Agenda packet — City Council and Concurrent Authorities, January 21, 2025 (part 4 of 4)

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ATTACHMENT A 968
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of Labor Statistics of the US Department of Labor for the twelve month period ending on May 31 immediately preceding such July l date (the "Base Fee"), Such Base Fee shall be payable ln equal monthly installments due on or before the last day of each month during such Fiscal Year, and SMG shall be entitled to draw such amounts from the account described in Section 5.2, For any partial Fiscal year during the term, the Base Fee shall be prorated, except for the month(s) following the execution of this amendment and July 1, 2018. During the time between the execution of this amendment and July 1, 2018; SMG shall be paid a management fee and any incentive fee, if appropriate, based on the original agreement. There will be no additional management fee added for the operation of the Marina durlngthis time as the City will continue to be responsible for all revenues and expenses through the end of the current fiscal year, ending June 30, 2018. SMG shall invoice the City for any approved expenses incurred during the transition period, including Marina coverage staffing costs. SMG and the City will work together to transition the operation prior to July 1, 2018; with the expectation that the transition shall be completed by July 1, 2018. SMG shall assume responsibility for all Marina accounting and operational responsibillties, on July 1, 2018.

Section 4.2 "Incentive Fee" is amended as follows:
(a) In addition to the fee described in Section 4.1 above, SMG shall be entitled to an annual incentive fee ('Level 1 Incentive Fee") with respect to each Fiscal Year hereunder during the Term, beginning July 1, 2018, which fee is equal to twenty-five percent (25%) of the improvement to the Operating Net Financial Performance of the Arena, Theater, Ice Center and the Marina from the Benchmark. The Benchmark shall be set at negative Two Million Five Hundred Fifty Thousand Dollars and 00/100 ($-2,550,000) of Operating Net Performance from the Arena, Theater, Ice Center and Marina, (including the Base Fee as an expense), (Exhibit A), If a naming rights agreement is reached and implemented for any of the Facilities included in "Facilities11 as defined in the Background, the Net Revenues generated from those rights shall be included for the purposes of calculating the Annual Level I Incentive Fee.
(b) Additionally, SMG shall be entitled to an additional annual incentive fee (the Level 2 Incentive Fee") in an amount calculated as set forth below based upon the aggregate paid attendance for the Arena and Theater and the improvement of the Marina's combined Guest Dock Operating Revenue Benchmark {MGDB). If only one of the two benchmarks is achieved, then no Level 2 Incentive Fee Shall be due. The MGDB shall be set at Fifty Thousand Dollars and 00/100 ($50,000) of Operating Revenues from the Marina Guest Docks (North and South Shores}, which was determined by using the average Marina Guest Dock Operating Revenues for 2015 - 2017 Fiscal Years. In the event that Paid Attendance and Marina Guest Dock are FIRST AMENDMENT TO C-11-093 .NON PROFESSIONAL AGREEMENT WITH SMG

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ATTACHMENT A 969
achieved at varying Incentive levels, the lesser of the two shall prevail in terms of the percentage of Base fee that shall be paid. Example: If there are 315,000 in paid attendance and the Marina revenues are exceeded by 30%, SMG shall be entitled to a Level 2 Incentive Fee of 20%; the lesser of the two category thresholds.

Arena and Theater Paid Marina Guest Dock Level 2 Incentive Fee Attendance Operating Revenues
Up to 300,000
301,000 � 310,000 10% increase over 10% of Base Fee
Benchmark
310,001- 320,000 20% increase over 20% of Base Fee
Benchmark
320,001- 330,000 30% increase over 30% of Base Fee
Benchmark
330,001 - 340,000 40% increase over 40% of Base Fee
Benchmark
340,001 or Above 50% increase over 50% of Base Fee
Benchmark
Parties agree to discuss Benchmarks in the event current AHL tenant's lease is not renewed, material adverse amendments arise out of an extended lease, or an additional tenant lease is entered.
(c) Notwithstanding anything to the contrary contained herein, the Incentive Fee owed in any Fiscal Years shall not exceed seventy five percent (75%) of the Base Fee for such year. With respect to calculation of SM G's Incentive Fee for a Fiscal Year hereunder that is not a full twelve (12) months, The Benchmark, MGDB, and the above stated attendance levels shall be prorated to reflect such short Fiscal Year.

Section 5.6
follows:
"SMG Capital Contributionl' is amended to add Subsections f through I as (fl SMG will contribute an additional One Million Dollars ($1,000,000) to be used at the City's discretion within the "Facilities" as defined In the Background of this Agreement. The contribution will be disbursed as follows:

FIRST AMENOM ENT TO C-11-093 NON PROFESSIONAL AGREEMENT WITH $MG

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ATTACHMENT A 970
Five hundred thousand dollars ($500,000) will be disbursed to the City no later than sixty (60) days following the execution of the First Amendment to Agreement C-11- 093,
A Second five hundred thousand dollars ($500,000) will be disbursed to the City within sixty {60) days of the execution of the City's option to extend the term by an additional five years, to June 30, 2031.
(g) The initial contribution of five hundred Thousand Dollars ($500,000} as defined in Section 5.6 (f) will be amortized annually between the time of execution of Amendment 1 to this agreement and will be completed by June 30, 2026, Under no circumstance shall any amortization remain beyond June 30, 2026 from the initial disbursement received In 2018.
(h) If the term is extended per Section 3.1, the second contribution of five hundred Thousand Dollars ($500,000) as defined in Section 5.6 {f) will be amortized annually between the month of payment and will be completed by June 30, 2031. {i) Should the City terminate this Agreement prior to the end of the prescribed term, City shall pay SMG the unamortized balance to the nearest month following the month that the termination occurs. Said unamortized balance will be payable to SMG within ninety (90) days of the termination.

Section 8.2 is revised to include EXHIBIT E and F. Exhibit E shall refer to the Event Venues and Exhibit F shall pertain to the Marina Facility.

EXHIBIT F "Insurance Requirements for the Marina Facilities" Is attached and incorporated herein.

EXHIBITG "Map of Marina Facilities" is attached and incorporated herein.

Except as provided herein, all remaining terms, conditions and provisions of the Agreement are unchanged and unaffected by this Amendment and shall continue in full force and effect as set forth in the Original Agreement.

A copy of the Amendment shall be attached to the original Agreement dated February 24, 2011 for ease of reference.

FIRST AMENDMENT TO C-11-093 NON PROFESSIONAL AGREEMENT WITH SMG

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ATTACHMENT A 971
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed on the date first above written by their respective officers duly authorized to do so.

CITY OF STOCKTON
ATTEST:
::pJOH UEBBERKE ��

CITY ATTORNEY
SMG
A Pennsylva nla General Partnership
BY ¼ .u.J�
Mr. Harold Westley �
PRESIDENT and CEO
FIRST AMENDMENT TO C-11-093 NON PROFESSIONAL AGREEMENT WITH SMG

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ATTACHMENT A 972
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EXHIBIT A
Venues·
-Revenue
·Arena
Theater
)c!! Rink
Sub Total
Expense
Arena
. Th_eater.

Marina
Revenue
,Ice Rink
Sub Tot�I
jMarln�
·sub Total
·Expense
Marina
'Sub Total
Combi!'led (\/enues + Marina)
Revenue
Venues
Marina
.SubTotal
•Expe_nse '..

Net
Venues
Marina
Sub Total
4 Year Financials for Level I Incentive
Actual
FY2015/16
Actual
FY2016/17
Projec�_ed
fY2017/18
$ 1,1591
241 , $ 1,380,618 $ 1,505,243 , $
$ .... �9_SA43 $. •• • •• 3i1,s3.2 : $ • • 51.4,3�2 • $ $ �8!,52� : $ 390,442 : $ 421,.189 , $
$ l,S41,90S $ 2:oss:ssi : $ 2,440,754 ' $
$ 3,096,484 i $ 3,312,057 $ 3,541,0?0 $
$ 562,249 $ 56?;665 ; $ 6261
124 $
662,764 $ 657,689 $ 687,439 $
:$ 4,321,497 $ 4,537,411 $ 4,854,583 $
Proposed
FY2018/19
1,8:t7,3-5.1 .. $
644,520 $
481,�60 • �
2,972,934 $
"3,625,816 $
886,245. $
740,p76 . $
5,252,137 ; $
3yr Ave
..
1!3-4� •. 3�? t
.. �.75,�6�. $
�9.91717 t

2. ,1B,7so . $
3,316,520 $
585,346 $
Ji6912�� $
4,571,164 , $
$ (2,479,5'92) $ (2,448,819) $ (2,413,829). $ (2,279,203)' $ (2,447.4131 $ '$
$
$
$
$
$
$
$
$
•$
$
$
1,841,905 $
-
,$
1,841,905 $
4,321,497 : $
:s
4,321,497 '. $
• •
'
$ (2,479,592) $
215,295: $
215,295 '. $
452,1�3 $
452,133 $
(236,838) $
2,088,592 $
215,295 • $
2,303,887 $
4i�37,411 l $
452,133 • $
4,989,544 . . $ .
(2,685,657) $
19p,soo $
190,500 $
404,373 $
404,373 '$
(213,873) $
2,440,754 $
190,500 $
2,631,254 $
4,854,583 . $
404,373 . $
!>,258,956 $
304,061 $
.304,061; $
589,752 • $
589,752 ; $
(285,691) $
?,972,934 $
304,061
3,276,995 $
5,25.2,137 $
589,752
§,841.,889 $
236,619
236,lfr9 ••
482,�85
482,086
(245,467)
2,1_?3,750 $
$
2,.123,750 ,$
4,571,164 ; $
.$
4!
571,164 $
(2,627,702) $ (2,564,894) $ (2,447,413); $
.. '
4 Yr Ave

1.i4.73,.��4
442,879:
42oio.s:i
2,336,046
3,393,844
660,571;
686,992
. . . ..... I
4,741,407
(2,405,361)
.i
2,�36,�6,
236,619
2,�72,665
4,7�;,407
482,086
5!223,493
(2,650,828).
• For purposes of the Ave, calcufatlon, FY15/16 was not included In the Ma(1na's average as it was highly skewed due to the Sherman boat dockl�g fees that year ($40k+),
• • • • • •• • •
Rounded to nearest $1,000
:Venues 4· year Ave
. Marina 3- year Ave.

Sub Total
'**City's first $100K Benefit
Level I Benchmark
$ (2,405,000)
: $ (245,000)
; $ (2,650,000)
100,000
(2,550,000)
: •
.- 'The City shall recel11e th� first. ?l0OK �f Improvement In _It's entirety, therefor� the calculatiol"!. has bee� reduced by :$10�!000 prior to setting the een_chmark. The Intent Is that the City receive some improvement in su�sldy ($100,000); pr!o .
to SMG's eliglbijlty for Incentives.

FIRST AMENDMENT TO C-11-093 NON PROFESSIONAL AGREEMENT WITH SMG

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ATTACHMENT A 973

EXHIBIT F

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, incl1Jding products cind completed operations, property damage, bodily injury and personal & advertfsing injury with limits no less than $5,000,000 per occurrence. If a general aggregate limit applies, either the general aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice the required occurrence limit.

2. Protection and Indemnity Liability insurance, endorsed for "any auto" with combined single limits of liabi lity of not less than $5)000,000 each occurrence,. (CA 0001)

3. Workers' Compensation: as required by the State of California, with Statutor:y Limits, and Employer's Liability Insurance with limit of no less than $1;000,000 per accitjent for bodily injury or disease,

4. For work done upon navigable waters (including any adioining pier, wharf, dry dock, etc.); then Insurance shall be as required under the un·ited States Longshore and Harbors (USL&H) Workers' Compensation Act and Jones Act for the Maritime as needed.

Other lnsurahc.e Provisions
The insurance policies are to contain, or be endorsed to contain, the following provisions:
• Additiona.l Insured Status
The City of Stockton, its Mayor, Council, officers, representatives1 agents, employees and volunteers are to be covered as additional insureds on the CGL and AL policy with respect to liability arising out of work or operations performed by or on behalf of the Marina operator 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 Marina operator's insurance (at least as broad as ISO Form CG 20 10 1185 or if not available, through the addition of both CG 20 1.0 and CG 20 37 if a later edition is used). • Prfmary Coverage
For any claims related to this contract, the Marina operator's insurance coverage shall be endorsed as primary insurance as respects the City of Stockton, its Mayor, Council, officers, representatives, agents, employees and volunteers. Any insurance or selfInsurance maintained by the City of Stockton, its Mayor, Council, officers, representatives, agents, employees and volunteers shall be excess of the Marina operator's insurance and shall not contribute with It. The City of Stockton does not accept endorsements limiting the Marina operator's insurance coverage to the sole negligence of the Named Insured.

Fl�STAMENDMENT TO C-11-093 NON PROFESSIONAL AGREEMENT WITH SMG Page .8 of 11
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ATTACHMENT A 974
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• 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 Subroga_tion
Marina operator hereby grants to the City of Stockton a waiver of any right to subrogation which any insurer of said Marina operator may acquire against the City of Stockton by virtue of the payment of any loss under such insurance. Marina operator 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.
• Deductibles and Self-Insured Retentions
Any deductibles or self-insured retentions must be declared to and approved by the City of Stockton Risk Services, The City of Stockton may require the Marina operator to purchase coverage with a lower deductible or retention or provide proof of ability to pay losses and related investigations, claim administration, and defense expenses within the retention.
• Acceptability of Insurers
Insurance is to be placed with insurers with a current A.M. Best's rating of no less than A:Vll if admitted to do business in the State of Californfa; If not admitted to do business in the State of California, insurance is to be placed with insurers wlth a current A.M. Best's rating of no less than A+:X.
• Claims Made Policies
If any of the required policies provide claims-made coverage:
o The Retroactive Date must be shown, and must be before the date of the contract or the beginning of contract work.
o If Claims Made policy form is used, a three {3) year discovery and reporting tail period of coverage is required after completion of work. • Verification of Coverage
SMG shall furnish the City of Stockton with original certificates and amendatory endorsements required by this clause, Ail certificates and endorsements are to be received and approved by the Cit
y of Stockton Risk Services before work commences.

Failure to obtain the required documents prior to the work beginning shall not waive the Marina operator'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, for any reason or no reason.

FIRST AMENDMENT TO C-11-093 NON PROFESSIONAL AGREEMENT WITH SMG

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ATTACHMENT A 975
SMG shall provide the City of Stockton with a copy of its Declarations Page and Endorsement Page for each of the required policies.
• Special Risks or Circumstances
The City of Stockton reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience, Insurer, coverage, or other circumstances.
• Certificate holder address
Proper address for mailing certificates, endorsements and notices shall be:

City of Stockton
Attention: Risk Services
400 E Main Street, 3rd Floor
Stockton, CA 95202
City of Stockton Risk Services Phone: 209-937-5037
City of Stockton Risk Services Fax: 209-937-8558
• Maintenance of Insurance
If at any time during the life of the Contract or any extension, the Marina operator fails to maintain the required insurance in full force and effect, all work under the Contract shall be discontinued immediately. Any failure to maintafn the required insurance shall be sufficient cause for the CITY to terminate this Contract. • Subcontractors
If the Marina operator should subcontract all or any portion of the work to be performed in this contract, the Marina operator shall cover the sub-contractor, and/or require each sub-contractor to adhere to all subparagraphs of these Insurance Requirements section.

Simllarly, any cancellation, lapse, reduction or change of sub-contractor's insurance shall have the same impact as described above.

FIRST AMENDMENT TO C-11-093 NON PROFESSIONAL AGREEMENT WITH SMG

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ATTACHMENT A 976
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Map of Marina Facilities as noted in picture below:

FIRST AMENDMENT TO C-11-093 NON PROFESSIONAL AGREEMENT WITH SMG

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EXHIBITG
ATTACHMENT A 977
ATTACHMENT A 978
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SECOND AMENDMENT TO THE NON-PROFESSIONAL SERVICES AGREEMENT WITH SMG, a Pennsylvania general partnership
This Second Amendment to the Agreement for Non-Professional Services entered lnto 1\/\t1.,4 ::17¥ 2020, between, SMG, a Pennsylvania general partnership hereinafter called "SMG°, and the CITY OF STOCKTON, hereinafter called "CITY" also referred to as "party" or "parties" respectively.

RECITALS
The CITY and ASM (formerly SMG) entered into a Non-professional Services Agreement (hereinafter "Agreement") on February 251 2011, as amended by the First Amendment on March 26, 2018, whereby ASM would promote, operate, and manage Facllltles on behalf of the CITY. On October 1, 2019, SMG merged with AEG Facilities to make ASM Global (ASM).

The CITY and ASM wish to amend the AGREEMENT to modify the term length and compensation to the City.

NOW THEREFORE, In consideration of the foregoing and of the mutual promises, covenants, and agreements herein contained, the parties agree to the following amendments:

Section 3.1 "Management Term" is amended to include (d) as follows:
(d) If the City extended the Term under subsection (b) of thls section 3,1, then the City may, In its discretion, extend the Term hereof for an additional two-year period commencing July 1, 2031 and ending June 30, 2033 by giving written notice to SMG at least one hundred twenty (120) days prior to the end of the Management Term.

Section 4.1 "Management and Capital Investment Fees" is amended to Include the following subsection (b), and number the preceding paragraph accordlngly:
(b) Beginning ln flscal year 2019/20, the annual fixed fee In subsection (a) of this section 4.1 shall be reduced by a total of six hundred thousand dollars ($600,000), with reductions made In the following manner:

FY2020/21
FY2021/22
FY2022/23
FY2023/24.

FY2024/25
FY2025/26
one hundred thousand dollars ($1001000);
one hundred thousand dollars ($100,000);
one hundred thousand dollars ($100,000);
one hundred thousand dollars ($100,000);
one hundred thousand dollars ($100,000);
one hundred thousand dollars ($100,000).

SECOND AMENDMENT TO C-11-093 NON PROFESSIONAL AGREEMENT WITH SMG

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ATTACHMENT A 979
Sei;don 5,1 •audgeu; Funding'' (b) ls amended as follows:
(b) With respect to the Budget for the lnltlal, full Fiscal Year hereunder ending on June 30, 2012, SMG shall submit to the City for Its approval on or before March 1, 2010 a Budget that Is based upon (I) SMG's proforma budgets submitted to the City In connection with the selectlon process, adjusted accordingly for the changes. In the operating circumstances that occurred subsequent to the selection process1. and (II} the itctual Operating Re.venues and Operating Expenses for the Faclllty for July 1, 2010 through Feb 241 2011 and projected Operating Revenues al'ld Operating Expenses for February 25, 2011 throu$h June 30, 2011. A Budget for the period froni Feb 251 20U. through June 30, 2011 may be requested and approved by the City Manager. Hfectlve with the 20�1-2022 Fiscal Year, SMG shall submit a budget for review by the City on or before Febr1,1ary 1st of each year an·d Is subject to approvai by the City in accordance with this agreement.

Ther• sh.ali be a new Section S,7 "A.ddltlonal SMG Capita! C<>ntrlbutlons" to read as foll<>ws:
(a) SMG Will contribute an additional three hundred and sixty 1housand dollars ($360,000) to the "Operating Account" during Fiscal Year 2018/:19, ending June 30, 2019, The contribution may be amortized between the date of qlsbursement and the rernalnin� length of th� current term and option at section 3.1(1:>") through June 30, 2031,
(b) SMG will contribute an additional three hundred thousand dollars ($300,000) to the "Operating Accoµnt"° during Fiscal Year 2019/i0, endltig June 30i 2020. The contribution may be amortized between the date of disbursement and the remaining length of the current term and option at section �.l(b) through June 30, 2031.
(c) (c) If thls·Agreement Is terminated prior to the end of the term and option at.section 3.1(b) through.June 30, 2031, City shall pay SMG the unamortized balance to the nearest month foll owing the month that the termination oc��rs; provided, however, that, If this Agreement Is ter,r,lnated as a result of a default by SMG under this Agreement1 SMG shall n.ot be entitled to any such payment If applicable1 said unamortized bahmc� will be payable to SMG within ninety (90) days of the termination.

Accept as provided hl:lr'eln, all remaining terms, conditions and provisions of the Agreement are unchanged and unaffected by this Amendment and shall continue In full force and effect as set forth In the Original Agreement.

SECOND AMENDMENT TO C-11-093 NON PROFESSIONAL AGREEMENT WITH SMG

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ATTACHMENT A 980
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A copy of the Amendment shall be attached to the original Agreement dated February 24, 2011 for ease of reference,
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed on the date first above written by their respective officers duly authorized to do so.

CITY OF STOCKTON
All"EST;
i'.lJBY • f\ II' ELIZA GARZA
SMG
A Pennsylvania General Partnership
<;;i,1, .�·
BY ::://Uf,i�
Mr. Bob Newman
President and CEO
( CLERK OF THE CITY OF STOCKTO
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APPROVED AS TO FORM;
sv Ste 0ajt u Aw·aval rh�tMA 1-0 • �vt(o
JOHN Lueasrni<e ' • .J

CITY ATTORNEY
SECOND AMENDMENT TO C-11-093 NON PROFESSIONAL AGREEMENT WITH SMG

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ATTACHMENT A 981
DocusIgn Envelope ID: 481-1::A4D2-A7DF-4AC4-9102-83A1FA94CCEF

CITY OF STOCKTON

OFFICE OF THE CITY MANAGER
City Hall O 425 N. El Dorado Street O Stockton, CA 95202-1997 0 209 / 937-8212 0 Fax 209 / 937-7149 www.stocktongov.com
December 12, 2024
SMG
Attn: Mr. Mark Rozells, CFO
300 Conshohocken State Road, Suite 770
West Conshohocken, PA 19428

OPTION TO EXTEND MANAGEMENT AGREEMENT FOR THE OPERATION OF THE

ADVENTIST HEALTH ARENA, BANNER ISLAND BALLPARK, BOB HOPE THEATRE, OAK PARK ICE RINK, AND DOWNTOWN STOCKTON MARINA: JUNE 301 20261 THROUGH JUNE 301 2031
The City of Stockton ("City") and SM G are parties to Agreement C-11- 093 for Management Services entitled "Management Agreement between City of Stockton and SMG {the "Agreement"), as approved by City Council on January 25, 2011.

Section 3.1 (b) of the Agreement provides:
'The City may, in its discretion, extend the Term hereof for an additional five-year period commencing July 1, 2026, and ending June 30, 2031, by giving written notice to SMG at least ninety (90) days prior to the end of the Management Term." As the currentAgreement is set to expire on June 30, 2026, the City would like to exercise the five-year extension option. This letter serves as written notice of the City's intent to exercise its option to extend the contract for an additional five years beginning July 1, 2026, and ending on June 30, 2031.

The parties further agree that all terms under the original Agreement C-11-093 shall remain unchanged during the renewal period.

Stockton
.. -u, 'iH l'
19'J'J·!OI.M
?015· .?017
ATTACHMENT A 982
Oocusign l::nvelope 10: 48t-l::A40.:.:!-A7LJt--4AC..:4-910:.!-8:JA 1 t-A!:14CC.:l::tMr. Rozells December 12, 2024

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IN WITNESS THEREOF, the parties hereby agree to extend the Agreement C-11-093 from July 1, 2026, through June 30, 2031.

This Agreement may be executed in counterparts, each of which shall be deemed to be an original, but all of which, taken together, shall constitute one and the same agreement.

ATTEST:

ROLAND, crvrc, CPMC

CITY CLERK
APPROVED AS TO FORM:

LORI ASUNCION

CITY ATTORNEY
SMG

MARK ROZELLS
CFO
ATTACHMENT A 983
1 Connie Cochran
From: Michele Padilla
Sent: Tuesday, December 10, 2024 10:34 PM
To: Harry Black
Cc: Lori Asuncion; Kevin Lincoln; Connie Cochran
Subject: Request for Emails referenced in Council meeting Categories: Red Category
Dear Harry,
During tonight’s council meeting, you mentioned having emails indicating that ASM was “threatened” politically. As I stated, I was not aware of this matter. I would like to formally request copies of the emails you referenced for my review.

Additionally, I am requesting copies of any and all emails related to the ASM contract extension between you and city staff. Please include all correspondence that pertains to this matter.

Given the nature of these issues and my role, I trust you will provide this information promptly. Please let me know if there is a specific timeframe required to gather and deliver these emails.

Thank you for your attention to this matter. I look forward to your response.

Best regards,
Council Member Padilla
City of Stockton District 1
425 N. El Dorado
Stockton, CA. 95202
(O) 209-937-8279
(D) 209-565-2421
ATTACHMENT B 984
Sent to: [email protected]
December 20, 2024
Councilmember Michele Padilla
City of Stockton, District 1
Re: California Public Records Act Request dated December 10, 2024, and received December 11, 2024 (email) – ASM Contract Status
Dear Ms. Padilla,
I am writing in response to your request for public records dated December 10, 2024, and received December 11, 2024, pursuant to the Public Records Act (“Act”) (Gov. Code § 7920.000, et seq., formerly Gov. Code § 6250, et seq.) stating:
“During tonight’s council meeting, you mentioned having emails indicating that ASM was “threatened” politically. As I stated, I was not aware of this matter. I would like to formally request copies of the emails you referenced for my review.

Additionally, I am requesting copies of any and all emails related to the ASM contract extension between you and city staff. Please include all correspondence that pertains to this matter.”
Emails related to the ASM Global contract extension are attached (48 pages).

In addition, please use the following links to access news articles, interviews and social media posts referencing status of the Adventist Health Arena (Stockton):
• https://www.blackenterprise.com/jason-lee-stockton-event/ • https://stocktonia.org/news/opinion/2024/11/04/jason-lee-big-successes-unansweredquestions/ • https://www.cbsnews.com/sacramento/news/author-stockton-native-jason-lee-ready-tohit-campaign-trail-for-city-council-race/ • https://www.recordnet.com/story/news/politics/elections/local/2024/11/02/election-2024- lee-vs-warmsley-for-stockton-city-council-district-6-california-voter-ballotguide/75928938007/

OFFICE OF THE CITY MANAGER
City Hall  425 N. El Dorado Street  Stockton, CA 95202-1997  209 / 937-8212  Fax 209 / 937-7149 www.stocktonca.gov
ATTACHMENT B 985
Councilmember Padilla
December 20, 2024

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If you have any questions, please contact me at (209) 937-8827.

Sincerely,
Connie Cochran
City Manager’s Office
cc: Taryn Jones, Deputy City Attorney
ATTACHMENT B 986
1 Connie Cochran
From: Harry Black
Sent: Wednesday, December 11, 2024 11:48 AM
To: Carrie Wright
Subject: RE: follow up regarding ASM
Thank you!
Harry Black
City Manager
City of Stockton
425 N. El Dorado Street, Stockton, Ca. 95202
[email protected]
Office 209.937.8212
From: Carrie Wright <[email protected]>
Sent: Wednesday, December 11, 2024 11:23 AM
To: Harry Black <[email protected]>
Subject: follow up regarding ASM
CM Black,
I wanted to provide additional context about last night's ASM Global contract extension for operations of the City's Arena and other large venues; some key financial impacts to the City may have been missed. I also wanted to apologize as this item really should have been brought earlier in the year and the perception that it is tied to politics is unfortunate.

