City Council and Concurrent Authorities
June 9, 2026

Appendix E of the Title VI Assurances
(US DOT Order 1050.2A)
During the performance of this contract, the contractor, for itself, its assignees, and successors in interest (hereinafter referred to as the “contractor”) agrees to comply with the following nondiscrimination statutes and authorities; including but not limited to:

Pertinent Nondiscrimination Authorities:
• Title VI of the Civil Rights Act of 1964 (42 U.S.C. § 2000d et seq., 78 stat. 252), (prohibits discrimination on the basis of race, color, national origin); and 49 CFR Part 21.
• The Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, (42 U.S.C. § 4601), (prohibits unfair treatment of persons displaced or whose property has been acquired because of Federal or Federal-aid programs and projects);
• Federal-Aid Highway Act of 1973, (23 U.S.C. § 324 et seq.), (prohibits discrimination on the basis of sex);
• Section 504 of the Rehabilitation Act of 1973, (29 U.S.C. § 794 et seq.), as amended, (prohibits discrimination on the basis of disability); and 49 CFR Part 27;
• The Age Discrimination Act of 1975, as amended, (42 U.S.C. § 6101 et seq.), (prohibits discrimination on the basis of age);
• Airport and Airway Improvement Act of 1982, (49 U.S.C. § 4 71, Section 4 7123), as amended, (prohibits discrimination based on race, creed, color, national origin, or sex);
• The Civil Rights Restoration Act of 1987, (PL 100-209), (Broadened the scope, coverage and applicability of Title VI of the Civil Rights Act of 1964, The Age Discrimination Act of 1975 and Section 504 of the Rehabilitation Act of 1973, by expanding the definition of the terms “programs or activities” to include all of the programs or activities of the Federal-aid recipients, subrecipients and contractors, whether such programs or activities are Federally funded or not);
• Titles II and III of the Americans with Disabilities Act, which prohibit discrimination on the basis of disability in the operation of public entities, public and private transportation systems, places of public accommodation, and certain testing entities (42 U.S.C. §§ 12131-12189) as implemented by Department of Transportation regulations at 49 C.F.R. parts 37 and 38;
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• The Federal Aviation Administration's Nondiscrimination statute (49 U.S.C. § 47123) (prohibits discrimination on the basis of race, color, national origin, and sex);
• Executive Order 12898, Federal Actions to Address Environmental Justice in Minority Populations and Low-Income Populations, which ensures discrimination against minority populations by discouraging programs, policies, and activities with disproportionately high and adverse human health or environmental effects on minority and low-income populations; • Executive Order 13166, Improving Access to Services for Persons with Limited English Proficiency, and resulting agency guidance, national origin discrimination includes discrimination because of limited English proficiency (LEP). To ensure compliance with Title VI, you must take reasonable steps to ensure that LEP persons have meaningful access to your programs (70 Fed. Reg. at 74087 to 74100);
• Title IX of the Education Amendments of 1972, as amended, which prohibits you from discriminating because of sex in education programs or activities (20 U.S.C. 1681 et seq).

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Required Federal-Aid Contract Language

October 2023
EXHIBIT 12-G: REQUIRED FEDERAL-AID CONTRACT LANGUAGE
(For Local Assistance Construction Projects)
The following language must be incorporated into all Local Assistance Federal-aid construction contracts.

The following language, with minor edits, was taken from the Code of Federal Regulations.

MAINTAIN RECORDS AND SUBMIT REPORTS DOCUMENTING YOUR PERFORMANCE UNDER THIS

SECTION

1. BID OPENING....................................................................................................................................................... 2

2. BID RIGGING........................................................................................................................................................ 2

3. CONTRACT AWARD............................................................................................................................................ 2

4. CONTRACTOR LICENSE .................................................................................................................................... 2

5. CHANGED CONDITIONS..................................................................................................................................... 2 A. Differing Site Conditions ....................................................................................................................... 2 B. Suspensions of Work Ordered by the Engineer.................................................................................. 2 C. Significant Changes in the Character of Work .................................................................................. 3

6. BEGINNING OF WORK, TIME OF COMPLETION AND LIQUIDATED DAMAGES ......................................... 3

7. BUY AMERICA ................................................................................................................................................... 3

8. QUALITY ASSURANCE..................................................................................................................................... 4

9. PROMPT PAYMENT .......................................................................................................................................... 5

10. FORM FHWA-1273 REQUIRED CONTRACT PROVISIONS FEDERAL-AID CONTRACTS............................ 5

11. TITLE VI ASSURANCES.................................................................................................................................... 5

12. FEDERAL TRAINEE PROGRAM.......................................................................................................................10

13. PROHIBITION OF CERTAIN TELECOMMUNICATIONS AND VIDEO SURVEILLANCE EQUIPMENT AND SERVICES..........................................................................................................................................................11 EXHIBIT F Page 81 of 110 EXHIBIT 1
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1. BID OPENING
The Agency publicly opens and reads bids at the time and place shown on the Notice to Contractors.

2. BID RIGGING
The U.S. Department of Transportation (DOT) provides a toll-free hotline to report bid rigging activities. Use the hotline to report bid rigging, bidder collusion, and other fraudulent activities. The hotline number is (800) 424- 9071. The service is available 24 hours 7 days a week and is confidential and anonymous. The hotline is part of the DOT's effort to identify and investigate highway construction contract fraud and abuse and is operated under the direction of the DOT Inspector General.

3. CONTRACT AWARD
If the Agency awards the contract, the award is made to the lowest responsible and responsive bidder.

4. CONTRACTOR LICENSE
The Contractor must be properly licensed as a contractor from contract award through Contract acceptance (23 CFR 635.110).

5. CHANGED CONDITIONS
A. Differing Site Conditions

1. During the progress of the work, if subsurface or latent physical conditions are encountered at the site differing materially from those indicated in the contract or if unknown physical conditions of an unusual nature, differing materially from those ordinarily encountered and generally recognized as inherent in the work provided for in the contract, are encountered at the site, the party discovering such conditions shall promptly notify the other party in writing of the specific differing conditions before the site is disturbed and before the affected work is performed.

2. Upon written notification, the engineer will investigate the conditions, and if it is determined that the conditions materially differ and cause an increase or decrease in the cost or time required for the performance of any work under the contract, an adjustment, excluding anticipated profits, will be made and the contract modified in writing accordingly. The engineer will notify the contractor of the determination whether or not an adjustment of the contract is warranted.

3. No contract adjustment which results in a benefit to the contractor will be allowed unless the contractor has provided the required written notice.

4. No contract adjustment will be allowed under this clause for any effects caused on unchanged work. [This provision may be omitted by the Local Agency, at their option.] B. Suspensions of Work Ordered by the Engineer

1. If the performance of all or any portion of the work is suspended or delayed by the engineer in writing for an unreasonable period of time (not originally anticipated, customary, or inherent to the construction industry) and the contractor believes that additional compensation and/or contract time is due as a result of such suspension or delay, the contractor shall submit to the engineer in writing a request for adjustment within 7 calendar days of receipt of the notice to resume work. The request shall set forth the reasons and support for such adjustment.

2. Upon receipt, the engineer will evaluate the contractor's request. If the engineer agrees that the cost and/or time required for the performance of the contract has increased as a result of such suspension and the suspension was caused by conditions beyond the control of and not the fault of the contractor, its suppliers, or subcontractors at any approved tier, and not caused by weather, the engineer will make an adjustment (excluding profit) and modify the contract in writing accordingly. The contractor will be notified of the engineer's determination whether or not an adjustment of the contract is warranted.

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3. No contract adjustment will be allowed unless the contractor has submitted the request for adjustment within the time prescribed.

4. No contract adjustment will be allowed under this clause to the extent that performance would have been suspended or delayed by any other cause, or for which an adjustment is provided or excluded under any other term or condition of this contract.

C. Significant Changes in the Character of Work

1. The engineer reserves the right to make, in writing, at any time during the work, such changes in quantities and such alterations in the work as are necessary to satisfactorily complete the project. Such changes in quantities and alterations shall not invalidate the contract nor release the surety, and the contractor agrees to perform the work as altered.

2. If the alterations or changes in quantities significantly change the character of the work under the contract, whether such alterations or changes are in themselves significant changes to the character of the work or by affecting other work cause such other work to become significantly different in character, an adjustment, excluding anticipated profit, will be made to the contract. The basis for the adjustment shall be agreed upon prior to the performance of the work. If a basis cannot be agreed upon, then an adjustment will be made either for or against the contractor in such amount as the engineer may determine to be fair and equitable.

3. If the alterations or changes in quantities do not significantly change the character of the work to be performed under the contract, the altered work will be paid for as provided elsewhere in the contract.

4. The term “significant change” shall be construed to apply only to the following circumstances:
• When the character of the work as altered differs materially in kind or nature from that involved or included in the original proposed construction; or
• When a major item of work, as defined elsewhere in the contract, is increased in excess of 125 percent or decreased below 75 percent of the original contract quantity. Any allowance for an increase in quantity shall apply only to that portion in excess of 125 percent of original contract item quantity, or in case of a decrease below 75 percent, to the actual amount of work performed.

6. BEGINNING OF WORK, TIME OF COMPLETION AND LIQUIDATED DAMAGES The Contractor shall begin work within 15 calendar days after the issuance of the Notice to Proceed.

This work shall be diligently prosecuted to completion before the expiration of WORKING DAYS beginning on the fifteenth calendar day after the date shown on the Notice to Proceed.

The Contractor shall pay to the City/County the sum of $ !per day, for each and every calendar days’ delay in finishing the work in excess of the number of working days prescribed above.

7. BUY AMERICA
Buy America Requirements apply to steel and iron, manufactured products, and construction materials permanently incorporated into the project.

Steel and Iron Materials
All steel and iron materials must be melted and manufactured in the United States except:

1. Foreign pig iron and processed, pelletized, and reduced iron ore may be used in the domestic production of the steel and iron materials [60 Fed Reg 15478 (03/24/1995)];

2. If the total combined cost of the materials produced outside the United States does not exceed the greater of 0.1 percent of the total contract amount or $2,500, materials produced outside the United States may be used if authorized.

Furnish steel and iron materials to be incorporated into the work with certificates of compliance and certified mill test reports. Mill test reports must indicate where the steel and iron were melted and manufactured. All melting and manufacturing processes for these materials, including an application of a coating, must occur in the United States. Coating includes all processes that protect or enhance the value of the material to which the coating is applied.

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Manufactured Products
Iron and steel used in precast concrete manufactured products must meet the requirements of the above section (Steel and Iron Materials) regardless of the amount used. Iron and steel used in other manufactured products must meet the requirements of the above section (Steel and Iron Materials) if the weight of steel and iron components constitute 90 percent or more of the total weight of the manufactured product.

Construction Materials
Buy America requirements apply to the following construction materials that are or consist primarily of:

1. Non-ferrous metals

2. Plastic and polymer-based products such as:

2.1 Polyvinylchloride

2.2 Composite Building Materials

3. Glass

4. Fiber optic cable (including drop cable)

5. Optical fiber

6. Lumber

7. Engineered wood

8. Drywall
All manufacturing processes for these materials as defined in 2 CFR 184.6 must occur in the United States.

Where one or more of these construction materials have been combined by a manufacturer with other materials through a manufacturing process, Buy America requirements do not apply unless otherwise specified.

Furnish construction materials to be incorporated into the work with certificates of compliance with each project delivery. Manufacturer’s certificate of compliance must identify where the construction material was manufactured and attest specifically to Buy America compliance.

All manufacturing processes for these materials must occur in the United States.

Buy America requirements do not apply to the following:

1. Tools and construction equipment used in performing the work

2. Temporary work that is not incorporated into the finished project Waivers
If Buy America waivers are granted, use the following language to include in the contract:

The following steel and iron products, manufactured products, or construction materials have received an approved Buy America waiver for this contract, and therefore, are not subject to Buy America requirements:

1. 2.

8. QUALITY ASSURANCE
The Local Agency uses a Quality Assurance Program (QAP) to ensure a material is produced to comply with the Contract. The Local Agency may examine the records and reports of tests the prime contractor performs if they are available at the job site. Schedule work to allow time for QAP.

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Required Federal-Aid Contract Language

October 2023

9. PROMPT PAYMENT
A. FROM THE AGENCY TO THE CONTRACTORS
The Local Agency shall make all project progress payment within 30 days after receipt of an undisputed and properly submitted payment request from the Contractor on a construction contract. If the Local Agency fails to pay promptly, the Local Agency shall pay interest to the Contractor, which accrues at the rate of 10 percent per annum on the principal amount of a money judgment remaining unsatisfied and pro-rated as necessary. Upon receipt of the payment request, the Local Agency shall act in accordance with both of the following:

1. The Local Agency shall review each payment request as soon as feasible after receipt to verify it is a proper payment request.

2. The Local Agency must return any payment request deemed improper by the Local Agency to the Contractor as soon as feasible, but not later than seven (7) days, after receipt. A request returned pursuant to this paragraph shall include documentation setting forth in writing the reasons why it is an improper payment request.

B. SUBMITTAL OF EXHIBIT 9-P
For projects awarded on or after September 1, 2023:

The Contractor must submit Exhibit 9-P to the Local Agency administering the contract by the 15th of the month following the month of any payment(s). If the Contractor does not make any payments to subcontractors, supplier(s) and/or manufacturers they must report “no payments were made to subs this month” and write this visibly and legibly on Exhibit 9-P.

The Local Agency must verify all Exhibit 9-P information, monitor compliance with prompt payment requirements for DBE and non-DBE firms, and address any shortfall to the DBE commitment and prompt payment issues until the end of the project. The Local Agency must email a copy of Exhibit 9-P to [email protected] before the end of the month after receiving the Exhibit 9-P from the Contractor.

10. FORM FHWA-1273 REQUIRED CONTRACT PROVISIONS FEDERAL-AID CONTRACTS [Form FHWA-1273 must be physically inserted into the contract without modification, excluding ATTACHMENT

A - EMPLOYMENT AND MATERIALS PREFERENCE FOR APPALACHIAN DEVELOPMENT HIGHWAY SYSTEM OR APPALACHIAN LOCAL ACCESS ROAD CONTRACTS.]
[The current version of Form FHWA-1273 is accessible at FHWA’s website:
https://www.fhwa.dot.gov/programadmin/contracts/1273/1273.pdf]

11. TITLE VI ASSURANCES
[The U.S. Department of Transportation Order No.1050.2A requires all federal-aid Department of Transportation contracts between an agency and a contractor to contain Appendix A and E.

Note: Appendix B only requires inclusion if the contract impacts deeds effecting or recording the transfer of real property, structures, or improvements thereon, or granting interest therein. Appendices C and D only require inclusion if the contract impacts deeds, licenses, leases, permits, or similar instruments entered into by the recipient.]

APPENDIX A
During the performance of this Agreement, the contractor, for itself, its assignees and successors in interest (hereinafter collectively referred to as CONTRACTOR) agrees as follows:
a. Compliance with Regulations: CONTRACTOR shall comply with the regulations relative to nondiscrimination in federally assisted programs of the Department of Transportation, Title 49, Code of Federal Regulations, Part 21, as they may be amended from time to time, (hereinafter referred to as the REGULATIONS), which are herein incorporated by reference and made a part of this agreement. b. Nondiscrimination: CONTRACTOR, with regard to the work performed by it during the AGREEMENT, shall not discriminate on the grounds of race, color, sex, national origin, religion, age, or disability in EXHIBIT F Page 85 of 110 EXHIBIT 1
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the selection and retention of sub-applicants, including procurements of materials and leases of equipment. CONTRACTOR shall not participate either directly or indirectly in the discrimination prohibited by Section 21.5 of the Regulations, including employment practices when the agreement covers a program set forth in Appendix B of the Regulations. c. Solicitations for Sub-agreements, Including Procurements of Materials and Equipment: In all solicitations either by competitive bidding or negotiation made by CONTRACTOR for work to be performed under a Sub- agreement, including procurements of materials or leases of equipment, each potential sub-applicant or supplier shall be notified by CONTRACTOR of the CONTRACTOR’S obligations under this Agreement and the Regulations relative to nondiscrimination on the grounds of race, color, or national origin.
d. Information and Reports: CONTRACTOR shall provide all information and reports required by theRegulations, or directives issued pursuant thereto, and shall permit access to its books, records, accounts, other sources of information, and its facilities as may be determined by the recipient or FHWA to be pertinent to ascertain compliance with such Regulations or directives. Where any information required of CONTRACTOR is in the exclusive possession of another who fails or refuses to furnish this information, CONTRACTOR shall so certify to the recipient or FHWA as appropriate, and shall set forth what efforts CONTRACTOR has made to obtain the information.
e. Sanctions for Noncompliance: In the event of CONTRACTOR’s noncompliance with the nondiscrimination provisions of this agreement, the recipient shall impose such agreement sanctions as it or the FHWA may determine to be appropriate, including, but not limited to:
i. withholding of payments to CONTRACTOR under the Agreement within a reasonable period of time, not to exceed 90 days; and/or
ii. cancellation, termination or suspension of the Agreement, in whole or in part. f. Incorporation of Provisions: CONTRACTOR shall include the provisions of paragraphs (1) through (6) in every sub-agreement, including procurements of materials and leases of equipment, unless exempt by the Regulations, or directives issued pursuant thereto.

CONTRACTOR shall take such action with respect to any sub-agreement or procurement as the recipient or FHWA may direct as a means of enforcing such provisions including sanctions for noncompliance, provided, however, that, in the event CONTRACTOR becomes involved in, or is threatened with, litigation with a subapplicant or supplier as a result of such direction, CONTRACTOR may request the recipient enter into such litigation to protect the interests of the State, and, in addition, CONTRACTOR may request the United States to enter into such litigation to protect the interests of the United States.

APPENDIX B

CLAUSES FOR DEEDS TRANSFERRING UNITED STATES PROPERTY
The following clauses will be included in deeds effecting or recording the transfer of real property, structures, or improvements thereon, or granting interest therein from the United States pursuant to the provisions of Assurance 4:

NOW THEREFORE, the U.S. Department of Transportation as authorized by law and upon the condition that the recipient will accept title to the lands and maintain the project constructed thereon in accordance with Title 23 U.S.C., the regulations for the administration of the preceding statute, and the policies and procedures prescribed by the FHWA of the U.S. Department of Transportation in accordance and in compliance with all requirements imposed by Title 49, Code of Federal Regulations, U.S. Department of Transportation, Subtitle A, Office of the Secretary, Part 21, Non-discrimination in Federally-assisted programs of the U.S. Department of Transportation pertaining to and effectuating the provisions of Title VI of the Civil Rights Act of 1964 (78 Stat. 252; 42 U.S.C. § 2000d to 2000d-4), does hereby remise, release, quitclaim and convey unto the recipient all the right, title and interest of the U.S. Department of Transportation in and to said lands described in Exhibit A attached hereto and made a part hereof.

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(HABENDUM CLAUSE)
TO HAVE AND TO HOLD said lands and interests therein unto the recipient and its successors forever, subject, however, to the covenants, conditions, restrictions and reservations herein contained as follows, which will remain in effect for the period during which the real property or structures are used for a purpose for which Federal financial assistance is extended or for another purpose involving the provision of similar services or benefits and will be binding on the recipient, its successors and assigns. The recipient, in consideration of the conveyance of said lands and interest in lands, does hereby covenant and agree as a covenant running with the land for itself, its successors and assigns, that (1) no person will on the grounds of race, color, or national origin, be excluded from participation in, be denied the benefits of, or be otherwise subjected to discrimination with regard to any facility located wholly or in part on, over, or under such lands hereby conveyed [,] [and]* (2) that the recipient will use the lands and interests in lands and interest in lands so conveyed, in compliance with all requirements imposed by or pursuant to Title 49, Code of Federal Regulations, U.S. Department of Transportation, Subtitle A, Office of the Secretary, Part 21, Nondiscrimination in Federally-assisted programs of the U.S. Department of Transportation, Effectuation of Title VI of the Civil Rights Act of 1964, and as said Regulations and Acts may be amended[, and (3) that in the event of breach of any of the above-mentioned non-discrimination conditions, the Department will have a right to enter or re-enter said lands and facilities on said lands, and that above described land and facilities will thereon revert to and vest in and become the absolute property of the U.S. Department of Transportation and its assigns as such interest existed prior to this instruction].* (*Reverter clause and related language to be used only when it is determined that such a clause is necessary in order to make clear the purpose of Title VI.)

APPENDIX C

CLAUSES FOR TRANSFER OF REAL PROPERTY ACQUIRED OR IMPROVED UNDER THE

ACTIVITY, FACILITY, OR PROGRAM
The following clauses will be included in deeds, licenses, leases, permits, or similar instruments entered into by the recipient pursuant to the provisions of Assurance 7(a):

A. The (grantee, lessee, permittee, etc. as appropriate) for himself/herself, his/her heirs, personal representatives, successors in interest, and assigns, as a part of the consideration hereof, does hereby covenant and agree [in the case of deeds and leases add “as a covenant running with the land”] that:

1. In the event facilities are constructed, maintained, or otherwise operated on the property described in this (deed, license, lease, permit, etc.) for a purpose for which a U.S. Department of Transportation activity, facility, or program is extended or for another purpose involving the provision of similar services or benefits, the (grantee, licensee, lessee, permittee, etc.) will maintain and operate such facilities and services in compliance with all requirements imposed by the Acts and Regulations (as may be amended) such that no person on the grounds of race, color, or national origin, will be excluded from participation in, denied the benefits of, or be otherwise subjected to discrimination in the use of said facilities.

B. With respect to licenses, leases, permits, etc., in the event of breach of any of the above Nondiscrimination covenants, the recipient will have the right to terminate the (lease, license, permit, etc.) and to enter, re-enter, and repossess said lands and facilities thereon, and hold the same as if the (lease, license, permit, etc.) had never been made or issued.*
C. With respect to a deed, in the event of breach of any of the above Non-discrimination covenants, the recipient will have the right to enter or re-enter the lands and facilities thereon, and the above described lands and facilities will there upon revert to and vest in and become the absolute property of the recipient and its assigns.*
(*Reverter clause and related language to be used only when it is determined that such a clause is necessary to make clear the purpose of Title VI.)
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APPENDIX D

CLAUSES FOR CONSTRUCTION/USE/ACCESS TO REAL PROPERTY ACQUIRED UNDER THE

ACTIVITY, FACILITY OR PROGRAM
The following clauses will be included in deeds, licenses, permits, or similar instruments/agreements entered into by the recipient pursuant to the provisions of Assurance 7(b):

A. The (grantee, licensee, permittee, etc., as appropriate) for himself/herself, his/her heirs, personal representatives, successors in interest ,and assigns, as a part of the consideration hereof, does hereby covenant and agree (in the case of deeds and leases add, “as a covenant running with the land”) that (1) no person on the ground of race, color, or national origin, will be excluded from participation in, denied the benefits of, or be otherwise subjected to discrimination in the use of said facilities, (2) that in the construction of any improvements on, over, or under such land, and the furnishings of services thereon, no person on the ground of race, color, or national origin, will be excluded from participation in, denied the benefits or, or otherwise be subjected to discrimination, (3) that the (grantee, licensee, lessee, permittee, etc.) will use the premises in compliance with all other requirements imposed by or pursuant to the Acts and Regulations, as amended, set forth in this Assurance.

B. With respect to (licenses, leases, permits, etc.) in the event of breach of any of the above of the above Non-discrimination covenants, the recipient will have the right to terminate the (license, permits, etc., as appropriate) and to enter or re-enter and repossess said land and the facilities thereon, and hold the same as if said (license, permit, etc., as appropriate) had never been made or issued.* C. With respect to deeds, in the event of breach of any of the above Non-discrimination covenants, the recipient will there upon revert to and vest in and become the absolute property of the recipient and its assigns.
(*Reverter clause and related language to be used only when it is determined that such a clause is necessary to make clear the purpose of Title VI.)

APPENDIX E
During the performance of this contract, the contractor, for itself, its assignees, and successors in interest (hereinafter referred to as the “contractor”) agrees to comply with the following non-discrimination statutes and authorities, including, but not limited to:

Pertinent Non-Discrimination Authorities:
• Title VI of the Civil Rights Act of 1964 (42 U.S.C. § 2000d et seq., 78 stat. 252), prohibits discrimination on the basis of race, color, national origin); and 49 CFR Part 21. • The Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, (42 U.S.C. § 4601), (prohibits unfair treatment of persons displaced or whose property has been acquired because of Federal or Federal-aid programs and projects);
• Federal-Aid Highway Act of 1973, (23 U.S.C. § 324 et seq.), prohibits discrimination on the basis of sex; • Section 504 of the Rehabilitation Act of 1973, (29 U.S.C. § 794 et seq.), as amended, (prohibits discrimination on the basis of disability); and 49 CR Part 27; • The Age Discrimination Act of 1975, as amended, (42 U.S.C. § 6101 et seq.), prohibits discrimination on the basis of age);
• Airport and Airway Improvement Act of 1982, (49 U.S.C. § 471, Section 47123), as amended, (prohibits discrimination based on race, creed, color, national origin, or sex); • The Civil Rights Restoration Act of 1987, (PL 100-209), (Broadened the scope, coverage and applicability of Title VI of the Civil Rights Act of 1964, The Age Discrimination Act of 1975 and Section 504 of the Rehabilitation Act of 1973, by expanding the definition of the terms “programs or activities” to include all of the programs or activities of the Federal-aid recipients, sub-recipients and contractors, whether such EXHIBIT F Page 88 of 110 EXHIBIT 1
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programs or activities are Federally funded or not);
• Titles II and III of the Americans with Disabilities Act, which prohibit discrimination of the basis of disability in the operation of public entities, public and private transportation systems, places of public accommodation, and certain testing entities (42 U.S.C. §§ 12131 – 12189) as implemented by Department of Transportation regulations 49 C.F.R. parts 37 and 38;
• The Federal Aviation Administration’s Non-discrimination statute (49 U.S.C. § 47123) (prohibits discrimination on the basis of race, color, national origin, and sex); • Executive Order 12898, Federal Actions to Address Environmental Justice in Minority Populations and LowIncome Populations, which ensures discrimination against minority populations by discouraging programs, policies, and activities with disproportionately high and adverse human health or environmental effects on minority and low-income populations;
• Executive Order 13166, Improving Access to Services for Persons with Limited English Proficiency, and resulting agency guidance, national origin discrimination includes discrimination because of limited English proficiency (LEP). To ensure compliance with Title VI, you must take reasonable steps to ensure that LEP persons have meaningful access to your programs (70 Fed. Reg. at 74087 to 74100); • Title IX of the Education Amendments of 1972, as amended, which prohibits you from discriminating because of sex in education programs or activities (20 U.S.C. 1681 et seq).

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Federal Trainee Program Special Provisions
(to be used when applicable)

12. FEDERAL TRAINEE PROGRAM
For the Federal training program, the number of trainees or apprentices is zero.

This section applies if a number of trainees or apprentices is shown on the Notice of Bidders.

As part of the prime contractor’s equal opportunity affirmative action program, provide on-the-job training to develop full journeymen in the types of trades or job classifications involved.

The prime contractor has primary responsibility for meeting this training requirement.

If the prime contractor subcontracts a contract part, they shall determine how many trainees or apprentices are to be trained by the subcontractor. Include these training requirements in each subcontract.

Where feasible, 25 percent of apprentices or trainees in each occupation must be in their 1st year of apprenticeship or training.

Distribute the number of apprentices or trainees among the work classifications on the basis of the prime contractor’s needs and the availability of journeymen in the various classifications within a reasonable recruitment area.

Before starting work, the prime contractor shall submit to the City/County of San Joaquin:

1. Number of apprentices or trainees to be trained for each classification

2. Training program to be used

3. Training starting date for each classification
The prime contractor shall obtain the City/County of San Joaquin approval for this submitted information before the prime contractor starts work. The City/County of San Joaquin credits the prime contractor for each apprentice or trainee the prime contractor employs on the job who is currently enrolled or becomes enrolled in an approved program.

The primary objective of this section is to train and upgrade minorities and women toward journeyman status.

The prime contractor shall make every effort to enroll minority and women apprentices or trainees, such as conducting systematic and direct recruitment through public and private sources likely to yield minority and women apprentices or trainees, to the extent they are available within a reasonable recruitment area and show that they have made the efforts. In making these efforts, the prime contractor shall not discriminate against any applicant for training.

The prime contractor shall not employ as an apprentice or trainee an employee:

1. In any classification in which the employee has successfully completed a training course leading to journeyman status or in which the employee has been employed as a journeyman

2. Who is not registered in a program approved by the US Department of Labor, Bureau of Apprenticeship and Training
The prime contractor shall ask the employee if the employee has successfully completed a training course leading to journeyman status or has been employed as a journeyman. The prime contractor’s records must show the employee's answers to the questions.

In the training program, the prime contractor shall establish the minimum length and training type for each classification. The City/County of San Joaquin and FHWA approves a program if one of the following is met:

1. It is calculated to:
• Meet the equal employment opportunity responsibilities • Qualify the average apprentice or trainee for journeyman status in the classification involved by the end of the training period

2. It is registered with the U.S. Department of Labor, Bureau of Apprenticeship and Training, and it is administered in a way consistent with the equal employment responsibilities of Federal-aid highway construction contracts
EXHIBIT F Page 90 of 110 EXHIBIT 1
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Local Assistance Procedures Manual Exhibit 12-G
Required Federal-Aid Contract Language

October 2023
The prime contractor shall obtain the State's approval for their training program before they start work involving the classification covered by the program.

The prime contractor shall provide training in the construction crafts, not in clerk-typist or secretarial-type positions. Training is allowed in lower-level management positions such as office engineers, estimators, and timekeepers if the training is oriented toward construction applications. Training is allowed in the laborer classification if significant and meaningful training is provided and approved by the division office. Off-site training is allowed if the training is an integral part of an approved training program and does not make up a significant part of the overall training.

The City/County of San Joaquin reimburses the prime contractor 80 cents per hour of training given an employee on thiscontract under an approved training program:

1. For on-site training

2. For off-site training if the apprentice or trainee is currently employed on a Federal-aid project and prime contractor does at least one of the following:
a. Contribute to the cost of the training
b. Provide the instruction to the apprentice or trainee c. Pay the apprentice's or trainee's wages during the off-site training period

3. If the prime contractor complies with this section.

Each apprentice or trainee must:

1. Begin training on the project as soon as feasible after the start of work involving the apprentice's or trainee's skill

2. Remain on the project as long as training opportunities exist in the apprentice's or trainee's work classification or until the apprentice or trainee has completed the training program Furnish the apprentice or trainee a:

1. Copy of the training plan approved by the U.S, Department of Labor or a training plan for trainees approved by both Caltrans and FHWA

2. Certification showing the type and length of training satisfactorily completed Maintain records and submit reports documenting contractor’s performance under this section.

13. PROHIBITION OF CERTAIN TELECOMMUNICATIONS AND VIDEO SURVEILLANCE EQUIPMENT AND

SERVICES
In response to significant national security concerns, the agency shall check the prohibited vendor list before making any telecommunications and video surveillance purchase because recipients and subrecipients of federal funds are prohibited from obligating or expending loan or grant funds to:
• Procure or obtain;
• Extend or renew a contract to procure or obtain; or
• Enter into a contract (or extend or renew a contract) to procure or obtain equipment, services, or systems that uses covered telecommunications equipment or services as a substantial or essential component of any system, or as critical technology as part of any system.

The prohibited vendors (and their subsidiaries or affiliates) are:
• Huawei Technologies Company;
• ZTE Corporation;
• Hytera Communications Corporation;
• Hangzhou Hikvision Digital Technology Company;
• Dahua Technology Company; and
• Subsidiaries or affiliates of the above-mentioned companies.

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Local Assistance Procedures Manual Exhibit 12-G
Required Federal-Aid Contract Language

October 2023
In implementing the prohibition, the agency administering loan, grant, or subsidy programs shall prioritize available funding and technical support to assist affected businesses, institutions and organizations as is reasonably necessary for those affected entities to transition from covered communications equipment and services, to procure replacement equipment and services, and to ensure that communications service to users and customers is sustained.

The contractors should furnish telecommunications and video surveillance equipment with a certificate of compliance. The certificate must state telecommunications and video surveillance equipment was not procured or obtained from manufacturers identified in the above list.

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1 FHWA-1273 – Revised October 23, 2023

REQUIRED CONTRACT PROVISIONS

FEDERAL-AID CONSTRUCTION CONTRACTS
I. General
II. Nondiscrimination
III. Non-segregated Facilities
IV. Davis-Bacon and Related Act Provisions
V. Contract Work Hours and Safety Standards Act
Provisions
VI. Subletting or Assigning the Contract
VII. Safety: Accident Prevention
VIII. False Statements Concerning Highway Projects
IX. Implementation of Clean Air Act and Federal Water
Pollution Control Act
X. Certification Regarding Debarment, Suspension,
Ineligibility and Voluntary Exclusion
XI. Certification Regarding Use of Contract Funds for
Lobbying
XII. Use of United States-Flag Vessels:

ATTACHMENTS
A. Employment and Materials Preference for Appalachian
Development Highway System or Appalachian Local Access
Road Contracts (included in Appalachian contracts only) I. GENERAL

1. Form FHWA-1273 must be physically incorporated in each construction contract funded under title 23, United States Code, as required in 23 CFR 633.102(b) (excluding
emergency contracts solely intended for debris removal). The contractor (or subcontractor) must insert this form in each subcontract and further require its inclusion in all lower tier subcontracts (excluding purchase orders, rental agreements and other agreements for supplies or services). 23 CFR
633.102(e).

The applicable requirements of Form FHWA-1273 are
incorporated by reference for work done under any purchase order, rental agreement or agreement for other services. The prime contractor shall be responsible for compliance by any subcontractor, lower-tier subcontractor or service provider. 23 CFR 633.102(e).

Form FHWA-1273 must be included in all Federal-aid designbuild contracts, in all subcontracts and in lower tier subcontracts (excluding subcontracts for design services, purchase orders, rental agreements and other agreements for supplies or services) in accordance with 23 CFR 633.102. The design-builder shall be responsible for compliance by any subcontractor, lower-tier subcontractor or service provider.

Contracting agencies may reference Form FHWA-1273 in
solicitation-for-bids or request-for-proposals documents, however, the Form FHWA-1273 must be physically
incorporated (not referenced) in all contracts, subcontracts and lower-tier subcontracts (excluding purchase orders, rental agreements and other agreements for supplies or services related to a construction contract). 23 CFR 633.102(b).

2. Subject to the applicability criteria noted in the following sections, these contract provisions shall apply to all work performed on the contract by the contractor's own organization and with the assistance of workers under the contractor's immediate superintendence and to all work performed on the contract by piecework, station work, or by subcontract. 23 CFR 633.102(d).

3. A breach of any of the stipulations contained in these Required Contract Provisions may be sufficient grounds for withholding of progress payments, withholding of final
payment, termination of the contract, suspension / debarment or any other action determined to be appropriate by the contracting agency and FHWA.

4. Selection of Labor: During the performance of this contract, the contractor shall not use convict labor for any purpose within the limits of a construction project on a Federal-aid highway unless it is labor performed by convicts who are on parole, supervised release, or probation. 23 U.S.C. 114(b).

The term Federal-aid highway does not include roadways
functionally classified as local roads or rural minor collectors. 23 U.S.C. 101(a).

II. NONDISCRIMINATION (23 CFR 230.107(a); 23 CFR Part
230, Subpart A, Appendix A; EO 11246)
The provisions of this section related to 23 CFR Part 230, Subpart A, Appendix A are applicable to all Federal-aid construction contracts and to all related construction
subcontracts of $10,000 or more. The provisions of 23 CFR Part 230 are not applicable to material supply, engineering, or architectural service contracts.

In addition, the contractor and all subcontractors must comply with the following policies: Executive Order 11246, 41 CFR Part 60, 29 CFR Parts 1625-1627, 23 U.S.C. 140, Section 504 of the Rehabilitation Act of 1973, as amended (29 U.S.C. 794), Title VI of the Civil Rights Act of 1964, as amended (42 U.S.C. 2000d et seq.), and related regulations including 49 CFR Parts 21, 26, and 27; and 23 CFR Parts 200, 230, and 633.

The contractor and all subcontractors must comply with: the requirements of the Equal Opportunity Clause in 41 CFR 60-

1.4(b) and, for all construction contracts exceeding $10,000, the Standard Federal Equal Employment Opportunity
Construction Contract Specifications in 41 CFR 60-4.3.

Note: The U.S. Department of Labor has exclusive authority to determine compliance with Executive Order 11246 and the policies of the Secretary of Labor including 41 CFR Part 60, and 29 CFR Parts 1625-1627. The contracting agency and
the FHWA have the authority and the responsibility to ensure compliance with 23 U.S.C. 140, Section 504 of the
Rehabilitation Act of 1973, as amended (29 U.S.C. 794), and Title VI of the Civil Rights Act of 1964, as amended (42 U.S.C. 2000d et seq.), and related regulations including 49 CFR Parts 21, 26, and 27; and 23 CFR Parts 200, 230, and 633.

The following provision is adopted from 23 CFR Part 230, Subpart A, Appendix A, with appropriate revisions to conform to the U.S. Department of Labor (US DOL) and FHWA
requirements.

EXHIBIT F Page 93 of 110 EXHIBIT 1
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2 1. Equal Employment Opportunity: Equal Employment
Opportunity (EEO) requirements not to discriminate and to take affirmative action to assure equal opportunity as set forth under laws, executive orders, rules, regulations (see 28 CFR Part 35, 29 CFR Part 1630, 29 CFR Parts 1625-1627, 41 CFR Part 60 and 49 CFR Part 27) and orders of the Secretary of Labor as modified by the provisions prescribed herein, and imposed pursuant to 23 U.S.C. 140, shall constitute the EEO and specific affirmative action standards for the contractor's project activities under this contract. The provisions of the Americans with Disabilities Act of 1990 (42 U.S.C. 12101 et seq.) set forth under 28 CFR Part 35 and 29 CFR Part 1630 are incorporated by reference in this contract. In the execution of this contract, the contractor agrees to comply with the following minimum specific requirement activities of EEO:
a. The contractor will work with the contracting agency and the Federal Government to ensure that it has made every good faith effort to provide equal opportunity with respect to all of its terms and conditions of employment and in their review of activities under the contract. 23 CFR 230.409 (g)(4) & (5). b. The contractor will accept as its operating policy the following statement:
"It is the policy of this Company to assure that applicants are employed, and that employees are treated during
employment, without regard to their race, religion, sex, sexual orientation, gender identity, color, national origin, age or disability. Such action shall include: employment,
upgrading, demotion, or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including
apprenticeship, pre-apprenticeship, and/or on-the-job
training."

2. EEO Officer: The contractor will designate and make
known to the contracting officers an EEO Officer who will have the responsibility for and must be capable of effectively administering and promoting an active EEO program and who must be assigned adequate authority and responsibility to do so.

3. Dissemination of Policy: All members of the contractor's staff who are authorized to hire, supervise, promote, and discharge employees, or who recommend such action or are substantially involved in such action, will be made fully cognizant of and will implement the contractor's EEO policy and contractual responsibilities to provide EEO in each grade and classification of employment. To ensure that the above agreement will be met, the following actions will be taken as a minimum:
a. Periodic meetings of supervisory and personnel office employees will be conducted before the start of work and then not less often than once every six months, at which time the contractor's EEO policy and its implementation will be
reviewed and explained. The meetings will be conducted by the EEO Officer or other knowledgeable company official.

b. All new supervisory or personnel office employees will be given a thorough indoctrination by the EEO Officer, covering all major aspects of the contractor's EEO obligations within thirty days following their reporting for duty with the contractor. c. All personnel who are engaged in direct recruitment for the project will be instructed by the EEO Officer in the contractor's procedures for locating and hiring minorities and women.

d. Notices and posters setting forth the contractor's EEO policy will be placed in areas readily accessible to employees, applicants for employment and potential employees.
e. The contractor's EEO policy and the procedures to
implement such policy will be brought to the attention of employees by means of meetings, employee handbooks, or
other appropriate means.

4. Recruitment: When advertising for employees, the
contractor will include in all advertisements for employees the notation: "An Equal Opportunity Employer." All such
advertisements will be placed in publications having a large circulation among minorities and women in the area from which the project work force would normally be derived. a. The contractor will, unless precluded by a valid
bargaining agreement, conduct systematic and direct
recruitment through public and private employee referral sources likely to yield qualified minorities and women. To meet this requirement, the contractor will identify sources of potential minority group employees and establish with such identified sources procedures whereby minority and women applicants may be referred to the contractor for employment consideration.
b. In the event the contractor has a valid bargaining
agreement providing for exclusive hiring hall referrals, the contractor is expected to observe the provisions of that agreement to the extent that the system meets the contractor's compliance with EEO contract provisions. Where
implementation of such an agreement has the effect of
discriminating against minorities or women, or obligates the contractor to do the same, such implementation violates Federal nondiscrimination provisions.
c. The contractor will encourage its present employees to refer minorities and women as applicants for employment.

Information and procedures with regard to referring such applicants will be discussed with employees.

5. Personnel Actions: Wages, working conditions, and
employee benefits shall be established and administered, and personnel actions of every type, including hiring, upgrading, promotion, transfer, demotion, layoff, and termination, shall be taken without regard to race, color, religion, sex, sexual orientation, gender identity, national origin, age or disability.

The following procedures shall be followed:
a. The contractor will conduct periodic inspections of project sites to ensure that working conditions and employee facilities do not indicate discriminatory treatment of project site personnel.
b. The contractor will periodically evaluate the spread of wages paid within each classification to determine any
evidence of discriminatory wage practices.
c. The contractor will periodically review selected personnel actions in depth to determine whether there is evidence of discrimination. Where evidence is found, the contractor will promptly take corrective action. If the review indicates that the discrimination may extend beyond the actions reviewed, such corrective action shall include all affected persons.
d. The contractor will promptly investigate all complaints of alleged discrimination made to the contractor in connection with its obligations under this contract, will attempt to resolve such complaints, and will take appropriate corrective action EXHIBIT F Page 94 of 110 EXHIBIT 1
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3 within a reasonable time. If the investigation indicates that the discrimination may affect persons other than the complainant, such corrective action shall include such other persons. Upon completion of each investigation, the contractor will inform every complainant of all of their avenues of appeal.

6. Training and Promotion:
a. The contractor will assist in locating, qualifying, and increasing the skills of minorities and women who are
applicants for employment or current employees. Such efforts should be aimed at developing full journey level status employees in the type of trade or job classification involved. b. Consistent with the contractor's work force requirements and as permissible under Federal and State regulations, the contractor shall make full use of training programs (i.e., apprenticeship and on-the-job training programs for the geographical area of contract performance). In the event a special provision for training is provided under this contract, this subparagraph will be superseded as indicated in the special provision. The contracting agency may reserve
training positions for persons who receive welfare assistance in accordance with 23 U.S.C. 140(a).
c. The contractor will advise employees and applicants for employment of available training programs and entrance
requirements for each.
d. The contractor will periodically review the training and promotion potential of employees who are minorities and women and will encourage eligible employees to apply for such training and promotion.

7. Unions: If the contractor relies in whole or in part upon unions as a source of employees, the contractor will use good faith efforts to obtain the cooperation of such unions to increase opportunities for minorities and women. 23 CFR 230.409. Actions by the contractor, either directly or through a contractor's association acting as agent, will include the procedures set forth below:
a. The contractor will use good faith efforts to develop, in cooperation with the unions, joint training programs aimed toward qualifying more minorities and women for membership in the unions and increasing the skills of minorities and women so that they may qualify for higher paying employment.
b. The contractor will use good faith efforts to incorporate an EEO clause into each union agreement to the end that such union will be contractually bound to refer applicants without regard to their race, color, religion, sex, sexual orientation, gender identity, national origin, age, or disability.
c. The contractor is to obtain information as to the referral practices and policies of the labor union except that to the extent such information is within the exclusive possession of the labor union and such labor union refuses to furnish such information to the contractor, the contractor shall so certify to the contracting agency and shall set forth what efforts have been made to obtain such information.
d. In the event the union is unable to provide the contractor with a reasonable flow of referrals within the time limit set forth in the collective bargaining agreement, the contractor will, through independent recruitment efforts, fill the employment vacancies without regard to race, color, religion, sex, sexual orientation, gender identity, national origin, age, or disability; making full efforts to obtain qualified and/or qualifiable minorities and women. The failure of a union to provide sufficient referrals (even though it is obligated to provide exclusive referrals under the terms of a collective bargaining agreement) does not relieve the contractor from the
requirements of this paragraph. In the event the union referral practice prevents the contractor from meeting the obligations pursuant to Executive Order 11246, as amended, and these special provisions, such contractor shall immediately notify the contracting agency.

8. Reasonable Accommodation for Applicants /
Employees with Disabilities: The contractor must be familiar with the requirements for and comply with the Americans with Disabilities Act and all rules and regulations established thereunder. Employers must provide reasonable
accommodation in all employment activities unless to do so would cause an undue hardship.

9. Selection of Subcontractors, Procurement of Materials and Leasing of Equipment: The contractor shall not
discriminate on the grounds of race, color, religion, sex, sexual orientation, gender identity, national origin, age, or disability in the selection and retention of subcontractors, including procurement of materials and leases of equipment. The
contractor shall take all necessary and reasonable steps to ensure nondiscrimination in the administration of this contract. a. The contractor shall notify all potential subcontractors, suppliers, and lessors of their EEO obligations under this contract.
b. The contractor will use good faith efforts to ensure subcontractor compliance with their EEO obligations.

10. Assurances Required:
a. The requirements of 49 CFR Part 26 and the State
DOT’s FHWA-approved Disadvantaged Business Enterprise
(DBE) program are incorporated by reference.
b. The contractor, subrecipient or subcontractor shall not discriminate on the basis of race, color, national origin, or sex in the performance of this contract. The contractor shall carry out applicable requirements of 49 CFR part 26 in the award and administration of DOT-assisted contracts. Failure by the contractor to carry out these requirements is a material breach of this contract, which may result in the termination of this contract or such other remedy as the recipient deems
appropriate, which may include, but is not limited to:
(1) Withholding monthly progress payments;
(2) Assessing sanctions;
(3) Liquidated damages; and/or
(4) Disqualifying the contractor from future bidding as nonresponsible. c. The Title VI and nondiscrimination provisions of U.S.

DOT Order 1050.2A at Appendixes A and E are incorporated by reference. 49 CFR Part 21.

11. Records and Reports: The contractor shall keep such records as necessary to document compliance with the EEO requirements. Such records shall be retained for a period of three years following the date of the final payment to the contractor for all contract work and shall be available at reasonable times and places for inspection by authorized representatives of the contracting agency and the FHWA. a. The records kept by the contractor shall document the following:

EXHIBIT F Page 95 of 110 EXHIBIT 1
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4 (1) The number and work hours of minority and nonminority group members and women employed in each work classification on the project;
(2) The progress and efforts being made in cooperation
with unions, when applicable, to increase employment
opportunities for minorities and women; and
(3) The progress and efforts being made in locating, hiring, training, qualifying, and upgrading minorities and women. b. The contractors and subcontractors will submit an annual report to the contracting agency each July for the duration of the project indicating the number of minority, women, and nonminority group employees currently engaged in each work classification required by the contract work. This information is to be reported on Form FHWA-1391. The staffing data should represent the project work force on board in all or any part of the last payroll period preceding the end of July. If on-the-job training is being required by special provision, the contractor will be required to collect and report training data. The employment data should reflect the work force on board during all or any part of the last payroll period preceding the end of July.

III. NONSEGREGATED FACILITIES
This provision is applicable to all Federal-aid construction contracts and to all related construction subcontracts of more than $10,000. 41 CFR 60-1.5.

As prescribed by 41 CFR 60-1.8, the contractor must ensure that facilities provided for employees are provided in such a manner that segregation on the basis of race, color, religion, sex, sexual orientation, gender identity, or national origin cannot result. The contractor may neither require such
segregated use by written or oral policies nor tolerate such use by employee custom. The contractor's obligation extends further to ensure that its employees are not assigned to perform their services at any location under the contractor's control where the facilities are segregated. The term "facilities" includes waiting rooms, work areas, restaurants and other eating areas, time clocks, restrooms, washrooms, locker rooms and other storage or dressing areas, parking lots, drinking fountains, recreation or entertainment areas,
transportation, and housing provided for employees. The contractor shall provide separate or single-user restrooms and necessary dressing or sleeping areas to assure privacy
between sexes.

IV. DAVIS-BACON AND RELATED ACT PROVISIONS
This section is applicable to all Federal-aid construction projects exceeding $2,000 and to all related subcontracts and lower-tier subcontracts (regardless of subcontract size), in accordance with 29 CFR 5.5. The requirements apply to all projects located within the right-of-way of a roadway that is functionally classified as Federal-aid highway. 23 U.S.C. 113.

This excludes roadways functionally classified as local roads or rural minor collectors, which are exempt. 23 U.S.C. 101.

Where applicable law requires that projects be treated as a project on a Federal-aid highway, the provisions of this subpart will apply regardless of the location of the project. Examples include: Surface Transportation Block Grant Program projects funded under 23 U.S.C. 133 [excluding recreational trails projects], the Nationally Significant Freight and Highway Projects funded under 23 U.S.C. 117, and National Highway Freight Program projects funded under 23 U.S.C. 167.

The following provisions are from the U.S. Department of Labor regulations in 29 CFR 5.5 “Contract provisions and related matters” with minor revisions to conform to the FHWA1273 format and FHWA program requirements.

1. Minimum wages (29 CFR 5.5)
a. Wage rates and fringe benefits. All laborers and
mechanics employed or working upon the site of the work (or otherwise working in construction or development of the project under a development statute), will be paid
unconditionally and not less often than once a week, and without subsequent deduction or rebate on any account
(except such payroll deductions as are permitted by
regulations issued by the Secretary of Labor under the
Copeland Act (29 CFR part 3)), the full amount of basic hourly wages and bona fide fringe benefits (or cash equivalents thereof) due at time of payment computed at rates not less than those contained in the wage determination of the
Secretary of Labor which is attached hereto and made a part hereof, regardless of any contractual relationship which may be alleged to exist between the contractor and such laborers and mechanics. As provided in paragraphs (d) and (e) of 29 CFR 5.5, the appropriate wage determinations are effective by operation of law even if they have not been attached to the contract. Contributions made or costs reasonably anticipated for bona fide fringe benefits under the Davis-Bacon Act (40 U.S.C. 3141(2)(B)) on behalf of laborers or mechanics are considered wages paid to such laborers or mechanics, subject to the provisions of paragraph 1.e. of this section; also, regular contributions made or costs incurred for more than a weekly period (but not less often than quarterly) under plans, funds, or programs which cover the particular weekly period, are
deemed to be constructively made or incurred during such weekly period. Such laborers and mechanics must be paid the appropriate wage rate and fringe benefits on the wage
determination for the classification(s) of work actually performed, without regard to skill, except as provided in paragraph 4. of this section. Laborers or mechanics performing work in more than one classification may be compensated at the rate specified for each classification for the time actually worked therein: Provided, That the employer's payroll records accurately set forth the time spent in each classification in which work is performed. The wage determination (including any additional classifications and wage rates conformed under paragraph 1.c. of this section) and the Davis-Bacon poster (WH–1321) must be posted at all times by the contractor and its subcontractors at the site of the work in a prominent and accessible place where it can be easily seen by the workers. b. Frequently recurring classifications. (1) In addition to wage and fringe benefit rates that have been determined to be prevailing under the procedures set forth in 29 CFR part 1, a wage determination may contain, pursuant to § 1.3(f), wage and fringe benefit rates for classifications of laborers and mechanics for which conformance requests are regularly
submitted pursuant to paragraph 1.c. of this section, provided that:
(i) The work performed by the classification is not
performed by a classification in the wage determination for which a prevailing wage rate has been determined;
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5 (ii) The classification is used in the area by the
construction industry; and
(iii) The wage rate for the classification bears a reasonable relationship to the prevailing wage rates contained in the wage determination.
(2) The Administrator will establish wage rates for such classifications in accordance with paragraph 1.c.(1)(iii) of this section. Work performed in such a classification must be paid at no less than the wage and fringe benefit rate listed on the wage determination for such classification.
c. Conformance. (1) The contracting officer must require that any class of laborers or mechanics, including helpers, which is not listed in the wage determination and which is to be employed under the contract be classified in conformance with the wage determination. Conformance of an additional
classification and wage rate and fringe benefits is appropriate only when the following criteria have been met:
(i) The work to be performed by the classification
requested is not performed by a classification in the wage determination; and
(ii) The classification is used in the area by the
construction industry; and
(iii) The proposed wage rate, including any bona fide fringe benefits, bears a reasonable relationship to the wage rates contained in the wage determination.
(2) The conformance process may not be used to split,
subdivide, or otherwise avoid application of classifications listed in the wage determination.
(3) If the contractor and the laborers and mechanics to be employed in the classification (if known), or their
representatives, and the contracting officer agree on the classification and wage rate (including the amount designated for fringe benefits where appropriate), a report of the action taken will be sent by the contracting officer by email to [email protected]. The Administrator, or an
authorized representative, will approve, modify, or disapprove every additional classification action within 30 days of receipt and so advise the contracting officer or will notify the contracting officer within the 30–day period that additional time is necessary.
(4) In the event the contractor, the laborers or mechanics to be employed in the classification or their representatives, and the contracting officer do not agree on the proposed
classification and wage rate (including the amount designated for fringe benefits, where appropriate), the contracting officer will, by email to [email protected], refer the
questions, including the views of all interested parties and the recommendation of the contracting officer, to the Administrator for determination. The Administrator, or an authorized
representative, will issue a determination within 30 days of receipt and so advise the contracting officer or will notify the contracting officer within the 30–day period that additional time is necessary.
(5) The contracting officer must promptly notify the
contractor of the action taken by the Wage and Hour Division under paragraphs 1.c.(3) and (4) of this section. The contractor must furnish a written copy of such determination to each affected worker or it must be posted as a part of the wage determination. The wage rate (including fringe benefits where appropriate) determined pursuant to paragraph 1.c.(3) or (4) of this section must be paid to all workers performing work in the classification under this contract from the first day on which work is performed in the classification.
d. Fringe benefits not expressed as an hourly rate.

