Agenda packet — City Council and Concurrent Authorities, September 23, 2025 (part 1 of 5)

City Council and Concurrent Authorities
City of Stockton
Meeting Agenda - Final
City Council and
Concurrent Authorities
Christina Fugazi, Mayor/Chair (At Large)
Jason Lee, Vice Mayor (District 6)
Michele Padilla (District 1)
Mariela Ponce (District 2)
Michael Blower (District 3)
Mario Enríquez (District 4)
Brando Villapudua (District 5)
Council Chamber, City Hall, 425 N. El Dorado
Street, Stockton CA
Tuesday, September 23, 2025 3:30 PM
Closed Session 3:30 PM :: Regular Session 5:30 PM

1. CLOSED SESSION CALL TO ORDER/ROLL CALL

2. ADDITIONS TO CLOSED SESSION AGENDA

3. ANNOUNCEMENT OF CLOSED SESSION

3.1 25-0925 CONFERENCE WITH LABOR NEGOTIATOR
Recommended Action: Agency Designated Representative: Acting City Manager; Deputy City Manager Chad Reed; City Attorney; Director of Human Resources; Assistant Director of Human Resources; Jasmine Pantoja, Supervising HR Analyst; Brandon Sepulveda, Interim Budget Officer; and Legal Counsel, Dania Torres Wong of Sloan Sakai
Employee Organizations: Unrepresented Units, Stockton City Employees' Association, Operating Engineer's Local 3, Mid-Management/Supervisory Level Unit, Unrepresented Management/Confidential, Law Department, Stockton Police Management Association, Stockton Firefighters Local 456 International Association of Firefighters, Stockton Fire Management, Stockton Police Officers' Association (SPOA)
This Closed Session is authorized pursuant to section 54957.6(a) of the Government Code.

Department: Human Resources

3.2 25-1057 CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED

LITIGATION
Number of Cases: One potential case
Significant exposure to litigation pursuant to paragraph (2) of subdivision (d) of Government code section 54956.9.

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Department: City Attorney

3.3 25-1065 CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED

LITIGATION
Number of Cases: One potential case
Significant exposure to litigation pursuant to paragraph (2) of subdivision (d) of Government code section 54956.9.

Department: City Attorney

4. CLOSED SESSION PUBLIC COMMENT*

5. RECESS TO CLOSED SESSION

6. REGULAR SESSION CALL TO ORDER/ROLL CALL

7. INVOCATION/PLEDGE TO FLAG

8. REPORT OF ACTION TAKEN IN CLOSED SESSION

9. ADDITIONS TO REGULAR SESSION AGENDA***

10. RECOGNITIONS, ANNOUNCEMENTS, OR REPORTS

10.1 25-1035 PROCLAMATION: CALIFORNIA STATE CODE ENFORCEMENT OFFICER APPRECIATION WEEK - OCTOBER 5-11, 2025
Department: None

10.2 25-1093 PROCLAMATION: SUICIDE PREVENTION MONTH
Department: None

10.3 25-1094 PROCLAMATION: HISPANIC HERITAGE MONTH
Department: None

11. PUBLIC COMMENTS* – MATTERS NOT ON THE AGENDA

12. CONSENT AGENDA

12.1 25-1060 ACCEPT BY MOTION PROPOSITION 111 APPROPRIATION LIMIT (GANN LIMIT), CORE REVENUES AUDIT, MEASURE M STRONG

COMMUNITIES TAX FUND AUDIT, AND MEASURE W PUBLIC
SAFETY TAX FUND AUDIT FOR THE YEAR ENDED JUNE 30, 2024
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Recommended Action: RECOMMENDATION
It is recommended that the City Council accept by motion the Proposition 111 Appropriation Limit (GANN Limit) Agreed-Upon Procedures Report, the Agreed-Upon Procedures Applied to Core Revenues Report, the Measure M Strong Communities Tax Fund Audit, and the Measure W Public Safety Tax Fund Audit for the year ended June 30, 2024.

Department: Administrative Services
Attachment A – 2024 Proposition 111 Appropriation Limit (GANN Limit) Attachment B – 2024 Report of Agreed-Upon Procedures
Attachment C – 2024 Measure M Strong Communities Tax Fund Audit Attachment D – 2024 Measure W Public Safety Tax Fund Audit Attachments:

12.2 25-1062 ACCEPT BY MOTION THE INDEPENDENT ACCOUNTANT’S

REPORT ON APPLYING AGREED-UPON PROCEDURES OF

MEASURES A AND B REVENUES AND EXPENDITURES FOR YEAR
ENDED JUNE 30, 2024
Recommended Action: RECOMMENDATION
It is recommended that the City Council accept by motion the Independent Accountant's Report on applying agreed-upon procedures of Measures A and B Revenues and Expenditures for Year Ended June 30, 2024 (Attachment A).

Department: Administrative Services
Attachments: Attachment A - Measure A Independent Accountants Report

12.3 25-1078 ADOPTION OF PROPOSED AMENDMENT TO CHAPTER 3.06 OF

THE COUNCIL POLICY MANUAL - AD HOC COMMITTEES
Recommended Action: RECOMMENDATION
It is recommended that the City Council adopt the proposed amendment to Chapter 3.06 of the Council Policy Manual regarding ad hoc committees.

Department: City Attorney
Attachment A- Ad Hoc (redline)
Proposed Resolution
Exhibit 1
Attachments:

12.4 25-1080 ADOPTION OF A RESOLUTION WAIVING ANY PRIVILEGES APPLICABLE TO ANY EMAILS FROM THE CITY ATTORNEY’S
OFFICE TO THE CITY COUNCIL ON JULY 30, 2025, AT
APPROXIMATELY 1:13 PM
Recommended Action: RECOMMENDATION
Consider adopting a resolution to waive any privileges applicable to any emails and the contents thereof from the city attorney's office to the city council on July 30, 2025, at approximately 1:13 pm.

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Department: City Attorney
Attachments: Proposed Resolution

12.5 25-1021 APPOINTMENT TO WATER ADVISORY GROUP
Recommended Action: RECOMMENDATION
It is recommended that the City Council adopt a resolution authorizing an appointment to the Council Water Committee's Water Advisory Group (WAG) of Katrina Bambula-Santos for a term commencing immediately and expiring January 31, 2027
Department: City Clerk
Attachment A - Redacted Application
Proposed Resolution
Attachments:

12.6 25-1059 APPROVAL OF CITY COUNCIL MINUTES
Recommended Action: RECOMMENDATION
Approve the minutes from the City Council meetings of August 26, 2025 and September 9, 2025
Department: City Clerk
Attachment A - 2025-08-26
Attachment B - 2025-09-09
Attachments:

12.7 25-0932 RESOLUTION AUTHORIZING THE GRANT OF EASEMENTS TO

UNION PACIFIC RAILROAD COMPANY FOR THE STOCKTON

DIAMOND GRADE SEPARATION PROJECT
Recommended Action: RECOMMENDATION
It is recommended that the City Council adopt a resolution to:

1. Authorize the grant of easements to Union Pacific Railroad Company for the Stockton Diamond Grade Separation Project, for the areas depicted in Exhibits 1, 2, 3, 4, and 5 of the resolution;

2. Authorize the filing of Notice of Exemption No. 46-25 under the California Environmental Quality Act (CEQA) for the grant of easements to Union Pacific Railroad Company; and

3. Authorize the City Manager, or designee, to take whatever actions are necessary and appropriate to carry out the purposes and intent of the resolution.

Department: Economic Development
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Attachment A - Vicinity Map
Attachment B - Aerial Map
Proposed Resolution
Exhibit 1 - Main Street Crossing Plat & Legal
Exhibit 2 - Market Street Crossing Plat & Legal
Exhibit 3 - Lafayette Street Crossing Plat & Legal
Exhibit 4 - Hazelton Avenue Crossing Plat & Legal
Exhibit 5 - DR MLK, JR Boulevard Crossing Plat & Legal
Exhibit 6 - NOE46-25
Attachments:

12.8 25-0741 ADOPT A RESOLUTION DECLARING A PORTION OF REAL PROPERTY LOCATED AT 6461 BROOKSIDE ROAD AS EXEMPT

SURPLUS LAND UNDER THE SURPLUS LAND ACT
Recommended Action: RECOMMENDATION
It is recommended that the City Council adopt a resolution:

1. Declaring a portion of real property located at 6461 Brookside Road (APN 071-140-17), included as Exhibit 1 and Exhibit 2 to the Resolution, as exempt surplus land that is not necessary for the City's use pursuant to the Surplus Land Act;

2. Authorizing City staff to proceed with negotiations regarding the disposition of the exempt surplus land;

3. Finding that the designation of the subject property as exempt surplus land does not have the potential for creating a significant effect on the environment and is therefore exempt from further review under Section 15061(B)(3) of the California Environmental Quality Act (CEQA);

4. Authorizing the City Manager, or designee, to take all the necessary and appropriate actions to carry out the purpose and intent of this resolution.

Department: Economic Development
Attachment A - Vicinity Map
Attachment B - Aerial Map
Attachment C - Administrative Directive HRD-02
Proposed Resolution
Exhibit 1
EXhibit 2
Attachments:

12.9 25-0779 ACCEPT THE ANNUAL HEALTH BENEFITS REPORT AND ADOPT THE MONTHLY PREMIUM RATES FOR THE CITY’S 2026

EMPLOYEE HEALTH PLANS
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Recommended Action: RECOMMENDATION
It is recommended that the City Council approve a motion to:

1. Accept the Annual Health Benefits Report for the City's medical, dental, and vision plans.

2. Approve the recommended monthly premium rates for the City's 2026 employee health plans.

3. Authorize the City Manager or their designee to take the necessary and appropriate actions to carry out the purpose and intent of this motion.

Department: Human Resources
Attachment A - 2026 Annual Health Benefits Report
Attachment B - 2026 Health Premium Rates
Attachments:

12.10 25-0937 AUTHORIZE THE CITY MANAGER TO APPROVE A PROFESSIONAL SERVICES AGREEMENT WITH GEORGE HILLS AS THE CITY’S
THIRD-PARTY ADMINISTRATOR (TPA) FOR THE CITY’S

SELF-INSURED GENERAL LIABILITY PROGRAM
Recommended Action: RECOMMENDATION
It is recommended that the City Council approve a motion to:

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

2. Approve entering into a Professional Services agreement with George Hills, Third-Party Administrator (TPA), to administer the City's General Liability program.

3. Award a Professional Services Agreement to George Hills for a term of five (5) years with the option of two (2) one-year extensions. The five-year contract amount will not exceed $2,504,768.64 for the term of the agreement.

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

Department: Human Resources
Attachment A - George Hills Contract 2025
Attachment B - Sedgwick Termination Letter
Attachments:

12.11 25-0661 APPROVE A CONTRACT WITH SIMPLE THERAPY TO PROVIDE

EMPLOYEE ASSISTANCE PROGRAM SERVICES
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Recommended Action: RECOMMENDATION
It is recommended that the City Council approve a motion to:

1. Authorize the City Manager, or designee, to execute a three (3) year agreement with an option to extend for two (2) additional (1) one-year terms between the City of Stockton (City) and Simple Therapy to provide Employee Assistance Program Services not to exceed $186,000 over the term of the contract (Attachment A); and

2. Approve findings which support and justify an exception to the competitive bidding process pursuant to Stockton Municipal Code Section

3.68.070(A)(3) where the City held a competitive Request for Proposals.

It is further recommended that the City Manager is hereby authorized and directed to make any and all expenditures and appropriations on behalf of the City as appropriate and necessary to carry out the purpose and intent of this motion.

Department: Human Resources
Attachments: Attachment A – Contract with Simple Therapy

12.12 25-0974 ADOPT A RESOLUTION TO AWARD A CONSTRUCTION CONTRACT TO BOCKMON & WOODY ELECTRIC CO., INC. FOR

THE ALEXANDRIA & FOURTEEN MILE STORM PUMP STATION

ELECTRICAL UPGRADES
Recommended Action: RECOMMENDATION
It is recommended that the City Council adopt a resolution to:

1. Approve the filing of Notice of Exemption No. NOE36-25 under the California Environmental Quality Act (CEQA) for the Alexandria & Fourteen Mile Storm Station Electrical Upgrades (Exhibit 1 to the Resolution).

2. Approve the project Plans and Specifications for the Alexandria & Fourteen Mile Storm Pump Station Electrical Upgrades (Exhibit 2 to the Resolution).

3. Transfer $381,497 from the Storm Drain Systems Emergency Project No. US24005 to the Alexandria & Fourteen Mile Storm Pump Station Electrical Upgrades Project No. US24001.

4. Award a $381,497 Construction Contract to Bockmon & Woody Electric Co., Inc. of Stockton, CA, for the Alexandria & Fourteen Mile Storm Pump Station Electrical Upgrades (Exhibit 3 to the Resolution).

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

Department: Municipal Utilities
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Proposed Resolution
Exhibit 1 - Notice of Exemption
Exhibit 2 - Plans and Specs
Exhibit 3 - Construction Contract
Attachments:

12.13 25-1015 ADOPT A RESOLUTION OPPOSING THE PROPOSED DELTA

CONVEYANCE / DELTA TUNNELS PROJECT
Recommended Action: RECOMMENDATION
It is recommended that the City Council adopt a resolution formally opposing the State of California Department of Water Resources' proposed Delta Conveyance Project ("Delta Tunnel").

Department: Office of the Mayor
Attachments: Proposed Resolution

12.14 25-0976 APPROVE MOTION TO EXECUTE AN AMENDMENT TO THE

STANDARD AGREEMENT WITH HARD LUCK ANIMAL WELFARE
ADVOCATES IN AN AMOUNT NOT TO EXCEED $789,389
Recommended Action: RECOMMENDATION
It is recommended that the City Council approve a motion to:

1. Authorize the City Manager, or designee, to approve Standard Agreement Amendment No. 3 with Hard Luck Animal Welfare Advocates, for on-site veterinarian service for a total contract amount not to exceed $789,389

2. Approve findings which support and justify an exception to the competitive bidding process pursuant to Stockton Municipal Code section

3.68.070(A)(3), where the City held a competitive Request for Proposals.

3. It is further recommended that the City Manager, or designee, is hereby authorized and directed to make any and all expenditures and appropriations on behalf of the City as appropriate and necessary to carry out the purpose and intent of this motion.

Department: Police
Attachments: Attachment A - Amendment 3 Hard Luck

12.15 25-1001 ADOPT RESOLUTION TO AWARD A PROFESSIONAL SERVICES

CONTRACT FOR THE CITYWIDE STREETLIGHT ASSESSMENT

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

1. Transfer funds in the amount of $227,000 from the Light Up Stockton, Project No. WD25046, to the Citywide Streetlight Assessment, Project No. WT25041.

2. Transfer funds in the amount of $25,000 from the Repair Streetlights Out, Project No. WD25047, to the Citywide Streetlight Assessment, Project No. WT25041.

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

4. Award a Professional Services Contract to Evari Consulting, Inc. of San Diego, CA, in the amount of $249,976 for the Citywide Streetlight Assessment, Project No. WT25041.

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

Department: Public Works
Attachment A - Vicinity Map
Proposed Resolution
Exhibit 1 - Professional Services Contract
Attachments:

12.16 25-0339 ADOPT RESOLUTION TO AUTHORIZE THE LOCAL STREET RESURFACING PROGRAM FISCAL YEAR 2024-25 SB1 - SLURRY

SEAL PROJECT
Recommended Action: RECOMMENDATION
It is recommended that the City Council adopt a resolution to:

1. Approve Notice of Exemption No. NOE42-25 under the California Environmental Quality Act for the Local Street Resurfacing Program Fiscal Year 2024-25 SB1 - Slurry Seal, Project No. WD25003.

2. Approve the plans and specifications for the Local Street Resurfacing Program Fiscal Year 2024-25 SB1 - Slurry Seal, Project No. WD25003.

3. Award a Construction Contract in the amount of $819,325 to VSS International, Inc. of West Sacramento, CA, for the Local Street Resurfacing Program Fiscal Year 2024-25 SB1 - Slurry Seal, Project No.

WD25003.

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

Department: Public Works
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Attachment A - Vicinity Map
Attachment B - Location List
Proposed Resolution
Exhibit 1 - Notice of Exemption
Exhibit 2 - Construction Contract
Attachments:

12.17 25-0819 APPROVE MOTION TO AUTHORIZE CONTRACT CHANGE ORDER NO. 3 FOR DEBRIS REMOVAL AND PICKUP

PROJECT
Recommended Action: RECOMMENDATION
It is recommended that the City Council approve a motion to authorize Contract Change Order No. 3, in the amount of $360,000, with Stockton 209 Cares of Stockton, CA, for the Debris Removal and Pickup, Project No. OM-22-021.

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

Department: Public Works
Attachments: Attachment A - CCO No. 3 with Stockton 209 Cares

12.18 25-0838 RESOLUTION TO DESIGNATE ADDITIONAL STOP CONTROLLED INTERSECTION AND AMEND THE “STOP CONTROLLED
INTERSECTION SCHEDULE”
Recommended Action: RECOMMENDATION
It is recommended that the City Council adopt a resolution to amend the "Stop Controlled Intersection Schedule" pursuant to Stockton Municipal Code section 10.04.270 as follows:

1. Add new intersection:
a. Country Club Boulevard and Wisconsin Avenue (3-way stop control).

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

Department: Public Works
Attachment A - Country Club Blvd - Wisconsin Ave
Proposed Resolution
Exhibit 1 - Stop Controlled Intersection Schedule
Attachments:

12.19 25-0854 ADOPT RESOLUTION TO AUTHORIZE THE ALPINE PERSHING

MENDOCINO BICYCLE-PEDESTRIAN CONNECTIVITY PROJECT
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Recommended Action: RECOMMENDATION
It is recommended that the City Council adopt a resolution to:

1. Transfer funds in the amount of $46,000 from the Grant Match, Project No. WT21016, to the Alpine Pershing Mendocino Bicycle-Pedestrian Connectivity, Project No. WT24037/ATPSB1L-5008(205).

2. Authorize staff to request the funding allocation for the design phase from the California Transportation Commission for the Alpine Pershing Mendocino Bicycle-Pedestrian Connectivity, Project No.

WT24037/ATPSB1L-5008(205).

3. Approve Notice of Exemption No. NOE34-25 under the California Environmental Quality Act for the Alpine Pershing Mendocino Bicycle-Pedestrian Connectivity, Project No.

WT24037/ATPSB1L-5008(205).

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

Department: Public Works
Attachment A - Vicinity Map
Proposed Resolution
Exhibit 1 - Notice of Exemption
Attachments:

12.20 25-0895 ADOPT RESOLUTION TO TRANSFER FUNDS AND APPROVE CONTRACT CHANGE ORDER NO. 2 FOR THE CITYWIDE

SIDEWALK REPAIR PROJECT
Recommended Action: RECOMMENDATION
It is recommended that the City Council adopt a resolution to:

1. Transfer funds in the amount of $200,000 from the Sidewalk, Curb, and Gutter Repairs Program Fiscal Year 2024-25, Project No. WD25004, to the Citywide Sidewalk Repair, Project No. WD22053.

2. Approve Contract Change Order No. 2 in the amount of $953,483.78 with United Pavement Maintenance, Inc. of Hughson, CA, for the Citywide Sidewalk Repair, Project No. WD22053.

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

Department: Public Works
Attachment A - Vicinity Map
Attachment B - Location List
Proposed Resolution
Exhibit 1 - CCO No. 2
Attachments:

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12.21 25-0912 ADOPT RESOLUTION TO AUTHORIZE THE ADA CURB RAMP

INSTALLATION PROJECT
Recommended Action: RECOMMENDATION
It is recommended that the City Council adopt a resolution to:

1. Approve Notice of Exemption No. NOE33-25 under the California Environmental Quality Act for the ADA Curb Ramp Installation, Project No.

WD24004.

2. Approve the plans and specifications for the ADA Curb Ramp Installation, Project No. WD24004.

3. Award a Construction Contract in the amount of $714,900 to Zara Construction, Inc. of Sacramento, CA, for the ADA Curb Ramp Installation, Project No. WD24004.

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

Department: Public Works
Attachment A - Location List
Attachment B - Vicinity Map
Proposed Resolution
Exhibit 1 - Notice of Exemption
Exhibit 2 - Construction Contract
Attachments:

12.22 25-0931 ADOPT RESOLUTION TO AUTHORIZE PROFESSIONAL SERVICES CONTRACT AMENDMENT NO. 3 AND APPROPRIATE FUNDS FOR

THE SAFE ROUTES TO SCHOOL SIDEWALK GAP CLOSURE
PHASE 2 PROJECT
Recommended Action: RECOMMENDATION
It is recommended that the City Council adopt a resolution to:

1. Appropriate funds in the amount of $500,000 from the Community Development Block Grant Funds to the Safe Routes to School Sidewalk Gap Closure Phase 2, Project No. WT19013/Federal Project No.

ATPSB1L-5008(187).

2. Authorize Professional Services Contract Amendment No. 3 in the amount of $410,746 with R.E.Y. Engineers, Inc. for the Safe Routes to School Sidewalk Gap Closure Phase 2, Project No. WT19013/Federal Project No. ATPSB1L-5008(187).

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

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Department: Public Works
Attachment A - Vicinity Map
Proposed Resolution
Exhibit 1 - Amendment No. 3
Attachments:

13. ADMINISTRATIVE MATTERS

14. UNFINISHED BUSINESS

15. HEARINGS**

15.1 25-1009 PUBLIC HEARING: APPROVE FOUR RESOLUTIONS AND ADOPT

AN ORDINANCE IN CONNECTION WITH PROPOSED FORMATION
OF COMMUNITY FACILITIES DISTRICT NO. 2025-1 (CANNERY

PARK EAST)
Recommended Action: RECOMMENDATION
It is recommended that City Council:

1. Approve the following four resolutions:
a) A resolution of formation establishing Community Facilities District No. 2025-1 (Cannery Park East) (the "CFD") authorizing the levy of a special tax within the CFD and establishing an appropriations limit for the CFD. b) A resolution determining the necessity to incur bonded indebtedness in an amount not to exceed $15,000,000.
c) A resolution calling for an election for the purpose of submitting the levy of the special tax and the establishment of the appropriations limit to the qualified electors of the CFD.
d) A resolution declaring the results of the election and directing the recording of a notice of special tax lien.

2. Adopt an ordinance authorizing the levy of a special tax within the CFD.

The resolutions authorize the City Manager or designee to take appropriate and necessary actions to carry out the purpose and intent of the resolutions, including entering into an acquisition agreement for the distribution of bond proceeds to pay for authorized facilities and fees for the CFD.

Department: Administrative Services
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Proposed Resolution - Formation CFD 2025-1 Cannery Park East Exhibit 1 - Rate and Method of Special Tax
Exhibit 2 - List of Authorized Facilities
Proposed Resolution - Bonded Indebtedness
Proposed Resolution- Call Elec CFD 2025-1 Cannery Park East Exhibit 1 - Official Ballot
Proposed Resolution - Decl Results
Exhibit 1 - Canvass and Stmt of Results
Proposed Ordinance
PPT - 15.1 - CFD 2025-1 Cannery Park East
Attachments:

15.2 25-0945
PUBLIC HEARING TO ACCEPT THE 2025 WATER QUALITY PUBLIC

HEALTH GOALS REPORT
Recommended Action: RECOMMENDATION
It is recommended that the City Council:

1. Conduct a Public Hearing to accept and respond to public comments on the 2025 Water Quality Public Health Goals Report (2025 Report).

2. At the conclusion of the Public Hearing, adopt a resolution accepting the 2025 Report.

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

Department: Municipal Utilities
Proposed Resolution
Exhibit 1 - 2025 Report
PPT - 15.2 - 2025 Water Quality Public Health Goals Report Attachments:

15.3 25-0867 PUBLIC HEARING: FY 2024-2025 CONSOLIDATED ANNUAL PERFORMANCE AND EVALUATION REPORT FOR THE U.S.

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

ENTITLEMENT PROGRAMS
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Recommended Action: RECOMMENDATION
It is recommended that, after the public hearing, the City Council adopt a resolution:

1. Approving the City of Stockton's Consolidated Annual Performance and Evaluation Report (CAPER) for Program Year 2024-2025;

2. Authorizing the Economic Development Department to update the CAPER to incorporate any comments received during the public review period and the public hearing;

3. Authorizing submission of the CAPER to the U.S. Department of Housing and Urban Development (HUD) and to make any technical alterations to the CAPER as directed by HUD; and

4. Authorizing the City Manager, or designee, to execute and submit all documents to the U.S. Department of Housing and Urban Development, and to take actions necessary and appropriate to carry out the purpose and intent of the resolution.

Department: Economic Development
Proposed Resolution
Exhibit 1 - Draft 2024-25 CAPER
PPT - 15.3 - FY2024-25 CAPER
Attachments:

16. NEW BUSINESS

16.1 25-1004 ACCEPT BY MOTION THE INDEPENDENT AUDIT OF THE ANNUAL

COMPREHENSIVE FINANCIAL REPORT FOR THE FISCAL YEAR
ENDED JUNE 30, 2024
Recommended Action: RECOMMENDATION
It is recommended that the City Council accept by motion the independent audit of the Annual Comprehensive Financial Report for the year ended June 30, 2024.

Department: Administrative Services
Attachment A - FY2023-24 ACFR
PPT - 16.1 - FY2023-24 ACFR
Attachments:

16.2 25-1081 PRESENTATION - OFFICE OF PUBLIC TRANSPARENCY

INFORMATION COMMUNICATION (OPTIC)
Recommended Action: RECOMMENDATION
Receive information about the Office of Public Transparency Information Communication (OPTIC). No action to be taken.

Department: City Manager
Attachments: PPT - 16.2 - Office of Public Transparency Information Communication City of Stockton Page 15 Printed on 9/18/2025
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16.3 25-1022

UPDATE ON CITY OF STOCKTON FIRE HYDRANT MAINTENANCE

PROGRAM ACTIVITIES
Recommended Action: RECOMMENDATION
Informational item only.

Summary
Presentation and discussion by the Municipal Utilities Department.

Department: Municipal Utilities
Attachments: PPT - 16.3 - Fire Hydrant Maintenance Program Activities

17. CITY MANAGER'S UPDATE

18. COUNCIL COMMENTS

19. ADJOURNMENT

INFORMATIONAL ITEMS
1 25-1006 COUNCIL COMMITTEE/BOARD AND COMMISSION MINUTES Recommended Action: RECOMMENDATION
Information item only. No action required.

Department: City Clerk
CSC 2025-07-17
LegEnv 2025-03-24
LegEnv 2025-04-28
LegEnv 2025-05-27
LegEnv 2025-06-16
LegEnv 2025-07-28
Attachments:

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CERTIFICATE OF POSTING
I declare, under penalty of perjury, that I am employed by the City of Stockton and that I caused this agenda to be posted in the City Hall notice case on September 18, 2025, in compliance with the Brown Act.

Katherine Roland, CMC, CPMC
City Clerk
By: ________________________________
Deputy
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Meeting Agenda - Final

PUBLIC COMMENTS
*Citizens may comment on any subject within the jurisdiction of the City Council/Successor Agency to the Redevelopment Agency/Public Finance Authority/Parking Authority, including items on the Agenda. The time limit for public comment is four (4) minutes and remains at the discretion of the presiding officer and changes shall be set at the start of the meeting. Speakers must submit “Request to Speak” cards to the City Clerk, and be prepared to speak when called. No speaker cards will be received after the close of the Citizen’s Comments portion of the meeting.
**Speakers should hold comments on items listed as a Hearing until the Hearing is opened.

The City of Stockton invites public comments in multiple forms. You provide your comments by using one of these methods:

1. Email - you may email your comments to [email protected]

2. Voicemail - you can leave a voice message by dialing (209) 937-8459.

3. In-Person Comments - a) Speakers must submit "request to speak cards" to the Clerk prior to the Public Comment portion of the agenda. No speaker cards will be accepted after the close of Public Comment. b) Address only issues over which the meeting body has jurisdiction. c) The time limit for public comment is at the discretion of the presiding officer and shall be set at the start of the meeting. Donating time is not authorized. d) Your time will be displayed on the speaker podium for convenience. *All written and voicemail public comments received by the Clerk's Office 90 minutes prior to the meeting start time will be forwarded to the meeting body members as correspondence and attached to the minutes. All comments received after that time will be forwarded as correspondence the following business day. Written and voicemail comments will not be read into the record.

In accordance with the Americans With Disabilities Act and California Law, it is the policy of the City of Stockton to offer its public programs, services and meetings in a manner that is readily accessible to everyone, including those with disabilities. If you are disabled and require a copy of a public hearing notice, or an agenda and/or agenda packet in an appropriate alternative format; or if you require other accommodation, please contact the Office of the City Clerk located at 425 North El Dorado Street, Stockton, California 95202 during normal business hours or by calling (209) 937-8458, at least 5 days in advance of the hearing/meeting. Advance notification within this guideline will enable the City/Agency to make reasonable arrangements to ensure accessibility.

Materials related to an item on this agenda submitted to City Council after distribution of the agenda packet are available for public inspection in the City Clerk's Office at 425 North El Dorado Street, Stockton, California 95202, during normal business hours. Such documents are also available on the City's website at www.stocktongov.com subject to staff's ability to post the documents before the meeting.

CHALLENGING CITY DECISIONS: The time limit within which to commence any lawsuit or legal challenge to any quasi-adjudicative decision made by the City is governed by Section 1094.6 of the Code of Civil Procedure, unless a shorter limitation period is specified by any other provision. Under Section 1094.6, any lawsuit or legal challenge to any quasi-adjudicative decision made by the City must be filed no later than the 90th day following the date on which such decision becomes final. Any lawsuit or legal challenge, which is not filed within that 90-day period, will be barred. If a person wishes to challenge the nature of the above section in court, they may be limited to raising only those issues they or someone else raised at the meeting described in this notice, or in written correspondence delivered to the City of Stockton, at or prior to the meeting. In addition, judicial challenge may be limited or barred where the interested party has not sought and exhausted all available administrative remedies.

Council Policy Manual Chapter 4.07 DECORUM
§ 4.07.010 Policy.
1) COUNCILMEMBERS
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Meeting Agenda - Final
The City Council will practice civility and decorum in their discussions and debate. Councilmembers will value each other's time and will preserve order and decorum. A member shall neither, by conversation or otherwise, delay or interrupt the proceedings of the Council, use personal, impertinent or slanderous remarks, nor disturb any other member while that member is speaking or refuse to obey the orders of the presiding officer or the Council, except as otherwise provided herein.

A) All Councilmembers have the opportunity to speak and agree to disagree but no Councilmember shall speak twice on any given subject unless all other Councilmembers have been given the opportunity to speak.

B) The Mayor has the affirmative duty to maintain order. The City Council will honor the role of the Mayor in maintaining order. If a Councilmember believes the Mayor is not maintaining order, the Councilmember may move that the Vice-Mayor enforce the rules of decorum and otherwise maintain order. If that motion receives a second and is approved by a Council majority, the Vice-Mayor shall enforce the rules of decorum and maintain order.

C) Any Councilmember who violates the rules repeatedly shall be sanctioned by the City Council, including, but not limited to, barring the Councilmember from further participation (other than voting) on the subject. 2) PERSONS ADDRESSING THE CITY COUNCIL
Persons addressing the Council shall not make personal, impertinent, unduly repetitive, slanderous or profane remarks to the Council, any member of the Council, City staff or the general public, nor utter loud, threatening, personal or abusive language, nor engage in any other conduct that disrupts, disturbs or otherwise unreasonably impedes the orderly conduct of the Council meeting. Any person who makes such remarks, who utters loud, threatening, personal or abusive language, who is unduly repetitious or engages in extended discussion of irrelevancies, or who engages in any disorderly conduct that disrupts, disturbs or otherwise unreasonably impedes the orderly conduct of any Council meeting shall, at the discretion of the presiding officer or a majority of the Council, be barred from further audience before the Council during that meeting. 3) ENFORCEMENT
The rules of decorum set forth above shall be enforced in the following manner:

Warning. The presiding officer shall request that a person who is breaching the rules of decorum be orderly and silent. If, after receiving a warning from the presiding officer, a person persists in disturbing the meeting, the presiding officer shall order him or her to leave the Council meeting. If such person does not remove himself or herself, the presiding officer may order any law enforcement officer who is on duty at the meeting to remove that person from the Council Chambers.
4) RULES PERTAINING TO SIGNS, OBJECTS, SYMBOLIC MATERIALS, AND FIRE SAFETY WITHIN THE

COUNCIL CHAMBERS DURING COUNCIL MEETINGS
A) Objects and symbolic materials such as signs which do not have sticks attached or otherwise create any fire or safety hazards will be allowed within the Council Chamber during Council meetings provided that they are not so large as to infringe upon the space of those in adjacent areas, and are no wider on their longest side than the audience chairs.

B) Persons with objects and symbolic materials such as signs must remain seated when displaying them except when making an oral presentation to the Council and must not raise them above shoulder level or otherwise use them to obstruct vision or passage or disturb the conduct of the Council meeting. Such materials may not be placed on or against the walls, doors or furniture or in the aisles.

C) Exits shall not be obstructed in any manner. Obstructions, including storage, shall not be placed in aisles or other exit ways. Hand carried items must be stored so that such items do not inhibit passage in aisles or other exit ways.

D) Exit ways shall not be used in any way that will present a hazardous condition.

E) Overcrowding and admittance of persons beyond the approved capacity of a place of assembly are prohibited.

F) The Fire Marshal may establish designated areas for media equipment. 5) PERSONS AUTHORIZED WITHIN RAIL
No person except City officials and City staff shall be permitted within the rail in front of the City Council dais without the express consent of the presiding officer.

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File #: 25-0925, Version: 1

CONFERENCE WITH LABOR NEGOTIATOR
Agency Designated Representative: Acting City Manager; Deputy City Manager Chad Reed; City Attorney; Director of Human Resources; Assistant Director of Human Resources; Jasmine Pantoja, Supervising HR Analyst; Brandon Sepulveda, Interim Budget Officer; and Legal Counsel, Dania Torres Wong of Sloan Sakai
Employee Organizations: Unrepresented Units, Stockton City Employees’ Association, Operating Engineer’s Local 3, Mid-Management/Supervisory Level Unit, Unrepresented Management/Confidential, Law Department, Stockton Police Management Association, Stockton Firefighters Local 456 International Association of Firefighters, Stockton Fire Management, Stockton Police Officers’ Association (SPOA)
This Closed Session is authorized pursuant to section 54957.6(a) of the Government Code.

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CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION
Number of Cases: One potential case
Significant exposure to litigation pursuant to paragraph (2) of subdivision (d) of Government code section 54956.9.

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File #: 25-1035, Version: 1
PROCLAMATION: CALIFORNIA STATE CODE ENFORCEMENT OFFICER APPRECIATION WEEK - OCTOBER 5-11, 2025
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PROCLAMATION: SUICIDE PREVENTION MONTH
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File #: 25-1094, Version: 1
PROCLAMATION: HISPANIC HERITAGE MONTH
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ACCEPT BY MOTION PROPOSITION 111 APPROPRIATION LIMIT (GANN LIMIT), CORE

REVENUES AUDIT, MEASURE M STRONG COMMUNITIES TAX FUND AUDIT, AND MEASURE W PUBLIC SAFETY TAX FUND AUDIT FOR THE YEAR ENDED JUNE 30, 2024

RECOMMENDATION
It is recommended that the City Council accept by motion the Proposition 111 Appropriation Limit (GANN Limit) Agreed-Upon Procedures Report, the Agreed-Upon Procedures Applied to Core Revenues Report, the Measure M Strong Communities Tax Fund Audit, and the Measure W Public Safety Tax Fund Audit for the year ended June 30, 2024.

Summary
Presented for the City Council’s review and acceptance are the City of Stockton’s:
· Agreed-Upon Procedures Report on Compliance with Proposition 111 Appropriation Limit (GANN Limit) for the year ended June 30, 2024 (Attachment A). The City met the requirements of the Gann Limit Calculation, Article XIII-B of the California Constitution, and the auditors found no exceptions.
· Independent Accountants’ Report of Agreed-Upon Procedures Applied to Core Revenues (Attachment B). The Agreed-Upon Procedures engagement was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. The auditors found no exceptions.
· Measure M Strong Communities Tax Fund Audit (Measure M) for the year ended June 30, 2024 (Attachment C). The City received an unmodified (clean) opinion. · Measure W Public Safety Tax Fund Audit (Measure W) on a comparative basis for the year ended June 30, 2024 (Attachment D). The City received an unmodified (clean) opinion.

DISCUSSION
Background
Proposition 111 or Gann Limit Report
State law limits appropriations made by the State and individual local governments. The limit for the growth rate of those appropriations is the percentage increase in the cost of living and the percentage increase in the State or local government's population. Each year City staff calculates the appropriation limit. The procedures performed by the auditor were to test the sufficiency of the City of Stockton Page 1 of 3 Printed on 9/18/2025
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procedures the City used to determine the Proposition 111 appropriation limit for fiscal year 2023-24.

The auditors did not discover any findings from the application of these audit procedures.

Agreed-Upon Procedures Applied to Core Revenues
The procedures performed on the City’s Core Revenues Schedule for the year ended June 30, 2024, meet the annual requirements under the Reimbursement Agreement between the City and Assured Guaranty Municipal Corporation, as stipulated in Article IV Covenants, Section 4.02(b). This Agreement entitled: “Agreed-Upon Procedures Applied to the Core Revenues,” is part of the City’s approved Bankruptcy Plan of Adjustment. The Plan wrote-down the liabilities of the Taxable Pension Obligation Bonds 2007 Series A and B and non-taxable Variable Rate Bonds Series 2007 A and B for property on Main Street.

This negotiated Agreement created an alternate liability and related payments that began on February 25, 2015. As part of the Agreement, the City agreed to make contingent General Fund payments commencing on June 1, 2018, through June 1, 2052, in the manner described in Section

2.05 of the Agreement. The calculation of potential contingent General Fund payments is made by determining actual core revenues over baseline core revenue and averaging revenue increments of three fiscal years. The City is obligated to pay an allocable share of the resulting incremental revenue to Assured Guaranty Municipal Corporation subject to the provisions of subsections (c) and (d) of Section 2.03. The City’s Long-Range Financial Plan anticipates future contingent payments from the General Fund. The actual payments depend on future revenue receipts, but the payments are estimated to be approximately $3.3 million annually for the first ten years.

Measure M Strong Communities Tax Fund
Measure M, approved by voters on November 8, 2016, authorized Ordinance No. 2016-06-07-1212 that provides for an additional one-quarter cent sales tax with proceeds to be used exclusively for library and recreation services. The City separately accounts for Measure M revenues and related expenditures. The measure requires an annual audit, which was conducted for the fiscal year ending June 30, 2024. The auditors did not report any findings, and the City received an unmodified (clean) opinion on the financial schedule of revenues, expenditures, and changes in fund balances of the Measure M Fund for the year ended June 30, 2024.

Measure W Public Safety Tax Fund
Measure W, approved by voters on November 2, 2004, authorized Ordinance No. 038-04 CS that provides for an additional one-quarter cent sales tax, the proceeds of which are used exclusively for police and fire services. The Measure W Fund is where the City separately accounts for the collection of revenues generated from this sales tax and the expenditures of these taxes. The measure approved by voters also requires an annual audit. The auditors did not report any findings, and the City received an unmodified (clean) opinion on the financial schedule of revenues, expenditures, and changes in fund balances of the Measure W Fund for the year ended June 30, 2024.

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FINANCIAL SUMMARY
There is no financial impact associated with accepting these items.

Attachment A - 2024 Proposition 111 Appropriation Limit (GANN Limit) Attachment B - 2024 Independent Accountants’ Report of Agreed-Upon Procedures Applied to Core Revenues
Attachment C - 2024 Measure M Strong Communities Tax Fund Audit Attachment D - 2024 Measure W Public Safety Tax Fund Audit City of Stockton Page 3 of 3 Printed on 9/18/2025
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29 City of Stockton
Stockton, California
Independent Accountant’s Report on
Agreed-Upon Procedures Applied to
Appropriations Limit Schedule
For the Year Ended June 30, 2024

ATTACHMENT A
30 6 Hutton Centre Drive, Suite 1200
Santa Ana, California 92707
INDEPENDENT ACCOUNTANT’S REPORT ON

APPLYING AGREED-UPON PROCEDURES
To the Honorable Mayor and the Members of City Council
of the City of Stockton
Stockton, California
We have performed the procedures enumerated below on the appropriation limit of the City of Stockton, California (the “City”) for the year ended June 30, 2024. The City’s management is responsible for the Appropriations Limit Schedule.

The City has agreed to and acknowledged that the procedures performed are appropriate to meet the intended purpose in meeting the requirements of Section 1.5 of Article XIII-B of the California Constitution, which was agreed by the City and the League of California Cities (as presented in the publication entitled Agreed-upon Procedures Applied to the Appropriations Limitation Prescribed by Article XIII-B of the California Constitution). This report may not be suitable for any other purpose. The procedures performed may not address all the items of interest to a user of this report and may not meet the needs of all users of this report and, as such, users are responsible for determining whether the procedures performed are appropriate for their purposes.

The procedures performed and associated findings are as follows:

1. We obtained the completed worksheets used by the City to calculate its appropriations limit for the year ended June 30, 2024, and verified that the limit and annual calculation factors were adopted by resolution of the City Council. We also verified that the population and inflation options were selected by a recorded vote of the City Council.

Finding: No exceptions were noted as a result of our procedures.

2. For the accompanying Appropriations Limit Schedule, we added the prior year’s limit to the total adjustments, and agreed the resulting amount to the current year’s limit.

Finding: No exceptions were noted as a result of our procedures.

3. We verified the current year information presented in the accompanying Appropriations Limit Schedule to corresponding information in worksheets used by the City.

Finding: No exceptions were noted as a result of our procedures.

4. We verified the appropriations limit presented in the accompanying Appropriations Limit Schedule to the appropriations limit adopted by the City Council.

Finding: No exceptions were noted as a result of our procedures.

ATTACHMENT A 31
To the Honorable Mayor and the Members of City Council
of the City of Stockton
Stockton, California

Page 2 ends

Additional Matter: During our procedures, we noted that the Appropriations Limit originally adopted by City Council Resolution No. 2023-06-20-1601 on June 20, 2023, reflected an amount of $441,817,074, which did not agree to the supporting calculation amount of $463,417,917. The difference of approximately $21.6 million represented the current year adjustment. The City subsequently re-adopted the resolution on August 12, 2025, to correct the amount. As this corrective action has been taken through formal re-adoption, no further findings are required.

We were engaged by the City to perform this agreed-upon procedures engagement and conducted our engagement in accordance with attestation standards established by the American Institute of Certified Public Accountants. We were not engaged to and did not conduct an examination or review engagement, the objective of which would be the expression of an opinion or conclusion, respectively, on the accompanying Appropriations Limit schedule.

Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you.

We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements related to our agreed-upon procedures engagement.

This report is intended solely for the information and use of the City Council and management of the City and is not intended to be and should not be used by anyone other than these specified parties. However, this report is a matter of public record and its distribution is not limited.

Santa Ana, California
September 17, 2025
ATTACHMENT A 32
City of Stockton
Appropriations Limit Schedule
For the Year Ended June 30, 2024
Amount Source
A. Appropriations Limit FY 2022-2023
B. Calculation Factors:
$ 441,817,074 Prior year appropriation
limit adopted by the City
1) Population increase % 1.0043 California Department of Finance 2) Inflation increase % 1.0444 California Department of Finance 3) Total adjustment % 1.0489 (B1 x B2)
C. Annual Adjustment Increase 21,600,843 {(B3-1) x A}
D. Other Adjustments:
1) Loss responsibility (-) - N/A
2) Transfer to private (-) - N/A
3) Transfer to fees (-) - N/A
4) Assumed responsibility (+) - N/A
E. Total Adjustments 21,600,843 (C+D)
F. Appropriations Limit FY 2023-2024 $ 463,417,917 (A+E) See accompanying Notes to the Appropriations Limit Schedule. 3 ATTACHMENT A 33
City of Stockton
Notes to the Appropriations Limit Schedule
For the Year Ended June 30, 2024
Note 1 – Purpose of Limited Procedures Review
Under Article XIIIB of the California Constitution (the Gann Spending Limitation Initiative), California governmental agencies are restricted as to the amount of annual appropriations from proceeds of taxes. Effective for years beginning on or after July 1, 1990, under Section 1.5 of Article XIIIB, the annual calculation of the appropriations limit is subject to the agreed-upon procedures in connection with the annual audit.

Note 2 – Method of Calculation
Under Section 10.5 of Article XIIIB, for fiscal years beginning on or after July 1990, the appropriations limit is required to be calculated based on the limit for the fiscal year 1986-87, adjusted for the inflation and population factors discussed in Notes 3 and 4 below.

Note 3 – Population Factors
A California governmental agency may use as its population factor either the annual percentage change of the jurisdiction’s own population or the annual percentage change in population of the county where the jurisdiction is located. The factor adopted by the City for the year ended June 30, 2024, represents the annual percentage change in population for the County of San Joaquin.

Note 4 – Inflation Factors
A California governmental agency may use as its inflation factor either the annual percentage change in the 4th quarter per capita personal income (which percentage is supplied by the California Department of Finance) or the percentage change in the local assessment roll from the preceding year due to the change of local nonresidential construction. The factor adopted by the City for the year ended June 30, 2024, represents the annual percentage change for per capita personal income.

Note 5 – Other Adjustments
A California government agency may be required to adjust its appropriations limit when certain events occur, such as the transfer of responsibility for municipal services to, or from, another government agency or private entity. The City had no such adjustments for the year ended June 30, 2024.

Note 6 – Subsequent Re-adoption of Appropriations Limit The City Council originally adopted the Fiscal Year 2023-24 Appropriations Limit of $441,817,074 on June 20, 2023, under Resolution No. 2023-06-20-1601. During subsequent review, it was identified that this amount did not agree to the supporting calculation of $463,417,917, due to a clerical error in applying the current year adjustment. On August 12, 2025, the City Council re-adopted the resolution to correct the appropriations limit to $463,417,917.
4 ATTACHMENT A 34
City of Stockton
Stockton, California
Independent Accountants’ Report on
Applying Agreed-Upon Procedures
on Core Revenues
For the Year Ended June 30, 2024

ATTACHMENT B
35 200 E. Sandpointe Avenue, Suite 600
Santa Ana, California 92707
INDEPENDENT ACCOUNTANTS’ REPORT ON APPLYING

AGREED-UPON PROCEDURES ON CORE REVENUES
To the Honorable Mayor and the Members of the City Council of the City of Stockton
Stockton, California
We have performed the procedures enumerated below on the Core Revenues Schedule (the “Schedule”) of the City of Stockton, California (the “City”) for the year ended June 30, 2024. The City’s management is responsible for the Schedule.

The City has agreed to and acknowledged that the procedures performed are appropriate to meet the intended purpose of meeting the requirements of Article IV Covenants, Section 4.02(b) - Not later than 210 days after and as of the end of each fiscal year, audited financial statements of the City, which financial statements shall include a statement of net position, statement of activities and changes in net position. The audited financial statements shall be audited by independent certified public accountants from a firm experienced in the field of municipal audits and licensed in the State of California, and prepared in accordance with GAAP, and shall be delivered together with an agreed-upon procedures letter from such accountants addressed to Assured Guaranty providing a report showing that such accountants have recomputed the calculations of the Actual Core Revenues and the Contingent General Fund Payment made by the City with respect to such Fiscal Year and have compared the data used in such calculations and found it to be consistent with the audited financial statements or other internal accounts and records of the City for such Fiscal Year. The report may not be suitable for any other purpose. The procedures performed may not address all the items of interest to a user of this report and may not meet the needs of all users of this report and, as such, users are responsible for determining whether the procedures are appropriate for their purposes.

The procedures and associated findings are as follows:

1. Obtained and reviewed Reimbursement Agreement between Assured Guaranty Municipal Corp. and the City of Stockton dated February 25, 2015 and obtained understanding of the Contingent General Fund Payments, Actual Core Revenues, and Baseline Core Revenues.

Findings: No exceptions were noted.

2. Obtained the Contingent General Fund Payment detail and recalculated the Contingent General Fund Payment in accordance to Article II, Settlement Terms and Payments Section 2.03 Contingent General Fund Payments of the Reimbursement Agreement.

Under the Reimbursement Agreement between Assured Guaranty Municipal Corp. and City of Stockton dated as of February 25, 2015, Article II Settlement Terms and Payments, Section 2.03(a), for each Fiscal Year, commencing with the Fiscal Year ending June 30, 2018 and ending in the Fiscal Year ending June 30, 2052 (subject to extension pursuant to the provisions of subsection (d) below), in which the Actual Core Revenues exceed the Baseline Core Revenues, the City shall pay to the Payees, in the manner described in Section 2.05, a payment equal to the Allocable Share of the average Incremental Revenue Ratio for such Fiscal Year and each of the previous two Fiscal Years multiplied by the Shortfall Amount (each such payment, a “Contingent General Fund Payment”). The Payment Date for the estimated Contingent General Fund Payments with respect to any Fiscal Year shall be June 1 of such Fiscal Year, commencing June 1, 2018 to and including June 1, 2052, subject to the provisions of subsections (c) and (d) of this Section 2.03.

ATTACHMENT B 36
To the Honorable Mayor and the Members of the City Council of the City of Stockton
Stockton, California

Page 2 ends

2 We obtained and recalculated the Contingent General Fund Payment. In addition, we verified the payment was remitted by the City before the due date of June 1, 2024.

Findings: No exceptions were noted.

3. Obtained and reviewed calculations of the actual core revenues as stated in the Reimbursement Agreement.

Core Revenues is defined as follows:

According to the Reimbursement Agreement between Assured Guaranty Municipal Corp. and City of Stockton dated as of February 25, 2015, Article I Definitions, Core Revenues means, for each Fiscal Year, the City’s Unrestricted General Fund receipts, net of any required refunds, rebates or legally required adjustments from the following sources: a) ad valorem property tax (excluding any special overrides for voter-approved general obligation bonds); (b) sales and transaction and use taxes; (c) utility taxes; (d) transient occupancy taxes; (e) franchise taxes; (f) business license taxes; (g) document transfer taxes; (h) motor vehicle license fees; (i) other Unrestricted taxes approved by the voters after Fiscal Year 2013-14; and (j) net revenues generated from the sale of Surplus Property; provided, that Core Revenues does not include any Annexed Area Revenues or Realignment Revenues. For purposes of clarification, Core Revenues include any such receipts, whether paid directly to the City, or to the City by another public agency, including the State of California, as a result of structural changes in tax distributions imposed by the State of California (except to the extent such amounts constitute Realignment Revenues) or otherwise.

General Fund Core Revenues Fiscal Year 2023-24
Property Taxes
Property Taxes $ 45,392,550
In Lieu of Motor Vehicles License Fees 31,590,015
Motor Vehicles License Fees 399,537
Total Property Tax 77,382,102
Sales and Transaction Tax

1.00% Local Sales and Use Tax 75,634,261
Proposition 172 3,282,900
Measure A 46,214,556
Total Sales and Transaction Tax 125,131,717
Other Taxes
Utility Users Tax 42,799,092
Franchise Tax 19,351,515
Business License Tax 18,676,259
Hotel/Motel Tax 3,527,897
Document Transfer Tax 991,618
Revenue Generated by Sale of Surplus Property 10,068
Total Other Taxes 85,356,449
Total Core Revenues $ 287,870,268
ATTACHMENT B 37
To the Honorable Mayor and the Members of the City Council of the City of Stockton
Stockton, California

Page 3 ends

3 Performed procedures on the following core revenues:

Property taxes:

For property taxes, the firm obtained the total property tax revenue population amounted to $45,392,550. We performed analytical procedures on the total population by comparing prior year amounts to current year and budgeted amounts. The firm also sent confirmation to the County for total property taxes allocated to the City during the period July 1, 2023 to June 30, 2024. We received the confirmation in the email and agreed amounts with no variance noted.

For in lieu of motor vehicle license fees, the firm obtained the total in lieu of motor vehicle license fee population amounted to $31,590,015. The firm sent confirmation to the County for motor vehicle license fees allocated to the City during the period July 1, 2023 to June 30, 2024. We received the confirmation in the email and agreed amounts with no variance noted.

For motor vehicles license fees, the firm obtained the total motor vehicle license fee population amounted to $399,537. The firm reviewed the cash receipts from the County during the period July 1, 2023 to June 30, 2024 and performed analytical procedures on the total population by comparing prior year amounts to current year and budgeted amounts.

Findings: No exceptions were noted.

Sales and Transaction and Use Tax:

For sales and transaction and use taxes, the firm obtained the total sales and transaction and use tax revenue population amounted to $125,131,717. We performed analytical procedures on the total population by comparing prior year amounts to current year and budgeted amounts. Measure A was approved by voters on November 5, 2013 as a three-quarter (0.75%) transaction and use tax (sales tax) effective April 1, 2014. The firm obtained the confirmation online from the California Department of Tax and Fee Administration for the

1.00% 1ocal sales and use tax and Measure A transaction and use tax revenues distributed to the City during the period July 1, 2023 through June 30, 2024 in the amount of $75,634,261 and $46,214,556, respectively. In addition, the firm sent confirmation to the County of San Joaquin for the Proposition 172 revenue distributed to the City during the period July 1, 2023 through June 30, 2024 in the amount of $3,282,900. We received the confirmation in the mail and agreed amounts with no material variance noted.

Findings: No exceptions were noted.

Utility Users Tax:

For utility users taxes, the firm obtained the total utility users tax revenue population amounted to $42,799,092. We performed analytical procedures on the total population by comparing prior year amounts to current year and budgeted amounts.

Findings: No exceptions were noted.

ATTACHMENT B 38
To the Honorable Mayor and the Members of the City Council of the City of Stockton
Stockton, California

Page 4 ends

4 Franchise Tax:

For franchise taxes, the firm obtained the total franchise tax revenue population amounted to $19,351,515.

We performed analytical procedures on the total population by comparing prior year amounts to current year and budgeted amounts. The firm also sent out confirmation to Pacific Gas and Electric for the residential and commercial franchise tax payments paid to the City during the period July 1, 2023 through June 30, 2024 in the amount of $3,143,211. We received the confirmations in the mail and agreed amounts with no material variances noted.

Findings: No exceptions were noted.

Business License Tax:

For the business license taxes, the firm obtained the total business license tax revenue population amounted to $18,676,259. We performed analytical procedures on the total population by comparing prior year amounts to current year and budgeted amounts.

Findings: No exceptions were noted.

Transient Occupancy (Hotel/Motel) Tax:

For the transient occupancy (hotel/motel) taxes, the firm obtained the total transient occupancy tax revenue population amounted to $3,527,897 performed analytical procedures on the total population by comparing prior year amounts to current year and budgeted amounts.

Findings: No exceptions were noted.

Document Transfer Tax:

For the document transfer taxes, the firm obtained the total document transfer tax revenue population amounted to $991,618. We performed analytical procedures on the total population by comparing prior year amounts to current year and budgeted amounts.

Findings: No exceptions were noted.

Revenues Generated from the Sale of Surplus Property:

For the net revenues generated from the sale of surplus property, the firm obtained the net revenue population amounting to $10,068. We performed analytical procedures on the total population by comparing prior year amounts to current year.

Findings: No exceptions were noted.

ATTACHMENT B 39
To the Honorable Mayor and the Members of the City Council of the City of Stockton
Stockton, California

Page 5 ends

5 We were engaged by the City to perform this agreed-upon procedures engagement and conducted our engagement in accordance with attestation standards established by the American Institute of Certified Public Accountants. We were not engaged to and did not conduct an examination or review engagement, the objective of which would be the expression of an opinion or conclusion, respectively, on the accompanying Core Revenues Schedule. Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you.

We are required to be independent of the City and to meet our ethical responsibilities, in accordance with the relevant ethical requirements related to our agreed-upon procedures agreement.

This report is intended solely for the information and use of the City Council, City management and Assured Guaranty Municipal Corp. and is not intended to be and should not be used by anyone other than these specified parties.

Santa Ana, California
July 18, 2025
ATTACHMENT B 40
Measure M
Strong Communities Fund
of the City of Stockton
Stockton, California
Financial Statements and
Independent Auditor’s Reports
For the Year Ended June 30, 2024

ATTACHMENT C
41 City of Stockton
Measure M Strong Communities Fund
For the Year Ended June 30, 2024
Table of Contents
Page

FINANCIAL SECTION
Independent Auditor’s Report on the Financial Statements ....................................................................................... 1 Independent Auditor’s Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ................................................................................................. 5 Basic Financial Statements:

Balance Sheet ....................................................................................................................................................... 9 Statement of Revenues, Expenditures, and Change in Fund Balance ................................................................ 10 Notes to the Fund Financial Statements ............................................................................................................. 13 Required Supplementary Information (Unaudited):

Budgetary Information:

Budget Process ................................................................................................................................................... 19 Budgetary Basis of Accounting .......................................................................................................................... 19 Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual ............................... 20 ATTACHMENT C 42
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ATTACHMENT C 43

FINANCIAL SECTION
ATTACHMENT C 44
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ATTACHMENT C 45
6 Hutton Centre Drive, Suite 1200
Santa Ana, California 92707

INDEPENDENT AUDITOR’S REPORT
To the Honorable Mayor and the Members of the City Council of the City of Stockton
Stockton, California
Report on the Audit of the Financial Statements
Opinion
We have audited the financial statements of the City of Stockton, California (the “City”) Strong Communities Initiative Measure M (the “Fund”), which comprise the balance sheet as of June 30, 2024 and the related statement of revenues, expenditures, and change in fund balance for the year then ended, and the related notes to the financial statements, as listed in the table of contents.

In our opinion, the accompanying financial statements referred to above present fairly, in all material respects, the financial position of the Fund of the City as of June 30, 2024, and the respective changes in financial position thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (“GAAS”) and the standard applicable to financial audits contained in Governmental Auditing Standards, issued by the Comptroller General of the United States (“Governmental Auditing Standards”). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and the Fund and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Emphasis of Matter
As discussed in Note 1, the financial statements present only the Fund and do not purport to, and do not, present fairly the financial position of the City, as of June 30, 2024, the changes in its financial position, or where applicable, its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter.

Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

ATTACHMENT C 46
2 To the Honorable Mayor and the Members of the City Council of the City of Stockton
Stockton, California

Page 2 ends

Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.

Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with GAAS and Government Auditing Standards, we • exercise professional judgment and maintain professional skepticism throughout the audit. • identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. • obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed. • evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.

Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the budgetary comparison information as listed in the table of contents be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Management has omitted Management’s Discussion and Analysis that accounting principles generally accepted in the United States of America requires to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinion on the basic financial statements is not affected by this missing information.

ATTACHMENT C 47
3 To the Honorable Mayor and the Members of the City Council of the City of Stockton
Stockton, California

Page 3 ends

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated September 17, 2025, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over the Fund’s financial reporting and compliance.

Santa Ana, California
September 17, 2025
ATTACHMENT C 48
4 This page intentionally left blank.

