grant funding improvements of the Development.
“Business Day” shall mean days other than Saturday, Sunday, or a Federal or State holiday.
“Act Funds” shall mean City funds received through Section 19.561, subdivision (g)(46) of the Budget Act of 2013 (the Act) in the amount $3,100,000
"City" shall mean the City of Stockton, a charter city and municipal corporation, represented by the City Manager, acting by and through the Public Works Department (“PWD”). Whenever this Agreement provides for a submission to the City or an approval or action by the City, this Agreement refers to submission to or approval or action by the PWD Director unless otherwise indicated.
“City Council” shall mean the council of the City of Stockton. “City Manager” shall mean the City Manager of the City of Stockton. "Deed of Trust" shall mean the Performance Deed of Trust that will encumber the Development to secure Grantee's real property obligations under this Agreement.
"Default" shall have the meaning set forth in Section 6.1 below. "Development" shall mean the Grantee's interest in the Property and any improvements developed on the Property.
“Effective Date” means the date of this agreement as first written above. "Improvements" shall mean Improvements needed to remodel and/or improve the property at 230-250 Dorris Place and 231 Bedford Road, and other approved grant funded improvements.
“Grant Amount” shall mean $3,100,000.
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"Grant Documents" shall mean this Agreement, the Deed of Trust, and all documents required to be executed by the Grantee in connection with the transactions contemplated by this Agreement.
“Miracle Mile Improvement District” shall mean the Community Improvement District formed in the City of Stockton pursuant to Stockton Municipal Code Chapter 3.96.
“Owners’ Association” shall mean the owners’ association for the Miracle Mile Improvement District formed pursuant to Stockton Municipal Code Chapter 3.96.
"Parties" shall mean the City and Grantee, collectively. "Party" shall mean the City or Grantee, individually.
“Term" shall mean the term of this Agreement, which shall consist of the period commencing as of the Effective Date and expiring on the earlier of:
(1) Fifty-five (55) years from the date of the issuance of the occupancy permit for the Development
"Transfer" shall have the meaning set forth in Section 4.11 below.

Section 1.2 Exhibits. The following exhibits are attached to this Agreement and incorporated into this Agreement by this reference:

Exhibit A: Legal Description of the Property
Exhibit B: Acquisition and Development Budget
Exhibit C: Insurance Requirements
ARTICLE 2

GRANT PROVISIONS
Section 2.1 Grant. Subject to satisfaction of the conditions set forth in Section 2.4, the City shall grant to the Grantee the sum of not to exceed $3,100,000 for the purposes set forth in Section 2.2 of this Agreement.

Section 2.2 Use of Funds. The Grantee shall use the Grant funds to acquire the Property, renovate, improve and maintain the Property for purposes of a Miracle Mile Maintenance Substation, and perform public safety and parking improvements consistent with Exhibit B. The Grantee shall not use the Grant funds for any other purpose without the prior written consent of the City.

Section 2.3 Security.
(a) Grantee shall secure its obligation to fulfill all obligations of this Agreement by executing and recording against the Property the Deed of Trust. 728
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Section 2.4 Conditions Precedent to Property Acquisition Disbursement.

The City will disburse the Grant funds into an escrow that has been established with the title company that is facilitating the sale of the Property (the “Title Company”).

The City will not be obligated to disburse the Grant funds into escrow with the Title Company or take any other action under the Grant Documents unless the following conditions precedent are satisfied prior to such disbursement of the Grant:
(a) The seller of the Property has deposited a deed in escrow transferring fee title to the Property to Grantee.
(b) There exists no Default which has occurred and is continuing at the time the disbursement is to be made, and no act, failure, omission, or condition has occurred and is continuing at the time the disbursement is to be made that would constitute an Event of Default under this Agreement.
(c) The Grantee has executed and delivered to the City all documents, instruments, and policies required under the Grant Documents. (d) The Grantee has furnished the City with evidence of the insurance coverage meeting the requirements of Section 4.11 below. (e) The Grantee or Title Company has delivered to City, to City’s reasonable satisfaction, a detailed settlement statement for the Property, including identification of the seller and buyer.
(f) The Grantee has provided the City a written draw request with instructions for wiring the Grant funds into escrow.

Notwithstanding any other provisions of this Agreement, the City shall have no further obligation to disburse any portion of the Grant to the Grantee following: (i) termination of this Agreement; or (ii) notification by the City to the Grantee of a Default under the terms of this Agreement until such time as the Default is cured. Funding disbursements for other non-acquisition improvements are covered under Article 3.

ARTICLE 3

DISBURSEMENT AND CONSTRUCTION OF THE

DEVELOPMENT
Section 3.1 Disbursement of Funding. Disbursement of Funds are on a reimbursement basis. The City shall not be obligated to make any disbursements of the Funds or take any other action under the Grant Documents unless the following conditions precedent are satisfied prior to each such disbursement of the Funds (a) Developer has satisfied the obligations stated in Section 2.4 (b) – (d);
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(b) The Developer has complied with all reporting requirements set forth in this Agreement;
(c) The City has received a written request for reimbursement from the Developer, including certification that the condition set forth in Section 3.1(a) continues to be satisfied, and setting forth the proposed uses of funds consistent with the Approved Development Budget, the amount of funds needed, and, where applicable, a copy of the bill or invoice covering a cost incurred or to be incurred.

Developer shall apply the disbursement for the purpose(s) requested. The City shall exercise best efforts to disburse funds within thirty (30) days of receipt of the draw request and satisfaction of applicable disbursement preconditions; and Notwithstanding any other provisions of this Agreement, the City shall have no further obligation to disburse any portion of the Grant to the Developer following: (i) termination of this Agreement; or (ii) notification by the City to the Developer of a Default under the terms of this Agreement until such time as the Default is cured.

Section 3.2 Completion of Construction/Rehabilitation. Grantee shall diligently pursue construction of Grantee’s proposed improvements in Exhibit B. Grantee shall provide City with a schedule of completion for improvement elements in sufficient detail and update the same at a mutually agreed interval. Work shall be performed in accordance with the plans and specifications approved by the City, if required, and/or follow Stockton Municipal Code, or other established approval requirement. Completion of work shall be evidenced by the City’s Building and inspection Division notice of completion.

Section 3.3 Development Pursuant to Plans and laws; Prevailing Wages.
(a) Grantee shall develop the Development in conformance with the plans and specifications approved by the City, subject to any approved change orders.

Grantee shall notify the City in a timely manner of any material changes in the work required to be performed under this Agreement, including any material additions, changes, or deletions to the Scope of Work approved by the City. A written change order authorized by the City must be obtained before any of the following changes, additions, or deletions in work for the Development: (1) any change in the work the cost of which exceeds One Hundred Thousand Dollars ($100,000); or (2) any set of changes in the work the cost of which cumulatively exceeds Two Hundred Thousand Dollars ($200,000); or (3) any material change in building materials or equipment, specifications, as provided for in the Acquisition and Development Budget (Exhibit B) approved by the City. Consent to any additions, changes, or deletions to the work shall not relieve or release Grantee from any other obligations under this Agreement. City shall utilize best efforts to approve or disapprove change orders within five (5) working days of receipt of a request for approval. City shall not unreasonably withhold approval of change order(s).
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in force or that may be enacted hereafter; (ii) the prevailing wage provisions of the federal Davis-Bacon Act and implementing rules and regulations to the extent applicable, (iii) the prevailing wages provision and related requirements of California Labor Code section 1720 and 1777.5 et seq. to the extent applicable, (, rules and regulations of any fire marshal, health officer, building inspector, or other officers of every governmental agency now having or hereafter acquiring jurisdiction. The work shall proceed only after procurement of each permit, license, or other authorization that may be required by any governmental agency having jurisdiction, and Grantee shall be responsible for the procurement and maintenance thereof, as may be required of Grantee and all entities engaged in work on the Development.
(c) Grantee shall indemnify, hold harmless, and defend (with counsel reasonably acceptable to the City) the City against any claim for damages, compensation, fines, penalties or other amounts arising out of the failure or alleged failure of any person or entity (including Grantee, its contractor, and subcontractors) to pay prevailing wages as determined pursuant to Labor Code sections 1720 et seq., to employ apprentices pursuant to Labor Code sections 1777.5 et seq., and implementing regulations or comply with the other applicable provisions of Labor Code sections 1720 et seq., 1777.5 et seq., and implementing regulations of the Department of Industrial Relations in connection with the construction of the Development or any other work undertaken or in connection with the Property. This Section 3.5(c) shall survive the expiration of the Term and reconveyance of the Deed of Trust.

Section 3.4 Equal Opportunity. During the development of the Development, there shall be no discrimination on the basis of race, color, creed, religion, age, gender, gender identity, sexual orientation, marital status, national origin, ancestry, or disability in the hiring, firing, promoting, or demoting of any person engaged in the construction work.

Section 3.5 Progress Report. Until such time as Grantee has completed construction of the Development, Grantee shall provide the City with quarterly progress reports regarding the status of the construction of the Development.

Section 3.6 Construction Responsibilities.

It shall be the responsibility of Grantee to coordinate and schedule the work to be performed so that commencement and completion of construction will take place in accordance with this Agreement. Grantee shall also coordinate with any applicable City projects in the area as required.
(a) Grantee shall be solely responsible for all aspects of Grantee's conduct in connection with the Development, including (but not limited to) the quality and suitability of the plans and specifications, the supervision of construction work, and the qualifications, financial condition, and performance of all architects, engineers, contractors, subcontractors, suppliers, consultants, and property managers. Any review or inspection undertaken by the City with reference to the Development is solely for the purpose of determining whether Grantee is properly discharging its obligations to the City and should not be relied upon by Grantee or by any third parties as a warranty or 731
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representation by the City as to the quality of the design or construction of the Development.

Section 3.7 Mechanics Liens, Stop Notices, and Notices of Completion.

(a) If any claim of lien is filed against the Property or a stop notice affecting the Grant is served on the City or any other lender or other third parties in connection with the Development, then Grantee shall, within twenty (20) days after such filing or service, either pay and fully discharge the lien or stop notice, effect the release of such lien or stop notice by delivering to the City a surety bond in sufficient form and amount, or provide the City with other assurance satisfactory to the City that the claim of lien or stop notice will be paid or discharged.
(b) If Grantee fails to discharge any lien, encumbrance, charge, or claim in the manner required in this Section, then in addition to any other right or remedy, the City may (but shall be under no obligation to) discharge such lien, encumbrance, charge, or claim at Grantee's expense. Alternately, the City may require Grantee to immediately deposit with the City the amount necessary to satisfy such lien or claim and any costs, pending resolution thereof. The City may use such a deposit to satisfy any claim or lien that is adversely determined against Grantee.
(c) Grantee shall file a valid notice of cessation or notice of completion upon cessation of development on the Development for a continuous period of thirty (30) days or more and take all other reasonable steps to forestall the assertion of claims of lien against the Property. Grantee authorizes the City, but without any obligation, to record any notices of completion or cessation of labor, or any other notice that the City deems reasonably necessary or desirable to protect its interest in the Development and Property.

Section 3.8 Inspection. Subject to the rights of tenants, if any, Grantee shall permit and facilitate, and shall require its contractors to permit and facilitate, observation and inspection at the Development by the City and by public authorities during reasonable business hours, upon at least seventy-two (72) hours' advance notice, for the purposes of determining compliance with this Agreement.

ARTICLE 4

GRANT REQUIREMENTS
Section 4.1 Applicability. The Grantee shall comply with this Article 4 throughout the Term.

Section 4.2 Information. Grantee shall provide any information reasonably requested by the City in connection with the Development.

Section 4.3 Records.
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(a) Grantee shall maintain complete, accurate, and current records pertaining to the Development for a period of five (5) years after the creation of such records and shall permit any duly authorized representative of the City to inspect and copy records upon seventy-two (72) hours’ notice. Such records shall include all invoices, receipts, and other documents related to expenditures from the Grant funds.

Records must be kept accurate and current.
(b) The City shall notify Grantee of any records it deems insufficient.

Grantee shall have twenty-one (21) calendar days after the receipt of such a notice to correct any deficiency in the records specified by the City in such notice, or if a period longer than twenty-one (21) calendar days is reasonably necessary to correct the deficiency, then Grantee shall begin to correct the deficiency within twenty-one (21) calendar days and correct the deficiency as soon as reasonably possible.

Section 4.4 Audits. Grantee shall make available for examination at reasonable intervals and upon seventy-two (72) hours’ notice during normal business hours to City all books, accounts, reports, files, and other papers or property with respect to all matters covered by this Agreement, and shall permit City to audit, examine, and make excerpts or transcripts from such records. In its reasonable discretion, City may make audits of any conditions relating to this Agreement.

Section 4.5 Hazardous Materials.
(a) Grantee shall keep and maintain the Property in material compliance with and shall not cause or permit the Property to be in material violation of any federal, state, or local laws, ordinances, or regulations relating to industrial hygiene or to the environmental conditions on, under or about the Property including, but not limited to, soil and groundwater conditions. Grantee shall not use, generate, manufacture, store or dispose of on, under, or about the Property or transport to or from the Property any flammable explosives, radioactive materials, hazardous wastes, toxic substances or related materials, including without limitation, any substances defined as or included in the definition of "hazardous substances," hazardous wastes," "hazardous materials," or "toxic substances" under any applicable federal or state laws or regulations (collectively referred to hereinafter as "Hazardous Materials") except such of the foregoing as may be customarily used in the construction of projects like the Development or kept and used in and about a residential property of this type. (b) Grantee shall immediately advise the City in writing if at any time it receives written notice of (i) any and all enforcement, cleanup, removal or other governmental or regulatory actions instituted, completed or threatened against Grantee or the Property pursuant to any applicable federal, state or local laws, ordinances, or regulations relating to any Hazardous Materials, ("Hazardous Materials Law"); (ii) all claims made or threatened by any third party against Grantee or the Property relating to damage, contribution, cost recovery compensation, loss or injury resulting from any Hazardous Materials (the matters set forth in clauses (i) and (ii) above are hereinafter referred to as "Hazardous Materials Claims"); and (iii) Grantee's discovery of any occurrence or condition on any real property adjoining or in the vicinity of the Property that could cause the Property or any part thereof to be classified as "border-zone 733
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property" under the provision of California Health and Safety Code sections 25220 et seq., or any regulation adopted in accordance therewith, or to be otherwise subject to any restrictions on the ownership, occupancy, transferability or use of the Property under any Hazardous Materials Law.
(c) The City shall have the right to join and participate in, as a party if it so elects, any legal proceedings or actions initiated in connection with any Hazardous Materials Claims and to have its reasonable attorneys' fees in connection therewith paid by Grantee. Grantee shall indemnify and hold harmless the City and its board members, officers, employees, agents, successors and assigns from and against any loss, damage, cost, expense or liability directly or indirectly arising out of or attributable to the use, generation, storage, release, threatened release, discharge, disposal, or presence of Hazardous Materials on, under, or about the Property including without limitation: (a) all foreseeable consequential damages; (b) the costs of any required or necessary repair, cleanup or detoxification of the Property and the preparation and implementation of any closure, remedial or other required plans; and (c) all reasonable costs and expenses incurred by the City in connection with clauses (a) and (b), including but not limited to reasonable attorneys' fees. This obligation to indemnify shall survive termination of this Agreement.
(d) Without the City’s prior written consent, which shall not be unreasonably withheld, Grantee shall not take any remedial action in response to the presence of any Hazardous Materials on, under or about the Property, nor enter into any settlement agreement, consent decree, or other compromise in respect to any Hazardous Material Claims, which remedial action, settlement, consent decree or compromise might, in the City’s reasonable judgment, impair the value of the City’s security hereunder; provided, however, that the City’s prior consent shall not be necessary in the event that the presence of Hazardous Materials on, under, or about the Property either poses an immediate threat to the health, safety or welfare of any individual or is of such a nature that an immediate remedial response is necessary and it is not reasonably possible to obtain the City’s consent before taking such action, provided that in such event Grantee shall notify the City as soon as practicable of any action so taken. The City agrees not to withhold its consent, where such consent is required hereunder, if either (i) a particular remedial action is ordered by a court of competent jurisdiction, (ii) Grantee will or may be subjected to administrative, civil or criminal sanctions or penalties if it fails to take a required action; (iii) Grantee establishes to the reasonable satisfaction of the City that there is no reasonable alternative to such remedial action which would result in less impairment of the City’s security hereunder; or (iv) the action has been agreed to by the City.
(e) Grantee hereby acknowledges and agrees that (i) this Section is intended as the City’s written request for information (and Grantee's response) concerning the environmental condition of the Property as required by California Code of Civil Procedure section 726.5, and (ii) each representation and warranty in this Agreement (together with any indemnity obligation applicable to a breach of any such representation and warranty) with respect to the environmental condition of the Property 734
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is intended by the Parties to be an "environmental provision" for purposes of California Code of Civil Procedure section 736.
(f) In the event that any portion of the Property is determined to be "environmentally impaired" (as that term is defined in California Code of Civil Procedure section 726.5(e)(3)) or to be an "affected parcel" (as that term is defined in California Code of Civil Procedure section 726.5(e)(1)), then, without otherwise limiting or in any way affecting the City’s or the trustee's rights and remedies under the Deed of Trust, the City may elect to exercise its rights under California Code of Civil Procedure section 726.5(a) to (1) waive its lien on such environmentally impaired or affected portion of the Property and (2) exercise (a) the rights and remedies of an unsecured creditor, including reduction of its claim against the Grantee to judgment, and (b) any other rights and remedies permitted by law. For purposes of determining the City’s right to proceed as an unsecured creditor under California Code of Civil Procedure section 726.5(a), the Grantee shall be deemed to have willfully permitted or acquiesced in a release or threatened release of hazardous materials, within the meaning of California Code of Civil Procedure section 726.5(d)(1), if the release or threatened release of hazardous materials was knowingly or negligently caused or contributed to by any lessee, occupant, or user of any portion of the Property and the Grantee knew or should have known of the activity by such lessee, occupant, or user which caused or contributed to the release or threatened release. All costs and expenses, including (but not limited to) attorneys' fees, incurred by the City in connection with any action commenced under this paragraph, including any action required by California Code of Civil Procedure section 726.5(b) to determine the degree to which the Property is environmentally impaired, plus interest thereon at the lesser of ten percent (10%) or the maximum rate permitted by law, until paid, shall be added to the indebtedness secured by the Deed of Trust and shall be due and payable to the City upon their demand made at any time following the conclusion of such action.

Section 4.6 Maintenance and Damage.
(a) During the course of both development and operation of the Development, Grantee shall maintain the Development in good repair, reasonable wear and tear excepted. If there arises a condition in contravention of this requirement, and if Grantee has not cured such condition within thirty (30) days after receiving notice of such a condition, or such reasonable time thereafter in the event such condition cannot reasonably be cured within 30 days, then in addition to any other rights available to the City, the City shall have the right to perform all acts necessary to cure such condition and to establish or enforce a lien or other encumbrance against the Property.

Section 4.7 Fees and Taxes.

Grantee shall be solely responsible for payment of all fees, assessments, taxes, charges, and levies imposed by any public authority or utility company with respect to the Property or the Development to the extent owned by Grantee and shall pay such charges prior to delinquency. However, Grantee shall not be required to pay and discharge any such charge so long as: (a) the legality thereof is being contested diligently and in good faith 735
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and by appropriate proceedings, and (b) if requested by the City, Grantee deposits with the City any funds or other forms of assurance that the City in good faith from time to time determines appropriate to protect the City from the consequences of the contest being unsuccessful.

Section 4.8 Notice of Litigation.

Grantee shall promptly notify the City in writing of any litigation materially and adversely affecting Grantee or the Property and of any claims or disputes that involve a material risk of such litigation.

Section 4.9 Mandatory Language in all Subsequent Deeds, Leases and Contracts.

All deeds, leases, or contracts entered into by the Grantee as to any portion of the Property shall contain the following language:

(a) In Deeds:
"Grantee herein covenants by and for itself, its successors and assigns that there shall be no discrimination against or segregation of a person or of a group of persons on account of race, color, religion, creed, disability, sex, sexual orientation, gender identity, marital status, ancestry or national origin in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the property herein conveyed nor shall the Grantee or any person claiming under or through the Grantee establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees in the property herein conveyed. The foregoing covenant shall run with the land." (b) In Leases:
"The lessee herein covenants by and for the lessee and lessee's heirs, personal representatives and assigns and all persons claiming under the lessee or through the lessee that his lease is made subject to the condition that there shall be no discrimination against or segregation of any person or of a group of persons on account of race, color, religion, creed, disability, sex, sexual orientation, gender identity, marital status, ancestry or national origin in the leasing, subleasing, transferring, use, occupancy, tenure or enjoyment of the land herein leased nor shall the lessee or any person claiming under or through the lessee establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, sub-lessees, subtenants, or vendees in the land herein leased." (c) In Contracts:
"There shall be no discrimination against or segregation of any person or group of persons on account of race, color, religion, creed, disability, sex, sexual orientation, gender identity, marital status, ancestry or national origin in the sale, lease, sublease, 736
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transfer, use, occupancy, tenure or enjoyment of the property nor shall the transferee or any person claiming under or through the transferee establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sub-lessees, or vendees of the land."
Section 4.10 Transfer.
(a) For purposes of this Agreement, "Transfer" shall mean any sale, assignment, or transfer, whether voluntary or involuntary, of: (i) any rights and/or duties under this Agreement, and/or (ii) any interest in the Development, including (but not limited to) a fee simple interest, a joint tenancy interest, a life estate, a partnership interest, a leasehold interest, a security interest, or an interest evidenced by a land contract by which possession of the Development is transferred and Grantee retains title.

The term "Transfer" shall exclude the following (i) transfer of the Property and/or the Development to the City; (ii) the leasing of the Property to a limited partnership, limited liability company, or a nonprofit public benefit corporation which will own the improvements on the Property and of which the Grantee is a partner, member, owner, or affiliate; (iii) a transfer of the improvements on the property to a limited partnership, limited liability company, or a nonprofit public benefit corporation of which the Grantee is a partner, member, owner, or affiliate; or (v) transfer of the Property, the Development, or an ownership interest in the entity that leases the land and owns the Improvements on the land to Miracle Mile Community Improvement District, a California 501 (c)(3) nonprofit organization (the "Grantee"), provided that the Grant documents are assigned to such transferee and such transferee assumes the benefits and obligations under the Grant Documents.
(b) No Transfer shall be permitted without the prior written consent of the City, which the City may withhold in its sole discretion. (c) City’s Purchase Option. Grantee hereby grants to City the right and option, on any date prior to the expiration of the Agreement, upon written notice to the Grantee, to purchase the Property at a price of one dollar ($1.00), if, during the term of this Agreement, any of the following conditions occur:
i. Grantee desires to transfer the Property or the Development during the term of this Agreement;
ii. Bankruptcy or insolvency of the Grantee;
iii. Dissolution of or intent to dissolve the Grantee;
iv. Disestablishment, or expiration without renewal, of the District; v. Cessation of Grantee as the Owners’ Association for the District. 737
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In the event any of the conditions specified in Section 4.10(c)(i)-(iii) occur, Grantee must notify the City in writing.

If City elects in writing not to exercise the option to purchase such interest, or within 60 days from receiving Grantee’s notice, where notice is required, or within 60 days of a triggering event specified in Section 4.10(c)(iv)-(v), fails to provide notice to Grantee of an intention to exercise the option to purchase, Grantee shall be free to convey or transfer such interest subject to the notice and approval requirement specified in Section 4.10(b).

Section 4.11 Insurance Requirements. Subject to approval by the City's Risk Manager of the insurers and policy forms, Grantee must obtain and maintain, or cause to be obtained and maintained, insurance and bonds as set forth in Exhibit C throughout the Term at no expense to the City.

Section 4.12 Revenue of the Property or Development. Revenue derived from the Property or Development shall be directed to the District.

ARTICLE 5

REPRESENTATIONS AND WARRANTIES OF GRANTEE

Section 5.1 Representations and Warranties. The Grantee hereby represents and warrants to the City as follows:
(a) Organization. Grantee is duly organized, validly existing, and in good standing under the laws of the State of California and has the power and authority to own its property and carry on its business as now being conducted; (b) Authority of Grantee. Grantee has full power and authority to execute and deliver this Agreement, the other Grant Documents, and all other documents or instruments executed and delivered, or to be executed and delivered, pursuant to this Agreement, and to perform and observe the terms and provisions of all of the above;
(c) Authority of Persons Executing Documents. This Agreement and the Grant Documents and all other documents or instruments executed and delivered, or to be executed and delivered, pursuant to this Agreement have been executed and delivered by persons who are duly authorized to execute and deliver the same for and on behalf of the Grantee, and all actions required under Grantee's organizational documents and applicable governing law for the authorization, execution, delivery and performance of this Agreement and the Grant Documents and all other documents or instruments executed and delivered, or to be executed and delivered, pursuant to this Agreement, have been duly taken (to the extent such actions are required as of the date of execution and delivery of the above-named documents); 738
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(d) Valid Binding Agreements. This Agreement and the Grant Documents and all other documents or instruments which have been executed and delivered pursuant to or in connection with this Agreement constitute or, if not yet executed or delivered, will when so executed and delivered constitute, legal, valid and binding obligations of the Grantee enforceable against it in accordance with their respective terms, subject to the laws affecting creditors’ rights and principles of equity; (e) No Breach of Law or Agreement. Neither the execution nor delivery of this Agreement and the Grant Documents or of any other documents or instruments executed and delivered, or to be executed or delivered, pursuant to this Agreement, nor the performance of any provision, condition, covenant, or other terms hereof or thereof, will conflict with or result in a breach of any statute, rule or regulation, or any judgment, decree or order of any court, board, commission or agency whatsoever binding on the Grantee, or any provision of the organizational documents of the Grantee, or will conflict with or constitute a breach of or a default under any agreement to which the Grantee is a party or will result in the creation or imposition of any lien upon any assets or property of the Grantee, other than liens established pursuant hereto; (f) Compliance With Laws; Consents and Approvals. The
predevelopment, ownership, and development of the Property will comply in all material respects with all applicable laws, ordinances, rules, and regulations of federal, state, and local governments and agencies and with all applicable directions, rules, and regulations of the fire marshal, health officer, building inspector and other officers of any such government or City;
(g) [omitted]
(h) Pending Proceedings. The Grantee is not in default under any law or regulation or under any order of any court, board, commission or city agency whatsoever, and there are no claims, actions, suits or proceedings pending or, to the knowledge of the Grantee, threatened against or affecting the Grantee or the Property, at law or in equity, before or by any court, board, commission or agency whatsoever which might if determined adversely to the Grantee, materially affect the security to be given to the City pursuant hereto;
(i) Title to Property. At the time of recordation of the Deed of Trust, the Grantee will have fee interest to the Property and there will exist thereon or with respect thereto no mortgage, lien, pledge, or other encumbrance of any character whatsoever other than those liens approved in writing by the City, liens for current real property taxes and assessments not yet due and payable, and liens in favor of the City.

ARTICLE 6

NO FAULT TERMINATION, DEFAULT AND REMEDIES
Section 6.1 No Fault Termination and Default.

No Fault Termination. The following shall constitute a "Non-Default Basis for Termination" by City under this Agreement”.
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(a) Failure to Execute. Funding provided to Grantee is fixed and based on Grantee’s proposed improvements and costs attached hereto as Exhibit B. Any unused funds will be returned to the City and be used for improvements along the Miracle Mile Corridor. In the event Grantee cannot fulfill any of Grantee’s obligations as part of the Development, and City and Grantee do not mutually agree to an amendment to the Grant Agreement, then City and Grantee will execute any documents reasonably required by City and Grantee to terminate the Grant Documents and Grantee will transfer Grantee’s ownership rights with respect to the Property to the City.

Default. The following shall constitute a "Default by Grantee under this Agreement”. (b) Failure to Complete Construction . Subject to Section 7.16, failure of Grantee to satisfy obligations of this Grant Agreement or secure approvals from City, and such failure having continued uncured for thirty (30) days after receipt of written notice thereof from the City to the Grantee, or, if the breach cannot be cured within thirty (30) days, Grantee shall not be in breach so long as Grantee is diligently undertaking to cure such breach and such breach is cured within ninety (90) days; provided, however, that if a different period or notice requirement is specified under any other section of this Article 6, the specific provisions shall control.
(c) Breach of Covenants. Failure by Grantee to duly perform, comply with, or observe any of the conditions, terms, or covenants of any of the Grant Documents, and such failure having continued uncured for thirty (30) days after receipt of written notice thereof from the City to the Grantee, or, if the breach cannot be cured within thirty (30) days, Grantee shall not be in breach so long as Grantee is diligently undertaking to cure such breach and such breach is cured within ninety (90) days; provided, however, that if a different period or notice requirement is specified under any other section of this Article 6, the specific provisions shall control. (d) Insolvency. A court having jurisdiction shall have made or entered any decree or order: (i) adjudging Grantee to be bankrupt or insolvent, (ii) approving as properly filed a petition seeking reorganization of Grantee or seeking any arrangement for Grantee under the bankruptcy law or any other applicable debtor's relief law or statute of the United States or any state or other jurisdiction, (iii) appointing a receiver, trustee, liquidator, or assignee of Grantee in bankruptcy or insolvency or for any of their properties, or (iv) directing the winding up or liquidation of Grantee, if any such decree or order described in clauses (i) to (iv), inclusive, shall have continued unstayed or undischarged for a period of ninety (90) days; or Grantee shall have admitted in writing its inability to pay its debts as they fall due or shall have voluntarily submitted to or filed a petition seeking any decree or order of the nature described in clauses (i) to (iv), inclusive.
(e) Assignment; Attachment. Grantee shall have assigned its assets for the benefit of its creditors or suffered a sequestration or attachment of or execution on any substantial part of its property, unless the property so assigned, sequestered, attached or executed upon shall have been returned or released within ninety (90) days 740
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after such event or, if sooner, prior to sale pursuant to such sequestration, attachment, or execution.
(f) Suspension; Termination. Grantee shall have voluntarily suspended its business or, if Grantee is a partnership, the partnership shall have been dissolved or terminated, other than a technical termination of the partnership for tax purposes.
(g) Liens on Property. There shall be no additional filed claims of liens (other than liens approved in writing by City) against the Property or any part thereof; (h) Unauthorized Transfer. Any Transfer other than as permitted by Section 4.10.
(i) Representation or Warranty Incorrect. Any Grantee representation or warranty contained in this Agreement, or in any application, financial statement, certificate, or report submitted to City in connection with any of the Grant Documents, proving to have been incorrect in any material adverse respect when made. \ Section 6.2 Remedies. The occurrence of any Default hereunder following the expiration of all applicable notice and cure periods will, either at the option of the City or automatically where so specified, relieve the City of any obligation to make or continue the Grant and shall give the City the right to proceed with any and all remedies permitted under law and equity, and/or as set forth in this Agreement and the Grant Documents, including but not limited to the following:
(a) Return of Grant Funds. City may demand the immediate return of any previously disbursed Grant funds that have been claimed or expended by Grantee, together with interest thereon at the lesser of the maximum rate permitted by law or ten percent (10%) per annum; and
(b) Specific Performance. The City shall have the right to mandamus or other suits, action or proceeding at law or in equity to require Grantee to perform its obligations and covenants under the Grant Documents or to enjoin acts on things that may be unlawful or in violation of the provisions of the Grant Documents; and (c) Right to Cure at Grantee's Expense. The City shall have the right (but not the obligation) to cure any monetary default by Grantee under a loan related to the Development. The Grantee agrees to reimburse the City for any funds advanced by the City to cure a monetary default by Grantee upon demand therefore, together with interest thereon at the lesser of the maximum rate permitted by law or ten percent (10%) per annum from the date of expenditure until the date of reimbursement.

Section 6.3 Right of Contest. Grantee shall have the right to contest in good faith any claim, demand, levy, or assessment the assertion of which would constitute a Default hereunder. Any such contest shall be prosecuted diligently and, in a manner, unprejudicial to the City or the rights of lenders hereunder. 741
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Section 6.4 Remedies Cumulative. No right, power, or remedy given to the City by the terms of this Agreement or the other Grant Documents is intended to be exclusive of any other right, power, or remedy; and each and every such right, power, or remedy shall be cumulative and in addition to every other right, power, or remedy given to the City by the terms of any such instrument, or by any statute or otherwise against Grantee and any other person. Neither the failure nor any delay on the part of the Grantee to exercise any such rights and remedies shall operate as a waiver thereof, nor shall any single or partial exercise by the Grantee of any such right or remedy preclude any other or further exercise of such right or remedy, or any other right or remedy.

ARTICLE 7

GENERAL PROVISIONS
Section 7.1 Relationship of Parties. Nothing contained in this Agreement shall be interpreted or understood by either of the Parties, or by any third persons, as creating the relationship of employer and employee, principal and agent, limited or general partnership, or joint venture between the City and the Grantee or the Grantee's agents, employees or contractors, and the Grantee shall at all times be deemed an independent contractor and shall be wholly responsible for the manner in which it or its agents, or both, perform the services required of it by the terms of this Agreement for the development of the Development. Grantee has and retains the right to exercise full control of employment, direction, compensation, and discharge of all persons assisting in the performance of services under the Agreement. In regard to the purchase of the Property and development and operation of the Development, the Grantee shall be solely responsible for all matters relating to the payment of its employees, including compliance with Social Security, withholding, and all other laws and regulations governing such matters, and shall include requirements in each contract that contractors shall be solely responsible for similar matters relating to their employees. The Grantee agrees to be solely responsible for its own acts and those of its agents and employees.

Section 7.2 No Claims. Nothing contained in this Agreement shall create or justify any claim against the City, by any person the Grantee may have employed or with whom the Grantee may have contracted relative to the purchase of materials, supplies or equipment, or the furnishing or the performance of any work or services with respect to the development of the Development, or the operation of the Development, and the Grantee shall include similar requirements in any contracts entered into for the development of the Development or the operation of the Development.

Section 7.3 Amendments. No alteration or variation of the terms of this Agreement shall be valid unless made in writing by the Parties.

Section 7.4 Entire Understanding of the Parties. The Grant Documents constitute the entire understanding and agreement of the Parties with respect to the Grant.

Section 7.5 Indemnification. To the fullest extent permitted by law, Grantee shall hold harmless, defend, and indemnify the City and its officers, officials, 742
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employees and volunteers from and against any and all liability, loss, damage, expense, costs (including without limitation costs and fees of litigation) of every nature arising out of or in connection with the purchase of the Property, the development, construction, marketing, and operation of the Development, or the failure to comply with any of the Grantee obligations under the Grant Documents, except such loss or damage which was caused by the sole negligence or willful misconduct of the City. This obligation is independent of, and shall not in any way be limited by, the minimum insurance obligations contained in this Agreement. The provisions of this Section 7.5 shall survive the expiration of the Term and the reconveyance of the Deed of Trust.

Section 7.6 Non-Liability of City and City Officials, Employees and Agents.

No officer, official, employee, volunteer, or agent of the City shall be personally liable to the Grantee, or any successor in interest, in the event of any Default or breach by the City, or for any amount which may become due to the Grantee or its successor or on any obligation under the terms of this Agreement.

Section 7.7 No Third-Party Beneficiaries. There shall be no third-party beneficiaries to this Agreement.

Section 7.8 Action by the City. Except as may be otherwise specifically provided herein, whenever any approval, notice, direction, consent, request, extension of time, waiver of condition, termination, or other action by the City is required or permitted under this Agreement, such action may be given, made, or taken by the City Manager or City’s Public Works Director without further approval by the City Council and any such action shall be in writing. Any consents or approvals required under this Agreement shall not be unreasonably withheld or made. The City Manager and City’s Public Works Director are also hereby authorized to approve, on behalf of the City, requests by Grantee for reasonable extensions of time deadlines that may pertain to this Agreement. The amount of the Grant may not be increased without the approval of the City Council.