Whenever the minimum wage rate prescribed in the contract for a class of laborers or mechanics includes a fringe benefit which is not expressed as an hourly rate, the contractor may either pay the benefit as stated in the wage determination or may pay another bona fide fringe benefit or an hourly cash equivalent thereof.
e. Unfunded plans. If the contractor does not make
payments to a trustee or other third person, the contractor may consider as part of the wages of any laborer or mechanic the amount of any costs reasonably anticipated in providing bona fide fringe benefits under a plan or program, Provided, That the Secretary of Labor has found, upon the written request of the contractor, in accordance with the criteria set forth in § 5.28, that the applicable standards of the Davis-Bacon Act have been met. The Secretary of Labor may require the
contractor to set aside in a separate account assets for the meeting of obligations under the plan or program.
f. Interest. In the event of a failure to pay all or part of the wages required by the contract, the contractor will be required to pay interest on any underpayment of wages.

2. Withholding (29 CFR 5.5)
a. Withholding requirements. The contracting agency may, upon its own action, or must, upon written request of an authorized representative of the Department of Labor, withhold or cause to be withheld from the contractor so much of the accrued payments or advances as may be considered
necessary to satisfy the liabilities of the prime contractor or any subcontractor for the full amount of wages and monetary relief, including interest, required by the clauses set forth in this section for violations of this contract, or to satisfy any such liabilities required by any other Federal contract, or federally assisted contract subject to Davis-Bacon labor standards, that is held by the same prime contractor (as defined in § 5.2). The necessary funds may be withheld from the contractor under this contract, any other Federal contract with the same prime contractor, or any other federally assisted contract that is subject to Davis-Bacon labor standards requirements and is held by the same prime contractor, regardless of whether the other contract was awarded or assisted by the same agency, and such funds may be used to satisfy the contractor liability for which the funds were withheld. In the event of a
contractor's failure to pay any laborer or mechanic, including any apprentice or helper working on the site of the work all or part of the wages required by the contract, or upon the contractor's failure to submit the required records as discussed in paragraph 3.d. of this section, the contracting agency may on its own initiative and after written notice to the contractor, take such action as may be necessary to cause the
suspension of any further payment, advance, or guarantee of funds until such violations have ceased.
b. Priority to withheld funds. The Department has priority to funds withheld or to be withheld in accordance with paragraph EXHIBIT F Page 97 of 110 EXHIBIT 1
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6 2.a. of this section or Section V, paragraph 3.a., or both, over claims to those funds by:
(1) A contractor's surety(ies), including without limitation performance bond sureties and payment bond sureties;
(2) A contracting agency for its reprocurement costs;
(3) A trustee(s) (either a court-appointed trustee or a U.S. trustee, or both) in bankruptcy of a contractor, or a contractor's bankruptcy estate;
(4) A contractor's assignee(s);
(5) A contractor's successor(s); or
(6) A claim asserted under the Prompt Payment Act, 31
U.S.C. 3901–3907.

3. Records and certified payrolls (29 CFR 5.5)
a. Basic record requirements (1) Length of record retention.

All regular payrolls and other basic records must be
maintained by the contractor and any subcontractor during the course of the work and preserved for all laborers and
mechanics working at the site of the work (or otherwise working in construction or development of the project under a development statute) for a period of at least 3 years after all the work on the prime contract is completed.
(2) Information required. Such records must contain the name; Social Security number; last known address, telephone number, and email address of each such worker; each
worker's correct classification(s) of work actually performed; hourly rates of wages paid (including rates of contributions or costs anticipated for bona fide fringe benefits or cash equivalents thereof of the types described in 40 U.S.C. 3141(2)(B) of the Davis-Bacon Act); daily and weekly number of hours actually worked in total and on each covered contract; deductions made; and actual wages paid.
(3) Additional records relating to fringe benefits. Whenever the Secretary of Labor has found under paragraph 1.e. of this section that the wages of any laborer or mechanic include the amount of any costs reasonably anticipated in providing benefits under a plan or program described in 40 U.S.C. 3141(2)(B) of the Davis-Bacon Act, the contractor must
maintain records which show that the commitment to provide such benefits is enforceable, that the plan or program is financially responsible, and that the plan or program has been communicated in writing to the laborers or mechanics affected, and records which show the costs anticipated or the actual cost incurred in providing such benefits.
(4) Additional records relating to apprenticeship. Contractors with apprentices working under approved programs must
maintain written evidence of the registration of apprenticeship programs, the registration of the apprentices, and the ratios and wage rates prescribed in the applicable programs.
b. Certified payroll requirements (1) Frequency and method of submission. The contractor or subcontractor must submit weekly, for each week in which any DBA- or Related Actscovered work is performed, certified payrolls to the contracting agency. The prime contractor is responsible for the submission of all certified payrolls by all subcontractors. A contracting agency or prime contractor may permit or require contractors to submit certified payrolls through an electronic system, as long as the electronic system requires a legally valid electronic signature; the system allows the contractor, the contracting agency, and the Department of Labor to access the certified payrolls upon request for at least 3 years after the work on the prime contract has been completed; and the contracting
agency or prime contractor permits other methods of
submission in situations where the contractor is unable or limited in its ability to use or access the electronic system. (2) Information required. The certified payrolls submitted must set out accurately and completely all of the information required to be maintained under paragraph 3.a.(2) of this section, except that full Social Security numbers and last known addresses, telephone numbers, and email addresses must not be included on weekly transmittals. Instead, the certified payrolls need only include an individually identifying number for each worker ( e.g., the last four digits of the worker's Social Security number). The required weekly
certified payroll information may be submitted using Optional Form WH–347 or in any other format desired. Optional Form WH–347 is available for this purpose from the Wage and Hour Division website at https://www.dol.gov/sites/dolgov/files/WHD/ legacy/files/wh347/.pdf or its successor website. It is not a violation of this section for a prime contractor to require a subcontractor to provide full Social Security numbers and last known addresses, telephone numbers, and email addresses to the prime contractor for its own records, without weekly submission by the subcontractor to the contracting agency. (3) Statement of Compliance. Each certified payroll
submitted must be accompanied by a “Statement of
Compliance,” signed by the contractor or subcontractor, or the contractor's or subcontractor's agent who pays or supervises the payment of the persons working on the contract, and must certify the following:
(i) That the certified payroll for the payroll period contains the information required to be provided under paragraph 3.b. of this section, the appropriate information and basic records are being maintained under paragraph 3.a. of this section, and such information and records are correct and complete; (ii) That each laborer or mechanic (including each helper and apprentice) working on the contract during the payroll period has been paid the full weekly wages earned, without rebate, either directly or indirectly, and that no deductions have been made either directly or indirectly from the full wages earned, other than permissible deductions as set
forth in 29 CFR part 3; and
(iii) That each laborer or mechanic has been paid not less than the applicable wage rates and fringe benefits or cash equivalents for the classification(s) of work actually
performed, as specified in the applicable wage determination incorporated into the contract.
(4) Use of Optional Form WH–347. The weekly submission
of a properly executed certification set forth on the reverse side of Optional Form WH–347 will satisfy the requirement for submission of the “Statement of Compliance” required by paragraph 3.b.(3) of this section.

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7 (5) Signature. The signature by the contractor,
subcontractor, or the contractor's or subcontractor's agent must be an original handwritten signature or a legally valid electronic signature.
(6) Falsification. The falsification of any of the above certifications may subject the contractor or subcontractor to civil or criminal prosecution under 18 U.S.C. 1001 and 31 U.S.C. 3729.
(7) Length of certified payroll retention. The contractor or subcontractor must preserve all certified payrolls during the course of the work and for a period of 3 years after all the work on the prime contract is completed.
c. Contracts, subcontracts, and related documents. The
contractor or subcontractor must maintain this contract or subcontract and related documents including, without
limitation, bids, proposals, amendments, modifications, and extensions. The contractor or subcontractor must preserve these contracts, subcontracts, and related documents during the course of the work and for a period of 3 years after all the work on the prime contract is completed.
d. Required disclosures and access (1) Required record
disclosures and access to workers. The contractor or
subcontractor must make the records required under
paragraphs 3.a. through 3.c. of this section, and any other documents that the contracting agency, the State DOT, the FHWA, or the Department of Labor deems necessary to
determine compliance with the labor standards provisions of any of the applicable statutes referenced by § 5.1, available for inspection, copying, or transcription by authorized
representatives of the contracting agency, the State DOT, the FHWA, or the Department of Labor, and must permit such
representatives to interview workers during working hours on the job.
(2) Sanctions for non-compliance with records and worker access requirements. If the contractor or subcontractor fails to submit the required records or to make them available, or refuses to permit worker interviews during working hours on the job, the Federal agency may, after written notice to the contractor, sponsor, applicant, owner, or other entity, as the case may be, that maintains such records or that employs such workers, take such action as may be necessary to cause the suspension of any further payment, advance, or guarantee of funds. Furthermore, failure to submit the required records upon request or to make such records available, or to permit worker interviews during working hours on the job, may be grounds for debarment action pursuant to § 5.12. In addition, any contractor or other person that fails to submit the required records or make those records available to WHD within the time WHD requests that the records be produced will be
precluded from introducing as evidence in an administrative proceeding under 29 CFR part 6 any of the required records that were not provided or made available to WHD. WHD will take into consideration a reasonable request from the
contractor or person for an extension of the time for
submission of records. WHD will determine the
reasonableness of the request and may consider, among other things, the location of the records and the volume of
production.
(3) Required information disclosures. Contractors and
subcontractors must maintain the full Social Security number and last known address, telephone number, and email address of each covered worker, and must provide them upon request to the contracting agency, the State DOT, the FHWA, the contractor, or the Wage and Hour Division of the Department of Labor for purposes of an investigation or other compliance action.

4. Apprentices and equal employment opportunity (29 CFR

5.5)
a. Apprentices (1) Rate of pay. Apprentices will be permitted to work at less than the predetermined rate for the work they perform when they are employed pursuant to and individually registered in a bona fide apprenticeship program registered with the U.S. Department of Labor, Employment and Training Administration, Office of Apprenticeship (OA), or with a State Apprenticeship Agency recognized by the OA. A person who is not individually registered in the program, but who has been certified by the OA or a State Apprenticeship Agency (where appropriate) to be eligible for probationary employment as an apprentice, will be permitted to work at less than the
predetermined rate for the work they perform in the first 90 days of probationary employment as an apprentice in such a program. In the event the OA or a State Apprenticeship
Agency recognized by the OA withdraws approval of an
apprenticeship program, the contractor will no longer be permitted to use apprentices at less than the applicable predetermined rate for the work performed until an acceptable program is approved.
(2) Fringe benefits. Apprentices must be paid fringe benefits in accordance with the provisions of the apprenticeship program. If the apprenticeship program does not specify fringe benefits, apprentices must be paid the full amount of fringe benefits listed on the wage determination for the applicable classification. If the Administrator determines that a different practice prevails for the applicable apprentice classification, fringe benefits must be paid in accordance with that
determination.
(3) Apprenticeship ratio. The allowable ratio of apprentices to journeyworkers on the job site in any craft classification must not be greater than the ratio permitted to the contractor as to the entire work force under the registered program or the ratio applicable to the locality of the project pursuant to paragraph

4.a.(4) of this section. Any worker listed on a payroll at an apprentice wage rate, who is not registered or otherwise employed as stated in paragraph 4.a.(1) of this section, must be paid not less than the applicable wage rate on the wage determination for the classification of work actually performed.

In addition, any apprentice performing work on the job site in excess of the ratio permitted under this section must be paid not less than the applicable wage rate on the wage
determination for the work actually performed.
(4) Reciprocity of ratios and wage rates. Where a contractor is performing construction on a project in a locality other than the locality in which its program is registered, the ratios and wage rates (expressed in percentages of the journeyworker's hourly rate) applicable within the locality in which the construction is being performed must be observed. If there is no applicable ratio or wage rate for the locality of the project, the ratio and wage rate specified in the contractor's registered program must be observed.
b. Equal employment opportunity. The use of apprentices and journeyworkers under this part must be in conformity with EXHIBIT F Page 99 of 110 EXHIBIT 1
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8 the equal employment opportunity requirements of Executive Order 11246, as amended, and 29 CFR part 30.
c. Apprentices and Trainees (programs of the U.S. DOT).

Apprentices and trainees working under apprenticeship and skill training programs which have been certified by the Secretary of Transportation as promoting EEO in connection with Federal-aid highway construction programs are not
subject to the requirements of paragraph 4 of this Section IV. 23 CFR 230.111(e)(2). The straight time hourly wage rates for apprentices and trainees under such programs will be
established by the particular programs. The ratio of
apprentices and trainees to journeyworkers shall not be greater than permitted by the terms of the particular program.

5. Compliance with Copeland Act requirements. The
contractor shall comply with the requirements of 29 CFR part 3, which are incorporated by reference in this contract as provided in 29 CFR 5.5.

6. Subcontracts. The contractor or subcontractor must insert FHWA-1273 in any subcontracts, along with the applicable wage determination(s) and such other clauses or contract modifications as the contracting agency may by appropriate instructions require, and a clause requiring the subcontractors to include these clauses and wage determination(s) in any lower tier subcontracts. The prime contractor is responsible for the compliance by any subcontractor or lower tier
subcontractor with all the contract clauses in this section. In the event of any violations of these clauses, the prime contractor and any subcontractor(s) responsible will be liable for any unpaid wages and monetary relief, including interest from the date of the underpayment or loss, due to any workers of lower-tier subcontractors, and may be subject to debarment, as appropriate. 29 CFR 5.5.

7. Contract termination: debarment. A breach of the
contract clauses in 29 CFR 5.5 may be grounds for termination of the contract, and for debarment as a contractor and a subcontractor as provided in 29 CFR 5.12.

8. Compliance with Davis-Bacon and Related Act
requirements. All rulings and interpretations of the DavisBacon and Related Acts contained in 29 CFR parts 1, 3, and 5 are herein incorporated by reference in this contract as provided in 29 CFR 5.5.

9. Disputes concerning labor standards. As provided in 29 CFR 5.5, disputes arising out of the labor standards provisions of this contract shall not be subject to the general disputes clause of this contract. Such disputes shall be resolved in accordance with the procedures of the Department of Labor set forth in 29 CFR parts 5, 6, and 7. Disputes within the meaning of this clause include disputes between the contractor (or any of its subcontractors) and the contracting agency, the U.S. Department of Labor, or the employees or their
representatives.

10. Certification of eligibility. a. By entering into this contract, the contractor certifies that neither it nor any person or firm who has an interest in the contractor's firm is a person or firm ineligible to be awarded Government contracts by virtue of 40 U.S.C. 3144(b) or § 5.12(a).
b. No part of this contract shall be subcontracted to any person or firm ineligible for award of a Government contract by virtue of 40 U.S.C. 3144(b) or § 5.12(a).
c. The penalty for making false statements is prescribed in the U.S. Code, Title 18 Crimes and Criminal Procedure, 18 U.S.C. 1001.

11. Anti-retaliation. It is unlawful for any person to discharge, demote, intimidate, threaten, restrain, coerce, blacklist, harass, or in any other manner discriminate against, or to cause any person to discharge, demote, intimidate, threaten, restrain, coerce, blacklist, harass, or in any other manner discriminate against, any worker or job applicant for:
a. Notifying any contractor of any conduct which the worker reasonably believes constitutes a violation of the DBA, Related Acts, this part, or 29 CFR part 1 or 3;
b. Filing any complaint, initiating or causing to be initiated any proceeding, or otherwise asserting or seeking to assert on behalf of themselves or others any right or protection under the DBA, Related Acts, this part, or 29 CFR part 1 or 3;
c. Cooperating in any investigation or other compliance action, or testifying in any proceeding under the DBA, Related Acts, this part, or 29 CFR part 1 or 3; or
d. Informing any other person about their rights under the DBA, Related Acts, this part, or 29 CFR part 1 or 3.

V. CONTRACT WORK HOURS AND SAFETY STANDARDS
ACT
Pursuant to 29 CFR 5.5(b), the following clauses apply to any Federal-aid construction contract in an amount in excess of $100,000 and subject to the overtime provisions of the
Contract Work Hours and Safety Standards Act. These
clauses shall be inserted in addition to the clauses required by 29 CFR 5.5(a) or 29 CFR 4.6. As used in this paragraph, the terms laborers and mechanics include watchpersons and
guards.

1. Overtime requirements. No contractor or subcontractor contracting for any part of the contract work which may require or involve the employment of laborers or mechanics shall require or permit any such laborer or mechanic in any
workweek in which he or she is employed on such work to work in excess of forty hours in such workweek unless such laborer or mechanic receives compensation at a rate not less than one and one-half times the basic rate of pay for all hours worked in excess of forty hours in such workweek. 29 CFR

5.5. 2. Violation; liability for unpaid wages; liquidated damages. In the event of any violation of the clause set forth in paragraph 1. of this section the contractor and any
subcontractor responsible therefor shall be liable for the unpaid wages and interest from the date of the underpayment.

In addition, such contractor and subcontractor shall be liable to the United States (in the case of work done under contract for the District of Columbia or a territory, to such District or to such territory), for liquidated damages. Such liquidated damages shall be computed with respect to each individual laborer or EXHIBIT F Page 100 of 110 EXHIBIT 1
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9 mechanic, including watchpersons and guards, employed in violation of the clause set forth in paragraph 1. of this section, in the sum currently provided in 29 CFR 5.5(b)(2)* for each calendar day on which such individual was required or
permitted to work in excess of the standard workweek of forty hours without payment of the overtime wages required by the clause set forth in paragraph 1. of this section.
* $31 as of January 15, 2023 (See 88 FR 88 FR 2210) as may be adjusted annually by the Department of Labor, pursuant to the Federal Civil Penalties Inflation Adjustment Act of 1990.

3. Withholding for unpaid wages and liquidated damages
a. Withholding process. The FHWA or the contracting
agency may, upon its own action, or must, upon written
request of an authorized representative of the Department of Labor, withhold or cause to be withheld from the contractor so much of the accrued payments or advances as may be
considered necessary to satisfy the liabilities of the prime contractor or any subcontractor for any unpaid wages;
monetary relief, including interest; and liquidated damages required by the clauses set forth in this section on this contract, any other Federal contract with the same prime contractor, or any other federally assisted contract subject to the Contract Work Hours and Safety Standards Act that is held by the same prime contractor (as defined in § 5.2). The necessary funds may be withheld from the contractor under this contract, any other Federal contract with the same prime contractor, or any other federally assisted contract that is subject to the Contract Work Hours and Safety Standards Act and is held by the same prime contractor, regardless of whether the other contract was awarded or assisted by the same agency, and such funds may be used to satisfy the
contractor liability for which the funds were withheld. b. Priority to withheld funds. The Department has priority to funds withheld or to be withheld in accordance with Section IV paragraph 2.a. or paragraph 3.a. of this section, or both, over claims to those funds by:
(1) A contractor's surety(ies), including without limitation performance bond sureties and payment bond sureties;
(2) A contracting agency for its reprocurement costs;
(3) A trustee(s) (either a court-appointed trustee or a U.S. trustee, or both) in bankruptcy of a contractor, or a contractor's bankruptcy estate;
(4) A contractor's assignee(s);
(5) A contractor's successor(s); or
(6) A claim asserted under the Prompt Payment Act, 31
U.S.C. 3901–3907.

4. Subcontracts. The contractor or subcontractor must insert in any subcontracts the clauses set forth in paragraphs 1. through 5. of this section and a clause requiring the
subcontractors to include these clauses in any lower tier subcontracts. The prime contractor is responsible for
compliance by any subcontractor or lower tier subcontractor with the clauses set forth in paragraphs 1. through 5. In the event of any violations of these clauses, the prime contractor and any subcontractor(s) responsible will be liable for any unpaid wages and monetary relief, including interest from the date of the underpayment or loss, due to any workers of lowertier subcontractors, and associated liquidated damages and may be subject to debarment, as appropriate.

5. Anti-retaliation. It is unlawful for any person to discharge, demote, intimidate, threaten, restrain, coerce, blacklist, harass, or in any other manner discriminate against, or to cause any person to discharge, demote, intimidate, threaten, restrain, coerce, blacklist, harass, or in any other manner discriminate against, any worker or job applicant for:
a. Notifying any contractor of any conduct which the worker reasonably believes constitutes a violation of the Contract Work Hours and Safety Standards Act (CWHSSA) or its
implementing regulations in this part;
b. Filing any complaint, initiating or causing to be initiated any proceeding, or otherwise asserting or seeking to assert on behalf of themselves or others any right or protection under CWHSSA or this part;
c. Cooperating in any investigation or other compliance action, or testifying in any proceeding under CWHSSA or this part; or
d. Informing any other person about their rights under
CWHSSA or this part.

VI. SUBLETTING OR ASSIGNING THE CONTRACT
This provision is applicable to all Federal-aid construction contracts on the National Highway System pursuant to 23 CFR 635.116.

1. The contractor shall perform with its own organization contract work amounting to not less than 30 percent (or a greater percentage if specified elsewhere in the contract) of the total original contract price, excluding any specialty items designated by the contracting agency. Specialty items may be performed by subcontract and the amount of any such
specialty items performed may be deducted from the total original contract price before computing the amount of work required to be performed by the contractor's own organization (23 CFR 635.116).
a. The term “perform work with its own organization” in paragraph 1 of Section VI refers to workers employed or leased by the prime contractor, and equipment owned or
rented by the prime contractor, with or without operators.

Such term does not include employees or equipment of a
subcontractor or lower tier subcontractor, agents of the prime contractor, or any other assignees. The term may include payments for the costs of hiring leased employees from an employee leasing firm meeting all relevant Federal and State regulatory requirements. Leased employees may only be
included in this term if the prime contractor meets all of the following conditions: (based on longstanding interpretation) (1) the prime contractor maintains control over the
supervision of the day-to-day activities of the leased
employees;
(2) the prime contractor remains responsible for the quality of the work of the leased employees;
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10 (3) the prime contractor retains all power to accept or exclude individual employees from work on the project; and (4) the prime contractor remains ultimately responsible for the payment of predetermined minimum wages, the
submission of payrolls, statements of compliance and all other Federal regulatory requirements.
b. "Specialty Items" shall be construed to be limited to work that requires highly specialized knowledge, abilities, or equipment not ordinarily available in the type of contracting organizations qualified and expected to bid or propose on the contract as a whole and in general are to be limited to minor components of the overall contract. 23 CFR 635.102.

2. Pursuant to 23 CFR 635.116(a), the contract amount upon which the requirements set forth in paragraph (1) of Section VI is computed includes the cost of material and manufactured products which are to be purchased or produced by the
contractor under the contract provisions.

3. Pursuant to 23 CFR 635.116(c), the contractor shall furnish (a) a competent superintendent or supervisor who is employed by the firm, has full authority to direct performance of the work in accordance with the contract requirements, and is in charge of all construction operations (regardless of who performs the work) and (b) such other of its own organizational resources (supervision, management, and engineering services) as the contracting officer determines is necessary to assure the performance of the contract.

4. No portion of the contract shall be sublet, assigned or otherwise disposed of except with the written consent of the contracting officer, or authorized representative, and such consent when given shall not be construed to relieve the contractor of any responsibility for the fulfillment of the contract. Written consent will be given only after the
contracting agency has assured that each subcontract is evidenced in writing and that it contains all pertinent provisions and requirements of the prime contract. (based on longstanding interpretation of 23 CFR 635.116).

5. The 30-percent self-performance requirement of paragraph (1) is not applicable to design-build contracts; however, contracting agencies may establish their own self-performance requirements. 23 CFR 635.116(d).

VII. SAFETY: ACCIDENT PREVENTION
This provision is applicable to all Federal-aid construction contracts and to all related subcontracts.

1. In the performance of this contract the contractor shall comply with all applicable Federal, State, and local laws governing safety, health, and sanitation (23 CFR Part 635).

The contractor shall provide all safeguards, safety devices and protective equipment and take any other needed actions as it determines, or as the contracting officer may determine, to be reasonably necessary to protect the life and health of
employees on the job and the safety of the public and to protect property in connection with the performance of the work covered by the contract. 23 CFR 635.108.

2. It is a condition of this contract, and shall be made a condition of each subcontract, which the contractor enters into pursuant to this contract, that the contractor and any
subcontractor shall not permit any employee, in performance of the contract, to work in surroundings or under conditions which are unsanitary, hazardous or dangerous to his/her health or safety, as determined under construction safety and health standards (29 CFR Part 1926) promulgated by the
Secretary of Labor, in accordance with Section 107 of the Contract Work Hours and Safety Standards Act (40 U.S.C. 3704). 29 CFR 1926.10.

3. Pursuant to 29 CFR 1926.3, it is a condition of this contract that the Secretary of Labor or authorized representative thereof, shall have right of entry to any site of contract performance to inspect or investigate the matter of compliance with the construction safety and health standards and to carry out the duties of the Secretary under Section 107 of the Contract Work Hours and Safety Standards Act (40 U.S.C. 3704).

VIII. FALSE STATEMENTS CONCERNING HIGHWAY

PROJECTS
This provision is applicable to all Federal-aid construction contracts and to all related subcontracts.

In order to assure high quality and durable construction in conformity with approved plans and specifications and a high degree of reliability on statements and representations made by engineers, contractors, suppliers, and workers on Federalaid highway projects, it is essential that all persons concerned with the project perform their functions as carefully, thoroughly, and honestly as possible. Willful falsification, distortion, or misrepresentation with respect to any facts related to the project is a violation of Federal law. To prevent any
misunderstanding regarding the seriousness of these and similar acts, Form FHWA-1022 shall be posted on each
Federal-aid highway project (23 CFR Part 635) in one or more places where it is readily available to all persons concerned with the project:
18 U.S.C. 1020 reads as follows:
"Whoever, being an officer, agent, or employee of the United States, or of any State or Territory, or whoever, whether a person, association, firm, or corporation, knowingly makes any false statement, false representation, or false report as to the character, quality, quantity, or cost of the material used or to be used, or the quantity or quality of the work performed or to be performed, or the cost thereof in connection with the submission of plans, maps, specifications, contracts, or costs of construction on any highway or related project submitted for approval to the Secretary of Transportation; or
Whoever knowingly makes any false statement, false
representation, false report or false claim with respect to the character, quality, quantity, or cost of any work performed or to be performed, or materials furnished or to be furnished, in connection with the construction of any highway or related project approved by the Secretary of Transportation; or Whoever knowingly makes any false statement or false
representation as to material fact in any statement, certificate, or report submitted pursuant to provisions of the Federal-aid Roads Act approved July 11, 1916, (39 Stat. 355), as
amended and supplemented;
Shall be fined under this title or imprisoned not more than 5 years or both."
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11 IX. IMPLEMENTATION OF CLEAN AIR ACT AND FEDERAL
WATER POLLUTION CONTROL ACT (42 U.S.C. 7606; 2
CFR 200.88; EO 11738)
This provision is applicable to all Federal-aid construction contracts in excess of $150,000 and to all related
subcontracts. 48 CFR 2.101; 2 CFR 200.327.

By submission of this bid/proposal or the execution of this contract or subcontract, as appropriate, the bidder, proposer, Federal-aid construction contractor, subcontractor, supplier, or vendor agrees to comply with all applicable standards, orders or regulations issued pursuant to the Clean Air Act (42 U.S.C. 7401-7671q) and the Federal Water Pollution Control Act, as amended (33 U.S.C. 1251-1387). Violations must be reported to the Federal Highway Administration and the Regional Office of the Environmental Protection Agency. 2 CFR Part 200, Appendix II.

The contractor agrees to include or cause to be included the requirements of this Section in every subcontract, and further agrees to take such action as the contracting agency may direct as a means of enforcing such requirements. 2 CFR 200.327.

X. CERTIFICATION REGARDING DEBARMENT,

SUSPENSION, INELIGIBILITY AND VOLUNTARY

EXCLUSION
This provision is applicable to all Federal-aid construction contracts, design-build contracts, subcontracts, lower-tier subcontracts, purchase orders, lease agreements, consultant contracts or any other covered transaction requiring FHWA approval or that is estimated to cost $25,000 or more – as defined in 2 CFR Parts 180 and 1200. 2 CFR 180.220 and
1200.220.

1. Instructions for Certification – First Tier Participants:

a. By signing and submitting this proposal, the prospective first tier participant is providing the certification set out below. b. The inability of a person to provide the certification set out below will not necessarily result in denial of participation in this covered transaction. The prospective first tier participant shall submit an explanation of why it cannot provide the certification set out below. The certification or explanation will be considered in connection with the department or agency's determination whether to enter into this transaction. However, failure of the prospective first tier participant to furnish a certification or an explanation shall disqualify such a person from participation in this transaction. 2 CFR 180.320.
c. The certification in this clause is a material representation of fact upon which reliance was placed when the contracting agency determined to enter into this transaction. If it is later determined that the prospective participant knowingly rendered an erroneous certification, in addition to other remedies available to the Federal Government, the contracting agency may terminate this transaction for cause of default. 2 CFR 180.325.
d. The prospective first tier participant shall provide immediate written notice to the contracting agency to whom this proposal is submitted if any time the prospective first tier participant learns that its certification was erroneous when submitted or has become erroneous by reason of changed
circumstances. 2 CFR 180.345 and 180.350.
e. The terms "covered transaction," "debarred,"
"suspended," "ineligible," "participant," "person," "principal," and "voluntarily excluded," as used in this clause, are defined in 2 CFR Parts 180, Subpart I, 180.900-180.1020, and 1200. “First Tier Covered Transactions” refers to any covered transaction between a recipient or subrecipient of Federal funds and a participant (such as the prime or general contract). “Lower Tier Covered Transactions” refers to any covered transaction under a First Tier Covered Transaction (such as subcontracts). “First Tier Participant” refers to the participant who has entered into a covered transaction with a recipient or subrecipient of Federal funds (such as the prime or general contractor). “Lower Tier Participant” refers any participant who has entered into a covered transaction with a First Tier Participant or other Lower Tier Participants (such as
subcontractors and suppliers).
f. The prospective first tier participant agrees by submitting this proposal that, should the proposed covered transaction be entered into, it shall not knowingly enter into any lower tier covered transaction with a person who is debarred,
suspended, declared ineligible, or voluntarily excluded from participation in this covered transaction, unless authorized by the department or agency entering into this transaction. 2 CFR 180.330.
g. The prospective first tier participant further agrees by submitting this proposal that it will include the clause titled "Certification Regarding Debarment, Suspension, Ineligibility and Voluntary Exclusion-Lower Tier Covered Transactions," provided by the department or contracting agency, entering into this covered transaction, without modification, in all lower tier covered transactions and in all solicitations for lower tier covered transactions exceeding the $25,000 threshold. 2 CFR 180.220 and 180.300.
h. A participant in a covered transaction may rely upon a certification of a prospective participant in a lower tier covered transaction that is not debarred, suspended, ineligible, or voluntarily excluded from the covered transaction, unless it knows that the certification is erroneous. 2 CFR 180.300; 180.320, and 180.325. A participant is responsible for
ensuring that its principals are not suspended, debarred, or otherwise ineligible to participate in covered transactions. 2 CFR 180.335. To verify the eligibility of its principals, as well as the eligibility of any lower tier prospective participants, each participant may, but is not required to, check the System for Award Management website (https://www.sam.gov/). 2 CFR
180.300, 180.320, and 180.325.
i. Nothing contained in the foregoing shall be construed to require the establishment of a system of records in order to render in good faith the certification required by this clause.

The knowledge and information of the prospective participant is not required to exceed that which is normally possessed by a prudent person in the ordinary course of business dealings. j. Except for transactions authorized under paragraph (f) of these instructions, if a participant in a covered transaction knowingly enters into a lower tier covered transaction with a person who is suspended, debarred, ineligible, or voluntarily excluded from participation in this transaction, in addition to other remedies available to the Federal Government, the department or agency may terminate this transaction for cause or default. 2 CFR 180.325.
* * * * *
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12 2. Certification Regarding Debarment, Suspension,
Ineligibility and Voluntary Exclusion – First Tier
Participants:
a. The prospective first tier participant certifies to the best of its knowledge and belief, that it and its principals:
(1) Are not presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participating in covered transactions by any Federal
department or agency, 2 CFR 180.335;.
(2) Have not within a three-year period preceding this
proposal been convicted of or had a civil judgment rendered against them for commission of fraud or a criminal offense in connection with obtaining, attempting to obtain, or performing a public (Federal, State, or local) transaction or contract under a public transaction; violation of Federal or State antitrust statutes or commission of embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements, or receiving stolen property, 2 CFR 180.800; (3) Are not presently indicted for or otherwise criminally or civilly charged by a governmental entity (Federal, State or local) with commission of any of the offenses enumerated in paragraph (a)(2) of this certification, 2 CFR 180.700 and 180.800; and
(4) Have not within a three-year period preceding this
application/proposal had one or more public transactions (Federal, State or local) terminated for cause or default. 2 CFR 180.335(d).
(5) Are not a corporation that has been convicted of a felony violation under any Federal law within the two-year period preceding this proposal (USDOT Order 4200.6 implementing appropriations act requirements); and
(6) Are not a corporation with any unpaid Federal tax liability that has been assessed, for which all judicial and
administrative remedies have been exhausted, or have lapsed, and that is not being paid in a timely manner pursuant to an agreement with the authority responsible for collecting the tax liability (USDOT Order 4200.6 implementing appropriations act requirements).
b. Where the prospective participant is unable to certify to any of the statements in this certification, such prospective participant should attach an explanation to this proposal. 2 CFR 180.335 and 180.340.
* * * * *

3. Instructions for Certification - Lower Tier Participants:
(Applicable to all subcontracts, purchase orders, and other lower tier transactions requiring prior FHWA approval or estimated to cost $25,000 or more - 2 CFR Parts 180 and 1200). 2 CFR 180.220 and 1200.220.
a. By signing and submitting this proposal, the prospective lower tier participant is providing the certification set out below. b. The certification in this clause is a material representation of fact upon which reliance was placed when this transaction was entered into. If it is later determined that the prospective lower tier participant knowingly rendered an erroneous
certification, in addition to other remedies available to the Federal Government, the department, or agency with which this transaction originated may pursue available remedies, including suspension and/or debarment.
c. The prospective lower tier participant shall provide immediate written notice to the person to which this proposal is submitted if at any time the prospective lower tier participant learns that its certification was erroneous by reason of changed circumstances. 2 CFR 180.365.
d. The terms "covered transaction," "debarred,"
"suspended," "ineligible," "participant," "person," "principal," and "voluntarily excluded," as used in this clause, are defined in 2 CFR Parts 180, Subpart I, 180.900 – 180.1020, and 1200.

You may contact the person to which this proposal is
submitted for assistance in obtaining a copy of those
regulations. “First Tier Covered Transactions” refers to any covered transaction between a recipient or subrecipient of Federal funds and a participant (such as the prime or general contract). “Lower Tier Covered Transactions” refers to any covered transaction under a First Tier Covered Transaction (such as subcontracts). “First Tier Participant” refers to the participant who has entered into a covered transaction with a recipient or subrecipient of Federal funds (such as the prime or general contractor). “Lower Tier Participant” refers any participant who has entered into a covered transaction with a First Tier Participant or other Lower Tier Participants (such as subcontractors and suppliers).
e. The prospective lower tier participant agrees by
submitting this proposal that, should the proposed covered transaction be entered into, it shall not knowingly enter into any lower tier covered transaction with a person who is debarred, suspended, declared ineligible, or voluntarily excluded from participation in this covered transaction, unless authorized by the department or agency with which this
transaction originated. 2 CFR 1200.220 and 1200.332.
f. The prospective lower tier participant further agrees by submitting this proposal that it will include this clause titled "Certification Regarding Debarment, Suspension, Ineligibility and Voluntary Exclusion-Lower Tier Covered Transaction," without modification, in all lower tier covered transactions and in all solicitations for lower tier covered transactions exceeding the $25,000 threshold. 2 CFR 180.220 and 1200.220.
g. A participant in a covered transaction may rely upon a certification of a prospective participant in a lower tier covered transaction that is not debarred, suspended, ineligible, or voluntarily excluded from the covered transaction, unless it knows that the certification is erroneous. A participant is responsible for ensuring that its principals are not suspended, debarred, or otherwise ineligible to participate in covered transactions. To verify the eligibility of its principals, as well as the eligibility of any lower tier prospective participants, each participant may, but is not required to, check the System for Award Management website (https://www.sam.gov/), which is compiled by the General Services Administration. 2 CFR
180.300, 180.320, 180.330, and 180.335.
h. Nothing contained in the foregoing shall be construed to require establishment of a system of records in order to render in good faith the certification required by this clause. The knowledge and information of participant is not required to exceed that which is normally possessed by a prudent person in the ordinary course of business dealings.
i. Except for transactions authorized under paragraph e of these instructions, if a participant in a covered transaction knowingly enters into a lower tier covered transaction with a person who is suspended, debarred, ineligible, or voluntarily EXHIBIT F Page 104 of 110 EXHIBIT 1
1151
13 excluded from participation in this transaction, in addition to other remedies available to the Federal Government, the department or agency with which this transaction originated may pursue available remedies, including suspension and/or debarment. 2 CFR 180.325.
* * * * *

4. Certification Regarding Debarment, Suspension,
Ineligibility and Voluntary Exclusion--Lower Tier
Participants:
a. The prospective lower tier participant certifies, by submission of this proposal, that neither it nor its principals:
(1) is presently debarred, suspended, proposed for
debarment, declared ineligible, or voluntarily excluded from participating in covered transactions by any Federal
department or agency, 2 CFR 180.355;
(2) is a corporation that has been convicted of a felony violation under any Federal law within the two-year period preceding this proposal (USDOT Order 4200.6 implementing appropriations act requirements); and
(3) is a corporation with any unpaid Federal tax liability that has been assessed, for which all judicial and administrative remedies have been exhausted, or have lapsed, and that is not being paid in a timely manner pursuant to an agreement with the authority responsible for collecting the tax liability. (USDOT Order 4200.6 implementing appropriations act
requirements)
b. Where the prospective lower tier participant is unable to certify to any of the statements in this certification, such prospective participant should attach an explanation to this proposal.
* * * * *
XI. CERTIFICATION REGARDING USE OF CONTRACT

FUNDS FOR LOBBYING
This provision is applicable to all Federal-aid construction contracts and to all related subcontracts which exceed
$100,000. 49 CFR Part 20, App. A.

1. The prospective participant certifies, by signing and submitting this bid or proposal, to the best of his or her knowledge and belief, that:
a. No Federal appropriated funds have been paid or will be paid, by or on behalf of the undersigned, to any person for influencing or attempting to influence an officer or employee of any Federal agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of
Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or
cooperative agreement.
b. If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any Federal agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in
connection with this Federal contract, grant, loan, or
cooperative agreement, the undersigned shall complete and submit Standard Form-LLL, "Disclosure Form to Report
Lobbying," in accordance with its instructions.

2. This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by 31 U.S.C. 1352. Any person who fails to file the required
certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure.

3. The prospective participant also agrees by submitting its bid or proposal that the participant shall require that the language of this certification be included in all lower tier subcontracts, which exceed $100,000 and that all such
recipients shall certify and disclose accordingly.

XII. USE OF UNITED STATES-FLAG VESSELS:

This provision is applicable to all Federal-aid construction contracts, design-build contracts, subcontracts, lower-tier subcontracts, purchase orders, lease agreements, or any other covered transaction. 46 CFR Part 381.

This requirement applies to material or equipment that is acquired for a specific Federal-aid highway project. 46 CFR 381.7. It is not applicable to goods or materials that come into inventories independent of an FHWA funded-contract.

When oceanic shipments (or shipments across the Great
Lakes) are necessary for materials or equipment acquired for a specific Federal-aid construction project, the bidder, proposer, contractor, subcontractor, or vendor agrees:

1. To utilize privately owned United States-flag commercial vessels to ship at least 50 percent of the gross tonnage (computed separately for dry bulk carriers, dry cargo liners, and tankers) involved, whenever shipping any equipment, material, or commodities pursuant to this contract, to the extent such vessels are available at fair and reasonable rates for United States-flag commercial vessels. 46 CFR 381.7.

2. To furnish within 20 days following the date of loading for shipments originating within the United States or within 30 working days following the date of loading for shipments originating outside the United States, a legible copy of a rated, ‘on-board’ commercial ocean bill-of-lading in English for each shipment of cargo described in paragraph (b)(1) of this section to both the Contracting Officer (through the prime contractor in the case of subcontractor bills-of-lading) and to the Office of Cargo and Commercial Sealift (MAR-620), Maritime
Administration, Washington, DC 20590. (MARAD requires
copies of the ocean carrier's (master) bills of lading, certified onboard, dated, with rates and charges. These bills of lading may contain business sensitive information and therefore may be submitted directly to MARAD by the Ocean Transportation Intermediary on behalf of the contractor). 46 CFR 381.7.

EXHIBIT F Page 105 of 110 EXHIBIT 1
1152
14 ATTACHMENT A - EMPLOYMENT AND MATERIALS

PREFERENCE FOR APPALACHIAN DEVELOPMENT

HIGHWAY SYSTEM OR APPALACHIAN LOCAL ACCESS
ROAD CONTRACTS (23 CFR 633, Subpart B, Appendix B)
This provision is applicable to all Federal-aid projects funded under the Appalachian Regional Development Act of 1965.

1. During the performance of this contract, the contractor undertaking to do work which is, or reasonably may be, done as on-site work, shall give preference to qualified persons who regularly reside in the labor area as designated by the DOL wherein the contract work is situated, or the subregion, or the Appalachian counties of the State wherein the contract work is situated, except:
a. To the extent that qualified persons regularly residing in the area are not available.
b. For the reasonable needs of the contractor to employ supervisory or specially experienced personnel necessary to assure an efficient execution of the contract work.
c. For the obligation of the contractor to offer employment to present or former employees as the result of a lawful collective bargaining contract, provided that the number of nonresident persons employed under this subparagraph (1c) shall not exceed 20 percent of the total number of employees employed by the contractor on the contract work, except as provided in subparagraph (4) below.

2. The contractor shall place a job order with the State Employment Service indicating (a) the classifications of the laborers, mechanics and other employees required to perform the contract work, (b) the number of employees required in each classification, (c) the date on which the participant estimates such employees will be required, and (d) any other pertinent information required by the State Employment
Service to complete the job order form. The job order may be placed with the State Employment Service in writing or by telephone. If during the course of the contract work, the information submitted by the contractor in the original job order is substantially modified, the participant shall promptly notify the State Employment Service.

3. The contractor shall give full consideration to all qualified job applicants referred to him by the State Employment
Service. The contractor is not required to grant employment to any job applicants who, in his opinion, are not qualified to perform the classification of work required.

4. If, within one week following the placing of a job order by the contractor with the State Employment Service, the State Employment Service is unable to refer any qualified job applicants to the contractor, or less than the number
requested, the State Employment Service will forward a
certificate to the contractor indicating the unavailability of applicants. Such certificate shall be made a part of the contractor's permanent project records. Upon receipt of this certificate, the contractor may employ persons who do not normally reside in the labor area to fill positions covered by the certificate, notwithstanding the provisions of subparagraph (1c) above.

5. The provisions of 23 CFR 633.207(e) allow the
contracting agency to provide a contractual preference for the use of mineral resource materials native to the Appalachian region.

6. The contractor shall include the provisions of Sections 1 through 4 of this Attachment A in every subcontract for work which is, or reasonably may be, done as on-site work.

EXHIBIT F Page 106 of 110 EXHIBIT 1
1153
1 BOND FOR FAITHFUL PERFORMANCE
KNOW ALL MEN BY THESE PRESENTS:

That we, __________________________________________________, a STATE OF CALIFORNIA CORPORATION, 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 TWO

MILLION TWO HUNDRED SEVENTY NINE THOUSAND THREE HUNDRED FORTY NINE AND NO/100 DOLLARS ($2,279,349), 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:

BRIDGE REHABILITATION
PROJECT NO. WT16003/FEDERAL PROJECT NO. BPMP-5008(157)
NOW, THEREFORE, if the above bounded Principal, CONTRACTOR, Company or
Corporation or its Subcontractor, shall well and truly perform the work contracted to be done under said contract, then this obligation to be null and void; otherwise to remain in full force and effect.

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

1154
2 and consent by said Surety is hereby given, and the said Surety hereby waives the provisions of Sections 2819 and 2845 of the Civil Code of the State of California.

SIGNED AND SEALED on

APPROVED AS TO SURETY: By

PRINCIPAL

SURETY
APPROVED AS TO FORM & CONTENT:

MARCI A. ARREDONDO

OFFICE OF THE CITY ATTORNEY
By

ATTORNEY-IN-FACT
By

CITY ATTORNEY

1155
1 BOND FOR LABOR AND MATERIAL
KNOW ALL MEN BY THESE PRESENTS:

That we, VALENTINE CORPORATION, a STATE OF CALIFORNIA
CORPORATION, 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, and unto any and all material suppliers, persons, companies, or corporations furnishing materials, provisions, provender or other supplies used in, upon, for or about the performance of the work contemplated to be executed or performed under the contract hereinafter mentioned, and all persons, companies, or corporations renting or hiring teams, or implements of machinery, for or contributing to said work and all persons who perform work or labor upon the same, and all persons who supply both work and materials, and whose claims have not been paid by the contractor, company or corporation in the just and full sum of

TWO MILLION TWO HUNDRED SEVENTY NINE THOUSAND THREE HUNDRED FORTY NINE AND NO/100 DOLLARS ($2,279,349), in lawful money of the United States of America (being 100% of the contract price) for the payment whereof well and truly to be made to said City of Stockton and to said persons jointly and severally, the said principal and Surety bind themselves, their successors and assigns, jointly and severally, firmly by these presents.

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

BRIDGE REHABILITATION
PROJECT NO. WT16003/FEDERAL PROJECT NO. BPMP-5008(157)
NOW, THEREFORE, if the above bounden Principal, CONTRACTOR, Company or Corporation or its Subcontractor, fail to pay for all materials, provisions, provender, or other supplies, or teams, used in, upon, for or about the performance of the work

1156
2 contracted to be done, or for any work or labor done thereon of any kind, the Surety on this bond will pay the same, in an amount not exceeding the sum specified in this bond, provided that any and all claims hereunder shall be filed and proceedings had in connection therewith as required by the provisions of Division 3, Part 4, Title 15, Chapter 5, Article 1 of the Civil Code of California, provided that in case suit is brought upon this bond, a reasonable attorney's fee shall be awarded by the Court to the prevailing party in said suit; said attorney's fee to be fixed as costs in said suit, and to be included in the judgment therein rendered.

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

SIGNED AND SEALED on .

APPROVED AS TO SURETY: By

PRINCIPAL

SURETY
APPROVED AS TO FORM & CONTENT:

MARCI A. ARREDONDO

OFFICE OF THE CITY ATTORNEY
By

ATTORNEY-IN-FACT
By

CITY ATTORNEY

1157
City of Stockton
Legislation Text
File #: 26-0361, Version: 1
ADOPT RESOLUTION TO AUTHORIZE THE CITY STREET RE-STRIPING FISCAL YEAR 2025-26 SB1 PROJECT (ALL DISTRICTS - CITYWIDE)

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

1. Approve the Notice of Exemption No. NOE03-26 under the California Environmental Quality Act for the City Street Re-Striping Fiscal Year 2025-26 SB1, Project No. WD26009.

2. Approve the plans and specifications for the City Street Re-Striping Fiscal Year 2025-26 SB1, Project No. WD26009.

3. Award a Construction Contract in the amount of $215,632 to Central Striping Service, Inc. of Rancho Cordova, CA, for the City Street Re-Striping Fiscal Year 2025-26 SB1, Project No.

WD26009.

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

Summary
The City is responsible for maintaining 781 centerline miles of streets. The project will re-stripe 49 intersections Citywide and three centerline miles of arterial and collector roads, including lane line striping (Attachments A and B). The improvements include refreshing crosswalks, limit lines, and pavement legends that are worn. The project was included in the 2025-30 Five-Year Capital Improvement Plan (CIP).

On February 5, 2026, the City received three bids for this project. It is recommended that Council award a Construction Contract to the lowest responsive bidder, Central Striping Service, Inc., in the amount of $215,632. It is also recommended that Council adopt a resolution approving Notice of Exemption No. NOE03-26 under the California Environmental Quality Act (CEQA) and approving the plans and specifications for the project.

Construction is anticipated to begin in summer 2026 and be completed by fall 2026, weather permitting.

DISCUSSION
Background
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File #: 26-0361, Version: 1
On April 28, 2017, the Governor signed Senate Bill 1 (SB1), known as the Road Repair and Accountability Act of 2017. SB1 funding provides for basic road maintenance, rehabilitation, and critical safety needs on both the State highway and local streets and road systems. The California Transportation Commission (CTC) is responsible for oversight of funding and/or programs created with the approval of SB1.

SB1 provides funding for the Road Maintenance and Rehabilitation Account (RMRA) Program. Other programs include the Local Partnership Program, the Active Transportation Program, State Highway Operation and Protection Program, and Local Streets and Roads Program. The RMRA funding is part of the City's overall Gas Tax allocation; however, RMRA funds can only be expended on projects that meet eligibility criteria and have been approved by the CTC. RMRA funds are accounted for and reported separately from regular Gas Tax funds.

Approximately $8.4 million in SB1 RMRA Program funding was allocated to the City for Fiscal Year (FY) 2025-26 and approved by Council on April 1, 2025, by Resolution No. 2025-04-01-1215.

The City Street Re-Striping FY 2025-26 SB1, Project No. WD26009, was included in the 2025-30 Five-Year CIP. The project will re-stripe 49 intersections Citywide and three centerline miles of arterial and collector roads (Attachments A and B). The improvements include lane-line striping, refreshing crosswalks, limit lines, and pavement legends that are worn. Existing worn traffic stripes and markings will be primed, and a new coat of thermoplastic material will be applied. Thermoplastic comprises plastic, binders, and glass beads to provide durability and retro-reflectivity to aid nighttime driving. The application is anticipated to last approximately five years. The selection criteria for this project were developed through visual inspection of the roads, existing work orders, and citizen requests.