ATTACHMENT C 49
6 Hutton Centre Drive, Suite 1200
Santa Ana, California 92707

REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND

OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN

ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Independent Auditor’s Report
To the Honorable Mayor and the Members of the City Council of the City of Stockton
Stockton, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the Measure M Strong Communities Fund (the “Fund”) of the City of Stockton, California (the “City”), which comprise the balance sheet as of June 30, 2024 and the related statement of revenues, expenditures, and changes in fund balance for the year then ended, and the related notes to the fund financial statements and have issued our report thereon dated September 17, 2025.

Report on Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City’s internal control over the Fund’s financial reporting (“internal control”) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control over the Fund’s Financial Schedules was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or, significant deficiencies. Given these limitations, during our audits we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified.

ATTACHMENT C 50
6 To the Honorable Mayor and the Members of the City Council of the City of Stockton
Stockton, California

Page 2 ends

Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the financial statements of the Measure M Strong Communities Fund of the City are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

Purpose of This Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

Santa Ana, California
September 17, 2025
ATTACHMENT C 51
7 FUND FINANCIAL STATEMENTS
ATTACHMENT C 52
8 This page intentionally left blank.

ATTACHMENT C 53
See accompanying Notes to the Fund Financial Statements. 9 City of Stockton
Measure M Strong Communities Fund
Balance Sheet
June 30, 2024
Assets
Cash and investments $ 38,494,908
Interest receivable 187,277
Deposits 18,097
Due from State of California Department of Tax and Fee Administration 2,695,829 Total assets $ 41,396,111
Liabilities and Fund Balances
Liabilities:

Accounts payable $ 293,689
Accrued payroll 255,483
Total liabilities 549,172
Fund Balance:

Nonspendable 18,097
Restricted 40,828,842
Total fund balance 40,846,939
Total liabilities and fund balance $ 41,396,111
ATTACHMENT C 54
See accompanying Notes to the Fund Financial Statements. 10 City of Stockton
Measure M Strong Communities Fund
Statement of Revenues, Expenditures, and Change in Fund Balance For the Year Ended June 30, 2024
Revenues:

Taxes:

Sales - levied by City $ 15,406,039
Interest income 1,388,782
Total revenues 16,794,821
Expenditures:

Current:

Library 3,187,520
Parks and recreation 5,414,634
Capital outlay 790,329
Debt Service:

Principal retirement 18,046
Interest expense 1,955
Total expenditures 9,412,484

EXCESS (DEFICIENCY) OF REVENUES OVER
EXPENDITURES (BUDGETARY BASIS) 7,382,337
Other financing sources:

Issuance of lease liability 55,827
Total other financing sources 55,827
Change in fund balance 7,438,164
Fund Balance:

Beginning of year 33,408,775
End of year $ 40,846,939
ATTACHMENT C 55
11 NOTES TO THE FUND FINANCIAL STATEMENTS
ATTACHMENT C 56
12 This page intentionally left blank.

ATTACHMENT C 57
13 City of Stockton
Measure M Strong Communities Fund
Notes to the Fund Financial Statements
For the Year Ended June 30, 2024
Note 1 – Definition of the Fund
On November 8, 2016, the people of the City of Stockton (the “City”) approved the Strong Communities Initiative (“Measure M”), which authorized the City of Stockton Special Library and Recreation Transactions and Use Tax Ordinance (Ordinance No. 2016-06-07-1212). The original Ordinance is adopted by the Stockton City Council on May 24, 2016. An amended Ordinance was approved by the City Council on June 7, 2016. The Ordinance allows the City to implement a dedicated one-quarter (¼) cent special transaction and use tax for a period of 16 years for the restoration and expansion of library and recreation services.

The City established the Measure M Strong Communities Fund (the “Fund”), to account for the Measure M taxes collected and spent on library and recreation services. These operations constitute part of the overall financial reporting entity of the City and are accounted for as a special revenue fund in accordance with generally accepted accounting principles within the City’s annual comprehensive financial report. The accounting policies of the Fund conform to the modified accrual basis of accounting.

These financial statements present only the Fund and do not present fairly the financial position of the City as of June 30, 2024, the changes in its financial position, or where applicable, its cash flows for the year then ended in accordance with the accounting principles generally accepted in the United States of America.

Note 2 – Summary of Significant Accounting Policies
A. Basis of Presentation
The accompanying financial statements present only information pertain to the Fund and are not intended to present the financial position, and changes in financial position of the City in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”).

The financial statement presentation follows the recommendations promulgated by the Governmental Accounting Standards Board (“GASB”) commonly referred to as U.S. GAAP. GASB is the accepted standard-setting body for establishing governmental accounting and financial reporting standards.

B. Measurement Focus and Basis of Accounting
In the accompanying financial statements, the Fund is presented using the “current financial resources” measurement focus. This means that only current assets and current liabilities are generally included on their balance sheet. The Statement of Revenues, Expenditures, and Changes in Fund Balance present increases (revenues) and decrease (expenditures) in net current assets.

The activities of the Fund are recorded in a special revenue fund and accounted for using the modified accrual basis of accounting. Special revenue funds are used to account for the proceeds of specific revenue sources (other than major capital projects) that are legally restricted to expenditures for specified purposes. Under the modified accrual basis of accounting, revenues are recognized when they become susceptible to accrual (i.e., both measurable and available). Measurable means that the amount of the transaction can be estimated, or otherwise determined. Available means the funds are collectible within 90 days after year-end. Expenditures are generally recognized when the related liability is incurred.

ATTACHMENT C 58
14 City of Stockton
Measure M Strong Communities Fund
Notes to the Fund Financial Statements (Continued)
For the Year Ended June 30, 2024
Note 2 – Summary of Significant Accounting Policies (Continued) C. Use of Estimates
The preparation of the basic financial statements in accordance with U.S. GAAP and it requires management to make estimates and assumptions that affect the reported amounts and disclosure. Accordingly, actual results could differ from those estimates.

D. Cash and Investments
All cash and investments reported in the Fund are accounted for by the City. For further information, please refer to Note 1 – Summary of Significant Accounting Policies in the City’s annual comprehensive financial report.

E. Receivables
Revenues are recorded when received in cash, except revenues subject to accrual (up to 90 days after year-end) are recognized when due. The primary revenue source of the Fund is transactions and use tax collected through the State of California Department of Tax and Fee Administration.

F. Classification of Fund Balance
All fund balance in the Fund are nonspendable and restricted.

Nonspendable – Amounts that cannot be spent because they are (1) not in spendable form, such as prepaid items, deposits and long-term receivables for which the payment of proceeds are not restricted or committed with respect to the nature of the specific expenditures of that fund or (2) legally or contractually required to be maintained intact.

Restricted – Amounts that are restricted by external parties such as creditors or imposed by grants, laws or regulations of other governments or imposed by law through constitutional provisions or enabling legislation.

The City has legislative restrictions on amounts collected and reported in the Fund. As a result, these restrictions have been classified as restricted for library and recreation.

Other types of fund balance that are not applicable to the Fund are described below:

Committed – This amount indicates the portion of fund balances which can only be used for specific purposes under formal resolution or ordinance of the City Council. Commitments may be changed or lifted only by the City taking the same formal action that imposed the constraint originally.

Assigned – Amounts that have been allocated by action of an official authorized by the Stockton City Council in which the City’s intent is to use the funds for a specific purpose. The City considers this level of authority to be the City Manager of the City of Stockton.

Unassigned – Amounts that constitute the residual balances that have no restrictions placed upon them. If restrictions exceed available resources at the end of the year, the deficit amounts are reported and classified as unassigned.

ATTACHMENT C 59
15 City of Stockton
Measure M Strong Communities Fund
Notes to the Fund Financial Statements (Continued)
For the Year Ended June 30, 2024
Note 2 – Summary of Significant Accounting Policies (Continued) G. Spending Policy
When expenditures are incurred for purposes for which both restricted and unrestricted fund balances are available, the City’s policy is first to expend restricted fund balances, then unrestricted fund balances as they are needed. When expenditures are incurred for purposes where only unrestricted fund balances are available, the City uses the unrestricted resources in the following order: committed, assigned, and unassigned depending on the nature of the expenditure.

Note 3 – Cash and Investments
The Fund’s share of the City’s cash and investments at June 30, 2024 was $38,494,908. Cash is deposited in the City’s internal investment pool, which is reported at the amortized cost. The Fund does not own specifically identifiable securities in the City’s pool. Interest income is allocated based on average cash balances. Investment policies and associated risk factors applicable to the Fund are those of the City and are included in the City’s basic financial statements. Please refer to the City’s annual comprehensive financial report for related disclosures for cash and investments.

Note 4 – Due From Other Governments
Due from other governments consists of retail transactions and use tax due from the State of California Department of Tax and Fee Administration. At June 30, 2024, the amount due from the State of California Department of Tax and Fee Administration was $2,695,829.

Note 5 – Commitments and Contingencies
Litigation
Legal claims and lawsuits arise from time to time in the normal course of business which, in the opinion of management, will not materially affect the financial statements of the Fund as of June 30, 2024.

Commitments
In addition to library and recreation operations, Strong Communities funds are being used for capital projects expanding or improving library and recreation facilities. The capital appropriations outstanding as of June 30, 2024 were $26,076,925 for nine projects. The largest project underway, with an outstanding appropriation of $14,705,768 is allocated toward the renovation of the Cesar Chavez Library for life safety upgrades and to make the building more accessible and inviting to the community. A new library and recreation facility in Northeast Stockton is also under construction with an outstanding balance of $3,385,059. $2,963,176 is the available balance to renovate the Victory Park Pool and $2,741,459 is the available balance to renovate the Oak Park Pool. The McKinley Park renovation project has an available balance of $1,121,480. In addition, $747,694 is the remaining available balance to install a public address system in each Community Center, $300,000 is to remove and replace the existing carpeting in Maya Angelou Library, $73,032 is to complete renovations at the Stockton Soccer Complex, and $39,257 is to complete fencing and gate upgrades for improved security at the McNair Soccer Complex.

ATTACHMENT C 60
16 This page intentionally left blank.

ATTACHMENT C 61
17 REQUIRED SUPPLEMENTARY INFORMATION (UNAUDITED)
ATTACHMENT C 62
18 This page intentionally left blank.

ATTACHMENT C 63
19 City of Stockton
Measure M Strong Communities Fund
Required Supplementary Information (Unaudited)
For the Year Ended June 30, 2024

1. Budgetary Information
Budget Process
In accordance with the provisions of the City Charter, the City prepares and adopts a budget on or before June 30 for each fiscal year. Total Appropriations shall not exceed the total of estimated revenues, estimated unencumbered balances of funds to be carried over from the preceding year and unencumbered available fund balances. Prior to July 1, the original adopted budget is legally enacted through the passage of a resolution by the City Council. In the event this does not occur, the City Manager’s draft budget is in force until a budget is adopted by the City Council.

If expenditures exceed appropriations at the department level for the General Fund or at the fund level for all other funds, Council approval must be obtained to amend the budget. The City Manager is authorized to transfer budgeted amounts between line items within a General Fund department and within a fund for all other funds.

During the year, the City Council approves supplemental appropriations and, by resolution, has also authorized the City Manager to transfer fund balances to applicable appropriation accounts, or to transfer between funds, when necessary to continue purposes approved by the City Council in the current year, adopted budget, or subsequent action. Amounts reported as final budget in the Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual – On a Budgetary Basis include amendments authorized throughout the year.

All unencumbered appropriations lapse at year-end, with the exception of ongoing capital improvement projects and miscellaneous grants in the respective funds. Encumbered appropriations are re-appropriated in the following year’s budget.

Budgetary Basis of Accounting
The City adopts budgets each fiscal year on a basis of accounting, which is different from accounting principles generally accepted in the United States of America (GAAP).

The statements of revenue, expenditures and changes in fund balances have been prepared on the modified accrual basis of accounting in accordance with GAAP. The schedules of revenues, expenditures and changes in fund balances – budget and actual – on a budgetary basis have been prepared on the budgetary basis, which is different from GAAP.

The variations from GAAP that are for budgetary purposes include the following:
• Outstanding commitments relating to construction contracts and other purchases of goods and services are recorded as expenditures at the time contracts or purchase agreements are entered into. Under GAAP, these obligations are recognized when goods are received or services are rendered. • The write-off uncollectable accounts receivables is not recognized as an expenditure. Under GAAP, these write-offs are recognized as expenditures when the accounts receivables are determined to be uncollectable.

ATTACHMENT C 64
20 City of Stockton
Measure M Strong Communities Fund
Required Supplementary Information (Unaudited) (Continued) For the Fiscal Year Ended June 30, 2024

1. Budgetary Information (Continued)
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual Budget Variance with
Original Final Actual Final Budget
Revenues:

Taxes:

Sales - levied by City $ 14,852,687 $ 14,852,687 $ 15,406,039 $ 553,352 Interest income 186,778 186,778 1,388,782 1,202,004
Total revenues 15,039,465 15,039,465 16,794,821 1,755,356 Expenditures:

Current:

Library 4,172,819 4,684,611 3,187,520 1,497,091
Recreation programs 7,040,657 7,857,877 5,414,634 2,443,243 Capital outlay
Debt Service:

Principal retirement
14,541,000
-
14,673,760
-
790,329
18,046
13,883,431
(18,046)
Interest expense - - 1,955 (1,955)
Total expenditures 25,754,476 27,216,248 9,412,484 17,803,764 Other financing sources:

Issuance of lease liability - - 55,827 (55,827)
Total other financing sources - - 55,827 (55,827)
Changes in fund balance $ (10,715,011) $ (12,176,783) 7,438,164 $ 19,614,947 Fund Balance (GAAP Basis):

Beginning of year 33,408,775
End of year $ 40,846,939
Basis Adjustment:

Changesin fund balances - GAAP basis $ 7,438,164
Encumbrances 850,142
Changes in fund balances - Budget basis 8,288,306
Fund Balance (Budgetary Basis):

Beginning of year 33,408,775
End of year $ 41,697,081
ATTACHMENT C 65
Measure W
Public Safety Tax Fund
of the City of Stockton
Stockton, California
Independent Auditor’s Reports
and Financial Schedules
For the Years Ended June 30, 2024 and 2023

ATTACHMENT D
66 City of Stockton
Measure W Public Safety Tax Fund
For the Years Ended June 30, 2024 and 2023
Table of Contents
Page
Independent Auditor’s Report on the Financial Schedules ........................................................................................ 1 Schedules of Revenues, Expenditures, and Change in Fund Balances. ............................................................................ 3 Notes to the Financial Schedules...................................................................................................................................... 4 Independent Auditor’s Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of the Financial Schedules Performed in Accordance with Government Auditing Standards ....................................... 5 ATTACHMENT D 67
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ATTACHMENT D 68
6 Hutton Centre Drive, Suite 1200
Santa Ana, California 92707

INDEPENDENT AUDITOR’S REPORT
To the Honorable Mayor and the Members of the City Council of City of Stockton
City of Stockton, California
Report on the Audit of the Financial Schedules
Opinion
We have audited the financial schedules of the Measure W Public Safety Tax Fund (the “Fund”) of the City of Stockton, California (the “City”) which comprise the schedules of revenues, expenditures and change in fund balance (the “Financial Schedules”) for the years ended June 30, 2024 and 2023, and the related notes to the Financial Schedules.

In our opinion, the financial schedules referred to above present fairly, in all material respects, the revenues, expenditures and change in fund balance of the Fund of the City, for the years ended June 30, 2024 and 2023 in accordance with accounting principles generally accepted in the United States of America.

Emphasis of Matter
As discussed in Note 1, the Financial Schedules presents only the revenues, expenditures and change in fund balance of the Fund and do not purport to, and do not, present fairly the financial position of the City, as of June 30, 2024 and 2023, the changes in its financial position, or where applicable, its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter.

Responsibilities of Management for the Financial Schedules Management is responsible for the preparation and fair presentation of the Financial Schedules in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

ATTACHMENT D 69
To the Honorable Mayor and the Members of the City Council of City of Stockton
Stockton, California

Page 2 ends

Auditor’s Responsibilities for the Audit of the Financial Schedules Our objectives are to obtain reasonable assurance about whether the Financial Schedules as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditor’s report that includes our opinion.

Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with auditing standards generally accepted in the United States of America and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with auditing standards generally accepted in the United States of America and Government Auditing Standards, we
• exercise professional judgment and maintain professional skepticism throughout the audit. • identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. • obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed. • evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated September 17, 2025, on our consideration of the City’s internal control over the Fund’s financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over Fund’s financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over the Fund’s financial reporting and compliance.

Santa Ana, California
September 17, 2025
2 ATTACHMENT D 70
City of Stockton
Measure W Public Safety Tax Fund
Schedules of Revenues, Expenditures, and Change in Fund Balances For the Years Ended June 30, 2024 and 2023
2024 2023
Police Fire Total Police Fire Total
REVENUES:

Taxes:

Sales- levied by City $ 7,703,437 $ 7,703,437 $ 15,406,874 $ 8,289,088 $ 8,289,088 $ 16,578,176 Investment income (loss) 210,341 187,204 397,545 (39,929) (35,537) (75,466) Total revenues 7,913,778 7,890,641 15,804,419 8,249,159 8,253,551 16,502,710 EXPENDITURES - PUBLIC SAFETY:

Payroll:

E
OTHER FINANCING SOURCES :

Transfers in - 118,182 118,182 - - -
Total other financing sources - 118,182 118,182 - - -
NET CHANGEIN FUND BALANCES 152,684 175,085 327,769 1,263,592 1,676,773 2,940,365 FUND BALANCES, BEGINNING OF YEAR 6,774,172 6,139,871 12,914,043 5,510,580 4,463,098 9,973,678 FUND BALANCES, END OF YEAR $ 6,926,856 $ 6,314,956 $ 13,241,812 $ 6,774,172 $ 6,139,871 $ 12,914,043 See accompanying Notes to the Financial Schedules.
3 Salaries 3,401,027 3,231,302 6,632,329 2,964,944 2,901,296 5,866,240 Benefits 3,192,267 3,380,819 6,573,086 2,932,215 2,953,595 5,885,810 Total payroll 6,593,294 6,612,121 13,205,415 5,897,159 5,854,891 11,752,050 quipment, services and supplies:

Tax collection fee 107,729 107,729 215,458 145,833 145,833 291,666 Liability insurance 264,249 309,189 573,438 223,043 226,697 449,740 Vehicle rental charges 404,568 248,663 653,231 405,671 182,776 588,447 Radio rental charges 35,368 38,410 73,778 36,305 28,566 64,871 Materials and services 220,972 184,909 405,881 128,240 4,169 132,409 Fuel charges 124,452 24,226 148,678 138,854 31,552 170,406 Capital outlay/equipment 10,462 308,491 318,953 10,462 102,294 112,756 Total equipment, services and supplies 1,167,800 1,221,617 2,389,417 1,088,408 721,887 1,810,295 Total expenditures 7,761,094 7,833,738 15,594,832 6,985,567 6,576,778 13,562,345 ATTACHMENT D 71
City of Stockton
Measure W Public Safety Tax Fund
Notes to the Financial Schedules
For the Years Ended June 30, 2024 and 2023
Note 1 – Summary of Significant Accounting Policies
A. Description of Reporting Entity
The Measure W Public Safety Tax Fund (the “Fund”) of the City of Stockton, California (the “City”) accounts for the Measure W Taxes collected and spent for police and fire purposes. The Fund is included in the basic financial statements of the City. These financial schedules are intended to present only the revenues, expenditures and change in fund balances of the Fund of the City. It does not present fairly the financial position of the Fund or the City, nor the change in financial position of the City in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”).

The accounting policies of the Fund conform to U.S. GAAP as they are applicable to governmental units. The Governmental Accounting Standards Board (the “GASB”) is the standard setting body for establishing governmental accounting and financial reporting principles. The more significant policies reflected in the financial schedules are summarized below.

B. Basis of Presentation, Measurement Focus and Basis of Accounting The activities of the Fund are recorded in a special revenue fund and accounted for using the modified accrual basis of accounting. Special revenue funds are used to account for the proceeds of specific revenue sources (other than major capital projects) that are legally restricted to expenditures for specified purposes. Under the modified accrual basis of accounting, revenues are recognized when they become susceptible to accrual (i.e. both measurable and available). Measurable means that the amount of the transaction can be determined. Available means the funds are collectible within 90 days after year-end. Expenditures of governmental funds are generally recognized when the related fund liability is incurred.

C. Sales and Use Tax – Measure W
The people of the City approved Measure W on November 2, 2004, which authorized Ordinance No. 038-04 CS that added a new Part of Chapter 8 of the Stockton Municipal Code. This Ordinance provided authorization for an additional one-quarter of one percent transaction and use tax, the proceeds of which shall be used to maintain current police and fire protection service levels and to contract with the State of California Department of Tax and Fee Administration to perform all functions incident to the administration and operation of the tax.

D. Allocation of Revenue and Expenditures between Police and Fire Department Tax revenue collected is distributed evenly between the Police and Fire Department. Investment expense and investment income are allocated between the Police and Fire Department based on balance reduced by expenditures incurred in each department during the year. All other expenditures are recorded based on actual amount incurred in respective department.

E. Use of Estimates
The preparation of the basic financial schedules in accordance with U.S. GAAP and it requires management to make estimates and assumptions that affect the reported amounts and disclosure. Accordingly, actual results could differ from those estimates.
4 ATTACHMENT D 72
6 Hutton Centre Drive, Suite 1200
Santa Ana, California 92707

REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND

OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL SCHEDULES PERFORMED IN

ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Independent Auditor’s Report
To the Honorable Mayor and the Members of the City Council of the City of Stockton
City of Stockton, California
We have audited in accordance with the auditing standards generally accepted in the United States of America and the standard applicable to the financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the schedules of revenues, expenditures and change in fund balance (the “Financial Schedules”) of the Measure W Public Safety Tax Fund (the “Fund”) of the City of Stockton, California (the “City”), for the years ended June 30, 2024 and 2023, and the related notes to the Financial Schedules, and have issued our report thereon dated September 17, 2025. Our report contained an explanatory paragraph describing that the schedules only presents the revenues, expenditures and change in fund balance of the Fund and not the City.

Report on Internal Control Over Financial Reporting
In planning and performing our audits of the Financial Schedules, we considered the City’s internal control over the Fund’s financial reporting (“internal control”) as a basis for designing the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the Financial Schedules, but not for the purpose of expressing an opinion on the effectiveness of City’s internal control over the Fund’s financial reporting. Accordingly, we do not express an opinion on the effectiveness of City’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the Fund’s financial schedules will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

ATTACHMENT D 73
To the Honorable Mayor and the Members of the City Council of City of Stockton
City of Stockton, California

Page 2 ends

Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Financial Schedules are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of Financial Schedules amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

Purpose of This Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance as they relate to the Fund. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

Santa Ana, California
September 17, 2025
6 ATTACHMENT D 74
City of Stockton
Legislation Text
File #: 25-1062, Version: 1
ACCEPT BY MOTION THE INDEPENDENT ACCOUNTANT’S REPORT ON APPLYING AGREEDUPON PROCEDURES OF MEASURES A AND B REVENUES AND EXPENDITURES FOR YEAR ENDED JUNE 30, 2024

RECOMMENDATION
It is recommended that the City Council accept by motion the Independent Accountant’s Report on applying agreed-upon procedures of Measures A and B Revenues and Expenditures for Year Ended June 30, 2024 (Attachment A).

Summary
The attached report determines that revenues were collected in accordance with Measure A and expenditures were in accordance with Measure B for the year ended June 30, 2024. The agreedupon procedures engagement was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants.

DISCUSSION
Background
As a general sales tax, Measure A proceeds are part of the City’s General Fund. The City Charter (sections 1910 and 1911) requires the City to prepare an Annual Comprehensive Financial Report (ACFR) and have an annual audit of all City accounts conducted by an independent firm of certified public accountants. The independent annual audit includes Measure A financial activity and complies with the Measure A ballot language and the Advisory Committee’s charter and by-laws.

In addition to the City’s annual independent audit, the Measure A Citizens’ Advisory Committee requested that the City engage an additional independent auditor to provide audit services to review in more detail the Measure A financial activities. The Advisory Committee members conveyed that the ACFR did not illustrate the level of detail necessary to fully understand how the City uses Measure A sales tax revenues, and how those uses compare to the Measure B advisory measure.

The Council Audit Committee and City Council supported the request and engaged a second independent audit firm to conduct annual agreed-upon procedures to accomplish this additional review. In addition to the audit recommendation, the Advisory Committee also worked with staff to develop a supplemental display to provide a single reference and greater transparency regarding the use of Measure A proceeds. This display was subsequently added to the City’s ACFR starting with the Fiscal Year (FY) 2014-15 report. The Council Audit Committee also supported the recommendations for the additional audit services and the supplemental display.

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75 File #: 25-1062, Version: 1
On March 23, 2020, the City Council authorized an agreement for Measure A additional audit services with The Pun Group, LLP. These auditing services were to be in addition to the ACFR audit and specific to the Measures A and B Supplemental Display in the ACFR.

Present Situation
The Pun Group applied agreed-upon procedures to the City of Stockton’s Measures A and B revenues and expenditures. The attached report determines that revenues were collected in accordance with Measure A and expenditures were in accordance with Measure B for the year ended June 30, 2024. The agreed-upon procedures engagement was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants.

FINANCIAL SUMMARY
There is no financial impact associated with accepting this item.

Attachment A - Measure A Independent Accountant’s Report Year Ended June 30, 2024 City of Stockton Page 2 of 2 Printed on 9/18/2025
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76 City of Stockton
Stockton, California
Independent Accountant’s Report on
Applying Agreed-Upon Procedures
on Measure A and B Transaction and Use Tax
For the Year Ended June 30, 2024

ATTACHMENT A
77 6 Hutton Centre Drive, Suite 1200
Santa Ana, California 92707

INDEPENDENT ACCOUNTANT’S REPORT ON APPLYING AGREED-UPON PROCEDURES

ON MEASURE A AND B TRANSACTION AND USE TAX
To the Honorable Mayor and the Members of the City Council of the City of Stockton
Stockton, California
We have performed the procedures enumerated below on the Measure A and B Schedule of Sources and Uses of the City of Stockton, California (the “City”) for the year ended June 30, 2024. The City’s management is responsible for the Measure A and B Schedule of Sources and Uses (the “Schedule”).

The City has agreed to and acknowledged that the procedures performed are appropriate to meet the intended purpose of evaluating whether Transaction and Use Tax of the City were collected in accordance with Measure A and expenditures were spent in accordance with provisions of Measure B for the year ended June 30, 2024. This report may not be suitable for any other purpose. The procedures performed may not address all the items of interest to a user of this report and may not meet the needs of all users of this report and, as such, users are responsible for determining whether the procedures performed are appropriate for their purposes.

The procedures and associated findings are described as follows:

1. We obtained understanding of the compliance requirements of Measure A, B, and the Marshall Plan on Crime.

Findings: No exceptions were noted.

2. We obtained the Measure A and B Schedule of Sources and Uses included in the Annual Comprehensive Financial Report of the City for the fiscal year ended June 30, 2024.

Findings: No exceptions were noted.

3. We obtained reports from the California Department of Tax and Fee Administration (CDTFA) and traced the quarterly cash receipts for the fiscal year ended June 30, 2024.

Findings: No exceptions were noted.

4. We selected 40 expenditure transactions spent in Marshall Plan on Crime and determine whether they were spent in accordance with approved Marshall Plan uses.

Findings: No exceptions were noted.

ATTACHMENT A 78
2 To the Honorable Mayor and the Members of the City Council of the City of Stockton
Stockton, California

Page 2 ends

Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you.

We are required to be independent of the City and to meet our ethical responsibilities, in accordance with the relevant ethical requirements related to our agreed-upon procedures engagement.

This report is intended solely for the information and use of the City Council and City management and is not intended to be and should not be used by anyone other than these specified parties.

Santa Ana, California
September 17, 2025
ATTACHMENT A 79
3 City of Stockton
Measure A and B Schedule of Sources and Uses
For the Year Ended June 30, 2024
Final Budget Year End Actual Variance
Revenues
Measure A Transaction and Use Tax $ 46,338,887 $ 46,214,556 $ (124,331) Total Revenues 46,338,887 46,214,556 (124,331)
Uses/Expenditures
Police
Salary & Benefits
Sworn 28,034,533 22,965,412 5,069,121
Non-Sworn 3,826,458 3,478,123 348,335
Vacancy Savings (2,149,267) - (2,149,267)
Recruitment, Retention, and Wellness - 3,988,998 (3,988,998) Other Services
Materials & Supplies
Fuel
5,172,993
386,396
4,678,504
421,178
494,489
(34,782)
Other Supplies
Equipment
Radios
1,712,910
29,534
822,536
29,533
890,374
1 Technology Upgrades
Other Expenses
45,378 45,378 -
Training 616,244 767,125 (150,881)
37,675,179 37,196,787 478,392
Office of Violence Prevention
Salary & Benefits
Non-Sworn 972,327 973,097 (770)
Other Services
Materials & Supplies
Fuel
321,367
30,077
320,576
13,026
791
17,051
Other Supplies
Equipment
Office Equipment
45,304
3,379
44,514
3,361
790
18 Other Expenses 20,000 20,489 (489)
1,392,454 1,375,063 17,391
Basic Adjustment
Encumbrances (included in Final Budget) - - -
Total Measure B Expenditures 39,067,633 38,571,850 495,783 Crime Prevention (Measure B) expenditures
as a % of annual Measure A revenues 84% 83%
Other City Services
General Fund Available Fund Balance 7,271,254 7,642,706 (371,452) Total Uses/Expenditures $ 46,338,887 $ 46,214,556 $ 124,331 ATTACHMENT A 80
City of Stockton
Legislation Text
File #: 25-1078, Version: 1
ADOPTION OF PROPOSED AMENDMENT TO CHAPTER 3.06 OF THE COUNCIL POLICY

MANUAL - AD HOC COMMITTEES

RECOMMENDATION
It is recommended that the City Council adopt the proposed amendment to Chapter 3.06 of the Council Policy Manual regarding ad hoc committees.

Summary
On September 15, 2025, the Council Legislation/Environmental Committee reviewed, provided direction, and forwarded a recommendation that Council adopt changes to Chapter 3.06, Section

3.06.010(4)(C) of the Council Policy Manual. Those changes are presented for the full Council’s consideration.

DISCUSSION
Background
During the August 25, 2025, Council Legislation/Environmental Committee Meeting proposed changes to Chapter 3.06, Section 3.06.010(4)(C) were discussed by the Committee and direction was received by staff regarding modifications to the policy as follows:
· Specify that a majority vote is required for the creation of an Ad Hoc Committee · Add criteria for the appointment of members
· Create specific dissolution rules and a requirement to report back to Council Present Situation
At the September 15, 20205, Committee meeting, staff presented proposed amendments to Council Policy 3.06- Ad Hoc Committees, consistent with the Committee’s previous direction.

Financial Summary
There is no direct financial impact from these potential changes.

Attachment A - Council Policy 3.06 - Redline
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81 City of Stockton, CA
§ 3.06.010 § 3.06.010
Downloaded from https://ecode360.com/ST5019 on 2025-09-11 CHAPTER 3.06

CITY COUNCIL COMMITTEES, BOARDS, AND COMMISSIONS
§ 3.06.010. Policy.
1) The purpose of this policy document is to explicitly state Mayoral authority to establish Council Committees and make appointments as well as create policies/procedures to provide for establishment of and appointments to Council Committees and other committees/ organizations/ boards.
2) ESTABLISHMENT OF COUNCIL COMMITTEES
Council committees shall be established by the Mayor with City Council concurrence. Five standing committees and four special committees are established. Council Committees shall be comprised of a Chairperson, Vice-Chairperson, one regular member, and an alternate member appointed by the Mayor with concurrence of the Council. In addition, there are committees/organizations/boards to which one or two Councilmembers are appointed. A roster of appointments shall be updated and revised as new appointments occur and are confirmed by City Council resolution. The Mayor shall not be appointed to serve on any Standing Committee except the Council Budget/Finance/Economic Development Committee. 3) DURATION OF APPOINTMENTS
Council Committee assignments shall be for two-year terms. 4) COUNCIL COMMITTEES
The purpose of Council Committees shall be to provide detailed analysis and study matters, including obtaining public input, which are referred to the Committee by the City Council or Council appointees and to provide the full City Council with a report on its findings and recommendations. Delegation of such studies is essential to the efficiency of the City Council.

A) Standing Committees. The following Council Standing Committees are established with the following purposes, issues and tasks:
i) Budget/Finance/Economic Development Committee. Will review the City's fiscal policies and documents, review proposed amendments to City fees, develop new fiscal mechanisms as needed, and develop and review policies and activities relating to the economic health of the community, including, but not limited to, the following:
a) Council and City Manager's non-local travel review;
b) Fees for special services;
c) Fees regulated by the Stockton Municipal Code, such as tow companies and taxi companies;
d) Business Council, Private Industry Council, Chambers of Commerce; and ATTACHMENT A 82
City of Stockton, CA
§ 3.06.010 § 3.06.010
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ii) Legislation/Environmental Committee. Will develop and review policies and activities relating to legislative/environmental issues, including, but not limited to, the following activities:
a) Campaign reform;
b) Ethics policies;
c) City, State, and Federal legislation;
d) Federal Emergency Management Administration (FEMA) regulations/ activities/ directives; and
e) Environmental issues such as recycling.
iii) Community Improvement and Crime Prevention Committee. Will consider City crime prevention and diversion programs, graffiti, and code enforcement programs, including, but not limited to, the following:
a) Juvenile delinquency prevention and diversion programs; b) Adult crime prevention and diversion programs;
c) Anti-substance abuse programs;
d) Graffiti abatement programs; and
e) Code enforcement in support of property management activities. iv) Water Committee. Will deal with issues related to water, including, but not limited to, the following activities:
a) Water flows availability;
b) Water projects;
c) Water regulations;
d) Water conservation; and
e) Water reclamation.
v) Audit Committee. Will oversee all independent auditing services for the City provided by both the City Auditor and the City's commercial auditing firm, including, but not limited to, the following:
a) Review the City Auditor's annual audit plan;
b) Review audit reports issued by the City Auditor;
c) Review the annual follow-up report issued by the City Auditor; ATTACHMENT A 83
City of Stockton, CA
§ 3.06.010 § 3.06.010
Downloaded from https://ecode360.com/ST5019 on 2025-09-11 d) Refer special requests for audit services to the City Auditor; e) Review the annual audit plan of the City's commercial audit firm; f) Review the City's annual financial reports and reports of the commercial audit firm; and
g) Review external quality control review reports of the Office of the City Auditor.

B) Special Committees. This type of committee is designed to deal with specific issues or tasks as designated in the establishing resolution or as assigned by the Council. The committee shall remain in existence until completion of the tasks or resolution of the issue(s) assigned without further action by the Council. The membership of these four special committees will consist of two or three Councilmembers appointed by the Mayor with Council concurrence and two or three representatives of the respective school boards.
i) City/Stockton Unified School District "3x3" Committee. Will review and develop recommendations on cooperative programs between the City and Stockton Unified School District.
ii) City/Lodi Unified School District "2x2" Committee. Will review and develop recommendations on cooperative programs between the City and Lodi Unified School District.
iii) City/Lincoln Unified School District "2x2" Committee. Will review and develop recommendations on cooperative programs between the City and Lincoln Unified School District.
iv) City/Manteca Unified School District "2x2" Committee. Will review and develop recommendations on cooperative programs between the City and Manteca Unified School District.

Topics/activities/programs not listed above will be assigned by the City Council to the most appropriate committee for action/recommendations/review.

C) Ad Hoc Committees.
i. Creation. In addition to standing and special committees, the City Council shall from time to time establish Aad Hhoc Ccommittees targeted toward specific issues, goals, and tasks. The ad hoc committees shall be established by City Council resolution with a simple majority vote.
ii. Appointment of Members. Awith appointments forto created Ad Hoc Committees shall be made by the Mayor based on the following criteria: expertise and expressed interest of the Councilmembers.
a. Functional Criteria.

1. Expertise and experience in the subject area that the Ad Hoc Committee is tasked with addressing.

ATTACHMENT A 84
City of Stockton, CA
§ 3.06.010 § 3.06.010
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2. Strong interest and commitment to the subject area.
b. Interpersonal criteria.

1. Ability to communicate effectively and listen to others.

2. Ability to provide unbiased perspective.

3. Ability to exercise independent judgment.
iii. Term.
a. The terms of the ad hoc committees shall not exceed one year. b. The term may be extended unless reestablished or extended by resolution of the Councilwith a simple majority vote.
iv. Dissolution. In addition to standing and special committees, the City Council shall from time to time establish ad hoc committees targeted toward specific issues. The ad hoc committees shall be established by resolution of the Council, with appointments to be made by the Mayor based on the expertise and expressed interest of the Councilmembers. The terms of the ad hoc committees shall not exceed one year unless reestablished or extended by resolution of the Council.Ad Hoc Committees may be dissolved as follows:
a. By addressing and/or completing the assigned issues, goals, and tasks.

1. Upon completion of the designated work, the Ad Hoc Committee shall submit a report to the City Council summarizing the results of their work.

2. The Chair of the Ad Hoc shall submit this report in writing to the City Clerk. The report shall also be made available to the public. b. Passage of time pursuant to Council Policy Section 3.06.010(4)(C)(iii)(a). c. Any council member may request dissolution of an Ad Hoc Committee subject to the following process:
a. Submit written request to the City Clerk to agendize the dissolution.
b. The City Clerk shall agendize the dissolution for the next regular council meeting.
b.c.Dissolution shall require a two-thirds super majority vote (5 votes).
5) COMMITTEE MEETINGS
A) Committee meetings shall be open to the public; however, the Committee may hold closed meetings for the same reason(s) that the full Council holds closed sessions.

B) Committee meetings shall be scheduled at a time and place to encourage public ATTACHMENT A 85
City of Stockton, CA
§ 3.06.010 § 3.06.010
Downloaded from https://ecode360.com/ST5019 on 2025-09-11 attendance and input and to accommodate authorities and experts germane to the topic under study or review.

C) Items that come up as a result of Committee deliberations which may not necessarily have been directly referred to the Committee and do not relate to the item under discussion, would be immediately referred to the entire Council for approval prior to further Committee consideration.

D) The public shall be permitted to provide testimony before the Council Committee on the issue(s) under consideration. Their active participation in the Committee's discussions and deliberations will not be allowed unless approved by the Committee Chairperson.

E) The Vice Chairperson shall assume all duties and responsibilities in the absence of the Chairperson.

F) The Chairperson shall schedule Committee meetings and approve meeting agenda.

G) The City Manager shall have notices of the Council Committee meetings prepared, calendars of Committee Meetings maintained, ensure distribution of meeting notices, and assign proper City staff to the Council Committee for topics under consideration.

H) The presiding officer of the Council Committee meeting shall be the Committee Chairperson.

I) Two Council Committee members shall constitute a quorum for conduct of Committee business. The Council Committee meeting may be conducted with one member present in which case, the Committee recommendations shall be submitted to the City Council as a Minority Council Committee Report.

J) All Committee meetings shall be tape recorded. Such tapes shall be maintained on file for two years.
6) COUNCIL COMMITTEE REPORTS
A) All reports to the City Council shall be in written form, unless time constraints on the issue under consideration do not allow so. In the latter case, the Chairperson shall present a verbal report to the City Council.

B) Committee minutes shall summarize pertinent Committee discussions, including alternatives considered, relevant testimony by the public, findings, and support/ justification for the Committee's recommendation(s).

C) The Committee report shall be scheduled/placed on the City Council agenda at the direction of the Committee Chairperson.

D) The City Manager shall provide the recorder for the Committee meetings and shall have prepared a report of the Committee's deliberations and recommendation(s). City Departments responsible for preparing Council Committee minutes shall report back to the full Council no later than the second meeting following the committee meeting.

E) The Committee report, upon signature by Committee members, shall be filed with the ATTACHMENT A 86
City of Stockton, CA
§ 3.06.010 § 3.06.070
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§ 3.06.020. Responsibilities.

Mayor: Establish Council Committees with concurrence of City Council.

City Manager: Provide recorder for the Committee meetings. § 3.06.030. Relevant authority.

None applicable.
§ 3.06.040. Related administrative directive, city policy, city procedure.

None applicable.
§ 3.06.050. Related forms, documents, or links.

None applicable.
§ 3.06.060. Frequently asked questions.

None applicable.
§ 3.06.070. Update history.
7/6/81 - Adopted by Resolution No. 38,402
11/2/87 - Amended by Resolution No. 87-0603
3/5/90 - Amended by Resolution No. 90-0137
1/2/91 - Amended by Resolution No. 91-0017
1/28/91 - Amended by Resolution No. 91-0092
5/20/91 - Amended by Resolution No. 91-0357
10/7/91 - Amended by Resolution No. 91-0776
8/17/92 - Amended by Resolution No. 92-0542
12/19/94 - Amended by Resolution No. 94-0607
1/6/97 - Amended by Resolution No. 97-0012
5/24/05 - Amended by Resolution No. 05-0218
7/18/06 - Amended by Resolution No. 06-0371
1/9/07 - Amended by Resolution No. 07-0001
3/6/07 - Amended by Resolution No. 07-0081
ATTACHMENT A 87
City of Stockton, CA
§ 3.06.070 § 3.06.070
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1/26/16 - Amended by Resolution No. 2016-01-26-1203
ATTACHMENT A 88
Resolution No.

STOCKTON CITY COUNCIL
RESOLUTION ADOPTING A REVISED CITY COUNCIL POLICY CHAPTER 3.06, SECTION 3.06.010(4)(C), RELATING TO AD HOC COMMITTEES
Chapter 3.06, Section 3.06.010(4)(C), of the Council Policy Manual addresses the creation of Ad Hoc Committees; and
On August 25, 2025, the Council Legislation/Environmental Committee reviewed and discussed revisions to Council Policy 3.06, section 3.06.010(4)(C)- Ad Hoc Committees; and
Staff was directed to revise Section 3.06.010(4)(C) regarding Ad Hoc Committees to include a majority vote for creation of Ad Hoc Committees, criteria for appointment of members, and clear dissolution rules; and
On September 15, 2025, the Council Legislation/Environmental Committee discussed the proposed changes to Section 3.06.010(4)(C) of the Council Policy Manual and recommended changes be forwarded to Council; now, therefore,

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

1. The City Council approves the revisions to City Council Policy

3.06.010(4)(C) entitled “Ad Hoc Committees” attached hereto as Exhibit 1 and incorporated by this reference.

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

PASSED, APPROVED and ADOPTED: September 23, 2025 .

CHRISTINA FUGAZI
Mayor of the City of Stockton
ATTEST:

KATHERINE ROLNAD, CMC, CPMC
City Clerk of the City of Stockton
89 CHAPTER 3.06

A) Standing Committees. The following Council Standing Committees are established with the following purposes, issues and tasks:
i) Budget/Finance/Economic Development Committee. Will review the City's fiscal policies and documents, review proposed amendments to City fees, develop new fiscal mechanisms as needed, and develop and review policies and activities relating to the economic health of the community, including, but not limited to, the following:
a) Council and City Manager's non-local travel review;
b) Fees for special services;
c) Fees regulated by the Stockton Municipal Code, such as tow companies and taxi companies;
d) Business Council, Private Industry Council, Chambers of Commerce; and EXHIBIT 1 90
e) Public safety fiscal issues.
ii) Legislation/Environmental Committee. Will develop and review policies and activities relating to legislative/environmental issues, including, but not limited to, the following activities:
a) Campaign reform;
b) Ethics policies;
c) City, State, and Federal legislation;
d) Federal Emergency Management Administration (FEMA) regulations/ activities/ directives; and
e) Environmental issues such as recycling.
iii) Community Improvement and Crime Prevention Committee. Will consider City crime prevention and diversion programs, graffiti, and code enforcement programs, including, but not limited to, the following:
a) Juvenile delinquency prevention and diversion programs; b) Adult crime prevention and diversion programs;
c) Anti-substance abuse programs;
d) Graffiti abatement programs; and
e) Code enforcement in support of property management activities. iv) Water Committee. Will deal with issues related to water, including, but not limited to, the following activities:
a) Water flows availability;
b) Water projects;
c) Water regulations;
d) Water conservation; and
e) Water reclamation.
v) Audit Committee. Will oversee all independent auditing services for the City provided by both the City Auditor and the City's commercial auditing firm, including, but not limited to, the following:
a) Review the City Auditor's annual audit plan;
b) Review audit reports issued by the City Auditor;
c) Review the annual follow-up report issued by the City Auditor; EXHIBIT 1 91
d) Refer special requests for audit services to the City Auditor; e) Review the annual audit plan of the City's commercial audit firm; f) Review the City's annual financial reports and reports of the commercial audit firm; and
g) Review external quality control review reports of the Office of the City Auditor.

Topics/activities/programs not listed above will be assigned by the City Council to the most appropriate committee for action/recommendations/review.

C) Ad Hoc Committees.
i. Creation. In addition to standing and special committees, the City Council shall from time to time establish Ad Hoc Committees targeted toward specific issues, goals, and tasks. The ad hoc committees shall be established by City Council resolution with a simple majority vote.
ii. Appointment of Members. Appointments for created Ad Hoc Committees shall be made by the Mayor based on the following criteria:
a. Functional Criteria.

1. Expertise and experience in the subject area that the Ad Hoc Committee is tasked with addressing.

2. Strong interest and commitment to the subject area.

EXHIBIT 1 92
b. Interpersonal criteria.

1. Ability to communicate effectively and listen to others.

2. Ability to provide unbiased perspective.

3. Ability to exercise independent judgment.
iii. Term.
a. The term of the ad hoc committee shall not exceed one year. b. The term may be extended by resolution with a simple majority vote. iv. Dissolution. Ad Hoc Committees may be dissolved as follows:
a. By addressing and/or completing the assigned issues, goals, and tasks.

1. Upon completion of the designated work, the Ad Hoc Committee shall submit a report to the City Council summarizing the results of their work.

2. The Chair of the Ad Hoc shall submit this report in writing to the City Clerk. The report shall also be made available to the public. b. Passage of time pursuant to Council Policy Section 3.06.010(4)(C)(iii)(a). c. Any council member may request dissolution of an Ad Hoc Committee subject to the following process:
a. Submit written request to the City Clerk to agendize the dissolution.
b. The City Clerk shall agendize the dissolution for the next regular council meeting.
c. Dissolution shall require a two-thirds super majority vote (5 votes).
5) COMMITTEE MEETINGS
A) Committee meetings shall be open to the public; however, the Committee may hold closed meetings for the same reason(s) that the full Council holds closed sessions.

B) Committee meetings shall be scheduled at a time and place to encourage public EXHIBIT 1 93
attendance and input and to accommodate authorities and experts germane to the topic under study or review.

E) The Vice Chairperson shall assume all duties and responsibilities in the absence of the Chairperson.

F) The Chairperson shall schedule Committee meetings and approve meeting agenda.

H) The presiding officer of the Council Committee meeting shall be the Committee Chairperson.

C) The Committee report shall be scheduled/placed on the City Council agenda at the direction of the Committee Chairperson.

E) The Committee report, upon signature by Committee members, shall be filed with the EXHIBIT 1 94
City Clerk and become a permanent record of the City.
§ 3.06.020. Responsibilities.

Mayor: Establish Council Committees with concurrence of City Council.

City Manager: Provide recorder for the Committee meetings. § 3.06.030. Relevant authority.

None applicable.
§ 3.06.040. Related administrative directive, city policy, city procedure.

None applicable.
§ 3.06.050. Related forms, documents, or links.

None applicable.
§ 3.06.060. Frequently asked questions.

None applicable.
§ 3.06.070. Update history.
7/6/81 - Adopted by Resolution No. 38,402
11/2/87 - Amended by Resolution No. 87-0603
3/5/90 - Amended by Resolution No. 90-0137
1/2/91 - Amended by Resolution No. 91-0017
1/28/91 - Amended by Resolution No. 91-0092
5/20/91 - Amended by Resolution No. 91-0357
10/7/91 - Amended by Resolution No. 91-0776
8/17/92 - Amended by Resolution No. 92-0542
12/19/94 - Amended by Resolution No. 94-0607
1/6/97 - Amended by Resolution No. 97-0012
5/24/05 - Amended by Resolution No. 05-0218
7/18/06 - Amended by Resolution No. 06-0371
1/9/07 - Amended by Resolution No. 07-0001
3/6/07 - Amended by Resolution No. 07-0081
EXHIBIT 1 95
2/2/10 - Amended by Resolution No. 10-0021
1/26/16 - Amended by Resolution No. 2016-01-26-1203
EXHIBIT 1 96
City of Stockton
Legislation Text
File #: 25-1080, Version: 1

ADOPTION OF A RESOLUTION WAIVING ANY PRIVILEGES APPLICABLE TO ANY EMAILS FROM THE CITY ATTORNEY’S OFFICE TO THE CITY COUNCIL ON JULY 30, 2025, AT APPROXIMATELY 1:13 PM

RECOMMENDATION
Consider adopting a resolution to waive any privileges applicable to any emails and the contents thereof from the city attorney’s office to the city council on July 30, 2025, at approximately 1:13 pm.

Summary
City Attorney’s Office was directed to agendize the waiver of any privileges applicable to any emails and the contents thereof from the city attorney’s office to the city council on July 30, 2025, at approximately 1:13 pm.

Council may now consider adopting a resolution to waive any privileges applicable to any emails and the contents thereof from the city attorney’s office to the city council on July 30, 2025, at approximately 1:13 pm.

DISCUSSION
Background
City Attorney’s Office was directed to agendize the waiver of any privileges applicable to any emails and the contents thereof from the city attorney’s office to the city council on July 30, 2025, at approximately 1:13 pm.

Present Situation
Council may now consider adopting a resolution to waive any privileges applicable to any emails and the contents thereof from the city attorney’s office to the city council on July 30, 2025, at approximately 1:13 pm.

A-C Privilege
Attorney-Client Privilege is codified under state law at Evidence Code section 954. This privilege ensures that clients receive accurate and competent legal advice by encouraging full disclosure to their attorney without fear that information will be revealed to others. For public entities, the holder of the privilege is the organization acting through its highest authorized officer, employee, or body in any given situation. For any investigations authorized by the Council, the holder is the City Council. As the holder of the privilege, the Council has the authority to waive the privilege.

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Closed Session
The League of California Cities provides a comprehensive guide which pares down the key components of the Brown Act. At its essence, the Brown Act takes a strong stance in favor of open meetings but carves out important exceptions expressly authorized under the Brown Act. Closed Sessions are allowed only for specified statutory topics. Generally, closed session conversations amongst the Council ensure full and frank discussion on often sensitive topics. The Brown Act allows waiver by the City Council (Gov. Code § 54963(a)).

Financial Summary
There is no financial impact for waiving privilege of any existing reports.

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98 Resolution No.

STOCKTON CITY COUNCIL

RESOLUTION WAIVING ANY PRIVILEGES APPLICABLE TO ANY EMAILS FROM THE CITY ATTORNEY’S OFFICE TO THE CITY COUNCIL ON JULY 30, 2025, AT APPROXIMATELY 1:13 PM
Attorney-Client Privilege is codified under state law at Evidence Code section 954; and
This privilege ensures that clients receive accurate and competent legal advice by encouraging full disclosure to their attorney without fear that information will be revealed to others; and
The City Council, as the holder of the privilege, has the authority to waive the privilege; and
The Brown Act takes a strong stance in favor of open meetings but carves out important exceptions expressly authorized under the Brown Act; and Closed session conversations amongst the Council ensure full and frank discussion on often sensitive topics; and
The Brown Act allows the City Council to waive the privilege (Gov. Code § 54963(a)); and
The City Attorney’s Office was directed to agendize the waiver of any privileges applicable to any emails and the contents thereof from the city attorney’s office to the city council on July 30, 2025, at approximately 1:13 pm.; now, therefore, //
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99 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF STOCKTON, AS FOLLOWS:

The City Council waives all applicable privileges associated with any emails and the contents thereof from the city attorney’s office to the city council on July 30, 2025, at approximately 1:13 pm.

PASSED, APPROVED, and ADOPTED September 23, 2025 .

CHRISTINA FUGAZI
Mayor of the City of Stockton
ATTEST:

KATHERINE ROLAND, CMC, CPMC
City Clerk of the City of Stockton
100
City of Stockton
Legislation Text
File #: 25-1021, Version: 1

APPOINTMENT TO WATER ADVISORY GROUP

RECOMMENDATION
It is recommended that the City Council adopt a resolution authorizing an appointment to the Council Water Committee’s Water Advisory Group (WAG) of Katrina Bambula-Santos for a term commencing immediately and expiring January 31, 2027

DISCUSSION
Background
At the May 11, 2009 Council Water Committee (CWC) meeting, the Concerned Citizen Coalition of Stockton requested the formation of an advisory group to provide information to the City Council on current and future issues impacting the City’s utilities. The guidelines governing formation and operation of the Water Advisory Group (WAG), including appointments and meeting schedule, were developed at the July 8, 2009 CWC meeting and approved by the City Council (Resolution 09-0279).

The WAG serves as an advisory body to the City Council Water Committee regarding issues impacting the Water, Wastewater, and Stormwater Utilities; and includes review of the Municipal Utilities Department Monthly Operations and Maintenance Report. The WAG is comprised of seven members, with one appointed by each Councilmember and the Mayor. Each member’s term shall coincide with the appointing Councilmember’s term. Appointees shall reside within the service area of any of the three utilities and have no conflict of interest serving as a public appointee. There is no remuneration for service on the WAG.

Present Situation
Councilmember Blower has reviewed applications and made the following nomination for appointment:

Councilmember Blower, District 3 - Katrina Bambula-Santos

FINANCIAL SUMMARY
Members of the WAG do not receive remuneration. There is no financial impact to the General Fund in making this appointment.

Attachments
Attachment A - Redacted Applications
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101
Submit Date: Dec 07, 2024
Email Address
First Name Last Name
Street Address
City State Postal Code
Primary Phone Alternate Phone
Employer Job Title Occupation
Application for appointment and background information for City of Stockton Boards, Commissions, and Committees
Profile
Ethnicity
Gender
What district do you live in? *
District 2
The City of Stockton uses email as the preferred method of communication regarding your application. Is this acceptable to you?
Yes No
Employer Address
Are you currently serving on a City of Stockton Board, Commission, or Committee?
Yes No
Katrina Bambula-santos
Stockton CA
Katrina Bambula-santos
Attachment A 102
Which Boards would you like to apply for?
Water Advisory Group: Submitted
Question applies to multiple boards
NOTE: This Board requires membership with one of the following groups. If none, please remove board from your application. Are you knowledgeable, have experience in, or extensive background in any of the following areas? Select all that apply. *
Active in community activities significant enough to confirm knowledge of issues and individuals within the community
Possess decision-making abilities
Willingness to tolerate/promote change
I have been a resident of Stockton for at least 3 years.

Yes No
Question applies to San Joaquin Regional Transit District Board Have you resided within the Transit District boundaries for at least one year? Yes No
Question applies to San Joaquin Regional Transit District Board Are you a resident of the City of Stockton?
Yes No
Question applies to Water Advisory Group
Do you reside within one of the Stockton Municipal Utilities' three utility service areas?
Yes No
Question applies to Water Advisory Group
If yes, state which one:
2 Interests & Experiences
Katrina Bambula-santos
Attachment A 103
Upload a Resume
Please tell us about yourself and why you want to serve.

I am an active community member and have resided in Stockton since 1998. I have grown to love this city and call it my home. I want to be of service and help our community thrive. I want to see our city flourish by uplifting and supporting existing businesses as well as welcome new business and tourism to our city.

Please state the reason you would like to be a member of this board/commission.

I'd like to have a voice where it matters. I'd love to sit on this board to be an active community member to help make a difference in our city.

Have you served on an advisory group before?
Yes No
How did you hear about the position?
The City Clerk during a Leadership Stockton tour/Mock City council meeting City Council Policy 100-2 states that Commissioners are required to attend meetings on a regular basis. If appointed, will you be able to attend meetings regularly and devote the time necessary to fulfill your duties as a member?
Yes No
Do you or immediate family members have any relationship (professional, financial, other) that may present a potential conflict of interest for this advisory group?
Yes No
Background Information
Based on your best judgment, does this Commission make decisions that may affect any sources of income, interests in real property, or investments of you or your spouse?
Yes No
Voter Registration (Questions appear if required)
Katrina Bambula-santos
Attachment A 104
Question applies to multiple boards
I consent to the City of Stockton verifying my voter registration, if required.

Yes No
Submit Application
Enter Your Initials:

KBS
Date Signed
12/07/2024
Katrina Bambula-santos
Attachment A 105
Resolution No.

STOCKTON CITY COUNCIL

RESOLUTION APPROVING THE APPOINTMENT OF KATRINA BAMBULA-SANTOS TO THE COUNCIL WATER COMMITTEE’S WATER ADVISORY GROUP
The City of Stockton Municipal Utilities Department (MUD) provides potable water; wastewater collection, treatment, and disposal; and stormwater collection and disposal. In an effort to foster citizen input and transparency in MUD’s operations, the City Council authorized the formation of a Water Advisory Group whose purpose is to provide input and information to the Council Water Committee on issues impacting Water, Wastewater, and Stormwater; and
Positions on the Water Advisory Group coincide with the appointing Councilmember’s term; and
Councilmember Blower will appoint Katrina Bambula-Santos to the Water Advisory Group to a term commencing immediately; and now, therefore,

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

1. The following applicant found to meet the criteria for appointment and is authorized to serve as a member of the Council Water Committee’s Water Advisory Group for a term to commence on appointment and ending January 31, 2027:

Katrina Bambula-Santos - Appointment by Councilmember Blower, District 3

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

PASSED, APPROVED and ADOPTED September 23, 2025 .

CHRISTINA FUGAZI
Mayor of the City of Stockton
ATTEST:

KATHERINE ROLAND, CMC, CPMC
City Clerk of the City of Stockton
106
City of Stockton
Legislation Text
File #: 25-1059, Version: 1

APPROVAL OF CITY COUNCIL MINUTES

RECOMMENDATION
Approve the minutes from the City Council meetings of August 26, 2025 and September 9, 2025 Attachment A - 2025-08-26
Attachment B - 2025-09-09
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Attachment A 108
Attachment A 109
Attachment A 110
Attachment A 111
Attachment A 112
Attachment A 113
Attachment A 114
Attachment A 115
Attachment A 116
Attachment A 117
Attachment A 118
Attachment A 119
Attachment A 120
Attachment A 121
Attachment B 122
Attachment B 123
Attachment B 124
Attachment B 125
Attachment B 126
Attachment B 127
Attachment B 128
Attachment B 129
Attachment B 130
Attachment B 131
Attachment B 132
City of Stockton
Legislation Text
File #: 25-0932, Version: 1

RESOLUTION AUTHORIZING THE GRANT OF EASEMENTS TO UNION PACIFIC RAILROAD

COMPANY FOR THE STOCKTON DIAMOND GRADE SEPARATION PROJECT

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

1. Authorize the grant of easements to Union Pacific Railroad Company for the Stockton Diamond Grade Separation Project, for the areas depicted in Exhibits 1, 2, 3, 4, and 5 of the resolution;

2. Authorize the filing of Notice of Exemption No. 46-25 under the California Environmental Quality Act (CEQA) for the grant of easements to Union Pacific Railroad Company; and

3. Authorize the City Manager, or designee, to take whatever actions are necessary and appropriate to carry out the purposes and intent of the resolution.

