City Council and Concurrent Authorities
September 1, 2026

City Council and Concurrent Authorities
City of Stockton
Meeting Agenda - Final
City Council and
Concurrent Authorities
Christina Fugazi, Mayor/Chair (At Large)
Jason Lee, Vice Mayor (District 6)
Michele Padilla (District 1)
Mariela Ponce (District 2)
Michael Blower (District 3)
Mario Enríquez (District 4)
Brando Villapudua (District 5)
Council Chamber, City Hall, 501 W. Weber Ave,
Building 1, Stockton CA
1:00 PMTuesday, September 1, 2026
Regular Session 1:00 PM :: Closed Session To Follow

1. REGULAR SESSION CALL TO ORDER/ROLL CALL

2. INVOCATION/PLEDGE TO FLAG

3. ADDITIONS TO REGULAR SESSION AGENDA***

4. RECOGNITIONS, ANNOUNCEMENTS, OR REPORTS

4.1 26-0984 COMMENDATION:RECOGNIZING MICHELE J. SHERMAN FOR

CIVIC LEADERSHIP AND COMMUNITY SERVICE
Department: Office of the Mayor

5. PUBLIC COMMENTS* – MATTERS NOT ON THE AGENDA

6. CONSENT AGENDA

6.1 26-0974 APPROVAL OF MINUTES
Recommended Action: RECOMMENDATION
Approve the minutes from the City Council special meeting of August 3, 2026
Department: City Clerk
Attachment A- 2026-08-03.pdfAttachments:

6.2 26-0982 APPROVE RESOLUTION AUTHORIZING THE CITY ATTORNEY TO

ENTER INTO AN AGREEMENT FOR LEGAL SERVICES WITH THE
FIRM OF ZIMMERMAN LAW P.C.

1 September 1, 2026City Council and Concurrent
Authorities
Meeting Agenda - Final
Recommended Action: RECOMMENDATION
It is recommended that the City Council adopt a resolution approving an Agreement for Legal Services with the firm of Zimmerman Law, P.C.

Department: City Attorney
Proposed Resolution - Zimmerman Law, P. C.

Exhibit 1 - Legal Services Agreement
Attachments:

6.3 26-0780 ADOPT A RESOLUTION AUTHORIZING A CONDITIONAL MATCHING

CONTRIBUTION TO SUPPORT THE SERVICE FIRST OF
NORTHERN CALIFORNIA, INC. (SFNC) APPLICATION TO THE

CALIFORNIA DEPARTMENT OF HEALTH CARE SERVICES (DHCS)

BEHAVIORAL HEALTH CONTINUUM INFRASTRUCTURE
PROGRAM (BHCIP) ROUND 1 AWARD FOR THE SFNC RECOVERY
CENTER LOCATED AT 807 NORTH EL DORADO STREET,
STOCKTON, CA 95202
Recommended Action: RECOMMENDATION
It is recommended that the City Council adopt a resolution to:

Authorize a conditional award of $300,000 to support the Service First of Northern California, Inc. (SFNC) application to the California Department of Health Care Services (DHCS) Behavioral Health Continuum Infrastructure Program (BHCIP) Round 1 award for the SFNC Recovery Center located at 807 North El Dorado Street; and
Authorize the City Manager to submit a letter of support to the Department of Health Care Services (DHCS) confirming the City’s conditional commitment of funds and approval of the site change, subject to SFNC compliance with DHCS requirements; and
Subject to SFNC’s compliance with DHCS requirements, authorize a grant of $300,000 to SFNC for the SFNC Recovery Center located at 807 North El Dorado Street; and
Authorize the City Manager, or designee, to take all necessary and appropriate actions to carry out the purpose and intent of the resolution, including the execution of grant documents and subordination agreements.

Department: City Manager
Attachment A - DHCS Letter - 11.07.2025
Attachment B - Approved Resolution 2025-11-18-1604
Attachment C - Around the Bench Memo-11.18.2025
Attachment D - DHCS Response Letter - 08.04.2026
Proposed Resolution
Exhibit 1 - PSA - 807 N. El Dorado Street
Attachments:

6.4 26-0739 ACCEPT THE ANNUAL HEALTH BENEFITS REPORT AND ADOPT

2 September 1, 2026City Council and Concurrent
Authorities
Meeting Agenda - Final
THE MONTHLY PREMIUM RATES FOR THE CITY’S 2027

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

Accept the Annual Health Benefits Report for the City’s medical, dental, and vision plans;
Approve the recommended monthly premium rates for the
City’s 2027 employee health plans; and
Authorize the City Manager or their designee to take the necessary and appropriate actions to carry out the purpose and intent of this motion.

Department: Human Resources
Attachment A - Annual Health Benefits Report
Attachment B - 2027 Health Premiums Rates
Attachments:

6.5 26-0809 APPROVE A MOTION AUTHORIZING AGREEMENT WITH GLOBAL RETIREMENT PARTNERS, LLC d/b/a SHUSTER ADVISORY

GROUP, A HUB INTERNATIONAL COMPANY FOR INVESTMENT

AND RECORDKEEPING ADMINISTRATIVE SERVICES TO
SUPPORT THE CITY’S DEFERRED COMPENSATION PLANS
Recommended Action: RECOMMENDATION
It is recommended that City Council approve a motion to:

Authorize the City Manager, or designee, to execute a three (3) year Memorandum of Understanding (MOU) with an option to extend for two (2) additional one (1) year terms between the City of Stockton (City) and Global Retirement Partners, LLC d/b/a Shuster Advisory Group, for administrative services to support the City’s 457(b), 457(b) Part-time, Temporary, Seasonal, and 401(a) Deferred Compensation Plans, not to exceed $48,000 per year paid directly from the Deferred Compensation Plan with no cost to the City; and
Approve findings which support and justify an exception to the competitive bidding process pursuant to the Stockton Municipal Code Section

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

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

Department: Human Resources
Attachment A - Agreement Shuster Advisory Group, LLCAttachments:

6.6 26-0810 APPROVE A MOTION AUTHORIZING AGREEMENT WITH ALLIANT INSURANCE SERVICES, INC. FOR BENEFITS CONSULTING

SERVICES

3 September 1, 2026City Council and Concurrent
Authorities
Meeting Agenda - Final
Recommended Action: RECOMMENDATION
It is recommended that the City Council approve a motion to:

Authorize the City Manager, or designee, to execute a three (3) year agreement with an option to extend for two (2) additional one (1) year terms between the City of Stockton (City) and Alliant Insurance Services, Inc, for benefits consulting services, not to exceed $750,000.00.

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

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

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

Department: Human Resources
Attachment A - Alliant Insurances, Inc. AgreementAttachments:

6.7 26-0721

APPROVE FINDINGS AND AUTHORIZE THE SOLE SOURCE
PURCHASE OF GE ORBIT 900 MHZ RADIOS FROM APPLIED
TECHNOLOGY GROUP, INC. FOR THE MUNICIPAL UTILITIES

DEPARTMENT (CITYWIDE)
Recommended Action: RECOMMENDATION
It is recommended that the City Council adopt a resolution to:

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

Authorize the purchase of 110 GE Orbit 900 MHz radios from Applied Technology Group, Inc. of Bakersfield, CA, for $317,000.

Authorize the appropriations of Storm, Water, and Wastewater Utility funds in the amount of $317,000 from Fund Balance.

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

Department: Municipal Utilities
Proposed ResolutionAttachments:

6.8 26-0786 ADOPT A RESOLUTION OF INTENTION TO ANNEX TERRITORY

AND TO FORM A NEW ZONE IN THE STOCKTON CONSOLIDATED

STORM DRAINAGE MAINTENANCE ASSESSMENT DISTRICT
(DISTRICT 1)

4 September 1, 2026City Council and Concurrent
Authorities
Meeting Agenda - Final
Recommended Action: RECOMMENDATION
It is recommended that the City Council approve a Resolution of Intention to:

Provide intent to annex territory to a Municipal Improvement District and to form the Stockton Consolidated Storm Drainage Maintenance Assessment District No. 2005-1, Tra Vigne West, Zone 16 (Attachment A), to maintain and operate storm drainage improvements.

Specify that the public interest would be served by establishing the Zone and levying annual assessments for the costs to maintain and operate the storm drainage improvements.

Preliminarily approve the Engineer’s Report, approve a proposed boundary map (Attachment B), and appoint the Engineer of Work.