Section 7.9 Conflict of Interest.
(a) Except for approved eligible administrative or personnel costs, no person described in Section 7.9(b) below who exercises or has exercised any functions or responsibilities with respect to the activities funded pursuant to this Agreement or who is in a position to participate in a decision-making process or gain inside information with regard to such activities, may obtain a personal or financial interest or benefit from the activity, or have an interest in any contract, subcontract or agreement with respect thereto, or the proceeds thereunder, either for themselves or those with whom they have family or business ties, during, or at any time after, such person's tenure. The Grantee shall exercise due diligence to ensure that the prohibition in this Section 7.9(a) is followed.
(b) The conflict-of-interest provisions of Section 7.9(a) above apply to any person who is an employee, agent, consultant, officer, or any immediate family member of such person, or any elected or appointed official of the City, or any person related within the third (3rd) degree of such person.
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Section 7.10 Waivers. Any waiver by the City of any obligation or condition in this Agreement must be in writing. No waiver will be implied from any delay or failure by the City to take action on any breach or default of the Grantee or to pursue any remedy allowed under this Agreement or applicable law. Any extension of time granted to the Grantee to perform any obligation under this Agreement shall not operate as a waiver or release from any of its obligations under this Agreement. Consent by the City to any act or omission by the Grantee shall not be construed to be a consent to any other or subsequent act or omission or to waive the requirement for the City's written consent to future waivers.

Section 7.11 Notices, Demands and Communications. Formal notices, demands, and communications between the City and the Grantee shall be sufficiently given if and shall not be deemed given unless dispatched by registered or certified mail, postage prepaid, return receipt requested, or delivered by express delivery service, return receipt requested, or delivered personally with a delivery receipt, to the principal office of the City and the Grantee as follows:

City: City of Stockton Public Works Department
22 E. Weber Avenue, Room 301
Stockton, CA 95202-2326
Attn: Public Works Director
With copies to: Office of the City Attorney
425 North El Dorado Street
Stockton, CA 95202
Grantee: Miracle Mile Community Improvement District
221 Tuxedo Court, Suite B
PO Box 4016
Stockton, CA 95204
Attn: Executive Director
Such written notices, demands, and communications may be sent in the same manner to such other addresses as the affected party may from time to time designate by mail as provided in this Section. Receipt shall be deemed to have occurred on the date shown on a written receipt as the date of delivery or refusal of delivery (or attempted delivery if undeliverable).

Section 7.12 Applicable Law. This Agreement will be governed by California law.

Section 7.13 Parties Bound. Except as otherwise limited herein, the provisions of this Agreement shall be binding upon and inure to the benefit of the Parties and their heirs, executors, administrators, legal representatives, successors and assigns.

This Agreement is intended to run with the land and shall bind Grantee and its successors and assigns in the Property and the Development for the entire Term, and the benefit hereof shall inure to the benefit of the City and their respective successors and assigns. 744
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Section 7.14 Attorneys' Fees. If any lawsuit is commenced to enforce any of the terms of this Agreement, the prevailing party will have the right to recover its reasonable attorneys' fees and costs of suit from the other party.

Section 7.15 Severability. If any term of this Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remainder of the provisions shall continue in full force and effect unless the rights and obligations of the Parties have been materially altered or abridged by such invalidation, voiding or unenforceability.

Section 7.16 Force Majeure. In addition to specific provisions of this Agreement, performance by either Party shall not be deemed to be in default where delays or defaults are due to war; insurrection; strikes; lock-outs; riots; floods; earthquakes; fires; quarantine restrictions; public health emergency, pandemic, epidemic, freight embargoes; lack of transportation; or court order; or any other similar causes (other than lack of funds of Grantee or Grantee's inability to finance the construction of the Development) beyond the control or without the fault of the Party claiming an extension of time to perform. An extension of time for any cause will be deemed granted if notice by the Party claiming such extension is sent to the other within ten (10) days from the commencement of the cause and such extension of time is not rejected in writing by the other Party within ten (10) days of receipt of the notice. In no event shall the City be required to agree to cumulative delays in excess of ninety (90) days.

Section 7.17 Future City Actions. The Parties acknowledge and agree that:
(a) This Agreement does not constitute City approval of any other financial assistance to the Grantee, land use approvals, or construction of the Development;
(b) The City retains full discretion, as provided by law, to approve or disapprove any other financial assistance to the Grantee and land use approvals; and (c) Prior to consideration of land use approvals, the City must first perform all applicable statutory preconditions to such consideration.

Section 7.18 Multiple Originals; Counterpart. This Agreement may be executed in multiple originals, each of which is deemed to be an original, and may be signed in counterparts. Electronic signatures will be accepted as valid and binding on the Parties.
[SIGNATURES ON FOLLOWING PAGE]

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EXHIBIT 1
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WHEREFORE, this Agreement has been entered into by the undersigned as of the Effective Date.

THE CITY:

CITY OF STOCKTON, a municipal
corporation
By:

Harry Black, City Manager
Date: _________________
APPROVED AS TO FORM:

City Attorney
By:

City Clerk

GRANTEE:

Miracle Mile Community Improvement
District, a California 501 (c)(3) nonprofit
public benefit corporation
By:

Printed name: ____________________
Title: ___________________________
Date: ___________________________

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EXHIBIT A

LEGAL DESCRIPTION OF THE PROPERTY
The land described herein is situated in the State of California, County of San Joaquin, City of Stockton, described as follows:

PARCEL ONE:

Lot 9 of Tract No. 2292, Hammertown Business Park, in the City of Stockton, according to the Official Map or Plat thereof filed for record September 22, 1994, in Book 32 of Maps and Plats, at Page 20, San Joaquin County Records.

A Certificate of Correction recorded March 24, 1995, as Document No. 95026301, and a Certificate of Correction recorded July 21, 1995, as Document No. 95065371, San Joaquin County Records.

APN: 094-370-09
PARCEL TWO:

Lots 13 and 14 of Tract No. 2292, Hammertown Business Park, in the City of Stockton, according to the Official Map or Plat thereof filed for record September 22, 1994, in Book 32 of Maps and Plats, at Page 20, San Joaquin County Records.

A Certificate of Correction recorded March 24, 1995, as Document No. 95026301, and a Certificate of Correction recorded July 21, 1995, as Document No. 95065371, San Joaquin County Records.

A Notice of Lot Merger recorded June 13, 2008, as Document No. 2008-098082, San Joaquin County Records.

APN: 094-370-27
EXHIBIT 1
747
Public Safety
Security Camera Expansion Security System Hardware, Software, Installation and Service/Warranty $ 165,000
Façade/Safety Facilitator $ 235,000
Pedestrian Lighting $ 350,000
Subtotal $ 750,000
Maintenance
Acquisition of Maintenance
Substation
Maintenace substation acquisition, improvements and
maintenance (includes single available NOFA to secure location for maintenance)
$ 1,500,000
Trash Receptacles Victor Stanley trash receptacle, can & installation (additional 20 cans to district for zones 2 & 3) $ 30,000
Enclosed Garbage Corrals Enclosed Garbage Corrals (4), with existing corral refitted with top (1). Estimate $30,000 per corral, and $15,000 for retrofit. $ 135,000 Subtotal $ 1,665,000
Parking Improvements/Maintenance
Parking Microsurfacing
City of Stockto to retain funding for parking lot repair and maintenance projects (slurry seals cape seals, mirco-surfacing, overlays, pulverizaiton, and full depth reclamations with cenent) and enhanced lighting intiatives as funding will allow. Initial parking lot priority is as follows:
$ 550,000

1. City lot J (Dorris Place)

2. City lot G & H (Elm/Walnut)

3. City Lot F (Walnut/Alder)

4. Lot D & E (Alder/Maple)

5. Lot B (Pine/Adams)

ACQUISITION & DEVELOPMENT BUDGET

EXHIBIT B
EXHIBIT 1
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EXHIBIT C

INSURANCE REQUIREMENTS
MIRACLE MILE PUBLIC SAFETY; MAINTENANCE SUBSTATION AND

PARKING IMPROVEMENT PROJECT
Contractor shall procure and maintain for the duration of the contract, insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder and the results of that work by the Contractor, his agents, representatives, employees or subcontractors.

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

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

Additional Coverages:

Automobile Liability: ISO Form Number CA 00 01 covering any auto (Code 1), or if Contractor has no owned autos, hired, (Code 8) and non-owned autos (Code 9), with limit no less than $1,000,000 per accident for bodily injury and property damage. (Automobile insurance is required if the Contractor’s employees will be driving vehicles while in service to the City of Stockton)
Workers’ Compensation: as required by the State of California, with Statutory Limits, and Employer’s Liability Insurance with limit of no less than $1,000,000 per accident for bodily injury or disease. (Not required if consultant provides written verification it has no employees)
Other Insurance Provisions
The insurance policies are to contain, or be endorsed to contain, the following provisions:

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

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

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

Notice of Cancellation
Each insurance policy required above shall provide that coverage shall not be canceled, except with notice to the City of Stockton.

Waiver of Subrogation
Contractor hereby grants to City of Stockton a waiver of any right to subrogation which any insurer of said Contractor may acquire against the City of Stockton by virtue of the payment of any loss under such insurance. Contractor agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation, but this provision applies regardless of whether or not the City of Stockton has received a waiver of subrogation endorsement from the insurer.

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Self-Insured Retentions
Self-insured retentions must be declared to and approved by the City of Stockton. The City of Stockton may require the Contractor to purchase coverage with a lower retention or provide proof of ability to pay losses and related investigations, claim administration, and defense expenses within the retention. The policy language shall provide, or be endorsed to provide, that the self-insured retention may be satisfied by either the named insured or City of Stockton. The CGL and any policies, including Excess liability policies, may not be subject to a self-insured retention (SIR) or deductible that exceeds $25,000 unless approved in writing by City of Stockton. Any and all deductibles and SIRs shall be the sole responsibility of Contractor or subcontractor who procured such insurance and shall not apply to the Indemnified Additional Insured Parties. City of Stockton may deduct from any amounts otherwise due Contractor to fund the SIR/deductible. Policies shall NOT contain any self-insured retention (SIR) provision that limits the satisfaction of the SIR to the Named. The policy must also provide that Defense costs, including the Allocated Loss Adjustment Expenses, will satisfy the SIR or deductible. City of Stockton reserves the right to obtain a copy of any policies and endorsements for verification.

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

Verification of Coverage
Contractor shall furnish the City of Stockton with original certificates and amendatory endorsements or copies of the applicable policy language effecting coverage required by this clause and a copy of the Declarations and Endorsements Pages of the CGL and any Excess policies listing all policy endorsements. All certificates and endorsements and copies of the Declarations and Endorsements pages are to be received and approved by the City of Stockton before work commences. However, failure to obtain the required documents prior to the work beginning shall not waive the Contractor’s obligation to provide them. The City of Stockton reserves the right to require complete, certified copies of all required insurance policies, including endorsements required by these specifications, at any time. City of Stockton reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances.

Subcontractors
Consultant shall require and verify that all subcontractors maintain insurance meeting all the requirements stated herein, and Contractor shall ensure that City of Stockton is an additional insured on insurance required from subcontractors.

Duration of Coverage
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CGL and Excess liability policies must be maintained and evidence of insurance must be provided for at least three (3) years after completion of the acquisition of the Property.

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

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

City of Stockton
Its Officers, Officials, Employees, and Volunteers
400 E Main St, 3rd Floor – HR
Stockton, CA 95202
EXHIBIT 1
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RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:

City of Stockton
Public Works Department
22 E. Weber Avenue, Room 301
Stockton, CA 95202-2326
Attn: Public Works Director

NO RECORDING FEE PURSUANT TO
GOVERNMENT CODE SECTION 27383

PERFORMANCE DEED OF TRUST AND SECURITY AGREEMENT
230-250 Dorris Place AND 231 Bedford Road, Stockton, CA THIS PERFORMANCE DEED OF TRUST ("Deed of Trust") is made this _____ day of ____________, 2024, by and among Miracle Mile Community Improvement District, a California nonprofit public benefit corporation ("Trustor"), and the City of Stockton, a municipal corporation (“Trustee” and "Beneficiary").

FOR GOOD AND VALUABLE CONSIDERATION, including the indebtedness herein recited and the trust herein created, the receipt of which is hereby acknowledged, Trustor hereby irrevocably grants, transfers, conveys, and assigns to Trustee, IN TRUST, WITH POWER OF SALE, for the benefit and security of Beneficiary, under and subject to the terms and conditions hereinafter set forth, Trustor's fee interest in the property located in the County of San Joaquin, State of California, that is described in the attached Exhibit A, incorporated herein by this reference (the “Property”).

TOGETHER WITH all interest, estates, or other claims, both in law and in equity which Trustor now has or may hereafter acquire in the Property and the rents; TOGETHER WITH all easements, rights-of-way, and rights used in connection therewith or as a means of access thereto, including (without limiting the generality of the foregoing) all tenements, hereditaments, and appurtenances thereof and thereto; TOGETHER WITH any and all buildings and improvements of every kind and description now or hereafter erected thereon, and all property of Trustor now or hereafter affixed to or placed upon the Property;
TOGETHER WITH all building materials and equipment now or hereafter delivered to said property and intended to be installed therein;
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TOGETHER WITH all right, title and interest of Trustor, now owned or hereafter acquired, in and to any land lying within the right-of-way of any street, open or proposed, adjoining the Property, and any and all sidewalks, alleys and strips and areas of land adjacent to or used in connection with the Property;
TOGETHER WITH all estate, interest, right, title, other claim or demand, of every nature, in and to such property, including the Property, both in law and in equity, including, but not limited to, all deposits made with or other security given by Trustor to utility companies, the proceeds from any or all of such property, including the Property, claims or demands with respect to the proceeds of insurance in effect with respect thereto, which Trustor now has or may hereafter acquire, any and all awards made for the taking by eminent domain or by and proceeding or purchase in lieu thereof of the whole or any part of such property, including without limitation, any awards resulting from a change of grade of streets and awards for severance damages to the extent Beneficiary has an interest in such awards for taking as provided in Section 4.1 herein; and
TOGETHER WITH all of Trustor's interest in all articles of personal property or fixtures now or hereafter attached to or used in and about the building or buildings now erected or hereafter to be erected on the Property which are necessary to the use and occupancy of such building or buildings for the purposes for which they were or are to be erected, including all other goods and chattels and personal property as are ever used or furnished in operating a building, or the activities conducted therein, similar to the one herein described and referred to, and all renewals or replacements thereof or articles in substitution therefor, whether or not the same are, or shall be attached to said building or buildings in any manner.

All of the foregoing, together with the Property, is herein referred to as the "Security." To have and to hold the Security together with acquittances to Trustee, its successors and assigns forever.

FOR THE PURPOSE OF SECURING:

A. Payment of any sums advanced by Beneficiary to protect the Security pursuant to the terms and provisions of this Deed of Trust following a breach of Trustor's obligation to advance said sums and the expiration of any applicable cure period, with interest thereon as provided herein; and
B. Performance of every obligation, covenant, or agreement of Trustor contained herein and in the Grant Documents (defined in Article 1 below).

AND TO PROTECT THE SECURITY OF THIS DEED OF TRUST, TRUSTOR COVENANTS AND AGREES:

ARTICLE 1:

DEFINITIONS
In addition to the terms defined elsewhere in this Deed of Trust, the following terms shall have the following meanings in this Deed of Trust:

Section 1.1 The term "Grant Agreement" means that certain Grant Agreement between Trustor and Beneficiary, of substantially even date herewith, providing for EXHIBIT 2 754
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Beneficiary to Grant to Trustor Three Million One Hundred Thousand Dollars ($3,100,000) for the acquisition renovation, improvement and maintenance of the Property for purposes of a Miracle Mile Maintenance Substation, and performance public safety and parking improvements (the “Development”).

Section 1.2 The term "Grant Documents" means this Deed of Trust, the Grant Agreement, and any debt, loan, or other security instruments between Trustor and Beneficiary relating to the Development.

ARTICLE 2:

MAINTENANCE AND MODIFICATION OF

THE PROPERTY AND SECURITY
Section 2.1 Maintenance and Modification of the Property by Trustor. Trustor agrees that at all times during the Term of the Grant, Trustor will, at Trustor's own expense, maintain, preserve, and keep the Security or cause the Security to be maintained and preserved in good condition, reasonable wear and tear excepted. Trustor will from time to time make or cause to be made all repairs, replacements, and renewals deemed proper and necessary by it. Beneficiary shall have no responsibility in any of these matters or for the making of improvements or additions to the Security.

Trustor agrees to pay fully and discharge (or cause to be paid fully and discharged) all claims for labor done and for material and services furnished in connection with the Security, diligently to file or procure the filing of a valid notice of cessation upon the event of a cessation of labor on the work or construction on the Security for a continuous period of thirty (30) days or more, and to take all other reasonable steps to forestall the assertion of claims of lien against the Security of any part thereof. Trustor irrevocably appoints, designates, and authorizes Beneficiary as its agent (said agency being coupled with an interest) with the authority, but without any obligation, to file for record any notices of completion or cessation of labor or any other like notice that Beneficiary deems necessary or desirable to protect its interest in and to the Security or the Grant Documents; provided, however, that Beneficiary shall exercise its rights as agent of Trustor only in the event that Trustor shall fail to take, or shall fail to diligently continue to take, those actions as hereinbefore provided.

Nothing herein contained shall require Trustor to pay any claims for labor, materials, or services which Trustor in good faith disputes and is diligently contesting provided that Trustor shall, within thirty (30) days after the filing of any claim of lien, record in the Office of the Recorder of San Joaquin County, a surety bond in an amount one and one-half (1½) times the amount of such claim item to protect against a claim of lien.

Section 2.2 Granting of Easements. Trustor may not grant easements, licenses, rights-of-way, or other rights or privileges in the nature of easements with respect to any property or rights included in the Security except those required or desirable for installation and maintenance of public utilities including, without limitation, water, gas, electricity, sewer, telephone, and telegraph, or those required by law. As to these exceptions, Beneficiary will consent to and/or direct Trustee to consent to the grant of such easements.

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ARTICLE 3:

TAXES AND INSURANCE; ADVANCES
Section 3.1 Taxes, Other Governmental Charges, and Utility Charges. Trustor shall pay, or cause to be paid prior to the date of delinquency, all taxes, assessments, charges, and levies imposed by any public authority or utility company which are or may become a lien affecting the Security or any part thereof; provided, however, that Trustor shall not be required to pay and discharge any such tax, assessment, charge or levy so long as (a) the legality thereof shall be promptly and actively contested in good faith and by appropriate proceedings, and (b) Trustor maintains reserves adequate to pay any liabilities contested pursuant to this Section. With respect to taxes, special assessments, or other similar governmental charges, Trustor shall pay such amount in full prior to the attachment of any lien therefore on any part of the Security; provided, however, if such taxes, assessments, or charges may be paid in installments, Trustor may pay in such installments. Except as provided in clause (b) of the first sentence of this paragraph, the provisions of this Section shall not be construed to require that Trustor maintain a reserve account, escrow account, impound account, or other similar accounts for the payment of future taxes, assessments, charges, and levies.

In the event that Trustor shall fail to pay any of the foregoing items required by this Section to be paid by Trustor, Beneficiary may (but shall be under no obligation to) pay the same, after Beneficiary has notified Trustor of such failure to pay and Trustor fails to fully pay such items within seven (7) business days after receipt of such notice. Any amount so advanced therefor by Beneficiary, together with interest thereon from the date of such advance at the maximum rate permitted by law, shall become an additional obligation of Trustor to Beneficiary and shall be secured hereby, and Trustor agrees to pay all such amounts.

Section 3.2 Provisions Respecting Insurance. Trustor agrees to provide insurance conforming in all respects to that required under the Grant Documents during the course of construction and following completion, and at all times until all amounts secured by this Deed of Trust have been paid and all other obligations secured hereunder fulfilled, and this Deed of Trust reconveyed.

All such insurance policies and coverages shall be maintained at Trustor's sole cost and expense. Certificates of insurance for all of the above insurance policies, showing the same to be in full force and effect, shall be delivered to Beneficiary upon demand therefore at any time prior to Beneficiary's receipt of the entire Principal and Interest and all amounts secured by this Deed of Trust.

Section 3.3 Advances. In the event Trustor shall fail to maintain the full insurance coverage required by this Deed of Trust or shall fail to keep the Security in accordance with the Grant Documents, Beneficiary, after at least seven (7) days prior notice to Trustor, may (but shall be under no obligation to) take out the required policies of insurance and pay the premiums on the same or may make such repairs or replacements as are necessary and provide for the payment thereof; and all amounts so advanced therefor by Beneficiary shall become an additional obligation of Trustor to Beneficiary (together with interest as set forth below) and shall be secured hereby, which amounts Trustor agrees to pay on the demand of Beneficiary, and if not so paid, shall bear interest from the date of the advance at the lesser of ten percent (10%) per annum or the maximum rate permitted by law.

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ARTICLE 4:

DAMAGE, DESTRUCTION, OR CONDEMNATION
Section 4.1 Awards and Damages. All judgments, awards of damages, settlements, and compensation made in connection with or in lieu of (a) taking of all or any part of or any interest in the Property by or under the assertion of the power of eminent domain, (b) any damage to or destruction of the Property or in any part thereof by insured casualty, and (c) any other injury or damage to all or any part of the Property ("Funds") are hereby assigned to and shall be paid to Beneficiary by a check made payable to Beneficiary.

Beneficiary is authorized and empowered (but not required) to collect and receive any Funds and is authorized to apply them in whole or in part upon any indebtedness or obligation secured hereby, in such order and manner as Beneficiary shall determine at its sole option.

Beneficiary shall be entitled to settle and adjust all claims under insurance policies provided under this Deed of Trust and may deduct and retain from the proceeds of such insurance the amount of all expenses incurred by it in connection with any such settlement or adjustment.

All or any part of the amounts so collected and recovered by Beneficiary may be released to Trustor upon such conditions as Beneficiary may impose for the rebuilding of the improvements on the Property. Application of all or any part of the Funds collected and received by Beneficiary or the release thereof shall not cure or waive any default under this Deed of Trust. The rights of the Beneficiary under this Section are subject to the rights of any senior mortgage lender. Notwithstanding the provisions of this Section, the Beneficiary shall release the Funds to Trustor to be used to reconstruct the improvements on the Property provided that Beneficiary reasonably determines that reconstruction is feasible.

ARTICLE 5:

AGREEMENTS AFFECTING THE PROPERTY; FURTHER
ASSURANCES; PAYMENT OF PRINCIPAL AND INTEREST
Section 5.1 Other Agreements Affecting Property. Trustor shall duly and punctually perform all terms, covenants, conditions, and agreements binding upon it under the Grant Documents and any other agreement of any nature whatsoever now or hereafter involving or affecting the Security or any part thereof within the time periods required by such Grant Documents or other agreements.

Section 5.2 Agreement to Pay Attorneys' Fees and Expenses. In the event of any Event of Default (as defined below) hereunder, and if Beneficiary should employ attorneys or incur other expenses for the collection of amounts due or the enforcement of performance or observance of an obligation or agreement on the part of Trustor in this Deed of Trust, Trustor agrees that it will, on-demand therefore, pay to Beneficiary the reasonable fees of such attorneys and such other reasonable expenses so incurred by Beneficiary; and any such amounts paid by Beneficiary shall be added to the indebtedness secured by the lien of this Deed of Trust, and shall bear interest from the date such expenses are incurred at the lesser of ten percent (10%) per annum or the maximum rate permitted by law.

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Section 5.3 Personal Property. To the maximum extent permitted by law, the personal property subject to this Deed of Trust shall be deemed to be fixtures and part of the real property and this Deed of Trust shall constitute a fixture filing under the California Commercial Code. As to any personal property not deemed or permitted to be fixtures, this Deed of Trust shall constitute a security agreement under the California Commercial Code.

Section 5.4 Financing Statement. Trustor authorizes Beneficiary to execute and file such financing statements pursuant to the appropriate statutes, and any other documents or instruments as are required to convey to Beneficiary a valid perfected security interest in the Security. Trustor agrees to perform all acts which Beneficiary may reasonably request so as to enable Beneficiary to maintain such valid perfected security interest in the Security.

Beneficiary is authorized to file a copy of any such financing statement in any jurisdiction(s) as it shall deem appropriate from time to time in order to protect the security interest established pursuant to this instrument.

Section 5.5 Operation of the Security. Trustor shall operate the Security (and, in case of a transfer of a portion of the Security subject to this Deed of Trust, the transferee shall operate such portion of the Security) in full compliance with the Grant Documents.

Section 5.6 Inspection of the Security. At any and all reasonable times upon seventy-two (72) hours' notice, Beneficiary and its duly authorized agents, attorneys, experts, engineers, accountants, and representatives, shall have the right, without payment of charges or fees, to inspect the Security. Trustor shall have the right to be present during any such inspections.

Section 5.7 Nondiscrimination. Trustor herein covenants by and for itself, its heirs, executors, administrators, and assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of race, color, creed, religion, sex, sexual orientation, gender identity, marital status, national origin or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure, or enjoyment of the Security, nor shall Trustor itself or any person claiming under or through it establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use, or occupancy of tenants, lessees, subtenants, sublessees, or vendees in the Security. The foregoing covenants shall run with the land.

ARTICLE 6:

HAZARDOUS WASTE
Section 6.1 Compliance with Environmental Laws. Trustor shall keep and maintain the Property in compliance with and shall not cause or permit the Property to be in violation of any federal, state, or local laws, ordinances, or regulations relating to industrial hygiene or to the environmental conditions on, under, or about the Property including, but not limited to, soil and groundwater conditions. Trustor shall not use, generate, manufacture, store or dispose of on, under, or about the Property or transport to or from the Property any flammable explosives, radioactive materials, hazardous wastes, toxic substances or related materials, including without limitation, any substances defined as or included in the definition of "hazardous substances," hazardous wastes," "hazardous materials," or "toxic substances" EXHIBIT 2 758
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under any applicable federal or state laws or regulations (collectively referred to hereinafter as "Hazardous Materials") except such of the foregoing as may be customarily kept and used in and about residential property, and during construction only, such as may be customarily kept and used in the course of multi-family residential construction.

Section 6.2 Notice to Beneficiary. Trustor shall immediately advise Beneficiary in writing if at any time it receives written notice of (a) any and all enforcement, cleanup, removal or other governmental or regulatory actions instituted, completed or threatened against Trustor or the Property pursuant to any applicable federal, state or local laws, ordinances, or regulations relating to any Hazardous Materials ("Hazardous Materials Law"); (b) all claims made or threatened by any third party against Trustor or the Property relating to damage, contribution, cost recovery compensation, loss or injury resulting from any Hazardous Materials (the matters set forth in clauses (a) and (b) above hereinafter referred to a "Hazardous Materials Claims"); and (c) Trustor's discovery of any occurrence or condition on any real property adjoining or in the vicinity of the Property that could cause the Property or any part thereof to be classified as "border-zone property" under the provision of California Health and Safety Code, Sections 25220 et seq. or any regulation adopted in accordance therewith, or to be otherwise subject to any restrictions on the ownership, occupancy, transferability or use of the Property under any Hazardous Materials Law.

Section 6.3 Beneficiary Right to Participate, Indemnification of Beneficiary. Beneficiary shall have the right to join and participate in, as a party if it so elects, any legal proceedings or actions initiated in connection with any Hazardous Materials Claims and to have its reasonable attorneys' fees in connection therewith paid by Trustor. Trustor shall indemnify and hold harmless Beneficiary and its councilmembers, supervisors, directors, officers, employees, agents, successors and assigns from and against any loss, damage, cost, expense, or liability directly or indirectly arising out of or attributable to the use, generation, storage, release, threatened release, discharge, disposal, or presence of Hazardous Materials on, under, or about the Property including without limitation: (a) all foreseeable direct damages; (b) the costs of any required or necessary repair, cleanup or detoxification of the Property and the preparation and implementation of any closure, remedial or other required plans; and (c) all reasonable costs and expenses incurred by Beneficiary in connection with clauses (a) and (b), including but not limited to reasonable attorneys' fees.

Section 6.4 Remedial Action. Without Beneficiary's prior written consent, which shall not be unreasonably withheld, Trustor shall not take any remedial action in response to the presence of any Hazardous Materials on, under or about the Property, nor enter into any settlement agreement, consent decree, or other compromise in respect to any Hazardous Material Claims, which remedial action, settlement, consent decree or compromise might, in Beneficiary's reasonable judgment, impair the value of Beneficiary's security hereunder; provided, however, that Beneficiary's prior consent shall not be necessary in the event that the presence of Hazardous Materials on, under, or about the Property either poses an immediate threat to the health, safety or welfare of any individual or is of such a nature that an immediate remedial response is necessary and it is not reasonably possible to obtain Beneficiary's consent before taking such action, provided that in such event Trustor shall notify Beneficiary as soon as practicable of any action so taken. Beneficiary agrees not to withhold its consent, where such consent is required hereunder if either (a) a particular remedial action is ordered by a court of competent jurisdiction, (b) Trustor will or may be subjected to civil or criminal sanctions or penalties if it fails to take a required action; (c) EXHIBIT 2 759
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Trustor establishes to the reasonable satisfaction of Beneficiary that there is no reasonable alternative to such remedial action which would result in less impairment of Beneficiary's security hereunder; or (d) the action has been agreed to by Beneficiary.

Section 6.5 Trustor Representations and Warranties. Trustor hereby acknowledges and agrees that (a) this Article is intended as Beneficiary's written request for information (and Trustor's response) concerning the environmental condition of the Property as required by California Code of Civil Procedure Section 726.5, and (b) each representation and warranty in this Deed of Trust or any of the other Grant Documents (together with any indemnity applicable to a breach of any such representation and warranty) with respect to the environmental condition of the property is intended by Beneficiary and Trustor to be an "environmental provision" for purposes of California Code of Civil Procedure Section 736.

ARTICLE 7:

EVENTS OF DEFAULT AND REMEDIES
Section 7.1 Events of Default. The following shall constitute an "Event of Default" if not cured within the times and in the manner provided therein: (a) failure, after expiration of applicable notice and cure periods, to make any payment to be paid by Trustor under the Grant Documents; (b) failure, after expiration of applicable notice and cure periods, to observe or perform any of Trustor's other covenants, agreements or obligations under the Grant Documents, including, without limitation, the provisions concerning discrimination; or (c) failure, after expiration of applicable notice and cure periods, to make any payment or perform any of Trustor's other covenants, agreements, or obligations under any other debt instruments or regulatory agreement secured by the Property; which default shall not be cured within the times and in the manner provided therein.

Section 7.2 Acceleration of Maturity. If an Event of Default shall have occurred and be continuing following the expiration of applicable notice and cure periods, then at the option of Beneficiary, the amount of any payment related to the Event of Default shall immediately become due and payable, upon written notice by Beneficiary to Trustor (or automatically where so specified in the Grant Documents), and no omission on the part of Beneficiary to exercise such option when entitled to do so shall be construed as a waiver of such right.

Section 7.3 Beneficiary's Right to Enter and Take Possession. If an Event of Default shall have occurred and be continuing following the expiration of applicable notice and cure periods, Beneficiary may:
(a) Either in person or by agent, with or without bringing any action or proceeding, or by a receiver appointed by a court, and without regard to the adequacy of its security, enter upon the Security and take possession thereof (or any part thereof) and of any of the Security, in its own name or in the name of Trustee, and do any acts which it deems necessary or desirable to preserve the value or marketability of the Property, or part thereof or interest therein, increase the income therefrom or protect the security thereof. The entering upon and taking possession of the Security shall not cure or waive any Event of Default or Notice of Default (as defined below) hereunder or invalidate any act done in response to such Default or pursuant to such Notice of Default and, notwithstanding the continuance in possession of the Security, Beneficiary shall be entitled to exercise every right provided for EXHIBIT 2 760
2048\15\3704242.3 9
in this Deed of Trust, or by law upon the occurrence of any Event of Default, including the right to exercise the power of sale;
(b) Commence action to foreclose this Deed of Trust as a mortgage, appoint a receiver, or specifically enforce any of the covenants hereof; (c) Deliver to Trustee a written declaration of default and demand for sale, and a written notice of default and election to cause Trustor's interest in the Security to be sold ("Notice of Default and Election to Sell"), which notice Trustee or Beneficiary shall cause to be duly filed for record in the Official Records of San Joaquin County; or (d) Exercise all other rights and remedies provided herein, in the instruments by which Trustor acquires title to any Security, or in any other document or agreement now or hereafter evidencing, creating or securing all or any portion of the obligations secured hereby, or provided by law.

Section 7.4 Foreclosure by Power of Sale. Should Beneficiary elect to foreclose by exercise of the power of sale herein contained, Beneficiary shall give notice to Trustee ("Notice of Sale") and shall deposit with Trustee this Deed of Trust which is secured hereby (and the deposit of which shall be deemed to constitute evidence that the unpaid Principal and Interest is immediately due and payable), and such receipts and evidence of any expenditures made that are additionally secured hereby as Trustee may require. (a) Upon receipt of such notice from Beneficiary, Trustee shall cause to be recorded, published, and delivered to Trustor such Notice of Default and Election to Sell as then required by law and by this Deed of Trust. Trustee shall, without demand on Trustor, after lapse of such time as may then be required by law and after recordation of such Notice of Default and Election to Sell and after Notice of Sale having been given as required by law, sell the Security, at the time and place of sale fixed by it in said Notice of Sale, whether as a whole or in separate lots or parcels or items as Trustee shall deem expedient and in such order as it may determine unless specified otherwise by Trustor according to California Civil Code Section 2924g(b), at public auction to the highest bidder, for cash in lawful money of the United States payable at the time of sale. Trustee shall deliver to such purchaser or purchasers thereof its good and sufficient deed or deeds conveying the property so sold, but without any covenant or warranty, express or implied. The recitals in such deed or any matters of facts shall be conclusive proof of the truthfulness thereof. Any person, including, without limitation, Trustor, Trustee, or Beneficiary, may purchase at such sale, and Trustor hereby covenants to warrant and defend the title of such purchaser or purchasers. (b) After deducting all reasonable costs, fees, and expenses of Trustee, including costs of evidence of title in connection with such sale, Trustee shall apply the proceeds of sale to the payment of: (i) all amounts owed to Beneficiary under the Grant Documents; (ii) all other sums then secured hereby; and (iv) the remainder, if any, to Trustor. (c) Trustee may postpone the sale of all or any portion of the Property by public announcement at such time and place of sale, and from time to time thereafter, and without further notice make such sale at the time fixed by the last postponement, or may, in its discretion, give a new Notice of Sale.

EXHIBIT 2 761
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Section 7.5 Receiver. If an Event of Default shall have occurred and be continuing following the expiration of applicable notice and cure periods, Beneficiary, as a matter of right and without further notice to Trustor or anyone claiming under the Security, and without regard to the then value of the Security or the interest of Trustor therein, shall have the right to apply to any court having jurisdiction to appoint a receiver or receivers of the Security (or a part thereof), and Trustor hereby irrevocably consents to such appointment and waives further notice of any application therefor. Any such receiver or receivers shall have all the usual powers and duties of receivers in like or similar cases, and all the powers and duties of Beneficiary in case of entry as provided herein and shall continue as such and exercise all such powers until the date of confirmation of sale of the Security unless such receivership is sooner terminated.

Section 7.6 Remedies Cumulative. No right, power or remedy conferred upon or reserved to Beneficiary by this Deed of Trust is intended to be exclusive of any other right, power or remedy, but each and every such right, power, and remedy shall be cumulative and concurrent and shall be in addition to any other right, power and remedy given hereunder or now or hereafter existing at law or in equity.

Section 7.7 No Waiver.
(a) No delay or omission of Beneficiary to exercise any right, power or remedy accruing upon any Event of Default shall exhaust or impair any such right, power or remedy, or shall be construed to be a waiver of any such Event of Default or acquiescence therein; and every right, power, and remedy given by this Deed of Trust to Beneficiary may be exercised from time to time and as often as may be deemed expeditious by Beneficiary.