On July 26, 2016, Council adopted a Community Workforce and Training Agreement (CWTA). The CWTA became effective August 25, 2016, and applies to all Public Works projects over $1 million that are bid after that date. On July 16, 2019, by Motion No. 2019-07-16-1403, Council extended the CWTA term to August 25, 2024. On August 20, 2024, by Motion No. 2024-08-20-1203, Council extended the CWTA term to August 25, 2029. The CWTA was not applied to this project as the estimated construction cost was less than $1 million.

Present Situation
On January 16, 2026, the City Street Re-Striping FY 2025-26 SB1, Project No. WD26009, was advertised for bids. On February 5, 2026, three bids were received with the following results:

COMPANY NAME BID AMOUNT ADJUSTED BID AMOUNT
(local preference applied)
Central Striping Service, Inc.
(Rancho Cordova, CA) $215,632.00 $215,632.00
Chrisp Company
(Stockton, CA) $227,103.50 $222,561.43
Specialized Pavement Marking, LLC
City of Stockton Page 2 of 3 Printed on 6/5/2026
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File #: 26-0361, Version: 1
(Tualatin, OR) $354,436.50 $354,436.50
Engineer’s Estimate $226,454.00
The requirements of Stockton Municipal Code (SMC) section 3.68.090, Local Business Preference, apply to this project. Chrisp Company is located within San Joaquin County limits and is entitled to a two percent bid preference. Application of the Local Business Preference has no effect on the bid order. The Local Employment Ordinance, SMC section 3.68.095, also applies to this project.

The bid from Central Striping Service, Inc., the lowest responsive bidder, is regular in all respects and has the proper license to perform the work. It is recommended that Council approve the plans and specifications and award a Construction Contract to Central Striping Service, Inc. of Rancho Cordova, CA, in the amount of $215,632, for the City Street Re-Striping FY 2025-26 SB1, Project No.

WD26009.

The project is in conformance with the City’s General Plan, pursuant to California Government Code, section 65402, and is categorically exempt from the requirements of CEQA as specified under Section 15301(c) of the CEQA Guidelines. As a result, the project has been granted a categorical exemption. The activities related to this project constitute a discretionary project under the City’s jurisdiction and qualifies as a project that does not have a significant effect on the environment. The resolution will approve the filing of Notice of Exemption No. NOE03-26 under CEQA.

Construction is anticipated to begin in summer 2026 and be completed by fall 2026, weather permitting.

FINANCIAL SUMMARY
There are sufficient funds available in the City Street Re-Striping FY 2025-26 SB1, Project No.

WD26009, to award a Construction Contract to Central Striping Service, Inc. in the amount of $215,632.

Attachment A - Vicinity Map
Attachment B - Location List
City of Stockton Page 3 of 3 Printed on 6/5/2026
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CALAVER A S RIVER

MOSHER SLOUGH

MOSH ER SLOU GH
SO. BEAR CR EEK

BEAR CREEK

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LAKE
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LAKE

FIVE MILE SLOUGH

SPANOS LAKE

SOUTH BEAR C REEK

MOSH ER SLOU GH

FIVE MILE SLOUGH

DUCK CREEK
W.I.D . SOUTH M AIN C AN AL

STOCKTON DIVERTING C AN AL

SAN JOAQU IN RIVER

SAN JOAQU IN RIVER

CAL AVERAS RIV ER

CALAVERAS RIVER

CALAVERAS R IVER

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OXID ATION POND #3
OXID ATION POND #2
OXID ATION POND #1

CONSTRUC TED W ETLAN DS
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NORTH
LAKE
GR UPE
LAKE

MOSH ER SLOU GH

BEAR CREEK

BEAR CREEK

MOSH ER SLOU GH

FOURTEEN M ILE SLOU GH
LAKE

LINCOLN FOURTEEN M ILE SLOU GH

BR OOKSIDE LAKE HERON
LAKE

SM ITHS CANAL

SM ITHS CANAL YOSEMITE
LAKE

MOR MON SL

SAN JOAQUIN RIVE R

LEY SLOU H

PIXLEY SLOU GH

BEAR CREEK BEAR CREEK BEAR CREEK

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MOSHER
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MOSH ER SLOU GH

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BEN HOLT DR DAVIS RD

WEST LN

MORADA LN

HAMMER LN

MARCH LN
EL
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A
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ST

HARDING WY

FREMONT ST

DR MLK JR BL

AIRPORT W

LWR SACTO RD

PACIFIC AV

PERSHING AV

MAIN ST

WATERLOO RD

WILSON WY

ALPINE AV

CHARTER WY

BEN HOLT DR

TTHOH RONRN

DAVIS RD

WEST LN

MORADA LN

HAMMER LN

MARCH LN
EL
D
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A
DO
ST

HARDING WY

FREMONT ST

DR MLK JR BL

AIRPORT W

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PACIFIC AV

PERSHING AV

MAIN ST

WATERLOO RD

WILSON WY

ALPINE AV

CHARTER WY
0 0.3 0.6 1.2
µ

1.8 2.4
Miles
LEGEND
Lane Lines
County Limits
CITY STREET RE-STRIPING FISCAL YEAR 2025-26 SB1,
PROJECT NO. WD26009

CITY OF STOCKTON

DEPARTMENT OF PUBLIC WORKS

ATTACHMENT A
1161
No. Street Name Begin Location End Location Council District 1 Ponce de Leon Av El Dorado St N Lower Sacramento Rd 1 2 Lan Ark Dr Hammer Ln E Iris Av 1
3 Tom O' Shanter Dr Erie Dr Castle Oaks Dr 1
4 E side Spring River Ci Tule Spring St Sutherland Dr 1 5 Sutterland Dr Spring River Ci Sundance Ln 1
6 Knickerbocker Dr Tom O' Shanter Dr West Ln 1
7 Tom O' Shanter Dr Knickerbocker Dr Hammer Ln 1
8 Morada Ln El Dorado St Don Rafael Wy 1
9 Blue Grass Dr Castle Oak Dr Dead End 1
10 Sundance Ln Sutterland Dr Prospector Dr 1
11 Bianchi Rd March Ln Ijams Rd 2
12 Ijams Rd Bianchi Rd End 2
13 Swain Rd Montauban Av West Ln 2
14 Kermit Ln Glenbrook Ln Elaine Dr 2
15 Longview Av Fillmore Av Hemet Av 2
16 Elaine Dr Kermit Ln Linda Sue Dr 2
17 Kentfield Rd March Ln Bianchi Rd 2
18 Hillsboro Wy March Ln Coventry Dr 2
19 Bianchi Rd Dorset St 50 ft W Dorset St 50 ft E 2
20 Atchenson St Gentry Av Montauban Av 2
21 Five Forks Dr Five Mile Dr Cumberland Pl 3
22 Herndon Pl Benjamin Holt Dr Mill Springs Dr 3
23 Plymouth Dr Benjamin Holt Dr Plymouth Ct 3
24 Gordon Ct Mill Springs Dr Cul de Sac 3
25 Appleton Pl Cumberland Pl Harpers Ferry Dr 3
26 Cumberland Pl Benjamin Holt Dr Five Forks Dr 3
27 Yorktown Ct Five Mile Dr Cul de Sac 3
28 Riverton Way Five Mile Dr Shiloh Pl 3
29 Buena Vista Av Rose St Lucerne Av 4
30 Monte Diablo Av Buena Vista Av Wilshire Av 4
31 Harding Wy Buena Vista Av Colombia Av 4
32 Rose St Queen Av Carlton Av 4
33 Shimizu Dr San Juan Av Carlton Av 4
34 Lucerne Av Pelem Ct Victoria Av 4
35 Raymond Av Queen Av Carlton Av 4
36 Yale Av Picardy Av Flora St 4
37 Monte Diablo Av Banner Av Ryde Av 150 ft E 4
38 Acacia St Figueroa St San Juan Av 50 ft E 4
39 Filbert St Fremont St 250 ft S Fremont St 150 ft N 5 40 E Poplar St Filbert St E Poplar St 150 ft E 5
41 E St Sonora St E St 150 ft N 5
42 S B St Main St E Washington St 5
43 E Miner Av A St E St 5
44 E Acacia St N F St 100 ft W N F St 100 ft E 5
45 Flora St N F St 100 ft W N F St 100 ft E 5
46 Flora St D St Wizard Av 5
47 Sharon Av Main St E Worth St 5
48 Tenth St Anne St Bieghle St 6
49 Seventh St Airport Wy Scribner St 6
50 Charter Wy Airport Wy Mariposa Rd 6
51 Eighth St Airport Wy Bieghle St 6
52 Phelps St Julian St Arriba Rd 6
53 Julian St Phelps St Scribner St 6
54 Airport Wy Charter Wy Second St 6
55 Sixth St D St Time Square Ln 6
CITY STREET RE-STRIPING FISCAL YEAR 2025-26 SB1,
PROJECT NO. WD26009

ATTACHMENT B
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Resolution No.

STOCKTON CITY COUNCIL
RESOLUTION APPROVING THE NOTICE OF EXEMPTION NO. NOE03-26,

APPROVING THE PLANS AND SPECIFICATIONS, AND AWARDING A

CONSTRUCTION CONTRACT FOR THE CITY STREET RE-STRIPING FISCAL YEAR 2025-26 SB1, PROJECT NO. WD26009
On February 5, 2026, the City Clerk of the City of Stockton opened, examined, and publicly declared the sealed proposals or bids offered for the City Street Re-Striping Fiscal Year (FY) 2025-26 SB1, Project No. WD26009; and
The City is responsible for maintaining 781 centerline miles of streets. The project will re-stripe 49 intersections Citywide and three centerline miles of arterial and collector roads. The improvements include lane line striping, refreshing crosswalks, limit lines, and pavement legends that are worn; and
Central Striping Service, Inc. is the lowest responsive bidder in the amount of $215,632; and
The project is in conformance with the City’s General Plan, pursuant to California Government Code, section 65402, and is categorically exempt from the requirements of the California Environmental Quality Act (CEQA) as specified under section 15301(c) of the CEQA Guidelines, because this is a discretionary project under the City’s jurisdiction and qualifies as a project which has been determined to not have a significant effect on the environment; now, therefore,

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

1. The City Council approves the filing of Notice of Exemption No. NOE03-26 under the CEQA for the City Street Re-Striping FY 2025-26 SB1, Project No. WD26009, a copy of which is attached as Exhibit 1 and incorporated by this reference.

2. The City Council approves the plans and specifications for the City Street Re-Striping FY 2025-26 SB1, Project No. WD26009.

3. The City Council awards a Construction Contract between the City of Stockton and Central Striping Service, Inc., in the amount of $215,632, and the City Manager is authorized and directed to execute same, a copy of which is attached as Exhibit 2 and incorporated by this reference.
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4. The City Manager is hereby authorized to take whatever actions are necessary and appropriate to carry out the purpose and intent of this Resolution.

PASSED, APPROVED, and ADOPTED June 9, 2026 .
__________________________

CHRISTINA FUGAZI
Mayor of the City of Stockton
ATTEST:
______________________________

KATHERINE ROLAND, CMC, CPMC
City Clerk of the City of Stockton
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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 Public Works Department Stockton, CA 95202 22 E Weber Ave. Suite 301
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: CITY STREET RE-STRIPING FISCAL YEAR 2025-26 SB1, PROJECT NO. WD26009 CEQA Exemption File No.: NOE 03-26
Applicant: City of Stockton Public Works Department
Project Description/Location: The City of Stockton’s Public Works Department will be re-striping worn traffic striping along arterial and collector streets.

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

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

The activity is exempt under the "general rule" at CEQA Guidelines Section 15061(B)(3).

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

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).

PENI BASALUSALU, DIRECTOR February 13, 2026

PUBLIC WORKS DEPARTMENT (DATE OF PREPARATION)
By
Chanel Teach, Project Manager (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
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CONSTRUCTION CONTRACT
This contract is made and entered into on ____________ _, by and between CENTRAL STRIPING SERVICE, INC., a STATE OF CALIFORNIA CORPORATION, with a business address at 3489 LUYUNG DRIVE, RANCHO CORDOVA, CA 95742, 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 CITY STREET RESTRIPING FISCAL YEAR 2025-26 SB1 (PROJECT NO. WD26009), hereinafter called “PROJECT,” were regularly adopted by Council Resolution No. _________________, on _________________; and
WHEREAS, the contract for said work was regularly awarded to CONTRACTOR, by Council Resolution No. _________________, on ________________.

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

CONTRACTOR agrees:

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

2. COMPENSATION. To do 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 Public Works of the City of Stockton. Total compensation for services and reimbursement for costs shall not exceed $215,632.00, 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. 2016-09-27-1213, 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.

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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 noncontributory” and will not seek contribution from the City of Stockton’s insurance or selfinsurance 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 noncontributory basis for the benefit of the City of Stockton (if agreed to in a written contract or agreement) before the City of Stockton’s own insurance or self-insurance shall be called upon to protect it as a named insured.

All 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 Subsubcontractor. A copy of the CITY Contract Document Indemnity and Insurance provisions will be furnished to the Subcontractor upon request. The General CONTRACTOR shall require all sub-contractors to provide a valid certificate of insurance and the required endorsements included in the agreement prior to commencement of any work and contractor will provide proof of compliance to the City.

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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 Public Works will furnish CONTRACTOR a weekly statement showing the number of days charged to the contract for the preceding week, the number of days specified for completion of the contract, and the number of days remaining to complete the contract.

CONTRACTOR will be allowed one (1) week in which to file a written protest setting forth in what respects said weekly statement is incorrect, otherwise the statement shall be deemed to have been accepted by CONTRACTOR as correct.

6. WORKING DAYS. This work shall be diligently prosecuted to completion before the expiration of 40 WORKING DAYS beginning on the tenth calendar day after the date shown on the Notice to Proceed. It is agreed by the parties to the contract that in case all the work called for under the contract in all parts and requirements, is not finished or completed within the number of days as set forth, damage will be sustained by the CITY, and that it is and will be impracticable and extremely difficult to ascertain the actual damage which CITY will sustain in the event of and by reason of such delay; and it is therefore agreed that CONTRACTOR will pay to CITY the sum of THREE THOUSAND TWO HUNDRED AND NO/100 DOLLARS ($3,200) 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.

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

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

7. 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)
https://www.dol.gov/agencies/oasam/regulatory/statutes/title-vi-civil-rights-actof-1964.

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.

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c. LABOR STANDARDS PROVISIONS/CALIFORNIA LABOR CODE
The bidder shall understand that conditions set forth in Chapter 1, Part 7, Division 2 of the California Labor Code shall be considered part of the contract agreement.
https://leginfo.legislature.ca.gov/faces/codes_displayText.xhtml?lawCode=LAB &division=2.&title=&part=7.&chapter=1.&article=2.
d. 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 https://www.dir.ca.gov/Public-Works/Prevailing-Wage.html. 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

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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 Public Works 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.
iv. The CONTRACTOR shall comply with the provisions established in Section 1777.5 of the Labor Code concerning the 1) certified approval by local joint apprenticeship committees for the employment and training of apprentices, and 2) contribution of funds to administer and conduct apprenticeship programs, if applicable to the job.
e. LOCAL EMPLOYMENT ORDINANCE
Pursuant to Stockton Municipal Code Section 3.68.095 the CONTRACTOR and all subcontractors shall make a good faith effort to employ at least 50 percent of the workforce on this project from local residents, as measured by total labor work hours. Failure of any CONTRACTOR or subcontractor to comply with these requirements shall be deemed a material breach of the contract or subcontract.

CONTRACTORS and subcontractors shall maintain records necessary for monitoring their compliance with section 3.68.095.
f. SANCTIONS
Deliverables must conform with all applicable federal, state, and local laws. Such conformity includes compliance with federal sanctions, and Contractor certifies that it has not and will not engage in prohibited transactions with sanctioned persons or entities.

CITY agrees:

8. COMPENSATION. To pay 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 Public Works 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 Public Works of such completion.

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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 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.

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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:

KATHERINE ROLAND, CMC, CPMC

CITY CLERK
By: ____________ _
APPROVED AS TO FORM & CONTENT:

MARCI A. ARREDONDO, CITY ATTORNEY

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

DEPUTY CITY ATTORNEY
CITY:

By: ____________ _

JOHNNY FORD

CITY MANAGER
By· Geri Lesniewski, CFO
CENTRAL STRIPING SERVICE, INC.
94-2604920
Tax Identification No.

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CITY STREET RE-STRIPING FISCAL YEAR 2025-26 S81
PROJECT NO. WD26009

BIDDING SCHEDULE
Each bidder shall bid each item, including all alternate bid(s). Failure to bid an item shall be just cause for considering the bid as non-responsive. Line item costs should include all Contractor's overhead and profit and indirect costs. Bids not presented on City forms shall be cause for considering the bid as non-responsive.
1 Mobilization LS 1 $21,000.00 $21,000.00
2 Traffic Control LS
$35,000.00 $35,000.00
3 Striping Preparation Work LS 1
$6,000.00 $6,000.00
4 Install Striping Detail 2 LF 14,375
$1.00 $14,375.00
5 Install Striping Detail 9 LF 12,710
$1.00 $12,710.00
6 Install Striping Detail 22 LF 12,670
$1.00 $12,670.00
7 Install Striping Detail 25A LF 4,510 $9,020.00 $2.00
8 Install Striping Detail 27B LF 3,780
$2.00 $7,560.00
9 Install Striping Detail 32 LF 1,810
$2.00 $3,620.00
10 Install Striping Detail 38/38A LF 9,593
$2.00 $19,186.00
Bid Forms Last Revised 03/05/2024

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11 Install White Thermoplastic (Arrows, SF 10,740 Crosswalks, and all Pavement Legends) $2.90 $31,146.00 12 Install Yellow Thermoplastic (Arrows, SF 2,103 Crosswalks, and all Pavement Legends) $5.00 $10,515.00 13 Install White Gore Diagonal LF 888
$8.00 $7,104.00
14 Install Yellow Gore Diagonal LF 1,330
$7.50 $9,975.00
15 Install Parking Stall 45° 19'-11" LF 375
$12.00 $4,500.00
16 Install Bump Arrow EA 134
$35.00 $4,690.00
17 Install Yield Line LF 45
$75.00 $3,375.00
18 Install Triple Four Crosswalk LF 531 $3,186.00 $6.00 TOTAL BID $215,632.00
BIDDER'S NAME Central Striping Service, Inc
Bid Forms Last Revised 03/05/2024

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Exhibit B:

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

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

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

2. Automobile Liability: ISO Form Number CA 00 01 covering any auto (Code 1), or if Contractor has no owned autos, hired, (Code 8) and non-owned autos (Code 9), with limit no less than $2,000,000 per accident for bodily injury and property damage.

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

If the Contractor maintains broader coverage and/or higher limits than the minimums shown above, the City of Stockton requires and shall be entitled to the broader coverage and/or the higher limits maintained by the contractor. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City of Stockton.

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 Contractor including materials, parts, or

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equipment furnished in connection with such work or operations. Coverage can be provided in the form of an endorsement to the Contractor’s insurance (at least as broad as ISO Form CG 20 10 11 85 or the addition of both CG 20 10, CG 20 26, CG 20 33, or CG 20 38; and CG 20 37 if a later edition is used). Additional insured Name of Organization shall read “City of Stockton, its officers, officials, employees, and volunteers.” Policy shall cover City of Stockton, its officers, officials, employees, and volunteers for all locations work is done under this contract.

Primary Coverage
For any claims related to this contract, the Contractor’s insurance coverage shall be primary and non-contributory and at least as broad as ISO CG 20 01 12 19 as respects the City of Stockton, its officers, officials, employees, and volunteers. Any insurance or self-insurance maintained by the City of Stockton, its officers, officials, employees, or volunteers shall be excess of the Contractor’s insurance and shall not contribute with it. This requirement shall also apply to any Excess or Umbrella liability policies. The City of Stockton does not accept endorsements limiting the Contractor’s insurance coverage to the sole negligence of the Named Insured.

Umbrella or Excess Policy
The Contractor may use Umbrella or Excess Policies to provide the liability limits as required in this agreement. The Umbrella or Excess policies shall be provided on a true “following form” or broader coverage basis, with coverage at least as broad as provided on the underlying Commercial General Liability insurance.

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

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

Self-Insured Retentions
Self-insured retentions must be declared to and approved by the City of Stockton. The City of Stockton may require the Contractor to purchase coverage with a lower retention or provide proof of ability to pay losses and related 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.

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

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 claimsmade policy form with a Retroactive Date prior to the contract effective date, the Contractor must purchase “extended reporting” coverage for a minimum of five (5) years after completion of work.

Verification of Coverage
Contractor shall furnish the City of Stockton with original certificates and amendatory endorsements or copies of the applicable policy language effecting coverage required by this clause All documents are to be received and approved by the City of Stockton before work commences. However, failure to obtain the required documents prior to the work beginning shall not waive the Contractor’s obligation to provide them. The City of Stockton reserves the right to require complete, certified copies of all required insurance policies, including endorsements required by these specifications, at any time.

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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Subject:

CITY OF STOCKTON, CALIFORNIA

CITY MANAGER ADMINISTRATIVE DIRECTIVE
Directive No. HR-15 Page No. 1 of 14
DISCRIMINATION AND Effective Date: Revised From: HARASSMENT POLICY 7/27/09 5/1/2015 4/6/09
3/1/2010
(see below)
PER-015 (Sexual Harassment in the Workplace) revised from 10/21/94, 5/1/95, 1/1/98 PER-037 (Sexual Harassment Investigative Procedures) revised from 2/15/93 I. PURPOSE
The purpose of this policy is to reaffirm the City's commitment to demonstrating respect for all individuals by strictly prohibiting discrimination and harassment, including sexual harassment in the workplace. This policy defines prohibited behavior and conduct, and sets forth a procedure for reporting, investigating and resolving complaints of discrimination, harassment, in the workplace, including retaliation and hostile work environment.

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

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

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

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

1179
Subject:

CITY OF STOCKTON, CALIFORNIA

CITY MANAGER ADMINISTRATIVE DIRECTIVE
Directive No. HR-15 Page No. 2 of 14
DISCRIMINATION AND Effective Date: Revised From: HARASSMENT POLICY 7/27/09 5/1/2015 4/6/09
3/1/2010
(see below)
PER-015 (Sexual Harassment in the Workplace) revised from 10/21/94, 5/1/95, 1/1/98 PER-037 (Sexual Harassment Investigative Procedures) revised from 2/15/93 maintaining an employment environment free of discrimination and harassment. This policy applies to all aspects of City employment, including, but not limited to, hiring, reassignment, placement, promotion, employment action, disciplinary action, layoff, reemployment, transfer, leave of absence, compensation and benefits, training; or other terms of treatment of that person in an unpaid internship, or another limited duration program to provide unpaid work experience for that person, or the harassment of an unpaid intern or volunteer.

E. All allegations of discrimination and/or harassment shall be investigated immediately by the City, in accordance with this policy. If it is determined that any prohibited activity has occurred, remedial action shall be taken. Such action may include discipline up to and including discharge. In addition, under applicable law, individual supervisors and employees may be subject to personal liability and/or punitive damages in any litigation arising as a result of such conduct.

F. All new hires shall attend harassment awareness training, and supervisors and managers shall attend harassment awareness and prevention training for supervisors every two years.

G. The City of Stockton prohibits retaliation against any employee or nonemployee by another employee, non-employee, supervisor, or manager for reporting, filing, testifying, assisting or participating in any manner in any investigation, proceeding, or hearing conducted by the employer or a federal or state enforcement agency.

H. This policy applies to all officials, employees, volunteers, unpaid interns, agents, or contractors of the City.

I. This policy shall be administered by the Director of Human Resources.

1180
Subject:

CITY OF STOCKTON, CALIFORNIA

CITY MANAGER ADMINISTRATIVE DIRECTIVE
Directive No. HR-15 Page No. 3 of 14
DISCRIMINATION AND Effective Date: Revised From: HARASSMENT POLICY 7/27/09 5/1/2015 4/6/09
3/1/2010
(see below)
PER-015 (Sexual Harassment m the Workplace) revised from 10/21/94, 5/1/95, 1/1/98 PER-037 (Sexual Harassment Investigative Procedures) revised from 2/15/93 Ill. DEFINITION AND EXAMPLES OF DISCRIMINATION AND HARASSMENT A. "Discrimination," as used in this policy, is any action, behavior, practice, or process that is intended to deny, or results in the denial of, employment rights, privileges, or benefits because of a person's race, religious creed, color, national origin, ancestry, military and veterans status, physical or mental disability, medical condition, genetic characteristics or information, denial of family and medical care leave, marital status, sexual orientation, sex (including gender, gender identity, gender expression, transgender, pregnancy, childbirth and breastfeeding), political affiliation, age (40 and older), concerted labor activity, or any other prohibition identified under state and federal law. The following are examples of conduct that may constitute discrimination:

1. Soliciting applications from a source where all or most of potential workers are of the same race or color.

2. Considering a person's gender as the basis for differences in pay, work assignments, performance evaluations, training, discipline, or any other area of employment; and

3. Questioning a job applicant about the existence, nature and severity of a disability.

B. "Harassment," as used in this policy, consists of any conduct affecting another person because of his or her race, religious creed, color, national origin, ancestry, military and veterans status, physical or mental disability, medical condition, genetic characteristics or information, denial of family and medical care leave, marital status, sexual orientation, sex (including gender, gender identity, gender expression, transgender, pregnancy, childbirth and breastfeeding), political affiliation, age (40 and older), concerted labor activity, or any other category or attribute identified under state and federal law when such conduct has the purpose or the effect of: (1) creating an intimidating, hostile or offensive work environment; (2) unreasonably interfering with the employee's or non-employee's work performance; or (3)

1181
Subject:

CITY OF STOCKTON, CALIFORNIA

CITY MANAGER ADMINISTRATIVE DIRECTIVE
Directive No. HR-15 Page No. 4 of 14

DISCRIMINATION AND
HARASSMENT POLICY Effective Date: Revised From:
7/27/09
5/1/2015 4/6/09
3/1/2010
(see below)
PER-015 (Sexual Harassment in the Workplace) revised from 10/21/94, 5/1/95, 1/1/98 PER-037 (Sexual Harassment Investigative Procedures) revised from 2/15/93 otherwise adversely affecting an employee's or non-employee's employment opportunities.

Harassment may take many forms, including, but not limited to, the following examples:

1. Verbal Harassment: Epithets, derogatory and offensive comments or slurs based on race, religion, color, national origin, ancestry, physical or mental disability, marital status, pregnancy, medical condition, gender, sexual orientation, political affiliation, age, or any other category or attribute identified under state and federal law.

2. Physical Harassment: Assault, impeding or blocking movement that results in the physical interference with normal work or movement on the basis of race, religion, color, national origin, ancestry, physical or mental disability, marital status, pregnancy, medical condition, gender, sexual orientation, political affiliation, age, or any other category or attribute identified under state and federal law.

3. Visual Harassment: The displaying of posters, photography, notices, bulletins, e-mails, cartoons or drawings with derogatory and offensive content based on race, religion, color, national origin, ancestry, physical or mental disability, marital status, pregnancy, medical condition, gender, sexual orientation, political affiliation, age, or any other category or attribute identified under state and federal law.

C. "Sexual harassment," as used in this policy, is a subcategory of harassment, and is specifically defined by law as unwanted sexual advances, requests for sexual favors or visual, verbal or physical conduct of a sexual nature when:

1. Submission to such conduct is made a term or condition of employment; or

2. Submission to or rejection of such conduct is used as a basis for employment decisions affecting the individual; or

1182
Subject:

CITY OF STOCKTON, CALIFORNIA

CITY MANAGER ADMINISTRATIVE DIRECTIVE
Directive No. HR-15 Page No. 5 of 14

DISCRIMINATION AND
HARASSMENT POLICY Effective Date: Revised From:
7/27/09
5/1/2015 4/6/09
3/1/2010
(see below)
PER-015 (Sexual Harassment in the Workplace) revised from 10/21/94, 5/1/95, 1/1/98 PER-037 (Sexual Harassment Investigative Procedures) revised from 2/15/93

3. Such conduct has the purpose or effect of unreasonably interfering with an employee's or non-employee's work performance or creating an intimidating, hostile or offensive working environment because of the persistent, severe or pervasive nature of the conduct.

Examples of Sexual Harassment include, but are not limited to the following:
a. Unwelcome sexual overtures or propositions.
b. Offering employment benefits or status in exchange for sexual favors.
c. Making or threatening retaliation after a negative response to sexual advances.
d. Visual conduct such as leering, making sexual gestures, displaying sexually suggestive objects or pictures, cartoons, calendars or posters.
e. Verbal conduct such as using epithets or slurs, telling sexually explicit jokes, or making derogatory or suggestive comments about a person's body or dress.
f. Written communications of a sexual nature distributed in hard copy, soft copy or via a computer network.
g. Verbal abuse of a sexual nature, graphic verbal commentary about an individual's body, sexually degrading words to describe an individual, suggestive or obscene letters, notes or invitations.
h. Physical conduct such as touching, assaulting, impeding or blocking movements.

1183
Subject:

CITY OF STOCKTON, CALIFORNIA

CITY MANAGER ADMINISTRATIVE DIRECTIVE
Directive No. HR-15 Page No. 6 of 14
DISCRIMINATION AND Effective Date: HARASSMENT POLICY Revised From:
7/27/09
5/1/2015 4/6/09
3/1/2010
(see below)
PER-015 (Sexual Harassment in the Workplace) revised from 10/21/94, 5/1/95. 1/1/98 PER-037 (Sexual Harassment Investigative Procedures) revised from 2/15/93 i. Retaliation for making harassment reports or threatening to report harassment.

D. Affordable Care Act (ACA) Anti-Retaliation
Pursuant to section §1558 of the Affordable Care Act, the City prohibits discrimination or retaliation towards any employee who:

1. Receives a health insurance tax credit or subsidy through the Health Care "Marketplace" or "Exchange", by which can trigger a penalty payable by the employer;

2. Reports potential violations of protections afforded under Title I of the Act, which provides guaranteed availability protections among other things;

3. Testifies in a proceeding concerning such violation;

4. Assists or participates in a proceeding concerning a violation; or

5. Objects to, or refuses to participate in, any activity, policy, practice, or assigned task that the employee reasonably believes to be in violation of any provision of the Title I of the Act.

An employee who believes that he or she has been discharged or otherwise discriminated against in violation of section §1558 of the Affordable Care Act may seek relief in accordance with the procedures, notifications, burdens of proof, remedies, and statutes of limitation set forth in section 2087(b) of title 15, United States Code.

IV. REPORTING AND COMPLAINT PROCEDURES
A. Immediate Action Required
The City's reporting and complaint procedures provide for an immediate, thorough and objective investigation of discrimination or harassment claims, appropriate disciplinary action taken against any person found to have engaged in prohibited behavior, and appropriate alternative remedies to any

1184
Subject:

CITY OF STOCKTON, CALIFORNIA

CITY MANAGER ADMINISTRATIVE DIRECTIVE
Directive No. HR-15 Page No. 7 of 14
DISCRIMINATION AND Effective Date: Revised From: HARASSMENT POLICY 7/27/09 5/1/2015 4/6/09
3/1/2010
(see below)
PER-015 (Sexual Harassment in the Workplace) revised from 10/21/94, 5/1/95, 1/1/98 PER-037 (Sexual Harassment Investigative Procedures) revised from 2/15/93 employee or non-employee subject to discrimination or harassment. To accomplish this, such incidents must be reported immediately to a supervisor or manager.

1. Employee's and Non-Employee's Responsibilities when Subjected to Discrimination and/or Harassment
a. Employees or non-employees who believe they have been subjected to discrimination or harassment, or are aware of discrimination or harassment against others, shall report the situation immediately to his/her supervisor or manager, except as specified in subsection (b), below. Employees and nonemployees shall report any such incidents occurring in the workplace, whether committed by coworkers, supervisors or managers, or third persons doing business with the City, such as customers or vendors, or other non-employees. If
comfortable doing so, an employee or non-employee who has a complaint of discrimination or harassment is encouraged to directly inform the person(s) engaging in the behavior that such conduct is offensive and insist the behavior to stop.
b. Employees and non-employees must immediately contact a supervisor or manager to register a complaint of discrimination or harassment, unless that supervisor or manager is the individual engaging in the unwanted behavior. In that case, the employee or non-employee may contact someone at the next supervisory level. If the employee or non-employee feels uncomfortable dealing directly with his or her immediate supervisor or manager, he or she may contact the department head, or the Director of Human Resources (or either of their designees) to register a complaint of discrimination or harassment.
c. Employees and non-employees may file a formal complaint of harassment or discrimination with their department head or

1185
Subject:

CITY OF STOCKTON, CALIFORNIA

CITY MANAGER ADMINISTRATIVE DIRECTIVE
Directive No. HR-15 Page No. 8 of 14

DISCRIMINATION AND
HARASSMENT POLICY Effective Date: Revised From:
7/27/09
5/1/2015 4/6/09
3/1/2010
(see below)
PER-015 (Sexual Harassment In the Workplace) revised from 10/21/94, 5/1/95, 1/1/98 PER-037 (Sexual Harassment Investigative Procedures) revised from 2/15/93 with Human Resources. To assist the City in conducting a thorough investigation, complaints shall be submitted in writing and shall include specific details of the incident(s), the names of the individuals involved, the names of any witnesses, and any documentary evidence (notes, pictures, cartoons, etc.) that will corroborate the allegations.
d. Employees and non-employees shall immediately report any retaliation to a supervisor, manager, department head or Director of Human Resources (or designee). All retaliation complaints shall be immediately, objectively and thoroughly investigated in accordance with the investigation procedures.

If a report of retaliation is substantiated, appropriate disciplinary action, up to and including discharge shall be taken.

2. Supervisor's or Manager's Responsibilities to Eliminate Discrimination and/or Harassment
a. A supervisor or manager is responsible for enforcing the City's discrimination and harassment policy. Supervisors or
managers must ensure that all employees and non-employees are aware of the City's policy through open discussion of the policy at staff meetings and by posting the policy in a conspicuous location accessible to all staff members.
b. A supervisor or manager shall be cognizant of employees' and non-employees' behavior and shall not permit any employee or non-employee under their supervision to be subjected to or engage in any conduct prohibited by this policy.
c. A supervisor or manager who observes conduct prohibited by this policy shall immediately direct the employee or nonemployee to cease the conduct.

1186
Subject:

CITY OF STOCKTON, CALIFORNIA

CITY MANAGER ADMINISTRATIVE DIRECTIVE
Directive No. HR-15 Page No. 9 of 14
DISCRIMINATION AND Revised From: HARASSMENT POLICY Effective Date:
7/27/09
5/1/2015 4/6/09
3/1/2010
(see below)
PER-015 (Sexual Harassment in the Workplace) revised from 10/21/94, 5/1/95, 1/1/98 PER-037 (Sexual Harassment Investigative Procedures) revised from 2/15/93 d. A supervisor or manager who receives a complaint of
prohibited conduct is required to take the complaint seriously, and report the matter immediately to the department head; be supportive of the complainant; ensure there is no retaliation against the complainant; conduct an internal fact-finding review into the allegations; obtain as much detailed information as possible; thoroughly document the findings; communicate in written form to the parties the resolution of the complaint; and report to and consult with the Human Resources Department promptly, without delay.

B. Confidentiality. The City will make every effort to protect the privacy and confidentiality of all parties involved, as well as any information and/or documentation obtained, to the extent possible consistent with a thorough investigation.

C. Penalty for Non-Compliance. The City shall take disciplinary action, up to and including discharge, against any supervisor or manager who fails in his/her responsibility to take immediate action in response to an employee's or non-employee's complaint of discrimination or harassment. Further, such disciplinary action shall be taken against a supervisor or manager who fails to stop discriminatory or harassing conduct committed in his/her presence or to stop such conduct about which the supervisor or manager has knowledge.

V. INVESTIGATION PROCEDURES
A. Determination of Responsibility for Investigation
If a formal complaint is filed with the department head or the Director of Human Resources (or either of their designees), the department head and the Director of Human Resources shall consult with one another to determine whether the department or Human Resources shall conduct the fact-finding investigation into the allegations. Either the department head or the Director of Human Resources (or either of their designees), depending on who is

1187
Subject:

B.

CITY OF STOCKTON, CALIFORNIA

CITY MANAGER ADMINISTRATIVE DIRECTIVE
Directive No. HR-15 Page No.10 of 14
DISCRIMINATION AND Effective Date: Revised From: HARASSMENT POLICY 7/27/09 5/1/2015 4/6/09
3/1/2010
(see below)
PER-015 (Sexual Harassment In the Workplace) revised from 10/21/94, 5/1/95, 1/1/98 PER-037 (Sexual Harassment Investigative Procedures) revised from 2/15/93 responsible for the investigation, shall issue written notification to the complainant and alleged harasser(s). The notification shall specify the nature of the complaint, and inform the parties that an investigation into the allegations of discrimination and/or harassment shall be conducted.

Investigative Guidelines
The investigation shall include the following steps taken in the order best suited to the circumstances:

1. Identify and preserve the evidence.

2. Confirm the name and position of the complainant. Interview the complainant.

3. Allow the complainant the opportunity to place the complaint in writing.

4. Obtain the identity of the alleged harasser(s).

5. Obtain as many details as possible regarding the incident(s) that prompted the complaint, including the number of occurrences, dates, times, locations, and witnesses (if applicable).

6. Ascertain how the complainant felt about the alleged incident when it occurred; complainant's response(s) to the alleged behavior; and witness statements (if applicable).

7. Ascertain if any threats or promises were made in connection with the alleged harassment.

8. Ascertain if the complainant knows of or suspects that there are other victims of harassment by the same person(s).

9. Ascertain whether the complainant has spoken to anyone, especially

1188
Subject:

CITY OF STOCKTON, CALIFORNIA

CITY MANAGER ADMINISTRATIVE DIRECTIVE
Directive No. HR-15 Page No. 11 of 14

DISCRIMINATION AND
HARASSMENT POLICY Effective Date: Revised From:
7/27/09
5/1/2015 4/6/09
3/1/2010
(see below)
PER-015 (Sexual Harassment m the Workplace) revised from 10/21/94, 5/1/95, 1/1/98 PER-037 (Sexual Harassment Investigative Procedures) revised from 2/15/93 supervisors, about the harassment.

10. Ascertain what resolution would be acceptable to the complainant.

11. Interview the alleged harasser to get his or her side of the story, including any possible motivation for a false allegation.

12. Interview witnesses who were identified by the complainant regarding the alleged harasser or other persons identified during the investigation.

13. Interview witnesses who were identified by the alleged harasser or other persons identified during the investigation.

14. Advise all participants that the investigation is "confidential" and not to engage in any retaliatory conduct, as such conduct is subject to disciplinary action up to and including discharge. Confidentiality will be maintained to the extent possible. An individual who is interviewed during the course of an investigation is prohibited from discussing the substance of the interview, except as otherwise directed by a supervisor or the Director of Human Resources. Any individual who discusses the content of an investigatory interview will be subject to discipline or other appropriate sanction.

15. Conduct follow-up interviews, if warranted.

16. Prepare report of findings and discuss with management and designated legal staff.

VI. RESPONDING TO THE COMPLAINT
A. Following the completion of the fact-finding investigation, either the department head or the Director of Human Resources (or either of their designees), depending on who is responsible for the investigation, shall

1189
Subject:

CITY OF STOCKTON, CALIFORNIA

CITY MANAGER ADMINISTRATIVE DIRECTIVE
Directive No. HR-15 Page No.12 of 14
DISCRIMINATION AND Effective Date: Revised From: HARASSMENT POLICY 7/27/09 5/1/2015 4/6/09
3/1/2010
(see below)
PER-015 (Sexual Harassment in the Workplace) revised from 10/21/94, 5/1/95, 1/1/98 PER-037 (Sexual Harassment Investigative Procedures) revised from 2/15/93 make a report of findings, along with a recommendation regarding the appropriate remedial action to be taken, if warranted. The recommendation shall be made after reviewing the findings of the investigation, giving consideration to all factual information, the nature of the alleged conduct, and the totality of the circumstances. If the investigation was conducted by the Director of Human Resources, or designee, the Director, or designee, shall confer with the affected department head and both shall concur on the remedial action to be taken, if any. If the investigation was conducted by the department head, the department head shall confer with the Director of Human Resources prior to making the report of findings and both shall concur on the remedial action to be taken, if any.

B. If either the department head or the Director of Human Resources does not concur with the findings and recommendation of the other, the City Attorney (or designee) shall review and resolve the matter in dispute.

C. Report of findings and recommendation shall be treated as a confidential document and no other distribution shall be made without first consulting with the City Attorney's Office. A completed investigation report will not be disclosed, except as it is deemed necessary to support a disciplinary action, to take remedial action, to defend the City in adversarial proceedings, or to comply with the law or court order.

D. Either the department head or the Director of Human Resources (or either of their designees), depending on who is responsible for the investigation shall provide a written response to the complainant and the person alleged to have committed the misconduct, discrimination and/or harassment. The response shall include a copy of the City's discrimination and harassment policy and a memorandum indicating the City's determination as to whether the complaint is:

1. Unsustained: The investigation failed to disclose sufficient evidence to substantiate the allegation(s).

2. Unfounded: The investigation proved that the act(s) or omission(s)

1190

CITY OF STOCKTON, CALIFORNIA

CITY MANAGER ADMINISTRATIVE DIRECTIVE
Subject: Directive No. HR-15 Page No. 13 of 14
DISCRIMINATION AND Effective Date: Revised From: HARASSMENT POLICY 7/27/09

3. 5/1/2015 4/6/09
3/1/2010
(see below)
PER-015 (Sexual Harassment in the Workplace) revised from 10/21/94, 5/1/95, 1/1/98 PER-037 (Sexual Harassment Investigative Procedures) revised from 2/15/93 complained of did not occur. The finding also applies when the individual employee(s) named in the complaint were not involved in the act(s) or omission(s) alleged.

Sustained: The investigation disclosed sufficient evidence to substantiate the allegation(s) made in the complaint; appropriate action will be taken.

E. Details regarding any specific fact-findings or disciplinary action to be taken will not be communicated to the complainant. The City Attorney shall review the response for legal sufficiency before dissemination.

F. The City shall close and retain the investigation file, in accordance with applicable laws, regulations, and City policy regarding retention of City records.

VII. DISCIPLINE
Disciplinary action imposed as a result of any investigation conducted pursuant to this policy shall be commensurate with the severity of the offense, up to and including discharge, even for a first offense.

VIII. ALTERNATIVE REMEDIES
If upon exhausting all internal remedies to file, investigate, and respond to a charges of discrimination/harassment, pursuant to title VII of the Federal Civil Rights Act of 1964 (42 U.S.C §§ 2000e et seq.), any person has a right to file a charge of discrimination/harassment with the Equal Employment Opportunity Commission ("EEOC"). In addition, pursuant to the California Fair Employment and Housing Act (Gov. Code §§ 12900 - 12996.) a person may also file a complaint of discrimination/harassment with the California Department of Fair Employment and Housing ("DFEH"). Employees or non-employees who believe that they have been subjected to discrimination/harassment may file a complaint with either of these

1191

CITY OF STOCKTON, CALIFORNIA

CITY MANAGER ADMINISTRATIVE DIRECTIVE
Subject: Directive No. HR-15 Page No. 14 of 14

DISCRIMINATION AND
HARASSMENT POLICY Effective Date: Revised From:
7/27/09
5/1/2015 4/6/09
3/1/2010
(see below)
PER-015 (Sexual Harassment in the Workplace) revised from 10/21/94, 5/1/95, 1/1/98 PER-037 (Sexual Harassment Investigative Procedures) revised from 2/15/93 agencies. Both the EEOC and DFEH serve as neutral fact-finders and attempt to assist parties in resolving disputes voluntarily.

IX. COMMUNICATION OF POLICY
This policy shall be provided to all managers, supervisors, employees, volunteers, unpaid interns, agents or contractors of the City and shall be posted in the appropriate places. All employees shall participate in City approved harassment awareness training as directed by management or Human Resources; and all supervisors, as required by law, shall participate in City approved interactive harassment awareness training and education sessions at least once every two years, or as otherwise specified by law.

APPROVED:
c:r��SON

CITY MANAGER
::ODMA\GRPWISE\COS.PER.PER_Library:96180.1

1192
BOND FOR FAITHFUL PERFORMANCE Bond No. 087 4000
KNOW ALL MEN BY THESE PRESENTS:

That we, CENTRAL STRIPING SERVICE, INC., a STATE OF CALIFORNIA CORPORATION, as Principal and __ H_a_rco_N _ a__ti_o_n_al_l_n_su_r_a_n_ce_C_o_m_.p_an ____ y _____ �, a corporation, organized and existing under the laws of the State of _ lllin__o_is ______ 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 TWO HUNDRED FIFTEEN THOUSAND SIX HUNDRED THIRTY-TWO AND 00/100 DOLLARS ($215,632.00), in lawful money of the United States of America (being 100% of the contract price) for the payment whereof well and truly to be made to the said CITY, the said Principal and Surety bind themselves, their successors and assigns, jointly and severally, firmly by these presents.

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

CITY STREET RE-STRIPING FISCAL YEAR 2025-26 SB1
(PROJECT NO. WD26009)
NOW, THEREFORE, if the above bounded Principal, CONTRACTOR, Company or Corporation or its subcontractor, shall well and truly perform the work contracted to be done under said contract, then this obligation to be null and void; otherwise to remain in full force and effect.

No prepayment or delay in payment and no change, extension, addition or alteration of any provision of said contract, or in said plans or specifications agreed to between the said CONTRACTOR and the said CITY, and no forbearance on the part of the said CITY shall operate to relieve any Surety or Sureties from liability on this bond, and consent by said Surety is hereby given, and the said Surety hereby waives the provisions of Sections 2819 and 2845

1193
of the Civil Code of the Sta te of California.

SIGNED AND SEALED on
_
_ M
_
a
_
r
_
c
_
h
_
30 _
,
_
2 _
0 _
_26
__
_
____ _
APPROVED AS TO SURETY:

APPROVED AS TO FORM & CONTENT:

MARCI A. ARREDONDO,

OFFICE OF THE CITY ATTORNEY
By: __________

DEPUTY CITY ATTORNEY
Harco National Insurance Company
SURETY
By� ATTORNEY-IN-T

1194

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

State of California
County of Sacrame
nto
On __ '3__· g_/_· 't�(I ____ before me, Sande Walker
, Notary Publi
c
(insert name and title of the officer)
personally appeared _G_e r_i_L_e_s_n
who proved to me on the basis of satisfactory
_ie_w_sk_i _________
evidence to be the
__
person(s)
_________
whose name(s) is/are _
subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

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

WITNESS my hand and official seal.

Signature� (Seal)
········� SANDE WALKER
Notary Public - California 1 Sacramtnto County �
Commission# 2547050 -
y Comm. Expires Feb 1, 2030

1195

POWER OF ATTORNEY

HARCO NATIONAL INSURANCE COMPANY

INTERNATIONAL FIDELITY INSURANCE COMPANY
Bond# 0874000
Member companies of IAT Insurance Group, Headquartered: 4200 Six Forks Rd, Suite 1400, Raleigh, NC 27609 KNOW ALL MEN BY THESE PRESENTS: That HARCO NATIONAL INSURANCE COMPANY, a corporation organized and existing under the laws of the State of Illinois, and INTERNATIONAL FIDELITY INSURANCE COMPANY, a corporation organized and existing under the laws of the State of New Jersey, and having their principal offices located respectively in the cities of Rolling Meadows, Illinois and Newark, New Jersey, do hereby constitute and appoint
MICHAEL R. SNELLING, RANDALL L. JORGENSEN, DEBORAH WILLIAMS, CAROL ANN DUNN, KASEY

CORRINE DOUGHERTY
Sacramento, CA
their true and lawful attorney(s)-in-fact to execute, seal and deliver for and on its behalf as surety, any and all bonds and undertakings, contracts of indemnity and other writings obligatory in the nature thereof, which are or may be allowed, required or permitted by law, statute, rule, regulation, contract or otherwise, and the execution of such instrument(s) in pursuance of these presents, shall be as binding upon the said HARCO NATIONAL INSURANCE COMPANY and INTERNATIONAL FIDELITY INSURANCE COMPANY, as fully and amply, to all intents and purposes, as if the same had been duly executed and acknowledged by their regularly elected officers at their principal offices.

This Power of Attorney is executed, and may be revoked, pursuant to and by authority of the By-Laws of HARCO NATIONAL INSURANCE COMPANY and INTERNATIONAL FIDELITY INSURANCE COMPANY and is granted under and by authority of the following resolution adopted by the Board of Directors of INTERNATIONAL FIDELITY INSURANCE COMPANY at a meeting duly held on the 13th day of December, 2018 and by the Board of Directors of HARCO NATIONAL INSURANCE COMPANY at a meeting held on the 13th day of December, 2018. "RESOLVED, that (1) the Chief Executive Officer, President, Executive Vice President, Senior Vice President, Vice President, or Secretary of the Corporation shall have the power to appoint, and to revoke the appointments of, Attorneys-in-Fact or agents with power and authority as defined or limited in their respective powers of attorney, and to execute on behalf of the Corporation and affix the Corporation's seal thereto, bonds, undertakings, recognizances, contracts of indemnity and other written obligations in the nature thereof or related thereto; and (2) any such Officers of the Corporation may appoint and revoke the appointments of joint-control custodians, agents for acceptance of process, and Attorneys-in-fact with authority to execute waivers and consents on behalf of the Corporation; and (3) the signature of any such Officer of the Corporation and the Corporation's seal may be affixed by facsimile to any power of attorney or certification given for the execution of any bond, undertaking, recognizance, contract of indemnity or other written obligation in the nature thereof or related thereto, such signature and seals when so used whether heretofore or hereafter, being hereby adopted by the Corporation as the original signature of such officer and the original seal of the Corporation, to be valid and binding upon the Corporation with the same force and effect as though manually affixed.•
IN WITNESS WHEREOF, HARCO NATIONAL INSURANCE COMPANY and INTERNATIONAL FIDELITY INSURANCE COMPANY have each executed and attested these presents on this 31st day of December, 2025

STATE OF NEW JERSEY
County of Essex
Michael F. Zurcher

STATE OF ILLINOIS
County of Cook
Executive Vice President, Harco National Insurance Company and International Fidelity Insurance Company
On this 31st day of December, 2025 , before me came the individual who executed the preceding instrument, to me personally known, and, being by me duly sworn, said he is the therein described and authorized officer of HARCO NATIONAL INSURANCE COMPANY and INTERNATIONAL FIDELITY INSURANCE COMPANY; that the seals affixed to said instrument are the Corporate Seals of said Companies; that the said Corporate Seals and his signature were duly affixed by order of the Boards of Directors of said Companies.

IN TESTIMONY WHEREOF, I have hereunto set my hand affixed my Official Seal, at the City of Newark, New Jersey the day and year first above written.

CERTIFICATION
Cathy Cruz a Notary Public of New Jersey
My Commission Expires April 16, 2029
I, the undersigned officer of HARCO NATIONAL INSURANCE COMPANY and INTERNATIONAL FIDELITY INSURANCE COMPANY do hereby certify that I have compared the foregoing copy of the Power of Attorney and affidavit, and the copy of the Sections of the By-Laws of said Companies as set forth in said Power of Attorney, with the originals on file in the home office of said companies, and that the same are correct transcripts thereof, and of the whole of the said originals, and that the said Power of Attorney has not been revoked and is now in full force and effect.