Set the Public Hearing date on October 27, 2026, and direct the City Clerk to mail public notice to the affected property owners by September 11, 2026, at least forty-five days before the hearing date.

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

Department: Municipal Utilities
Attachment A - Boundary Map
Attachment B - Tra Vigne West Engineer's Report
Attachment C - Stockton Consolidated Storm Drainage Maintenance Assessment District 2005-1 Proposed Resolution
Exhibit 1
Attachments:

6.9 26-0865 ADOPT A RESOLUTION TO AUTHORIZE A THREE-YEAR SOLE

SOURCE AGREEMENT WITH INSOURCE SOFTWARE SOLUTIONS,
INC. FOR AVEVA SOFTWARE SUBSCRIPTION, MAINTENANCE,

AND SUPPORT SERVICES FOR THE MUNICIPAL UTILITIES

DEPARTMENT (ALL DISTRICTS - CITYWIDE)

5 September 1, 2026City Council and Concurrent
Authorities
Meeting Agenda - Final
Recommended Action: RECOMMENDATION
It is recommended that the City Council adopt a resolution to:

Approve findings pursuant to Stockton Municipal Code Section 3.68.070(A) (4) supporting an exception to the competitive bidding process for InSource Software Solutions, Inc. as the sole source vendor for AVEVA software subscription, maintenance, and support services.

Authorize the City Manager, or designee, to execute a three-year agreement with InSource Software Solutions, Inc. for AVEVA software subscription, maintenance, and support services in an amount not to exceed $180,000.00.

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

Department: Municipal Utilities
Proposed Resolution
Exhibit 1
Attachments:

6.10 26-0838 APPROVE RESOLUTION ACCEPTING A DRIVING UNDER THE

INFLUENCE SELECTIVE TRAFFIC ENFORCEMENT PROGRAM

GRANT AWARD FROM THE STATE OF CALIFORNIA OFFICE OF
TRAFFIC SAFETY IN THE AMOUNT OF $435,000
Recommended Action: RECOMMENDATION
It is recommended that the City Council approve a resolution to:

Authorize the City Manager, or designee, to accept a Driving Under the Influence Selective Traffic Enforcement Program grant award from the State of California Office of Traffic Safety in the amount of $435,000; Authorize the City Manager, or designee, to execute Grant Agreement PT27208 and all related documents to carry out the purpose and intent of the grant award;
Amend the Fiscal Year 2026-27 Annual Budget to increase the Police Grants & Special Programs revenue and expenditure appropriation by $435,000; and
Authorize the City Manager, or designee, to take appropriate and necessary actions to carry out the purpose and intent of this resolution.

Department: Police
Proposed Resolution - 2027 OTS
Exhibit 1 - Grant Agreement - PT27208 Stockton PD
Attachments:

6.11 26-0770 ADOPT RESOLUTION TO AUTHORIZE THE GREATER DOWNTOWN BIKE AND PEDESTRIAN CONNECTIVITY PROJECT (DISTRICTS 5
AND 6)

6 September 1, 2026City Council and Concurrent
Authorities
Meeting Agenda - Final
Recommended Action: RECOMMENDATION
It is recommended that the City Council adopt a resolution to:

Appropriate Measure K Smart Growth Incentives funds in the amount of $51,020 to the Greater Downtown Bike and Pedestrian Connectivity, Project No. WT22051/State Project No. ATPSB1L-5008(200).

Approve the plans and specifications for the Greater Downtown Bike and Pedestrian Connectivity, Project No. WT22051/State Project No.

ATPSB1L-5008(200).

Award a Construction Contract in the amount of $1,705,804 to FBD Vanguard Construction, Inc. of Livermore, CA, for the Greater Downtown Bike and Pedestrian Connectivity, Project No. WT22051/State Project No.

ATPSB1L-5008(200).

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

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

6.12 26-0785 ADOPT RESOLUTION TO AUTHORIZE THE OAK PARK SENIOR CENTER RESTROOM RENOVATION PROJECT (DISTRICT 4)
Recommended Action: RECOMMENDATION
It is recommended that the City Council adopt a resolution to:

Approve Notice of Exemption No. NOE49-25 under the California Environmental Quality Act for the Oak Park Senior Center Restroom Renovation, Project No. CR26009.

Approve the plans and specifications for the Oak Park Senior Center Restroom Renovation, Project No. CR26009.

Award a Construction Contract in the amount of $229,238 to Creative Property Renewal, Inc. of Stockton, CA, for the Oak Park Senior Center Restroom Renovation, Project No. CR26009.

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

Department: Public Works

7 September 1, 2026City Council and Concurrent
Authorities
Meeting Agenda - Final
Attachment A - Vicinity Map
Proposed Resolution
Exhibit 1 - NOE49-25
Exhibit 2 - Construction Contract
Attachments:

7. ADMINISTRATIVE MATTERS

8. UNFINISHED BUSINESS

9. HEARINGS**

9.1 26-0898 PUBLIC HEARING FOR THE PROPOSED USE OF THE 2025

EDWARD BYRNE MEMORIAL JUSTICE ASSISTANCE GRANT
Recommended Action: RECOMMENDATION
It is recommended, at the conclusion of the public hearing, that the City Council adopt a resolution:

1. Authorizing the City Manager to accept the Edward Byrne Memorial Justice Assistance Grant (JAG) 2025 allocation in the amount of $340,198;

2. Authorize the City Manager to Approve Amendment No. 14 to the Interlocal Memorandum of Understanding between the City of Stockton (City) and County of San Joaquin (County) to reallocate the 2025 JAG funds;

3. Amend the Fiscal Year 2026-27 Annual Budget to increase the Police Grants & Special Programs revenue and expenditure appropriation by $340,198; and

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

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

Department: Police
Proposed Resolution -JAG 2025
Exhibit 1 - Amendment 14 Interlocal JAG MOU
PPT - 9.1 Edward Byrne JAG
Attachments:

9.2 26-0945 HOLD PUBLIC HEARING TO APPROVE THE ANNUAL BUDGET AND ASSESSMENT ROLLS FOR THE 2026-27 HOLIDAY PARK

MAINTENANCE DISTRICT

8 September 1, 2026City Council and Concurrent
Authorities
Meeting Agenda - Final
Recommended Action: RECOMMENDATION

This scheduled noticed public hearing is being held to consider public comments and testimony regarding the Holiday Park Maintenance District 2026-27 proposed Assessment budget and the levy of assessments.

At the conclusion of the public hearing, if a majority protest does not exist, it is recommended that the City Council adopt a resolution to:

Override any and all public hearing protests.

Approve the Annual Budget for Holiday Park for FY 2026-27.

Confirm and approve the assessment of $46,598 for the Holiday Park Maintenance District for FY 2026-27.

Authorize the City of Stockton Chief Financial Officer to assess those parcels within the assessment district.

Certify the assessments meet the requirements pertaining to the levy of annual assessments.

Approve a subsidy in the amount of $208,727, $13,202 from the General Fund (100-125), and $195,525 from the Strong Communities Fund (210-000) to continue operations and maintenance of the facility.

Authorize the City Manager to take appropriate actions to carry out the purpose and intent of the resolution.