No consent or waiver expressed or implied, by Beneficiary to or any breach by Trustor in the performance of the obligations hereunder shall be deemed or construed to be a consent to or waiver of obligations of Trustor hereunder. Failure on the part of Beneficiary to complain of any act or failure to act or to declare an Event of Default, irrespective of how long such failure continues, shall not constitute a waiver by Beneficiary of its right hereunder or impair any rights, power, or remedies consequent on any Event of Default by Trustor. (b) If Beneficiary (i) grants forbearance or an extension of time for the payment of any sums secured hereby, (ii) takes other or additional security or the payment of any sums secured hereby, (iii) waives or does not exercise any right granted in the Grant Documents, (iv) releases any part of the Security from the lien of this Deed of Trust, or otherwise changes any of the terms, covenants, conditions or agreements in the Grant Documents, (v) consents to the granting of any easement or other right affecting the Security, or (iv) makes or consents to any agreement subordinating the lien hereof, any such act or omission shall not, except by its express terms, release, discharge, modify, change or affect the original liability under this Deed of Trust, or any other obligation of Trustor or any subsequent purchaser of the Security or any part thereof, or any maker, co-signer, endorser, surety or guarantor (unless expressly released); nor, except by its express terms, shall any such act or omission preclude Beneficiary from exercising any right, power or privilege herein granted or intended to be granted in any Event of Default then made or in any subsequent Event of Default, nor, except as otherwise expressly provided in an instrument or instruments executed by Beneficiary shall the lien of this Deed of Trust be altered thereby.

EXHIBIT 2 762
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Section 7.8 Suits to Protect the Security. Beneficiary shall have power in its reasonable discretion, to (a) institute and maintain such suits and proceedings as it may deem expedient to prevent any impairment of the Security and the rights of Beneficiary as may be unlawful or any violation of this Deed of Trust, (b) preserve or protect its interest (as described in this Deed of Trust) in the Security, and (c) restrain the enforcement of or compliance with any legislation or other governmental enactment, rule or order that may be unconstitutional or otherwise invalid, if the enforcement for compliance with such enactment, rule or order would impair the Security thereunder or be prejudicial to the interest of Beneficiary.

Section 7.9 Trustee May File Proofs of Claim. In the case of any receivership, insolvency, bankruptcy, reorganization, arrangement, adjustment, composition or other proceedings affecting Trustor, its creditors or its property, Beneficiary, to the extent permitted by law, shall be entitled to file such proofs of claim and other documents as may be necessary or advisable in order to have the claims of Beneficiary allowed in such proceedings and for any additional amount which may become due and payable by Trustor hereunder after such date.

Section 7.10 Waiver. Trustor waives presentment, demand for payment, a notice of dishonor, a notice of protest and nonpayment, protest, a notice of interest on interest and late charges, and diligence in taking any action to collect any sums owing under the Grant Documents or in proceedings against the Security, in connection with the delivery, acceptance, performance, default, endorsement or guaranty of this Deed of Trust.

ARTICLE 8:

MISCELLANEOUS
Section 8.1 Amendments. This instrument cannot be waived, changed, discharged, or terminated orally, but only by an instrument in writing signed by Beneficiary and Trustor.

Section 8.2 Reconveyance by Trustee. Upon written request of Beneficiary stating that all sums secured hereby have been paid or forgiven, and upon surrender of this Deed of Trust to Trustee for cancellation and retention, and upon payment by Trustor of Trustee's reasonable fees, Trustee shall reconvey the Security to Trustor, or to the person(s) legally entitled thereto.

Section 8.3 Notices. If at any time after the execution of this Deed of Trust it shall become necessary or convenient for one of the parties hereto to serve any notice, demand, or communication upon the other party, such notice, demand or communication shall be in writing and shall be served: (1) personally with a delivery receipt; (2) by depositing the same in the certified United States mail, return receipt requested, postage prepaid; or (3) by reputable express delivery service with a delivery receipt; and (a) if intended for Beneficiary shall be addressed to:

City of Stockton Public Works Department
22 E. Weber Avenue, Room 301
Stockton, CA 95202-2326
Attn: Public Works Director
EXHIBIT 2 763
2048\15\3704242.3 12
With copies to:

Office of the City Attorney
425 North El Dorado Street
Stockton, CA 95202
and (b) if intended for Trustor shall be addressed to:

Miracle Mile Community Improvement District
221 Tuxedo Court, Suite B
PO Box 4016
Stockton, CA 95204
Attn: Executive Director
Any notice, demand, or communication shall be deemed given, received, made or communicated on the date shown on the delivery receipt as the date of delivery, the date delivery was refused, or the date the item was returned as undeliverable. Either party may change its address at any time by giving written notice of such change to Beneficiary or Trustor as the case may be, in the manner provided herein, at least ten (10) days prior to the date such change is desired to be effective.

Section 8.4 Successors and Joint Trustors. Where an obligation is created herein binding upon Trustor, the obligation shall also apply to and bind any transferee or successors in interest. Where the terms of the Deed of Trust have the effect of creating an obligation of Trustor and a transferee, such obligation shall be deemed to be a joint and several obligation of Trustor and such transferee. Where Trustor is more than one entity or person, all obligations of Trustor shall be deemed to be a joint and several obligation of each and every entity and person comprising Trustor.

Section 8.5 Captions. The captions or headings at the beginning of each Section hereof are for the convenience of the parties and are not a part of this Deed of Trust.

Section 8.6 Invalidity of Certain Provisions. Every provision of this Deed of Trust is intended to be severable. In the event any term or provision hereof is declared to be illegal or invalid for any reason whatsoever by a court or other body of competent jurisdiction, such illegality or invalidity shall not affect the balance of the terms and provisions hereof, which terms and provisions shall remain binding and enforceable. If the lien of this Deed of Trust is invalid or unenforceable as to any part of the debt, or if the lien is invalid or unenforceable as to any part of the Security, the unsecured or partially secured portion of the debt, and all payments made on the debt, whether voluntary or under foreclosure or other enforcement action or procedure, shall be considered to have been first paid or applied to the full payment of that portion of the debt which is not secured or partially secured by the lien of this Deed of Trust.

Section 8.7 Governing Law. This Deed of Trust shall be governed by and construed in accordance with the laws of the State of California.

EXHIBIT 2 764
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Section 8.8 Gender and Number. In this Deed of Trust the singular shall include the plural and the masculine shall include the feminine and neuter and vice versa if the context so requires.

Section 8.9 Deed of Trust, Mortgage. Any reference in this Deed of Trust to a mortgage shall also refer to a deed of trust and any reference to a deed of trust shall also refer to a mortgage.

Section 8.10 Actions. Trustor agrees to appear in and defend any action or proceeding purporting to affect the Security.

Section 8.11 Substitution of Trustee. Beneficiary may from time to time substitute a successor or successors to any Trustee named herein or acting hereunder to execute this Trust. Upon such appointment, and without conveyance to the successor trustee, the latter shall be vested with all title, powers, and duties conferred upon any Trustee herein named or acting hereunder. Each such appointment and substitution shall be made by a written instrument executed by Beneficiary, containing reference to this Deed of Trust and its place of record, which, when duly recorded in the proper office of the county or counties in which the Property is situated, shall be conclusive proof of proper appointment of the successor trustee.

Section 8.12 Acceptance by Trustee. Trustee accepts this Trust when this Deed of Trust, duly executed and acknowledged, is made public record as provided by law. Except as otherwise provided by law Trustee is not obligated to notify any party hereto of pending sale under this Deed of Trust or of any action or proceeding in which Trustor, Beneficiary, or Trustee shall be a party unless brought by Trustee.

EXHIBIT 2 765
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IN WITNESS WHEREOF, Trustor has executed this Deed of Trust as of the day and year first above written.

By: Miracle Mile Community
Improvement District, a California 501
(c)(3) nonprofit public benefit
corporation
By:

Printed name: ____________________
Title: ___________________________
Date: ___________________________
APPROVED AS TO FORM:

LORI M ASUNCION

CITY ATTORNEY
By:_________________________
By: _________________________

HARRY BLACK

CITY MANAGER
ATTEST:

KATHERINE ROLAND, CMC, CPMC

CITY CLERK
By: _________________________
EXHIBIT 2 766
A-1
2048\15\3704242.3
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

State of California )
County of San Joaquin )
On _________________________ before me, ____________________________,personally appeared ________________________________________,who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

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

WITNESS my hand and official seal.

Signature
Signature of Notary
Place Notary Seal Above

ACKNOWLEDGMENT
EXHIBIT 2 767
A-2
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EXHIBIT A

LEGAL DESCRIPTION OF THE PROPERTY
The land described herein is situated in the State of California, County of San Joaquin, City of Stockton, described as follows:

PARCEL ONE:

A Certificate of Correction recorded March 24, 1995, as Document No. 95026301, and a Certificate of Correction recorded July 21, 1995, as Document No. 95065371, San Joaquin County Records.

APN: 094-370-09
PARCEL TWO:

A Certificate of Correction recorded March 24, 1995, as Document No. 95026301, and a Certificate of Correction recorded July 21, 1995, as Document No. 95065371, San Joaquin County Records.

A Notice of Lot Merger recorded June 13, 2008, as Document No. 2008-098082, San Joaquin County Records.

APN: 094-370-27
EXHIBIT 2 768
Redevelopment of
the Miracle Mile

PUBLIC SAFETY/MAINTENANCE SUBSTATION/PARKING
COUNCIL MEETING DATE: DECEMBER 3, 2024
COUNCIL AGENDA ITEM 15.3
769
Background & Purpose
Budget Act of 2023 appropriated $3.1M from State General Fund to Caltrans, to be allocated to City of Stockton.

Funding will allow for increased public safety improvements, acquisition of a maintenance substation, and enhanced
parking improvements.

On July 9, 2024, City Council approved the execution of a Funds Transfer Agreement between City and Caltrans.

In September 2024, Public Works released a Single Available Source Notice of Funding Availability (NOFA).
770
NOFA
Response
 On October 31, 2024, the City received
a response to the NOFA from the Miracle
Mile Community Improvement District
(MMCID).
 MMCID is requesting $3.1M to:
 Acquire property at 230-250 Dorris
Place and 231 Bedford Road and
make renovations to establish a
Maintenance Substation.
 Add security cameras and
pedestrian lighting within Miracle
Mile.
 Add landscaping, parking lot,
garbage corral and other needed
maintenance within Miracle Mile.

Improvement Type Funding Amount
Maintenance Substation Acquisition $975,000
Property Renovations $525,000
Public Safety Improvements $750,000
Parking Improvements/Maintenance $850,000
Total $3,100,000
771
Recommendation
 MMCID’s funding request meets the purpose and intent of the funding requirements.
 Staff recommends that City Council adopt a resolution:

1. Approving a grant award of $3,100,000 to the MMCID for the Redevelopment of the Miracle Mile: Maintenance Substation/Public Safety/Parking; and,

2. Authorizing the City Manager to execute a Grant Agreement for the Redevelopment of the Miracle Mile: Maintenance Substation/Public Safety/Parking.
772
Questions?
773
City of Stockton
Legislation Text
File #: 24-1230, Version: 1
ACCEPT THE FISCAL YEAR 2023-24 FOURTH QUARTER BUDGET STATUS UPDATE,

AUTHORIZE BUDGET AMENDMENTS, AND MAKE ALLOCATIONS TO GENERAL FUND

RESERVES

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

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

2. Allocate the General Fund Vacancy Savings budget reduction for FY 2023-24 from Other Administration (Non-Departmental) category to the following departments:

Reduce Expenditure Budget:

Department Division/Fund Amount
a. City Clerk 1110-100-000 $ 5,700
b. City Manager 1230-100-000 $147,100
c. Office of Violence Prevention 1220-100-000 $ 6,900
d. City Attorney 1410-100-000 $ 99,400
e. Economic Development 6000-100-000 $106,400
$365,500
Increase Expenditure Budget:

Other Administration 0010-100-000 $320,400
Office of Violence Prevention (Measure A)1220-100-115 $ 45,100 $365,500

3. Authorize a reserve for future appropriation of $1,073,000 from FY 2023-24 available funds for the estimated increase in the Assured Guaranty Settlement contingent payments for a total reserve of $3,010,000.

4. Authorize a FY 2023-24 General Fund appropriation of $23,225,000 for Council priority projects, as displayed in Table 4.

5. Allocate available fund balance to reserve categories consistent with the Council Reserve and Fund Balance Policy - General Fund Policy. The net increase in fund balance will be added to the current reserve levels, as displayed in Table 3, to achieve the total reserve amounts as follows:

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Priority 1 Reserves
Working Capital $54,700,000
Known Contingency $73,500,000
Priority 2 Reserves
Risk-Based Reserves $10,800,000

6. Authorize the continuation of up to $404,681 in FY 2023-24 budget appropriations to FY 2024- 25 for completion of identified programs as displayed in Table 5.

7. Authorize a FY 2023-24 budget amendment increasing expenditure and revenue appropriations in the Downtown Marina Fund by $25,310.

8. Authorize a FY 2023-24 budget amendment increasing Community Development Block Grant (CDBG) Revolving Loan expenses by $59,410.

9. Authorize the addition of one (1) full-time Fire Prevention Inspector I/II position to the FY 2024- 25 Fire Prevention Development Services Fund budget, effective January 1, 2025.

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

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

The City has experienced higher than anticipated General Fund revenues and lower than anticipated expenditures. Projected revenues of $325.6 million are $20.1 million higher than the adopted budget.

Projected expenditures of $335.3 million are $16.9 million less than the adopted budget. The fiscal year-end projected numbers reflect actuals as they currently stand but are unaudited and subject to changes before the Annual Comprehensive Financial Report (ACFR) is published.

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

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

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A fund is a set of accounts designed to track a specific kind of financial activity. Each fund is its own business entity and consists of its own “set of books” and specific rules. This allows the City to provide and account for different kinds of activities and departments separately. The General Fund is the City’s largest and most important fund. It is the fund which provides for most of the City’s fundamentally necessary or “general” activities such as public safety. The City’s General Fund balance is also considered unassigned, which means that it is not tied to a specific service or type of expenditure, although most of the General Fund has been assigned to restricted balances. The remainder of the General Fund might be used to support or enhance any service that the City might require.

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

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

Present Situation
General Fund
Staff analyzed General Fund unaudited expenditure and revenue results for the full 12 months of FY 2023-24, as shown in Attachments A and B. The City’s financial statements have not yet undergone the full annual audit process and are subject to change. Staff will provide audited financial statements for all funds through the publication of the ACFR. Attachment A summarizes the City's General Fund revenues, expenditures, and available balance by Approved Budget, Year-End Projection, and variance amounts.

Council adopted the FY 2023-24 Annual Budget of $912.1 million in appropriations, including $289.7 million in General Fund appropriations, on June 20, 2023. Throughout the fiscal year, Administrative and Council-approved amendments to the adopted budget increased the total General Fund expenditure appropriations to $352.2 million, mainly resulting from one-time appropriations for Citywide projects and operating budget adjustments based on approved employee labor agreements.

Summary Tables
Staff reviewed the City’s unaudited Fourth Quarter (Q4) FY 2023-24 financial activity in the General Fund (Attachment A). The following tables summarize the results of the Fourth Quarter / Year-End review of General Fund compared to the Approved Budget:

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Summary Revenues and Expenditures
The General Fund ended FY 2023-24 with revenues that were 6.6% above the Approved Budget of $305.4 million. At year-end, City staff are reporting a total of $325.6 million in revenue. Investment income and business license tax revenues accounted for most of the variance between what was budgeted and actual receipts.

The General Fund Ended FY 2023-24 with expenditures that were 4.8% below the approved budget.

The General Fund had an approved expenditure budget of $352.2 million. At year-end, City staff are reporting a total of $335.3 million in expenditures on a budgetary basis. Vacancy savings accounted for most of the variance between what was budgeted and what was spent.

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

The approved budget originally expended or committed $46.7 million more than anticipated revenues. At year-end, the City’s books show that the City only expended or committed $9.7 million in excess of anticipated revenues.

A combination of global and local economic factors and salary savings have led to the net position being $37.0 million more than initially anticipated. It is recommended that a portion of these savings be programmed towards Council priority items and that the remainder be put towards reserves, saving for future commitments and potential economic downturns.

General Fund Revenues
As generally described in the previous section, overall revenues came in higher than anticipated compared to the Approved Budget. Below is a discussion of selected categories of General Fund revenues (also displayed in Attachment B). Chart 1 shows the various revenue categories as a percent of total General Fund revenues.

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Chart 1: Revenues by Category
Sales Tax Collections, the General Fund’s largest revenue source, are expected to be $1.3 million greater than the budgeted level of $123.8 million. Measure A is projected to be $124,331 less (0.3%) than the budgeted amount of $46.3 million. At $125.1 million, Sales Tax receipts make up approximately 38.4% of all General Fund revenues.

Current year-end sales tax receipts for FY 2023-24 are projected to be 1.1% more than budgeted and 1.2% less than FY 2022-23 receipts. Revenues have been difficult to predict in recent years but have been higher than usual due to national factors caused by a rapidly changing economy.

Property Tax revenue estimates (including Motor Vehicle In-Lieu Fees) are up $2.7 million or 3.6% compared to the Approved Budget. Property Tax receipts make up approximately 23.6% of the City’s General Fund revenues. They are remitted to the City each year by the County of San Joaquin in January and April. Property Tax growth is attributable to increasing home values, commercial and industrial construction, and new home construction.

Utility Users Tax (UUT) is a 6% tax imposed on the users of various utilities and represents 13.1% of General Fund revenues. The FY 2023-24 UUT receipts are projected to be $42.8 million, which is

5.7% higher than the Approved Budget of $40.5 million. UUT is subject to a certain degree of volatility as consumers’ use of utilities can be dependent on weather conditions, conservation efforts, and the availability of substitutes. Most of the additional revenue has come from Electric & Gas - projected to City of Stockton Page 5 of 15 Printed on 11/26/2024
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be $1.8 million more than budgeted and make up 9.7% of total General Fund revenues.

While electricity and gas, water and telecommunication revenues were higher than anticipated, cable and telecommunications revenues declined compared to prior year receipts. Telecommunication revenue is projected to be 10.3% higher than anticipated yet 6.2% lower than prior year. As wireless technologies continue to expand, telecommunications will decline in usage as an ongoing trend.

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

These businesses are charged based on a percentage of income generated. Revenues from Electric & Gas came in 4.4% higher than budget, and Waste Haulers came in 9.1% higher than budget. The PG&E variance is attributable to the same reasons discussed in the UUT section above. The waste haulers’ variance is attributable to a City audit of businesses resulting in identifying entities that did not have required services and requiring them to sign up for the mandatory service. This audit resulted in more commercial waste hauler activity than in prior years.

Business License Tax revenues make up 5.8% of revenues. Business License Taxes are expected to end the year at $19.0 million or 27.9% more than budgeted. Approximately 50% of business license tax collections occur in the last three months of the fiscal year, and this timing contributes to the volatility of year-end revenue projections. In addition, new efficiencies and cleanup related to the implementation of the City’s new financial system have resulted in more accurate and timely billing and bringing old accounts current. The increased revenues also include new types of Cannabis businesses permitted in previous years but only recently generating business license revenues based on sales. Cannabis revenues are projected to be $4.1 million or 21.6% of total Business License Tax revenues.

Hotel/Motel Tax revenues were $66,997 greater than the budget of $3.5 million and came in 2.5% more than the prior year revenues of $3.4 million.

Motor Vehicle License revenue receipts of $399,537 are 18.1% more than the budgeted amount of $338,181 and almost $68,000 more than FY 2022-23.

Interest Proceeds are highly dependent on unpredictable market performance. These amounts include proceeds from investments and the benefit of paying the full amount of the CalPERS Unfunded Accrued Liability payment in July rather than over the course of a year. Interest income is estimated to be $7.4 million, coming in $5.1 million more than the budget. Additional investment earnings are due primarily to more cash on hand from one-time federal grant dollars and improved revenues as well as favorable performance of the City’s investment portfolio. This return on investments is not expected to be maintained as one-time funding sources are expended and the investment environment normalizes.

Program Revenues are above budget by $4.3 million (25%). The categories with the most significant variances are discussed below:
· Fines & Forfeitures revenues have fluctuated, falling short of budget expectations by $244,439, or 43.6%. Traffic and parking enforcement activities that result in fine and forfeiture revenues often decline when the Police Department is experiencing higher vacancies as employee resources are deployed differently.

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· Revenues from other Agencies ended the year up by 83.4% or $3.5 million more than the budgeted amount, mainly due to $2.67 million above budget in the City’s share of Redevelopment Property Tax Trust Fund monies. The City also received State Mandated Cost reimbursements of $502,222 more than anticipated.
· Licenses & Permits came in 55.9% lower than budgeted or $381,331 · Miscellaneous Other Revenues are heavily influenced by the allowance for doubtful accounts adjustment as well as the year-end bank reconciliation. As such, it is very difficult to anticipate and varies widely depending on the timing of the entry. It ended the year at $164,197 after being budgeted at ($96,700) for an increase of $260,897.

Refund & Reimbursement revenues came in 33.4% higher than budgeted or $81,710, largely due to cash reimbursement for training costs, as well as escheated checks, which are difficult to anticipate and budget for as the City’s assumption is that no checks will remain unclaimed.

General Fund Expenditures
Staff reviewed year-end General Fund expenditures as detailed in Attachment A. General Fund expenditures are projected to end the year at $335.3 million, which is $16.9 million, or 4.8% less than the Approved Budget. Except for Other Administration and City Auditor, all General Fund departmental activities ended the fiscal year below their appropriation levels.

Chart 2: General Fund Income Statement Illustration (in millions of dollars) The FY 2023-24 Budget included approximately $12.0 million in anticipated salary savings, which is

5.8% of the total salary and benefits budget of $206.5 million (includes full-time and part-time expenses). The competitive labor market continues to make retention and recruitment difficult. The high spike of prior years is starting to level off, through slower than anticipated. In FY 2022-23, the City of Stockton Page 7 of 15 Printed on 11/26/2024
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vacancy rate was 15.4% and came down in FY 2023-24 with a total General Fund vacancy rate of

12.3%. The unanticipated additional savings of $13.3 million is the most significant cause of expenditure savings in the General Fund.

Below is a summary of those savings by department before factoring in budgeted vacancy savings.

Table 2: FY 2023-24 General Fund Vacancy Savings
Year End
% Realized
of Salary
Department Annual Savings Budget
General Fund
Other Departments 354,066 1,391,577 8.1%
Administrative Services 233,110 1,259,343 24.0%
Human Resources 74,240 428,505 21.8%
Police 6,868,564 16,317,517 15.7%
Fire 1,916,152 3,548,325 7.8%
Public Works 379,569 821,799 9.7%
9,825,701 23,767,065 13.7% -
Marshall Plan
Office of Violence Prevention 42,768 (2,323) -0.2%
Police 2,149,267 1,616,875 5.1%
2,192,035 1,614,552 4.9%
Total 12,017,736 25,381,618 12.3%
Total Savings above/(below) Budget 13,363,882
Budgeted
Vacancy
Savings
The Police Department spent $10.4 million (6.4%) less than its authorized budget primarily due to vacancy savings. The department expanded recruitment efforts during FY 2023-24 via attendance at local events, media advertisements and partnering with local educational institutions to pipeline students into a police field. As a result of these efforts, 48 officers were hired. Despite this, the department experienced 52 departures. Effective April 1, 2024, the City reprogrammed the efforts of recruitment to focus on retention benefits for all existing officers. It is expected that these expanded benefits will increase the City’s competitiveness in the law enforcement recruitment field.

The Fire Department ended the fiscal year with approximately $2.3 million in savings or 4.0% of the budget primarily due to vacancies. Fire Academy 23-2 and Fire Academy 24-1 successfully graduated Firefighter trainees that filled 20 vacant positions. Personnel attrition continued throughout the fiscal year and created additional vacancies of 22 sworn positions at the end of FY 2023-24.

In the Program Support for Other Funds category, the only notable budget variance is in the grant match category. There were no grants requiring matching funds from the General Fund in FY 2023- 24, leaving an unspent balance of $100,000. Grant match needs vary from year-to-year based on grant award requirements.

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Administrative Services, and Human Resources) cumulatively, came in 10.8% under budget primarily due to vacancy savings ($2.0 million out of a total $3.0 million). One item of note: The Other Administration category shows an overage because it includes budgeted vacancy savings for smaller departments in the General Fund. A recommended budget amendment to spread this negative budget to the City Clerk’s Office, City Manager’s Office, the Office of Violence Prevention, City Attorney, and Economic Development will result in a positive balance.

Fund Balance and Reserves
With the above General Fund revenue and expenditure results, the variance from the FY 2023-24 budget is approximately $37.0 million. Expenditure savings are one-time dollars that should be spent on one-time costs. The revenues received over the budgeted amount are also one-time funds but can be indicative of an ongoing source of funds. Of the $20.2 million revenue variance, $5.9 million was known and incorporated into long-term planning during the most recent budget cycle for the FY 2024-25 Budget. At that time, it was programmed toward a variety of new expenditures. The City Council also approved successor labor agreements with four employee units in September 2023 that added ongoing expenses which draw on these revenue sources. The table below shows the previous commitments against the $37.0 million budget variance.

It is recommended that one commitment be funded out of the year-end balance before reserves or special projects are considered.

1. $1,073,000 is set-aside for future payments to Assured Guaranty under the City’s bankruptcy settlement. The increased revenue receipts in FY 2023-24 will increase future payments by $1,073,000. The net increase in funding need is $483,000. This amount will be added to funds set aside in prior years for a total restriction of $3.0 million.

2. City Council previously approved Resolution 2024-11-19-1503, to transfer $2,000,000 from the General Fund Reserve balance to the Health ISF Fund to address the impact of health care premium increases of the City’s employees.

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After the above commitments, there is expected to be $29.7 million in fund balance that is not assigned to any kind of reserve, made up of non-spendable assets (such as inventory), nor encumbered or carried forward for future years expenditures by prior Council action. This resolution recommends that $23.2 million be set aside for the Council projects and $11.2 million be assigned to the various reserves.

Per the City Council General Fund Reserve Policy, the target reserve levels are as follows. These target funding levels are based on calculations that are adopted each year as part of the annual budget process. The target under the reserve policy totals $237.0 million. With recommended increases to the Working Capital Reserve ($6.4 million) and to the Known Contingency Reserve ($4.8 million), the total funded reserves would be $138.1 million.

Target Level Recommended Funding
Priority 1:

1. Working Capital $54.7 million $54.7 million

2. Known Contingencies $93.3 million $73.5 million
Priority 2:

3. Risk-Based Reserves $89.0 million $10.8 million
While there is sufficient funding to fully fund the Priority 1 reserves, the recommendation is to use a portion of these funds to improve services and facilities for the community. This approach will balance the City’s priorities, follow the reserve policy, fund vital Council priority projects while safeguarding against the immediate economic slowdown.

Funding for Projects
City departments proposed over $39.0 million in potential uses for $23.2 million in year-end funds.

Table 4 below is a summary of the recommended projects from that list. In addition to the listed projects, Staff is recommending that $3.0 million be reserved for one-time Council priority projects to be allocated as directed by the Council.

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

The graph below illustrates the short and long-term impact on the General Fund available balance forecast compared to the 16.7% Working Capital reserve and the 5% warning level. The bars depict the General Fund ending available fund balance at each fiscal year-end beginning with actual balances for FY 2019-20 through FY 2023-24 and continuing forward based on forecasts. The light blue bars represent the Working Capital reserve. The dark blue portion of the bars includes both Known Contingency and Risk-Based reserves. The yellow bars represent the projected Pension Trust balance.

As shown in the graph, the available balance is above the 16.7% goal for all projected years due to updated revenue projections. The graph assumes that the City draws on the Pension Trust, represented by the yellow bars, to make annual payments to CalPERS starting around FY 2028-29.

Chart 3: Long-Range Financial Plan reflects the recommended actions to allocate $23.2 million to priority projects and to increase reserves by $11.2 million.

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Other Funds
Attachment C summarizes the FY 2023-24 unaudited fiscal year-end results for all other significant City funds. All funds are coming in under budget except Economic Development’s Downtown Marina Fund and Federal Housing Grants Fund CDBG - Revolving Loan. Operation expenses for Marina continue to increase every year, primarily due to minimum wage increases and higher cost of security. Revenues are over budget by 7% and expenditures are over budget by about 4%. The additional revenues received will cover the overage in expenses, so a $25,310 budget amendment increasing both revenues and expenditures is recommended. For the Federal Housing Grant Fund CDBG - Revolving Loan an increase in outreach and marketing of the Single-Family Rehab program resulted in an increase of applications received and approved. There is sufficient fund balance to offset the overage of $59,410, so a budget amendment increasing expenditures is recommended.

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

Continuation of FY 2023-24 Appropriations
Pursuant to Section 1908 of the City Charter, operating budget appropriations lapse at the end of each fiscal year if not expended or encumbered. With this requirement in place, programs lose funding at year end unless Council takes action to continue the appropriation into the following fiscal year. Following a review of budgets and activities in FY 2023-24, departments have identified funded programs that could not be encumbered or completed prior to the end of the fiscal year on June 30, 2024. To complete these programs, it is recommended that the FY 2023-24 budgets identified in the table below be continued to FY 2024-25 to complete the specific programs listed in the following table. Budget balances for each program will be reviewed and only available balances will be continued to FY 2024-25.

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Table 5: Carryforward Requests
Description Department Fund Not to Exceed
Amount
Data Warehouse Cloud
Services Software
City Manager - OPDA General Fund 18,000
Chamber of Commerce
STAART Program
Non-Departmental General Fund 20,000
Fire Truck No. 7 One-Time
Equipment
Fire Department General Fund 116,681
El Concilio Community
Center Repairs
Economic Development General Fund 250,000
Total $404,681
Mid-Year Position Request
Last year, the Fire Prevention Division conducted over 7,500 fire code inspections to ensure compliance with the California Fire Code (CFC). Additionally, the Division took on the responsibility of inspecting over 1,900 state-mandated R-2 multi-family dwellings. These inspections, previously performed by suppression personnel, were reassigned to Fire Prevention to maintain emergency response capacity and ensure all inspections are completed on schedule.

Currently, Fire Prevention approved budget includes eight (8) Fire Prevention Inspectors, one (1) Supervising Fire Prevention Inspector, and six (6) part-time Program Specialists (Fire Prevention Inspector I/II). However, reliance on part-time personnel has proven to be inefficient, as many leave for full-time opportunities after the City has invested in their training. This turnover results in the loss of training investments and impedes the Division’s ability to meet inspection targets.

To address these issues, staff recommends converting three (3) current vacant part-time Program Specialist positions into one (1) full-time Fire Prevention Inspector I/II position. This change would reduce turnover-related training costs, improve retention, and ensure Fire Prevention can meet inspection demands in compliance with CFC standards.

FINANCIAL SUMMARY
This report provides an analysis of FY 2023-24 Fourth Quarter budget status results. The unaudited 12-month period review indicates General Fund revenue increases and expenditure savings are estimated to result in a year-end balance that can fully fund the Working Capital Reserve and mostly fund the Known Contingency Reserve. No additional funding is being contributed toward Priority II - Risk-Based Reserves.

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

1. Accept this budget status report on the unaudited results of the Fourth Quarter of FY 2023-24.

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

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Reduce Expenditure Budget:

Department Division/Fund Amount
City Clerk 1110-100-000 $ 5,700
City Manager 1230-100-000 $147,100
Office of Violence Prevention 1220-100-000 $ 6,900
City Attorney 1410-100-000 $ 99,400
Economic Development 6000-100-000 $106,400
$365,500
Increase Expenditure Budget:

Other Administration 0010-100-000 $320,400
Office of Violence Prevention (Measure A)1220-100-115 $ 45,100 $365,500

4. Authorize a FY 2023-24 appropriation of $23,225,000 from the General Fund balance for Council priority projects identified in the resolution.

Priority 1 Reserves
Working Capital $54,700,000
Known Contingency $73,500,000
Priority 2 Reserves
Risk-Based Reserves $10,800,000

6. Authorize the continuation of up to $404,681 in FY 2023-24 budget appropriations to FY 2024-25 for completion of identified programs.

7. Authorize a FY 2023-24 budget amendment increasing expenditure and revenue appropriations in the Downtown Marina Fund.

Division/Fund Amount
Increase Revenue Budget
Downtown Marina 6050-640-000 $ 25,310
Increase Expenditure Budget
Downtown Marina 6050-640-000 $ 25,310

8. Authorize a FY 2023-24 budget amendment increasing expenditure and revenue appropriations in the Federal Housing Grant Fund CDBG.

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Division/Fund Amount
Increase Expenditure Budget
CDBG Revolving Loan 6020-230-232 $ 59,410

9. Fire Prevention’s annual budget allocation for salary and benefit costs of three (3) part-time Program Specialists amounts to $101,805. One (1) full-time Fire Prevention Inspector, step 1, has an annual salary benefit cost of $110,080. Converting the three (3) part time positions to one (1) full time position is an increase of $8,275 in annual salary and benefit costs. There are sufficient vacancy savings in the part-time salaries account to offset the cost of the requested Fire Prevention Inspector I/II position for the remainder of FY 2024-25. Ongoing annual salary benefit costs will be incorporated into the Fire Department’s FY 2025-26 annual budget.