The Contract extension option was negotiated into the original contract, therefore, we have the option to extend or not (we don't get to renegotiate, nor would we want to given the pricing we have). The only reason not to extend is if the operator was substandard or we thought we could get a better price. Neither of which are true, in fact, I believe it would cost the City a lot more for a vendor to manage the facilities - if we could even get the ever shrinking pool of vendors to apply.

Second, the financial impacts go beyond the vendor management cost. ASM is not able to book events past their expiration date and as you know, many events are booked years in advance to secure routing. Stockton is in a tertiary market which means we have to fight for every booking and once promoters start to bypass us our revenues drop. Currently we are on an upward trajectory with bookings and revenue due to current management practices.

We need business continuity and strong forward facing confident venue sales team in order to be successful. The threat of the Arena changing management and/or operations practices, threatens ATTACHMENT B 987
2 hundreds of staff jobs and makes contract negotiations, such as with the Kings, more difficult as they perceive the Arena to be unstable.

Should Council decide they want to pursue changing operational oversight or sale of the City's Arena, there are many more obstacles besides the ASM contract that we will have to address. Either way, the City revenues will drop in the interim and the small businesses in downtown will be impacted. This is just a reality of a transition of this magnitude.

Thanks,
Carrie
The linked image cannot be displayed. The file may have been moved, renamed, or deleted. Verify that the link points to the correct file and location.

Carrie Wright, Director of Economic Development
City of Stockton - Economic Development Department
400 E. Main Street, 4th Floor, Stockton, CA 95202
[email protected] | 209.937.8694
www.advantagestockton.com
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ATTACHMENT B 988
1 Connie Cochran
From: Harry Black
Sent: Wednesday, December 11, 2024 10:42 AM
To: Jason Perry;Carrie Wright
Subject: RE: ASM contract extension
Our pleasure and thank you.

Harry Black
City Manager
City of Stockton
425 N. El Dorado Street, Stockton, Ca. 95202
[email protected]
Office 209.937.8212
From: Jason Perry <[email protected]>
Sent: Wednesday, December 11, 2024 10:08 AM
To: Harry Black <[email protected]>; Carrie Wright <[email protected]> Subject: ASM contract extension
CAUTION: This email originated from outside the City of Stockton. Do not click any links or open attachments if this is unsolicited email.

Morning Harry & Carrie,
I wanted to express my sincere thanks for helping secure the contract extension for the management of the venues and marina, securing our continued partnership into 2031.

With political uncertainty this helps create a level of security for the entire team that helps move the venues forward and the compliments by council and the mayor last night help solidify the appreciation for the work we do. We are grateful to the city leadership, council and mayor that have worked alongside us for the last four years, knowing firsthand the work we have accomplished from naming rights to the first ever seasonal activation of the Stockton Ballpark with the creation of Stockton Lantern Festival.

The securing of this extension now allows us to work on long term contract renewals with our service providers and locking in a contract with Feld Entertainment, promoter of Disney On Ice, through 2030.

Again, thank you from our entire team for your commitment to the growth of our community.

Jason
ATTACHMENT B 989
2 Jason Perry, General Manager
248 W. Fremont Street
Stockton, CA 95203

O: (209) 373-1415
E: [email protected]

For the latest on all Stockton Live happenings please visit StocktonLive.com

Pardon any grammatical errors for this email was sent via my mobile device.

CONFIDENTIALITY NOTICE:

This message contains information which may be confidential or privileged. If you are not the intended recipient, be aware that any disclosure, copying, distribution or use of the contents of this information is prohibited. If you have received this transmission in error, please notify me immediately by telephone.

ATTACHMENT B 990
1 Connie Cochran
From: Harry Black
Sent: Tuesday, December 10, 2024 1:11 PM
To: Carrie Wright;Tina McCarty
Subject: RE: Bonds
Ok, thanks.

Harry Black
City Manager
City of Stockton
425 N. El Dorado Street, Stockton, Ca. 95202
[email protected]
Office 209.937.8212
From: Carrie Wright <[email protected]>
Sent: Tuesday, December 10, 2024 1:02 PM
To: Harry Black <[email protected]>; Tina McCarty <[email protected]> Subject: Fw: Bonds
I'm stuck at supervisors meeting and haven't had a chance to dig in to this. Not sure arena could be untangled, but appear at least 40m still owed.

Sent from my T-Mobile 5G Device
Get Outlook for Android
From: Carmen Barragan <[email protected]>
Sent: Tuesday, December 10, 2024 12:11:10 PM
To: Imelda Arroyo <[email protected]>; Carrie Wright <[email protected]>; Raquel Chavarria <[email protected]>; Jay Kapoor <[email protected]> Cc: Tina McCarty <[email protected]>
Subject: RE: Bonds
Hi Everyone,
The 2004 Arena Revenue Bond is part of the 2016 SA Tax Allocation Refunding Bonds (Reso#2016-06-28-1502) which has a current balance of $ 72.7 million. At the time of the refunding the 2004 Arena Revenue Bond had a balance of $43.360 mil. I do not have a debt service schedule that is specific to the Arena’s portion. I have not been able to locate a DS schedule that has the breakdown for the cost savings for the bonds that were part of the 2016 SA Tax Allocation Refunding bonds.

Attached are the DS schedules for the 2016 A&B, 2004 Arena Revenue Bond and staff report for Reso#2016-06-28- 1502.

ATTACHMENT B 991
2 Thank you,
Carmen Barragan, Debt & Treasury Manager
City of Stockton – Administrative Services
400 E. Main Street, 3rd Floor, Stockton, CA 95202
[email protected] | 209.937.8848

ATTACHMENT B 992
1 Connie Cochran
From: Carrie Wright
Sent: Tuesday, December 10, 2024 1:02 PM
To: Harry Black;Tina McCarty
Subject: Fw: Bonds
Attachments: 2004 Arena Revenue Bond DS schedul.pdf; SA 2016 B.pdf; SA 2016 A.pdf; Legislation Text (37).pdf
I'm stuck at supervisors meeting and haven't had a chance to dig in to this. Not sure arena could be untangled, but appear at least 40m still owed.

Attached are the DS schedules for the 2016 A&B, 2004 Arena Revenue Bond and staff report for Reso#2016-06-28- 1502.

Thank you,
Carmen Barragan, Debt & Treasury Manager
City of Stockton – Administrative Services
400 E. Main Street, 3rd Floor, Stockton, CA 95202
[email protected] | 209.937.8848

ATTACHMENT B 993
2 ATTACHMENT B 994
ATTACHMENT B 995
Period
Ending Principal Coupon Interest Debt Service
Annual Debt
Service
3/1/2017 200,389.00 200,389.00
9/1/2017 4,195,000 1.375% 305,678.13 4,500,678.13 4,701,067.13 3/1/2018 276,837.50 276,837.50
9/1/2018 3,565,000 1.625% 276,837.50 3,841,837.50 4,118,675.00 3/1/2019 247,871.88 247,871.88
9/1/2019 3,625,000 1.625% 247,871.88 3,872,871.88 4,120,743.76 3/1/2020 218,418.75 218,418.75
9/1/2020 3,685,000 2.000% 218,418.75 3,903,418.75 4,121,837.50 3/1/2021 181,568.75 181,568.75
9/1/2021 3,760,000 2.125% 181,568.75 3,941,568.75 4,123,137.50 3/1/2022 141,618.75 141,618.75
9/1/2022 3,840,000 2.375% 141,618.75 3,981,618.75 4,123,237.50 3/1/2023 96,018.75 96,018.75
9/1/2023 3,925,000 2.500% 96,018.75 4,021,018.75 4,117,037.50 3/1/2024 46,956.25 46,956.25
9/1/2024 3,415,000 2.750% 46,956.25 3,461,956.25 3,508,912.50 30,010,000 2,924,648.39 32,934,648.39 32,934,648.39
**************************************************************************************************** Bond Debt Service
Successor Agency to the Redevelopment Agency of the City of Stockton Series 2016B (Taxable)
A- Rated Tax Allocation Bonds; Bond Insurance and Reserve Surety **************************************************************************************************** ATTACHMENT B 996
Period
Ending Principal Coupon Interest Debt Service
Annual Debt
Service
3/1/2017 1,105,856.66 1,105,856.66
9/1/2017 1,686,900.00 1,686,900.00 2,792,756.66
3/1/2018 1,686,900.00 1,686,900.00
9/1/2018 1,686,900.00 1,686,900.00 3,373,800.00
3/1/2019 1,686,900.00 1,686,900.00
9/1/2019 1,686,900.00 1,686,900.00 3,373,800.00
3/1/2020 1,686,900.00 1,686,900.00
9/1/2020 1,686,900.00 1,686,900.00 3,373,800.00
3/1/2021 1,686,900.00 1,686,900.00
9/1/2021 1,686,900.00 1,686,900.00 3,373,800.00
3/1/2022 1,686,900.00 1,686,900.00
9/1/2022 1,686,900.00 1,686,900.00 3,373,800.00
3/1/2023 1,686,900.00 1,686,900.00
9/1/2023 1,686,900.00 1,686,900.00 3,373,800.00
3/1/2024 1,686,900.00 1,686,900.00
9/1/2024 610,000 5.000% 1,686,900.00 2,296,900.00 3,983,800.00 3/1/2025 1,671,650.00 1,671,650.00 3,358,550.00
9/1/2025 4,150,000 5.000% 1,671,650.00 5,821,650.00 7,493,300.00 3/1/2026 1,567,900.00 1,567,900.00
9/1/2026 4,360,000 5.000% 1,567,900.00 5,927,900.00 7,495,800.00 3/1/2027 1,458,900.00 1,458,900.00
9/1/2027 4,575,000 5.000% 1,458,900.00 6,033,900.00 7,492,800.00 3/1/2028 1,344,525.00 1,344,525.00
9/1/2028 4,805,000 5.000% 1,344,525.00 6,149,525.00 7,494,050.00 3/1/2029 1,224,400.00 1,224,400.00
9/1/2029 5,045,000 5.000% 1,224,400.00 6,269,400.00 7,493,800.00 3/1/2030 1,098,275.00 1,098,275.00
9/1/2030 5,300,000 5.000% 1,098,275.00 6,398,275.00 7,496,550.00 3/1/2031 965,775.00 965,775.00
9/1/2031 5,565,000 5.000% 965,775.00 6,530,775.00 7,496,550.00 max annual 3/1/2032 826,650.00 826,650.00
9/1/2032 5,835,000 3.000% 826,650.00 6,661,650.00 7,488,300.00 3/1/2033 739,125.00 739,125.00
9/1/2033 6,015,000 5.000% 739,125.00 6,754,125.00 7,493,250.00 3/1/2034 588,750.00 588,750.00
9/1/2034 6,315,000 5.000% 588,750.00 6,903,750.00 7,492,500.00 3/1/2035 430,875.00 430,875.00
9/1/2035 6,630,000 ** 430,875.00 7,060,875.00 7,491,750.00 3/1/2036 293,125.00 293,125.00
9/1/2036 6,910,000 ** 293,125.00 7,203,125.00 7,496,250.00 3/1/2037 149,687.50 149,687.50
9/1/2037 7,195,000 ** 149,687.50 7,344,687.50 7,494,375.00 73,310,000 51,128,631.66 124,438,631.66 124,438,631.66
**************************************************************************************************** Bond Debt Service
Successor Agency to the Redevelopment Agency of the City of Stockton Series 2016A (Tax-Exempt)
A- Rated Tax Allocation Bonds; Bond Insurance and Reserve Surety **************************************************************************************************** ATTACHMENT B 997
City of Stockton
Legislation Text
File #: 16-2686, Version: 1

REFUNDING OF SUCCESSOR AGENCY TO THE FORMER REDEVELOPMENT AGENCY OF THE

CITY OF STOCKTON, CITY OF STOCKTON ENFORCEABLE OBLIGATIONS THROUGH THE ISSUANCE OF ONE OR MORE SERIES (NOT TO EXCEED $130,000,000 AGGREGATE PAR AMOUNT) OF SUCCESSOR AGENCY 2016 TAX ALLOCATION REFUNDING BONDS

RECOMMENDATION
Adopt a resolution of the Successor Agency to the former Redevelopment Agency of the City of Stockton (“Successor Agency”) authorizing the taking of all necessary actions and approving all documents in connection with the refunding of enforceable obligations currently payable from tax increment revenue of the Successor Agency, as set forth below, authorizing the issuance and sale of Successor Agency’s 2016 Tax Allocation Refunding Bonds (the 2016 “Bonds”) in one or more series not to exceed $130,000,000 (current issuance estimate of $113,085,000), including the approval of the form of an indenture of trust, escrow agreement, bond purchase contract, certain refunding agreements, the modification of adopted budgets to accommodate the refunding, and authorizing certain other actions in connection therewith.

SUMMARY
The primary goal of the refinancing is to generate significant savings. The issuance of new bonds will not move forward unless savings of at least 3.0 percent, which is a generally accepted threshold for proceeding with a refunding transaction, can be achieved. The City’s annual savings is currently estimated to average between $120,000 and $240,000 per year based upon current market conditions. The final savings amount will depend upon the rating that the new bonds receive and market conditions at the time of sale. In addition to this transaction’s significant financial benefits, the City can also completely eliminate the General Fund obligations relating to both the 2003 COPs and the 2004 Arena Bonds and can terminate the agreements entered into with Ambac and NPFG in its Chapter 9 bankruptcy.

The City of Stockton (“the City”), the former Redevelopment Agency of the City of Stockton (the “Former Agency”), and the Stockton Public Financing Authority, as applicable, issued the following bonds to eliminate blight and to promote development of low income housing stock in the City.

Approval of the above resolution authorizes refunding certain enforceable obligations of the Successor Agency relating to the following series of securities, resulting in the prepayment or redemption of such securities:
· Certificates of Participation (Redevelopment Housing Projects) 2003A (the “2003A COPs”) & Certificates of Participation (Redevelopment Housing Projects) Taxable Series 2003B (the “2003B COPs” and, collectively, the 2003 COPs): As described in an Official Statement dated June 17, 2003, the 2003 COPs were executed and delivered in the original principal amounts of $1,160,000 (2003A) and $12,140,000 (2003B). The net proceeds City of Stockton Page 1 of 6 Printed on 12/10/2024
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ATTACHMENT B 998
File #: 16-2686, Version: 1
of the 2003 COPs were used to finance the construction of capital improvements to provide affordable housing in the City. The 2003A COPs and the 2003B COPs are currently outstanding in the aggregate principal amount of $985,000 and $10,515,000, respectively.

The 2003 COPs as initially structured are payable from certain lease payments to be made by the City’s General Fund under a lease agreement. The Successor Agency is obligated under a reimbursement agreement to reimburse the City, from certain housing set-aside tax increment revenues, for such lease payments. The 2003 COPs were the subject of negotiations during the City’s bankruptcy case, and the City entered into certain agreements with Ambac in connection with the effectiveness of the City’s Plan of Adjustment. The City expects to terminate these agreements in connection with the prepayment of the 2003 COPs. · 2004 Arena Bonds and Amended and Restated Pledge Agreement:

As described in an Official Statement dated March 18, 2004, the Former Agency issued its Revenue Bonds, Series 2004 (Stockton Events Center - Arena Project) in the original aggregate principal amount of $47,000,000 (the “2004 Arena Bonds”) to finance a portion of the arena at the Stockton Events Center. The 2004 Arena Bonds are payable from certain lease payments to be made from the City’s General fund under a lease agreement, and, pursuant to a pledge agreement, the Successor Agency, as successor in interest to the Former Agency, was obligated to make certain payments, the receipt of which acted as an offset to the City’s lease payment obligations. The 2004 Arena Bonds are currently outstanding in the aggregate principal amount of $43,360,000. During the City’s bankruptcy case, the City negotiated certain agreements with NPFG, the municipal bond insurer that insures the payment of debt service on the 2004 Arena Bonds. Under these agreements NPFG and the trustee for the 2004 Arena Bonds agreed to forbear from enforcing certain remedies against the City under the bond documents and adjusted the lease repayment and pledge payment schedules. The City expects to terminate these agreements in connection with the proposed refunding of the 2004 Arena Bonds.
· 2006A (Tax-Exempt) Tax Allocation Bonds & 2006C (Taxable) Tax Allocation Bonds: As described in an Official Statement dated June 21, 2006, the Stockton Public Financing Authority issued its Revenue Bonds (Redevelopment Projects), 2006 Series A in an original aggregate par amount of $75,755,000 (the “2006A Bonds”), its Taxable Revenue Bonds (Redevelopment Projects), 2006 Series B in an original aggregate par amount of $8,445,000 (the “2006B Bonds”), and its Taxable Revenue Bonds, (Housing Projects) 2006 Series C in an original aggregate par amount of $25,985,000 (the “2006C Bonds”). Proceeds of the 2006A Bonds and the 2006B Bonds were used to finance certain redevelopment projects within or of benefit to the Merged Midtown, North Stockton and South Stockton Merged Redevelopment Projects. Proceeds of the 2006C Bonds were used to fund a loan to finance certain low and moderate-income housing projects throughout the City of Stockton. The 2006A Bonds and 2006C Bonds are outstanding in the aggregate principal amount of $49,160,000 and $22,285,000, respectively. The 2006B Bonds matured on September 1, 2013, and were paid in full.
· Collectively, the Successor Agency’s obligations relating to the 2003 COPs, the 2004 Arena Bonds and the 2006A Bonds and 2006C Bonds are, in this report, referred to as the “Prior Obligations.”
City of Stockton Page 2 of 6 Printed on 12/10/2024
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ATTACHMENT B 999
File #: 16-2686, Version: 1
· The Successor Agency assumed responsibility for all debt management with respect to the former Redevelopment Agency in 2012. Under State law (including the Fiscal Year 2012-13 State of California budget bill (Assembly Bill 1484) and California Health and Safety Code Section 34177.5(a)), the Successor Agency may refund outstanding bonds and other indebtedness of the Former Agency with approval from the Oversight Board and the California Department of Finance (“DoF”), subject to certain conditions, including that the total interest cost to maturity plus the principal amount of the refunding bonds does not exceed that of the bonds or other indebtedness to be refunded. In other words, there must be debt service savings created by the refinancing. The City and Successor Agency have commissioned a Refunding Plan and Savings Analysis be prepared by the Municipal Advisor, which is included as an attachment to this report. The Successor Agency expects to seek Oversight Board approval on June 29 and, subsequent approval from the DoF.

DISCUSSION
Background
The City of Stockton (“the City”), the former Redevelopment Agency of the City of Stockton, and the Stockton Public Financing Authority previously issued the following bonds which are now recommended to be refinanced.
· 2003A (Tax-Exempt) Certificates of Participation & 2003B (Taxable) Certificates of Participation
· 2004 Arena Bonds and Amended and Restated Pledge Agreement · 2006A (Tax-Exempt) Tax Allocation Bonds & 2006C (Taxable) Tax Allocation Present Situation
The proposed Tax Allocation Refunding Bonds, Series 2016A & 2016B (collectively, the “2016 Bonds”) will be structured as a tax-exempt and a federally taxable series, respectively. The 2016A Tax-Exempt Tax Allocation Bonds (the “2016A Bonds”), with an estimated par of $79.1 million, will refund enforceable obligations of the Successor Agency relating to the 2003A COPs, the 2004 Arena Bonds. The 2016B Taxable Tax Allocation Bonds (the “2016B Bonds”), with an estimated par of $32.1 million, will refund enforceable obligations of the Successor Agency relating to the 2003B COPs and the 2006C Bonds. The aggregate par amount of the 2016 Bonds is estimated to be approximately $111.2 million. The current estimate of the final maturity of the 2016A Bonds is September 1, 2037, which is the same final maturity as the 2006A Bonds (the 2003A COPs mature in 2033 and the 2004 Bonds mature in 2036). The 2016B Taxable Bonds are currently estimated to have an earlier final maturity, September 1, 2025, than that of the series they are refunding (the 2003B COPs and the 2006C Bonds).

The final interest rates and structure will be determined when the 2016 Bonds are priced and sold.

The current target for the pricing date is September 20, subject to market conditions. Assuming pricing on that date, the bond closing could be expected to occur on or around October 4 and the Prior Obligations could be expected to be redeemed in November 2016. Although the 2016 Bonds City of Stockton Page 3 of 6 Printed on 12/10/2024
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ATTACHMENT B 1000
File #: 16-2686, Version: 1
have not yet been rated, the 2003A COPs, 2003B COPs, the 2006A Bonds and the 2006C Bonds currently carry underlying ratings from Standard & Poor’s (“S&P”) of “B-”, “B-”, “BB” and “BBB-”, respectively. The 2004 Bonds are not currently rated by S&P. It is anticipated that the 2016 Bonds will maintain at least the same credit rating as the 2006C Bonds.

The City and the Successor Agency have directed the Municipal Advisor, Del Rio Advisors, LLC, to prepare an analysis of the potential savings that will accrue to the Successor Agency and to the applicable taxing entities as a result of the refinancing (the “Refunding Plan and Savings Analysis”) (Attachment A). That analysis demonstrates there are significant potential savings available to the Successor Agency and to the applicable taxing entities in compliance with the savings parameters as set forth by approval of the proposed resolution and the issuance of the 2016 Bonds, all as evidenced by the Refunding Plan and Savings Analysis on file with the Successor Agency.

The primary goal of the refinancing is to generate significant savings to the various participating taxing entities. The issuance of the 2016 Bonds will not move forward unless savings of at least 3.0 percent, which is a generally accepted threshold for proceeding with a refunding transaction, can be achieved. In addition to this transaction’s significant financial benefits, the City can also completely eliminate the General Fund obligations relating to both the 2003 COPs and the 2004 Arena Bonds and can terminate the agreements entered into with Ambac and NPFG in its Chapter 9 bankruptcy.

Should this resolution be approved, the approved resolution and all of the attached documents will be forwarded to the Oversight Board for approval at its June 29 meeting. If approved by the Oversight Board, the entire package will be forwarded to DoF for its review and approval. DoF has five (5) days to respond that it will review the request and an additional sixty (60) days to either approve or deny the refinancing. During the period of DoF review, the financing team will finalize the Fiscal Consultant’s Report, the Preliminary Official Statement and any other documents required for the issuance and bring these back to the Successor Agency for review Documents to be Executed
Approval of the Resolution will authorize the execution of the following documents (Attachment B):
· Indenture of Trust - This document contains the terms of the 2016 Bonds, including payment and redemption provisions, definition and pledge of revenues to pay the 2016 Bonds, Rights and Duties of the Trustee, remedies upon a default in the payment of the 2016 Bonds, and final discharge of the 2016 Bonds and other related matters. · Escrow Agreement - This document provides for the investment and application of the proceeds of the 2016 Bonds to prepay or redeem the Prior Obligations. · Refunding Agreements - These documents authorize the termination of the agreements entered into with Ambac and NPFG in connection with the City’s chapter 9 bankruptcy case. · Bond Purchase Contract - This document provides for the sale of the Bonds by the Successor Agency to the underwriter, and includes representation and warranties, and preconditions for the closing of the transaction including the delivery of various documents and legal opinions.

City of Stockton Page 4 of 6 Printed on 12/10/2024
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ATTACHMENT B 1001
File #: 16-2686, Version: 1

FINANCIAL SUMMARY
Based on market conditions as of May 5, 2016, the refinancing is estimated to result in net present value savings of approximately $16.2 million, or 13.2 percent (see table below). However, the final savings amount will depend upon the rating that the 2016 Bonds receive and market conditions at the time of sale. The estimated annual savings will become available after the payment of enforceable obligations as approved on the Recognized Obligation Payment Schedule and will be distributed among various taxing entities such as the State of California, San Joaquin County, and the City. A complete listing of the anticipated bond numbers is presented in Attachment C.

Summary of Savings Results for 2016 Bonds*
2016 Bonds
Net Present Value Savings $16.2 million
Net Present Value Savings (% of Par Value Refunded) 13.17% Avg. Annual Savings $1.2 million
Total Debt Service Savings $25.5 million
*Projected savings are based on current interest rates assuming the 2016 Bonds have a “BBB” underlying rating and overall level debt service on the bonds issued for the refinancing. These rates are subject to change based on market conditions at the time of sale.

The City’s share of the annual savings is currently estimated to average between $120,000 and $240,000 per year based upon the City’s share of property taxes (10-20 percent) within the various project areas with the remainder of the savings accruing to the other taxing agencies.

The 2016 Bonds would not be an obligation of the City, but rather the Successor Agency. Debt service on the 2016 Bonds will be supported by tax increment revenues collected by the County and deposited into the Successor Agency’s Redevelopment Property Tax Trust Fund.

Due to preparing projections and other pertinent information in the Fiscal Consultant’s Report, the fees and expenses of Fraser & Associates, acting as Fiscal Consultant, cannot be contingent on the sale of the 2016 Bonds. The fee for Fiscal Consultant is currently estimated at $30,000 and can be recovered through the costs of issuance upon successful closing and, should the refinancing not close, these costs can be recovered via allowable administrative expenses.

Fees for a bond rating are required for a review of the Successor Agency credit by Standard & Poor’s, and possibly by Fitch Ratings. Current fee estimates are $65,000 for Standard & Poor’s, and $60,000 for Fitch Ratings. A higher rating will yield a lower interest rate. Additionally, it may be economically beneficial to obtain bond insurance for the refunding bonds, which would be expected to result in a higher (insured) rating being issued for the 2016 Bonds. The rating fee will not be incurred until later in the process when the team is reasonably confident that the transaction will obtain final approvals. The fees for a bond rating can be recovered through the costs of issuance upon successful closing and, should the refinancing not close, these costs can be recovered via allowable administrative expenses.

The fees of Del Rio Advisors, LLC acting as Municipal Advisor to the City and Successor Agency are payable under an hourly contract and are currently estimated at $35,000. The fees of the Municipal City of Stockton Page 5 of 6 Printed on 12/10/2024
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ATTACHMENT B 1002
File #: 16-2686, Version: 1
Advisor can be recovered through the costs of issuance upon successful closing and, should the refinancing not close, can be recovered via allowable administrative expenses.

The remainder of the financing team will work on a contingent basis with fees payable only from a successful sale and closing of the 2016 Bonds.

Attachment A - Savings Analysis (PowerPoint presentation for DOF) Attachment B - Indenture of Trust, Bond Purchase Contract, and Refunding Escrow Agreement Attachment C - Complete Set of Bond Numbers
City of Stockton Page 6 of 6 Printed on 12/10/2024
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ATTACHMENT B 1003
1 Connie Cochran
From: Harry Black
Sent: Tuesday, December 10, 2024 12:56 PM
To: Carrie Wright
Cc: Tina McCarty
Subject: RE: arena dept
Okay and thanks!
Harry Black
City Manager
City of Stockton
425 N. El Dorado Street, Stockton, Ca. 95202
[email protected]
Office 209.937.8212
From: Carrie Wright <[email protected]>
Sent: Tuesday, December 10, 2024 11:12 AM
To: Harry Black <[email protected]>
Cc: Tina McCarty <[email protected]>
Subject: arena dept
CM,
We are still trying to piece together the bond information for the arena and how it is tied to successor agency. Raquel and Carmen with ASD are digging a bit deeper, but at the time of bankruptcy exit in 2015 we owed 44 million on the arena. Arena may be a generic term for the overall complex that includes the ball park. More to come before this evening.