Department: Community Services
Attachment A - Holiday Park Annual Budget.pdf
Attachment B - Holiday Park Assessment District Map
Proposed Resolution
PPT - 9.2 - Holiday Park Maintenance District Assessment Attachments:

10. NEW BUSINESS

10.1 26-0697 APPROVE A RESOLUTION AUTHORIZING AN INITIAL ISSUANCE

OF SPECIAL TAX BONDS ON BEHALF OF THE CITY OF
STOCKTON COMMUNITY FACILITIES DISTRICT NO. 2025-1
(CANNERY PARK EAST) IN THE ESTIMATED AMOUNT OF
$7,650,000 AND A NOT-TO-EXCEED AMOUNT OF $9,000,000

9 September 1, 2026City Council and Concurrent
Authorities
Meeting Agenda - Final
Recommended Action: RECOMMENDATION
It is recommended that the City Council adopt a resolution:

1. Authorizing the issuance and sale of Special Tax Bonds, payable from Special Taxes, for and on behalf of the City of Stockton Community Facilities District 2025-1 (Cannery Park East) in the estimated amount of $7,650,000 (not-to-exceed $9,000,000);

2. Directing the execution of a Fiscal Agent agreement approving as to form a preliminary official statement; and

3. Approving all other documents and actions in connection with the issuance.

Department: Administrative Services
Proposed Resolution
Exhibit 1 - Fiscal Agent Agreement
Exhibit 2 - POS Draft 7.27.26
Exhibit 3 - Bond Purchase Agreement
PPT - 10.1 Cannery Park East Special Tax Bonds 2026
Attachments:

10.2 26-0793 APPROVE BY MOTION THE 3-YEAR ECONOMIC DEVELOPMENT ACTION PLAN: 2026-28
Recommended Action: RECOMMENDATION
It is recommended that the City Council approve by motion:

1. The 3-Year Economic Development Action Plan for the City of Stockton; and

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

Department: Economic Development
Attachment A - 3 Year EDD Action Plan
PPT - 10.2 - Economic Development Action Plan
Attachments:

10.3 26-0944 OPTIC 30-DAY ORGANIZATIONAL ASSESSMENT,

COMMUNICATIONS INVENTORY, AND IMPROVEMENT PLAN
Recommended Action: RECOMMENDATION
It is recommended that Council receive an informational report on OPTIC's organizational assessment, citywide communications inventory, and the measurable improvement plan (Attachments A-C). OPTIC will return at 60 days and 90 days with measured progress against the plan presented here. No Council action is required.

Department: City Manager

10 September 1, 2026City Council and Concurrent
Authorities
Meeting Agenda - Final
Attachment A - Organizational Assessment Report
Attachment B - Communications Inventory and Recommendations Attachment C - Staff Development and Work Plan Summary
PPT - 10.3 - OPTIC 30-Day Plan
Attachments:

11. CITY MANAGER'S UPDATE

12. COUNCIL COMMENTS

13. ADDITIONS TO CLOSED SESSION AGENDA

14. ANNOUNCEMENT OF CLOSED SESSION

14.1 26-0967 CONFERENCE WITH LABOR NEGOTIATOR
Agency Designated Representative: City Manager Johnny Ford; Deputy City Manager Will Crew; Deputy City Manager Christine Tien; Interim City Attorney Donald Larkin; Chief Financial Officer Gilbert Garcia, Admin Budget Officer John al -Amin; Interim Director of Human Resources Marie Guillory-Jones; Supervising HR Analyst Labor Jasmine Pantoja; Police Chief McFadden; Assistant Chief Scott Graviette; Fire Chief Carr; and Legal Counsel, Che Johnson and Michael Jarvis of Liebert Cassidy Whitmore
Employee Organizations: Unrepresented Units, Stockton City Employees ’ Association, Operating Engineer ’s Local 3, Mid -Management/Supervisory Level Unit, Unrepresented Management /Confidential, Law Department, Stockton Police Management Association, Stockton Firefighters Local 456 International Association of Firefighters, Stockton Fire Management, Stockton Police Officers’ Association (SPOA)
This Closed Session is authorized pursuant to section 54957.6(a) of the Government Code.

Department: City Attorney

15. RECESS TO CLOSED SESSION

16. REPORT OF ACTION TAKEN IN CLOSED SESSION

17. ADJOURNMENT

1. INFORMATIONAL ITEMS

1.1 26-0971 COUNCIL COMMITTEE/BOARD AND COMMISSION MINUTES

11 September 1, 2026City Council and Concurrent
Authorities
Meeting Agenda - Final
Recommended Action: RECOMMENDATION
Information item only. No action required.

Department: City Clerk
Council Water Committee 2026-03-12.pdf
Council Water Committee 2026-04-09.pdf
Civil Service minutes 2026-06-23.pdf
Strong Communities Advisory Committee minutes 2025-11-20.pdf Strong Communities Advisory Committee minutes 2026-04-08.pdf Strong Communities Advisory Committee minutes 2026-06-04.pdf Attachments:

CERTIFICATE OF POSTING
I declare, under penalty of perjury, that I am employed by the City of Stockton and that I caused this agenda to be posted in the City Hall notice case on August 28,2026, in compliance with the Brown Act.

Katherine Roland, CMC, CPMC
City Clerk
By: ________________________________

Deputy

12 City of Stockton
Legislation Text
File #: 26-0984, Version: 1
COMMENDATION:RECOGNIZING MICHELE J. SHERMAN FOR CIVIC LEADERSHIP AND

COMMUNITY SERVICE
City of Stockton Printed on 8/28/2026Page 1 of 1
powered by Legistar™
13 City of Stockton
Legislation Text
File #: 26-0974, Version: 1

APPROVAL OF MINUTES

RECOMMENDATION
Approve the minutes from the City Council special meeting of August 3, 2026 Attachment A - 2026-08-03
City of Stockton Printed on 8/28/2026Page 1 of 1
powered by Legistar™
14 ATTACHMENT A
15 ATTACHMENT A
16 City of Stockton
Legislation Text
File #: 26-0982, Version: 1

APPROVE RESOLUTION AUTHORIZING THE CITY ATTORNEY TO ENTER INTO AN AGREEMENT FOR LEGAL SERVICES WITH THE FIRM OF ZIMMERMAN LAW P.C.

RECOMMENDATION
It is recommended that the City Council adopt a resolution approving an Agreement for Legal Services with the firm of Zimmerman Law, P.C.

Summary
The City needs to hire outside counsel from time to time to handle special, complex legal matters, including litigation, personnel, water, wastewater, stormwater, solid waste, public-works, complex transactions, fee, tax and real estate issues, and maritime matters. Section 1306 of the City Charter authorizes the Office of the City Attorney to retain or employ outside counsel with the approval of the City Council.

DISCUSSION
Background
Under City Charter Section 1301, the City Attorney is the primary legal officer for the City, and advises the City Council, Boards, Commissions, and other officers on legal issues related to their jobs. The City Attorney is also responsible for representing the City in “all suits, actions, and proceedings in behalf of or against the City . . .” While the current structure of the City Attorney’s Office is designed to minimize the need for outside counsel, there are a number of vacancies, including the City Attorney position, that require the office to utilize outside counsel. In addition, certain areas of the law either require a higher level of specification than is typically found in an in- house City Attorney’s Office, or they can be handled more efficiently by an outside firm.

Currently, the City Attorney role is being filled on an interim basis by the law firm of Burke, Williams & Sorensen, LLP. While the Burke firm is a full-service firm, with specialization in all areas of municipal law, there are circumstances in which it may be more cost-effective and/or efficient to use another firm for specific projects or litigation. Section 1306 of the City Charter allows the Office of the City Attorney to retain outside legal counsel with the approval of the City Council.

Present Situation
The City has a particular need for the availability of experienced counsel to handle both general and specialized litigation matters that are better served by independent outside counsel. While the City Attorney’s Office will continue to provide oversight of all litigation matters, certain matters can be handled more efficiently by outside counsel. The City Attorney’s Office is requesting authorization to City of Stockton Printed on 8/28/2026Page 1 of 2
powered by Legistar™
17 File #: 26-0982, Version: 1
hire Zimmerman Law, P.C. as outside counsel to assist with litigation matters on an as-needed basis.

Their respective hourly rates and other fees are reasonable and extremely competitive.

FINANCIAL SUMMARY
Legal services will be billed on an hourly basis pursuant to the rates set forth in the Agreement. The fees will be paid through various accounts, depending on the nature of each matter.

City of Stockton Printed on 8/28/2026Page 2 of 2
powered by Legistar™
18 Resolution No.

STOCKTON CITY COUNCIL

RESOLUTION AUTHORIZING THE CITY ATTORNEY TO ENTER INTO AN AGREEMENT FOR LEGAL SERVICES WITH ZIMMERMAN LAW, P.C.

The need for specialized expertise and/or workload demands of the City Attorney's Office periodically results in a need to hire outside counsel; and

The City of Stockton currently desires to retain the law firm of Zimmerman Law, P. C., to represent the City in litigation matters as the need arises; and

The law firm of Zimmerman Law, P.C., possesses the qualifications and personnel needed by the City in handling such matters; and

Section 1306 of the City Charter authorizes the City Attorney to retain or employ outside counsel with the approval of the City Council; now, therefore,

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

1. The City Council hereby approves the selection of Zimmerman Law, P.C., to advise the City in litigation matters as the need arises.

2. The City Attorney is authorized to execute an agreement for legal services with the law firm of Zimmerman Law, P.C. in substantially the form as attached as Exhibit 1 and incorporated by this reference.