IN TESTIMONY WHEREOF, I have hereunto set my hand on this day, March 30, 2026 A00599
Irene Martins, Assistant Secretary

EXHIBIT 2
1196
BOND FOR LABOR AND MATERIAL Bond No. 087 4000
KNOW ALL MEN BY THESE PRESENTS:

That we, CENTRAL STRIPING SERVICE, INC., a STATE OF CALIFORNIA CORPORATION, as Principal and Harco National Insurance Company , corporation, organized and existing under the laws of the State of Illinois and duly authorized to transact business under the laws of the State of California, as Surety, are held and firmly bound unto the City of Stockton, a municipal corporation, duly created and existing under and by virtue of the laws of the State of California, and unto any and all material suppliers, persons, companies, or corporations furnishing materials, provisions, provender or other supplies used in, upon, for or about the performance of the work contemplated to be executed or performed under the contract hereinafter mentioned, and all persons, companies, or corporations renting or hiring teams, or implements of machinery, for or contributing to said work and all persons who perform work or labor upon the same, and all persons who supply both work and materials, and whose claims have not been paid by the contractor, company or corporation in the just and full sum of TWO HUNDRED FIFTEEN THOUSAND SIX HUNDRED THIRTY-TWO AND 00/100 DOLLARS ($215,632.00), in lawful money of the United States of America (being 100% of the contract price) for the payment whereof well and truly to be made to said CITY and to said persons jointly and severally, the said principal and Surety bind themselves, their successors and assigns, jointly and severally, firmly by these presents.

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

CITY STREET RE-STRIPING FISCAL YEAR 2025-26 581
(PROJECT NO. WD26009)
NOW, THEREFORE, if the above bounden Principal, CONTRACTOR, Company or Corporation or its subcontractor, fail to pay for all materials, provisions, provender, or other supplies, or teams, used in, upon, for or about the performance of the work contracted to be done, or for any work or labor done thereon of any kind, the Surety on

1197
this bond will pay the same, in an amount not exceeding the sum specified in this bond, provided that any and all claims hereunder shall be filed and proceedings had in connection therewith as required by the provisions of Division 3, Part 4, Title 15, Chapter 5, Article 1 of the Civil Code of California, provided that in case suit is brought upon this bond, a reasonable attorney's fee shall be awarded by the Court to the prevailing party in said suit; said attorney's fee to be fixed as costs in said suit, and to be included in the judgment therein rendered.

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

SIGNED AND SEALED on ----------------- March 30 2026
APPROVED AS TO SURETY:

APPROVED AS TO FORM &
CONTENT: MARCI A. ARREDONDO

OFFICE OF THE CITY ATTORNEY
By: __________ _

DEPUTY CITY ATTORNEY
By:� PRINCIPAL
Harco National Insurance Company
SURETY
By: �ATTORNEY-lrii=Ac �

1198

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

State of California
County of Sacramento
on _ _.,_,�'--· ""-8_,_/_· _..l"'---'--& ____ before me, Sande Walker, Notary Publi c
(insert name and title of the officer)
personally appeared _G_er_i_L_e_s_
n_i
e
who proved to me on the basis of satisfactory
_w_s_k_i ____ evidence
____________
to be the person(s) whose name(s)
___
is/are _
subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

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

WITNESS my hand and official seal.

Signature� (Seal)
········� SANDE WALKER
Notary Public • California :

Sacramento County s:

Commission II 2 54 7050 -
y Comm. Expires Feb 1, 2030

1199
l 0

POWER OF ATTORNEY

HARCO NATIONAL INSURANCE COMPANY

INTERNATIONAL FIDELITY INSURANCE COMPANY
Bond# 0874000
Member companies of IAT Insurance Group, Headquartered: 4200 Six Forks Rd, Suite 1400, Raleigh, NC 27609 KNOW ALL MEN BY THESE PRESENTS: That HARCO NATIONAL INSURANCE COMPANY, a corporation organized and existing under the laws of the State of Illinois, and INTERNATIONAL FIDELITY INSURANCE COMPANY, a corporation organized and existing under the laws of the State of New Jersey, and having their principal offices located respectively in the cities of Rolling Meadows, Illinois and Newark, New Jersey, do hereby constitute and appoint
MICHAEL R. SNELLING, RANDALL L. JORGENSEN, DEBORAH WILLIAMS, CAROL ANN DUNN, KASEY

CORRINE DOUGHERTY
Sacramento, CA
their true and lawful attomey(s)-in-fact to execute, seal and deliver for and on its behalf as surety, any and all bonds and undertakings, contracts of indemnity and other writings obligatory in the nature thereof, which are or may be allowed, required or pennitted by law, statute, rule, regulation, contract or otherwise, and the execution of such instrument(s) in pursuance of these presents, shall be as binding upon the said HARCO NATIONAL INSURANCE COMPANY and INTERNATIONAL FIDELITY INSURANCE COMPANY, as fully and amply, to all intents and purposes, as if the same had been duly executed and acknowledged by their regularly elected officers at their principal offices.

This Power of Attorney is executed, and may be revoked, pursuant to and by authority of the By-Laws of HARCO NATIONAL INSURANCE COMPANY and INTERNATIONAL FIDELITY INSURANCE COMPANY and is granted under and by authority of the following resolution adopted by the Board of Directors of INTERNATIONAL FIDELITY INSURANCE COMPANY at a meeting duly held on the 13th day of December, 2018 and by the Board of Directors of HARCO NATIONAL INSURANCE COMPANY at a meeting held on the 13th day of December, 2018. "RESOLVED, that (1) the Chief Executive Officer, President, Executive Vice President, Senior Vice President, Vice President, or Secretary of the Corporation shall have the power to appoint, and to revoke the appointments of, Attorneys-in-Fact or agents with power and authority as defined or limited in their respective powers of attorney, and to execute on behalf of the Corporation and affix the Corporation's seal thereto, bonds, undertakings, recognizances, contracts of indemnity and other written obligations in the nature thereof or related thereto; and (2) any such Officers of the Corporation may appoint and revoke the appointments of joint-control custodians, agents for acceptance of process, and Attorneys-in-fact with authority to execute waivers and consents on behalf of the Corporation; and (3) the signature of any such Officer of the Corporation and the Corporation's seal may be affixed by facsimile to any power of attorney or certification given for the execution of any bond, undertaking, recognizance, contract of indemnity or other written obligation in the nature thereof or related thereto, such signature and seals when so used whether heretofore or hereafter, being hereby adopted by the Corporation as the original signature of such officer and the original seal of the Corporation, to be valid and binding upon the Corporation with the same force and effect as though manually affixed.·
IN WITNESS WHEREOF, HARCO NATIONAL INSURANCE COMPANY and INTERNATIONAL FIDELITY INSURANCE COMPANY have each executed and attested these presents on this 31st day of December, 2025

STATE OF NEW JERSEY
County of Essex
Michael F. Zurcher

STATE OF ILLINOIS
County of Cook
Executive Vice President, Harco National Insurance Company and International Fidelity Insurance Company
On this 31st day of December, 2025 , before me came the individual who executed the preceding instrument, to me personally known, and, being by me duly sworn, said he is the therein described and authorized officer of HARCO NATIONAL INSURANCE COMPANY and INTERNATIONAL FIDELITY INSURANCE COMPANY; that the seals affixed to said instrument are the Corporate Seals of said Companies; that the said Corporate Seals and his signature were duly affixed by order of the Boards of Directors of said Companies.

IN TESTIMONY WHEREOF, I have hereunto set my hand affixed my Official Seal, at the City of Newark, New Jersey the day and year first above written.

CERTIFICATION
Cathy Cruz a Notary Public of New Jersey
My Commission Expires April 16, 2029
I, the undersigned officer of HARCO NATIONAL INSURANCE COMPANY and INTERNATIONAL FIDELITY INSURANCE COMPANY do hereby certify that I have compared the foregoing copy of the Power of Attorney and affidavit, and the copy of the Sections of the By-Laws of said Companies as set forth in said Power of Attorney, with the originals on file in the home office of said companies, and that the same are correct transcripts thereof, and of the whole of the said originals, and that the said Power of Attorney has not been revoked and is now in full force and effect.

IN TESTIMONY WHEREOF, I have hereunto set my hand on this day, March 30, 2026 A00599
Irene Martins. Assistant Secretary

EXHIBIT 2
1200
City of Stockton
Legislation Text
File #: 26-0594, Version: 1
2026 PUBLIC HEARING ON WORKFORCE VACANCIES, RECRUITMENT, AND RETENTION EFFORTS PURSUANT TO GOVERNMENT CODE SECTION 3502.3 (AB 2561) (CITY-WIDE)

RECOMMENDATION
It is recommended that the City Council conduct a public hearing and accept the City of Stockton’s Annual Workforce Vacancy, Recruitment, and Retention report pursuant to Government Code Section 3502.3.

Summary
This public hearing is being held to present information on the workforce vacancies, recruitment, and retention efforts of the City of Stockton in accordance with Government Code Section 3502.3. As of May 12, 2026, no bargaining unit’s vacancy rate met or exceeded the 20% threshold that would require additional information be provided.

Each of the bargaining units was also notified and provided an opportunity to present during these proceedings. It is recommended that Council accept the annual report.

DISCUSSION
Background
In 2024, Governor Newsom signed Assembly Bill (AB) 2561 (Attachment A) to add Government Code Section 3502.3, that requires public agencies to hold a public hearing to report on and address the state of current job vacancies in addition to recruitment and retention efforts prior to the annual adoption of the City of Stockton’s budget for the upcoming fiscal year.

The City must also present hiring challenges and any potential policy obstacles. If vacancy rates in a particular bargaining unit surpass a threshold of 20%, the City may also be required to provide further details on job openings, applicant numbers, hiring timelines, and strategies for improvement.

Additionally, employee groups are provided with an opportunity to present their perspective during these public hearings.

Present Situation
During this public hearing, staff will present the following required information:

1. The status of vacancies at the City of Stockton

2. Information on the City of Stockton’s recruitment and retention efforts

3. Obstacles in the City of Stockton’s policies, procedures, and recruitment activities that may present challenges in the hiring process.

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As of May 12, 2026, no bargaining unit or the Unrepresented group within the City of Stockton possesses a vacancy rate exceeding 20% of the total number of authorized full-time positions.

Bargaining Unit Vacancy Rate As of 05/12/2026
Stockton City Employees’ Association (SCEA) 15.99%
Mid-Level/Supervisory Level (B&C) 12.27%
Operations and Maintenance (O&M) 9.88%
Trades and Maintenance (T&M) 13.75%
Water Supervisory Unit 6.25%
Stockton Fire Management 0%
Stockton Firefighters Local 456 (Fire) 5.97%
Stockton Police Management (SPMA) 0%
Stockton Police Officers’ Association (SPOA) 15.29%
Unrepresented 13.92%
Notice for this City Council public hearing was published in The Record on May 24, 2026, and notices were sent to all bargaining units on May 27, 2026.

FINANCIAL SUMMARY
This public hearing is being held for informational purposes. Any proposed changes will go through the annual budget development process.

Attachment A - Assembly Bill 2561
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SHARE THIS: Date Published: 09/23/2024 09:00 PM
AB-2561 Local public employees: vacant positions. (2023-2024) Assembly Bill No. 2561
CHAPTER 409
An act to add Section 3502.3 to the Government Code, relating to public employment. [ Approved by Governor September 22, 2024. Filed with Secretary of State September 22, 2024. ]

LEGISLATIVE COUNSEL'S DIGEST
AB 2561, McKinnor. Local public employees: vacant positions.

Existing law, the Meyers-Milias-Brown Act (act), authorizes local public employees, as defined, to form, join, and participate in the activities of employee organizations of their own choosing for the purpose of representation on matters of labor relations. The act requires the governing body of a public agency to meet and confer in good faith regarding wages, hours, and other terms and conditions of employment with representatives of recognized employee organizations and to consider fully presentations that are made by the employee organization on behalf of its members before arriving at a determination of policy or course of action.

This bill would, as specified, require a public agency to present the status of vacancies and recruitment and retention efforts at a public hearing at least once per fiscal year, and would entitle the recognized employee organization to present at the hearing. If the number of job vacancies within a single bargaining unit meets or exceeds 20% of the total number of authorized full-time positions, the bill would require the public agency, upon request of the recognized employee organization, to include specified information during the public hearing. By imposing new duties on local public agencies, the bill would impose a state-mandated local program. The bill would also include related legislative findings.

The California Constitution requires local agencies, for the purpose of ensuring public access to the meetings of public bodies and the writings of public officials and agencies, to comply with a statutory enactment that amends or enacts laws relating to public records or open meetings and contains findings demonstrating that the enactment furthers the constitutional requirements relating to this purpose.

This bill would make legislative findings to that effect.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement shall be made pursuant to these statutory provisions for costs mandated by the state pursuant to this act, but would recognize that a local agency or school district may pursue any available remedies to seek reimbursement for these costs.

Vote: majority Appropriation: no Fiscal Committee: yes Local Program: yes Home Bill Information California Law Publications Other Resources My Subscriptions My Favorites

ATTACHMENT A
1203
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

SECTION 1. The Legislature finds and declares as follows:
(a) Job vacancies in local government are a widespread and significant problem for the public sector affecting occupations across wage levels and educational requirements. (b) High job vacancies impact public service delivery and the workers who are forced to handle heavier workloads, with understaffing leading to burnout and increased turnover that further exacerbate staffing challenges.
(c) There is a statewide interest in ensuring that public agency operations are appropriately staffed and that high vacancy rates do not undermine public employee labor relations.

SEC. 2. Section 3502.3 is added to the Government Code, to read:
3502.3. (a) (1) A public agency shall present the status of vacancies and recruitment and retention efforts during a public hearing before the governing board at least once per fiscal year. (2) If the governing board will be adopting an annual or multiyear budget during the fiscal year, the presentation shall be made prior to the adoption of the final budget. (3) During the hearing, the public agency shall identify any necessary changes to policies, procedures, and recruitment activities that may lead to obstacles in the hiring process. (b) The recognized employee organization for a bargaining unit shall be entitled to make a presentation at the public hearing at which the public agency presents the status of vacancies and recruitment and retention efforts for positions within that bargaining unit.
(c) If the number of job vacancies within a single bargaining unit meets or exceeds 20 percent of the total number of authorized full-time positions, the public agency shall, upon request of the recognized employee organization, include all of the following information during the public hearing:
(1) The total number of job vacancies within the bargaining unit. (2) The total number of applicants for vacant positions within the bargaining unit. (3) The average number of days to complete the hiring process from when a position is posted. (4) Opportunities to improve compensation and other working conditions. (d) This section shall not prevent the governing board from holding additional public hearings about vacancies. (e) The provisions of this section are severable. If any provision of this section or its application is held invalid, the invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.
(f) For purposes of this section, “recognized employee organization” has the same meaning as defined in subdivision (a) of Section 3501.

SEC. 3. The Legislature finds and declares that Section 2 of this act, which adds Section 3502.3 to the Government Code, furthers, within the meaning of paragraph (7) of subdivision (b) of Section 3 of Article I of the California Constitution, the purposes of that constitutional section as it relates to the right of public access to the meetings of local public bodies or the writings of local public officials and local agencies. Pursuant to paragraph (7) of subdivision (b) of Section 3 of Article I of the California Constitution, the Legislature makes the following findings:

It is in the public interest, and it furthers the purposes of paragraph (7) of subdivision (b) of Section (3) of Article I of the California Constitution, to ensure that information concerning public agency employment is available to the public.

SEC. 4. No reimbursement shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code for costs mandated by the state pursuant to this act. It is recognized, however, that a local agency or school district may pursue any remedies to obtain reimbursement available to it under Part 7 (commencing with Section 17500) and any other law.

ATTACHMENT A
1204
City of Stockton
Legislation Text
File #: 26-0559, Version: 1
PUBLIC HEARING TO ADOPT THE FISCAL YEAR 2026-27 ANNUAL BUDGET; APPROVE THE 2026-31 CAPITAL IMPROVEMENT PLAN; APPROVE THE FY 2026-27 FEE SCHEDULE; APPROVE THE FY 2026-27 CALIFORNIA CONSTITUTIONAL APPROPRIATIONS LIMIT; ADOPT THE FY 2026-27 ANNUAL BUDGET FOR THE PARKING AUTHORITY OF THE CITY OF STOCKTON; ADOPT THE FY 2026-27 ANNUAL BUDGET FOR THE SUCCESSOR AGENCY TO

THE FORMER STOCKTON REDEVELOPMENT AGENCY

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

1. Adopt the Fiscal Year (FY) 2026-27 Annual Budget, the 2026-31 Capital Improvement Plan, and the FY 2026-27 Fee Schedule,

2. Adopt the FY 2026-27 California Constitutional (Gann) Appropriations Limit,

3. Approve other administrative and financial actions.

And it is recommended that the Parking Authority of the City of Stockton (Parking Authority) approve a resolution to:

1. Adopt the FY 2026-27 Annual Budget for the Parking Authority (Exhibit 1 to the Parking Authority resolution).

And it is recommended that the Successor Agency to the former Stockton Redevelopment Agency (Successor Agency) approve a resolution to:

1. Adopt the FY 2026-27 Annual Budget for the Successor Agency to the former Stockton Redevelopment Agency (Exhibit 1 to the Successor Agency 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 the resolutions.

Summary
The City Manager submitted the Proposed Annual Budget, Capital Improvement Plan, and Fee Schedule to the City Council on May 15, 2026. These documents, available on the City’s website, include a detailed annual financial plan for all City funds, with the key elements summarized below.

The City Council held a public budget study session on June 2, 2026, to review the budget in detail and receive public comment for consideration. Changes requested by Council are now reflected in the staff report and resolution.

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The FY 2026-27 annual budgets for the City of Stockton Parking Authority and the Successor Agency for the former Stockton Redevelopment Agency are also provided for approval and adoption.

The proposed financial plans address Council priorities and maintain the Council’s commitment to fiscal sustainability. Expenditures in the Proposed Budget total $1.05 billion for the operations, capital, debt, and transfers for all funds and programs of the City. This amount represents an increase of $67.7 million, or 6.9%, over the FY 2025-26 Annual Budget. The increase in the city budget is attributable to several factors, including costs associated with side letter agreements with the Police and Fire Departments, as well as expenses outside our control related to health care, pensions, and general liability. We are also facing increased operating and maintenance costs due to rising inflation.

Citywide estimated revenues are $973.5 million in the FY 2026-27 Proposed Budget for all City programs excluding transfers between City funds. This projection is roughly $37 million more than the $936.1 million projected in the FY 2025-26 Annual Budget. The FY 2026-27 Annual Budget also supports 1,806 full-time positions, up from 1,785 in FY 2025-26.

Staff recommends that Council conduct a public hearing to receive input regarding the proposed budgets and, after the hearing, approve resolutions to enact the FY 2026-27 budgets for the City, the Parking Authority, and the Successor Agency to the former Stockton Redevelopment Agency.

DISCUSSION
Background
In April 2026, the City Council held its annual goal-setting session to establish priorities for the upcoming year. This workshop culminated in the selection of three top priorities: Public Safety, Economic Development, and Infrastructure Investment. These priorities helped shape the FY 2026- 27 budget development process and update long-range expenditure planning within the City’s LongRange Financial Plan. The City Manager released the FY 2026-27 Proposed Annual Budget, along with the 2025-2030 Proposed Capital Improvement Plan and the FY 2026-27 Proposed Fee Schedule to Council on May 15, 2025. The City held a public study session on June 2, 2026, to review the budget in detail and to receive public comment. Additionally, two of the City’s citizen advisory committees had the opportunity to examine the proposed budget in relation to two of the City’s three tax measures (Measures M and W). The meeting scheduled for June 1, 2026, for Measure A was cancelled. The budget for this measure will need to be presented at their next scheduled meeting.

Present Situation
The proposed budget is balanced and remains consistent with the Council’s commitment to long-term solvency. The revenue estimates and expenditure appropriations in the budget reflect all available City funds. They include operations, capital, debt, and internal transfers for all programs and support functions for the City. Fund summaries and financial schedules in the budget document show prioryear actuals, FY 2025-26 projections, and the proposed FY 2026-27 budget for each of the City’s budgetary units.

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At the public study session on June 2, 2026, the Council was presented with a balanced budget based on current projections; however, as we are currently in negotiations, the proposed FY 2026-27 budget does not reflect the impact of any ongoing contractual agreements. The adopted budget and the City’s Long Range Financial Plan will need to be adjusted to reflect these expenditures, as well as their impact on future expenditures.

There was one change requested by the City Council during the study session. On June 2, 2026, the City Council requested the addition of an agenda coordinator position in the FY 2026-27 Budget to assist with duties related to the administration and coordination of City Council Meetings. The total cost of the requested position is $253,034 with salaries and benefits. To accommodate this request the City Manager has identified $75,000 in funding from City Wide Marketing with the rest of the costs to be allocated to other City funds. These changes will be reflected in the FY 2026-27 Adopted budget book.

FY 2026-27 Annual Budget
Citywide Budget
Citywide revenues for FY 2026-27 are estimated at $973.5 million across all programs and services, an increase of almost $37 million from the prior year. Totals include external revenue of $718 million, transfers of $35.5 million, and benefit and equipment internal service fund charges of $260.8 million.

These revenues will support projected total expenditures in all funds of $1.05 billion.

The table below summarizes the proposed FY 2026-27 revenue budgets by department:

The proposed expenditure budget totals $1.05 billion for all programs, funds, and departments of the City, an increase of $67.7 million, or 6.8%, from the FY 2025-26 adopted budget.

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The table below summarizes the proposed FY 2026-27 Annual Budget by department:

The proposed FY 2026-27 Annual Budget funds 1,806 full-time positions. Mid-year and new positions approved include:
· Nurse
· Emergency Communications Manager
· Public Safety Information Systems Analyst
· Crime Analyst
· Library Manager
· Marketing and Social Media Analyst
· Library Assistant II
· Bookmobile Driver (NEW)
· 5 Fire Telecommunicators
· 3 Firefighters (NEW)
· Deputy Fire Marshal (NEW)
· Program Manager I (NEW)
General Fund Operating Budget
The total General Fund expenditure budget for FY 2026-27 is $344.5 million, an increase of $16.2 million from the FY 2025-26 Adopted Budget. Approximately $14.2 million in newly approved expenditures is included in the General Fund budget to support public safety, aligning with one of the council's top priorities. The proposed revenues of $344.5 million are also $16.2 million higher than the $328.3 million projected for FY 2025-26.

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The table below summarizes the proposed FY 2026-27 Annual Budget:

Proposed FY 2026-27 General Fund expenditures are $344.5 million. Operating expenses across the General Fund increased due to approved labor agreements, retirement rates, health insurance, general liability charges, utility rates, and maintenance costs. Employee Services expenses alone increased over the prior year by 6.7%, while overall expenses only increased by 2.6%. Employee benefits are up primarily due to increases in general liability, health, safety, and retirement rates.

While the General Fund is projected to end FY 2025-26 with a negative fund balance of $3.8 million, the City has reserves to cover the potential shortfall. This estimate is predicated on the full expenditure of FY 2025-26 budgeted allocations. As we begin to close out the fiscal year, savings from unexpended encumbrances and contracts will affect this balance, and we will adjust the projection accordingly.

General Fund Reserves
Per the General Fund - Reserve and Fund Balance Policy, updates to the General Fund reserve targets are proposed as follows:

Category Amount (millions)
Working Capital 51.9
Known Contingencies 68.4
Risk-Based 10.8
Total $131.2
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The Working Capital reserve is equivalent to two months of annual operating expenses. The Known Contingency reserve target is estimated at $68.4 million, down from the prior year's $73.5 million.

The target for the Priority II Risk-Based Reserve in the Fiscal Sustainability Fund is projected at $10.8 million, which is the same as the estimate for FY 2025-26. These changes are based on updates to infrastructure, liability, and revenue amounts.

At the end of FY 2025-26, any General Fund available balance will be assigned to the Working Capital reserve consistent with the reserve policy. Any amount assigned to the Known Contingency reserve will help fund future pension costs, public safety facility needs, retention and recruitment efforts, and the replacement of any of the City’s operating and infrastructure systems. The current General Fund balance is sufficient to fund the Working Capital and the Known Contingency reserves.

Under the Council reserve policy, any balance above what is required for these amounts is to be split between Council Priority projects and Risk-Based Reserves.

Citizens’ Advisory Committees
The FY 2026-27 Proposed Annual Budget was presented to the Measure W Oversight Committee on May 28th and to the Measure M (Strong Communities) Advisory Committee on June 4th. The financials related to the oversight for each group were also discussed, with any follow-up to be provided at their next scheduled meetings.

The Measure A Citizens Advisory Committee Meeting, which was scheduled for June 1, 2026, was canceled, so the financials for the upcoming budget year have not been presented to this group. This will need to occur at their next regularly scheduled meeting. 2026-2031 Capital Improvement Plan (CIP)
The CIP is a five-year plan that lists the City’s facility and infrastructure needs. For FY 2026-27, the annual appropriation for the CIP is approximately $85.4 million. Below is a list of some FY 2026-27 capital projects proposed consistent with the council’s strategic priorities:

Citywide Roof Replacement and Construction · Citywide HVAC Unit Repair & Replacement · Community Center Lighting Control Upgrades · SEB 911 Communications Center HVAC Upgrade · Oak Park Senior Center RR/ADA Upgrade · Neighborhood Traffic Management Program · Mormon Slough Improvements · Delta Water Treatment Plant (DWTP) Campus Improvements · DWTP Groundwater Recharge Basins · Advanced Metering Infrastructure · Well and Reservoir Improvements · Pump Station Rehabilitation and Improvements · Water Service Line Replacements · City Street Restriping · Sidewalk, Curb, and Gutter Repairs · Local Street Resurfacing City of Stockton Page 6 of 9 Printed on 6/5/2026
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The proposed five-year Capital Improvement Plan covers fiscal years 2026-2031 and totals $1.58 billion. More than half of the CIP is related to Transportation projects ($948.02 million), with Municipal Utility projects ($213.9 million), and other Citywide projects ($416.9 million) comprising the remainder.

FY 2026-27 Fee Schedule
The FY 2026-27 Fee Schedule reflects new and proposed changes to existing fees across several City departments, including a 3.0% inflationary adjustment to all fees, intended to address rising service costs. Section 1 of the Proposed FY 2026-27 Fee Schedule lists the proposed new and changed fees, along with reasons for each change. Proposed new fees are presented for the City Clerk’s Office, Economic Development, Police, and Recreation & Leisure. Proposed fee changes include Community Services, Economic Development, Municipal Utilities, Police, and Recreation & Leisure. Wastewater rates are set to increase 4% based on the rate study completed in FY 2024-25.

Two City departments are proposing to inactivate ten existing fees. Fee changes are summarized in the Proposed Fee Schedule, pages I-3 to I-17.

Parking Authority of the City of Stockton
The Parking Authority of the City of Stockton is a public body established by the City Council in Resolution 2013-12-17-1209, pursuant to the Streets and Highways Code, to oversee the parking garages, lots, on-street spaces, and enforcement activities within the boundaries of the City of Stockton CFD 2001-1 Downtown Parking District.

Revenues derived from parking fees within the district and from enforcement of parking violations are pledged to first pay the 2020 Parking Bond debt service, then to operations, maintenance, and any other obligations of the Authority. Taxes assessed on property owners and businesses in the downtown parking district are recorded in this fund and used for parking management and operations City of Stockton Page 7 of 9 Printed on 6/5/2026
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of parking facilities and programs within the district.

In February 2020, the Parking Authority refinanced existing parking bonds to save money and to procure $3 million for capital needs. The bonds have funded much-needed elevator upgrades and the replacement of the revenue control system, including ingress and egress equipment at parking garages and lots. These capital upgrades enhanced safety, reliability, and efficiency across the facilities and enabled staff to provide better service to parking customers.

Parking operations are emerging from the impacts of the COVID-19 pandemic, with overall revenues expected to surpass pre-COVID levels in FY 2022-23. Despite the overall improvement in performance, enforcement revenues remain the slowest to recover, as citations have not returned to their previous payment rates. The Parking Fund received $770,000 from ARPA Funds to offset some of the losses from previous years. Operations and monthly proceeds will be monitored closely as parking revenues continue to stabilize and expenses are managed with rising labor and service/maintenance costs.

Successor Agency to the former Stockton Redevelopment Agency The Successor Agency depends on the receipt of property tax increment revenues to pay obligations of the former Stockton Redevelopment Agency. After approval by the Oversight Board, tax increment funds are distributed to the Successor Agency by the San Joaquin County Auditor-Controller’s Office.

The use of tax increment is restricted, and the Successor Agency does not receive excess tax increment. Excess tax increment, after payment of debt and administrative costs, is distributed to other taxing entities, such as the City, San Joaquin County, the State of California (for schools), and special districts.

Successor Agency revenue of $7.3 million is projected to fund the bond debt payment for FY 2026-

27. Any Ending Available Balance in the Successor Agency will be retained by the San Joaquin County Auditor-Controller for distribution to other taxing entities, including the City of Stockton.

Other Budget Actions
FY 2026-27 Gann Appropriation Limit
The California Constitution limits growth in local government spending and sets a maximum on expenditures from general taxes. The law, commonly known as the Gann Limit, requires that the limit is recalculated and approved annually by the City Council at the beginning of each fiscal year. The Gann Limit is indexed to specified growth factors approved by the Legislature and applied to revenue appropriations.

The City’s FY 2026-27 Gann Limit has been calculated at $536,588,822, which exceeds the proposed appropriations subject to the limit of $290,358,044. The City’s appropriations remain well within the Constitutional appropriations limit.

FINANCIAL SUMMARY
The proposed FY 2026-27 Annual Budget appropriates $1,049,877,358 in all City funds, $8,142,508 for the Parking Authority, and $7,386,800 for the Successor Agency.

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The complete documents of the City’s Proposed FY 2026-27 Annual Budget, the Proposed 2025- 2030 Capital Improvement Plan, and the Proposed FY 2026-27 Fee Schedule are available for review on the City’s website
<https://www.stocktonca.gov/government/budget___financial_reports/index.php> or in the City Clerk’s Office.

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Resolution No.

STOCKTON CITY COUNCIL

RESOLUTION OF THE CITY OF STOCKTON APPROVING THE FISCAL YEAR 2026-27 ANNUAL BUDGET; APPROVING THE 2026-2031 CAPITAL IMPROVEMENT PLAN; APPROVING THE FISCAL YEAR 2026-27 FEE SCHEDULE; ADOPT THE FISCAL YEAR 2026-27 CALIFORNIA CONSTITUTIONAL APPROPRIATIONS LIMIT,

AND ADMINISTRATIVE ACTIONS
On May 15, 2026, in accordance with City Charter, Article XIX, Section 1905, the City Manager provided City Council the Proposed Fiscal Year (FY) 2026-27 Annual Budget, Proposed 2026-2031 Capital Improvement Plan, and Proposed FY 2026-27 Fee Schedule; and
The City Council scheduled a budget study session on
June 2, 2026, to review projections, allow for public discussion, and provide direction in the preparation of the annual budget. This study session included the FY 2026-27 Annual Budget, the 2026-2031 Capital Improvement Plan, and FY 2026-27 Fee Schedule; and On June 9, 2026, the City Council conducted a duly noticed public hearing on the Proposed FY 2026-27 Annual Budget, the Proposed 2026-2031 Capital Improvement Plan, and the Proposed FY 2026-27 Fee Schedule, now, therefore,

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

1. The Annual Budget of the City of Stockton for Fiscal Year beginning July 1, 2026, and ending June 30, 2027, prepared and submitted to the City Council by the City Manager and on file in the office of the City Clerk, as modified and amended by the City Council, is hereby adopted as the Annual Budget Fiscal Year beginning July 1, 2026, and ending June 30, 2027, on the basis of the totals set forth in each of the budgets contained in each department, the totals set forth therein for debt redemption and interest requirements, and the totals set forth therein for capital improvements.

2. The City Manager is authorized to make inter-fund transfers subject to approval by the City Council in monthly increments or in a lump sum to finance a particular item, project, or program.

3. The City Council approves the Five-Year Capital Improvement Plan for Fiscal Years 2026-2031, accepts the Planning Commission’s determination on April 23, 2026, that the Fiscal Year 2026-2027 capital projects are consistent with the General Plan of the City of Stockton, and authorizes the 1214
City Manager or designee to transfer funding between approved capital projects.

4. The FY 2026-27 Fee Schedule is adopted effective July 1, 2026. Any fee changes that are not effective July 1, 2026, are noted in the document.

5. The fees on development projects will take effect 60 days following the final action on the increases in the FY 2026-27 Fee Schedule, where Government Code section 66017(a) applies.

6. An appropriation limit (GANN Limit) is established in the amount of $536,588,822 for FY 2026-27 pursuant to Division 9 of Title 1 of the California Government Code. The City of Stockton selected the "change in California per capita personal income" for the "change in cost of living" component and the change in annual population for the County of San Joaquin as of January 1, 2026, component in the calculation of the appropriation limit.

7. The City Manager, or designee, is authorized to approve loans made through the City’s Single-Family Housing Repair Loan Program, which meet all the requirements of the adopted program guidelines, within existing budget appropriations.

8. The City Attorney is authorized to enter into settlement agreements and contracts for services and supplies where the total cost is: below the expenditure limit established in section 3.68.040 of the Stockton Municipal Code, within existing budget appropriation, and consistent with established administrative processes.

9. Fire Department Deputy Fire Chief I or II classifications shall be eligible to receive compensation at their hourly rate for any time worked beyond their normal forty (40) hour work week while deployed to support the State of California Office of Emergency Services (OES) or federal wildfire or disaster responses, subject to City Manager approval. The City will invoice the state and/or federal government for the full reimbursement of all costs associated with the deployment of City resources for emergency responses.

10. The City Manager, or designee, is authorized to adjust appropriations from the General Fund Contingency account to General Fund Departments, subsidized programs and Internal Service Funds as needed for unexpected expenditures or emergencies that are unanticipated at the time of the budget adoption. The City Manager or designee will report Contingency uses with each quarterly budget status report.
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11. The remaining balances on all capital and technology projects, and grant funds are authorized to continue beyond the fiscal year in which they are originally appropriated until project cancellation or completion, grant expiration, or funds are fully expended.

12. Upon completion of a capital project, the City Manager, or designee, is authorized to distribute any remaining unencumbered unrestricted appropriation balances up to $100,000 to incomplete projects previously authorized in the five-year Capital Improvement Plan as allowed by funding source.

13. An interfund loan in the amount of $1,112,000 from the City Workers’ Compensation Internal Service Fund (530) was approved by City Council Resolution # 2026-01-27-1204 to be fully repaid with annual compounded interest of 4.35% no later than June 30, 2030, by the Emergency Communications Division (ECD) General Fund sub-fund (100-130). The City Manager is authorized to transfer back any unused portion of the initial loan with no interest during the same fiscal year 2025-26 for the amount that was not expended from Fire Dept General Fund (100) and Emergency Communications Division General Fund sub-fund (100-130). The City Manager is also authorized to partially prepay the remaining amount of this interfund loan at any time when sufficient funds are available in the ECD sub-fund.

14. The City Manager or his designee is authorized to establish revenue estimates and corresponding budget appropriations in the appropriate Fire Department accounts as needed during any fiscal year to recognize the costs and the associated reimbursement revenue for providing wildland firefighting and other disaster response services requested by state or federal governments.

15. The following administrative actions required to implement the FY 2026-27 Annual Budget are authorized:
a) Level of Budgetary Control – Budgetary control is established at the following levels: a) General Fund - Department Level; b) Other Funds - Fund level; and c) Capital Fund - Project level. The City Manager, or designee, may authorize line-item budget transfers within a General Fund department, or within a fund other than the General Fund.
b) The City Manager may authorize line-item budget transfers between departments and funds to implement Councilmember direction regarding the use of Council Discretionary funds. Transfer of cash 1216
between funds from the Council Discretionary budget line is further authorized as appropriate and necessary.
c) The City Manager may revise the schedule of any appropriation made in this resolution where the revision is of a technical nature and is consistent with the intent of Council. The City Manager, or designee, is authorized to make administrative corrections to the FY 2026-27 Annual Budget with a subsequent report to Council on any corrections greater than $100,000.
d) The City Manager, or designee, is authorized to establish and amend revenue estimates and expenditure appropriations corresponding to receipt or award of grant funding, donations, and reimbursements where these special monies and any matching City funds are under the expenditure limit of $100,000 as established by Ordinance 2021- 11-01-1501, which amended Section 3.68.040 of the Stockton Municipal Code.
e) The City Manager, or designee, is authorized to abolish positions and/or reduce and reorganize personnel, programs, services, departments, offices, or agencies and take such other action as is necessary to maintain a balanced budget.
f) The City Manager is authorized to adjust classifications, including salary and benefit adjustments, to ensure comparability with similar classifications to maintain equity in the City's salary schedules as recommended by the Human Resources Department classification studies and reviews, and to incorporate changes into the Salary Schedule, as appropriate.
g) The City Manager, or designee, is authorized to hire fire academy recruits in an amount above the total City Council authorized full-time positions to accommodate attrition.
h) The City Manager, or designee, is authorized to fill additional Special Revenue Fund positions, such as grant-funded, Measure W, and contract reimbursement positions, if additional funding becomes available.
i) The indirect cost rate, as detailed in the City of Stockton Full Cost Allocation Plan and Cost Recovery Allocation Plan, shall be charged to departments and capital projects as project funding and regulations permit. The City Manager or designee is authorized to modify appropriations resulting from an independently prepared indirect cost allocation plan.
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j) The City Manager, or designee, is authorized to prepay the City’s annual CalPERS payments in a lump sum consistent with the FY 2026-27 budget.
k) The City Council delegates investment authority to the Chief Financial Officer, acting in capacity of Treasurer, for the period of July 1, 2026, through June 30, 2027, pursuant to section 53607 of the California Government Code.
l) The City Manager, or designee, is authorized to make the Contingent General Fund Payment to Assured Guaranty per the terms of the Reimbursement Agreement. Should the amount exceed the FY 2026-27 budget estimate, the City Manager or designee is authorized to increase the budget appropriation and transfer from the General Fund.
m) The City Manager, or designee, is authorized to make the Community Facilities District payments as required per the terms of the CFD formation resolutions. Should the amount exceed the FY 2026-27 budget estimate, the City Manager or designee is authorized to increase the budget appropriations from the correct sub-funds.
n) The City Manager, or designee, is hereby authorized to take whatever actions are necessary and appropriate to carry out the purpose and intent of this resolution including, but not limited to, adjusting appropriations from the General Fund Non-Departmental accounts to General Fund Departments, subsidized programs and Internal Service Funds as needed to implement budget revisions authorized by Council.

PASSED, APPROVED, and ADOPTED June 9, 2026 .

CHRISTINA FUGAZI
Mayor of the City of Stockton
ATTEST:
______

KATHERINE ROLAND, CMC, CPMC
City Clerk of the City of Stockton
1218
Resolution No.

PARKING AUTHORITY OF THE CITY OF STOCKTON
RESOLUTION APPROVING BUDGET FOR THE 2026-27 FISCAL YEAR In December 2013, the City Council by Resolution 2013-12-17-1209 established the Parking Authority, as a separate entity, to protect the general fund and improve the quality and efficiency of parking operations, consistent with terms negotiated with NPFG in the bankruptcy process; and
The Parking Authority is comprised of the garages, other downtown parking structures and lots, and downtown parking meter and parking enforcement revenues; and These revenues are pledged to the modified schedule of payments on the Parking Structure Lease Back (Parking Bonds debt service), and the City’s General Fund will have no liability for the modified payment schedule; and
The budget for parking operation revenues and expenses is budgeted in the Parking Authority fund 630; and now, therefore,

BE IT RESOLVED BY THE BOARD OF THE PARKING AUTHORITY OF THE CITY OF STOCKTON, AS FOLLOWS:

1. The Board hereby approves the Fiscal Year 2026-27 Annual Budget for the Parking Authority fund 630, which is attached hereto as Exhibit 1.

2. The Executive Director is hereby authorized to take any and all actions deemed necessary and appropriate to carry out the purpose and intent of this Resolution.

PASSED, APPROVED, and ADOPTED June 9, 2026 .

ATTEST:

CHRISTINA FUGAZI, Chairperson
of the Parking Authority Board
KATHERINE ROLAND, Secretary
of the Parking Authority Board
1219
FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27
Actual Actual Projected Budget
Beginning Available Balance $ 7,002,257 4,969,628 $ 7,414,114 $ 6,804,370 $ Revenues
Assessments 1,574,103 1,591,286 1,500,000 1,500,000
Operating Revenue/Fees 4,648,514 5,075,217 5,044,284 5,383,750 Parking Citations/Fines 737,876 733,165 685,000 725,000 Other Revenues 294,789 54,373 177,724 208,000
Investment Proceeds 215,714 211,664 106,385 -
7,470,996 7,665,705 7,513,393 7,816,750
Expenditures
Administration 640,901 561,300 645,026 607,917
Other Services 54,367 168,864 150,000 104,455
Parking Operations 2,497,739 3,446,216 4,030,879 4,101,042 Parking Enforcement 460,899 784,581 812,354 847,167
Debt Service 1,311,886 1,267,955 2,484,878 2,481,927
Parking Improvements 472,575 1,024,929 - -
5,438,367 7,253,845 8,123,137 8,142,508
Transfers
Transfer In - Other - - - -
Transfer Out - - - -
- - - -
Net Annual Activity 2,032,629 411,860 (609,744) (325,758) Ending Available Balance $ 7,002,257 $ 7,414,117 $ 6,804,370 $ 6,478,612 Economic Development Department
Parking Authority - 630
FY 2026-27 Annual Budget
City of Stockton I - 35 FY 2026-27 Proposed
Annual Budget
EXHIBIT 1
1220
Resolution No. SRD

SUCCESSOR AGENCYTOTHEFORMER REDEVELOPMENT AGENCY OF

THE CITY OF STOCKTON
RESOLUTION ADOPTING AN ANNUAL BUDGET FOR THE 2026-27 FISCAL YEAR AND

APPROVING CERTAIN RELATED ACTIONS
The Redevelopment Agency (“Redevelopment Agency”) of the City of Stockton (“City”) was duly created pursuant to the California Community Redevelopment Law (Part 1 [commencing with Section 33000] of Division 24 of the California Health and Safety Code) (“Redevelopment Law”); and
Assembly Bills x1 26 (“AB x1 26”) and 1484 (“AB 1484”) were signed by the Governor of California on June 28, 2011, and on June 27, 2012, dissolving all California redevelopment agencies; and
On February 1, 2012, all California redevelopment agencies were replaced by successor agencies to the former redevelopment agencies pursuant to Health and Safety Code section 34173(a); and
The City Council adopted Resolution No. 11-0251, electing for the City to serve as the Successor Agency to the Stockton Redevelopment Agency upon the dissolution of the Redevelopment Agency; and
The Successor Agency is tasked with paying, enforcing the obligations, and winding down the affairs of the former Redevelopment Agency; and The Successor Agency must prepare and submit an administrative budget to the Oversight Board for approval; and
Commencing July 1, 2016, the administrative cost allowance shall be up to three percent (3%) of the actual property tax distributed to the Successor Agency in the preceding fiscal year for payment of approved enforceable obligations, reduced by the administrative cost allowance and loan repayments made to the City during the preceding fiscal year; the amount shall not be less than $250,000 for any fiscal year; and The Successor Agency’s annual budget for Fiscal Year 2026-27 is attached hereto as Exhibit 1; and
This Resolution has been reviewed with respect to applicability of the California Environmental Quality Act (“CEQA”), the State CEQA Guidelines (California Code of Regulations, Title 14, section 15000 et seq., hereafter the “Guidelines”), and the City’s environmental guidelines; and
This Resolution is not a “project” for purposes of CEQA, as that term is defined by Guidelines section 15378, because this Resolution is an organizational or administrative activity that will not result in a direct or indirect physical change in the environment, per 1221
section 15378(b)(5) of the Guidelines; and
All of the prerequisites with respect to the approval of this Resolution have been met; now, therefore,

BE IT RESOLVED BY THE SUCCESSOR AGENCY TO THE FORMER
REDEVELOPMENT AGENCY OF THE CITY OF STOCKTON, AS FOLLOWS:

1. The foregoing is true and correct and is a substantive part of this Resolution and all prerequisites to its adoption have occurred.

2. The adoption of this Resolution is not intended to and shall not constitute a waiver by the Successor Agency of any rights the Successor Agency may have to challenge the effectiveness and/or legality of all or any portion of AB x1 26 or AB 1484 through administrative or judicial proceedings.

3. The Successor Agency hereby adopts the annual budget, attached hereto as Exhibit 1 and incorporated herein by this reference.

4. The Successor Agency determines that this Resolution is not a “project” for purposes of CEQA, as that term is defined by Guidelines section 15378, because this Resolution is an organizational or administrative activity that will not result in a direct or indirect physical change in the environment, per section 15378(b)(5) of the Guidelines.

5. The Executive Director, or designee, is hereby authorized to amend the budget as necessary to conform to the actual amount of tax increment received from the County Auditor-Controller for the previous fiscal year and Fiscal Year 2026-27.

6. The Executive Director, or designee, is hereby authorized to consolidate the Successor Agency funds in the previous fiscal and Fiscal Year 2026-27.

7. The Executive Director, or designee, is hereby authorized to take such actions as are necessary and appropriate to comply with Health and Safety Code section 34177, and to carry out the purposes and intent of this Resolution.

PASSED, APPROVED, and ADOPTED June 9, 2026 .

ATTEST:

CHRISTINA FUGAZI, Chairperson
of the Successor Agency to the
Stockton Redevelopment Agency
KATHERINE ROLAND, Secretary
of the Successor Agency to the
Stockton Redevelopment Agency
1222
State Revolving
Revenue Bonds Revenue Bonds Fund
2016A Series 2016B Series Debt Service
700 700 700
Date Issued 11/3/2016 11/3/2016
Purpose Housing
RDA Projects RDA Projects
Expenditures
Principal $ 4,360,000 $ - $ 4,360,000
Interest 3,026,800 - 3,026,800
Administration - - -
7,386,800 - 7,386,800
Transfers
Transfer In - Successor Agency 7,386,800 - 7,386,800
7,386,800 - 7,386,800
Net Annual Activity $ - $ - $ -
Successor Agency Debt Service Fund - 700
FY 2026-27 Annual Budget
City of Stockton L - 8 FY 2026-27 Proposed
Annual Budget
EXHIBIT 1
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City of Stockton
Legislation Text
File #: 26-0528, Version: 1
PROPOSITION 218 PUBLIC HEARING TO CONSIDER STORMWATER RATE ADJUSTMENTS

RECOMMENDATION
It is recommended that the City Council adopt a resolution approving the Stormwater Utility rate adjustments as identified in the Final Stormwater Rate Study (Study) (Attachment A) if a majority of returned ballots support the proposed adjustments.

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

Summary
The Municipal Utilities Department (MUD) Stormwater Utility operates 77 pump stations, over 600 miles of pipeline, and 22,500 drain inlets that convey precipitation from streets and other hard surfaces to flood basins and local waterways.

The Stormwater Utility rate set in 1992 no longer keeps pace with inflation, capital improvement demands, or rising service costs. As a result, reserves will be depleted below required levels, threatening the utility’s ability to sustain ongoing operations and maintenance. If stormwater rates are not adjusted, the City will eventually have to seek other funding methods to support the stormwater program and provide the necessary services to protect the community, property, and the environment.

Approval of the proposed rates would establish the maximum stormwater rates that may be charged during the five-year period. Before implementing any rate adjustments each fiscal year, staff will review the revenue requirements and the rates needed to meet those requirements as part of the Annual Budget process.

DISCUSSION
Background
The MUD Stormwater Utility was established in 1992 as a separate enterprise fund, previously operating under the Wastewater Utility. As state and federal stormwater discharge requirements expanded, program management needs and capital costs increased, prompting the creation of a dedicated fund and rate. Council Resolution No. 91-0866 approved a stormwater service fee of $2.10 per month for all residential units beginning January 1992, designed to support the utility’s FY 1991- 92 operations, maintenance, and administration.

In 1996, California voters approved Proposition 218, requiring local agencies to follow strict public City of Stockton Page 1 of 4 Printed on 6/5/2026
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procedures when adjusting property
‑
related fees such as water, sewer, and stormwater rates.

In 2011, the City attempted to adjust stormwater fees; however, property owners did not approve it.

In March 2023, the City Council adopted the 2023 Stormwater Master Plan (SWMP) by Resolution 2023
‑
03 ‑
07 ‑
1501. The SWMP included an updated assessment of stormwater infrastructure, development of a citywide system model, identification of system deficiencies under existing and 2040 General Plan buildout conditions, and preparation of a Stormwater Capital Improvement Plan (CIP) with preliminary cost estimates. The model identified areas of concern and outlined 12 CIP projects, ranging from $4.5 million to $75 million, which form the basis of the current Study.

On August 22, 2023, the City Council adopted Resolution 2023 ‑
08 ‑
22 ‑
1214 authorizing a
professional services contract with HDR Engineering, Inc. (HDR) to evaluate the Stormwater Utility’s revenue requirements, conduct a cost
‑
of
‑
service analysis, and develop proportionate rates for all customer classes, including residential, multi
‑
family, apartments, commercial, institutional, and
industrial.

On January 27, 2026, the City Council adopted Resolution 2026 ‑
01 ‑
27 ‑
1601 authorizing a public
hearing on March 31, 2026, to consider adjustments to the City’s stormwater rates and charges and directing the City Manager to mail notice of the hearing to all Stormwater Utility customers and affected property owners.

On February 10, 2026, staff mailed the required Proposition 218 notice to property owners and stormwater utility customers explaining the proposed rate adjustments, the date and time of the public hearing, and the procedures for submitting written protests.

At the close of the public hearing on March 31, 2026, fewer than 50 percent of property owners submitted valid protests. Therefore, the City Council adopted Resolution 2026 ‑
03 ‑
31 ‑
1503 directing
staff to mail ballots to all property owners within the stormwater service area.

The City pays its proportional share to the Stormwater Utility because it is a major owner of impervious surfaces, including roads, parking lots, infrastructure, and rooftops. On April 28, 2026, through Resolution 2026
‑
04 ‑
28 ‑
1210, the City Council cast ballots in favor of the proposed stormwater rate adjustment for City
‑
owned parcels, consistent with the City’s rights as the record owner under Proposition 218.

Present Situation
The proposed stormwater rates were developed in compliance with Proposition 218, which requires that fees do not exceed the cost of providing service and that charges be proportional to each parcel’s share of that cost. Revenue requirements are allocated to customer classes based on each parcel’s ERUs, including residential, multi-family, apartments, commercial, institutional, and industrial customers, both within City limits and in applicable unincorporated County areas. The rate design is cost-based, aligned with the revenue requirement analysis, and equitably distributed among all customer classes.

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The Study focused solely on potential adjustments to the stormwater service charge. To determine the utility’s revenue needs from FY 2025
‑
26 through FY 2029
‑
30, HDR conducted three analyses: a
revenue requirement analysis to compare projected expenses and revenues; a cost ‑
of
‑
service
analysis to allocate costs fairly among customer classes; and a rate design analysis to determine the structure needed to collect the required revenue. Together, these analyses show that current stormwater rates are insufficient to meet operational and capital needs, requiring rate adjustments.

The proposed stormwater rates and charges for each customer class and the effective dates are shown in the following table:
*Includes all residential accounts other than single-family (i.e., duplex, fourplex, apartment homes, etc.)
**Non-residential accounts are billed based on the number of ERUs existing on each individual parcel. The actual service charge shall equal the one ERU multiplied by the ERU rate.

Public Outreach and Notification
MUD staff provided information about the Study and an overview of the legal process requirements of Article XIII D to the Water Advisory Group on April 1, 2026, and to the Council Water Committee on April 10, 2025, November 13, 2025, and January 8, 2026.

On January 27, 2026, the City Council authorized MUD staff to mail a Notice to all City of Stockton Stormwater Utility customers and the record owners of property upon which the rates and charges are proposed for imposition.

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On February 10, 2026, staff mailed Public Hearing Notices to record property owners and stormwater utility customers. The Notice included information on the amount of the proposed adjustments; the reasons for the adjustments; the date, time and location of the Public Hearing; and instructions to protest the proposed adjustments. The Notice listed March 31, 2026, at 5:30 p.m. as the date and time of the Public Hearing.