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ATTACHMENT B 1004
1 Connie Cochran
From: Carrie Wright
Sent: Tuesday, December 10, 2024 11:12 AM
To: Harry Black
Cc: Tina McCarty
Subject: arena dept
CM,
We are still trying to piece together the bond information for the arena and how it is tied to successor agency. Raquel and Carmen with ASD are digging a bit deeper, but at the time of bankruptcy exit in 2015 we owed 44 million on the arena. Arena may be a generic term for the overall complex that includes the ball park. More to come before this evening.

The linked image cannot be displayed. The file may have been moved, renamed, or deleted. Verify that the link points to the correct file and location.

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ATTACHMENT B 1005
1 Connie Cochran
From: Jason Lee <[email protected]>
Sent: Monday, December 9, 2024 3:42 PM
To: Harry Black
Cc: Christina Fugazi;Lori Asuncion
Subject: Re: Request to Hold Over ASM GLOBAL Contract Item CAUTION: This email originated from outside the City of Stockton. Do not click any links or open attachments if this is unsolicited email.

Thanks for the update. If you move forward with this item tomorrow, I will have this agendized and we will discuss this at the council meeting following our swearing in.

Jason
On Mon, Dec 9, 2024 at 3:22 PM Harry Black <[email protected]> wrote:

Mr. Lee:

Again, thank you! This item is a standard contract administration/management item. As is the case with all council agenda items that emanate from the administration, they are staff recommendations to council for its consideration and action. This item is following that standard process. We can further discuss this item and the process when we meet. This item will remain on the agenda for council consideration. This will be my final email response to you on this and I will look forward to meeting with you, soon.

Thanks!

Harry Black
City Manager
City of Stockton
425 N. El Dorado Street, Stockton, Ca. 95202
[email protected]
Office 209.937.8212
ATTACHMENT B 1006
2 From: Jason Lee <[email protected]>
Sent: Monday, December 9, 2024 3:03 PM
To: Harry Black <[email protected]>
Cc: Christina Fugazi <[email protected]>; Lori Asuncion <[email protected]> Subject: Re: Request to Hold Over ASM GLOBAL Contract Item

CAUTION: This email originated from outside the City of Stockton. Do not click any links or open attachments if this is unsolicited email.

Mr. Black,

Thanks for getting back to me but your email is not a response to my inquiry. Again, please let us know why you have agendized a non expiring contract for tomorrows meeting? I am also asking that you move voluntarily remove this item from the agenda and hold it for the new council. Looking forward to a response on the matter.

Jason.

On Mon, Dec 9, 2024 at 2:58 PM Harry Black <[email protected]> wrote:

Mr. Lee:

Thank you for your email and I look forward to our upcoming introductory meeting.

Thanks!

Harry Black
ATTACHMENT B 1007
3 City Manager
City of Stockton
425 N. El Dorado Street, Stockton, Ca. 95202
[email protected]
Office 209.937.8212

From: Jason Lee <[email protected]>
Sent: Sunday, December 8, 2024 8:05 PM
To: Harry Black <[email protected]>; Lori Asuncion <[email protected]> Cc: Christina Fugazi <[email protected]>
Subject: Request to Hold Over ASM GLOBAL Contract Item

CAUTION: This email originated from outside the City of Stockton. Do not click any links or open attachments if this is unsolicited email.

Dear Mr. Black and Ms. Asuncion,
I have reviewed the upcoming council agenda for this Tuesday and noticed an item to extend a nonexpiring contract for ASM GLOBAL. I find it deeply concerning that this item has been scheduled for decision just three weeks before the new council is sworn in.

As a member of the incoming council, I strongly believe we should have the opportunity to assess this matter and determine the best course of action once the newly elected council is in place. Moving forward with this decision now, without allowing the new council to evaluate it, would not only be premature but could be perceived as unethical and potentially motivated by interests beyond those of the public.

I am requesting that this item be held over until the new council can thoroughly review and deliberate on it. I have shared my concerns with Mayor Lincoln and am copying Mayor-Elect Fugazi on this email for visibility.

Thank you in advance for considering this request. I look forward to your response.

Best regards,
Jason
ATTACHMENT B 1008
1 Connie Cochran
From: Harry Black
Sent: Monday, December 9, 2024 9:50 AM
To: Carrie Wright
Cc: Tina McCarty
Subject: FW: Request to Hold Over ASM GLOBAL Contract Item Let’s discuss after Exec Team.

Harry Black
City Manager
City of Stockton
425 N. El Dorado Street, Stockton, Ca. 95202
[email protected]
Office 209.937.8212
From: Jason Lee <[email protected]>
Sent: Sunday, December 8, 2024 8:05 PM
To: Harry Black <[email protected]>; Lori Asuncion <[email protected]> Cc: Christina Fugazi <[email protected]>
Subject: Request to Hold Over ASM GLOBAL Contract Item
CAUTION: This email originated from outside the City of Stockton. Do not click any links or open attachments if this is unsolicited email.

Thank you in advance for considering this request. I look forward to your response.

ATTACHMENT B 1009
2 Best regards,
Jason
ATTACHMENT B 1010
1 Connie Cochran
From: Jason Lee <[email protected]>
Sent: Sunday, December 8, 2024 8:05 PM
To: Harry Black;Lori Asuncion
Cc: Christina Fugazi
Subject: Request to Hold Over ASM GLOBAL Contract Item
CAUTION: This email originated from outside the City of Stockton. Do not click any links or open attachments if this is unsolicited email.

Thank you in advance for considering this request. I look forward to your response.

Best regards,
Jason
ATTACHMENT B 1011
1 Connie Cochran
From: Jason Perry <[email protected]>
Sent: Tuesday, October 8, 2024 1:44 PM
To: Carrie Wright
Subject: RE: Contract Extension
CAUTION: This email originated from outside the City of Stockton. Do not click any links or open attachments if this is unsolicited email.

I would love to schedule time with you!
Jason Perry
General Manager, ASM Stockton
209.373.1415 | StocktonLive.com | [email protected] Delayed Response Due Work Travel Through October 9.

CONFIDENTIALITY NOTICE:

From: Carrie Wright <[email protected]>
Sent: Tuesday, October 8, 2024 1:38 PM
To: Jason Perry <[email protected]>
Subject: Re: Contract Extension
Our success has been largely due specifically to you. Can we talk about what your plans are for the next five years? Should we schedule some time?
Carrie Wright, Director of Economic Development
City of Stockton - Economic Development Department
400 E. Main Street, 4th Floor, Stockton, CA 95202
[email protected] | 209.937.8694
www.advantagestockton.com

ATTACHMENT B 1012
2 From: Jason Perry <[email protected]>
Sent: Sunday, September 29, 2024 9:29 AM
To: Carrie Wright <[email protected]>
Subject: Contract Extension

CAUTION: This email originated from outside the City of Stockton. Do not click any links or open attachments if this is unsolicited email.

Here you go. Hope you are having a great weekend.

Jason

Jason Perry
General Manager, ASM Stockton
209.373.1415 | StocktonLive.com | [email protected] Delayed Response Due Work Travel Through October 9.

CONFIDENTIALITY NOTICE:

ATTACHMENT B 1013
1 Connie Cochran
From: Jason Perry <[email protected]>
Sent: Monday, October 7, 2024 5:16 PM
To: Tina McCarty
Cc: Dave Jolette;Jose Jimenez;Jess Olivares;John Zukoski Subject: Re: Promoter Ticket Advance - Approval Request CAUTION: This email originated from outside the City of Stockton. Do not click any links or open attachments if this is unsolicited email.

Thanks Tina, appreciate and understand. I’ll work with LiveCo on this.

Jason Perry, General Manager
248 W. Fremont Street
Stockton, CA 95203

O: (209) 373-1415
E: [email protected]

For the latest on all Stockton Live happenings please visit StocktonLive.com

Pardon any grammatical errors for this email was sent via my mobile device.

CONFIDENTIALITY NOTICE:

On Oct 7, 2024, at 6:29 PM, Tina McCarty <[email protected]> wrote:

Jason and Dave,
I have looked through our exiting contract between the City and ASM and don't think I can give approval for the release of a percentage of the ticket proceeds prior to the event. 5.2, page 19 of the original agreement, specifically states that the "...ticket sale monies are to be held for the protection of the ticket purchasers...Following the satisfactory completion of the Event, SMG shall make a deposit to the appropriate operating account..." I think that to support this request, we would either need to amend the existing contract or enter an agreement with the Promoter directly, which is probably the best protection for the City. To clarify- it's not that it is a concern to have ASM in the middle, it's that the agreement between ASM and the City ATTACHMENT B 1014
2 pretty much leaves the liability for expenses on the Operating budget (IE the City). I would not consider entering an agreement where we let some of the ticketing money go prior to the event, without some insurances, which are not included in our current agreement. So, if LiveCo has a standard agreement for this type of arrangement and wants to send it, I'll take a look.

Thank you!
Tina
"We don't make progress if we don't dream out loud! ~ Tina <OutlookLogo
Desc.png>
Tina McCarty, Managing Director of Events and Parking
City of Stockton, Economic Development Department
425 N. El Dorado Street, Stockton, CA 95202
[email protected] | 209.937.8907
www.stocktonca.gov | www.advantagestockton.com

From: Jason Perry <[email protected]>
Sent: Sunday, October 6, 2024 7:19 AM
To: Dave Jolette <[email protected]>; Tina McCarty <[email protected]> Cc: Jose Jimenez <[email protected]>; Jess Olivares <[email protected]>; John Zukoski <[email protected]>
Subject: RE: Promoter Ticket Advance - Approval Request

CAUTION: This email originated from outside the City of Stockton. Do not click any links or open attachments if this is unsolicited email.

Good morning, Tina,

I ran into the SVP for LiveCo, owner of the agency that brings us a few arena and theatre shows a year, including Jo Koy next weekend. They followed up with me on this about Jo Koy, time has passed, but about the program in general.

They advised a situation happened with Fluffy, he cancelled four shows in December and within days all funds were sent to the venue via ACH, well before the refund process began. They also said if the apprehension is with ASM having the agreement and not the City, the would be willing to write the same agreement directly with the City and ASM for Stockton.

Jason
ATTACHMENT B 1015
3 Jason Perry
General Manager, ASM Stockton
209.373.1415 | StocktonLive.com | [email protected] Delayed Response Due Work Travel Through October 9.

CONFIDENTIALITY NOTICE:

From: Dave Jolette <[email protected]>
Sent: Thursday, August 29, 2024 9:39 AM
To: Jason Perry <[email protected]>; Tina McCarty <[email protected]> Cc: Jose Jimenez <[email protected]>; Jess Olivares <[email protected]>; John Zukoski <[email protected]>
Subject: RE: Promoter Ticket Advance - Approval Request

Hi Tina, sorry for the delay in responding.

Will give you my input on this for a decision to be made locally.

Yes, in the end, the contractual risk sits at the venue level across the country, with ASM National relationship and partnership with these 3 companies one pillar of content growth efforts. ASM and these 3 companies, as you know, have executed contractual terms regarding driving content to venues, defined advance fund calculations, and the repayment of funds should any event cancel, that ASM would put all legal efforts forth to enforce at a National level to protect every venue associated with this relationship.

ASM has established a promoter advance agreement with these 3 major promoters due to their control of a large share of entertainment content in the US and the strength of their company and economic balance sheets. This relationship is based on national contractually obligated terms to drive content to ASM venues and establish a limited flow of ticket funds to these promoters for cash flow to continually be booking more shows.

In addition, as venues continue to add content with each promoter, having multiple shows on sale within a venue will provide additional leverage within the venue as multiple show funds are in the control of the venue.

In the end, venues can choose to participate or not in this relationship, however, we feel it helps drive content and we have mitigated the risk with the limitation to major promoters and clear contractual terms.

From: Jason Perry <[email protected]>
Sent: Thursday, August 22, 2024 10:10 AM
To: Tina McCarty <[email protected]>
Cc: Jose Jimenez <[email protected]>; Jess Olivares <[email protected]>; John Zukoski <[email protected]>; Dave Jolette <[email protected]> Subject: RE: Promoter Ticket Advance - Approval Request

Tina,
ATTACHMENT B 1016
4 Great seeing you yesterday and I hope you had a nice flight this morning to SoCal.

We were able to cover so many topics of which promoter advance was one of them. I have added Dave Jolette to this email for you had requested to know what assurance ASM Global can provide the City so that the City knows should funds not be returned to the ASM Stockton accounts within the 3 business days of a show cancellation that the City will not be the responsible financial party for fulfilling the ticket refunds but that ASM would ensure they are the responsible party.

As promised I wanted to let you know what promoter’s rollup into each of the three promoters for we work with many of the subsidiaries of the big three.

LiveCo
 We do a few shows a year with each of
o Rush Concerts
o Icon Concerts
o Premier Productions
o Transparent Productions
 MagicSpace Entertainment
 BASE Entertainment
 LiveCo Country, Peachetree Entertainment/PTP Country, Rock The Country

Live Nation
 We do a few shows a year with each of
o Live Nation Entertainment –
o Live Nation Comedy
 C3 Presents
 Frank Productions
 Red Mountain Entertainment
 Insonmiac Holding
 Rolling Loud

AEG
 We do a few shows a year with each of
o AEG Presents
o GOldenvoice
 Madison House Presents
 Marshall Arts
 Messina Touring Group
 Bowery Presents

Jason

<image001.png> Jason Perry
General Manager, ASM Stockton
209.373.1415 | StocktonLive.com | [email protected] CONFIDENTIALITY NOTICE:

ATTACHMENT B 1017
5 From: Jason Perry
Sent: Monday, August 19, 2024 11:55 AM
To: Tina McCarty <[email protected]>
Cc: Jose Jimenez <[email protected]>; Jess Olivares <[email protected]>; John Zukoski <[email protected]>
Subject: Promoter Ticket Advance - Approval Request

Tina,

Great connected two weeks ago to talk the future funding of the Marina and what that looks like plus a few other items from capital to surplus to risk mitigation (event) fund to promoter advance. We had an amazing week at the leadership summit with Stockton being front and center, people can’t say they never heard of Stockton before as it was loud and clear how proud ASM is of turn around that has happened here. Let’s continue to ride the wave of success!

Promoter Ticket Advance
 What promoters does ASM have a national advance deal with? o AEG
o Live Nation
o LiveCo
 What does this mean?
o Each promoter has agreed to route more tours to all the ASM venues that participate.
o Advance ticket funds, one time advance per show based on the following:
 ACH of calculated ticket advance of the first 30 days of ticket on sale  Calculation is funds received in first 30 days less all anticipated expenses, plus rent to calculate 50% of the net ticket revenue.
 Advance sent 5 days after 30th day of on sale
 Max ASM Global advance of 2.5M at any given time across our entire network.
o Show cancellation – what happens
 If a show is cancelled, each promoter must return all advanced funds within 5 business days maximum
 Ticketmaster refunds happen within 30 days within notification of show cancellation – industry standard.
o All show advances are deducted from revenues to promoter at settlement.

For a real example, Jo Koy is one of many shows we have with LiveCo, and should you approve Stockto participate in the promoter ticket advance program ASM has created we would only be advancing $51,354.01.

With the above, are you okay for us to participate in these programs with AEG, Live Nation and LiveCo?

Jason

<image001.png> Jason Perry
General Manager, ASM Stockton
209.373.1415 | StocktonLive.com | [email protected] ATTACHMENT B 1018
6 CONFIDENTIALITY NOTICE:

Notice: This email may contain confidential and/or proprietary information and is intended only for the use of the Individual(s) or entity(ies) named above. Any unauthorized use, dissemination, or copying of this email is strictly prohibited if you are not the intended recipient of this email. If you have received this email in error, notify the sender by replying to this message and delete the email from your system. When responding to this communication, remember that it could be lost in transit and viewed by a party other than the addressee.

ATTACHMENT B 1019
1 Connie Cochran
From: Jason Perry <[email protected]>
Sent: Sunday, September 29, 2024 9:30 AM
To: Carrie Wright
Subject: Contract Extension
Attachments: ASM Contract Extension - 5 year.docx
CAUTION: This email originated from outside the City of Stockton. Do not click any links or open attachments if this is unsolicited email.

Here you go. Hope you are having a great weekend.

Jason
Jason Perry
General Manager, ASM Stockton
209.373.1415 | StocktonLive.com | [email protected] Delayed Response Due Work Travel Through October 9.

CONFIDENTIALITY NOTICE:

ATTACHMENT B 1020
P: (209) 373 1400
W: Stocktonlive.com
ASM Stockton
248 W. Fremont St.

Stockton, CA 95203
 Current contract runs through June 30, 2026
o Upon contract expiration the 5-year, $100,000 annual management reduction will expire as per Amendment 1
o Termination prior to June 30, 2026, City will need to pay ASM the unamortized balance to the nearest moth following the month of termination.  Amendment 1, section 5.6 extension opted in
o ASM to provide an additional $500,000 in capital to the venues within 60 days of extension.
o Termination prior to June 30, 2031, City will need to pay ASM the unamortized balance to the nearest moth following the month of termination.

Benefits to extending at this time:
 Current leadership and elected know the positive impact ASM has had on the venues post COVID
 Provides current ASM management team at venues with stability and certainty.  Capital investment ideas
o Dressing room enhancements to make better experiences for artists and promoters as they are all about the back of house experience in venues o Upgrades to food and beverage which will increase revenues o Enhancements to the club making it a better space for premium experiences both at large evens and private functions
o Upgrades to the suites as they remain unchanged
o Purchase of additional Open Gates (magnetometers) for use at Bob Hope Theatre and the ballpark for when there are show overlaps at the venues

ATTACHMENT B 1021
1 Connie Cochran
From: Jason Perry <[email protected]>
Sent: Tuesday, August 13, 2024 9:40 AM
To: Tina McCarty
Subject: RE: Management Agreement - Extension Option
CAUTION: This email originated from outside the City of Stockton. Do not click any links or open attachments if this is unsolicited email.

Sounds like plan
Jason Perry
General Manager, ASM Stockton
209.373.1415 | StocktonLive.com | [email protected] Delayed Response Due Leadership Summit through August 16.

CONFIDENTIALITY NOTICE:

From: Tina McCarty <[email protected]>
Sent: Tuesday, August 13, 2024 9:39 AM
To: Jason Perry <[email protected]>
Subject: Re: Management Agreement - Extension Option
Do you want to do lunch? I can pick you up or vice versa around 11:30? Tina
"We don't make progress if we don't dream out loud! ~ Tina Tina McCarty, Managing Director of Events and Parking
City of Stockton, Economic Development Department
425 N. El Dorado Street, Stockton, CA 95202
[email protected] | 209.937.8907
ATTACHMENT B 1022
2 www.stocktonca.gov | www.advantagestockton.com

From: Jason Perry <[email protected]>
Sent: Tuesday, August 13, 2024 9:36 AM
To: Tina McCarty <[email protected]>
Subject: RE: Management Agreement - Extension Option

CAUTION: This email originated from outside the City of Stockton. Do not click any links or open attachments if this is unsolicited email.

Oops not Jess he leaves here and goes right to vacation…the life of an AGM – third vacation this year LOL

Jason Perry
General Manager, ASM Stockton
209.373.1415 | StocktonLive.com | [email protected] Delayed Response Due Leadership Summit through August 16.

CONFIDENTIALITY NOTICE:

From: Tina McCarty <[email protected]>
Sent: Tuesday, August 13, 2024 9:35 AM
To: Jason Perry <[email protected]>; Carrie Wright <[email protected]> Subject: Re: Management Agreement - Extension Option

Wednesday the 21st is my best day... otherwise we may have to look at the next week... I doubt Carrie's schedule will allow so let's start the discussion and I will keep her informed.

Tina
"We don't make progress if we don't dream out loud! ~ Tina Tina McCarty, Managing Director of Events and Parking
City of Stockton, Economic Development Department
425 N. El Dorado Street, Stockton, CA 95202
[email protected] | 209.937.8907
ATTACHMENT B 1023
3 www.stocktonca.gov | www.advantagestockton.com

From: Jason Perry <[email protected]>
Sent: Tuesday, August 13, 2024 9:14 AM
To: Tina McCarty <[email protected]>; Carrie Wright <[email protected]> Subject: RE: Management Agreement - Extension Option

CAUTION: This email originated from outside the City of Stockton. Do not click any links or open attachments if this is unsolicited email.

I knew you would say hello so I said she preemptively told me to say hello to you after he said hi.

I did invite him to Stockton for when he returns to Napa next year for the national culinary competition that Savor participates in, this year we advance again to worlds with two chefs which is amazing.

Let me know when you want to meet, I am back next week.

Jason Perry
General Manager, ASM Stockton
209.373.1415 | StocktonLive.com | [email protected] Delayed Response Due Leadership Summit through August 16.

CONFIDENTIALITY NOTICE:

From: Tina McCarty <[email protected]>
Sent: Tuesday, August 13, 2024 9:13 AM
To: Jason Perry <[email protected]>; Carrie Wright <[email protected]> Subject: Re: Management Agreement - Extension Option

Yes. Let's discuss upon your return.

Give Shaun my return hello and ask him when he's coming to Stockton to visit...it's been too long! Tina
"We don't make progress if we don't dream out loud! ~ Tina ATTACHMENT B 1024
4 Tina McCarty, Managing Director of Events and Parking City of Stockton, Economic Development Department
425 N. El Dorado Street, Stockton, CA 95202
[email protected] | 209.937.8907
www.stocktonca.gov | www.advantagestockton.com

From: Jason Perry <[email protected]>
Sent: Tuesday, August 13, 2024 8:50 AM
To: Tina McCarty <[email protected]>; Carrie Wright <[email protected]> Subject: RE: Management Agreement - Extension Option

CAUTION: This email originated from outside the City of Stockton. Do not click any links or open attachments if this is unsolicited email.

Good morning from Long Beach!

Down here with the entire executive team as we kick off the Savor…Be Bold global conference followed by the ASM Global Leadership Summit to run the rest of the week. All that reminded me to follow up on this email. Lets talk about this and what it could mean for the venues!

Tina – Shaun Beard said hello!

Jason

Jason Perry
General Manager, ASM Stockton
209.373.1415 | StocktonLive.com | [email protected] Delayed Response Due Leadership Summit through August 16.

CONFIDENTIALITY NOTICE:

From: Jason Perry
Sent: Friday, July 12, 2024 10:04 AM
To: Tina McCarty <[email protected]>; Carrie Wright <[email protected]> Subject: Management Agreement - Extension Option

Tina/Carrie,

ATTACHMENT B 1025
5 I know that July 2026 seems like a lifetime away but when we think about it we will be deep into FY26 budget in four short months. That said I want to start the conversation about the additional 5-year extension option through June 2031, also ok with me to talk about two-year extension option as well; locking ASM in through 2033. The upside here is that when we execution this extension there is that capital investment due by ASM which would be great for us to use to upgrade the F&B components for the patrons as this will also result in a solid ROI.

Perhaps a secondary topic for our talk in August about Marina funding?

Jason

Jason Perry
General Manager, ASM Stockton
209.373.1415 | StocktonLive.com | [email protected] CONFIDENTIALITY NOTICE:

ATTACHMENT B 1026
1 Connie Cochran
From: Jason Perry <[email protected]>
Sent: Friday, July 12, 2024 10:04 AM
To: Tina McCarty;Carrie Wright
Subject: Management Agreement - Extension Option
CAUTION: This email originated from outside the City of Stockton. Do not click any links or open attachments if this is unsolicited email.

Tina/Carrie,
I know that July 2026 seems like a lifetime away but when we think about it we will be deep into FY26 budget in four short months. That said I want to start the conversation about the additional 5-year extension option through June 2031, also ok with me to talk about two-year extension option as well; locking ASM in through 2033. The upside here is that when we execution this extension there is that capital investment due by ASM which would be great for us to use to upgrade the F&B components for the patrons as this will also result in a solid ROI.

Perhaps a secondary topic for our talk in August about Marina funding? Jason
Jason Perry
General Manager, ASM Stockton
209.373.1415 | StocktonLive.com | [email protected] CONFIDENTIALITY NOTICE:

ATTACHMENT B 1027
1 Connie Cochran
From: Harry Black
Sent: Sunday, December 8, 2024 8:10 PM
To: Kevin Lincoln
Subject: Fw: Request to Hold Over ASM GLOBAL Contract Item Sent from my Verizon, Samsung Galaxy smartphone
Get Outlook for Android
From: Jason Lee <[email protected]>
Sent: Sunday, December 8, 2024 8:05:27 PM
To: Harry Black <[email protected]>; Lori Asuncion <[email protected]> Cc: Christina Fugazi <[email protected]>
Subject: Request to Hold Over ASM GLOBAL Contract Item

CAUTION: This email originated from outside the City of Stockton. Do not click any links or open attachments if this is unsolicited email.

Thank you in advance for considering this request. I look forward to your response.

Best regards,
Jason
ATTACHMENT B 1028
1 Connie Cochran
From: Jason Lee <[email protected]>
Sent: Monday, December 9, 2024 3:42 PM
To: Harry Black
Cc: Christina Fugazi;Lori Asuncion
Subject: Re: Request to Hold Over ASM GLOBAL Contract Item CAUTION: This email originated from outside the City of Stockton. Do not click any links or open attachments if this is unsolicited email.

Thanks for the update. If you move forward with this item tomorrow, I will have this agendized and we will discuss this at the council meeting following our swearing in.

Jason
On Mon, Dec 9, 2024 at 3:22 PM Harry Black <[email protected]> wrote:

Mr. Lee:

Thanks!

Harry Black
City Manager
City of Stockton
425 N. El Dorado Street, Stockton, Ca. 95202
[email protected]
Office 209.937.8212
ATTACHMENT B 1029
2 From: Jason Lee <[email protected]>
Sent: Monday, December 9, 2024 3:03 PM
To: Harry Black <[email protected]>
Cc: Christina Fugazi <[email protected]>; Lori Asuncion <[email protected]> Subject: Re: Request to Hold Over ASM GLOBAL Contract Item

CAUTION: This email originated from outside the City of Stockton. Do not click any links or open attachments if this is unsolicited email.

Mr. Black,

Jason.

On Mon, Dec 9, 2024 at 2:58 PM Harry Black <[email protected]> wrote:

Mr. Lee:

Thank you for your email and I look forward to our upcoming introductory meeting.

Thanks!

Harry Black
ATTACHMENT B 1030
3 City Manager
City of Stockton
425 N. El Dorado Street, Stockton, Ca. 95202
[email protected]
Office 209.937.8212

CAUTION: This email originated from outside the City of Stockton. Do not click any links or open attachments if this is unsolicited email.

Thank you in advance for considering this request. I look forward to your response.

Best regards,
Jason
ATTACHMENT B 1031
1 Connie Cochran
From: Harry Black
Sent: Monday, December 9, 2024 3:23 PM
To: Jason Lee
Cc: Christina Fugazi;Lori Asuncion
Subject: RE: Request to Hold Over ASM GLOBAL Contract Item Mr. Lee:

Thanks!
Harry Black
City Manager
City of Stockton
425 N. El Dorado Street, Stockton, Ca. 95202
[email protected]
Office 209.937.8212
From: Jason Lee <[email protected]>
Sent: Monday, December 9, 2024 3:03 PM
To: Harry Black <[email protected]>
Cc: Christina Fugazi <[email protected]>; Lori Asuncion <[email protected]> Subject: Re: Request to Hold Over ASM GLOBAL Contract Item CAUTION: This email originated from outside the City of Stockton. Do not click any links or open attachments if this is unsolicited email.