PASSED, APPROVED, and ADOPTED September 1, 2026 .

CHRISTINA FUGAZI
Mayor of the City of Stockton
ATTEST:

KATHERINE ROLAND, CMC, CPMC
City Clerk of the City of Stockton
19 EXHIBIT 1
- 1 -

AGREEMENT FOR LEGAL SERVICES
THIS AGREEMENT is made and entered into effective , 2026, by and between the CITY OF STOCKTON, a municipal corporation (“CITY”), and the law office of Zimmerman Law, P.C. (" FIRM").

W I T N E S S E T H

The City Attorney of the City of Stockton provides legal counsel and representation to the CITY and the Council members, Board members, officers, and employees of the CITY; and

Pursuant to Section 1306 of the Charter of the City of Stockton, the City Attorney shall not retain or employ outside counsel without the approval of the City Council; and The CITY and FIRM have determined that FIRM is especially qualified to provide labor and employment litigation advice and counsel and represent the CITY in legal matters on behalf of the CITY; and

NOW, THEREFORE, in consideration of these premises and the following terms and conditions, FIRM and CITY agree as follows:

1. CONDITIONS AND BILLING ATTORNEY DESIGNATION.

This Agreement will take effect, and FIRM will only be obligated to provide legal services as needed once this Agreement is fully signed and initialed by both parties.

2. SCOPE OF SERVICES.

CITY hires FIRM to provide legal services as may be requested by CITY from time to time under this retainer ag reement. No representation of any officials, officers, employees, or any other persons or entities affiliated with CITY shall be provided unless such representations is expressly authorized by the City Attorney, which such written authorization shall be deemed to be a part of this Agreement. F I R M will provide those legal services reasonably required to represent CITY. FIRM will take reasonable steps to keep CITY informed of progress and to respond timely to CITY’s inquiries. If a court action is filed, FIRM will represent CITY through trial and post-trial motions.

3. CITY’S DUTIES.

CITY agrees to be truthful with FIRM, to cooperate, to keep FIRM informed of any information or developments which may come to CITY’s attention, to abide by this Agreement, to pay FIRM’s bills on time, and to keep FIRM advised of CITY’s address, 20 EXHIBIT 1
- 2 -

telephone number, and whereabouts. CITY will assist FIRM in providing necessary information and documents and will appear when necessary, at legal proceedings.

4. CONFLICTS OF INTEREST.

By accepting representation of CITY, FIRM acknowledges that it has undertaken reasonable and customary efforts to determine whether t here are any potential conflicts of interest or adversity of positions between CITY and any other person or entity in accordance with the Rules of Professional Conduct adopted in California, which would bar FIRM from representing CITY in general. CITY’s ex ecution of this Agreement represents an express agreement to the applicability of the Rules of Professional Conduct adopted in California as to any and all issues of representation arising under this Agreement. FIRM currently provides legal services to the Port of Stockton. The FIRM and CITY are not aware of any matter in direct conflict between CITY and the Port of Stockton at this time. If a conflict between the parties arises, the FIRM will comply with all California Rules of Professional Conduct.

5. INDEPENDENT CONTRACTOR/CONFLICTS OF INTEREST.

FIRM shall be employed solely as an independent contractor to render a professional service, is responsible for all obligations consistent with that status, and nothing contained herein shall be interpreted so as to cause FIRM to be considered an employee of CITY. Consistent with FIRM’s independent contractor status, nothing contained herein shall be deemed to prohibit or limit FIRM from representing parties other than those expressly covered by this Agreement, provided that FIRM shall not represent CITY’s officials, officers, employees, board members and commissioners (whether individually or collectively) in disputes with CITY or in any other investigation, administrative proceeding, or litigation against CITY which would conflict with CITY’s interests or create any other conflict as prohibited by law or the canons of ethics of the State Bar of California.

6. DISCLOSURE.

By executing and returning this Agreement, FIRM discloses that it maintains professional errors an d omissions insurance pursuant to the requirements of California Business & Professions Code section 6148.

7. INDEMNIFICATION.

To the fullest extent permitted by law, FIRM shall hold harmless, defend and indemnify City of Stockton and its officers, officials, employees, and volunteers from and against any and all liability, loss, damage, expense, costs (including without limitation costs and fees of litigation) of every nature caused by the negligence or willful misconduct of FIRM in its performance of work hereunder or its failure to comply with any of its obligations contained in the agreement, except such loss or damage which was caused by the 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

21 EXHIBIT 1
- 3 -

obligations contained in this agreement. These obligations shall survive the completion or termination of this agreement.

8. INSURANCE REQUIREMENTS.

FIRM shall secure and maintain at its own e xpense during the life of this Agreement Workers’ Compensation and other insurance coverage in the forms and amounts set forth in the attached Exhibit “C,” which is incorporated herein by reference.

9. LICENSES, PERMITS, AND COMPLIANCE WITH LAW.

FIRM represents and warrants that prior to commencing any work under this Agreement, it shall obtain and maintain at its own expense during the life of this Agreement any other licenses, permits, qualifications, and approval required to practice its profession and perform the contract services and shall comply with any and all applicable local, State, and federal laws in performing the contract services.

10. NOTICES.

Any written notice to be given to the parties in connection with this Agreement may be affected by personal delivery or by mail and shall be considered effectively tendered upon actual receipt. Mailed notices shall be addressed as set forth below:

To CITY: City Attorney
501 West Weber Avenue,
Stockton, CA 95203

To FIRM: Zimmerman Law, P.C.
1755 Creekside Oaks
Drive, Suite 240
Sacramento, CA 95833

11. LEGAL FEES AND BILLING PRACTICES.

CITY agrees to pay by the hour at FIRM’s prevailing rates for all time spent on CITY’s matter(s) by FIRM’s legal personnel. FIRM’s current hourly rates for work on CITY’s matters are set forth in Exhibit “A” to this Agreement.

Any change in FIRM’s rates as set forth in Exhibit “A” to this Agreement must be sent to CITY in writing 30 days prior to implementation so that CITY may accept or reject the changes as to matters being handled by FIRM at that time.

The legal personnel assigned to CITY’s matter may confer among themselves about the matter, as is reasonably required and appropriate. When they do confer, each person will charge for the time expended, as long as th e work done is reasonably necessary and not duplicative. Likewise, if more than one of the legal personnel 22 EXHIBIT 1
- 4 -

attends a meeting, court hearing or other proceeding, each will charge for the time spent. CITY reserves the right to disapprove the second charge.

12. COSTS AND OTHER CHARGES.
(a) CITY agrees to pay for FIRM’s costs, disbursements, and expenses in addition to its hourly fees for the performance of legal services under this Agreement.

These costs and expenses commonly include service of process charges, filing fees, court and deposition reporters' fees, jury fees, notary fees, deposition costs, messenger and other delivery fees, travel costs including parking, meals and hotel costs, investigation expenses, consultants' fees, expert witness, prof essional, mediator, arbitrator and/or special master fees.
(b) Out of town travel. CITY agrees to pay transportation, meals, lodging, and all other costs of any necessary out -of-town travel by FIRM’s personnel, only if pre - approved by CITY. CITY will be charge d the hourly rates for time spent on such pre - approved travel.
(c) Experts, Consultants, and Investigators. To aid in the preparation or presentation of CITY’s case, it may become necessary to hire expert witnesses, consultants, investigators, and outsourced s upport services. CITY agrees to pay such fees and charges. FIRM will select any expert witnesses, consultants, investigators, or support services to be hired , and CITY will be informed of persons chosen and their charges.

Additionally, CITY understands tha t if the matter proceeds to court action or arbitration, CITY may be required to pay fees and/or costs to other parties in the action.

Any such payment will be entirely the responsibility of CITY.

13. BILLING STATEMENTS.

FIRM shall submit to CITY, through the City Attorney’s Office, a monthly statement.