In April, staff also mailed property owners and Stormwater Utility customers additional information explaining the proposed rate adjustments, the community meeting details, and the procedures for returning ballots.

In addition, a dedicated phone line and an Ask Stockton topic provided additional ways to contact the City for questions and information on the proposed stormwater rate adjustments. The phone line is a message line. All calls were returned by a knowledgeable individual within two business days.

Staff also held a community meeting on May 14, 2026, at the Stockton Memorial Civic Auditorium South Hall. (The May 14th Community meeting was originally set for the South Hall, but due to a graduation event at the arena, it was moved to the North Hall. Appropriate signage was posted directing all attendees to the new location. In addition, parking spaces on the north side of the building were reserved to ensure parking despite the large number of graduation attendees.). The meeting included a presentation about the proposed rates, and an opportunity for community members to ask questions. The presentation was recorded and is available at www.stocktonca.gov/StormRates <http://www.stocktonca.gov/StormRates>.

Outreach to commercial and industrial customers included meetings held by staff with interested groups upon request.

FINANCIAL SUMMARY
The current stormwater rate, established in 1992, has not been updated to reflect inflation or rising costs for operations, infrastructure, and maintenance. The Stormwater Rate Study (Attachment A) projects that without additional revenue, the utility will face an annual deficit of about $5 million starting in FY 2027-28, putting critical flood
‑
protection infrastructure at risk. Ongoing shortfalls are also expected to draw reserves below policy levels, creating a growing structural deficit in the Stormwater Utility fund.

If approved, the proposed Stormwater rate adjustments will generate sufficient revenue over the next five years to pay for Stormwater Utility operation and maintenance costs, infrastructure needs, and capital improvement projects, while also maintaining bond coverage covenants.

This action has no impact on the General Fund or any other unrestricted funds.

Attachment A - Final Stormwater Rate Study
City of Stockton Page 4 of 4 Printed on 6/5/2026
powered by Legistar™1227
City of Stockton
Municipal Utilities Department
Comprehensive Stormwater
Rate Study
March 2026
Final Report

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March 31, 2026
Mr. Jeff Marasovich
Deputy Director of Stormwater Operations
City of Stockton Municipal Utilities Department
2500 Navy Drive
Stockton, CA 95206
Subject: Stormwater Final Rate Study Report
Dear Mr. Marasovich:

HDR Engineering, Inc. (HDR) is pleased to present to the City of Stockton Municipal Utilities Department (Department) the final report for the comprehensive stormwater rate study (Study).

The Department’s comprehensive Study was developed to provide cost-based stormwater rates that generate sufficient revenue to fund the operation and maintenance and capital needs of the stormwater utility. More specifically, the Study was designed to develop proportional rates for the Department’s customers. This report outlines the overall approach used to achieve these objectives, along with our findings, conclusions, and recommendations.

The costs associated with providing stormwater services to the Department’s customers has been developed based on Department specific information and costs and is included within the development of the proposed stormwater rates. The Study was developed utilizing industry recognized generally accepted rate setting principles and methodologies, which were then tailored to the Department’s specific stormwater system and customer characteristics. This report provides the basis for developing and implementing stormwater rates which are costbased, proportional, and defensible for the Department’s customers. The development of the proposed rates is based on the assumptions and data provided at the time of the Study. Should these change, the proposed rates should be reviewed to determine if adjustments should be made to reflect the cost basis and proportionality of the adopted rates.

We appreciate the assistance provided by the Department’s project team in the development of the Study. More importantly, HDR appreciates the opportunity to provide these technical and professional services to the City of Stockton Municipal Utilities Department.

Sincerely yours,
HDR Engineering, Inc.

Shawn Koorn
Associate Vice President

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Executive Summary
Introduction .............................................................................................................................. 1 Overview of the Stormwater Utility ........................................................................................ 1 Overview of the Rate Study Process ....................................................................................... 1 Key Stormwater Rate Study Results........................................................................................ 2 Summary of the Stormwater Revenue Requirement Analysis ................................................ 3 Summary of the Stormwater Cost of Service Analysis ........................................................... 6 Summary of the Stormwater Rate Design ............................................................................... 6 Summary of the Stormwater Rate Study ................................................................................. 8 1 Introduction and Overview

1.1 Introduction ................................................................................................................... 9 Overview of the Stormwater Utility ........................................................................................ 9

1.2 Goals and Objectives .................................................................................................... 9

1.3 Overview of the Rate Study Process ........................................................................... 10

1.4 Organization of the Study ........................................................................................... 11 2 Overview of Rate Setting Principles

2.1 Introduction ................................................................................................................. 12

2.2 Generally Accepted Rate Setting Principles ............................................................... 12

2.3 Determining the Revenue Requirement ...................................................................... 12

2.4 Analyzing Cost of Service .......................................................................................... 13

2.5 Designing Utility Rates ............................................................................................... 14

2.6 Economic Theory and Rate Setting ............................................................................ 14 3 Stormwater Revenue Requirement

3.1 Introduction ................................................................................................................. 15

3.2 Determining the Revenue Requirement ...................................................................... 15

3.2.1 Establishing a Time Frame and Approach .................................................... 15

3.2.2 Projecting Rate and Other Miscellaneous Revenues ..................................... 16

3.2.3 Projecting Operation and Maintenance Expenses ......................................... 17

3.2.4 Projecting Capital Funding Needs ................................................................. 18

3.2.5 Projection of Debt Service ............................................................................ 20

3.2.6 Reserve Funding ............................................................................................ 20

3.2.7 Summary of the Stormwater Revenue Requirement ..................................... 20

3.3 Consultant’s Conclusions............................................................................................ 22 Table of Contents

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4 Stormwater Cost of Service

4.1 Introduction ................................................................................................................. 23

4.1.1 Objectives of a Cost of Service Analysis ...................................................... 23

4.2 General Cost of Service Procedures ........................................................................... 23

4.3 Summary of the Stormwater Cost of Service Analysis .............................................. 23

4.4 Consultant’s Conclusions and Recommendations ...................................................... 24 5 Stormwater Rate Design Analysis

5.1 Introduction ................................................................................................................. 25

5.2 Rate Design Criteria and Considerations .................................................................... 25

5.3 Development of Cost-Based Stormwater Rates .......................................................... 25

5.4 Overview of the Present and Proposed Stormwater Rates .......................................... 26

5.5 Summary of the Stormwater Rate Study .................................................................... 27 Technical Appendix A – Stormwater Analysis
Technical Appendix B –Proposition 218 Notice

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Executive Summary
Introduction
HDR Engineering, Inc. (HDR) was retained by the City of Stockton Municipal Utilities Department (Department) to conduct a comprehensive stormwater rate study (Study). The main objectives of the Study were to:

Develop a projection of stormwater revenues to support the Department’s operating and capital costs
Proportionately distribute the costs of providing stormwater service to the customers receiving service
Propose cost-based and proportional stormwater rates for a multi-year time period that are in compliance with Proposition 218 requirements
The Department owns, operates, and maintains the stormwater system, which provides service to customers within the City of Stockton and the surrounding area. The costs associated with providing stormwater service to the Department’s customers have been based on the information developed and provided by the Department and are the basis for the proposed rates.

Overview of the Stormwater Utility
The Department’s stormwater system protects people, property, and waterways by reducing flood risk, and preventing pollutants from flowing into local rivers, creeks, sloughs, and the Delta.

The Department’s stormwater utility is an enterprise fund and as such is funded primarily through charges (i.e., rates) to the Department’s approximately 243,000 customers benefiting from stormwater services. The stormwater rate is intended to fund the operation, maintenance, and improvements to over 600 miles of pipelines, over 23,000 catch basins (storm drains), 77 pump stations and 19 detention basins. As noted, the funding is provided primarily through the monthly stormwater rate which was implemented in 1992 and has not been adjusted since that time.

Since the implementation of the stormwater rate, the City has grown, as have the Department’s responsibilities, maintenance of aging infrastructure to provide service, as well as changes in the National Pollutant Discharge Elimination System requirements the Department must meet.

As a result of inflationary increases in operating expenses, stricter state and federal regulations, and aging infrastructure, the current stormwater rate, and revenue it generates, is no longer sufficient to support the stormwater utility. Absent additional funding, the Department will not be able to maintain the existing infrastructure or make necessary improvements to aging and failing infrastructure. This will result in the deferral of infrastructure improvements and maintenance, increased risk of flooding and pollution in local waterways. The purpose of this study is to develop the projection of rate revenue needs and the projection of cost-based and proportional rates for the Department’s stormwater customers.

Overview of the Rate Study Process
A comprehensive rate study uses three interrelated analyses to address the adequacy and proportionality of a utility’s rates. These three analyses are a revenue requirement analysis, a

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cost of service analysis, and a rate design analysis. These three analyses are illustrated below in Figure ES – 1.

Figure ES – 1
Overview of the Comprehensive Stormwater Rate Analyses
The above framework was utilized in the development of the Study for reviewing and evaluating the Department’s stormwater rates.

Key Stormwater Rate Study Results
The Study technical analysis was developed based on the historical and projected operating and maintenance (O&M) and capital costs necessary to provide stormwater services to the Department’s customers. The stormwater analysis resulted in the following findings, conclusions, and recommendations.
 A revenue requirement analysis was developed for the projected time period of FY 2025 through FY 2034 for the stormwater utility
 The Department’s projected year end FY 2025 and adopted FY 2026 stormwater utility budgets were used as the starting point of the Study
 Operation and maintenance (O&M) expenses are projected to increase at inflationary levels with no assumed changes to levels of service or anticipated extraordinary expenses  One Equivalent Residential Unit (ERU) is equal to 2,347 sq. ft. of impervious area as established by the Department
 A cost of service analysis was developed to review the existing rates and to proportionately distribute the revenue requirement to the total billed ERUs  The results of the cost of service analysis provided the unit costs on a per ERU basis (i.e., cost basis) which were used to establish the proposed stormwater rates  The Study has developed proposed rates for the FY 2027 – FY 2031 time period Revenue Requirement Analysis
Cost of Service Analysis
Rate Design Analysis
Compares the revenues to the expenses
to determine the overall revenue
adjustment required
Distributes the revenue requirement to
the customer classes of service in a
proportional manner
Considers both the revenue
requirement and cost of service
analyses to develop the proposed rates

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 The proposed stormwater revenue adjustments increase the monthly bill from the current rate of $2.10 to a proposed rate of $8.10 by FY 2031
Summary of the Stormwater Revenue Requirement Analysis
The Department’s stormwater utility revenue requirement analysis is the first analytical step in the comprehensive rate study process. The revenue requirement analysis determines the adequacy of the current stormwater rates to fund current and future costs related to both O&M and capital needs. From this comparison, a determination can be made as to the overall level of stormwater rate revenue adjustments needed to provide adequate and prudent funding for the stormwater utility.

For the Study, the revenue requirement was developed for the projected year end FY 2025 and budgeted FY 2026 expenses and a projected time period of FY 2027 – FY 2034. As a practical matter, a multi-year time frame is recommended to identify major expenses that may be on the horizon. By anticipating future financial requirements, the Department may begin planning for these changes sooner, thereby minimizing short-term rate impacts and overall long-term rates.

While a long-term time period (i.e., 10-years) was developed, the focus of the Study was on the next five-year rate setting period of FY 2027– FY 2031.

The revenue requirement analysis was developed using the “cash basis” approach. The cash basis approach is an industry standard approach and the typical approach used by municipal utilities to set their revenue requirement. Under this approach, the revenues of the utility must be sufficient to recover all cash needs, including O&M expenses, transfer payments, annual debt service payments, and capital projects funded through rates (rate funded capital). The primary financial inputs in the development of the revenue requirement were the Department’s budget and financial documents, historical billed customer data, and the Department’s stormwater capital improvement plan. Budgeted O&M expenses were projected using inflationary factors for the Department’s various expenses over the projected time period. These inflationary factors were based on historical Department specific increases in costs and planned changes based on City of Stockton planning and financial projection studies and analyses.

The proper and adequate funding of capital projects is important to help minimize rate increases over time. General financial guidelines state that, at a minimum, a utility should fund an amount equal to, or greater than, the annual depreciation expense through rate revenues. The annual depreciation expense reflects the current investment in plant facilities in service being depreciated or “losing” their useful life. This portion of plant investment needs to be replaced to maintain the existing level of infrastructure (and service levels). However, it must be kept in mind that simply funding an amount equal to the annual depreciation expense will not be sufficient to fund the replacement of an existing or depreciated facility. Therefore, consideration should be given to funding within rates an amount greater than the annual depreciation expense for renewal and replacement capital improvement needs.

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As a part of the Study, the Department made a concerted effort to increase the overall level of “pay-as-you-go” (rate) funding as part of the Department’s capital improvement plan to maintain and improve the stormwater system (e.g., renewal and replacement needs). Provided below in Table ES – 1 is a summary of the capital funding plan. This shows the annual level of capital projects identified by the Department through recent planning studies, the other funding sources (available reserves), and the amount of rate funded capital over the five-year rate setting period.

A more detailed discussion of the capital funding plan is included in Section 3.2.4 of this report.

Table ES – 1
Summary of the Stormwater Capital Funding Plan ($000)
FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031
Total Capital
Improvement Projects $1,300 $2,650 $6,625 $10,192 $12,740 $13,250 Less: Other Funding 1,300 1,700 0 167 0 0
Total Rate Funded
Capital $0 $950 $6,625 $10,025 $12,740 $13,250
As a point of reference, the Department’s annual depreciation expense is approximately $1.7 million (FY 2022-2023). The Study has placed the Department’s rate funding for capital improvements at $950,000 in FY 2027 and increases annually over the Study time period to prudently fund the identified capital improvement projects. In developing this funding plan, HDR and the Department have attempted to minimize rate impacts while funding the necessary capital improvement plan projects of the stormwater system. HDR has worked with the Department’s financial staff to develop the proposed capital funding plan. It is important to note that HDR is not acting in a municipal advisory role to the Department in the development of the capital funding plan.

Given a projection of O&M and capital expenses, a summary of the stormwater revenue requirement analysis was developed. Provided below in Table ES – 2 is a summary of the revenue requirement analysis for the Department’s stormwater utility.

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Table ES – 2
Summary of the Stormwater Revenue Requirement Analysis ($000) FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031
Revenues
Rate Revenues $6,097 $6,128 $6,158 $6,189 $6,220 $6,251 Other Revenues 948 895 920 935 976 1,027
Total Revenues $7,045 $7,023 $7,078 $7,125 $7,196 $7,278 Expenses
O&M Expenses $9,197 $10,149 $10,516 $10,897 $11,291 $11,700 Rate Funded Capital 0 950 6,625 10,025 12,740 13,250
Net Annual Debt Service 0 0 0 0 0 0
To / (From) Reserves (2,152) 1,022 195 206 202 198
Total Expenses $7,045 $12,121 $17,335 $21,129 $24,233 $25,148 Bal./(Def.) of Funds $0 ($5,098) ($10,257) ($14,004) ($17,037) ($17,870)

As can be seen, the revenue requirement has summed the O&M expenses, rate funded capital, net debt service, and reserve funding. The total revenue requirement is then compared to the total sources of funds, which include the rate revenues, at present rate levels, and other miscellaneous revenues. Note revenues assume annual customer growth of 0.5% which increases revenues when calculated at present rates. From this comparison, a balance or deficiency of funds in each year can be determined. This balance or deficiency of funds is then compared to the current level of rate revenues to determine the level of adjustment needed to meet the revenue requirement. It is important to note that the “Bal. / (Def.) of Funds” row is cumulative.

That is, any adjustments in the initial years will reduce the deficiency in later years. Over the rate setting time period, the total deficiency of rate revenue is approximately $17.9 million by FY 2031 absent proposed revenue (rate) increases.

Based on the revenue requirement analysis developed herein, HDR has concluded that the Department will need to adjust the level ofstormwater revenues received over the next five fiscal years (FY 2027 – FY 2031). HDR has reached this conclusion for the following reasons:
 Adjustments are necessary to fund the Department’s annual system renewal and replacement and system improvement needs
 Adjustments are necessary to maintain prudent funding of annual inflationary increases to O&M expenses in order to maintain stormwater services for the Department’s customers
 The proposed adjustments maintain the Department’sstrong financial health and provide long-term, sustainable funding levels for the Department to maintain the stormwater system
In reaching this conclusion, HDR would recommend that the Department adopt the proposed revenue adjustments for FY 2027 through FY 2031 to provide sufficient funding for the O&M and capital improvement needs over the Study time period. A more detailed discussion of the development of the revenue requirement is provided in Section 3 of this report.

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Summary of the Stormwater Cost of Service Analysis
A cost of service analysis determines the proportional distribution of the revenue requirement to the total billed ERUs to establish the proposed stormwater rates. The objective of the cost of service analysis is different from determining the revenue requirement. Whereas the revenue requirement analysis determines the utility’s overall revenue needs, the cost of service analysis determines the proportional distribution of the revenue requirement to establish proposed rates for the proposed time period. In this case, the revenue requirement for FY 2027, the first year of the proposed rate transition plan, was used for establishing the cost of service analysis.

The cost of service analysis is based on generally accepted industry standard approaches. The Department charges customers on an equivalent unit basis and each customer type, residential and non-residential, has a specific number of equivalent residential units (ERUs), which is defined by the Department as 2,347 sq. ft. of impervious surface area. Residential customers are charged one ERU per residence, while non-residential customer charges are based on the density of development factor. The density development factor is a percentage applied to the gross parcel area to determine a customer’s number of ERUs. The density factor for a Commercial customer is 90%, Institutional is 62% and Industrial is 79%. Given this, the cost of service analysis is simplified in that the total costs are divided through by the number of total system ERUs to determine the rate per ERU. Table ES – 3 provides the summary of the cost per ERU as calculated in the Study.

Table ES – 3
Summary of the Stormwater Cost of Service Analysis
Total
Costs[1]
Total
ERUs [2]
Cost per
ERU ($/month)]
$11,226,171 243,168 $3.85
[1] Based on the FY 2027 total revenue requirement less miscellaneous revenues, which is the costs to be recovered through rates
[2] Reflects the number of billed ERUs as provided by the Department for FY 2027 The results of the cost of service analysis, on a per ERU basis, provide the starting point for the proposed rates. Given the requirements of California Constitution Article XIII D, Section 6 (commonly referred to as Proposition 218), the results of the stormwater cost of service analysis are used to establish the proposed rates. A detailed discussion of the development of the cost of service analysis is provided in Section 4 of the report.

Summary of the Stormwater Rate Design
The final step of the comprehensive rate study process is the design of the proposed stormwater rates to collect the desired levels of revenue, based on the results of the revenue requirement

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and cost of service analyses. The revenue requirement analysis provided a set of recommendations related to annual revenue adjustments, while the cost of service results provide the basis for the development of proportional rates on a per ERU basis for the Department’s customers.

The Department currently has a monthly flat rate that applies to all customers on a per ERU basis.

For the City, the basis for one ERU for the residential class of service is 2,347 sq. ft of impervious surface area. Residential customers include Single-Family, Condominiums, Multi-Family and Apartments and are all charged one ERU. A non-residential customer is classified as Commercial, Institutional, or Industrial. Each of the non-residential customers’ monthly bills are calculated using the same method, but each class is adjusted by the density of development factor depending on the customer class. As stated previously, the density of development factor is a percentage applied to the gross parcel area used to determine a customer’s number of ERUs to reflect the customer type and impact to the stormwater system. The density of development factor for a Commercial customer is 90%, Institutional is 62%, and Industrial is 79%. These factors are used to determine the Commercial, Institutional, or Industrial customer ERUs, which are then multiplied by the rate per ERU for the total monthly non-residential charge for a given parcel.

Given the results of the revenue requirement, which provided the total revenue needs for the stormwater utility, the cost of service analysis provided the basis for the charge per ERU. Given this, the proposed stormwater rates that have been developed are cost-based and proportional for the Department’s customers. Note the structure of the proposed stormwater rate is maintained and only the level of the rate has been adjusted to meet the revenue requirement of the Department’s stormwater utility. Furthermore, the rate for FY 2027 is based on the unit costs developed in the cost of service. The proposed stormwater rate, thereafter (FY 2028 – FY 2031), is increased by the annual revenue requirement adjustment.

Provided in Table ES – 4 is a summary of the current and proposed stormwater rates for the Department’s stormwater utility.

Table ES – 4
Summary of the Present and Proposed Stormwater Rates
Present
Rates FY 2027 FY 2028 FY 2029 FY 2030 FY 2031
$/ERU
Rate Per Equivalent Unit $2.10 $3.85 $5.60 $6.85 $7.85 $8.10 As shown above, the stormwater rate is proposed to increase over the five-year period to $8.10, or an average of $1.20 per year per month over the five-year period. The development of the stormwater rate design is outlined in detail in Section 5 of the report.

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Summary of the Stormwater Rate Study
The Study has been developed to reflect industry standard approaches and the Department’s specific system and customer characteristics. The proposed rates are based on the data and assumptions provided during the development of the Study. Should those assumptions change, the proposed rates should be reviewed to determine if changes are necessary.

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1 Introduction and Overview

1.1 Introduction
HDR was retained by the City of Stockton Municipal Utilities Department (Department) to conduct a comprehensive stormwater rate study (Study). The objective of the Study was to review the Department’s operating and capital costs to develop a financial plan for the stormwater utility on a standalone basis as well as cost-based rates that comply with the requirements of Proposition 218. The Study reviewed the adequacy of the existing stormwater rates and provides the framework, cost basis, and proportionality for the proposed stormwater rates.

The Department owns and operates the stormwater system in Stockton, California. The costs, both operating and capital, associated with providing stormwater services to customers have been developed based on financial and operating data provided by the Department and were included within the development of the Study.

Overview of the Stormwater Utility
The Department’s stormwater system protects people, property, and waterways by reducing flood risk, and preventing pollutants from flowing into local rivers, creeks, sloughs, and the Delta.

The Department’s stormwater utility is an enterprise fund and as such is funded primarily through charges (i.e., rates) to the Department’s approximately 243,000 customers benefiting from stormwater services. The stormwater rate is intended to fund the operation, maintenance, and improvements to over 600 miles of pipelines, over 23,000 catch basins (storm drains), 77 pump stations and 19 detention basins. As noted, the funding is provided primarily through the monthly stormwater rate which was implemented in 1992 and has not been adjusted since that time.

Since the implementation of the stormwater rate, the City has grown, as have the Department’s responsibilities, maintenance of aging infrastructure to provide service, as well as changes in the National Pollutant Discharge Elimination System requirements the Department must meet.

As a result of inflationary increases in operating expenses, stricter state and federal regulations, and aging infrastructure, the current stormwater rate, and revenue it generates, is no longer sufficient to support the stormwater utility. Absent additional funding, the Department will not be able to maintain the existing infrastructure or make necessary improvements to aging and failing infrastructure. This will result in the deferral of infrastructure improvements and maintenance, increased risk of flooding and pollution in local waterways. The purpose of this study is to develop the projection of rate revenue needs and the projection of cost-based and proportional rates for the Department’s stormwater customers.

1.2 Goals and Objectives
The Department had a number of key objectives in developing the stormwater rate study. These key objectives provided a framework for policy decisions in the analyses that followed. The key objectives were:

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 Develop the Study in a manner that is consistent with generally accepted industry standard principles and methodologies
 In financial planning and establishing the Department’s rates, review and utilize best industry practices, while recognizing and acknowledging the specific and unique characteristics of the Department’s stormwater system and customers  Review the Department’s rates utilizing generally accepted rate making (cost of service) methodologies to determine the adequacy of the utility rates  Meet the Department’s financial planning criteria and goals, such as adequate funding of capital infrastructure replacement and maintenance of adequate and prudent reserve levels
 Develop a financial plan which supports the stormwater utility’s funding requirements, while attempting to minimize overall impacts to rates
 Provide rates designed to meet the intent and requirements of California Constitution Article XIII D, Section 6 (commonly referred to as Proposition 218)

1.3 Overview of the Rate Study Process
Rates must be set at a level where a utility’s annual O&M and capital expenses are met with the annual revenues received from customers. This is an important point, as failure to achieve this objective may lead to insufficient funds to maintain system integrity. To evaluate the adequacy of the existing stormwater rates, a comprehensive rate study is performed. A comprehensive rate study consists of three interrelated analyses. Figure 1 – 1 provides an overview of these analyses.

Figure 1 – 1
Overview of the Comprehensive Stormwater Rate Analyses
The above framework for reviewing and evaluating rates was utilized for the development of the Study. As noted, the stormwater utility was reviewed on a stand-alone basis – that is, no funding from other Department or City funds was assumed – to determine the level of adequate funding needs from the utility’s rate revenues.

Revenue Requirement Analysis
Cost of Service Analysis
Rate Design Analysis
Compares the revenues to the expenses
to determine the overall rate adjustment
required
Distributes the revenue requirement to
the identified customer classes of service
in a proportional manner
Considers both the revenue
requirement and cost of service
analyses to develop the proposed rates

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1.4 Organization of the Study
This report is organized in a sequential manner that first provides an overview of utility rate setting principles, followed by sections that detail the specific steps used to review and develop the Department’s proposed stormwater rates. The following sections comprise the Department’s stormwater rate study report:

Section 2 – Overview of Rate Setting Principles
Section 3 – Stormwater Revenue Requirement Analysis
Section 4 – Stormwater Cost of Service Analysis
Section 5 – Stormwater Rate Design Analysis
Technical Appendices are attached at the end of this report, which detail the technical analyses that were undertaken in the preparation of the Study.

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2 Overview of Rate Setting Principles

2.1 Introduction
This section of the report provides background information about the stormwater rate setting process, including descriptions of generally accepted principles, types of utilities and methods of determining the revenue requirement, cost of service, and rate design analyses. This information is useful for gaining a better understanding of the details presented in Sections 3 through 5 of this report.

2.2 Generally Accepted Rate Setting Principles
As a practical matter, all utilities should consider setting their rates around some generally accepted or global principles and guidelines. Utility rates must be cost-based, proportional, and set at a level that meets the utility’s full revenue requirement. As a result of setting proportional, cost-based rates, and in addition to the prior noted goals, utility rates should also be:
 Easy to understand and administer
 Designed to conform to “generally accepted” rate setting techniques  Established at a level that is stable from year-to-year from a customer’s perspective

2.3 Determining the Revenue Requirement
Most public utilities use the cash basis1 approach for establishing their revenue requirement and setting rates. This approach conforms to most public utility budgetary requirements and the calculation is straightforward and easy to understand. A public utility totals its cash expenditures for a period of time to determine its required revenues for that time period. The revenue requirement for a public utility is usually comprised of the following costs or expenses:

Total Operating Expenses: This includes a utility’s operation and maintenance (O&M) expenses, plus applicable taxes or transfer payments. O&M expenses include the materials, electricity, labor, supplies, etc., needed to keep the utility functioning.

Total Capital Expenses: Capital expenses are calculated by adding debt service payments (principal and interest) to capital replacements financed with rate revenues. In lieu of including capital replacements financed with rate revenues, a utility can include annual depreciation expense to stabilize the annual revenue requirement. 1 “Cash basis” as used in the context of rate setting is not the same as the terminology used for accounting purposes and the recognition of revenues and expenses. As used for rate setting, “cash basis” refers to the specific cost components to be included within the revenue requirement analysis.

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Under the cash basis approach, the sum of the total O&M expenses plus the total capital expenses equals the utility’s total revenue requirement during any selected period of time (historical or projected).

Note that the two portions of the capital expense component (debt service and rate funded capital) are necessary under the cash basis approach as utilities generally cannot finance all of their capital facilities with long-term debt. At the same time, it is often difficult to pay for capital expenditures on a “pay-as-you-go” basis given that some capital projects may have significant rate impacts on a utility, even when financed with long-term debt. Many utilities have found that a combination of pay-as-you-go funding and long-term financing will often lead to the minimization of rate increases over time.

While public utilities typically use the cash basis approach to establish their revenue requirement, an exception can occur if a public utility provides service to a large wholesale or contract customer. In this situation, a public utility may use the utility basis approach (see Table 2 – 1) regarding earning a reasonable return on its investment.

Table 2 – 1
Cash Basis versus Utility Basis Comparison
Cash Basis Utility Basis (Accrual)
+ O&M Expenses + O&M Expenses
+ Taxes / Transfer Payments + Taxes/Transfer Payments
+ Capital Improv. Funded From Rates
(≥ Depreciation Expense) + Depreciation Expense
+ Debt Service (Principal + Interest) + Return on Investment = Total Revenue Requirement = Total Revenue Requirement

2.4 Analyzing Cost of Service
After the total revenue requirement is determined, it is proportionately distributed to the users of the service (i.e., customer classes/rate schedules). The distribution of costs, as analyzed through a cost of service analysis, reflects the cost relationships for providing stormwater services. A cost of service analysis results in the following three analytical steps:

1. Costs are functionalized or grouped into the different cost categories related to providing service. For a stormwater utility, this typically includes collection and pumping. This step is largely accomplished by the utility’s accounting system (chart of accounts).

2. The functionalized costs are then allocated to specific cost components. Allocation refers to the arrangement of the functionalized data into the appropriate cost component(s).

For example, stormwater costs are typically allocated as volume and customer-related costs.

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3. Once the costs are allocated to the appropriate cost component(s), each cost component is then proportionally distributed to each customer class of service (e.g., residential, commercial, industrial). The distribution is based on each customer class’s relative or proportional contribution to the cost component. For example, customer-related costs are distributed to each class of service based on the total number of customers in each class of service. Once costs are distributed, the total amount of revenues needed from each customer class of service, to achieve cost-based rates, can be determined.

Note that the cost of service approach can vary from utility to utility. Typically, the approach will be based on the current, or proposed, rate structure. For example, an equivalent billing unit approach infers the proportionality between customers based on the definition of the equivalent billing unit and the cost of service analysis can be simplified by dividing the total costs by the number of equivalent billing units the system serves. As a result, each cost of service analysis is specifically developed based on the unique characteristics, billing approach, customer base, and rate structure of the specific utility.

2.5 Designing Utility Rates
Rates that meet the utility’s objectives are designed based on the results of the revenue requirement and cost of service analyses. This approach results in rates that are strictly costbased. While rate-setting can consider factors such as ability to pay, continuity of past rate philosophy, economic development, ease of administration, and customer understanding, such factors are incidental to cost-based, proportional rates. The proposed rates must take into consideration each customer class’s proportionate share of costs distributed through the cost of service analysis to meet the requirements of the California Constitution.

2.6 Economic Theory and Rate Setting
One of the major justifications for a comprehensive rate study is founded in economic theory. Economic theory suggests that the price of a commodity must roughly equal its cost if parity among customers is to be maintained. This statement’s implications on utility rate designs are significant. When costing and pricing techniques are refined, consumers have a more accurate
understanding of the cost to provide stormwater service. “Economic theory suggests
that the price of a
commodity must roughly
equal its cost if parity
among customers is to be
maintained.”

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3 Stormwater Revenue Requirement

3.1 Introduction
This section of the report details the development of the revenue requirement analysis for the Department’s Study. The revenue requirement analysis is the first analytical step in the comprehensive rate study process. From this analysis, a determination can be made as to the overall level of rate revenue adjustments needed to provide adequate and prudent funding for both O&M and capital needs of the utility. The primary objective of the Study was to develop cost-based and proportional rates that comply with the California Constitution.

3.2 Determining the Revenue Requirement
In developing the Department’s stormwater revenue requirement for the Study period, the objective is that the utility must financially “stand on its own” and be properly funded. That is, no rate revenues are transferred from other Department or City funds to support the stormwater utility. As a result, the revenue requirement analysis assumes the full and proper funding needed to operate and maintain the stormwater system on a financially sound and prudent basis over the Study time period.

3.2.1 Establishing a Time Frame and Approach
To begin calculating the revenue requirement for the Department’s stormwater utility, a time frame was established for the analysis (i.e., the Study period). The Study period was defined as the projected year end FY 2025 and adopted FY 2026 budgets plus an 8-year review period (FY 2027 – FY 2034). This time period was determined to be an appropriate amount of time for the revenue requirement analysis to evaluate the data and information and establish proposed rates for the next five fiscal years. The revenue requirement was projected over a multi-year period based on assumed escalation factors as well as historical figures and anticipated projections.

Reviewing a multi-year time period is recommended to identify major expenses that may be on the horizon. By anticipating future financial requirements, the Department can begin planning for these changes sooner, thereby minimizing short-term rate impacts and overall long-term rates.

The second step in determining the revenue requirement was to determine the basis for accumulating costs. As discussed in Section 2 of the report, the revenue requirement analysis was developed using the cash basis approach. The cash basis approach is the typical methodology utilized by municipal utilities to set their revenue requirement. This is also the methodology that the Department has historically used to establish its stormwater revenue requirement. Table 3 – 1 provides a summary of the cash basis approach and the cost components used to develop the Department’s stormwater revenue requirement.

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Table 3 – 1
Overview of the Department’s Cash Basis Revenue Requirement + Stormwater Operation and Maintenance Expenses
+ Transfers
+ Rate Funded Capital
+ Debt Service (Principal + Interest) – Existing and Future ± Reserve Funding________________________________
= Total Stormwater Revenue Requirement
− Miscellaneous Revenues__________________________
= Net Revenue Requirement (Balance Required from Rates) Given a time period around which to develop the revenue requirement and a method to accumulate the costs, the focus shifts to the development and projection of the revenues and expenses of the Department’s stormwater utility.

The primary financial inputs in the development of the revenue requirement were the Department’s projected year end FY 2025 and adopted FY 2026 budget documents, recent customer billing data, historical financial reports, and the Department’s capital improvement plan (CIP). Presented below is a detailed discussion of the steps and key assumptions contained in the development of the projections of the Department’s stormwater revenue requirement analysis.

3.2.2 Projecting Rate and Other Miscellaneous Revenues
The first step in developing a projection of the stormwater rate revenues, at present rate levels, was to determine the projected billing units for each customer group. The billing units for each customer group were based on recent customer billing data to determine the current customer billing characteristics. These billing units were then multiplied by the applicable current stormwater rates. This method of
independently calculating revenues
links the projected revenues used
within the analysis to the projected
billing units. It also helps to confirm
that the billing units used within the
Study are reasonable for purposes of
projecting future revenues,
distributing costs and ultimately,
establishing the proposed rates. The
rate revenues are also shown in
Exhibit 3 under “Rate Revenues” for
FY 2025.

Based on the Department’s adopted stormwater rate schedule, the majority of the rate revenues are derived from non-residential customers. In total, and at currently adopted rate levels, the Residential $2,509
Non-Residential
$3,558
FY 2025 Rate Revenues ($000s)

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Department’s stormwater system is projected to receive approximately $6.1 million in rate revenue in FY 2026. Based on current City planning documents, the Study has assumed a conservative level of customer account growth of 0.5% / year. By FY 2034, the rate revenues - assuming no rate adjustments - are projected to be approximately $6.3 million. The detailed calculation of the revenues at present rates is included in Exhibit 5 of the Technical Appendix.

In addition to rate revenues, the Department also receives other miscellaneous revenues. These are revenues related to interest income, storm drain administration fees, agency reimbursements, etc. In total, the Department is projected to average approximately $991,000 annually in miscellaneous revenues over the projected time period.

On a combined basis, taking into account rate revenues and miscellaneous revenues, the Department’s stormwater utility has total projected revenues of approximately $7.0 million in FY 2026, increasing to approximately $7.4 million by FY 2034 as a result of the estimated growth as noted above. The assumptions used for projecting growth and increases in miscellaneous revenues can be found in Exhibit 2 of the Technical Appendix. Furthermore, the projection of rate and miscellaneous revenues can be found in Exhibit 3 of the Technical Appendix.

3.2.3 Projecting Operation and Maintenance Expenses
Operation and maintenance (O&M) expenses are incurred by the Department to maintain the stormwater system at a consistent service level. The starting point of the projection of O&M expenses was the Department’s projected year end FY 2025 and adopted FY 2026 budgets.

Budgeted O&M expenses were projected over the Study time period based on historical inflationary factors. These factors took into consideration the Department’s historical and projected cost increases. The factors ranged from 2.8% to 25.0% annually for the various types of expenses (e.g., labor, benefits, materials & supplies). Several specific costs were adjusted based on known increases and were provided by the Department and City staff. These were items related to CalPERS and other benefit related costs. In total, O&M expenses were projected to increase at an average annual inflation rate of approximately 6.4% over the Study time period.

As a note, this is consistent with annual changes in stormwater O&M costs over the past several years. The total operation and maintenance expenses for the stormwater utility are budgeted to be approximately $9.2 million in FY 2026. Over the five-year rate setting period, total O&M expenses are projected to increase to approximately $11.7 million by FY 2031. A summary of the O&M expenses is shown as a line item in Table 3 – 3 and Exhibit 3 of the Technical Appendix.

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3.2.4 Projecting Capital Funding Needs
A key component in the development of the stormwater revenue requirement is to properly and adequately fund capital improvement needs in the near and long term. One of the major issues facing utilities across the U.S. is the amount of deferred capital projects and funding pressure from regulatory-related improvements. The proper and adequate funding of capital projects is an important issue for all stormwater utilities and is not just a local issue or concern of the Department. To accomplish this, the Department recently completed a master plan for the stormwater system, which resulted in the identification of a capital improvement plan (CIP) to address both the short and long-term capital needs of the stormwater utility. The Department’s CIP outlines the infrastructure improvements necessary to provide stormwaterservice to existing and future stormwater customers.

In general, there are three types of capital projects that the Department may need to fund. These include the following types:

Renewal and replacement projects
Growth/capacity expansion projects
Regulatory-related projects
A renewal and replacement project is essentially a project to maintain the existing system that is in place today. Existing facilities become worn out, obsolete, etc. The Department should continuously be making investments to maintain the integrity of the facilities with renewal and replacement projects to ensure continued, uninterrupted stormwater service. Growth or capacity expansion projects are related to providing service to new customers. This may be through expansion of the existing system or construction of new facilities to provide service to customers within the Department’s service area. Additionally, certain projects may be a function of a regulatory requirement in which the Federal or State government mandates the need for an improvement to the system to meet regulatory standards. Understanding these different types of capital projects is important because it may help to explain why costs are increasing and as a result, the cost drivers for any needed rate adjustment.

The way in which projects are funded may vary by the type of capital project. For example, renewal and replacement projects should be funded through annual rates on a “pay-as-you-go basis”. In contrast to this, growth or capacity expansion projects may be funded through the collection of connection fees (i.e., growth-related charges) in which new development pays a proportional share of the cost of improvements required as a result of their connection (impact).

Finally, regulatory projects may be funded by a variety of different means, which may include one or more sources such as rates, long-term debt, grants, etc.

While the above discussion appears to neatly divide capital projects into three clearly defined categories, the reality of working with specific capital projects may be more complex. For example, a pump may be replaced, but while being replaced, it is upsized to accommodate the need for greater capacity. There are many projects that share these “joint” characteristics. At the same time, projects may not be “replacement” related, but rather “improvement” related.

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The Department recently completed a master planning process for the stormwater system, which identified priority projects. Important to note is that the Study includes only Priority 1 projects during the five-year rate setting period. Note that the master plan identified additional priority projects that the Department will need to complete outside the Study review period. Provided below in Table 3 – 2 is a summary of the stormwater capital funding analysis for the rate setting period.

Table 3 – 2
Summary of the Stormwater Capital Improvements ($000)
FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031
Capital Improvement Projects $1,300 $2,480 $2,328 $1,035 $736 $299 Master Plan Projects 0 0 4,206 9,156 9,431 12,552
Future Unidentified Capital Improv. 0 0 0 0 0 0
Transfer to Capital Reserve 0 170 92 0 2,573 400
Total Capital Improvement Projects $1,300 $2,650 $6,625 $10,192 $12,740 $13,250 Less: Other Funding Sources
Operating Fund - Stormwater $0 $0 $0 $0 $0 $0
Capital Fund - Stormwater 0 0 0 167 0 0
State Grants 1,300 1,700 0 0 0 0
New Public Works Trust Fund Loans 0 0 0 0 0 0
New Revenue Bonds 0 0 0 0 0 0
Total Other Funding Sources $1,300 $1,700 $0 $167 $0 $0 Rate Funded Capital $0 $950 $6,625 $10,025 $12,740 $13,250 As shown in Table 3 – 2, the funding of capital is provided through annual rate levels (“Rate Funded Capital”), state grants, and available reserves. In this way, no long-term debt is issued to fund the CIP during the Study rate setting period and the CIP is funded on a pay-as-you-go approach.

While the total amount of a project may vary from year to year, the stormwater capital funding plan has attempted to provide a consistent funding source for the replacement of deteriorating system assets. In this case, the stormwater utility’s rates will fund an amount of $950,000 in FY 2027. Given the identified capital needs for the stormwater system, the Department is committed to making an effort to increase this funding component to maintain the stormwater infrastructure and replacement needs. As such, the rate funded capital is projected to increase annually to $13.3 million by FY 2031. Note in some years rate funded capital exceeds total capital improvements. In those years funds are transferred to reserves to fund projects in subsequent years. To establish a prudent level of annual replacement funding through rates, HDR worked with Department staff to develop a funding plan for the CIP. In developing this financial plan, HDR and the Department have attempted to minimize rate impacts while funding the planned capital projects of the Department.

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3.2.5 Projection of Debt Service
The Department currently has no outstanding long-term debt issuances related to the stormwater utility. As noted previously, no new additional debt has been assumed during the Study rate setting period.

It is important to note that HDR is not advising the Department on the terms of any long-term debt issuances but rather identifying the overall funding needs. As noted previously, HDR is not acting in a municipal advisor role to the Department for the issuance of any long-term borrowing.

3.2.6 Reserve Funding
The final component of the revenue requirement analysis is reserve funding. This can be described as additional transfers of revenue to reserve funds to maintain prudent ending fund balances or for future funding of specific or unanticipated projects. Additionally, the balance of funds after the expenses are paid is transferred to the operating fund to maintain minimum fund balances. The Department has a reserve policy in place to maintain six months of operating expenses in reserves, which is equal to approximately $4.5 million for FY 2026. The Study was developed to meet this target minimum over the review period (FY 2027 – FY 2031). During the Study time period, reserve levels are used to smooth out the rate adjustments as needed in some years and transferred in others if available to continue to maintain prudent ending reserve balances.

3.2.7 Summary of the Stormwater Revenue Requirement
Given the above projections of revenues and expenses, a summary of the stormwater revenue requirement analysis can be developed. In developing the revenue requirement analysis, consideration was given to the financial planning considerations of the Department. In particular, emphasis was placed on attempting to minimize rates yet still having adequate funds to support the operational activities and funding of capital projects throughout the Study time period.

Presented below in Table 3 – 3 is a summary of the Department’s projected stormwater revenue requirement. Detailed exhibits of this analysis can be found in the Technical Appendix (Exhibits 1 – 5).

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Table 3 – 3
Summary of the Stormwater Revenue Requirement Analysis ($000) FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031
Revenues
Rate Revenues $6,097 $6,128 $6,158 $6,189 $6,220 $6,251 Other Revenues 948 895 920 935 976 1,027
Total Revenues $7,045 $7,023 $7,078 $7,125 $7,196 $7,278 Expenses
O&M Expenses $9,197 $10,149 $10,516 $10,897 $11,291 $11,700 Rate Funded Capital 0 950 6,625 10,025 12,740 13,250
Net Annual Debt Service 0 0 0 0 0 0
To / (From) Reserves (2,152) 1,022 195 206 202 198
Total Expenses $7,045 $12,121 $17,335 $21,129 $24,233 $25,148 Bal./(Def.) of Funds $0 ($5,098) ($10,257) ($14,004) ($17,037) ($17,870) As can be seen, the revenue requirement has summed the O&M, annual rate funded capital, net annual debt service, and reserve funding components. The total revenue requirement is then compared to the total revenues, which include both rate revenues – at current rate levels – and other revenues. Note, revenues are increasing based on the assumed growth in customers which increases revenues when calculated at present rate levels.

From this comparison, a balance or deficiency of funds in each year can be determined. This balance or deficiency of funds is then compared to the projected revenues from current rates to determine the level of rate adjustment needed to meet the revenue requirement. It is important to note that the “Bal. / (Def.) of Funds” row is cumulative. That is, adjustments in the initial years will reduce the deficiency in later years.

The revenue requirement in Table 3 – 3 has been developed to meet the financial planning objectives of the Department. More specifically, and as an enterprise fund, the Department needs to adequately and prudently fund its stormwater operating and capital needs, for this study only Priority 1 projects were included. The proposed revenue adjustments are a function of assumed inflation over the time period, coupled with the need to increase capital improvement funding from rates (renewal and replacement funding), as well as maintaining prudent financial metrics (e.g., minimum reserve levels).

Over the five-year rate setting period, annual deficiencies range from $5.1 million to $17.9 million. Over the Study time period, the total deficiency in revenues is approximately $64.3 million absent rate revenue increases. The overall revenue adjustment reflects the revenues needed for the system as a whole. The more detailed revenue requirement analysis is included in Exhibit 3 of the Technical Appendix.

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3.3 Consultant’s Conclusions
Based on the revenue requirement analysis developed herein, HDR recommends that the Department increase stormwater revenues over the next five-year period (FY 2027 – FY 2031).

HDR has reached this conclusion for the following reasons:

Revenue adjustments are necessary to fund the Department’s capital improvement needs, which have been outlined by a system review and planning process Revenue adjustments are necessary to reflect current and ongoing annual inflationary costs related to the O&M expenses of the stormwater utility The proposed revenue adjustments provide an approach for the Department to provide long-term, sustainable funding levels for the stormwater utility In reaching this conclusion, HDR would recommend that the Department adopt the proposed revenue adjustments in order to provide sufficient funding for annual O&M and capital improvement projects over the next five-year period.

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4 Stormwater Cost of Service

4.1 Introduction
In the previous section, the revenue requirement analysis focused on the total sources and applications of the revenues required to adequately fund the Department’s stormwater utility O&M and capital expenses. This section will provide an overview of the cost of service analysis developed for the Department’s stormwater utility.

The stormwater cost of service analysis is concerned with the proportional distribution of the total revenue requirement on a per equivalent residential unit (ERU). This provided the cost basis and proportionality for the rate on a per ERU basis. The previously developed revenue requirement was utilized in the development of the cost of service analysis. It should be noted that given the use of an ERU to apply the stormwater rates, the cost of service analysis is simplified.

4.1.1 Objectives of a Cost of Service Analysis
The primary objective of a cost of service analysis is the proportional manner in which to collect the revenue requirement from the Department’s stormwater customers on an ERU basis. As noted, the cost of service analysis is simplified for the stormwater utility given the use of an established ERU that is applied to all customers based on the impervious square footage of each customer in relation to the square footage identified by the Department as 2,347 sq. ft. per ERU.

This results in the development of proposed stormwater rates that properly reflect the costs incurred by the Department and impacts customers place on the stormwater system.

4.2 General Cost of Service Procedures
In order to determine the proportional cost to serve each customer on the Department’s stormwater system, a cost of service analysis is conducted. For the Department’s cost of service analysis, the process was abbreviated as the total costs are shared by customers based on the total number of ERUs. The stormwater cost of service analysis consisted of dividing the total revenue requirement by the total number of billed ERUs given the establishment of an ERU by the Department.

4.3 Summary of the Stormwater Cost of Service Analysis
In summary, the cost of service analysis began by taking the FY 2027 revenue requirement and total billed ERUs. Then, the unit cost per ERU was calculated by dividing the total revenue requirement by the total billed ERUs. Provided in Table 4 – 1 is a summary of the distribution of the revenue requirement to the equivalent residential units.

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Table 4 – 1
Summary of the FY 2027 Stormwater Cost of Service Analysis FY 2027
Current Rate
Revenues
FY 2027
Revenue
Requirement
$
Difference
All Customers $6,127,822 $11,226,171 $5,098,348
Equivalent Residential Units 243,168 243,168
$/ERU/Month $2.10 $3.85 $1.75
The results of the cost of service analysis indicate the need to increase the rate per ERU in FY 2027 to reflect the costs of providing stormwater service on a per ERU basis. The development of the stormwater cost per ERU is provided in Exhibits 6 through 13 of the Stormwater Technical Appendix.

4.4 Consultant’s Conclusions and Recommendations
The results of the cost of service analysis reflect the results of the revenue requirement and indicate the need for an increase in the stormwater rate per ERU. Given this, HDR recommends the Department adjust the stormwater rate to reflect the results of the cost of service analysis on a per ERU basis.

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5 Stormwater Rate Design Analysis

5.1 Introduction
The final step of the Department’s comprehensive stormwater rate study is the design of rates to collect the appropriate level of revenues based on the results of the revenue requirement and cost of service analyses. In reviewing the Department’s rates, consideration is given to the level of the rates and the structure of the rates as developed in the prior two analyses.

5.2 Rate Design Criteria and Considerations
Rates must be set in accordance with Proposition 218, and in a manner that proportionally allocates the utility’s cost of service to each parcel through their respective rates. A utility may consider additional criteria, provided they do not result in rates that are not based on the proportional cost of service. Some of these rate design criteria are listed below:

Rates which are easy to understand from the customer’s perspective Rates which are easy for the utility to administer
Consideration of the customer’s ability to pay
Continuity, over time, of the rate making philosophy
Policy considerations (encourage efficient use, economic development, etc.) Provide revenue stability from month to month and year to year Promote efficient allocation of the resource
Non-discriminatory (cost-based)
Compliant with State law
The Department may consider various cost-based rate structures that have incidental benefits of sending proper price signals as to what their usage or volumetric contributions are costing. This goal may be approached through rate level and structure, provided the resulting rates reflect the proportional cost of service. When developing the proposed rate designs, all the above-listed criteria can be taken into consideration. However, it should be noted that it is difficult, if not impossible, to design a rate that meets all the goals and objectives listed above. For example, designing a rate that is cost-based may not reflect the customer’s ability to pay. In designing rates, there are always trade-offs between these goals and objectives.

5.3 Development of Cost-Based Stormwater Rates
Calculating cost-based and proportional rates is of paramount importance in developing the proposed stormwater rates. While always a key consideration in developing rates, meeting the legal requirements and documenting the steps taken to meet said requirements has been in the forefront with the recent legal challenges in the State of California on utility rates. Given this, the Department’s proposed stormwater rates have been developed to meet the legal requirements of California Constitution Article XIII D, Section 6 (Article XIII D). A key component of Article XIII D is the development of rates which reflect the cost of providing service and are proportionately distributed between the customer classes of service and the customers within each class. HDR would point out that there is no single methodology for equitably assigning costs to the customer

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classes of service. Article XIII D is not prescriptive and does not provide a specific methodology for establishing rates. Given that, HDR developed the Department’s proposed stormwater rates based on generally accepted rate setting methodologies to meet the requirements of Article XIII D.

HDR is of the opinion that the proposed rates meet the legal requirements of Article XIII D. HDR reaches this conclusion based upon the following:

The revenue derived from stormwater rates does not exceed the funds required to provide the property related service (i.e., stormwater service). The proposed rates are designed to collect the overall revenue requirement of the Department’s stormwater system.

The revenues derived from stormwater rates shall not be used for any purpose other than that for which the fee or charge is imposed. The revenues derived from the Department’s stormwater rates are used exclusively to operate, maintain and fund the Department’s stormwater system.

The amount of a fee or charge imposed upon a parcel or person as an incident of property ownership shall not exceed the proportional costs of the service attributable to the parcel. Section 4 of the Study focused exclusively on the issue of proportional assignment of costs on an equivalent unit basis. The proposed rates have appropriately distributed costs on a per ERU basis to reflect the costs of providing stormwater services (i.e., the benefits they receive from and burdens they place on the system) based on the square footage of impervious area of a given parcel. Utilizing ERUs establishes the proportionality expected under Proposition 218 by developing an equivalent unit that is applied to all customers, which reflects the manner in which these costs are incurred by the Department and the impacts stormwater customers place on the system.

5.4 Overview of the Present and Proposed Stormwater
Rates
The Department currently has a single monthly flat rate for all customers on a per ERU basis. For the City, the basis for one ERU for the residential class of service is 2,347 sq. ft of impervious surface area. Residential customers include Single-Family, Condominiums, Multi-Family and Apartments. A non-residential customer is classified as Commercial, Industrial, or Institutional.