Summary
The Union Pacific Railroad Company (UPRR) and the San Joaquin Regional Rail Commission (SJRRC) have requested the City of Stockton grant a series of easements necessary for the construction of the Stockton Diamond Grade Separation Project (Attachment A - Vicinity map and Attachment B - Aerial Map).

DISCUSSION
Background
The tracks of two major railroads intersect at-grade in the City of Stockton at what is called the Stockton Diamond. The rail intersection, located just south of Downtown Stockton near South Aurora Street and East Scotts Avenue, is the busiest, most congested rail bottleneck in California. The rail backup at the Stockton Diamond creates operational inefficiencies for goods movement both locally within the Central Valley and across the national railway network. It also impacts the frequency, reliability, and potential expansion opportunity of passenger rail services. The proposed project, known as the Stockton Diamond Grade Separation Project, will grade separate the principal lines of BNSF Railway (BNSF) and Union Pacific Railroad (UPRR) at the Stockton Diamond, creating uninterrupted flow of rail traffic through the crossing. This will be accomplished by building a new elevated UPRR rail structure that crosses over the BNSF tracks, thereby removing the congested rail intersection.

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File #: 25-0932, Version: 1
Present Situation
In order for the Stockton Diamond Grade Separation Project to receive right-of-way certification and proceed with construction, UPRR and SJRRC have requested the City grant a series of easements.

The easements coincide with the at-grade crossings at Main Street, Market Street, and Lafayette Street, and with the aerial crossings at Hazelton Avenue and Dr. Martin Luther King Jr. Boulevard.

The proposed action will provide UPRR and SJRRC with the perpetual right to construct, operate, and maintain the elevated structure over and across the City’s roadway network. Due to federal funding requirements for the Project, the easements must be granted and recorded by the end of September 2025 for SJRRC to complete the right-of-way certification process.

NOTIFICATION
On September 12, 2025, as required by the City Charter Section 510, a Notice of Intention to Grant or Sell Real Property interest was advertised in the legal notice section of The Record at least ten days prior to Council consideration of this action.

ENVIRONMENTAL CLEARANCE
It has been determined by the Community Development Department that this action/project is Categorically Exempt under California Environmental Quality Act (CEQA) and is granted a “general rule exemption” under Section 15061(B)(3) since there is no possibility that the activity in question would have significant effect on the environment and the activity is not subject to CEQA. In accordance with Section 65402 of the Government Code, the Community Development Department further determined that this activity/project conforms to the City’s General Plan Policy Document, as amended.

FINANCIAL SUMMARY
All advertising costs necessary to process the grant of easement interests to UPRR, approximately $500, will be paid from the Real Property Publicity & Advertising Account, included in the Economic Development Department’s approved operating budget.

Attachment A - Vicinity Map
Attachment B - Aerial Map
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134

VICINITY MAP - STOCKTON DIAMOND GRADE SEPARATION PROJECT

ATTACHEMENT A
135

AERIAL MAP - STOCKTON DIAMOND GRADE SEPARATION PROJECT

ATTACHMENT B
136
Resolution No.

STOCKTON CITY COUNCIL

RESOLUTION AUTHORIZING THE GRANT OF EASEMENTS TO UNION PACIFIC

RAILROAD COMPANY FOR THE STOCKTON DIAMOND GRADE SEPARATION

PROJECT
The Union Pacific Railroad Company (UPRR) and the San Joaquin Regional Rail Commission (SJRRC) have requested the City of Stockton grant easements required for the construction of the Stockton Diamond Grade Separation Project, a critical infrastructure project that will improve freight and passenger rail operations throughout the region; and
The project will eliminate the at-grade rail crossing at the Stockton Diamond by constructing a grade-separated crossing that will allow uninterrupted rail traffic; and The areas required for the easements include existing at-grade crossings at Main Street, Market Street, and Lafayette Street, and aerial crossings at Hazelton Avenue, and Dr. Martin Luther King Jr. Boulevard, as depicted in Exhibits 1, 2, 3, 4, and 5 of this resolution; and
The granting of the requested easements is necessary for UPRR and SJRRC to obtain right-of-way certification and proceed with construction, operation, and maintenance of the elevated structure over and across the City’s roadway network; and A notice of intention to grant or sell real property interest was published on September 12, 2025, in accordance with Section 510 of the City Charter, and at least ten (10) days prior to City Council consideration of this resolution; and The Community Development Department has determined that this action/project is exempt from the requirements of the California Environmental Quality Act (CEQA) and is granted a “Categorical Exemption” per CEQA Guidelines by section 15061(B)(3); and City staff concur with, and recommend to City Council, the granting of a series of easements to UPRR; now, therefore,

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

1. Authorize the grant of easements to Union Pacific Railroad Company for the Stockton Diamond Grade Separation Project, as described and depicted in Exhibits 1, 2, 3, 4, and 5, attached hereto and incorporated herein by this reference.

2. Authorize the filing of Notice of Exemption No. 46-25 under the California Environmental Quality Act (CEQA) for the grant of easements to Union Pacific Railroad Company, a copy of which is attached as Exhibit 6 and incorporated by this reference. 137

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

PASSED, APPROVED, and ADOPTED: September 23, 2025 .

CHRISTINA FUGAZI
Mayor of the City of Stockton
ATTEST:

KATHERINE ROLAND, CMC, CPMC
City Clerk of the City of Stockton
138
EXHIBIT 1 139

WEBER AVENUE

MAIN STREET

MARKET STREET

WASHINGTON STREET

LAFAYETTE STREET

SONORA STREET

CHURCH STREET

HAZELTON STREET

CHANNEL STREET
AURORA
STREET

SACRAMENTO
STREET
GRANT
STREET

AMERICAN
STREET
UNION
STREET

PILGRIM
STREET

AIRPORT
WAY
SIERRA
N
EVADA
STREET
WILSON
WAY
KSN POINT 50033

FOUND T-BAR TAGGED
"STATE OF CALIF. SJ 75"
CALTRANS CONTROL MON. #149
PER RECORD OF SURVEY 29-141

POINT OF COMMENCEMENT
FOUND C.O.S. MON. #419
STAMPED "14S-13" PER
RECORD OF SURVEY 39-061
S57°42'29"E
1049.26'

SCOTTS AVENUE
UNION

PACIFIC

RAILROAD
N12°52'36"W
1425.36'

MAIN STREET
2,132 SQ.FT. ±
S78°22'51"W
261.95'

THE LINEWORK SHOWN ON THIS VICINITY MAP IS

BASED ON THE SAN JOAQUIN COUNTY GIS

PARCELS AND IS FOR ORIENTATION PURPOSES

THIS EXHIBIT IS FOR GRAPHIC
PURPOSES ONLY. ANY ERRORS OR

OMISSIONS ON THIS EXHIBIT SHALL
NOT AFFECT THE DEED DESCRIPTION.

BEING A PORTION OF MARKET STREET,

EAST OF CENTER STREET,
SECTIONS 20 AND 32 OF
THE C.M. WEBER GRANT,

CITY OF STOCKTON,

COUNTY OF SAN JOAQUIN,

STATE OF CALIFORNIA
EXHIBIT 1 140
1 3
5 12
10 8
6 4
2 13
14 15
16 1
3 5
7 9
11 1
10 13
14 15
16 APN 151-202-090-000

ALFONSO OCAMPO
DN 2021-088058
APN 151-202-060-000

RAMON GONZALEZ,

TRUSTEE

UNION PACIFIC

RAILROAD COMPANY
10' FIBER OPTIC

EASEMENT PROPERTY
DN 2005-043709
APN 151-202-070-000

UNION PACIFIC

RAILROAD

COMPANY
APN 151-202-080-000

UNION PACIFIC

RAILROAD

COMPANY
UNION
STREET

80.8 30.0

80.8'
APN 151-202-030-000
RAMON

GONZALEZ,

TRUSTEE
MAIN STREET 60.6

APPROXIMATE'

FIBER OPTIC

LINE FROM

SURVEWEST
SURVEY
APN
151-201-090-000

UNION PACIFIC

RAILROAD

COMPANY
APN 151-201-030-000

SAN JOAQUIN

REGIONAL

RAIL COMMISSION
APN 151-201-020-000
SAN

JOAQUIN

REGIONAL
RAIL

COMMISSION
APN
151-201-050-000

UNION PACIFIC

RAILROAD

COMPANY
APN 151-201-060-000

SAN JOAQUIN REGIONAL

RAIL COMMISSION

APPROXIMATE'

FIBER OPTIC

LINE FROM

SURVEWEST

SURVEY CABRAL

STATION SITE

TIE LINE
N12°52'36"W
1425.36'

TRUE POINT OF

BEGINNING
S78°22'51"W
261.95'
S78°22'51"W

41.04'
S22°37'53"E

61.74'
N78°22'51"E

29.32'
N11°41'09"W

60.60'
APN 151-201-090-000

UNION PACIFIC

RAILROAD COMPANY
DN 1998-102538
UPRR
(SACRAMENTO

STREET)

MAIN STREET

CROSSING
2,132 SQ.FT. ±

BEING A PORTION OF

MARKET STREET,

EAST OF CENTER STREET,
SECTIONS 20 AND 32 OF
THE C.M. WEBER GRANT,

CITY OF STOCKTON,

COUNTY OF SAN JOAQUIN,

STATE OF CALIFORNIA,

THE BEARINGS AND DISTANCES SHOWN

HEREON ARE BASED ON THE CALIFORNIA
COORDINATE SYSTEM OF 1983, ZONE 3 (CCS83,
ZONE 3), 1991.35 EPOCH SHOWN ON RECORD OF
SURVEY FILED DECEMBER 3, 2001 IN BOOK 35
OF SURVEYS, PAGE 005, SAN JOAQUIN COUNTY
RECORDS. ALL DISTANCES GIVEN ARE GRID

DISTANCES, TO OBTAIN GROUND DISTANCES
MULTIPLY BY 1.00006115.

EXHIBIT 1 141
EXHIBIT 2 142

WEBER AVENUE

MAIN STREET

MARKET STREET

WASHINGTON STREET

LAFAYETTE STREET

SONORA STREET

CHURCH STREET

HAZELTON STREET

MINER AVENUE

CHANNEL STREET
AURORA
STREET

SACRAMENTO
STREET
GRANT
STREET

AMERICAN
STREET
UNION
STREET

PILGRIM
STREET

AIRPORT
WAY
SIERRA
N
EVADA
STREET
WILSON
WAY
KSN POINT 50033

FOUND T-BAR TAGGED
"STATE OF CALIF. SJ 75"
CALTRANS CONTROL MON. #149
PER RECORD OF SURVEY 29-141

POINT OF COMMENCEMENT
FOUND C.O.S. MON. #419
STAMPED "14S-13" PER
RECORD OF SURVEY 39-061
S57°42'29"E
1049.26'

SCOTTS AVENUE
UNION

PACIFIC

RAILROAD
N13°17'02"W
1061.66'
S78°23'18"W
191.58'

MARKET STREET

CROSSING
3,819 SQ.FT. ±

THE LINEWORK SHOWN ON THIS VICINITY MAP IS

BASED ON THE SAN JOAQUIN COUNTY GIS

PARCELS AND IS FOR ORIENTATION PURPOSES

THIS EXHIBIT IS FOR
GRAPHIC PURPOSES ONLY.

ANY ERRORS OR OMISSIONS

ON THIS EXHIBIT SHALL NOT

AFFECT THE DEED
DESCRIPTION.

BEING A PORTION OF MARKET STREET,

EAST OF CENTER STREET,
SECTIONS 20 AND 32 OF THE C.M. WEBER GRANT,

CITY OF STOCKTON,

COUNTY OF SAN JOAQUIN,

STATE OF CALIFORNIA
EXHIBIT 2 143
1 3
5 7
9 11
1 13
14 15
16 1
3 5
7 12
10 8
6 4
2 13
14 15
16 APN 151-202-090-000

ALFONSO OCAMPO
DN 2021-088058
APN 151-202-060-000

RAMON GONZALEZ,

TRUSTEE

UNION PACIFIC

RAILROAD COMPANY
10' FIBER OPTIC

EASEMENT PROPERTY
DN 2005-043709
APN
151-202-070-000

UNION PACIFIC

RAILROAD

COMPANY
APN 151-202-080-000

UNION PACIFIC

RAILROAD

COMPANY
UNION
STREET
(SACRAM
ENTO
STREET) 80.8

30.0 MARKET STREET 60.6

CROSSING
3,819 SQ.FT. ±

80.8'
APN 151-240-020
AND 151-240-500
JULIAN SEPULVEDA, JR.
& MARY SEPULVEDA
DN 2003-141632 APN 151-240-010-000

UNION PACIFIC

RAILROAD COMPANY UNION PACIFIC RAILROAD

COMPANY
10' FIBER OPTIC EASEMENT
PROPERTY DN 2003-141632
(LOCATION IS THE

EXISTING CENTERLINE OF

FIBER OPTIC LINE)
APN 151-202-030-000
RAMON

GONZALEZ,

TRUSTEE

TRUE POINT OF

BEGINNING

TIE LINE
N13°17'02"W
1061.66'
APN 151-220-060-000

UNION PACIFIC

RAILROAD COMPANY
N20°27'24"W

61.33'
S22°37'53"E

61.74'
N78°23'18"E

61.83'
S78°23'18"W

64.20'
S78°23'18"W
191.58'

BEING A PORTION OF

MARKET STREET,

EAST OF CENTER STREET,
SECTIONS 20 AND 32 OF
THE C.M. WEBER GRANT,

CITY OF STOCKTON,

COUNTY OF SAN JOAQUIN,

STATE OF CALIFORNIA,

THE BEARINGS AND DISTANCES SHOWN

DISTANCES, TO OBTAIN GROUND DISTANCES
MULTIPLY BY 1.00006115.

EXHIBIT 2 144
EXHIBIT 3 145

WEBER AVENUE

MAIN STREET

MARKET STREET

WASHINGTON STREET

LAFAYETTE STREET

SONORA STREET

CHURCH STREET

HAZELTON STREET

MINER AVENUE

CHANNEL STREET
AURORA
STREET

SACRAMENTO
STREET
GRANT
STREET

AMERICAN
STREET
UNION
STREET

PILGRIM
STREET

AIRPORT
WAY
SIERRA
N
EVADA
STREET
WILSON
WAY
KSN POINT 50033

FOUND T-BAR TAGGED
"STATE OF CALIF. SJ 75"
CALTRANS CONTROL MON. #149
PER RECORD OF SURVEY 29-141

POINT OF COMMENCEMENT
FOUND C.O.S. MON. #419
STAMPED "14S-13" PER
RECORD OF SURVEY 39-061
S57°42'29"E
1049.26'

SCOTTS AVENUE
UNION

PACIFIC

RAILROAD
N16°50'32"W
335.29'

LAFAYETTE STREET

CROSSING

0.14 ACRES ±
S78°20'09"W
124.26'

THE LINEWORK SHOWN ON THIS VICINITY MAP IS

BASED ON THE SAN JOAQUIN COUNTY GIS

PARCELS AND IS FOR ORIENTATION PURPOSES

THIS EXHIBIT IS FOR GRAPHIC
PURPOSES ONLY. ANY ERRORS OR

OMISSIONS ON THIS EXHIBIT SHALL
NOT AFFECT THE DEED DESCRIPTION.

BEING A PORTION OF LAFAYETTE STREET,

EAST OF CENTER STREET,
SECTIONS 20 AND 21 OF THE C.M. WEBER GRANT,

CITY OF STOCKTON,

COUNTY OF SAN JOAQUIN,

STATE OF CALIFORNIA
EXHIBIT 3 146
EXHIBIT 3 147
EXHIBIT 4 148
EXHIBIT 4 149
EXHIBIT 4 150
EXHIBIT 4 151
EXHIBIT 5 152
EXHIBIT 5 153

HAZELTON STREET
GRANT
STREET

SCOTTS AVENUE
UNION

PACIFIC

RAILROAD

WORTH STREET

ANDERSON STREET

JEFFERSON STREET
UNION
STREET

PILGRIM
STREET

AIRPORT
WAY
SIERRA
N
EVADA
STREET
AURORA
STREET

SACRAMENTO
STREET

STANISLAUS
STREET

AIRPORT
WAY
AURORA
STREET
DR. MARTIN LUTHER KING,

POINT OF COMMENCEMENT
FOUND C.O.S. MON. #1044
STAMPED "USCGS D745" PER
RECORD OF SURVEY 35-5
FOUND 3/4 " IRON PIPE PER
RECORD OF SURVEY 7-220
JR. BOULEVARD

CLAY STREET

JACKSON STREET
DR. MARTIN
LUTHER KING, JR.

BOULEVARD

0.20 ± ACRES

0.25 ± ACRES
S21°24'43"W

6.89'
S80°08'42"W
189.30'
N79°29'31"E
301.99'

THE LINEWORK SHOWN ON THIS VICINITY MAP IS

BASED ON THE SAN JOAQUIN COUNTY GIS

PARCELS AND IS FOR ORIENTATION PURPOSES

THIS EXHIBIT IS FOR GRAPHIC
PURPOSES ONLY. ANY ERRORS OR

OMISSIONS ON THIS EXHIBIT SHALL
NOT AFFECT THE DEED DESCRIPTION.

BEING A PORTION OF
DR. MARTIN LUTHER KING,
JR. BOULEVARD,

EAST OF CENTER STREET,
SECTION 21 OFTHE C.M.

WEBER GRANT,

CITY OF STOCKTON,

COUNTY OF SAN JOAQUIN,

STATE OF CALIFORNIA,

THE BEARINGS AND DISTANCES SHOWN HEREON ARE BASED ON THE CALIFORNIA COORDINATE SYSTEM OF 1983, ZONE 3 (CCS83, ZONE 3), 1991.35 EPOCH SHOWN ON RECORD OF SURVEY FILED DECEMBER 3, 2001 IN BOOK 35 OF SURVEYS, PAGE 005, SAN JOAQUIN COUNTY RECORDS. ALL DISTANCES GIVEN ARE GRID DISTANCES, TO OBTAIN GROUND DISTANCES MULTIPLY BY 1.00006115.

EXHIBIT 5 154
EXHIBIT 5 155

MEMORANDUM
September 12, 2025
TO: Nancy Arroyo, Real Property Agent I
Economic Development Department
FROM: Nicole D. Moore, LEED-AP, Contract Planner
Community Development Department
SUBJECT: CEQA NOE 46-25 - RIGHT-OF-WAY DEDICATIONS FOR THE STOCKTON

DIAMOND GRADE SEPARATION PROJECT
The Community Development Department received a request to review the above-referenced project for conformity with the Stockton General Plan and make an environmental determination pursuant to the California Environmental Quality Act (CEQA). The City of Stockton’s Economic Development Department received a request from the Union Pacific Railroad and the San Joaquin Regional Rail Commission to dedicate rights-of-way for the Stockton Diamond Grade Separation Project at the following crossings: Main Street, Market Street, Lafayette Street, Hazelton Avenue, and Dr. Martin Luther King Jr., Boulevard. Please see the attached Exhibits for more information.

In accordance with Government Code §65402, the Community Development Department determines the proposed dedication of land is neutral in regard to conformity with the Stockton General Plan. Future development of the subject parcels shall be under the jurisdiction of the City of Stockton.

Concerning the California Environmental Quality Act (CEQA) determination, the Community Development Department concludes that the dedication of rights-of-way is covered by the common sense exemption in CEQA Guidelines section 15061(b)(3), because it can be seen with certainty that there is no possibility that the activity in question (dedication of land) may have a significant effect on the environment. The project is also not subject to any of the exceptions to the use of a Categorical Exemption listed at CEQA Guidelines §15300.2.

Upon approval by City Council and per SB 69, the Economic Development Department is required to file the attached Notice of Exemption with the San Joaquin County Clerk’s Office to initiate a 35- day statute of limitations on court challenges. The Economic Development Department is also required to upload a copy of the filed NOE with the State Clearinghouse. Please retain a copy of the original posted notice within the project file in the Economic Development Department file directory.

By:

Nicole D. Moore, LEED-AP, Contract Planner
Attachments
Attachment A: Request and Project Location
Attachment B: Draft Notice of Exemption
EXHIBIT 6 156

MEMORANDUM
September 11, 2025
TO: Nicole Moore, Contract Planner
Community Development Department
FROM: Nancy Arroyo, Real Property Agent I
Economic Development Department
SUBJECT: RIGHT OF WAY – DEDICATIONS FOR THE STOCKTON DIAMOND

GRADE SEPARATION PROJECT
Please provide the appropriate environmental review for the above-referenced project as described below:

Project Title:

Applicant:

Description/Location:

Stockton Diamond Grade Separation Project Easement
Dedications
Union Pacific Railroad and San Joaquin Regional Rail
Commission
Five ROW Easement Dedications for the Stockton Diamond
• Main Street Crossing
• Market Street Crossing
• Lafayette Street Crossing
• Hazelton Avenue Crossing
• Dr. Martin Luther King, Jr. Blvd Crossing
Also, please make the required determination to conformity to the General Plan in accordance with Section 65402 of the Government Code. If you have questions regarding this request, please contact me at extension 7540.

NANCY ARROYO, REAL PROPERTY AGENT I

ECONOMIC DEVLEOPMENT DEPARTMENT
Attachment
EXHIBIT 6 157
EXHIBIT 6 158

WEBER AVENUE

MAIN STREET

MARKET STREET

WASHINGTON STREET

LAFAYETTE STREET

SONORA STREET

CHURCH STREET

HAZELTON STREET

CHANNEL STREET
AURORA
STREET

SACRAMENTO
STREET
GRANT
STREET

AMERICAN
STREET
UNION
STREET

PILGRIM
STREET

AIRPORT
WAY
SIERRA
N
EVADA
STREET
WILSON
WAY
KSN POINT 50033

FOUND T-BAR TAGGED
"STATE OF CALIF. SJ 75"
CALTRANS CONTROL MON. #149
PER RECORD OF SURVEY 29-141

POINT OF COMMENCEMENT
FOUND C.O.S. MON. #419
STAMPED "14S-13" PER
RECORD OF SURVEY 39-061
S57°42'29"E
1049.26'

SCOTTS AVENUE
UNION

PACIFIC

RAILROAD
N12°52'36"W
1425.36'

MAIN STREET
2,132 SQ.FT. ±
S78°22'51"W
261.95'

THE LINEWORK SHOWN ON THIS VICINITY MAP IS

BASED ON THE SAN JOAQUIN COUNTY GIS

PARCELS AND IS FOR ORIENTATION PURPOSES

THIS EXHIBIT IS FOR GRAPHIC
PURPOSES ONLY. ANY ERRORS OR

OMISSIONS ON THIS EXHIBIT SHALL
NOT AFFECT THE DEED DESCRIPTION.

BEING A PORTION OF MARKET STREET,

EAST OF CENTER STREET,
SECTIONS 20 AND 32 OF
THE C.M. WEBER GRANT,

CITY OF STOCKTON,

COUNTY OF SAN JOAQUIN,

STATE OF CALIFORNIA
EXHIBIT 6 159
1 3
5 12
10 8
6 4
2 13
14 15
16 1
3 5
7 9
11 1
10 13
14 15
16 APN 151-202-090-000

ALFONSO OCAMPO
DN 2021-088058
APN 151-202-060-000

RAMON GONZALEZ,

TRUSTEE

UNION PACIFIC

RAILROAD COMPANY
10' FIBER OPTIC

EASEMENT PROPERTY
DN 2005-043709
APN 151-202-070-000

UNION PACIFIC

RAILROAD

COMPANY
APN 151-202-080-000

UNION PACIFIC

RAILROAD

COMPANY
UNION
STREET

80.8 30.0

80.8'
APN 151-202-030-000
RAMON

GONZALEZ,

TRUSTEE
MAIN STREET 60.6

APPROXIMATE'

FIBER OPTIC

LINE FROM

SURVEWEST
SURVEY
APN
151-201-090-000

UNION PACIFIC

RAILROAD

COMPANY
APN 151-201-030-000

SAN JOAQUIN

REGIONAL

RAIL COMMISSION
APN 151-201-020-000
SAN

JOAQUIN

REGIONAL
RAIL

COMMISSION
APN
151-201-050-000

UNION PACIFIC

RAILROAD

COMPANY
APN 151-201-060-000

SAN JOAQUIN REGIONAL

RAIL COMMISSION

APPROXIMATE'

FIBER OPTIC

LINE FROM

SURVEWEST

SURVEY CABRAL

STATION SITE

TIE LINE
N12°52'36"W
1425.36'

TRUE POINT OF

BEGINNING
S78°22'51"W
261.95'
S78°22'51"W

41.04'
S22°37'53"E

61.74'
N78°22'51"E

29.32'
N11°41'09"W

60.60'
APN 151-201-090-000

UNION PACIFIC

RAILROAD COMPANY
DN 1998-102538
UPRR
(SACRAMENTO

STREET)

MAIN STREET

CROSSING
2,132 SQ.FT. ±

BEING A PORTION OF

MARKET STREET,

EAST OF CENTER STREET,
SECTIONS 20 AND 32 OF
THE C.M. WEBER GRANT,

CITY OF STOCKTON,

COUNTY OF SAN JOAQUIN,

STATE OF CALIFORNIA,

THE BEARINGS AND DISTANCES SHOWN

DISTANCES, TO OBTAIN GROUND DISTANCES
MULTIPLY BY 1.00006115.

EXHIBIT 6 160
EXHIBIT 6 161

WEBER AVENUE

MAIN STREET

MARKET STREET

WASHINGTON STREET

LAFAYETTE STREET

SONORA STREET

CHURCH STREET

HAZELTON STREET

MINER AVENUE

CHANNEL STREET
AURORA
STREET

SACRAMENTO
STREET
GRANT
STREET

AMERICAN
STREET
UNION
STREET

PILGRIM
STREET

AIRPORT
WAY
SIERRA
N
EVADA
STREET
WILSON
WAY
KSN POINT 50033

FOUND T-BAR TAGGED
"STATE OF CALIF. SJ 75"
CALTRANS CONTROL MON. #149
PER RECORD OF SURVEY 29-141

POINT OF COMMENCEMENT
FOUND C.O.S. MON. #419
STAMPED "14S-13" PER
RECORD OF SURVEY 39-061
S57°42'29"E
1049.26'

SCOTTS AVENUE
UNION

PACIFIC

RAILROAD
N13°17'02"W
1061.66'
S78°23'18"W
191.58'

MARKET STREET

CROSSING
3,819 SQ.FT. ±

THE LINEWORK SHOWN ON THIS VICINITY MAP IS

BASED ON THE SAN JOAQUIN COUNTY GIS

PARCELS AND IS FOR ORIENTATION PURPOSES

THIS EXHIBIT IS FOR
GRAPHIC PURPOSES ONLY.

ANY ERRORS OR OMISSIONS

ON THIS EXHIBIT SHALL NOT

AFFECT THE DEED
DESCRIPTION.

BEING A PORTION OF MARKET STREET,

EAST OF CENTER STREET,
SECTIONS 20 AND 32 OF THE C.M. WEBER GRANT,

CITY OF STOCKTON,

COUNTY OF SAN JOAQUIN,

STATE OF CALIFORNIA
EXHIBIT 6 162
1 3
5 7
9 11
1 13
14 15
16 1
3 5
7 12
10 8
6 4
2 13
14 15
16 APN 151-202-090-000

ALFONSO OCAMPO
DN 2021-088058
APN 151-202-060-000

RAMON GONZALEZ,

TRUSTEE

UNION PACIFIC

RAILROAD COMPANY
10' FIBER OPTIC

EASEMENT PROPERTY
DN 2005-043709
APN
151-202-070-000

UNION PACIFIC

RAILROAD

COMPANY
APN 151-202-080-000

UNION PACIFIC

RAILROAD

COMPANY
UNION
STREET
(SACRAM
ENTO
STREET) 80.8

30.0 MARKET STREET 60.6

CROSSING
3,819 SQ.FT. ±

80.8'
APN 151-240-020
AND 151-240-500
JULIAN SEPULVEDA, JR.
& MARY SEPULVEDA
DN 2003-141632 APN 151-240-010-000

UNION PACIFIC

RAILROAD COMPANY UNION PACIFIC RAILROAD

COMPANY
10' FIBER OPTIC EASEMENT
PROPERTY DN 2003-141632
(LOCATION IS THE

EXISTING CENTERLINE OF

FIBER OPTIC LINE)
APN 151-202-030-000
RAMON

GONZALEZ,

TRUSTEE

TRUE POINT OF

BEGINNING

TIE LINE
N13°17'02"W
1061.66'
APN 151-220-060-000

UNION PACIFIC

RAILROAD COMPANY
N20°27'24"W

61.33'
S22°37'53"E

61.74'
N78°23'18"E

61.83'
S78°23'18"W

64.20'
S78°23'18"W
191.58'

BEING A PORTION OF

MARKET STREET,

EAST OF CENTER STREET,
SECTIONS 20 AND 32 OF
THE C.M. WEBER GRANT,

CITY OF STOCKTON,

COUNTY OF SAN JOAQUIN,

STATE OF CALIFORNIA,

THE BEARINGS AND DISTANCES SHOWN

DISTANCES, TO OBTAIN GROUND DISTANCES
MULTIPLY BY 1.00006115.

EXHIBIT 6 163
EXHIBIT 6 164

WEBER AVENUE

MAIN STREET

MARKET STREET

WASHINGTON STREET

LAFAYETTE STREET

SONORA STREET

CHURCH STREET

HAZELTON STREET

MINER AVENUE

CHANNEL STREET
AURORA
STREET

SACRAMENTO
STREET
GRANT
STREET

AMERICAN
STREET
UNION
STREET

PILGRIM
STREET

AIRPORT
WAY
SIERRA
N
EVADA
STREET
WILSON
WAY
KSN POINT 50033

FOUND T-BAR TAGGED
"STATE OF CALIF. SJ 75"
CALTRANS CONTROL MON. #149
PER RECORD OF SURVEY 29-141

POINT OF COMMENCEMENT
FOUND C.O.S. MON. #419
STAMPED "14S-13" PER
RECORD OF SURVEY 39-061
S57°42'29"E
1049.26'

SCOTTS AVENUE
UNION

PACIFIC

RAILROAD
N16°50'32"W
335.29'

LAFAYETTE STREET

CROSSING

0.14 ACRES ±
S78°20'09"W
124.26'

THE LINEWORK SHOWN ON THIS VICINITY MAP IS

BASED ON THE SAN JOAQUIN COUNTY GIS

PARCELS AND IS FOR ORIENTATION PURPOSES

THIS EXHIBIT IS FOR GRAPHIC
PURPOSES ONLY. ANY ERRORS OR

OMISSIONS ON THIS EXHIBIT SHALL
NOT AFFECT THE DEED DESCRIPTION.

BEING A PORTION OF LAFAYETTE STREET,

EAST OF CENTER STREET,
SECTIONS 20 AND 21 OF THE C.M. WEBER GRANT,

CITY OF STOCKTON,

COUNTY OF SAN JOAQUIN,

STATE OF CALIFORNIA
EXHIBIT 6 165
EXHIBIT 6 166
EXHIBIT 6 167
EXHIBIT 6 168
EXHIBIT 6 169
EXHIBIT 6 170
EXHIBIT 6 171
EXHIBIT 6 172

HAZELTON STREET
GRANT
STREET

SCOTTS AVENUE
UNION

PACIFIC

RAILROAD

WORTH STREET

ANDERSON STREET

JEFFERSON STREET
UNION
STREET

PILGRIM
STREET

AIRPORT
WAY
SIERRA
N
EVADA
STREET
AURORA
STREET

SACRAMENTO
STREET

STANISLAUS
STREET

AIRPORT
WAY
AURORA
STREET
DR. MARTIN LUTHER KING,

POINT OF COMMENCEMENT
FOUND C.O.S. MON. #1044
STAMPED "USCGS D745" PER
RECORD OF SURVEY 35-5
FOUND 3/4 " IRON PIPE PER
RECORD OF SURVEY 7-220
JR. BOULEVARD

CLAY STREET

JACKSON STREET
DR. MARTIN
LUTHER KING, JR.

BOULEVARD

0.20 ± ACRES

0.25 ± ACRES
S21°24'43"W

6.89'
S80°08'42"W
189.30'
N79°29'31"E
301.99'

THE LINEWORK SHOWN ON THIS VICINITY MAP IS

BASED ON THE SAN JOAQUIN COUNTY GIS

PARCELS AND IS FOR ORIENTATION PURPOSES

THIS EXHIBIT IS FOR GRAPHIC
PURPOSES ONLY. ANY ERRORS OR

OMISSIONS ON THIS EXHIBIT SHALL
NOT AFFECT THE DEED DESCRIPTION.

BEING A PORTION OF
DR. MARTIN LUTHER KING,
JR. BOULEVARD,

EAST OF CENTER STREET,
SECTION 21 OFTHE C.M.

WEBER GRANT,

CITY OF STOCKTON,

COUNTY OF SAN JOAQUIN,

STATE OF CALIFORNIA,

EXHIBIT 6 173
EXHIBIT 6 174

CITY OF STOCKTON

NOTICE OF EXEMPTION
TO: COUNTY CLERK FROM: Lead Agency
COUNTY OF SAN JOAQUIN City of Stockton
44 N. San Joaquin St., Ste. 260 c/o Economic Development Dept.

Stockton, CA 95202 400 E. Main St., 4th Floor
Stockton, CA 95202
NOTICE OF EXEMPTION PURSUANT TO PUBLIC RESOURCES CODE SECTION 21152(B) AND CALIFORNIA CODE OF REGULATIONS TITLE 14, SECTION 15062

PROJECT DATA
Project Title: Right-of-Way – Dedications for the Stockton Diamond Grade Separation Project CEQA Exemption File No.: NOE 46-25
Applicant: Union Pacific Railroad and San Joaquin County Regional Rail Commission Project Description/Location: The Applicant will be dedicating rights-of-way for the Stockton Diamond Grade Separation Project, which includes five (5) rights-of-ways to be dedicated, including crossings at Main Street, Market Street, Lafayette Street, Hazelton Avenue, and Dr. Martin Luther King Jr., Boulevard. For more information, please see the included Exhibits.

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

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

X The activity is exempt under the "common sense exemption" at CEQA Guidelines Section 15061(b)(3).

The project is "Statutorily Exempt" per CEQA Guidelines Section: __________ The project is "Categorically Exempt" per CEQA Guidelines Section 15301(c).

BASIS FOR FINDING OF EXEMPTION
X The activity does not qualify as a project and/or clearly could not have a significant effect on the environment and, therefore, CEQA does not apply.

The activity constitutes a discretionary project under the City's jurisdiction and qualifies as a project which has been determined not to have a significant effect on the environment and, therefore, is exempt from the provisions of CEQA under the above-noted statutory or categorical exemption(s).

TINA McCARTY, DIRECTOR September 12, 2025

ECONOMIC DEVELOPMENT DEPARTMENT (DATE OF PREPARATION)
By
Nancy Arroyo, Real Property Agent I (DATE OF FINAL APPROVAL) _____________________________________________________________________________________________

AFFIDAVIT OF FILING AND POSTING
I declare that on the date stamped above, I received and posted this notice or included it on a list of such notices which was posted as required by California Public Resources Code Section 21152(B). Said notice or list of notices will remain posted for 35 days from the filing date.
___________________________________________ ________________________________________________ Signature Title
_________________________________________
Posting Period Ending Date
EXHIBIT 6 175
City of Stockton
Legislation Text
File #: 25-0741, Version: 1
ADOPT A RESOLUTION DECLARING A PORTION OF REAL PROPERTY LOCATED AT 6461

BROOKSIDE ROAD AS EXEMPT SURPLUS LAND UNDER THE SURPLUS LAND ACT

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

2. Authorizing City staff to proceed with negotiations regarding the disposition of the exempt surplus land;

4. Authorizing the City Manager, or designee, to take all the necessary and appropriate actions to carry out the purpose and intent of this resolution.

Summary
The City has fee title to (owns) the real property located at 6461 Brookside Road (Attachment A - Vicinity Map, Attachment B - Aerial Map). The San Joaquin Flood Control Agency (SJAFCA) has identified a portion of unused land on the City’s property as a suitable mitigation site. City staff would like to dispose of a portion of this real property to SJAFCA in support of a levee improvement project to decrease flood risk along the San Joaquin River and adjoining waterways.

City Council may declare City-owned land exempt surplus from the Surplus Land Act, if the property meets exemption criteria outlined in section 103 of the Surplus Land Act and section 54221(f)(1) of the Government Code. The City meets the exemption criteria since the property will be transferred between two local agencies.

City staff recommends that the City Council declare a portion of the property at 6461 Brookside Road, containing 73.84-acres, as exempt surplus land and authorize staff to proceed with negotiating the disposition. Any proposed sale or transfer of the property will be returned to City Council for final approval.

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DISCUSSION
Background
The City of Stockton owns the real property located at 6461 Brookside Road, consisting of 114.39- acres. The subject property includes a facility currently occupied and operated by the Municipal Utilities Department, in addition to unused land that is not required for current or future City operations.

Administrative Directive HRD-02 (Attachment C) outlines the City’s standard procedures for the sale of real property. Under this directive, any property deemed surplus to the City’s current and anticipated future needs may be sold.

When City property is no longer needed, EDD circulates details of the property to all departments to confirm excess status. Once deemed excess, a recommendation is presented to the City Council for approval to formally declare the property surplus.

All City Departments were surveyed to determine the unused portion of the property as excess and concurred with the disposition of the portion of the subject parcel. The remainder of the parcel (including MUD facility) will remain unaffected and excluded from the exempt surplus declaration.

Present Situation
The San Joaquin Area Flood Control Agency (SJAFCA) submitted a request to acquire a portion of the City’s real property, containing 73.84-acres, in support of their Lower San Joaquin River levee improvement project (LSJR) to decrease flood risk. SJAFCA is proposing to improve flood risk management by repairing and enhancing the levees that surround the city through the construction of cut-off walls and the construction and operation of closure structures on Fourteen Mile Slough and Smith Canal.

Under the California Surplus Land Act (Government Code section 54220 et seq.), the City Council must declare property either “surplus land” or “exempt surplus land” before the City can dispose of it. “Exempt surplus land” is real property that is not necessary for the City’s use and falls within one of the exemptions specified in the Surplus Land Act. If the City Council declares property as “exempt surplus land” the City may sell the property to another eligible government entity without conducting the Notice of Availability process.

The City meets the exemption criteria outlined in SLA section 103(c)(5) and Government Code section 54221(f)(1)(D), because the property will be transferred to SJAFCA, a local public agency, via a Purchase and Sale Agreement, which will be presented separately to the City Council for approval at a later meeting.

Through this action, the City seeks to declare City owned land located on a portion of real property located at 6461 Brookside Road (APN 071-140-17) as exempt surplus land.

The Surplus Land Act requires the City to notify the Department of Housing and Community Development (HCD) of its determination. The attached resolution includes these findings. Upon City of Stockton Page 2 of 3 Printed on 9/18/2025
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File #: 25-0741, Version: 1
adoption, the resolution will be transmitted to HCD for a 30-day review period, prior to the disposition being brought forth to Council.

ENVIRONMENTAL CLEARANCE
The Community Development Department has determined that this action is Categorically exempt under CEQA Guidelines and is granted a ‘general rule exemption’ under the section 15061(B)(3) since there is no possibility that the activity in question would have significant effect on the environment and the activity is not subject to CEQA. The project is also not subject to any of the exceptions to the use of a Categorical Exemption listed at CEQA Guidelines section 15300.2. In accordance with section 65402 of the Government Code, the Community Development Department further determined that the project or actions of the City conforms to the City’s General Plan designation for the site and with the General Plan Policy Document, as amended.

FINANCIAL SUMMARY
There is no financial impact with this action. Sale of surplus property revenues are subject to the City’s Contingent Payment in the settlement agreement with Assured Guaranty. All future dispositions and/or development agreements will be brought back to City Council for approval.

Attachment A - Vicinity Map
Attachment B - Aerial Map
Attachment C - Administrative Directive HRD-02
City of Stockton Page 3 of 3 Printed on 9/18/2025
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178
City of Stockton, CA August 14, 2025
6461 Brooks ide Road - Vicini ty Map
Property Information
Property ID 07114017-141578
Location 6461 BROOKSIDE RD
Owner STOCKTON, CITY OF

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" = 1812.6482566552293 ft

ATTACHMENT A
179
City of Stockton, CA August 14, 2025
6461 Brooks ide Road - Aerial Map
Property Information
Property ID 07114017-141578
Location 6461 BROOKSIDE RD
Owner STOCKTON, CITY OF

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" = 1812.6482566552293 ft
ATTACHMENT B 180

CITY OF STOCKTON, CALIFORNIA

CITY MANAGER ADMINISTRATIVE DIRECTIVE
Subject: Directive No. HRD-02 Page No.1 of 5
Revised: 1/1/95
SALE OF REAL PROPERTY Effective Dale: 9/1/02
Reviewed: 7/7/06
I. PURPOSE
To establish standard procedures for the sale of real property belonging to the City of Stockton in order to identify individual and departmental responsibilities.

II. POLICY
Real Property that is surplus to the City's present and anticipated future needs should be considered for sale in order that it may serve a useful purpose, be returned to the active tax rolls, and provide revenue to the City General Fund.

III. PROCEDURE
A. Any department, upon becoming aware that a property is no longer necessary for use, shall notify the Housing and Redevelopment Department (HRD) which will investigate the possibility of a sale. HRD shall initiate the process by circulating a sketch of the property to all City Departments to determine if it is excess to City needs and if any easements must be reserved for existing City utilities or future use.

B. Upon receipt of department responses and providing the property is not required for any City purpose, HRD shall submit a map of the property to the City Manager together with a recommendation that the property be declared excess and sold.

C. The City Manager shall advise the City Council that the property is excess and a sale will be attempted.

D. Upon declaration by the City Manager that the property is surplus, the Housing and Redevelopment Department, Real Property Section, shall:

1. Request the Public Works Department to prepare a map and legal description of the parcel. The legal description should contain a reservation of mineral rights below a depth of 500 feet.

ATTACHMENT C 181

CITY OF STOCKTON, CALIFORNIA

CITY MANAGER ADMINISTRATIVE DIRECTIVE
Subject: Directive No. HRD-02 Page No.2 of 5
Revised: 1/1/95
SALE OF REAL PROPERTY Effective Dale: 9/1/02
Reviewed: 7/7/06

2. Obtain and place a "For Sale" sign on the surplus property.

3. Negotiate appraisal fee and order appraisal from a qualified independent appraiser. A qualified member of the Real Property Section staff may perform a staff estimate in cases where value is nominal or if otherwise directed by the City Manager.

4. Coordinate with appraiser to develop appraisal assumptions and limiting or special conditions.

5. Upon receipt or completion of the appraisal, conduct a staff appraisal review and have the appraiser make modifications or corrections, if necessary.

6. Submit a written appraisal review to the City Manager with recommendations for establishing a minimum sales price and the method of sale. The City Manager's execution and return of the approved appraisal review shall constitute authorization to proceed with the sale of the subject property.

7. Determine if the property is capable of independent development based on parcel size, frontage and setback requirements and provisions of applicable planning and zoning ordinances. a. If the property is not capable of independent development, it would first be offered to all adjoining property owners at the appraised value with the condition that any subsequent sale would require a lot merger of the subject parcel with the abutting owner's property. If more than one adjoining owner is interested in acquiring the subject property, the sale will be referred to the Finance Department, Purchasing Agent, to conduct a private bid sale between adjoining owners together with a recommendation for a minimum bid price (generally no less than 80% of appraised value). If no purchaser is identified by this process, the property would then be offered to the ATTACHMENT C 182

CITY OF STOCKTON, CALIFORNIA

CITY MANAGER ADMINISTRATIVE DIRECTIVE
Subject: Directive No. HRD-02 Page No.3 of 5
Revised: 1/1/95
SALE OF REAL PROPERTY Effective Dale: 9/1/02
Reviewed: 7/7/06
general public.
b. If the property is capable of independent development, notices offering the property for sale at current market value shall be sent to various public agencies pursuant to Government Code Section 54220, et seq. and if no purchaser is identified by this process, the property shall be offered for sale to the general public.

8. Sale to General Public.
a. When the subject property is capable of independent
development but not purchased by a public agency, and in those cases where the abutting owner(s) of property incapable of independent development are not interested in purchasing, the property shall be referred to the Finance Department, Purchasing Agent for sale to the general public. Such referral shall include documentation for the sale as appropriate, and a recommendation for either sealed bid or auction, based on the relative value of the property, the number of prospective purchasers, etc.
b. All written bids (including written bids submitted to qualify for oral bidding) shall be accompanied by a deposit of at least 10 percent of the amount of the bid in the form of a certified check, cashiers check or money order.
c. Upon completion of the oral bidding, the Purchasing Agent shall coordinate with the Real Property Section for execution of an Acknowledgment of Receipt of Earnest Money and Offer of Purchase by the successful bidder and the City. All contracts are to be approved as to form by the City Attorney's Office. d. Unsuccessful bidder's deposits shall be returned at the conclusion of oral bidding.

ATTACHMENT C 183

CITY OF STOCKTON, CALIFORNIA

CITY MANAGER ADMINISTRATIVE DIRECTIVE
Subject: Directive No. HRD-02 Page No.4 of 5
Revised: 1/1/95
SALE OF REAL PROPERTY Effective Dale: 9/1/02
Reviewed: 7/7/06
e. If after reasonable market exposure no purchaser has been identified, HRD shall submit a memorandum to the City
Manager containing a recommendation for continued sales efforts or retention of the property.

9. Request environmental clearance for the sale of the property from the Community Development Department, Planning Division, including a request for a determination as to conformity with the General Plan.

10. Prepare a Council agenda report covering the proposed property sale and submit to the City Manager. The City Attorney shall prepare the required resolution.

11. Upon approval of the City Manager, send "Notice of Intention to Sell Real Property Interest" to the City Clerk for publishing in the legal notice section of the Stockton Record.

12. Process all documents required to close escrow or otherwise complete the sale. Deposit all proceeds of sale into General Fund Account No. 010-000-461.00.00. Notify the Purchasing Agent to transfer any deposits from the in-and-out trust account to the General Fund account and notify the Finance Department, Accounting Division of the sale.

13. Update city property index and file to reflect the sale.

E. For the sale of real property without bids:

1. The City Council may, by resolution, provide for the sale of real property without first calling for bids:
a. When the bid procedure as set forth in this directive has been used and no bids have been received; or
b. When it finds that such action will be in the best interest of the City.

ATTACHMENT C 184

CITY OF STOCKTON, CALIFORNIA

CITY MANAGER ADMINISTRATIVE DIRECTIVE
SUbject: Directive No. HRD-02 Page No.5 of 5
Revised: 1/1/95
SALE OF REAL PROPERTY Effective Date: 9/1/02
Reviewed: 7/7/06

2. The resolution provided for in Section E(1) shall direct the City Manager to sell such property on the terms and conditions as may be specified by Council.

3. A deed, conveying the right, title and interest which the City may have in the property shall be given to the purchaser of any property sold pursuant to this Section, upon prior payment in cash, by certified check, by cashier's check, or by money order, of the full purchase price and any incidental expenses pertaining to the transaction.

APPROVED
J. GORDON P LMER, JR.

CITY MANAGER
::ODMAIGRPWISEICOS.CM.CM_Library:50801.1
ATTACHMENT C 185
Resolution No.

STOCKTON CITY COUNCIL
RESOLUTION DECLARING A PORTION OF REAL PROPERTY LOCATED AT 6461

BROOKSIDE ROAD AS EXEMPT SURPLUS LAND UNDER THE SURPLUS LAND

ACT AND FINDING THAT SUCH DECLARATION IS EXEMPT FROM

ENVIRONMENTAL REVIEW UNDER THE CALIFORNIA ENVIRONMENTAL QUALITY ACT
The City of Stockton (“City”) is the fee owner of real property located at 6461 Brookside Road (APN 071-140-17) consisting of 114.39-acres, and the portion of real property to be declared as exempt surplus land consists of 73.84-acres as described in Exhibit 1 and shown in Exhibit 2 (the “Property”); and
The City has no present or future use for the Property and the City Council desires to declare it surplus land and not necessary for the City’s use; and The Surplus Land Act, Government Code sections 54220 et. seq., establishes procedures for the disposition of “surplus land” owned by a “local agency” which generally requires said “surplus land” to be made available for affordable housing purposes, park and recreation purposes or open-space purposes before disposition; however, as provided by Government Code section 54222.3, these procedures do not apply to the disposal of “exempt surplus land” as defined in section 54221 (f)(1)(A) through 54221 (f)(1)(S); and
The Surplus Land Act, Government Code sections 54220 et seq., and the Department of Housing and Community Development’s Surplus Land Act Guidelines (“SLA Guidelines”) require local agencies to take formal action to declare land “surplus land” or “exempt surplus land” before disposing of the land; and The SLA Guidelines state that the governing board of a local agency must declare property to be “exempt surplus land” at a regular public meeting and that the declaration must be supported by written findings. The SLA Guidelines further require a local agency to provide the determination of exemption with written findings to the California Department of Housing and Community Development (“HCD”) at least thirty (30) days prior to disposition; and
Government Code section 54221(f)(1)(D) provides that “exempt surplus land” includes “land that a local agency is transferring to another local, state, or federal agency, or to a third-party intermediary for future dedication for the receiving agency’s use…”; and The Property is “exempt surplus land” under the Act because the City, a local agency, intends to dispose of the property to the San Joaquin Flood Control Agency 186
(SJAFCA), another local agency, for SJAFCA’s use to complete a levee improvement project; and
Approval of this Resolution will confirm the City Council’s declaration that the Property is exempt surplus land consistent with Government Code section 54221(f)(1)(D) and SLA Guideline section 103(c)(5); and
After approval of this Resolution, staff will submit a copy of this Resolution to HCD pursuant to SLA section 400(e) of the SLA Guidelines; now, therefore,

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

1. The City Council hereby declares that the portion of real property located at 6461 Brookside Road consisting of 73.84-acres, more particularly described in Exhibit 1 & Exhibit 2, attached hereto, and incorporated by this reference, is exempt surplus land pursuant to Government Code section 54221(f)(1)(D) because the Property is being transferred to another local agency, namely SJAFCA, and therefore as provided by Government Code section 54222.3 the provisions of the Surplus Land Act do not apply to the disposition of the Property.

2. Staff is hereby authorized to proceed with negotiations with SJAFCA regarding the disposition of the Property.

3. The adoption of this Resolution, which relates to the City Council’s determination that the Property is “exempt surplus land” pursuant to Government Code section 54221 (f)(1)(D), is categorically exempt from the requirements of the California Environmental Quality Act pursuant to CEQA Guidelines section 15061(B)(3).

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

PASSED, APPROVED, and ADOPTED September 23, 2025 .

CHRISTINA FUGAZI
Mayor of the City of Stockton
ATTEST:

KATHERINE ROLAND, CMC, CPMC
City Clerk of the City of Stockton
187
EXHIBIT “A”

SAN JOAQUIN AREA FLOOD CONTROL AGENCY

MITIGATION PARCEL
APN 071-140-17

LEGAL DESCRIPTION
All that property situate in Section 24, Township 2 North, Range 5 East, Mount Diablo Meridian, County of San Joaquin, State of California, being a portion of that certain GRANT DEED to the CITY OF STOCKTON recorded April 10, 1958, in Book 2058, at Page 393, Official Records of San Joaquin County, more particularly described as follows:

COMMENCING at a found 3/4” iron rod with cap stamped L.S. 7269 being a witness corner for the most easterly corner of PARCEL 2 as shown on that certain Record of Survey filed December 16, 2022 in Book 40 of Surveys, at Page 122, Official Records of San Joaquin County;
thence along the southerly line of said PARCEL 2, North 60°31’49” East, 25.00 feet to the most easterly corner of said Parcel 2, also being the most southerly corner of “CAMP 4” as shown on that certain map titled “MAP OF SURVEY DIVISION OF VIGNOLO & CORTOPASSI PROPERTY ON THE WRIGHT TRACT” filed January 22, 1957, in Book of Surveys, Volume 10 at Page 173, Official Records of San Joaquin County; thence along the southerly line of said “CAMP 4”, North 60°30’09” East, 4438.50 feet to the most southerly corner of said GRANT DEED;
thence along the westerly line of said GRANT DEED, North 28°48’27” West, 102.28 feet to the POINT OF BEGINNING;
thence continuing along said westerly line North 28°48'27" West, 2268.94 feet to a point on the left bank of Fourteen Mile Slough as shown on said map titled “MAP OF SURVEY DIVISION OF VIGNOLO & CORTOPASSI PROPERTY ON THE WRIGHT TRACT” ; thence along said left bank the following twenty one (21) courses:
1) North 79°09'32" East, 63.11 feet;
2) North 69°15'08" East, 91.47 feet;
3) North 59°44'25" East, 67.96 feet;
EXHIBIT 1 188
4) North 55°23'17" East, 81.94 feet;
5) North 52°49'58" East, 135.44 feet;
6) North 49°18’35” East, 74.03 feet;
7) North 52°57'49" East, 76.16 feet;
8) North 61°51'56" East, 23.01 feet;
9) North 67°59'36" East, 21.70 feet;
10)North 74°22'10" East, 46.81 feet;
11)North 84°15'45" East, 122.25 feet;
12)South 79°53'48" East, 87.90 feet;
13)South 77°56'53" East, 75.07 feet;
14)South 83°28'12" East, 89.53 feet;
15)South 88°27'48" East, 44.44 feet;
16)North 83°28'07" East, 68.01 feet;
17)North 79°48'28" East, 140.90 feet;
18)North 88°43'12" East, 14.89 feet;
19)North 77°11'43" East, 136.48 feet;
20)North 85°07'31" East, 45.74 feet;
21)North 80°20'30" East, 70.05 feet;
thence leaving said left bank the following seven (7) courses:
1) South 0°47'08" East, 231.80 feet to the beginning of a curve to the left, having a radius of 340.00 feet;
2) Along said curve southeasterly, through a central angle of 60°47'43", and an arc distance of 360.77 feet, having a chord bearing of N31°11’00” and a chord length of 344.08 feet.
3) South 61°34'51" East, 844.59 feet;
4) South 0°37'13" East, 561.13 feet;
5) South 17°11'12" East, 60.98 feet;
6) South 60°31'25" West, 1465.88 feet;
7) South 24°50'00" West, 110.89 feet to the POINT OF BEGINNING.

EXHIBIT 1 189
Subject to easements and rights of way per record.

Containing 73.84 acres, more or less.

The Basis of Bearings for this description is based upon the California Coordinate System of 1983, CCS(2011 adjustment), Zone III, Epoch 2017.50, in accordance with the California Public Resources Code §§ 8801-8819 . All distances cited hereon are grid distances in US Survey Feet. Divide grid distances by the combined scale factor of

0.9999442 to obtain ground level distances.

Shown graphically on Exhibit B, attached hereto and made a part hereof.

This real property description was prepared at Mark Thomas & Company Inc. by me or under my direction in conformance with the Professional Land Surveyors Act.

Mark Thomas & Company, Inc.
_________________________ September 3, 2025
Samuel R. McIntyre, LS 9313 Date
EXHIBIT 1 190
Exhibit B
San Joaquin Area Flood Control Agency
Mitigation Parcel
Portion of APN 071-140-17
Plat to Accompany Legal Description
City of Stockton
San Joaquin County, California
PORTION OF SECTION 24, T2N, R5E M.D.B.M.

THE BASIS OF BEARINGS FOR THIS DESCRIPTION IS BASED UPON THE CALIFORNIA COORDINATE SYSTEM OF 1983, CCS(2011 ADJUSTMENT), ZONE III, EPOCH 2017.50, IN ACCORDANCE WITH THE CALIFORNIA PUBLIC RESOURCES CODE §§ 8801-8819 . ALL DISTANCES CITED HEREON ARE GRID DISTANCES IN US SURVEY FEET. DIVIDE GRID DISTANCES BY THE COMBINED SCALE FACTOR OF 0.9999442 TO OBTAIN GROUND LEVEL DISTANCES.

EXHIBIT 2
191
Exhibit B
San Joaquin Area Flood Control Agency
Mitigation Parcel
Portion of APN 071-140-17
Plat to Accompany Legal Description
City of Stockton
San Joaquin County, California
PORTION OF SECTION 24, T2N, R5E M.D.B.M.

SCALE 1" = 500'
0 250 500 1000
Feet
EXHIBIT 2
192
City of Stockton
Legislation Text
File #: 25-0779, Version: 1

ACCEPT THE ANNUAL HEALTH BENEFITS REPORT AND ADOPT THE MONTHLY PREMIUM RATES FOR THE CITY’S 2026 EMPLOYEE HEALTH PLANS

RECOMMENDATION
It is recommended that the City Council approve a motion to:

1. Accept the Annual Health Benefits Report for the City’s medical, dental, and vision plans.

2. Approve the recommended monthly premium rates for the City’s 2026 employee health plans.

3. Authorize the City Manager or their designee to take the necessary and appropriate actions to carry out the purpose and intent of this motion.

Summary
The Annual Health Benefits Report (Attachment A) prepared by the City’s benefit consultant, Alliant Insurance Services, Inc., provides a comprehensive review of the renewal for employee health benefit plans and calculates the premium rates for the upcoming plan year.

Premium rates reflected in Attachment B will be effective January 1, 2026. Employer contributions are dependent upon the provisions of the Memoranda of Understanding with the various bargaining units and the Unrepresented Management/Confidential and Law Employees Compensation Plan (Unrepresented Compensation Plan).

On August 21, 2025, Human Resources met with SCEA, Fire 456, Fire Management, SPOA, SPMA, O&M, T&M, Water Supervisory and B&C Union Representatives to review and discuss upcoming changes.

On September 10, 2025, employees were informed about the rate increases, new plan options, and the open enrollment timeline.
2026 premium changes by plan are listed below:

Existing Plans:
· Kaiser Health Maintenance Organization (Kaiser HMO) +2.3% · Kaiser High-Deductible Health Plan (Kaiser HDHP) +0.4% · Kaiser Deductible HMO Plan (Kaiser DHMO) +0.4%
· Sutter Health Plus LG18 (Sutter HMO LG18) +34.94%
· Sutter High-Deductible Health Plan (Sutter HDHP HE08) +35.7% · Sutter Health Plus Deductible HMO Plan LG24 (Sutter DHMO LG24) +34.82% City of Stockton Page 1 of 4 Printed on 9/18/2025
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File #: 25-0779, Version: 1
New Plan Options:
· Sutter Health Plus LG22 (Sutter HMO LG22) +25.87%
· Sutter High-Deductible Health Plan HL12 (HDHP HL 12) +3.94% · Sutter Health Plus Deductible HMO Plan LG29 (Sutter DHMO LG29) +2.66% Dental/Vision Plans:
· Dental PPO -0.9%
· Dental DHMO - 0%
· VSP - 17.38%
The increase in Sutter premium rates is due to higher large claims, more members using non-Sutter Health facilities, and current market conditions. Unlike other providers, Sutter bases its utilization data on all Sutter members, rather than solely on City of Stockton data.