Mr. Black,
Thanks for getting back to me but your email is not a response to my inquiry. Again, please let us know why you have agendized a non expiring contract for tomorrows meeting? I am also asking that you move voluntarily remove this item from the agenda and hold it for the new council. Looking forward to a response on the matter.

Jason.

On Mon, Dec 9, 2024 at 2:58 PM Harry Black <[email protected]> wrote:

ATTACHMENT B 1032
2 Mr. Lee:

Thank you for your email and I look forward to our upcoming introductory meeting.

Thanks!

Harry Black
City Manager
City of Stockton
425 N. El Dorado Street, Stockton, Ca. 95202
[email protected]
Office 209.937.8212

CAUTION: This email originated from outside the City of Stockton. Do not click any links or open attachments if this is unsolicited email.

As a member of the incoming council, I strongly believe we should have the opportunity to assess this matter and determine the best course of action once the newly elected council is in place. Moving forward with this decision now, without allowing the new council to evaluate it, would not only be ATTACHMENT B 1033
3 premature but could be perceived as unethical and potentially motivated by interests beyond those of the public.

Thank you in advance for considering this request. I look forward to your response.

Best regards,
Jason
ATTACHMENT B 1034
12 December 2024
Stockton City Hall
425 N. El Dorado Street
Stockton, CA 95202
RE: California Public Records Act Request
To whom it may concern,
Pursuant to my rights under the California Public Records Act (Government Code Section 6250 et seq.), I ask to obtain a copy of the following:

1.) Electronic communications, including e-mails, sent by Motecuzoma Sanchez, Frank Gayaldo, and representatives of 209 Times to Harry Black, Kevin Lincoln, Kimberly Warmsley, Dan Wright, Michael Blower, Brando Villapudua, Michele Padilla, and all city of Stockton employees between November 6, 2024 to December 12, 2024, as well as their responses.

I ask for a determination on this request within 10 days of your receipt of it, and an even prompter reply if you can make that determination without having to review the record[s] in question.

If I can provide any clarification that will help you meet and expedite my request, please contact me at (209) 888-7466. If the information we seek can be provided electronically and can be e-mailed, please send it to [email protected].

Sincerely,
Hannah Workman
News Reporter
ATTACHMENT B 1035
The Stockton Record
ATTACHMENT B 1036
Sent to: [email protected]
December 23, 2024
Hannah Workman
News Reporter
The Stockton Record
Re: California Public Records Act Request dated December 12, 2024 – ASM Global and Adventist Health Arena Communications
Dear Mr. Workman,
I am writing in response to your request for public records dated December 12, 2024, pursuant to the Public Records Act (“Act”) (Gov. Code § 7920.000, et seq., formerly Gov. Code § 6250, et seq.) stating:
“1.) Electronic communications, including e-mails, related to “ASM Global” and “Adventist Health Arena” sent by or received by representatives of ASM Global, Harry Black, Kevin Lincoln, Kimberly Warmsley, Dan Wright, Michael Blower, Brando Villapudua, Michele Padilla, Christina Fugazi, and Jason Lee between July 1, 2024 to December 12, 2024.” Please see responsive documents attached (59 pages).

If you have any questions, please contact me at (209) 937-8827.

Sincerely,
Connie Cochran
City Manager’s Office
cc: Taryn Jones, Deputy City Attorney

OFFICE OF THE CITY MANAGER
City Hall  425 N. El Dorado Street  Stockton, CA 95202-1997  209 / 937-8212  Fax 209 / 937-7149 www.stocktonca.gov
ATTACHMENT B 1037
1 Connie Cochran
From: Motec <[email protected]>
Sent: Thursday, December 12, 2024 2:54 PM
To: Harry Black
Cc: Connie Cochran; Kevin Lincoln; Michele Padilla; PublicCorruption; Civilgrandjury; Newstips; News; Newstips; Frank Gayaldo; 209 Times; [email protected]; [email protected]; [email protected]
Subject: Alleged Threats to ASM
Categories: Red Category
CAUTION: This email originated from outside the City of Stockton. Do not click any links or open attachments if this is unsolicited email.

Harry,
Working on a story. During the city council meeting on Tuesday you made a bombastic claim on the record that the reason the city council (your boss) couldn’t wait two weeks to consider extending the contract for ASM Global was because they had been “threatened.” You said those threats were on social media and in an email and that you shared alleged threats with the city council. That statement was proven to be a lie because city councilwoman Michele Padilla and Mayor Kevin Lincoln publicly clarified that no such information was shared with them by you. You even went so far to publicly accuse Padilla of being aware already, something she plainly denied while you offered no such evidence. This of course is not the first time you’ve publicly disrespected women in positions of authority though is it? But I digress.

Back to the matter at hand. You also used scare tactics and made unsubstantiated, wild claims that if the contract wasn’t extended for 5 years, 2 years prior to expiring, that “all business would shut down” and the city would be liable to multiple lawsuits from artists.

What “threats” are you referring to to justify pushing for a contract extension with ASM before the new city council is sworn in?
Why do you have a constant problem with disrespecting women in power, especially Mexican women (which even former SPD chief Jones attested to in an investigation into you when you shoulda been fired years ago)?
What artists would sue Stockton and why would business shut down with an already existing contract still in place?
Why do you constantly lie like you did to a grand jury stating that “the city couldn’t function” because 209 Times asks you question of public concern and holds you and your soon to be gone city council enablers accountable (minus the Leftovers)?
Per the California Public Records Act provide the following:
1) All threats on email and social media that you referred to were made towards ASM, and falsely claimed to have provided to all council members.
2) All communications between you and ASM Global for the period of January 1, 2024 to December 12, 2024.
3) The names of all city council members you provided copies of referenced threats towards ASM Global to.

ATTACHMENT B 1038
2 4) All communications between you and Michael Blower, Brando Villapudua, Kimberly Warmsley, Dan Wright, and Susan Lenz regarding ASM Global for the period of November 5, 2024 to December 12, 2024. 5) All communication between you and Tina McCarty regarding ASM Global for the period of January 1, 2024 to December 12, 2024.

Thanks for your prompt attention to this matter. It should not take you longer than the legally required 10 days to provide all documents, which less than the amount of time the mayor and councilwoman asked you to wait to consider the contact extension you so passionately pushed for as if you have a personal vested interest in to be “strategic” with.

Sincerely,
Your pal Motec
P.S. Are you getting any kickbacks from ASM
Global? Also I went ahead and included the civil grand jury again so they know what you’re lying and crying about usual.

ATTACHMENT B 1039
1 Connie Cochran
From: Harry Black
Sent: Wednesday, December 11, 2024 11:48 AM
To: Carrie Wright
Subject: RE: follow up regarding ASM
Thank you!
Harry Black
City Manager
City of Stockton
425 N. El Dorado Street, Stockton, Ca. 95202
[email protected]
Office 209.937.8212
From: Carrie Wright <[email protected]>
Sent: Wednesday, December 11, 2024 11:23 AM
To: Harry Black <[email protected]>
Subject: follow up regarding ASM
CM Black,
I wanted to provide additional context about last night's ASM Global contract extension for operations of the City's Arena and other large venues; some key financial impacts to the City may have been missed. I also wanted to apologize as this item really should have been brought earlier in the year and the perception that it is tied to politics is unfortunate.

We need business continuity and strong forward facing confident venue sales team in order to be successful. The threat of the Arena changing management and/or operations practices, threatens ATTACHMENT B 1040
2 hundreds of staff jobs and makes contract negotiations, such as with the Kings, more difficult as they perceive the Arena to be unstable.

Thanks,
Carrie
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ATTACHMENT B 1041
1 Connie Cochran
From: Harry Black
Sent: Wednesday, December 11, 2024 10:42 AM
To: Jason Perry;Carrie Wright
Subject: RE: ASM contract extension
Our pleasure and thank you.

Morning Harry & Carrie,
I wanted to express my sincere thanks for helping secure the contract extension for the management of the venues and marina, securing our continued partnership into 2031.

Again, thank you from our entire team for your commitment to the growth of our community.

Jason
ATTACHMENT B 1042
2 Jason Perry, General Manager
248 W. Fremont Street
Stockton, CA 95203

O: (209) 373-1415
E: [email protected]

For the latest on all Stockton Live happenings please visit StocktonLive.com

Pardon any grammatical errors for this email was sent via my mobile device.

CONFIDENTIALITY NOTICE:

ATTACHMENT B 1043
1 Connie Cochran
From: Harry Black
Sent: Tuesday, December 10, 2024 1:11 PM
To: Carrie Wright;Tina McCarty
Subject: RE: Bonds
Ok, thanks.

Attached are the DS schedules for the 2016 A&B, 2004 Arena Revenue Bond and staff report for Reso#2016-06-28- 1502.

ATTACHMENT B 1044
2 Thank you,
Carmen Barragan, Debt & Treasury Manager
City of Stockton – Administrative Services
400 E. Main Street, 3rd Floor, Stockton, CA 95202
[email protected] | 209.937.8848

ATTACHMENT B 1045
1 Connie Cochran
From: Carrie Wright
Sent: Tuesday, December 10, 2024 1:02 PM
To: Harry Black;Tina McCarty
Subject: Fw: Bonds
Attachments: 2004 Arena Revenue Bond DS schedul.pdf; SA 2016 B.pdf; SA 2016 A.pdf; Legislation Text (37).pdf
I'm stuck at supervisors meeting and haven't had a chance to dig in to this. Not sure arena could be untangled, but appear at least 40m still owed.

Attached are the DS schedules for the 2016 A&B, 2004 Arena Revenue Bond and staff report for Reso#2016-06-28- 1502.

Thank you,
Carmen Barragan, Debt & Treasury Manager
City of Stockton – Administrative Services
400 E. Main Street, 3rd Floor, Stockton, CA 95202
[email protected] | 209.937.8848

ATTACHMENT B 1046
2 ATTACHMENT B 1047
ATTACHMENT B 1048
Period
Ending Principal Coupon Interest Debt Service
Annual Debt
Service
3/1/2017 200,389.00 200,389.00
9/1/2017 4,195,000 1.375% 305,678.13 4,500,678.13 4,701,067.13 3/1/2018 276,837.50 276,837.50
9/1/2018 3,565,000 1.625% 276,837.50 3,841,837.50 4,118,675.00 3/1/2019 247,871.88 247,871.88
9/1/2019 3,625,000 1.625% 247,871.88 3,872,871.88 4,120,743.76 3/1/2020 218,418.75 218,418.75
9/1/2020 3,685,000 2.000% 218,418.75 3,903,418.75 4,121,837.50 3/1/2021 181,568.75 181,568.75
9/1/2021 3,760,000 2.125% 181,568.75 3,941,568.75 4,123,137.50 3/1/2022 141,618.75 141,618.75
9/1/2022 3,840,000 2.375% 141,618.75 3,981,618.75 4,123,237.50 3/1/2023 96,018.75 96,018.75
9/1/2023 3,925,000 2.500% 96,018.75 4,021,018.75 4,117,037.50 3/1/2024 46,956.25 46,956.25
9/1/2024 3,415,000 2.750% 46,956.25 3,461,956.25 3,508,912.50 30,010,000 2,924,648.39 32,934,648.39 32,934,648.39
**************************************************************************************************** Bond Debt Service
Successor Agency to the Redevelopment Agency of the City of Stockton Series 2016B (Taxable)
A- Rated Tax Allocation Bonds; Bond Insurance and Reserve Surety **************************************************************************************************** ATTACHMENT B 1049
Period
Ending Principal Coupon Interest Debt Service
Annual Debt
Service
3/1/2017 1,105,856.66 1,105,856.66
9/1/2017 1,686,900.00 1,686,900.00 2,792,756.66
3/1/2018 1,686,900.00 1,686,900.00
9/1/2018 1,686,900.00 1,686,900.00 3,373,800.00
3/1/2019 1,686,900.00 1,686,900.00
9/1/2019 1,686,900.00 1,686,900.00 3,373,800.00
3/1/2020 1,686,900.00 1,686,900.00
9/1/2020 1,686,900.00 1,686,900.00 3,373,800.00
3/1/2021 1,686,900.00 1,686,900.00
9/1/2021 1,686,900.00 1,686,900.00 3,373,800.00
3/1/2022 1,686,900.00 1,686,900.00
9/1/2022 1,686,900.00 1,686,900.00 3,373,800.00
3/1/2023 1,686,900.00 1,686,900.00
9/1/2023 1,686,900.00 1,686,900.00 3,373,800.00
3/1/2024 1,686,900.00 1,686,900.00
9/1/2024 610,000 5.000% 1,686,900.00 2,296,900.00 3,983,800.00 3/1/2025 1,671,650.00 1,671,650.00 3,358,550.00
9/1/2025 4,150,000 5.000% 1,671,650.00 5,821,650.00 7,493,300.00 3/1/2026 1,567,900.00 1,567,900.00
9/1/2026 4,360,000 5.000% 1,567,900.00 5,927,900.00 7,495,800.00 3/1/2027 1,458,900.00 1,458,900.00
9/1/2027 4,575,000 5.000% 1,458,900.00 6,033,900.00 7,492,800.00 3/1/2028 1,344,525.00 1,344,525.00
9/1/2028 4,805,000 5.000% 1,344,525.00 6,149,525.00 7,494,050.00 3/1/2029 1,224,400.00 1,224,400.00
9/1/2029 5,045,000 5.000% 1,224,400.00 6,269,400.00 7,493,800.00 3/1/2030 1,098,275.00 1,098,275.00
9/1/2030 5,300,000 5.000% 1,098,275.00 6,398,275.00 7,496,550.00 3/1/2031 965,775.00 965,775.00
9/1/2031 5,565,000 5.000% 965,775.00 6,530,775.00 7,496,550.00 max annual 3/1/2032 826,650.00 826,650.00
9/1/2032 5,835,000 3.000% 826,650.00 6,661,650.00 7,488,300.00 3/1/2033 739,125.00 739,125.00
9/1/2033 6,015,000 5.000% 739,125.00 6,754,125.00 7,493,250.00 3/1/2034 588,750.00 588,750.00
9/1/2034 6,315,000 5.000% 588,750.00 6,903,750.00 7,492,500.00 3/1/2035 430,875.00 430,875.00
9/1/2035 6,630,000 ** 430,875.00 7,060,875.00 7,491,750.00 3/1/2036 293,125.00 293,125.00
9/1/2036 6,910,000 ** 293,125.00 7,203,125.00 7,496,250.00 3/1/2037 149,687.50 149,687.50
9/1/2037 7,195,000 ** 149,687.50 7,344,687.50 7,494,375.00 73,310,000 51,128,631.66 124,438,631.66 124,438,631.66
**************************************************************************************************** Bond Debt Service
Successor Agency to the Redevelopment Agency of the City of Stockton Series 2016A (Tax-Exempt)
A- Rated Tax Allocation Bonds; Bond Insurance and Reserve Surety **************************************************************************************************** ATTACHMENT B 1050
City of Stockton
Legislation Text
File #: 16-2686, Version: 1

REFUNDING OF SUCCESSOR AGENCY TO THE FORMER REDEVELOPMENT AGENCY OF THE

Approval of the above resolution authorizes refunding certain enforceable obligations of the Successor Agency relating to the following series of securities, resulting in the prepayment or redemption of such securities:
· Certificates of Participation (Redevelopment Housing Projects) 2003A (the “2003A COPs”) & Certificates of Participation (Redevelopment Housing Projects) Taxable Series 2003B (the “2003B COPs” and, collectively, the 2003 COPs): As described in an Official Statement dated June 17, 2003, the 2003 COPs were executed and delivered in the original principal amounts of $1,160,000 (2003A) and $12,140,000 (2003B). The net proceeds City of Stockton Page 1 of 6 Printed on 12/10/2024
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ATTACHMENT B 1051
File #: 16-2686, Version: 1
of the 2003 COPs were used to finance the construction of capital improvements to provide affordable housing in the City. The 2003A COPs and the 2003B COPs are currently outstanding in the aggregate principal amount of $985,000 and $10,515,000, respectively.

As described in an Official Statement dated March 18, 2004, the Former Agency issued its Revenue Bonds, Series 2004 (Stockton Events Center - Arena Project) in the original aggregate principal amount of $47,000,000 (the “2004 Arena Bonds”) to finance a portion of the arena at the Stockton Events Center. The 2004 Arena Bonds are payable from certain lease payments to be made from the City’s General fund under a lease agreement, and, pursuant to a pledge agreement, the Successor Agency, as successor in interest to the Former Agency, was obligated to make certain payments, the receipt of which acted as an offset to the City’s lease payment obligations. The 2004 Arena Bonds are currently outstanding in the aggregate principal amount of $43,360,000. During the City’s bankruptcy case, the City negotiated certain agreements with NPFG, the municipal bond insurer that insures the payment of debt service on the 2004 Arena Bonds. Under these agreements NPFG and the trustee for the 2004 Arena Bonds agreed to forbear from enforcing certain remedies against the City under the bond documents and adjusted the lease repayment and pledge payment schedules. The City expects to terminate these agreements in connection with the proposed refunding of the 2004 Arena Bonds.
· 2006A (Tax-Exempt) Tax Allocation Bonds & 2006C (Taxable) Tax Allocation Bonds: As described in an Official Statement dated June 21, 2006, the Stockton Public Financing Authority issued its Revenue Bonds (Redevelopment Projects), 2006 Series A in an original aggregate par amount of $75,755,000 (the “2006A Bonds”), its Taxable Revenue Bonds (Redevelopment Projects), 2006 Series B in an original aggregate par amount of $8,445,000 (the “2006B Bonds”), and its Taxable Revenue Bonds, (Housing Projects) 2006 Series C in an original aggregate par amount of $25,985,000 (the “2006C Bonds”). Proceeds of the 2006A Bonds and the 2006B Bonds were used to finance certain redevelopment projects within or of benefit to the Merged Midtown, North Stockton and South Stockton Merged Redevelopment Projects. Proceeds of the 2006C Bonds were used to fund a loan to finance certain low and moderate-income housing projects throughout the City of Stockton. The 2006A Bonds and 2006C Bonds are outstanding in the aggregate principal amount of $49,160,000 and $22,285,000, respectively. The 2006B Bonds matured on September 1, 2013, and were paid in full.
· Collectively, the Successor Agency’s obligations relating to the 2003 COPs, the 2004 Arena Bonds and the 2006A Bonds and 2006C Bonds are, in this report, referred to as the “Prior Obligations.”
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ATTACHMENT B 1052
File #: 16-2686, Version: 1
· The Successor Agency assumed responsibility for all debt management with respect to the former Redevelopment Agency in 2012. Under State law (including the Fiscal Year 2012-13 State of California budget bill (Assembly Bill 1484) and California Health and Safety Code Section 34177.5(a)), the Successor Agency may refund outstanding bonds and other indebtedness of the Former Agency with approval from the Oversight Board and the California Department of Finance (“DoF”), subject to certain conditions, including that the total interest cost to maturity plus the principal amount of the refunding bonds does not exceed that of the bonds or other indebtedness to be refunded. In other words, there must be debt service savings created by the refinancing. The City and Successor Agency have commissioned a Refunding Plan and Savings Analysis be prepared by the Municipal Advisor, which is included as an attachment to this report. The Successor Agency expects to seek Oversight Board approval on June 29 and, subsequent approval from the DoF.

The final interest rates and structure will be determined when the 2016 Bonds are priced and sold.

The current target for the pricing date is September 20, subject to market conditions. Assuming pricing on that date, the bond closing could be expected to occur on or around October 4 and the Prior Obligations could be expected to be redeemed in November 2016. Although the 2016 Bonds City of Stockton Page 3 of 6 Printed on 12/10/2024
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ATTACHMENT B 1053
File #: 16-2686, Version: 1
have not yet been rated, the 2003A COPs, 2003B COPs, the 2006A Bonds and the 2006C Bonds currently carry underlying ratings from Standard & Poor’s (“S&P”) of “B-”, “B-”, “BB” and “BBB-”, respectively. The 2004 Bonds are not currently rated by S&P. It is anticipated that the 2016 Bonds will maintain at least the same credit rating as the 2006C Bonds.

City of Stockton Page 4 of 6 Printed on 12/10/2024
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ATTACHMENT B 1054
File #: 16-2686, Version: 1

The fees of Del Rio Advisors, LLC acting as Municipal Advisor to the City and Successor Agency are payable under an hourly contract and are currently estimated at $35,000. The fees of the Municipal City of Stockton Page 5 of 6 Printed on 12/10/2024
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ATTACHMENT B 1055
File #: 16-2686, Version: 1
Advisor can be recovered through the costs of issuance upon successful closing and, should the refinancing not close, can be recovered via allowable administrative expenses.

The remainder of the financing team will work on a contingent basis with fees payable only from a successful sale and closing of the 2016 Bonds.

Attachment A - Savings Analysis (PowerPoint presentation for DOF) Attachment B - Indenture of Trust, Bond Purchase Contract, and Refunding Escrow Agreement Attachment C - Complete Set of Bond Numbers
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ATTACHMENT B 1056
1 Connie Cochran
From: Harry Black
Sent: Tuesday, December 10, 2024 12:56 PM
To: Carrie Wright
Cc: Tina McCarty
Subject: RE: arena dept
Okay and thanks!
Harry Black
City Manager
City of Stockton
425 N. El Dorado Street, Stockton, Ca. 95202
[email protected]
Office 209.937.8212
From: Carrie Wright <[email protected]>
Sent: Tuesday, December 10, 2024 11:12 AM
To: Harry Black <[email protected]>
Cc: Tina McCarty <[email protected]>
Subject: arena dept
CM,
We are still trying to piece together the bond information for the arena and how it is tied to successor agency. Raquel and Carmen with ASD are digging a bit deeper, but at the time of bankruptcy exit in 2015 we owed 44 million on the arena. Arena may be a generic term for the overall complex that includes the ball park. More to come before this evening.

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ATTACHMENT B 1057
1 Connie Cochran
From: Carrie Wright
Sent: Tuesday, December 10, 2024 11:12 AM
To: Harry Black
Cc: Tina McCarty
Subject: arena dept
CM,
We are still trying to piece together the bond information for the arena and how it is tied to successor agency. Raquel and Carmen with ASD are digging a bit deeper, but at the time of bankruptcy exit in 2015 we owed 44 million on the arena. Arena may be a generic term for the overall complex that includes the ball park. More to come before this evening.

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ATTACHMENT B 1058
1 Connie Cochran
From: Jason Lee <[email protected]>
Sent: Monday, December 9, 2024 3:42 PM
To: Harry Black
Cc: Christina Fugazi;Lori Asuncion
Subject: Re: Request to Hold Over ASM GLOBAL Contract Item CAUTION: This email originated from outside the City of Stockton. Do not click any links or open attachments if this is unsolicited email.

Thanks for the update. If you move forward with this item tomorrow, I will have this agendized and we will discuss this at the council meeting following our swearing in.

Jason
On Mon, Dec 9, 2024 at 3:22 PM Harry Black <[email protected]> wrote:

Mr. Lee:

Thanks!

Harry Black
City Manager
City of Stockton
425 N. El Dorado Street, Stockton, Ca. 95202
[email protected]
Office 209.937.8212
ATTACHMENT B 1059
2 From: Jason Lee <[email protected]>
Sent: Monday, December 9, 2024 3:03 PM
To: Harry Black <[email protected]>
Cc: Christina Fugazi <[email protected]>; Lori Asuncion <[email protected]> Subject: Re: Request to Hold Over ASM GLOBAL Contract Item

CAUTION: This email originated from outside the City of Stockton. Do not click any links or open attachments if this is unsolicited email.

Mr. Black,

Jason.

On Mon, Dec 9, 2024 at 2:58 PM Harry Black <[email protected]> wrote:

Mr. Lee:

Thank you for your email and I look forward to our upcoming introductory meeting.

Thanks!

Harry Black
ATTACHMENT B 1060
3 City Manager
City of Stockton
425 N. El Dorado Street, Stockton, Ca. 95202
[email protected]
Office 209.937.8212

CAUTION: This email originated from outside the City of Stockton. Do not click any links or open attachments if this is unsolicited email.

Thank you in advance for considering this request. I look forward to your response.

Best regards,
Jason
ATTACHMENT B 1061
1 Connie Cochran
From: Harry Black
Sent: Monday, December 9, 2024 9:50 AM
To: Carrie Wright
Cc: Tina McCarty
Subject: FW: Request to Hold Over ASM GLOBAL Contract Item Let’s discuss after Exec Team.

Thank you in advance for considering this request. I look forward to your response.

ATTACHMENT B 1062
2 Best regards,
Jason
ATTACHMENT B 1063
1 Connie Cochran
From: Jason Lee <[email protected]>
Sent: Sunday, December 8, 2024 8:05 PM
To: Harry Black;Lori Asuncion
Cc: Christina Fugazi
Subject: Request to Hold Over ASM GLOBAL Contract Item
CAUTION: This email originated from outside the City of Stockton. Do not click any links or open attachments if this is unsolicited email.

Thank you in advance for considering this request. I look forward to your response.

Best regards,
Jason
ATTACHMENT B 1064
1 Connie Cochran
From: Jason Perry <[email protected]>
Sent: Tuesday, October 8, 2024 1:44 PM
To: Carrie Wright
Subject: RE: Contract Extension
CAUTION: This email originated from outside the City of Stockton. Do not click any links or open attachments if this is unsolicited email.

I would love to schedule time with you!
Jason Perry
General Manager, ASM Stockton
209.373.1415 | StocktonLive.com | [email protected] Delayed Response Due Work Travel Through October 9.

CONFIDENTIALITY NOTICE:

ATTACHMENT B 1065
2 From: Jason Perry <[email protected]>
Sent: Sunday, September 29, 2024 9:29 AM
To: Carrie Wright <[email protected]>
Subject: Contract Extension

CAUTION: This email originated from outside the City of Stockton. Do not click any links or open attachments if this is unsolicited email.

Here you go. Hope you are having a great weekend.

Jason

Jason Perry
General Manager, ASM Stockton
209.373.1415 | StocktonLive.com | [email protected] Delayed Response Due Work Travel Through October 9.

CONFIDENTIALITY NOTICE:

ATTACHMENT B 1066
1 Connie Cochran
From: Jason Perry <[email protected]>
Sent: Monday, October 7, 2024 5:16 PM
To: Tina McCarty
Cc: Dave Jolette;Jose Jimenez;Jess Olivares;John Zukoski Subject: Re: Promoter Ticket Advance - Approval Request CAUTION: This email originated from outside the City of Stockton. Do not click any links or open attachments if this is unsolicited email.

Thanks Tina, appreciate and understand. I’ll work with LiveCo on this.

Jason Perry, General Manager
248 W. Fremont Street
Stockton, CA 95203

O: (209) 373-1415
E: [email protected]

For the latest on all Stockton Live happenings please visit StocktonLive.com

Pardon any grammatical errors for this email was sent via my mobile device.