Each statement shall set forth a description of the legal services rendered for the preceding month in sufficient detail to allow CITY to evaluate whether the fees and costs billed are reasonable in light of the services rendered. In addition, the monthly statements shall include the date of the service, the identity, the duration of the service in tenths of an hour increments and the hourly rate, of the attorney or other staff members performing the service, any reimbursable costs with receipts att ached, the itemized and total billing for the statement period. There shall be no bundling of charges. Each activity for which reimbursement is being sought shall be listed separately and shall be followed by the duration and cost for the particular activity. Each monthly statement shall also include a separate cover sheet which lists the total charges due and payable in a format as illustrated in the attached Exhibit “B,” which is incorporated herein by this reference.
//
//
//
23 EXHIBIT 1
- 5 -

14. DISCHARGE AND WITHDRAWAL.

CITY may discharge FIRM at any time. FIRM may withdraw with CITY’s consent or for good cause. Good cause includes CITY’s breach of this Agreement, refusal to cooperate or to follow FIRM’s advice on a material matter or any fact or circumstance that would render FIRM’s continuing representation unlawful or unethical. When FIRM’s services conclude, all unpaid charges will immediately become due and payable. After services conclude, FIRM will deliver CITY’s file and property in FIRM’s possession whether or not CITY has paid for all services.

15. DOCUMENT RETENTION POLICY.

CITY is entitled to any files in FIRM’s possession relating to the legal services performed by FIRM for CITY, excluding FIRM’s internal accounting records and other documents not reaso nably necessary to CITY’s representation. Once a matter is concluded, FIRM will close the file, and CITY will receive notice and a copy thereof.

All CITY-supplied materials and all attorney end product (referred to generally as "CITY material") are the pro perty of CITY. Attorney end product includes, for example, finalized contracts, pleadings, and trust documents. Attorney work product is the property of FIRM. Attorney work product includes, for example, drafts, notes, internal memoranda and electronic fil es, and attorney representation and administration materials, including attorney-CITY correspondence and conflicts materials.

16. DISCLAIMER OF GUARANTEE AND ESTIMATES.

Nothing in this Agreement or in FIRM’s preliminary statements to CITY will be construed as a promise or guarantee about the outcome of the matter. FIRM’s comments about the outcome of the matter will be taken as expressions of opinion only. Any estimate of fees given by FIRM shall not be a guarantee. Only the detailed invoices to be provided to CITY shall constitute the amount owed for legal services performed on CITY’s behalf.

17. MEDIATION/ARBITRATION; WAIVER OF JURY TRIAL.

If a dispute arises out of or relating to any aspect of this Agreement between CITY and FIRM, or the breach thereof, and if the dispute cannot be settled through negotiation, FIRM and CITY agree to discuss in good faith the use of mediation before resorting to arbitration, litigation, or any other dispute resolution procedure. Nothing herein shall limit or otherwise affect CITY’s right under sections 6200-6206 of the California Business and Professions Code to request arbitration of any fee dispute by an independent, impartial arbitrator or panel of arbitrators through a bar association program created solely to resolve fee disput es between lawyers and CITYs. However, should discussions, mediation or non-binding arbitration provided through a local bar association program not resolve the dispute, each party is entitled to pursue all other available legal remedies. The claims or controversies subject to this provision shall include, without limitation, any claim of professional negligence or malpractice.
24 EXHIBIT 1
- 6 -

18. ATTORNEYS’ FEES CLAUSE.

The prevailing party in any action or proceeding arising out of or to enforce any provision of this Agreement, with the exception of a fee arbitration or mediation under Business and Professions Code sections 6200 -6206, will be awarded reasonable attorneys’ fees and costs incurred in that action or proceeding, or in the enforcement of any judgment or award rendered.

19. ENTIRE AGREEMENT.

This Agreement contains the entire agreement of the parties. No other agreement, statement, or promise made on or before the effective date of this Agreement will be binding on the parties.

20. SEVERABILITY IN EVENT OF PARTIAL INVALIDITY.

If any provision of this Agreement is held in whole or in part to be unenforceable for any reason, the remainder of that provision and of the entire Agreement will be severable and remain in effect.

21. MODIFICATION BY SUBSEQUENT AGREEMENT.

This Agreement may be modified by subsequent agreement of the parties only by an instrument in writing signed by both of them.

22. EFFECTIVE DATE.

This Agreement will govern all legal services performed by FIRM on behalf of CITY commencing with the date FIRM first performs services. The date at the beginning of this Agreement is for reference only.

23. AUTHORITY TO CONTRACT.

The undersigned hereby represent and warrant that they are authorized by the parties to execute this Agreement.

IN WITNESS WHEREOF, the part ies hereto have executed this Agreement the day and year first above written.

ZIMMERMAN LAW, P.C.

CITY ATTORNEY

By: By:

CITY ATTORNEY ROBERT ZIMMERMAN

“‘CITY” “FIRM”
25 EXHIBIT 1
- 7 -

EXHIBIT “A”

1. FIRM shall be compensated for work under this Agreement at the standard hourly rates of FIRM's attorneys and paralegals in effect at the time services are rendered.

The current standard hourly rates are as follows:

Partner/Senior Associates $350- $450

Associates $275- $290

Paralegals $215

The particular rates charged within the above ranges will depend on the experience of the attorney and the subject matter.

2. FIRM shall also charge for expenses such as photocopying, telecopying, postage, express delivery, long distance telephone, travel costs, filing and publication fees, as applicable, and other out-of-pocket expenses related to this engagement.

3. FIRM shall bill for services here under not more frequently than monthly, and such invoice shall be payable upon receipt.
26 EXHIBIT 1
- 8 -

EXHIBIT “B”

YOUR LETTERHEAD

City of Stockton Date:

Attn: City Attorney Invoice No.
501 West Weber Street
Stockton California 95203-1997
Our File No.

SUBJECT MATTER/CASE NAME & NUMBER

For Legal Services rendered through as fully described on the attached detailed billing.

TOTAL FEES $
TOTAL EXPENSES $

**TOTAL CHARGES FOR THIS BILL** $
27 EXHIBIT 1
- 9 -

EXHIBIT “C”

Insurance Requirements for Professional Services

Consultant shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder by the Consultant, its agents, representatives, or employees.

MINIMUM SCOPE AND LIMIT OF INSURANCE

Coverage shall be at least as broad as:

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

2. Automobile Liability: Insurance Services Office Form Number CA 0001 covering, Code 1 (any auto), or if Consultant has no owned autos, Code 8 (hired) and 9 (non - owned), with limit no less than $1,000,000 per accident for bodily injury and property damage.

3. Workers’ Compensation insurance as required by the State of California, with Statutory Limits, and Employer’s Liability Insurance with limit of no less than $1,000,000 per accident for bodily injury or disease.
(Not required if consultant provides written verification it has no employees)

4. Professional Liability (Errors and Omissions) Insurance appropriates to the Consultant’s profession, with limit no less than $1,000,000 per occurrence or claim, $1,000,000 aggregate.

If the Consultant 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 availab le 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:
//
28 EXHIBIT 1
- 10 -

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 equipment furnished in connection with such work or operations. General liability coverage can be provided in the form of an endorsement to the Contractor’s insurance (at least as broad as ISO Form CG 20 10 11 85 or if not available, through the addition of both CG 20 10, CG 20 26, CG 20 33, or CG 20 38; and CG 20 37 if a later edition is used). Additional insured Name of Organization shall read “City of Stockton, its officers, officials, employees, and volunteers.” Policy shall cover City of Sto ckton, its officers, officials, employees, and volunteers for all locations work is done under this contract.

Primary Coverage
For any claims related to this contract, the Contractor’s insurance coverage shall be primary and non-contributory and at least as broad as ISO CG 20 01 04 13 as respects the City of Stockton, its officers, officials, employees, and volunteers. Any insurance or self-insurance maintained by the City of Stockton, its officers, officials, employees, or volunteers shall be excess of th e Contractor’s insurance and shall not contribute with it.

This requirement shall also apply to any Excess or Umbrella liability policies. The City of Stockton does not accept endorsements limiting the Contractor’s insurance coverage to the sole negligence of the Named Insured.

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

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

Waiver of Subrogation
Contractor hereby grants to City of Stockton a waiver of any right to subrogation which any insurer of said Contractor may acquire against the City of St ockton 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 recei ved a waiver of subrogation endorsement from the insurer.
29 EXHIBIT 1
- 11 -

Self-Insured Retentions

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

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

Claims Made Policies
If any of the required policies provide claims-made coverage:

1. The Retroactive Date must be shown and must be before the date of the contract or the beginning of contract work.

2. Insurance must be maintained, and evidence of insurance must be provided for at least five (5) years after completion of the contract of work.