Alliant collaborated with Sutter to help the City retain its existing plans while adding three (3) new health plan options. These additional plans offer employees alternatives with higher out-of-pocket costs but lower premium increases. Instead of a uniform 35% increase, employees can choose plans with premium increases of 2.66%, 3.94%, or 25.87%.

DISCUSSION
Background
In 2025, health premium rates for all plans increased by an average of 20%. In December 2024, Council designated $2 million dollars to help mitigate the financial impact on employees. Human Resources met with Union Representatives and entered into side letter agreements to provide employees with an additional 10% increase towards employer contributions effective January 1, 2025.

Human Resources collaborated with Alliant, third-party administrator, to explore alternative program options and negotiate with carriers to find plans that are both comprehensive and cost-effective.

Although Alliant issued an RFP, they were unable to identify opportunities to join a pool program or find affordable plan options among various medical providers. Consequently, the City and Alliant worked directly with Sutter to negotiate renewal rates and plan options. As a result, Sutter agreed to reduce the premium renewal increase from 39% to 35% for 2026. Additionally, Sutter allowed the City to offer three (3) new plan options for Sutter members, providing choices with higher out-of-pocket costs but lower monthly premiums.

On August 21, 2025, Human Resources met with SCEA, Fire 456, Fire Management, SPOA, SPMA, O&M, T&M, Water Supervisory and B&C Union Representatives to review and discuss upcoming changes.

On September 10, 2025, employees were informed about the rate increases, new plan options, and the open enrollment timeline.

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File #: 25-0779, Version: 1
Present Situation
Fully Insured Medical Plans
The City is proposing to offer nine (9) fully insured medical plans:

1. Kaiser High-Deductible Health Plan (Kaiser HDHP)

2. Kaiser Health Maintenance Organization (Kaiser HMO)

3. Kaiser Deductible HMO Plan (Kaiser DHMO)

4. Sutter High-Deductible Health Plan HE08 (HDHP HE08)

5. Sutter High-Deductible Health Plan HL12 (HDHP HL12)

6. Sutter Health Plus LG18 (Sutter HMO LG18)

7. Sutter Health Plus LG22 (Sutter HMO LG22)

8. Sutter Health Plus Deductible HMO Plan LG24 (Sutter DHMO LG24)

9. Sutter Health Plus Deductible HMO Plan LG29 (Sutter DHMO LG29) Plan enrollment as of June 30, 2025:

Fully Insured Plan Enrollment as of 6/30/2025
Kaiser HMO 567
Kaiser HDHP 162
Kaiser Deductible HMO 44
Sutter HMO 433
Sutter HDHP 117
Sutter Deductible HMO 28
Total enrollment in fully insured plans 1,351
Employer Contribution
The employer contribution rates for the upcoming fiscal year are dependent upon completed MOUs with bargaining units and the Unrepresented Compensation Plan. The FY 2025-2026 (effective January 1, 2026) employer contribution rates are:

Tier Contribution Amount
Employee $814.00
Employee + 1 $1,477.00
Employee + Family $1,968.00
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Health Plan Premiums
Monthly health insurance premiums for 2026:

Kaiser
HMO
Kaiser
HDHP
Kaiser
DHMO
Sutter
HMO
LG18
Sutter
HMO
LG22
Sutter
HDHP
HE08
Sutter
HDHP
HL12
Sutter
DHMO
LG24
Sutter
DHMO
LG29
Employee only $926.77 $745.14 $793.40 $1,243.40 $1163.30 $1,057.70 $809.90 $1071.90 $819.90 Employee + one $1,668.18 $1,341.25 $1,428.12 $2,238.90 $2,095.30 $1,903.80 $1,457.70 $1,930.20 $1,476.60 Employee +
family
$2,224.25 $1,788.33 $1,904.16 $2,985.90 $2,794.40 $2,538.40 $1,943.60 $2,574.40 $1,969.60 Monthly Dental premiums for 2026:

Delta Dental HMO Delta Dental PPO
$19.84 $56.15
$38.26 $112.27
$83.55 $145.95
Monthly Vision premiums for 2026:

VSP
$6.14
$12.29
$15.95
OPERATING ENGINEERS’ LOCAL 3 (OE3) Health Plan Options
Employees in the OE3 bargaining groups including the Operations and Maintenance Unit (O&M), Trades and Maintenance Unit (T&M), and the Water Supervisory Unit have seven (7) additional health plan options available through the Operating Engineers’ Public and Miscellaneous Health and Welfare Trust Fund. Each year on January 1st, the OE3 plan rates are established and set by the Board of Trustees of the Operating Engineers’ Public and Miscellaneous Health and Welfare Trust Fund. The employer contribution costs are budgeted and funded through the Health Internal Service Fund (ISF). Currently, twenty employees participate in an OE3 plan. The administrative cost to manage each OE3 plan is $27.55 per employee per month. This administrative fee is paid by the employees enrolled in these plans.

FINANCIAL SUMMARY
Health plan premium rates for medical, dental, and vision employer contributions are reflected in the FY 2025-2026 Health Internal Service Fund budget.

Attachment A - 2026 Annual Health Benefits Report
Attachment B - 2026 Health Premiums Rates
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City of Stockton
August 21, 2025
2026 Renewal Overview
Christine Kerns
Billie Brown
ATTACHMENT A 197
Today’s
Agenda
Agenda
Executive Summary
Medical Plan Renewal
Ancillary Renewals
Contributions
Next Steps
2 ATTACHMENT A 198
Executive Summary
Topic
ATTACHMENT A 199
2025 Renewal Results
4 Line of coverage Vendor Funding Results
Medical Kaiser
Sutter Health Plan
Fully Insured
Fully Insured
+20%
+19%
Dental Delta Dental (PRISM)
Delta Dental HMO (Direct)
Self-Funded
Fully Insured
-0.2% (Suggested Funding Rates)
0% (no change)
Vision VSP Self-Funded -6.3% (Suggested Funding Rates)
ASO fee in guarantee through 1/1/2027
Life/AD&D/STD/LTD Lincoln (PRISM) Fully Insured N/A (rate guarantee through 1/1/2028) EAP Halcyon EAP Fully Insured N/A (rate guarantee through 1/1/2026) FSA/HSA/HRA Administration P&A N/A N/A (rate guarantee through 1/1/2028) COBRA Administration APA Benefits N/A N/A (rate guarantee through 1/1/2026) ATTACHMENT A 200
2026 Renewal Results
5 Line of coverage Vendor Renewal Date Funding Results
Medical Kaiser
Sutter Health Plan
1/1/2026
1/1/2026
Fully Insured
Fully Insured
+2.3%
+39.2%, negotiated 35%
Dental Delta Dental (PRISM)
Delta Dental HMO (Direct)
1/1/2026
RG Through 1/1/2027
Self-Funded
Fully Insured
0% (Rate Pass) (Suggested Funding Rates)
N/A (rate guarantee)
Vision VSP 1/1/2026 Self-Funded -17.38% (Suggested Funding Rates) ASO fee increase of 13% guaranteed for 3 years
Life/AD&D/STD/LTD Lincoln (PRISM) RG Through 1/1/2028 Fully Insured N/A (rate guarantee) EAP Halcyon EAP 1/1/2026 Fully Insured +6.2% for 1 year FSA/HSA/HRA Administration P&A RG Through 1/1/2028 N/A N/A (rate guarantee) COBRA Administration APA Benefits 1/1/2026 N/A Pending Renewal (expected in early Q4) ATTACHMENT A 201
2026 Financial Overview
6 Line of Coverage Current Initial Renewal % ∆ Negotiated Renewal % ∆ Sutter Health Plan HMO $8,527,394 $11,856,013 39.0% $11,501,170 34.9% Sutter Health Plan HDHP $2,050,508 $2,868,041 39.9% $2,782,100 35.7% Kaiser HMO $11,527,605 $11,779,853 2.2% $11,779,853 2.2% Kaiser HDHP $2,720,706 $2,730,783 0.4% $2,730,783 0.4%
In Rate Guarantee In Rate Guarantee
Delta Dental DHMO $131,754 $131,754 0.0% $131,754 0.0%
Delta Dental DPPO (PRISM) - Self-Funded $1,446,194 $1,446,194 0.0% $1,446,194 0.0% VSP Vision - Self-Funded $240,146 $198,399 -17.4% $198,399 -17.4% In Rate Guarantee In Rate Guarantee
Lincoln (PRISM) Basic Life and AD&D $99,638 $99,638 0.0% $99,638 0.0% In Rate Guarantee In Rate Guarantee
Lincoln (PRISM) Long Term Disability $326,241 $326,241 0.0% $326,241 0.0% In Rate Guarantee In Rate Guarantee
SunLife Basic Life and AD&D (MGMT B&C EEs Only) $5,426 $5,426 0.0% $5,426 0.0% Halcyon EAP $30,171 $32,033 6.2% $32,033 6.2%
APA COBRA $11,777 $11,777 0.0% $11,777 0.0%
In Rate Guarantee In Rate Guarantee
P&A FSA $7,303 $7,303 0.0% $7,303 0.0%
In Rate Guarantee In Rate Guarantee
P&A Commuter $273 $273 0.0% $273 0.0%
In Rate Guarantee In Rate Guarantee
P&A HSA $18,780 $18,780 0.0% $18,780 0.0%
In Rate Guarantee In Rate Guarantee
P&A HRA $8,154 $8,154 0.0% $8,154 0.0%
TOTAL ANNUAL PREMIUM $27,152,071 $31,520,663 $31,079,879 ANNUAL DOLLAR CHANGE $4,368,592 $3,927,808
ANNUAL PERCENTAGE CHANGE 16.1% 14.5%
ATTACHMENT A 202
Medical Plan Renewal
Topic
ATTACHMENT A 203
Medical Financial Summary
8 Kaiser Current Initial Renewal % ∆ Negotiated Renewal % ∆ Kaiser HMO $10,949,070 $11,199,085 2.3% $11,199,085 2.3% Kaiser DHMO $578,535 $580,769 0.4% $580,769 0.4%
Kaiser HDHP $2,720,706 $2,730,783 0.4% $2,730,783 0.4%
KAISER ANNUAL PREMIUM $14,248,311 $14,510,636 1.8% $14,510,636 1.8% Sutter Health Plus Current Initial Renewal % ∆ Negotiated Renewal % ∆ SHP HMO $8,118,642 $11,288,266 39.0% $10,950,371 34.9%
SHP DHMO $408,752 $567,748 38.9% $550,799 34.8%
SHP HDHP $2,050,508 $2,868,041 39.9% $2,782,100 35.7%
SHP ANNUAL PREMIUM $10,577,903 $14,724,054 39.2% $14,283,270 35.0% TOTAL MEDICAL ANNUAL PREMIUM $24,826,213
ANNUAL PERCENTAGE CHANGE 17.8% 16.0%
$29,234,690 $28,793,906
ATTACHMENT A 204
Renewal History
Kaiser Sutter Health Plus
2021 +4.1% +2.52%
2022 +1% +6.9%
2023* +12% +7.3%
2025 +20% +19%
2026 +2.3 +39%, Neg. 35%
Average Renewal +7.9% +14.14%
*The medical plans renewed on 7/1/2023 with an 18-month guarantee (the final HDHP increase was lower due to plan design changes)
9 ATTACHMENT A 205
Healthcare Cost Factors
10 Mental Health
1 in 5 employees that go out on leave for caregiving, take another leave within a year with a mental health or
substance abuse condition.

Employees with anxiety or depression miss average of 4.6 more days3
57 workdays associated with short term disability (STD) claim for Anxiety or Depression
Employees facing at least one unmet social need tend to miss more workdays and report worse physical and mental health.

Psychedelic drugs, such as ketamine have recently been
studied in areas of mental health including anxiety,
depression, post-traumatic stress disorder and suicidal behavior.

Projected 8%
year-on-year
medical cost
trend in 20251
90% of annual U.S.
healthcare
More Americans
have multiple
chronic conditions
42% have 2 or more
12% have at least 52
Million-dollar claims
rose 8% over the past year,
and are up 50% over the past
four years4
spending is attributed to
managing and treating
chronic diseases2 (CDC)

MENTAL HEALTH
⚫ 1 in 5 employees who take leave for caregiving will take another leave within a year due to a mental health or substance abuse issue. ⚫ Employees with anxiety or depression miss an average of 4.6 more sick days than those without.3
⚫ 57 workdays are associated with Short - Term Disability claims for Anxiety or Depression per claimant per year.
⚫ Employees facing at least one unmet social need tend to miss more workdays and report worse physical and mental health.
⚫ Psychedelic drugs, such as ketamine, have recently been studied in areas of mental health, including anxiety, depression, post-traumatic stress disorder, and suicidal behavior.

Extensive Drug Pipeline
⚫ In the pipeline: gene therapies and multiple specialty drugs, including oncology, hemophilia and other rare
disease therapies
⚫ Non-specialty: Continued focus on expanded indications for weight loss drugs (GLP1s), NASH, menopausal hot flash products (Veozah) and more

HEALTHCARE &

PROVIDER COSTS
⚫ Growing shortage of Primary
Care Providers
⚫ Post-COVID labor shortages in
healthcare have increased
costs for hospitals and
providers.

Cancer
Increased cancer prevalence in
younger populations.

Treatment costs are expected to
rise as newer, often more expensive
treatments become standard
practice.

ATTACHMENT A 206
Sutter Health Plus
ATTACHMENT A 207
Effective January 1, 2026, SHP proposes a renewal rate adjustment of:

Actives ▪ +39.9% (capped; renewal should be 44.9% without the capping), negotiated renewal to +35% ▪ 3 additional plan options at various benefit levels are included to provide options for members
▪ A total of 6 SHP plans can be offered by the City
Factors for SHPs
renewal include:
▪ Annual trend was 8.7% (2025 trend was 7.9%)
▪ Increased number of members going to non-SHP facility (Dameron / Lodi Memorial) Administrative
Fees Included:
▪ 2026 Plan Year Internal HR Admin Fees: None – removed in 2025 ▪ 2026 COBRA (self-pay) Fees: None - removed in 2025
Mandatory
changes
▪ HDHP: IRS Mandated Changes to deductible and OOPM
▪ All Plans: Compliance with SB 729, coverage of the diagnosis and treatment of infertility and fertility services. Includes up to 3 completed oocyte retrievals with unlimited embryo transfers
SHP Executive Summary
12 ATTACHMENT A 208
SHP Executive Summary
Marketing Efforts
13 Given the challenging renewal, Alliant sent a Request for Proposal out to the marketplace and unfortunately received declinations back from all vendors:
• Health Net - declined due to experience not being available (no way to price). • Blue Shield - declined due to high Kaiser enrollment. • UnitedHealthCare - declined due to experience not being available (no way to price). • Anthem - declined due to experience not being available (no way to price). • PRISMHealth – public agency pooled purchasing program that offers Anthem, Blue Shield and Kaiser HMO options.
o DTQ due to cost profile of carriers offered through the program. o Non-Kaiser plans available through PRISMHealth would cost significantly more than the City’s current/renewal SHP HMO plan.

ATTACHMENT A 209

SHP HMO
Renewal and Option
14 Medical Plan Benefits
ML81 LG18 LG22
Current / Renewal Option
Calendar Year Deductible
Individual / Family None None
Annual Out-of-Pocket Maximum
Individual / Family $1,500 / $3,000 $3,000 / $6,000
Physician Office Visit $20 / Visit $40 / Visit
Specialist Copay $20 $40 / Visit $80 / Visit
Preventative Care No Charge No charge
Lab and X-Ray
CT, MRI, PET scans No Charge $50 / Procedure $50 / Procedure Lab $20 $10 / Visit $10 / Visit
X-Ray No Charge $10 / Procedure $10 / Procedure
Hospitalization
Inpatient $250 / Admit per day (max of 5 days per admission) $500 per day (max of 5 days per admission) Outpatient $100 $50 / Visit $100 / Visit
Emergency Room
$100 $200 / Visit
(Copay waived if admitted)
$200 / Visit
(Copay waived if admitted)
Urgent Care Services $20 $40 / Visit $80 / Visit
Durable Medical Equipment 20% 50% 50%
Chiropractic / Acupuncture Care $20 / Visit $20 / Visit Unlimited Visits Unlimited Visits
PRESCRIPTION DRUGS Generic / Brand / Non-Formulary / Specialty Generic / Brand / Non-Formulary / Specialty Rx Copay Out-of-Pocket Maximum Included with Medical Included with Medical Separate Brand Name Rx Deductible None None
Retail - 30 day supply $10 / $30 / $60 $75 / 20% 10% up to $250 max $10 / $30 / $75 / 20% up to $250 max Mail Order - up to 100 day supply $20 / $60 / $120 $150 / Not Covered $20 / $60 / $150 / Not Covered

RATE GUARANTEE
1 Year
(1/1/2025 -
12/31/2025)
1 Year
(1/1/2026 - 12/31/2026)
1 Year
(1/1/2026 - 12/31/2026)
MONTHLY RATES Current
Initial
Renewal
Negotiated
Renewal Option
EE Only $922.50 $1,281.80 $1,243.40 $1,163.60
EE + 1 $1,660.10 $2,308.00 $2,238.90 $2,095.30
EE + Family $2,213.10 $3,078.00 $2,985.90 $2,794.40
ANNUAL PERCENT CHANGE 39.0% 34.9% 26.2%
Sutter Health Plan HMO Sutter Health Plan HMO
This document is intended as a quick reference, not a comprehensive description. Limitations and exclusions can be found in the official plan documents. In case of any discrepancies, the official plan documents will govern.

ATTACHMENT A 210

SHP DHMO
Renewal and Option
15 Medical Plan Benefits
ML86 LG24 LG29
Current / Renewal Option
Calendar Year Deductible
Individual / Family $1,000 / $2,000 $5,500 / $11,000
Annual Out-of-Pocket Maximum
Individual / Family $3,000 / $6,000 $9,000 / $18,000
Physician Office Visit $20 / Visit (ded waived) $50 / Visit Specialist Copay $20 $40 / Visit (ded waived) $100 / Visit Preventative Care No Charge (ded waived) No charge
Lab and X-Ray
CT, MRI, PET scans $50 / Procedure (ded waived) $100 / Procedure (after ded) Lab $20 / Visit (ded waived) $10 / Visit (ded waived)
X-Ray $10 / Procedure (ded waived) $50 / Procedure (ded waived) Hospitalization
Inpatient 20% (after ded) 30% (after ded)
Outpatient 20% (after ded) 30% (after ded)
Emergency Room
20% (after ded)
(Copay waived if admitted)
$300 (after ded)
(Copay waived if admitted)
Urgent Care Services $20 $40 / Visit (ded waived) $100 / Visit (ded waived) Durable Medical Equipment 20% 50% (after ded) 50% (after ded) Chiropractic / Acupuncture Care $20 / Visit $20 / Visit Unlimited Visits Unlimited Visits
PRESCRIPTION DRUGS Generic / Brand / Non-Formulary / Specialty Generic / Brand / Non-Formulary / Specialty Rx Copay Out-of-Pocket Maximum Included with Medical Included with Medical Separate Brand Name Rx Deductible None None
Retail - 30 day supply $10 / $30 / $60 $75 / 20% up to $100 $250 max $10 / $30 / $75 / 30% up to $250 max Mail Order - up to 100 day supply $20 / $60 / $120 $150 / Not Covered $20 / $60 / $150 / Not Covered

RATE GUARANTEE
1 Year
(1/1/2025 -
12/31/2025)
1 Year
(1/1/2026 - 12/31/2026)
1 Year
(1/1/2026 - 12/31/2026)
MONTHLY RATES Current
Initial
Renewal
Negotiated
Renewal Option
EE Only $796.10 $1,104.90 $1,071.90 $819.90
EE + 1 $1,432.60 $1,989.60 $1,930.20 $1,476.60
EE + Family $1,909.80 $2,653.60 $2,574.40 $1,969.60
ANNUAL PERCENT CHANGE 38.9% 34.7% 3.1%
Sutter Health Plan DHMO Sutter Health Plan DHMO
This document is intended as a quick reference, not a comprehensive description. Limitations and exclusions can be found in the official plan documents. In case of any discrepancies, the official plan documents will govern.

ATTACHMENT A 211

SHP HDHP
Renewal and Option
16 Medical Plan Benefits Sutter Health Plan HDHP Sutter Health Plan HDHP HE08 HL12
Current / Renewal Option
In-Network In-Network
Calendar Year Deductible
Individual / Ind. in Family / Family $1,800 / $3,300 $3,400 / $3,300 $3,400 $4,000 / $4,000 / $8,000 Annual Out-of-Pocket Maximum
Individual / Ind. in Family / Family $3,300 $3,400 / $3,300 $3,400 / $3,300 $3,400 $6,500 / $6,500 / $13,000 Physician Office Visit No Charge $40 / Visit
Specialist Copay No Charge $80 / Visit
Preventative Care No Charge (ded waived) No charge (ded waived) Lab and X-Ray
CT, MRI, PET scans No Charge $50 / Procedure
Lab No Charge $40 / Visit
X-ray No Charge $15 / Procedure
Hospitalization
Inpatient No Charge $500 per day (max of 5 days per admission) Outpatient No Charge $250 / Visit
Emergency Room No Charge $300 / Visit
Urgent Care Services No Charge $80 / Visit
Durable Medical Equipment No Charge 50%
Chiropractic Care Not Covered Not Covered
Acupuncture Care No Charge (Provided for treatment of nausea or chronic pain only)
$40 / Visit (Provided for treatment of nausea or chronic pain only)
PRESCRIPTION DRUGS Generic / Brand / Non-Formulary / Specialty Generic / Brand / Non-Formulary / Specialty Rx Copay Out-of-Pocket Maximum Combined with Medical Combined with Medical Rx Deductible Medical Deductible Applies Medical Deductible Applies Retail - 30 day supply $10 / $20 / $35 / No Charge $10 / $30 / $75 / 20% up to $250 max (after ded) Mail Order - 100 day supply $20 / $40 / $70 / Not Covered $20 / $60 / $150 / Not Covered

RATE GUARANTEE
1 Year
(1/1/2025 -
12/31/2025)
1 Year
(1/1/2026 - 12/31/2026)
1 Year
(1/1/2026 - 12/31/2026)
MONTHLY RATES Current
Initial
Renewal
Negotiated
Renewal Option
EE Only $779.90 $1,090.40 $1,057.70 $809.90
EE + 1 $1,403.20 $1,962.60 $1,903.80 $1,457.70
EE + Family $1,870.70 $2,616.80 $2,538.40 $1,943.60
ANNUAL PERCENT CHANGE 39.9% 35.7% 3.9%
All benefits are after medical deductible has been met unless otherwise stated This document is intended as a quick reference, not a comprehensive description. Limitations and exclusions can be found in the official plan documents. In case of any discrepancies, the official plan documents will govern.

ATTACHMENT A 212
Kaiser Permanente
ATTACHMENT A 213
Kaiser Executive Summary
18 Effective January 1, 2026, Kaiser proposes a renewal rate adjustment of:

Actives ▪ +2.3%
For Kaiser’s 2026
Renewal
▪ Annual trend decreased from 7.81% to 5.66%
▪ Pooling point increased from $375,000 to $400,000
Rates are based on
the following
Underwriting factors:
▪ 100% Credible (City’s utilization)
Health Care Reform
Impacts:
▪ PCORI fee increased from $0.30 PMPM to $0.31 PMPM
Administrative Fees
Included:
▪ 2026 Plan Year Internal HR Admin Fees: None – removed in 2025 ▪ 2026 COBRA (self-pay) Fees: None - removed in 2025
Mandatory Plan
Changes
▪ HDHP: IRS Mandated Changes to deductible and OOPM
▪ All Plans: Compliance with SB 729, coverage of the diagnosis and treatment of infertility and fertility services. Includes up to 3 completed oocyte retrievals with unlimited embryo transfers
ATTACHMENT A 214
Kaiser - Periodic Utilization Review (PUR)
PMPM by Service Category
19 ATTACHMENT A 215
Experience Period Aug 21 July 22 Exp Period
9 month PUR
Nov 21 Oct 22 Exp Period
used in July 23 Renewal
Feb 23 Jan 24 Exp Period
9 Month PUR
May 23 Apr 24 Exp Period
used in Jan 25 Renewal
May 24 Dec 24 Exp Period
8 Month PUR
May 24 Apr 25 Exp Period
12 Month PUR
Average Members 2,194 2,181 2,058 2,042 2,084 2,097
Average Age 29.4 29.3 29.4 29.3 28.9 28.7
Inpatient $ PMPM
(Includes Medical, surgical,
maternity, etc.)
$82.22 $133.31 $103.08 $115.63 $88.43 $99.92
Inpatient $/Day $9,097.32 $13,217.24 $9,290.24 $9,169.21 $8,505.96 $9,275.84 Inpatient Average Length of Stay 3.2 Days 4.1 Days 4.4 Days 4.4 Days 4.1 Days 3.8 Days Inpatient Days/ 1000 108.5 121.0 133.1 151.3 124.8 129.3 Inpatient Admits/ 1000 34.2 29.8 30.1 32.8 30.7 33.9
Outpatient $ PMPM (Includes
outpatient visits, ER, surgical
procedures, lab and radiology)
$182.12 $186.45 $211.71 $232.75 $259.32 $238.40
Pharmacy $ PMPM $34.90 $36.60 $43.11 $43.97 $42.53 $39.72 Other $ PMPM $79.72 $80.00 $82.75 $90.01 $97.17 $94.64
Total Claims PMPM $378.95 $436.35 $440.65 $482.36 $487.46 $472.68 High Cost Claimants None over $170,000
1 individual with claims
over $170,000 representing

15.0% of total claims;
claimant at $1,716,154.49
3 individuals with claims
over $187,500 representing

12.0% of total claims;
claimants at $1,304,951.70
3 individuals with claims
over $187,500 representing

12.9 % of total claims;
claimants at $1,519,460.27
2 individuals with claims
over $500,000 representing

10.9% of total claims;
claimants at $1,328,297.35
2 individuals with claims
over $380,000 representing

8.3% of total claims;
claimants at $981,377.10
Kaiser - Periodic Utilization Review (PUR)
Comparison
20 ATTACHMENT A 216
Kaiser HMO
Renewal
21 Medical Plan Benefits
Current / Renewal Current / Renewal
Plan Year Deductible
Individual / Family None $1,000 / $2,000
Annual Out-of-Pocket Maximum
Individual / Family $1,500 / $3,000 $3,000 / $6,000
Physician Office Visit $20 / Visit $30 / Visit (ded waived) Specialist Copay $20 / Visit $40 / Visit (ded waived)
Preventative Care No Charge No Charge (ded waived)
Lab and X-Ray
CT, MRI, PET scans $50 / Procedure
Other lab and x-ray tests $10 / Encounter $10 / Encounter (after ded) Hospitalization
Inpatient $250 / Admit 30% (after ded)
Outpatient $100 / Procedure 30% (after ded)
Emergency Room
$100 / Visit
(Copay waived if admitted)
Urgent Care Services $20 / Visit $30 / Visit (ded waived) Durable Medical Equipment 20% 20% (ded waived)
Chiropractic/Acupuncture Care $15 / Visit $15 / Visit
(max 30 Visits combined) (max 30 Visits combined)
PRESCRIPTION DRUGS Generic / Brand-name / Specialty Generic / Brand-name / Specialty Rx Copay Out-of-Pocket Maximum Included with Medical Included with Medical Separate Brand Name Rx Deductible None None
Retail - 30 day supply $10 / $30 / 20% up to $150 max $10 / $30 / 20% up to $150 max (ded waived) Mail Order - up to 100 day supply $20 / $60 / Not Covered $20 / $60 / Not Covered (ded waived)

RATE GUARANTEE
1 Year
(1/1/2025 - 12/31/2025)
1 Year
(1/1/2026 - 12/31/2026)
MONTHLY RATES EEs Current Renewal
EE Only 218 $906.38 $926.77
EE + 1 133 $1,630.92 $1,668.18
EE + Family 229 $2,174.32 $2,224.25
580
MONTHLY PREMIUM $912,422 $933,257
ANNUAL PREMIUM $10,949,070 $11,199,085
ANNUAL DOLLAR CHANGE $250,015
ANNUAL PERCENT CHANGE 2.3%
Enrollment from Kaiser Enrollment Summary as of March 2025 This document is intended as a quick reference, not a comprehensive description. Limitations and exclusions can be found in the official plan documents. In case of any discrepancies, the official plan documents will govern.

Kaiser HMO
ATTACHMENT A 217
Kaiser DHMO
Renewal
22 Medical Plan Benefits Kaiser DHMO
Current / Renewal
Plan Year Deductible
Individual / Family $1,000 / $2,000
Annual Out-of-Pocket Maximum
Individual / Family $3,000 / $6,000
Physician Office Visit $30 / Visit (ded waived)
Specialist Copay $40 / Visit (ded waived)
Preventative Care No Charge (ded waived)
Lab and X-Ray
CT, MRI, PET scans
30% up to a maximum of $150 / Procedure
(after ded)
Other lab and x-ray tests $10 / Encounter (after ded)
Hospitalization
Inpatient 30% (after ded)
Outpatient 30% (after ded)
Emergency Room
30% (after ded)
(Copay waived if admitted)
Urgent Care Services $30 / Visit (ded waived)
Durable Medical Equipment 20% (ded waived)
Chiropractic/Acupuncture Care $15 / Visit
(max 30 Visits combined)
PRESCRIPTION DRUGS Generic / Brand-name / Specialty
Rx Copay Out-of-Pocket Maximum Included with Medical
Separate Brand Name Rx Deductible None
Retail - 30 day supply $10 / $30 / 20% up to $150 max (ded waived) Mail Order - up to 100 day supply $20 / $60 / Not Covered (ded waived)

RATE GUARANTEE
1 Year
(1/1/2025 - 12/31/2025)
1 Year
(1/1/2026 - 12/31/2026)
MONTHLY RATES EEs Current Renewal
EE Only 13 $790.65 $793.40
EE + 1 8 $1,422.60 $1,428.12
EE + Family 14 $1,896.57 $1,904.16
35 MONTHLY PREMIUM $48,211 $48,397
ANNUAL PREMIUM $578,535 $580,769
ANNUAL DOLLAR CHANGE $2,234
ANNUAL PERCENT CHANGE 0.4%
Enrollment from Kaiser Enrollment Summary as of March 2025 This document is intended as a quick reference, not a comprehensive description. Limitations and exclusions can be found in the official plan documents. In case of any discrepancies, the official plan documents will govern.

ATTACHMENT A 218
Kaiser HDHP
Renewal
23 Medical Plan Benefits Kaiser HDHP
Current / Renewal
In-Network
Plan Year Deductible
Individual / Ind. in Family / Family $1,800 / $3,300 $3,400 / $3,600 Annual Out-of-Pocket Maximum
Individual / Ind. in Family / Family $3,700 / $3,700 / $7,400 Physician Office Visit No Charge
Specialist Copay No Charge
Preventative Care No Charge (ded waived)
Lab and X-Ray
CT, MRI, PET scans No Charge
Other lab and x-ray tests No Charge
Hospitalization
Inpatient No Charge
Outpatient No Charge
Emergency Room No Charge
Urgent Care Services No Charge
Durable Medical Equipment No Charge
Chiropractic Care $15
(30 Visits / calendar year)
Acupuncture Care Not Covered
PRESCRIPTION DRUGS Generic / Brand-name / Specialty
Rx Copay Out-of-Pocket Maximum Combined with Medical
Rx Deductible N/A
Retail - 30 day supply $10 / $30 / 20% up to $150
Mail Order - 100 day supply $20 / $60 / Not Covered

RATE GUARANTEE
1 Year
(1/1/2025 - 12/31/2025)
1 Year
(1/1/2026 - 12/31/2026)
MONTHLY RATES EEs Current Renewal
EE Only 54 $742.70 $745.14
EE + 1 41 $1,336.31 $1,341.25
EE + Family 74 $1,781.50 $1,788.33
169
MONTHLY PREMIUM $226,726 $227,565
ANNUAL PREMIUM $2,720,706 $2,730,783
ANNUAL DOLLAR CHANGE $10,077
ANNUAL PERCENT CHANGE 0.4%
Enrollment from Kaiser Enrollment Summary as of March 2025 This document is intended as a quick reference, not a comprehensive description. Limitations and exclusions can be found in the official plan documents. In case of any discrepancies, the official plan ATTACHMENT A 219
Ancillary Renewals
Topic
ATTACHMENT A 220
Dental
ATTACHMENT A 221
Dental Renewal Overview
26 The Dental PPO plan is self-insured through PRISM
• Alliant recommends a dental reserve fund of approximately $111,000 to cover one month of claims • Effective 1/1/2026, Alliant’s underwriting analysis for the Dental renewal is 0% (Rate Pass) o The underwriting analysis includes the following:
• Claims through March 2025
• 2.5% Trend
• 1.5% Margin
• The most recent 12 months are weighted 50% for current 12 months and 50% for the prior 12 months o 2026 Administrative Fees:
• Delta Dental ASO: 6.7% of Paid Claims
• BCC Eligibility Fees $0.75 PEPM
• Aliant Broker Fees $2.00 PEPM
• UW Fee $0.50 PEPM
The DHMO plan is fully insured with Delta Dental (DeltaCare) • Rate Guarantee through 12/31/2026
ATTACHMENT A 222
Enrollment Premium Costs Paid
Month Employees Funding Rate Claims Admin Total Cost L/R 1/23 1,192 $131,651 $108,412 $22,169 $130,581 99.2%
2/23 1,187 $131,110 $121,124 $22,959 $144,083 109.9%
3/23 1,184 $130,988 $124,900 $23,184 $148,084 113.1%
4/23 1,185 $131,044 $104,267 $21,811 $126,078 96.2%
5/23 1,183 $130,591 $108,664 $22,070 $130,735 100.1%
6/23 1,180 $130,105 $128,500 $23,355 $151,855 116.7%
7/23 1,158 $131,246 $97,206 $21,031 $118,237 90.1%
8/23 1,154 $130,429 $134,570 $23,468 $158,037 121.2%
9/23 1,148 $129,918 $82,752 $19,928 $102,680 79.0%
10/23 1,138 $129,010 $85,077 $19,969 $105,046 81.4%
11/23 1,140 $129,123 $140,149 $23,679 $163,828 126.9%
12/23 1,142 $129,248 $103,043 $21,213 $124,257 96.1%
1/24 1,159 $131,643 $116,688 $22,362 $139,050 105.6%
2/24 1,155 $131,121 $130,531 $23,236 $153,767 117.3%
3/24 1,152 $130,417 $97,254 $20,952 $118,207 90.6%
4/24 1,164 $131,473 $83,306 $20,154 $103,460 78.7%
5/24 1,171 $132,335 $139,309 $23,997 $163,306 123.4%
6/24 1,175 $132,358 $115,172 $22,411 $137,583 103.9%
7/24 1,178 $132,880 $106,097 $21,849 $127,946 96.3%
8/24 1,173 $131,984 $144,386 $24,336 $168,722 127.8%
9/24 1,185 $133,175 $77,689 $20,010 $97,699 73.4%
10/24 1,189 $133,221 $116,673 $22,654 $139,326 104.6%
11/24 1,194 $134,152 $95,744 $21,331 $117,075 87.3%
12/24 1,192 $133,346 $95,560 $21,267 $116,827 87.6%
1/25 1,202 $134,624 $126,336 $12,371 $138,707 103.0%
2/25 1,211 $135,168 $98,623 $10,543 $109,166 80.8%
3/25 1,190 $132,902 $114,965 $11,570 $126,535 95.2%
PY 2023 13,991 $1,564,462 $1,338,664 $264,837 $1,603,500 102.5% PY 2024 14,087 $1,588,105 $1,318,409 $264,559 $1,582,969 99.7% CY 2025 3,603 $402,695 $339,923 $34,485 $374,408 93.0%
Rolling 12 14,224 $1,597,619 $1,313,860 $232,493 $1,546,353 96.8% Delta Dental PPO
Loss Ratio Report
27 ATTACHMENT A 223
Dental PPO (PRISM)
Renewal
This document is intended as a quick reference, not a comprehensive description. Limitations and exclusions can be found in 28 the official plan documents. In case of any discrepancies, the official plan documents will govern.

Dental Plan Benefits Delta Dental DPPO (PRISM)
ALL - Consolidated
Self-Funded - Current / Renewal
Calendar Year Maximum PPO Non-PPO
Per Member $1,500
(D & P does not count towards maximum)
Calendar Year Deductible
Individual / Family None
Diagnostic and Preventive
Oral Exam
X-Rays
Teeth Cleaning
Fluoride Treatment
Basic Services
Sealants
Anesthesia
Periodontics (Gum disease)
Endodontics (Root Canal)
Simple & Surgical Extractions
Major Services
Single Crowns
Inlays, Onlays, Veneers
Dental Implants
Bridges & Dentures
Repair & Maintenance of Bridgework & Dentures
Orthodontics Adult & Child
Benefit Percentage 50%
Lifetime Maximum $2,000
Out-of-Network Reimbursement Contracted Fees
ADMINISTRATION RATE GUARANTEE 1 Year
(1/1/2025 - 12/31/2025)
1 Year
(1/1/2026 - 12/31/2026)
PRISM Delta Dental Admin Fee 6.7% of Paid Claims
BCC, UW, and Program Management Fees $3.25 PEPM
FIE RATE GUARANTEE 1 Year
(1/1/2025 - 12/31/2025)
1 Year
(1/1/2026 - 12/31/2026)
MONTHLY RATES EEs Current Renewal
Employee Only 357 $56.67 $56.67
Employee + 1 183 $113.32 $113.32
Employee + Family 540 $147.31 $147.31
1080
TOTAL MONTHLY PREMIUM $120,516 $120,516
TOTAL ANNUAL PREMIUM $1,446,194 $1,446,194
ANNUAL DOLLAR CHANGE $0
ANNUAL PERCENT CHANGE 0.0%
80%
80%
100%
50%
ATTACHMENT A 224
Vision
ATTACHMENT A 225
Vision Renewal Overview
30 ▪ The VSP plan is currently self-insured directly through VSP ▪ Alliant recommends a vision reserve fund of approximately $10,000 to cover 3 weeks of claims ▪ Effective 1/1/2026, Alliant’s underwriting analysis for the Vision renewal is: -17.38% o The underwriting analysis includes the following:
• Claims through May 2025
• 2.5% Trend
• 0% Margin
• The most recent 12 months are weighted 30% for current 12 months and 70% for the prior 12 months
• 2026 Administrative Fees:
o VSP ASO: $1.41 (previously was $1.25 PEPM, +13% increase) and a 3 year rate guarantee o Internal HR Admin Fees: None – removed in 2025
ATTACHMENT A 226
Enrollment Premium Costs Paid
Month Employees Funding Rate Claims Admin Total Cost L/R 1/23 1,392 $20,754 $14,113 $2,725 $16,838 81.1%
2/23 1,394 $20,763 $20,048 $2,728 $22,776 109.7%
3/23 1,395 $20,786 $12,645 $2,730 $15,375 74.0%
4/23 1,396 $20,789 $17,739 $2,732 $20,471 98.5%
5/23 1,395 $20,726 $15,647 $2,728 $18,374 88.7%
6/23 1,396 $20,725 $15,064 $2,729 $17,793 85.9%
7/23 1,367 $21,181 $13,582 $2,731 $16,313 77.0%
8/23 1,379 $21,289 $18,333 $2,751 $21,085 99.0%
9/23 1,346 $20,862 $14,603 $2,690 $17,292 82.9%
10/23 1,347 $20,859 $16,103 $2,691 $18,793 90.1%
11/23 1,391 $21,451 $12,598 $2,774 $15,372 71.7%
12/23 1,376 $21,241 $15,673 $2,746 $18,419 86.7%
1/24 1,375 $21,251 $13,178 $2,745 $15,922 74.9%
2/24 1,369 $21,173 $12,003 $2,733 $14,736 69.6%
3/24 1,351 $20,857 $17,086 $2,696 $19,782 94.8%
4/24 1,394 $21,459 $12,783 $2,778 $15,561 72.5%
5/24 1,408 $21,673 $9,547 $2,806 $12,353 57.0%
6/24 1,418 $21,711 $11,836 $2,821 $14,657 67.5%
7/24 1,439 $22,006 $14,110 $2,861 $16,971 77.1%
8/24 1,443 $22,014 $12,754 $2,866 $15,620 71.0%
9/24 1,463 $22,231 $15,823 $2,902 $18,725 84.2%
10/24 1,456 $22,147 $10,065 $2,889 $12,954 58.5%
11/24 1,451 $22,156 $16,191 $2,883 $19,074 86.1%
12/24 1,453 $22,083 $10,444 $2,882 $13,327 60.3%
1/25 1,404 $20,078 $9,206 $1,755 $10,961 54.6%
2/25 1,402 $20,012 $11,499 $1,753 $13,252 66.2%
3/25 1,461 $20,782 $12,009 $1,826 $13,835 66.6%
4/25 1,458 $20,755 $11,505 $1,823 $13,328 64.2%
PY 2023 16,574 $251,425 $186,147 $32,755 $218,903 87.1% PY 2024 17,020 $260,760 $155,818 $33,863 $189,681 72.7% Rolling 12 17,256 $257,647 $144,988 $30,067 $175,055 67.9% VSP Vision
Loss Ratio Report
31 ATTACHMENT A 227
VSP Vision
32 Vision Plan Benefits VSP Choice Plan
Self-Funded
In-Network Out-of-Network
Copay
Plan pays
up to:

Exam $10 $37
Lenses
Single $20 $34
Bifocal $20 $51
Trifocal $20 $68
Contact Lenses $120 Allowance
(Copay Waived) $100
Frames $120 Allowance
+ 20% Discount $40
Frequency of Services
Eye Examination 12 months
Lenses 12 months
Frames 12 months
Contact Lenses* 12 months
* In lieu of frames
Administration Rate Guarantee 5 Years and 6 Months
(7/1/2020-12/31/2025)
3 Years
(1/1/2026 - 12/31/2028)
Admin Fee $1.25 PEPM $1.41 PEPM
Rate Guarantee
1 Year
(1/1/2025-12/31/2025)
1 Year
(1/1/2026-12/31/2026)
MONTHLY RATES EE'S Current Renewal
Employee Only 502 $7.43 $6.14
Employee + 1 Dependent 247 $14.87 $12.29
Employee + Family 653 $19.31 $15.95
1402
TOTAL MONTHLY PREMIUM $20,012 $16,533
TOTAL ANNUAL PREMIUM $240,146 $198,399
ANNUAL $ DIFFERENCE ($41,747)
ANNUAL % DIFFERENCE -17.4%
ATTACHMENT A 228
EAP Renewal
ATTACHMENT A 229
Halcyon EAP
34 EAP Halycon EAP
Plan Benefits Current / Renewal
Sessions
All Other 3 Sessions every 6 months1
First Responder N/A
Digital Capabilities
Digital Platforms Web Portal, eConnect mobile app, and
textcoach text therapy
Telephonic Included
Video Included
Text Included
Employee Services
Legal Included
Financial Included
Dependent Care Included
Employer Services
Management Consultations Unlimited
CISD Seminar(s) Unlimited
Onsite Orientations 10 Hours
Add-On
Coaching N/A

RATE GUARANTEE
5 Years and 3 Months
(10/1/2020 - 12/31/2025)
1 Year
(1/1/2026 - 12/31/2026)
MONTHLY RATES EE's Current Renewal
Per Employee Per Month 1,552 $1.62 $1.72
MONTHLY PREMIUM $2,514 $2,669
ANNUAL PREMIUM $30,171 $32,033
ANNUAL $ DIFFERENCE $1,862
ANNUAL % DIFFERENCE 6.2%
Employee Count from SimpleTherapy EAP Invoice as of March 2025 This document is intended as a quick reference, not a comprehensive description. Limitations and exclusions can be found in the official plan documents. In case of any discrepancies, the official plan documents will govern.
1Additional beyond 3 sessions available at $100/visit (self-fund), up to 10 sessions. The City will receive an invoice from SimpleTherapy for each visit beyond initial 3.

ATTACHMENT A 230
Contributions
ATTACHMENT A 231
Contributions (All Employees except SPOA) – Sutter Health Plan Current Plans Employee Contributions Current (1/1/2025) Current Option - Adding 3 Sutter Health Plans Proposed Monthly Contributions Per Paycheck Monthly Contributions Per Paycheck Total ER Cost EE Cost EE % EE Cost Total ER Cost EE Cost EE % % ∆ EE Cost Sutter Health HMO LG18, DHMO, and Vision Current Plan - LG18 EE Only $949.77 $798.00 $151.77 16.0% $75.89 $1,269.38 $814.00 $455.38 35.9% 200.0% $227.69 EE + 1 $1,713.23 $1,448.00 $265.23 15.5% $132.62 $2,289.45 $1,477.00 $812.45 35.5% 206.3% $406.23 EE + Family $2,315.96 $1,929.00 $386.96 16.7% $193.48 $3,085.40 $1,968.00 $1,117.40 36.2% 188.8% $558.70 Sutter Health HMO LG18, DPPO, and Vision Current Plan - LG18 EE Only $986.60 $798.00 $188.60 19.1% $94.30 $1,306.21 $814.00 $492.21 37.7% 161.0% $246.11 EE + 1 $1,788.29 $1,448.00 $340.29 19.0% $170.15 $2,364.51 $1,477.00 $887.51 37.5% 160.8% $443.76 EE + Family $2,379.72 $1,929.00 $450.72 18.9% $225.36 $3,149.16 $1,968.00 $1,181.16 37.5% 162.1% $590.58 Sutter Health DHMO LG24, DHMO, and Vision Current Plan - LG24 EE Only $823.37 $798.00 $25.37 3.1% $12.69 $1,097.88 $814.00 $283.88 25.9% 1019.0% $141.94 EE + 1 $1,485.73 $1,448.00 $37.73 2.5% $18.87 $1,980.75 $1,477.00 $503.75 25.4% 1235.1% $251.88 EE + Family $2,012.66 $1,929.00 $83.66 4.2% $41.83 $2,673.90 $1,968.00 $705.90 26.4% 743.8% $352.95 Sutter Health DHMO LG24, DPPO, and Vision Current Plan - LG24 EE Only $860.20 $798.00 $62.20 7.2% $31.10 $1,134.71 $814.00 $320.71 28.3% 415.6% $160.36 EE + 1 $1,560.79 $1,448.00 $112.79 7.2% $56.40 $2,055.81 $1,477.00 $578.81 28.2% 413.2% $289.41 EE + Family $2,076.42 $1,929.00 $147.42 7.1% $73.71 $2,737.66 $1,968.00 $769.66 28.1% 422.1% $384.83 Sutter Health HDHP HE08, DHMO, and Vision Current Plan - HE08 EE Only $807.17 $798.00 $9.17 1.1% $4.59 $1,083.68 $814.00 $269.68 24.9% 2840.9% $134.84 EE + 1 $1,456.33 $1,448.00 $8.33 0.6% $4.16 $1,954.35 $1,477.00 $477.35 24.4% 5630.5% $238.68 EE + Family $1,973.56 $1,929.00 $44.56 2.3% $22.28 $2,637.90 $1,968.00 $669.90 25.4% 1403.4% $334.95 Sutter Health HDHP HE08, DPPO, and Vision Current Plan - HE08 EE Only $844.00 $798.00 $46.00 5.5% $23.00 $1,120.51 $814.00 $306.51 27.4% 566.3% $153.26 EE + 1 $1,531.39 $1,448.00 $83.39 5.4% $41.69 $2,029.41 $1,477.00 $552.41 27.2% 562.4% $276.21 EE + Family $2,037.32 $1,929.00 $108.32 5.3% $54.16 $2,701.66 $1,968.00 $733.66 27.2% 577.3% $366.83 36 ATTACHMENT A
232
Contributions (All Employees except SPOA) – Sutter Health Plan continued with Options Employee Contributions Current (1/1/2025) Current Option - Adding 3 Sutter Health Plans Proposed Monthly Contributions Per Paycheck Monthly Contributions Per Paycheck Total ER Cost EE Cost EE % EE Cost Total ER Cost EE Cost EE % % ∆ EE Cost Sutter Health HMO LG22, DHMO, and Vision Option - Add LG22 EE Only $1,189.58 $814.00 $375.58 31.6% 147.5% $187.79
EE + 1 $2,145.85 $1,477.00 $668.85 31.2% 152.2% $334.43 EE + Family $2,893.90 $1,968.00 $925.90 32.0% 139.3% $462.95 Sutter Health HMO LG22, DPPO, and Vision Option - Add LG22 EE Only $1,226.41 $814.00 $412.41 33.6% 118.7% $206.21
EE + 1 $2,220.91 $1,477.00 $743.91 33.5% 118.6% $371.96 EE + Family $2,957.66 $1,968.00 $989.66 33.5% 119.6% $494.83 Sutter Health DHMO LG29, DHMO, and Vision Option - Add LG29 EE Only $845.88 $814.00 $31.88 3.8% 25.7% $15.94
EE + 1 $1,527.15 $1,477.00 $50.15 3.3% 32.9% $25.08
EE + Family $2,069.10 $1,968.00 $101.10 4.9% 20.8% $50.55 Sutter Health DHMO LG29, DPPO, and Vision Option - Add LG29 EE Only $882.71 $814.00 $68.71 7.8% 10.5% $34.36
EE + 1 $1,602.21 $1,477.00 $125.21 7.8% 11.0% $62.61
EE + Family $2,132.86 $1,968.00 $164.86 7.7% 11.8% $82.43 Sutter Health HDHP HL12, DHMO, and Vision Option - Add HL12 EE Only $835.88 $814.00 $21.88 2.6% 138.6% $10.94
EE + 1 $1,508.25 $1,477.00 $31.25 2.1% 275.2% $15.63
EE + Family $2,043.10 $1,968.00 $75.10 3.7% 68.5% $37.55 Sutter Health HDHP HL12, DPPO, and Vision Option - Add HL12 EE Only $872.71 $814.00 $58.71 6.7% 27.6% $29.36
EE + 1 $1,583.31 $1,477.00 $106.31 6.7% 27.5% $53.16
EE + Family $2,106.86 $1,968.00 $138.86 6.6% 28.2% $69.43 37 ATTACHMENT A
233
Contributions (All Employees except SPOA) – Kaiser
Employee Contributions Current (1/1/2025) Current Option - Adding 3 Sutter Health Plans Proposed Monthly Contributions Per Paycheck Monthly Contributions Per Paycheck Total ER Cost EE Cost EE % EE Cost Total ER Cost EE Cost EE % % ∆ EE Cost Kaiser HMO, DHMO, and Vision
EE Only $933.65 $798.00 $135.65 14.5% $67.83 $952.75 $814.00 $138.75 14.6% 2.3% $69.38 EE + 1 $1,684.05 $1,448.00 $236.05 14.0% $118.03 $1,718.73 $1,477.00 $241.73 14.1% 2.4% $120.87 EE + Family $2,277.18 $1,929.00 $348.18 15.3% $174.09 $2,323.75 $1,968.00 $355.75 15.3% 2.2% $177.88 Kaiser HMO, DPPO and Vision
EE Only $970.48 $798.00 $172.48 17.8% $86.24 $989.58 $814.00 $175.58 17.7% 1.8% $87.79 EE + 1 $1,759.11 $1,448.00 $311.11 17.7% $155.56 $1,793.79 $1,477.00 $316.79 17.7% 1.8% $158.40 EE + Family $2,340.94 $1,929.00 $411.94 17.6% $205.97 $2,387.51 $1,968.00 $419.51 17.6% 1.8% $209.76 Kaiser DHMO, DHMO, and Vision
EE Only $817.92 $798.00 $19.92 2.4% $9.96 $819.38 $814.00 $5.38 0.7% -73.0% $2.69 EE + 1 $1,475.73 $1,448.00 $27.73 1.9% $13.87 $1,478.67 $1,477.00 $1.67 0.1% -94.0% $0.83 EE + Family $1,999.43 $1,929.00 $70.43 3.5% $35.21 $2,003.66 $1,968.00 $35.66 1.8% -49.4% $17.83 Kaiser DHMO, DPPO, and Vision
EE Only $854.75 $798.00 $56.75 6.6% $28.38 $856.21 $814.00 $42.21 4.9% -25.6% $21.11 EE + 1 $1,550.79 $1,448.00 $102.79 6.6% $51.40 $1,553.73 $1,477.00 $76.73 4.9% -25.4% $38.36 EE + Family $2,063.19 $1,929.00 $134.19 6.5% $67.10 $2,067.42 $1,968.00 $99.42 4.8% -25.9% $49.71 Kaiser HDHP, DHMO, and Vision
EE Only $769.97 $769.97 $0.00 0.0% $0.00 $771.12 $771.12 $0.00 0.0% 0.0% $0.00 EE + 1 $1,389.44 $1,389.44 $0.00 0.0% $0.00 $1,391.80 $1,391.80 $0.00 0.0% 0.0% $0.00 EE + Family $1,884.36 $1,884.36 $0.00 0.0% $0.00 $1,887.83 $1,887.83 $0.00 0.0% 0.0% $0.00 Kaiser HDHP, DPPO, and Vision
EE Only $806.80 $798.00 $8.80 1.1% $4.40 $807.95 $807.95 $0.00 0.0% 0.0% $0.00 EE + 1 $1,464.50 $1,448.00 $16.50 1.1% $8.25 $1,466.86 $1,466.86 $0.00 0.0% 0.0% $0.00 EE + Family $1,948.12 $1,929.00 $19.12 1.0% $9.56 $1,951.59 $1,951.59 $0.00 0.0% 0.0% $0.00 38 ATTACHMENT A
234
Contributions (All Employees except SPOA) - ALL PLANS
39 Employee Contributions Current Proposed
Per Paycheck Per Paycheck
EE Cost EE Cost
SHP HMO LG18, DHMO, &
Vision
EE Only $75.89 $227.69
EE + 1 $132.62 $406.23
EE + Family $193.48 $558.70
SHP HMO LG18, DPPO, &
Vision
EE Only $94.30 $246.11
EE + 1 $170.15 $443.76
EE + Family $225.36 $590.58
SHP DHMO LG24, DHMO, &
Vision
EE Only $12.69 $141.94
EE + 1 $18.87 $251.88
EE + Family $41.83 $352.95
SHP DHMO LG24, DPPO, &
Vision
EE Only $31.10 $160.36
EE + 1 $56.40 $289.41
EE + Family $73.71 $384.83
SHP HDHP HE08, DHMO, &
Vision
EE Only $4.59 $134.84
EE + 1 $4.16 $238.68
EE + Family $22.28 $334.95
SHP HDHP HE08, DPPO, &
Vision
EE Only $23.00 $153.26
EE + 1 $41.69 $276.21
EE + Family $54.16 $366.83
Employee Contributions Current Proposed
Per Paycheck Per Paycheck
EE Cost EE Cost
SHP HMO LG22, DHMO, &
Vision
EE Only $187.79
EE + 1 $334.43
EE + Family $462.95
SHP HMO LG22, DPPO, &
Vision
EE Only $206.21
EE + 1 $371.96
EE + Family $494.83
SHP DHMO LG29, DHMO, &
Vision
EE Only $15.94
EE + 1 $25.08
EE + Family $50.55
SHP DHMO LG29, DPPO, &
Vision
EE Only $34.36
EE + 1 $62.61
EE + Family $82.43
SHP HDHP HL12, DHMO, &
Vision
EE Only $10.94
EE + 1 $15.63
EE + Family $37.55
SHP HDHP HL12, DPPO, &
Vision
EE Only $29.36
EE + 1 $53.16
EE + Family $69.43
Employee Contributions Current Proposed
Per Paycheck Per Paycheck
EE Cost EE Cost
Kaiser HMO, DHMO, &
Vision
EE Only $67.83 $69.38
EE + 1 $118.03 $120.87
EE + Family $174.09 $177.88
Kaiser HMO, DPPO & Vision
EE Only $86.24 $87.79
EE + 1 $155.56 $158.40
EE + Family $205.97 $209.76
Kaiser DHMO, DHMO, &
Vision
EE Only $9.96 $2.69
EE + 1 $13.87 $0.83
EE + Family $35.21 $17.83
Kaiser DHMO, DPPO, &
Vision
EE Only $28.38 $21.11
EE + 1 $51.40 $38.36
EE + Family $67.10 $49.71
Kaiser HDHP, DHMO, &
Vision
EE Only $0.00 $0.00
EE + 1 $0.00 $0.00
EE + Family $0.00 $0.00
Kaiser HDHP, DPPO, &
Vision
EE Only $4.40 $0.00
EE + 1 $8.25 $0.00
EE + Family $9.56 $0.00
ATTACHMENT A 235
Next Steps

ATTACHMENT A
236
Open Enrollment
41 Open Enrollment
October 1 – October 31
Employees will make benefit selections through the Tyler Munis ESS portal Open Enrollment Benefits Fair
Join for an on-site Benefits and Wellness Fair to learn more about our plans and ask questions.

Date Time Location
October 1, 2025 10am to 2pm
Stockton Memorial Civic
Auditorium (South Hall)
525 N. Center Street
Stockton CA 95202

ATTACHMENT A
237
alliant.com | CA License No. 0C36861 | © 2025 Alliant Insurance Services, Inc.

PROPRIETARY & CONFIDENTIAL.