CONFIDENTIALITY NOTICE:

On Oct 7, 2024, at 6:29 PM, Tina McCarty <[email protected]> wrote:

Jason and Dave,
I have looked through our exiting contract between the City and ASM and don't think I can give approval for the release of a percentage of the ticket proceeds prior to the event. 5.2, page 19 of the original agreement, specifically states that the "...ticket sale monies are to be held for the protection of the ticket purchasers...Following the satisfactory completion of the Event, SMG shall make a deposit to the appropriate operating account..." I think that to support this request, we would either need to amend the existing contract or enter an agreement with the Promoter directly, which is probably the best protection for the City. To clarify- it's not that it is a concern to have ASM in the middle, it's that the agreement between ASM and the City ATTACHMENT B 1067
2 pretty much leaves the liability for expenses on the Operating budget (IE the City). I would not consider entering an agreement where we let some of the ticketing money go prior to the event, without some insurances, which are not included in our current agreement. So, if LiveCo has a standard agreement for this type of arrangement and wants to send it, I'll take a look.

CAUTION: This email originated from outside the City of Stockton. Do not click any links or open attachments if this is unsolicited email.

Good morning, Tina,

Jason
ATTACHMENT B 1068
3 Jason Perry
General Manager, ASM Stockton
209.373.1415 | StocktonLive.com | [email protected] Delayed Response Due Work Travel Through October 9.

CONFIDENTIALITY NOTICE:

Hi Tina, sorry for the delay in responding.

Will give you my input on this for a decision to be made locally.

Tina,
ATTACHMENT B 1069
4 Great seeing you yesterday and I hope you had a nice flight this morning to SoCal.

As promised I wanted to let you know what promoter’s rollup into each of the three promoters for we work with many of the subsidiaries of the big three.

AEG
 We do a few shows a year with each of
o AEG Presents
o GOldenvoice
 Madison House Presents
 Marshall Arts
 Messina Touring Group
 Bowery Presents

Jason

<image001.png> Jason Perry
General Manager, ASM Stockton
209.373.1415 | StocktonLive.com | [email protected] CONFIDENTIALITY NOTICE:

ATTACHMENT B 1070
5 From: Jason Perry
Sent: Monday, August 19, 2024 11:55 AM
To: Tina McCarty <[email protected]>
Cc: Jose Jimenez <[email protected]>; Jess Olivares <[email protected]>; John Zukoski <[email protected]>
Subject: Promoter Ticket Advance - Approval Request

Tina,

With the above, are you okay for us to participate in these programs with AEG, Live Nation and LiveCo?

Jason

<image001.png> Jason Perry
General Manager, ASM Stockton
209.373.1415 | StocktonLive.com | [email protected] ATTACHMENT B 1071
6 CONFIDENTIALITY NOTICE:

ATTACHMENT B 1072
1 Connie Cochran
From: Jason Perry <[email protected]>
Sent: Sunday, September 29, 2024 9:30 AM
To: Carrie Wright
Subject: Contract Extension
Attachments: ASM Contract Extension - 5 year.docx
CAUTION: This email originated from outside the City of Stockton. Do not click any links or open attachments if this is unsolicited email.

Here you go. Hope you are having a great weekend.

Jason
Jason Perry
General Manager, ASM Stockton
209.373.1415 | StocktonLive.com | [email protected] Delayed Response Due Work Travel Through October 9.

CONFIDENTIALITY NOTICE:

ATTACHMENT B 1073
P: (209) 373 1400
W: Stocktonlive.com
ASM Stockton
248 W. Fremont St.

ATTACHMENT B 1074
1 Connie Cochran
From: Jason Perry <[email protected]>
Sent: Tuesday, August 13, 2024 9:40 AM
To: Tina McCarty
Subject: RE: Management Agreement - Extension Option
CAUTION: This email originated from outside the City of Stockton. Do not click any links or open attachments if this is unsolicited email.

Sounds like plan
Jason Perry
General Manager, ASM Stockton
209.373.1415 | StocktonLive.com | [email protected] Delayed Response Due Leadership Summit through August 16.

CONFIDENTIALITY NOTICE:

From: Tina McCarty <[email protected]>
Sent: Tuesday, August 13, 2024 9:39 AM
To: Jason Perry <[email protected]>
Subject: Re: Management Agreement - Extension Option
Do you want to do lunch? I can pick you up or vice versa around 11:30? Tina
"We don't make progress if we don't dream out loud! ~ Tina Tina McCarty, Managing Director of Events and Parking
City of Stockton, Economic Development Department
425 N. El Dorado Street, Stockton, CA 95202
[email protected] | 209.937.8907
ATTACHMENT B 1075
2 www.stocktonca.gov | www.advantagestockton.com

From: Jason Perry <[email protected]>
Sent: Tuesday, August 13, 2024 9:36 AM
To: Tina McCarty <[email protected]>
Subject: RE: Management Agreement - Extension Option

CAUTION: This email originated from outside the City of Stockton. Do not click any links or open attachments if this is unsolicited email.

Oops not Jess he leaves here and goes right to vacation…the life of an AGM – third vacation this year LOL

Jason Perry
General Manager, ASM Stockton
209.373.1415 | StocktonLive.com | [email protected] Delayed Response Due Leadership Summit through August 16.

CONFIDENTIALITY NOTICE:

Wednesday the 21st is my best day... otherwise we may have to look at the next week... I doubt Carrie's schedule will allow so let's start the discussion and I will keep her informed.

Tina
"We don't make progress if we don't dream out loud! ~ Tina Tina McCarty, Managing Director of Events and Parking
City of Stockton, Economic Development Department
425 N. El Dorado Street, Stockton, CA 95202
[email protected] | 209.937.8907
ATTACHMENT B 1076
3 www.stocktonca.gov | www.advantagestockton.com

CAUTION: This email originated from outside the City of Stockton. Do not click any links or open attachments if this is unsolicited email.

I knew you would say hello so I said she preemptively told me to say hello to you after he said hi.

Let me know when you want to meet, I am back next week.

Jason Perry
General Manager, ASM Stockton
209.373.1415 | StocktonLive.com | [email protected] Delayed Response Due Leadership Summit through August 16.

CONFIDENTIALITY NOTICE:

Yes. Let's discuss upon your return.

Give Shaun my return hello and ask him when he's coming to Stockton to visit...it's been too long! Tina
"We don't make progress if we don't dream out loud! ~ Tina ATTACHMENT B 1077
4 Tina McCarty, Managing Director of Events and Parking City of Stockton, Economic Development Department
425 N. El Dorado Street, Stockton, CA 95202
[email protected] | 209.937.8907
www.stocktonca.gov | www.advantagestockton.com

CAUTION: This email originated from outside the City of Stockton. Do not click any links or open attachments if this is unsolicited email.

Good morning from Long Beach!

Tina – Shaun Beard said hello!

Jason

Jason Perry
General Manager, ASM Stockton
209.373.1415 | StocktonLive.com | [email protected] Delayed Response Due Leadership Summit through August 16.

CONFIDENTIALITY NOTICE:

From: Jason Perry
Sent: Friday, July 12, 2024 10:04 AM
To: Tina McCarty <[email protected]>; Carrie Wright <[email protected]> Subject: Management Agreement - Extension Option

Tina/Carrie,

ATTACHMENT B 1078
5 I know that July 2026 seems like a lifetime away but when we think about it we will be deep into FY26 budget in four short months. That said I want to start the conversation about the additional 5-year extension option through June 2031, also ok with me to talk about two-year extension option as well; locking ASM in through 2033. The upside here is that when we execution this extension there is that capital investment due by ASM which would be great for us to use to upgrade the F&B components for the patrons as this will also result in a solid ROI.

Perhaps a secondary topic for our talk in August about Marina funding?

Jason

Jason Perry
General Manager, ASM Stockton
209.373.1415 | StocktonLive.com | [email protected] CONFIDENTIALITY NOTICE:

ATTACHMENT B 1079
1 Connie Cochran
From: Jason Perry <[email protected]>
Sent: Friday, July 12, 2024 10:04 AM
To: Tina McCarty;Carrie Wright
Subject: Management Agreement - Extension Option
CAUTION: This email originated from outside the City of Stockton. Do not click any links or open attachments if this is unsolicited email.

Perhaps a secondary topic for our talk in August about Marina funding? Jason
Jason Perry
General Manager, ASM Stockton
209.373.1415 | StocktonLive.com | [email protected] CONFIDENTIALITY NOTICE:

ATTACHMENT B 1080
1 Connie Cochran
From: Harry Black
Sent: Sunday, December 8, 2024 8:10 PM
To: Kevin Lincoln
Subject: Fw: Request to Hold Over ASM GLOBAL Contract Item Sent from my Verizon, Samsung Galaxy smartphone
Get Outlook for Android
From: Jason Lee <[email protected]>
Sent: Sunday, December 8, 2024 8:05:27 PM
To: Harry Black <[email protected]>; Lori Asuncion <[email protected]> Cc: Christina Fugazi <[email protected]>
Subject: Request to Hold Over ASM GLOBAL Contract Item

CAUTION: This email originated from outside the City of Stockton. Do not click any links or open attachments if this is unsolicited email.

Thank you in advance for considering this request. I look forward to your response.

Best regards,
Jason
ATTACHMENT B 1081
1 Connie Cochran
From: Jason Lee <[email protected]>
Sent: Monday, December 9, 2024 3:42 PM
To: Harry Black
Cc: Christina Fugazi;Lori Asuncion
Subject: Re: Request to Hold Over ASM GLOBAL Contract Item CAUTION: This email originated from outside the City of Stockton. Do not click any links or open attachments if this is unsolicited email.

Thanks for the update. If you move forward with this item tomorrow, I will have this agendized and we will discuss this at the council meeting following our swearing in.

Jason
On Mon, Dec 9, 2024 at 3:22 PM Harry Black <[email protected]> wrote:

Mr. Lee:

Thanks!

Harry Black
City Manager
City of Stockton
425 N. El Dorado Street, Stockton, Ca. 95202
[email protected]
Office 209.937.8212
ATTACHMENT B 1082
2 From: Jason Lee <[email protected]>
Sent: Monday, December 9, 2024 3:03 PM
To: Harry Black <[email protected]>
Cc: Christina Fugazi <[email protected]>; Lori Asuncion <[email protected]> Subject: Re: Request to Hold Over ASM GLOBAL Contract Item

CAUTION: This email originated from outside the City of Stockton. Do not click any links or open attachments if this is unsolicited email.

Mr. Black,

Jason.

On Mon, Dec 9, 2024 at 2:58 PM Harry Black <[email protected]> wrote:

Mr. Lee:

Thank you for your email and I look forward to our upcoming introductory meeting.

Thanks!

Harry Black
ATTACHMENT B 1083
3 City Manager
City of Stockton
425 N. El Dorado Street, Stockton, Ca. 95202
[email protected]
Office 209.937.8212

CAUTION: This email originated from outside the City of Stockton. Do not click any links or open attachments if this is unsolicited email.

Thank you in advance for considering this request. I look forward to your response.

Best regards,
Jason
ATTACHMENT B 1084
1 Connie Cochran
From: Harry Black
Sent: Monday, December 9, 2024 3:23 PM
To: Jason Lee
Cc: Christina Fugazi;Lori Asuncion
Subject: RE: Request to Hold Over ASM GLOBAL Contract Item Mr. Lee:

Jason.

On Mon, Dec 9, 2024 at 2:58 PM Harry Black <[email protected]> wrote:

ATTACHMENT B 1085
2 Mr. Lee:

Thank you for your email and I look forward to our upcoming introductory meeting.

Thanks!

Harry Black
City Manager
City of Stockton
425 N. El Dorado Street, Stockton, Ca. 95202
[email protected]
Office 209.937.8212

CAUTION: This email originated from outside the City of Stockton. Do not click any links or open attachments if this is unsolicited email.

As a member of the incoming council, I strongly believe we should have the opportunity to assess this matter and determine the best course of action once the newly elected council is in place. Moving forward with this decision now, without allowing the new council to evaluate it, would not only be ATTACHMENT B 1086
3 premature but could be perceived as unethical and potentially motivated by interests beyond those of the public.

Thank you in advance for considering this request. I look forward to your response.

Best regards,
Jason
ATTACHMENT B 1087
1 Connie Cochran
From: Michele Padilla
Sent: Wednesday, December 11, 2024 1:23 PM
To: Connie Cochran
Cc: Lori Asuncion;Kevin Lincoln;Harry Black
Subject: Re: Request for Emails referenced in Council meeting Thank you Connie for your responsiveness.

Much appreciated.

Get Outlook for iOS
From: Connie Cochran <[email protected]>
Sent: Wednesday, December 11, 2024 12:40:33 PM
To: Michele Padilla <[email protected]>
Cc: Lori Asuncion <[email protected]>; Kevin Lincoln <[email protected]>; Harry Black <[email protected]>
Subject: RE: Request for Emails referenced in Council meeting

Councilmember Padilla,

This is to acknowledge receipt of your message. We have initiated a search for records responsive to your request. We are addressing your request under the California Public Records Act and will make a determination as to what records exist within 10 calendar days.

Thank you,
Connie Cochran

Connie Cochran
Community Relations Officer
City of Stockton – City Manager’s Office
City Hall, 425 N. El Dorado St., Stockton, CA 95202
(209) 937-8827 office | (209) 629-1251 cell
www.stocktonca.gov

Dear Harry,
ATTACHMENT B 1088
2 During tonight’s council meeting, you mentioned having emails indicating that ASM was “threatened” politically. As I stated, I was not aware of this matter. I would like to formally request copies of the emails you referenced for my review.

Additionally, I am requesting copies of any and all emails related to the ASM contract extension between you and city staff. Please include all correspondence that pertains to this matter.

Given the nature of these issues and my role, I trust you will provide this information promptly. Please let me know if there is a specific timeframe required to gather and deliver these emails.

Thank you for your attention to this matter. I look forward to your response.

Best regards,

Council Member Padilla
City of Stockton District 1
425 N. El Dorado
Stockton, CA. 95202
(O) 209-937-8279
(D) 209-565-2421
ATTACHMENT B 1089
1 Connie Cochran
From: Connie Cochran
Sent: Wednesday, December 11, 2024 12:41 PM
To: Michele Padilla
Cc: Lori Asuncion;Kevin Lincoln;Harry Black
Subject: RE: Request for Emails referenced in Council meeting Councilmember Padilla,
This is to acknowledge receipt of your message. We have initiated a search for records responsive to your request. We are addressing your request under the California Public Records Act and will make a determination as to what records exist within 10 calendar days.

Thank you,
Connie Cochran
Connie Cochran
Community Relations Officer
City of Stockton – City Manager’s Office
City Hall, 425 N. El Dorado St., Stockton, CA 95202
(209) 937-8827 office | (209) 629-1251 cell
www.stocktonca.gov

From: Michele Padilla <[email protected]>
Sent: Tuesday, December 10, 2024 10:34 PM
To: Harry Black <[email protected]>
Cc: Lori Asuncion <[email protected]>; Kevin Lincoln <[email protected]>; Connie Cochran <[email protected]>
Subject: Request for Emails referenced in Council meeting Dear Harry,
During tonight’s council meeting, you mentioned having emails indicating that ASM was “threatened” politically. As I stated, I was not aware of this matter. I would like to formally request copies of the emails you referenced for my review.

Additionally, I am requesting copies of any and all emails related to the ASM contract extension between you and city staff. Please include all correspondence that pertains to this matter.

Given the nature of these issues and my role, I trust you will provide this information promptly. Please let me know if there is a specific timeframe required to gather and deliver these emails.

Thank you for your attention to this matter. I look forward to your response.

ATTACHMENT B 1090
2 Best regards,
Council Member Padilla
City of Stockton District 1
425 N. El Dorado
Stockton, CA. 95202
(O) 209-937-8279
(D) 209-565-2421
ATTACHMENT B 1091
Patty Vasquez
Subject:

Location:

M. Blower & CM Black
CM's office
Start:

End:

Mon 12/9/2024 1:45 PM
Mon 12/9/2024 2:15 PM
Recurrence:

Recurrence Pattern:

Weekly
Occurs every Monday from 1:45 PM to 2:15 PM effective 1 71/2024 until 12/30/2024.

Meeting Status: Accepted
Organizer:

Required Attendees:

Optional Attendees:

Patty Vasquez
Michael Blower; Harry Black
Florence Low
2024 meetings
Mondays
**Tuesdays, due to Monday holiday
11/21/2023 pcv
1 ATTACHMENT B 1092
Patty Vasquez
Subject:

Location:

K. Warmsley & CM Black
CM's office
Start:

End:

Mon 12/9/2024 2:15 PM
Mon 12/9/2024 2:45 PM
Recurrenceo
Recurrence Pattern:

Weekly
Occurs every Monday from 2:15 PM to 2:45 PM effective 1/"l /2024 until 12/30/2024.

Meeting Status: Accepted
Organizer:

Required Attendees:

Optional Attendees:

Patty Vasquez
Kimberly Warmsley; Harry Black
Florence Low
2024 meetings
Mondays
**Tuesdays, due to Monday holiday
11/21/2023 pcv
1 ATTACHMENT B 1093
Patty Vasquez
Subject:

Location:

S. Lenz & CM Black
CM's office
Start:

End:

Mon 12/9/2024 3:15 PM
Mon 12/9/2024 3:45 PM
Recurrence:

Recurrence Pattern:

Weekly
Occurs every Monday from 3:15 PM to 3:45 PM effective 1 /1 /2024 until 12/30/2024.

Meeting Status: Accepted
Organizer:

Required Attendees:

Optional Attendees:

Patty Vasquez
Susan Lenz; Harry Black
Florence Low
2024 meetings
Mondays
**Tuesdays, due to Monday holiday
11/28/2023 pcv
I
ATTACHMENT B 1094
Patty Vasquez
Subject:

Location:

B. Villapudua & CM Black
CM's office
Start:

End:

Mon 12/9/2024 3:45 PM
Mon 12/9/2024 4:15 PM
Recurrence:

Recurrence Pattern:

Weekly
Occurs every Monday from 3:45 PM to 4:15 PM effective 1/1 /2024 until 12/30/2024.

Meeting Status: Accepted
Organizer:

Required Attendees:

Optional Attendees:

Patty Vasquez
Brando Villapudua; Harry Black
Florence Low
2024 meetings
Mondays
**Tuesdays, due to Monday holiday
11/28/2023 pcv
1 ATTACHMENT B 1095
Patty Vasquez
Subject:

Location:

D. Wright & CM Black (rescheduled)
CM's office
Start:

End:

Mon 12/9/2024 4:00 PM
Mon 12/9/2024 4:30 PM
Recurrence:

Recurrence Pattern:

Meeting Status:

Weekly
Occurs every Monday from 2:45 PM to 3:15 PM effective 1/1 /2024 until 12/30/2024.

Accepted
Organizer:

Required Attendees:

Optional Attendees:

Patty Vasquez
Dan Wright; Harry Black
Florence Low
Per Councilmember, meeting rescheduled.
12/6/2024 pcv
2024 meetings
Mondays
**Tuesdays, due to Monday holiday
11/21/2023 pcv
1 ATTACHMENT B 1096
1 Connie Cochran
From: Motec <[email protected]>
Sent: Thursday, December 12, 2024 2:54 PM
To: Harry Black
Cc: Connie Cochran; Kevin Lincoln; Michele Padilla; PublicCorruption; Civilgrandjury; Newstips; News; Newstips; Frank Gayaldo; 209 Times; [email protected]; [email protected]; [email protected]
Subject: Alleged Threats to ASM
Categories: Red Category
CAUTION: This email originated from outside the City of Stockton. Do not click any links or open attachments if this is unsolicited email.

ATTACHMENT B 1097
2 4) All communications between you and Michael Blower, Brando Villapudua, Kimberly Warmsley, Dan Wright, and Susan Lenz regarding ASM Global for the period of November 5, 2024 to December 12, 2024. 5) All communication between you and Tina McCarty regarding ASM Global for the period of January 1, 2024 to December 12, 2024.

Sincerely,
Your pal Motec
P.S. Are you getting any kickbacks from ASM
Global? Also I went ahead and included the civil grand jury again so they know what you’re lying and crying about usual.

ATTACHMENT B 1098
Sent to: [email protected]
December 23, 2024
Motecuzoma Sanchez
Re: California Public Records Act Request dated December 12, 2024 – ASM Contract Dear Mr. Sanchez,
I am writing in response to your request for public records dated December 12, 2024, pursuant to the Public Records Act (“Act”) (Gov. Code § 7920.000, et seq., formerly Gov. Code § 6250, et seq.) stating:
“Per the California Public Records Act provide the following:
1) All threats on email and social media that you referred to were made towards ASM, and falsely claimed to have provided to all council members. 2) All communications between you and ASM Global for the period of January 1, 2024 to December 12, 2024.
3) The names of all city council members you provided copies of referenced threats towards ASM Global to.
4) All communications between you and Michael Blower, Brando Villapudua, Kimberly Warmsley, Dan Wright, and Susan Lenz regarding ASM Global for the period of November 5, 2024 to December 12, 2024.
5) All communication between you and Tina McCarty regarding ASM Global for the period of January 1, 2024 to December 12, 2024.”
In response to item 1), please use the following links to access news articles, interviews and social media posts referencing status of the Adventist Health Arena (Stockton):
• https://www.blackenterprise.com/jason-lee-stockton-event/ • https://stocktonia.org/news/opinion/2024/11/04/jason-lee-big-successes-unansweredquestions/

OFFICE OF THE CITY MANAGER
City Hall  425 N. El Dorado Street  Stockton, CA 95202-1997  209 / 937-8212  Fax 209 / 937-7149 www.stocktonca.gov
ATTACHMENT B 1099
CPRA - Sanchez
December 23, 2024

Page 2 ends

• https://www.cbsnews.com/sacramento/news/author-stockton-native-jason-lee-ready-tohit-campaign-trail-for-city-council-race/ • https://www.recordnet.com/story/news/politics/elections/local/2024/11/02/election-2024- lee-vs-warmsley-for-stockton-city-council-district-6-california-voter-ballotguide/75928938007/ • https://eurweb.com/2024/jason-lee-and-floyd-mayweather-invest-in-stockton/ • https://inclubmagazine.com/jason-lee-stockton-city-council/ • https://www.recordnet.com/story/news/2024/03/05/questions-remain-in-jason-leescampaign-for-stockton-city-council/72844320007/ • https://stocktonia.org/news/elections/elections-2024/2024/10/28/questions-surrounddistrict-6-candidates-as-election-approaches/ • https://www.facebook.com/story.php/?story_fbid=954606146708311&id=100064768030 746&_rdr
• https://www.instagram.com/theonlyjasonlee/p/DA_hnFuSAYe/?img_index=1 • https://www.facebook.com/reel/1627737607778037
In response to items 1), 2), and 5), please see emails attached (52 pages).

In response to items 3) and 4), please see calendar appointments for December 9, 2024, between City Manager Black and Councilmember Blower; City Manager Black and Vice Mayor Warmsley; City Manager Black and Councilmember Wright; City Manager Black and Councilmember Lenz; and City Manager Black and Councilmember Villapudua (5 pages). For communications between City Manager Black and Mayor Kevin Lincoln, please see email dated December 8, 2024, 8:10 p.m.

If you have any questions, please contact me at (209) 937-8827.

Sincerely,
Connie Cochran
City Manager’s Office
cc: Taryn Jones, Deputy City Attorney
ATTACHMENT B 1100
1 Connie Cochran
From: Harry Black
Sent: Wednesday, December 11, 2024 11:48 AM
To: Carrie Wright
Subject: RE: follow up regarding ASM
Thank you!
Harry Black
City Manager
City of Stockton
425 N. El Dorado Street, Stockton, Ca. 95202
[email protected]
Office 209.937.8212
From: Carrie Wright <[email protected]>
Sent: Wednesday, December 11, 2024 11:23 AM
To: Harry Black <[email protected]>
Subject: follow up regarding ASM
CM Black,
I wanted to provide additional context about last night's ASM Global contract extension for operations of the City's Arena and other large venues; some key financial impacts to the City may have been missed. I also wanted to apologize as this item really should have been brought earlier in the year and the perception that it is tied to politics is unfortunate.

We need business continuity and strong forward facing confident venue sales team in order to be successful. The threat of the Arena changing management and/or operations practices, threatens ATTACHMENT B 1101
2 hundreds of staff jobs and makes contract negotiations, such as with the Kings, more difficult as they perceive the Arena to be unstable.

Thanks,
Carrie
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ATTACHMENT B 1102
1 Connie Cochran
From: Harry Black
Sent: Wednesday, December 11, 2024 10:42 AM
To: Jason Perry;Carrie Wright
Subject: RE: ASM contract extension
Our pleasure and thank you.

Morning Harry & Carrie,
I wanted to express my sincere thanks for helping secure the contract extension for the management of the venues and marina, securing our continued partnership into 2031.

Again, thank you from our entire team for your commitment to the growth of our community.

Jason
ATTACHMENT B 1103
2 Jason Perry, General Manager
248 W. Fremont Street
Stockton, CA 95203

O: (209) 373-1415
E: [email protected]

For the latest on all Stockton Live happenings please visit StocktonLive.com

Pardon any grammatical errors for this email was sent via my mobile device.

CONFIDENTIALITY NOTICE:

ATTACHMENT B 1104
1 Connie Cochran
From: Harry Black
Sent: Tuesday, December 10, 2024 1:11 PM
To: Carrie Wright;Tina McCarty
Subject: RE: Bonds
Ok, thanks.

Attached are the DS schedules for the 2016 A&B, 2004 Arena Revenue Bond and staff report for Reso#2016-06-28- 1502.

ATTACHMENT B 1105
2 Thank you,
Carmen Barragan, Debt & Treasury Manager
City of Stockton – Administrative Services
400 E. Main Street, 3rd Floor, Stockton, CA 95202
[email protected] | 209.937.8848

ATTACHMENT B 1106
1 Connie Cochran
From: Carrie Wright
Sent: Tuesday, December 10, 2024 1:02 PM
To: Harry Black;Tina McCarty
Subject: Fw: Bonds
Attachments: 2004 Arena Revenue Bond DS schedul.pdf; SA 2016 B.pdf; SA 2016 A.pdf; Legislation Text (37).pdf
I'm stuck at supervisors meeting and haven't had a chance to dig in to this. Not sure arena could be untangled, but appear at least 40m still owed.

Attached are the DS schedules for the 2016 A&B, 2004 Arena Revenue Bond and staff report for Reso#2016-06-28- 1502.