Each of the non-residential customers’ monthly bills are calculated using the same method, but each class is adjusted by the density of development factor depending on the customer class. As stated previously, the density of development factor is a percentage applied to the gross parcel area used to determine a customer’s number of ERUs. The density of development factor for a Commercial customer is 90%, Institutional is 62%, and Industrial is 79% based on the Department’s approach. These factors are used to determine the Commercial, Industrial, or Institutional customer ERUs, which are then multiplied by the rate per ERU for the total monthly non-residential charge for a given parcel.

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Given the results of the revenue requirement and cost of service analyses, a proposed stormwater rate has been developed that reflects the proportional distribution of the costs of providing stormwater service to the Department’s customers on a per ERU basis. It is important to note that the structure, based on an ERU, of the proposed stormwater rate is recommended to be maintained at this time. Therefore, only the level of the rate has been adjusted to meet the revenue requirement of the Department’s stormwater utility. Furthermore, the rate for FY 2027 is based on the unit cost developed in the cost of service analysis. The proposed stormwater rate, thereafter, is increased by the annual revenue requirement adjustment to recover the revenues to support the identified O&M and capital expenses in each year.

Provided in Table 5 – 1 is a summary of the current and proposed stormwater rates for the Department’s stormwater utility.

Table 5 – 1
Summary of the Present and Proposed Stormwater Rates
Present
Rates FY 2027 FY 2028 FY 2029 FY 2030 FY 2031
$/ERU
Rate Per Equivalent Unit $2.10 $3.85 $5.60 $6.85 $7.85 $8.10

5.5 Summary of the Stormwater Rate Study
This completes the analysis for the Department’s stormwater utility. This Study has provided a comprehensive review and development of proposed stormwater rates. Based on the Department’s system and customer characteristics, the proposed stormwater rates appropriately reflect the cost to provide service and are proportionally distributed to the total billed ERUs. Full and complete technical appendices of the development of the comprehensive stormwater rate study and the proposed revenue adjustments can be found in the Technical Appendix of this report.

The Study was developed based on existing operating expenses and the adopted capital plan, along with assumptions of cost escalation and customer growth as examples. Should the assumptions or data change, the Study should be revisited and updated to reflect these changes to maintain cost-based and proportional stormwater rates.

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Technical Appendix A – Stormwater Analysis

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FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 FY 2032 FY 2033 Revenues
Total Rate Revenues $6,067,001 $6,097,336 $6,127,822 $6,158,462 $6,189,254 $6,220,200 $6,251,301 $6,282,558 $6,313,970 Total Miscellaneous Revenue 922,274 947,597 894,867 919,738 935,267 975,846 1,026,866 1,048,340 1,085,150 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Total Revenues $6,989,275 $7,044,932 $7,022,689 $7,078,200 $7,124,521 $7,196,046 $7,278,167 $7,330,898 $7,399,120 Expenses
Total O & M Expense $7,532,340 $9,196,577 $10,149,202 $10,515,797 $10,897,478 $11,290,642 $11,700,101 $12,126,676 $12,571,237 Total Taxes and Transfers 0 0 0 0 0 0 0 0 0
Net CIP From Rates 0 0 950,000 6,625,000 10,025,000 12,740,000 13,250,000 13,725,000 14,190,000 Net Debt Service 0 0 0 0 0 0 0 0 0
General Fund Back Payment 0 0 0 0 0 0 0 0 0
---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Total Application of Funds $7,532,340 $9,196,577 $11,099,202 $17,140,797 $20,922,478 $24,030,642 $24,950,101 $25,851,676 $26,761,237 Total Reserve Funding ($543,065) ($2,151,645) $1,021,836 $194,690 $206,130 $202,481 $198,282 $190,295 $196,070 Total Revenue Requirement $6,989,275 $7,044,932 $12,121,038 $17,335,487 $21,128,608 $24,233,123 $25,148,383 $26,041,971 $26,957,306 Bal. /(Def.) of Funds $0 $0 ($5,098,348) ($10,257,287) ($14,004,087) ($17,037,076) ($17,870,216) ($18,711,073) ($19,558,186) Debt Service Coverage Ratio (all debt, including taxes and transfers) Before Rate Adjustment 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 After Proposed Rate Adjustment 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Ending Fund Balance $8,387,043 $4,088,902 $5,280,976 $5,567,168 $5,606,565 $8,381,954 $8,980,051 $9,170,346 $7,647,127 Exhibit 1
Summary of the Revenue Requirement
Stormwater Rate Study
City of Stockton

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City of Stockton
Stormwater Rate Study
Escalation Factors
Exhibit 2
FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 FY 2032 FY 2033 FY 2034 Revenues
Customer Growth 0.5% 0.5% 0.5% 0.5% 0.5% 0.5% 0.5% 0.5% 0.5% 0.5% Miscellaneous Revenues 1.0% 1.0% 1.0% 1.0% 1.0% 1.5% 1.5% 1.5% 1.5% 1.5% Expenses
Labor Budget Budget 22.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% Provided by Budget Office Benefits - Medical Budget Budget 22.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% Provided by Budget Office Benefits - Retirement Budget Budget 25.0% 6.0% 6.0% 6.0% 6.0% 6.0% 6.0% 6.0% Provided by Budget Office Benefits - Other Budget Budget 22.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% Provided by Budget Office Materials & Supplies Budget Budget 3.2% 3.2% 3.2% 3.2% 3.2% 3.2% 3.2% 3.2% Equipment Budget Budget 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% Miscellaneous Budget Budget 2.8% 2.8% 2.8% 2.8% 2.8% 2.8% 2.8% 2.8% Utilities Budget Budget 4.0% 4.0% 4.0% 3.5% 3.5% 3.5% 3.5% 3.5% CIP Budget 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% Insurance Budget Budget 9.0% 9.0% 9.0% 9.0% 9.0% 9.0% 9.0% 9.0% Provided by Budget Office Interest 2.3% 2.3% 2.3% 2.3% 2.3% 2.3% 2.3% 2.3% 2.3%
New Debt Service Assumptions
Revenue Bond
Term in Years 30 30 30 30 30 30 30 30 30 30
Rate 5.0% 5.0% 5.0% 5.0% 5.0% 5.0% 5.0% 5.0% 5.0% 5.0%
Notes

ATTACHMENT A
1261
City of Stockton
Stormwater Rate Study Page 1 of 7
Revenue Requirement Analysis
Exhibit 3
Proj Yr End Budget
FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 FY 2032 FY 2033 FY 2034 Revenues
Rate Revenues
Residential $2,508,761 $2,521,305 $2,533,911 $2,546,581 $2,559,314 $2,572,110 $2,584,971 $2,597,896 $2,610,885 $2,623,939 Customer Growth Non-Residential 3,558,240 3,576,031 3,593,911 3,611,881 3,629,940 3,648,090 3,666,330 3,684,662 3,703,085 3,721,601 Customer Growth ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Rate Revenues Total Rate Revenues $6,067,001 $6,097,336 $6,127,822 $6,158,462 $6,189,254 $6,220,200 $6,251,301 $6,282,558 $6,313,970 $6,345,540 Miscellaneous Revenue
Interest Income $175,000 $168,277 $107,754 $124,754 $132,333 $160,868 $199,663 $208,730 $232,945 $180,632 Calculated on Reserves mercial Fse Inspct Fee Commercial Fse Inspct Fee 60,000 70,000 70,700 71,407 72,121 73,203 74,301 75,415 76,547 77,695 Miscellaneous Revenues ruction InspectionsConstruction Inspections 90,000 100,000 101,000 102,010 103,030 104,576 106,144 107,736 109,352 110,993 Miscellaneous Revenues ualty Cntrl Crit PlanSw Qualty Cntrl Crit Plan 19,719 20,000 20,200 20,402 20,606 20,915 21,229 21,547 21,870 22,199 Miscellaneous Revenues n Fee Storm DrainsAdmin Fee Storm Drains 110,569 117,176 118,348 119,531 120,727 122,537 124,376 126,241 128,135 130,057 Miscellaneous Revenues y ReimbursementsAgency Reimbursements 360,800 371,444 375,158 378,910 382,699 388,440 394,266 400,180 406,183 412,276 Miscellaneous Revenues Fines & Penalties 106,186 100,700 101,707 102,724 103,751 105,308 106,887 108,491 110,118 111,770 Miscellaneous Revenues -------------- -------------- -------------- -------------- -------------- -------------- -------------- -------------- -------------- -------------- Miscellaneous Revenue Total Miscellaneous Revenue $922,274 $947,597 $894,867 $919,738 $935,267 $975,846 $1,026,866 $1,048,340 $1,085,150 $1,045,620 Total Revenues $6,989,275 $7,044,932 $7,022,689 $7,078,200 $7,124,521 $7,196,046 $7,278,167 $7,330,898 $7,399,120 $7,391,160 Notes
Projected

ATTACHMENT A
1262
City of Stockton
Stormwater Rate Study Page 2 of 7
Revenue Requirement Analysis
Exhibit 3
Proj Yr End Budget
FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 FY 2032 FY 2033 FY 2034 Notes Projected
Expenses
Utility Billing
BillingSalaries - Regular Salaries - Regular $145,591 $150,288 $183,351 $188,852 $194,517 $200,353 $206,364 $212,554 $218,931 $225,499 Labor BillingSalaries - Part Time/Temp Salaries - Part Time/Temp 5,930 6,230 7,601 7,829 8,063 8,305 8,555 8,811 9,076 9,348 Labor BillingRegular Overtime Regular Overtime 2,539 5,740 7,003 7,213 7,429 7,652 7,882 8,118 8,362 8,613 Labor BillingHoliday PayHoliday Pay 738 0 0 0 0 0 0 0 0 0 Labor BillingVacation Sell Back Vacation Sell Back 360 304 371 382 393 405 417 430 443 456 Benefits - Other BillingEmployee Separation Pay Employee Separation Pay 2,181 2,250 2,745 2,827 2,912 3,000 3,090 3,182 3,278 3,376 Benefits - Other BillingAdditional Pay Additional Pay 723 134 163 168 173 179 184 190 195 201 Benefits - Other BillingRetirementRetirement 42,226 46,691 58,364 61,866 65,578 69,512 73,683 78,104 82,790 87,758 Benefits - Retirement BillingDeferred Compensation Deferred Compensation 988 0 0 0 0 0 0 0 0 0 Benefits - Other BillingMedicare Medicare 2,595 2,352 2,869 2,956 3,044 3,136 3,230 3,326 3,426 3,529 Benefits - Medical BillingHealth/Dental/Vision Health/Dental/Vision 42,294 34,216 41,744 42,996 44,286 45,614 46,983 48,392 49,844 51,339 Benefits - Medical BillingL/T Disability Insurance L/T Disability Insurance 1,059 945 1,153 1,187 1,223 1,260 1,298 1,337 1,377 1,418 Benefits - Other BillingLife Insurance Life Insurance 158 130 159 163 168 173 179 184 189 195 Benefits - Other BillingWorkers Compensation Workers Compensation 5,387 4,619 5,635 5,804 5,978 6,158 6,342 6,533 6,729 6,931 Benefits - Other BillingUnemployment Insurance Unemployment Insurance 184 161 196 202 208 215 221 228 235 242 Benefits - Other BillingCell Phone Allowance Cell Phone Allowance 248 135 165 170 175 180 185 191 197 203 Benefits - Other BillingInsurance Premiums Insurance Premiums 15,008 20,954 22,840 24,895 27,136 29,578 32,240 35,142 38,305 41,752 Insurance BillingComputer/Tech/Oper Support Computer/Tech/Oper Support 20,200 19,775 20,408 21,061 21,735 22,430 23,148 23,889 24,653 25,442 Materials & Supplies BillingContractual Employees Contractual Employees 6,717 7,070 7,296 7,530 7,771 8,019 8,276 8,541 8,814 9,096 Materials & Supplies BillingComputer Programming Services Computer Programming Services 1,224 1,288 1,329 1,372 1,416 1,461 1,508 1,556 1,606 1,657 Materials & Supplies BillingOther Services Other Services 132,411 139,380 143,840 148,443 153,193 158,095 163,154 168,375 173,763 179,324 Materials & Supplies BillingDuplication/Copy Costs Duplication/Copy Costs 2,216 2,333 2,408 2,485 2,564 2,646 2,731 2,818 2,909 3,002 Materials & Supplies BillingPublicity & Advertising Publicity & Advertising 120 126 130 134 138 143 147 152 157 162 Materials & Supplies BillingPrinting & Mapping Printing & Mapping 16,015 16,858 17,397 17,954 18,529 19,122 19,734 20,365 21,017 21,689 Materials & Supplies BillingPostage/Mailing Services Postage/Mailing Services 77,852 81,949 84,571 87,278 90,071 92,953 95,927 98,997 102,165 105,434 Materials & Supplies BillingMaint & Repair Services Maint & Repair Services 1,074 1,130 1,166 1,203 1,242 1,282 1,323 1,365 1,409 1,454 Materials & Supplies BillingPool Vehicle Rental Pool Vehicle Rental 106 112 116 119 123 127 131 135 140 144 Materials & Supplies BillingProcessing Fees Processing Fees 13,876 14,606 15,073 15,556 16,054 16,567 17,097 17,645 18,209 18,792 Materials & Supplies BillingCollection Costs Collection Costs 15,352 16,160 16,677 17,211 17,762 18,330 18,916 19,522 20,146 20,791 Materials & Supplies BillingTelephoneTelephone 159 167 172 178 184 189 195 202 208 215 Materials & Supplies BillingMaterials and Supplies Materials and Supplies 960 1,044 1,077 1,111 1,147 1,184 1,222 1,261 1,301 1,343 Materials & Supplies BillingComputer Software Computer Software 1,207 1,435 1,481 1,528 1,577 1,628 1,680 1,734 1,789 1,846 Materials & Supplies BillingFuels - Gasoline and Propane Fuels - Gasoline and Propane 909 957 988 1,019 1,052 1,086 1,120 1,156 1,193 1,231 Materials & Supplies BillingTraining Services Training Services 2,303 2,424 2,502 2,582 2,664 2,749 2,837 2,928 3,022 3,119 Materials & Supplies BillingMeetings and Travel Meetings and Travel 312 328 338 349 361 372 384 396 409 422 Materials & Supplies BillingMemberships Memberships 118 124 128 132 136 141 145 150 155 160 Materials & Supplies BillingCar Mileage Reimbursement Car Mileage Reimbursement 76 80 98 101 104 107 110 113 117 120 Benefits - Other BillingSettlement Payments Settlement Payments 11,742 4,283 4,403 4,526 4,653 4,783 4,917 5,055 5,196 5,342 Miscellaneous BillingTRAVEL TRAVEL 0 0 0 0 0 0 0 0 0 0 Miscellaneous
BillingComputer/Programming Svcs Computer/Programming Svcs 7,600 4,750 4,883 5,020 5,160 5,305 5,453 5,606 5,763 5,924 Miscellaneous ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Total Utility Billing $580,758 $591,528 $660,840 $684,402 $708,919 $734,438 $761,008 $788,682 $817,515 $847,567 Utility Billing Expenses Total Utility Billing Expenses $580,758 $591,528 $660,840 $684,402 $708,919 $734,438 $761,008 $788,682 $817,515 $847,567

ATTACHMENT A
1263
City of Stockton
Stormwater Rate Study Page 3 of 7
Revenue Requirement Analysis
Exhibit 3
Proj Yr End Budget
FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 FY 2032 FY 2033 FY 2034 Notes Projected
Administration
nistrationEmployee Services Employee Services
nistrationSalaries - Regular Salaries - Regular $545,995 $621,200 $757,864 $780,600 $804,018 $828,138 $852,983 $878,572 $904,929 $932,077 Labor nistrationSalaries - Part Time/Temp Salaries - Part Time/Temp 1,445 0 0 0 0 0 0 0 0 0 Labor nistrationRegular Overtime Regular Overtime 8,629 18,280 22,302 22,971 23,660 24,370 25,101 25,854 26,629 27,428 Labor nistrationHoliday Pay Holiday Pay 4,917 3,500 4,270 4,398 4,530 4,666 4,806 4,950 5,099 5,252 Benefits - Other nistrationVacation Sell Back Vacation Sell Back 1,701 2,345 2,861 2,947 3,035 3,126 3,220 3,317 3,416 3,519 Benefits - Other nistrationEmployee Separation Pay Employee Separation Pay 6,899 9,175 11,194 11,529 11,875 12,231 12,598 12,976 13,366 13,767 Labor nistrationAdditional Pay Additional Pay 520 296 361 372 383 395 406 419 431 444 Labor nistrationRetirement Retirement 126,544 192,180 240,225 254,639 269,917 286,112 303,279 321,475 340,764 361,210 Benefits - Retirement nistrationDeferred Compensation Deferred Compensation 13,086 14,107 17,211 17,727 18,259 18,806 19,371 19,952 20,550 21,167 Benefits - Other nistrationMedicareMedicare 6,444 8,209 10,015 10,315 10,625 10,944 11,272 11,610 11,958 12,317 Benefits - Medical nistrationMedicare/Social Security Medicare/Social Security 0 1,184 1,444 1,488 1,532 1,578 1,626 1,675 1,725 1,777 Benefits - Medical nistrationHealth/Dental/Vision Health/Dental/Vision 64,096 102,157 124,632 128,370 132,222 136,188 140,274 144,482 148,817 153,281 Benefits - Medical nistrationL/T Disability Insurance L/T Disability Insurance 2,072 3,921 4,784 4,927 5,075 5,227 5,384 5,546 5,712 5,883 Benefits - Other nistrationLife Insurance Life Insurance 344 421 514 529 545 561 578 595 613 632 Benefits - Other nistrationWorkers Compensation Workers Compensation 13,013 14,262 17,400 17,922 18,459 19,013 19,583 20,171 20,776 21,399 Benefits - Other nistrationUnemployment Insurance Unemployment Insurance 554 648 791 814 839 864 890 916 944 972 Benefits - Other nistrationCell Phone Allowance Cell Phone Allowance 3,244 1,932 2,357 2,428 2,501 2,576 2,653 2,732 2,814 2,899 Benefits - Other nistrationSettlement Payments Settlement Payments 9,720 8,003 9,764 10,057 10,358 10,669 10,989 11,319 11,658 12,008 Benefits - Other -------------- -------------- -------------- -------------- -------------- -------------- -------------- -------------- -------------- -------------- nistrationTotal Employee Services Total Employee Services $809,223 $1,001,820 $1,227,986 $1,272,032 $1,317,832 $1,365,465 $1,415,012 $1,466,561 $1,520,202 $1,576,031 nistrationOther Services Other Services
nistrationMaintenance & Repair Services Maintenance & Repair Services $1,130 $2,175 $2,654 $2,733 $2,815 $2,900 $2,987 $3,076 $3,168 $3,263 Labor nistrationDuplication/Copy Costs Duplication/Copy Costs 1,535 3,035 3,120 3,207 3,297 3,389 3,484 3,582 3,682 3,785 Miscellaneous nistrationInsurance Premiums Insurance Premiums 44,626 84,793 92,424 100,743 109,809 119,692 130,465 142,206 155,005 168,955 Insurance nistrationAutomotive Equipment Rental Automotive Equipment Rental 1,169 17,157 17,706 18,273 18,857 19,461 20,084 20,726 21,389 22,074 Materials & Supplies nistrationComputer/Tech/Operation Support Computer/Tech/Operation Support 21,876 10,153 12,387 12,758 13,141 13,535 13,941 14,360 14,790 15,234 Labor nistrationTelephone Rental Telephone Rental 5,953 8,302 8,568 8,842 9,125 9,417 9,718 10,029 10,350 10,681 Materials & Supplies nistrationRadio Equipment Rental Radio Equipment Rental 183 200 206 213 220 227 234 242 249 257 Materials & Supplies nistrationEquipment Repairs/Maint Equipment Repairs/Maint 0 240 248 256 264 272 281 290 299 309 Materials & Supplies nistrationTelecommunications Telecommunications 0 150 156 162 169 175 181 187 194 200 Utilities nistrationOther Rentals Oher Rentals 711,217 711,126 733,882 757,366 781,602 806,613 832,425 859,062 886,552 914,922 Materials & Supplies nistrationProcessing Fees Processing Fees 1,015 7,175 7,405 7,642 7,886 8,138 8,399 8,668 8,945 9,231 Materials & Supplies nistrationTesting & Analysis Services Testing & Analysis Services 21 547 565 583 601 620 640 661 682 704 Materials & Supplies nistrationUniform/Laundry Services Uniform/Laundry Services 2,584 4,584 4,731 4,882 5,038 5,200 5,366 5,538 5,715 5,898 Materials & Supplies nistrationPublicity & Advertising Publicity & Advertising 2,500 4,565 4,693 4,824 4,959 5,098 5,241 5,388 5,539 5,694 Miscellaneous nistrationPostage/Mailing Services Postage/Mailing Services 101 315,022 60,000 61,920 63,901 65,946 68,057 70,234 72,482 74,801 Materials & Supplies nistrationReprographics Reprographics 0 30 31 32 33 34 35 36 37 39 Materials & Supplies nistrationLegal Services Legal Services 7,880 10,700 13,054 13,446 13,849 14,264 14,692 15,133 15,587 16,055 Labor nistrationProfessional & Special Services Professional & Special Services 459,480 515,718 629,176 648,051 667,493 687,518 708,143 729,387 751,269 773,807 Labor nistrationTravel Travel 0 150 155 160 165 170 176 181 187 193 Materials & Supplies -------------- -------------- -------------- -------------- -------------- -------------- -------------- -------------- -------------- -------------- nistrationTotal Other Services Total Other Services $1,261,270 $1,695,822 $1,591,159 $1,646,092 $1,703,225 $1,762,670 $1,824,548 $1,888,986 $1,956,123 $2,026,103

ATTACHMENT A
1264
City of Stockton
Stormwater Rate Study Page 4 of 7
Revenue Requirement Analysis
Exhibit 3
Proj Yr End Budget
FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 FY 2032 FY 2033 FY 2034 Notes Projected
Materials & Supplies
nistrationMaterials & Supplies Materials & Supplies $11,995 $11,160 $11,517 $11,886 $12,266 $12,659 $13,064 $13,482 $13,913 $14,358 Materials & Supplies nistrationComputer Software Computer Software 65,000 40,035 41,316 42,638 44,003 45,411 46,864 48,364 49,911 51,508 Materials & Supplies nistrationSubscription - Periodical Subscription - Periodical 250 500 516 533 550 567 585 604 623 643 Materials & Supplies nistrationWater Water 0 0 0 0 0 0 0 0 0 0 Materials & Supplies nistrationTelephoneTelephone 3,404 4,407 4,548 4,694 4,844 4,999 5,159 5,324 5,494 5,670 Materials & Supplies nistrationTechnology and Communications Technology and Communications 0 0 0 0 0 0 0 0 0 0 Materials & Supplies nistrationFuels - Gas/Oil/Propane Fuels - Gas/Oil/Propane 200 1,264 1,315 1,367 1,422 1,472 1,523 1,576 1,632 1,689 Utilities nistrationFuel Fuel 3,200 4,293 4,464 4,643 4,829 4,998 5,173 5,354 5,541 5,735 Utilities nistrationLibrary Materials Library Materials 250 500 516 533 550 567 585 604 623 643 Materials & Supplies -------------- -------------- -------------- -------------- -------------- -------------- -------------- -------------- -------------- -------------- nistrationTotal Materials & Supplies Total Materials & Supplies $84,299 $62,159 $64,192 $66,293 $68,462 $70,672 $72,953 $75,307 $77,738 $80,247 nistrationOther Expenses Other Expenses
nistrationTraining Training $8,700 $11,920 $12,254 $12,597 $12,950 $13,312 $13,685 $14,068 $14,462 $14,867 Miscellaneous nistrationMeeting & Travel Meeting & Travel 500 535 550 565 581 597 614 631 649 667 Miscellaneous nistrationMemberships Memberships 234 59 61 62 64 66 68 70 72 74 Miscellaneous nistrationIndirect Cost Allocation Indirect Cost Allocation 171,547 171,547 177,037 182,702 188,548 194,582 200,808 207,234 213,866 220,709 Materials & Supplies nistrationNon-Capital Assets Non-Capital Assets 5,000 5,000 5,140 5,284 5,432 5,584 5,740 5,901 6,066 6,236 Miscellaneous -------------- -------------- -------------- -------------- -------------- -------------- -------------- -------------- -------------- -------------- nistrationTotal Other Expenses Total Other Expenses $185,981 $189,061 $195,041 $201,210 $207,575 $214,141 $220,915 $227,904 $235,115 $242,553 Administration Expenses Total Administration Expenses $2,340,773 $2,948,862 $3,078,378 $3,185,627 $3,297,094 $3,412,948 $3,533,428 $3,658,759 $3,789,177 $3,924,934 Storm Pump Stations
m Pump StationsEmployee Services Employee Services
m Pump StationsSalaries - Regular Salaries - Regular $1,113,405 $1,622,157 $1,979,032 $2,038,402 $2,099,555 $2,162,541 $2,227,417 $2,294,240 $2,363,067 $2,433,959 Labor m Pump StationsSalaries - Part Time/Temp Salaries - Part Time/Temp 4,589 4,900 5,978 6,157 6,342 6,532 6,728 6,930 7,138 7,352 Labor m Pump StationsRegular Overtime Regular Overtime 59,551 60,410 73,700 75,911 78,189 80,534 82,950 85,439 88,002 90,642 Labor m Pump StationsStand By Time Stand By Time 48,386 69,900 85,278 87,836 90,471 93,186 95,981 98,861 101,826 104,881 Labor m Pump StationsHoliday Pay Holiday Pay 5,807 5,981 7,297 7,516 7,741 7,973 8,213 8,459 8,713 8,974 Labor m Pump StationsEmployee Separation Pay Employee Separation Pay 3,077 5,614 6,849 7,055 7,266 7,484 7,709 7,940 8,178 8,424 Labor m Pump StationsSeparation Pay Separation Pay 9,799 16,991 20,729 21,351 21,991 22,651 23,331 24,031 24,752 25,494 Labor m Pump StationsAdditional Pay Additional Pay 8,681 7,014 8,557 8,814 9,078 9,351 9,631 9,920 10,218 10,524 Labor m Pump StationsRetirement Retirement 276,248 506,180 632,725 670,689 710,930 753,586 798,801 846,729 897,533 951,384 Benefits - Retirement m Pump StationsRetirement Expense Retirement Expense 2,226 2,000 2,440 2,513 2,589 2,666 2,746 2,829 2,913 3,001 Benefits - Other m Pump StationsDeferred Compensation Deferred Compensation 42,545 62,996 76,855 79,161 81,536 83,982 86,501 89,096 91,769 94,522 Benefits - Other m Pump StationsMedicare Medicare 14,408 24,449 29,828 30,723 31,644 32,594 33,571 34,579 35,616 36,684 Benefits - Medical m Pump StationsMedicare/Social Security Medicare/Social Security 0 312 381 392 404 416 428 441 455 468 Benefits - Medical m Pump StationsHealth/Dental/Vision Health/Dental/Vision 216,544 295,859 360,948 371,776 382,930 394,418 406,250 418,438 430,991 443,920 Benefits - Medical m Pump StationsL/T Disability Insurance L/T Disability Insurance 3,362 7,481 9,127 9,401 9,683 9,973 10,272 10,580 10,898 11,225 Benefits - Other m Pump StationsLife Insurance Life Insurance 831 1,269 1,548 1,595 1,642 1,692 1,742 1,795 1,849 1,904 Benefits - Other m Pump StationsWorkers Compensation Workers Compensation 66,618 91,681 111,851 115,206 118,663 122,222 125,889 129,666 133,556 137,562 Benefits - Other m Pump StationsRecruitment Incentive Recruitment Incentive 185 0 0 0 0 0 0 0 0 0 Benefits - Other m Pump StationsUnemployment Insurance Unemployment Insurance 1,251 1,703 2,078 2,140 2,204 2,270 2,338 2,409 2,481 2,555 Benefits - Other m Pump StationsCell Phone Allowance Cell Phone Allowance 3,682 3,561 4,344 4,475 4,609 4,747 4,890 5,036 5,187 5,343 Benefits - Other m Pump StationsAllowances Allowances 97 90 110 113 116 120 124 127 131 135 Benefits - Other m Pump StationsVacation Sell Back Vacation Sell Back 1,523 1,953 2,383 2,454 2,528 2,604 2,682 2,762 2,845 2,930 Benefits - Other m Pump StationsSettlement Payments Settlement Payments 46,071 49,652 60,575 62,393 64,264 66,192 68,178 70,224 72,330 74,500 Benefits - Other m Pump Stations
-------------- -------------- -------------- -------------- -------------- -------------- -------------- -------------- -------------- -------------- m Pump StationsTotal Employee Services Total Employee Services $1,928,886 $2,842,153 $3,482,612 $3,606,072 $3,734,375 $3,867,734 $4,006,374 $4,150,529 $4,300,447 $4,456,386

ATTACHMENT A
1265
City of Stockton
Stormwater Rate Study Page 5 of 7
Revenue Requirement Analysis
Exhibit 3
Proj Yr End Budget
FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 FY 2032 FY 2033 FY 2034 Notes Projected
Other Services
m Pump StationsElectricity Electricity $600,000 $650,000 $676,000 $703,040 $731,162 $756,752 $783,239 $810,652 $839,025 $868,391 Utilities m Pump StationsGasGas 40,000 45,000 46,800 48,672 50,619 52,391 54,224 56,122 58,086 60,119 Utilities m Pump StationsSanitary Sewer Sanitary Sewer 2,500 2,500 2,600 2,704 2,812 2,911 3,012 3,118 3,227 3,340 Utilities m Pump StationsWater Water 40,000 42,000 43,680 45,427 47,244 48,898 50,609 52,381 54,214 56,111 Utilities m Pump StationsTelephone Telephone 23,304 28,055 29,177 30,344 31,558 32,663 33,806 34,989 36,214 37,481 Utilities m Pump StationsStorm Water Storm Water 100 0 0 0 0 0 0 0 0 0 Utilities m Pump StationsMaintenance & Repair Services Maintenance & Repair Services 316,389 400,270 413,079 426,297 439,939 454,017 468,545 483,539 499,012 514,980 Materials & Supplies m Pump StationsEquipment Repairs/Maint. Equipment Repairs/Maint. 2,300 2,500 2,600 2,704 2,812 2,925 3,042 3,163 3,290 3,421 Equipment m Pump StationsSecurity and Alarm Services Security and Alarm Services 116,766 104,480 107,823 111,274 114,834 118,509 122,301 126,215 130,254 134,422 Materials & Supplies m Pump StationsTesting and Analysis Services Testing and Analysis Services 502 400 413 426 440 454 468 483 499 515 Materials & Supplies m Pump StationsInsurance Premiums Insurance Premiums 99,167 223,690 243,822 265,766 289,685 315,757 344,175 375,151 408,914 445,716 Insurance m Pump StationsAutomotive Equipment Rental Automotive Equipment Rental 19,173 13,504 13,936 14,382 14,842 15,317 15,807 16,313 16,835 17,374 Materials & Supplies m Pump StationsTelephone Rental Telephone Rental 47,725 41,116 42,432 43,790 45,191 46,637 48,129 49,669 51,259 52,899 Materials & Supplies m Pump StationsRadio Equipment Rental Radio Equipment Rental 1,528 2,439 2,517 2,598 2,681 2,766 2,855 2,946 3,041 3,138 Materials & Supplies m Pump StationsOther Rentals Other Rentals 6,000 3,000 3,096 3,195 3,297 3,403 3,512 3,624 3,740 3,860 Materials & Supplies m Pump StationsDuplication/Copy Costs Duplication/Copy Costs 1,117 1,495 1,543 1,592 1,643 1,696 1,750 1,806 1,864 1,923 Materials & Supplies m Pump StationsPublicity & Advertising Publicity & Advertising 14,128 12,040 12,425 12,823 13,233 13,657 14,094 14,545 15,010 15,490 Materials & Supplies m Pump StationsPrinting & Mapping Printing & Mapping 500 250 258 266 275 284 293 302 312 322 Materials & Supplies m Pump StationsPrinting Printing 0 38,500 39,732 41,003 42,316 43,670 45,067 46,509 47,997 49,533 Materials & Supplies m Pump StationsPostage/Mailing Services Postage/Mailing Services 43,256 2,590 2,673 2,758 2,847 2,938 3,032 3,129 3,229 3,332 Materials & Supplies m Pump StationsUniform/Laundry Services Uniform/Laundry Services 14,373 20,270 20,919 21,588 22,279 22,992 23,728 24,487 25,270 26,079 Materials & Supplies m Pump StationsLaboratory Services Laboratory Services 45,947 13,500 13,932 14,378 14,838 15,313 15,803 16,308 16,830 17,369 Materials & Supplies m Pump StationsTechnology and Communications Technology and Communications 1,039 1,137 1,173 1,211 1,250 1,290 1,331 1,374 1,417 1,463 Materials & Supplies m Pump StationsTraining Services Training Services 18,752 24,316 25,094 25,897 26,726 27,581 28,464 29,374 30,314 31,285 Materials & Supplies m Pump StationsProcessing Fees Processing Fees 155,762 176,217 181,151 186,223 191,438 196,798 202,308 207,973 213,796 219,782 Miscellaneous m Pump StationsComputer/Tech/Operations Support Computer/Tech/Operations Support 24,168 31,527 38,463 39,617 40,805 42,029 43,290 44,589 45,927 47,305 Labor m Pump StationsMemberships Memberships 1,940 3,267 3,372 3,479 3,591 3,706 3,824 3,947 4,073 4,203 Materials & Supplies m Pump StationsProfessional & Special Services Professional & Special Services 122,684 91,430 93,990 96,622 99,327 102,108 104,967 107,906 110,928 114,034 Miscellaneous m Pump StationsOther Services Other Services 100,000 175,000 179,900 184,937 190,115 195,439 200,911 206,536 212,319 218,264 Miscellaneous m Pump Stations
-------------- -------------- -------------- -------------- -------------- -------------- -------------- -------------- -------------- -------------- m Pump StationsTotal Other Services Total Other Services $1,859,120 $2,150,493 $2,242,600 $2,333,014 $2,427,798 $2,522,897 $2,622,586 $2,727,151 $2,836,897 $2,952,153 m Pump Stations
Materials & Supplies
m Pump StationsMaterials & Supplies Materials & Supplies $87,960 $103,530 $106,843 $110,262 $113,790 $117,432 $121,189 $125,067 $129,070 $133,200 Materials & Supplies m Pump StationsComputer Software Computer Software 66,791 51,685 53,339 55,046 56,807 58,625 60,501 62,437 64,435 66,497 Materials & Supplies m Pump StationsNon-Capital Assets Non-Capital Assets 46,138 137,520 141,921 146,462 151,149 155,986 160,977 166,128 171,445 176,931 Materials & Supplies m Pump StationsBuilding & Structures Building & Structures 80,000 75,000 77,400 79,877 82,433 85,071 87,793 90,602 93,502 96,494 Materials & Supplies m Pump StationsCommunity/Program Community/Program 1,000 2,500 2,580 2,663 2,748 2,836 2,926 3,020 3,117 3,216 Materials & Supplies m Pump StationsVehicle Acquisition Vehicle Acquisition 264,317 55,050 56,812 58,630 60,506 62,442 64,440 66,502 68,630 70,826 Materials & Supplies m Pump StationsEquipment Acquisition Equipment Acquisition 245,007 226,250 233,490 240,962 248,672 256,630 264,842 273,317 282,063 291,089 Materials & Supplies m Pump StationsSubscriptions Subscriptions 464 55 57 59 60 62 64 66 69 71 Materials & Supplies m Pump StationsChemicals Chemicals 3,871 5,000 5,160 5,325 5,496 5,671 5,853 6,040 6,233 6,433 Materials & Supplies m Pump StationsLibrary Materials Library Materials 2,872 2,055 2,121 2,189 2,259 2,331 2,406 2,483 2,562 2,644 Materials & Supplies m Pump StationsFuels - Gas/Oil/Propane Fuels - Gas/Oil/Propane 14,000 1,182 1,220 1,259 1,299 1,341 1,384 1,428 1,474 1,521 Materials & Supplies m Pump StationsTechnology Capital Technology Capital 8,953 2,850 2,941 3,035 3,132 3,233 3,336 3,443 3,553 3,667 Materials & Supplies m Pump Stations
-------------- -------------- -------------- -------------- -------------- -------------- -------------- -------------- -------------- -------------- m Pump StationsTotal Materials & Supplies Total Materials & Supplies $821,373 $662,677 $683,883 $705,767 $728,351 $751,659 $775,712 $800,535 $826,152 $852,589

ATTACHMENT A
1266
City of Stockton
Stormwater Rate Study Page 6 of 7
Revenue Requirement Analysis
Exhibit 3
Proj Yr End Budget
FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 FY 2032 FY 2033 FY 2034 Notes Projected
Other Expenses
Pump StationsTraining Training $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Miscellaneous Pump StationsMeetings & Travel Meetings & Travel 1,430 865 889 914 940 966 993 1,021 1,049 1,079 Miscellaneous Pump Stations
-------------- -------------- -------------- -------------- -------------- -------------- -------------- -------------- -------------- -------------- Pump StationsTotal Other Expenses Total Other Expenses $1,430 $865 $889 $914 $940 $966 $993 $1,021 $1,049 $1,079 Pump Stations
Pump StationsTotal Storm Pump Stations Expenses Total Storm Pump Stations Expenses $4,610,809 $5,656,188 $6,409,984 $6,645,768 $6,891,464 $7,143,256 $7,405,665 $7,679,235 $7,964,544 $8,262,206 CIP Related MUD Staff Cost $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Total O&M Expenses $7,532,340 $9,196,577 $10,149,202 $10,515,797 $10,897,478 $11,290,642 $11,700,101 $12,126,676 $12,571,237 $13,034,707

22.09% 10.36% 3.61% 3.63% 3.61% 3.63% 3.65% 3.67% 3.69% Taxes & Transfers
Taxes & Transfers $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
--------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- Taxes Taxes & Transfers Total Taxes Taxes & Transfers $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Rate Funded Capital $0 $0 $950,000 $6,625,000 $10,025,000 $12,740,000 $13,250,000 $13,725,000 $14,190,000 $14,300,000 FY 2022 Depr. Exp. $1,684,553 Debt Service
Revenue Bonds New Revenue Bonds $0 $0 $0 $0 $0 $0 $0 $0 $0 $260,206 Calculated --------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- Total Debt Service $0 $0 $0 $0 $0 $0 $0 $0 $0 $260,206
Debt Service Funding Less: Debt Service Funding
Reserve Funding $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
--------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- Net Debt Service $0 $0 $0 $0 $0 $0 $0 $0 $0 $260,206
General Fund Back Payment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Debt Schedule Reserve Funding
From) Operating Reserve [441] To / (From) Operating Reserve [441] ($543,065) ($2,151,645) $1,021,836 $194,690 $206,130 $202,481 $198,282 $190,295 $196,070 $206,268 From) Capital Reserve To / (From) Capital Reserve 0 0 0 0 0 0 0 0 0 0 --------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- Reserve Funding Total Reserve Funding ($543,065) ($2,151,645) $1,021,836 $194,690 $206,130 $202,481 $198,282 $190,295 $196,070 $206,268 Total Revenue Requirement $6,989,275 $7,044,932 $12,121,038 $17,335,487 $21,128,608 $24,233,123 $25,148,383 $26,041,971 $26,957,306 $27,801,181 Bal. /(Def.) of Funds $0 $0 ($5,098,348) ($10,257,287) ($14,004,087) ($17,037,076) ($17,870,216) ($18,711,073) ($19,558,186) ($20,410,021)

ATTACHMENT A
1267
City of Stockton
Stormwater Rate Study Page 7 of 7
Revenue Requirement Analysis
Exhibit 3
Proj Yr End Budget
FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 FY 2032 FY 2033 FY 2034 Notes Projected
Debt Service Coverage Ratio (all debt, including taxes and transfers) Before Rate Adjustment 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 After Proposed Rate Adjustment 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 56.75 Reserve Funds
Total Beginning Balance $8,930,108 $6,240,547 $4,088,902 $5,280,976 $5,567,168 $5,606,565 $8,381,954 $8,980,051 $9,170,346 $7,647,127 Operating Reserve Fund - Stormwater (441)
Beginning Reserve Fund Balance $5,140,108 $6,240,547 $4,088,902 $5,110,738 $5,305,428 $5,511,558 $5,714,039 $5,912,321 $6,102,616 $6,298,686 Plus: To Reserve Fund 0 0 1,021,836 194,690 206,130 202,481 198,282 190,295 196,070 206,268 Less: Uses of Funds (543,065) (2,151,645) 0 0 0 0 0 0 0 0 Ending Fund Balance $4,597,043 $4,088,902 $5,110,738 $5,305,428 $5,511,558 $5,714,039 $5,912,321 $6,102,616 $6,298,686 $6,504,954 Target: 180 days of O&M $3,714,579 $4,535,298 $5,005,086 $5,185,872 $5,374,099 $5,567,988 $5,769,913 $5,980,279 $6,199,514 $6,428,075 Capital Reserve Fund
Beginning Reserve Fund Balance $3,790,000 $0 $0 $170,239 $261,740 $95,007 $2,667,915 $3,067,730 $3,067,730 $1,348,442 Plus: To Reserve Fund 0 0 170,239 91,501 0 2,572,908 399,815 0 0 0 Less: Uses of Funds 0 0 0 0 (166,733) 0 0 0 (1,719,288) (206,567) Ending Fund Balance $3,790,000 $0 $170,239 $261,740 $95,007 $2,667,915 $3,067,730 $3,067,730 $1,348,442 $1,141,875 Total Ending Balance $8,387,043 $4,088,902 $5,280,976 $5,567,168 $5,606,565 $8,381,954 $8,980,051 $9,170,346 $7,647,127 $7,646,828 Target O&M Fund Balance $3,714,579 $4,535,298 $5,005,086 $5,185,872 $5,374,099 $5,567,988 $5,769,913 $5,980,279 $6,199,514 $6,428,075 180 days of O&M Target Bal. / (Def.) $4,672,464 ($446,397) $275,891 $381,295 $232,466 $2,813,966 $3,210,138 $3,190,067 $1,447,613 $1,218,754

ATTACHMENT A
1268
City of Stockton
Stormwater Rate Study
Capital Improvement Plan
Exhibit 4
FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 FY 2032 FY 2033 FY 2034 Notes CIP Projects
Alexandria and 14-Mile Slough Storm Drain Pump Station $0 $0 $0 $273,182 $0 $0 $0 $0 $0 $0 Swenson Park and Five Mile (Bonniebrook) Storm PS Improv 0 0 0 819,545 0 0 0 0 0 0 Storm Drain System Emergency 0 0 265,225 273,182 281,377 289,819 298,513 307,468 316,693 326,193 West Lane and Calaveras South Storm Pump Station Improvements 0 0 0 819,545 562,754 0 0 0 0 0 Buena Vista & Smith Canal Pump Station Discharge Pipe Rehab 0 0 0 0 0 446,321 0 0 0 0 Storm Pump Station Transfer Switch 0 0 265,225 0 0 0 0 0 0 0 Rose Street Assessment and Repair 0 0 106,090 0 0 0 0 0 0 0 Total MUD Staff Cost 0 0 143,222 142,055 191,336 0 0 0 0 0 -------------- -------------- -------------- -------------- -------------- -------------- -------------- -------------- -------------- -------------- Total CIP Projects $0 $0 $779,762 $2,327,509 $1,035,468 $736,139 $298,513 $307,468 $316,693 $326,193 CIP Projects - State Funded
Stockton Channel Water Quailty Improvements $0 $1,300,000 $1,700,000 $0 $0 $0 $0 $0 $0 $0 -------------- -------------- -------------- -------------- -------------- -------------- -------------- -------------- -------------- -------------- Total CIP Projects - State Funded $0 $1,300,000 $1,700,000 $0 $0 $0 $0 $0 $0 $0 Master Plan CIP Projects
HWY 4 and San Joaquin $0 $0 $0 $0 $0 $0 $7,433,790 $7,656,804 $7,886,508 $8,123,103 1st Priority Bonnie Brook 0 0 0 4,205,990 4,332,170 4,462,135 0 0 0 0 1st Priority Boggs Tract 0 0 0 0 4,824,095 4,968,818 5,117,882 5,271,419 0 0 1st Priority Walker Turnpike Alt 1 0 0 0 0 0 0 0 0 11,706,088 12,057,271 1st Priority -------------- -------------- -------------- -------------- -------------- -------------- -------------- -------------- -------------- -------------- Total Master Plan CIP Projects $0 $0 $0 $4,205,990 $9,156,265 $9,430,953 $12,551,672 $12,928,223 $19,592,596 $20,180,374 Future Unidentified Capital Projects $0 $0 $0 $0 $0 $0 $0 $489,309 $0 $0 Transfer to Capital Reserve $0 $0 $170,239 $91,501 $0 $2,572,908 $399,815 $0 $0 $0 Total Capital Improvement Projects $0 $1,300,000 $2,650,000 $6,625,000 $10,191,733 $12,740,000 $13,250,000 $13,725,000 $19,909,288 $20,506,567 Less: Other Funding Sources
Operating Reserve Fund - Stormwater (441) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Input Capital Reserve Fund 0 0 0 0 166,733 0 0 0 1,719,288 206,567 Input State Grants 0 1,300,000 1,700,000 0 0 0 0 0 0 0 Linked New Public Works Trust Fund Loans 0 0 0 0 0 0 0 0 0 0 Input New Revenue Bonds 0 0 0 0 0 0 0 0 4,000,000 6,000,000 Calculated --------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- --------------- Total Less: Other Funding Sources $0 $1,300,000 $1,700,000 $0 $166,733 $0 $0 $0 $5,719,288 $6,206,567 Rate Funded Capital $0 $0 $950,000 $6,625,000 $10,025,000 $12,740,000 $13,250,000 $13,725,000 $14,190,000 $14,300,000

ATTACHMENT A
1269
City of Stockton
Stormwater Rate Study Page 1 of 2
Revenue at Present Rates
Exhibit 5
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Residential
$ / ERU
All Categories $2.10 99,554 99,554 99,554 99,554 99,554 99,554 99,554 99,554 99,554 99,554 99,554 99,554 99,554 ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ $209,063 $209,063 $209,063 $209,063 $209,063 $209,063 $209,063 $209,063 $209,063 $209,063 $209,063 $209,063 $2,508,761 Total Residential $209,063 $209,063 $209,063 $209,063 $209,063 $209,063 $209,063 $209,063 $209,063 $209,063 $209,063 $209,063 $2,508,761 Non-Residential
$ / ERU
All Categories $2.10 141,200 141,200 141,200 141,200 141,200 141,200 141,200 141,200 141,200 141,200 141,200 141,200 141,200 -------------- -------------- -------------- -------------- -------------- -------------- -------------- -------------- -------------- -------------- -------------- -------------- -------------- $296,520 $296,520 $296,520 $296,520 $296,520 $296,520 $296,520 $296,520 $296,520 $296,520 $296,520 $296,520 $3,558,240 Total Non-Residential $296,520 $296,520 $296,520 $296,520 $296,520 $296,520 $296,520 $296,520 $296,520 $296,520 $296,520 $296,520 $3,558,240

ATTACHMENT A
1270
City of Stockton
Stormwater Rate Study Page 2 of 2
Revenue at Present Rates
Exhibit 5
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
Summary
ERUs
Residential 99,554 99,554 99,554 99,554 99,554 99,554 99,554 99,554 99,554 99,554 99,554 99,554 99,554 Non-Residential 141,200 141,200 141,200 141,200 141,200 141,200 141,200 141,200 141,200 141,200 141,200 141,200 141,200 ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ 240,754 240,754 240,754 240,754 240,754 240,754 240,754 240,754 240,754 240,754 240,754 240,754 240,754 Revenue
Residential $209,063 $209,063 $209,063 $209,063 $209,063 $209,063 $209,063 $209,063 $209,063 $209,063 $209,063 $209,063 $2,508,761 Non-Residential 296,520 296,520 296,520 296,520 296,520 296,520 296,520 296,520 296,520 296,520 296,520 296,520 3,558,240 ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ --------------- $505,583 $505,583 $505,583 $505,583 $505,583 $505,583 $505,583 $505,583 $505,583 $505,583 $505,583 $505,583 $6,067,001 FY 2025 Year End Projection $6,025,345
Difference $41,656
Percent 0.7%
FY 2026 Budget $6,082,390
Difference ($15,389)
Percent -0.3%
Notes

ATTACHMENT A
1271
City of Stockton
Stormwater Rate Study
Cost of Service Summary
Exhibit 6
Total
Revenues at Present Rates $6,127,822
Distributed Revenue Requirement $11,226,171
--------------
Balance/(Deficiency) of Funds ($5,098,348)

ATTACHMENT A
1272
City of Stockton
Stormwater Rate Study
Average Unit Costs
Exhibit 7
Total
Total Costs - $ / ERU / Month $3.85
Current Rates $ / Month $2.10
Base Data:

Total Billed ERUs 243,168

ATTACHMENT A
1273
City of Stockton
Stormwater Rate Study
Rate Summary
Exhibit 8
Present
Rates FY 2027 FY 2028 FY 2029 FY 2030 FY 2031
Monthly Rate (per ERU) $2.10 $3.85 $5.60 $6.85 $7.85 $8.10 Proposed

ATTACHMENT A
1274
Technical Appendix B –Proposition 218 Notice

ATTACHMENT A
1275












  




  



 
 



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1276






 
 




 

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E¬ŒSQDQ‡BFUVQFQVQE]•E‡BCVˆESV Â45:Ã:;8O¶552 ATTACHMENT A 1277
Resolution No.

STOCKTON CITY COUNCIL

RESOLUTION APPROVING THE STORMWATER RATE ADJUSTMENTS
On August 22, 2023, by Resolution 2023-08-22-1214, the Stockton City Council approved a professional services contract with HDR Engineering, Inc., to evaluate the Stormwater Utility revenue requirements, prepare a cost-of-service analysis, and design rates that proportionately allocate the costs of providing stormwater service among all customer classes and customers within each class; and
The Stormwater Rate Study, dated March 2026, Attachment A to the staff report on this matter, is complete and indicates the need to adjust the rates for the City stormwater service charges to enable the Stormwater Utility to meet its projected operation, maintenance, and capital improvement costs; and On March 31, 2026, this Council adopted Resolution 2026-03-31-1503, which determined, at the close of the public hearing, that no majority protest has been filed by the property owners and customers of record subject to the proposed Stormwater fees, adopted the Final Stormwater Rate Study prepared by HDR, Inc., directed the City Manager to mail ballots to all property owners or customers of record subject to the proposed rates and charges, and to schedule a public hearing as required by Proposition 218 on June 9, 2026, as the deadline for submission of ballots and the end of the voting period; and
A certificate has been filed with the City Clerk setting forth the time and manner of compliance with the requirements of law for mailing notice of the time and place for said Public Hearing and the ballot required by Article XIIID of the California Constitution has been done in the time, form, and manner required by law; and The ballots were mailed to the record owners of any parcels upon which the stormwater service charges are proposed, and any customers who are directly responsible for the payment of stormwater service charges; and The ballots were mailed on April 24, 2026, to 84,819 affected customers and property owners; and
Notice of the time and place of the Public Hearing was published in The Record on May 8 and May 29, 2026; and
The Final Stormwater Rate Study, dated March 2026, containing the proposed rates, was made available at www.stocktonca.gov/StormRates and placed on file with the City Clerk; and
The City Council held the Public Hearing on June 9, 2026, not less than forty-five days after the Ballot was mailed, and at the Public Hearing the City Council tabulated 1278
the ballots for the proposed adjustments to the rates for the stormwater services charges; and
At the close of the Public Hearing, the City received a majority of returned ballots in support of the proposed adjustments for stormwater services charges; and
The City Council is authorized and has determined to approve the proposed stormwater rate adjustments and act accordingly on the matter; now, therefore,

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

1. The matters set forth above are true and correct statements and are made legislative findings and determinations of the City Council and by this reference are made an operative part of this Resolution.