Thank You

ATTACHMENT A
238
Cost of Coverage
Full-Time Employees (excluding SPOA members)
Effective 1/1/2026
Kaiser Permanente HMO Plan - Medical, Dental and Vision Tier with DHMO Dental Total Monthly
Employer
Monthly
Contribution
Employee
Monthly
Contribution
Per Paycheck
Deduction
Employee Only $952.75 $814.00 $138.75 $69.38
Employee + 1 $1,718.73 $1,477.00 $241.73 $120.87
Employee + Family $2,323.75 $1,968.00 $355.75 $177.88
Tier with DPPO Dental Total Monthly
Employer
Monthly
Contribution
Employee
Monthly
Contribution
Per Paycheck
Deduction
Employee Only $989.58 $814.00 $175.58 $87.79
Employee + 1 $1,793.79 $1,477.00 $316.79 $158.40
Employee + Family $2,387.51 $1,968.00 $419.51 $209.76
Kaiser Permanente DEDUCTIBLE HMO Plan - Medical, Dental and Vision Tier with DHMO Dental Total Monthly
Employer
Monthly
Contribution
Employee
Monthly
Contribution
Per Paycheck
Deduction
Employee Only $819.38 $814.00 $5.38 $2.69
Employee + 1 $1,478.67 $1,477.00 $1.67 $0.84
Employee + Family $2,003.66 $1,968.00 $35.66 $17.83
Tier with DPPO Dental Total Monthly
Employer
Monthly
Contribution
Employee
Monthly
Contribution
Per Paycheck
Deduction
Employee Only $856.21 $814.00 $42.21 $21.11
Employee + 1 $1,553.73 $1,477.00 $76.73 $38.37
Employee + Family $2,067.42 $1,968.00 $99.42 $49.71
Kaiser Permanente HDHP Plan - Medical, Dental and Vision Tier with DHMO Dental Total Monthly
Employer
Monthly
Contribution
Employee
Monthly
Contribution
Per Paycheck
Deduction
Employee Only $771.12 $771.12 $0.00 $0.00
Employee + 1 $1,391.80 $1,391.80 $0.00 $0.00
Employee + Family $1,887.83 $1,887.83 $0.00 $0.00
Tier with DPPO Dental Total Monthly
Employer
Monthly
Contribution
Employee
Monthly
Contribution
Per Paycheck
Deduction
Employee Only $807.95 $807.95 $0.00 $0.00
Employee + 1 $1,466.86 $1,466.86 $0.00 $0.00
Employee + Family $1,951.59 $1,951.59 $0.00 $0.00
ATTACHMENT B 239
Cost of Coverage Full-Time Employees (excluding SPOA members) Effective 1/1/2026 Sutter Health Plus HMO Plan LG18- Medical, Dental and Vision Tier with DHMO Dental Total Monthly
Employer Monthly
Contribution
Employee Monthly
Contribution
Per Paycheck
Deduction
Employee Only $1,269.38 $814.00 $455.38 $227.69
Employee + 1 $2,289.45 $1,477.00 $812.45 $406.23
Employee + Family $3,085.40 $1,968.00 $1,117.40 $558.70 Tier with DPPO Dental Total Monthly
Employer Monthly
Contribution
Employee Monthly
Contribution
Per Paycheck
Deduction
Employee Only $1,306.21 $814.00 $492.21 $246.11
Employee + 1 $2,364.51 $1,477.00 $887.51 $443.76
Employee + Family $3,149.16 $1,968.00 $1,181.16 $590.58 Sutter Health Plus HMO Plan LG22- Medical, Dental and Vision Tier with DHMO Dental Total Monthly
Employer Monthly
Contribution
Employee Monthly
Contribution
Per Paycheck
Deduction
Employee Only $1,189.58 $814.00 $375.58 $187.79
Employee + 1 $2,145.85 $1,477.00 $668.85 $334.43
Employee + Family $2,893.90 $1,968.00 $925.90 $462.95
Tier with DPPO Dental Total Monthly
Employer Monthly
Contribution
Employee Monthly
Contribution
Per Paycheck
Deduction
Employee Only $1,226.41 $814.00 $412.41 $206.21
Employee + 1 $2,220.91 $1,477.00 $743.91 $371.96
Employee + Family $2,957.66 $1,968.00 $989.66 $494.83
Sutter Health Plus Deductible HMO Plan LG24 - Medical, Dental and Vision Tier with DHMO Dental Total Monthly
Employer Monthly
Contribution
Employee Monthly
Contribution
Per Paycheck
Deduction
Employee Only $1,097.88 $814.00 $283.88 $141.94
Employee + 1 $1,980.75 $1,477.00 $503.75 $251.88
Employee + Family $2,673.90 $1,968.00 $705.90 $352.95
Tier with DPPO Dental Total Monthly
Employer Monthly
Contribution
Employee Monthly
Contribution
Per Paycheck
Deduction
Employee Only $1,134.71 $814.00 $320.71 $160.36
Employee + 1 $2,055.81 $1,477.00 $578.81 $289.41
Employee + Family $2,737.66 $1,968.00 $769.66 $384.83
ATTACHMENT B 240
Sutter Health Plus Deductible HMO Plan LG29 - Medical, Dental and Vision Tier with DHMO Dental Total Monthly
Employer Monthly
Contribution
Employee Monthly
Contribution
Per Paycheck
Deduction
Employee Only $845.88 $814.00 $31.88 $15.94
Employee + 1 $1,527.15 $1,477.00 $50.15 $25.08
Employee + Family $2,069.10 $1,968.00 $101.10 $50.55
Tier with DPPO Dental Total Monthly
Employer Monthly
Contribution
Employee Monthly
Contribution
Per Paycheck
Deduction
Employee Only $882.71 $814.00 $68.71 $34.36
Employee + 1 $1,602.21 $1,477.00 $125.21 $62.61
Employee + Family $2,132.86 $1,968.00 $164.86 $82.43
Sutter Health Plus HDHP Plan HE08 - Medical, Dental and Vision Tier with DHMO Dental Total Monthly
Employer Monthly
Contribution
Employee Monthly
Contribution
Per Paycheck
Deduction
Employee Only $1,083.68 $814.00 $269.68 $134.84
Employee + 1 $1,954.35 $1,477.00 $477.35 $238.68
Employee + Family $2,637.90 $1,968.00 $669.90 $334.95
Tier with DPPO Dental Total Monthly
Employer Monthly
Contribution
Employee Monthly
Contribution
Per Paycheck
Deduction
Employee Only $1,120.51 $814.00 $306.51 $153.26
Employee + 1 $2,029.41 $1,477.00 $552.41 $276.21
Employee + Family $2,701.66 $1,968.00 $733.66 $366.83
Sutter Health Plus HDHP Plan HL12 - Medical, Dental and Vision Tier with DHMO Dental Total Monthly
Employer Monthly
Contribution
Employee Monthly
Contribution
Per Paycheck
Deduction
Employee Only $835.88 $814.00 $21.88 $10.94
Employee + 1 $1,508.25 $1,477.00 $31.25 $15.63
Employee + Family $2,043.10 $1,968.00 $75.10 $37.55
Tier with DPPO Dental Total Monthly
Employer Monthly
Contribution
Employee Monthly
Contribution
Per Paycheck
Deduction
Employee Only $872.71 $814.00 $58.71 $29.36
Employee + 1 $1,583.31 $1,477.00 $106.31 $53.16
Employee + Family $2,106.86 $1,968.00 $138.86 $69.43
ATTACHMENT B 241
City of Stockton
Legislation Text
File #: 25-0937, Version: 1

AUTHORIZE THE CITY MANAGER TO APPROVE A PROFESSIONAL SERVICES AGREEMENT WITH GEORGE HILLS AS THE CITY’S THIRD-PARTY ADMINISTRATOR (TPA) FOR THE CITY’S

SELF-INSURED GENERAL LIABILITY PROGRAM

RECOMMENDATION
It is recommended that the City Council approve a motion to:

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

2. Approve entering into a Professional Services agreement with George Hills, Third-Party Administrator (TPA), to administer the City’s General Liability program.

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

Summary
The Human Resources Department has selected a Third-Party Administrator (TPA) to oversee the City’s General Liability Program. We are seeking approval to enter into a five-year agreement, with the option of two additional one-year renewals.

The proposed contract is valued at $453,300 for the initial year, with annual cost adjustments tied to the Consumer Price Index (CPI), ranging from 3% to 5%. This represents a savings of $20,238 compared to the City’s current annual cost of $473,538 with the existing TPA, Sedgwick. The total not -to-exceed amount for the full term of the agreement is $2,504,768.64.

George Hills Company will be responsible for the administration of general liability, subrogation, and property claims in accordance with applicable state laws, regulations, and the City’s policies and procedures. As part of their subrogation services, George Hills will seek reimbursement from responsible third parties, including individuals, agencies, insurers, and their representatives for damage to City property. This recovery effort will continue up to the point at which legal representation becomes necessary.

On July 7, 2025, the City issued a Request for Proposal (RFP) for TPA services and received three submissions. Following a comprehensive evaluation process, George Hills was selected through the City of Stockton Page 1 of 3 Printed on 9/18/2025
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File #: 25-0937, Version: 1
City’s formal procurement process. With 70 years of experience serving both public entities and private organizations throughout California, George Hills is a recognized leader in the industry, known for driving best practices and delivering innovative, full-service TPA and subrogation recovery solutions.

DISCUSSION
Background
The City currently contracts with Sedgwick as its Third-Party Administrator (TPA), with the agreement set to expire on May 13, 2027. During the recent transition to the Public Risk Innovation, Solutions, and Management (PRISM) General Liability 2 (GL2) program, the City identified several discrepancies in the claims data reported by Sedgwick. These inaccuracies resulted in erroneous information being submitted to PRISM.

In the process of seeking acceptance into the GL2 program, the City was required to clarify and reconcile these discrepancies. The responsibility for ensuring accurate data submission to PRISM rested with the TPA. While the City was ultimately accepted into the GL2 program, PRISM imposed a condition of acceptance: the City must issue a Request for Proposals (RFP) for TPA services and conduct a formal evaluation of all submitted proposals.

Present Situation
On July 7, 2025, Human Resources, in coordination with the Procurement Division, issued a Request for Proposals (RFP) for Third-Party Administrator (TPA) services. All submitted proposals were deemed responsive and responsible and underwent a competitive evaluation process conducted by a review committee. The committee consisted of representatives from Human Resources, Administrative Services, the City Attorney’s Office, and Information Technology.

The City received proposals from three (3) firms: Sedgwick, George Hills, and Carl Warren & Company. Following a thorough evaluation, George Hills received the highest overall score and was selected through the City’s formal RFP process.

Should the City Council approve entering into an agreement with George Hills and authorize the City Manager to take all necessary and appropriate actions, a 30-day termination notice (Attachment B) will be issued to Sedgwick in accordance with the terms of the existing contract. The agreement with George Hills will commence immediately upon the termination of the Sedgwick contract.

Findings
Pursuant to Stockton Municipal Code (SMC) section 3.68.070, Council may approve findings that support an exception to the competitive bidding process.

These findings include:

1. The City negotiated a contract following solicitation of competitive proposals in accordance with SMC section 3.68.070.A.3.

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File #: 25-0937, Version: 1

2. Use of the RFP process is appropriate for this agreement because, in addition to cost, it relies on the evaluation of professional qualifications and performance for the selection of a General Liability TPA.

3. Selection based on cost alone does not take into account public sector experience or the ability to provide consistent quality claims administration.

4. Services such as general liability claims administration and subrogation recovery require experienced professionals who have handled such services for other public entities and can work closely with City staff, which is in the public interest.

5. The RFP process allows the vendors to specify what services they can provide to the City rather than the City bidding on specific services.

FINANCIAL SUMMARY
The initial contract term is valued at $453,300 for the first year, with annual increases indexed to the Consumer Price Index (CPI) ranging from a minimum of 3% to a maximum of 5%. The maximum notto-exceed amount over the full term of the five-year agreement is $2,504,768.64. If exercised, contract extensions will be budgeted through the annual budget process. Funding for the general liability third-party administration service is budgeted out of the General Liability Special Services Internal Services Fund account number 2510-000-630006-520-000-00-25-000-000-, which is adequately funded for the term of this agreement.

Attachment A - George Hills Contract 2025
Attachment B - Sedgwick Termination Letter
City of Stockton Page 3 of 3 Printed on 9/18/2025
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1 ( . . )

CITY OF STOCKTON

STANDARD AGREEMENT

1. This Agreement is entered into between the City of Stockton and Contractor to provide
as set forth in Exhibit A to this Agreement. _____________________________________________________________________________

2. The term of this Agreement is as follows, unless amended as described in Exhibit A and Exhibit C section 8:

Commences on: Terminates on: _____________________________________________________________________________

3. The maximum not to exceed amount to be paid to Contractor for the term of this Agreement, including if authorized, reimbursement of expenses, is: $

4. The complete Agreement consists of all the following Agreement documents which by reference are incorporated and made a part of this Agreement. The parties agree to comply with the terms and conditions of this Agreement. ____________________________________________________________________________ IN WITNESS WHEREOF, the authorized parties have executed this Agreement.

CONTRACTOR
______________________________________________________________________________________________ Name (if other than an individual, state whether a corporation, partnership, etc.): ______________________________________________________________________________________________ Authorized Signature Date

CITY OF STOCKTON
_________________________________________________________ ________________ City Manager Date ATTEST: ____________________________________________________________________________ , City Clerk
APPROVED AS TO FORM:
, City Attorney
BY:

Agreement Number:
(a) Exhibit A Statement of Work
(b) Exhibit B Insurance
(c) Exhibit C General Terms Conditions
(d) Exhibit D
Exhibit E Compensation Schedule
(f) Exhibit F Timeline
George Hills Company, Inc. General Liability Administration 10/01/2025 10/01/2030
2,504,768.64
Professional Services Special Terms & Conditions
George Hills Company, Inc.

ATTACHMENT A1
______________________________________________________________________________________________ John Chaquica, President Printed Name and Title of Person Signing
___________________________________________________________________________________________ PO Box 278, Rancho Cordova, CA 95741; [email protected] Address
8/21/25
245

2.0 SCOPE OF SERVICES
The selected TPA (proponent) awarded the contract shall operate under the general direction of the City’s Risk Manager and consult with other City staff in developing effective procedures and practices to successfully administer the City’s third-party property and liability claims along with administering the City’s first party property subrogation and restitution services to recover costs from third parties. The TPA shall perform all services and related work necessary for program administration, claims administration, subrogation, claims investigations, reporting to the City’s risk pool, Medicare reporting, reserving, settlements, litigated files management, and all other related documentation. TPA services shall include the City’s major programs, but are not limited to: general, automobile, and property liability claims administration, investigations, research, analysis, recording, reporting, subrogation, litigation management, liability trust account management and reconciliation, and related support services. The City will retain management of litigated claims but may call upon TPA to assist in these areas on a case-by-case basis; a dedicated claims examiner is preferred.

The selected proponent shall work with Public Risk Innovation, Solutions, and Management (PRISM) for the entirety of the contract and adhere to their Addendum B Liability Claims Administration Standards found at the following link: https://www.prismrisk.gov/aboutprism/prism-documents/claims/standards/addendum-b-liability/. i. Program Administration
The selected TPA shall:

1. Consult with the City and provide professional and technical staff to assist in developing the necessary procedures and practices to implement and administer the City's self-insured program, including administering all open and closed indemnity, subrogation, and restitution claims.

2. Convert the data from the data system of the present administrator to selected TPA’s data system as the City wishes to maintain and integrate all claims into its current statistical base. Please indicate if there is a charge to convert loss data for all incurred claims, both open and closed files and the amount of that charge.

3. Follow the Records Retention Policy established and approved by the City. All files, records, transcripts including loss run data base files and other materials related to the management and administration of City's General Liability Program

EXHIBIT A

STATEMENT OF WORK
ATTACHMENT A2
246
are the exclusive property of the City of Stockton and must be relinquished in good order and condition upon termination of the Agreement with the selected TPA. Selected TPA shall make files available for review by the City anytime during regular business hours. Selected TPA shall provide copies of file correspondence and documentation as requested by the City.

4. Maintain a master file of claims administration policies, practices and guidelines, and any other material needed to properly administer claims in accordance with applicable state law and City instructions.

5. Provide City's General Liability Analyst and City Attorney’s Office with user connections (and software if applicable) on City's existing personal computer, to allow database inquiry access and e-mail capability to TPA's claim processing system. System should allow diary to be set by City’s Analyst to follow up on pending issues as needed.

6. Conduct or assist in onsite or offsite training as needed for City personnel involved directly or indirectly in the processing of general liability, subrogation or restitution cases. Inform the City of changes or proposed changes in statutes, rules, regulations, and case law affecting its general liability claims program.

7. Periodically update all form letters used in connection with claim processing.

The City of Stockton reserves the right to approve and disapprove all forms and form letters.

8. Represent City in all matters related to the set-up, investigation, adjustment, processing, negotiation, and resolution of liability claims against City.

9. Provide accurate, appropriate claims handling in a timely manner, according to agreed upon performance standards and state requirements.

10. Provide the City with written information on changes or proposed changes in statutes, rules and regulations affecting the City's responsibility under a legally self-insured General Liability Program.

11. Inform the City of problem areas or trends, both potential and perceived, and provide recommendations and/or solutions to address problem areas or trends.

Matters of significance must be called to the City's attention at the earliest appropriate time (i.e., disgruntled employees, system problems, large overpayments, large reserve changes, etc.).

12. Attend client meetings as requested by the City of Stockton. TPA's travel expenses in connection with client meetings or other matters relating to claims processing shall be paid by the TPA.

13. Attend appointments, including but not limited to meetings, conferences, court appearances, and scene investigations at the request of the City.

14. Install and/or utilize any necessary automated claims administration systems. TPA shall have ability to integrate with external/third party system, including imports of claims financial data, transaction details, and adjusters’ notes from TPA and carriers, as well as exports of financial transaction data and imports to capture payment details from City’s Enterprise Resource Planning System (ERP) and/or Accounts Payable systems (e.g., Central Square HTE, Tyler, Klear.ai, etc.), among other data feeds.

15. Transfer records and systems to the succeeding Administrator at the termination of the contract with no additional cost or fee required.

16. Administrative fees should cover the cost of TPA’s staff; all office space; storage space for closed files; supplies; forms/posters/pamphlets; standard management reports; telephone expenses; postage; checks (if utilizing TPA’s own checking account); computer hardware/software; transcription services; and other equipment/supplies necessary for claims handling.

ATTACHMENT A3
247
ii. Claims Administration
Selected TPA shall:

1. Only utilize outside expert services or subcontractors with prior approval from the City. City reserves the right to approve, disapprove, or select all service providers and vendors selected by TPA.

2. Ensure every file contains a Plan of Action, quarterly litigation budgets and the steps to accomplish it. The Plan of Action should be updated during each diary review. Files should be clearly documented, with claim notes reflecting ongoing file activity. All conversations and issues should be documented.

3. Provide professional and courteous responses to receipt of telephone calls, written or in person inquiries, complaints and questions from all sources within 48 hours of receipt. Such inquiries may include claim payment or benefit related questions from parties with authorized access to information, such as claimants, vendors, providers, legal counsel, the City of Stockton, etc.

4. Ensure all claims management adhere to the requirements of the California Government Code for accepting, denying, and rejecting claims.

5. At the direction of the City, contact claimants or their attorneys within five (5) business days of receipt of a claim and maintain appropriate contact with them until the claim is closed.

6. Review the status of claims and assist as directed with setting adequate reserves on all active cases at least every ninety (90) calendar days.

7. Review all claims for liability and provide first investigative report within thirty (30) calendar days of receipt of claim to City’s Risk Services Division.

8. Provide narrative reports when recommending rejection or settlement of a claim, when going to trial, or other significant events occur. Reports must be clear and concise.

9. Negotiate settlements within authority limits provided by City. Funding for the payment of any settlement is specifically excluded from this agreement.

10. Report claims in compliance with Medicare, Medicaid, and SCHIPExtension Act (MMSEA) Section 111. Notify the City when reports for the MMSEA Section 111 require signature.

11. Process payments within authority levels provided by City within fourteen (14) business days.

12. File all supporting documentation for payments made in the appropriate claim file.

13. Provide monthly reports for the following open and closed liability claims; general liability, date excess sent, open litigated, and injury year detail by department.

14. Provide weekly reports for open and closed liability claims.

15. Provide weekly reserve change report.

16. Checking: follow the banking requirements of the City, such as establishing, maintaining, and reconciling an interest-bearing checking account with appropriate deposit and transfer procedures for the payment of claims; or if utilizing a City of Stockton checking account, provide monthly records of financial transactions to coordinate with City's computer or ERP system, or make other claims payment arrangements which are acceptable to the City. The TPA claims administrator will maintain check registers and provide a monthly check register to the City, along with a copy of all checks and vouchers.

ATTACHMENT A4
248

17. Reserve Adequacy and Accuracy: Maintain reserves for each file to reflect the probable future liability of a claim as required by Title 8, California Code of Regulation, Section 15300. Reserve calculations should be accurate and adjusted as facts change. Detailed reserve worksheet calculations to be retained in claim file.

18. Provide any required federal or state financial or tax reports. Provide appropriate information, documentation and cooperation to the State of California or City of Stockton Auditor upon request.

19. Reconcile all claim file payments twice per year, and upon settlement and file closure. Proof of resolution should remain in claim file.

20. Overpayments/Errors: Any overpayments/incorrect payments should be reported to the City immediately, along with diligent efforts to collect all overpayment and resolve any other incorrect payments.

21. Diary dates shall be established to allow for timely completion of required activity and no less frequently than every sixty (60) calendar days. TPA shall monitor the timely completion of diary notes.

22. All correspondence shall be addressed within 48 hours of receipt unless an immediate response is required.

23. Written responses to requests that cannot be emailed shall be mailed within ten (10) business days of receipt, unless an immediate response isrequired.

24. Identify and notify co-defendants within thirty (30) calendar days of identification.

25. Have translators available to assist with non-English speaking claimants. iii. Subrogation
TPA shall:

1. Place the tortfeasor on notice of the City’s subrogation rights; and

2. Work with the Risk Services division to draft legal documents to recover monies spent on claims.

3. Aggressively investigate fraud and pursue restitution in all fraud cases. The City shall be notified of all claims involving potential fraud and initiation of fraud investigation activities.

4. Provide subrogation services to recover costs from third parties (responsible persons, agencies, insurers, and/or their agents) responsible for employees, volunteers, inmates, etc., injuries, up to the point necessitating legal counsel. The Administrator will give prompt notice to Risk Services for each case indicating a potential for subrogation.

5. Subrogation efforts on injuries in which there is also property loss to the City shall be coordinated by the Administrator. Subrogation notices and action against another party require advance authorization from the City. If subrogation action develops problems or unreasonable delays, the matter is to be referred to and reviewed by Risk Services for referral to City designated Counsel for legal action.

6. If the third party needs to be sent to collections, approval must be obtained from Risk Services.

7. Provide monthly and weekly open and closed reports on amounts recovered for subrogation and restitution.

8. Provide weekly subrogation reserve change report.

9. Pursue small claims actions. Litigation in civil court beyond small claims court requires specific authority from the City (this may be City Counsel, Risk Manager, etc.). Settlement authority for less than full amount claimed by TPA requires City’s ATTACHMENT A5
249
Analyst or Risk Manager’s prior approval.
iv. Claims Investigation
TPA shall:

1. Within ten (10) business days of receipt of claim, unless otherwise requested by City Risk Manager, take statement of facts from claimants when not represented by an attorney. Statements will be preserved by recording or taking hand-written signed statements.

2. Investigate claims where the initial review indicates that it is warranted. Further investigation may include, but is not limited to, on-sight investigation, photographs, interviewing witnesses and taking signed or recorded statements, verification of damage or loss, taking measurements, obtaining maps/diagrams from the City or other sources, obtaining medical releases, police reports, or other records as required.

3. Complete initial investigation answering questions such as who, what, where, when and why. Investigations shall be completed within forty-five (45) days of the Member’s knowledge of claim, including statements from participants and witnesses, appropriate official reports, investigative reports, site inspections, relevant documents and photos/videos.

4. Identify liability issues, including immunities, comparative negligence, joint tortfeasors and joint and several liability.

5. Initiate the development of information on damages including, but not limited to:

1. Property damage

2. Nature and extent of injuries

3. Medical costs (billed and paid)

4. Lost wages (past and future)

5. Other economic damages

6. Non-economic damages

6. Obtain and review relevant contracts and insurance documents, to determine whether there is any sharing or complete transfer of the risk.

1. Hold-harmless and/or indemnity agreements

2. Additional insured requirements

7. Ensure proper preservation of evidence.

8. Evaluate the need to utilize experts.

1. All bodily injury claims shall be initially reported to the Index Bureau and re-indexed on an as needed basis thereafter. (PRISM maintains a membership with the Index Bureau that members can access).

9. Secure estimates or appraisals for damaged property.

10. All notices (pertaining to claim insufficiency, returning late claims, claims rejections, etc.) shall be done in accordance with the relevant Governmental Code provisions.
v. PRISM Reporting Requirements
TPA shall:

1. First Report
The TPA shall give PRISM immediate written notice for any claims or suits which the TPA becomes aware of that include injury of the following types:

ATTACHMENT A6
250
• Death
• Paralysis, paraplegia, quadriplegia
• Loss of eye(s), or limbs
• Spinal cord or brain injury
• Dismemberment or amputation
• Sensory organ or nerve injury or neurological deficit • Serious burns
• Severe scarring
• Sexual assault or battery including but not limited to rape, molestation or sexual abuse
• Substantial disability or disfigurement
• Any class action
• Any claim or suit in which PRISM is named as a defendant; or • Any injury caused by lead.

Additionally, the TPA must report to PRISM any occurrence, offense, or wrongful act in which the amount incurred has reached $500,000.

Utilize the current First Report Potential Excess Liability Claims form, available through PRISM’s website, and transmit to PRISM by email to [email protected]..

First report forms shall, at a minimum, include the following:
• Entity name
• Entity’s claim number
• Defense counsel’s name and firm name
• Lead Claimant’s first and last name
• Specific date of loss
• Brief description of the incident
• Established reserves for indemnity, litigation, and expense

2. Status Reports
After the First Report to PRISM, status reports shall be provided by the TPA at a minimum of every ninety (90) days (more frequently if warranted). Status reports shall focus on changes in liability analysis, damages, and reserves.

3. Photos, diagrams, estimates, statements, contracts, medical, law enforcement and coroner's reports (where applicable), claim forms, lawsuits (including amended complaints), motions for summary judgment, demurrers, dismissals, appellate briefs and orders/rulings/judgments shall be in the claims file, and provided to PRISM, within ninety (90) days of receipt of the material.

4. Closure Reports
When a claim or suit that has been reported to PRISM is settled, dismissed or closed in any other fashion, PRISM shall be provided with the closing documents and an accounting of the final paid amounts on the exposure for indemnity, litigation, and expense within 90 days from the day the final defense bill is paid. vi. Medicare Reporting
ATTACHMENT A7
251

1. Proper verification of a claimant’s status as to Medicare eligibility shall be completed and documented in every file involving a bodily injury. In those cases where the claimant does meet the eligibility requirements, mandatory reporting to the Center for Medicare and Medicaid Services (CMS) must be completed directly or through a reporting agent in compliance with State Children’s Health Insurance Program (SCHIP) Section 111 of the Medicare Medicaid and SCHIP Extension Act of 2007.
vii. Reserving
Each claim should be reviewed and evaluated according to the merits of the claim and based upon the most current and reliable information received, starting with the initial report of claim and continuing through final resolution. Delays result in understated reserves and, possibly, missed opportunities to settle.

1. An accurate and appropriate initial indemnity reserve shall be established on all reportable claims based on facts known, upon completion of the initial investigative report or when suit is filed, whichever occurs first. In addition, separate legal and adjusting reserves shall be established.

Indemnity reserves shall reflect the most probable outcome plus exposure to plaintiff attorney’s fees and costs.

Most probable outcome is the potential total amount a plaintiff could expect to receive, either through settlement or verdict, after factoring in the Member’s percentage of liability. (This approach is neither the best or worst case outcome).

Factors to consider when evaluating the potential total settlement or verdict a plaintiff could expect to receive include but are not limited to:
• Extent of injuries and/or damages
• Medical expenses
• Loss of income
• Any other related expenses
• Future anticipated expenses
• Total of both gross and out-of-pocket expenses
• Permanent injury
• Disfigurement/scarring
• Pain and suffering
• Any other intangible factors which may result in a higher or lower claim value such as jurisdiction, credibility of
parties/witnesses, etc.

Percentage of liability is determined by various factors that are discovered during an investigation. Reserves shall be adjusted accordingly, as facts are developed, to properly reflect the exposure. These factors include but are not limited to:
a. Facts of loss
b. Applicable laws
c. Defense Counsel evaluations
ATTACHMENT A8
252
d. Jury Verdict evaluation
e. The extent of plaintiff's liability (comparative negligence) f. The number of co-defendants and their percentage ofliability g. The ability of the co-defendants to respond financially to any settlement or verdict.
h. On cases occurring after June 3, 1986, Proposition 51 allows defendants to limit their liability on non-economic damages to their percentage of fault.
i. On cases involving uninsured motorist claimants the recovery is limited to economic damages in accordance with California Code of Civil Procedures sections 3333.3 and 3333.4 (Prop 213).
j. Any other mitigating factors

2. Reserves shall be set at the most probable outcome even if it exceeds the Member’s Self-Insured Retention. In all litigated Excess reportable cases, the Member shall set a meaningful indemnity reserve.

3. Reserves shall be evaluated for adequacy at least every ninety (90) days. All reserve changes shall be documented in a paper or electronic file providing explanation of the reason for the reserve change or notation that the current reserve is adequate and why. PRISM shall be notified of all reserve changes within thirty (30) days of the change being made.
viii. Documentation

1. Each file shall contain information necessary to document the decisions made, including all demands, offers of settlement and settlement authority.

1. Claimant(s) Information

2. Date of Loss

3. Claim Number

4. Facts of accident or occurrence

5. Witness/Participant Statement

6. Reserve rationale

7. Assessment of liability

8. Damages/injuries, including medical costs, lost wages, dependency, property damage estimates, total loss evaluations, loss of use claims, and otherdamages

9. Index Bureau reporting

10. Coverage questions

11. Excess potential

12. Structured Settlement possibilities (where applicable)

13. Alternative Dispute Resolution
ATTACHMENT A9
253

14. Subrogation potential (where applicable)

15. Governmental Code compliance and immunities

16. Future course of action

17. Next diary date

18. If litigated, identify counsel on both sides

19. Offsets or liens that may need to beconsidered

20. Medicare eligibility and reporting

21. Risk and insurance transfer
ix. Case Settlement Factors

1. Settlement evaluation and authority by the Member shall be documented. On cases exceeding the S.I.R., prior written settlement authority must be obtained from PRISM.

2. Ensure PRISM’s endorsement outlining the requirement for settlement within the City’s SIR is followed.

3. The settlement shall be reasonable in light of damages, injuries, liability, and any obligations to Medicare.

4. Settlements shall be effected in a timely manner, with consideration given to structures, statutory offers (Rule 68 or 998) where applicable, and/or alternative dispute resolution.

5. When settlements reach PRISM’s layer, the TPA examiner will make sure authority will be obtained prior to the settlement, working directly with the City and PRISM obtaining written authority from the City and PRISM.

6. Contributions from joint tortfeasors shall be considered.

7. Proper releases and dismissals shall be secured and copies provided to PRISM. x. Litigated Files
The City of Stockton’s City Attorney (CA) shall retain the litigation management function.

The TPA shall assist in the implementation and conform to the procedures pursuant to the Litigation Management Program. The duties of the TPA shall include, but not be limited to:

1. Within 45 days following assignment, ensure defense counsel has submitted a preliminary evaluation of the lawsuit including a litigation plan and budget.

2. Ensure defense counsel submits status reports every 90 days to include new developments only. Routine submission of repetitive, non-substantive status reports is not acceptable.

3. Coordinate with defense counsel to properly follow up on investigation/discovery requests, obtaining expert witness, complete field investigation, notifying relevant employees and other parties regarding pending litigation, etc.

4. Ensure all defense expenses, including but not limited to, depositions, motions, and discovery have been approved by the City Attorney.

5. No later than 30 days before trial, confirm defense counsel has submitted a report which includes:
a. An assessment of the Member’s liability exposure.
b. An assessment of the plaintiff’s damages.
c. An assessment of the legal defenses and probability of prevailing, including significant arguments of each party and expected counter arguments. d. Unique characteristics of the jurisdiction, presiding judge and opposing counsel.

ATTACHMENT A10 254
e. The verdict value assuming full liability.
f. Settlement value, considering defendant’s liability exposure and chances of prevailing.
g. Status of settlement discussions.

6. Attend mediation, arbitration, settlement conferences on behalf of the City when necessary.

7. Evaluate defense counsel with respect to each defense assignment.

8. Ensure all attorney fees are billed at the agreed hourly rate. All bills shall state with particularity the legal work performed, the hours expended to perform the work and the costs incurred.

9. Audit all bills to make certain the billing practices are in conformance with the City’s litigation guidelines
xi. Claims Management Information System (CMIS)
TPA shall:

1. Convert all open and closed claims data and enter new claims data into the TPA’s CMIS.

2. Record all claims in a CMIS. Claims records must contain all pertinent claim information, including but not limited to claim number, date of loss, date of claim, claimant name and address, location of loss, description of incident, loss reserves, loss payments, and expense reserves.

3. TPA must create a review system to ensure accurate data will be entered into the CMIS.

All claims must be reviewed on a periodic basis, as determined by the City. The review system must include a check on all the financial documentation entered into the CMIS to ensure the financial integrity of the system. In addition, the review system must include appropriate claims handling and reserving procedures, and timely file closures.

4. TPA shall use electronic notes in the CMIS to record activity which shall be updated with new developments. All significant documents (e.g., email communications, status updates from counsel, etc.) will be scanned/saved into the database by TPA.

5. TPA shall provide CMIS training, support, and access for up to three (3) City Risk Services staff so that they may search for claim information and data, as required.

6. Provide specified standard loss reports as agreed upon.

7. Provide special reports as needed by the City.

8. Provide data transfer services to the City’s Risk Information Management System (RMIS).
xii. Term.

The term of this Contract shall begin on the execution date and continue for a period of five (5) years. This Contract may be extended up to two (2) additional years, for a maximum of seven (7) years. All Contract extensions must be agreed upon in writing by issuance of a Task Order.

ATTACHMENT A11 255
Exhibit B:

Insurance Requirements for Professional Services
(Third-Party Claims Administrator)
Consultant shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder by the Consultant, its agents, representatives, or employees.

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, or a form in common use in the insurance industry and which are acceptable to the City after review, covering CGL on an “occurrence” basis, including products and completed operations, property damage, bodily injury and personal & advertising injury with limits no less than $2,000,000 per occurrence. If a general aggregate limit applies, either the general aggregate limit shall apply separately to this project/location (ISO CG 25 03 or 25 04, or a form in common use in the insurance industry and which are acceptable to the City after review.) or the general aggregate limit shall be twice the required occurrence limit.

2. Automobile Liability: Insurance Services Office Form Number CA 0001, or a form in common use in the insurance industry and which are acceptable to the City after review, covering Code 1 (any auto), or if Consultant has no owned autos, Code 8 (hired) and 9 (non-owned), with limit no less than $1,000,000 per accident for bodily injury and property damage.

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

4. Professional Liability (Errors and Omissions) Insurance appropriates to the Consultant’s profession, with limit no less than $2,000,000 per occurrence or claim, $2,000,000 aggregate.

5. Crime/Fidelity Bond – Insurance no less than $1,000,000 per occurrence, covering all officers and employees, for loss of proceeds caused by dishonesty.

Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City of Stockton by the Consultant.

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

Additional Insured Status
The City of Stockton, its officers, officials, employees, and volunteers are to be covered as additional insureds on the CGL policy with respect to liability arising out of work or operations performed by or on behalf of the Consultant 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 Consultant’s insurance (at least as broad as ISO Form CG 20 10 11 85 or if not available, through the addition of both CG 20 10, CG 20 26, CG 20 33, or CG 20 38; and CG 20 37, or a form in common use in the insurance industry and which are acceptable to the City after review). Additional insured Name of Organization shall read “City of Stockton, its officers, officials, employees, and volunteers.” Policy shall cover City of Stockton, its officers, officials, employees, and volunteers for all locations work is done under this contract.

Primary Coverage
For any claims related to this contract, the Consultant’s insurance coverage shall be primary and non-contributory and at least as broad as ISO CG 20 01 12 19, or a form in common use in the insurance industry and which are acceptable to the City after review as respects the City of Stockton, its officers, officials, employees, and volunteers. Any insurance or self-insurance maintained by the City of Stockton, its officers, officials, employees, or volunteers shall be excess of the Consultant’s insurance and shall not contribute with it. This requirement shall also apply to any Excess or Umbrella liability policies. The City of Stockton does not accept endorsements limiting the Contractor’s insurance coverage to the sole negligence of the Named Insured.

Umbrella or Excess Policy
The Consultant may use Umbrella or Excess Policies to provide the liability limits as required in this agreement. The policies shall be provided on a true “following form” coverage basis, with coverage at least as broad as provided on the underlying Commercial General Liability insurance.

Notice of Cancellation
Each insurance policy required above shall provide that coverage shall not be canceled, except with notice to the City of Stockton. Consultant will provide notice to the City within five (5) business days of receipt by Consultant of any notice of cancellation pertaining to any insurance policy required by this contract.

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Waiver of Subrogation
Consultant hereby grants to City of Stockton a waiver of any right to subrogation which any insurer of said Consultant may acquire against the City of Stockton by virtue of the payment of any loss under such insurance. This applies to the Commercial General Liability, Commercial Auto Liability, and Workers’ Compensation policies.

Consultant 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.

Self-Insured Retentions
Self-insured retentions must be declared to and approved by the City of Stockton. The City of Stockton may require the Consultant to purchase coverage with a lower retention or provide proof of ability to pay losses and related expenses within the retention. The policy language shall provide, or be endorsed to provide, that the selfinsured retention may be satisfied by either the named insured or City of Stockton.

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

Claims Made Policies (Professional & Pollution only)
If any of the required policies provide claims-made coverage:

1. The Retroactive Date must be shown and must be before the date of the contract or the beginning of contract work.

2. Insurance must be maintained and evidence of insurance must be provided for at least five (5) years after completion of the contract of work.

3. If coverage is canceled or non-renewed, and not replaced with another claims-made policy form with a Retroactive Date prior to the contract effective date, the Consultant must purchase “extended reporting” coverage for a minimum of five (5) years after completion of work.

Verification of Coverage
Consultant shall furnish the City of Stockton with original certificates and amendatory endorsements or copies of the applicable policy language affecting coverage required by this clause All required documents are to be received and approved by the City of Stockton before work commences. However, failure to obtain the documents prior to the work beginning shall not waive the Consultant’s obligation to provide them. The City of Stockton reserves the right to require complete, certified copies of all required insurance policies, including endorsements, at any time.

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

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

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

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

City of Stockton
Its Officers, Officials, Employees, and Volunteers
425 N El Dorado Street
Stockton, CA 95202
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EXHIBIT C

GENERAL TERMS AND CONDITIONS

1. Goods, Equipment and Services. Subject to the terms and conditions set forth in this Agreement, Contractor shall provide to City the services described in Exhibit A of the Agreement. Contractor shall provide said services at the time, place and in the manner specified in Exhibit A of the Agreement.

2. City Assistance, Facilities, Equipment and Clerical Support. Except as set forth in Exhibit A, Contractor shall, at its sole cost and expense, furnish and maintain all facilities and equipment that may be required for furnishing services pursuant to this Agreement. If applicable, City shall furnish to Contractor only the facilities and equipment listed in Exhibit A to the Agreement.

3. Compensation. City shall pay Contractor for services rendered pursuant to this Agreement as described more particularly in Exhibit A and Exhibit E to the Agreement.

3.1 Invoices submitted by Contractor to City must contain a brief description of work performed, time spent and City reference number. Within thirty (30) days of receipt of Contractor’s invoice, City will review invoice, and if acceptable make payment on approved invoice.

3.2 Upon completion of work and acceptance by City, Contractor shall have sixty (60) days in which to submit final invoicing for payment. An extension may be granted by City upon receiving a written request thirty (30) days in advance of said time limitation. The City shall have no obligation or liability to pay any invoice for work performed which the Contractor fails or neglects to submit within sixty (60) days, or any extension thereof granted by the City, after the work is accepted by the City.

4. Sufficiency of Contractor’s Work. All Contractor services, work, and deliverables shall be performed in a good and workmanlike manner with due diligence in accordance with the degree of skill normally exercised by similar contractors supplying services and work of a similar nature, and in conformance with applicable laws, codes and professional standards. Contractor’s work shall be adequate and sufficient to meet the purposes of this Agreement.

5. Ownership of Work. All reports, work product, all other documents completed or partially completed by Contractor or its approved subcontractors, in performance of this Agreement, and if applicable, drawings, designs, and plan review comments shall become the property of the City. Any and all copyrightable subject matter in all materials is hereby assigned to the City and the Contractor and its approved subcontractors agree to execute 1 ATTACHMENT A16 260
any additional documents that may be necessary to evidence such assignment. All materials shall be delivered to the City upon completion or termination of the work under this Agreement. If any materials are lost, damaged or destroyed before final delivery to the City, the Contractor shall replace them at its own expense. Contractor and its approved subcontractors shall keep materials confidential. Materials shall not be used for purposes other than performance of services under this Agreement and shall not be disclosed to anyone not connected with these services, unless the City provides prior written consent.

6. Timeliness. Time is of the essence in this Agreement. Further, Contractor acknowledges that the failure of Contractor to comply with the time limits described in Exhibit A and Exhibit F may result in economic or other losses to the City.

7. Changes. Both parties to this Agreement understand that it may become desirable or necessary during the term of this Agreement for City to modify the scope of services provided for under this Agreement. Any material extension or change in the scope of work shall be discussed with City and the change and cost shall be memorialized in a written amendment to the original contract prior to the performance of the additional work. Until the amendment is so executed, City will not be responsible to pay any charges Contractor may incur in performing such additional services, and Contractor shall not be required to perform any such additional services.

8. Amendment. No variation of the terms of this Agreement shall be valid unless an amendment is made in writing and signed by both parties.

9. Contractor’s Status.

9.1 In performing the obligations set forth in this Agreement, Contractor shall have the status of an independent contractor and Contractor shall not be considered to be an employee of the City for any purpose. All persons working for or under the direction of Contractor are its agents and employees and are not agents or employees of City. Contractor by virtue of this Agreement, has no authority to bind or incur any obligation on behalf of City. Except as expressly provided in Exhibit A, Contractor has no authority or responsibility to exercise any rights or power vested in the City. No agent, officer or employee of the City is to be considered an employee of the Contractor. It is understood by both Contractor and City that this Agreement shall not be construed or considered under any circumstances to create an employer-employee relationship or a joint venture.

9.2 Contractor shall determine the method, details and means of performing the work and services to be provided by Contractor under this Agreement. Contractor shall be responsible to City only for the requirements and results specified in this Agreement and, except as expressly provided in this Agreement, shall not be subjected to City's control with 2 ATTACHMENT A17 261
respect to the physical action or activities of Contractor in fulfillment of this Agreement.

Contractor has control over the manner and means of performing the services under this Agreement. If necessary, Contractor has the responsibility for employing other persons or firms to assist Contractor in fulfilling the terms and obligations under this Agreement.

9.3 If in the performance of this Agreement any third persons are employed by Contractor, such persons shall be entirely and exclusively under the direction, supervision and control of Contractor. All terms of employment including hours, wages, working conditions, discipline, hiring and discharging or any other term of employment or requirements of law shall be determined by the Contractor.

9.4 It is further understood and agreed that Contractor must issue W-2 forms or other forms as required by law for income and employment tax purposes for all of Contractor's assigned personnel under the terms and conditions of this Agreement.

10. Subcontractor.

10.1 Subcontractors shall not be recognized as having any direct or contractual relationship with City. Contractor shall be responsible for the work of subcontractors, which shall be subject to the provisions of this Agreement. Subcontractors will be provided with a copy of the Agreement and be bound by its terms. Contractor is responsible to City for the acts and omissions of its subcontractors and persons directly or indirectly employed by them.

10.2 If in the performance of this Agreement any third persons are employed by Contractor, such persons shall be entirely and exclusively under the direction, supervision and control of Contractor. All terms of employment including hours, wages working conditions, discipline, hiring, and discharging or any other term of employment or requirement of law shall be determined by Contractor.

10.3 It is further understood and agreed that all Subcontractors must issue W-2 forms or other forms as required by law for income and employment tax purposes for all of Subcontractors personnel.

11. Termination.

11.1 Termination for Convenience of City. The City may terminate this Agreement at any time by mailing a notice in writing to Contractor. The Agreement shall then be deemed terminated, and no further work shall be performed by Contractor. If the Agreement is so terminated, the Contractor shall be paid for the work actually completed at the time the notice of termination is received. 3 ATTACHMENT A18 262

11.2 Termination for Convenience of Contractor. The Contractor may terminate this Agreement at any time by mailing a notice in writing to City. The Agreement shall then be deemed terminated, and no further work shall be performed by Contractor. If the Agreement is so terminated, the Contractor shall be paid for the work completed at the time the notice of termination is received.

11.3 Should either party default in the performance of this Agreement or materially breach any of its provisions, the other party, at that party’s option, may terminate this Agreement by giving written notification to the other party.

11.4 Funding- Non-Appropriation. It is mutually understood between the Parties that payment to the Contractor for performance shall be dependent upon the availability of appropriations by the City Council for the purposes of this Agreement. No legal liability on the part of the City for any payment may arise under this Agreement until funds are made available and until the Contractor has received funding availability, which will be confirmed in writing. If funding for any fiscal year is reduced or deleted, or if the City loses funding for any reason, the City, in its sole discretion, shall have the option to either (a) cause this Agreement to be canceled or terminated pursuant to applicable provisions of the Agreement; or (b) offer to amend the Agreement to reflect the reduced funding for this Agreement.

12. Non-Assignability. The Contractor shall not assign, sublet, or transfer this Agreement or any interest or obligation in the Agreement without the prior written consent of the City, and then only upon such terms and conditions as City may set forth in writing. Contractor shall be solely responsible for reimbursing subcontractors.

13. Indemnity and Mutual Hold Harmless. George Hills will defend, indemnify, and hold harmless the City of Stockton and its officers, officials, employees and volunteers from and against all claims, demands, actions, or causes of action arising directly or indirectly from the negligent action, conduct, or failure to act by George Hills' personnel (“Indemnity Event”), except that indemnity under this section does not apply with respect to any claim, demand, action, or cause of action arising out of the sole negligence or willful misconduct of the City. This right to indemnity shall not cover any claims in which there is a failure to give George Hills prompt and timely notice, within thirty (30) days of notice received by the City which implicates this provision, but only if and to the extent that such failure materially prejudices the defense of such claims. For an Indemnity Event, the maximum amount recoverable by City against George Hills for damages and costs (inclusive of attorneys’ fees) is limited to the insurance policy limits, of the policy which covers the Indemnity Event held by George Hills, in place at the time of the Indemnity Event.
4 ATTACHMENT A19 263
City will defend, indemnify, and hold harmless GH, and/or employees of GH, from and against all claims, demands, actions, or causes of action, which may arise, from the action, conduct, or failure to act by City. In any cases subject to this indemnity provision, wherein GH, or any employee of GH, is named in a filed or verified complaint simply by virtue of the fact it is the claims administration firm, or an employee thereof, on a given claim, the City will defend GH, and/or its employees, at no cost to GH or its employees.

14. Insurance. During the term of this Agreement, Contractor shall maintain in full force and effect at its own cost and expense the insurance coverage as set forth in the attached Exhibit B to this Agreement and shall otherwise comply with the other provisions of Exhibit B to this Agreement.

15. Notices. All notices herein required shall be in writing and shall be sent by certified or registered mail, postage prepaid, addressed in Exhibit A to this Agreement.

16. Conformance to Applicable Laws. Contractor shall comply with all applicable Federal, State, and Municipal laws, rules, and ordinances. Contractor shall not discriminate in the employment of persons or in the provision of services under this Agreement on the basis of any legally protected classification, including race, color, national origin, ancestry, sex or religion of such person.

17. Licenses, Certifications and Permits. Prior to the City’s execution of this Agreement and prior to the Contractor’s engaging in any operation or activity set forth in this Agreement, Contractor shall obtain a City of Stockton business license, which must be kept in effect during the term of this Agreement. Contractor covenants that it has obtained all certificates, licenses, permits and the like required to perform the services under this Agreement. Such licenses, certificates and permits shall be maintained in full force and effect during the term of this Agreement.

18. Records and Audits. Contractor shall maintain all records regarding this Agreement and the services performed for a period of three (3) years from the date that final payment is made. At any time during normal business hours, the records shall be made available to the City to inspect and audit. To the extent Contractor renders services on a time and materials basis, Contractor shall maintain complete and accurate accounting records, in a form prescribed by City or, if not prescribed by City, in accordance with generally accepted accounting principles, such records to include, but not be limited to, payroll records, attendance cards, time sheets, and job summaries.

19. Confidentiality. Contractor shall exercise reasonable precautions to prevent the unauthorized disclosure and use of City reports, information or conclusions. 5 ATTACHMENT A20 264

20. Conflicts of Interest. Contractor covenants that other than this Agreement, Contractor has no financial interest with any official, employee or other representative of the City. Contractor and its principals do not have any financial interest in real property, sources of income or investment that would be affected in any manner of degree by the performance of Contractor’s services under this Agreement. If such an interest arises, Contractor shall immediately notify the City.

21. Waiver. In the event either City or Contractor at any time waive any breach of this Agreement by the other, such waiver shall not constitute a waiver of any other or succeeding breach of this Agreement, whether of the same or of any other covenant, condition or obligation. No payment, partial payment, acceptance, or partial acceptance by City shall operate as a waiver on the part of City of any of its rights under this Agreement.

22. Governing Law. California law shall govern any legal action pursuant to this Agreement with venue for all claims in the Superior Court of the County of San Joaquin, Stockton Branch or, where applicable, in the Federal District Court of California, Eastern District, Sacramento Division.

23. No Personal Liability. No official or employee of City shall be personally liable to Contractor in the event of any default or breach by the City or for any amount due Contractor.

24. Severability. If any portion of this Agreement or application thereof to any person or circumstance shall be declared invalid by a court of competent jurisdiction or if it is found in contravention of any federal, state or city statue, ordinance or regulation the remaining provisions of this Agreement or the application thereof shall not be invalidated thereby and shall remain in full force and effect to the extent that the provisions of this Agreement are severable.

25. Non-Discrimination. During the performance of this Agreement, Contractor and its officers, employees, agents, representatives or subcontractors shall not unlawfully discriminate in violation of any federal, state, or local law, rule or regulation against any employee, applicant for employment or person receiving services under this Agreement because of race, religion, color, national origin, ancestry, physical or mental disability, medical condition (including genetic characteristics), marital status, age, political affiliation, gender identity, gender expression, sex or sexual orientation, family and medical care leave, pregnancy leave, or disability leave. Contractor and its officers, employees, agents, representative or subcontractors shall comply with all applicable Federal, State and local laws and regulations related to non-discrimination and equal opportunity, including without limitation the City’s nondiscrimination policy; the Fair Employment and Housing Act (Government Code sections 12990 (et seq.); California 6 ATTACHMENT A21 265
Labor Code sections 1101, 1102 and 1102.1; the Federal Civil Rights Act of 1964 (P.L. 88-352), as amended; and all applicable regulations promulgated in the California Code of Regulation or Code of Federal Regulations. Title VI of the Civil Rights Act of 1964 requires that “no person in the United States shall, on the grounds of race, color, or national origin be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity receiving federal financial assistance.”(42 USC Section 2000d). http://www.dol.gov/oasam/regs/statutes/titlevi.htm.

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

26. Force Majeure. Neither party shall be responsible for delays or failures in performance resulting from acts of God, acts of civil or military authority, terrorism, fire, flood, strikes, war, epidemics, pandemics, shortage of power or other acts or causes reasonably beyond the control of that party. The party experiencing the force majeure event agrees to give the other party notice promptly following the occurrence of a force majeure event, and to use diligent efforts to re-commence performance as promptly as commercially practicable.

27. Taxes and Charges. Contractor shall be responsible for payment of all taxes, fees, contributions or charges applicable to the conduct of the Contractor’s business.

28. Cumulative Rights. Any specific right or remedy provided in this Agreement will not be exclusive but will be cumulative of all other rights and remedies to which may be legally entitled.

29. Advice of Attorney. Each party warrants and represents that in executing this Agreement, it has received independent legal advice from its attorneys or the opportunity to seek such advice.

30. Heading Not Controlling. Headings used in this Agreement are for reference purposes only and shall not be considered in construing this Agreement.

31. Entire Agreement, Integration, and Modification.

31.1 This Agreement represents the entire integrated agreement between Contractor and the City; supersedes all prior negotiations, representations, or agreements, either written or oral between the parties and may be amended only by a written Amendment signed by the Contractor and City Manager.

31.2 All Exhibits to this Agreement and this Agreement are intended to be construed as a single document.
7 ATTACHMENT A22 266

32. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original. All counterparts shall be construed together and shall constitute one agreement.

33. Authority. The individual(s) executing this Agreement represent and warrant that they have the legal capacity and authority to do so on behalf of their respective legal entities.
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EXHIBIT D

PROFESSIONAL SERVICES SPECIAL TERMS AND CONDITIONS

1. Definitions. The following words and phrases have the following meanings for purposes of this Agreement:

1.1 "Services" means, collectively, the services, duties and responsibilities described in Exhibit A of this Agreement and any and all work necessary to complete them or carry them out fully and to the standard of performance required in this Agreement.

1.2 “Deliverable” means quantifiable goods or services that will be provided upon completion of a project. A deliverable is any tangible material, work or thing delivered by one party to the other, including associated technical documentation. A deliverable can be tangible or intangible parts of the development process, and often are specified functions or characteristics of the project.

2. General. The following terms and conditions are applicable for the Professional Services only. The special conditions shall be read in conjunction with the Standard Agreement, General Terms and Conditions (“GTC”) Exhibit C, and all other Exhibits identified in the Standard Agreement.

2.1 Where any portion of the GTC is in conflict to or at variance with any provisions of the Special Conditions of the Agreement, then unless a different intention stated, the provision(s) of the Special Conditions of the Agreement shall be deemed to override the provision(s) of GTC only to the extent that such conflict or variations in the Special Conditions of the Agreement are not possible of being reconciled with the provisions of the GTC.

2.2 In the case of modification of a part or provision of the GTC, the unaltered part or provision, or both shall remain in effect. The Special Conditions shall relate to a particular project and be peculiar to that project but shall not weaken the character or intent of the GTC.

3. Time for Performance.

3.1 Contractor shall perform the services according to the schedule contained in Exhibit F.

3.2 Timeliness of Performance i) Contractor shall provide the Services, and Deliverables within the term and within the time limits required under this Agreement, pursuant to the provisions of Exhibit A and Exhibit F. ii) Neither Contractor nor Contractor’s agents, employees nor subcontractors are entitled to any damages from the City, nor is any party entitled to be reimbursed by the City, for damages, charges or other ATTACHMENT A24 268
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losses or expenses incurred by Contractor by reason of delays or hindrances in the performance of the Services, whether or not caused by the City.

4. Standard of Performance
In addition to Exhibit C, Section 4 and 17, Contractor agrees as follows:

4.1 Contractor’s Services shall be performed in accordance with generally accepted professional practices and principles and in a manner consistent with the level of care and skill ordinarily exercised by members of Contractor’s profession currently practicing under similar conditions. Contractor shall comply with the profession’s standard of performance, applicable laws, regulations, and industry standards. By delivery of completed work, Contractor certifies that the work conforms to the requirements of this Agreement and all applicable federal, state and local laws. If Contractor is retained to perform services requiring a license, certification, registration or other similar requirement under California law, Contractor shall maintain that license, certification, registration or other similar requirement throughout the term of this Agreement.

4.2 Contractor acknowledges that it is entrusted with or has access to valuable and confidential information and records of the City and with respect to that information, Contractor agrees to be held to the standard of care of a fiduciary. Contractor shall assure that all services that require the exercise of professional skills or judgment are accomplished by professionals qualified and competent in the applicable discipline and appropriately licensed, if required by law. Contractor must provide copies of any such licenses. Contractor remains responsible for the professional and technical accuracy of all Services or Deliverables furnished, whether by Contractor or its subcontractors or others on its behalf. All Deliverables must be prepared in a form and content satisfactory to the Using Agency and delivered in a timely manner consistent with the requirements of this Agreement.

4.3 If Contractor fails to comply with the foregoing standards, Contractor must perform again, at its own expense, all Services required to be re-performed as a direct or indirect result of that failure. Any review, approval, acceptance or payment for any of the Services by the City does not relieve Contractor of its responsibility for the professional skill and care and technical accuracy of its Services and Deliverables. This provision in no way limits the City’s rights against Contractor either under this Agreement, at law or in equity.

5. Compensation

5.1 In addition to Section 3 Compensation in Exhibit C – GTC, the Contractor shall be compensated for the services provided under this Agreement as follows:

5.1.1 Contractor shall be compensated for services rendered and accepted under this Agreement and shall be paid monthly, in arrears on a not to exceed ATTACHMENT A25 269
3 (Rev. 07.12.22)
basis, based upon the rates set forth in Exhibit E attached hereto and made a part of this Agreement. Contractor may vary the compensation for each task in Exhibit E provided that the total project compensation listed in Exhibit E and the Standard Agreement is not exceeded.

6. Personnel

6.1 None of the work or services covered by this Agreement shall be subcontracted without the prior written approval of the City. Any work or services subcontracted hereunder shall be specified by written agreement and shall be subject to each provision of this Agreement. Contractor shall provide subcontractor a copy of this fully executed Agreement.

6.2 Contractor agrees to assign only competent personnel according to the reasonable and customary standards of training and experience in the relevant field to perform services under this Agreement. Failure to assign such competent personnel shall constitute grounds for termination of this Agreement. The payment made to Contractor pursuant to this Agreement shall be the full and complete compensation to which Contractor and Contractor’s officers, employees, agents, and subcontractors are entitled for performance of any work under this Agreement. Neither Contractor nor Contractor’s officers or employees are entitled to any salary or wages, or retirement, health, leave or other fringe benefits applicable to employees of the City. The City will not make any federal or state tax withholdings on behalf of Contractor. The City shall not be required to pay any workers' compensation insurance on behalf of Contractor. Contractor shall pay, when and as due, any and all taxes incurred as a result of Contractor’s compensation hereunder, including estimated taxes, and shall provide City with proof of such payments upon request.

6.3 Key Personnel: Because of the special skills required to satisfy the requirements of this Agreement, Contractor shall not reassign or replace key personnel without the written consent of the City, which consent the City will not unreasonably withhold. "key personnel" means those job titles and the persons assigned to those positions in accordance with the provisions of this Agreement. The City may at any time in writing notify Contractor that the City will no longer accept performance of Services under this Agreement by one or more Key Personnel listed. Upon that notice Contractor shall immediately suspend the services of the key person or persons and must replace him or them in accordance with the terms of this Agreement. A list of key personnel is found in Exhibit A, Scope of Services.

7. Reports and Information
Contractor shall at such times and in such forms as the City may require furnish the City such periodic reports as it may request pertaining to the work or services undertaken pursuant to this Agreement, the costs and obligations incurred or to be incurred in connection therewith, and any other matters are covered by this Agreement as specified in Exhibit A and Exhibit E.

ATTACHMENT A26 270
4 (Rev. 07.12.22)

8. Findings Confidential
All of the reports, information, data, et cetera, prepared or assembled by the Contractor under this Agreement are confidential and the Contractor agrees that they shall not be made available to any individual or organization without the prior written approval of the City. Contractor shall not be required under the provisions of this paragraph to keep confidential any data or information which is or becomes publicly available, is required by applicable law or by proper legal or governmental authority, is already rightfully in the Contractor’s possession without obligation of confidentiality, is independently developed by Contractor outside the scope of this Agreement or is rightfully obtained from third parties. Contractor shall give City prompt notice of any such legal or governmental demand and reasonably cooperate with City in any effort to seek a protective order or otherwise to contest such required disclosure.

9. Copyright
No materials, including but not limited to reports, maps, or documents produced as a result of this Agreement, in whole or in part, shall be available to Contractor for copyright purposes. Any such materials produced as a result of this Agreement that might be subject to copyright shall be the property of the City and all such rights shall belong to the City, and the City shall be sole and exclusive entity who may exercise such rights.