Attachment A - FY 2023-24 General Fund Year-End Budget Update Attachment B - FY 2023-24 General Fund Year-End Revenue Summary Attachment C - FY 2023-24 Year-End Report for Other Major Funds City of Stockton Page 15 of 15 Printed on 11/26/2024
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ATTACHMENT A
City of Stockton
FY 2023-24 Budget Update - Fourth Quarter
General Fund - 100 by Program (Budgetary Basis)
Projection Variance
Approved Year End vs. Approved from
Budget Projection Budget Budget
Beginning Available Balance $ 39,045,490 $ 39,045,490
Release of Funds* 62,337,838 62,337,838
101,383,328 101,383,328
Revenues
General Tax Revenues 232,931,661 249,432,422 16,500,761 7.1% Measure A/B Sales Tax 46,338,887 46,214,556 (124,331) -0.3% Program Revenues 17,221,440 21,528,348 4,306,908 25.0%
Interfund Reimbursements 8,949,916 8,435,038 (514,878) -5.8% 305,441,904 325,610,363 20,168,459 6.6%
Expenditures
Programs
Police 161,411,648 151,009,509 (10,402,139) -6.4%
Fire 60,610,969 58,214,372 (2,396,597) -4.0%
Public Works 21,928,870 21,559,956 (368,914) -1.7%
Economic Development 8,823,226 8,400,777 (422,449) -4.8% Office of Violence Prevention 2,265,599 2,142,813 (122,786) -5.4% 255,040,312 241,327,427 (13,712,885) -5.4%
Program Support for Other Funds
Library 4,109,000 4,109,000 - 0.0%
Recreation 5,378,592 5,378,592 - 0.0%
Entertainment Venues 4,446,074 4,446,074 - 0.0%
Downtown Marina 262,000 262,000 - 0.0%
Capital Improvement 44,550,931 44,550,931 - 0.0%
Golf Course 110,000 110,000 - 0.0%
Grant Match 100,000 - (100,000) -100.0%
Development Services 800,000 800,000 - 0.0%
59,756,597 59,656,597 (100,000) -0.2%
Administration
City Council 1,178,713 1,137,715 (40,997) -3.5%
City Manager 3,350,649 2,596,190 (754,459) -22.5%
City Attorney 1,488,127 1,154,388 (333,738) -22.4%
City Clerk 1,248,120 1,216,382 (31,738) -2.5%
City Auditor 1,095,040 1,095,040 - 0.0%
Administrative Services 6,838,554 5,765,381 (1,073,173) -15.7% Human Resources 9,364,245 8,789,587 (574,658) -6.1%
Tax Collection 2,755,005 2,402,069 (352,936) -12.8%
Elections 750,000 750,000 - 0.0%
Other Administration (255,191) 94,144 349,335 -136.9%
General Legal 500,000 253,509 (246,491) -49.3%
28,313,263 25,254,407 (3,058,857) -10.8%
Debt Service 9,061,425 9,061,425 - 0.0%
Contingency - - -
Total Expenditures 352,171,597 335,299,856 (16,871,741) -4.8% Net Annual Activity (46,729,693) (9,689,493) 37,040,200 Proj. Ending Available Balance $ 54,653,635 $ 91,693,835 $ 37,040,200 Fund Balance as % of Expenses 16% 27%
*Actuals are unaudited and may not include all closing activities 789
City of Stockton ATTACHMENT B
FY 2023-24 Fourth Quarter Revenues
General Fund - 100
Approved
Year-End
Projection
Year-end
Projection vs %
Budget as of 6/30/2024 Budget vs. Bdgt
General Tax Revenues
Sales Tax
Point of Sale $ 74,233,436 $ 75,634,261 $ 1,400,825 1.9% Measure A Transaction Tax 46,338,887 46,214,556 (124,331) -0.3% Proposition 172 3,218,074 3,282,900 64,826 2.0%
123,790,397 125,131,717 1,341,320 1.1%
Property Taxes
Property Taxes 43,251,000 45,400,107 2,149,107 5.0%
In-Lieu of Motor Vehicle Fees 31,042,455 31,590,015 547,560 1.8% 74,293,455 76,990,122 2,696,667 3.6%
Utility Users Tax
Water 5,020,799 5,474,074 453,275 9.0%
Electric & Gas UUT 29,536,687 31,369,421 1,832,734 6.2% Cable 2,562,827 2,224,859 (337,968) -13.2%
Telecommunications 3,382,714 3,730,737 348,023 10.3%
40,503,027 42,799,092 2,296,065 5.7%
Franchise Tax
Electric & Gas FT 3,010,218 3,143,211 132,993 4.4%
Cable/Video 2,049,381 1,325,534 (723,847) -35.3%
Waste Haulers 13,637,288 14,879,910 1,242,622 9.1%
Other 1,630 2,860 75.5% 1,230
18,698,517 19,351,515 652,998 3.5%
Business License Tax 14,874,886 19,021,880 4,146,994 27.9% Hotel/Motel Tax 3,453,342 3,520,339 66,997 1.9%
Document Transfer Tax 972,295 991,618 19,323 2.0%
Motor Vehicle License 338,181 399,537 61,356 18.1%
Investment Proceeds 2,346,448 7,441,158 5,094,710 217.1% 21,985,152 31,374,532 9,389,380 42.7%
Program Revenues
Fire Contracts 5,636,461 5,824,299 187,838 3.3%
Code Enforcement 4,051,319 4,376,086 324,767 8.0%
Charges for Services 2,407,795 2,551,757 143,962 6.0%
Fines & Forfeitures 560,382 315,943 (244,439) -43.6%
Revenues from Other Agencies 4,180,852 7,669,221 3,488,369 83.4% Licenses & Permits 381,331 168,147 (213,184) -55.9%
Sale of Fixed Assets 100,000 10,068 (89,932) -89.9%
Contributed Capital - 448,631 448,631
Misc. Other Revenues (96,700) 164,197 260,897 -269.8%
17,221,440 21,528,348 4,306,908 25.0%
Interfund Reimbursements
Indirect Cost Allocation 4,827,141 5,053,254 226,113 4.7% Refunds & Reimbursements 244,440 326,150 81,710 33.4%
Rents/Leases/Concessions 3,878,335 3,055,634 (822,701) -21.2% 8,949,916 8,435,038 (514,878) -5.8%
Total Revenues $ 305,441,904 $ 325,610,363 $ 20,168,460 6.6% % Change from Prior Year 7.0% 1.2%
*Actuals are unaudited and may not include all closing activities 2023-24
790
Attachment C
City of Stockton
FY 2023-24 Fourth Quarter
Financial Report for Other Major Funds
General Fund Subfunds
Measure A (Breakout of General Fund) Redevelopment & Land Acquisition 100-117 Fund Year to % of Year to % of
Budget Date Actual Budget Budget Date Actual Budget
Revenues 46,338,887 46,214,556 100% Revenues - (231)
Transfers from General Fund 1,940,000 1,940,000
1,940,000 1,939,769
Marshall Plan Expenditures Expenditures
Office of Violence Prevention 1,347,354 1,372,971 102% Land Acquisition 1,940,000 60,000 Police 37,675,180 36,752,628 98% Total Expenses 1,940,000 60,000 Total Expenses 39,022,534 38,125,598 98%
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 8,033,886 7,985,793 99% Revenues 4,896,441 5,014,413 102% General Fund Transfer 4,109,000 4,109,000 100% Expenditures 5,016,122 4,664,213 93% 12,142,886 12,094,793 100%
Expenditures Ending Balance 775,057 1,244,937
Administration 1,682,318 1,493,285 89%
Operations 1,765,090 1,518,816 86% Recreation 100-125 Fund Year to % of County Branches 7,367,538 6,470,527 88% Budget Date Actual Budget City Branches 3,687,235 3,313,855 90% Beginning Balance 1,465,071 1,465,071 Total Expenses 14,502,181 12,796,484 88%
Revenues 929,742 942,295 101%
Ending Balance 1,241,398 2,899,002 General Fund Transfer 5,378,592 5,378,592 100% off by -189,399.36 6,308,334 6,320,887 100%
Golf 100-126 Fund Year to % of Expenditures
Budget Date Actual Budget Administration 3,585,983 1,903,613 53% Beginning Balance 161,831 161,831 Recreation Programs 3,459,916 2,335,246 67% Total Expenses 7,045,899 4,238,859 60%
Revenues 22,094 31,826 144%
General Fund Transfer 110,000 110,000 100% Ending Balance 727,506 3,547,099 132,094 141,826 107% off by -168,309.00
Expenditures Boat Launch 100-140 Fund Year to % of
Administration 54,714 52,928 97% Budget Date Actual Budget Swenson Golf Course 62,500 249 0% Beginning Balance 1,189,600 1,189,600 Van Buskirk Golf Course 89,276 19,371 22%
Total Expenses 206,490 72,547 35% Revenues 386,652 378,622 98% Expenditures
Ending Balance 55,286 57,072 Operations & Maintenance 255,543 227,299 89% Capital Projects - - 0%
Entertainment Venues 100-145 Fund Year to % of Total Expenses 255,543 227,299 89% Budget Date Actual Budget
Beginning Balance 3,699,273 3,699,273 Ending Balance 1,576,252 1,568,222 Revenues 3,657,343 5,298,448 145%
General Fund Transfer 4,446,074 4,446,074 100%
Other Fund Transfer - -
8,103,417 9,744,522 120%
Expenditures
Administration 392,180 162,848 42%
Venue Operations 9,431,535 9,101,369 96%
Maintenance & Equip./Capital 1,603,982 600,539 37%
Total Expenses 11,427,697 9,864,756 86%
Ending Balance 374,993 3,579,038
791
Attachment C
City of Stockton
FY 2023-24 Fourth Quarter
Financial Report for Other Major Funds
Special Revenue Funds
Measure W 200 Fund Year to % of Development Services 220 Fund Year to % of Budget Date Actual Budget Budget Date Actual Budget
Beginning Balance 12,914,043 12,914,043 Beginning Balance 38,991,560 38,991,560 Revenues 15,328,904 15,645,862 102% Revenues 22,454,017 22,836,253 102% Expenditures General Fund Transfer 800,000 800,000 100% Police 7,552,496 7,736,007 102% 23,254,017 23,636,253 102% Fire 8,191,629 7,440,920 91% Expenditures
Total Expenses 15,744,125 15,176,927 96% Community Development 17,079,597 12,499,394 73% Fire 4,399,807 3,942,584 90%
Ending Balance 12,498,822 13,382,978 Capital 89,220 - 0% Total Expenses 21,568,624 16,441,978 76%
Strong Communities (Measure M) 210 Fund Year to % of
Budget Date Actual Budget Endging Balance 40,676,953 46,185,835 Beginning Balance 35,271,350 35,271,350
Revenues 15,039,465 16,209,338 108%
Expenditures
Library Programs 4,737,061 3,164,930 67%
Recreation Programs 6,437,304 4,232,450 66%
Administration 1,500,883 1,226,772 82%
Capital Projects 26,664,911 587,986 2%
Total Expenses 39,340,159 9,212,138 23%
Ending Balance 10,970,656 42,268,550
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 74,471,821 77% Revenues 6,180,215 7,449,803 121% Expenditures Expenditures
Administration 4,593,824 3,814,953 83% Administration 900,757 661,128 73% Operations & Maintenance 47,787,440 33,889,597 71% Parking Operations 3,049,006 3,271,433 107% Debt Service 37,257,177 16,589,151 45% Parking Enforcement 614,252 673,026 110% Capital 27,556,231 5,284,509 19% Debt Service 1,708,350 1,272,719 74% Transfers Out 465,549 - 0% Facility Improvements 1,597,717 472,575 30% Total Expenses 117,194,673 60,043,760 51% Total Expenses 7,870,082 6,350,881 81% Wastewater Utility 610 Funds Year to % of Downtown Marina 640 Fund Year to % of Working Capital Budget Date Actual Budget Working Capital Budget Date Actual Budget Revenues 190,285,485 95,880,694 50% Revenues 386,849 431,607 112% Expenditures General Fund Transfer 262,000 262,000 100% Administration 5,911,889 5,496,798 93% 648,849 693,607 107% Operations & Maintenance 129,145,758 55,345,657 43% Expenditures Debt Service 7,791,375 3,075,125 39% Administration 18,317 9,351 51% Capital 70,937,968 33,420,937 47% Operations 650,834 685,110 105% Transfers Out - 301,020 0% Capital - 0% -
Total Expenses 213,786,990 97,639,535 46% Total Expenses 669,151 694,460 104% Stormwater Utility 620 Funds Year to % of Golf 650 Fund Year to % of Working Capital Budget Date Actual Budget Working Capital Budget Date Actual Budget Revenues 8,294,258 6,364,519 77% Revenues - 0% -
Expenditures General Fund Transfer - 0% -
Administration 2,776,761 2,077,723 75% - 0% -
Operations & Maintenance 7,264,685 4,218,850 58% Expenditures Debt Service - 25 0% Administration - 0% -
Capital 2,296,441 269,193 12% Swenson Golf Course - 0% - Transfers Out - 41,244 0% Van Buskirk Golf Course 0 0% - Total Expenses 12,337,887 6,607,036 54% Total Expenses 0 0% - Fund 650 moved to new 100-126 (See above)
792
Attachment C
City of Stockton
FY 2023-24 Fourth Quarter
Financial Report for Other Major Funds
Internal Service Funds
PW Fleet Services 500 Fund Year End % of Retirement ISF 550 Fund Year End % of Budget Actual Budget Budget Actual Budget
Beginning Balance 20,523,017 20,523,017 Beginning Balance 23,354,029 23,354,029 Revenues 15,188,724 15,643,286 103% Revenues 94,133,606 79,893,224 85% Transfers In 807,812 - Expenditures 93,272,248 79,466,296 85% 15,188,724 16,451,098
Expenditures Ending Balance 24,215,387 23,780,956
Administration 1,876,411 1,414,840 75%
Operations & Maintenance 5,682,859 5,492,467 97% Other Benefits 560 Fund Year End % of Replacements 15,089,082 11,486,895 76% Budget Actual Budget Fuel 2,455,491 2,181,367 89% Beginning Balance 1,422,742 1,422,742 Debt Service 445,875 21,751 5%
Capital - - Revenues 2,780,483 3,413,951 123%
Total Expenses 25,549,719 20,597,320 81% Expenditures 2,607,177 1,842,280 71% Ending Balance 10,162,022 15,568,983 Ending Balance 1,596,048 2,994,413 Health Benefit ISF 540 Fund Year End % of General Liability Ins. ISF 520 Fund Year End % of Budget Actual Budget Budget Actual Budget
Beginning Balance 5,204,225 5,204,225 Beginning Balance 328,384 328,384 Revenues 32,658,120 29,977,940 92% Revenues 15,340,999 13,386,342 87% Expenditures 35,152,288 25,807,940 73% Expenditures 17,159,119 14,127,066 82% Ending Balance 2,710,057 9,374,225 Ending Balance (1,489,736) (412,340) Workers Comp ISF 530 Fund Year End % of IT Communications 510-515 Fund Year End % of Budget Actual Budget Budget Actual Budget
Beginning Balance 5,603,329 5,603,329 Beginning Balance 9,508,109 9,508,109 Revenues 13,864,188 15,501,748 112% Revenues 3,034,810 3,098,656 102% Expenditures 14,325,090 10,997,126 77% Expenditures 6,446,068 2,348,627 36% Ending Balance 5,142,427 10,107,951 Ending Balance 6,096,851 10,258,138 IT Technology 510-511 Fund Year End % of
Budget Actual Budget
Beginning Balance 39,377,636 39,377,636
Revenues 15,440,656 15,792,824 102%
Expenditures
Administration 1,725,608 1,583,904 92%
Operations 10,893,457 8,962,860 82%
Governance 13,690,109 4,584,327 33%
Capital 5,721,063 2,965,781 52%
Total Expenses 32,030,237 18,096,872 56%
Ending Balance 22,788,055 37,073,588
793
Resolution No.

STOCKTON CITY COUNCIL
RESOLUTION ACCEPTING THE FISCAL YEAR 2023-24 FOURTH QUARTER

BUDGET STATUS UPDATE REPORT, APPROVING THE RECOMMENDED
AMENDMENTS TO THE FISCAL YEAR 2023-24 AND FISCAL YEAR 2024-25

ANNUAL BUDGETS, AND AUTHORIZE THE ALLOCATION OF AVAILABLE FUND

BALANCE TO RESERVES
Fiscal Sustainability is one of the City Council’s goals; and City Council adopted the Fiscal Year (FY) 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) Accepts this budget status report on the unaudited results of the fourth quarter of FY 2023-24.
2) Allocates the General Fund Vacancy Savings budget reduction for FY 2023-24 from Other Administration (Non-departmental) category to the following departments:

Reduce Expenditure Budget:

Department Amount
a) City Clerk $ 5,700
b) City Manager $147,100
c) Office of Violence Prevention $ 6,900
d) City Attorney $ 99,400
e) Economic Development $106,400
$365,500
Increase Expenditure Budget:

Other Administration $320,400
Office of Violence Prevention (Measure A) $ 45,100
$365,500
794
3) Authorizes a reserve for future appropriation of $1,073,000 from FY 2023-24 available funds for the estimated increase in the Assured Guaranty Settlement contingent payments for a total reserve of $3,010,000. 4) Authorizes a FY 2023-24 General Fund appropriation of $23,225,000 for Council priority projects, as displayed below.
5) Allocates available fund balance to reserve categories consistent with the Council Reserve and Fund Balance Policy – General Fund Policy. The net increase in fund balance will be added to the current reserve levels to achieve the total reserve amounts as follows:

Priority 1 Reserves
Working Capital $54,700,000
Known Contingency $73,500,000
Priority 2 Reserves
Risk-Based Reserves $10,800,000
6) Authorizes the continuation of up to $404,681 in FY 2023-24 budget appropriations to FY 2024-25 for completion of identified programs as displayed below.
//
//
//
//
//
//
//
//
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795
Description Department Fund Not to Exceed
Amount
Data Warehouse Cloud
Services Software City Manager - OPDA General Fund 18,000 Chamber of Commerce
STAART Program Non-Departmental General Fund 20,000
Fire Truck No. 7 One-Time
Equipment Fire Department General Fund 116,681
El Concilio Community
Center Repairs
Economic
Development General Fund 250,000
Total $404,681
7) Authorizes a FY 2023-24 budget amendment increasing expenditure and revenue appropriations in the Downtown Marina Fund by $25,310. 8) Authorizes a FY 2023-24 budget amendment increasing Community Development Block Grant (CDBG) Revolving Loan expenses by $59,410. 9) Approves the addition of one (1) full-time Fire Prevention Inspector I/II position to the FY 2024-25 Fire Prevention Development Services Fund budget, effective January 1, 2025.
10) Authorizes the City Manager to take whatever actions are necessary and appropriate to carry out the purpose and intent of this Resolution.

PASSED, APPROVED, and ADOPTED ___December 3, 2024__ .

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

KATHERINE ROLAND, CMC, CPMC
City Clerk of the City of Stockton
796
FY 2023-24
Year-EndBudget Status Update
City Council Meeting
December 3, 2024Agenda Item 15.4
797
General Fund – Revenues
(Attachment B)
Budgeted Revenues
$ 305.4 million
Actual Revenues (unaudited)
$ 325.6 million
Higher Investment Proceeds ‐ $5.1 million
Program Revenue ‐ $4.3 millionBusiness License Tax ‐ $4.1 million Property Tax ‐ $2.7 millionBudgeted Revenues
$ 305.4 million
Actual Revenues (unaudited)
$ 325.6 million
Higher Investment Proceeds ‐ $5.1 million
Program Revenue ‐ $4.3 millionBusiness License Tax ‐ $4.1 million Property Tax ‐ $2.7 million
798
General Fund - Revenues
799
General Fund –
Revenue Trends
Blue bars
=
normalgrowthGreen bars= Pandemicgrowth
800
General Fund –
Expenditures (Attachment A)
Budgeted Expenditures $ 352.2 million
Actual Expenditures $ 335.3 million
Unanticipated Vacancy Savings ‐ $13.4 millionBudgeted Expenditures $ 352.2 million Actual Expenditures $ 335.3 million
Unanticipated Vacancy Savings ‐ $13.4 million
801
General Fund
Expenditures
(Attachment A)
249.4

46.2 21.5
(58.2)
(8.4)
(59.7)
(34.3) (9.7)

8.4 (153.2)
(21.6)
General
Taxes
Measure A
Sales Tax
Program
Revenues
Fund
Reimbursements
Police & Violence
PrevenƟon
Fire
Public Works &
Capital Projects
Economic
Develpment
Support for
Other Funds
AdministraƟon
& Debt
Net PosiƟon
802
General Fund
Budget Variance (Attachment A)
Revenues $20.17 Million
• 6.6% more than budget
Expenditures $16.87 Million
• 4.8% less than budget
________________
Variance from Budget $37.04 Million
Revenues $20.17 Million
• 6.6% more than budget
Expenditures $16.87 Million
• 4.8% less than budget
________________
Variance from Budget $37.04 Million
803
New $ Cumulative
Contingent Payment (result of higher revenues) 0.5 3.0 Health Premium Address Increase Impact 2.0 Working Capital 16.67% 6.4 54.7 Known Contingency 4.8 73.5 Total 13.8
(37.0)
Balance for Council Discussion $ 23.2
Uses of $37 Million Budget Variance(Dollars in Millions) Net Budget VarianceFormula Reserves
Commitments
804
General Fund Reserve
Policy and TargetsReserve
& Fund Balance Policy – General Fund
Targets set in June 2024Reserve
& Fund Balance Policy – General Fund
Targets set in June 2024
Recommended
Funding
Reserve Categories Reserve TargetsWorking Capital $54.7 million $54.7 million(16.67%)Known Contingency $93.3 million $73.5 millionRisk ‐Based $89.0 million $10.8 million
Total $237.0 million $139.0 million
805
Recommendations for $23.2 Million
(Dollars in thousands)
New City Hall 11,700
Stockton YESS Program 125
Class/Comp Study 100
West Lakes Fire Station Property 1,000
Redevelopment Fund 2,000Satellite Animal Shelter and Veterinary Clinic Facility 2,800 Banner Island Ballpark Renovation
‐ MLB Required 2,500
Subtotal
$ 20,225
Council Priority Project Funds 3,000
Total
$ 23,225
806
Long-Range Financial Plan
(Updated with Year-End)
807
Recommended
Budget Actions• Allocate $365,500 in vacancy savings from other administration ($320.4K) and OVP Measure
A ($45.1K) to:
• City Clerk
$ 5,700
• City Manager
$ 147,100
• Office of Violence Prevention
$ 6,900
• City Attorney
$ 99,400
• Economic Development
$ 106,400
• Authorize Budget Amendment to cover overages:
• Downtown Marina Fund by $25,310
• Federal Housing Grant Fund CDBG – Revolving Loan by
$59,410
• Allocate $365,500 in vacancy savings from other
administration ($320.4K) and OVP Measure
A ($45.1K) to:
• City Clerk
$ 5,700
• City Manager
$ 147,100
• Office of Violence Prevention
$ 6,900
• City Attorney
$ 99,400
• Economic Development
$ 106,400
• Authorize Budget Amendment to cover overages:
• Downtown Marina Fund by $25,310
• Federal Housing Grant Fund CDBG – Revolving Loan by
$59,410
808
Recommended
Budget Actions (cont.)• Authorize the continuation of up to $404,681 in FY 2023
‐24 budget appropriations to FY 2024
‐25 for:
• Data Warehouse Cloud Services Software
$ 18,000
• Chamber of Commerce STAART Program
$ 20,000
• Fire Truck No.
7 One
‐Time Equipment $116,681
• El Concilio Community Center Repairs $250,000
• Authorize the addition of one (1) full
‐time Fire Prevention
Inspector I/II position to the FY 2024
‐25 Fire Prevention
Development Services Fund, effective January 1, 2025.
• Authorize the continuation of up to $404,681 in
FY 2023
‐24 budget appropriations to FY 2024
‐25 for:
• Data Warehouse Cloud Services Software
$ 18,000
• Chamber of Commerce STAART Program
$ 20,000
• Fire Truck No.
7 One
‐Time Equipment $116,681
• El Concilio Community Center Repairs $250,000
• Authorize the addition of one (1) full
‐time Fire Prevention
Inspector I/II position to the FY 2024
‐25 Fire Prevention
Development Services Fund, effective January 1, 2025.
809
FY 2023-24 4th Quarter Report
Recommendation Summary
• Accept FY 2023‐24 budget status report
• Authorize two FY 2023‐24 Budget Amendments:
• Downtown Marina Fund• Federal Housing Grant Fund CDBG – Revolving Loan • Authorize reserve for Contingent payment
• Authorize continuation from FY 2023‐24 to FY 2024‐25
• Authorize FY 2023‐24 General Fund appropriation of $23.2 million for council priority projects
• Allocate General Fund Balance to reserves $139.0 million • Authorize one (1) full‐time Fire Prevention Inspector I/II position • Accept FY 2023‐24 budget status report
• Authorize two FY 2023‐24 Budget Amendments:
• Downtown Marina Fund• Federal Housing Grant Fund CDBG – Revolving Loan • Authorize reserve for Contingent payment
• Authorize continuation from FY 2023‐24 to FY 2024‐25
• Authorize FY 2023‐24 General Fund appropriation of $23.2 million for council priority projects
• Allocate General Fund Balance to reserves $139.0 million • Authorize one (1) full‐time Fire Prevention Inspector I/II position 810
City of Stockton
Legislation Text
File #: 24-0855, Version: 1

APPEAL OF THE PLANNING COMMISSION APPROVAL OF A COMMISSION USE PERMIT AND WAIVER TO ALLOW THE OFF-SALE OF BEER AND WINE AT AN EXISTING MARKET AT 2208 EAST MAIN STREET (P23-0182) (APN 155-350-01)

RECOMMENDATION
Staff recommends that the City Council adopt a resolution to deny the appeal and affirm the Planning Commission’s approval of a Commission Use Permit and Waiver to allow the off-sale of beer and wine at an existing market at 2208 East Main Street, based on the findings and subject to the conditions of approval incorporated in the proposed resolution.

Summary
On July 25, 2024, the Planning Commission held a public hearing to consider a Commission Use Permit with Waiver request (herein referred to as “Project”) to add the off-sale of beer and wine at an existing neighborhood specialty market that provides general merchandising of Latino/Hispanic goods and foods at 2208 East Main Street, known as “Mi Ranchito Market and Carnicería”. Six (6) individuals provided comments, of which three (3) were in opposition to the Project, two (2) were in support, and one (1) was an employee of the Project expressing customer support. Following comments and deliberation, the Planning Commission unanimously approved the Project by a vote of 5-0 (Commissioners Vielma and Jones absent).

On August 5, 2024, Mary Elizabeth filed an appeal to the City Council requesting reconsideration of the Planning Commission’s approval, citing overconcentration of the census tract. Mary Elizabeth is one of the three commenters that expressed opposition to the Project at the hearing.

The City Council is now asked to consider the appeal of the Planning Commission’s approval decision. As reflected in this staff report and in the proposed resolution, Staff recommends the City Council deny the appeal and affirm the Planning Commission’s July 25, 2024, approval of the Commission Use Permit and Waiver.

DISCUSSION
Background
On September 27, 2018, the Planning Commission held a public hearing to consider a similar Use Permit request to add the off-sale of alcoholic beverages (beer and wine) at the Project location, which proposed to transfer an existing off-sale license from 2280 East Main Street to the Project site.

At the time, the Project site did not comply with the location restrictions and was in an overconcentrated census tract. Staff recommended approval of the Use Permit with a Waiver to the location restrictions; however, the Project was denied due to a failure to obtain a majority vote of the City of Stockton Page 1 of 7 Printed on 11/26/2024
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Planning Commission, with a vote of 3-3 (1 commissioner recused). The Commission members who voted against the Project mentioned their vote was primarily due to concerns regarding existing overconcentration of off-sale Alcohol Beverage licenses in the census tract.

On July 7, 2023, the applicant, Mogalli Hussein Al Thabeti, filed an application for a Commission Use Permit and Waiver to add the off-sale of beer and wine (Type 20) at their existing general merchandise market and carnicería, known as “Mi Ranchito Market and Carnicería”, herein referred to as the “Project.” The requested Waiver was to waive the location requirement that restricted locating within 500 feet of other establishments that sell alcohol.

Staff reviewed the proposed Project and, although it did not meet all the location requirements without the Waiver, recommended the Planning Commission approve the requested Use Permit and Waiver, as permitted in SMC 16.80.040(D)(2) and find that the public convenience or necessity would be served by issuance of the Use Permit.

On July 25, 2024, the Stockton Planning Commission conducted a public hearing and considered the staff report and presentation, as well as a presentation from the applicant. There were three (3) members of the public who spoke against the item, citing concerns with overconcentration in the census tract and the effect of alcohol in low-income areas. Three (3) additional members of the public spoke in favor of the item. Two (2) written correspondences were received in opposition of the item.

The comments were as follows:

1. Pandora Crowder questioned the need for another alcohol sales establishment in south Stockton and the effects of alcohol consumption on domestic violence.

2. Pat Barrett read a written communication, later submitted to the City Clerk.

3. Mary Elizabeth spoke on crime data statistics, overconcentration, ABC moratorium, and lack of limitations/restrictions to types of alcohol beverages. Mary Elizabeth also submitted a written communication.

4. Germaine Rucker Jr spoke in support of the Project, citing the convenience of having one location to purchase in a “one-stop” location.

5. Jerry B. Wilson spoke in support of the Project, citing the convenience of having one location to purchase in a “one-stop” location.

6. José spoke in support of the Project, citing the convenience of having one location to purchase in a “one-stop” location.

The Planning Commission discussed the item and after closing the public hearing, voted unanimously by a vote of 5-0 (Commissioners Vielma and Jones absent) to approve the Project.

Project Description
The Project is located on the southeast corner of East Main and Court Streets and is within the Commercial, General (CG) zoning district and is surrounded by:
- Commercial uses to the west, zoned CG
- Vacant commercial building to the east, zoned CG
- Office and Residential building to the north, zoned CG - Residential building to the south, zoned Residential, Medium Density (RM) City of Stockton Page 2 of 7 Printed on 11/26/2024
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Mi Ranchito Market and Carnicería, is a specialty neighborhood market (grocery store) that carries a wide variety of Latin foods, fresh produce, cheese and meats, and other household products. They currently operate in an approximately 3,200 square-foot building at 2208 East Main Street. (Attachment A - Aerial Photo and Location Map).

According to the applicant, the proposed off-sale beer and wine beverages will be displayed in three (3) of the ten (10) existing walk-in coolers on the west side of the store, and on two (2) six-foot wide sections of shelves (Attachment B - Floor Plan), and will not exceed 20% of the gross floor area, per the municipal code. The market would continue to sell other merchandise goods and grocery items.

No expansion of the floor area of the market is proposed.

While the Department of Alcoholic Beverage Control (ABC) regulates the hours for the sale of alcohol between 6 a.m. to 2 a.m., a Use Permit is a discretionary action in which the City may evaluate and condition more restrictive hours for the sale of alcohol beverages. The proposed business hours for the market and for the sale of alcohol are from 8:00 a.m. to 10:30 p.m., Monday through Sunday In accordance with Stockton Municipal Code (SMC) Section 16.20.020, Table 2-2, “Allowable Land Uses and Permit Requirements,” a Commission Use Permit is required for the sale of alcohol for offsite consumption (Alcoholic beverage sales; Sale of alcohol-off-sale) and is required to comply with SMC Section 16.80.040 (Alcoholic beverage sales (on-sale and off-sale) and SMC Section 16.80.270 (Problem Uses).

While the proposed off-sale establishment does not comply with all location restrictions under SMC Section 16.80.040 as discussed under “Analysis” in this report, per SMC 16.80.040(D)(2) the location restrictions may be waived by the Planning Commission and City Council to promote and support local economic business growth throughout the City. All findings required under SMC 16.168.050(A) General Findings, SMC 16.168.050(B) Problem Uses, and SMC 16.168.050(C) Alcoholic Beverages can be made for the proposed Project.

Staff reviewed the Project as proposed and, although it would not meet all the location requirements without the Waiver, recommends that the City Council affirm the Planning Commission’s decision to approve the Use Permit and Waiver.

Present Situation

ANALYSIS
The appellant is requesting that the City Council overturn the Planning Commission’s approval on the grounds that the Project further contributes to overconcentration of alcoholic beverage establishments in the census tract.

In accordance with SMC Section 16.100.040(G)(1), the City Council may affirm the Commission’s actions, thus maintaining Project approval, or reverse the Commission’s actions with four (4) concurring votes (a majority vote) and deny the Project. Additionally, the Council may adopt additional conditions, in accordance with SMC Section 16.100.040(G)(2). Staff’s recommendation is to affirm the Planning Commission’s decision per the analysis provided below.

When evaluating applications for a new alcoholic beverage sales establishment, the proposed City of Stockton Page 3 of 7 Printed on 11/26/2024
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Commission Use Permit must be evaluated against the location restrictions identified in SMC Section

16.80.040 as referenced below.

Location Requirements
Sensitive Receptors - SMC Section 16.80.040(D)(2)(a)
Per SMC Section 16.80.040(D)(2)(a), new alcoholic beverage sales activities or establishments shall not be located within 500 feet of a public or private kindergarten through grade 12 academic school, nursery school, preschool, daycare facility, public park, playground, recreational area, or youth facility.

Staff thoroughly researched and evaluated the surrounding area in relation to the proposed site and concluded the Project location is in compliance with this section. Although most of the land uses within 500 feet of the site, specifically to the south, are residential, residential uses are not a factor in this section of the Code. Staff determined that the Project location does comply with the noted minimum required separation.

Crime Reporting District - SMC Section 16.80.040(D)(2)(d)(ii)(A) Per SMC Section 16.80.040(D)(2)(d)(ii)(a), the establishment shall not be in a crime reporting district, where the average number of crimes in that district exceeds the average number of crimes for all reporting districts citywide by more than 20 percent.

The subject site is located within Crime Report District 192, per data provided by the Stockton Police Department (SPD). The SPD data captured the reporting period in the district between October 16, 2021, and October 16, 2023.The data shows the citywide average for all reporting districts is 209 calls for service. At 181 calls for service, Crime Report District 192 is at 87% of the citywide average.

Staff has determined that the Project location does comply with this location restriction as it is located in a crime reporting district that does not exceed the city-wide average number of crimes by over 20 percent. (Attachment C - Calls for Service).

Existing Off-sale Licenses - SMC Section 16.80.040(D)(2)(ii)(B) The establishment shall not be located in an area within 500 feet of an existing off-sale alcoholic beverage establishment or any location that will lead to the grouping of more than four (4) off-sale alcoholic beverage establishments within a 1,000-foot radius. Based on ABC records (Attachment D - ABC Records), there are two (2) existing off-sale ABC licenses within 1,000 feet, and more specifically within 500 feet, of the Project site, they are:
o A Market ±50 feet west of the Project site at 2196 East Main Street. o A Liquor Store ±460 feet east of the site at 2280 East Main Street.

Approval of this Use Permit does comply with the 1,000-foot grouping requirement because it does not result in a grouping of four (4) or more off-sale establishments; however, it does not City of Stockton Page 4 of 7 Printed on 11/26/2024
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comply with the 500-foot separation requirement from another off-sale establishment (Attachment E - CT 19 Active Off-sale Licenses Map). A Waiver is required for the 500-foot separation requirement.

Required Findings
Use Permit
General Findings - SMC Section 16.168.050(A)
Staff verified that all required General Findings, with the exception of the location requirement, can be made to support the Project, as evidenced in the attached resolution. The use is allowed in the CG zoning district; it will provide for additional neighborhood-service retail to the local neighborhood; it is consistent with the goals, objectives and policies in the General Plan; the site is physically suitable for the development; the use will be subject to the conditions of approval requiring security upgrades to the site; the retail use of the store is compatible with other land uses on-site and in the vicinity; and, the Project is Categorically Exempt from CEQA.

Problem Uses - SMC Section 16.168.050(B)
As it pertains to problem uses, staff recommends that: the proposed use will not interfere with the comfortable enjoyment of the area as it will be located within an existing neighborhood serving market that will provide an opportunity for nearby residents to purchase alcoholic beverages and goods in one location; the existing commercial building is a Market and no expansion is proposed; and, the use will not contribute to deterioration or promote blight in the area and will not be contrary to any neighborhood programs.

Alcoholic Beverages - Section 16.168.050(C)
The Project will be conditioned to (1) endure to limit potential nuisance and criminal activity, littering, graffiti, and excessive loitering, (2) complete the approved course for responsible beverages sales, and (3) comply will all provisions of local, State and Federal laws, regulations, rules, policies, or orders enforced by the City of Stockton and ABC.

A public convenience or necessity (PCN) determination is required by California Business and Professions Code as the Project is located in an overconcentrated Census Tract (19) per ABC records. Census Tract 19 is allotted 4 licenses, based on its population, and there are currently eight (8) active off-sale licenses in the census tract. As previously noted in this report, there are only two (2) off-sale licenses within 500 feet of the Project site, of which one is located in the same census tract. The other seven (7) licenses are farther than 1,000 feet from the Project site.

Waiver - SMC Section 16.176.040
The Project applicant is requesting a Waiver to the Location Restrictions for proximity to another offsale establishment per SMC Section 16.80.040(D)(2)(d)(ii)(B).

The Planning Commission applied their discretion to waive the restriction above, to promote and support local economic business growth throughout the City. To reiterate, the Project complies with City of Stockton Page 5 of 7 Printed on 11/26/2024
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SMC Section 16.80.040(D)(2)(a) related to separation from sensitive receptors and with the Crime Reporting District standards. However, the Project does not comply with the 500-foot separation requirement from another existing off-sale establishment as there are two (2) current active licenses, as previously mentioned.

Staff verified that all required Waiver Findings can be made to support the Project, as evidenced in the attached resolution. The existing market use is allowed in the CG zoning district and the proposed off-sale of beer and wine is permitted with a Use Permit. The proposed sale of beer and wine at the existing market will provide for added convenience for existing grocery shopping customers. The granting of the Waiver would not be detrimental to the public or neighborhood welfare as it will provide customers with an additional “one-stop shop” alternative to the existing liquor store at 2280 East Main Street that primarily sells alcohol.