Thank you,
Carmen Barragan, Debt & Treasury Manager
City of Stockton – Administrative Services
400 E. Main Street, 3rd Floor, Stockton, CA 95202
[email protected] | 209.937.8848

ATTACHMENT B 1107
2 ATTACHMENT B 1108
ATTACHMENT B 1109
Period
Ending Principal Coupon Interest Debt Service
Annual Debt
Service
3/1/2017 200,389.00 200,389.00
9/1/2017 4,195,000 1.375% 305,678.13 4,500,678.13 4,701,067.13 3/1/2018 276,837.50 276,837.50
9/1/2018 3,565,000 1.625% 276,837.50 3,841,837.50 4,118,675.00 3/1/2019 247,871.88 247,871.88
9/1/2019 3,625,000 1.625% 247,871.88 3,872,871.88 4,120,743.76 3/1/2020 218,418.75 218,418.75
9/1/2020 3,685,000 2.000% 218,418.75 3,903,418.75 4,121,837.50 3/1/2021 181,568.75 181,568.75
9/1/2021 3,760,000 2.125% 181,568.75 3,941,568.75 4,123,137.50 3/1/2022 141,618.75 141,618.75
9/1/2022 3,840,000 2.375% 141,618.75 3,981,618.75 4,123,237.50 3/1/2023 96,018.75 96,018.75
9/1/2023 3,925,000 2.500% 96,018.75 4,021,018.75 4,117,037.50 3/1/2024 46,956.25 46,956.25
9/1/2024 3,415,000 2.750% 46,956.25 3,461,956.25 3,508,912.50 30,010,000 2,924,648.39 32,934,648.39 32,934,648.39
**************************************************************************************************** Bond Debt Service
Successor Agency to the Redevelopment Agency of the City of Stockton Series 2016B (Taxable)
A- Rated Tax Allocation Bonds; Bond Insurance and Reserve Surety **************************************************************************************************** ATTACHMENT B 1110
Period
Ending Principal Coupon Interest Debt Service
Annual Debt
Service
3/1/2017 1,105,856.66 1,105,856.66
9/1/2017 1,686,900.00 1,686,900.00 2,792,756.66
3/1/2018 1,686,900.00 1,686,900.00
9/1/2018 1,686,900.00 1,686,900.00 3,373,800.00
3/1/2019 1,686,900.00 1,686,900.00
9/1/2019 1,686,900.00 1,686,900.00 3,373,800.00
3/1/2020 1,686,900.00 1,686,900.00
9/1/2020 1,686,900.00 1,686,900.00 3,373,800.00
3/1/2021 1,686,900.00 1,686,900.00
9/1/2021 1,686,900.00 1,686,900.00 3,373,800.00
3/1/2022 1,686,900.00 1,686,900.00
9/1/2022 1,686,900.00 1,686,900.00 3,373,800.00
3/1/2023 1,686,900.00 1,686,900.00
9/1/2023 1,686,900.00 1,686,900.00 3,373,800.00
3/1/2024 1,686,900.00 1,686,900.00
9/1/2024 610,000 5.000% 1,686,900.00 2,296,900.00 3,983,800.00 3/1/2025 1,671,650.00 1,671,650.00 3,358,550.00
9/1/2025 4,150,000 5.000% 1,671,650.00 5,821,650.00 7,493,300.00 3/1/2026 1,567,900.00 1,567,900.00
9/1/2026 4,360,000 5.000% 1,567,900.00 5,927,900.00 7,495,800.00 3/1/2027 1,458,900.00 1,458,900.00
9/1/2027 4,575,000 5.000% 1,458,900.00 6,033,900.00 7,492,800.00 3/1/2028 1,344,525.00 1,344,525.00
9/1/2028 4,805,000 5.000% 1,344,525.00 6,149,525.00 7,494,050.00 3/1/2029 1,224,400.00 1,224,400.00
9/1/2029 5,045,000 5.000% 1,224,400.00 6,269,400.00 7,493,800.00 3/1/2030 1,098,275.00 1,098,275.00
9/1/2030 5,300,000 5.000% 1,098,275.00 6,398,275.00 7,496,550.00 3/1/2031 965,775.00 965,775.00
9/1/2031 5,565,000 5.000% 965,775.00 6,530,775.00 7,496,550.00 max annual 3/1/2032 826,650.00 826,650.00
9/1/2032 5,835,000 3.000% 826,650.00 6,661,650.00 7,488,300.00 3/1/2033 739,125.00 739,125.00
9/1/2033 6,015,000 5.000% 739,125.00 6,754,125.00 7,493,250.00 3/1/2034 588,750.00 588,750.00
9/1/2034 6,315,000 5.000% 588,750.00 6,903,750.00 7,492,500.00 3/1/2035 430,875.00 430,875.00
9/1/2035 6,630,000 ** 430,875.00 7,060,875.00 7,491,750.00 3/1/2036 293,125.00 293,125.00
9/1/2036 6,910,000 ** 293,125.00 7,203,125.00 7,496,250.00 3/1/2037 149,687.50 149,687.50
9/1/2037 7,195,000 ** 149,687.50 7,344,687.50 7,494,375.00 73,310,000 51,128,631.66 124,438,631.66 124,438,631.66
**************************************************************************************************** Bond Debt Service
Successor Agency to the Redevelopment Agency of the City of Stockton Series 2016A (Tax-Exempt)
A- Rated Tax Allocation Bonds; Bond Insurance and Reserve Surety **************************************************************************************************** ATTACHMENT B 1111
City of Stockton
Legislation Text
File #: 16-2686, Version: 1

REFUNDING OF SUCCESSOR AGENCY TO THE FORMER REDEVELOPMENT AGENCY OF THE

Approval of the above resolution authorizes refunding certain enforceable obligations of the Successor Agency relating to the following series of securities, resulting in the prepayment or redemption of such securities:
· Certificates of Participation (Redevelopment Housing Projects) 2003A (the “2003A COPs”) & Certificates of Participation (Redevelopment Housing Projects) Taxable Series 2003B (the “2003B COPs” and, collectively, the 2003 COPs): As described in an Official Statement dated June 17, 2003, the 2003 COPs were executed and delivered in the original principal amounts of $1,160,000 (2003A) and $12,140,000 (2003B). The net proceeds City of Stockton Page 1 of 6 Printed on 12/10/2024
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ATTACHMENT B 1112
File #: 16-2686, Version: 1
of the 2003 COPs were used to finance the construction of capital improvements to provide affordable housing in the City. The 2003A COPs and the 2003B COPs are currently outstanding in the aggregate principal amount of $985,000 and $10,515,000, respectively.

As described in an Official Statement dated March 18, 2004, the Former Agency issued its Revenue Bonds, Series 2004 (Stockton Events Center - Arena Project) in the original aggregate principal amount of $47,000,000 (the “2004 Arena Bonds”) to finance a portion of the arena at the Stockton Events Center. The 2004 Arena Bonds are payable from certain lease payments to be made from the City’s General fund under a lease agreement, and, pursuant to a pledge agreement, the Successor Agency, as successor in interest to the Former Agency, was obligated to make certain payments, the receipt of which acted as an offset to the City’s lease payment obligations. The 2004 Arena Bonds are currently outstanding in the aggregate principal amount of $43,360,000. During the City’s bankruptcy case, the City negotiated certain agreements with NPFG, the municipal bond insurer that insures the payment of debt service on the 2004 Arena Bonds. Under these agreements NPFG and the trustee for the 2004 Arena Bonds agreed to forbear from enforcing certain remedies against the City under the bond documents and adjusted the lease repayment and pledge payment schedules. The City expects to terminate these agreements in connection with the proposed refunding of the 2004 Arena Bonds.
· 2006A (Tax-Exempt) Tax Allocation Bonds & 2006C (Taxable) Tax Allocation Bonds: As described in an Official Statement dated June 21, 2006, the Stockton Public Financing Authority issued its Revenue Bonds (Redevelopment Projects), 2006 Series A in an original aggregate par amount of $75,755,000 (the “2006A Bonds”), its Taxable Revenue Bonds (Redevelopment Projects), 2006 Series B in an original aggregate par amount of $8,445,000 (the “2006B Bonds”), and its Taxable Revenue Bonds, (Housing Projects) 2006 Series C in an original aggregate par amount of $25,985,000 (the “2006C Bonds”). Proceeds of the 2006A Bonds and the 2006B Bonds were used to finance certain redevelopment projects within or of benefit to the Merged Midtown, North Stockton and South Stockton Merged Redevelopment Projects. Proceeds of the 2006C Bonds were used to fund a loan to finance certain low and moderate-income housing projects throughout the City of Stockton. The 2006A Bonds and 2006C Bonds are outstanding in the aggregate principal amount of $49,160,000 and $22,285,000, respectively. The 2006B Bonds matured on September 1, 2013, and were paid in full.
· Collectively, the Successor Agency’s obligations relating to the 2003 COPs, the 2004 Arena Bonds and the 2006A Bonds and 2006C Bonds are, in this report, referred to as the “Prior Obligations.”
City of Stockton Page 2 of 6 Printed on 12/10/2024
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ATTACHMENT B 1113
File #: 16-2686, Version: 1
· The Successor Agency assumed responsibility for all debt management with respect to the former Redevelopment Agency in 2012. Under State law (including the Fiscal Year 2012-13 State of California budget bill (Assembly Bill 1484) and California Health and Safety Code Section 34177.5(a)), the Successor Agency may refund outstanding bonds and other indebtedness of the Former Agency with approval from the Oversight Board and the California Department of Finance (“DoF”), subject to certain conditions, including that the total interest cost to maturity plus the principal amount of the refunding bonds does not exceed that of the bonds or other indebtedness to be refunded. In other words, there must be debt service savings created by the refinancing. The City and Successor Agency have commissioned a Refunding Plan and Savings Analysis be prepared by the Municipal Advisor, which is included as an attachment to this report. The Successor Agency expects to seek Oversight Board approval on June 29 and, subsequent approval from the DoF.

The final interest rates and structure will be determined when the 2016 Bonds are priced and sold.

The current target for the pricing date is September 20, subject to market conditions. Assuming pricing on that date, the bond closing could be expected to occur on or around October 4 and the Prior Obligations could be expected to be redeemed in November 2016. Although the 2016 Bonds City of Stockton Page 3 of 6 Printed on 12/10/2024
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ATTACHMENT B 1114
File #: 16-2686, Version: 1
have not yet been rated, the 2003A COPs, 2003B COPs, the 2006A Bonds and the 2006C Bonds currently carry underlying ratings from Standard & Poor’s (“S&P”) of “B-”, “B-”, “BB” and “BBB-”, respectively. The 2004 Bonds are not currently rated by S&P. It is anticipated that the 2016 Bonds will maintain at least the same credit rating as the 2006C Bonds.

City of Stockton Page 4 of 6 Printed on 12/10/2024
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ATTACHMENT B 1115
File #: 16-2686, Version: 1

The fees of Del Rio Advisors, LLC acting as Municipal Advisor to the City and Successor Agency are payable under an hourly contract and are currently estimated at $35,000. The fees of the Municipal City of Stockton Page 5 of 6 Printed on 12/10/2024
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ATTACHMENT B 1116
File #: 16-2686, Version: 1
Advisor can be recovered through the costs of issuance upon successful closing and, should the refinancing not close, can be recovered via allowable administrative expenses.

The remainder of the financing team will work on a contingent basis with fees payable only from a successful sale and closing of the 2016 Bonds.

Attachment A - Savings Analysis (PowerPoint presentation for DOF) Attachment B - Indenture of Trust, Bond Purchase Contract, and Refunding Escrow Agreement Attachment C - Complete Set of Bond Numbers
City of Stockton Page 6 of 6 Printed on 12/10/2024
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ATTACHMENT B 1117
1 Connie Cochran
From: Harry Black
Sent: Tuesday, December 10, 2024 12:56 PM
To: Carrie Wright
Cc: Tina McCarty
Subject: RE: arena dept
Okay and thanks!
Harry Black
City Manager
City of Stockton
425 N. El Dorado Street, Stockton, Ca. 95202
[email protected]
Office 209.937.8212
From: Carrie Wright <[email protected]>
Sent: Tuesday, December 10, 2024 11:12 AM
To: Harry Black <[email protected]>
Cc: Tina McCarty <[email protected]>
Subject: arena dept
CM,
We are still trying to piece together the bond information for the arena and how it is tied to successor agency. Raquel and Carmen with ASD are digging a bit deeper, but at the time of bankruptcy exit in 2015 we owed 44 million on the arena. Arena may be a generic term for the overall complex that includes the ball park. More to come before this evening.

The linked image cannot be displayed. The file may have been moved, renamed, or deleted. Verify that the link points to the correct file and location.

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ATTACHMENT B 1118
1 Connie Cochran
From: Carrie Wright
Sent: Tuesday, December 10, 2024 11:12 AM
To: Harry Black
Cc: Tina McCarty
Subject: arena dept
CM,
We are still trying to piece together the bond information for the arena and how it is tied to successor agency. Raquel and Carmen with ASD are digging a bit deeper, but at the time of bankruptcy exit in 2015 we owed 44 million on the arena. Arena may be a generic term for the overall complex that includes the ball park. More to come before this evening.

The linked image cannot be displayed. The file may have been moved, renamed, or deleted. Verify that the link points to the correct file and location.

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ATTACHMENT B 1119
1 Connie Cochran
From: Jason Lee <[email protected]>
Sent: Monday, December 9, 2024 3:42 PM
To: Harry Black
Cc: Christina Fugazi;Lori Asuncion
Subject: Re: Request to Hold Over ASM GLOBAL Contract Item CAUTION: This email originated from outside the City of Stockton. Do not click any links or open attachments if this is unsolicited email.

Thanks for the update. If you move forward with this item tomorrow, I will have this agendized and we will discuss this at the council meeting following our swearing in.

Jason
On Mon, Dec 9, 2024 at 3:22 PM Harry Black <[email protected]> wrote:

Mr. Lee:

Thanks!

Harry Black
City Manager
City of Stockton
425 N. El Dorado Street, Stockton, Ca. 95202
[email protected]
Office 209.937.8212
ATTACHMENT B 1120
2 From: Jason Lee <[email protected]>
Sent: Monday, December 9, 2024 3:03 PM
To: Harry Black <[email protected]>
Cc: Christina Fugazi <[email protected]>; Lori Asuncion <[email protected]> Subject: Re: Request to Hold Over ASM GLOBAL Contract Item

CAUTION: This email originated from outside the City of Stockton. Do not click any links or open attachments if this is unsolicited email.

Mr. Black,

Jason.

On Mon, Dec 9, 2024 at 2:58 PM Harry Black <[email protected]> wrote:

Mr. Lee:

Thank you for your email and I look forward to our upcoming introductory meeting.

Thanks!

Harry Black
ATTACHMENT B 1121
3 City Manager
City of Stockton
425 N. El Dorado Street, Stockton, Ca. 95202
[email protected]
Office 209.937.8212

CAUTION: This email originated from outside the City of Stockton. Do not click any links or open attachments if this is unsolicited email.

Thank you in advance for considering this request. I look forward to your response.

Best regards,
Jason
ATTACHMENT B 1122
1 Connie Cochran
From: Harry Black
Sent: Monday, December 9, 2024 9:50 AM
To: Carrie Wright
Cc: Tina McCarty
Subject: FW: Request to Hold Over ASM GLOBAL Contract Item Let’s discuss after Exec Team.

Thank you in advance for considering this request. I look forward to your response.

ATTACHMENT B 1123
2 Best regards,
Jason
ATTACHMENT B 1124
1 Connie Cochran
From: Jason Lee <[email protected]>
Sent: Sunday, December 8, 2024 8:05 PM
To: Harry Black;Lori Asuncion
Cc: Christina Fugazi
Subject: Request to Hold Over ASM GLOBAL Contract Item
CAUTION: This email originated from outside the City of Stockton. Do not click any links or open attachments if this is unsolicited email.

Thank you in advance for considering this request. I look forward to your response.

Best regards,
Jason
ATTACHMENT B 1125
1 Connie Cochran
From: Jason Perry <[email protected]>
Sent: Tuesday, October 8, 2024 1:44 PM
To: Carrie Wright
Subject: RE: Contract Extension
CAUTION: This email originated from outside the City of Stockton. Do not click any links or open attachments if this is unsolicited email.

I would love to schedule time with you!
Jason Perry
General Manager, ASM Stockton
209.373.1415 | StocktonLive.com | [email protected] Delayed Response Due Work Travel Through October 9.

CONFIDENTIALITY NOTICE:

ATTACHMENT B 1126
2 From: Jason Perry <[email protected]>
Sent: Sunday, September 29, 2024 9:29 AM
To: Carrie Wright <[email protected]>
Subject: Contract Extension

CAUTION: This email originated from outside the City of Stockton. Do not click any links or open attachments if this is unsolicited email.

Here you go. Hope you are having a great weekend.

Jason

Jason Perry
General Manager, ASM Stockton
209.373.1415 | StocktonLive.com | [email protected] Delayed Response Due Work Travel Through October 9.

CONFIDENTIALITY NOTICE:

ATTACHMENT B 1127
1 Connie Cochran
From: Jason Perry <[email protected]>
Sent: Monday, October 7, 2024 5:16 PM
To: Tina McCarty
Cc: Dave Jolette;Jose Jimenez;Jess Olivares;John Zukoski Subject: Re: Promoter Ticket Advance - Approval Request CAUTION: This email originated from outside the City of Stockton. Do not click any links or open attachments if this is unsolicited email.

Thanks Tina, appreciate and understand. I’ll work with LiveCo on this.

Jason Perry, General Manager
248 W. Fremont Street
Stockton, CA 95203

O: (209) 373-1415
E: [email protected]

For the latest on all Stockton Live happenings please visit StocktonLive.com

Pardon any grammatical errors for this email was sent via my mobile device.

CONFIDENTIALITY NOTICE:

On Oct 7, 2024, at 6:29 PM, Tina McCarty <[email protected]> wrote:

Jason and Dave,
I have looked through our exiting contract between the City and ASM and don't think I can give approval for the release of a percentage of the ticket proceeds prior to the event. 5.2, page 19 of the original agreement, specifically states that the "...ticket sale monies are to be held for the protection of the ticket purchasers...Following the satisfactory completion of the Event, SMG shall make a deposit to the appropriate operating account..." I think that to support this request, we would either need to amend the existing contract or enter an agreement with the Promoter directly, which is probably the best protection for the City. To clarify- it's not that it is a concern to have ASM in the middle, it's that the agreement between ASM and the City ATTACHMENT B 1128
2 pretty much leaves the liability for expenses on the Operating budget (IE the City). I would not consider entering an agreement where we let some of the ticketing money go prior to the event, without some insurances, which are not included in our current agreement. So, if LiveCo has a standard agreement for this type of arrangement and wants to send it, I'll take a look.

CAUTION: This email originated from outside the City of Stockton. Do not click any links or open attachments if this is unsolicited email.

Good morning, Tina,

Jason
ATTACHMENT B 1129
3 Jason Perry
General Manager, ASM Stockton
209.373.1415 | StocktonLive.com | [email protected] Delayed Response Due Work Travel Through October 9.

CONFIDENTIALITY NOTICE:

Hi Tina, sorry for the delay in responding.

Will give you my input on this for a decision to be made locally.

Tina,
ATTACHMENT B 1130
4 Great seeing you yesterday and I hope you had a nice flight this morning to SoCal.

As promised I wanted to let you know what promoter’s rollup into each of the three promoters for we work with many of the subsidiaries of the big three.

AEG
 We do a few shows a year with each of
o AEG Presents
o GOldenvoice
 Madison House Presents
 Marshall Arts
 Messina Touring Group
 Bowery Presents

Jason

<image001.png> Jason Perry
General Manager, ASM Stockton
209.373.1415 | StocktonLive.com | [email protected] CONFIDENTIALITY NOTICE:

ATTACHMENT B 1131
5 From: Jason Perry
Sent: Monday, August 19, 2024 11:55 AM
To: Tina McCarty <[email protected]>
Cc: Jose Jimenez <[email protected]>; Jess Olivares <[email protected]>; John Zukoski <[email protected]>
Subject: Promoter Ticket Advance - Approval Request

Tina,

With the above, are you okay for us to participate in these programs with AEG, Live Nation and LiveCo?

Jason

<image001.png> Jason Perry
General Manager, ASM Stockton
209.373.1415 | StocktonLive.com | [email protected] ATTACHMENT B 1132
6 CONFIDENTIALITY NOTICE:

ATTACHMENT B 1133
1 Connie Cochran
From: Jason Perry <[email protected]>
Sent: Sunday, September 29, 2024 9:30 AM
To: Carrie Wright
Subject: Contract Extension
Attachments: ASM Contract Extension - 5 year.docx
CAUTION: This email originated from outside the City of Stockton. Do not click any links or open attachments if this is unsolicited email.

Here you go. Hope you are having a great weekend.

Jason
Jason Perry
General Manager, ASM Stockton
209.373.1415 | StocktonLive.com | [email protected] Delayed Response Due Work Travel Through October 9.

CONFIDENTIALITY NOTICE:

ATTACHMENT B 1134
P: (209) 373 1400
W: Stocktonlive.com
ASM Stockton
248 W. Fremont St.

ATTACHMENT B 1135
1 Connie Cochran
From: Jason Perry <[email protected]>
Sent: Tuesday, August 13, 2024 9:40 AM
To: Tina McCarty
Subject: RE: Management Agreement - Extension Option
CAUTION: This email originated from outside the City of Stockton. Do not click any links or open attachments if this is unsolicited email.

Sounds like plan
Jason Perry
General Manager, ASM Stockton
209.373.1415 | StocktonLive.com | [email protected] Delayed Response Due Leadership Summit through August 16.

CONFIDENTIALITY NOTICE:

From: Tina McCarty <[email protected]>
Sent: Tuesday, August 13, 2024 9:39 AM
To: Jason Perry <[email protected]>
Subject: Re: Management Agreement - Extension Option
Do you want to do lunch? I can pick you up or vice versa around 11:30? Tina
"We don't make progress if we don't dream out loud! ~ Tina Tina McCarty, Managing Director of Events and Parking
City of Stockton, Economic Development Department
425 N. El Dorado Street, Stockton, CA 95202
[email protected] | 209.937.8907
ATTACHMENT B 1136
2 www.stocktonca.gov | www.advantagestockton.com

From: Jason Perry <[email protected]>
Sent: Tuesday, August 13, 2024 9:36 AM
To: Tina McCarty <[email protected]>
Subject: RE: Management Agreement - Extension Option

CAUTION: This email originated from outside the City of Stockton. Do not click any links or open attachments if this is unsolicited email.

Oops not Jess he leaves here and goes right to vacation…the life of an AGM – third vacation this year LOL

Jason Perry
General Manager, ASM Stockton
209.373.1415 | StocktonLive.com | [email protected] Delayed Response Due Leadership Summit through August 16.

CONFIDENTIALITY NOTICE:

Wednesday the 21st is my best day... otherwise we may have to look at the next week... I doubt Carrie's schedule will allow so let's start the discussion and I will keep her informed.

Tina
"We don't make progress if we don't dream out loud! ~ Tina Tina McCarty, Managing Director of Events and Parking
City of Stockton, Economic Development Department
425 N. El Dorado Street, Stockton, CA 95202
[email protected] | 209.937.8907
ATTACHMENT B 1137
3 www.stocktonca.gov | www.advantagestockton.com

CAUTION: This email originated from outside the City of Stockton. Do not click any links or open attachments if this is unsolicited email.

I knew you would say hello so I said she preemptively told me to say hello to you after he said hi.

Let me know when you want to meet, I am back next week.

Jason Perry
General Manager, ASM Stockton
209.373.1415 | StocktonLive.com | [email protected] Delayed Response Due Leadership Summit through August 16.

CONFIDENTIALITY NOTICE:

Yes. Let's discuss upon your return.

Give Shaun my return hello and ask him when he's coming to Stockton to visit...it's been too long! Tina
"We don't make progress if we don't dream out loud! ~ Tina ATTACHMENT B 1138
4 Tina McCarty, Managing Director of Events and Parking City of Stockton, Economic Development Department
425 N. El Dorado Street, Stockton, CA 95202
[email protected] | 209.937.8907
www.stocktonca.gov | www.advantagestockton.com

CAUTION: This email originated from outside the City of Stockton. Do not click any links or open attachments if this is unsolicited email.

Good morning from Long Beach!

Tina – Shaun Beard said hello!

Jason

Jason Perry
General Manager, ASM Stockton
209.373.1415 | StocktonLive.com | [email protected] Delayed Response Due Leadership Summit through August 16.

CONFIDENTIALITY NOTICE:

From: Jason Perry
Sent: Friday, July 12, 2024 10:04 AM
To: Tina McCarty <[email protected]>; Carrie Wright <[email protected]> Subject: Management Agreement - Extension Option

Tina/Carrie,

ATTACHMENT B 1139
5 I know that July 2026 seems like a lifetime away but when we think about it we will be deep into FY26 budget in four short months. That said I want to start the conversation about the additional 5-year extension option through June 2031, also ok with me to talk about two-year extension option as well; locking ASM in through 2033. The upside here is that when we execution this extension there is that capital investment due by ASM which would be great for us to use to upgrade the F&B components for the patrons as this will also result in a solid ROI.

Perhaps a secondary topic for our talk in August about Marina funding?

Jason

Jason Perry
General Manager, ASM Stockton
209.373.1415 | StocktonLive.com | [email protected] CONFIDENTIALITY NOTICE:

ATTACHMENT B 1140
1 Connie Cochran
From: Jason Perry <[email protected]>
Sent: Friday, July 12, 2024 10:04 AM
To: Tina McCarty;Carrie Wright
Subject: Management Agreement - Extension Option
CAUTION: This email originated from outside the City of Stockton. Do not click any links or open attachments if this is unsolicited email.

Perhaps a secondary topic for our talk in August about Marina funding? Jason
Jason Perry
General Manager, ASM Stockton
209.373.1415 | StocktonLive.com | [email protected] CONFIDENTIALITY NOTICE:

ATTACHMENT B 1141
1 Connie Cochran
From: Harry Black
Sent: Sunday, December 8, 2024 8:10 PM
To: Kevin Lincoln
Subject: Fw: Request to Hold Over ASM GLOBAL Contract Item Sent from my Verizon, Samsung Galaxy smartphone
Get Outlook for Android
From: Jason Lee <[email protected]>
Sent: Sunday, December 8, 2024 8:05:27 PM
To: Harry Black <[email protected]>; Lori Asuncion <[email protected]> Cc: Christina Fugazi <[email protected]>
Subject: Request to Hold Over ASM GLOBAL Contract Item

CAUTION: This email originated from outside the City of Stockton. Do not click any links or open attachments if this is unsolicited email.

Thank you in advance for considering this request. I look forward to your response.

Best regards,
Jason
ATTACHMENT B 1142
1 Connie Cochran
From: Jason Lee <[email protected]>
Sent: Monday, December 9, 2024 3:42 PM
To: Harry Black
Cc: Christina Fugazi;Lori Asuncion
Subject: Re: Request to Hold Over ASM GLOBAL Contract Item CAUTION: This email originated from outside the City of Stockton. Do not click any links or open attachments if this is unsolicited email.

Thanks for the update. If you move forward with this item tomorrow, I will have this agendized and we will discuss this at the council meeting following our swearing in.

Jason
On Mon, Dec 9, 2024 at 3:22 PM Harry Black <[email protected]> wrote:

Mr. Lee:

Thanks!

Harry Black
City Manager
City of Stockton
425 N. El Dorado Street, Stockton, Ca. 95202
[email protected]
Office 209.937.8212
ATTACHMENT B 1143
2 From: Jason Lee <[email protected]>
Sent: Monday, December 9, 2024 3:03 PM
To: Harry Black <[email protected]>
Cc: Christina Fugazi <[email protected]>; Lori Asuncion <[email protected]> Subject: Re: Request to Hold Over ASM GLOBAL Contract Item

CAUTION: This email originated from outside the City of Stockton. Do not click any links or open attachments if this is unsolicited email.

Mr. Black,

Jason.

On Mon, Dec 9, 2024 at 2:58 PM Harry Black <[email protected]> wrote:

Mr. Lee:

Thank you for your email and I look forward to our upcoming introductory meeting.

Thanks!

Harry Black
ATTACHMENT B 1144
3 City Manager
City of Stockton
425 N. El Dorado Street, Stockton, Ca. 95202
[email protected]
Office 209.937.8212

CAUTION: This email originated from outside the City of Stockton. Do not click any links or open attachments if this is unsolicited email.