10. Deliverables
Contractor shall prepare or provide to the City various Deliverables. "Deliverables" include work product, such as written reviews, recommendations, reports and analyses, produced by Contractor for the City. The City may reject Deliverables that do not include relevant information or data, or do not include all documents or other materials specified in this Agreement or reasonably necessary for the purpose for which the City made this Agreement or for which the City intends to use the Deliverables. If the City determines that Contractor has failed to comply with the foregoing standards, it has 30 days from the discovery to notify Contractor of its failure. If Contractor does not correct the failure, or if it is possible to do so, within 30 days after receipt of notice from the City specifying the failure, then the City, by written notice, may treat the failure as a default of this Agreement.

Partial or incomplete Deliverables may be accepted for review only when required for a specific and well-defined purpose and when consented to in advance by the City. Such Deliverables will not be considered as satisfying the requirements of this Agreement and partial or incomplete Deliverables in no way relieve Contractor of its commitments under this Agreement.

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

ATTACHMENT A27 271

EXHIBIT E

COMPENSATION SCHEDULE
The Contractor shall be compensated for the services identified in Exhibit A, Exhibit C, and Exhibit D to this Agreement as follows:

1. Project Price

1.1 The maximum the Contractor shall be paid on this Agreement is $__2,504,768.64_ (hereafter the “not to exceed” amount). The “not to exceed” amount includes all payments to be made pursuant to this Agreement, including City approved reimbursable expenses, if any. Nothing in this Agreement requires the City to pay for work that does not meet the Standard of Performance identified in Exhibit D section 4 or other requirements of this Agreement.

1.2 Standard Reimbursable Items: Only the reimbursable items identified in Exhibit A, C, and E (Compensation), shall be compensated to the Contractor.

Reimbursable expenses will be reimbursed without markup. Fees plus reimbursable expenses shall not exceed the amount set forth in section 1.1 of this Exhibit and a copy of the original invoice for the items listed in i, ii or iii below shall be attached to the invoice submitted to the City for reimbursement. Payments shall be based upon work documents submitted by the Contractor to the City and accepted by the City as being satisfactory to City’s needs. The City shall not pay a markup on any of the items listed in i, ii or iii.

Additionally, items such a telephone, fax, postage or freight are already included in the billable hourly rate. Contractor shall be reimbursed the direct expenses, which are the actual cost of the following items that are reasonable, necessary and actually incurred, by the Contractor in connection with the services:
i. Expenses, fees or charges for printing, reproduction or binding of documents at actual costs with no markup added to the actual cost. ii. Any filing fees, permit fees, or other fees paid or advanced by the Contractor at actual costs with no markup added to the actual cost. iii. Travel expenses shall be reimbursed in accordance with the City’s travel policy, which is incorporated herein by reference.

Reimbursement shall be made at actual costs with no markup added to the actual cost.

1.3 The Contractor shall be entitled to receive payments for its work performed pursuant to the Agreement. The City will pay Contractor based on invoices for acceptable work performed and approved until the “not to exceed” amount is reached. Thereafter, Contractor must complete services based on the Agreement without additional compensation unless there is a material change to the Statement of Work and Scope by a written Amendment.

ATTACHMENT A28 272

1.4 If work is completed before the “not to exceed” amount is reached, the Contractor’s compensation will be based on the Contractor’s invoices previously submitted for acceptable work performed and approved.

1.5 Subcontractor Costs: Compensation for subcontractors shall be limited to the same restrictions imposed on the Contractor. Maximum markup Contractor may apply to subcontractor fees, minus reimbursable expenses, shall not exceed ______%.

1.6 If any invoice remains unpaid after 90 days, Contractor reserves the right to cease all services. Contractor will provide written notice 10 days in advance of cessation of services. City acknowledges and agrees that cessation of all services will occur regardless of City consent and regardless of deadlines imposed by statute in connection with the handling of claims. Following receipt of any notice of cessation of services, City agrees that it will immediately make all necessary arrangements for the handling and administration of all claims.

2. Task Price.

2.1 Below is the maximum price for the services for claims and reimbursable expenses as described in ATTACHMENT A (see pricing sheet) of this Agreement.

Year Task Price
1 $453,300.00
2 $475,965.00
3 $499,763.25
4 $524,751.41
5 $550,988.98
Total $2,504,768.64
Fixed Fee and/or Annual Cap Recalculation: Contractor reviews and analyzes the claims frequency annually. Within 30 days of the end of each 12-month period from the date the work under the contract is initiated, Contractor will provide notice to the City of the actual number of claims received for the preceding 12 months. If the claims frequency exceeds the base number, which is the number of claims at the time of execution of this Contract, by greater than 10%, Contractor will provide a new Annual Fixed Fee and/or Annual Cap calculation based on the change in frequency. The new Annual Fixed Fee or Cap will begin on July 1st of the next year in the Contract term. If the frequency changes in an amount of 10% or less, there will be no change in the Annual Fixed Fee calculation.

Likewise, if the Annual Cap does not need adjustment to allow work to continue, the parties may agree that no adjustment is necessary. Any Annual Cap does not include any fees charged and collected by Consultant for First Party Subrogation services and fees.

2.2 Litigated Claims: If the City requests that Contractor perform work on or in connection with litigated claims under Exhibit A, Section 2.0, Contractor will perform the requested services on a Time and Expense basis utilizing the rates identified in ATTACHMENT A under Option 1A. In the event such work is performed on a Time and Expense basis, the amounts billed for this work will be in addition to and will not serve to erode the maximum price listed above.

ATTACHMENT A29 273

2.3 First Party Subrogation Services and Fees: Consultant will perform first party recovery and subrogation services. The fee for these services is 30% of the gross recovery per claim. Since the fees are collected from third parties and not paid directly by the City, the fees collected and paid for these services are not included in the Annual Fixed Fees identified above.

2.3.1 Billing for Services and Payment to Contractor: The process to be used by Contractor is stated as follows:
a. Once recovery is agreed to between Contractor and the at-fault party and all documentation is executed including a release, the atfault party will issue a check to Contractor for the full agreed upon amount.
b. Contractor shall deposit the gross recovered funds into the Contractor’s Client Trust Fund.
c. Within ten (10) days after deposit, Contractor will issue the net payment to the City consisting of the amount remaining after deduction of the fees and expenses to compensate Contractor based on this Contract.

2.3.2 Costs and Expenses: All costs and expenses of litigation filed pursuant to this section, including attorney fees for outside counsel where necessary and approved, will be paid by the City. a. Where Contractor is requested to appear in small claims court to pursue the recovery of funds, each appearance will incur an additional fee of $250.
b. Where Contractor’s personnel appear in the same court on the same day for more than one claim, Contractor will charge a flat fee of $500 for half of a day or $1,000 for a full day, regardless of the number of claims handled on that day.
c. Contractor will be reimbursed for all miles traveled at the current IRS rate.
d. All costs and expenses allocated to any claim will be billed to the client which assigned to claim for handling.

2.3.3 Compensation Upon Termination: Due to the nature of these services, in that compensation is contingent upon recovery, if the contract is terminated prior to recovery or other closure of any claim, the City shall pay Contractor for all expenses and time spent, to date, on any claims(s) currently open and recovery in process. Payment shall be based on the current hourly rate of Contractor of $115.00 per hour. Contractor will submit a final invoice within five business days of termination.

ATTACHMENT A30 274

3. Additional Fees, Costs, and Expenses.

See ATTACHMENT A.

4. Invoice to Mailing Address or Email. Each invoice submitted shall identify the specific task(s) listed in Exhibit A and this Exhibit, and the completed work product/ deliverable for the agreed upon price listed in this Exhibit. Invoices shall be submitted to the below mailing address or email address:

City of Stockton
Attention: HR – Risk Services
Attention: Dawna Zarubin
425 N. El Dorado Street, 3rd Floor
Stockton, CA 95202
[email protected]
ATTACHMENT A31 275

NARRATIVE

CITY OF STOCKTON

THIRD PARTY ADMINISTRATOR (TPA) TO
MANAGE CITY’S SELF-INSURED GENERAL

LIABILITY PROGRAM
RFP PUR 25-042........................................................................ Submitted: July 17, 2025 George Hills
PO Box 278, Rancho Cordova, CA 95741
Phone: (916) 859-4800, Fax: (916) 859-4805
ATTACHMENT A32 276

5. COVER LETTER
July 17, 2025
City of Stockton
Attn: Jason Farrow
RE: RFP for Third-Party Administrator (TPA) to Manage City’s Self-Insured General Liability Program
Dear Mr. Farrow,
As President of George Hills, I thank you for the opportunity to submit a proposal to provide Third Party Claims Administration Services to the City of Stockton (the City). Our team will provide exemplary services while increasing efficiencies and reducing the City’s total cost of risk. Our claims professionals are highly qualified and experienced with the unique nuances of California’s public entities.

George Hills provides third-party administration services to several of California’s cities and public entities of all sizes, including many special districts and nearly 20 JPAs (both primary and excess). We are knowledgeable in the specific exposures that California public entities face.

Responsiveness to the RFP: We are proud to know that we meet, and in some cases exceed the City’s requirements and evaluation criteria. George Hills is prepared and ready to fulfill the needs of the City.

Public Entity Experience: George Hills has an established record of consistent professional service and reputation within the industry, with specific emphasis on public entities and knowledge of public safety benefits, laws, and immunities.

High Quality References: Our clients are a testament to the quality of service we provide. We serve nearly 500 California public entities, including nearly 20 JPAs.

Staffing and Experience: George Hills selectively recruits and retains the industry’s best of the best claims professionals. Our team is dedicated to setting the standard for client satisfaction.

Cost Benefit Advantages: With our claims handling best practices to guide us, George Hills’ approach is focused on efficient, cost-effective, and strategic resolutions. As a boutique-style firm, we customize our services to fit your needs.

Core Values: George Hills is set apart from other candidates by our core values, which direct and maintain all that we do. George Hills fosters values of resilience, accountability, continuous improvement, stewardship, and collaboration.

Our claims handling success is focused on the protection of your assets. With over 70 years in business, George Hills has achieved a best-in-class reputation. As the president of George Hills, I promise that you will experience the difference in our approach and feel confident in your decision to work with us. Thank you for considering George Hills for this vital role.

Respectfully submitted,
John Chaquica, CPA, MBA, ARM
President, George Hills Company
Company Contacts: John Chaquica, President & Chris Shaffer, Chief Operating Officer Office: (916) 859-4824 & (916) 859-4826
Email: [email protected] & [email protected] Mailing Address: PO Box 278, Rancho Cordova, CA 95741
ATTACHMENT A33 277

EXECUTIVE SUMMARY

1. Key Team Members
The key members of the proposed team include Shari Huff (Assistant Vice President, Supervisor), Kelley Winters (Senior Adjuster), Nick Chavez (Senior Property Adjuster), Nick Dotzler (Field Claims Representative), Kathleen Proctor (Client Services Manager), Tammy Hunt (Subrogation Manager), Chris Shaffer (Chief Operating Officer), and John Chaquica (President).

2. Main Contact
The main point of contact for the City is to be Kathleen Proctor, Client Services Manager.

3. Summary of Experience
George Hills has served California’s public entities, providing liability and property claims administration services for more than 70 years.

4. Addenda
There are no addenda pertaining to this RFP.

5. Proposal Validity
This proposal and all its contents, including the fee proposal, are valid for a period of 120 days.

ATTACHMENT A34 278

TABLE OF CONTENTS

5. COVER LETTER.............................................................................................................. 1 EXECUTIVE SUMMARY ............................................................................................................ 2

5.1 QUALIFICATIONS AND EXPERIENCE ................................................................................ 5

1. FIRM ORGANIZATION ......................................................................................................... 5

2. REFERENCES ..................................................................................................................... 15

3. FINANCIAL CAPACITY ....................................................................................................... 15

5.2 METHOD OF APPROACH ............................................................................................... 17

1. SCOPE OF WORK STATEMENT .......................................................................................... 17

2. SCOPE OF WORK .............................................................................................................. 17

3. BEST PRACTICES............................................................................................................... 27

4. QUALITY ASSURANCE PRACTICES .................................................................................... 37 Section 8 Form – Proposal Documents .............................................................................. 39 Attachment B – Proponent’s Covenant ............................................................................. 40 Attachment C – Non-Collusion Affidavit ........................................................................... 41 Attachment D – Agency Reference List ............................................................................ 43 Attachment E – Certification of Financial Condition......................................................... 44 Attachment F – Cost/Price Proposal.................................................................................. 45 Attachment G – Subcontractor List ................................................................................... 46 Attachment H – Exceptions ............................................................................................... 47 Amendments ...................................................................................................................... 50 Sample Reports .................................................................................................................. 51 Sample POA ....................................................................................................................... 55 ATTACHMENT A35 279

5.1 QUALIFICATIONS

AND EXPERIENCE
ATTACHMENT A36 280

5.1 QUALIFICATIONS AND EXPERIENCE

1. FIRM ORGANIZATION
George Hills Company was founded in 1954 and has provided liability and property claims administration services to the public sector for four decades. Since 2013, we have dedicated an entire department to Subrogation Recovery Services for public entities. Since its inception, George Hills has expanded, grown, and branched out in ways consistent with our value of continuous improvement.

In addition to third-party claims administration, we provide industry-leading litigation management services, subrogation recovery, investigative services, and JPA management. Today, we work with more public entities in California than any other TPA.

Public Entity Experience: George Hills has made public entity casualty claims adjusting its focus. We put forth considerable effort in recruiting, retaining, and training our employees. We partner with nearly 150 California cities – a significant percentage of the state’s counties both as stand-alone agencies and JPA members.

George Hills’ emphasis on high quality public entity adjusters and our reputation for excellent client services have led us to the forefront for California Public Entities property and liability claims management. For more than half a century, George Hills has specialized in California public entity multi-line claims adjusting (property and liability) while also providing litigation management and investigative services.

Firm Structure: Our claim division staffing structure ensures that the quality of work we provide will meet your exact expectations. We employ claim executives who have been in the business of serving public entities for most of their careers. We have a hierarchical structure of managers and supervisors who oversee and advise on the work produced by adjusters. Our adjusting staff consists of senior level adjusters, adjusters who are progressing in their careers toward senior level positions and claim processors who provide administrative support as well as key support duties. George Hills’ employees hold professional licenses, BA/BS/MA and JD degrees, and/or industry certifications/designations, including: Independent Insurance Adjuster; Associate in Risk Management (ARM); Registered Professional Adjuster (PRA); Casualty Claim Law Associate (CCLA); California Self-Insured Administrator (SIA); Certified Public Accountant (CPA); Charter Global Management Accountant (CGMA); Certified Litigation Management Professional (CLMP); Property/Casualty Agent; and the California State Bar.

Commitment: Our approach as a third-party administrator is based on our commitment to protect your assets. Our goal is to reduce the number of claims and claims paid amounts by identifying cost drivers, performance gaps, and opportunities for cost reduction. Our project approach centers on transparency and frequent communication with internal and external stakeholders. At the onset, we seek to determine your expectations, which will refine our methodology. Our approach to fulfilling the City’s needs stems from our company’s experience, values, personnel, and our best practices approach to claims handling. Customer satisfaction is paramount and one of our core values – one which guides us in all we do. Our commitment to superior customer service is bolstered by our exceptional, highly qualified staff supported by our unparalleled training and certification program.

ATTACHMENT A37 281
Organizational structure
George Hills is a values-based company. Our values are accountability, continuous improvement, collaboration, stewardship, and resiliency. These values influence everything we do.

Primary Office: George Hills operates in a hybrid environment with our corporate headquarters in Folsom, near Sacramento. We have adjusters statewide in California.

PERSONNEL
Personnel Role for the City
John Chaquica

CPA, MBA, ARM
President
Role: Executive Contact Contract liaison for the City’s total satisfaction with George Hills’ services and
steward of George Hills’ values through the
engagement.

Qualifications: With over 33 years of experience in risk and JPA management, Mr. Chaquica applies a virtually unmatched level of experience and talent. Mr. Chaquica holds an MBA from Golden Gate University and a BS in Accounting from California State University, Sacramento. In addition, he holds an Associate in Risk Management (ARM) designation from the Insurance Institute of America.

Chris Shaffer
ARM/P
Chief Operating Officer
Role: Oversees firm operations and provides
executive oversight as needed. His role includes
strategic efforts for growing the company and further
developing George Hills as the leading California TPA.

Qualifications: Mr. Shaffer has an exceptional 30-year record of achievement in the management of corporate, risk management, business systems, and information systems operations. He earned 34 31
ATTACHMENT A38 282
a Bachelor of Arts from the University of Utah. He holds and Associate in Risk Management (ARM) designation.

Shari Huff
AIC-M
Assistant Vice President
Role: Supervisor overseeing client relationships.

Qualifications: Ms. Huff has over 27 years of
management-level experience in the insurance claims
industry. She brings extensive public entity experience to the table – working in the public entity arena for the past 14 years. Ms. Huff earned her degree from the University of Santa Barbara. She holds an Associate in Claims – Management (AIC-M) designation.

Kathleen Proctor

WCCA, CFE
Client Services Manager
Role: Assures client satisfaction, including developing detailed Claims Handling Instructions tailored to the
City’s needs and scheduling regular and ongoing
meetings with the service team to address any service
needs or concerns.

Qualifications: Ms. Proctor holds a BS in Criminal Justice from California State University, Sacramento. She is experienced with public entity claims, public records, and business development. Ms.

Proctor has a decade of experience as a Risk Manager, and nearly a decade of operation management.

Nick Chavez
FCLS
Senior Property Claims
Adjuster
Role: Senior Claims Adjuster and secondary point of
contact for all claims-related matters for the City.

Qualifications: Mr. Chavez has an impressive 35-year
record of claims adjusting experience, with the majority of his time spent handling large, complex claims and property claims. Mr.

Chavez holds a Bachelor of Arts from California State University, Turlock.

Kelley Winters
Senior Claims Adjuster
Role: Senior Claims Adjuster and secondary point of
contact for all claims-related matters for the City.

Handles assigned litigated files.

Qualifications: Ms. Winters has more than 31 years of experience working in the industry with claims. She is experienced with conducting investigations, interviews, and handling litigated claims.

Nick Dotzler
Field Claims Representative Role: Handles claims for the City.

Qualifications: Mr. Dotzler specializes in field
investigations. His experience includes property
damage, potholes, small claims, and field/fatality investigations.

Mr. Dotzler possesses a CA POST Certificate.
27 35
20 1
32 ATTACHMENT A39 283
Tammy Hunt
CCLS
Subrogation Manager
Role: Supervisor overseeing subrogation recovery
services.

Qualifications: Ms. Hunt has 27 years of experience
in the industry. She has been focused on subrogation recovery for public entities for more than 15 years. She received her Associate’s Degree in Liberal Arts, Bachelor’s Degree in Paralegal Studies, and Paralegal Certificate from Humphreys University (previously Humphreys College) in Stockton, California.

TBD
Claims Adjuster Role: Handles claims for the City.

TBD
Claims Representative
Role: Handles claims for the City.

TBD
Claims Processor
Role: Responsible for support of the designated liability claims team. Enters all new claims into the CMIS and general claims processing. The Claims Processor is instrumental in our quality assurance reporting.

The proposed fixed fee is based on an anticipated staffing level equivalent to 2.5 full-time equivalents (FTEs) of adjuster time. This staffing level is calibrated to support the expected claim frequency and service scope as outlined in the RFP.

During the term of the contract, should claim volume increase materially, defined as greater than 10%, beyond the assumptions used to develop this pricing, the fixed fee will no longer be valid. In such cases, George Hills will work collaboratively with the client to assess the increased workload and determine appropriate staffing adjustments. Any additional personnel required will be mutually agreed upon, and the fee structure will be revised accordingly to reflect the expanded service commitment.

This approach ensures transparency and flexibility while maintaining service quality and responsiveness.
27 ATTACHMENT A40 284

TRAINING
At George Hills, training is more than just slideshows and seminars. We are committed to growth and continuous
improvement. We regularly provide training for our clients and employees on relevant and current topics from industry experts.

Most significantly, we provide access to George Hills Claims University (GHCU), where anyone can learn about the unique claims processes and considerations necessary for handling claims presented against public entities. The specialized educational resources provided through GHCU offer enhanced knowledge and skills to
claims and risk management professions.

The George Hills Subrogation Recovery Division provides all Division staff with continuous training on a daily basis, and an in-depth training session is provided monthly regarding various subjects relevant specifically to the subrogation recovery process. In addition, annual training is provided to all Division staff on a variety of topics as may be appropriate and necessary as laws change and industry requirements may dictate.

GEORGE HILLS CLAIMS UNIVERSITY
Our goal is to deliver a comprehensive and effective educational program that aligns with the vision, values, and goals of George Hills.

The genesis of GHCU was the reality that students were not going to college to seek a career in insurance claims adjusting, and even fewer in claims adjusting in the public sector. We felt an obligation to establish a sustainable education forum to continue to cultivate knowledgeable and experienced public entity adjusters. By pooling resources, we have created GHCU to be cost-effective and to present relevant technical information from industry experts.

We offer multiple certifications through GHCU for anyone interfacing with the claims process:

Public Entity Claims Professional (PECP): The PECP is designed for adjusters and staff of public entities who are involved with their entity’s claims to build a strong foundational understanding of public entity claims in California. All George Hills claims staff complete the course work and earn the PECP designation, ensuring that every client has trained adjusters on their team. Advanced levels of the PECP offer a career-boosting spotlight on technical reforms in the claims process for experienced adjusters. The basic level of PECP can provide anyone with the tools and knowledge they need to begin a career in public entity claims.

Modules in the PECP certification course include:
• Public Entity Basics • Common Vs. Statutory Law
• The California Tort Claims Act • Recognizing Coverage • Liabilities, Immunities, and Defenses • The Settlement Process • Unique Exposures • Joint Powers Authorities & Pools
More information can be found at: https://georgehills.com/services/george-hills-claims-university/.

ATTACHMENT A41 285
Public Entity Claims Foundations (PECF): The PECF is crafted for any public entity employee who touches any part of a claim presented to their entity. This would include personnel who interface with the claims process, including risk managers, department heads, management, board members, analysts, managers, and anyone else interested in expanding their knowledge. The PECF provides supporting knowledge for our clients and the public in a ‘Claims 101’ style program.

GHCU is entirely online, allowing you to earn your certification anytime, anyplace. We offer a robust resource and reference library of claims and risk management technical topics, as well as structured training courses and assessments. GHCU is hosted on a comprehensive online Learning Management System. Access your courses from a personalized dashboard, review technical materials in the content library, and put yourself to the test with entirely online assessments all in one place. Content and courses are continually improving and updating to maintain fresh, relevant learning materials to support you.

For our clients, access to GHCU and these resources is included in your services and entirely free for your staff to utilize. But learning isn’t limited to George Hills’ clients; anyone can access GHCU. Email [email protected] for more information.

Training Programs
George Hills provides training for employees and clients. These training options include:
• Training sessions facilitated by industry experts on current and emerging claims-related topics, such as legislative changes, new case laws, and claim trends. We also use this session to refresh our claims administration staff on industry and internal best practices. • An annual two-day event for all claims staff, targeted at technical training, overall staff development, and team building. This annual session includes in-depth training and panel discussions on claims technical topics, claim system utilization, and corporate issues. A recent sample event included discussion about AB 218, the recent legislation extending the statute of limitations for childhood sexual abuse and molestation claims. • Online resources and training through George Hills’ Learning Management System. This Learning Management System is a robust resource and reference library for a wide variety of claims and risk management technical topics, as well as structured training courses ranging from entry-level to advanced.
• Company-paid training courses leading to an Associate in Claims (AIC) and other pertinent professional designations.
• Active participation in industry associations, such as Public Agency Risk Management Association (PARMA), California Association of Joint Powers Authorities (CAJPA), the League of California Cities, California State Association of Counties, Association of Governmental Risk Pools, and the Claims and Litigation Management Alliance. George Hills encourages employee attendance at their annual conferences and other training events throughout the year.

ATTACHMENT A42 286

RESUMES
John Chaquica

CPA, MBA, ARM
President
[email protected] | (916) 859-4824
George Hills Job Description
The Chief Executive Officer (CEO) establishes and lives by the corporate vision; develops and implements the George Hills’ Strategic Plan; provides leadership; and fosters the culture through our values to achieve plan objectives. As lead on George Hills’ Corporate Management Team (CMT), the CEO works with management to establish long-term goals, plans, and policies that align with organizational goals. The CEO provides coaching, guidance, and support to the team while setting professional development plans to assure all managers reach their full potential and deliver the highest standard of Division, cross-Divisional, and cross-Company teamwork and customer service.

Professional Experience
• George Hills, CEO / President
• Bickmore Risk Services, CEO
• Multiple Public Entity Self-Insurance Pools, Executive Director/Consultant • Gilbert Accountancy Corporation, Audit Partner and Industry Team Leader on Public Entity Self-Insured Groups
• Executive Director of: Independent Cities Risk Management Authority (ICRMA), Bay Cities Joint Powers Insurance Authority, Valley Insurance Program (VIP), Santa Cruz/San Benito JPA, North Valley Schools Insurance Group (NVSIG)
Professional Affiliations
• American Institute of Certified Public Accountants (AICPA) • California Society of Certified Public Accountants (CSCPA) • Court Appointed Special Advocates (CASA), Sacramento
Education
• Golden Gate University – MA, Business Administration/Finance • California State University, Sacramento – BS, Accounting • Insurance Institute of America – Associate in Risk Management (ARM) ATTACHMENT A43 287
Chris Shaffer
ARM/P
Chief Operating Officer
[email protected]
George Hills Job Description
Responsible for managing operations for the Claims Administration Division. Works with the CEO and other management to establish long-term goals, plans, and policies that align with organizational goals. Provides coaching, guidance, and support to the team while setting professional development plans to ensure all employees reach their full potential and deliver the highest standard of departmental, cross-departmental, and cross-Company teamwork and customer service.

Professional Experience
• George Hills, Vice President of Claims
• York Risk Services Group, Managing Vice President Client Services • York Risk Services Group, Vice President of Information Services & Chief Business Systems Officer
• Bragg & Associates, Vice President – Information Services Education
• University of Utah - BA
Shari Huff
AIC-M
Assistant Vice President of Claims Administration
[email protected]
George Hills Job Description
Serves as the primary account liaison to George Hills’ clients. Motivates, coaches, and assesses George Hills’ staff to successfully execute client goals. Ensures quality claims handling.

Summary of Professional Experience
• Carl Warren & Company, Litigation Manager/Claim Manager • Halo Claim Solutions, VP of Claims
• Permanent General Insurance, Claim Manager
Education
• University of Santa Barbara
• Associate in Claims – Management (AIC-M)
• Insurance Adjuster Licenses in CA, TX, NM, WA
ATTACHMENT A44 288
Kathleen Proctor

WCCA, CFE
Client Services Manager
[email protected]
George Hills Job Description
The Client Services manager ensures that existing customers are retained, satisfied, and their needs are fulfilled. Builds relationships with customers and uses independent judgement and discretion to facilitate the resolution of problems, issues, and concerns. Understands the balance, interrelation, and nuances between operations, sales, and customer service. Works as a liaison between customers and George Hills to support the Company’s business operations.

Summary of Professional Experience
• Heringer Estates Winery, Sales Director
• George Hills, Quality Assurance Operations Manager
• City of Stockton, Risk Manager
Education
• California State University, Sacramento – Bachelor of Science, Criminal Justice • Insurance Educational Association – Workers’ Compensation Claims Administrator (WCCA) • Association of Certified Fraud Specialists – Certified Fraud Examiner (CFE) Kelley Winters
Senior Claims Adjuster
[email protected]
George Hills Job Description - Classification
The Senior Claims Adjuster handles multi-line claims, including adjusting minor to complex property and liability claims for clients including municipalities, schools (public and charter), and private companies. Investigates, negotiates, and settles a variety of claim types, including general liability bodily injury and property damage, auto liability bodily injury and property damage, first party property claims, due process claims, and subrogation claims. Maintains timely contact with clients, including reporting on claim files to clients and various excess carriers. Manages litigated files, monitors and directs defense counsel on litigation, and attends settlement conferences and mediations.

Summary of Professional Experience
• George Hills, Senior Claims Adjuster
• York Risk Services Group, Adjuster Property & Casualty Claims III • Esurance, Casualty Adjuster
• USAA, Casualty Claims Adjuster
• USAA, Senior Claims Representative
• USAA, Claims Representative
Education
• University of Santa Barbara
• Associate in Claims – Management (AIC-M)
• Insurance Adjuster Licenses in CA, TX, NM, WA
ATTACHMENT A45 289
Nick Chavez
FCLS
Senior Claims Adjuster
[email protected]
George Hills Job Description - Classification
Handles multi-line claims, including investigating and adjusting minor to complex property and liability claims for clients including municipalities, schools (public and charter), and private companies. Investigates, negotiates, and settles a variety of claim types, including general liability bodily injury and property damage, auto liability bodily injury and property damage, first-party property claims, due process claims, and subrogation claims. Maintains timely contact with clients, including reporting on claim files to clients and excess carriers. Manages litigated files, monitors and directs defense counsel on litigation, and attends settlement conferences and mediations.

Summary of Professional Experience
• George Hills Company, Senior Claims Adjuster
• CSE Insurance, Senior Property Examiner
• Mercury Insurance, Property Claims Specialist Field II • Pacific Specialty Insurance, Property Field Adjuster – Large Loss • California Claims, Independent General Adjuster
Education
• California State University, Stanislaus – BA
• American Educational Institute – Fraud Claim Law Specialist (FCLS) Nick Dotzler
Field Representative
[email protected]
George Hills Job Description
The field representative investigates claims on-site and assists claims staff with investigations.

Professional Experience
• George Hills, Field Representative
Education
• CA POST Certificate
• San Jose State University – Bachelor of Science, Pre-Law Justice Studies ATTACHMENT A46 290

2. REFERENCES
Client Contact Services Provided Dates
Public Risk
Innovation,
Solutions, and
Management
(PRISM)
Heather Fregeau
PRISM Chief Claims Officer
(916) 850-7329
[email protected]
TPA Services for
General Liability
and Medical
Malpractice Claims
1988 -
Present
City of Sacramento Patrick Flaherty
Risk Manager
(916) 808-8587
[email protected]
Subrogation
Recovery Services
2022 -
Present
County of San
Joaquin
Tanya Moreno
County Safety & Risk Manager
(209) 468-3274
[email protected]
TPA Services for
General Liability
and Medical
Malpractice Claims
2020 -
Present

3. FINANCIAL CAPACITY
George Hills Financials demonstrates a good record of performance and has sufficient financial resources to ensure we can satisfactorily provide the services required. George Hills is not involved in Bankruptcy, reorganization, liquidation, or dissolution.

Please see Attachment E of our Proposal Attachments for Certification of Financial Condition on page

44. ATTACHMENT A47 291

5.2 METHOD OF

APPROACH
ATTACHMENT A48 292

5.2 METHOD OF APPROACH

1. SCOPE OF WORK STATEMENT
George Hills understands the requirements of the Scope of Work.

2. SCOPE OF WORK
The selected TPA (proponent) awarded the contract shall operate under the general direction of the City’s Risk Manager and consult with other City Staff in developing effective procedures and practices to successfully administer the City’s third-party property and liability claims along with administering the City’s first party property subrogation and restitution services to recover costs from third parties.

The TPA shall perform all services and related work necessary for program administration, claims administration, subrogation, claims investigations, reporting to the City’s risk pool, Medicare reporting, reserving, settlements, litigated files management, and all other related documentation.

TPA services shall include the City’s major programs, but are not limited to: general ,automobile, and property liability claims administration, investigations, research, analysis, recording, reporting, subrogation, litigation management, liability trust account management and reconciliation, and related support services. The City will retain management of litigated claims but may call upon the TPA to assist in these areas on a case-by-case basis; a dedicated claims examiner is preferred.

George Hills acknowledges and agrees to comply with the terms stated above.

I. Program Administration

1. George Hills will consult with the City and provide professional and technical staff to assist in developing the necessary procedures and practices to implement and administer the City's selfinsured program, including administering all open and closed indemnity, subrogation, and restitution claims.

2. George Hills will convert the data from the data system of the present administrator to George Hills‘ data system as the City wishes to maintain and integrate all claims into its current statistical base. The Conversion fee is intended to cover costs associated with data conversion, transition, and contract closeout. The data conversion fee is dependent on many factors which will need to be discussed. If George Hills is retained for five (5) years, we will entirely absorb the conversion fee. If George Hills is not retained for the full length of the proposed contract, then the client shall be subject to a fee of 20 percent each year not retained, not including shipping, storing, scanning, copying, or otherwise handling open or closed paper claim files (this shall be a separate charge based on the Scope of Work). George Hills will charge for any agreed services related to conversion storage, copying, scanning, shipping, and disposal.

3. George Hills will follow the Records Retention Policy established and approved by the City. All files, records, transcripts including loss run data base files and other materials related to the management and administration of City's General Liability Program are the exclusive property of ATTACHMENT A49 293
the City of Stockton and will be relinquished in good order and condition upon termination of the Agreement with George Hills. George Hills shall make files available for review by the City anytime during regular business hours. George Hills shall provide copies of file correspondence and documentation as requested by the City.

4. George Hills will maintain a master file of claims administration policies, practices and guidelines, and any other material needed to properly administer claims in accordance with applicable state law and City instructions.

5. George Hills will provide City's General Liability Analyst and City Attorney’s Office with user connections (and software if applicable) on City's existing personal computer, to allow database inquiry access and e-mail capability to George Hills' claim processing system. System will allow diary to be set by City’s Analyst to follow up on pending issues as needed.

6. George Hills will conduct or assist in onsite or offsite training as needed for City personnel involved directly or indirectly in the processing of general liability, subrogation or restitution cases. George Hills will inform the City of changes or proposed changes in statutes, rules, regulations, and case law affecting its general liability claims program.

7. George Hills will periodically update all form letters used in connection with claim processing. The City of Stockton reserves the right to approve and disapprove all forms and form letters.

8. George Hills will represent City in all matters related to the set-up, investigation, adjustment, processing, negotiation, and resolution of liability claims against City.

9. George Hills will provide accurate, appropriate claims handling in a timely manner, according to agreed upon performance standards and state requirements.

10. George Hills will provide the City with written information on changes or proposed changes in statutes, rules and regulations affecting the City's responsibility under a legally self-insured General Liability Program.

11. George Hills will inform the City of problem areas or trends, both potential and perceived, and provide recommendations and/or solutions to address problem areas or trends. Matters of significance will be called to the City's attention at the earliest appropriate time (i.e., disgruntled employees, system problems, large overpayments, large reserve changes, etc.).

12. George Hills will attend client meetings as requested by the City of Stockton. George Hills’ travel expenses in connection with client meetings or other matters relating to claims processing shall be paid by George Hills.

13. George Hills will attend appointments, including but not limited to meetings, conferences, court appearances, and scene investigations at the request of the City.

14. George Hills will install and/or utilize any necessary automated claims administration systems.

George Hills shall have ability to integrate with external/third party system, including imports of claims financial data, transaction details, and adjusters’ notes from George Hills and carriers, as well as exports of financial transaction data and imports to capture payment details from City’s ATTACHMENT A50 294
Enterprise Resource Planning System (ERP) and/or Accounts Payable systems (e.g., Central Square HTE, Tyler, Klear.ai, etc.), among other data feeds.

15. George Hills will transfer records and systems to the succeeding Administrator at the termination of the contract with no additional cost or fee required.

16. George Hills administrative fees will cover the cost of George Hills’ staff; all office space; storage space for closed files; supplies; forms/posters/pamphlets; standard management reports; telephone expenses; postage; checks (if utilizing TPA’s own checking account); computer hardware/software; transcription services; and other equipment/supplies necessary for claims handling.

II. Claims Administration

1. George Hills will only utilize outside expert services or subcontractors with prior approval from the City. City reserves the right to approve, disapprove, or select all service providers and vendors selected by George Hills.

2. George Hills will ensure every file contains a Plan of Action, quarterly litigation budgets and the steps to accomplish it. The Plan of Action will be updated during each diary review. Files will be clearly documented, with claim notes reflecting ongoing file activity. All conversations and issues will be documented.

3. George Hills will provide professional and courteous responses to receipt of telephone calls, written or in person inquiries, complaints and questions from all sources within 48 hours of receipt. Such inquiries may include claim payment or benefit related questions from parties with authorized access to information, such as claimants, vendors, providers, legal counsel, the City of Stockton, etc.

4. George Hills will ensure all claims management adhere to the requirements of the California Government Code for accepting, denying, and rejecting claims.

5. At the direction of the City, George Hills will contact claimants or their attorneys within five (5) business days of receipt of a claim and maintain appropriate contact with them until the claim is closed.

6. George Hills will review the status of claims and assist as directed with setting adequate reserves on all active cases at least every ninety (90) calendar days.

7. George Hills will review all claims for liability and provide first investigative report within thirty (30) calendar days of receipt of claim to City’s Risk Services Division.

8. George Hills will provide narrative reports when recommending rejection or settlement of a claim, when going to trial, or other significant events occur. Reports will be clear and concise.

9. George Hills will negotiate settlements within authority limits provided by City. Funding for the payment of any settlement is specifically excluded from this agreement.

ATTACHMENT A51 295

10. George Hills will report claims in compliance with Medicare, Medicaid, and SCHIP Extension Act (MMSEA) Section 111. George Hills will notify the City when reports for the MMSEA Section 111 require signature.

11. George Hills will process payments within authority levels provided by City within fourteen (14) business days.

12. George Hills will file all supporting documentation for payments made in the appropriate claim file.

13. George Hills will provide monthly reports for the following open and closed liability claims; general liability, date excess sent, open litigated, and injury year detail by department.

14. George Hills will provide weekly reports for open and closed liability claims.

15. George Hills will provide weekly reserve change report.

16. Checking: George Hills will follow the banking requirements of the City, such as establishing, maintaining, and reconciling an interest-bearing checking account with appropriate deposit and transfer procedures for the payment of claims; or if utilizing a City of Stockton checking account, provide monthly records of financial transactions to coordinate with City's computer or ERP system, or make other claims payment arrangements which are acceptable to the City. George Hills’ claims administrator will maintain check registers and provide a monthly check register to the City, along with a copy of all checks and vouchers.

17. Reserve Adequacy and Accuracy: George Hills will maintain reserves for each file to reflect the probable future liability of a claim as required by Title 8, California Code of Regulation, Section 15300. Reserve calculations will be accurate and adjusted as facts change. Detailed reserve worksheet calculations to be retained in claim file.

18. George Hills will provide any required federal or state financial or tax reports. George Hills will provide appropriate information, documentation and cooperation to the State of California or City of Stockton Auditor upon request.

19. George Hills will reconcile all claim file payments twice per year, and upon settlement and file closure. Proof of resolution will remain in claim file.

20. Overpayments/Errors: Any overpayments/incorrect payments will be reported to the City immediately, along with diligent efforts to collect all overpayment and resolve any other incorrect payments.

21. Diary dates shall be established to allow for timely completion of required activity and no less frequently than every sixty (60) calendar days. George Hills shall monitor the timely completion of diary notes.

22. All correspondence shall be addressed within 48 hours of receipt unless an immediate response is required.

ATTACHMENT A52 296

23. Written responses to requests that cannot be emailed shall be mailed within ten (10) business days of receipt, unless an immediate response is required.

24. George Hills will identify and notify co-defendants within thirty (30) calendar days of identification.

25. George Hills will have translators available to assist with non-English speaking claimants.

III. Subrogation

1. George Hills will place the tortfeasor on notice of the City’s subrogation rights; and

2. George Hills will work with the Risk Services division to draft legal documents to recover monies spent on claims.

3. George Hills will aggressively investigate fraud and pursue restitution in all fraud cases. The City shall be notified of all claims involving potential fraud and initiation of fraud investigation activities.

4. George Hills will provide subrogation services to recover costs from third parties (responsible persons, agencies, insurers, and/or their agents) responsible for employees, volunteers, inmates, etc., injuries, up to the point necessitating legal counsel. George Hills will give prompt notice to Risk Services for each case indicating a potential for subrogation.

5. Subrogation efforts on injuries in which there is also property loss to the City shall be coordinated by George Hills. Subrogation notices and action against another party require advance authorization from the City. If subrogation action develops problems or unreasonable delays, the matter is to be referred to and reviewed by Risk Services for referral to City designated Counsel for legal action.

6. If the third party needs to be sent to collections, approval must be obtained from Risk Services.

7. George Hills will provide monthly and weekly open and closed reports on amounts recovered for subrogation and restitution.

8. George Hills will provide weekly subrogation reserve change report.

9. George Hills will pursue small claims actions. Litigation in civil court beyond small claims court requires specific authority from the City (this may be City Counsel, Risk Manager, etc.). Settlement authority for less than full amount claimed by George Hills requires City’s Analyst or Risk Manager’s prior approval.

IV. Claims Investigation

1. Within ten (10) business days of receipt of claim, unless otherwise requested by City Risk Manager, George Hills will take statement of facts from claimants when not represented by an attorney.

Statements will be preserved by recording or taking hand-written signed statements.

2. George Hills will investigate claims where the initial review indicates that it is warranted. Further investigation may include, but is not limited to, on-sight investigation, photographs, interviewing witnesses and taking signed or recorded statements, verification of damage or loss, taking ATTACHMENT A53 297
measurements, obtaining maps/diagrams from the City or other sources, obtaining medical releases, police reports, or other records as required.

3. George Hills will complete initial investigation answering questions such as who, what, where, when and why. Investigations shall be completed within forty-five (45) days of the Member’s knowledge of claim, including statements from participants and witnesses, appropriate official reports, investigative reports, site inspections, relevant documents and photos/videos.

4. George Hills will identify liability issues, including immunities, comparative negligence, joint tortfeasors and joint and several liability.

5. George Hills will initiate the development of information on damages including, but not limited to:
a. Property damage
b. Nature and extent of injuries
c. Medical costs (billed and paid)
d. Lost wages (past and future)
e. Other economic damages
f. Non-economic damages

6. George Hills will obtain and review relevant contracts and insurance documents, to determine whether there is any sharing or complete transfer of the risk. a. Hold-harmless and/or indemnity agreements
b. Additional insured requirements

7. George Hills will ensure proper preservation of evidence.

8. George Hills will evaluate the need to utilize experts. a. All bodily injury claims shall be initially reported to the Index Bureau and re-indexed on an as needed basis thereafter. (PRISM maintains a membership with the Index Bureau that members can access).

9. George Hills will secure estimates or appraisals for damaged property.

10. All notices (pertaining to claim insufficiency, returning late claims, claims rejections, etc.) shall be done in accordance with the relevant Governmental Code provisions.

V. PRISM Reporting Requirements

1. First Report
George Hills shall give PRISM immediate written notice for any claims or suits which George Hills becomes aware of that include injury of the following types:
• Death
• Paralysis, paraplegia, quadriplegia
• Loss of eye(s), or limbs
• Spinal cord or brain injury
• Dismemberment or amputation
• Sensory organ or nerve injury or neurological deficit • Serious burns
ATTACHMENT A54 298
• Severe scarring
• Sexual assault or battery including but not limited to rape, molestation or sexual abuse • Substantial disability or disfigurement
• Any class action
• Any claim or suit in which PRISM is named as a defendant; or • Any injury caused by lead.

Additionally, George Hills will report to PRISM any occurrence, offense, or wrongful act in which the amount incurred has reached $500,000.

Utilize the current First Report Potential Excess Liability Claims form, available through PRISM’s website, and transmit to PRISM by email to [email protected].

2. Status Reports: After the First Report to PRISM, status reports shall be provided by George Hills at a minimum of every ninety (90) days (more frequently if warranted). Status reports shall focus on changes in liability analysis, damages, and reserves.

4. Closure Reports: When a claim or suit that has been reported to PRISM is settled, dismissed or closed in any other fashion, PRISM shall be provided with the closing documents and an accounting of the final paid amounts on the exposure for indemnity, litigation, and expense within 90 days from the day the final defense bill is paid.

VI. Medicare Reporting

1. Through George Hills, proper verification of a claimant’s status as to Medicare eligibility shall be completed and documented in every file involving a bodily injury. In those cases where the claimant does meet the eligibility requirements, mandatory reporting to the Center for Medicare and Medicaid Services (CMS) must be completed directly or through a reporting agent in compliance with State Children’s Health Insurance Program (SCHIP) Section 111 of the Medicare Medicaid and SCHIP Extension Act of 2007.

VII. Reserving
Through George Hills, each claim will be reviewed and evaluated according to the merits of the claim and based upon the most current and reliable information received, starting with the initial report of claim and continuing through final resolution. Delays result in understated reserves and, possibly, missed opportunities to settle.

ATTACHMENT A55 299

1. Through George Hills, an accurate and appropriate initial indemnity reserve shall be established on all reportable claims based on facts known, upon completion of the initial investigative report or when suit is filed, whichever occurs first. In addition, separate legal and adjusting reserves shall be established. Indemnity reserves shall reflect the most probable outcome plus exposure to plaintiff attorney’s fees and costs.

Percentage of liability is determined by various factors that are discovered during an investigation.

Reserves shall be adjusted accordingly, as facts are developed, to properly reflect the exposure. These factors include but are not limited to:
a. Facts of loss
b. Applicable laws
c. Defense Counsel evaluations
d. Jury Verdict evaluation
e. The extent of plaintiff's liability (comparative negligence) f. The number of co-defendants and their percentage of liability g. The ability of the co-defendants to respond financially to any settlement or verdict. h. On cases occurring after June 3, 1986, Proposition 51 allows defendants to limit their liability on non-economic damages to their percentage of fault. i. On cases involving uninsured motorist claimants the recovery is limited to economic damages in accordance with California Code of Civil Procedures sections 3333.3 and 3333.4 (Prop 213).
j. Any other mitigating factors

3. Reserves shall be evaluated for adequacy at least every ninety (90) days. All reserve changes shall be documented in a paper or electronic file providing explanation of the reason for the reserve change ATTACHMENT A56 300
or notation that the current reserve is adequate and why. PRISM shall be notified of all reserve changes within thirty (30) days of the change being made.

VIII. Documentation

1. Each file shall contain information necessary to document the decisions made, including all demands, offers of settlement and settlement authority.

For those cases in which the (1) Bodily Injury claims reserved above twenty- five (25) percent of the S.I.R., (2) Property Damage claims reserved above twenty-five (25) percent of the S.I.R., and (3) All claims that meet PRISM’s excess reporting requirements regardless of reserves, the following information shall be contained in each file:
a. Claimant(s) Information
b. Date of Loss
c. Claim Number
d. Facts of accident or occurrence
e. Witness/Participant Statement
f. Reserve rationale
g. Assessment of liability
h. Damages/injuries, including medical costs, lost wages, dependency, property damage estimates, total loss evaluations, loss of use claims, and other damages i. Index Bureau reporting
j. Coverage questions
k. Excess potential
l. Structured Settlement possibilities (where applicable) m. Alternative Dispute Resolution
n. Subrogation potential (where applicable)
o. Governmental Code compliance and immunities
p. Future course of action
q. Next diary date
r. If litigated, identify counsel on both sides
s. Offsets or liens that may need to be considered
t. Medicare eligibility and reporting
u. Risk and insurance transfer
IX. Case Settlement Factors

1. Settlement evaluation and authority by the Member shall be documented by George Hills. On cases exceeding the S.I.R., prior written settlement authority must be obtained from PRISM.

2. George Hills will ensure PRISM’s endorsement outlining the requirement for settlement within the City’s SIR is followed.

3. The settlement shall be reasonable in light of damages, injuries, liability, and any obligations to Medicare.

4. Settlements shall be effected in a timely manner, with consideration given to structures, statutory offers (Rule 68 or 998) where applicable, and/or alternative dispute resolution.

ATTACHMENT A57 301

5. When settlements reach PRISM’s layer, George Hills’ examiner will make sure authority will be obtained prior to the settlement, working directly with the City and PRISM obtaining written authority from the City and PRISM.

6. Contributions from joint tortfeasors shall be considered.

7. Proper releases and dismissals shall be secured and copies provided to PRISM by George Hills.

X. Litigated Files
The City of Stockton’s City Attorney (CA) shall retain the litigation management function.

George Hills shall assist in the implementation and conform to the procedures pursuant to the Litigation Management Program. The duties of George Hills shall include, but not be limited to:

1. Within 45 days following assignment, ensure defense counsel has submitted a preliminary evaluation of the lawsuit including a litigation plan and budget.

2. Ensure defense counsel submits status reports every 90 days to include new developments only.

Routine submission of repetitive, non-substantive status reports is not acceptable.

4. Ensure all defense expenses, including but not limited to, depositions, motions, and discovery have been approved by the City Attorney.

6. Attend mediation, arbitration, settlement conferences on behalf of the City when necessary.

7. Evaluate defense counsel with respect to each defense assignment.

8. Ensure all attorney fees are billed at the agreed hourly rate. All bills shall state with particularity the legal work performed, the hours expended to perform the work and the costs incurred.

9. Audit all bills to make certain the billing practices are in conformance with the City’s litigation guidelines
ATTACHMENT A58 302
XI. Claims Management Information System (CMIS)

1. George Hills will convert all open and closed claims data and enter new claims data into George Hills’ CMIS.

2. George Hills will record all claims in a CMIS. Claims records will contain all pertinent claim information, including but not limited to claim number, date of loss, date of claim, claimant name and address, location of loss, description of incident, loss reserves, loss payments, and expense reserves.

3. George Hills will create a review system to ensure accurate data will be entered into the CMIS. All claims must be reviewed on a periodic basis, as determined by the City. The review system will include a check on all the financial documentation entered into the CMIS to ensure the financial integrity of the system. In addition, the review system will include appropriate claims handling and reserving procedures, and timely file closures.

4. George Hills shall use electronic notes in the CMIS to record activity which shall be updated with new developments. All significant documents (e.g., email communications, status updates from counsel, etc.) will be scanned/saved into the database by George Hills.

5. George Hills shall provide CMIS training, support, and access for up to three (3) City Risk Services staff so that they may search for claim information and data, as required.

6. George Hills will provide specified standard loss reports as agreed upon.

7. George Hills will provide special reports as needed by the City.

8. George Hills will provide data transfer services to the City’s Risk Information Management System (RMIS).

3. BEST PRACTICES

CLAIMS ADMINISTRATION
George Hills has developed best practices in claims management, and we believe our process and specific alignment with your needs and expectations collectively results in a reduction of claims expenses.

ATTACHMENT A59 303
Best Practices Claims Approach
George Hills’ Best Practices General Liability Claims Handling Manual and Best Practices General Liability Litigation Manual are followed by all George Hills claims processors, adjusters, and supervisors in addition to the specific rules, regulations, and requirements of each individual client.

These manuals support the scope of work, procedures, processes, and requests of the City. Our stated mission is always “to provide the highest level of quality, customer-focused claims service”. We accomplish this by assigning teams of experienced individuals who have managed similar accounts for many years.

Our best practice approach to claims management centers around early communication and transparency of information. Early communication with claimants leads to faster claim resolution, and the transparency of information provided to the City gives insight to the claims process from inception to close.

Best Practices Quality Control
Our processes, procedures, and methodologies center around adjuster accuracy and customer satisfaction. Quality control comes at the technological (automated) level, and at the human (adjuster/supervisor) level by George Hills’ Supervisors and Client Services Managers.

Communication
Phone calls and emails will be returned within 24 hours. All other written communication will be responded to within three (3) business days.

Contact
• 24-hour emergency contact will be made within one (1) hour of assignment or phone call. • Initial contact will be made with the insured/client, claimant, and witness within one (1) business day of receipt of their information. If no contact is made with the claimant, two (2) subsequent contact attempts via telephone will be made within the first 48 hours after receipt of the claim. If we do not have contact information for the claimant, or have incorrect information, extra attempts will be made to secure correct contact information, such as a Google or online ‘white pages’ search. If the City’s protocols are such that a claimant is not to be contacted, this will be documented in the adjuster’s file notes. • An acknowledgement letter or email will be sent to all pertinent parties containing the adjuster’s contact information and claim number, unless instructed otherwise.

Adjuster Initial Review and Contacts
Upon notification of a new assignment, the adjuster will:
• Review the information in CMIS for accuracy
• Review all attached documents and notes in the file
• Review the tort claim for timeliness and sufficiency and take appropriate action, including recommendations for sending tort claims notices
• Set initial reserves
ATTACHMENT A60 304
• Make initial contact with the insured/client, claimant, and witness(es) within one (1) business day of receipt of their information. If no contact is made with the claimant, two (2) subsequent contact attempts via telephone will be made within the first 48 hours after receipt of the claim.

Investigation
An investigation plan is developed for each claim to assess the liability and damages exposure efficiently and effectively. Applying their experience and expertise, the adjuster tailors the scope of investigation to the nature and exposure of the claim. The investigation may include:
• Gathering all internal documents from the City, including reports, maintenance logs, photos, contracts, easements, certificates of insurance, etc.
• Conducting a scene inspection with photos and diagrams as warranted • Interviewing City staff
• Obtaining official reports
• Interviewing and obtaining statements from the claimant and witnesses • Obtaining damage estimates, invoices, and/or damage appraisals • Obtaining all pertinent medical records
George Hills will identify and engage an interpreter/translator that is acceptable to the City. When possible, we will utilize one of our bilingual employees to assist with translation. Where warranted, we will seek authority from the City to engage experts.

Risk Transfer and Indemnity Rights
During our investigation, we actively seek to identify all risk transfer and indemnity/defense rights owed to the City through contracts, agreements, additional insured statuses, easements, etc. With the City’s approval, we promptly and vigorously pursue tender/cross-complaints on behalf of the City against all potentially responsible parties and/or their insurance carriers.

Reserving of Claims
The establishment of reserves is one of the most important tasks we perform for our clients – it impacts critical areas, such as funding levels and budgets. George Hills’ philosophy is to set reserves on a “most probable outcome” basis. Our best practice is to establish separate reserves for indemnity and expense; however, we will reserve according to the City’s policy. Adjusters are required to set initial file reserves for indemnity and expenses (legal and adjusting) within five (5) days of assignment.

Adjusters review claim reserves each time they interact with a file, and specifically on each diary date.

Reserves take into consideration liability as to the City and comparative fault of the claimant/plaintiff, type of injury, damages, prognosis, expenses (e.g., medical and wage), and any anticipated general damages. Litigated files include separate reserves for legal expenses based on a current litigation plan and budget.

Updating Clients on Major Reserve Changes
The City will receive monthly reports which include reserves and/or reserve changes. ClaimsXpress will send push notifications when the reserve change meets the threshold that George Hills and City have established. Our best practices dictate that all reserve changes be entered as soon as the adjuster becomes aware of the need for a change.

ATTACHMENT A61 305
Supervisory Approval of Reserve Changes
Supervisors must approve all reserves set by an adjuster. The decision-making authority on revising the reserve is initially set at the level where the work is being done. However, large increases in reserves will be reported immediately to the supervisor and/or the City as required.

Notification and Updating of Excess Insurers
It is the responsibility of the adjuster to promptly report (within 30 days of receiving notice of a reportable claim) any case meeting the reporting requirements of the excess carrier, or as instructed by the City. The adjuster will also provide status reports to the excess carrier/pool (including reports from defense counsel) at the required intervals.

George Hills will notify the City’s excess carrier(s) in any number of situations according to the requirements of the excess policy carrier’s stipulations. First, the excess carrier is notified no later than 30 days after receipt of a reportable claim. Second, notification is sent when reserves are set on any reportable claim or suit involving multiple claims or suits arising out of one occurrence, or any claims or reserves amounting to 50 percent or more of the retained limit. Third, excess carriers are notified regarding Title 42 USC 1983 cases in which a complaint has been served and the plaintiff is represented by legal counsel or with reserves of 25 percent or more of the retained limit.

Lastly, regardless of the reserve, notification is sent on any claim involving the following:
• One or more fatalities
• Loss of a limb
• Loss of use of any sensory organ
• Quadriplegia or Paraplegia
• Third degree burns involving 10 percent or more of the body • Serious facial disfigurement
• Paralysis
• Closed Head injuries
Timeline of the Claims Handling Process
The following takes place from receipt of a new claim:

Within 24 Hours
• Index new correspondence and new claims for damages to determine if they belong to an existing claim
• Claims data entered into ClaimsXpress, our CMIS
• Acknowledgement of new assignment sent to the City
• Claimant/Claimant’s attorney is called, emailed, or both to acknowledge and provide claim and adjuster information
Within 2 Days
• Two-point contact made with claimant (or their attorney) and the City ATTACHMENT A62 306
Within 5 Days
• Reserves Set
Within 30 Days
• Claim tendered (if appropriate)
• Liability determination
• Excess carriers notified
Monthly
• Monitor closing ratios
• Statistical report (all claims activity) provided to the City • Payment register provided to the City
• Plan of Action (POA) updated
• Watch list claims meetings
• Case reviews (90 days if waiting for activity by others, 180 days if waiting on expiration of a statute of limitations)
Cost Saving Methods
Through our efficient and thorough investigation, there is a two-point contact within one (1) business day of receipt of each claim. We ensure the liability investigation is completed early, and many claims are not pursued when they are denied or rejected early in the process. In these instances:
• Attorneys Will Likely Pass On The Case: Attorneys are less likely to take a case that has already been denied.
• Establishing Defense Early: By not establishing your defense position early, a claimant is often more likely to think they will receive a settlement. • Securing Witness And Claimant Statements Early: This action is essential, lest they forget critical details or revise the facts to help their position. • Indexing Claimants Pursuing Injury Claims: We verify if they have made similar claims in the past, and/or have prior injuries that are unrelated to our matter. • Secure Complete Medical Records: If there is liability and injuries are claimed, we secure complete medical records to check for pre-existing conditions.

We explore all tender possibilities based on the claimants’ allegations, because allegations trigger coverage regardless of liability. First party subrogation recovery services (see page 36) returns 100% of funds to our clients.

Litigation Management
Through our extensive experience managing claims for hundreds of different public agencies, George Hills has developed the expertise to adapt our litigation management services to fit a wide range of litigation management program structures. This ranges from full litigation management responsibility, including retention and direction of defense counsel and management of defense costs, to basic litigation support for the City’s in-house defense team.

ATTACHMENT A63 307
George Hills’ philosophy and guidelines for providing litigation management services are focused on achieving the best result for our client while aggressively managing costs. This is driven by our litigation best practices, which include:
• Securing the litigation budget within 45 days of assignment to defense counsel. Our adjusters review defense counsel bills in detail to ensure they are reasonable and in line with the litigation budget.
• Training our adjusters to perform a risk weighted analysis early in litigation to establish a target settlement number before incurring extensive defense costs, pursuant to the City’s risk protocols.
• Utilizing adjusters to complete tasks when possible, in lieu of an attorney. • Using statutory settlement offers, such as 998s, when appropriate to possibly recover costs if a favorable verdict is received.

When a claim becomes litigated, George Hills’ claims adjusters do not simply assign a file to defense counsel and vanish but operate as true litigation managers. We believe it is the responsibility of our claims adjusters to work closely with defense counsel until the case is resolved and the claim file is closed. A good early investigation, coupled with an experienced litigation manager, helps bring the case to an earlier resolution. We strategize early and often with the client and defense counsel and monitor the case to ensure counsel stays on track.