3. If coverage is canceled or non-renewed, and not replaced with another claims-made policy form with a Retroactive Date prior to the contract effective date, the 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 and a copy of the Declarations and Endorsements Pages of the CGL and any Excess policies listing all policy endorsements. All certificates and endorsements and copies of the Declarations & Endorsements pages are to be received and approved by the City of Stockton before work commences. However, failure to obtain the required documents prior to the work beginning shall not waive the 30 EXHIBIT 1
- 12 -

Contractor’s obligation to provide them. The City of Stockton reserves the right to require complete, certified copies of all required insurance policies, including endorsements required by these specifications, at any time. City of Stockton reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances.

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

Duration of Coverage
CGL & Excess liability policies for any construction related work, including, but not limited to, maintenance, service, or repair work , shall continue coverage for a minimum of 5 years for Completed Operations liability coverage. Such Insurance must be maintained, and evidence of insurance must be provided for at least five (5) years after completion of the contract of work.

Special Risks or Circumstances
City of Stockton reserves the right to modify these requirements, including limits, based on the natur e 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
501 West Weber Avenue – HR
Stockton, CA 95203
REV 2022-05-17
31 City of Stockton
Legislation Text
File #: 26-0780, Version: 1

ADOPT A RESOLUTION AUTHORIZING A CONDITIONAL MATCHING CONTRIBUTION TO SUPPORT THE SERVICE FIRST OF NORTHERN CALIFORNIA, INC. (SFNC) APPLICATION TO

THE CALIFORNIA DEPARTMENT OF HEALTH CARE SERVICES (DHCS) BEHAVIORAL HEALTH CONTINUUM INFRASTRUCTURE PROGRAM (BHCIP) ROUND 1 AWARD FOR THE SFNC RECOVERY CENTER LOCATED AT 807 NORTH EL DORADO STREET, STOCKTON, CA 95202

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

1. Authorize a conditional award of $300,000 to support the Service First of Northern California, Inc. (SFNC) application to the California Department of Health Care Services (DHCS) Behavioral Health Continuum Infrastructure Program (BHCIP) Round 1 award for the SFNC Recovery Center located at 807 North El Dorado Street; and

2. Authorize the City Manager to submit a letter of support to the Department of Health Care Services (DHCS) confirming the City’s conditional commitment of funds and approval of the site change, subject to SFNC compliance with DHCS requirements; and

3. Subject to SFNC’s compliance with DHCS requirements, authorize a grant of $300,000 to SFNC for the SFNC Recovery Center located at 807 North El Dorado Street; and

4. Authorize the City Manager, or designee, to take all necessary and appropriate actions to carry out the purpose and intent of the resolution, including the execution of grant documents and subordination agreements.

Summary
In October 2024, the State of California released the Request for Applications for the Behavioral Health Continuum Infrastructure Program (BHCIP) Round 1: Launch Ready grant funds. Through this process, over $3.3 billion was made available to construct, acquire, or rehabilitate real estate assets, expanding the continuum of behavioral health treatment and service resources for Californians.

Under Round 1: Launch Ready grant, the state focused on the statewide behavioral health continuum and prioritized mental health community residential beds and crisis settings. Service First of Northern California (SFNC) received a conditional award of $8,239,637.33 for the proposed Recovery Center located at 1005 N El Dorado St, Stockton, CA 95202 (Original Property) (Attachment A).

City of Stockton Printed on 8/28/2026Page 1 of 3
powered by Legistar™
32 File #: 26-0780, Version: 1

DISCUSSION
Background
As a requirement for state funds, applicants must meet the minimum matching funds requirement based on the project award amount. In May 2025, Department of Health Care Service (DHCS) sent SFNC a BHCIP conditional award letter outlining expectations and next steps to demonstrate acceptance of conditional funding, including a requirement to submit supporting documentation. In July 2025, Advocates for Human Potential, Inc. (AHP), the Bond BHCIP administrative entity, received a letter from the then Interim City Manager conveying a commitment to provide matching funding.

In November 2025, DHCS and AHP met with SFNC to discuss the need for a revised cash match to confirm that SFNC could still meet the requirement for Bond BHCIP Round 1. Acceptable documentation would include a letter dated and signed by the current authorizing City Manager, bank statements, and other acceptable evidence of a source, which are subject to DHCS’ sole discretion and approval.

On November 18, 2025, City Council approved Resolution 2025-11-18-1604 committing a conditional $300,000 match for the Service First of Northern California Recovery Center at 1005 N. El Dorado St, Stockton, CA 95202 (Attachment B). An Around-the-Bench Memo to Council accompanied the presentation at the November 18, 2025, meeting, which outlined that funding from the California Opioid Settlement Fund program account could serve as matching funds, contingent upon a compliant final award agreement with SFNC (Attachment C). The $300,000 contribution from the City would be added to the other funding sources that SFNC is using to complete the minimum match requirement.

In July 2026, the seller of the Original Property canceled the real estate transaction. The property located at 807 N. El Dorado St, Stockton, CA 95202 (New Property) has been identified as a suitable alternate site.

On August 4, 2026, SFNC provided the following documentation to the City:

1. Letter of support from the Director of San Joaquin County Behavioral Health Services acknowledging SFNC’s change to the project location; and

2. Letter from DHCS outlining required conditions and deadlines to approve the project alternative location and site control (Attachment D).

DHCS approval is conditional upon these actions by Service First, with the deadline of September 3, 2026:
a) Securing an alternate location with site control, initiating the formal scope change process, and providing detailed plans to DHCS;
b) Letters of support from the City and County Behavioral Health Services consenting to the alternative location; and
c) Submitting a Purchase and Sale Agreement (PSA) to DHCS.

City of Stockton Printed on 8/28/2026Page 2 of 3
powered by Legistar™
33 File #: 26-0780, Version: 1
Under the Original Property site plan, SFNC stated that the California Recovery Center would provide the following facilities:
· Adult Residential Substance Use Disorder (SUD) Treatment Facility with 16 beds · Outpatient treatment for SUD with 72 slots
· Social Rehabilitation Facility with 16 beds
· Peer Respite with 4 beds
Upon Council approval, the City will submit a letter of support approving the conditional commitment of $300,000 of matching funds toward Service First of Northern California’s Recovery Center and approving the site change for the facility to be located at 807 N. El Dorado Street. City of Stockton funding is contingent on the full award amount to be provided by the State, as well as SFNC adhering to all conditions outlined in the DHCS letter dated August 4, 2026, a response to which is due by September 3, 2026.

Subject to SFNC’s compliance with DHCS requirements, staff recommends that the conditional funding award of $300,000 be provided to SFNC in the form of a grant, which may be used toward construction, acquisition, and rehabilitation. The City financing will have a 30-year term (and compliance period). A Grant Agreement, Deed of Trust, and Regulatory Agreement will be executed and recorded against the property to secure the City’s investment and restrictions on the use of the property. Upon all financing being obtained for the project, the City’s grant may require subordination to the other funding sources. Even in a subordinate position, upon completion of the project, there will be sufficient value to secure the City’s funding.

FINANCIAL SUMMARY
This resolution conditionally commits up to $300,000 to the SFNC Recovery Center BHCIP grant located at 807 N. El Dorado Street. Previously identified funding from the California Opioid Settlements account remains available for this match.

Attachment A - DHSC Conditional Award Letter - November 7, 2025 Attachment B - Approved Resolution 2025-11-18-1604
Attachment C - SFNC Around the Bench Memo
Attachment D - DHCS Response Letter Regarding Site Change - August 4, 2026 City of Stockton Printed on 8/28/2026Page 3 of 3
powered by Legistar™
34 California Department of Health Care Services
Community Services Division
P.O. Box 997413 | Sacramento, CA | 95899
MS 2635 | Phone (916) 440-7800 | w ww.dhcs.ca.gov
State of California
Gavin Newsom, Governor
California Health and Human Services Agency
November 7, 2025

THIS LETTER SENT VIA EMAIL
Mr. Ernest Hill, President
Service First of Northern California
102 West Bianchi Road
Stockton, California 95207

BOND BEHAVIORAL HEALTH CONTINUUM INFRASTRUCTURE PROGRAM (BHCIP) ROUND 1: LAUNCH READY CONDITIONAL AWARD AND REQUIRED

MATCHING FUNDS/DOCUMENTATION
Dear Mr. Hill:

The Department of Health Care Services (DHCS) is writing to inform Service First of Northern California (SFNC) regarding the conditional award in the amount of $8,239,637.33 in Bond BHCIP Round 1: Launch Ready grant funds and the subsequent match requirement for the Service First of Northern California Recovery Center located at 1005 North El Dorado Street, Stockton, California 95202 expanding the following:

Adult Residential SUD Treatment Facility with 16 beds
Outpatient Treatment for SUD with 72 slots projected to serve 18,720 individuals annually in an outpatient setting
Social Rehabilitation Facility with 16 beds
Peer Respite with 4 beds
The conditional award remains contingent upon the required match of 10% of the total conditional award. In this case, SFNC
minimum required 10% match equates
to $823,963.73.