Thank you in advance for considering this request. I look forward to your response.

Best regards,
Jason
ATTACHMENT B 1145
1 Connie Cochran
From: Harry Black
Sent: Monday, December 9, 2024 3:23 PM
To: Jason Lee
Cc: Christina Fugazi;Lori Asuncion
Subject: RE: Request to Hold Over ASM GLOBAL Contract Item Mr. Lee:

Jason.

On Mon, Dec 9, 2024 at 2:58 PM Harry Black <[email protected]> wrote:

ATTACHMENT B 1146
2 Mr. Lee:

Thank you for your email and I look forward to our upcoming introductory meeting.

Thanks!

Harry Black
City Manager
City of Stockton
425 N. El Dorado Street, Stockton, Ca. 95202
[email protected]
Office 209.937.8212

CAUTION: This email originated from outside the City of Stockton. Do not click any links or open attachments if this is unsolicited email.

As a member of the incoming council, I strongly believe we should have the opportunity to assess this matter and determine the best course of action once the newly elected council is in place. Moving forward with this decision now, without allowing the new council to evaluate it, would not only be ATTACHMENT B 1147
3 premature but could be perceived as unethical and potentially motivated by interests beyond those of the public.

Thank you in advance for considering this request. I look forward to your response.

Best regards,
Jason
ATTACHMENT B 1148
1 Connie Cochran
From: Michele Padilla
Sent: Wednesday, December 11, 2024 1:23 PM
To: Connie Cochran
Cc: Lori Asuncion;Kevin Lincoln;Harry Black
Subject: Re: Request for Emails referenced in Council meeting Thank you Connie for your responsiveness.

Much appreciated.

Councilmember Padilla,

Thank you,
Connie Cochran

Dear Harry,
ATTACHMENT B 1149
2 During tonight’s council meeting, you mentioned having emails indicating that ASM was “threatened” politically. As I stated, I was not aware of this matter. I would like to formally request copies of the emails you referenced for my review.

Additionally, I am requesting copies of any and all emails related to the ASM contract extension between you and city staff. Please include all correspondence that pertains to this matter.

Given the nature of these issues and my role, I trust you will provide this information promptly. Please let me know if there is a specific timeframe required to gather and deliver these emails.

Thank you for your attention to this matter. I look forward to your response.

Best regards,

Council Member Padilla
City of Stockton District 1
425 N. El Dorado
Stockton, CA. 95202
(O) 209-937-8279
(D) 209-565-2421
ATTACHMENT B 1150
1 Connie Cochran
From: Connie Cochran
Sent: Wednesday, December 11, 2024 12:41 PM
To: Michele Padilla
Cc: Lori Asuncion;Kevin Lincoln;Harry Black
Subject: RE: Request for Emails referenced in Council meeting Councilmember Padilla,
This is to acknowledge receipt of your message. We have initiated a search for records responsive to your request. We are addressing your request under the California Public Records Act and will make a determination as to what records exist within 10 calendar days.

Additionally, I am requesting copies of any and all emails related to the ASM contract extension between you and city staff. Please include all correspondence that pertains to this matter.

Given the nature of these issues and my role, I trust you will provide this information promptly. Please let me know if there is a specific timeframe required to gather and deliver these emails.

Thank you for your attention to this matter. I look forward to your response.

ATTACHMENT B 1151
2 Best regards,
Council Member Padilla
City of Stockton District 1
425 N. El Dorado
Stockton, CA. 95202
(O) 209-937-8279
(D) 209-565-2421
ATTACHMENT B 1152
Patty Vasquez
Subject:

Location:

M. Blower & CM Black
CM's office
Start:

End:

Mon 12/9/2024 1:45 PM
Mon 12/9/2024 2:15 PM
Recurrence:

Recurrence Pattern:

Weekly
Occurs every Monday from 1:45 PM to 2:15 PM effective 1 71/2024 until 12/30/2024.

Meeting Status: Accepted
Organizer:

Required Attendees:

Optional Attendees:

Patty Vasquez
Michael Blower; Harry Black
Florence Low
2024 meetings
Mondays
**Tuesdays, due to Monday holiday
11/21/2023 pcv
1 ATTACHMENT B 1153
Patty Vasquez
Subject:

Location:

K. Warmsley & CM Black
CM's office
Start:

End:

Mon 12/9/2024 2:15 PM
Mon 12/9/2024 2:45 PM
Recurrenceo
Recurrence Pattern:

Weekly
Occurs every Monday from 2:15 PM to 2:45 PM effective 1/"l /2024 until 12/30/2024.

Meeting Status: Accepted
Organizer:

Required Attendees:

Optional Attendees:

Patty Vasquez
Kimberly Warmsley; Harry Black
Florence Low
2024 meetings
Mondays
**Tuesdays, due to Monday holiday
11/21/2023 pcv
1 ATTACHMENT B 1154
Patty Vasquez
Subject:

Location:

S. Lenz & CM Black
CM's office
Start:

End:

Mon 12/9/2024 3:15 PM
Mon 12/9/2024 3:45 PM
Recurrence:

Recurrence Pattern:

Weekly
Occurs every Monday from 3:15 PM to 3:45 PM effective 1 /1 /2024 until 12/30/2024.

Meeting Status: Accepted
Organizer:

Required Attendees:

Optional Attendees:

Patty Vasquez
Susan Lenz; Harry Black
Florence Low
2024 meetings
Mondays
**Tuesdays, due to Monday holiday
11/28/2023 pcv
I
ATTACHMENT B 1155
Patty Vasquez
Subject:

Location:

B. Villapudua & CM Black
CM's office
Start:

End:

Mon 12/9/2024 3:45 PM
Mon 12/9/2024 4:15 PM
Recurrence:

Recurrence Pattern:

Weekly
Occurs every Monday from 3:45 PM to 4:15 PM effective 1/1 /2024 until 12/30/2024.

Meeting Status: Accepted
Organizer:

Required Attendees:

Optional Attendees:

Patty Vasquez
Brando Villapudua; Harry Black
Florence Low
2024 meetings
Mondays
**Tuesdays, due to Monday holiday
11/28/2023 pcv
1 ATTACHMENT B 1156
Patty Vasquez
Subject:

Location:

D. Wright & CM Black (rescheduled)
CM's office
Start:

End:

Mon 12/9/2024 4:00 PM
Mon 12/9/2024 4:30 PM
Recurrence:

Recurrence Pattern:

Meeting Status:

Weekly
Occurs every Monday from 2:45 PM to 3:15 PM effective 1/1 /2024 until 12/30/2024.

Accepted
Organizer:

Required Attendees:

Optional Attendees:

MEASURE A OVERVIEW AND DISCUSSION

RECOMMENDATION
Information only; no action to be taken.

Summary
This is an informational presentation on Measure A, a three-quarter percent transactions and use (sales) tax that was approved by voters on November 13, 2013; became effective April 1, 2014; and was extended through March 31, 2034, by ordinance via Council action on December 5, 2023.

Attachment A - Approved Ordinance 2013-07-09-1601
Attachment B - Approved Ordinance 2023-12-05-1602
Attachment C - SPOA Side Letter Agreement - Recruitment and Retention Attachment D - Approved Resolution 2024-07-09-1506
Attachment E - FY 2024-25 Measure A Expenditure Plan
Attachment F - Advisory Measure B 65%/35% Proceeds Allocation City of Stockton Page 1 of 1 Printed on 1/17/2025
powered by Legistar™
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ATTACHMENT C 1258
Resolution No. 2024-07-09-1506

STOCKTON CITY COUNCIL

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

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

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

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

PASSED,APPROVED,and ADOPTED --�J�u�IY�9�,=20�2�4 __ _
' '
Interim City Clerk of the City of Sto-k-tGn

ATTACHMENT D
1259

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

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

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

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

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

The Measure A Citizens Advisory Committee receives regular reports from City staff on Measure B eligible expenditures, including annual economic recovery reports, quarterly financial reports, annual reports on the 65%/35% usage, and quarterly statistics concerning progress on crime reduction and staff retention. Regular reporting will continue under the tax extension authorized by City Council.

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

According to Section 21 of the Measure A Ordinance (2013-07-09-1601), 100% of the proceeds of Measure A may be used for any lawful purpose of the City, as authorized by ordinance, resolution, or action of the City Council. The Ordinance explicitly states that Measure A is a general tax and not a special tax. The guidelines set forth below do not 1260

ATTACHMENT D
restrict or legislate the use of these general purpose tax revenues, and are not intended in any way to legally obligate Measure A funds for any particular purpose. Instead, this document is designed to increase visibility and transparency, and demonstrate the City’s alignment with Measure B.

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

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

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

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

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

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

4. Special Projects – Funds may be identified for special crime prevention projects or initiatives if savings occur in any of the above areas 1261

ATTACHMENT D
Spending Priorities for the 35% Funds (General City Services) In addition to the 65% originally allocated to law enforcement and crime prevention expenditures, 35% is advised to go towards general City expenditures. Any amount not spent on law enforcement and crime prevention expenditures will be analyzed on an annual basis with the fourth quarter budget report and made available to the City Council for special consideration. Items specifically funded by this portion of Measure A will be tracked going forward to demonstrate the impact of the 35%. Budget Priorities include:

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

2. Post-bankruptcy recovery/restoration of services

3. General City expenditures as approved by City Council

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

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

Future Updates to Guidelines
The guidelines contained herein may subsequently be modified or revised as economic and programmatic conditions evolve over time, including but not limited to:
 Anticipated or unanticipated changes in projected or actual revenues and/or expenditures
 Economic trends and/or forecasts
 Overall fiscal health of the City
 Changes in programmatic and/or personnel needs
 Council priorities
Any proposed changes to the guidelines will be presented to the Measure A Citizens’ Advisory Committee for discussion, and subsequently presented to City Council for approval.
1262

ATTACHMENT E
Measure A Revenues
Measure A Transaction & Use Tax $ 47,058,000
Total Measure A Revenues $ 47,058,000
Law Enforcement and Crime Prevention (65%)
Law Enforcement
Salary & Benefits - 60 Sworn Positions $ 14,242,486
Salary & Benefits - 33 Civilian Positions 4,825,845
Vacancy Savings (1,531,305)
Recruitment, Retention, and Wellness Efforts (Side Letter) 12,295,709 Administration and Contracted Service Delivery Costs 4,590,249 Fuel 378,960
Materials & Supplies 755,825
Training & Staff Development Services 601,809
Office of Violence Prevention
Salary & Benefits - 8 Civilian Positions 1,220,264
Administration and Contracted Service Delivery Costs 328,934 Fuel 33,418
Materials & Supplies 45,000
Office Equipment 3,379
Training & Staff Development Services 53,500
Total Law Enforcement and Crime Prevention Expenditures $ 37,844,073 % of Revenues (65% advised) 80%
General City Services (35%)
Bankruptcy Recovery: Assured Guaranty Contingent Payment $ 5,927,000 Restoration of Service: Victory Park Pool 3,000,000
Restoration of Service: Fire Station No. 7 286,927
Total General City Services Expenditures $ 9,213,927
% Of Revenues (35% advised) 20%
Measure A Expenditure Plan*
FY 2024-25
*Measure A is a general tax imposed for general governmental purposes, the proceeds of which may be used for any lawful purpose of the City and are not restricted or limited to the expenditures identified in this plan. 1263
Actual and Projected Use of Measure A Sales Tax Revenues Over Ten Year Period Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Projected ($ in Millions) 13-14 14-15 15-16 16-17 17-18 18-19 19-20 20-21 21-22 22-23 23-24* Original Anticipated Revenue 6.9$ 28.4 $ 29.4$ 30.4$ 31.5$ 32.7$ 33.8$ 35.0$ 36.2$ 37.5$ $ 29.1 Actual Sales Tax Revenue 6.6$ 27.8 $ 29.3$ 30.0$ 31.7$ 34.6$ 34.3$ 40.8$ 45.4$ 49.7$ $ 27.1 Marshall Plan 0.0$ 5.1$ 12.9 $ 18.3$ 22.5$ 24.2$ 25.9$ 27.2$ 26.3$ 31.9$ $ 27.5 % Annual Use of Tax 0% 18% 44% 61% 71% 70% 76% 67% 58% 64% 101% % Cumulative Use 0% 15% 28% 39% 47% 52% 56% 58% 58% 60% 62% Bankruptcy Recovery 6.6$ 22.7 $ 16.4$ 11.8$ 9.3 $ 10.3 $ 8.4 $ 13.6 $ 19.2$ 17.8$ $ (0.3) % Annual Use of Tax 100% 82% 56% 39% 29% 30% 24% 33% 42% 36% -1% % Cumulative Use 100% 85% 72% 61% 53% 48% 44% 42% 42% 40% 38% * FY 2023-24 compares the first three projected quarters of the year because Measure A was initially set to expire on 3/31/2024.

ATTACHMENT F 1264
Final Year End Variance With
Budget Actual Final Budget
SOURCES / REVENUES:

Measure A Transaction and Use Tax $ 27,811,587 27,923,000 $ 111,413 $ Total Revenues 27,811,587 27,923,000 111,413
USES / EXPENDITURES:

Police:

Salary & Benefits
Sworn (40) 4,650,323 1,718,905 2,931,418
Non-Sworn (22) 1,465,235 741,613 723,622
Vacancy Savings (1,612,286) - (1,612,286)
Other Services 691,811 396,961 294,850
Materials & Supplies
Fuel 186,000 3,935 182,065
Other Supplies 212,266 258,183 (45,917)
Equipment
Office Equipment 26,125 78,756 52,631
Radios (39) 390,389 375,873 14,516
Vehicles (39) 1,309,990 1,102,228 207,762
Other Expenses
Training 260,843 233,567 27,276
4,857,390 7,633,327 2,775,937
Office of Violence Prevention:

Salary & Benefits
Non-Sworn (7) 370,555 77,520 293,035
Other Services 279,531 128,698 150,833
Materials & Supplies
Fuel 12,000 - 12,000
Other Supplies 10,000 1,334 8,666
Equipment
Office Equipment - 17,500 17,500
Radios (39) 27,600 2,380 25,220
Vehicles (39) 75,000 - 75,000
Other Expenses 399 - 399
209,932 792,585 582,653
Basis Adjustment:

Encumbrances (Included in Final Budget) - 484,676 (484,676) Total Measure B Expenditures 5,551,998 8,425,912 2,873,914 Measure B Expenditures as a % of
Annual Measure A Revenues 30% 20%
Other City Services:

Administration Overhead 230,096 287,000 56,904
Mission Critical Projects:

Implementation of Strategic Priorities 200,000 200,000 - Public Safety Radios 1,000,000 1,000,000 -
LED Lighting Project Phase I 1,200,000 1,200,000 -
Information Technology Projects 5,236,000 5,236,000 -
Purchasing Improvements 164,000 132,129 31,871
Economic Dev. Implementation - ULI 100,000 21,000 79,000 Marketing/Communications Plan 100,000 - 100,000
General Fund Available Fund Balance 11,210,088 14,209,583 (2,999,495) Basis Adjustment
Encumbrances (Included in Final Budget) - 30,781 (30,781) 19,497,088 22,259,589 (2,762,501)
Total Uses / Expenditures $ 27,811,587 27,923,000 $ 111,413 $ City of Stockton
Measures A and B
Schedule of Sources and Uses
For the Year Ended June 30, 2015
182
ATTACHMENT F 1265
Final Year End Variance with
Budget Actual Final Budget
SOURCES / REVENUES:

Measure A Transaction and Use Tax $ 28,125,000 $ 29,259,106 $ 1,134,106 Total Revenues 28,125,000 29,259,106 1,134,106
USES / EXPENDITURES:

Police:

Salary & Benefits
Sworn 6,247,971 10,089,556 3,841,585
Non-Sworn 2,502,200 1,954,953 547,247
Vacancy Savings (2,933,065) - (2,933,065)
Other Services 1,213,234 775,634 437,600
Materials & Supplies
Fuel 175,202 58,588 116,614
Other Supplies 275,310 212,470 62,840
Radios 2,079,464 1,396,096 683,368
Vehicles 1,435,485 1,233,765 201,720
Technology Upgrades 104,547 796,000 691,453
Other Expenses
Training 307,500 271,761 35,739
15,940,886 12,255,785 3,685,101
Office of Violence Prevention:

Salary & Benefits
Non-Sworn 302,489 592,900 290,411
Other Services 315,389 221,737 93,652
Materials & Supplies
Fuel 12,000 - 12,000
Other Supplies 10,000 11,210 (1,210)
Equipment
Office Equipment 451 17,500 17,049
Vehicles 74,774 74,274 500
Other Expenses 2,000 1,696 304
1,024,563 611,857 412,706
Basis Adjustment:

Encumbrances (included in Final Budget) - 556,016 (556,016) Total Measure B Expenditures $ 16,965,449 $ 13,423,658 $ 3,541,791 Measure B expenditures as a % of
annual Measure A revenues 60% 46%
Other City Services:

LED Lighting Project Phase I & III 1,576,000 1,576,000 - Information Technology Projects 385,000 385,000 -
Purchasing Improvements 30,781 30,781 -
SEB 4th Floor Build Out 1,500,000 1,500,000 -
Police Communications System Upgrade 650,000 650,000 -
Citywide Training 36,400 130,000 93,600
Parks Irrigation Controller Upgrade 588,000 588,000 -
Street Resurfacing 500,000 226,199 273,801
Sidewalks 300,000 300,000 -
General Fund Services and Reserves 5,499,770 10,269,267 (4,769,497) Basis Adjustment:

Encumbrances (included in Final Budget) - 273,801 (273,801) 11,159,551 15,835,448 (4,675,897)
Total Uses/Expenditures $ 28,125,000 $ 29,259,106 $ (1,134,106) Measures A and B
Schedule of Sources and Uses
For Year Ended June 30, 2016
City of Stockton
176
ATTACHMENT F 1266
Final Year End Variance with
Budget Actual Final Budget
Revenues
Measure A Transaction and Use Tax $ 30,161,000 $ 30,048,605 $ (112,395) Total Revenues $ 30,161,000 $ 30,048,605 $ (112,395)
Uses/Expenditures
Police
Salary & Benefits
Sworn 16,685,841 11,077,640 5,608,201
Non-Sworn 3,325,678 2,313,333 1,012,345
Vacancy Savings (3,640,000) - (3,640,000)
Other Services 1,363,526 1,217,757 145,769
Materials & Supplies
Fuel 146,461 135,690 10,771
Other Supplies 540,024 441,864 98,160
Equipment
Radios 489,465 411,352 78,113
Vehicles 1,487,914 1,259,990 227,924
Technology Upgrades 195,851 170,401 25,450
Other Expenses
Training 405,460 405,456 4
21,000,220 17,433,483 3,566,737
Office of Violence Prevention
Salary & Benefits
Non-Sworn 627,914 615,792 12,122
Other Services 252,850 169,557 83,293
Materials & Supplies
Other Supplies 11,289 9,487 1,802
Equipment
Office Equipment 20,897 20,928 (31)
Vehicles 23,747 23,746 1
Other Expenses 8,750 7,712 1,038
945,447 847,222 98,225
Basis Adjustment
Encumbrances (included in Final Budget) - 160,609 (160,609) Total Measure B Expenditures 21,945,667 18,441,314 3,504,353 Crime Prevention (Measure B) expenditures
as a % of annual Measure A revenues 73% 61%
Other City Services
Transfers to Mission Critical Projects
Street Resurfacing 273,801 273,801 -
Economic Dev. Implementation - ULI 76,166 31,600 44,566 Marketing/Communications Plan 100,000 74,800 25,200
General Fund Available Fund Balance 7,765,366 11,199,924 (3,434,558) Basis Adjustment
Encumbrances (included in Final Budget) - 27,166 (27,166) 8,215,333 11,607,291 (3,391,958)
Total Uses/Expenditures $ 30,161,000 $ 30,048,605 $ 112,395 Measures A and B
Schedule of Sources and Uses
For Year Ended June 30, 2017
City of Stockton
174
ATTACHMENT F 1267
Final Year End Variance with
Budget Actual Final Budget
Revenues
Measure A Transaction and Use Tax $ 31,020,000 $ 31,735,727 $ 715,727 Total revenues 31,020,000 31,735,727 715,727
Uses/Expenditures
Police
Salary & benefits
Sworn 17,037,508 15,907,750 1,129,758
Non-Sworn 3,385,429 2,879,875 505,554
Vacancy savings (1,635,312) - (1,635,312)
Other services 1,893,879 1,613,908 279,971
Materials & supplies
Fuel 108,308 226,062 (117,754)
Other supplies 418,364 213,637 204,727
Equipment
Radios 8,499 8,499 -
Vehicles 240,000 240,000 -
Technology upgrades 25,000 - 25,000
Other expenses
Training 512,305 510,977 1,328
Total police 21,993,980 21,600,708 393,272
Office of Violence Prevention
Salary & benefits
Non-sworn 654,522 564,609 89,913
Other services 360,407 275,911 84,496
Materials & supplies
Fuel 12,000 6,585 5,415
Other supplies 12,094 5,647 6,447
Equipment
Office equipment 18,624 10,494 8,130
Other expenses 15,750 10,363 5,387
Total Office of Violence Prevention 1,073,397 873,609 199,788 Basis Adjustment
Encumbrances (included in final budget) - 174,893 (174,893) Total Measure B Expenditures 23,067,377 22,649,210 418,167 Crime Prevention (Measure B) expenditures
as a % of annual Measure A revenues 74% 71% 58%
Other City Services
Prior Year - Mission Critical Projects
Economic development implementation - ULI 27,166 - 27,166 Marketing/communications plan 25,000 - 25,000
General Fund available fund balance 7,900,457 9,086,517 (1,186,060) Total adjustment 7,952,623 9,086,517 (1,133,894)
Total Uses/Expenditures $ 31,020,000 $ 31,735,727 $ (715,727) Measures A and B
Schedule of Sources and Uses
For Year Ended June 30, 2018
City of Stockton
See accompanying Notes to the Basic Financial Statements.

ATTACHMENT F 1268
Final Year End Variance with
Budget Actual Final Budget
Revenues
Measure A Transaction and Use Tax $ 31,458,459 $ 34,570,561 $ 3,112,102 Total revenues 31,458,459 34,570,561 3,112,102
Uses/Expenditures
Police
Salary & benefits
Sworn 18,604,080 17,552,945 1,051,135
Non-Sworn 3,207,584 3,085,164 122,420
Vacancy savings (1,046,464) - (1,046,464)
Other services 1,854,746 1,726,339 128,407
Materials & supplies
Fuel 140,434 312,503 (172,069)
Other supplies 348,629 142,380 206,249
Other expenses
Training 556,454 528,633 27,821
Total police 23,665,463 23,347,964 317,499
Office of Violence Prevention
Salary & benefits
Non-sworn 686,203 621,195 65,008
Other services 312,307 220,279 92,028
Materials & supplies
Fuel 6,731 5,620 1,111
Other supplies 28,600 5,060 23,540
Office equipment 5,441 3,467 1,974
Other expenses 20,250 19,741 509
Total Office of Violence Prevention 1,059,532 875,362 184,170 Basis Adjustment
Encumbrances (included in final budget) - 162,413 (162,413) Total Measure B Expenditures 24,724,995 24,385,739 339,256 Crime Prevention (Measure B) expenditures
as a % of annual Measure A revenues 79% 71%
Other City Services
Prior Year - Mission Critical Projects
Marketing/communications plan 14,325 - 14,325
General Fund available fund balance 6,719,139 10,184,822 (3,465,683) Total adjustment 6,733,464 10,184,822 (3,451,358)
Total Uses/Expenditures $ 31,458,459 $ 34,570,561 $ (3,112,102) Measures A and B
Schedule of Sources and Uses
For Year Ended June 30, 2019
City of Stockton
See accompanying Notes to the Basic Financial Statements.

ATTACHMENT F 1269
Final Year End Variance with
Budget Actual Final Budget
Revenues
Measure A Transaction and Use Tax $ 32,508,651 $ 34,329,713 $ 1,821,062 Total revenues 32,508,651 34,329,713 1,821,062
Uses/Expenditures
Police
Salary & benefits
Sworn 20,525,184 18,424,245 2,100,939
Non-Sworn 3,671,391 3,052,913 618,478
Vacancy savings (904,411) - (904,411)
Other services 2,345,422 2,239,423 105,999
Materials & supplies
Fuel 348,377 269,189 79,188
Other supplies 375,246 285,686 89,560
Other expenses
Training 658,347 654,522 3,825
Total police 27,019,556 24,925,978 2,093,578
Office of Violence Prevention
Salary & benefits
Non-sworn 657,203 680,195 (22,992)
Other services 378,790 299,386 79,404
Materials & supplies
Fuel 5,752 3,190 2,562
Other supplies 10,620 15,781 (5,161)
Office equipment 3,979 1,379 2,600
Other expenses 11,572 11,572 -
Total Office of Violence Prevention 1,067,916 1,011,503 56,413 Basis Adjustment
Encumbrances (included in final budget) - 136,347 (136,347) Total Measure B Expenditures 28,087,472 26,073,827 2,013,645 Crime Prevention (Measure B) expenditures
as a % of annual Measure A revenues 86% 76%
Other City Services
Prior Year - Mission Critical Projects
Marketing/communications plan - -
General Fund available fund balance 4,421,179 8,255,886 (3,834,707) Total adjustment 4,421,179 8,255,886 (3,834,707)
Total Uses/Expenditures $ 32,508,651 $ 34,329,713 $ (1,821,062) Measures A and B
Schedule of Sources and Uses
For Year Ended June 30, 2020
City of Stockton
ATTACHMENT F 1270
Final Year End Variance with
Budget Actual Final Budget
Revenues
Measure A Transaction and Use Tax $ 28,472,000 $ 40,810,516 $ 12,338,516 Total revenues 28,472,000 40,810,516 12,338,516
Uses/Expenditures
Police
Salary & benefits
Sworn 21,413,141 19,316,382 2,096,759
Non-Sworn 3,800,419 3,164,294 636,125
Vacancy savings (993,017) - (993,017)
Other services 2,920,889 2,675,205 245,684
Materials & supplies
Fuel 348,096 285,767 62,329
Other supplies 431,091 189,377 241,714
Other expenses
Training 620,018 617,265 2,753
Total police 28,540,637 26,248,290 2,292,347
Office of Violence Prevention
Salary & benefits
Non-sworn 863,143 766,267 96,876
Other services 312,856 174,886 137,970
Materials & supplies
Fuel 6,231 6,243 (12)
Other supplies 35,000 5,369 29,631
Office equipment 3,979 665 3,314
Other expenses 19,850 1,086 18,764
Total Office of Violence Prevention 1,241,059 954,516 286,543 Basis Adjustment
Encumbrances (included in final budget) - 171,220 (171,220) Total Measure B Expenditures 29,781,696 27,374,026 2,407,670 Crime Prevention (Measure B) expenditures
as a % of annual Measure A revenues 105% 67%
Other City Services
Prior Year - Mission Critical Projects - - -
General Fund available fund balance (1,309,696) 13,436,490 (14,746,186) Total adjustment (1,309,696) 13,436,490 (14,746,186)
Total Uses/Expenditures $ 28,472,000 $ 40,810,516 $ (12,338,516) Schedule of Sources and Uses
Measures A and B
For Year Ended June 30, 2021
City of Stockton
See accompanying Notes to the Basic Financial Statements.