Our full litigation management services include the following:
• Within five (5) days of the assignment by the City, contact will be made by the lead claims adjuster and with any assigned defense counsel. An appropriate plan of action will be discussed, and initial case analysis will be reviewed to determine what course of discovery and motion/defense strategy to implement.
• Within 60 days following the assignment of a case, defense counsel will complete and return a complete case analysis to the City, the George Hills adjuster, and the claims supervisor. The case analysis will include a comprehensive evaluation of the case and formalize the defense strategy crafted by the team.
• In addition to the initial case analysis, counsel will provide an accurate estimate of defense costs for all litigated cases as set forth in the exhibits. Defense counsel is expected to stay within the estimated case budget throughout the litigation and to report on fees expended in relation to the budget as requested.
• After the initial case analysis, defense counsel will provide mandatory written status reports at 60-day intervals, setting forth all substantive developments. The defense attorney handling the claim will prepare the status reports. Defense counsel will report only on new developments since the last report, as it is not necessary to repeat case facts or information previously reported. Status reports will be as objective and straightforward as possible to allow the George Hills adjuster and claims supervisor to meaningfully analyze the case and determine the course of action to be taken.
• George Hills monitors defense counsel to ensure that counsel stays true to the plan of action and within the defense budget. This includes monitoring defense counsel procedures, mandating regular reporting by defense counsel, and reviewing legal bills for appropriateness ATTACHMENT A64 308
as directed by the American Bar Association standards or by the City’s instructions to ensure the claim is resolved in the most cost-efficient manner. • George Hills has developed specific guidelines that include creating and monitoring a watch list of any claims that, because of allocated expenses, expense reserves, case reserves, or a combination thereof, may present a threat to pooled funds or have already reached pooled funds. Though the City may wish to assign claims to their watch list for the Litigation Manager, George Hills’ watch list typically starts at the primary level. If chosen to provide third-party administration services, George Hills will continue to follow these guidelines to create a watch list of claims that have the potential to exceed the City’s SIRs and monitor those claims until the case resolves.

Reporting New Claims
Depending on the nature and urgency of an incident, new claims can be reported to George Hills in several ways:
• Routine, non-urgent tort claims can be sent via email through our dedicated intake portal, which is monitored by our claims support team to ensure timely setup in the claims system within one (1) business day.
• More urgent matters can be reported directly by phone through your designated adjuster, supervisor, or claims processor.
• After-Hours Critical Incident Response: The City will be provided with the after-hours contact information for your primary designated adjusters, who can usually respond to the scene of a critical incident within one (1) hour of contact.

File Setup
Within one (1) business day of receiving notification of a new claim – usually the same day – the claims processor will take the following steps:

1. Enter the data into CMIS, including assignment of the adjuster.

2. Attach any paperwork received with the claim to the CMIS.

3. Notify the assigned adjuster of the newly assigned claim. a. These actions trigger the CMIS to set an automatic diary for the adjuster and their supervisor.

4. Send an acknowledgement of new assignment to the City, including claim number and assigned adjuster information.

5. Make initial phone contact with the claimant or their attorney, if so instructed, with the claim number and contact information for the adjuster, including a follow-up acknowledgement letter.

Electronic File Management
Claims Progress Notes – All file activity is documented in the Notepad of the electronic claim file as it occurs. Dropdown boxes for notepad types allow the adjuster to be specific as to the type of activity (i.e., phone call, correspondence received or sent, claim filed). The subject line allows for further specific yet brief information for an at-a-glance review in CMIS. Notepads are important to document ATTACHMENT A65 309
phone conversations or receipt of materials; they serve as a chronological outline of what activity has taken place.

Claim Documents – All claim documents are attached to the electronic claims files as they are obtained. This includes text/PDF, spreadsheets, photos, audio and video files, in all electronic media formats. Each document is annotated with a description and a corresponding Notepad entry.

Diaries – Upon setup in CMIS, a file review diary is automatically set for the adjuster. Our best practices ensure that each assigned case is reviewed at least one every 30 days for active files, 90 days for extended diaries awaiting activity by others, and up to 180 days on files in which the adjuster is awaiting the expiration of the statute of limitations. All diaries are maintained through CMIS. All activity during the diary review is documented in the Notepad. No claim is re-diaried without specific indication why no further action was taken.

George Hills’ claim supervisor will maintain separate diaries and other audit controls necessary to review and ensure timeliness in handling, as well as ensuring other claims standards and reporting requirements are being met.

Plan of Action (POA) – The Plan of Action (POA) is a special Notepad document that provides the current summary of the claim, including current financials (payments and reserves), investigation findings, assessment of the exposure, status of litigation (if applicable), and the plan for moving the claim to resolution. The POA is reviewed and regularly updated at each diary review, or whenever there are material changes in the claim. The POA has proven to be an effective tool for managing the file and a valuable resource for our clients, auditors, and when conducting file reviews. The City will have online access to the POA entries in the claim summary view. A sample POA can be found on page

55. ClaimsXpress Claims
George Hills has used ClaimsXpress as our Claims Management Information System (CMIS) for 9 years.

ClaimsXpress (CXP) is a secure cloud browser-based software system that allows our claims adjusters to work anywhere, from the scene of an incident to our corporate office. Similarly, the system being browser-based allows the City 24-hour, read-only real-time access of its claims information. George Hills owns perpetual licenses to CXP and we contract with Spear Claims to provide the Microsoft Azurebased secure cloud, in which our clients’ data is housed.

Searching within CXP for specific claims data is simple, but to minimize the need to search, George Hills has developed dashlets within ClaimsXpress to allow the City and adjusters quick access to relevant claims information right on their homepage.

As part of the onboarding process, George Hills will hold a training session with all potential clientside ClaimsXpress users, ensuring that everyone has the desired level of access and understanding of the system.

ClaimsXpress is an entirely paperless system. All claim files are stored electronically in a secured Microsoft Azure cloud hosted by Spear Claims, available to any authorized user, using any browser, at any time.

ClaimsXpress is configured to enforce additional security measures when necessary. It can limit a user’s access to claim information by a client’s organization structure, for example allowing access to view claims for a single location or for the entire organization. CXP also includes identifiers for highly ATTACHMENT A66 310
sensitive or confidential claims. When a claim is flagged as confidential, ClaimsXpress will limit access to that claim by individual User ID.

The use of ClaimsXpress increases our firm’s service capabilities for the City and enhances our service workflow efficiencies and custom reporting capabilities. The alignment of these technologies with George Hills’ services is of great value to the City by providing real-time access to decision-making data, metrics, and trends. When it comes to read-only access, reporting, and modification abilities to meet the City’s needs, our technology offering is unmatched.

Client Portal
George Hills is thrilled to launch our self-service client portal. The City will have their own dedicated Portal for staff to access. We can tailor the Portal to directly complement the City’s preferred level of access. This new web-based platform provides our clients with exclusive access to the following features:
• Secure file sharing and document management
• Quick reporting and metrics on dashboard
Best Practice Claims Data and Information Management
George Hills’ ability to develop and maintain the City’s data metrics for decision-making as well as to provide accurate statistical reporting is due solely to our commitment to best practices in our Information Technology processes. Our Claims Management Information System (CMIS) provides George Hills and our clients with exceptional expert resources. We can rely on our system’s commitment to security to ensure your data is safe; to demonstrate this commitment, our team completes an annual disaster recovery exercise to safeguard against potential data loss.

Timely resolution of claims is another best practice we employ. Generally, the longer a file is open the costlier it is for our clients. Superfluous open reserves on a client’s book of business can negatively affect financial results. As such, one of the items reviewed by supervisors when they audit files is timeliness of closures. The supervisor will also review whether the adjuster is continuing to update the claim diary. Every time an adjuster interacts with a file, they should do everything necessary to move the file closer to resolution.

ATTACHMENT A67 311
1st Party Subrogation Recovery
George Hills provides subrogation recovery services to many of our clients. In 2013, George Hills created a dedicated Subrogation Recovery Unit to handle recovery opportunities for our clients who have requested or contracted with us for subrogation recovery services.

George Hills has a dedicated team with extensive experience in the public entity environment who handle all 1st party subrogation matters for our clients who choose this service. Below are testimonials from a few of George Hills’ subrogation clients:

PUBLIC ENTITY TESTIMONIAL STATEMENT
Client of
Sacramento
Risk & Loss Control
“We have utilized the George Hills Subrogation unit for several years, and simply put - they get results. They have a wealth of knowledge and expertise. Our 1st and 3rd party claims are always handled promptly and professionally. Partnering with George Hills for subrogation has proven to be a wise decision for our Client.” City of Sacramento
Risk Management
“We are pleased to be partnering with George Hills for our subrogation recovery services. They provide quality staff and services.”
City of Oakley
Kevin Rohani, Public
Works Director/City
Engineer
“The City of Oakley has utilized the services of George Hills Subrogation Team for several years, and we have been very happy with this service and the professional approach that the George Hills Team brings towards the subrogation process. The knowledge and expertise of the George Hills Team has been invaluable for the City of Oakley, and we are very grateful for their great work in resolving our assortment of third-party claims and we are looking to many more years of successful collaboration with the George Hills Team.” City of Oakland
Human Resources
Management/Risk
Management Unit
“We have utilized the George Hills Subrogation unit for several years, and they get excellent results. They have a wealth of knowledge and expertise, and their professionalism and prompt attention to our needs is second to none. There’s no better service out there that can beat them, and the rates are below the typical rates offered by other vendors. Our third-party claims are always handled promptly and professionally. Our partnership has proven itself to be the best decision for our City.”
Quick Stats on George Hills’ Subrogation Recovery Results 2,272 - Average number of subrogation claims handled in 2024 91% - of claims handled result in a Recovery
83% - of claims result in a full recovery (including GH Fees) 84% - of amounts sought for our clients are recovered
Average recovery: $5,590.53/claim
George Hills’
subrogation recovery
unit has performed
spectacularly,
recovering several
million dollars on
behalf of our clients.

ATTACHMENT A68 312
Our standard subrogation fee is 30% of the amount collected, however George Hills has been successful more than 80% of the time collecting our fees, thus equating to recovery essentially free of charge. The minimum amount to be paid to George Hills will be $250 per claim.

Generally, no recovery shall be agreed to involving payment plans if the recovery is less than $5,000 and/or greater than a one-year term. Exceptions can be made on a case-by-case basis. If a recovery is agreed to above this amount, the subrogation fee shall be 45%. In the event a payment plan is authorized and entered, the subrogation fee will be based upon the total amount of the lien and will be invoiced to the City.

If authorized, small claims court appearances for recovery of funds will be priced at $250 per appearance. In the event of multiple appearances for the same court on the same day, a flat fee of $500 is priced for half a day, and $1,000 for a full day, regardless of the number of claims handled on that day.

The benefits of George Hills’ subrogation recovery:
• High-level expertise of subrogation recovery
• Recovery of damages to property, utilities, hazardous material cleanup • Small claims
• Preparation of proof of loss statements
• Claim reporting activity, demand letters, final demand to claimant with suspended license, closing and/or payment transmittal
• Settlements
• File retention
• Development of policy and procedures
• Provision of account manager and lead subrogation adjuster

4. QUALITY ASSURANCE PRACTICES
Our processes, procedures, and methodologies center around adjuster accuracy and customer satisfaction. Quality control comes at the technological (automated) level and at the human (adjuster/supervisor) level by George Hills’ Supervisors and Client Services Managers.

ATTACHMENT A69 313

APPENDIX
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Section 8 Form – Proposal Documents
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Attachment B – Proponent’s Covenant
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Attachment C – Non-Collusion Affidavit
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Attachment D – Agency Reference List
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Attachment E – Certification of Financial
Condition
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Attachment F – Cost/Price Proposal
Please find Attachment F in the separate file PUR 25-042 TPA FOR GENERAL LIABILITY George Hills_Pricing.pdf.

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Attachment G – Subcontractor List
ATTACHMENT A78 322
Attachment H – Exceptions
ATTACHMENT A79 323
George Hills Company, Inc. hereby submits the following explanation and recommendation for exceptions, alterations, and/or modifications to the sample Exhibit C: General Terms and Conditions.

George Hills Company has reviewed the City of Stockton Sample Contract and is willing to submit to the terms and conditions therefore with the following changes.

Section 11: Termination
Original Text in Sample Contract:

Section 11.1: Termination for Convenience of City. The City may terminate this Agreement at any time by mailing a notice in writing to Contractor. The Agreement shall then be deemed terminated, and no further work shall be performed by Contractor. If the Agreement is so terminated, the Contractor shall be paid for the work actually completed at the time the notice of termination is received.
1) Explanation of Reason for Change:

While termination for convenience is an acceptable term, based on the type of services being performed George Hills requires 90 days notice of termination in order to properly unwind the relationship and preclude any detriment to the City in connection with the claims and lawsuits which are the subject of this contract.
2) Proposed Alternative Language:

Section 11.1: Termination for Convenience of City. The City may terminate this Agreement at any time by mailing a notice in writing to Contractor at least 90 days prior to the effective termination date. The Agreement shall then be deemed terminated on the effective date, and no further work shall be performed by Contractor after that date. If the Agreement is so terminated, the Contractor shall be paid for the work actually completed at the time the notice of termination is received through the termination effective date.

Section 13: Indemnity and Hold Harmless
Original Text in Sample Contract:

Section 13: Indemnity and Hold Harmless. To the fullest extent permitted by law, Contractor shall hold harmless, defend and indemnify City of Stockton and its officers, officials, employees and volunteers from and against any and all liability, loss, damage, expense, costs (including without limitation costs and fees of litigation) of every nature arising out of or in connection with Contractor’s performance of work hereunder or its failure to comply with any of its obligations contained in this agreement, except such loss or damage which was caused by the sole negligence or willful misconduct of the City of Stockton. This obligation is independent of, and shall not in any way be limited by, the minimum insurance obligations contained in this agreement. These obligations shall survive the completion or termination of this agreement.
1) Explanation of Reason for Change:

George Hills requires a mutual indemnification provision since the risk of George Hills be named as a defendant in a case solely because of its work on behalf of the City is equal to the risk of the City being sued because of the work of George Hills.
2) Proposed Alternative Language:

Section 13: Indemnity and Hold Harmless: GH will defend, indemnify, and hold harmless City from and against all claims, demands, actions, or causes of action arising directly or indirectly from the negligent action, conduct, or failure to act by GH personnel (“Indemnity Event”), except that indemnity under this section does not apply with respect to any claim, demand, action, or cause of action arising out of the sole negligence or willful misconduct of the City. This right to indemnity shall not cover any claims in which there is a failure to give GH prompt and timely notice, within thirty (30) days of notice ATTACHMENT A80 324
received by the City which implicates this provision, but only if and to the extent that such failure materially prejudices the defense of such claims. For an Indemnity Event, the maximum amount recoverable by City against GH for damages and costs (inclusive of attorneys’ fees) is limited to the insurance policy limits, of the policy which covers the Indemnity Event held by GH, in place at the time of the Indemnity Event.

City will defend, indemnify, and hold harmless GH, and/or employees of GH, from and against all claims, demands, actions, or causes of action, which may arise, from the action, conduct, or failure to act by City. In any cases subject to this indemnity provision, wherein GH, or any employee of GH, is named in a filed or verified complaint simply by virtue of the fact it is the claims administration firm, or an employee thereof, on a given claim, the City will defend GH, and/or its employees, at no cost to GH or its employees.

Section 14: Insurance
Original Text in Exhibit 1 to the RFP which is anticipated to be attached to the Contract:

Minimum Scope and Limit of Insurance
Paragraphs 1 & 2 and all other references to any specific ISO form: Suggest removing reference to specific ISO forms. George Hills cannot control the forms utilized by carriers to establish coverage. It is usually recommended that we use language such as “….coverage written on forms in common use in the insurance industry and which are acceptable to the City after review…” “If the Contractor maintains broader coverage and/or higher limits than the minimums shown above, the City of Stockton requires and shall be entitled to the broader coverage and/or the higher limits maintained by the contractor.” It is recommended that we remove this section of the requirement. Many carriers are limiting coverage to only that coverage which is required by contract. Therefore, any limit above and beyond required would not apply. This coverage is already in place for George Hills and is not being newly obtained solely for the City of Stockton contract and as such, the ability to modify this coverage is limited.

Primary Coverage
“This requirement shall also apply to any Excess or Umbrella liability policies” Primary and noncontributory does not apply to an Umbrella policy. We suggest removing this requirement.

Notice of Cancellation
“Each insurance policy required above shall provide that coverage shall not be canceled, except with notice to the City of Stockton.” Suggest adding: “except with notice to the City of Stockton, within a reasonable amount of time”.

Waiver of Subrogation
A waiver of subrogation is only available under the Commercial General Liability, Auto, and Workers’ Compensation policies, and as such this requirement should be limited to only those coverages.

Self-Insured Retentions
“The City of Stockton may require the Contractor to purchase coverage with a lower retention or provide proof of ability to pay losses and related investigations, claim administration, and defense expenses within the retention." It is recommended that we remove this portion of the requirement.

The City of Stockton cannot dictate the SIRs or Deductible levels for insurance which is already in place and providing coverage to multiple clients of George Hills.

Acceptability of Insurers
It is recommended that the City all inclusion of insurers that are rated “A-“ rather than “A”. “A-“ is still a secured rating from A.M. Best. Gallagher has stringent guidelines for insurers that we do business with and “A-“ rated are acceptable. “A-“ gives us much more flexibility when placing GH’s insurance coverage should an “A” rated not be available at an acceptable price.

ATTACHMENT A81 325
Amendments
There are no amendments to the RFP.

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Sample Reports
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Sample POA
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Sample Contract
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PRICING

CITY OF STOCKTON

THIRD PARTY ADMINISTRATOR (TPA) TO
MANAGE CITY’S SELF-INSURED GENERAL

LIABILITY PROGRAM
RFP PUR 25-042......................................................................... Submitted: June 5, 2025 George Hills
PO Box 278, Rancho Cordova, CA 95741
Phone: (916) 859-4800, Fax: (916) 859-4805
ATTACHMENT A118 362

5.3 PRICE SHEET

1. PRICING

FEE SECTION TERMS
One Time Startup Fee – George Hills is strongly interested in partnering with the City of Stockton, and as such, this fee has been waived for the City of Stockton.

The process of onboarding a new client covers many areas, from establishing expectations, policies, and procedures, to designing the infrastructure (process, people, and systems) to meet the needs of risk management, council, and department heads. It also involves time and effort in establishing the Trust Account or check writing, W-9, and all federal and state reporting requirements. Most importantly, this process involves the establishment of effective claims triage. Note that this is not time spent on the actual data conversion.

Annual Administration Fee – George Hills has determined it takes a company-wide effort to ensure we exceed the expectations of our clients. As such, we feel it transparent to separately identify and charge for those critical functions that are not directly tied to claims handling. We include an annual administration fee, which covers the following activities:
• Executive attendance at any City Executive Committee Meeting or Board Meeting • Claims Management Information System (CMIS) services and reports • Access to CMIS and training
• Monthly listing of open claims, showing expense categories, reserves, and total incurred • Monthly claim summary reports
• Monthly hours and claims data detail for billing
• Providing loss run data and required reports
• Access to GH Client Portal
• Providing annual reports to outside agencies
• Filing of regulatory reports, such as 1099s, W-9s, etc. • Trust Account
• Establishment and maintenance of a trust account to pay indemnity and expenses that may be due on claims; the amount to be maintained in the trust account shall be determined by the City. If the trust account is set up with the GH preferred bank then George Hills covers the cost of Positive Pay and Payee Match.
o If the City prefers an alternate bank, there may be an additional setup fee, as other banks’ processes can be extraordinarily time consuming. • New bank account setup, including signature cards, test checks, online access, and setup of bank in CXP
• Discussion and agreement on the approval process
• Preparation of W-9s
ATTACHMENT A119 363
• Processing of checks weekly
• Submission of positive pay (if applicable) and monitoring of positive pay (review of daily emails from bank for exceptions)
• Maintenance of a copy of all checks drawn by George Hills to pay claims and claims-related expenses
• Monitoring of account balance, preparation of replenishment requests as needed (custom requests for each client’s needs)
• Monthly bank reconciliation (prepared and sent to the City) • Payment of invoices that are pass-throughs, such as invoices for medical record copies, ExamWorks, etc.
• Certificates of insurance as required by the Contract • Annual service
• Response to outside financial auditors
• Provision of reports to the City’s actuaries and claims auditors • Submission of GH SSAE 16 reports, or the current equivalent • Account Management
Mileage: Adjuster – Mileage is paid at the current IRS rate.

MMSEA – Both the one-time setup fee and the annual reporting feeds to offset fees paid directly to ExamWorks.

Adjuster Travel Expenses – For mediations, settlement conferences, trials, etc.; subject to prior approval and submitted with receipts.

CXP Access Fee – Included in the annual administration fee is the setup and management of five (5) user accounts through our CMIS: CXP.
iMetrics Report Fee – There will be no charge for our iMetrics business intelligence reports with executive in-person debriefs.

Custom Reports – Additional charged for custom reporting are defined as being client-specific and needing a third-party programmer for three (3) hours or more.

Conversion Fees – This fee is intended to cover costs associated with data conversion, transition, and contract closeout. The data conversion fee is dependent on many factors which will need to be discussed. If George Hills is retained for five (5) years, we will entirely absorb the conversion fee. If George Hills is not retained for the full length of the proposed contract, then the client shall be subject to a fee of 20 percent each year not retained, not including shipping, storing, scanning, copying, or otherwise handling open or closed paper claim files (this shall be a separate charge based on the Scope of Work).

George Hills will charge for any agreed services related to conversion storage, copying, scanning, shipping, and disposal.

Catastrophic Pricing – Applicable only to Fixed Fee and Time And Expense With A Cap Fee agreements. George Hills recognizes that in the event of a catastrophe, additional hours will need to be applied to the handling of such claims. As such, to preserve the quality and efficiency of service for ATTACHMENT A120 364
which we are known, George Hills proposes that should a catastrophic event occur resulting in 10 or more claimants or claims from a single occurrence, the client shall be billed at the current hourly rate.

Annual Fee Escalator – The Annual Fixed Fee and all hourly rates shall be adjusted at the beginning of each of the remaining years of the term by the lesser of 5%, or in accordance with the changes in the Consumer Price Index (CPI-U) for all Urban Consumers for the Western Region using the most recently published annual percentage change, but in any event such increase shall not be less than 3%.

Termination Fee – In the event of contract termination, George Hills’ procedures and cost for run-off claims will be billed at the current hourly rate; no charge for historical loss summaries. George Hills believes that the successful transition of claims requires preparation, so we ask for 90 days’ notice if the contract is terminated without cause to facilitate the transition of claims management properly and efficiently.

General File – A general administrative file shall be established and maintained to track effort related to services necessary to fulfill our contractual obligations and not otherwise associated with a claim.

Storage – George Hills will charge for any services related to storage, retrieval, copying, scanning, shipping, and disposal of paper files.

ADJUSTING SERVICES FEES - OPTIONS
Option 1A: Time and Expense – George Hills believes, as in the legal field, services surrounding claims and potential litigation are best captured by directed effort. In this case, the client only pays for the services requested. In a time and expense environment, George Hills applies its best practice approach to all claims; unless the client adjusts, restricts, or expands such services. A general administrative file will be established and maintained to track effort related to services necessary to fulfill our contractual obligations not otherwise associated with a claim.

Time and Expense for Adjusting Services
Supervisor $135/hour
Senior Adjuster $115/hour
Adjuster $102/hour
Claims Processing $89/hour
All fee options are subject to the Annual Fee Escalator described above.

Please note that we are proposing Time and Expense for litigated matters.

Option A2: Time and Expense with a Cap – George Hills believes that this can be the best of both worlds. This pricing model allows for the realities of the unknown to dictate service results but retains some budget certainty. The cap will always be more than the fixed fee to protect the unknown, but often can result in less cost too. The cap is a movable target and should be adjusted annually until the services and relationship have settled.

ATTACHMENT A121 365
The above hourly rates by position are the same for both options A1 and A2. The only difference shall be that George Hills will commit to an annual maximum fee for adjusting services for option A2, in the amount of $475,000. Please note that the catastrophic pricing is applicable, and therefore outside of the annual maximum fee.

All fee options are subject to the Annual Fee Escalator described above.

Option B: Fixed Fee – George Hills believes this is a workable solution for public agencies seeking budget certainty. Unfortunately, it has its challenges. First, every other significant component of a claim (settlement and legal fees) is not predictable and as such, making the adjusting costs fixed will ensure that 100 percent of the time the fee will be wrong. Secondly, the result could be that the client is receiving far more resources than they are paying for, or the client is paying for far more resources than they are receiving in services on any one claim. Either outcome is wrong.

In this environment, George Hills makes every effort to be resource-sensitive in applying our best practices to ensure we balance the economics. No matter what, we put forth the right effort to resolve the claim. We do, however, adjust our clients’ fees that can and should be adjusted to meet our clients’ budget goals.

George Hills has developed a hybrid Fixed Fee Proposal. California Public Entities have seen dramatic increases in claims frequency in contrast to pandemic years. As such, we wanted to create a simple fee model that allows for fee adjustments down or up due to claims frequency, as hopefully frequency drops back down. Since claims activity is the main indicator for TPAs and the number of resources needed to perform quality services, it is important that adjustments can be made to resources provided and resulting costs for the benefit of the client and TPA.

Our model provides for an assessment of claims frequency twice a year – after six (6) and twelve (12) months. We have established the change must be at least 10% to trigger an adjustment and no more than 25%, as greater than that warrants a contract modification. For the City’s proposal the model would result in an adjustment in the event claims frequency dropped below the current estimate of new claims per year. In the event claims dropped below or increased above this estimate, an adjustment would automatically occur during the 7th and/or 13th month. The claims base would be adjusted to this new level for future year calculations.

For the City, the financial result would be calculated based on the percentage increase or decrease ranging from 10-25%. For example, if the increase/decrease was 10%, the fee would decrease from $427,500 to $470,250. Conversely, if there was a 10% increase the fee would increase from $427,500 to $384,750.

Fixed Fee
Fixed Fee—Claims Only $427,500
ATTACHMENT A122 366
GENERAL ADMINISTRATIVE FEES – ADDITIONAL TO ADJUSTING
FEES
Fixed Fee and Cap pricing will be based on the current average. Should the claim volume change more than 10% in severity or frequency in a year, we request a reevaluation of our pricing agreement. *All fee options are subject to the Annual Fee Escalator described above.

Subrogation Recovery Services
The fees for Subrogation Recovery services is 30% for each recovery obtained—if no recovery is made, there is no fee. The minimum amount to be paid to GH will be $250 per claim upon recovery. Please note, on most subrogation recovery claims sent to George Hills, we are successful in recovering our 30% fee, thus the net cost is zero.

General Administrative Fee Section – Applicable to each fee option.

One-Time Setup Fee $15,000 - Waived
Annual Administration Fee – billed yearly $25,000*
Mileage - Adjuster Current IRS Rate
MMSEA Annual Reporting Fee (paid to ExamWorks, billed
yearly)
One-Time Setup: $300
Annual Fee: $500
Adjuster travel expenses for mediations, settlement
conferences, trials; subject to prior approval.

Actual
CXP access fee (up to 5 users) Included
Custom reports, if exceeds three hours and is client
specific
$185/hour
Allocated File Expenses (see attached details) At cost
Catastrophic Pricing Current hourly rate
ATTACHMENT A123 367

ALLOCATED EXPENSES
Typically, allocated expenses are those expenses that are generated by a claim (by outside vendors other than George Hills) that cannot be foreseen nor included in this Contract. These expenses are generally allocated back to the specific claim file for which the cost was incurred and then charged back to the entity whose claim incurred that cost. In most situations these are pass-through costs (with processing fees) for services and/or fees not directly generated by the TPA, but rather by a thirdparty consultant where the TPA has acted as an agent on behalf of the entity to necessarily outsource services to a third-party consultant and/or miscellaneous fees applicable to the specific claim applied by an outside entity, such as a court or copy services. Below, George Hills has provided a nonexhaustive list of typical allocated expenses.

Paid to GH
• CMS reporting costs and fees (ExamWorks)
Paid to Others as Authorized by Client
• Fees of outside counsel for claims in suit, coverage opinions, and litigation, and for representation and hearings or pretrial conferences
• Fees of court reporters
• All court costs, court fees, and court expenses
• Fees for service of process
• Costs of undercover operatives and detectives (if initially paid by GH) • Costs for employing experts for the preparation of maps, professional photographs, accounting, chemical or physical analysis, or diagrams
• Costs for employing experts for the advice, opinions, or testimony concerning claims under investigation or in litigation for which a declaratory judgement is sought • Costs for independent medical examination or evaluation for rehabilitation • Costs of legal transcripts of testimony taken at coroner’s inquests, or criminal or civil proceeding
• Costs for copies of any public records or medical records • Costs of depositions and court reporting
• Costs and expenses of subrogation (if not George Hills) • Costs of engineers, handwriting experts, or any other type of expert used in the preparation of litigation or used in a one-time basis to resolve disputes • Witness fees and travel expenses
• Costs of photographers and photocopy services (if not George Hills; our costs for this are included in our rate)
• Costs of appraisal fees and expenses not included in flat fee or performed by others • Costs of indexing claimants
• Services performed outside the TPAs normal geographical regions ATTACHMENT A124 368
• Costs associated with Medicare Set-Aside analysis and submission of Medicare Conditional Lien negotiation
• Investigation of possible fraud including SIU services and related expenses Any other similar cost, fee, or expense that is not otherwise included in the TPAs service fees that is reasonably chargeable to the investigation, negotiation, settlement, or defense of a claim or loss or to the protection or perfection of the subrogation rights of the entity, including travel related expenses.

Travel Related
Costs of travel related to claims including mileage drive, such as for attendance at inspections, mediations, and trial, shall be allocated to the specific claim and reimbursed to GH based on the actual cost incurred. Mileage shall be reimbursed at the current IRS rated at the time the mileage is traveled.

OPTIONAL SERVICES
Full In-House Litigation Management – Use of George Hills’ Attorneys Name and Title
Years of
Experience
Role for the Client
Neil Callahan, Esq.

Litigation Manager
25 Serves as a Litigation Manager for several
clients, monitoring counsel, and as a
resource to our claims staff.

Benjamin Oram, Esq.

General Counsel/Litigation
Manager
15 Serves as a Litigation Manager for several
clients, monitoring counsel, and as a
resource to our claims staff.

Cornelius (Neil) Callahan, Esq., Litigation Manager: Mr. Callahan has over 25 years of experience defending public entities on high profile claims in state and federal courts. Mr. Callahan commenced his career practicing law in New York, New Jersey, and Connecticut. In 1999 he began practicing law in California, where he served as lead trial counsel for public entities in the areas of civil rights, police practices, and dangerous condition defense. He has tried multiple cases to jury verdict in both state and federal court having been the lead defense attorney in 13 trials, with 12 defense verdicts. His emphasis has been on defending and advising public entities involved in civil litigation. Past cases include officer-involved shootings, excessive force, unlawful seizure, dangerous condition, discrimination, and harassment. He is experienced in all aspects of litigation including discovery, depositions, motion practice, arbitrations, administrative hearings, mediations, and trials.

Benjamin Oram, Esq., General Counsel/Litigation Manager: Ben serves as George Hills’ General Counsel/Litigation Manager. He currently serves as a Litigation Manager for several clients, monitoring counsel, and as a resource to our claims staff.

George Hills’ proactive approach is founded on our commitment to the preservation of the City’s assets. Early contact with all involved parties maintains lines of communication and rapport (not only with the insured but also with the claimant); hence, cost-saving opportunities to resolve claims efficiently are more plentiful.

ATTACHMENT A125 369
Here is an outline of their role and how it would work for the City:

1. Serve as Litigation Manager (Specifics of the role below) i. Actively manage all watchlist files (parameters of a watchlist to be agreed upon through subsequent discussions)
ii. Manage and supervise all litigated files – claims adjusters will track the nonserious and/or non-active litigated files, with the support of Claims Processors, and report to the City
iii. Accessible to the entire GH adjuster team to advise and instruct as needed

2. Serve as Outside General and Special Counsel – limited basis i. Work closely with the City with confidential analysis and problem-solving for managing risk and avoiding unnecessary litigation
ii. Provide immediate access to legal advice to the City, which includes analyzing coverage issues, Public Records Act requests, tort claim handling and strategy, conflicts of interest, oversight of outside litigation counsel, and providing legal opinions on potential and active litigation
iii. Advise on sensitive and political issues/claims

3. Coverage counsel consultation
i. Review and analysis of memorandums of coverage and excess/umbrella policies to address and offer advice and consultation regarding coverage issues ii. Advise on potential changes to all coverage documents iii. Assist City and George Hills staff in interpretation of coverage issues

4. Resource to a broker of record for coverage needs

5. Trial/Mediation/Board Meeting attendance
i. Attend board/executive/coverage/claims meetings (as necessary) ii. Attend trials, mediations, and other court hearings, including appearing before Courts of Appeal as needed
iii. Provide analysis and consultation before, during, and after these significant litigation events – to reduce exposure and maximize opportunities for resolution

6. Legal training and seminars
i. Provide customized seminars and training upon request – to City staff, brokers, members, and GH staff
ii. Subject areas include memorandums of coverage, all aspects of risk management, claims handling and litigation, employment law, and general liability claims iii. Courses are customized to address the client’s specific needs and to work closely with safety and loss staff, defense firms, and others
ATTACHMENT A126 370
Rates for Optional Legal Service
Litigation Management $225/hour
This rate is subject to the annual fee escalator.

Please note that George Hills can provide a monthly/annual fixed fee for the above services upon discussion and agreement on level of effort.

ATTACHMENT A127 371
Attachment F – Cost/Price Proposal PUR 25-042
ATTACHMENT A128 372

EXHIBIT F

TIMELINE

1. Contractor shall complete the requested services identified in Exhibit A as follows:

1.1 TIMELINE FOR COMPLETION OF WORK

1.1.1 Complete Contract Negotiations 08/25/2025

1.1.2 RMIS Interface Development Begin 08/18/2025 – Duration 30 Days

1.1.3 Pre-Contract Onboarding Begin with term notice – 30 Days

1.1.4 Ready for Claim Servicing 10/01/2025

1.1.5 Claim Files Ongoing

1.1.6 Property Subrogation Files Ongoing

1.1.7 Plan of Action Ongoing

1.1.8 Quarterly Litigation Budgets Ongoing

1.1.9 Investigative Reports As necessary

1.1.10 Narrative Reports As necessary

1.1.11 Check Register Due the 1st of each month

1.1.12 Loss Runs – Injury Year as Due the 1st of each month of Date-GL, Date Excess
Sent-GL, Open Litigated
Claims-GL, Injury Year Detail
by Department, and
Subrogation (Recovery and
Invoicing

1.1.13 Loss Runs – Opened-GL, Due weekly (on Saturday)
Closed-GL, Reserve
Change-GL, All claims-GL,
All claims-Fleet,
Opened-Subrogation,
Closed-Subrogation, Reserve
Change-Subrogation

1.1.14 Financial and/or Tax Reports Due May 1st (annually)

1.1.15 Standard Loss Reports As requested by City

1.1.16 Special Reports As requested by City

1.1.17 Reports for Federal, State Due May 1st (annually) & Local 1099 Information

1.1.18 Stewardship Meeting Annually

1.1.19 Review claims Meetings with Monthly (3rd Monday from 3:00 Risk and City Attorney pm – 4:00 pm
1 (Rev, 10.27.22)
ATTACHMENT A129 373

ATTACHMENT B
CITY MANAGER’S OFFICE
425 N. El Dorado Street, 2nd Floor ● Stockton, CA 95202 209 / 937-8212 ● Fax 209 / 937-7149 ● www.stocktonca.gov _______________, 2025
Sedgwick Claims Management Services, Inc.
8125 Sedgwick Way,
Memphis, TN 38125
To Whom it May Concern,
Pursuant to the Standard Agreement (“Agreement”), which commenced on May 13, 2024, between the City of Stockton and with Sedgwick for General Liability Administration, this letter serves as written notice of termination pursuant to Section 11.1 of Exhibit C (General Terms and Conditions) to the Agreement. The Agreement is terminated effective 35 days after the date of this letter. ________________________________________

WILL CREW

ACTING CITY MANAGER
374
City of Stockton
Legislation Text
File #: 25-0661, Version: 1

APPROVE A CONTRACT WITH SIMPLE THERAPY TO PROVIDE EMPLOYEE ASSISTANCE

PROGRAM SERVICES

RECOMMENDATION
It is recommended that the City Council approve a motion to:

2. Approve findings which support and justify an exception to the competitive bidding process pursuant to Stockton Municipal Code Section 3.68.070(A)(3) where the City held a competitive Request for Proposals.

Summary
The City provides Employee Assistance Program (EAP) services to full-time employees and their dependents. The current contract will expire on September 30, 2025. The Request for Proposals (RFP) was conducted through Bid PUR #25-044. On July 16, 2025, the RFP Committee interviewed the proposers and selected Simple Therapy.

DISCUSSION
Background
The City has provided EAP services to full-time employees and their dependents since 1979 regardless of their enrollment in a City-sponsored medical plan. The intent of this program is to provide free and confidential mental health services for employees and their family members to improve overall well-being and assist with life/work issues. The EAP is accessed as a means of reducing absenteeism, reducing disciplinary actions, improving job performance, providing training, and providing a vast array of resources. Additionally, the City can utilize services when critical issues arise.

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File #: 25-0661, Version: 1
Present Situation
Currently, the City provides EAP services to approximately 1,700 full-time employees and their dependents regardless of their enrollment in a City-sponsored medical plan. The Human Resources Department conducted an RFP, and the City’s Procurement Division conducted a technical and financial review of the bids submitted and determined that the bids submitted were conforming to the specific conditions required by the bid’s scope of services. Through the bid process, two (2) providers submitted bids:
· Simple Therapy
· Com Psych
On July 16, 2025, the Committee reviewed the submitted proposals in depth and rated them based on the following evaluation criteria:

1. Experience and Qualifications

2. Compliance

3. Understanding of the needs of the employees of the City of Stockton with emphasis on safety personnel

4. Traditional and non-traditional access and communication methods After interviewing each proposer, the Committee selected Simple Therapy to provide EAP services due to their qualifications, professional and industry expertise, and pricing.

FINDINGS
Pursuant to SMC section 3.68.070(A)(3), Council may approve findings that support an exception to the competitive bidding process. These findings include:
· Use of RFP is appropriate for this Standard Agreement because it relies on the evaluation of professional qualifications, experience, and performance as the basis of the selection.

FINANCIAL SUMMARY
Simple Therapy’s contract rate is $1.72 per employee per month. Based on the average number of 1,700 full-time employees, the monthly cost is $2,924; the contract will not exceed $175,440 over the life of the contract. Sufficient funding was included in the FY 2025-26 Annual Budget for the cost of EAP services within the Human Resources Special Services account #2510-000-630006-540-000-00 -25-000-000-. Funding for the remaining years of this contract will be included in each year’s annual budget development.

Attachment A - Contract with Simple Therapy
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ATTACHMENT A 379

2.18 Provide reports summarizing work life data via email. No individual data will be provided.

3. Notices
Pursuant to Exhibit C -General Terms and Conditions, Paragraph 15- Notices, the mailing address for all required notices is as follows:

Contractor: SimpleBehavioral
Attn: Account Manager
P.O. Box 25159
Fresno, CA 93729
[email protected]
800-644-2478

4. Key Personnel
Maya Reft, Deputy Director of Human Resources
[email protected]
209-937-8939
1 o. Option to Renew.

City: City of Stockton
Attn: City Manager
425 N. El Dorado Street
Stockton, CA 95202
The term of the Agreement may be extended up to two one (1) year renewals by a written amendment executed by both parties. However, the total term of the Agreement including the extended term shall not exceed five (5) years. 3 (Rev. 10.30.18)
ATTACHMENT A 380
ATTACHMENT A 381
ATTACHMENT A 382
ATTACHMENT A 383
ATTACHMENT A 384
ATTACHMENT A 385
ATTACHMENT A 386
ATTACHMENT A 387
ATTACHMENT A 388
ATTACHMENT A 389
ATTACHMENT A 390
ATTACHMENT A 391
ATTACHMENT A 392
ATTACHMENT A 393
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ATTACHMENT A 395
ATTACHMENT A 396
ATTACHMENT A 397
ATTACHMENT A 398
ATTACHMENT A 399
ATTACHMENT A 400
City of Stockton
Legislation Text
File #: 25-0974, Version: 1

ADOPT A RESOLUTION TO AWARD A CONSTRUCTION CONTRACT TO BOCKMON & WOODY ELECTRIC CO., INC. FOR THE ALEXANDRIA & FOURTEEN MILE STORM PUMP STATION

ELECTRICAL UPGRADES

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

2. Approve the project Plans and Specifications for the Alexandria & Fourteen Mile Storm Pump Station Electrical Upgrades (Exhibit 2 to the Resolution).

3. Transfer $381,497 from the Storm Drain Systems Emergency Project No. US24005 to the Alexandria & Fourteen Mile Storm Pump Station Electrical Upgrades Project No. US24001.

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

Summary
The Municipal Utilities Department (MUD) is comprised of three enterprise funds including Water, Wastewater and Stormwater Utilities. The Stormwater Utility consists of 77 pump stations, more than 600 miles of pipeline, and 22,500 drain inlets that route stormwater from city streets into local basins and waterways.

The Alexandria & Fourteen Mile Storm Pump Station conveys stormwater from the adjacent roadways within the Quail Lakes area and discharges into Fourteen Mile Slough. During a storm event in January 2023, the storm pump engine overheated and caught fire after running for an extended period due to heavy rainfall. Staff purchased a new electric motor to replace the antiquated engine. Before the new electric motor is installed, it is necessary to upgrade the pump station electrical infrastructure to support the increased power demand.

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File #: 25-0974, Version: 1
If approved by the City Council, this action will authorize a construction contract in the amount of $381,497 to Bockmon & Woody Electric Co., Inc. of Stockton, CA, for the Alexandria & Fourteen Mile Storm Pump Station Electrical Upgrades.

DISCUSSION
Background
The Alexandria & Fourteen Mile Storm Pump Station provides stormwater removal from the adjacent roadways in the Quail Lakes area and discharges into Fourteen Mile Slough.

As a result of heavy rainfall during the January 2023 storm event, the natural gas fired engine driving the storm pump overheated and caught fire due to an excessive running time of over 100 hours. The engine is more than 50 years old, lacks available parts and is unable to meet current air emission requirements.

As a result, staff purchased a new electric motor suitable to operate the pump. Staff also hired an electrical engineer to design the electrical upgrades necessary to accommodate the increased power demand required by the new electric motor.

On June 5, 2025, the Alexandria & Fourteen Mile Storm Pump Station Electrical Upgrades project was advertised in the Stockton “Record” and on the City Bid Flash webpage. Additionally, staff mailed a notice with a brief project description to 111 contractors holding a Class “A” and “C-10” license and emailed Ask Stockton notifications to companies that subscribe to receive new requests for bids, proposals, and contracts.

Present Situation
On June 19, 2025, four companies including Bockmon & Woody Electric Co., Inc., Fusion Electric, NCECI, and D.L. Payne, Inc. attended a non-mandatory pre-bid conference.

On July 3, 2025, the City Clerk publicly opened the following four sealed bids:

COMPANY NAME LOCATION BID PRICE
Bockmon & Woody Electric Co., Inc. Stockton, CA $381,497.00 Telstar Instruments Sacramento, CA $488,747.00
Con J Franke Electric, Inc. Stockton, CA $531,700.00
Big Valley Electric Copperopolis, CA $647,000.00
Bockmon & Woody Electric Co., Inc. of Stockton, CA, submitted the lowest bid. The bid is regular in all aspects and complies with the project specifications.

The Local Preference Ordinance, which states that “preference shall be given to the purchase of supplies, materials, equipment, and contractual services from local merchants, quality and price being equal,” does not impact the bid results.

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File #: 25-0974, Version: 1
If approved by the City Council, this action will award a $381,497 construction contract to Bockmon & Woody Electric Co., Inc. of Stockton, CA, for the Alexandria & Fourteen Mile Storm Pump Station Electrical Upgrades.

Local Employment Ordinance
The contract amount is over $100,000 and subject to the Local Employment Ordinance, which requires that “all City contracts for public works or improvements of estimated value or City subsidy of $100,000 or more shall contain provisions pursuant to which the contractor promises to make a good faith effort, with the assistance of local labor union hiring halls or community organizations designated by the City to employ qualified individuals who are, and have been for one year prior to the effective date of the contract, residents of Stockton in sufficient numbers so that no less than 50 percent of the contractor’s total construction workforce, including any subcontractor workforce, measured in labor work hours, is comprised of Stockton residents.” The project is under $1,000,000 and not subject to the Community Workforce and Training Agreement.

Environmental Clearance
It has been determined that this project is categorically exempt from the requirements of the California Environmental Quality Act (CEQA) guidelines as specified under Article 19, Section 15301 (b) of the CEQA guidelines because it involves existing facilities and their repair to meet current standards of public health and safety.

In addition, the proposed project is consistent with the 2040 Stockton General Plan (Land Use Policy

6.3) because it improves existing utility services to ensure that all neighborhoods have access to well -maintained public facilities and utilities that meet community service needs.

If approved by the City Council, this action will prompt staff to file and post the approved Notice of Exemption to comply with CEQA Guidelines section 15062.

FINANCIAL SUMMARY
The Storm Drain Systems Emergency Project No. US24005 provides funding for the emergency repair and rehabilitation of storm drainpipe and pump station equipment failures due to unforeseen conditions.

Staff request that $381,497 from this emergency project be transferred to the Alexandria & Fourteen Mile Storm Pump Station Electrical Upgrades Project No. US24001 (6518-000-800007-620-621-00- 65-000-000) to award the construction contract totaling $381,497.

Staff have also submitted an application to the Federal Emergency Management Agency for a reimbursement of costs incurred due to damages from the January 2023 storm event.

This action has no impact on the General Fund or any other unrestricted funds.

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Resolution No.

STOCKTON CITY COUNCIL
RESOLUTION APPROVING THE FILING OF NOTICE OF EXEMPTION NOE36-25,

APPROVING THE PROJECT PLANS AND SPECIFICATIONS, AND AWARDING A $381,497 CONSTRUCTION CONTRACT TO BOCKMON & WOODY ELECTRIC CO., INC. FOR THE ALEXANDRIA & 14-MILE STORM PUMP STATION

ELECTRICAL UPGRADES
The Alexandria & Fourteen Mile Storm Pump Station conveys stormwater from the adjacent roadways within the Quail Lakes area and discharges into Fourteen Mile Slough; and
During a storm event in January 2023, the stormwater station pump engine overheated and caught fire after running for an extended period due to the excessive rainfall; and
A new electric motor will replace the antiquated engine, but before it is installed, it is necessary to upgrade the pump station electrical infrastructure to support the increased power demand; and
On July 3, 2025, the City Clerk opened, examined, and publicly declared the sealed bids offered for the Alexandria & Fourteen Mile Storm Pump Station Electrical Upgrades; and
Bockmon & Woody Electric Co., Inc. submitted the lowest bid in the amount of $381,497; and
The bid submitted by Bockmon & Woody Electric Co., Inc. is regular and responsive in all aspects; and
The electrical upgrades of the pump station as described in the proposed Construction Contract for the Alexandria & Fourteen Mile Storm Pump Station Electrical Upgrades (Exhibit 3), the “project”, satisfies the 2040 Stockton General Plan (Land Use Policy 6.3) because it improves existing utility services to ensure that all neighborhoods have access to well-maintained public facilities and utilities that meet community service needs; and
The project is exempt from California Environmental Quality Act (CEQA) requirements as specified under Article 19, Section 15301 (b), of the CEQA Guidelines; now, therefore,

BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF STOCKTON, AS FOLLOWS:
404

1. The filing of the Notice of Exemption No. NOE36-25 under CEQA for the Alexandria & Fourteen Mile Storm Pump Station Electrical Upgrades is hereby approved, and staff are authorized to file and post it in compliance with CEQA Guidelines section 15062, a copy of which is attached as Exhibit 1 and incorporated by this reference.

2. The project Plans and Specifications for the Alexandria & Fourteen Mile Storm Pump Station Electrical Upgrades are hereby approved, a copy of which is attached as Exhibit 2 and incorporated by this reference.

3. Transfer $381,497 from the Storm Drain Systems Emergency Project No.

US24005 to the Alexandria & Fourteen Mile Storm Pump Station Electrical Upgrades Project No. US24001.

4. The City Manager is hereby authorized to execute a $381,497 construction contract with Bockmon & Woody Electric Co., Inc. of Stockton, California, for the Alexandria & Fourteen Mile Storm Pump Station Electrical Upgrades, a copy of which is attached as Exhibit 3 and incorporated by this reference.

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

PASSED, APPROVED, and ADOPTED September 23, 2025 .

CHRISTINA FUGAZI
Mayor of the City of Stockton
ATTEST:

KATHERINE ROLAND, CMC, CPMC
City Clerk of the City of Stockton
405

CITY OF STOCKTON

NOTICE OF EXEMPTION
TO: COUNTY CLERK FROM: Lead Agency
COUNTY OF SAN JOAQUIN City of Stockton
44 N. San Joaquin St., Ste. 260 c/o Municipal Utilities Department Stockton, CA 95202 2500 Navy Drive
Stockton, CA 95206
NOTICE OF EXEMPTION PURSUANT TO PUBLIC RESOURCES CODE SECTION 21152(B) AND CALIFORNIA CODE OF REGULATIONS TITLE 14, SECTION 15062

PROJECT DATA
Project Title: Alexandria & 14-Mile Storm Drain Pump Station Electrical Upgrades – Project No, US24001 CEQA Exemption File No.: NOE 36-25
Applicant: City of Stockton, Municipal Utilities Department Project Description/Location: The City of Stockton’s Municipal Utilities Department’s Project work scope includes the install of approximately 425 feet of conduit along Alexandria Place and connect to an existing POC; furnish and install a new main service/motor control center and connect as shown on the plans; provide electrical upgrades per the lift station reconnection plan; provide instrumentation, controls, and connection to SCADA cabinet. The storm pump station address is 5935 Alexandria Place. Please see attachments for more information.

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

The activity is exempt under the "general rule" at CEQA Guidelines Section 15061(B)(3).

The project is "Statutorily Exempt" per CEQA Guidelines Section: __________ X The project is "Categorically Exempt" per CEQA Guidelines Section 15301(b).

BASIS FOR FINDING OF EXEMPTION
The activity does not qualify as a project and/or clearly could not have a significant effect on the environment and, therefore, CEQA does not apply.

X The activity constitutes a discretionary project under the City's jurisdiction and qualifies as a project which has been determined not to have a significant effect on the environment and, therefore, is exempt from the provisions of CEQA under the above-noted statutory or categorical exemption(s).

C. MEL LYTLE, Ph.D., DIRECTOR July 15, 2025

MUNICIPAL UTILITIES DEPARTMENT (DATE OF PREPARATION)
By
Kelly Ju, Associate Engineer (DATE OF FINAL APPROVAL)
_____________________________________________________________________________________________

AFFIDAVIT OF FILING AND POSTING
I declare that on the date stamped above, I received and posted this notice or included it on a list of such notices which was posted as required by California Public Resources Code Section 21152(B). Said notice or list of notices will remain posted for 35 days from the filing date.
___________________________________________ ________________________________________________ Signature Title
_________________________________________
Posting Period Ending Date
EXHIBIT 1 406
EXHIBIT 2 407
EXHIBIT 2 408
EXHIBIT 2 409
EXHIBIT 2 410
EXHIBIT 2 411
EXHIBIT 2 412
EXHIBIT 2 413
PLAN HOLDER NO. _______

CITY OF STOCKTON

MUNICIPAL UTILITIES DEPARTMENT

NOTICE TO BIDDERS

INSTRUCTIONS TO BIDDERS
BID

CONTRACT

SPECIAL PROVISIONS

FOR CONSTRUCTION OF
ALEXANDRIA & 14-MILE STORM PUMP

STATION ELECTRICAL UPGRADES
PROJECT NO. US24001
CONTRACTOR MUST HAVE A CLASS "A" or "C-10" LICENSE

STOCKTON, CALIFORNIA
Bid Opens: THURSDAY, JULY 3, 2025, 2:00 p.m.

FOR INFORMATION

REGARDING THIS PROJECT CALL
(209) 937-8700 or (209) 937-8727 Extension
(Do not return - Please recycle)
EXHIBIT 2 414
EXHIBIT 2 415
EXHIBIT 2 416
EXHIBIT 2 417
Table of Contents
00010-1
SECTION 00010 - TABLE OF CONTENTS
DIVISION 0 - BIDDING AND CONTRACT REQUIREMENTS
Section
00010 Table of Contents
00020 Notice Inviting Bids
00100 Instructions to Bidders

1.0 Work to be Done

2.0 Examination of Contract Documents

3.0 Inspection of Site

3.1 Pre-bid Conference

4.0 Interpretation of Contract Documents

5.0 Postponement of Opening

6.0 Opening of Bids

7.0 Preparation of Bid Forms

8.0 Bidder’s Signature and Authority

9.0 Erasures and Corrections

10.0 Bid Irregularities

11.0 Modification of Bid

12.0 Withdrawal of Bids

13.0 Addenda

14.0 Bid Prices

15.0 Bid Guaranty

16.0 Qualification of Bidder

17.0 Subcontractors

18.0 Major Equipment Items

19.0 Substitutions During Bidding

20.0 Bidders Interested in More Than One Bid
EXHIBIT 2 418
Table of Contents
00010-2

21.0 Sheeting, Shoring, and Bracing

22.0 Wage Rates

23.0 Offer of Assignment of Antitrust Actions

24.0 Assignment of Contract

25.0 Rejection of Bids

26.0 Contract and Bonds

27.0 Award of Contract

28.0 Execution of Contract

29.0 Business License

30.0 Construction and Demolition Debris

31.0 Escrow of Bid Documents

32.0 Bid Protests

33.0 Local Employment

34.0 Community Workforce and Training Agreement
00220 Geotechnical Data

BIDDING REQUIREMENTS
00300 List of Bid Items
00500 Construction Contract
00700 General Conditions

1.0 GENERAL

1.1 Intent of Contract Documents

1.2 Discrepancies and Omissions

1.3 Headings

1.4 Penalty for Collusion

1.5 Successors and Assigns

1.6 Assignment to City

1.7 Rights and Remedies

2.0 ADMINISTRATION

2.1 Administration of the Contract

2.2 City's Representative

2.3 Construction Management

2.4 Design Consultant
EXHIBIT 2 419
Table of Contents
00010-3

3.0 CITY

3.1 General

3.2 Attention to Work

3.3 Inspection

3.4 City's Right to Carry Out the Work

3.5 City's Right to Use or Occupy

3.6 City's Right to Perform Work and to Award Separate Contracts

4.0 CONTRACTOR

4.1 Office

4.2 Contractor's Representative

4.3 Construction Procedures

4.4 Contractor's Employees

4.5 Subcontractors

4.6 Contractor's Equipment and Facilities

4.7 Public Safety and Convenience

4.8 City-Contractor Coordination

4.9 Permits

4.10 Contractor's Responsibility for the Work and Materials

4.11 Laws to be Observed

4.12 Safety

5.0 CONTROL OF WORK AND MATERIALS

5.1 Means and Methods

5.2 City Furnished Materials

5.3 Defective and Unauthorized Work

5.4 Unnoticed Defects

5.5 Right to Retain Imperfect Work

6.0 PROGRESS OF THE WORK

6.1 Beginning of Work

6.2 Time of Completion

6.3 Delays

6.4 Time Extensions

6.5 Liquidated Damages

6.6 Termination By City for Cause

6.7 Suspension By The City For Convenience

6.8 Termination By City for Convenience

6.9 Temporary Suspension of Work

7.0 SCOPE OF WORK - CHANGES IN THE WORK

7.1 Changes

7.2 Change Orders

7.3 Differing Site Conditions

7.4 Value Engineering Change Proposals (VECP)

7.5 Resolution of Disputes

7.6 Assertion of Claims

7.7 Dispute Resolution

8.0 PAYMENT

8.1 Scope of Payment

8.2 Partial Payments

8.3 Partial Payments - Inclusion of Materials on Hand
EXHIBIT 2 420
Table of Contents
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8.4 Right to Withhold Amounts

8.5 Substantial Completion

8.6 Final Inspection and Payment

8.7 Warranty of Title

9.0 EXISTING UTILITIES

9.1 General

9.2 Notification and Location

9.3 Damage and Protection

9.4 Utility Relocation and Rearrangement

10.0 APPLICABLE LAW/CODE REQUIREMENTS

11.0 USE OF SITE AND CLEAN UP

12.0 CORRECTION OF DEFFECTIVE WORK AND GUARANTEE TO REPAIR PERIOD
00800 Supplementary Conditions

1.0 LOCAL EMPLOYMENT

2.0 COMMUNITY WORKFORCE AND TRAINING AGREEMENT
00810 Modifications to General Conditions

00820 Liability and Insurance Requirements

1.0 INDEMNIFICATION

2.0 INSURANCE REQUIRMENTS
DIVISION 1 - GENERAL REQUIREMENTS
01010 Summary of Work

1.0 WORK COVERED BY CONTRACT DOCUMENTS

2.0 CONTRACT ADMINISTRATION

2.1 Name of Construction Manager

2.2 Name of Design Consultant

2.3 Name of City's Representative

3.0 TIME ALLOWED FOR COMPLETION

4.0 DAMAGES FOR DELAYS

5.0 WEATHER DAYS

6.0 WORK SEQUENCE AND CONSTRAINTS

7.0 OCCUPANCY REQUIREMENTS
EXHIBIT 2 421
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8.0 CITY FURNISHED MATERIALS

8.1 Contract Documents

9.0 TRENCH EXCAVATION

10.0 WORK UNDER OTHER CONTRACTS

11.0 CONTRACTOR'S WORK PERCENTAGE

12.0 UNDERGROUND FACILITIES

13.0 LEGAL AND CITY HOLIDAYS
01015 General Provisions

1.0 GENERAL

1.1 Description

1.2 Guarantee

1.3 Contractors License

1.4 Patents

2.0 PRODUCTS (Not applicable in this Section)

3.0 EXECUTION

3.1 Public Complaints

3.2 Guarantees and Warranties

3.3 Precedence of Contract Documents

3.4 Care and Protection of Property

3.5 Field Check of Existing Improvements

3.6 Protection of Existing Improvements

3.7 Cooperation With Others

3.8 Unfavorable or Hazardous Construction Conditions

3.9 Testing and Substantial and Final Completion
01025 Measurement and Payment

1.0 GENERAL

1.1 Measurement of Quantities

1.2 Units of Measurement

1.3 Certified Weights

1.4 Methods of Measurement

2.0 DESCRIPTION OF BID ITEMS

2.1. General

2.2 Duration of Prices

2.3 Bid Items

2.4 Payment for Mobilization

2.5 Payment for Startup and Demobilization

3.0 CONTRACTOR'S COST BREAKDOWN
01035 Modification Procedures
EXHIBIT 2 422
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00010-6

1.0 CHANGES IN CONTRACT PRICE

2.0 NEGOTIATED CHANGE ORDERS

3.0 FORCE ACCOUNT PAYMENT

4.0 UNIT PRICE ADJUSTMENTS DUE TO INCREASED OR DECREASED

QUANTITIES

5.0 TIME EXTENSIONS FOR CHANGE ORDERS

6.0 CONTRACTOR CHANGE REQUESTS

7.0 VALUE ENGINEERING COST PROPOSALS
01040 Coordination

1.0 GENERAL

2.0 COOPERATION WITH OTHERS

3.0 ORGANIZATION AND COORDINATION

3.1 Monthly Reports

3.2 Daily Reports

3.3 Correspondence

4.0 SYSTEM OUTAGE REQUESTS

5.0 SEQUENCING OF THE WORK

6.0 ACCESS TO PROJECT FACILITIES
01050 Field Engineering

1.0 CHECK OF EXISTING IMPROVEMENTS

2.0 DATUM

3.0 LINES AND GRADES
01060 Regulatory Requirements

1.0 APPLICABLE CODES

1.1 Laws and Regulations

1.2 Codes

1.3 Specifications

2.0 LICENSES, FEES, AND PERMITS

2.1 Contractor’s License

2.2 Business License

2.3 Encroachment Permit (City of Stockton)
EXHIBIT 2 423
Table of Contents
00010-7
01090 References

1.0 DEFINITIONS

2.0 ABBREVIATIONS
01200 Project Meetings

1.0 PRE-CONSTRUCTION CONFERENCE

1.1 Attendees

1.2 Agenda

1.3 Minutes

2.0 PROGRESS MEETINGS

2.1 Schedule

2.2 Attendees

2.3 Agenda

2.4 Minutes

3.0 CONFERENCES

4.0 POST CONSTRUCTION MEETING
01300 Submittals

1.0 DESCRIPTION

2.0 SUBMITTAL-GENERAL REQUIREMENTS

3.0 SCHEDULE OF VALUES

4.0 PROGRESS SCHEDULE

5.0 SHOP DRAWINGS

6.0 SAMPLES

7.0 MATERIALS LISTS AND EQUIPMENT DATA

8.0 INSTRUCTION MANUALS

9.0 INSTALLATION INSTRUCTIONS

10.0 CITY PERSONNEL TRAINING PLAN

11.0 OTHER SUBMITTALS

12.0 STORAGE INSTRUCTIONS

13.0 TOOLS, ACCESSORIES, SPARE PARTS, AND MAINTENANCE MATERIALS

14.0 RECORD DRAWINGS AND SPECIFICATIONS
EXHIBIT 2 424
Table of Contents
00010-8

15.0 REVISION OF SUBMITTALS

16.0 CERTIFICATES

17.0 EARTHQUAKE DESIGN AND RESTRAINT

18.0 CONSTRUCTION PHOTOGRAPHS

18.1 Summary

18.2 Submittals

18.3 Media

18.4 General
01310 Progress Schedule

1.0 CONSTRUCTION SCHEDULE

1.1 Base Schedule

1.2 Responsible Person

1.3 Reports
01400 Quality Control

1.0 QUALITY CONTROL

2.0 INSPECTION

3.0 SAMPLES AND TESTS

3.1 Sampling

3.2 Testing

3.3 Test Standards
01500 Construction Facilities and Temporary Controls

1.0 GENERAL

2.0 TEMPORARY UTILITIES

2.1 Electrical Service

2.2 Water

2.3 Temporary Lightning

2.4 Heating and Ventilation

2.5 Sanitary Conveniences

3.0 CONSTRUCTION FACILITIES

3.1 Staging and False Work

3.2 Temporary Enclosures

3.3 Warning Devices and Barricades

3.4 Above Grade Protection

3.5 Use of Explosives

4.0 PROTECTION AND RESTORATION OF PROPERTY

5.0 PROJECT SECURITY
EXHIBIT 2 425
Table of Contents
00010-9

5.1 Fire Extinguisher

5.2 First Aid

5.3 Temporary Fences

6.0 ACCESS ROADS

7.0 SPECIAL CONTROLS

7.1 Dust Control

7.2 Mud Control

7.3 Noise Abatement

7.4 Working Hours

7.5 Drainage Control

7.6 Construction Cleaning

7.7 Dispose of Material

7.8 Parking and Storage Areas

8.0 TRAFFIC REGULATION

8.1 General

8.2 Haul Routes

8.3 Traffic Control

9.0 PROJECT OFFICE

10.0 CONTRACTOR’S SAFETY RULES
01600 Material and Equipment

1.0 STORAGE OF MATERIALS

2.0 HAZARDOUS MATERIALS

3.0 MATERIAL AND EQUIPMENT SUBSTITUTIONS

3.1 General

3.2 Substitutions

3.3 Modifications and Costs
01660 System Testing
01670 Training

1.0 GENERAL

2.0 INSTRUCTIONS

3.0 SCHEDULING

4.0 INSTRUCTION PROGRAM

5.0 LOCATION

6.0 RECORD OF TRAINING SESSIONS
01700 Contract Closeout
EXHIBIT 2 426
Table of Contents
00010-10

1.0 INSTRUCTION MANUALS

2.0 EQUIPMENT START-UP

3.0 FINAL CLEANING

3.1 Final Clean-up

3.2 Final Building Clean-up

4.0 PROJECT COMPLETION

4.1 Substantial Completion

4.2 Final Completion

4.3 Project Record Documents

5.0 GUARANTEE
EXHIBIT 2 427
Notice Inviting Bids
00020-1
SECTION 00020 - NOTICE INVITING BIDS
NOTICE IS HEREBY GIVEN that sealed bids are invited by the City of Stockton, California to provide all labor, materials, equipment, and perform all work necessary for the construction of the Alexandria & 14- Mile Storm Pump Station Electrical Upgrades and in accordance with the plans and specifications for Project Number US24001.