The Use Permit to allow off-sale of beer wine will be applied to an existing market that provides a variety of services to the public; it is consistent with the goals, objectives, and policies in the General Plan; the site is physically suitable for the use and will be subject to the conditions of approval; the retail use of the store is compatible with other land uses within the vicinity; and the Project is Categorically Exempt from CEQA.

Appeal of the Planning Commission’s Decision
On August 5, 2024, Mary Elizabeth filed an appeal to the City Council requesting reconsideration of the Planning Commission’s approval citing overconcentration of the Census Tract, and citing data that indicates that overconcentration of alcohol negatively impacts health of individuals and the community where excessive alcohol outlets exist, specifically in a disadvantaged neighborhood (Attachment F - Appeal of PC Action).

Staff’s analysis of the Project was conducted with the allowances and constraints of the Development Code. In reviewing the Project, Alcoholic Beverage Sales establishments are subject to the location and grouping restrictions prescribed in SMC 16.168.050(A-C). The Project meets all the location restrictions with the exception of one (1), which is being located within 500 feet of two (2) other offsale establishments (a liquor store and market), as mentioned in this report. The closest license outside of 500 feet restriction is 1,125 feet.

The proposed addition of the off-sale of beer and wine at the existing market will provide for added convenience for existing grocery shopping customers and it is conditioned to not exceed 20% of the overall square-footage of the store; it is not the primary use of the market. Staff recommends that the granting of the Waiver would not be detrimental to the public or neighborhood welfare as it will provide customers with an alternative to the existing liquor store on the same block providing for a “one-stop shop”.

As for the overconcentration in the Census Tract, the SMC Section 16.168.050(C) considers overconcentration when a public convenience and necessity finding is required for Alcoholic Beverage uses. The Planning Commission considered the proximity of alcohol concentration in the project site vicinity and within Census Tract (19), and determined the Mi Ranchito Market and Carnicería provides a wide range of desirable goods for the surrounding neighborhood and public convenience would be served by approving the off-sale of beer and wine. At the Planning Commission hearing, the Commissioners heard and considered the public comments and ultimately City of Stockton Page 6 of 7 Printed on 11/26/2024
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approved the Project request. Staff is recommending the City Council affirm the Planning Commission’s approval through denial of the Appeal.

Environmental Clearance
The proposed Project is Categorically Exempt from the California Environmental Quality Act (CEQA) under CEQA Guidelines section 15301(a), Existing Facilities, since it includes interior or exterior alterations involving such things as interior partitions, plumbing, and electrical conveyances. The interior of the store is being modified to include space dedicated to alcohol sales, display, and storage. No exterior modifications are proposed to the existing building.

Public Comments
Notice for this item was published in the Record on November 8, 2024, and a notice has been sent to all property owners within a 300-foot radius of the Project site on November 8, 2024. At the time of writing this report, Staff has not received any comment from the public on this Project.

Financial Summary
Approval of the Project would provide the City’s General Fund with additional review collected through Property and Sales Tax of the property and business.

Attachment A - Aerial Photo and Location Map
Attachment B - Floor Plan
Attachment C - Calls for Service
Attachment D - ABC Records
Attachment E - CT 19 Active Off-sale Licenses Map
Attachment F - Appeal of PC Action
City of Stockton Page 7 of 7 Printed on 11/26/2024
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City of Stockton, CA
Property Information
Property ID 15535001-111977
Location 2208 E MAIN ST
Owner MOHAMAD, ABDO N

MAP FOR REFERENCE ONLY

NOT A LEGAL DOCUMENT
City of Stockton, CA makes no claims and no warranties, expressed or implied, concerning the validity or accuracy of the GIS data presented on this map.

Geometry updated 05/03/2023
Data updated 05/01/2023
Print map scale is approximate.

Critical layout or measurement
activities should not be done using
this resource.
1" = 153.65337674371784 ft
ATTACHMENT A 818
819

ATTACHMENT B
820
Crime Analysis Unit 7141
Calls for Service – 2208 E. Main St.

Date Range: 10/16/2021 – 10/16/2023
Calls for Service that Resulted in a Crime Report
Data Source: Tiburon | Crystal Report. Query Filters: CAD/CFS, Location: 2208 E. Main St., Date Range: 10/16/2021 - 10/16/2023
Calls for Service – RD 0192
Date Range: 10/16/2021 – 10/16/2023
Call Type Total
10851 1
314 1
415 4
415E 3
487 2
715 1
937 1
OTHER 1
Grand Total: 14
Call Type Description Date Report No
487 Grand Theft 7/8/2022 220022362
10851 Stolen Vehicle 11/18/2022 220039059
487 Grand Theft 12/21/2022 220042722
ATTACHMENT C 821
Crime Analysis Unit 7141

Call Type Total
10851 32
10851O 4
10851R 4
12020 5
148 1
211 4
211A 4
211SA 1
215 3
23152 1
243 20
245 10
245R 2
246 4
246U 2
247B 3
261 1
273 1
273 5 7
288 1
314 4
368 4
415 50
415C 32
415CW 15
415E 90
415F 80
415H 8
415HW 219
417 8
422 12
451 1
459A 1
459B 5
459R 9
470 10
480 2
481 32
484 13
484G 4
487 6
496 4
502 2
503A 2
505 74
Call Type Total
510 1
5150 9
594 18
597 4
601 5
647 2
647F 5
653M 3
715 52
717 2
901 38
901A 8
901B 2
902 4
903A 9
903D 1
905 6
910 5
912 40
913A 1
914 6
918X 1
920 12
920P 90
922 2
928F 17
929 62
929A 5
929B 1
929H 1
930 2
933 13
933211 5
933459 1
933990 2
933PA 1
936W 2
937 77
937F 1
939 19
940 14
940F 1
942 4
943 2
945 229
ATTACHMENT C 822
Crime Analysis Unit 7141

Calls for Service that Resulted in a Report – RD 0192

Call Type Total
946 2
949 17
950 8
953 5
955A 6
955C 7
955D 7
955E 4
957 21
957B 1
958 3
960 16
961 1
962 10
962X 14
965 4
965B 3
969 2
969B 9
970 6
970A 4
Call Type Total
970B 3
970C 1
972 1
986D 1
990 2
C5 11
LS 3
NARC 4
NARCL 1
OPEN 1
OTHER 68
SEARCH 6
T 63
TAGGER 1
TEST 1
TEXT 1
TP 1
TRU 6
VRO 14
WELCK 24
Grand Total: 1945
Call Type Total
10851 21
10851O 4
10851R 2
12020 5
148 1
211 4
211A 4
215 3
23152 1
243 14
245 8
246 3
246U 2
247B 2
273 1
273 5 7
368 3
415 3
417 3
422 4
Call Type Total
459B 4
459R 5
470 6
480 2
481 23
484 7
484G 3
487 6
503A 2
505 1
5150 4
594 13
647F 5
653M 1
901 15
901A 7
901B 1
905 2
914 1
929 15
ATTACHMENT C 823
Crime Analysis Unit 7141

Data Source: Tiburon | Crystal Report. Query Filters: CAD/CFS, RD: 0192, Date Range: 10/16/2021 - 10/16/2023 Specific Crime Reports – RD 0192
Date Range: 10/16/2021 – 10/16/2023
Call Type Total
933 2
936W 1
937 4
939 18
942 2
950 8
955E 2
958 1
961 1
962X 1
965 1
969B 1
970 1
Call Type Total
970B 1
972 1
C5 1
L-S 2
NARC 3
SEARCH 4
TSTOP 4
TAGGER 1
TP 1
TRU 2
VRO 11
Grand Total: 292
Call Type Total
10851 - STOLEN VEHICLE 21
12020 - ILLEGAL WEAPON 5
148 - RESISTING ARREST 1
211 - ROBBERY 4
211A - ARMED ROBBERY 4
215 - CARJACKING 3
23152 - DRUNK DRIVING 1
243 - BATTERY 14
245 - ASSAULT W/ A DEADLY WEAPON (ADW) 8
246 - SHOOTING INTO UNOCCUPIED DWELLING 3
246U - SHOOTING INTO UNOCCUPIED DWELLING 2
247B - SHOOTING INTO UNOCCUPIED VEHICLE 2
273 - CHILD ABUSE 1
273 5 - SPOUSAL ABUSE 7
368 - ELDER ABUSE 3
415 - DISTURBING THE PEACE 3
417 - BRANDISHING 3
422 - TERRORIST THREATS 4
459B - BUSINESS BURGLARY 4
459R - RESIDENTIAL BURGLARY 5
470 - FORGERY 6
480 - HIT & RUN W/ INJURIES 2
481 - HIT & RUN NO INJURIES 23
484 - PETTY THEFT 7
484G - THEFT OF ACCESS CARD 3
ATTACHMENT C 824
Crime Analysis Unit 7141
Data Source: SAP Crystal Enterprise. Query Filters: ARS NIBRS, RD: 0192, Date Range: 10/16/2021-10/16/2023. SPECIFIC INCIDENT TYPE ONLY:
10851, 12020, 12025, 136, 148, 1551, 166 4, 182, 187, 187A, 193, 196, 197, 207, 207A, 211, 211A, 211PS, 211R, 215, 220, 23152, 236, 236 1, 243, 243B, 243E1, 244, 245, 245R, 246, 246U, 247B, 25658, 261, 261 5, 272, 273, 273 5, 273 6, 278, 278 5, 281, 286, 288, 289, 290, 3056, 314, 337, 368, 415, 415F, 417, 422, 451, 457, 459A, 459B, 459R, 466, 470, 480, 481, 481B, 484, 484B, 484G, 487, 496, 498, 503, 529, 530, 537, 594, 597, 646, 647 6, 647A, 647B, 647F, 648, 653M, 910, 910A, 911, 911A, 923, 928, 928A, 928B, 928C, 928F, 936W, 943, 956, 957, 957B, 958, 960, 970, L-S, NARC,

NARCL, SEARCH, TAGGER, TSTOP, WELCK
The attached location analysis has been filtered for the incident/call types listed at the end of each section.

Call Type Total
487 - GRAND THEFT 6
594 - MALICIOUS MISCHIEF/VANDALISM 13
647F - DRUNK IN PUBLIC 5
653M - MALICIOUS/OBSCENE PHONE CALLS 1
936W - WARRANT SERVICE 1
958 - ILLEGAL DUMPING 1
970 - IMPROPER PARKING 1
L-S - LOST/STOLEN 2
NARC - NARCOTICS VIOLATION 3
SEARCH - SEARCH WARRANT 4
TSTOP - TRAFFIC STOP 4
TAGGER - GRAFFITI 1
Grand Total: 181
ATTACHMENT C 825
DRs by Reporting District (RD)
Date Range: 10/16/2021 – 10/16/2023
Crime Analysis Unit 7141

RD Total DRs % of the City
Average
0101 388 186%
0102 632 302%
0103 586 280%
0104 198 95%
0105 477 228%
0106 382 183%
0107 256 122%
0108 192 92%
0109 1572 752%
0110 166 79%
0111 208 100%
0112 243 116%
0113 150 72%
0114 305 146%
0115 397 190%
0116 346 166%
0117 334 160%
0118 268 128%
0119 107 51%
0120 106 51%
0121 445 213%
0122 648 310%
0123 137 66%
0124 228 109%
0125 263 126%
0126 208 100%
0127 500 239%
0128 439 210%
0129 340 163%
0130 68 33%
0131 155 74%
0132 210 100%
0133 112 54%
0134 15 7%
0135 25 12%
0136 233 111%
0137 124 59%
0138 131 63%
0139 111 53%
0140 151 72%
0141 161 77%
0142 91 44%
0145 2 1%
0147 405 194%
RD Total DRs % of the City
Average
0148 15 7%
0149 18 9%
0150 171 82%
0152 98 47%
0153 10 5%
0154 19 9%
0156 129 62%
0157 271 130%
0158 187 89%
0159 77 37%
0160 122 58%
0161 261 125%
0162 130 62%
0163 203 97%
0164 524 251%
0165 245 117%
0166 361 173%
0168 245 117%
0169 141 67%
0170 57 27%
0171 170 81%
0172 181 87%
0173 143 68%
0175 155 74%
0176 280 134%
0177 47 22%
0178 158 76%
0179 53 25%
0180 491 235%
0181 247 118%
0182 7 3%
0184 0 0%
0185 183 88%
0186 90 43%
0187 32 15%
0188 72 34%
0189 168 80%
0190 63 30%
0191 148 71%
0192 181 87%
0193 252 121%
0194 138 66%
0195 7 3%
0196 71 34%
ATTACHMENT C 826
DRs by Reporting District (RD)
Date Range: 10/16/2021 – 10/16/2023
Crime Analysis Unit 7141

RD Total DRs % of the City
Average
0201 12 6%
0202 173 83%
0203 136 65%
0204 215 103%
0206 49 23%
0207 166 79%
0208 242 116%
0209 106 51%
0210 164 78%
0211 140 67%
0212 136 65%
0213 171 82%
0214 2 1%
0215 147 70%
0216 491 235%
0217 15 7%
0218 507 243%
0219 345 165%
0220 106 51%
0221 258 123%
0222 33 16%
0223 206 99%
0224 151 72%
0225 121 58%
0226 140 67%
0228 39 19%
0229 290 139%
0230 343 164%
0231 480 230%
0232 56 27%
0244 105 50%
0245 227 109%
0247 29 14%
0248 235 112%
0249 152 73%
0250 394 189%
0251 564 270%
0252 460 220%
0253 687 329%
0254 98 47%
0255 80 38%
0256 53 25%
0257 56 27%
0258 66 32%
RD Total DRs % of the City
Average
0259 17 8%
0260 181 87%
0261 387 185%
0262 243 116%
0263 348 167%
0264 1360 651%
0265 462 221%
0266 205 98%
0267 228 109%
0268 0 0%
0269 210 100%
0272 77 37%
0273 46 22%
0274 37 18%
0275 125 60%
0276 199 95%
0277 185 89%
0278 275 132%
0279 96 46%
0280 132 63%
0281 599 287%
0282 497 238%
0283 248 119%
0286 52 25%
0288 220 105%
0301 18 9%
0302 119 57%
0303 146 70%
0304 24 11%
0305 25 12%
0306 426 204%
0307 211 101%
0308 58 28%
0309 172 82%
0310 134 64%
0311 113 54%
0312 71 34%
0313 81 39%
0314 173 83%
0321 122 58%
0322 269 129%
0323 318 152%
0324 334 160%
0325 374 179%
ATTACHMENT C 827
DRs by Reporting District (RD)
Date Range: 10/16/2021 – 10/16/2023
Crime Analysis Unit 7141

Data Source: SAP Crystal Enterprise. Query Filters: ARS NIBRS, RD: 0192, Date Range: 10/16/2021-10/16/2023. SPECIFIC INCIDENT TYPE ONLY:
10851, 12020, 12025, 136, 148, 1551, 166 4, 182, 187, 187A, 193, 196, 197, 207, 207A, 211, 211A, 211PS, 211R, 215, 220, 23152, 236, 236 1, 243, 243B, 243E1, 244, 245, 245R, 246, 246U, 247B, 25658, 261, 261 5, 272, 273, 273 5, 273 6, 278, 278 5, 281, 286, 288, 289, 290, 3056, 314, 337, 368, 415, 415F, 417, 422, 451, 457, 459A, 459B, 459R, 466, 470, 480, 481, 481B, 484, 484B, 484G, 487, 496, 498, 503, 529, 530, 537, 594, 597, 646, 647 6, 647A, 647B, 647F, 648, 653M, 910, 910A, 911, 911A, 923, 928, 928A, 928B, 928C, 928F, 936W, 943, 956, 957, 957B, 958, 960, 970, L-S, NARC,

NARCL, SEARCH, TAGGER, TSTOP, WELCK
The attached report has been filtered to show Documented Reports (DRs) with the incident/call types listed. For consistency purposes, they are the same incident/call types used for the location analysis and only include the Reporting Districts within Stockton Police Department jurisdiction.

RD Total DRs % of the City
Average
0326 639 306%
0327 202 97%
0328 189 90%
0329 138 66%
0330 417 200%
0331 52 25%
0332 359 172%
0333 35 17%
0334 418 200%
0335 260 124%
0336 126 60%
0337 457 219%
0338 239 114%
0339 394 189%
0340 80 38%
0342 118 56%
0343 161 77%
0344 443 212%
0345 578 277%
0346 799 382%
0347 244 117%
0348 299 143%
0349 44 21%
0350 0 0%
0352 84 40%
0356 140 67%
0357 51 24%
0358 408 195%
0359 738 353%
0360 669 320%
0361 263 126%
0362 220 105%
0363 178 85%
0364 373 178%
0365 147 70%
0366 199 95%
RD Total DRs % of the City
Average
0367 158 76%
0368 10 5%
0369 38 18%
0399 93 44%
0400 147 70%
0419 85 41%
0420 6 3%
0422 177 85%
0423 65 31%
0425 212 101%
0426 260 124%
0427 54 26%
0428 1 0%
0429 68 33%
0430 229 110%
0431 0 0%
0432 1 0%
0433 0 0%
0436 183 88%
0437 310 148%
0438 137 66%
0439 284 136%
0441 33 16%
0443 26 12%
0444 3 1%
0449 48 23%
0455 13 6%
0456 0 0%
0470 76 36%
0471 195 93%
0472 50 24%
0475 1074 514%
0476 6 3%
0508 0 0%
0524 108 52%
Total City Average: 209
ATTACHMENT C 828

ATTACHMENT
D
829
ACTIVE OFF-SALE ABC LICENSES (CENSUS TRACT 19) MAP
Data source:

California Department of Alcoholic Beverage
Control (ABC).

Prepared by:

Arturo Carrasco, Community Development
Department, City of Stockton
CT 19 boundary
Project site
500-ft radius from project site
1,000-ft radius from project site
off-sale licenses in CT 19
off-sale licenses outside of CT 19 Legend E Dr Martin Luther King Jr Blvd Wilson Wy
Filbert St
E Main St

ATTACHMENT E
830
,;s CITY OF STOCKTON

APPEAL OF PLANNING COMMISSION DECISION TO THE
Today's Date: 8.5.2024
APPELLANT: Mary Elizabeth
(Na"° Box 4848
Date of Planning Commission Decision: 7.

25.2024
Last day to file Appeal (ten days): 8.5.2024
(
A
d
§lotkton CA 95204
APPEAL:
(Telephone)

5.1 Request for a Commision Use Permit and Waiver
to allow the off-sale of beer and wine at an existing market P-23-0182
(Case Number and Project Name)
2208 East Main Street, Stockton CA 95205 APN 155-350-01 (Property
A
ddress)
FEE: $500.00 (effective 7/1/20) per appeal (project)
PAID BY: ____ check/number ___ Cash __ Money Order
HAND DELIVERED: __ _ MAILED: __ _
STATE REASON FOR FILING THIS APPEAL: _c_e
_
ns_u_s_T_r__
ac
_
t_19__
is
_
o_v_e
_
rco__n
_
c
_
e
_
ntr__ate__d
_
with off-sale alcohol licenses (9), in a high crime census tract.

There are extensive data that indicates that overconcentration of alcohol licenses negatively impacts health of individuals and the community where excessive alcohol outlets exist. I have additionally attached correspondence.

Mary Elizabeth
Print Your Name
Internal Note - Scan & Email to: Esther Gilliland, Lori Asuncion, Patty Vasquez, Courtney Christy, Florence Low, Will Crew, Michael McDowell, the project's CD planner, and Jobi Aceves CC TO: CC [email protected]

STOCKTON CITY COUNCIL
425 North El Dorado Street
Stockton, CA 95202
Phone: (209) 937-8458
https://stocktonca-my.sharepoint.com/personal/allison_lambertson_stocktonca_gov/Documents/Desktop/Shared One Drive/Appeals/PC Appeal Request for Appeal to the Council Form Template as or 2020-07-01.docx Updated 2020-08-27

ATTACHMENT F
831
To: City of Stockton Planning Commission
From: Mary Elizabeth, M.S., R.E.H.S.

Date: 7.24.2024
Re: Protest against the proposed Request for a Commission Use Permit and Waiver to All the OffSale of Beer and Wine at an existing Market located at 2208 East Main Street, Stockton CA 95205 As a Registered Environmental Health Specialist in the State of California, having reviewed the Alcohol Beverage and Control Data as well as environmental justice data for the proposed location for one more off-sale alcohol license, I urge the Commissioners to reject the recommendation in the City of Stocktonn Staff report because the negative public health issues of overconcentration in this area of Stockton were not fully disclosed and conditions do not support a finding of a public convenience or necessity. Not all census tracts in Stockton are created equal. Communities all over the United States are looking at policies and making connections between alcohol outlets and public health harms.1 Public Health
Public health professionals advocate for reduced retail access as a means to reduce alcohol related community based public harm. The American Public Health Associated has published "Addressing Alcohol-Related Harms: A Population Level Response"' recommending that public health, prevention professions, as well as similarly aligned organizations, local coalitions, and community members should support and advocate for:

Limiting the density of alcohol retail outlets and preventing the clustering of outlets in communities (particularly underserved communities) through state and local licensing and zoning regulations to better address alcohol-related inequities within communities (community coalitions, neighborhood associations, prevention organizations, and local public health organizations).

Retail access: A substantial body of research demonstrates that communities with a greater density of alcohol outlets (e.g., outlets per roadway mile) are at higher risk of experiencing problems related to excessive alcohol consumption, including crime and motor vehicle crashes.

Underserved communities have been found to have a greater density of alcohol outlets, disproportionately exposing these communities to excess risk, including from outlets that are associated with the greatest amount of harm (off-premises outlets). This research suggests that the greatest potential to decrease alcohol-related inequalities at the population level is in restricting retail outlets from clustering in underserved communities and implementing interventions focused on alcohol outlets. Density of alcohol outlets can be limited through statutory initiatives such as licensing or local zoning regulations.

Alcohol harms human health across a number of domains; it is a causal risk factor for at least seven cancers, liver disease, infectious diseases, unintentional injuries, violent crime (including physical and sexual assault and homicide), mental health conditions (e.g., anxiety, stress, and depression), and suicide.

Public health outcomes are not improved by just promoting healthy choices which does not eliminate disparities. Improvement in the conditions of the environment increases positive public health outcomes.
1 https://debeau mont.org/wp-content/uploads/2021 /03/SaferAlcoholSalesReport2021. pdf accessed 7.24.2024 2 https ://www. ap ha .o rg/policies-a nd-a dyocac_y/p LI bli c-h ea lth-po Li cy-state ments/ poli cymd ata ba se/2020/01 /14/add ressi n gu filc.o.hDk.relat.ed-harms-a-population-levcl-response accessed 7 .24.2Q2A and includes references. 1 ATTACHMENT F 832
The U.S. Department of Health and Human Services, Office of Disease Prevention and Health Promotion, Substance Use and Social Determinants of Health Worl<groups formed a Community Preventive Services Tasl< Force. The Task Force recommends limiting alcohol outlet density as a way to reduce excessive drinking and related harms and found that greater alcohol outlet density is associated with increased drinking and related harms.' The Task Force has published "Alcohol-Excessive Consumption: Regulation of Alcohol Outlet Density".'
The Centers for Disease Control and Prevention has in 2021 published guidance: "Measuring Alcohol Outlet Density: A Toolkit for State and Local Surveillance" 5 because alcohol outlet density is not uniform in communities and understanding the problem can lead to changes in local land use decisions such as the Stockton Planning Commission is being asked to make. Where there is overconcentration of alcohol licenses there is overconcentration of the harms associated with alcohol, both health and societal. The crime data was incomplete as the reporting district did not include the census and while the immediate crime district may be lower than average, the adjacent district is not. Not all census tracts in Stockton are created equal.

State of California Alcohol Beverage and Control
The State of California will not issue liquor license unless the City of Stockton finds that another liquor license in an overconcentrated Census Tract (19) is a public convenience or necessity (PCN) as required by California Business and Professions. Census Tract 19 is allotted 4 off-sale licenses based on its population.

According to the City of Stockton Staff Report there
are eight (8) active off-sale licenses in Census Tract

19. Having 8 off-sale alcohol licenses within a
census tract is considered overconcentrated and
City of Stockton staff stated that there are only two
(2) off-sale licenses within 500 feet of the project
site, of which one is located in the same census 1/ att,u;J tract. The other seven (7) licenses are farther than /Q Bcfl.<(, "'"" "" " "1 1,000 feet from the project site, but still within the geographically area of Census Tract 19.6 Census Tract 19 encompasses an area of 1.1 square miles.' A census tract is how many services and data are collected and considered at the neighborhood level. Census Tract 19 has public health and population characteristics different from some areas of Stockton not overconcentrated with alcohol licenses. Query of ABC records using: bttps://www.abc.ca.gov/licensjng/licensjng-reports/licenses-bycounty-and-census-tract/ Shows that there are 9 off-sale retail licenses and 5 on-sale retail licenses as shown below. Note License Type 58 is a catering license. I have provided these queries as an attachment.

The California Alcohol Beverage Control Departed has published the maximum authorized number of on and off-sale liquor license by Census Tract that was most recently updated August 2021. 8 3 bttps://health gov/healthyo.e.0ple/tools-action/browse-evidence-based-resources/alcohol-excessive-cons11mption-rngulat.io.n.:. alcob.Ql-outlet-density accessed 7.24.2024
4 b.tt{lll • l{www. thecorn rn u n itygu i de .org/fi nd i ngs/a lcoh al-excessive, .. cons u rnptio n-regu lati on-a I co ho l-o utlet -de m�ity html includes evidence-based reports prepared in collaboration with the Centers for Disease Control and Prevention. Accessed 7.24.2024 5 tmps://stacks.cdc,gov/view/cdc/1509.illl includes link to the toolkit 6 City of Stockton Staff Report City of Stockton - File#; 24-063"9 (leg:is1·ar.com) accessed 7.24.2024 7 https :/ /censusreporter.orglprofiles/14000llS06077001900-census-tract-19msan-ioaqu in-ca/ accessed 7.24.2024. 8 b1tps· //www.abc ... .ca gov/wp-content/uploads/retports/Census-Tract-AuthorizationsJld( accessed 7.24.2024. • 2 ATTACHMENT F 833
For Census Block 52 Tract 19, only 5 on-sale (restaurant or bar) and 4 off-sale (beer and wine Type 20 or all alcohols Type 21) are authorized based on a Census Tract population of 5,164 and a county ratio for on-sale of 1,032 and off-sale of 1,246 for a county population of 783,534.

Maximum authorized license numbers have been limited since 1939 when the Alcohol Act was adopted.

At present, the ratio is 1 on-sale general license for each 2,000 persons in the county in which the premises are situated and one off-sale general license for each 2,500 persons.'. Limitations were established because of the recognition that liquor sales affect the public welfare and that the line between granting and denying should be a matter of discretion and even one more license may be "too many." Not all census tracts in Stockton are created equal.

The City of Stockton Staff recommend that this limitation be negated by making the finding of public convenience or necessity," to promote and support local economic business growth throughout the City", irrespective of the conditions of Census Tract 19 and the harms associated with overconcentration as discussed under Public Health and Census Tract 19 Characteristics.

The Census Tract 19 where the proposed beer and wine license is located in a Census Tract with alcohol off-sale license far above 1 for every 2500 persons, and above the exception based on county wide data of 4 by already having 9 active off-sale licenses.10 Having 9 active off-sale alcohol licenses instead of the 8 that the City of Stockton Staff identified only makes the concentration of Furthermore, the Alcohol Beverage Control Department has issued the 2023 Moratorium Counties/Cities report which lists the City of Stockton because off-sale beer and wine license Type 20 exceed the ratio of 1 Type 20 license for each 2500 inhabitants. 11 There are double that number of beer and wine licenses within the 1. 1 square miles of Census Tract 19. The San Joaquin County area and some other cities are not under this moratorium. This moratorium provides the Alcohol Beverage Control Department with additional factors to base a decision to not issue a permit unless the City of Stockton makes a finding of public convenience or necessity. No public convenience or necessity finding is reasonable for this neighborhood. Not all census tracts in Stockton are created equal.

Census Tract 19 Characteristics
Census Tract 19 is not characteristics of conditions "throughout the City" and should not experience the harms associated with more liquor outlets," to promote and support local economic business growth throughout the City". I urge the Commissioners to reject the use application for another off-sale beer and wine license in Census Tract 19 for environmental justice concerns.

Census data' describes this Tract 19, San Joaquin, CA as having:
• A per capita income of $19,871 which is about 70 percent of the Stockton overall per captia income.
• A median income of $57,461 which is about 80 percent of the Stockton overall median household income.
• 18.7 percent of persons living below the poverty line which is about 20 percent more than the Stockton overall poverty rate of 15.6 percent.
• A high school graduation and higher educational level was achieved by only 51 percent of adults while the Stockton overall high school graduation and higher rate is 77.8 percent. 9 ABC https://www.abc.ca.gov/ljcensing[frequently-askedaguestionsL accessed 7.24.2024. 10 hllrm;Uwww.abc.ca.gov/licensing/licensing-reports/adhoc-repgrt/?RPTTYPE··8&COUNTY-39&CENSUS-19 accessed 7.24.2024
11 https://www.abc.ca.gov/wp_.-:GillJ.1eJ1t/uploads/2023/01 /MoratoJium-Counties-and.-Cities-2023.pdf accessed 7.24.2024. 3 ATTACHMENT F 834
The Census Tract 19 is a high poverty area with low educational levels with many challenges not characteristics of all parts of Stockton. These conditions will not be improved by adding another nuisance creating off-sale liquor license in a high poverty area already overconcentrated with off-sale liquor licenses as described in the City of Stockton staff report for this proposed use permit." Below is a screenshot of the Census Tract 19 which only encompasses 1.1 square mile. I have added the Stribley Park location as a reference point as other historic and contemporary maps are presented .

Census Tract 19, San Joaquin,
CA
Cl!tlSUSTr.actin:�SanJoaouioCotrotv..a..��
5,577 1,1 squaremlles
Population 5,006.9 people per square mite
CeRit.1$ d�ta= ACS 2022 :=!-ye;ir unless noted
.
r-'
Fa!rOi'\ks
Monnm
__ .,,. ..

The proposed location for another off-sale liquor license is shown below. The number of on-sale licenses was not disclosed by the City of Stockton but was determined to be 5 as shown in the Attachment. l/l
1 Stribley Park
12 https:/ /stockton. legistar.cQJil/legislation Deta il.aspx?I D=6783126&GU ID�3467DACC-17E8-4 706-B430- 5EEDC4F7ED00
4 +
r, ;
ATTACHMENT F 835
The area around this proposed liquor license location at 2208 East Main Street is an area that was historically red lined restricting financial services and putting residents at a disadvantage." The EnvironmentalJustice database of the California Office of Environmental Health Hazard version 4.0 shows that Census Tract 19 has environmental justice vulnerabilities involving pollutant burdens and population characteristics. 14
The Census Tract has an overall pollutant burden score of 86 and a CalEnvrioScreen 4.0 percentile of 97 indicating the area is overburdened with environmental harms
including diesel particulate matter and lead in housing with scores above 89.

Population characteristics have a percentile score of 98, with asthma 93, cardiovascular disease 97, education 95, poverty 98, and housing burden 91.

Not all census tracts in Stockton are created equal.

Allowing a land use change for another alcohol outlet is unjust in Census Tract 19. The enforcement of rules and regulations is difficult due to staffing. Additionally, the Municipal Code allows for many more conditions than proposed by City Staff which are minimal. Unless those conditions are placed on the project at the time of land use change the extra conditions are not enforceable.

Reject this proposed land use change. Reject another alcohol outlet in Census Tract 19. 13 https ://dsl.richmond.edu/panorama/redlininQlmaRLCA/Stockton/area descriptions#loc-15/37 .9509/ a 121 , 2592&adview-full
accessed 7.24.2024
14 bttps://experience.arcgis.corn/experience/ed5953d89038431 dbf4f22ab9abfe40d/#data s=id%3AdataSource ... . .25..:.
17c3d89e7e2-layer-1 %3A3455 access 7.24.2024
5 ATTACHMENT F 836
Attachment
Query of ABC records using: bttps;L/www.abc.c:a.gov/lk:ensing/licensiog-rnpQ[tsLlk:enses-by-i:;Q\l□tl/- and-census-tract/ Shows that there are 9 off-sale retail licenses and 5 on-sale retail licenses as shown below. Note License Type 58 is a catering license.
!Results for: Act •,•e O'l Sale Rnai. t CC".'i1St'
County: Si'\N JOhQ.Jlil-J [otnty
CensusTrad� l9
Report D.ilte: Tucsd,1y, � uly /3, ?024
Shuw .. V e11lrli:'£ SeUlk
lkense Uoo� ofis.1ss. l!iaf.llr. . ..
l!JUnib!!!r L Sllltus T)'pe .... Olllt!:! Prlrniuy Owner Premi�e-�, A4dt, Busl�W!!!I N.!inH! """ 4Gl!(l16 I\CTIVE ,. [l,7/.llR/1000 06/JQIJms THAOn. h'IUT<ll'il\R 2302 E MIIRK�'lf 5T, :5Uf"! MI\Rl'l:fV .390!t MOHAMCD SMCKTOM, Cl\
9S2Qs-ti&lS
!£/lli,U� ilfdLt:
();119,0�
5:1.filillT I\CTIIIE " ('15_/0011012 0�/JfWJ005- tiltCM/1.H'S MI\RKH, 31Ul [ MAIN Sl; WIIC.UAELS MARKtT , .. , INC. sroc.KTO!il, CA
9S1fl5
Cett�U;\, iro1d:
00!9.(l!:S
517437 I\CTNE ,. OOJll/2012 Ol/21!.,'2025 J&!VLOPCZ 2l!Hi E MAlfil ST. DON JOSt"S MARKET JSOS fNTERPRISES, INC SlllX.KroN.Cli

9.5l!l5
Co!il1Slt:', lr�Lt:
0019,0D
551447 ACTl'l[ " �ll4,'l015 OJ;f:JIUW.25- NA'SSCR, All MED AL! 2400 E MAltl ST, f'AIS,'INO MARKE]" Ek ""' STOtKHl-N, CA LIQUOR S.10RC
,,,.,
c.e11,.111!a T�.tll:
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$54599 ACTJ'IE ,. lllfu'l:S/2015 05/JH2025 MCMUCORP. llOSWll.S-OM Aiil'::01\.MR!Jl ""' WA'I,

STOCKTON, CA
�205-5551
O;!(l�ui. ilfdLl:
0019.0D
Q:lfl,!)�0 /1,CT!\r[ " 12,/UllOll ll!.!IDJW24 AI.MA.!IRI, KH/\UD 24B1 [. MAIM ST, :S'l!"OCKTON 3go5 STOCKTOl•t CA. SUPERMEKA!l:DO
!!SM5•6�l
�t1!.11l!a ll'r.ict:

OOMl.00
G!MU7 ACTJllf. >l 00/lifl/lOll 05/lL/202!'.< f,/l',S,..r;1:J1, MQHl,MED 951:SWILM:J!il :SUNRISE MI\Rt.n & ""'

WAY, LIQUOR
5-R'lCKTON,CA

9.!ilf!S-'100il
Clil!ni.uii Vt.iLt:

O:IJ9..0D
i!lff.UO ACTJIIE. ,. e-1fl1tl0l2 06fl0l.202,1 <iONZ.,LEZ, SILVANO l:i N FllBCRT Slf, LOSIILJOSrAMltY ,.,, STOCKTON, C/1. M-'RKCT 951-05
Cen�niw.itt:
00]9.00
631'SIU ACTIYE 21 �10,'lOJJ Ol/l!/2025 CORONA LIQUOR 2200 E MAit-i ST, C.ORQtll\ LIQUOR JOOS STTX.irn:»l,CA
95J:05·fi�
Uln5u� !rdLl:
0019.01';
SltiJWll(!g l tu 9 or 9 �fllrlt'� 1'-'l<c,'iVL-!, 11_ 1��:
6 ATTACHMENT F 837
Results for: Active on .Sale r�eta ii Licenses
County: SAN JOAQUIN County
Census Tract: 19
Report Date: Tuesday, July 23, 20,4
Shaw " y entries Soa,ch:
lkooso IJ..iams:o Orig. !s�. Exp!r. Prt1mises Goo
Numbnr status Type Datil! Date Prtman1 Owner Addr. Business Namo Code 2780:32 I\CTIVE 41 12/17/19� 02/28/2025 FLORES, CELIA S 2075EMAINST, CENAOURIA SANTA ANA '""

STOCKTON, CA
952.05
CaIm.1s Tract:
0019.00
466298 ACTN'E 41 03/lll/2009" fi2/2B/2025 GUERRERO,ALICIA 22.51 E MAIN ST, ELGRULLENSE:l 300S

STOCKTON, CA
95205
CeRSUs Tract:
0019.00
466198 ACT.VE 58 OO/lB/2000 02/28/2025 GUERRERO,ALICIA 2.251 E MAl:N ST, ElGRULLEHSE3 3905

STOCKTON, CA
95211S
COllSUS Tra�t:
0019.00
517431 ACTIVE "' 02/21/1012 02/la/2025 J&TLOPEZ 21B4 E MAIN ST, JESUS LOPEZ 3905 ENTERPRISES, IN!C. STOCKTON, CA RESTAURAt-4r
95205
Consus: Tract:
001'!}.00
615180 AC:Ti\/E .. 06/2.9/2023 0:5/31/2025 ORTIZRIOS, ALBERTO 22.lilf MAIN ST, BLUfZIEBRfl , .. ,

STOCKTON, CA
9-5205
C�RSU!. Tiract:
001,.00
631812 ACTWE 41 01/13/2022 12/3-1/2024 PABll.O GOMEZ, 2151 E MAIN ST, LAHNOMARKtT AND 3905 fRANOSCO STOCKTON, CA RESTAURANT
95205
Cans.us Tract:
001'9.00
Showi11g l to ii of 6(!ntries Prc:--Jlo,J!I- Iii tiicilt 7 ATTACHMENT F 838
Resolution No.