ATTACHMENT F 1271
Final Year End Variance with
Budget Actual Final Budget
Revenues
Measure A Transaction and Use Tax $ 36,132,000 $ 45,412,129 $ 9,280,129 Total revenues 36,132,000 45,412,129 9,280,129
Uses/Expenditures
Police
Salary & benefits
Sworn 22,715,023 18,420,634 4,294,389
Non-Sworn 4,144,699 3,055,935 1,088,764
Vacancy savings (936,054) - (936,054)
Other services 3,035,090 2,838,027 197,063
Materials & supplies
Fuel 281,265 359,709 (78,444)
Other supplies 454,007 204,581 249,426
Other expenses
Technology upgrade - 9,515 (9,515)
Training 595,000 520,287 74,713
Capital outlay 77,254 - 77,254
Total police 30,366,284 25,408,688 4,957,596
Office of Violence Prevention
Salary & benefits
Non-sworn 899,409 618,937 280,472
Other services 400,706 191,624 209,082
Materials & supplies
Fuel 3,182 3,933 (751)
Other supplies 59,999 35,067 24,932
Office equipment 3,979 914 3,065
Other expenses 20,000 637 19,363
Total Office of Violence Prevention 1,387,275 851,112 536,163 Basis Adjustment
Encumbrances (included in final budget) - 344,973 (344,973) Total Measure B Expenditures 31,753,559 26,604,773 5,148,786 Crime Prevention (Measure B) expenditures
as a % of annual Measure A revenues 88% 59%
Other City Services
General Fund available fund balance 4,378,441 18,807,356 (14,428,915) Total adjustment 4,378,441 18,807,356 (14,428,915)
Total Uses/Expenditures $ 45,412,129 36,132,000 $ (9,280,129) $ Schedule of Sources and Uses
Measures A and B
For Year Ended June 30, 2022
City of Stockton
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ATTACHMENT F 1272
ATTACHMENT F 1273
Measure A
Overview and Discussion
City Council Meeting
January 21, 2025
Agenda Item 15.3
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Measure A Background
¾ Cent Sales Tax
Approved as a General Tax by Voters in 2013
Accompanied by Advisory Measure B
35% General City Services
65% Law Enforcement and Crime Prevention
Subject to an array of oversight controls,
audits, and attestations
Extended by Council through March 31, 2034
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Advisory Measure B 65%/35%
Proceeds Allocation
Actual and Projected Use of Measure A Sales Tax Revenues Over Ten Year Period Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Projected ($ in Millions) 13-14 14-15 15-16 16-17 17-18 18-19 19-20 20-21 21-22 22-23 23-24* Original Anticipated Revenue $ 6.9 $ 28.4 $ 29.4 $ 30.4 $ 31.5 $ 32.7 $ 33.8 $ 35.0 $ 36.2 $ 37.5 $ 29.1 Actual Sales Tax Revenue $ 6.6 $ 27.8 $ 29.3 $ 30.0 $ 31.7 $ 34.6 $ 34.3 $ 40.8 $ 45.4 $ 49.7 $ 27.1 Marshall Plan $ 0.0 $ 5.1 $ 12.9 $ 18.3 $ 22.5 $ 24.2 $ 25.9 $ 27.2 $ 26.3 $ 31.9 $ 27.5 % Annual Use of Tax 0% 18% 44% 61% 71% 70% 76% 67% 58% 64% 101% % Cumulative Use 0% 15% 28% 39% 47% 52% 56% 58% 58% 60% 62% Bankruptcy Recovery $ 6.6 $ 22.7 $ 16.4 $ 11.8 $ 9.3 $ 10.3 $ 8.4 $ 13.6 $ 19.2 $ 17.8 $ (0.3) % Annual Use of Tax 100% 82% 56% 39% 29% 30% 24% 33% 42% 36% -1% % Cumulative Use 100% 85% 72% 61% 53% 48% 44% 42% 42% 40% 38% * FY 2023-24 compares the first three projected quarters of the year because Measure A was initially set to expire on 3/31/2024. 1276
General Fund
Service
Highlights
 REOPENED FIRE STATION 1
 Firefighting tools, furniture, and equipment, 9 firefighting positions.
 REOPENED THE FAIR OAKS LIBRARY
 IMPROVED AND MAINTAINED PARKS AND REC

CENTERS
 Including Weber Point, Pixie Woods, Van Buskirk, and
Victory Park
 ALLOWED FOR TREE & STREET

MAINTENANCE EFFORTS
 POLICE HELICOPTER AND UNMANNED AIR

SUPPORT PROGRAM
 RESUMED COST-OF-LIVING ADJUSTMENTS FOR
POLICE
 EXPANDED THE FIRE DISPATCH CENTER
 ALLOCATED $2 MILLION FOR EXPANDED YOUTH

PROGRAMMING
 RESUMED STAFF TRAINING
 IMPLEMENTED A MODERNIZED HUMAN

RESOURCES AND FINANCIAL SYSTEM
 RESTORED POSITIVE BALANCES TO INTERNAL SELF- INSURANCE FUNDS  Previously negative ($48 million!)
In addition to Law
Enforcement and
Crime Prevention
efforts…
…Measure A has made
these bankruptcy
recovery items
possible.
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Without Measure A, the City will expend its reserves by the end of FY 2027-28 and become insolvent unless significant cuts to vital city services are made.

Impact on Long-Range Financial Plan
Fund Balance without
Measure A
Fund Balance with
Measure A
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Authorized Police Officer
Positions
Authorized FTEs was reduced by
60 as of April 1, 2024.
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Authorized Number
of Positions
6/30/2023
364
1/1/2012
333
Hired
686
Retired
or Other
(295)
Other
Agencies
(207)
Failed
Academy
(153)
-
200
400
600
800
1,000
1,200 Cumulative Police Officer Retention
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Internal Performance Audit
 Internal Performance Audit performed by Moss
Adams in early FY 2023-24 at the Measure A
Advisory Committee’s request
 Performance Audit found no compliance
issues
 Audit recommended that the City could
benefit from Measure A Expenditure Guidelines
& Planning to Increase Visibility and
Transparency
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Measure A Expenditure
Guidelines
 Presented to the Measure A Citizen’s Advisory
Committee
 June 6, 2024
 Presented and Approved by City Council
 July 9, 2024
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Purpose and Benefits
Purpose:
 Understand, direct, and track uses of Measure A proceeds Benefits:
 Prescribe and Encourage eligible Measure B costs
 Identify Contingencies when savings occur
 Itemize Marshall Plan into specific items that can be adjusted to respond to changes in demand for
services, economic forecasts, Council priorities, etc.
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Priorities: Law Enforcement
and Crime Prevention - 65%

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

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

3. Recruitment and Retention Incentives

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

1. Assured Guaranty contingent payments

2. Post-bankruptcy recovery / restoration of
service

3. General City expenditures as approved by
City Council

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

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

2. Revisions will be presented to committee and
council regularly
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Future Updates to Guidelines
 Will allow the City to respond to anticipated
and/or unanticipated changes, economic
trends, demand, priorities, and fiscal health
 Revisions will be presented to the Advisory
Committee for discussion, followed by City
Council approval
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Expenditure Plan
(dollars in thousands)
Law Enforcement
and OVP, $37,844
(80%)
Assurred Guaranty
Payment, $5,927
(13%)
Victory Park Pool,
$3,000 (6%)
Fire Station No. 7, $287
(1%)
Measure A, 9214
(20%)
FY 2024-25 Expenditure Plan
As of 7/1/2024
Measure B, $37,844
(80%)
Includes $12.3 million for Recruitment,
Retention, and Wellness Efforts (Side Letter)
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Recruitment
Sworn Hiring
• Authorized: 425
• Staffing: 377
• FY '24-'25 Q1 : 15 hired/ 7 separated
• FY '24-'25 Q2: 20 hired/ 11 separated*
• 2 sworn lateraled to other agencies*
Recruiting
• Recruiting Events: 176*
• Current Recruiters: 28
• Currently In the Background Process
• 125 Officer candidates
• 21 Professional Staff candidates
* As of December 31, 2024
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Applications and Disqualifications
• * As of FY December 31, 2024
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What type of officer is Stockton PD looking for
• Must complete the application
• Must meet California Peace Officer Standards
and Training Minimum Qualifications (GC 1029,
1031, 1031.4, Commission Regulation 1950-1955
• Must pass the physical agility test
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What type of officer is Stockton PD looking for
• We Look for characteristics such as empathy, tolerance, kindness, caring, culturally competent, commitment to
service and their fellow human, ethics, good
communication, even-tempered, common sense, Lifetime
learning, and a team player.
• These characteristics are vetted out in the background process that include triage, personal history statement, primary and secondary contact interviews, employment
verification, computer voice stress analyzer (CVSA), and psychological exam administered by a doctor.
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Retention
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City of Stockton
Legislation Text
File #: 25-0049, Version: 1
DISCUSSION: POLICE SUBSTATIONS FOR WESTON RANCH AND SOUTHEAST STOCKTON

RECOMMENDATION
Discussion only; no action to be taken.

Summary
At the request of Council, this is a discussion item for the City Council to discuss and provide direction regarding the installation of Police Substations in Weston Ranch and Southeast Stockton.

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City of Stockton
Legislation Text
File #: 24-1281, Version: 1
PUBLIC HEARING FOR THE PROPOSED USE OF THE 2024 EDWARD BYRNE MEMORIAL

JUSTICE ASSISTANCE GRANT

RECOMMENDATION
It is recommended, at the conclusion of the public hearing, that the City Council adopt a resolution:

1. Authorizing the City Manager, or designee, to accept the Edward Byrne Memorial Justice Assistance Grant (JAG) 2024 allocation in the amount of $331,163;

2. Authorizing the City Manager, or designee, to Approve Amendment No. 13 to the Interlocal Memorandum of Understanding between the City of Stockton (City) and County of San Joaquin (County) to reallocate the 2024 JAG funds;

3. Amending the Fiscal Year 2024-25 Annual Budget to increase the Police Grants & Special Programs revenue and expenditure appropriation by $331,163; and

4. Authorizing the City Manager, or designee, to execute all grant award documents as required by the U.S. Department of Justice Bureau of Justice Assistance and accept applicable terms and conditions.

Summary
The U.S. Department of Justice (DOJ) has announced the 2024 funding allocation for the JAG program. This year, the City and County are eligible to receive a combined allocation of $331,163, with the City’s allocation at $273,109 and the County’s allocation at $58,054. Due to this disparate allocation, wherein the County’s allocation is significantly smaller than the City’s, the granting agency mandates that the City and County meet and agree to a redistribution of funds. Since 2011, the City and County have reallocated this funding per the terms of an Interlocal Memorandum of Understanding (MOU) and the operation of a county-wide Firearms Reduction Consortium (FRC). On September 4, 2024, representatives from County agencies and the Stockton Police Department (SPD) agreed to amend the MOU to reallocate the 2024 JAG program funding, as indicated in the proposed Amendment No. 13 to the MOU (Exhibit 1 of the Resolution). The City’s revised allocation will be $168,893, and the County’s revised allocation will be $162,270. No other changes to the MOU are recommended at this time. The granting agency requires a public hearing to be held to allow for public comment and testimony on the proposed use of funds.

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File #: 24-1281, Version: 1

DISCUSSION
Background
The City has received JAG program funds since 1997, with the specific goal of helping local government combat crime and improve public safety.

Eight specific law enforcement-related categories of programs are eligible for the use of these grant funds:

A. Law enforcement
B. Prosecution and court
C. Prevention and education
D. Corrections and community corrections
E. Drug treatment
F. Planning, evaluation, and technology improvement
G. Crime victim and witness
H. Mental health and related law enforcement and corrections In 2011, following the approval of an MOU concerning the City’s and the County’s use of these grant funds, City staff and representatives from the San Joaquin County Sheriff’s Office, Probation Department, and District Attorney’s Office agreed to establish an FRC due to the prevalence of illegal firearms in the greater-Stockton area. As the City and County continue to demonstrate prudent financial decision-making amidst sworn staffing shortages, a concentrated effort to reduce firearms would be impossible without grant funded partnerships.

Amendments No. 2 through 12 to the MOU have been approved to set each year’s allocation of funds between the grantees based on the allocations provided through the U.S. Department of Justice and for the purpose of continuing to operate the FRC.

Present Situation
The JAG program is allocated based on a formula of population and violent crime rate. Cities receiving a formula allocation larger than their County (referred to as disparate status) can modify the formula allocation to accommodate the jurisdiction’s particular needs. Grant guidelines mandate that the City and County participate in a joint planning process and agree on a final funding split.

Reallocating the disparate formula allows the City to contribute more towards its share of the high cost of services placed on the County District Attorney, the County Jail, and the County Probation Department.

The FRC provides funding for:

1. Overtime staffing costs for the San Joaquin County Sheriff’s Office, Probation Department, and the SPD to fund at least four proactive firearm missions each year;

2. A portion of a Deputy District Attorney assigned to vertically prosecute persons determined to be associated with illegal guns; and
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File #: 24-1281, Version: 1

3. Long-term surveillance, including registration of phone lines and data retrieval on phones confiscated as evidence.

In addition to the four firearm missions conducted each year, the Integrated Ballistic Identification Systems (IBIS) equipment is available for use during any firearm investigation by the SPD, San Joaquin County Sheriff’s Office, and the surrounding region as time permits. Current and future uses of the IBIS equipment are coordinated through the FRC, other regional partners, and with federal agencies such as the Bureau of Alcohol, Tobacco, Firearms, and Explosives; Federal Bureau of Investigation; and the U.S. Department of Justice.

As part of the grant application, the City and County must agree to distribute the funds and execute an amended MOU outlining the agreed-upon funding split and other provisions associated with grant administration. For 2024, the purpose and use of the funds remain the same; therefore, the straightforward Amendment 13 to the existing MOU outlining the change in the allocation amounts for the upcoming fiscal year is proposed.

Included in Amendment 13 is the Joint Spending Plan, entitled "Edward Byrne Memorial - Justice Assistance Grant Program 2024 Funding Recommendations." The plan for 2024 follows the same funding strategy set forth in prior years, with the City allocating its share of $71,415 to fund long-term surveillance software, including data retrieval for phones confiscated as evidence, and overtime costs associated with the joint FRC missions. The County will spend its share of $162,270 on overtime costs associated with joint FRC missions and firearms prosecution.

Publication
The Notice for this public hearing will be published in The Record on January 10, 2025.

FINANCIAL SUMMARY
The combined 2024 JAG allocation of $331,163 for the City and County must be used within fortyeight (48) months. The grant program does not require a local funding match. Revenue and expenditures will require an increase in appropriation to the Fiscal Year 2024-25 Police’s Special Grants Fund Budget:
• Revenue appropriation of $331,163 to the 2024 JAG grant in the Police’s Special Grants fund, Reimbursements, PD Grants Division.
• Expenditure appropriation of $331,163 to the 2024 JAG grant in the Police’s Special Grants fund, Reimbursements, PD Grants Division, with $162,270 allocated to the County and the remaining $168,893 to the City. Funding will be appropriated upon approval from the granting agency.

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Resolution No.

STOCKTON CITY COUNCIL
RESOLUTION ACCEPTING THE 2024 EDWARD BYRNE MEMORIAL JUSTICE ASSISTANCE GRANT ALLOCATION IN THE AMOUNT OF $331,163; APPROVING AMENDMENT NO. 13 TO THE INTERLOCAL MEMORANDUM OF
UNDERSTANDING TO REALLOCATE FUNDS; AMENDING THE FISCAL YEAR 2024-25 ANNUAL BUDGET; AND AUTHORIZING THE CITY MANAGER TO

EXECUTE ALL REQUIRED GRANT AWARD DOCUMENTS AND ACCEPT

APPLICABLE TERMS AND CONDITIONS
The City of Stockton (City) has participated in the U.S. Department of Justice Assistance Grant Programs for over 25 years and desires to participate in the 2024 Justice Assistance Grant Program; and
The City and San Joaquin County (County) are eligible to receive a combined allocation of $331,163 (the City's allocation is $273,109) in Justice Assistance Grant funds based upon a federal formula established by Congress to local governments across the nation to enhance the level of public safety in the local community; and The disparate allocation provision of the Justice Assistance Grant Program requires the City and County to participate in a joint planning process to reallocate the formula-based allocation as needed; and
On September 4, 2024 the County and the City staff agreed to recommend reallocating funds to continue support for the Firearm Reduction Consortium; and The revised allocation for the 2024 Justice Assistance Grant funds is set forth in Attachment A of Exhibit 1, the “Edward Byrne Memorial Justice Assistance Grant Program 2024 Funding Recommendations”; and
In accordance with the Justice Assistance Grant Program requirements, the proposed use of funds for the 2024 Justice Assistance Grant will be presented at a duly noticed public hearing to be held on January 21, 2025; now, therefore,

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

1. The City Manager, or designee, is hereby authorized to accept the 2024 Edward J. Byrne Memorial Justice Assistance Grant allocation in the amount of $331,163.

2. Amendment No. 13 to the Interlocal Memorandum of Understanding between the City of Stockton and San Joaquin County to reallocate the 2024 JAG funds, as set forth in Exhibit 1 and incorporated herein, is approved.
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3. The recommended use of 2024 grant funds, as set forth in Attachment A to Exhibit 1, is hereby approved and adopted.

4. The City Manager is hereby authorized to execute and submit all documents, including, without limitation, agreements, amendments with the granting agency, and payment requests in compliance with Justice Assistance Grant Program requirements

5. Upon receipt of the fully executed Justice Assistance Grant Agreement, the City Manager is hereby authorized to make any and all appropriations, transfers of funds, or expenditures as necessary to carry out the purpose and intent of this resolution, for the Police Grants and Special Programs 2024-25 Justice Assistance Grant.

6. The City recognizes any liability arising out of the performance of the Justice Assistance Grant Award Agreement, including civil court actions for damages, shall be the responsibility of the grant recipient and the authorizing agency whose actions gave rise to the liability.

7. Grant funds received hereunder shall not be used to supplant ongoing law enforcement expenditures

8. Any personnel positions approved for the funding under this proposal shall be filled without unnecessary delay and shall not be subject to local hiring freezes.

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

PASSED, APPROVED, and ADOPTED January 21, 2025__.

CHRISTINA FUGAZI
Mayor of the City of Stockton
ATTEST:

KATHERINE ROLAND, CMC, CPMC
City Clerk of the City of Stockton
1300
EXHIBIT 1
1 AMENDMENT NO. 13 TO THE

INTERLOCAL MEMORANDUM OF UNDERSTANDING

BETWEEN THE CITY OF STOCKTON AND

COUNTY OF SAN JOAQUIN FOR THE

EDWARD BYRNE MEMORIAL JUSTICE ASSISTANCE GRANT

PROGRAM AWARD
This Amendment No. 13 to the Interlocal Memorandum of Understanding Between the City of Stockton and County of San Joaquin for the Edward Byrne Memorial Justice Assistance Grant (JAG) Program Award (MOU) is made and entered into on , between the City of Stockton, California, a municipal corporation (lead agency for funding distribution) acting by its governing body, the Stockton City Council (“STOCKTON”), and the County of San Joaquin, California, acting by its governing body, the San Joaquin County Board of Supervisors (“COUNTY”) (collectively referred to as “RECIPIENTS”).

RECITALS
WHEREAS, RECIPIENTS agreed that the intent of the MOU was to make every effort in creating and sustaining a Firearms Reduction Consortium program during federal fiscal years 2011, 2012, and 2013, in accordance with the Edward Byrne Memorial Justice Assistance Grant program award; and
WHEREAS, RECIPIENTS agreed to extend the Firearms Reduction Consortium program during the additional federal fiscal years of 2014, 2015, 2016, in accordance with the Edward Byrne Memorial Justice Assistance Grant program award; and WHEREAS, RECIPIENTS agreed to extend the Firearms Reduction Consortium program during the additional federal fiscal years of 2017, 2018, 2019, in accordance with the Edward Byrne Memorial Justice Assistance Grant program award; and WHEREAS, RECIPIENTS agreed to extend the Firearms Reduction Consortium program during the additional federal fiscal years of 2020, 2021, and 2022, in accordance with the Edward Byrne Memorial Justice Assistance Grant program award; and WHEREAS, RECIPIENTS agreed to extend the Firearms Reduction Consortium program during the additional federal fiscal years of 2023, 2024, and 2025, in accordance with the Edward Byrne Memorial Justice Assistance Grant program award; and WHEREAS, for federal fiscal year 2024, STOCKTON will distribute the proceeds of the Edward Byrne Memorial Justice Assistance Grant program award for the Recipient programs as identified in Attachment A;
NOW THEREFORE, RECIPIENTS agree as follows:
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EXHIBIT 1
2 1. The allocation of Edward Byrne Memorial Justice Assistance Grant (JAG) funds for federal fiscal year 2024 shall be distributed as set forth in Attachment A.

2. All other provisions of the MOU remain the same.

CITY OF STOCKTON COUNTY OF SAN JOAQUIN

HARRY BLACK SANDY REGALO

CITY MANAGER COUNTY ADMINISTRATOR

APPROVED AS TO FORM APPROVED AS TO FORM
JOHN R. MULROY

DEPUTY CITY ATTORNEY COUNTY COUNSEL
ATTEST

KATHERINE ROLAND, CMC, CPMC

CITY CLERK OF THE CITY OF STOCKTON
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EXHIBIT 1
3 ATTACHMENT A
Edward Byrne Memorial – Justice Assistance Grant Program 2024 Funding Recommendations
Firearms Reduction Consortium
Proposed
Agency JAG Funds
County of San Joaquin
Probation Department
Gun enforcement program overtime cost $ 41,054
District Attorney’s Office
Gun Prosecution Program $ 82,113
Sheriff’s Office
Gun enforcement program overtime cost $ 33,103
Sub-Total County $ 162,270
City of Stockton
Police Department
Gun enforcement program overtime cost $ 86,665
Investigations software $ 127,710
Sub-Total Stockton $ 168,893
Total Recommended Funding $ 331,163
2024 JAG Allocation (formula based)
Eligible JAG
Agency Allocation
County of San Joaquin $ 58,054
City of Stockton $ 273,109
Total Eligible Allocation $ 331,163
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City of Stockton Police Department
Edward Byrne Memorial
Justice Assistance Grant
Program
Public Hearing – January 21, 2025
Agenda Item 16.1
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Background
• Firearms Reduction Consortium
• Established in 2011
• Annual Public Hearing
• Approve funding split
• Report of Annual Activity ‐ 2024
• 4 joint agency missions
• Evidence investigations supplies & surveillance
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Enforcement Missions
TRAFFIC STOPS 10 TRAFFIC CITATIONS 1
FELONY ARRESTS 7 MISDEMEANOR ARRESTS 0
FELONY WARRANT ARRESTS 1 MISDEMEANOR WARRANT ARRESTS 1
PAROLE SEARCHES 0 PROBATION SEARCHES 29
FIELD INTERVIEWS 8 VEHICLES IMPOUNDED 0
FIREARMS CONFISCATED 11
TOTAL NUMBER OF ACTIONS COMPLETED 68
6 joint agency missions accomplished, using726.30 overtime hours, resulting in 68 actions 1306
Firearms Unit Statistics
Category 2022 2023IBIS Entries 1552 1242IBIS “High 495 556 Confidence”matchesCrime involved 677 697
guns tested
• Integrated Ballistic Identification System (IBIS)
entries made by SPD’s National Integrated Ballistic Information Network (NIBIN) Technicians • High Confidence correlations made by trained
SPD NIBIN Technicians
• High Confidence‐ When a technician determines evidence entered is linked to other crime(s) and/or crime gun that was recovered. High Confidences are used for investigative purposes. • Crime involved guns recovered by SPD are fired for testing and entry into the IBIS system • Hits are confirmed by DOJ when needed for
court as SPD currently has no contract
Firearms Examiner
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Financial Summary
Proposed
Reallocation
Formula
Allocation Agency
City of Stockton $273,109 $168,893
San Joaquin County $58,054 $162,270Total $331,163 $331,163 • Each year, the formula allocation of funding is set by Congress.• Each year, the City and County meet and propose a mutually agreed upon reallocation of funds based on need to support services. 1308
Recommendation
•Approve Amendment No. 13 to the Interlocal
Memorandum of Understanding
•Approve the Justice Assistance Grant 2024
Funding Recommendations for
a total amount of
$331,163
•Approve the appropriation of grant funds•Amend the FY 2024 ‐25 Annual Budget to increase
the Police Grants
& Special Programs budget
•Authorize the City Manager to execute all grant
award documents
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City of Stockton
Legislation Text
File #: 24-1292, Version: 1

CONTINUED - 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)

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.

On December 3, 2024, the City Council was scheduled to hold a public hearing on the filed appeal.

As a result of the applicant’s inability to attend the public hearing, this item was continued to the next available Council meeting date.

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.

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On March 1, 2022, the City Council adopted Ordinance 2022-03-01-1601, amendments included:
· Amending business license payment dates
· 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 City of Stockton Page 2 of 8 Printed on 1/16/2025
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File #: 24-1292, Version: 1
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.

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) A public hearing for said appeal was scheduled for the December 3, 2024 City Council meeting.

However, due to the applicant’s inability to attend the public hearing, the appeal was continued to the next available Council meeting date.

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 City of Stockton Page 3 of 8 Printed on 1/16/2025
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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.

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 City of Stockton Page 4 of 8 Printed on 1/16/2025
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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.

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.

1. 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.

2. 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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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 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.

3. 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.

4. 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 City of Stockton Page 6 of 8 Printed on 1/16/2025
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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.

5. 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.

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.

6. 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, well-planned, 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 January 17, 2025. 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. 2024-09-12-0502 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 1318
ATTACHMENT B 1319
ATTACHMENT B 1320
ATTACHMENT B 1321
ATTACHMENT B 1322
ATTACHMENT B 1323
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 1324
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 1325
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 1326
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 1327
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 1328
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 1329
ATTACHMENT F 1330
ATTACHMENT F 1331

ATTACHMENT G
1332

ATTACHMENT G
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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 December 3, 2024, the City Council was scheduled to convene a public regarding the appeal of the Planning Commission’s decision. The hearing item was continued to the next available City Council meeting date, since the applicant was unavailable to attend the meeting; and
On January 11, 2025, a public notice was published in The Record and public notices were sent to property owners within a 300-foot boundary from the project site property lines; and
On January 21, 2025, the City Council convened a public hearing regarding the appeal of the Planning Commission decision.; now, therefore, //
//
//
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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

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.
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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 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.

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.

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. 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 1336
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 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. 1337

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 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.

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

PASSED, APPROVED, and ADOPTED: January 21, 2025 .

CHRISTINA FUGAZI
Mayor of the City of Stockton
ATTEST:

KATHERINE ROLAND, CMC, CPMC
City Clerk of the City of Stockton
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EXHIBIT 1
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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 16.2
City Council Meeting
January 21, 2025
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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.
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Neighborhood Context Map
300’ Map 600’ Map
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Existing Cannabis Business Locations
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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 1349
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. 1350

City Council and Concurrent AuthoritiesJanuary 21, 2025

City Council and Concurrent Authorities
January 21, 2025