On May 6, 2025, DHCS sent SFNC a Bond BHCIP Round 1: Launch Ready conditional award letter via email outlining expectations and next steps to demonstrate acceptance of the conditional funding award, including a requirement that conditional awardees submit supporting documentation to meet match requirements by May 16, 2025.

On May 14, 2025, SFNC notified Advocates for Human Potential, Inc. (AHP), the Bond BHCIP administrative entity, that the State of California Homeless Housing, Assistance, and Prevention (HHAP) Program funds as identified as the cash match source in the submitted application was no longer available.

ATTACHMENT A
35 Mr. Hill

November 7, 2025
On June 25, 2025, AHP received verbal confirmation from SFNC that the City of Stockton was committing to pledge the cash match required as a condition of the award.

On July 15, 2025, AHP received cash match documentation via a letter dated June 30, 2025, signed by Steve Colangelo, the Interim City Manager of the City of Stockton, on official letterhead, conveying a commitment to provide the necessary cash match as a condition of the award.

On November 4, 2025, DHCS was notified that the Interim City Manager, Steve Colangelo, had vacated his position, and his authority to pledge city funds in the amount necessary to meet the cash match requirement was under review and may not be a viable cash match source, as required, for the project.

On November 6, 2025, DHCS and AHP met with SFNC to discuss the situation and convey that revised cash match documentation would be necessary to confirm the cash match commitment could still be met as a required term of the Bond BHCIP Round 1: Launch Ready conditional award.

Therefore, DHCS will allow SFNC until November 21, 2025, no later than 5 p.m. PT, to submit additional match documentation in the grant portal to fulfill the $823,963.73 total match requirement. SFNC must submit acceptable documentation to account for $749,486.00 cash match as identified in the submitted application and the remaining $74,477.73 applied as either sunk costs or cash match. On record, to date, SFNC had submitted $67,000.00 in sunk costs as identified in the grant portal and under review.

As a condition of the Bond BHCIP Round 1 conditional funding award, SFNC must meet all match requirements and demonstrate the cash match is available.

Acceptable documentation may include letter dated and signed by the current authorizing Stockton City Manager, bank statements, and other acceptable evidence of cash .

Failure to provide the requested match documentation and meet all match requirements as a required term of accepting the Bond BHCIP conditional funding award by the aforementioned deadline, will result in DHCS rescinding the $8,239,637.33 Bond BHCIP Round 1 conditional grant funding award.

As stated in the Bond BHCIP Round 1: Launch Ready Request for Applications, California law does not provide a protest or appeal process against award decisions made through an informal selection method. All award decisions made by DHCS shall be final.

If you have any questions or need further clarification, please do not hesitate to contact DHCS and AHP at [email protected].

ATTACHMENT A
36 Mr. Hill

November 7, 2025
Sincerely,
Marlies Perez
Division Chief, Community Services Division
Project Executive, Behavioral Health Transformation
Department of Health Care Services

ATTACHMENT A
37 ATTACHMENT B
38 ATTACHMENT B
39 MEMORANDUM
November 18, 2025
TO: City Council
FROM: William Crew, Acting City Manager
SUBJECT: AGENDA ITEM 16.4 - APPROVE A RESOLUTION SUPPORTING THE APPLICATION OF SERVICE FIRST CALIFORNIA, INC. FOR THE

LOCAL GOVERNMENT MATCHING GRANTS PROGRAM FOR

BEHAVIORAL HEALTH CONTINUUM INFRASTRUCTURE PROGRAM
(BHCIP) ROUND 1 FOR THE SERVICE FIRST OF NORTHERN CALIFORNIA RECOVERY CENTER LOCATED AT 1005 NORTH EL DORADO ST, STOCKTON, CA 95202
After a more detailed review of possible funding sources for this item, staff have determined that the Affordable Housing Program is not an allowable source of funding.

However, staff have identified a possible alternative option to fulfill the proposed local government match of $300,000, appropriating funds from the California Opioid SettlementFund Program With Council approval of its intent to fund, staff will continue to research program guidelines to ensure any subsequent funding award agreement with Service First California, Inc meets compliance requirements, prior to coming back to Council forapproval of the fi I agreement.

WILLIAM CREW

ACTING CITY MANAGER
emc: Lori Asuncion, City Attorney
Katherine Roland, City Clerk

ATTACHMENT C
40 ATTACHMENT D
41 ATTACHMENT D
42 Resolution No.

STOCKTON CITY COUNCIL

RESOLUTION AUTHORIZING A CONDITIONAL MATCHING CONTRIBUTION TO SUPPORT THE SERVICE FIRST OF NORTHERN CALIFORNIA, INC. (SFNC)

APPLICATION TO THE CALIFORNIA DEPARTMENT OF HEALTH CARE SERVICES (DHCS) BEHAVIORAL HEALTH CONTINUUM INFRASTRUCTURE PROGRAM (BHCIP) ROUND 1 AWARD FOR THE SFNC RECOVERY CENTER LOCATED AT 807 NORTH EL DORADO STREET, STOCKTON, CA 95202

In October 2024, the State of California r eleased the Request for Applications for the Behavioral Health Continuum Infrastructure Program (BHCIP) Round 1: Launch Ready grant funds; and

Through this process, over $3.3 billion was made available to construct, acquire, or rehabilitate real estate assets, expanding the continuum of behavioral health treatment and service resources for Californians; and

Under Round 1: Launch Ready grant, the state focused on the statewide behavioral health continuum and prioritized mental health community residential beds and crisis settings; and

In October 2024, Service First of Northern California applied for BHCIP funding for the Recovery Center located at 1005 North El Dorado St, Stockton, CA 95202 (Original Property); and

In May 2025, Service First of Northern California (SFNC) received a conditional award of $8,239,637.33 for a Recovery Center at the Original Property; and

In November 2025, the City Council approved a resolution (2025 -11-18-1604) committing a conditional $300,000 match for the Service First of Northern California Recovery Center located at the Original Property utilizing California Opioid Settlement funding; and

In July 2026, the seller of the Original P roperty cancelled the real estate transaction; and

SFNC subsequently identified the property located at 807 N orth El Dorado St, Stockton, CA 95202 (New Property) as a suitable alternate site; and

In August 2026, Service First provided updated documentation from the Department of Health Care Services (DHCS) conditioning its acceptance of the alternate project site; and

43 DHCS approval is conditional upon SFNC securing an alternate location with site control, receiving letters of support for the site change from the City and County Behavioral Health Services, initiating the formal scope change process and providing detailed plans to DHCS; and submitting a Purchase and Sale Agreement (PSA) to DHCS (Exhibit 1); and

The Service First of Northern California Recovery Center at the New Property will provide the following:

 Adult Residential Substance Use Disorder (SUD) Treatment Facility with 16 beds.
 Outpatient treatment for SUD with 72 slots.
 Social Rehabilitation Facility with 16 beds.
 Peer Respite with 4 beds; and

As a requirement for state funds, applicants must meet the minimum matching funds requirement based on the award, demonstrating adequate approvals; and

City of Stockton conditionally commits up to a $300,000 match for the project to be added to the other funding sources that SFNC is using to complete the match amount , subject to SFNC compliance with DHCS requirements; and

The conditional commitment of $300,000 is reflective of SFNC’s original award of $8,239,637.33 and would be proportionally reduced if DHCS modifies the award amount; now, therefore,

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

1. The City of Stockton authorizes a conditional $300,000 matching contribution to support the Service First of Northern California, Inc. (SFNC) application to the California Department of Health Care Services (DHCS) Behavioral Health Continuum Infrastructure Program (BHCIP) Round 1 award for the SFNC Recovery Center located at 807 North El Dorado Street, Stockton, CA 95202.

2. The City Manager is authorized to submit a letter of support to the DHCS confirming the City’s conditional commitment of matching funds and the alternate site change, subject to SFNC compliance with DHCS requirements.