2. The City Council has evaluated and adopted the stormwater service charges at the maximum rates and on the effective dates set forth in Attachment A to the staff report.

3. The City Council finds that the revenues derived from the stormwater service charges established by this Resolution: (a) do not exceed the funds required to provide stormwater services; (b) shall not be used for any other purpose than that for which the rates and charges are imposed; (c) do not exceed the proportional cost of the service attributable to each parcel upon which the charges are imposed; (d) provide services that are immediately available to the customer; and (e) are not levied for general governmental purposes.

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

5. In accordance with the California Environmental Quality Act (CEQA) and the CEQA Guidelines, the City Council has determined that the adjustments in the stormwater service charges are exempt from CEQA pursuant to sections 15378 and section 15273 of the CEQA Guidelines and the Public Resources Code section 21080(b)(8) because: (a) the adjusted charges are for the purpose of meeting operational and maintenance expenses of the aforementioned services; and (b) the charges constitute the creation of a funding mechanism/or other governmental fiscal activity which does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment. The documents and materials that constitute the record of proceedings on which these findings have been based are in the Office of the City Clerk at 425 N. El Dorado Street, Stockton, CA, 95202.If any section, subsection, subdivision, sentence, clause, or phrase in this Resolution or any part thereof is for any reason held to be unconstitutional or invalid, or ineffective by any court of 1279
competent jurisdiction, such decision shall not affect the validity or effectiveness of the remaining portions of this Resolution or any part thereof. The City Council hereby declares that it would have adopted any section irrespective of the fact that any one or more subsections, subdivision, sentences, clauses, or phrases are declared unconstitutional, invalid, or ineffective.

6. All resolutions, ordinances, or administrative actions by the City Council, or parts thereof, that are inconsistent or in conflict with any provision of this Resolution are hereby superseded only to the extent of such inconsistency or conflict.

7. Upon adoption, the new rate will take effect on August 1, 2026. The FY 2026-2027 Fee Schedule will be amended accordingly. Future year rate adjustments will be done with the annual fee schedule process to remain consistent with the Stormwater Rate Study.

PASSED, APPROVED, and ADOPTED: June 9, 2026 .

CHRISTINA FUGAZI
Mayor of the City of Stockton
ATTEST:

KATHERINE ROLAND, CMC, CPMC
City Clerk of the City of Stockton
1280
City of Stockton
Legislation Text
File #: 26-0526, Version: 1
ADOPT THE BUDGET FOR THE FISCAL YEAR 2026-27 CENTRAL STOCKTON LIGHTING MAINTENANCE ASSESSMENT DISTRICT (SINGLE DISTRICT - DISTRICT 4)

RECOMMENDATION
This public hearing is to consider public comments and testimony regarding the Fiscal Year (FY) 2026-27 Central Stockton Lighting Maintenance Assessment District (District) Annual Engineer's Report, budget, and levy of assessments.

After the public hearing, if owners of more than 50 percent of the area of assessable lands within the District have not protested the proposed levy of annual maintenance assessments, it is recommended that the City Council adopt a resolution to:

1. Overrule any and all protests or objections (including all written protests not withdrawn in writing before the conclusion of the public hearing) to the proposed levy of assessments in the District in each zone.

2. Approve and adopt the District's Annual Engineer's Report for the FY 2026-27, containing the budget for each zone, and confirm and levy the assessments for each zone as set forth in the Annual Engineer's Report.

3. Certify that the special assessment(s), fee(s), or charge(s) to be placed on the FY 2026-27 Secured Property Tax bill by the City of Stockton are certified to meet the requirements of Proposition 218 that added Articles XIIIC and XIIID to the California State Constitution.

4. Confirm that the assessments of the annual amount of costs and expenses for the maintenance and operation of the improvements upon the assessable lands in the District, as contained in the Annual Engineer's Report, shall be levied and collected for FY 2026-27. The assessments are in compliance with all laws pertaining to the levy of the annual assessment (State of California Streets and Highways Code Section 22500). The assessments are levied without regard to property valuation. The purpose of the assessments is to pay the costs and expenses for administration, maintenance, and operation of the Central Stockton Lighting Maintenance Assessment District, Zone 4, Oxford Manor.

5. Authorize the City Manager or designee, on behalf of the City Clerk, to file the assessments or a copy thereof certified by the City Clerk with the San Joaquin County Auditor and cause the assessments to be entered on the FY 2026-27 tax roll for the parcels in the District, Zone 4, Oxford Manor, as set forth in the Annual Engineer's Report on file with the City Clerk.

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

Summary
This public hearing is to consider public comments and testimony regarding the FY 2026-27 District's Annual Engineer's Report, budget, and levy of assessments. The Landscaping and Lighting Act of 1972 (Act), under which the District was formed, requires this public hearing and approval of the Annual Engineer's Report, budget, and levy of assessments. The FY 2026-27 Annual Engineer's Report for the District, which contains the budget, assessment amounts, and description of improvements eligible to be maintained, is on file with the City Clerk and is available for online viewing on the City of Stockton website.

The District levies assessments to fund maintenance of specialty streetlights in the Oxford Manor area (Attachment A). All funds generated from the assessments in the Oxford Manor zone can only be used for specific work in that zone.

The assessment formula provides for an annual escalator to the maximum allowable assessment and for adjusting the actual assessment. It is recommended that the FY 2026-27 maximum assessment be increased per the formula in the regional Consumer Price Index (CPI) of 3.00 percent. It is further recommended that the actual FY 2026-27 assessment increase by 3.00 percent over the FY 2025-26 assessment to adjust for inflation and track with the national CPI rate. This recommendation is a result of a comprehensive review and evaluation of current maintenance expenditures, long-term capital needs, and available reserves.

The recommended resolution overrules any and all protests; approves and adopts the District's Annual Engineer's Report for the FY 2026-27 containing the budget, confirms and levies the assessments as set forth in the Annual Engineer's Report; certifies that the assessments meet the requirements of Proposition 218 that added Articles XIIIC and XIIID to the California State Constitution; confirms that the assessments are in compliance with State of California Streets and Highways Code Section 22500, that the assessments are levied without regard to property valuation, and that the assessments are to fund maintenance of streetlights in public rights-of-way; authorizes and directs the City Manager or designee to execute all documents, including, but not limited to, agreements and amendments; and authorizes the City Manager to take appropriate and necessary actions to carry out the purpose and intent of the resolution.

DISCUSSION
Background
The City operates and maintains approximately 20,089 streetlights. In most areas of the City, the cost of operating and maintaining streetlights is funded from the Measure K Fund. However, in the area of central Stockton, a special street lighting District was formed to provide enhanced lighting.

The enhanced lighting consists of more lights per block than a standard design would require and more expensive, non-standard poles and fixtures.

The District was formed in 2011 after achieving a passing vote in a voting process established by City of Stockton Page 2 of 5 Printed on 6/5/2026
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File #: 26-0526, Version: 1
Proposition 218. This process requires all benefiting property owners to be given the opportunity to vote on the establishment of a maintenance assessment district. For an assessment district to be established, a majority of the votes cast must be in favor. The District consists of 278 non-City standard streetlights in the Oxford Manor area (Attachment A) and allows for assessments to be collected for the special benefit received as a result of the non-standard street lighting. The general benefit portion is included in the Public Works Operating budget.

The District sets annual assessments collected by the County with annual property taxes on each taxable parcel contained within the District. These annual assessments provide funding for operation, electricity, maintenance, and other administrative costs associated with the specialty lighting system, including preparing an Annual Engineer's Report and assessment roll. The Annual Engineer's Report contains the District's budget. The budget details the maintenance and administrative costs for the Oxford Manor zone.

The special benefit received by each parcel is directly proportional to the Linear Front Footage (LFF) of each parcel fronting the enhanced lighting corridor or street. Therefore, the assessment per parcel was determined by first defining a "Unit Assessment Rate" for the Oxford Manor zone. This assessment rate was calculated by dividing the total special benefit cost in the zone by the total LFF of the zone. This Unit Assessment Rate (dollars per LFF) was then multiplied by each parcel's LFF to determine the special benefit assessment for each parcel. The actual FY 2025-26 LFF assessment rate was $0.349292. The maximum FY 2025-26 LFF assessment rate was $0.672818.

The District assessment was approved with an annual escalator. The escalator is the greater of 3.00 percent or the increase in the San Francisco-Oakland-Hayward All Urban Consumers Price Index (CPI). The escalator allows the assessment, when necessary, to keep pace with inflation without having to go through the time and expense to ballot the property owners. The maximum allowable assessment annually adjusts by the CPI, while the actual assessment needed to cover a zone's expenses is determined based on the estimated expenses for the fiscal year. The annual increase in calendar year 2025 of the CPI was 3.00 percent. Therefore, the maximum escalator that can be applied to the maximum allowable assessment for FY 2026-27 is 3.00 percent. The maximum allowable assessment has been increased by the maximum allowable escalator each year since the District was formed.

On April 14, 2026, Council adopted Resolution No. 2026-04-14-1210, which preliminarily approved and confirmed the FY 2026-27 Annual Engineer's Report, the proposed actual assessments, set a public hearing for June 9, 2026, and authorized the City Clerk to publish notice of the public hearing.

The Annual Engineer's Report contains the budget, proposed assessment amounts, and a complete description of improvements eligible to be maintained. The Annual Engineer's Report is on file with the City Clerk.

Present Situation
A summary of the proposed FY 2026-27 budget for the District (Attachment B) is contained within the Annual Engineer's Report, which is on file with the City Clerk. The budgeted expenditures include energy use, bulb replacements, administration, replacement reserves, general maintenance, repainting, knockdowns, and contingency. Funding for expenditures is from assessments levied on the properties within the District and Public Works Operating budget.

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The total proposed FY 2026-27 cost of the Oxford Manor lighting is $65,645.43, which is an increase of $1,907.37 from FY 2025-26. The increase is attributable to anticipated increases in utility costs and costs to replace potential pole knockdowns due to vehicle collisions, as well as the 2025 CPI increase of 3.00 percent. Since the reserve is fully funded, and in order to keep the assessment within 3.00 percent of the FY 2025-26 assessment rate, an appropriation from the reserve of $4,726.33 is proposed. The actual FY 2026-27 assessment rate is proposed to be $0.359809 per LFF. The maximum assessment rate is recommended to be increased by the allowed 3.00 percent to $0.693003 per LFF.

At the end of each fiscal year, any unexpended funds are returned to the District's reserve, which can be used to fund major repairs, such as wire and/or conduit replacement, foundation replacements, or other major repair or improvement.

The District was established with the expectation that long-term refurbishment and gradual replacement of equipment would be accomplished utilizing a combination of operating and reserve funds. The reserve was reviewed and determined to be adequate. The District currently generates sufficient revenue for regular operations and has adequate reserves, so no change to the current assessment is in order.

The FY 2026-27 Annual Engineer's Report for the District, which contains the budget, assessment amounts for each property, and a description of improvements eligible to be maintained, is on file with the City Clerk. The assessments fund the special benefit of 278 non-standard streetlights within the District.

After the public hearing, if owners of more than 50 percent of the area of assessable lands within the District have not protested the proposed levy of annual maintenance assessments, it is recommended that the City Council adopt a resolution to:

1. Overrule any and all protests or objections (including all written protests not withdrawn in writing before the conclusion of the public hearing) to the proposed levy of assessments in the District in each zone.

2. Approve and adopt the District's Annual Engineer's Report for the FY 2026-27, containing the budget for each zone, and confirm and levy the assessments for each zone as set forth in the Annual Engineer's Report.

3. Certify that the special assessment(s), fee(s), or charge(s) to be placed on the FY 2026-27 Secured Property Tax bill by the City of Stockton are certified to meet the requirements of Proposition 218 that added Articles XIIIC and XIIID to the California State Constitution.

4. Confirm that the assessments of the annual amount of costs and expenses for the maintenance and operation of the improvements upon the assessable lands in the District, as contained in the Annual Engineer's Report, shall be levied and collected for FY 2026-27. The assessments are in compliance with all laws pertaining to the levy of the annual assessment (State of California Streets and Highways Code Section 22500). The assessments are levied without regard to property valuation. The purpose of the assessments is to pay the costs and City of Stockton Page 4 of 5 Printed on 6/5/2026
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File #: 26-0526, Version: 1
expenses for administration, maintenance, and operation of the Central Stockton Lighting Maintenance Assessment District, Zone 4, Oxford Manor.

5. Authorize the City Manager or designee, on behalf of the City Clerk, to file the assessments or a copy thereof certified by the City Clerk with the San Joaquin County Auditor and cause the assessments to be entered on the FY 2026-27 tax roll for the parcels in the District, Zone 4, Oxford Manor, as set forth in the Annual Engineer's Report on file with the City Clerk.

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.

Public Notification
Notice of the Public Hearing was published in The Record on May 26, 2026. The notice is required to be published a minimum of 10 days prior to the public hearing.

FINANCIAL SUMMARY
Total Proposed FY 2026-27 Assessments $19,764.98
Total Proposed FY 2026-27 Appropriation from Reserves $ 4,726.33 TOTAL PROPOSED FY 2026-27 SPECIAL BENEFIT BUDGET $24,491.31 (FUND 270-001)
Assessments are collected to fund the special benefit costs received by the properties in the District and held in a separate fund (Fund 270-001) for this purpose. Funds for the general benefit costs will be presented to Council for consideration during the normal budget process for the FY 2026-27 and are estimated to be $41,154.12.

Attachment A - Map of Central Stockton Lighting Maintenance Assessment District (Zone 4, Oxford Manor)
Attachment B - Proposed FY 2026-27 Budget
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ATTACHMENT A

ATTACHMENT A
1286
Dept/Division 071-6803
Activity.Elem-Obj OXFORD MANOR

OPERATION AND MAINTENANCE COSTS OXFORD MANOR LIGHTING
Painting (278 Fixtures @ $300/fixture once every 10 years) 540.20-25 $0.00 540.20-25 $14,063.62
540.20-25 $1,472.84
Cost of Energy
Wattage Voltage Count Cost/YR FY 26-27 Cost/YR FY 25-26 Total Energy 100 W 120 274 $127.50 $123.80 540.20-11 $34,935.00
150 W 120 2 $186.92 $181.48 540.20-11 $373.84
200 W 240 2 $252.30 $244.96 540.20-11 $504.60
Total Energy 540.20-11 $35,813.44
ESTIMATED OPERATION AND MAINTENANCE COSTS $51,349.90

DISTRICT ADMINISTRATION COSTS
Engineering Services 540.20-61 $5,721.65
City Administration 540.10- $1,659.48
Publicity/Advertising/Publication/Legal Notice 540.20-52 $563.56 Processing Fees/County Administration 540.20-57 $382.84 TOTAL ESTIMATED DISTRICT ADMIN. EXPENSES $8,327.53
Subtotal (Est. O&M Costs + Est. Admin. Costs) $59,677.43 Contingency; ±10% 540.40-98 $5,968.00
TOTAL ESTIMATED COST OF OXFORD MANOR LIGHTING $65,645.43 .20-25 $14,835.40
.20-25 $901.72
Wattage Voltage Number of
Lights
Cost/YR FY25-26 Cost/YR FY 24-25 Total Energy
100 W 120 170 $127.50 $123.80 .20-11 $21,675.00
Subtotal General Benefit Value $37,412.12
Contingency; ±10% $3,742.00

TOTAL ESTIMATED GENERAL BENEFIT VALUE
$41,154.12

ESTIMATED SPECIAL BENEFIT VALUE TO OXFORD MANOR
Difference between "Oxford Manor Lighting" and "General Benefit Value" $24,491.31

APPROPRIATION FROM RESERVE FOR
CONTINUING APPROPRIATIONS $4,726.33
2026-27 TOTAL AMOUNT TO BE ASSESSED
$19,764.98
Total Oxford Manor Assessable Linear Frontage Footage (LFF) 54,931.84 $0.359809174
GENERAL BENEFIT VALUE, Value determined on 170 lights if lights in the area were installed per City Standard
Central Stockton Lighting Maintenance Assessment District, Oxford Manor Area Budget
Fiscal Year 2026-2027
Knockdown Repair/Replacement; assumes 1 knockdown per year is assumed, cost represents one known down
Bulb Replacement and General Maintenance (278 lights @ 5 year bulb life @ $22.66/bulb) General Benefit of Knockdowns for Standard Fixtures (Assumes standard 30 foot galvanized pole; 1 knockdown per year)
General Benefit of bulb Replacements (Assume 170 lights at City Standard spacing @ 5 year bulb life @ $22.68/bulb)
General Benefit of Cost of Energy
(Total Est. Cost of Oxford Manor Lighting - Total Est. General Benefit - Approp. From Res.) Proposed Actual 2026-27 LFF Unit Assessment Rate (Total Amount To Be Assessed/Assessable LFF)
1 ATTACHMENT B
1287
Resolution No.

STOCKTON CITY COUNCIL

RESOLUTION OVERRULING ANY AND ALL PROTESTS, ADOPTING THE ANNUAL ENGINEER'S REPORT FOR FISCAL YEAR 2026-27, APPROVING THE BUDGET FOR

EACH ZONE, CERTIFYING COMPLIANCE WITH THE REQUIREMENTS OF PROPOSITION 218 AND THE STATE OF CALIFORNIA STREETS AND HIGHWAYS

CODE, AND CONFIRMING AND LEVYING ASSESSMENTS FOR THE CENTRAL

STOCKTON LIGHTING MAINTENANCE ASSESSMENT DISTRICT
On April 14, 2026, the City Council of the City of Stockton adopted Resolution No. 2026-04-14-1210 to preliminarily approve the Annual Engineer's Report for the Fiscal Year (FY) 2026-27 (the "Annual Engineer's Report"), to provide preliminary approval of the proposed budget, and to set a public hearing for the Central Stockton Lighting Maintenance Assessment District (the "District"), pursuant to the Landscaping and Lighting Act of 1972; and
The only zone currently in the District is Zone 4, Oxford Manor, which currently comprises the entirety of the District subject to an annual assessment; and Notice of the public hearing that was held on June 9, 2026, was duly and regularly published in The Record, in the time, form, and manner required by law as evidenced by the declaration on file with the City Clerk; and
At the Public Hearing, the City Council afforded to every interested person an opportunity to make a protest to the Annual Engineer's Report, to the maximum annual assessment, the actual FY 2026-27 assessment, to the proposed budget, or to the proposed method and proportion of assessment, either in writing or orally, and this City Council has considered each protest, if any, and all matters and things pertaining to the Annual Engineer's Report were fully heard and considered by this Council; now, therefore,

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

1. Protests or objections (including all written protests not withdrawn in writing before the conclusion of the public hearing) to the proposed levy of assessments in Zone 4, Oxford Manor, have not been made by the owners of the area of assessable lands subject to more than 50 percent of the total proposed levy of assessments within the District (Zone 4, Oxford Manor), and any and all protests or objections are overruled.

2. The Annual Engineer's Report for the District on file with the City Clerk for FY 2026-27, which includes the budget for Zone 4, Oxford Manor, is approved and 1288
adopted as the method of assessment for Zone 4, Oxford Manor, to be used to pay the costs and expenses for administration, maintenance, and operation.

3. The Council certifies that the special assessment(s), fee(s), or charge(s) as contained in the Annual Engineer's Report and to be placed on the FY 2026-27 Secured Property Tax bill by the City of Stockton are certified to meet the requirements of Proposition 218 that added Articles XIIIC and XIIID to the California State Constitution.

4. The assessments of the annual amount of costs and expenses for the maintenance and operation of the improvements upon the assessable lands in the District, as contained in the Annual Engineer's Report, are hereby approved and confirmed and shall be levied and collected for FY 2026-27. The assessments comply with all laws pertaining to the levy of the annual assessment (California Streets and Highways Code § 22500). The assessments are levied without regard to property valuation. The purpose of the assessments is to pay the costs and expenses for administration, maintenance, and operation of the Central Stockton Lighting Maintenance Assessment District, Zone 4, Oxford Manor.

5. The City Manager or designee, on behalf of the City Clerk, is hereby directed to file the assessments or a copy thereof certified by the City Clerk or other City official with the San Joaquin County Auditor and cause the assessments to be entered on the FY 2026-27 tax roll for the parcels in the District and each Zone within the District as set forth in the Annual Engineer's Report on file with the City Clerk.

6. The City Manager or designee is hereby authorized and directed to execute all documents, including, but not limited to, agreements and amendments.

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

PASSED, APPROVED, and ADOPTED June 9, 2026 .

CHRISTINA FUGAZI
Mayor of the City of Stockton
ATTEST:

KATHERINE ROLAND, CMC, CPMC
City Clerk of the City of Stockton
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City of Stockton
Legislation Text
File #: 26-0531, Version: 1
ADOPT THE BUDGET FOR THE FISCAL YEAR 2026-27 STOCKTON CONSOLIDATED LANDSCAPE MAINTENANCE ASSESSMENT DISTRICT NO. 96-2 (MULTIPLE DISTRICTS - DISTRICT 1, DISTRICT 2, DISTRICT 4, DISTRICT 5, DISTRICT 6)

RECOMMENDATION
This public hearing is to consider public comments and testimony regarding the Fiscal Year (FY) 2026-27 Stockton Consolidated Landscape Maintenance Assessment District No. 96-2 (Consolidated Landscape District) Annual Engineer's Report, budget, and levy of assessments.

After the public hearing, if owners of more than 50 percent of the area of assessable lands within the Consolidated Landscape District have not protested the proposed levy of annual maintenance assessments, it is recommended that the City Council adopt a resolution to:

1. Overrule any and all protests or objections (including all written protests not withdrawn in writing before the conclusion of the public hearing) to the proposed levy of assessments in the Consolidated Landscape District in each zone.

2. Approve and adopt the Consolidated Landscape District's Annual Engineer's Report for the FY 2026-27 containing the budget for each zone and confirm and levy the assessments for each zone as set forth in the Annual Engineer's Report.

3. Certify that the special assessment(s), fee(s), or charge(s) to be placed on the FY 2026-27 Secured Property Tax bill by the City of Stockton are certified to meet the requirements of Proposition 218 that added Articles XIIIC and XIIID to the California State Constitution.

4. Confirm that the assessments of the annual amount of costs and expenses for the maintenance and operation of the improvements upon the assessable lands in the Consolidated Landscape District, as contained in the Annual Engineer's Report, shall be levied and collected for FY 2026-27. The assessments are in compliance with all laws pertaining to the levy of the annual assessment (State of California Streets and Highways Code Section 22500). The assessments are levied without regard to property valuation. The purpose of the assessments is to pay the costs and expenses for maintenance and operation of public parks and landscape improvements in public rights-of-way and public open spaces.

5. Authorize the City Manager or designee, on behalf of the City Clerk, to file the assessments or a copy thereof certified by the City Clerk with the San Joaquin County Auditor and cause the assessments to be entered on the FY 2026-27 tax roll for the parcels in the Consolidated Landscape District and each zone within the Consolidated Landscape District as set forth in the Annual Engineer's Report on file with the City Clerk.

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

Summary
This public hearing is to consider public comments and testimony regarding the FY 2026-27 Consolidated Landscape District's Annual Engineer's Report, budget, and levy of assessments. The Landscaping and Lighting Act of 1972 (Act), under which the Consolidated Landscape District was formed, requires this public hearing and approval of the Annual Engineer's Report, budget, and levy of assessments. The FY 2026-27 Annual Engineer's Report for the Consolidated Landscape District, which contains the budget, assessment amounts, and description of improvements eligible to be maintained, is on file with the City Clerk and is available for online viewing on the City of Stockton website.

The Consolidated Landscape District levies assessments to fund maintenance of public parks, landscape improvements, and streetlights in public rights-of-way and public open spaces in 27 zones across the City. All funds generated from the assessments for each zone can only be used for specific work in that zone.

The assessments for seven zones of the Consolidated Landscape District are fixed and cannot be increased without approval by a majority of the property owners. For FY 2026-27, it is required and recommended that the actual assessment, which is at the maximum, remains the same as FY 2025- 26 for the seven zones with fixed assessments.

The assessment formula for the remaining 20 zones where assessments are levied provides an annual escalator to the maximum allowable assessment and adjusts the actual assessment. It is recommended that the FY 2026-27 maximum assessment be increased per the formula. It is further recommended that the actual FY 2026-27 assessment increase by varying amounts from 3.00 to

46.26 percent in the 20 zones that allow for an annual adjustment. This recommendation is a result of a comprehensive review and evaluation of current maintenance expenditures, long-term capital needs, available reserves, and rapid inflation.

The recommended resolution overrules any and all protests; approves and adopts the Consolidated Landscape District's Annual Engineer's Report for the FY 2026-27 containing the budget for each zone; confirms and levies the assessments for each zone as set forth in the Annual Engineer's Report; certifies that the assessments meet the requirements of Proposition 218 that added Articles XIIIC and XIIID to the California State Constitution; confirms that the assessments are in compliance with State of California Streets and Highways Code Section 22500, that the assessments are levied without regard to property valuation, and that the assessments are to fund maintenance of public parks, landscape improvements, and streetlights in public rights-of-way and public open spaces; authorizes and directs the City Manager or designee to execute all documents, including, but not limited to, agreements and amendments; and authorizes the City Manager to take appropriate and necessary actions to carry out the purpose and intent of the resolution.

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Landscape District.

DISCUSSION
Background
On February 26, 1996, Council adopted Resolution No. 96-0084 that consolidated the eight Landscape Maintenance Districts that existed at that time into a single Consolidated Landscape District. The City used the provisions of the Act to establish the original individual districts and the Consolidated Landscape District. The Act contains provisions for the City to form an assessment district, or annex territory to an existing district, for the maintenance and operation of improvements that impart a special benefit to an area. Though the title of the Act references landscaping and lighting, a district can be formed to maintain a variety of improvements. These improvements include but are not limited to landscaping, fountains, ornamental structures, public lighting (such as streetlights and traffic signals), walls, irrigation, parks, and park equipment. The Consolidated Landscape District provides for the maintenance of these types of improvements in certain subdivisions throughout the City.

The Consolidated Landscape District sets annual assessments collected by the County with annual property taxes on each taxable parcel contained within the Consolidated Landscape District. These annual assessments provide funding for maintenance of the improvements, parks, inspection, repair and replacement of improvements, and other associated administrative costs, including preparing an Annual Engineer's Report and assessment roll. The Annual Engineer's Report contains the Consolidated Landscape District's budget. The budget details the maintenance and administrative costs for all affected zones. The property owners are responsible for funding only those improvements within their zone.

The assessments are apportioned in a manner to distribute the amounts among all assessable parcels in proportion to the special benefit conferred on each parcel. Each year, all properties are evaluated to determine if they meet the criteria to be assessed. A dwelling unit equivalent factor (dueF) is assigned to each parcel if they are to be assessed. The dueF is based on the parcel's use.

A single-family residential lot is equivalent to one dueF. The dueF for other classifications of properties, such as multi-family or commercial, is determined by the Allocation of Costs and Method of Assessment Spread contained in the Annual Engineer's Report.

There are 34 zones in the Consolidated Landscape District. During FY 2025-26, no new zones were formed, and no new territory was annexed to any of the existing zones. Assessments are levied in 27 zones (Attachment A). Assessments are not levied in the remaining seven zones as there are no improvements to maintain.

Of the 27 zones where assessments are levied, seven of the zones (A-1 Weber/Sperry, A-2 Morada West, B-1 Long Park, B-2 Weston Ranch, B-3 Weston Park, C-1 Spanos East, and D-1 Bridgeport Trails) do not have a provision for an annual increase to the assessment. The assessment in these districts is at the same level as when the zones were originally formed in the early 1990s. Any increase in the annual assessment would have to be approved by the majority of the affected property owners. Consequently, not all of the current assessments collected are used for services. A portion of the current assessment collected is reserved to be able to afford future cost increases City of Stockton Page 3 of 8 Printed on 6/5/2026
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resulting from inflation.

Assessments in the remaining 20 zones were approved with an annual escalator. The escalator is the greater of 3.00 percent or the increase in the San Francisco-Oakland-Hayward All Urban Consumers Price Index (CPI). The escalator allows the assessment, when necessary, to keep pace with inflation without having to go through the time and expense to ballot the property owners. The maximum allowable assessment annually adjusts by the CPI, while the actual assessment needed to cover a zone's expenses is determined based on the estimated expenses for the fiscal year. The annual increase in calendar year 2025 of the CPI was 3.00 percent. Therefore, the maximum escalator that can be applied to the maximum allowable assessment for FY 2026-27 is 3.00 percent.

On April 14, 2026, Council adopted Resolution No. 2026-04-14-1211, which preliminarily approved and confirmed the FY 2026-27 Annual Engineer's Report, the proposed actual assessments, set a public hearing for June 9, 2026, and authorized the City Clerk to publish notice of the public hearing.

The Annual Engineer's Report contains the budget, proposed assessment amounts, and a complete description of improvements eligible to be maintained. The Annual Engineer's Report is on file with the City Clerk.

Present Situation
A summary of the proposed FY 2026-27 budget for the Consolidated Landscape District (Attachment B) is contained within the Annual Engineer’s Report, which is on file with the City Clerk. It includes the proposed per dueF/single-family dwelling assessment for each zone where an assessment is proposed to be levied. The budgeted expenditures include contracted maintenance, utilities, administration, repair and replacement of plant material and infrastructure, allocation to the replacement reserve, and a contingency. The budgeted revenues are from assessments of the property owners. For the zones that have a provision for an annual escalator, it is proposed that the maximum allowable assessment be increased by 3.00 percent and the actual assessment be increased by up to 46.26 percent. Refer to the Zones with Annual Escalator section of this report for the yearly comparison of the actual increase per zone.

The overall budget for FY 2026-27 is based on current expenditure projections and is approximately $7.949 million. This increase of approximately $713,928 from the FY 2025-26 budget is primarily attributable to the addition of new parks, new streetscape landscaping, court resurfacing, and various other projects at the existing parks. The anticipated cost increases across all budget line items are due to prior rapid inflation that is beginning to slow.

For FY 2026-27, it is recommended the assessment remain the same for the seven zones with fixed assessments. For the 20 zones where the assessment formula provides for an escalator, it is recommended that the maximum assessment be increased per the formula from the previous fiscal year. It is further recommended that the actual FY 2026-27 assessment increase by varying amounts from 3.00 to 46.26 percent in the 20 zones that allow for an annual adjustment. This recommendation is a result of a comprehensive review and evaluation of current maintenance expenditures, long-term capital needs, the Reserve for Continuing Appropriations fund balances, and prior fiscal year rapid inflation.

The reserve funds have accumulated over a number of years to fund the eventual replacement of improvements such as turf, trees, shrubs, irrigation system components, masonry block and pre-cast City of Stockton Page 4 of 8 Printed on 6/5/2026
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concrete back-up walls, and park improvements such as park play equipment, picnic structures, and bathroom buildings when those improvements reach the end of their service life. In zones where street lighting is an improvement whose maintenance is funded, the annual assessment is set at a rate to fund re-lamping and knock-down repairs/replacement as needed.

The comprehensive review and evaluation were completed by staff following the completion of a capital needs analysis by Siegfried Engineering, Inc. This combined effort analyzed current maintenance tasks, long-term capital replacement needs, and reserve fund balance for each zone.

The analysis identified additional maintenance/service tasks that should be performed, quantified service life, and replacement estimates for the various improvements eligible to be funded by the Consolidated Landscape District. It is recommended the reserve amount be set aside each year. The recommended reserve set aside is based on the current amount that is in reserve, the appropriate reserve balance for each zone (this number changes as the zone ages), and the recommended adjustment to each zone's assessment to reach those levels (Attachment C).

Zones with Fixed Assessments
Zones A-1, A-2, B-1, B-2, B-3, C-1, and D-1 do not have a provision for an annual increase to the maximum allowable assessment. Any increase in the annual assessment in these zones would have to be approved by a majority of the affected property owners. In these seven zones, there is a request for an appropriation from the reserve to balance each zone's budget. Each zone's budget anticipates contracted costs such as routine scheduled maintenance service and utilities and includes eventual but unscheduled expenditures such as wall repairs. If the eventual but unscheduled expenditure were not budgeted, a mid-year appropriation requiring City Council action would have to be processed. To avoid a mid-year appropriation, funds for this type of eventual but unscheduled expenditure are budgeted. If the funds are not used, they are returned to the zone at the end of the fiscal year and are available for the next year. An appropriation from the reserve is the only way to balance the budget and efficiently provide for these types of eventual but unscheduled expenditures. Ultimately, given increases in costs in future years, the reserves in each of the seven zones will be depleted. The zones will become unable to fund maintenance at the level currently provided. Current projections are that the reserves in Zones B-1, B-2, B-3, and D-1 will be adequate to continue the current service levels for the next five years.

Reserves in Zones A-1, A-2, and C-1 are insufficient to continue appropriating funds at prior-year levels without the zones falling into insolvency within the next two years. It is recommended that these three zones cease funding wall repairs. All walls are a development requirement and are constructed on private property. Stockton Municipal Code Section 8.36.040.D obligates the property owner to repair any wall constructed as a condition of development.

The following continued actions from the prior fiscal year are further recommended:
· Zone A-1 - Reduce the frequency of landscape maintenance services and irrigation. Water for irrigating the East Bay Municipal Utilities District property between Lorraine Avenue and West Lane is approximately 22 percent of the total proposed Zone A-1 Budget. · Zone C-1 -A reduction in maintenance services is necessary without alternative funding. When Zone C-1 was originally formed, the budget was set based on maintaining only the street landscaping installed with the development. Baxter Park's maintenance cost was added to City of Stockton Page 5 of 8 Printed on 6/5/2026
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Zone C-1 in 1997 without an increase in the existing assessment. Annually increasing park maintenance costs are taking a larger percentage of the budget and requiring an everincreasing appropriation from the reserve. If appropriations continue at the previous year's magnitude, Zone C-1 will be insolvent in three years.

The table below shows the FY 2025-26 actual assessment, the recommended FY 2026-27 actual assessment, and what the per dueF assessment would be for budgeted expenditures. The 'Cost per dueF for Budgeted Expenditures' does not include an amount to capitalize a replacement reserve or fund replacement of larger expense items such as extensive landscape rehabilitation or booster pump replacement.

Zone FY 2025-26 FY 2026-27 Cost per dueF for
Actual (Fixed) Actual (Fixed) Budgeted Expenditures
A-1 $46.90 $46.90 $108.35
A-2 $79.88 $79.88 $115.05
B-1 $84.00 $84.00 $210.24
B-2 $117.82 $117.82 $274.73
B-3 $24.00 $24.00 $42.65
C-1 $119.24 $119.24 $203.45
D-1 $85.00 $85.00 $204.61
Zones with an Annual Escalator
It is recommended that the actual FY 2026-27 assessment increase by up to 46.26 percent in the 20 zones that allow for an annual adjustment. This recommendation is a result of a comprehensive review and evaluation of current maintenance expenditures, long-term capital needs, the Reserve for Continuing Appropriations fund balances, and rapid inflation.

The recommended budget includes an appropriation from the reserves to fully fund each zone's operating budget. The table below shows the FY 2025-26 actual assessment, the recommended FY 2026-27 actual assessment, and the FY 2026-27 maximum assessment. Where the actual assessments are nearing the maximum allowable assessments, the actual assessment has increased by 3.00 percent. These percent differences are not a uniform 3.00 percent due to rounding and truncating required to obtain an assessment divisible by two. In an effort to begin replenishing the appropriation reserves, the remaining assessments whose actual assessment is not nearing the maximum allowable assessment, the percentage increase varies between 3.00 percent and 46.26 percent.

Zone FY 2025-26 FY 2026-27 Dollar Percentage FY 2026-27 Actual Actual Difference Difference Maximum
A-3 $330.66 $340.60 $9.94 3.01% $340.60
A-4 $237.88 $272.98 $35.10 14.76% $332.83
A-5 $902.24 $929.30 $27.06 3.00% $1,846.62
A-6 $407.80 $476.88 $69.08 16.94% $793.79
A-7 $256.64 $289.46 $32.82 12.79% $971.48
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A-10 $210.24 $307.50 $97.26 46.26% $518.04
B-4 $119.32 $122.88 $3.56 2.98% $122.93
B-5 $104.88 $108.02 $3.14 3.00% $232.96
C-2 $301.64 $310.68 $9.04 3.00% $310.71
C-3 $259.74 $267.54 $7.80 7.13% $267.55
C-4 $108.80 $112.06 $3.26 3.00% $354.26
C-6 $137.20 $166.60 $29.40 21.43% $246.53
C-7/7A $476.76 $491.06 $14.30 3.00% $579.15
D-3 $298.10 $307.04 $8.94 3.00% $323.62
D-4 $149.18 $153.64 $4.46 3.00% $1,541.62
D-6 $123.16 $126.84 $3.68 3.00% $629.79
E-1 $273.70 $286.02 $12.32 4.50% $296.47
E-3 $520.52 $540.24 $19.72 3.79% $1,056.60
E-4 $109.56 $116.18 $6.62 3.00% $375.13
E-5 $166.50 $171.50 $5.00 3.00% $650.97
The FY 2026-27 Annual Engineer's Report for the Consolidated Landscape District, which contains the budget, assessment amounts, and a description of improvements eligible to be maintained, is on file with the City Clerk. The assessments fund maintenance of over four million square feet of street landscaping, 68 acres of open space, 42 miles of back-up walls, 10.5 miles of bicycle/pedestrian paths, and 14 parks totaling over 120 acres. A brief summary of the improvements eligible to be maintained by each zone and the proposed actual assessment and proposed maximum assessment per dueF for each zone is contained in Attachment C.

After the public hearing, if owners of more than 50 percent of the area of assessable lands within the Consolidated Landscape District have not protested the proposed levy of annual maintenance assessments, it is recommended that the City Council adopt a resolution to:

1. Overrule any and all protests or objections (including all written protests not withdrawn in writing before the conclusion of the public hearing) to the proposed levy of assessments in the Consolidated Landscape District in each zone.

2. Approve and adopt the Consolidated Landscape District's Annual Engineer's Report for the FY 2026-27 containing the budget for each zone and confirm and levy the assessments for each zone as set forth in the Annual Engineer's Report.

3. Certify that the special assessment(s), fee(s), or charge(s) to be placed on the FY 2026-27 Secured Property Tax bill by the City of Stockton are certified to meet the requirements of Proposition 218 that added Articles XIIIC and XIIID to the California State Constitution.

4. Confirm that the assessments of the annual amount of costs and expenses for the maintenance and operation of the improvements upon the assessable lands in the Consolidated Landscape District, as contained in the Annual Engineer's Report, shall be levied and collected for FY 2026-27. The assessments are in compliance with all laws pertaining to the levy of the annual assessment (State of California Streets and Highways Code Section 22500). The assessments are levied without regard to property valuation. The purpose of the assessments is to pay the costs and expenses for maintenance and operation of public parks and landscape improvements in public rights-of-way and public open spaces.

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5. Authorize the City Manager or designee, on behalf of the City Clerk, to file the assessments or a copy thereof certified by the City Clerk with the San Joaquin County Auditor and cause the assessments to be entered on the FY 2026-27 tax roll for the parcels in the Consolidated Landscape District and each zone within the Consolidated Landscape District as set forth in the Annual Engineer's Report on file with the City Clerk.

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.

Financial Health of Zones
Later this year, Public Works staff will prepare a work plan to address zone shortfalls with deliberate rate escalators to gain relief within the next five years. As noted previously, several zones, either with fixed assessments or annual escalators, are on track for becoming insolvent. In some cases, special benefits are no longer being provided, and fund reserves have sustained their respective operation.

To implement this future work plan, the City will need to seek approval through the constitutional mandates of the Proposition 218 election process.

Public Notification
Notice of the Public Hearing was published in The Record on May 26, 2026. The notice is required to be published a minimum of 10 days prior to the public hearing.

FINANCIAL SUMMARY
Total Proposed FY 2026-27 Assessments $5,722,123
Total Proposed FY 2026-27 Appropriation from Reserves $2,226,990 TOTAL PROPOSED FY 2026-27 BUDGET $7,949,113
TOTAL FY 2025-26 BUDGET $7,235,185
INCREASE/(DECREASE) $713,928
The requested appropriation from the reserves will leave an estimated $5,787,014.87 in total reserve funds available for future programming. The reserve analysis recommends that there should be a total of approximately $20,048,719.19 in reserve. Additional details for all zones are included in Attachment C.

The cost shortfall for Baxter Park of $22,500 may be budgeted in the Parks Operating fund through the annual budgeting process; otherwise, maintenance services at Baxter Park may be reduced accordingly. The City makes no financial contribution to the Consolidated Landscape District. All fees, costs, and expenses, including staff costs, are paid from the proceeds of the annual assessments to be levied.

Attachment A - Vicinity Map
Attachment B - Proposed FY 2026-27 Budget
Attachment C - Summary of Zones
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STOCKTON CONSOLIDATED LANDSCAPE
MAINTENANCE ASSESSMENT DISTRICT NO. 96-2

ATTACHMENT A
1298
Dept./Division 072-6907 072-6913
Fiscal Year 2026-2027
FY 26-27 Total
Estimated
Expenditure
Activity. Elem-obj WEBER
SPERRY
MORADA
WEST
A-1 A-2

MAINTENANCE, REPAIRS AND UTILITIES
Landscape and Open Spaces
Contracted Scheduled Landscape and Open Spaces Services Subtotal .20-25 Contracted Scheduled Services $1,135,642.01 590.20-25 63,364.00 2,750.00 Incidental Services - -
Subtotal Incidental Services $412,437.00 590.20-25 4,294.00 136.00 TOTAL .20-25 LANDSCAPE & OPEN SPACES SERVICES $1,548,079.01 590.20-25 67,658.00 2,886.00 Landscape and Open Spaces Utilities - -
TOTAL LANDSCAPE AND OPEN SPACES UTILITIES $1,012,515.00 33,206.00 1,009.00 TOTAL ESTIMATED LANDSCAPE AND OPEN SPACES EXPENSES $2,560,594.01 100,864.00 3,895.00 Walls/Signs/Bridge Railings - -
TOTAL ESTIMATED WALL/SIGN/BRIDGE RAIL EXPENSES $575,997.00 - - GRAFFITI ABATEMENT, performed by Neighborhood Services $83,385.00 590.20-67 2,681.00 336.00 Parks - -
Contracted Scheduled Park Services - -
Subtotal .20-25 Contracted Scheduled Park Services $961,115.10 - - Incidental Parks Services - -
Subtotal Incidental Services $642,195.00 590.20-25 - -
TOTAL .20-25 PARKS SERVICES $1,603,310.10 590.20-25 - - Parks Utilities - -
TOTAL PARKS UTILITIES $717,245.00 - -
Graffiti Abatement in Parks - By PW Staff $31,815.00 590.10- - - TOTAL ESTIMATED PARKS EXPENSES $2,352,370.10 - -
Materials and Supplies - -
TOTAL ESTIMATED MATERIALS AND SUPPLIES $55,898.00 590.30-50 845.00 148.00 Street Lights - -
TOTAL STREET LIGHT MAINTENANCE & REPAIRS $172,885.00 - - Street Light Utilities - -
TOTAL STREET LIGHTS UTILITIES $73,050.00 - -
TOTAL ESTIMATED STREET LIGHTS EXPENSES $245,935.00 - -
SUBTOTAL ESTIMATED EXPENSES $5,874,179.11 104,390.00 4,379.00 CONTINGENCY; Varies 0 to 10±% of Subtotal Estimated Expenses $551,972.00 590.40-98 5,220.00 438.00 SPECIAL DIST./STORM BASIN MAINT. DIST. $9,661.00 640.90-74 - - TOTAL ESTIMATED MAINT/UTIL/REPAIR EXPENSES $6,435,812.11 109,610.00 4,817.00

REPLACEMENT RESERVE - -
Replacement Reserve: L/S, Walls, Lights $101,766.00 590.20-25 - - Replacement Reserve: Park $51,812.00 590.20-25 - -
TOTAL REPLACEMENT RESERVE $153,578.00 590.20-25 - -

DISTRICT ADMINISTRATION - -
Subtotal District Administration Expenses $1,247,397.00 32,281.00 5,243.00 CONTINGENCY: Varies 0 to 10±% of Subtotal Admin. Expenses $112,345.00 590.40-98 1,615.00 525.00 TOTAL ESTIMATED DISTRICT ADMIN. EXPENSES $1,359,742.00 33,896.00 5,768.00

TOTAL ESTIMATED REVENUE REQUIRED
2026-2027 FISCAL YEAR $7,949,113.11 143,506.00 10,585.00 TOTAL APPROPRIATION OR (REPLENISHMENT) ON RESERVE $2,226,990.26 81,388.82 3,236.04

TOTAL ESTIMATED ASSESSMENT
2026-2027 FISCAL YEAR $5,722,122.85 62,117.18 7,348.96
2026-2027 Proposed Potential per dueF Assessment $46.90 $79.88 2026-2027 Max. Possible per dueF Assessment $46.90 $79.88 2026-2027 Total dueF 1324.46 92.00
Stockton Consolidated Landscape Maintenance Assessment District 96-2 Budget 1 ATTACHMENT B
1299
Dept./Division
Fiscal Year 2026-2027
FY 26-27 Total
Estimated
Expenditure
Activity. Elem-obj

MAINTENANCE, REPAIRS AND UTILITIES
Landscape and Open Spaces
Contracted Scheduled Landscape and Open Spaces Services Subtotal .20-25 Contracted Scheduled Services $1,135,642.01 590.20-25 Incidental Services
Subtotal Incidental Services $412,437.00 590.20-25
TOTAL .20-25 LANDSCAPE & OPEN SPACES SERVICES $1,548,079.01 590.20-25 Landscape and Open Spaces Utilities
TOTAL LANDSCAPE AND OPEN SPACES UTILITIES $1,012,515.00 TOTAL ESTIMATED LANDSCAPE AND OPEN SPACES EXPENSES $2,560,594.01 Walls/Signs/Bridge Railings
TOTAL ESTIMATED WALL/SIGN/BRIDGE RAIL EXPENSES $575,997.00 GRAFFITI ABATEMENT, performed by Neighborhood Services $83,385.00 590.20-67 Parks
Contracted Scheduled Park Services
Subtotal .20-25 Contracted Scheduled Park Services $961,115.10 Incidental Parks Services
Subtotal Incidental Services $642,195.00 590.20-25
TOTAL .20-25 PARKS SERVICES $1,603,310.10 590.20-25
Parks Utilities
TOTAL PARKS UTILITIES $717,245.00
Graffiti Abatement in Parks - By PW Staff $31,815.00 590.10- TOTAL ESTIMATED PARKS EXPENSES $2,352,370.10
Materials and Supplies
TOTAL ESTIMATED MATERIALS AND SUPPLIES $55,898.00 590.30-50 Street Lights
TOTAL STREET LIGHT MAINTENANCE & REPAIRS $172,885.00
Street Light Utilities
TOTAL STREET LIGHTS UTILITIES $73,050.00
TOTAL ESTIMATED STREET LIGHTS EXPENSES $245,935.00
SUBTOTAL ESTIMATED EXPENSES $5,874,179.11
CONTINGENCY; Varies 0 to 10±% of Subtotal Estimated Expenses $551,972.00 590.40-98 SPECIAL DIST./STORM BASIN MAINT. DIST. $9,661.00 640.90-74 TOTAL ESTIMATED MAINT/UTIL/REPAIR EXPENSES $6,435,812.11

REPLACEMENT RESERVE
Replacement Reserve: L/S, Walls, Lights $101,766.00 590.20-25 Replacement Reserve: Park $51,812.00 590.20-25
TOTAL REPLACEMENT RESERVE $153,578.00 590.20-25

DISTRICT ADMINISTRATION
Subtotal District Administration Expenses $1,247,397.00 CONTINGENCY: Varies 0 to 10±% of Subtotal Admin. Expenses $112,345.00 590.40-98 TOTAL ESTIMATED DISTRICT ADMIN. EXPENSES $1,359,742.00

TOTAL ESTIMATED REVENUE REQUIRED
2026-2027 FISCAL YEAR $7,949,113.11
TOTAL APPROPRIATION OR (REPLENISHMENT) ON RESERVE $2,226,990.26

TOTAL ESTIMATED ASSESSMENT
2026-2027 FISCAL YEAR $5,722,122.85
2026-2027 Proposed Potential per dueF Assessment
2026-2027 Max. Possible per dueF Assessment
2026-2027 Total dueF
Stockton Consolidated Landscape Maintenance Assessment District 96-2 Budget 072-6915 072-6914

LA MORADA BLOSSOM
RANCH
A-3 A-4
255,564.00 7,103.00
- -
79,882.00 6,906.00
335,446.00 14,009.00
- -
164,678.00 11,652.00
500,124.00 25,661.00
- -
88,365.00 26,778.00
6,695.00 671.00
- -
- -
107,577.00 26,124.33
- -
63,630.00 9,953.00
171,207.00 36,077.33
- -
53,516.00 14,193.00
3,145.00 525.00
227,868.00 50,795.33
- -
9,746.00 1,329.00
- -
- -
- -
- -
- -
832,798.00 105,234.33
83,280.00 9,472.00
- -
916,078.00 114,706.33
- -
91,858.00 -
34,261.00 -
126,118.00 -
- -
179,578.00 23,634.00
16,163.00 2,128.00
195,741.00 25,762.00
1,237,937.00 140,468.33
74,760.86 40,830.63
1,163,176.14 99,637.70
$340.60 $272.98
$340.60 $332.83
3415.08 365.00
1 ATTACHMENT B
1300
Dept./Division
Fiscal Year 2026-2027
FY 26-27 Total
Estimated
Expenditure
Activity. Elem-obj

MAINTENANCE, REPAIRS AND UTILITIES
Landscape and Open Spaces
Contracted Scheduled Landscape and Open Spaces Services Subtotal .20-25 Contracted Scheduled Services $1,135,642.01 590.20-25 Incidental Services
Subtotal Incidental Services $412,437.00 590.20-25
TOTAL .20-25 LANDSCAPE & OPEN SPACES SERVICES $1,548,079.01 590.20-25 Landscape and Open Spaces Utilities
TOTAL LANDSCAPE AND OPEN SPACES UTILITIES $1,012,515.00 TOTAL ESTIMATED LANDSCAPE AND OPEN SPACES EXPENSES $2,560,594.01 Walls/Signs/Bridge Railings
TOTAL ESTIMATED WALL/SIGN/BRIDGE RAIL EXPENSES $575,997.00 GRAFFITI ABATEMENT, performed by Neighborhood Services $83,385.00 590.20-67 Parks
Contracted Scheduled Park Services
Subtotal .20-25 Contracted Scheduled Park Services $961,115.10 Incidental Parks Services
Subtotal Incidental Services $642,195.00 590.20-25
TOTAL .20-25 PARKS SERVICES $1,603,310.10 590.20-25
Parks Utilities
TOTAL PARKS UTILITIES $717,245.00
Graffiti Abatement in Parks - By PW Staff $31,815.00 590.10- TOTAL ESTIMATED PARKS EXPENSES $2,352,370.10
Materials and Supplies
TOTAL ESTIMATED MATERIALS AND SUPPLIES $55,898.00 590.30-50 Street Lights
TOTAL STREET LIGHT MAINTENANCE & REPAIRS $172,885.00
Street Light Utilities
TOTAL STREET LIGHTS UTILITIES $73,050.00
TOTAL ESTIMATED STREET LIGHTS EXPENSES $245,935.00
SUBTOTAL ESTIMATED EXPENSES $5,874,179.11
CONTINGENCY; Varies 0 to 10±% of Subtotal Estimated Expenses $551,972.00 590.40-98 SPECIAL DIST./STORM BASIN MAINT. DIST. $9,661.00 640.90-74 TOTAL ESTIMATED MAINT/UTIL/REPAIR EXPENSES $6,435,812.11