STOCKTON CITY COUNCIL

RESOLUTION DENYING AN APPEAL REQUEST AND AFFIRMING THE PLANNING COMMISSION’S APPROVAL OF A COMMISSION USE PERMIT AND WAIVER TO ALLOW THE OFF-SALE OF BEER AND WINE AT AN EXISTING MARKET AT 2208 MAIN STREET (APN 155-350-01)(P23-0185)
On July 7, 2023, the applicant, Mogalli Hussein Al Thabeti, submitted an application to the Community Development Department for Commission Use Permit No.

P23-0182, add the off-sale of beer and wine (Type 20) at their existing general merchandise and meat market at the 2208 East Main Street, known as “Mi Ranchito Market and Carnicería”; and
On July 25, 2024, the Planning Commission conducted a public hearing on the application, in compliance with SMC 16.88, at which point all persons wishing to be heard were provided such opportunity and then approved the Project by a vote of 5-0 (Commissioners Vielma and Jones absent); and
On August 5, 2024, Mary Elizabeth, a member of the general public, filed an appeal of the Planning Commission’s approval of the Project citing overconcentration; and On November 22, 2024, public notice for the subject application was published in the local newspaper in accordance with Stockton Municipal Code (SMC) section 16.88.030; and On December 3, 2024, the City Council convened a public hearing regarding the appeal of the Planning Commission’s decision; now, therefore,

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

A. The foregoing recitals are true and correct and incorporated herein reference.

B. Based on its review of the entire record, including substantial evidence herein, the City Council makes the following findings:

Use Permit: General Findings

1. The proposed use is allowed in the Commercial, General (CG) zoning districts, subject to approval of a Use Permit by the City Council. With approval of a Waiver for the total amount and location of licenses in the Census Tract, the use will comply with provisions of the Development Code (Title 16), the SMC, and Alcohol Beverage Control (ABC). Per SMC section 16.20.020, Table 2-2 the use, as proposed, will meet all 839
applicable development standards at SMC Title 16 (Development Code). There are no applicable overlays or specific plans for this site.

2. The proposed use, as conditioned, will maintain or strengthen the integrity and character of the neighborhood and zoning district in which it is to be located. The proposed use will occur within an existing neighborhood serving market. Approval of this Use Permit will facilitate the creation of a one-stop-shop market that retails alcoholic beverages along with general merchandizing goods to the local neighborhood.

3. The proposed use will be consistent with the general land uses, objectives, policies, and programs of the General Plan and any applicable specific plan or master development plan. The project is in the Commercial General Plan land use designation, and is consistent with all applicable objectives, policies, and programs of the General Plan, for example:
- Goal CH-3: Expand opportunities for local enterprise, entrepreneurship, and gainful employment.
- ED - 1: To maintain a thriving business community that provides a sound tax base for the City, jobs for the local workforce, and commercial shopping opportunities for residents and visitors alike. The proposed use will enable the existing market to provide a variety of neighborhood goods in one location and therefore the ability for business’ longevity in the neighborhood.

4. The subject site will be physically suitable for the type and density/intensity of the use being proposed, including the provision of services (e.g., sanitation and water), public access, and the absence of physical constraints (e.g. earth movement, flooding, etc.). The Project and development site currently have adequate utility services and site access. There are no known physical constraints for the existing market use at this site.

For all these reasons, the proposed use is of an appropriate intensity and would be carried out on a suitable site.

5. The establishment, maintenance, or operation of the subject use, at the location proposed and for the time period(s) identified, is not expected to endanger, jeopardize, or otherwise constitute a hazard to the public convenience, health, interest, safety, or general welfare of persons residing or working in the neighborhood of the subject use. The use will be subject to conditions of approval that require a security surveillance video system, installation of lighting around the premises, as well as additional conditions of approval relating to loitering and obeying all laws established by the City of Stockton and ABC.

6. The design, location, size, and operating characteristics of the subject use are expected to be compatible with existing and future land uses on- site and in the vicinity of the subject property. The existing market with the off-sale of beer and wine is classified as a retail use that is compatible with the Commercial General Plan designation on the subject site. The anticipated customer base, traffic patterns, noise levels, and general operational characteristics of market with the off- sale of beer and wine are compatible 840
with nearby commercial uses.

7. The proposed project is in compliance with the provisions of the California Environmental Quality Act (CEQA). The proposed project is exempt from CEQA under section 15301(a), Existing Facilities, because it includes interior alterations with no expansion of existing use. The use is entirely indoors, with minor interior modifications dedicated to the sales, display, and storage of alcohol. No exterior modifications are proposed to the existing building.

Problem Use Findings – Alcoholic Beverage Sales, Off-Sale

8. The proposed use, as conditioned, is not likely to interfere with the comfortable enjoyment of life or property in the area. The proposed off-sale of beer and wine will occur in an existing market that primarily provides a range of grocery and general merchandise to the neighborhood.

9. The proposed use, as conditioned, will not increase or encourage the deterioration or blight of the area. The proposed off-sale of beer and wine will be going into an existing store. The Owners, Developers, and/or Successors in Interest (ODS) are required to conform to all Conditions of Approval related to the Project, which include conditions related to loitering, as well as all laws and regulations provided by Alcoholic Beverage Control.

10. The establishment of an additional use of this type in the area will not be contrary to any program of neighborhood conservation, improvement, or redevelopment, either residential or nonresidential. The use will be going into an existing store that will provide additional goods to the neighborhood. There are no neighborhood conservation programs, improvement programs, or redevelopment programs in the area that the Project would be subject to.

Alcoholic Beverages Findings

11. The proposed use will not result in repeat nuisance activity on or near the premises. Nuisance activity includes, but is not limited to: disturbing the peace, illegal drug activity, public drunkenness, drinking in public, harassment of passersby, gambling, prostitution, sale of stolen goods, public urination/defecation, theft, assaults, batteries, acts of vandalism, excessive littering, loitering, graffiti, illegal parking, excessive loud noise (especially in the late night or early morning hours), traffic violations, curfew violations, lewd conduct, or police detentions and arrests. As conditioned, the market will ensure to limit potential nuisance and criminal activity, littering, graffiti, and excessive loitering through implementation of safety measures such as lighting, signage, and staff training programs. The Applicant has agreed to comply with all conditions of approval.

12. The owners and all employees of the establishment will complete an approved course in Licensee Education on Alcohol and Drugs (LEAD), or other “Responsible Beverage Sales” (RBS) or any other California Department of Alcoholic Beverage Control 841
Board (ABC) approved program within 60 days of hire for new employees. To satisfy this requirement, a certified program must meet the standards of the Alcohol Beverage Control Responsible Beverage Service Advisory Board, Service Advisory Board, or other certifying/licensing body designated by the State of California. As a condition of approval, the Applicant will complete the approved course for responsible beverages sales.

13. The proposed use will comply with all provisions of local, state, and federal laws, rules, regulations, policies, or orders, including, but not limited to, those promulgated and or enforced by the ABC, California Business and Professions Code sections 24200, 24200.6, and 25612.5, and any condition imposed on any valid permit(s) issued pursuant to applicable laws, regulations, or other authority. This includes compliance with annual city business license fees. The Applicant and proposed use will comply will all provisions of local, state, and federal laws, rules, regulations, policies, or orders enforced by the City of Stockton and ABC.

14. Business and Professions Code section 23958.4 requires a determination if public convenience or necessity would be served by the issuance of this Commission Use Permit. Per ABC, four (4) off-sale licenses are permitted within Census tract 19, and there are currently eight (8) existing off-sale licenses in operation. Approval of the Use Permit for the proposed off-sale of beer and wine would increase the number of licenses in the census tract, however public necessity would be served by the issuance of this Commission Use Permit. The existing market with proposed alcoholic beverage sales would provide for localized business growth by providing more choices in the area, and additional goods in an underserved area in the community.

Waiver Findings

1. The granting of the waiver shall enable the site to be utilized so that specific standards can be addressed without creating undue hardship. The proposed use is going into an existing establishment that would provide additional goods and services to the public. Approving the waiver enables the applicant to offer competitive pricing to the existing neighborhood where there are two off-sale establishments; one (1) liquor store and one (1) market.

2. The granting of the waiver shall allow for the economic viability and use of the site. The proposed use is allowed in the CG zoning district. Allowing the addition of off-sale of beer and wine, diversifies the establishment to provide a “one-stop shop” for neighborhood residents furthering the economic vitality and business retention in the area.

3. The granting of the waiver, with conditions that are imposed, will not be detrimental to the public convenience, health, interest, safety, or general welfare of the City or injurious to the property or improvements in the zone or neighborhood in which the property is located. The addition of alcoholic beverage sales in the existing market will enable the applicant to offer more diverse goods for the enjoyment of the neighborhood. In addition, the project will not be detrimental to the general welfare, or be 842
injurious, to the property or of the neighborhood as the alcohol consumption will not be permitted at the property and the project will be conditioned to implement security measures to support safety in its surroundings.

4. The granting of the waiver will be consistent with the general land uses, objectives, policies, and programs of the General Plan, any applicable specific plan, precise road plan, or master development plan, and the intent of this Development Code.

The use is consistent with the Commercial land use designation and the goals, objectives, and policies in the General Plan; the site is physically suitable for the use will be subject to the conditions of approval; the retail use of the store is compatible with other land uses within the vicinity.

5. The granting of the waiver will not conflict with applicable provisions of the latest edition of the California Building Code and Fire Code and other applicable Federal, State, and local laws and regulations. The Use Permit will be applied to an existing facility that provides a variety of services to the public. The project is conditioned to obtain any applicable building or fire permits resulting from this project.

6. The granting of the waiver will be in compliance with the provisions of the California Environmental Quality Act (CEQA) and the City’s CEQA Guidelines. This is described in detail in the following section.

California Environmental Quality Act
The proposed project is Categorically Exempt from the California Environmental Quality Act (CEQA) under CEQA Guidelines section 15301(a), Existing Facilities, since it includes interior or exterior alterations involving such things as interior partitions, plumbing, and electrical conveyances. The interior of the store is being modified to include space dedicated to alcohol sales, display, and storage. No exterior modifications are proposed to the existing building.

C. Based on its review of the entire record herein, all supporting, referenced, and incorporated documents, and all comments received, the City Council hereby denies the appeal request and affirms the Planning Commission’s approval of the requested Use Permit, subject to the following conditions of approval.

Conditions of Approval: Standard

1. This Use Permit approval authorizes the sale of beer and wine in an existing neighborhood serving market identified in Exhibit 1.

2. The Owners, Developers, and/or Successors in Interest (ODS) shall comply with all applicable Federal, State, County, and City codes, regulations, laws, and other adopted standards and pay all applicable fees.

3. Compliance with these Conditions of Approval is mandatory. Failure to comply with 843
these Conditions of Approval is unlawful and may constitute a public nuisance subject to the remedies and penalties identified in the SMC including but not limited to, monetary fines and revocation of this Permit.

4. This Use Permit shall be posted in a conspicuous and shall be immediately made available to City personnel upon inspection of the facility.

5. Any future building signage shall be subject to approval by the Community Development Department.

6. Separate building permits will be required for alterations to the site or building at the project location.

Conditions of Approval: Project Specific
This Use Permit incorporates the following conditions of approval.

7. This Use Permit is limited to a Type 20 Alcoholic Beverage Control license, which limits sales to beer and wine only.

8. The property owners, developers and/or successors-in-interest (ODS) shall be responsible for the City's legal and administrative costs associated with defending any legal challenge of the approvals for this project or its related environmental document.

9. In order to minimize any adverse financial impact on the City of Stockton (COS) associated with development and/or use of the subject site, the ODS agrees that it will not challenge or protest any applicable fees associated with the development of the site, but if such fees are amended or modified, the ODS agrees to pay such fees as they may be amended or modified from time to time.

10.A “complaint response community relations” program established and maintained by the establishment conducting the Alcoholic Beverage Sales Activity may be required.

The program must include the following:
i. Posting at the entry of the establishment that provides the telephone number for the area commander of the local law enforcement substation to any requesting individual.
ii. Coordinating efforts with the Police Department to monitor community complaints about the establishment’s activities.
iii. Having a representative of the establishment meet with neighbors, or the applicable neighborhood association on a regular basis and at their request to attempt to resolve any neighborhood complaints regarding the establishment.

11.Hours of operation for the sale of alcoholic beverages are limited to the regulations set forth by the State of California Alcoholic Beverage Control (ABC) Department. 844

12.No more than 20% of the market floor area shall be dedicated to the sale and display of alcoholic beverages.

13.The following signs are required to be prominently posted in a readily visible manner or an interior wall or fixture, and not on windows, in English, Spanish, and any other predominant language of the patrons:
i. “California State Law prohibits the sale of alcoholic beverages to persons under 21 years of age.”
ii. “No Loitering or Public Drinking” signs shall be posted on the exterior of the business.
iii. The business shall post E.A.S.Y (Eliminate Alcohol Sales to Youth) materials that are visible from the outside of the business. iv. The consumption or carrying of open containers of alcoholic beverages on the premises of the off-sale alcohol establishment is not permitted. Signs advising patrons of this prohibition shall be posted adjacent to the front door of the interior of the building.

14.The establishment shall be required to operate in a manner appropriate with mitigating alcohol-related problems that negatively impact those individuals living or working in the neighborhood, including, but not limited to sales to minors, the congregation of individuals, violence on or near the premises, drunkenness, public urination, solicitation, drug-dealing, drug use, loud noise, and litter.

15.Off-sale alcoholic beverage establishment shall be prohibited from selling drug/tobacco paraphernalia products as defined in Health and Safety Code sections 11014.5 and 11364.5.

16.The establishment’s operators or employees shall be required to discourage loiterers on or near the premises and to ask persons loitering longer than 15 minutes to leave the area and contact local law enforcement officials for enforcement of applicable trespassing and loitering laws if persons requested to leave fail to do so.

17.Prior to the initiation of alcoholic beverage sales activity, the most current technology for a video surveillance system with at least a seven (7) day continuous recording capability shall be in place. Video recordings shall be archived for at least 30 days.

The video surveillance system shall cover the entire exterior of the premises, including the parking lot and the entrances to the building.

18.Exterior vegetation shall not be planted or maintained, if it could be used as a hiding place for persons on the premises. Exterior vegetation shall be planted and maintained in a manner that minimizes its use as a hiding place.

19.No more than 20 percent of windows or clear doors shall bear advertising of any sort and all advertising signage shall be placed and maintained in a manner that ensures 845
that law enforcement personnel have a clear and unobstructed view of the interior of the premises, including the area in which the cash registers are maintained, from the exterior public sidewalk or entrance.

20.The owners and all employees of the alcoholic beverage sales establishment who are involved in the sale of alcoholic beverages shall complete an approved course in “Responsible Beverage Sales” (RBS), or any other ABC approved course, within 60 days of hire for employees hired To satisfy this requirement, a certified program must meet the standards of the Alcohol Beverage Control Responsible Beverage Service Advisory Board, other certifying/licensing body Service Advisory Board, or other certifying/licensing body designated by the State of California.

21.Exterior areas of the premises and adjacent parking lots shall be provided with sufficient lighting in a manner that provides adequate illumination for alcoholic beverage sales establishment patrons while not spilling onto surrounding parcels and rights-of-way. A photometric study may be required to demonstrate compliance once the use is initiated.

PASSED, APPROVED, and ADOPTED December 3, 2024 .

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

KATHERINE ROLAND, CMC, CPMC
City Clerk of the City of Stockton
846
Legend
Item A - Refrigerated
Beer & Wine
Item B - Shelved Beer
Item C - Shelved Wine
EXHIBIT 1 847

APPEAL OF PLANNING COMMISSION

APPROVAL OF A COMMISSION USE PERMIT

AND WAIVER TO ALLOW THE OFF-SALE OF

BEER AND WINE AT AN EXISITING MARKET
AT 2208 EAST MAIN STREET
(APN 155-350-01) (APPLICATION NO. P23-0182)
Agenda Item 16.1
City Council Meeting
December 3, 2024
848
Appeal
• PC Approval July 25, 2024 (5-0 vote)
• Commission Use Permit and Waiver to allow the
off-sale of beer and wine at an existing market
• Appeal filed on August 5, 2024 by Mary
Elizabeth, citing:
• Concerns of over-concentration of alcohol licenses
849
Location
Project Site
850
General Plan / Zoning
RM
RL
Additional Zoning Districts: RL (Residential, Low Density) and RM (Residential, Medium Density)
Zoning District: CG (Commercial, General)
Low Density Residential
GP land use designation: Commercial
Medium Density Residential
851
Existing Off-Sale Licenses within 500 feet
Market Liquor store
Project Site
852
Staff Analysis
• Location Restrictions (SMC 16.80.040)
• 500 feet of a school, youth facility, daycare, religious facility, etc. (MET)
• Not located in a Crime Reporting District that exceeds 20% citywide average (MET)
• 500 feet from another off-sale establishment (NOT MET) • Requires waiver per SMC 16.80.040(D)(2)(d)(ii)(B)
• Not create a grouping of four or more off-sale establishments within 1,000 feet (MET)
• All Use Permit and Waiver findings made in the affirmative • Meets development standards for parking, site access, etc 853
Project Details
• Existing 3,600± Market
“Mi Ranchito Market and Carniceria”
• Add off-sale of beer and wine (Type 20 License)
• Dedicate no more than 20% of floor area to
the sale and display of alcoholic beverages
• Distilled spirits will not be sold
854
Staff Analysis – Appeal Specific
• Concerns of overconcentration
• Planning Commission determined that public convenience or necessity would be served by the Market selling beer and wine for the convenience of its customer demand
• The existing Market sells a wide variety of grocery, clothing, beverage goods and operates a carneceria offering preferential cuts of meat • Only 2 off-sale establishments are in close proximity (500') to the Market; remaining 6 licenses are dispersed on the peripheral of the large census tract boundary
• The Use Permit Project conditions of approval will ensure the use will not result in loitering, vandalism, illegal sales, public drunkenness and other nuisance activities
855
Staff Recommendation
Adopt Resolution:

Denying the appeal and affirming the Planning
Commission’s approval of a Commission Use
Permit and Waiver to allow the addition of off-sale
beer and wine within the existing market at 2208
East Main Street, in accordance with the findings
and subject to the conditions in the proposed
resolution.
856
City of Stockton
Legislation Text
File #: 24-0992, Version: 1
APPEAL OF THE PLANNING COMMISSION’S APPROVAL OF A USE PERMIT, SPECIFICALLY CONDITION OF APPROVAL NO. 8, FOR AN ABC LICENSE UPGRADE AT AN EXISTING CONVENIENCE STORE LOCATED AT 2910 WEST EIGHT MILE ROAD (P23-0306) (APN 070-670- 30)

RECOMMENDATION
Staff recommends that the City Council adopt a resolution upholding the Planning Commission’s original decision with all conditions of approval incorporated.

Summary
The applicant, Sandy Mann, filed a planning application for a new Use Permit to upgrade their use from Type 20 (off-sale beer and wine) to Type 21 (off-sale general alcohol) in an existing convenience store located at 2910 West Eight Mile Road, herein known as the “Project.” (Attachment A - Location Map). The Project site has a General Plan designation of Commercial (Attachment B - General Plan Map) and a Zoning designation of Commercial, General (CG) (Attachment C - Zoning Map).

Currently under construction, the original Commission Use Permit was approved to develop a 3,700 SF convenience store with gasoline stations, car wash, and associated site improvements to develop the site on October 26, 2017 (Attachment D - Approved Use Permit P17-0667) for the off-sale beer and wine, a Finding of Public Convenience was not required at that time.

Staff determined this Project is in compliance with the Stockton Municipal Code (SMC) and recommended the Planning Commission approve the requested Use Permit for the upgrade from a Type 20 to a Type 21 ABC license for off-sale of general alcohol. On August 8, 2024, the Planning Commission held a public hearing and approved the Project subject to nineteen (19) conditions of use.

The Applicant’s appeal is focused solely on CUP Condition No. 8, which states that “No single sale of beer or malt liquor in containers under 40 ounces or less shall be permitted in the convenience store,” and requests that the City Council modify the Project approval so that this condition does not apply.

Staff recommends that the City Council uphold (affirm) the Planning Commission’s approval, with all conditions, as Condition No. 8 is a carry-over from the project’s original approval, was not contested nor objected to during initial approval in 2017,, no objections were received regarding said Condition during the 2024 Planning Commission action, and a lack of relationship exists between the new UP (alcohol license upgrade) and the pre-existing condition of approval.

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File #: 24-0992, Version: 1
By the requirements of SMC 16.100.040(G), it is the City Council’s purview to discuss the matter and determine approval or denial of the Applicant’s appeal request. The SMC requires four (4) concurring votes of the Council to overrule or modify a decision of the Planning Commission.

DISCUSSION
Background
The applicant, Sandy Mann, has applied for a Commission Use Permit to upgrade an existing Type 20 ABC license which enables the off-sale of beer and wine, to a Type 21 license which enables the off-sale of beer, wine, and distilled spirits (i.e. general alcohol).

The original Use Permit, approved by the Planning Commission on October 26, 2017 (P17-0667), entitled a convenience store with off-sale of beer and wine that was 3,700 SF in size with eight (8) gasoline pumps and a car wash facility. This prior approval enabled the applicant to obtain a Type 20 license from ABC. The applicant has complied with all original conditions of approval without incident.

In order for the applicant to upgrade their ABC license from a Type 20 to a Type 21, Stockton Municipal Code (SMC) Section 16.80.040(D)(2)(c) requires Planning Commission approval of a new Use Permit.

On August 8, 2024, the Planning Commission held a public hearing to consider the project application. The Planning Commission opened the public hearing and received staff and applicant presentations and then discussed the project. Staff indicated that the project satisfied all location requirements, no location waivers were required, and the project satisfied all findings for approval.

The Commission approved the Project by a unanimous vote of 6-0 (Commissioner Thompson absent).

On August 12, 2024, within the 10-day appeal period, the Applicant submitted an appeal request per SMC Section 16.100.040 (Filing and processing of appeals), included as Attachment E. The Applicant is not appealing the Project’s approval; instead, the appeal is of UP Condition No. 8: “No single sale of beer or malt liquor in containers under 40 ounces or less shall be permitted in the convenience store.”

STAFF ANALYSIS
As shown in the Planning Commission legislative text and resolution dated August 8, 2024, included as Attachment F, the Project as designed and conditioned meets the approval findings for consistency with SMC Section 16.80.040 (Location Restrictions) and 16.168.050 (Use Permit General Findings, Problem Use Findings, and Alcoholic Beverage Findings). City staff also determined that the Project would be consistent with the Stockton General Plan, the Stockton Municipal Code (SMC).

Stockton Municipal Code (SMC) Section 16.80.040(D)(2)(c) requires a new Use Permit for ABC license upgrades. ABC upgrades are exempt from codified location restrictions for proximity to sensitive land uses such as schools and daycares as they apply to already approved projects. The City of Stockton Page 2 of 4 Printed on 11/26/2024
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File #: 24-0992, Version: 1
upgrade will not result in a net increase in off-sale licenses in the census tract, the subject site is not located in a high crime reporting district, and the conditions placed on the new permit will mitigate any potential negative impact on the surrounding neighborhood.

Current hours of operation for the existing convenience store and gasoline sales are 24 hours per day, seven (7) days a week. The sale of alcoholic beverages will comply with State Alcoholic Beverage Control (ABC) regulations and only be offered between 6:00 a.m. and 2:00 a.m., seven (7) days a week. While the City has the authority to regulate and permit land use, the sale of alcohol is regulated by ABC.

The Project is consistent with the 2040 General Plan Land Use Map designation of Commercial applicable to the site. The project also furthers General Plan policies aimed at attracting employment and tax-generating businesses in the City (Policy LU-4.2). All of this is accomplished in a development proposal that is compliant with all applicable requirements within SMC Title 16 (Development Code).

Additionally, the subject use complies with the California Environmental Quality Act (CEQA) as an Initial Study/Final Negative Declaration was prepared and approved for the site under the prior Use Permit, which considered the convenience store use.

Appeal
Although Condition No. 8 is considered an optional condition under SMC Section 16.80.040(D)(5) for alcohol uses, it has been applied on past projects and is a carry-over from this project’s original 2017 approval for the off-sale of beer and wine. No objections to Condition No. 8 were received from the Applicant before or during the August 8, 2024 Planning Commission public hearing.

Further, the original project approval in 2017 was for a Convenience Store with off-sale beer and wine; Condition No. 8 is directly related to that use and was not contested during that entitlement process. The new UP request is a result of the applicant’s desire to upgrade their ABC license from a Type 20 (off-sale beer and wine) to a Type 21 (off-sale beer, wine, and distilled spirits). The application of Condition No. 8 would not impact distilled spirits as it is intended for the sale of beer/malt liquor, therefore the current request lacks a explanation or relationship to justify the removal of said condition.

The submitted appeal challenges Use Permit Condition No.8 based on the relevance and necessity of the condition as applied to the project. Specifically, the appellant provided several justifications for their position: (1) the applicant is experienced and has a proven track record of effective management and safe operations; (2) hours of operation for alcohol sales; (3) utilization of crime prevention through environmental design principles; (4) security measures; (5) consistent staff training, and (6) addressing consumer product demands/sale of craft beer. The applicant has provided a letter (Attachment G -Support Letter) to demonstrate each point.

Per SMC 16.100.040(G), the City Council may, by resolution, affirm, affirm in part, or reverse the action of the Planning Commission. The appellant is requesting that the Council affirm the Planning Commission’s approval in part - the only modification being the removal of Condition of Approval No.

8. The SMC requires four concurring votes of the Council to overrule or modify a decision of the Planning Commission.

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It is staff’s recommendation that the City Council uphold the Planning Commission’s approval, with all conditions, as Condition No. 8 is a carry-over from the project’s original approval; no objections were received regarding said Condition during the original 2017 and recent 2024 Planning Commission hearings, and a lack of a l relationship exists between the new UP (alcohol license upgrade) and the pre-existing condition.

Environmental Analysis
The subject use complies with the California Environmental Quality Act (CEQA) as an Initial Study/Final Negative Declaration was prepared and approved for the site under the prior Use Permit, which considered the convenience store use.

Additionally, the proposed project is categorically exempt from CEQA, pursuant to CEQA Guidelines section 15301(a) (Existing Facilities), since the project will occupy an existing facility and no expansion of building or site is proposed.

PUBLIC COMMENT
Notice for this item was published in the Record, and a mailed meeting notice has been sent to all property owners within a 300-foot radius of 2910 West Eight Mile Road, on November 19, 2024. No written comments have been submitted from the time of the appeal to the preparation of this staff report.

FINANCIAL SUMMARY
Approval of the appeal would provide the City’s General Fund with additional revenue collected through Business Tax as a result of increased sales of single beer/malt containers under 40 ounces.

Denial of the appeal would provide no impact as the Condition has been in place since original UP approval and the ABC license upgrade allows the sales of distilled spirits in addition to the already approved beer and wine sales.

Attachment A - Location Map
Attachment B - General Plan Map
Attachment C - Zoning Map
Attachment D - Approved Use Permit P17-0667
Attachment E - Appeal
Attachment F - Planning Commission Approval Resolution
Attachment G - Support Letter
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860
City of Stockton, CA
Locati on Map June 21, 2024
Property Information
Property ID 07067030-85372
Location 2910 W EIGHT MILE RD
Owner

MAP FOR REFERENCE ONLY

NOT A LEGAL DOCUMENT
City of Stockton, CA makes no claims and no warranties, expressed or implied, concerning the validity or accuracy of the GIS data presented on this map.

Geometry updated 05/03/2023
Data updated 05/01/2023
Print map scale is approximate.

Critical layout or measurement
activities should not be done using
this resource.
1" = 260.97161062267975 ft
ATTACHMENT A 861
City of Stockton, CA
Genera l Plan Land Use Map June 21, 2024
Property Information
Property ID 07067030-85372
Location 2910 W EIGHT MILE RD
Owner

MAP FOR REFERENCE ONLY

NOT A LEGAL DOCUMENT
City of Stockton, CA makes no claims and no warranties, expressed or implied, concerning the validity or accuracy of the GIS data presented on this map.

Geometry updated 05/03/2023
Data updated 05/01/2023
Print map scale is approximate.

Critical layout or measurement
activities should not be done using
this resource.
1" = 260.97161062267975 ft
ATTACHMENT B 862
Map Theme Legends
General Plan Map
City of Stockton GIS data

ECONOMIC AND EDUCATION ENTERPRISE

RESIDENTIAL ESTATE

LOW DENSITY RESIDENTIAL

MEDIUM DENSITY RESIDENTIAL

HIGH DENSITY RESIDENTIAL

ADMINISTRATIVE-PROFESSIONAL

COMMERCIAL

INDUSTRIAL

INSTITUTIONAL

OPEN SPACE/ AGRICULTURE

PARKS AND RECREATION

MIXED USE

RIGHT OF WAY
ATTACHMENT B 863
City of Stockton, CA
Zoning Map June 21, 2024
Property Information
Property ID 07067030-85372
Location 2910 W EIGHT MILE RD
Owner

MAP FOR REFERENCE ONLY

NOT A LEGAL DOCUMENT
City of Stockton, CA makes no claims and no warranties, expressed or implied, concerning the validity or accuracy of the GIS data presented on this map.

Geometry updated 05/03/2023
Data updated 05/01/2023
Print map scale is approximate.

Critical layout or measurement
activities should not be done using
this resource.
1" = 260.97161062267975 ft
ATTACHMENT C 864
Map Theme Legends
Zoning
City of Stockton, CA Zoning Data

COMMERCIAL AUTO DISTRICT (CA)

DOWNTOWN COMMERCIAL (CD)

GENERAL COMMERCIAL (CG)

LARGE SCALE COMMERCIAL (CL)

NEIGHBORHOOD COMMERCIAL (CN)

OFFICE COMMERCIAL(CO)

GENERAL INDUSTRIAL(IG)

LIMITED INDUSTRIAL (IL)

PORT (PT)

LOW DENSITY RESIDENTIAL (RL/P)

MEDIUM DENSITY RESIDENTIAL (RM/P)

HIGH DENSITY RESIDENTIAL (RH/P)

MIXED USE (MX)

OPEN SPACE (OS)

PUBLIC FACILITIES (PF)

UNIVERSITY/COLLEGE (UC)

RIGHT OF WAY (ROW)
ATTACHMENT C 865
ATTACHMENT D 866
ATTACHMENT D 867
ATTACHMENT D 868
ATTACHMENT D 869
ATTACHMENT D 870
ATTACHMENT D 871
ATTACHMENT D 872
ATTACHMENT D 873
ATTACHMENT D 874
ATTACHMENT D 875
ATTACHMENT D 876
ATTACHMENT D 877
ATTACHMENT D 878

ATTACHMENT E
879
ATTACHMENT E 880
Resolution No.2024-08-08-0501

STOCKTON PLANNING COMMISSION

RESOLUTION APPROVING A COMMISSION USE PERMIT TO UPGRADE FROM THE

OFF-SALE BEER AND WINE TO OFF-SALE OF GENERAL ALCOHOLIC BEVERAGES IN AN EXISTING CONVENIENCE STORE AT 2910 WEST EIGHT MILE ROAD (P23-0306) (APN 070-670-30)
On January 8, 2023, the applicant, Sandy Mann, submitted an application to the Community Development Department for a Commission Use Permit for planning application No. P23-0306, to upgrade his existing Type 20 Alcoholic Beverage Control (ABC) license to a Type 21 ABC license at his existing convenience store; and On July 29, 2024, public notice for the subject application was published in the local newspaper in accordance with Stockton Municipal Code (SMC) section 16.88.030; and
On -August 8, 2024, the Planning Gommission conducted-a public hearing on the- application, in compliance with SMC chapter 16.88, at which point all persons wishing to be heard were provided such opportunity; now, therefore,

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

A. The foregoing recitals are true and correct and incorporated herein reference.

B. Based on its review of the entire record herein, the Planning Commission makes the following findings:

Use Permit: General Findings

1. The proposed use is allowed in the Commercial, General (CG) zoning districts, subject to approval of a Use Permit by the Planning Commission and complies with all other applicable provisions of the Development Code (Title 16) and the SMC. The proposed use is allowed with a Commission Use Permit in the Commercial, General (CG) Zone. Per SMC section 16.20.020, Table 2-2, the use, as proposed, will meet all applicable development standards at SMC Title 16 (Development Code). There are no applicable overlays or specific plans for this site.

2. The proposed upgrade, as conditioned, will maintain or strengthen the integrity and character of the neighborhood and zoning district in which it is to be located.

ATTACHMENT F 881
The existing convenience store currently operates with a Type 20 ABC license. The proposed upgrade to a Type 21 ABC license will only add goods to the existing conveniences store. It will continue to provide neighborhood-service retail and convenience services to the local neighborhood.

3. The proposed upgrade will be consistent with the general land uses, objectives, policies, and programs of the General Plan and any applicable specific plan or master development plan:

Goal CH-3: Expand opportunities for local enterprise, entrepreneurship, and gainful employment.

ED-1 To maintain a thriving business community that provides a sound tax base for the City, jobs for the local workforce, and commercial shopping opportunities for residents and visitors alike. The proposed development will create jobs and provide services to an underserved area of Stockton.

4. The subject site will be physically suitable for the type and density/intensity of the use being proposed, including the provision of services (e.g., sanitation and water), public access, and the absence of physical constraints (e.g., earth movement, flooding, etc.). The Project site is fully entitled and developed. The proposed upgrade to the ABC �·
license tyr.,e does notc:hange the physical suitabilitv.oJjlle sitei.or density/intern,i!y of the use. Approval of the upgrade will enable the applicant to sell general alcohol instead of just beer and wine.

5. The establishment, maintenance, or operation of the subject use and proposed upgrade, at the location proposed and for the time period(s) identified, is not expected to endanger, jeopardize, or otherwise constitute a hazard to the public convenience, health, interest, safety, or general welfare of persons residing or working in the neighborhood of the subject use, because the use will be subject to conditions of approval which currently require a security surveillance video system, installation of lighting around the premises, as well as additional conditions of approval relating to loitering and obeying all laws established by the City of Stockton and ABC.