The work includes: The Contractor shall provide all labor, materials, equipment and incidentals necessary to install approximately 425 feet of conduit along Alexandria Place and connect to an existing POC; furnish and install a new main service/motor control center and connect as shown on the plans; provide electrical upgrades per the lift station reconnection plan; provide instrumentation, controls, and connection to SCACA cabinet; and provide training and O&M manuals to City Staff.

The work shall be performed in accordance with the intent of the Contract Documents, including as stated in the Contract and the Technical and Special Provisions, excluding only the work indicated or specified to be provided by the City or others under separate contract or other arrangement. In the event of a conflict between the Project Specifications and the City of Stockton Standard Specifications and Plans, the Project Specifications shall take precedence.

The project specifications and plans can be downloaded from the City of Stockton’s website at http://www.stocktongov.com/services/business/bidflash/mud.html?dept=Municipal_Utilities; however, official bid documents including plans, specifications, and a plan holder number, must be obtained from ARC Document Solutions in order to bid this project. The completed official sealed bid packet, including the plan holder number, must be delivered to the Office of the City Clerk, City Hall, 425 North El Dorado Street, Stockton, California 95202, up to, but not later than 2:00 p.m., on Thursday, July 3, 2025.

A non-mandatory pre-bid conference will be held at 10:00 a.m., Thursday, June 19, 2025 at Alexandria & 14-Mile Storm Pump Station, 5935 Alexandria Place, Stockton, California 95207.

Prospective bidders shall monitor City’s website/bid flash for any project addenda or updates.

As prescribed in the Instructions to Bidders for this project, a bid guaranty in an amount not less than ten percent [10%] of the total base bid price, plus additives, if any, and conforming to the prescribed bidding procedures is required to be submitted with each bid, as a guaranty to be forfeited should the bidder, if awarded the Contract, fail to enter into the same, or fails to furnish in a timely manner the bonds and/or proof of insurance. Each bid shall also be accompanied by the Non-Collusion Declaration, and all of the other required documents and information furnished in the official bidding documents. Each bid shall be enclosed in a sealed envelope clearly marked "BID" and shall indicate the project name, project number, bid opening date, and contractor's name and address. Bidders and the public are invited to be present at the public opening and declaration of said bids. Official bid documents received after the designated time will not be accepted. No bidder may withdraw its bid for a period of sixty (60) days after the date set for the opening of bids.

The project is to be substantially completed within one hundred eighty (180) consecutive calendar days from the date specified in the Notice to Proceed, and final completion will be achieved thirty (30) consecutive calendar days thereafter. Time for commencement and completion of the work is consequential, and time is to be of the essence of the Contract.

All bidders shall be licensed under the provisions of Chapter 9, Division 3 of the Business and Professions Code of the State of California. The Contractor shall possess a valid Class "A" or "C-10" license at the time the bid is submitted and retain the license through the duration of the project. Failure to possess the specified license shall render the bid as non-responsive. The successful Contractor shall obtain a City of Stockton business license prior to contract execution and retain the license through the duration of the project.

All bidders must comply with the State of California Contractor Registration Requirements, which states all Contractors or subcontractors shall not be qualified to bid on, be listed in a bid proposal, subject to the requirements of Section 4104 of the Public Contract code, or engage in the performance of any contract for public work, as defined in the this chapter, unless currently registered and qualified to perform public work pursuant to Labor Code Section 1725.5.

In compliance with Senate Bill 854 and the California Labor Code, all bidders shall include with their bid proof of registration from the Department of Industrial Relations that includes the contractor’s legal EXHIBIT 2 428
Notice Inviting Bids
00020-2
name, registration number, license type/number, registration date and expiration date, for every contractor and subcontractor, regardless of tier. Submittal of subcontractor’s registration information regardless of tier is due no later than four business days after bid opening.

The general prevailing rate of wages for each craft or type of worker or mechanic needed to perform the Contract is on file with the City of Stockton. Bidders are hereby notified that the successful bidder and any subcontractor under that contract shall pay prevailing wage rates in performing the Contract.

This project is subject to compliance monitoring and enforcement by the Department of Industrial Relations. Contractors must submit their certified payroll records directly to the Division of Labor Standards Enforcement Compliance Monitoring Unit, as well as the City of Stockton.

Pursuant to Stockton Municipal Code Section 3.68.090 preference shall be given to the purchase of supplies, materials, equipment, and contractual services from local merchants, quality and price being equal. Local merchants who have a physical business location within the boundaries of San Joaquin County, and who have applied for and paid a business license tax and registration fee pursuant to Stockton Municipal Code Title 5, Chapter 5.08, License Taxes, shall be granted two (2) percent bid preference. Local merchants who have a physical business location within the boundaries of the City of Stockton Municipal Code Title 5, Chapter 5.08, License Taxes, shall be granted five (5) percent bid preference. This section is intended to provide preference in the award of certain City contracts in order to encourage businesses to move into and expand within the City.

For contracts valued at $100,000 and above, pursuant to Stockton Municipal Code Section

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

For contracts valued at $1,000,000 and above, pursuant to the implementation of the Community Workforce and Training Agreement (CWTA) adopted by the City Council on July 26, 2016, the successful bidder shall be required to comply with the provisions of the CWTA.

If the Contract is to be awarded, the Contract will be awarded to the lowest responsive, responsible bidder as defined in the Stockton Municipal Code; provided, however, the City Council reserves the right to reject any and all bids, and to re-advertise for bids or to provide for the work to be done by the City of Stockton's internal work force.

The successful bidder shall be required to furnish a Labor and Materials Bond and a Faithful Performance Bond, each in the sum of one hundred percent (100%) of the contract bid price. Said bonds shall be furnished by a company authorized to issue surety bonds in the State of California, on official forms furnished by the City, and said bonds shall be executed by the surety and contractor before or concurrently with the signing of the Contract. The acceptable surety will meet the minimum standard as set forth in the contract documents.

For information on technical data, contact Kelly Ju, Municipal Utilities Department, (209) 937-8727, e-mail: [email protected]. For information regarding the cost for the reproduction of the official bid package or to obtain a plan holders list, please contact ARC Document Solutions at 1421 N. El Dorado Street, Stockton, CA 95202, (209) 464-8724 or visit their plan room at https://customer.earc.com/arcEOC/PWELL_Main.asp?mem=23.

KATHERINE ROLAND, CMC, CPMC

CITY CLERK

CITY OF STOCKTON
EXHIBIT 2 429
Instructions to Bidders
00100-1
SECTION 00100 - INSTRUCTIONS TO BIDDERS

1.0 WORK TO BE DONE
It is the intention of the City to construct improvements as shown and set forth on the plans, specifications, profiles and detailed drawings, and in the particular locations shown on the drawings. All of the work is particularly set forth in the plans and specifications, and all of said work, together with all other work incidental thereto, is included. By submitting a bid, the bidder represents that it has the ability, qualifications and experience to perform the proposed work.

The work includes the furnishing of all labor, materials, incidentals and equipment necessary for the Alexandria & 14-Mile Storm Pump Station Electrical Upgrades (Project No. US24001). The Contractor shall be required to provide, at its own cost and expense, all necessary insurance, as required by law or these specifications, and shall pay the cost and expense of any and all incidental matters herein required.

2.0 EXAMINATION OF CONTRACT DOCUMENTS
Each bidder shall thoroughly examine and become familiar with the Contract Documents. The submission of a bid shall constitute an acknowledgment upon which the City may rely, and shall constitute conclusive evidence, that the bidder has thoroughly examined and is familiar with the Contract Documents. The failure or neglect of a bidder to receive or examine any of the Contract Documents shall in no way relieve it from any obligation with respect to its proposal or to the Contract. No claim for additional compensation will be allowed which is based upon a lack of knowledge of any Contract Documents.

3.0 INSPECTION OF SITE
Bidders are required to inspect the site of the work to satisfy themselves by personal examination or by such other means as they may prefer, of the location of the proposed work, and of the actual conditions, including subsurface, of and at the site of work. If, during the course of its examination, a bidder finds facts or conditions which appear to be in conflict with the letter or spirit of the bidding documents, the Bidder may apply to the City, in writing, for additional information and explanation before submitting its bid.

Submission of a bid by the bidder shall constitute conclusive evidence that, if awarded the Contract, it has relied and is relying on its own examination of:
a. The site of the work.
b. Access to the site.
c. All other data and matters requisite to the fulfillment of the work and on its own knowledge of existing facilities on and in the vicinity of the site of the work to be constructed under the Contract. d. The conditions to be encountered.
e. The character, quality and scope of the proposed work. f. The quality and quantity of the materials to be furnished. g. The requirements of the bid, the plans, the specifications, and the other Contract Documents.

EXHIBIT 2 430
Instructions to Bidders
00100-2
The information provided by the City is not intended to be a substitute for, or a supplement to the independent verification by the bidder to the extent such independent investigation of site conditions is deemed necessary or desirable by the bidder.

3.1 PRE-BID CONFERENCE
The City may hold a pre-bid conference prior to the bid opening date. The pre-bid conference is held to answer questions bidders may have, provide bidders with access to the site, discuss important contract considerations, and provide any clarifications that may have come to the City’s attention.

Bidders may be required to attend the pre-bid conference on the date indicated on the specifications. If any bidder fails to attend the pre-bid conference when it is indicated as being mandatory on the specifications, then their bid will be deemed non-responsive, which will result in bid rejection.

4.0 INTERPRETATION OF CONTRACT DOCUMENTS
Oral representations or interpretations by the City as to the meaning of the Contract Documents shall have no legal or binding effect. Requests for an interpretation shall be made in writing and delivered at least ten (10) days before the time announced for opening the bids to:

Kelly Ju
Project Manager
Municipal Utilities Department
2500 Navy Drive
Stockton, CA 95206
The City's response to requests to clarify the source of materials, equipment, suppliers or any other such matter which does not modify, change, increase, or decrease the scope of work requires no action by the City other than a response to the bidder requesting the clarification. The City's response to written requests to clarify possible ambiguous or incomplete statements or designs, or any other such clarification which modifies, changes, increases or decreases the scope of work, requires issuance of an addendum by the City for the interpretation to become effective. It is the City's sole discretion whether or not to issue an addendum in response to a request for clarification.

5.0 POSTPONEMENT OF OPENING
The City reserves the right to postpone the date and time for receiving and/or opening of bids at any time prior to the date and time established in the Notice Inviting Bids. Postponement notices shall be mailed to planholders of record in the form of addenda.

6.0 OPENING OF BIDS
All bids except those which do not contain a bid security, irrespective of any other irregularities or informalities, if received on time, will be opened and publicly read aloud at the time and place set forth in the Notice Inviting Bids. Bidders, their representatives and other interested persons may be present at the opening and reading of bids.

Any bids received after the time for receiving and opening bids as set forth in the Notice Inviting Bids or as postponed by addenda will be considered non-responsive and will not be opened. Any such bids will be returned unopened to the Bidder.

The public reading of each bid will include at least the following:

EXHIBIT 2 431
Instructions to Bidders
00100-3
a. Name of bidder.
b. The total amount of bid.
c. The nature and amount of the security furnished with the bid.

7.0 PREPARATION OF BID FORMS
Bids shall be submitted on the official bid documents and must be submitted at the time and place stated in the Notice Inviting Bids. All blanks in the bid forms must be appropriately filled in, either in ink or typed, and all prices must be stated in figures. All bids must be submitted in sealed envelopes bearing on the outside the name of the bidder, its address, the bidder's planholder number, the date of the bid opening, and the name and project number of the project for which the bid is submitted. It is the sole responsibility of the bidder to see that its bid is received in proper time. Any bid received after the scheduled closing time for receipt of bids will be returned to the bidder unopened. City shall not be responsible for errors or omissions in the bid. Bidders shall write their names on each bid form at the space provided.

8.0 BIDDER'S SIGNATURE AND AUTHORITY
If the bid is made by an individual, his/her name, signature, and post office address must be shown; if made by a firm or partnership, the name and post office address of the firm or partnership, a list of the partners, and the signature of at least one of the general partners must be shown; if made by a corporation, the bid shall show the name of the state under the laws of which the corporation is chartered, the name and post office address of the corporation, and the title of the person who signs on behalf of the corporation. If the bid is made by a joint venture, the bid shall be signed by a representative of one of the joint venture firms.

9.0 ERASURES AND CORRECTIONS
The bid submitted must not contain any erasure, interlineations, or other corrections unless each such correction is suitably authenticated by affixing in the margin immediately opposite the correction the initial or initials of the person or persons submitting the bid.

10.0 BID IRREGULARITIES
Changes in or additions to the bid form, recapitulations of the work bid upon, alternative bids, or any other modifications of the bid form which are not specifically called for in the Contract Documents may result in rejection of the bid by the City, as not being responsive to the Notice Inviting Bids. No oral or telephonic modification of any bid submitted will be considered. The City retains the right to waive minor irregularities it determines to have no impact on the Contract.

11.0 MODIFICATION OF BID
On written request filed with the City, a bid already received may be modified or withdrawn at any time prior to the time established for receiving bids. The request must be executed by the bidder or its authorized representative as described in Paragraph 00100-8.0, Bidder's Signature and Authority. Modifications shall be made in writing, executed, and submitted in the same form and manner as the original bid. Withdrawal of a bid does not prejudice a bidder's right to submit a new bid within the time designated for the submission EXHIBIT 2 432
Instructions to Bidders
00100-4
of bids. No bid may be withdrawn after the time established for receiving bids except as provided in Paragraph 00100-12.0, Withdrawal of Bids.

12.0 WITHDRAWAL OF BIDS
In accordance with the Stockton Municipal Code, withdrawal of bids is not allowed after the time noticed for the opening of bids. In case of a materially significant error, a bidder desiring to withdraw shall give written notice to the City, specifying, in detail, how the mistake occurred and how the mistake made the bid materially different than it was intended to be. Withdrawal will not be permitted for mistakes resulting from errors in judgment or carelessness in inspecting the site of the work or in reading the Contract Documents.

At the City's sole discretion, the bid may be deemed non-responsive due to the materially significant error.

13.0 ADDENDA
The Director of Municipal Utilities has the authority to issue any and all Addenda prior to the bid opening date. Addenda issued during the time of bidding shall become a part of the documents furnished to bidders for the preparation of bids, shall be covered in the bids, and shall be made a part of the Contract. Each bid shall include specific acknowledgment in the space provided of receipt of all Addenda issued during the bidding period. Failure to so acknowledge shall result in the bid being rejected as not responsive. Failure of any bidder to receive such Addenda shall not be grounds for non-compliance with the terms of the instructions.

14.0 BID PRICES
Bid prices shall include, whether additive or deductive, everything necessary for the completion of the work, including but not limited to, providing the materials, equipment, tools, fabrication, delivery, installation, plant and other facilities, and the management, superintendence, labor, overhead, profit, and services. Bid prices shall include all taxes required by Paragraph 00700-8.1.3, Payment of Taxes. No tax exemption certificate or any document designed to exempt the Contractor from payment of any tax will be furnished to the Contractor by the City, as to any tax on labor, services, materials, transportation, or any other items furnished pursuant to the Contract. Quote prices for the exact amount for all work required to complete the respective item as described and shown in the Contract Documents.

For unit price bid items, if the product of a unit price and an estimated quantity does not equal the extended amount quoted, the unit price shall govern, and the correct product of the unit price and the estimated quantity shall be deemed to be the amount bid. If the sum of two or more items in a bidding schedule does not equal the total amount quoted, the individual item amounts shall govern and the correct total shall be deemed to be the amount bid.

15.0 BID GUARANTY
The bid form shall be accompanied by a bid guaranty bond provided by a surety company licensed and authorized to carry on business in the State of California, by a certified or cashier's check, payable to the City, or cash, in the sum of at least ten (10) percent of the total amount of the base bid price, plus additives, if any. The amount payable to the City under the bid guaranty bond, or the certified or cashier's check and the amount thereof, as the case may be, shall be forfeited to the City as liquidated damages in case of a failure or neglect of the bidder to furnish, execute, and deliver to the City the required performance and payment bonds, evidences of insurance; and to enter into, execute, and deliver to the City the Agreement EXHIBIT 2 433
Instructions to Bidders
00100-5
on the form provided herewith, within ten (10) calendar days after receiving written notice from the City that the award has been made and the Agreement is ready for execution.

The bid guarantees of the three lowest bidders will be retained until the Agreement is signed, evidence of insurance provided, and satisfactory bonds furnished or other disposition made thereof. The bid guarantees of all bidders, except the three lowest responsive bids, will be returned within 15 calendar days after the bids are opened.

16.0 QUALIFICATION OF BIDDER
Upon the request of City, any bidder whose bid is under consideration for the award of the Contract shall promptly submit satisfactory evidence showing the bidder's financial resources, its construction experience, and its organization's availability for the performance of the Contract.

The bidder may be required to establish to the satisfaction of the City the reliability and responsibility of the persons or entities proposed to furnish and perform the work described in the Contract Documents.

City Employees and Design Engineers May Not Bid on Construction Contracts. No employee of the City shall be eligible to submit a proposal for, nor to subcontract for any portion of, nor to supply any materials for any contract administered by the City.

No engineering or architectural firm which has provided design services for a project shall be eligible to submit a proposal for the contract to construct the project nor to subcontract for any portion of the work.

The ineligible firms include the prime contractor for design, subcontractors of portions of the design, except for surveyors and geotechnical subcontractors and affiliates of either. An affiliate is a firm which is subject to the control of the same persons, through joint ownership or otherwise.

17.0 SUBCONTRACTORS
In accordance with California Public Contract Code Section 4100, et. seq., each bid shall have listed in the official bid documents, the name, portion of work to be performed, and location of the place of business of each subcontractor who will perform work or labor or render service to the bidder in or about the construction of the work or improvement, or of any subcontractor licensed by the State of California who, under subcontract to the bidder, will specially fabricate and install a portion of the work or improvement according to detailed drawings contained in the plans and specifications, in an amount in excess of one-half of one percent of the bidder's total bid.

Failure to list subcontractors may render the bid non-responsive and may be grounds for rejection of the bid. Failure to comply with the provisions of the California "Subletting and Subcontracting Fair Practices Act" shall make the Contractor subject to the sanctions as set forth in the Act. All work, in excess of onehalf of one percent of the bidder's total bid, for which a subcontractor is not listed in the official bid documents, shall be performed by the Contractor's own organization.

The Contractor shall perform at a minimum the percentage of work specified in Section 01010-11.0, CONTRACTOR'S WORK PERCENTAGE, with its own forces and shall not subcontract out this portion of work. The Contractor shall perform that contract work with his own organization, except that any designated "Specialty Items" may be performed by subcontract and the amount of any such "Specialty Items" so performed may be deducted from the original total contract price before computing the amount of work required to be performed by the Contractor with his own organization. When items of work in the BID SCHEDULE, are preceded by the letter (S), said items are designated "Specialty Items." The City may EXHIBIT 2 434
Instructions to Bidders
00100-6
also determine, on a case by case basis, items to be designated "Specialty Items." Where an entire item is sub-contracted, the value of work subcontracted will be based on the contract item bid price. When a portion of an item is sub-contracted, the value of work subcontracted will be based on the estimated percentage of the contract item bid price, determined from information submitted by the Contractor, subject to approval by the City

18.0 MAJOR EQUIPMENT ITEMS
Intentionally left blank

19.0 SUBSTITUTIONS DURING BIDDING
Manufacturers or suppliers of materials and equipment may offer an alternative product to the Contractor, except where alternatives or substitutes are specifically excluded, and request that alternatives to specified products be considered equal. Inclusion of such alternatives in the bid is the responsibility of the Contractor.

Inclusion should only be considered if the Contractor believes the offered alternative is equal in quality and performance to the specified product. After award of the Contract, such offers of alternative products will be reviewed and processed as a substitution as provided under Section 01600, MATERIAL AND EQUIPMENT. Inclusion or offers of alternative products will not be reviewed or processed during the bidding period.

20.0 BIDDERS INTERESTED IN MORE THAN ONE BID
No person, firm, or corporation, under the same or different name, shall make, file, or be interested in more than one bid for the same work unless alternate bids are called for. A person, firm, or corporation may, however, submit sub proposals or quote prices on materials to more than one bidder.

Bidders shall execute and furnish with their bids, the NON-COLLUSION DECLARATION furnished in the official bid documents. Reasonable grounds to believe that any individual, partnership, corporation, or combination is interested in more that one bid for the proposed work may cause rejection of all bids in which that individual, partnership, corporation, or combination is interested.

21.0 SHEETING, SHORING AND BRACING
Pursuant to the provisions of California Labor Code Section 6707, each bid submitted shall contain, if the bid item is indicated, the amount included in its bid for adequate sheeting, shoring, and bracing, or equivalent method, for the protection of life and limb in trenches and open excavation, which shall conform to applicable safety orders. By listing this sum, the bidder warrants that its action does not convey tort liability to the City, the Design Consultant, the Construction Manager, and their employees, agents, and sub consultants.

22.0 WAGE RATES
Pursuant to provisions of the Labor Code Section 1770, et. seq., of the State of California, the Director of the Department of Industrial Relations has ascertained the prevailing rate of per diem wages of the locality in which the Work is to be performed and applicable to the work to be done. Copies of these wage determinations are on file with the City.

Successful bidders shall promptly notify the City, in writing, about all the classifications of labor not listed in the prevailing wage determinations but necessary for the performance of the Work.

EXHIBIT 2 435
Instructions to Bidders
00100-7

23.0 OFFER OF ASSIGNMENT OF ANTITRUST ACTIONS
As provided by Section 4552, et. seq., of the California Government Code, in submitting a bid to the City, the bidder offers and agrees that if the bid is accepted, it will assign to the City all rights, title, and interest in and to all causes of action it may have under Section 4 of the Clayton Act (15 U.S.C. Section 15) or under the Cartwright Act (Chapter 2 [commencing with Section 16700] of Part 2 of Division 7 of the Business and Professions Code), arising from purchases of goods, materials, or services by the bidder for sale to the City pursuant to the bid.

24.0 ASSIGNMENT OF CONTRACT
The Contractor shall not assign any part of this Contract unless it complies with Section 00700-1.5, SUCCESSORS AND ASSIGNS.

25.0 REJECTION OF BIDS
The City reserves the right to reject any and all bids and further reserves the right to reject any bids which are non-responsive, incomplete, obscure, or irregular; any bids which omit a bid on any one or more items on which the bids are required; any bids in which unit prices are unbalanced in the opinion of the City; any bids accompanied by insufficient or irregular bid guaranty; any bids from bidders who have previously failed to perform properly or to complete on time contracts of any nature; and any bidder who fails to provide satisfactory documentation of its qualifications as required by Section 00100-16.0, QUALIFICATION OF BIDDER. The City reserves the right to waive irregularities.

26.0 CONTRACT AND BONDS
The successful bidder will be required to furnish, in duplicate counterpart, a Labor and Material Bond on forms provided by the City, in an amount equal to one hundred percent (100%) of the Contract Price, a Faithful Performance Bond in an amount equal to one hundred (100%) of the Contract Price, and evidences of insurance. Said insurance and bonds shall be secured from a surety company satisfactory to the City.

The form of contract, and the forms of bonds, as provided in Section 00500, which the successful bidder as Contractor will be required to execute and furnish shall be carefully examined by the bidder. The Faithful Performance Bond is to secure the faithful performance of the Contract, and the Labor and Material Bond is to secure the payment of those to whom the bidder may become legally indebted for labor, materials, tools, equipment, or services of any kind used or employed by the bidder in performing the work.

The Faithful Performance Bond will be retained by the City of Stockton for twelve (12) months following final acceptance by the City of the improvements to guarantee correction of failure attributable to workmanship and materials. Upon said final acceptance by the City, the amount of the Faithful Performance Bond may be reduced to twenty percent (20%) of the actual improvement construction costs, at the sole discretion of the City.

The bonds required of the Contractor shall be furnished by a company authorized to do a surety business in the State of California: said bonds shall be executed by the surety and Contractor before or concurrently with the signing of the contract. The form of said bonds must be approved by the City Attorney and the surety of sureties must be approved by the City Finance Director.

EXHIBIT 2 436
Instructions to Bidders
00100-8
All alterations, extensions of time, extra or additional work and other changes authorized by these specifications, or any part of the Contract may be made without securing the consent of the surety on the contract bonds.

27.0 AWARD OF CONTRACT
Within sixty (60) days after the time of opening of the bids, the City will act either to accept a bid, to reject all bids or with the consent of the bidders and their sureties to extend the time in which the City may act.

Nothing set forth herein shall limit the ability of the City to agree with the lowest responsive, responsible bidder to extend the time for the City to award the Contract to said bidder. The Award of Contract shall obligate the bidder whose bid is accepted to furnish performance and Labor and Material bonds and evidences of insurance, and to execute the Agreement in the form set forth in the Contract Documents.

The Contract will require the completion of the work according to the Contract Documents.

If award is made, it will be based on the lowest responsive, responsible bid whose summation of the base bid and City selected alternates yields the lowest total Contract price. Selection of any or all alternates shall be at the sole discretion of the City.

28.0 EXECUTION OF CONTRACT
The Agreement shall be executed by the successful bidder and returned, together with the Contract bonds and evidences of insurance, within ten (10) days after receiving the Contract. Time is of the essence in this regard. After execution by City, one copy of the Agreement shall be returned to Contractor.

The failure to execute the Contract Documents or to furnish the bonds or insurance required by these instructions within ten (10) days after receiving the Contract constitutes a default. In the event of a default, the City may award the Contract to the next lowest bidder or may re-advertise for bids. The City may charge against the defaulting bidder the greater of (1) the amount of the bid bond, or (2) the difference between the amount of the bid and the amount for which a Contract for the work is subsequently executed, irrespective of whether the amount thus due exceeds the amount of the bid bond. If a more favorable bid is received by re-advertising, the defaulting bidder shall have no claim against the City for a refund.

29.0 BUSINESS LICENSE
The Contractor must obtain and maintain a valid City of Stockton business license prior to execution of the Contract and throughout the fiscal periods embraced by the duration of the Contract.

30.0 CONSTRUCTION AND DEMOLITION DEBRIS
In order to comply with the California Integrated Waste Management Act of 1989, Assembly Bill 939, the City of Stockton requires that construction and demolition projects recycle a minimum of fifty percent (50%) of all discarded materials generated by the projects to divert project waste from the landfills. a. CONSTRUCTION AND DEMOLITION RECYCLING PLAN
This plan is meant to assist contractors with identifying the types and quantities of materials that will be generated as a result of the project in order to find diversion outlets for these materials.

Once the Contract has been awarded, the contractor is required to complete and submit a Construction/Demolition (C&D) Recycling Plan prior to receiving a Notice to Proceed. The plan should be submitted to the Project Manager at the pre-construction meeting. The City may also request additional information, as necessary.

EXHIBIT 2 437
Instructions to Bidders
00100-9
b. CONSTRUCTION AND DEMOLITION DEBRIS RECYCLING REPORT
The contractor must complete the Construction and Demolition (C&D) Debris Recycling Report within thirty (30) days of construction or demolition project completion (Notice of Completion). The completed must be accompanied by the official weight tags or receipts verifying the information provided in the report and must be submitted to the City of Stockton Public Works Department, Solid Waste Division, Stewart Eberhardt Building, 22 E. Weber Ave., Room 301, Stockton, CA 95202. Failure to provide the C&D Recycling Report form will result in a five percent (5%) withholding of the contract amount.
(Recycling forms are available at http://www.stocktongov.com/files/C&D%20Package.pdf).

31.0 ESCROW OF BID DOCUMENTS
a. SCOPE

1. The Contractor shall submit, within five (5) days after the award of the Contract one (1) copy of all documentary information generated in preparation of the bid price for the project. This material is hereinafter referred to as “Escrow Bid Documents.” The Escrow Bid Documents will be held in escrow of the duration of the contract.

2. The Contractor agrees that the Escrow Bid Documents constitute all of the information used in preparation of the bid, and that no other bid preparation information will be considered in resolving claims.

3. Nothing in the Escrow Bid Documents shall change or modify the terms or conditions of the Contract.
b. TRADE SECRETS
The Escrow Bid Documents are and will always remain the property of the Contractor, subject only to joint review by the City and the Contractor, as provided in paragraph (G) “Examination.” The City stipulates and expressly acknowledges that the Escrow Bid Documents constitute trade secrets and are proprietary and confidential. This acknowledgment is based on the City’s express understanding that the information contained in the Escrow Bid Documents is not known outside the Contractor’s business, is known only to a limited extent and only by a limited number of employees of the Contractor, is safeguarded while in Contractor’s possession, is extremely valuable to Contractor and could be extremely valuable to Contractor’s competitors by virtue of it reflecting Contractor’s contemplated techniques of construction. City acknowledges that the Contractor expended substantial sums of money in developing the information included in the Escrow Bid Documents and further acknowledges that it would be difficult for a competitor to replicate the information contained therein. City further acknowledges that the Escrow Bid Documents and the information used in the Contractor’s business, were intended to give the Contractor an opportunity to obtain an advantage over competitors who do not know of or use the contents of the documentation. City agrees to safeguard the Escrow Bid Documents and all the information contained therein against disclosure to the fullest extent permitted by law. c. PURPOSE
Escrow Bid Documents will be used to assist in the negotiation for the settlement of claims. They will not be used for evaluation of the Contractor’s anticipated methods of construction or to assess the Contractor’s qualification for performing the work. d. FORMAT AND CONTENTS
EXHIBIT 2 438
Instructions to Bidders
00100-10

1. Contractor may submit Escrow Bid Documents in the usual cost-estimating format. Escrow Bid Documents shall be adequate to enable complete understanding and proper interpretation for their intended use.

2. Escrow Bid Documents shall clearly itemize the estimated costs of performing the work.

Items shall be separated into sub-items as required to present a complete and detailed cost estimate and allow a detailed cost review. The Escrow Bid Documents shall include all quantity takeoffs, labor, equipment, calculations of rate production and progress, copies of quotations from subcontractors and suppliers, and memoranda, narratives, consultant’s reports, add/deduct sheets, and all other information used by the Contractor to arrive at the prices contained in the bid proposal. Estimated costs shall be broken down into the Contractor’s usual estimate categories such as direct labor, repair labor, material, equipment, construction equipment operation, construction equipment ownership, expendable materials, materials and subcontractor cost as appropriate. Plant and equipment, indirect costs shall be detailed in the Contractor’s usual format. The Contractor’s allocation of plant and equipment, indirect costs, contingencies, markup and other items shall be included.

3. All costs shall be identified for all items. Sub-items amounting to less than $10,000.00 estimated unit costs are acceptable without a detailed cost estimate, provided that labor, equipment, materials, construction equipment, expendable materials and subcontracts, as applicable, are included, and provided that indirect costs, contingencies, and mark-up, as applicable, are allocated.

4. Bidding materials provided by the City shall not be included in the Escrow Bid Documents unless needed to comply with the requirements of this specification. e. SUBMITTAL

1. The Escrow Bid Documents shall be submitted by the Contractor in a sealed container(s) within five (5) days after the day of award of the contract. The container shall be clearly marked on the outside with the Contractor’s name, date of submittal, project name and the words “Escrow Bid Documents.”

2. The Escrow Bid Documents shall be accompanied by an index to inventory the contents of the submittal and a Bid Documentation Certification, signed by the individual who executed the bidding proposal, stating that the material in the Escrow Bid Documents constitutes all documentary information used in preparation of the bid and that he/she has personally examined the contents of the Escrow Bid Documents container and has found that the documents in the container(s) are complete and organized as shown by the Contractor’s index.

3. City shall examine the index. This examination is to ensure that the index is detailed and complete and conforms to the “format and contents” as stated in paragraph (d) above. If all the documentation required in paragraph (d) “Format and Contents” has not been indexed in the original submittal a revised index shall be submitted at the City’s discretion.

Timely submission of complete Escrow Bid Documents is an essential element of the Contractor’s responsibility. FAILURE TO PROVIDE THE NECESSARY ESCROW BID

DOCUMENTS MAY BE SUFFICIENT CAUSE FOR THE CITY TO ASSESS DAMAGES UNDER THE CONTRACT. If the Contractor’s proposal is based on subcontracting any part of the work, each subcontractor, whose total subcontract price exceeds the lesser of five percent (5%) of the total contract price proposed by the Contractor or $200,000 shall provide separate Escrow Bid Documents to be submitted with those of the Contractor.

These submittals will be examined in the same manner and at the same time as the EXHIBIT 2 439
Instructions to Bidders
00100-11
examination described above. If the Contractor wishes to subcontract any portion of the work or requests substitutions of any subcontractor after award, the City retains the right to require the Contractor to submit Escrow Bid Documents from the proposed subcontractor before the subcontract or substitution is approved. f. STORAGE
The Escrow Bid Documents will be placed in escrow, for the life of the contract, in a mutually agreeable institution. The City will pay the cost of storage. g. EXAMINATION

1. The Escrow Bid Documents shall be examined by the City, the Construction Manager and Contractor, at any time deemed necessary by either the City or the Contractor, to assist in the negotiation for the settlement of claims.

2. Examination of the Escrow Bid Documents is subject to the following conditions:
a. As trade secrets, the Escrow Bid Documents are proprietary and confidential as described in paragraph (b).
b. The City and the Contractor shall each designate, in writing to the other party and a minimum of five (5) days prior to examination, representatives who are authorized to examine the Escrow Bid Documents. No other person shall have access to the Escrow Bid Documents.
c. Access to the Escrow Bid Documents under this paragraph will take place only in the presence of duly designed representatives of both the City and the Contractor. h. FINAL DISPOSITION
The Escrow Bid Documents will be returned to the Contractor at such time as the contract has been completed and final settlement has been achieved.

32.0 BID PROTESTS
All parties wishing to file a protest shall comply with the procedures set forth below.

All protests regarding the bidding process or the award, or intended award, of any contract must be submitted in writing to the City Attorney on or before 5:00 p.m. of the fifth business day following the opening of all bids, unless a different time period is specified in the Notice Inviting Bids or other bid solicitation documents. All protests must be addressed to: City Attorney, City of Stockton, 425 North El Dorado, Stockton, CA 95202.

The party filing the protest must have actually submitted a bid for the work. A subcontractor of a bidder may not submit a bid protest.

The protest shall contain a full and complete statement specifying in detail the grounds of the protest and the facts in support thereof. The protest must be hand delivered or sent via mail so that it is received by the City Attorney within the time period set forth above. The protest document must include the following:
a. A complete statement of the factual and legal basis for the protest; b. The protest must include the name, address and telephone number of the person representing the protesting party; and
EXHIBIT 2 440
Instructions to Bidders
00100-12
c. The protesting party must concurrently transmit a copy of the written protest document and any attached documentation to all other bidders who may have a reasonable prospect of receiving the award depending upon the outcome of the protest.

The procedure and time limits set forth herein are mandatory and the bidder's sole and exclusive remedy in the event of protest. No bidder may bring an action or proceeding challenging the bidding process or any award, or intent to award, any contract unless the above procedures are followed. The failure of a party originating a protest to comply with these procedures shall constitute a waiver of any right to further pursue the protest, including filing a government code claim or legal proceeding. The City reserves the right to modify the bid protest procedures in the Notice Inviting Bids or other bid solicitation documents and to require any protesting party to submit additional or clarifying information or documentation in support of any protest.

33.0 LOCAL EMPLOYMENT
For contracts valued at $100,000 and above, pursuant to Stockton Municipal Code Section

34.0 COMMUNITY WORKFORCE AND TRAINING AGREEMENT
For contracts valued at $1,000,000 and above, pursuant to the implementation of the Community Workforce and Training Agreement (CWTA) adopted by the City Council on July 26, 2016, the successful bidder shall be required to comply with the provisions of the CWTA. *** END OF SECTION ***
EXHIBIT 2 441
Geotechnical Data
00220-1
SECTION 00220 - GEOTECHNICAL DATA

Subsoil investigations have not been conducted at the site of the work.

The Contractor should visit the site and acquaint himself with all existing conditions. Prior to bidding, contractors may make their own subsurface investigations to satisfy themselves as to site and subsurface conditions but such subsurface investigations shall be performed only under time schedules and arrangements approved in advance by the Engineer.
***END OF SECTION***
EXHIBIT 2 442
Geotechnical Data
00220-2
EXHIBIT 2 443
Bid Schedule
00300-1
SECTION 00300 – LIST OF BID ITEMS
ALEXANDRIA & 14-MILE STORM PUMP STATION ELECTRICAL UPGRADES Project No. US24001

Item
# Description Est. Quantity Unit Unit Price Total Price 1 Mobilization, Demobilization, Bonds,
Permits, and Insurance on all work 1 LS
2 Install Conduit Along Alexandria Place
and Connect to an Existing POC 425 LF
3 Furnish & Install New Main Service/Motor
Control Center and Connect as Shown
on Plans
1 LS
4 Lift Station Reconnection Plan 1 LS
5 Instrumentation, Controls, and
Connection to SCADA Cabinet 1 LS
6 Training 1 LS
7 O&M Manuals 1 LS
8 Contingency 1 LS $15,000 $15,000
TOTAL BID: The sum of Items 1 through 8
***END OF SECTION***
EXHIBIT 2 444
Bid Schedule
00300-2
EXHIBIT 2 445
Construction Contract
00500-1
SECTION 00500 - CONSTRUCTION CONTRACT
This contract is made and entered into on _____________, by and between NAME OF CONTRACTOR, a (INDICATE STATUS: STATE OF [NAME STATE] CORPORATION, PARTNERSHIP, OR SOLE PROPRIETORSHIP), with a business address at ADDRESS/CITY/STATE/ZIP, hereinafter called "CONTRACTOR," and CITY OF STOCKTON, a municipal corporation, hereinafter called "CITY." W I T N E S S E T H:

WHEREAS, plans and specifications for the construction of PROJECT NAME (PROJECT NO. xx), hereinafter called “PROJECT,” were regularly adopted by Council Motion –OR- Council Resolution No. __________________, on _________________; and
WHEREAS, the contract for said work was regularly awarded to CONTRACTOR, by Council Motion –OR- Council Resolution No. __________________, on ________________.

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

CONTRACTOR agrees:

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

2. COMPENSATION. To do and perform the work contemplated hereby in a good and workmanlike manner and to furnish all labor, materials, tools, and equipment necessary therefore at the prices specified in Exhibit A, attached hereto and by reference made a part hereof, under the direction of and to the complete satisfaction of the Director of Municipal Utilities Department of the City of Stockton.

Total compensation for services and reimbursement for costs shall not exceed ENTER CONTRACT AMOUNT, or as otherwise mutually agreed to in a Contract Change Order.

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

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

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

The Additional Insured coverage under the CONTRACTOR’s policy shall be “primary and non-contributory” and will not seek contribution from the City of Stockton’s insurance or self-insurance and shall be at least as broad as ISO CG 20 01 04 13.

The limits of insurance required in this agreement may be satisfied by a combination of primary and umbrella or excess insurance. Any umbrella or excess insurance shall contain or be endorsed to contain a provision that such coverage shall also apply on a primary and non-contributory basis for the benefit of the EXHIBIT 2 446
Construction Contract
00500-2
City of Stockton (if agreed to in a written contract or agreement) before the City of Stockton’s own insurance or self-insurance shall be called upon to protect it as a named insured.

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

Policies containing any self-insured retention (SIR) provision shall provide or be endorsed to provide that the SIR may be satisfied by either the named insured or the CITY.

The CITY reserves the right to obtain a full certified copy of any insurance policy and endorsements.

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

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

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

4. INDEMNITY AND HOLD HARMLESS. To the fullest extent permitted by law, Contractor shall hold harmless, defend, and indemnify City of Stockton and its officers, officials, employees, and volunteers from and against all claims, damages, losses, and expenses including attorney fees arising out of the performance of the work described herein, caused in whole or in part by any negligent act or omission of the Contractor, any subcontractor, anyone directly or indirectly employed by any of them, or anyone for whose acts any of them may be liable, except where caused by the active negligence, sole negligence, or willful misconduct of the City of Stockton. This obligation is independent of, and shall not in any way be limited by, the minimum Insurance obligations contained in this agreement. These obligations shall survive the completion or termination of this agreement.

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

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

6. WORKING DAYS. It is agreed by the parties to the contract that in case all the work called for under the contract in all parts and requirements, is not finished or completed within the number of days as set forth, damage will be sustained by the CITY, and that it is and will be impracticable and extremely difficult to ascertain the actual damage which CITY will sustain in the event of and by reason of such delay; and it is therefore agreed that CONTRACTOR will pay to CITY the sum of XXX AND NO/100 DOLLARS EXHIBIT 2 447
Construction Contract
00500-3
($XXX) per day for each and every calendar day's delay in finishing the work in excess of the number of days prescribed; and CONTRACTOR agrees to pay said liquidated damages as herein provided, and in case the same are not paid, agrees that CITY, may deduct the amount thereof from any monies due or that may become due CONTRACTOR under the contract.

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

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

If CONTRACTOR is delayed by reason of alterations made in these specifications, or by any act of the Director of Municipal Utilities Department or of the CITY, not contemplated by the contract, the time of completion shall be extended proportionately and CONTRACTOR shall be relieved during the period of such extension of any claim for liquidated damages, engineering or inspection charges or other penalties.

CONTRACTOR shall have no claim for any other compensation for any such delay.

7. CONFORMANCE TO APPLICABLE LAWS. Contractor shall comply with all applicable Federal, State, and Municipal laws, rules, and ordinances. Contractor shall not discriminate in the employment of persons or in the provision of services under this Contract on the basis of any legally protected classification, including race, color, national origin, ancestry, sex or religion of such person.

a. TITLE VI
Title VI of the Civil Rights Act of 1964 requires that “no person in the United States shall, on the grounds of race, color, or national origin, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity receiving federal financial assistance.” (42 USC Section 2000d)
http://www.dol.gov/oasam/regs/statutes/titlevi.htm.

The City of Stockton requires compliance with the requirements of Title VI in all of its programs and activities regardless of funding source.
b. DISCRIMINATION AND HARASSMENT POLICY
The City of Stockton has a Discrimination and Harassment Policy (Exhibit C). The purpose of this policy is to reaffirm the CITY’s commitment to demonstrating respect for all individuals by strictly prohibiting discrimination and harassment, including sexual harassment in the workplace, to define the types of behavior and conduct prohibited by this policy, and to set forth a procedure for reporting, investigating, and resolving complaints of discrimination and harassment in the workplace.

EXHIBIT 2 448
Construction Contract
00500-4

c. LABOR STANDARDS PROVISIONS/CALIFORNIA LABOR CODE
The bidder shall understand that conditions set forth in Division 2, Part 7, Chapter 1, Article 2, Wages of the California Labor Code shall be considered part of the contract agreement. https://leginfo.legislature.ca.gov/faces/codes_displayText.xhtml?lawCode=LAB&division=

2.&title=&part=7.&chapter=1.&article=2.
d. PREVAILING WAGE
CONTRACTOR and any subcontractor shall pay each employee engaged in the trade or occupation not less than the prevailing hourly wage rate. In accordance with the provisions of Section 1770 of the Labor Code, the Director of Department of Industrial Relations of the State of California has determined the general prevailing wage and employer payments for health and welfare, pension, vacation, travel time, and subsistence pay as provided for in Section 1773.1, apprenticeship or other training programs authorized by Section 3093 and similar purposes applicable to the work to be done. CONTRACTOR performing the work under this contract shall obtain a copy of the wage rate determination and shall distribute copies to each subcontractor. As the wage determination for each craft reflects an expiration date, it shall be the prime CONTRACTOR and each subcontractor's responsibility to ensure that the prevailing wage rates of concern is current and paid to the employee.
i. The CONTRACTOR performing the work shall be responsible for obtaining a copy of the State wage rate determination. State wage rates may be obtained at http://www.dir.ca.gov/OPRL/pwd/Determinations/Northern/Northern.pdf. The CONTRACTOR shall be responsible for posting said wage rates at a prominent location at the work site and shall maintain same in a good readable condition for the duration of the work.
ii. Should the CONTRACTOR choose to work on a Saturday, Sunday or on a holiday recognized by the Labor Unions, the CONTRACTOR shall reimburse the CITY the actual cost of engineering, inspection, superintendence, and or other overhead expenses which are directly chargeable to the contract. Should such work be undertaken at the request of the CITY, reimbursement will not be required. To conform strictly with the provisions of Division 2, Part 7, Chapter 1, Article 2, of the Labor Code of the State of California. To forfeit as a penalty to CITY the sum of TWENTY-FIVE AND NO/100 DOLLARS ($25.00) for each laborer, worker, or mechanic employed by CONTRACTOR, or by any subcontractor under CONTRACTOR, in the execution of this contract, for each calendar day during which any laborer, worker, or mechanic is required or permitted to work more than eight (8) hours and who is not paid the general prevailing rate of per diem wages for holiday and overtime work in violation of the provisions of Sections 1770 to 1781 of the Labor Code of the State of California. That all sums forfeited under the provisions of the foregoing sections shall be deducted from the payments to be made under the terms of this contract.
iii. The CONTRACTOR to whom the contract is awarded shall ensure that the prime and each subcontractor will in accordance with Section 1776 of the Labor Code, maintain certified payroll records. A copy of said records shall be provided with each invoice to the Municipal Utilities Department, Attention Contract Compliance Officer. It shall be the CONTRACTOR’S responsibility to obtain copies of the current prevailing wage rate determination for all subcontractors. Additionally, certified payroll records must be uploaded to the DIR website as required by labor code.

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

e. LOCAL EMPLOYMENT ORDINANCE
For contracts valued at $100,000 and above, pursuant to Stockton Municipal Code Section

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

For contracts valued at 1,000,000 and above, pursuant to the implementation of the Community Workforce Training Agreement (CWTA) adopted by the City Council on July 26, 2016, the successful bidder shall be required to comply with the provisions of the CWTA. For any project subject to this Agreement, the Local Hire, Priority Apprentice and Workforce Development Program requirements shall apply in lieu of the requirements of Stockton Municipal Code Section 3.68.095 and no separate compliance with Section

3.68.095 will be required of the Contractors/Employers working on the project. g. SANCTIONS
Deliverables must conform with all applicable federal, state, and local laws. Such conformity includes compliance with federal sanctions, and Contractor Certifies that it has not and will not engage in prohibited transactions with sanctioned persons or entities.

CITY agrees:

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

9. SECURITIES. Pursuant to Section 22300 of the Public Contract Code, CONTRACTOR will be permitted, at its request and sole expense, to substitute securities for any monies withheld by the CITY to ensure performance under the contract. Said securities will be deposited either with the CITY or with a State or federally chartered bank as escrow agent. Securities eligible for this substitution are those listed in Section 16430 of the California Government Code or bank or savings and loan certificates of deposit.

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

10. CHANGE ORDERS. CITY reserves the right to make such alterations, deviations, additions to or omissions from the plans and specifications, including the right to increase or decrease the quantity of any item or portion of the work, as may be deemed by the Engineer to be necessary or advisable EXHIBIT 2 450
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and to require such extra work as may be determined by the Engineer to be required for the proper completion or construction of the whole work contemplated.

Any such changes will be set forth in a contract change order which will specify, in addition to the work done in connection with the change made, adjustment of contract time, if any, and the basis of compensation for such work. A contract change order will not become effective until approved by the City Manager and/or the City Council.

Processing of change orders shall be in accordance with Section 4-1.05A of the City of Stockton Standard Specifications and Plans as adopted by Council on September 27, 2016, by Resolution No. 2016-09-27- 1213, effective September 27, 2016, or as otherwise amended by Council. When the compensation for an item of work is subject to adjustment under the provisions of Standard Specifications and Plans, Section 4-

1.05A, CONTRACTOR shall, upon request, promptly furnish the Engineer with adequate detailed cost data for such item of work.

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

CONTRACTOR agrees that CITY or its delegate will have the right to review, obtain and copy all records pertaining to performance of the contract. CONTRACTOR agrees to provide CITY or its delegate with any relevant information requested and shall permit CITY or its delegate access to its premises, upon reasonable notice, during normal business hours for the purpose of interviewing employees and inspecting and copying such books, records, accounts, and other material that may be relevant to a matter under investigation for the purpose of determining compliance with this requirement. CONTRACTOR further agrees to maintain such records for a period of three (3) years after final payment under the contract.

12. WAIVER. It is expressly understood and agreed by and between the parties hereto that a waiver of any of the conditions of this contract shall not be considered a waiver of any of the other conditions thereof.

It is further understood and agreed by and between the parties hereto that time is of the essence of this contract in all respects.

IN WITNESS WHEREOF, the parties hereto have hereunto affixed their hands and seals the day and year first above written.

ATTEST: CITY:

KATHERINE ROLAND, CMC, CPMC

CITY CLERK

CITY OF STOCKTON
By:

By: WILL CREW

ACTING CITY MANAGER
APPROVED AS TO FORM & CONTENT:

LORI ASUNCION

OFFICE OF THE CITY ATTORNEY
By:

LIST NAME OF CONTRACTOR
By:

ASSISTANT CITY ATTORNEY
Tax Identification No.

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LOCAL EMPLOYMENT ORDINANCE
This contract is subject to the requirements of the City of Stockton’s Local Employment Ordinance. By my signature below, I certify that I have read and understood the Local Employment Ordinance of the City of Stockton, and agree to abide by its provisions. If selected to perform this contract, I specifically agree to report data on the actual number of Stockton residents employed, and understand that data will be subject to verification by an independent auditor.

Signature of Bidder

Date Signed
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Addendum A

CITY OF STOCKTON COMMUNITY WORKFORCE AND TRAINING AGREEMENT

AGREEMENT TO BE BOUND
The undersigned, as a Contractor or Subcontractor, including construction material trucking company/entity, (CONTRACTOR) on the City of Stockton Project, (hereinafter PROJECT), for and in consideration of the award to it of a contract to perform work on said PROJECT, and in further consideration of the mutual promises made in this Community Workforce and Training Agreement (hereinafter AGREEMENT), a copy of which was received and is acknowledged, hereby:
(1) Accepts and agrees to be bound by the terms and conditions of the AGREEMENT for this Project, together with any and all amendments and supplements now existing or which are later made thereto:
(2) The CONTRACTOR agrees to be bound by the legally established local trust agreements designated in the applicable Schedule A as set forth in Article IV of this AGREEMENT.
(3) The CONTRACTOR authorizes the parties to such local trust agreements to appoint trustees and successor trustees to administer the trust funds and hereby ratifies and accepts the trustees so appointed as if made by the CONTRACTOR; (4) Certifies that it has no commitments or agreements which would preclude its full and complete compliance with the terms and conditions of said AGREEMENT. (5) Agrees to secure from any CONTRACTOR(S) (as defined in said AGREEMENT) which is or becomes a subcontractor (of any tier) to it, a duly executed Agreement to be Bound in form identical to this document.
(6) This Agreement to be Bound constitutes a subscription agreement to the extent of its terms. However, the undersigned agrees to execute a separate Subscription Agreement(s) or contributing employer agreement for Trust Funds when such Trust Fund(s) requires such document(s).

Date:______________________ __________________________________ Name of Contractor
__________________________________
(Name of Contractor Representative)
__________________________________
(Authorized Officer & Title)
__________________________________
CSLB # of Motor Carrier Permit
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EXHIBIT A
ALEXANDRIA & 14-MILE STORM PUMP STATION ELECTRICAL UPGRADES Project No. US24001
Item
# Description Est. Quantity Unit Unit Price Total Price 1 Mobilization, Demobilization, Bonds,
Permits, and Insurance on all work 1 LS
2 Install Conduit Along Alexandria Place
and Connect to an Existing POC 425 LF
3 Furnish & Install New Main Service/Motor
Control Center and Connect as Shown
on Plans
1 LS
4 Lift Station Reconnection Plan 1 LS
5 Instrumentation, Controls, and
Connection to SCADA Cabinet 1 LS
6 Training 1 LS
7 O&M Manuals 1 LS
8 Contingency 1 LS $15,000 $15,000
TOTAL BID: The sum of Items 1 through 8
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EXHIBIT B
REFER TO SECTION 00820 – LIABILITY AND INSURANCE REQUIREMENTS EXHIBIT 2 455
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EXHIBIT C

DISCRIMINATION AND HARASSMENT POLICY
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BOND FOR FAITHFUL PERFORMANCE
KNOW ALL MEN BY THESE PRESENTS:

That we, _______________________________, a (INDICATE STATUS: STATE OF [NAME STATE] CORPORATION, PARTNERSHIP, OR SOLE PROPRIETORSHIP), as Principal and , a corporation, organized and
existing under the laws of the State of and duly authorized to transact business under the laws of the State of California, as Surety, are held and firmly bound unto the City of Stockton, a municipal corporation, duly created and existing under and by virtue of the laws of the State of California, as obligee, in the just and full sum of SPELL OUT CONTRACT AMOUNT AND xx/100 DOLLARS ($xxx enter dollar amount), in lawful money of the United States of America (being 100% of the contract price) for the payment whereof well and truly to be made to the said CITY, the said Principal and Surety bind themselves, their successors and assigns, jointly and severally, firmly by these presents.

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

NAME OF PROJECT
(PROJECT NO. xxx)
NOW, THEREFORE, if the above bounded Principal, CONTRACTOR, Company or Corporation or its subcontractor, shall well and truly perform the work contracted to be done under said contract, then this obligation to be null and void; otherwise to remain in full force and effect.

City Council and Concurrent AuthoritiesSeptember 23, 2025

City Council and Concurrent Authorities
September 23, 2025