REPLACEMENT RESERVE
Replacement Reserve: L/S, Walls, Lights $101,766.00 590.20-25 Replacement Reserve: Park $51,812.00 590.20-25
TOTAL REPLACEMENT RESERVE $153,578.00 590.20-25

DISTRICT ADMINISTRATION
Subtotal District Administration Expenses $1,247,397.00 CONTINGENCY: Varies 0 to 10±% of Subtotal Admin. Expenses $112,345.00 590.40-98 TOTAL ESTIMATED DISTRICT ADMIN. EXPENSES $1,359,742.00

TOTAL ESTIMATED REVENUE REQUIRED
2026-2027 FISCAL YEAR $7,949,113.11
TOTAL APPROPRIATION OR (REPLENISHMENT) ON RESERVE $2,226,990.26

TOTAL ESTIMATED ASSESSMENT
2026-2027 FISCAL YEAR $5,722,122.85
2026-2027 Proposed Potential per dueF Assessment
2026-2027 Max. Possible per dueF Assessment
2026-2027 Total dueF
Stockton Consolidated Landscape Maintenance Assessment District 96-2 Budget 072-6922 072-6923

WEBER WOODS BLOSSOM

CAMERA/
SPERRY
A-5 A-6
1,279.00 33,878.00
- -
3,827.00 13,673.00
5,106.00 47,551.00
- -
2,516.00 27,449.00
7,622.00 75,000.00
- -
20,083.00 28,120.00
336.00 13,389.00
- -
- -
34,926.26 -
- -
57,250.00 -
92,176.26 -
- -
46,197.00 -
1,535.00 -
- 139,908.26
- -
381.00 2,302.00
- -
- -
- -
- -
- -
28,422.00 258,719.26
2,558.00 25,872.00
- -
30,980.00 284,591.26
- -
- -
- -
- -
- -
10,002.00 53,477.00
901.00 4,813.00
10,903.00 58,290.00
41,883.00 342,881.26
26,084.90 (2,856.74)
15,798.10 345,738.00
$929.30 $476.88
$1,846.62 $793.79

17.00 725.00
1 ATTACHMENT B
1301
Dept./Division
Fiscal Year 2026-2027
FY 26-27 Total
Estimated
Expenditure
Activity. Elem-obj

MAINTENANCE, REPAIRS AND UTILITIES
Landscape and Open Spaces
Contracted Scheduled Landscape and Open Spaces Services Subtotal .20-25 Contracted Scheduled Services $1,135,642.01 590.20-25 Incidental Services
Subtotal Incidental Services $412,437.00 590.20-25
TOTAL .20-25 LANDSCAPE & OPEN SPACES SERVICES $1,548,079.01 590.20-25 Landscape and Open Spaces Utilities
TOTAL LANDSCAPE AND OPEN SPACES UTILITIES $1,012,515.00 TOTAL ESTIMATED LANDSCAPE AND OPEN SPACES EXPENSES $2,560,594.01 Walls/Signs/Bridge Railings
TOTAL ESTIMATED WALL/SIGN/BRIDGE RAIL EXPENSES $575,997.00 GRAFFITI ABATEMENT, performed by Neighborhood Services $83,385.00 590.20-67 Parks
Contracted Scheduled Park Services
Subtotal .20-25 Contracted Scheduled Park Services $961,115.10 Incidental Parks Services
Subtotal Incidental Services $642,195.00 590.20-25
TOTAL .20-25 PARKS SERVICES $1,603,310.10 590.20-25
Parks Utilities
TOTAL PARKS UTILITIES $717,245.00
Graffiti Abatement in Parks - By PW Staff $31,815.00 590.10- TOTAL ESTIMATED PARKS EXPENSES $2,352,370.10
Materials and Supplies
TOTAL ESTIMATED MATERIALS AND SUPPLIES $55,898.00 590.30-50 Street Lights
TOTAL STREET LIGHT MAINTENANCE & REPAIRS $172,885.00
Street Light Utilities
TOTAL STREET LIGHTS UTILITIES $73,050.00
TOTAL ESTIMATED STREET LIGHTS EXPENSES $245,935.00
SUBTOTAL ESTIMATED EXPENSES $5,874,179.11
CONTINGENCY; Varies 0 to 10±% of Subtotal Estimated Expenses $551,972.00 590.40-98 SPECIAL DIST./STORM BASIN MAINT. DIST. $9,661.00 640.90-74 TOTAL ESTIMATED MAINT/UTIL/REPAIR EXPENSES $6,435,812.11

REPLACEMENT RESERVE
Replacement Reserve: L/S, Walls, Lights $101,766.00 590.20-25 Replacement Reserve: Park $51,812.00 590.20-25
TOTAL REPLACEMENT RESERVE $153,578.00 590.20-25

DISTRICT ADMINISTRATION
Subtotal District Administration Expenses $1,247,397.00 CONTINGENCY: Varies 0 to 10±% of Subtotal Admin. Expenses $112,345.00 590.40-98 TOTAL ESTIMATED DISTRICT ADMIN. EXPENSES $1,359,742.00

TOTAL ESTIMATED REVENUE REQUIRED
2026-2027 FISCAL YEAR $7,949,113.11
TOTAL APPROPRIATION OR (REPLENISHMENT) ON RESERVE $2,226,990.26

TOTAL ESTIMATED ASSESSMENT
2026-2027 FISCAL YEAR $5,722,122.85
2026-2027 Proposed Potential per dueF Assessment
2026-2027 Max. Possible per dueF Assessment
2026-2027 Total dueF
Stockton Consolidated Landscape Maintenance Assessment District 96-2 Budget 072-6929 072-6930
HUNTER
RIDGE

CANNERY
PARK
A-7 A-10
31,876.00 151,782.01
- -
12,440.00 5,383.00
44,316.00 157,165.01
- -
21,428.00 35,000.00
65,744.00 192,165.01
- -
28,120.00 20,083.00
10,043.00 1,342.00
- -
- -
50,281.67 36,000.00
- -
14,038.00 5,200.00
64,319.67 41,200.00
- -
26,251.00 24,200.00
1,013.00 -
91,583.67 65,400.00
- -
2,265.00 780.00
- -
18,478.00 18,478.00
- -
2,414.00 8,302.00
20,892.00 26,780.00
218,647.67 306,550.01
19,679.00 27,590.00
- -
238,326.67 334,140.01
- -
- -
- -
- -
- -
47,692.00 21,548.00
4,293.00 1,940.00
51,985.00 23,488.00
290,311.67 357,628.01
86,242.37 (26,746.99)
204,069.30 384,375.00
$289.46 $307.50
$971.48 $518.04
705.00 1250.00
1 ATTACHMENT B
1302
Dept./Division
Fiscal Year 2026-2027
FY 26-27 Total
Estimated
Expenditure
Activity. Elem-obj

MAINTENANCE, REPAIRS AND UTILITIES
Landscape and Open Spaces
Contracted Scheduled Landscape and Open Spaces Services Subtotal .20-25 Contracted Scheduled Services $1,135,642.01 590.20-25 Incidental Services
Subtotal Incidental Services $412,437.00 590.20-25
TOTAL .20-25 LANDSCAPE & OPEN SPACES SERVICES $1,548,079.01 590.20-25 Landscape and Open Spaces Utilities
TOTAL LANDSCAPE AND OPEN SPACES UTILITIES $1,012,515.00 TOTAL ESTIMATED LANDSCAPE AND OPEN SPACES EXPENSES $2,560,594.01 Walls/Signs/Bridge Railings
TOTAL ESTIMATED WALL/SIGN/BRIDGE RAIL EXPENSES $575,997.00 GRAFFITI ABATEMENT, performed by Neighborhood Services $83,385.00 590.20-67 Parks
Contracted Scheduled Park Services
Subtotal .20-25 Contracted Scheduled Park Services $961,115.10 Incidental Parks Services
Subtotal Incidental Services $642,195.00 590.20-25
TOTAL .20-25 PARKS SERVICES $1,603,310.10 590.20-25
Parks Utilities
TOTAL PARKS UTILITIES $717,245.00
Graffiti Abatement in Parks - By PW Staff $31,815.00 590.10- TOTAL ESTIMATED PARKS EXPENSES $2,352,370.10
Materials and Supplies
TOTAL ESTIMATED MATERIALS AND SUPPLIES $55,898.00 590.30-50 Street Lights
TOTAL STREET LIGHT MAINTENANCE & REPAIRS $172,885.00
Street Light Utilities
TOTAL STREET LIGHTS UTILITIES $73,050.00
TOTAL ESTIMATED STREET LIGHTS EXPENSES $245,935.00
SUBTOTAL ESTIMATED EXPENSES $5,874,179.11
CONTINGENCY; Varies 0 to 10±% of Subtotal Estimated Expenses $551,972.00 590.40-98 SPECIAL DIST./STORM BASIN MAINT. DIST. $9,661.00 640.90-74 TOTAL ESTIMATED MAINT/UTIL/REPAIR EXPENSES $6,435,812.11

REPLACEMENT RESERVE
Replacement Reserve: L/S, Walls, Lights $101,766.00 590.20-25 Replacement Reserve: Park $51,812.00 590.20-25
TOTAL REPLACEMENT RESERVE $153,578.00 590.20-25

DISTRICT ADMINISTRATION
Subtotal District Administration Expenses $1,247,397.00 CONTINGENCY: Varies 0 to 10±% of Subtotal Admin. Expenses $112,345.00 590.40-98 TOTAL ESTIMATED DISTRICT ADMIN. EXPENSES $1,359,742.00

TOTAL ESTIMATED REVENUE REQUIRED
2026-2027 FISCAL YEAR $7,949,113.11
TOTAL APPROPRIATION OR (REPLENISHMENT) ON RESERVE $2,226,990.26

TOTAL ESTIMATED ASSESSMENT
2026-2027 FISCAL YEAR $5,722,122.85
2026-2027 Proposed Potential per dueF Assessment
2026-2027 Max. Possible per dueF Assessment
2026-2027 Total dueF
Stockton Consolidated Landscape Maintenance Assessment District 96-2 Budget 072-6910 072-6906

WM LONG
PARK

WESTON RANCH
B-1 B-2
- 336,958.00
- -
- 85,807.00
- 422,765.00
- -
- 451,181.00
- 873,946.00
- -
- 71,631.00
- 6,695.00
- -
- -
78,943.10 89,727.45
- -
68,433.00 20,868.00
147,376.10 110,595.45
- -
20,799.00 57,246.00
2,149.00 3,955.00
170,324.10 171,796.45
- -
1,812.00 11,522.00
- -
- -
- -
- -
- -
172,136.10 1,135,590.45
15,493.00 102,204.00
- -
187,629.10 1,237,794.45
- -
- -
- -
- -
- -
40,225.00 249,851.00
3,621.00 22,487.00
43,846.00 272,338.00
231,475.10 1,510,132.45
138,991.10 862,496.05
92,484.00 647,636.40
$84.00 $117.82
$84.00 $117.82
1101.00 5496.83
1 ATTACHMENT B
1303
Dept./Division
Fiscal Year 2026-2027
FY 26-27 Total
Estimated
Expenditure
Activity. Elem-obj

MAINTENANCE, REPAIRS AND UTILITIES
Landscape and Open Spaces
Contracted Scheduled Landscape and Open Spaces Services Subtotal .20-25 Contracted Scheduled Services $1,135,642.01 590.20-25 Incidental Services
Subtotal Incidental Services $412,437.00 590.20-25
TOTAL .20-25 LANDSCAPE & OPEN SPACES SERVICES $1,548,079.01 590.20-25 Landscape and Open Spaces Utilities
TOTAL LANDSCAPE AND OPEN SPACES UTILITIES $1,012,515.00 TOTAL ESTIMATED LANDSCAPE AND OPEN SPACES EXPENSES $2,560,594.01 Walls/Signs/Bridge Railings
TOTAL ESTIMATED WALL/SIGN/BRIDGE RAIL EXPENSES $575,997.00 GRAFFITI ABATEMENT, performed by Neighborhood Services $83,385.00 590.20-67 Parks
Contracted Scheduled Park Services
Subtotal .20-25 Contracted Scheduled Park Services $961,115.10 Incidental Parks Services
Subtotal Incidental Services $642,195.00 590.20-25
TOTAL .20-25 PARKS SERVICES $1,603,310.10 590.20-25
Parks Utilities
TOTAL PARKS UTILITIES $717,245.00
Graffiti Abatement in Parks - By PW Staff $31,815.00 590.10- TOTAL ESTIMATED PARKS EXPENSES $2,352,370.10
Materials and Supplies
TOTAL ESTIMATED MATERIALS AND SUPPLIES $55,898.00 590.30-50 Street Lights
TOTAL STREET LIGHT MAINTENANCE & REPAIRS $172,885.00
Street Light Utilities
TOTAL STREET LIGHTS UTILITIES $73,050.00
TOTAL ESTIMATED STREET LIGHTS EXPENSES $245,935.00
SUBTOTAL ESTIMATED EXPENSES $5,874,179.11
CONTINGENCY; Varies 0 to 10±% of Subtotal Estimated Expenses $551,972.00 590.40-98 SPECIAL DIST./STORM BASIN MAINT. DIST. $9,661.00 640.90-74 TOTAL ESTIMATED MAINT/UTIL/REPAIR EXPENSES $6,435,812.11

REPLACEMENT RESERVE
Replacement Reserve: L/S, Walls, Lights $101,766.00 590.20-25 Replacement Reserve: Park $51,812.00 590.20-25
TOTAL REPLACEMENT RESERVE $153,578.00 590.20-25

DISTRICT ADMINISTRATION
Subtotal District Administration Expenses $1,247,397.00 CONTINGENCY: Varies 0 to 10±% of Subtotal Admin. Expenses $112,345.00 590.40-98 TOTAL ESTIMATED DISTRICT ADMIN. EXPENSES $1,359,742.00

TOTAL ESTIMATED REVENUE REQUIRED
2026-2027 FISCAL YEAR $7,949,113.11
TOTAL APPROPRIATION OR (REPLENISHMENT) ON RESERVE $2,226,990.26

TOTAL ESTIMATED ASSESSMENT
2026-2027 FISCAL YEAR $5,722,122.85
2026-2027 Proposed Potential per dueF Assessment
2026-2027 Max. Possible per dueF Assessment
2026-2027 Total dueF
Stockton Consolidated Landscape Maintenance Assessment District 96-2 Budget 072-6909 072-6918
PAUL E.

WESTON PARK

SMITH PARK
B-3 B-4
- -
- -
- -
- -
- -
- -
- -
- -
- -
- -
- -
- -
83,700.45 34,736.26
- -
3,417.00 46,212.00
87,117.45 80,948.26
- -
57,247.00 34,017.00
3,530.00 1,535.00
147,894.45 116,500.26
- -
151.00 923.00
- -
- -
- -
- -
- -
148,045.45 117,423.26
11,844.00 11,743.00
- -
159,889.45 129,166.26
- -
- -
- 17,551.00
- 17,551.00
- -
39,878.00 26,354.00
3,590.00 2,636.00
43,468.00 28,990.00
203,357.45 175,707.26
88,929.59 50,738.30
114,427.86 124,968.96
$24.00 $122.88
$24.00 $122.93
4767.83 1017.00
1 ATTACHMENT B
1304
Dept./Division
Fiscal Year 2026-2027
FY 26-27 Total
Estimated
Expenditure
Activity. Elem-obj

MAINTENANCE, REPAIRS AND UTILITIES
Landscape and Open Spaces
Contracted Scheduled Landscape and Open Spaces Services Subtotal .20-25 Contracted Scheduled Services $1,135,642.01 590.20-25 Incidental Services
Subtotal Incidental Services $412,437.00 590.20-25
TOTAL .20-25 LANDSCAPE & OPEN SPACES SERVICES $1,548,079.01 590.20-25 Landscape and Open Spaces Utilities
TOTAL LANDSCAPE AND OPEN SPACES UTILITIES $1,012,515.00 TOTAL ESTIMATED LANDSCAPE AND OPEN SPACES EXPENSES $2,560,594.01 Walls/Signs/Bridge Railings
TOTAL ESTIMATED WALL/SIGN/BRIDGE RAIL EXPENSES $575,997.00 GRAFFITI ABATEMENT, performed by Neighborhood Services $83,385.00 590.20-67 Parks
Contracted Scheduled Park Services
Subtotal .20-25 Contracted Scheduled Park Services $961,115.10 Incidental Parks Services
Subtotal Incidental Services $642,195.00 590.20-25
TOTAL .20-25 PARKS SERVICES $1,603,310.10 590.20-25
Parks Utilities
TOTAL PARKS UTILITIES $717,245.00
Graffiti Abatement in Parks - By PW Staff $31,815.00 590.10- TOTAL ESTIMATED PARKS EXPENSES $2,352,370.10
Materials and Supplies
TOTAL ESTIMATED MATERIALS AND SUPPLIES $55,898.00 590.30-50 Street Lights
TOTAL STREET LIGHT MAINTENANCE & REPAIRS $172,885.00
Street Light Utilities
TOTAL STREET LIGHTS UTILITIES $73,050.00
TOTAL ESTIMATED STREET LIGHTS EXPENSES $245,935.00
SUBTOTAL ESTIMATED EXPENSES $5,874,179.11
CONTINGENCY; Varies 0 to 10±% of Subtotal Estimated Expenses $551,972.00 590.40-98 SPECIAL DIST./STORM BASIN MAINT. DIST. $9,661.00 640.90-74 TOTAL ESTIMATED MAINT/UTIL/REPAIR EXPENSES $6,435,812.11

REPLACEMENT RESERVE
Replacement Reserve: L/S, Walls, Lights $101,766.00 590.20-25 Replacement Reserve: Park $51,812.00 590.20-25
TOTAL REPLACEMENT RESERVE $153,578.00 590.20-25

DISTRICT ADMINISTRATION
Subtotal District Administration Expenses $1,247,397.00 CONTINGENCY: Varies 0 to 10±% of Subtotal Admin. Expenses $112,345.00 590.40-98 TOTAL ESTIMATED DISTRICT ADMIN. EXPENSES $1,359,742.00

TOTAL ESTIMATED REVENUE REQUIRED
2026-2027 FISCAL YEAR $7,949,113.11
TOTAL APPROPRIATION OR (REPLENISHMENT) ON RESERVE $2,226,990.26

TOTAL ESTIMATED ASSESSMENT
2026-2027 FISCAL YEAR $5,722,122.85
2026-2027 Proposed Potential per dueF Assessment
2026-2027 Max. Possible per dueF Assessment
2026-2027 Total dueF
Stockton Consolidated Landscape Maintenance Assessment District 96-2 Budget 072-6919 072-6908
FRENCH

CAMP ROAD
FENCE

SPANOS EAST
B-5 C-1
- 24,103.00
- -
- 6,505.00
- 30,608.00
- -
- 39,835.00
- 70,443.00
- -
80,330.00 -
6,695.00 671.00
- -
- -
- 14,389.76
- -
- -
- 14,389.76
- -
- -
- 791.00
- 15,180.76
- -
130.00 837.00
- -
- -
- -
- -
- -
87,155.00 87,131.76
8,716.00 6,100.00
- -
95,871.00 93,231.76
- -
- -
- -
- -
- -
25,987.00 23,337.00
2,339.00 1,634.00
28,326.00 24,971.00
124,197.00 118,202.76
63,165.70 48,924.32
61,031.30 69,278.44
$108.02 $119.24
$232.96 $119.24
565.00 581.00
1 ATTACHMENT B
1305
Dept./Division
Fiscal Year 2026-2027
FY 26-27 Total
Estimated
Expenditure
Activity. Elem-obj

MAINTENANCE, REPAIRS AND UTILITIES
Landscape and Open Spaces
Contracted Scheduled Landscape and Open Spaces Services Subtotal .20-25 Contracted Scheduled Services $1,135,642.01 590.20-25 Incidental Services
Subtotal Incidental Services $412,437.00 590.20-25
TOTAL .20-25 LANDSCAPE & OPEN SPACES SERVICES $1,548,079.01 590.20-25 Landscape and Open Spaces Utilities
TOTAL LANDSCAPE AND OPEN SPACES UTILITIES $1,012,515.00 TOTAL ESTIMATED LANDSCAPE AND OPEN SPACES EXPENSES $2,560,594.01 Walls/Signs/Bridge Railings
TOTAL ESTIMATED WALL/SIGN/BRIDGE RAIL EXPENSES $575,997.00 GRAFFITI ABATEMENT, performed by Neighborhood Services $83,385.00 590.20-67 Parks
Contracted Scheduled Park Services
Subtotal .20-25 Contracted Scheduled Park Services $961,115.10 Incidental Parks Services
Subtotal Incidental Services $642,195.00 590.20-25
TOTAL .20-25 PARKS SERVICES $1,603,310.10 590.20-25
Parks Utilities
TOTAL PARKS UTILITIES $717,245.00
Graffiti Abatement in Parks - By PW Staff $31,815.00 590.10- TOTAL ESTIMATED PARKS EXPENSES $2,352,370.10
Materials and Supplies
TOTAL ESTIMATED MATERIALS AND SUPPLIES $55,898.00 590.30-50 Street Lights
TOTAL STREET LIGHT MAINTENANCE & REPAIRS $172,885.00
Street Light Utilities
TOTAL STREET LIGHTS UTILITIES $73,050.00
TOTAL ESTIMATED STREET LIGHTS EXPENSES $245,935.00
SUBTOTAL ESTIMATED EXPENSES $5,874,179.11
CONTINGENCY; Varies 0 to 10±% of Subtotal Estimated Expenses $551,972.00 590.40-98 SPECIAL DIST./STORM BASIN MAINT. DIST. $9,661.00 640.90-74 TOTAL ESTIMATED MAINT/UTIL/REPAIR EXPENSES $6,435,812.11

REPLACEMENT RESERVE
Replacement Reserve: L/S, Walls, Lights $101,766.00 590.20-25 Replacement Reserve: Park $51,812.00 590.20-25
TOTAL REPLACEMENT RESERVE $153,578.00 590.20-25

DISTRICT ADMINISTRATION
Subtotal District Administration Expenses $1,247,397.00 CONTINGENCY: Varies 0 to 10±% of Subtotal Admin. Expenses $112,345.00 590.40-98 TOTAL ESTIMATED DISTRICT ADMIN. EXPENSES $1,359,742.00

TOTAL ESTIMATED REVENUE REQUIRED
2026-2027 FISCAL YEAR $7,949,113.11
TOTAL APPROPRIATION OR (REPLENISHMENT) ON RESERVE $2,226,990.26

TOTAL ESTIMATED ASSESSMENT
2026-2027 FISCAL YEAR $5,722,122.85
2026-2027 Proposed Potential per dueF Assessment
2026-2027 Max. Possible per dueF Assessment
2026-2027 Total dueF
Stockton Consolidated Landscape Maintenance Assessment District 96-2 Budget 072-6916 072-6917
NORTH

STOCKTON

PROJECTS

SPANOS WEST
C-2 C-3
62,198.00 11,743.00
- -
69,582.00 -
131,780.00 11,743.00
- -
78,995.00 -
210,775.00 11,743.00
- -
29,727.00 -
2,681.00 -
- -
- -
39,273.54 149,440.90
- -
45,380.00 170,186.00
84,653.54 319,626.90
- -
41,935.00 156,651.00
2,006.00 6,808.00
128,594.54 483,085.90
- -
4,932.00 4,758.00
- -
18,077.00 -
- -
15,399.00 -
33,476.00 -
410,185.54 499,586.90
41,019.00 44,963.00
- -
451,204.54 544,549.90
- -
9,908.00 -
- -
9,908.00 -
- -
91,535.00 85,205.00
9,154.00 7,669.00
100,689.00 92,874.00
561,801.54 637,423.90
69,678.24 108,184.78
492,123.30 529,239.12
$310.68 $267.54
$310.71 $267.55
1584.02 1978.17
1 ATTACHMENT B
1306
Dept./Division
Fiscal Year 2026-2027
FY 26-27 Total
Estimated
Expenditure
Activity. Elem-obj

MAINTENANCE, REPAIRS AND UTILITIES
Landscape and Open Spaces
Contracted Scheduled Landscape and Open Spaces Services Subtotal .20-25 Contracted Scheduled Services $1,135,642.01 590.20-25 Incidental Services
Subtotal Incidental Services $412,437.00 590.20-25
TOTAL .20-25 LANDSCAPE & OPEN SPACES SERVICES $1,548,079.01 590.20-25 Landscape and Open Spaces Utilities
TOTAL LANDSCAPE AND OPEN SPACES UTILITIES $1,012,515.00 TOTAL ESTIMATED LANDSCAPE AND OPEN SPACES EXPENSES $2,560,594.01 Walls/Signs/Bridge Railings
TOTAL ESTIMATED WALL/SIGN/BRIDGE RAIL EXPENSES $575,997.00 GRAFFITI ABATEMENT, performed by Neighborhood Services $83,385.00 590.20-67 Parks
Contracted Scheduled Park Services
Subtotal .20-25 Contracted Scheduled Park Services $961,115.10 Incidental Parks Services
Subtotal Incidental Services $642,195.00 590.20-25
TOTAL .20-25 PARKS SERVICES $1,603,310.10 590.20-25
Parks Utilities
TOTAL PARKS UTILITIES $717,245.00
Graffiti Abatement in Parks - By PW Staff $31,815.00 590.10- TOTAL ESTIMATED PARKS EXPENSES $2,352,370.10
Materials and Supplies
TOTAL ESTIMATED MATERIALS AND SUPPLIES $55,898.00 590.30-50 Street Lights
TOTAL STREET LIGHT MAINTENANCE & REPAIRS $172,885.00
Street Light Utilities
TOTAL STREET LIGHTS UTILITIES $73,050.00
TOTAL ESTIMATED STREET LIGHTS EXPENSES $245,935.00
SUBTOTAL ESTIMATED EXPENSES $5,874,179.11
CONTINGENCY; Varies 0 to 10±% of Subtotal Estimated Expenses $551,972.00 590.40-98 SPECIAL DIST./STORM BASIN MAINT. DIST. $9,661.00 640.90-74 TOTAL ESTIMATED MAINT/UTIL/REPAIR EXPENSES $6,435,812.11

REPLACEMENT RESERVE
Replacement Reserve: L/S, Walls, Lights $101,766.00 590.20-25 Replacement Reserve: Park $51,812.00 590.20-25
TOTAL REPLACEMENT RESERVE $153,578.00 590.20-25

DISTRICT ADMINISTRATION
Subtotal District Administration Expenses $1,247,397.00 CONTINGENCY: Varies 0 to 10±% of Subtotal Admin. Expenses $112,345.00 590.40-98 TOTAL ESTIMATED DISTRICT ADMIN. EXPENSES $1,359,742.00

TOTAL ESTIMATED REVENUE REQUIRED
2026-2027 FISCAL YEAR $7,949,113.11
TOTAL APPROPRIATION OR (REPLENISHMENT) ON RESERVE $2,226,990.26

TOTAL ESTIMATED ASSESSMENT
2026-2027 FISCAL YEAR $5,722,122.85
2026-2027 Proposed Potential per dueF Assessment
2026-2027 Max. Possible per dueF Assessment
2026-2027 Total dueF
Stockton Consolidated Landscape Maintenance Assessment District 96-2 Budget 072-6924 072-6931

FAIRWAY
GREENS

WESTLAKE

VILLAGES
C-4 C-6
3,356.00 32,148.00
- -
3,190.00 -
6,546.00 32,148.00
- -
2,884.00 1,500.00
9,430.00 33,648.00
- -
20,083.00 -
1,007.00 -
- -
- -
- 100,144.00
- -
- 6,500.00
- 106,644.00
- -
- 48,000.00
- -
- 154,644.00
- -
454.00 640.00
- -
- 33,472.00
- -
- 30,794.00
- 64,266.00
30,974.00 253,198.00
3,098.00 25,320.00
- -
34,072.00 278,518.00
- -
- -
- -
- -
- -
11,569.00 21,336.00
1,157.00 1,921.00
12,726.00 23,257.00
46,798.00 301,775.00
24,722.18 (270.80)
22,075.82 302,045.80
$112.06 $166.60
$354.26 $246.53
197.00 1813.00
1 ATTACHMENT B
1307
Dept./Division
Fiscal Year 2026-2027
FY 26-27 Total
Estimated
Expenditure
Activity. Elem-obj

MAINTENANCE, REPAIRS AND UTILITIES
Landscape and Open Spaces
Contracted Scheduled Landscape and Open Spaces Services Subtotal .20-25 Contracted Scheduled Services $1,135,642.01 590.20-25 Incidental Services
Subtotal Incidental Services $412,437.00 590.20-25
TOTAL .20-25 LANDSCAPE & OPEN SPACES SERVICES $1,548,079.01 590.20-25 Landscape and Open Spaces Utilities
TOTAL LANDSCAPE AND OPEN SPACES UTILITIES $1,012,515.00 TOTAL ESTIMATED LANDSCAPE AND OPEN SPACES EXPENSES $2,560,594.01 Walls/Signs/Bridge Railings
TOTAL ESTIMATED WALL/SIGN/BRIDGE RAIL EXPENSES $575,997.00 GRAFFITI ABATEMENT, performed by Neighborhood Services $83,385.00 590.20-67 Parks
Contracted Scheduled Park Services
Subtotal .20-25 Contracted Scheduled Park Services $961,115.10 Incidental Parks Services
Subtotal Incidental Services $642,195.00 590.20-25
TOTAL .20-25 PARKS SERVICES $1,603,310.10 590.20-25
Parks Utilities
TOTAL PARKS UTILITIES $717,245.00
Graffiti Abatement in Parks - By PW Staff $31,815.00 590.10- TOTAL ESTIMATED PARKS EXPENSES $2,352,370.10
Materials and Supplies
TOTAL ESTIMATED MATERIALS AND SUPPLIES $55,898.00 590.30-50 Street Lights
TOTAL STREET LIGHT MAINTENANCE & REPAIRS $172,885.00
Street Light Utilities
TOTAL STREET LIGHTS UTILITIES $73,050.00
TOTAL ESTIMATED STREET LIGHTS EXPENSES $245,935.00
SUBTOTAL ESTIMATED EXPENSES $5,874,179.11
CONTINGENCY; Varies 0 to 10±% of Subtotal Estimated Expenses $551,972.00 590.40-98 SPECIAL DIST./STORM BASIN MAINT. DIST. $9,661.00 640.90-74 TOTAL ESTIMATED MAINT/UTIL/REPAIR EXPENSES $6,435,812.11

REPLACEMENT RESERVE
Replacement Reserve: L/S, Walls, Lights $101,766.00 590.20-25 Replacement Reserve: Park $51,812.00 590.20-25
TOTAL REPLACEMENT RESERVE $153,578.00 590.20-25

DISTRICT ADMINISTRATION
Subtotal District Administration Expenses $1,247,397.00 CONTINGENCY: Varies 0 to 10±% of Subtotal Admin. Expenses $112,345.00 590.40-98 TOTAL ESTIMATED DISTRICT ADMIN. EXPENSES $1,359,742.00

TOTAL ESTIMATED REVENUE REQUIRED
2026-2027 FISCAL YEAR $7,949,113.11
TOTAL APPROPRIATION OR (REPLENISHMENT) ON RESERVE $2,226,990.26

TOTAL ESTIMATED ASSESSMENT
2026-2027 FISCAL YEAR $5,722,122.85
2026-2027 Proposed Potential per dueF Assessment
2026-2027 Max. Possible per dueF Assessment
2026-2027 Total dueF
Stockton Consolidated Landscape Maintenance Assessment District 96-2 Budget 072-6932 072-6932

NSP III NSP III
C-7/Pitts Park Sub-Zone A
- 12,191.00
- -
- 6,581.00
- 18,772.00
- -
- 16,739.00
- 35,511.00
- -
- 20,083.00
- 5,358.00
- -
- -
73,543.70 -
- -
54,730.00 -
128,273.70 -
- -
66,012.00 -
3,069.00 -
197,354.70 -
- -
1,531.00 1,064.00
- -
- 17,674.00
- -
- 8,302.00
- 25,976.00
198,885.70 87,992.00
19,889.00 8,800.00
- -
218,774.70 96,792.00
- -
- -
- -
- -
- -
33,809.00 21,909.00
3,381.00 1,972.00
37,190.00 23,881.00
255,964.70 120,673.00
42,134.30 47,928.18
213,830.40 72,744.82
$275.20 $215.86
$275.22 $303.93
777.00 337.00
1 ATTACHMENT B
1308
Dept./Division
Fiscal Year 2026-2027
FY 26-27 Total
Estimated
Expenditure
Activity. Elem-obj

MAINTENANCE, REPAIRS AND UTILITIES
Landscape and Open Spaces
Contracted Scheduled Landscape and Open Spaces Services Subtotal .20-25 Contracted Scheduled Services $1,135,642.01 590.20-25 Incidental Services
Subtotal Incidental Services $412,437.00 590.20-25
TOTAL .20-25 LANDSCAPE & OPEN SPACES SERVICES $1,548,079.01 590.20-25 Landscape and Open Spaces Utilities
TOTAL LANDSCAPE AND OPEN SPACES UTILITIES $1,012,515.00 TOTAL ESTIMATED LANDSCAPE AND OPEN SPACES EXPENSES $2,560,594.01 Walls/Signs/Bridge Railings
TOTAL ESTIMATED WALL/SIGN/BRIDGE RAIL EXPENSES $575,997.00 GRAFFITI ABATEMENT, performed by Neighborhood Services $83,385.00 590.20-67 Parks
Contracted Scheduled Park Services
Subtotal .20-25 Contracted Scheduled Park Services $961,115.10 Incidental Parks Services
Subtotal Incidental Services $642,195.00 590.20-25
TOTAL .20-25 PARKS SERVICES $1,603,310.10 590.20-25
Parks Utilities
TOTAL PARKS UTILITIES $717,245.00
Graffiti Abatement in Parks - By PW Staff $31,815.00 590.10- TOTAL ESTIMATED PARKS EXPENSES $2,352,370.10
Materials and Supplies
TOTAL ESTIMATED MATERIALS AND SUPPLIES $55,898.00 590.30-50 Street Lights
TOTAL STREET LIGHT MAINTENANCE & REPAIRS $172,885.00
Street Light Utilities
TOTAL STREET LIGHTS UTILITIES $73,050.00
TOTAL ESTIMATED STREET LIGHTS EXPENSES $245,935.00
SUBTOTAL ESTIMATED EXPENSES $5,874,179.11
CONTINGENCY; Varies 0 to 10±% of Subtotal Estimated Expenses $551,972.00 590.40-98 SPECIAL DIST./STORM BASIN MAINT. DIST. $9,661.00 640.90-74 TOTAL ESTIMATED MAINT/UTIL/REPAIR EXPENSES $6,435,812.11

REPLACEMENT RESERVE
Replacement Reserve: L/S, Walls, Lights $101,766.00 590.20-25 Replacement Reserve: Park $51,812.00 590.20-25
TOTAL REPLACEMENT RESERVE $153,578.00 590.20-25

DISTRICT ADMINISTRATION
Subtotal District Administration Expenses $1,247,397.00 CONTINGENCY: Varies 0 to 10±% of Subtotal Admin. Expenses $112,345.00 590.40-98 TOTAL ESTIMATED DISTRICT ADMIN. EXPENSES $1,359,742.00

TOTAL ESTIMATED REVENUE REQUIRED
2026-2027 FISCAL YEAR $7,949,113.11
TOTAL APPROPRIATION OR (REPLENISHMENT) ON RESERVE $2,226,990.26

TOTAL ESTIMATED ASSESSMENT
2026-2027 FISCAL YEAR $5,722,122.85
2026-2027 Proposed Potential per dueF Assessment
2026-2027 Max. Possible per dueF Assessment
2026-2027 Total dueF
Stockton Consolidated Landscape Maintenance Assessment District 96-2 Budget 072-6911 072-6920

BRIDGEPORT
TRAILS

BRIDGEPORT
TRAILS 4&5
D-1 D-3
7,236.00 4,828.00
- -
6,875.00 5,874.00
14,111.00 10,702.00
- -
6,566.00 10,382.00
20,677.00 21,084.00
- -
20,754.00 20,083.00
2,010.00 2,010.00
- -
- -
- -
- -
- -
- -
- -
- -
- -
- -
- -
738.00 605.00
- -
- -
- -
- -
- -
44,179.00 43,782.00
4,418.00 4,379.00
- -
48,597.00 48,161.00
- -
- -
- -
- -
- -
15,110.00 14,394.00
1,360.00 1,440.00
16,470.00 15,834.00
65,067.00 63,995.00
38,037.00 7,499.64
27,030.00 56,495.36
$85.00 $307.04
$85.00 $323.62
318.00 184.00
1 ATTACHMENT B
1309
Dept./Division
Fiscal Year 2026-2027
FY 26-27 Total
Estimated
Expenditure
Activity. Elem-obj

MAINTENANCE, REPAIRS AND UTILITIES
Landscape and Open Spaces
Contracted Scheduled Landscape and Open Spaces Services Subtotal .20-25 Contracted Scheduled Services $1,135,642.01 590.20-25 Incidental Services
Subtotal Incidental Services $412,437.00 590.20-25
TOTAL .20-25 LANDSCAPE & OPEN SPACES SERVICES $1,548,079.01 590.20-25 Landscape and Open Spaces Utilities
TOTAL LANDSCAPE AND OPEN SPACES UTILITIES $1,012,515.00 TOTAL ESTIMATED LANDSCAPE AND OPEN SPACES EXPENSES $2,560,594.01 Walls/Signs/Bridge Railings
TOTAL ESTIMATED WALL/SIGN/BRIDGE RAIL EXPENSES $575,997.00 GRAFFITI ABATEMENT, performed by Neighborhood Services $83,385.00 590.20-67 Parks
Contracted Scheduled Park Services
Subtotal .20-25 Contracted Scheduled Park Services $961,115.10 Incidental Parks Services
Subtotal Incidental Services $642,195.00 590.20-25
TOTAL .20-25 PARKS SERVICES $1,603,310.10 590.20-25
Parks Utilities
TOTAL PARKS UTILITIES $717,245.00
Graffiti Abatement in Parks - By PW Staff $31,815.00 590.10- TOTAL ESTIMATED PARKS EXPENSES $2,352,370.10
Materials and Supplies
TOTAL ESTIMATED MATERIALS AND SUPPLIES $55,898.00 590.30-50 Street Lights
TOTAL STREET LIGHT MAINTENANCE & REPAIRS $172,885.00
Street Light Utilities
TOTAL STREET LIGHTS UTILITIES $73,050.00
TOTAL ESTIMATED STREET LIGHTS EXPENSES $245,935.00
SUBTOTAL ESTIMATED EXPENSES $5,874,179.11
CONTINGENCY; Varies 0 to 10±% of Subtotal Estimated Expenses $551,972.00 590.40-98 SPECIAL DIST./STORM BASIN MAINT. DIST. $9,661.00 640.90-74 TOTAL ESTIMATED MAINT/UTIL/REPAIR EXPENSES $6,435,812.11

REPLACEMENT RESERVE
Replacement Reserve: L/S, Walls, Lights $101,766.00 590.20-25 Replacement Reserve: Park $51,812.00 590.20-25
TOTAL REPLACEMENT RESERVE $153,578.00 590.20-25

DISTRICT ADMINISTRATION
Subtotal District Administration Expenses $1,247,397.00 CONTINGENCY: Varies 0 to 10±% of Subtotal Admin. Expenses $112,345.00 590.40-98 TOTAL ESTIMATED DISTRICT ADMIN. EXPENSES $1,359,742.00

TOTAL ESTIMATED REVENUE REQUIRED
2026-2027 FISCAL YEAR $7,949,113.11
TOTAL APPROPRIATION OR (REPLENISHMENT) ON RESERVE $2,226,990.26

TOTAL ESTIMATED ASSESSMENT
2026-2027 FISCAL YEAR $5,722,122.85
2026-2027 Proposed Potential per dueF Assessment
2026-2027 Max. Possible per dueF Assessment
2026-2027 Total dueF
Stockton Consolidated Landscape Maintenance Assessment District 96-2 Budget 072-6925 072-6933

CALAVERAS

ESTATES
MOSS
GARDEN
D-4 D-6
- 10,451.00
- -
- 9,608.00
- 20,059.00
- -
- 22,632.00
- 42,691.00
- -
20,083.00 -
3,349.00 -
- -
- -
- -
- -
- -
- -
- -
- -
- -
- -
- -
735.00 763.00
- -
16,469.00 16,469.00
- -
1,407.00 1,475.00
17,876.00 17,944.00
42,043.00 61,398.00
4,205.00 6,140.00
- -
46,248.00 67,538.00
- -
- -
- -
- -
- -
13,529.00 19,361.00
1,218.00 1,743.00
14,747.00 21,104.00
60,995.00 88,642.00
37,334.44 41,115.60
23,660.56 47,526.40
$153.64 $126.84
$1,541.62 $629.79
154.00 374.70
1 ATTACHMENT B
1310
Dept./Division
Fiscal Year 2026-2027
FY 26-27 Total
Estimated
Expenditure
Activity. Elem-obj

MAINTENANCE, REPAIRS AND UTILITIES
Landscape and Open Spaces
Contracted Scheduled Landscape and Open Spaces Services Subtotal .20-25 Contracted Scheduled Services $1,135,642.01 590.20-25 Incidental Services
Subtotal Incidental Services $412,437.00 590.20-25
TOTAL .20-25 LANDSCAPE & OPEN SPACES SERVICES $1,548,079.01 590.20-25 Landscape and Open Spaces Utilities
TOTAL LANDSCAPE AND OPEN SPACES UTILITIES $1,012,515.00 TOTAL ESTIMATED LANDSCAPE AND OPEN SPACES EXPENSES $2,560,594.01 Walls/Signs/Bridge Railings
TOTAL ESTIMATED WALL/SIGN/BRIDGE RAIL EXPENSES $575,997.00 GRAFFITI ABATEMENT, performed by Neighborhood Services $83,385.00 590.20-67 Parks
Contracted Scheduled Park Services
Subtotal .20-25 Contracted Scheduled Park Services $961,115.10 Incidental Parks Services
Subtotal Incidental Services $642,195.00 590.20-25
TOTAL .20-25 PARKS SERVICES $1,603,310.10 590.20-25
Parks Utilities
TOTAL PARKS UTILITIES $717,245.00
Graffiti Abatement in Parks - By PW Staff $31,815.00 590.10- TOTAL ESTIMATED PARKS EXPENSES $2,352,370.10
Materials and Supplies
TOTAL ESTIMATED MATERIALS AND SUPPLIES $55,898.00 590.30-50 Street Lights
TOTAL STREET LIGHT MAINTENANCE & REPAIRS $172,885.00
Street Light Utilities
TOTAL STREET LIGHTS UTILITIES $73,050.00
TOTAL ESTIMATED STREET LIGHTS EXPENSES $245,935.00
SUBTOTAL ESTIMATED EXPENSES $5,874,179.11
CONTINGENCY; Varies 0 to 10±% of Subtotal Estimated Expenses $551,972.00 590.40-98 SPECIAL DIST./STORM BASIN MAINT. DIST. $9,661.00 640.90-74 TOTAL ESTIMATED MAINT/UTIL/REPAIR EXPENSES $6,435,812.11

REPLACEMENT RESERVE
Replacement Reserve: L/S, Walls, Lights $101,766.00 590.20-25 Replacement Reserve: Park $51,812.00 590.20-25
TOTAL REPLACEMENT RESERVE $153,578.00 590.20-25

DISTRICT ADMINISTRATION
Subtotal District Administration Expenses $1,247,397.00 CONTINGENCY: Varies 0 to 10±% of Subtotal Admin. Expenses $112,345.00 590.40-98 TOTAL ESTIMATED DISTRICT ADMIN. EXPENSES $1,359,742.00

TOTAL ESTIMATED REVENUE REQUIRED
2026-2027 FISCAL YEAR $7,949,113.11
TOTAL APPROPRIATION OR (REPLENISHMENT) ON RESERVE $2,226,990.26

TOTAL ESTIMATED ASSESSMENT
2026-2027 FISCAL YEAR $5,722,122.85
2026-2027 Proposed Potential per dueF Assessment
2026-2027 Max. Possible per dueF Assessment
2026-2027 Total dueF
Stockton Consolidated Landscape Maintenance Assessment District 96-2 Budget 072-6912 072-6926

LITTLE JOHN
CREEK

SEABREEZE
E-1 E-3
16,910.00 29,327.00
- -
8,535.00 13,505.00
25,445.00 42,832.00
- -
21,292.00 28,788.00
46,737.00 71,620.00
- -
21,425.00 20,083.00
4,689.00 4,689.00
- -
- -
28,017.87 10,939.81
- -
54,392.00 19,506.00
82,409.87 30,445.81
- -
47,513.00 23,468.00
1,256.00 498.00
131,178.87 54,411.81
- -
1,979.00 2,100.00
- -
- 16,872.00
- -
- 2,010.00
- 18,882.00
206,008.87 171,785.81
20,601.00 17,179.00
6,825.00 2,836.00
233,434.87 191,800.81
- -
- -
- -
- -
- -
44,683.00 40,037.00
4,022.00 3,604.00
48,705.00 43,641.00
282,139.87 235,441.81
56,184.07 66,886.93
225,955.80 168,554.88
$286.02 $540.24
$296.47 $1,056.60
790.00 312.00
1 ATTACHMENT B
1311
Dept./Division
Fiscal Year 2026-2027
FY 26-27 Total
Estimated
Expenditure
Activity. Elem-obj

MAINTENANCE, REPAIRS AND UTILITIES
Landscape and Open Spaces
Contracted Scheduled Landscape and Open Spaces Services Subtotal .20-25 Contracted Scheduled Services $1,135,642.01 590.20-25 Incidental Services
Subtotal Incidental Services $412,437.00 590.20-25
TOTAL .20-25 LANDSCAPE & OPEN SPACES SERVICES $1,548,079.01 590.20-25 Landscape and Open Spaces Utilities
TOTAL LANDSCAPE AND OPEN SPACES UTILITIES $1,012,515.00 TOTAL ESTIMATED LANDSCAPE AND OPEN SPACES EXPENSES $2,560,594.01 Walls/Signs/Bridge Railings
TOTAL ESTIMATED WALL/SIGN/BRIDGE RAIL EXPENSES $575,997.00 GRAFFITI ABATEMENT, performed by Neighborhood Services $83,385.00 590.20-67 Parks
Contracted Scheduled Park Services
Subtotal .20-25 Contracted Scheduled Park Services $961,115.10 Incidental Parks Services
Subtotal Incidental Services $642,195.00 590.20-25
TOTAL .20-25 PARKS SERVICES $1,603,310.10 590.20-25
Parks Utilities
TOTAL PARKS UTILITIES $717,245.00
Graffiti Abatement in Parks - By PW Staff $31,815.00 590.10- TOTAL ESTIMATED PARKS EXPENSES $2,352,370.10
Materials and Supplies
TOTAL ESTIMATED MATERIALS AND SUPPLIES $55,898.00 590.30-50 Street Lights
TOTAL STREET LIGHT MAINTENANCE & REPAIRS $172,885.00
Street Light Utilities
TOTAL STREET LIGHTS UTILITIES $73,050.00
TOTAL ESTIMATED STREET LIGHTS EXPENSES $245,935.00
SUBTOTAL ESTIMATED EXPENSES $5,874,179.11
CONTINGENCY; Varies 0 to 10±% of Subtotal Estimated Expenses $551,972.00 590.40-98 SPECIAL DIST./STORM BASIN MAINT. DIST. $9,661.00 640.90-74 TOTAL ESTIMATED MAINT/UTIL/REPAIR EXPENSES $6,435,812.11

REPLACEMENT RESERVE
Replacement Reserve: L/S, Walls, Lights $101,766.00 590.20-25 Replacement Reserve: Park $51,812.00 590.20-25
TOTAL REPLACEMENT RESERVE $153,578.00 590.20-25

DISTRICT ADMINISTRATION
Subtotal District Administration Expenses $1,247,397.00 CONTINGENCY: Varies 0 to 10±% of Subtotal Admin. Expenses $112,345.00 590.40-98 TOTAL ESTIMATED DISTRICT ADMIN. EXPENSES $1,359,742.00

TOTAL ESTIMATED REVENUE REQUIRED
2026-2027 FISCAL YEAR $7,949,113.11
TOTAL APPROPRIATION OR (REPLENISHMENT) ON RESERVE $2,226,990.26

TOTAL ESTIMATED ASSESSMENT
2026-2027 FISCAL YEAR $5,722,122.85
2026-2027 Proposed Potential per dueF Assessment
2026-2027 Max. Possible per dueF Assessment
2026-2027 Total dueF
Stockton Consolidated Landscape Maintenance Assessment District 96-2 Budget 072-6927 072-6928

OAKMORE -

MONTEGO

RANCHO DEL
SOL
E-4 E-5
17,984.00 18,613.00
- -
57,048.00 12,786.00
75,032.00 31,399.00
- -
13,625.00 21,158.00
88,657.00 52,557.00
- -
20,083.00 20,083.00
4,689.00 3,349.00
- -
- -
3,349.00 -
- -
2,500.00 -
5,849.00 -
- -
- -
- -
5,849.00 -
- -
1,222.00 1,206.00
- -
- 16,872.00
- -
- 2,947.00
- 19,819.00
120,500.00 97,014.00
12,050.00 9,702.00
- -
132,550.00 106,716.00
- -
- -
- -
- -
- -
29,922.00 25,911.00
2,693.00 2,332.00
32,615.00 28,243.00
165,165.00 134,959.00
78,494.72 72,876.00
86,670.28 62,083.00
$116.18 $171.50
$375.13 $650.97
746.00 362.00
1 ATTACHMENT B
1312
ZONE A-1, WEBER SPERRY RANCHES:

Zone A-1 is generally bounded by West Lane, the East Bay Municipal Utilities District right-of-way, the Union Pacific Railroad line and the Calaveras River. Improvements maintained include trees in tree wells, back-up walls and the turf on the East Bay Municipal Utilities District right-of-way between West Lane and Lorraine Avenue.

There is a request for an appropriation of $81,388.82 from the reserve for continuing appropriations to balance the budget. The amount remaining in the reserve after this requested appropriation is considered sufficient to meet present. Any unexpended budgeted funds are returned to the Zone A-1 account at the close of the fiscal year.

The reserves in Zone A-1 are not sufficient to continue appropriating funds at proposed FY 2026-27 levels. The zone is currently insolvent with a negative reserve. To address the shortfall, wall repairs will no longer be funded. All walls are a development requirement and are constructed on private property. Stockton Municipal Code (SMC) Section 8.30.040.D obligates the property owner to repair any wall constructed as a condition of development. Reductions in frequency of landscape maintenance services will be evaluated along with a reduction in irrigation frequency. Water for irrigating the East Bay Municipal Utilities District property between Lorraine Avenue and West Lane is $32,132.91 (approximately 23 percent of the FY 2026-27 budget) of the total $143,506.00 proposed Zone A-1 Budget.

When the assessment for Zone A-1 was originally approved, it did not include a provision for an annual escalator. The assessment cannot be increased without the affected property owners voting to approve the increase. Therefore, no change is proposed in the $46.90/dueF assessment for FY 2026-27. If the assessment was set at a level that would fully fund the estimated FY 2026-27 expenditures without an appropriation from the reserve, the assessment would be $108.35 per dueF.

The anticipated Zone A-1 reserve balance as of June 30, 2026, is -$301,240.73. The recommended reserve balance is $1,332,781.01. Zone A-1 would require an appropriation from the reserve to cover contracted expenses, utilities, and administration even without budgeting for eventual, but unscheduled expenditures. This zone cannot continue to fund maintenance of all improvements for which it was formed and at the current service levels.

ZONE A-2, MORADA WEST:

Zone A-2 is generally bounded by Hammer Lane, Maranatha Drive, Christian Life Way and State Route 99. Improvements maintained include the back-up walls and trees in tree wells.

There is a request for an appropriation of $3,236.04 from the reserve for continuing appropriations to balance the budget. The amount in the reserve is not considered sufficient to meet present obligations and still provide for limited future contingencies.

Any unexpended budgeted funds are returned to the Zone A-2 account at the close of