6. The design, location, size, and operating characteristics of the subject upgrade are expected to be compatible with existing and future land uses on- site and in the vicinity of the subject property because the convenience store already sells beer and wine and is classified as a retail use that is compatible with the Commercial General Plan land use designation of the subject site. The added sale of general alcohol will not alter this. The anticipated customer base, traffic patterns, noise levels, and general operational characteristics of the proposed upgrade are compatible with the existing commercial use.

7. The proposed action is a Categorically Exempt use, in accordance with the provisions of section 15301, Class 1, of the California Environmental Quality Act (CEQA) for existing facilities, as the project will be reusing an existing building with only minor interior and exterior alterations and rehabilitation proposed. The site has existing ATTACHMENT F 882
infrastructure and access to public utilities.

Problem Use Findings -Alcoholic Beverage Sales. Off-Sale

1. The proposed upgrade, as conditioned, is not likely to interfere with the comfortable enjoyment of life or property in the area. The proposed upgrade will provide an opportunity for nearby residents to purchase additional convenience items and will not interfere with the comfortable enjoyment of life or property in the vicinity.

2. The proposed upgrade, as conditioned, will not increase or encourage the deterioration or blight of the area. The proposed off-sale of general alcohol will be going into an existing convenience store and fueling station, on a developed site. The Owners, Developers, and/or Successors in Interest (ODS) are required to conform to all Conditions of Approval related to the Project, which include conditions related to loitering, as well as all laws and regulations provided by ABC.

3. The proposed upgrade in the area will not be contrary to any program of neighborhood conservation, improvement, or redevelopment, either residential or nonresidential. The use will be going into a vacant, undeveloped site which will provide services to the neighborhood. There are no neighborhood conservation programs, improvement programs, or redevelopment programs in the area that the Project would be subject to ... ···-·· ··· ....... -····- . .. ........ .... . .. ··········�· ___ _ ··-···--· ......... ·�·--·· .... .

Alcoholic Beverages Findings

1. The proposed use will not result in repeat nuisance activity on or near the premises. Nuisance activity includes, but is not limited to: disturbing the peace, illegal drug activity, public drunkenness, drinking in public, harassment of passersby, gambling, prostitution, sale of stolen goods, public urination/defecation, theft, assaults, batteries, acts of vandalism, excessive littering, loitering, graffiti, illegal parking, excessive loud noise (especially in the late night or early morning hours), traffic violations, curfew violations, lewd conduct, or police detentions and arrests. As conditioned, the convenience store will endure to limit potential nuisance and criminal activity, littering, graffiti, and excessive loitering. The Applicant has agreed to comply with all conditions of approval.

2. The owners and all employees of the establishment will complete an approved course in Licensee Education on Alcohol and Drugs (LEAD), or other "Responsible Beverage Sales" (RBS) or any other California Department of the ABC Board approved program within 60 days of hire for new employees. To satisfy this requirement, a certified program must meet the standards of the ABC Responsible Beverage Service Advisory Board, Service Advisory Board, or other certifying/licensing body designated by the State of California. As a condition of approval, the Applicant will complete the approved course for responsible beverages sales.

3. The proposed use will comply with all provisions of local, state, and federal ATTACHMENT F 883
laws, rules, regulations, policies, or orders, including, but not limited to, those promulgated and or enforced by the ABC, California Business and Professions Code sections 24200, 24200.6, and 25612.5, and any condition imposed on any valid permit(s) issued pursuant to applicable laws, regulations, or other authority. This includes compliance with annual city business license fees. The Applicant and proposed use will comply will all provisions of local, state, and federal laws, rules, regulations, policies, or orders enforced by the City of Stockton and ABC.

4. If required by California Business and Professions Code section 23958.4, public convenience or necessity will be served by the issuance of this Commission Use Permit or land development permit. Per ABC, the proposed off-sale of general alcohol at this location does not require a Public Convenience and Necessity determination at this time.

California Environmental Quality Act
The proposed action is a Categorically Exempt use, in accordance with the provisions of section 15301, Class 1, of the California Environmental Quality Act (CEQA) for existing facilities, as the project will be reusing an existing building with only minor interior and exterior alterations and rehabilitation proposed. The site has existing infrastructure and access to public utilities.

Conclusion
Based on its review of the entire record herein, all supporting, referenced, and incorporated documents, and all comments received, the Planning Commission hereby approves the requested Use Permit, subject to the following conditions of approval.

Conditions of Approval: Standard

1. This approval authorizes the plans included as Exhibit 1 (Project Plans) incorporated by reference and shall supersede the prior use permit, P17-0667, by this approval.

2. Comply with all applicable Federal, State, County, and City codes, regulations and adopted standards and pay all applicable fees.

3. The property ODS shall be responsible for the City's legal and administrative costs associated with defending any legal challenge of the approvals for this project or its related environmental document.

4. In order to minimize any adverse financial impact on the City of Stockton associated with development and/or use of the subject site, the ODS agrees that it will not challenge or protest any applicable fees associated with the development of the site, but if such fees are amended or modified, the ODS agrees to pay such fees as they may be amended or modified from time to time.

ATTACHMENT F 884

5. This Use Permit approval authorizes the upgrade of the existing Type 20 ABC license to a Type 21 ABC license, as identified in Exhibit 1, incorporated by reference.
a. The Owners, Developers, and/or Successors in Interest (ODS) shall comply with all applicable Federal, State, County, and City codes, regulations, laws, and other adopted standards and pay all applicable fees. b. Compliance with these Conditions of Approval is mandatory. Failure to comply with these Conditions of Approval is unlawful and may constitute a public nuisance subject to the remedies and penalties identified in the SMC including but not limited to, monetary fines and revocation of this Permit. c. This Use Permit shall be maintained on site and shall be immediately made available to City personnel upon inspection of the facility. d. Any future building signage shall be subject to approval by the Community Development Department.
e. Separate building permits will be required for alterations to the site or building at the project location.

Conditions of Approval: Project Specific
-�·� ··��·· This Use Permit approval incorporates the following conditions of approval.

1. A "complaint response community relations" program established and maintained by the establishment conducting the Alcoholic Beverage Sales Activity may be required. The program must include the following:
i. Posting at the entry of the establishment that provides the telephone number for the area commander of the local law enforcement substation to any requesting individual.
ii. Coordinating efforts with the Police Department to monitor community complaints about the establishment's activities. iii. Having a representative of the establishment meet with neighbors, or the applicable neighborhood association on a regular basis and at their request to attempt to resolve any neighborhood complaints regarding the establishment.

2. Hours of operation for the alcoholic beverage sales activity are limited to the regulations set forth by the State of California ABC.

3. The following signs are required to be prominently posted in a readily visible manner on an interior wall or fixture, and not on windows, in English, Spanish, and any other predominant language of the patrons:
i. "California State Law prohibits the sale of alcoholic beverages to persons under 21 years of age."
ATTACHMENT F 885
ii. "No Loitering or Public Drinking" signs shall be posted on the exterior of the business.
iii. The business shall post E.A.S.Y. (Eliminate Alcohol Sales to Youth) materials that are visible from outside the business.
iv. The consumption or carrying of open containers of alcoholic beverages on the premises of the off-sale alcohol establishment is not permitted. Signs advising patrons of this prohibition shall be posted adjacent to the front door on the interior of the building.

4. The establishment shall be required to operate in a manner appropriate with mitigating alcohol-related problems that negatively impact those individuals living or working in the neighborhood, including, but not limited to: sales to minors, the congregation of individuals, violence on or near the premises, drunkenness, public urination, solicitation, drug-dealing, drug use, loud noise, and litter.

5. Off-sale alcoholic beverage establishments shall be prohibited from selling drug/tobacco paraphernalia products as defined in California Health and Safety Code sections 11014.5 and 11364.5.

6. The establishment's operators or employees shall be required to discourage loiterers on or near the premises and to ask persons loitering longer than 15 --------- minutes to leave the area and contact local law enforcement officials for - ------- -��=�� =��= �� - enforcement of applicable trespassing and loitering laws if persons requested to leave fail to do so.

7. Prior to the initiation of alcoholic beverage sales activity, the most current technology for a video surveillance system with at least a seven (7) day continuous recording capability shall be in place. Video recordings shall be archived for at least 30 days. The video surveillance system shall cover the entire exterior of the premises, including the parking lot and the entrances to the building.

8. No single sale of beer or malt liquor in containers under 40 ounces or less shall be permitted in the convenience store.

9. Exterior vegetation shall not be planted or maintained if it could be used as a hiding place for persons on the premises. Exterior vegetation shall be planted and maintained in a manner that minimizes its use as a hiding place.

10. No more than 20 percent of windows or clear doors shall bear advertising of any sort and all advertising signage shall be placed and maintained in a manner that ensures that law enforcement personnel have a clear and unobstructed view of the interior of the premises, including the area in which the cash registers are maintained, from the exterior public sidewalk or entrance.

11. The owners and all employees of the alcoholic beverage sales establishment who are involved in the sale of alcoholic beverages shall complete an approved course ATTACHMENT F 886
in "Responsible Beverage Sales" (RBS), or any other ABC approved course, within 60 days of hire for all employees hired. To satisfy this requirement, a certified program must meet the standards of the ABC Responsible Beverage Service Advisory Board, other certifying/licensing body Service Advisory Board, or other certifying/licensing body designated by the State of California.

12. Exterior areas of the premises and adjacent parking lots shall be provided with sufficient lighting in a manner that provides adequate illumination for alcoholic beverage sales establishment patrons while not spilling onto surrounding parcels and rights-of-way. A photometric study may be required to demonstrate compliance once the use is initiated.

13. The Commission Use Permit shall be valid for the duration of the use, but if the alcohol sales license is revoked by the State of California, is transferred off-site, or if the establishment does not sell alcohol for a period of 24 months or more, the use permit may be subject to revocation following a public hearing.

14. The selling of distilled spirits of 50 milliliters or less, which are not in original factory packaging of four (4) or more, is prohibited.

PASSED, APPROVED, and ADOPTED August 8, 2024
ATTEST:

MICHAEL McDOWELL, SECRETARY
City of Stockton Planning Commission
:r�� TERRY 'JuLL, CHAIR
City of Stockton Planning Commission
ATTACHMENT F 887
PROPERTY DESCRIPTION __ _
REAL PROPERTY IN 11 IE CITY OF STOCKTON. COUIITY OF SAIi JOAOUIII, S 11\U. OF C,1\1.lfORIIII,, DESCRl!lEO 11S FOI.LQ',\'S; LOT 271 ;\SSltOIVIIO'l lllE MI\P Of lAACT 110. 14S2. SILVER SPRll'IGS. FILED FOO I\ECORll oc1oeen 21!. ,w� IU eoo11 40 OF 1,11\l'H AND PLA rn. PAOI! :m. S/\M JOAOIJIII COUNTY nccnnos.

APtt 070-670-01
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TOTAL ACREACE! 439.510 SF 110,0� /IC)
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CARIYASH
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,-./0123-/4056.//70/40589/ :;<=>?@@A=BCDE=<F=<CGA=B
HIJJHIKLMLNOOLPMQRNQSOTLUVWXYZ[I[
LO\]^YI_`aZ_bYZYZPSUcd\O]^YI_`HJIbZeJIPfQg]^YI_`aZ_bYZYY hOcKdLOPc\UiPOSQd\
jkA@?D?lG<=BAlm?@@Cn?G<CB@mA@@A=Bl=BGCAB@AB>=<mCGA=B><=mGk?DCo>A<m=>:pp=GGqrABs?<mCBBtuBlvokAlkmCwp?l=B>As?BGACD=<F<AxAD?n?sv y?lAFA?BG@@k=zDsB=G>AD?l=FA?@=>GkA@?{mCADoAGkFzpDAlDwCll?@@ApD?<?l=<s@vjk?AB>=<mCGA=BA@ABG?Bs?sG=p?>=<Gk?z@?=>Gk?ABsAxAszCD|@}BCm?s Cp=x?vu>w=zC<?B=GGk?ABG?Bs?s<?lAFA?BGtFD?C@?p?CoC<?GkCGCBwsA@lD=@z<?tl=FwABntsA@G<ApzGA=B=<z@?=>Gk?l=BG?BG@=>GkA@m?@@Cn?A@F<=kApAG?sv :pp=GGqrABs?<mCBBtuBlvEA<lzDC<~=GAl?j=?B@z<?l=mFDACBl?oAGkuy<?zA<?m?BG@to?AB>=<mw=zGkCGCBw vv>?s?<CDGCCsxAl?l=BGCAB?sAB GkA@l=mmzBAlCGA=BA@B=GABG?Bs?s=<o<AGG?BG=p?z@?stCBslCBB=Gp?z@?spwCBwGCFCw?<t>=<Gk?Fz<F=@?=>Cx=AsABnCBw>?s?<CDGCF?BCDGA?@v:BwD?nCD CsxAl??F<?@@?sABGkA@m?@@Cn?A@p?ABns?DAx?<?sG=w=z@=D?Dw>=<w=z<z@?ABl=BB?lGA=BoAGkGk?mCGG?<@Css<?@@?sk?<?ABCBsmCwB=Gp?<?DA?szF=Bpw CBw=Gk?<F?<@=B=<?BGAGw=<z@?s>=<CBw=Gk?<Fz<F=@?oAGk=zG=z<F<A=<o<AGG?Bl=B@?BGv ATTACHMENT G 898
Resolution No.

STOCKTON CITY COUNCIL

A RESOLUTION DENYING AN APPEAL OF THE PLANNING COMMISSION CONDITION OF APPROVAL NO.8 FOR USE PERMIT P23-0306 FOR AN ABC LICENSE UPGRADE FOR AN EXISTING CONVENIENCE STORE LOCATED AT 2910 WEST EIGHT MILE ROAD (APN 070-670-30)
The applicant, Sandy Mann, applied for an Alcohol and Beverage Control (ABC) license upgrade from Type 20 (off-sale beer and wine) to Type 21 (off-sale beer, wine, and distilled spirits (i.e. general alcohol)) in an existing convenience store located at 2910 West Eight Mile Road, herein known as the “Project”); and Stockton Municipal Code (SMC) Section 16.80.040(D)(2)(c) requires a new Use Permit for ABC license upgrades; and
On August 8, 2024, the Planning Commission conducted a duly noticed public hearing on the application, in compliance with Stockton Municipal Code (SMC) Section

16.88, at which point all persons wishing to be heard were provided such opportunity and then voted for approval of the Project by a vote of 6-0 (Commissioner Thompson absent); and
On August 12, 2024, the Applicant submitted an Appeal per SMC Section

16.100.040 (Filing and processing of appeals). The Applicant is not appealing the Project approval; only Condition of Approval No. 8, which states that “No single sale of beer or malt liquor in containers under 40 ounces or less shall be permitted in the convenience store,” and requests that the City Council modify the Project approval so that said condition no longer applies; and
On December 3, 2024, the City Council convened a public hearing regarding the appeal of the Planning Commission’s decision.; now, therefore,

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

1. The foregoing recitals are true and correct and incorporated by reference.

2. The City Council has considered the record evidence, which is incorporated by reference.

3. The City Council has considered the findings made in the Planning Commission’s approval dated August 8, 2024, attached hereto as Exhibit 1, and hereby adopts the same findings by this reference and incorporates them as part of this resolution, and based upon the City Council’s own independent review of the Record 899
Evidence.

4. The City Council finds that Condition of Approval No. 8 is a carry-over from the project’s original approval, has been in place without issue since 2017, no objections were received regarding said Condition during the Planning Commission hearing, and there is a lack of a relationship between the new UP (alcohol license upgrade) and the pre-existing condition.

5. The City Council further finds that the City’s imposition of condition of approval No. 8, which states that “No single sale of beer or malt liquor in containers under 40 ounces or less shall be permitted in the convenience store,” is permissible under SMC Section 16.80.040(D)(5) for alcohol uses.

6. The City Council finds that no additional environmental review is required under CEQA The subject use complies with the California Environmental Quality Act (CEQA) as an Initial Study/Final Negative Declaration was prepared and approved for the site under the prior Use Permit, which considered the convenience store use.

7. Additionally, the proposed project is categorically exempt from CEQA, pursuant to CEQA Guidelines section 15301(a) (Existing Facilities) since the project will occupy an existing facility and no expansion of building or site is proposed.

8. Based on the Record Evidence, the City Council hereby denies the Appeal request for the removal of Condition of Approval No. 8. The Project’s approval is upheld in full, without removal of said condition, as originally approved by the Planning Commission.

PASSED, APPROVED, and ADOPTED December 3, 2024 .

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

KATHERINE ROLAND, CMC, CPMC
City Clerk of the City of Stockton
900
EXHIBIT 1 901
EXHIBIT 1 902
EXHIBIT 1 903
EXHIBIT 1 904
EXHIBIT 1 905
EXHIBIT 1 906
EXHIBIT 1 907
APPEAL OFTHE PLANNING COMMISSION’SAPPROVAL OFA
USE PERMIT, SPECIFICALLY CONDITION OFAPPROVAL NO. 8,

FORAN ABC LICENSE UPGRADE AT AN EXISTING

CONVENIENCE STORE LOCATEDAT
2910WEST EIGHT MILE ROAD (P23‐0306) (APN 070‐670‐30)
Agenda Item 16.2
City Council Meeting
December 3, 2024
908
Appeal
• Currently states “No single sale of beer or malt liquor in containers under 40 ounces or less shall be permitted in the convenience store.”
Solely Focused on Condition #8
• Relevance and Necessity
• Operator Experience &Track Record
• Hours of Operation
• CPTED ‐ Crime PreventionThrough Environmental Design
• Security Measures
• StaffTraining
• Consumer Demand
Appellant Rationale
909
Location
Project
Site
910
General Plan
Project
Site
Commercial
Economic and Education
Enterprise
Low Density
Residential
Administrative
Professional
High Density
Residential
911
Zoning Map
Lands in the County
Residential, High (RH)
Commercial,General (CG)
Lands in the County
Residential, Low (RL)
Commercial,Office (CO)
912
Use Permit – Upgrade Requirements
• Shall be no increase in the net number of licenses in the census tract No Net Increase in Licenses
• While not applicable, nearest public park is 1530’ away; nearest school 1730’ Exempt from Sensitive Receptor’s 500’ rule requirement
• Existing license must be transferred out of census tract or canceled Transfer or Cancel License
• Must meet all findings
Obtain a new CUP
• Cannot exceed average number of citywide crimes by 20% Crime Reporting District
• Grouping of four or more are not permitted, nor can it be located within 500’ of another establishment
Grouping Requirement
913
Use Permit ‐ Required Findings
• Seven required findings
General Findings – Met 
• Three required findings
Problem Uses – Met 
• Four required findings
Alcoholic Beverages – Met 
914
Appeal – Staff Analysis
• Provides for Conditions ofApproval forAlcoholUses
• COA #8 is optional
SMC Section 16.80.040(D)(5)
• COA not contested at originalUse Permit approval
Project received original entitlement in 2017.
• COA’s carried over from original approval
• COA not contested at hearing for upgrade
PC Approval of August 8, 2024
• Staff unable to support removal of condition as there is no relationship between the new Use Permit (upgrade) and the pre‐ existing condition
No Causational Relationship
915
Recommendation
Staff recommends that the City Council
• Adopt a resolution upholding the Planning
Commission’s original decision with allconditions of approval incorporated 916
City of Stockton
Legislation Text
File #: 24-1065, Version: 1

APPEAL OF THE PLANNING COMMISSION APPROVAL OF A COMMISSION USE PERMIT TO ESTABLISH A CANNABIS RETAIL STOREFRONT IN AN EXISTING BUILDING AT 1748 WEST FREMONT STREET (APN 135-080-01) (APPLICATION NO. P23-0049)

RECOMMENDATION
Staff recommends that the City Council adopt a resolution to:

Deny the appeal and affirm the Planning Commission’s approval of a Commission Use Permit to allow the establishment of a proposed cannabis retail storefront business within an existing building, in accordance with the findings and subject to the conditions found in the Proposed Resolution.

Summary
On September 12, 2024, the Planning Commission heard and approved a Commission Use Permit application for Culture CC Associates 2 Corp/Devon Julian to operate a cannabis retail storefront location within an existing and vacant 5,925+/- square foot industrial building at 1748 West Fremont Street.

On September 23, 2024, the appellant, Shania Taylor, filed an appeal of the Planning Commission’s approval of the project, citing concerns regarding over-concentration, proximity to an existing cannabis business, lack of public necessity, and project impact on surrounding neighborhoods and businesses.

Staff finds that the proposed project is consistent with the City’s Cannabis Ordinance (SMC

16.80.195), meets General Plan policies, and affirmatively makes all seven required use permit findings. Staff recommends that the City Council deny the appeal and affirm the Planning Commission’s approval of a Commission Use Permit.

DISCUSSION
Background
On February 2, 2021, City Council provided staff direction to evaluate the existing cannabis regulatory program (originally established in 2016) and develop recommendations for amendments to address overconcentration, encouragement of certain business types, location requirements and equity program.

On March 1, 2022, the City Council adopted Ordinance 2022-03-01-1601, amendments included:
· Amending business license payment dates
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· Adding a cap on the number of retailer operator (storefront) permits (14) · Clarification of permitting processes
· Clarification of by-right allowances for existing businesses · Lottery process updates
· Zoning updates and general Code language clean up (i.e. definitions, etc.) · Removal of location waivers
· Equity Program updates
For storefront retailer and microbusinesses permit types, where concerns existed about the potential impact on public safety, public health, or community character; a controlled expansion provision was established by the Council in 2019. The controlled expansion program allows the City to adapt to an evolving industry and provides the flexibility to accelerate or decelerate industry expansion over time.

The controlled expansion also has the benefit of allowing the City to give preference to equity applicants. Per SMC 16.80.195(K)(4), the controlled expansion is accomplished on an annual basis through a lottery process for the following business types:
a. storefront retailer
b. microbusinesses, which include storefront retail and/or cultivation business types Applicants for the above business types are evenly selected by the lottery process from two pools for a total of four applications per year, as described below:

Equity Pool General Pool
a. One storefront retailer permit a. One storefront retailer permit b. One microbusiness permit b. One microbusiness permit The lottery includes an equity component (i.e. Equity Pool) to enable Stockton residents from disadvantaged areas to obtain cannabis business permits. To qualify as an equity applicant, greater than 50% of the ownership, as determined by equity sharing, for the permit must be a resident of Stockton for five years and either live in the SB 535 disadvantaged area or “Kelly Drive Neighborhood” as defined by the City Council or demonstrate low-income status. Applicants for the above business types are evenly selected from 1) a general pool of applicants and 2) an equity pool of applicants.

The subject applicant, Culture CC Associates 2 Corp/Devon Julian, qualified as a general pool applicant and was selected as the retail storefront applicant in the 2022 Commercial Cannabis Lottery under application CP22-00027 (Attachment A - Cannabis Lottery Win Letter). This is one of two retail storefront business applicants awarded eligibility to submit applications in the 2022 lottery.

On September 12, 2024, the Stockton Planning Commission conducted a duly noticed hearing, considered and approved by a vote of 4-2 (Commissioners Boparai and Vielma dissenting and Commissioner Rizvi absent) (Attachment B - Resolution No. 2024-09-12-0502) a Commission Use permit to operate a cannabis retail storefront location within an existing and vacant 5,925+/- square foot industrial building at 1748 West Fremont Street (Attachment C - Location Map). The site has a General Plan designation of Industrial (Attachment D - General Plan Land Use Map) and a zoning designation of Industrial, Limited (IL) (Attachment E - Zoning Map). The site is bound to the north by Interstate 5 and to the south, east, and west by similar light industrial uses.

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The approved project complies with all City Development Code regulations, including location requirements, for cannabis retail storefront operators. The Stockton Police Department also reviewed the application and indicated no concerns with the proposed project. If the approval is upheld, a formal security plan and lighting plan will be submitted and reviewed by the Police Department as part of the Operators Permit process.

No members of the public in attendance during the public hearing provided verbal comment. Council Member Villapudua submitted written correspondence in objection to the Project; no additional public comments or e-mails were received.

On September 23, 2024, the applicant, Shania Taylor, filed an appeal of the Planning Commission’s approval of the project, citing the over-concentration of cannabis in the community, proximity to an existing cannabis business, lack of public necessity, and that the Project would have an impact on the surrounding neighborhoods and businesses. (Attachment F - Applicant Appeal) Present Situation
The appellant, Shania Taylor, is requesting that the City Council overturn the Planning Commission’s approval, thereby denying the Commission Use Permit, citing the over-concentration of cannabis in the community, proximity to an existing cannabis business, no public necessity, and that the Project would have an impact on the surrounding neighborhoods and businesses.

As reflected in staff’s analysis provided below, the Project complies with all applicable provisions of the Stockton Municipal Code and exceeds the minimum location requirements outlined in SMC Section 16.80.195. Findings in the affirmative were made by the Planning Commission as the Project would strengthen the integrity of the surrounding area by locating its operation within a vacant existing building, provide new employment opportunities, and generate additional tax revenue for the City General Fund.

In accordance with SMC Section 16.100.040(G)(1), the City Council may affirm the Planning Commission’s action and deny the appeal or reverse and overrule the Commission’s action by approving the appeal with four (4) concurring votes (a majority vote). The evidentiary record and subsequent appeal analysis fail to support the reversal of the Planning Commission’s approval; therefore, staff recommends the City Council deny the appeal and affirm the Planning Commission’s conditional approval.

Staff Analysis
Stockton Municipal Code (SMC) Section 16.80.195 provides a land-use process for permitting cannabis business types and standards for development, which includes location restrictions. The SMC imposes a limit on the total number of permits allowed citywide for storefront retailers (maximum of 14) as well as other measures to regulate market expansion in the City (i.e. to prevent over-concentration), those include the Commercial lottery program described above, zoning restrictions, and minimum location (separation) requirements (some in excess of State law). These measures also lead to other restraints outside of City regulations, such as limited market availability of retail space in allowable zones that meet location requirements.

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Location Requirements
Per SMC 16.80.195(A)(6), the following location requirements apply to all cannabis retail storefront operations.
a. No retailer operator shall be established or located within 300 feet, measured from the nearest property lines of each of the affected parcels, of any existing residential zone or use. b. At the time the Use Permit is issued, no retailer operator shall be established or located within 600 feet of any of the following: A public or private academic school for students in kindergarten through 12th grade, nursery school, preschool, or childcare facility; A public park, playground, recreational area, or youth facility; Religious facilities; or Drug abuse, or alcohol recovery/treatment facility. c. No retailer operator shall be established or located within 1,000 feet of any of the following: Existing cannabis storefront retailer operator; Existing RDC (Retailer, Distributor, Cultivation), RDM (Retailer, Distributor, Manufacturer), and/or RCM (Retailer, Cultivation, Manufacturer) microbusiness operator. “Existing” indicates the possession of an approved use permit.

All distances are measured in a straight line from the closest point between property lines. As of the time of Planning Commission approval, staff confirmed that the project met all the above-listed location requirements. Based on available information and research, there are no:
· Existing residential zones or uses within 300-feet of the Project’s property lines; · K-12 public or private schools, nursery schools, preschools, or childcare facilities; · Public parks, playgrounds, recreational areas, or youth facilities; · Religious facilities; or
· Drug abuse or alcohol recovery/treatment facilities.

The closest cannabis business is located approximately 1,100 away feet as the crow flies at 1550 West Fremont Street (Attachment G - Approved Cannabis Business Locations).

Despite exceeding minimum separation distances as required by the Municipal Code, an issue raised by some Planning Commissioners related to the proposed location being in the vicinity of another Cannabis Retailer Storefront (approximately 1,100 feet between the two parcels) and concerns approval of the new use could result in possible over-concentration. The SMC does not define “over-concentration” as applied to cannabis business types; however, increased minimum separation distances, elimination of location waivers, utilization of a lottery to select applicant for specific business types are all existing methods that help regulate the concentration of cannabis businesses in the City. The proposed Commission Use permit meets all of these regulatory standards.

Commission Use Permit
A Commission Use Permit is required for a cannabis retail storefront business. SMC Section

16.168.050 requires seven (7) general findings of fact to grant CUP approval.

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Staff’s analysis and the Planning Commission’s approved findings are as follows:

1. Finding: The proposed use is allowed within the subject zoning district with the approval of a use permit and complies with all other applicable provisions of this Development Code and the Municipal Code.

Staff Analysis: The proposed cannabis retail storefront use (i.e., use) is conditionally allowed in the IL Zone with approval of a Commission Use Permit. As conditioned, the cannabis retail storefront use will be in conformance with the development standards outlined in Title 16 of the Municipal Code. Adequate off-street parking spaces have been integrated into the site design and will be provided for the proposed use.

The proposed project meets the location requirements set forth in SMC 16.80.195(A)(6). The project is not located within 300 feet of any existing residential zone or use. The project is not located within 600 feet of any park, school providing K-12 instruction, day care center, or youth center, childcare center, child care, in-home (family day care home), religious facilities, or drug abuse or alcohol recovery/treatment facility.

2. Finding: The proposed use would maintain or strengthen the integrity and character of the neighborhood and zoning district in which it is to be located.

Staff Analysis: The proposed cannabis retail storefront business would operate within an existing building situated near several other light industrial uses. It would fill an existing vacant building, which would help strengthen the integrity and security of the surrounding area by providing added security due to the nature of the land use. The proposed use would also align with the intent of the general plan to attract employment and tax-generating businesses that support the economic diversity of the city.

3. Finding: The proposed use would be consistent with the general land uses, objectives, policies, and programs of the General Plan and any applicable specific plan or master development plan.

Staff Analysis: The General Plan Land Use Map designates the subject site as Industrial. The Industrial designation is intended to accommodate a wide variety of industrial uses, including, but not limited to, uses with nuisance or hazardous characteristics, warehousing, light manufacturing, and other related uses. The proposed use is a cannabis retail storefront business where cannabis products will be sold on-site, which is consistent with the intent described in the General Plan for the Industrial land use designation. The zoning district of Industrial, Limited (IL) is also consistent with the City’s General Plan Industrial land use designation for the project site.

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· Goal CH-3: Expand opportunities for local enterprise, entrepreneurship, and gainful employment.
· Policy LU-4.2: Attract employment and tax-generating businesses that support the economic diversity of the city.

The proposed use furthers the above goal and policy since it would provide for a business type that generates tax revenue for the City of Stockton’s general fund and expands opportunities for employment and entrepreneurship.

4. Finding: The subject site would be physically suitable for the type and density/intensity of use being proposed, including the provision of services (e.g., sanitation and water), public access, and the absence of physical constraints (e.g., earth movement, flooding, etc.).

Staff Analysis: The proposed project has been analyzed by all applicable departments, and it has been determined that all existing streets and public accessways are adequate to serve the project. The site will have access to existing City utility services, which are presently available at the site. Further, a Building Permit for a tenant improvement is required for the proposed cannabis facility, and the project will be required to comply with all applicable Building Code standards.

5. Finding: The establishment, maintenance, or operation of the proposed use at the location proposed and for the time period(s) identified, if applicable, would not endanger, jeopardize, or otherwise constitute a hazard to the public convenience, health, interest, safety, peace, or general welfare of persons residing or working in the neighborhood of the proposed use.

Staff Analysis: The proposed land use will require the applicant to adhere to all applicable Building and Fire Codes, and additional requirements established by the State of California, Department of Cannabis Control. The Department of Cannabis Control issues annual licenses and regulates cannabis retail storefront to ensure safe practices. The applicant will also be required to obtain and maintain an Operator’s Permit from the City that requires the business owner to develop and maintain a security and lighting plan that is reviewed annually by the Police Department.

All cannabis operations for the proposed retail storefront will occur indoors in an Industrial zone. Appropriate security provisions will be incorporated into the project operations plan, including electronic surveillance and on-site security. The site will use an activated carbon filtration system to prevent any odors from spilling outside of the facility.

For the above reasons, the establishment, maintenance, or operation of the proposed land use activity would 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 neighborhood of the proposed use.

6. Finding: The design, location, size, and operating characteristics of the proposed use would be compatible with the existing and future land uses on-site and in the vicinity of the subject property.

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Staff Analysis: The proposed cannabis retail storefront business would be located in an existing building in an industrial area adjacent to other light industrial uses and does not raise any potential issues related to parking, as the site will have its own parking lot with ample offstreet parking spaces and a private driveway off West Fremont Street. The proposed use is commercial and raises no potential issues related to compatibility with the existing and future land uses on-site and in the vicinity of the subject property.

7. Finding: The proposed action would be in compliance with the provisions of the California Environmental Quality Act (CEQA) and the City’s CEQA Guidelines.

Staff Analysis: The proposed project will occupy an existing building. The project is categorically exempt from the CEQA, pursuant to CEQA Guidelines section 15301(a) (Existing Facilites) since the project will occupy an existing facility and no expansion of use is proposed.

These findings address the four concerns identified by the appellant:

Appellant Concern CUP Finding that Addresses Concern
Over-concentration of
cannabis in the
community
1 - Meets all codified requirements designed to prevent overconcentration Proximity to an existing
cannabis business
1 - Meets all codified requirements and exceeds minimum separation distances from sensitive uses and other cannabis businesses
Lack of public necessity 3 - Meets General Plan goals to provide for orderly, wellplanned, and balanced development; is considered a company/industry that offers high-quality jobs with competitive wages; and expands opportunities for local enterprise,
entrepreneurship, and gainful employment.

Impact on surrounding
neighborhoods and
businesses.
2 - Attracts employment and generates taxes to support the local economy 5 - Won’t endanger, jeopardize, or constitute a hazard to the public convenience, health interest, safety, or general welfare of persons residing or working in the
neighborhood

ENVIRONMENTAL CLEARANCE
The proposed project is categorically exempt from CEQA, pursuant to CEQA Guidelines section 15301(a) (Existing Facilities) since the project will occupy an existing facility and no expansion of building or site is proposed.

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PUBLIC COMMENT
Notice for this item was published in the Record, and a mailed meeting notice has been sent to all property owners within a 300-foot radius of 1748 West Fremont Street, on November 9, 2024. No written comments have been submitted from the time of the appeal to the preparing of this staff report.

FINANCIAL SUMMARY
Approval of the project would provide the City’s General Fund with additional revenue collected through the Cannabis Business Tax which is currently 5% of revenue earned by the business.

Attachment A - Cannabis Lottery Win Letter
Attachment B - Planning Commission Resolution No. 2024- Attachment C - Location Map
Attachment D - General Plan Land Use Map
Attachment E - Zoning Map
Attachment F - Applicant Appeal
Attachment G - Approved Cannabis Business Locations
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From: Taranjot Khehra
Sent: Friday, December 9, 2022 2:24 PM
To: Devon Julian
Subject: City of Stockton – Commercial Cannabis Lottery – Winner Notification Hello,
Congratulations! Your 2022 Commercial Cannabis Lottery Application was selected! This is your formal notification letter advising you of the winning status and to provide the next steps of the process.

Winning Cannabis Business Type: Retail (Storefront)
Applicant Name: Devon Julian
Business Name: Culture Cannabis Club
Business Structure Type:  Sole Proprietorship
Cannabis Business Location: 1748 W Fremont St
Application/Record Number: CL22-00027
Please note that Planning Applications to begin the review process for a Commission Use Permit (CUP) must be submitted to the City within ninety (90) days (by March 9, 2023) to confirm acceptance of this selection.  Nonsubmittal within the 90-day timeframe shall be grounds for revocation of lottery winner status per SMC 16.80.195 (K)(5)(iv). No extensions will be allowed. If you have any questions regarding your Planning Application, please contact the Current Planning team at (209) 937-8266 | [email protected].

Next Steps:

1. All information, including the Planning Application, Electronic Planning Submittal Guide, and Applicable Fees, can be found on the Planning website:
http://www.stocktonca.gov/government/departments/permitCenter/planApp.html.

2. If you would like to withdraw the opportunity to submit for a proposed project, provide written notification to the city at [email protected].

Thank you,
City of Stockton
Community Development Department
Taranjot Khehra
Administrative Analyst II
Community Development Department
345 N. El Dorado Street, Stockton CA 95202
Office: 209.937.8561 Direct: 209 937-8269
Email: [email protected]
ATTACHMENT A 925
ATTACHMENT B 926
ATTACHMENT B 927
ATTACHMENT B 928
ATTACHMENT B 929
ATTACHMENT B 930
City of Stockton, CA
Locati on Map June 13, 2024
Property Information
Property ID 13508001-45848
Location 1748 W FREMONT ST
Owner KARABALA, BASEL & MAJED

MAP FOR REFERENCE ONLY

NOT A LEGAL DOCUMENT
City of Stockton, CA makes no claims and no warranties, expressed or implied, concerning the validity or accuracy of the GIS data presented on this map.

Geometry updated 05/03/2023
Data updated 05/01/2023
Print map scale is approximate.

Critical layout or measurement
activities should not be done using
this resource.
1" = 323.4587530516198 ft
ATTACHMENT C 931
Map Theme Legends
Cannabis Business Locations
City of Stockton Community Development
Dept.

CULTIVATION

MICROBUSINESS (RDC)

MICROBUSINESS (RDM)

NON-STOREFRONT (DELIVERY ONLY)

RETAIL STOREFRONT

RETAIL STOREFRONT & DELIVERY
ATTACHMENT C 932
City of Stockton, CA
Genera l Plan Map June 13, 2024
Property Information
Property ID 13508001-45848
Location 1748 W FREMONT ST
Owner KARABALA, BASEL & MAJED

MAP FOR REFERENCE ONLY

NOT A LEGAL DOCUMENT
City of Stockton, CA makes no claims and no warranties, expressed or implied, concerning the validity or accuracy of the GIS data presented on this map.

Geometry updated 05/03/2023
Data updated 05/01/2023
Print map scale is approximate.

Critical layout or measurement
activities should not be done using
this resource.
1" = 261.33479279842777 ft
ATTACHMENT D 933
Map Theme Legends
General Plan Map
City of Stockton GIS data

ECONOMIC AND EDUCATION ENTERPRISE

RESIDENTIAL ESTATE

LOW DENSITY RESIDENTIAL

MEDIUM DENSITY RESIDENTIAL

HIGH DENSITY RESIDENTIAL

ADMINISTRATIVE-PROFESSIONAL

COMMERCIAL

INDUSTRIAL

INSTITUTIONAL

OPEN SPACE/ AGRICULTURE

PARKS AND RECREATION

MIXED USE

RIGHT OF WAY
ATTACHMENT D 934
City of Stockton, CA
Zoning Map June 13, 2024
Property Information
Property ID 13508001-45848
Location 1748 W FREMONT ST
Owner KARABALA, BASEL & MAJED

MAP FOR REFERENCE ONLY

NOT A LEGAL DOCUMENT
City of Stockton, CA makes no claims and no warranties, expressed or implied, concerning the validity or accuracy of the GIS data presented on this map.

Geometry updated 05/03/2023
Data updated 05/01/2023
Print map scale is approximate.

Critical layout or measurement
activities should not be done using
this resource.
1" = 261.33479279842777 ft
ATTACHMENT E 935
Map Theme Legends
Zoning
City of Stockton, CA Zoning Data

COMMERCIAL AUTO DISTRICT (CA)

DOWNTOWN COMMERCIAL (CD)

GENERAL COMMERCIAL (CG)

LARGE SCALE COMMERCIAL (CL)

NEIGHBORHOOD COMMERCIAL (CN)

OFFICE COMMERCIAL(CO)

GENERAL INDUSTRIAL(IG)

LIMITED INDUSTRIAL (IL)

PORT (PT)

LOW DENSITY RESIDENTIAL (RL/P)

MEDIUM DENSITY RESIDENTIAL (RM/P)

HIGH DENSITY RESIDENTIAL (RH/P)

MIXED USE (MX)

OPEN SPACE (OS)

PUBLIC FACILITIES (PF)

UNIVERSITY/COLLEGE (UC)

RIGHT OF WAY (ROW)
ATTACHMENT E 936
ATTACHMENT F 937
ATTACHMENT F 938

ATTACHMENT G
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ATTACHMENT G
940
Resolution No.

STOCKTON CITY COUNCIL

RESOLUTION AFFIRMING THE PLANNING COMMISSION APPROVAL OF A

COMMISSION USE PERMIT TO ESTABLISH A CANNABIS RETAIL STOREFRONT USE IN AN EXISTING BUILDING AT 1748 WEST FREMONT STREET (APPLICATION NO. P23-0049)
Culture CC Associates 2 Corp/Devon Julian, submitted an application for a Commission Use Permit to establish a cannabis retail storefront within a +/- 5,925 squarefoot existing building, on a parcel zoned Industrial, Limited (IL), located at 1748 West Fremont Street, APN 135-080-01; and
Culture CC Associates 2 Corp/Devon Julian is a general pool applicant winner of the City’s 2022 Commercial Cannabis Lottery, used to designate how many applicants are allowed to apply for certain commercial cannabis types; and On September 12, 2024, the Planning Commission conducted a duly noticed public hearing on the application, in compliance with Stockton Municipal Code (SMC) Section 16.88, at which point all persons wishing to be heard were provided such opportunity, and then voted for approval of the Project by a vote of 4-2 (Rizvi absent); and On September 23, 2024, Shania Taylor, the appellant, filed an appeal of the Planning Commission’s approval of the Project citing the over-concentration of cannabis in the community, proximity to an existing cannabis business, no public necessity, and that the Project would have an impact on the surrounding neighborhoods and businesses; and
On November 19, 2024, the City Council convened a public hearing regarding the appeal of the Planning Commission’s decision.; now, therefore,

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

A. The foregoing recitals are true and correct and incorporated by reference.

B. Based on the staff report, staff presentation, comments received, and the public hearing, the City Council makes the following findings based on substantial evidence in the record:

USE PERMIT FINDINGS
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1. The proposed use is allowed within the subject zoning district with the approval of a use permit and complies with all other applicable provisions of this Development Code and the SMC. The proposed project meets the location requirements set forth in SMC

16.80.195(A)(6). The project is not located within 300 feet of any existing residential zone.

The project is not located within 600 feet of any park, school providing K-12 instruction, day care center, or youth center, childcare center, child care, in-home (family day care home), religious facilities, or drug abuse or alcohol recovery/treatment facility.It is also not located within 1000 feet of an existing approved cannabis facility.

2. The proposed use would maintain or strengthen the integrity and character of the neighborhood and zoning district in which it is to be located. The proposed cannabis retail storefront business would be situated in an existing building situated near several other light industrial uses. It would fill an existing vacant building which would help strengthen the integrity and security of the surrounding area by providing added security due to the nature of the land use. The proposed use would also align with the intent of the general plan to attract employment and tax-generating businesses that support the economic diversity of the city.

3. The General Plan Land Use Map designates the subject site as Industrial. The Industrial designation is intended to accommodate a wide variety of industrial uses, including, but not limited to, uses with nuisance or hazardous characteristics, warehousing, light manufacturing, and other related uses. The proposed use is a cannabis retail storefront business where cannabis products will be sold on-site, which is consistent with the intent described in the General Plan for the Industrial land use designation. The zoning district of Industrial, Limited (IL) is also consistent with the City’s General Plan Industrial land use designation for the project site.

Additionally, the project is consistent with the following General Plan goals and policies:
· Goal LU-6: To provide for orderly, well-planned, and balanced development.
· Goal LU-4: Attract and retain companies that offer high-quality jobs with wages that are competitive with the region and state.
· Goal CH-3: Expand opportunities for local enterprise, entrepreneurship, and gainful employment.
· Policy LU-4.2: Attract employment and tax-generating businesses that support the economic diversity of the city.

The proposed use furthers the above goals and policy since it would provide for a business type that generates tax revenue for the City of Stockton’s general fund and expands opportunities for employment and entrepreneurship. 942

4. The subject site would be physically suitable for the type and density/intensity of use being proposed including the provision of services (e.g., sanitation and water), public access, and the absence of physical constraints (e.g., earth movement, flooding, etc.).

The proposed project has been analyzed by all applicable departments, and it has been determined that all existing streets and public accessways are adequate to serve the project. The site will have access to existing City utility services, which are presently available at the site. Further, a Building Permit for a tenant improvement is required for the proposed cannabis facility, and the project will be required to comply with all applicable Building Code standards.

5. The establishment, maintenance, or operation of the proposed use at the location proposed and for the time period(s) identified, if applicable, would not endanger, jeopardize, or otherwise constitute a hazard to the public convenience, health, interest, safety, peace, or general welfare of persons residing or working in the neighborhood of the proposed use. The proposed land use will require the applicant to adhere to all applicable Building and Fire Codes, and additional requirements established by the State of California, Department of Cannabis Control. The Department of Cannabis Control issues annual licenses and regulates retail storefront cannabis businesses to ensure safe practices. The applicant will also be required to obtain and maintain an Operator’s Permit from the City that requires the business owner to develop and maintain a security and lighting plan that is reviewed annually by the Police Department.

All cannabis operations for the proposed retail storefront will occur indoors, in an Industrial zone. Appropriate security provisions will be incorporated into the project operations plan, including electronic surveillance and on-site security. The site will use an activated carbon filtration system to prevent any odors from spilling outside of the facility.

6. The design, location, size, and operating characteristics of the proposed use would be compatible with the existing and future land uses on-site and in the vicinity of the subject property. The proposed cannabis retail storefront business would be located in an existing building in an industrial area adjacent to other light industrial uses, and does not raise any potential issues related to parking, as the site will have its own parking lot with ample off-street parking spaces and a private driveway off West Fremont Street. The proposed use is commercial and raises no potential issues related to compatibility with the existing and future land uses on-site and in the vicinity of the subject property.

7. The proposed action would be in compliance with the provisions of the California Environmental Quality Act (CEQA) and the City’s CEQA Guidelines. The proposed project will occupy an existing building in an industrial area. The project is categorically exempt from the CEQA, pursuant to CEQA Guidelines section 15301(a) (Existing Facilities) since 943
the project will occupy an existing building facility and no expansion of the building space is proposed.

C. Based on its review of the entire record herein, including the staff report and all supporting, referenced, and incorporated documents and all comments received, the City Council considered the request to appeal the Planning Commission’s decision and upheld the Planning Commission’s decision, denying the appeal, based on the findings indicated in this resolution and subject to the following conditions:

CONDITIONS OF APPROVAL

1. This approval authorizes the operation of cannabis retail storefront business within an existing industrial building area identified in Exhibit 1, attached and incorporated by this reference.

2. The project shall comply with all applicable State, County, and City codes, regulations, and adopted policies and standards, and pay all applicable fees.

3. In the event the operation of this use should prove to be detrimental to the health, safety, peace, or general welfare of the surrounding neighborhood, this Use Permit will be subject to revocation or modification, as required by the Development Code.

4. The Use Permit shall be posted in a conspicuous place and be made available immediately to City personnel upon inspection of the premises.

5. A sign shall be posted at the entrance to the location containing the name and functioning telephone number of a 24-hour on-call person engaged in the management of the cannabis business who shall receive, log, and respond to complaints and other inquiries. This data shall be made available upon request by the Police Department and other Community Development Departments on a yearly basis, in accordance with SMC section 5.100.250.

6. The owners, developers and/or successors-in-interest (ODS) shall be responsible for the City's legal and administrative costs associated with defending any legal challenge of the approvals for this project or its related environmental document, if any.

7. Prior to commencing operations, the business owner shall submit a complete security plan, subject to review and approval by the Police Department. The Chief of Police or designee may impose additional security and safety conditions upon receipt of the security plan before the facility can begin operations. All employees at the cannabis retail storefront business shall be approved by the Police Department prior to the start of their employment.

8. The Fire Department shall be allowed to inspect the cannabis business at any reasonable time to ensure compliance with all applicable provisions of the Fire Code, as 944
well as other applicable codes, laws, and provisions, and is authorized to enforce those standards, as necessary.

9. Prior to commencing operations, a Cannabis Operations Permit shall be obtained in accordance with SMC Chapter 5.100 (Commercial Cannabis Activity Permits).

10. All cannabis retail operations shall be limited to the hours of 7:00 a.m. to 8:00 p.m., per SMC section 5.100.280 (Retailer operator permit – Hours of operation).

11. Project applicant shall remove the asphalt pavement park-strip along West Fremont Street and replace with concrete sidewalk per current City standards and specifications.

12. Project applicant shall remove the asphalt pavement at the property frontage along Buena Vista Avenue and replace with current City standard sidewalk and vertical curb.

13. At time of Building Permit submittal, applicant shall show any easements/abandonments of record on the boundary survey. The right-of-way along West Fremont Street is variable width, and verification of any easement dedications or abandonment to/from the City shall be identified on the exhibit prior to issuance of a Building Permit.

14. The project is required to obtain a Building Permit from the Building Department for any building modifications or new building construction. Plans submitted for building permit(s) shall reflect compliance with the conditions outlined in this approval and Title 16 (Development Code) of the SMC.

15. Plans submitted for Building Permits shall include a final Landscape Plan, subject to review and approval by the Director. Landscape Construction Plans will be required with the submittal of the Building Plans, and shall meet all requirements of MWELO, including water calculations and applicable Planting and Irrigation Specifications and Details.

16. A “No Parking Zone” will be implemented by the City should there be vehicles parked near the intersection obstructing the line of sight. //
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17. The Commission Use Permit shall be valid for the duration of the use, but if the cannabis sales license is revoked by the State of California, the use permit may be subject to revocation following a public hearing.

PASSED, APPROVED, and ADOPTED: December 3, 2024 .

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

KATHERINE ROLAND, CMC, CPMC
City Clerk of the City of Stockton
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EXHIBIT 1
947

APPEAL OF PLANNING COMMISSION APPROVAL

OF A COMMISSION USE PERMIT TO ESTABLISH A

CANNABIS RETAIL STOREFRONT IN AN EXISTING
BUILDING AT 1748 WEST FREMONT STREET
(APN 135-080-01) (APPLICATION NO. P23-0049)
Agenda Item 16.3
City Council Meeting
December 3, 2024
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Appeal
• PC Approval September 12, 2024• Appealed by Shania Taylor on September 23, 2024 citing:
• Concerns of overconcentration• Proximity to existing cannabis businesses• Lack of public necessity• Project impact on surrounding neighborhoods and businesses
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Project Site
N
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General Plan and Zoning Maps
N
Zoning:

Limited Industrial (LI)
General Plan:

Industrial (I)
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Proposed Use
• Retail Storefront Cannabis Business• 25 Employees• 5,925-sq. ft. existing building • 1,564 SF of sales floor • 4,358 SF of administrative, storage, etc. • 15 Parking Spaces for guests (7 required)• 24-hour on-site security • Hours of Operation:

Storefront: Monday – Sunday, 7:00 a.m. to 8:00 p.m.
952
Neighborhood Context Map
300’ Map 600’ Map
953
Existing Cannabis Business Locations
954
Staff Analysis
• Meets all location requirements (SMC 16.80.195)
• 300 feet of an existing residential zone or use• 600’ of a school, youth facility, daycare, religious facility, etc.
• 1,000’ of an existing cannabis retailer, operator, or microbusiness
• Meets development standards for parking, site
access, etc.
• All Use Permit findings made in the affirmative
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Staff Analysis – Appeal Specific
• Concerns of overconcentration
• Meets all codified requirements designed to prevent overconcentration • Proximity to existing cannabis businesses
• Meets all codified requirements and exceeds minimum separation distances from sensitive uses and other cannabis businesses
• Lack of public necessity
• Meets General Plan goals to provide for orderly, well‐planned, and balanced development; considered a company/industry that offers high‐quality jobswith competitive wages; and expands opportunities for local enterprise,entrepreneurship, and gainful employment. • Project impact on surrounding neighborhoods and businesses • Attracts employment and generates taxes to support the local economy • Won’t endanger, jeopardize, or constitute a hazard to the public convenience, health interest, safety, or general welfare of persons residingor working in the neighborhood 956
Staff Recommendation
Adopt Resolution:• Deny the appeal and affirm the Planning Commission’s approval of a Commission Use Permit to allow theestablishment of a proposed cannabis retail storefrontbusiness within an existing building, in accordance withthe findings and subject to the conditions found in theproposed resolution. 957
City of Stockton
Legislation Text
File #: 24-1233, Version: 1

COUNCIL COMMITTEE/BOARD AND COMMISSION MINUTES

RECOMMENDATION
Information item only. No action required.

City of Stockton Page 1 of 1 Printed on 11/26/2024
powered by Legistar™
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MINUTES

CIVIL SERVICE/EQUAL EMPLOYMENT COMMISSION CONCURRENT
MEETING OF OCTOBER 17, 2024
425 N. El Dorado St. Stockton, CA

1. CLOSED SESSION CALL TO ORDER/ROLL CALL - 3:00 PM
Roll Call

Present:

Lorie Diaz-Liddicoat
Linda Vasquez
Dwight Williams
Nancy Muniz
Michele Kimbrough

2. PUBLIC COMMENT
None

3. ANNOUNCEMENT OF CLOSED SESSION

3.1 24-1037 ADMINISTRATIVE ANALYST I (OPEN/PROMOTIONAL) ELIGIBLE LIST

CERTIFICATION
Resolution 2024-10-17-0301 certifying the results of the open/promotional examination for Administrative Analyst I.

Legislation Text
Pro12osed Resolution - Exam Results -Administrative Analy.fil.l &Imroved Resolution 2024-10-17-0301

3.2 24-1034 ANIMAL SERVICES ASSISTANT I (OPEN/PROMOTIONAL) ELIGIBLE

LIST CERTIFICATION
Resolution 2024-10-17-0302 certifying the results of the open/promotional examination for Animal Services Assistant I.

Legislation Text
Pro12osed Resolution - Exam Results -Animal Services I
&12Rroved Resolution 2024-10-17-0302

3.3 24-1025 CIRCULATION ASSISTANT I (OPEN/PROMOTIONAL) ELIGIBLE LIST

CERTIFICATION
Resolution 2024-10-17-0303 certifying the results of the open/promotional examination for Circulation Assistant I (Open/Promotional). 959
J&gislation Text
J:rgposed Resolution - Exam Results - Cjrculation Assistant I Armroved Resolution 2024-10-17-0303

3.4 24-1015 FIREFIGHTER ENGINEER (PROMOTIONAL) ELIGIBLE LIST

CERTIFICATION
Resolution 2024-10-17-0304 certifying the results of the promotional examination for Firefighter Engineer.

Legislation Text
ProJlosed Resolution Exam Results- Firefighter Engineer AP.P.roved Resolution 2024-10-17-0304

3.5 24-0910 PLANT MAINTENANCE MECHANIC • ENTRY (OPEN/PROMOTIONAL)

ELIGIBLE LIST CERTIFICATION
Resolution 2024-10-17-0305 certifying the results of the open/promotional examination for PLANT MAINTENANCE MECHANIC - ENTRY (Open/Promotional).

Legislation Text
Proposed Resoluljon Exam Results Plant Maintenance Mechanic - Entry AP.P.roved Resolution 2024-10-17-0305

3.6 24-0901 POLICE CAPTAIN (PROMOTIONAL) ELIGIBLE LIST CERTIFICATION Resolution 2024-10-17-0306 certifying the results of the promotional examination for Police Captain.

Legislation Text
ProP.osed Resolution Police CaP.tain Exam Results
8m:iroved Resolution 2024-10-17-0306

3.7 24-1053 POLICE TELECOMMUNICATIONS
(OPEN/PROMOTIONAL) ELIGIBLE LIST CERTIFICATION

SUPERVISOR
Resolution 2024-10-17-0307 certifying the results of the open/promotional examination for Police Telecommunications Supervisor (Open/Promotional).

Legislation Text
ProP.osed Resolution - Exam Results - POLICE TELECOMMUNICATIONS SUPERVISOR AP.P.roved Resolution 2024-10-17-0307

3.8 24-0911 PROJECT MANAGER I (OPEN/PROMOTIONAL) ELIGIBLE LIST

CERTIFICATION
Resolution 2024-10-17-0308 certifying the results of the open/promotional 960
examination for Project Manager I (Open/Promotional).

Legislation Text
ProJlosed Resolution Exam Results Project Managfil.!
Approved Resolution 2024-10-17-0308

3.9 24-1052 POLICE OFFICER (OPEN/PROMOTIONAL) ELIGIBLE LISTS -

REMOVAL OF NAME(S)
Motion 2024-10-17-0309 certifying the removal of name(s) from the Police Officer (Open/Promotional) eligible lists.

Legislation Text

4. RECESS FROM CLOSED SESSION - 3:16 PM

5. REGULAR SESSION CALL TO ORDER/ROLL CALL - 3:17 PM

6. PLEDGE TO THE FLAG
Commissioner Williams led the Pledge of Allegiance

7. REPORT OF ACTION TAKEN IN CLOSED SESSION
Legal Counsel Tatiana Altman reported - the Commission has returned regarding action items 3.1 through and including 3.9. All commissioners were present during the entire closed session. Reportable action is as follows: Regarding 3.1 through and including 3.8 by 5-0 vote of commissioners present, commission adopted resolutions concerning the eligible lists certifications. Regarding action item 3.9 by 5-0 vote of the commissioners present approved removal of names from the eligible list.

8. CITIZENS COMMENTS/ANNOUNCEMENTS
None

9. ADOPTION OF CONSENT CALENDAR

9.1 24-1071 APPROVAL OF COMMISSION MINUTES
Legislation Text
Attachment A - 2024-09-19 Minutes
Approve Motion 2024-10-17-0901 approving the minutes from the Civil Service Commission meeting of September 19, 2024
Moved by: Nancy Muniz, seconded by Michele Kimbrough.

Vote: Motion carried 5-0
Yes: Lorie Diaz-Liddicoat, Linda Vasquez, Dwight Williams, Nancy Muniz, and 961
Michele Kimbrough.

10. UNFINISHED BUSINESS
None

11. REQUEST FOR APPEALS/PUBLIC HEARINGS
None

12. APPEALS/PUBLIC HEARINGS
None

13. NEW BUSINESS
None

14. REPORTS/WRITTEN COMMUNICATIONS/ INFORMATIONAL ITEMS

14.1 24-1057 ANNUAL EQUAL EMPLOYMENT REPORT - INFORMATION

TECHNOLOGY DEPARTMENT
Informational item only. No action taken.

Legislation Text
Attachment A - 2024 IT Annual Egual EmP.!QY.ment Re12ort

14.2 24-1059 ANNUAL EQUAL EMPLOYMENT REPORT - MUNICIPAL UTILITIES

DEPARTMENT
Informational item only. No action taken.

Legislation Text
Attachment A-Annual Egual Em12loY.ment Re12ort MUD (2024)

14.3 24-0608 NOTIFICATION OF ACTION TAKEN BY THE DIRECTOR OF HUMAN

RESOURCES TO AMEND THE CLASSIFICATION SPECIFICATION FOR TREE WORKER
Informational item only. No action taken.

Legislation Text
Attachment A- Redline - Class S12ec - Tree Worker
Attachment B - Final - Class S12ec - Tree Worker

15. BOARD/COMMISSION COMMUNICATIONS OR COMMENTS
Vice Chair Vasquez - November 11, 2024, Veterans Day Ceremony at Bob Hope Theater
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Commissioner Muniz - Pixie Woods Monster Mash Halloween Bash 2024, October 26, 202410:00AM-2:00 PM
Commissioner Williams - thanked fellow commissioners and staff Commissioner Kimbrough - agenda packet
Chair Diaz-Liddicoat - welcomed new commissioner

16. ADJOURNMENT -3:41 PM
J>-i~ THERINE LAND, CMC, CPMC
""\ ~ INTERIM STOCKTON CITY CLERK
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MINUTES

PLANNING COMMISSION
MEETING OF AUGUST 22, 2024
425 N. El Dorado St. Stockton, CA

1. CALL TO ORDER/ROLL CALL - 5:30 PM
Roll Call

Present:

Anne Mallett
Brenda Jones
Waqar Rizvi
Terry Hull
Esperanza Vielma

Absent:

Greg Thompson, and Gurneel Boparai.

Note: Vice Chair Boparai and Commissioner Thompson absence was excused

2. PLEDGE TO FLAG
The Pledge of Allegiance was led by Commissioner Jones

3. ADOPTION OF CONSENT CALENDAR
None

4. PUBLIC COMMENT
Christina Fugazi - Item 5.2, postponement
Commissioner Correspondence - Public Comment

5. PUBLIC HEARINGS/ENVIRONMENTAL ASSESSMENTS

5.1 24-0857 CONTINUED - REQUEST FOR A RECOMMENDATION OF APPROVAL

OF AN ADDENDUM TO AN APPROVED ENVIRONMENTAL IMPACT REPORT,

PREZONING, ZONING AND DEVELOPMENT AGREEMENT AMENDMENT FOR

FOUR PARCELS TO BE INCLUDED INTO THE MARIPOSA INDUSTRIAL PARK DEVELOPMENT AT 5252, 5262 AND 5276 EAST MARIPOSA ROAD (APNS 179- 220-14; -15; -25; -26) (APPLICATION NO. P24-0104)
Legislation Text
Attachment A- Location Map & Aerial Photo
Attachment B - General Plan Land Use Map
Attachment C - Zoning Ma12
Attachment D - Mariposa Industrial Park Project Area
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Pro12osed Resolution - EIR Addeneum
Exhibit 1 - EIR Addendum
Pro12osed Resolution - Prezone & Develo12ment Agreement Exhibit 1 - Pro12osed Rezone Ordinance
Exhibit 1 a - Prezone MaP- and Legal Descri12tion
Exhibit 2 - Develo12ment Agreement Amendment Ordinance
Exhibit 2a - Draft Develo12ment Agreement Amendment
PowerPoint Presentation
A1212roved Resolution 2024-08-22-0501-01
A1212roved Resolution 2024-08-22-0501-02
The following person spoke to this item: Pat Barrett
Approve Resolution 2024-08-22-0501-01 approving the Addendum to the Mariposa Industrial Park Environmental Impact Report (SCH #2020120283); and Resolution 2024-08-22-0501-02 recommending to the City Council to adopt an Ordinance for the Prezoning of APNs 179-220-14; -15; and -26 to Industrial, Limited (IL), a Zoning Request for APN 179-220-25, and an Amendment to the Development Agreement for the Mariposa Industrial Park.

Moved by: Anne Mallett, seconded by Brenda Jones.

Vote: Motion carried 4-0
Yes: Anne Mallett, Brenda Jones, Waqar Rizvi, and Terry Hull.

Abstain: Esperanza Vielma.

Absent: Greg Thompson, and Gurneel Boparai.

5.2 24-0742 ADMINISTRATIVE USE PERMIT FOR A CO-LIVING (DWELLING UNIT FACILITY) AT 512 WEST HARDING WAY (P23-0245) (APN 137-093-04) 1:§gislation Text
Attachment A- Vicinity Ma12
Attachment B - Zoning Ma12
Attachment C - General Plan Ma12
Attachment D - Public Comment
Attachment E - Facili!Y. Plan and Standard of Conduct
Progosed Resolution
Exhibit 1
PowerPoint Presentation
Approve Motion 2024-08-22-0502 to continue this item to the September 12, 2024 meeting.
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Moved by: Anne Mallett, seconded by Waqar Rizvi.

Vote: Motion carried 4-1
Yes: Anne Mallett, Brenda Jones, Waqar Rizvi, and Terry Hull.

No: Esperanza Vielma.

Absent: Greg Thompson, and Gurneel Boparai.

5.3 24-0730 REQUEST FOR A COMMISSION USE PERMIT AND LOCATION

WAIVER TO ALLOW THE ESTABLISHMENT OF A CONVENIENCE STORE WITH OFF-SALE OF BEER, WINE, AND DISTILLED SPIRITS AT 1515 EAST MAIN STREET (P23-0292) (APN 153-040-30)
RECOMMENDATION Staff recommends that the Planning Commission adopt a resolution denying a Commission Use Permit and Location Waiver to establish a Convenience Store with off-sale of beer, wine, and distilled spirits at 1515 East Main Street, based on the findings incorporated in the proposed resolution.

Legislation Text
Attachment A- Aerial P.hoto and Location mar2
Attachment 8- Site and Floor Plan
Attachment C - Calls for Service
Attachment D - ABC Records
ProP.osed Resolution
PowerPoint Presentation
The following person(s) spoke to this item: Francisco Montelongo and Pat Barrett Approve Motion 2024-08-22-0503 to continue this item to the October 10, 2024 meeting.

Moved by: Waqar Rizvi, seconded by Brenda Jones.

Vote: Motion carried 4-1
Yes: Anne Mallett, Brenda Jones, Waqar Rizvi, and Terry Hull.

No: Esperanza Vielma.

Absent: Greg Thompson, and Gurneel Boparai.

6. NEW BUSINESS
None

7. UNFINISHED BUSINESS
None

8. REPORTS/COMMUNICATIONS/INFORMATIONAL ITEMS
Mike McDowell, Deputy Director - quorum/attendance

9. COMMISSIONERS COMMENTS
975
Commissioner Jones - District 5 changes, better the community.

Commissioner Rizvi - September 12, 2024 meeting; unable to attend.

Chair Hull - thanked Council, Swenson miniature golf course.

10. ADJOURNMENT - 6:24 PM WU�
Michael McDowell
Assistant Director, Community Development
Department
976

MINUTES

PLANNING COMMISSION
MEETING OF SEPTEMBER 12, 2024
425 N. El Dorado St. Stockton, CA

1. CALL TO ORDER/ROLL CALL - 5:30 PM
Roll Call

Present:

Anne Mallett
Brenda Jones
Greg Thompson
Gurneel Boparai
Terry Hull
Esperanza Vielma

Absent:

Waqar Rizvi.

Note: Commissioner Rizvi absence was excused

2. PLEDGE TO FLAG
The Pledge of the Allegiance was led by Commissioner Vielma

3. ADOPTION OF CONSENT CALENDAR
None

4. PUBLIC COMMENT
None

5. PUBLIC HEARINGS/ENVIRONMENTAL ASSESSMENTS

5.1 24-0932 CONTINUED - ADMINISTRATIVE USE PERMIT FOR A CO-LIVING (DWELLING UNIT FACILITY) AT 512 WEST HARDING WAY (P23-0245) (APN 137-093-04)
Legislation Text
Attachment A- VicinitY. MaQ
Attachment B - Zoning MaQ
Attachment C - General Plan MaPAttachment D - Public Comment Attachment E- Facili1Y. Plan and Standard of Conduct
ProP-osed Resolution
Exhibit 1
977
PowerPoint Presentation
A1212roved Resolution 2024-09-12-0501
Commissioner Disclosures: Chair Hull
The following person(s) spoke to this item: Mollie Cox, Gilbert Kininmonth, Christina Fugazi and Martin Sisneroz
Approve Resolution 2024-09-12-0501 finding no further environmental review is necessary from the California Environmental Quality Act (CEQA) as the project is categorically exempt pursuant to CEQA Guidelines section 15301 (Existing Facilities); and approving a Use Permit for the proposed Co-living (Dwelling Unit Facility) based on findings and subject to conditions of approval herein.

Moved by: Anne Mallett, seconded by Greg Thompson.

Vote: Motion carried 5-0
Yes: Anne Mallett, Brenda Jones, Greg Thompson, Gurneel Boparai, and Esperanza Vielma.

Recuse:Terry Hull.

Absent: Waqar Rizvi.

5.2 24-0649 COMMISSION USE PERMIT TO ESTABLISH A CANNABIS RETAIL STOREFRONT IN AN EXISTING BUILDING AT 1748 WEST FREMONT STREET (APN 135-080-01) (APPLICATION NO. P23-0049)
Legislation Text
Attachment A- Location Ma12
Attachment B - General Plan Land Use Ma12
Attachment C - Zoning Ma12
Attachment D - Cannabis Lottery Win Letter
Attachment E - Projects Plans
Attachment F - AP-12roved Cannabis Business Locations
Pro12osed Resolution - Recommending A1212roval
Exhibit 1
PowerPoint Presentation
A1212roved Resolution 2024-09-12-0502
Commissioner Disclosures: None
Commissioner Corres12ondence - Brando Villai:2udua
Approve Motion 2024-09-12-0502 waiving the reading the commissioner correspondence.

Moved by: Greg Thompson, seconded by Brenda Jones.
978
Vote: Motion carried 6-0
Yes: Anne Mallett, Brenda Jones, Greg Thompson, Gurneel Boparai, Terry Hull, and Esperanza Vielma.

Absent: Waqar Rizvi.

Approve Resolution 2024-09-12-0502 finding the project categorically exempt from the CEQA, pursuant to CEQA Guidelines Section 15301 (a) (Existing Facilities), since the project will occupy an existing building and no expansion of use is proposed.

Approving Commission Use Permit to allow the establishment of a proposed cannabis retail storefront business within an existing building, in accordance with the findings and subject to the conditions found in the Proposed Resolution.

Moved by: Greg Thompson, seconded by Anne Mallett.

Vote: Motion carried 4-2
Yes: Anne Mallett, Brenda Jones, Greg Thompson, and Terry Hull.

No: Gurneel Boparai, and Esperanza Vielma.

Absent: Waqar Rizvi.

5.3 24-0849 REQUEST FOR A COMMISSION USE PERMIT AND DESIGN REV IEW

FOR THE EXPANSION OF AN EXISTING EMERGENCY FOOD BANK FACILITY AT 18 WEST SCOTTS AVENUE (P24-0055) (APN 147-130-04)
Legislation Text
Attachment A- Location MaPAttachment B - General Plan MaPAttachment C - Zoning MaPAttachment D - UP066-08 ProP-osed Resolution
Exhibit 1
PowerPoint Presentation
A1212roved Resolution 2024-09-12-0503
Commissioner Disclosures: Chair Hull and Vice Chair Boparai Approve Resolution 2024-09-12-0503 finding no further environmental review is necessary for the project pursuant to CEAQ Guidelines Section 15183 (Projects Consistent with a Community Plan, General Plan, or Zoning) of Title 14 of the California Code of Regulations and CEQA Guideline Section 15332 (In-Fill Development Projects); and
Approving Commission Use Permit and Design Review to allow an expansion to an existing emergency food bank (Social Services Facilities - Feeding Centers) at 18 West Scotts Avenue, based on the findings and subject to the conditions of approval incorporated in the proposed resolution.

Moved by: Gurneel Boparai, seconded by Terry Hull.
979
Vote: Motion carried 6-0
Yes: Anne Mallett, Brenda Jones, Greg Thompson, Gurneel Boparai, Terry Hull, and Esperanza Vielma.

Absent: Waqar Rizvi.

6. NEW BUSINESS
None

7. UNFINISHED BUSINESS
None

8. REPORTS/COMMUNICATIONS/INFORMATIONAL ITEMS
Mike McDowell, Assistant Director Community Development Department - appeals on past approved Planning Commission items; upcoming housing action plans, removal of member from Cultural Heritage Board; thanked Commissioners for attending meeting.

9. COMMISSIONERS COMMENTS
Vice Chair Boparai - thanked staff; approval of two projects; passing of assembly bill 98
Commissioner Vielma - coastal clean up, Port of Stockton Saturday September 14, 2024, 9:00 AM
Commissioner Mallet- thanked Emergency Food Bank, Thanksgiving morning turkey trot
Chair Hull - thanked Emergency Food Bank

10. ADJOURNMENT - 7:45 PM ;fi;u LR
Michael McDowell
Assistant Director, Community Development
Department
980
981
982

City Council and Concurrent AuthoritiesDecember 3, 2024

City Council and Concurrent Authorities
December 3, 2024