3. Subject to SFNC’s compliance with DHCS requirements, the City Manager is authorized to execute a gr ant of $300,000 to SFNC for the SFNC Recovery Center located at 807 North El Dorado Street.

The grant shall have a 30-year term and compliance period. A Deed of Trust, and Regulatory Agreement will be executed to secure the City’s investment and 44 restrictions on the use of the property . The grant proceeds may be used by SFNC for construction, acquisition, and rehabilitation costs;

4. The City Manager, or designee, is authorized to take all necessary and appropriate steps to carry out the purpose and intent of this Resolution, including the execution of grant documents and subordination agreements.

PASSED, APPROVED, and ADOPTED September 1, 2026 .

CHRISTINA FUGAZI
Mayor of the City of Stockton
ATTEST:

KATHERINE ROLAND, CMC, CPMC
Clerk of the City of Stockton
45 EXHIBIT 1
46 EXHIBIT 1
47 EXHIBIT 1
48 EXHIBIT 1
49 EXHIBIT 1
50 EXHIBIT 1
51 EXHIBIT 1
52 EXHIBIT 1
53 EXHIBIT 1
54 EXHIBIT 1
55 EXHIBIT 1
56 EXHIBIT 1
57 EXHIBIT 1
58 EXHIBIT 1
59 EXHIBIT 1
60 EXHIBIT 1
61 EXHIBIT 1
62 EXHIBIT 1
63 EXHIBIT 1
64 EXHIBIT 1
65 EXHIBIT 1
66 EXHIBIT 1
67 EXHIBIT 1
68 EXHIBIT 1
69 EXHIBIT 1
70 City of Stockton
Legislation Text
File #: 26-0739, Version: 1

ACCEPT THE ANNUAL HEALTH BENEFITS REPORT AND ADOPT THE MONTHLY PREMIUM RATES FOR THE CITY’S 2027 EMPLOYEE HEALTH PLANS

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

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

2. Approve the recommended monthly premium rates for the City’s 2027 employee health plans; and

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

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

Premium rates reflected in 2027 Health Premiums Rates (Attachment B) will be effective January 1, 2027. Employer contributions are dependent upon the provisions of the Memoranda of Understanding (MOU) with the various bargaining units and the Unrepresented Management/Confidential and Law Employees Compensation Plan (Unrepresented Compensation Plan).

Premiums changes are based on City of Stockton utilization and current market conditions, 2027 premium changes by plan are listed below:
· Kaiser HMO +6.2%
· Kaiser HDHP +8.5%
· Kaiser Deductible HMO +8.1%
· Sutter HMO LG18 +9.4%
· Sutter HMO LG22 +6.4%
· Sutter HDHP HE08 +9%
· Sutter HDHP HL12/17 +5.8%
· Sutter Deductible HMO LG24 +3.8%
· Sutter Deductible HMO LG29 +20.2%
· Dental PPO +1.1%
· Dental DHMO 0%
· VSP -1.4%
City of Stockton Printed on 8/28/2026Page 1 of 4
powered by Legistar™
71 File #: 26-0739, Version: 1

DISCUSSION
Background
In 2026, City employees were impacted by 35 plus percentage increases to Sutter health benefit premiums. In December 2025, the Council designated additional funds to be used towards employer contributions to help mitigate the financial impact on employees. Human Resources met with Union Representatives to provide an increase in employer contributions. In addition, Human Resources worked with Alliant, our third-party administrator, to research additional plan offerings through Sutter.

The City added three (3) more Sutter plans to provide an option for higher out-of-pocket plan designs with lower monthly premiums.

We recognize the importance of maintaining affordable benefits while ensuring their quality and comprehensiveness.  We have worked with our insurance broker to negotiate with carriers and explore additional benefit plans to ensure that our offerings are both comprehensive and cost- effective.

Present Situation
Fully Insured Medical Plans
The City is proposing to offer nine (9) fully insured medical plans:

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

2. Kaiser Health Maintenance Organization (Kaiser HMO)

3. Kaiser Deductible HMO Plan (Kaiser DHMO)

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

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

6. Sutter Health Plus LG18 (Sutter HMO LG18)

7. Sutter Health Plus LG22 (Sutter HMO LG22)

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

9. Sutter Health Plus Deductible HMO Plan LG29 (Sutter DHMO LG29) Total enrollment for the fully insured plans as of August 12, 2026:

Fully Insured Plan Enrollment as of 8/12/2026
Kaiser HMO 701
Kaiser HDHP 164
Kaiser Deductible HMO 50
Sutter HMO 310
Sutter HDHP 117
Sutter Deductible HMO 48
Total enrollment in fully insured plans 1,390
City of Stockton Printed on 8/28/2026Page 2 of 4
powered by Legistar™
72 File #: 26-0739, Version: 1
Employer Contribution
The employer contribution rates for the upcoming fiscal year are dependent upon completed MOUs with bargaining units and the Unrepresented Compensation Plan. The FY 2026-2027 (effective January 1, 2027) employer contribution rates are:

Tier  Contribution Amount
Employee $973.54
Employee + 1 $1,766.49
Employee + Family $2,353.73
Health Plan Premiums
Monthly health insurance premiums for 2027:

Monthly Dental premiums for 2027:

Delta Dental HMO Delta Dental PPO
$17.32 $57.30
$33.40 $114.57
$72.94 $148.94
Monthly Vision premiums for 2027:

VSP
$6.05
$12.12
$15.73
OE3’s Health Plan Options
Employees in the OE3 bargaining groups including the Operations and Maintenance Unit (O&M), Trades and Maintenance Unit (T&M), and the Water Supervisory Unit (WS) have seven (7) additional health plan options available through the Operating Engineers’ Public and Miscellaneous Health and Welfare Trust Fund. Each year on January 1, the OE3 plan rates are established and set by the City of Stockton Printed on 8/28/2026Page 3 of 4
powered by Legistar™
73 File #: 26-0739, Version: 1
Board of Trustees of the Operating Engineers’ Public and Miscellaneous Health and Welfare Trust Fund. The employer contribution costs are budgeted and funded through the Health Internal Service Fund (ISF). Currently, 16 employees participate in an OE3 plan. The administrative cost to manage each OE3 plan is $27.55 per employee per month. This administrative fee is paid by the employees enrolled in these plans.

FINANCIAL SUMMARY
Health plan premium rates for medical, dental, and vision employer contributions are reflected in the FY 2026-2027 Health Internal Service Fund budget.

Attachment A - Annual Health Benefits Report
Attachment B - 2027 Health Premiums Rates
City of Stockton Printed on 8/28/2026Page 4 of 4
powered by Legistar™
74 Alliant Insurance Services | Proprietary & Confidential City of Stockton
2027 Renewal Meeting
Christine Kerns, EVP Managing Consultant
Billie Brown, VP Benefits Consultant
August 19, 2026

ATTACHMENT A
75 Agenda • Executive Summary
• Medical Plan Renewal
• Ancillary Renewals
• Contributions
• Open Enrollment and Benefits Fair
2 ATTACHMENT A
76 Executive Summary

ATTACHMENT A
77 4
2026 Renewal Recap
Line of coverage Vendor Funding Results
Medical Kaiser
Sutter Health Plan
Fully Insured
Fully Insured
+2.3%
+39.2%, negotiated 35%
Dental Delta Dental (PRISM)
Delta Dental HMO (Direct)
Self-Funded
Fully Insured
-0.92% (Suggested Funding Rates)
N/A (rate guarantee)
Vision VSP Self-Funded -17.38% (Suggested Funding Rates) ASO fee increase of 13% guaranteed for 3 years
Life/AD&D/STD/LTD Lincoln (PRISM) Fully Insured N/A (rate guarantee) EAP Halcyon EAP Fully Insured +6.2% for 1 year
FSA/HSA/HRA Administration P&A N/A N/A (rate guarantee) COBRA Administration APA Benefits N/A N/A (rate guarantee)

ATTACHMENT A
78 5
2027 Renewal Results
Line of coverage Vendor Renewal Date Funding Results
Medical Kaiser
Sutter Health Plan
1/1/2027
1/1/2027
Fully Insured
Fully Insured
+6.2% to 8.5% (varies by plan)
+8.7%
Dental Delta Dental PPO (PRISM)
Delta Dental HMO (Direct)
1/1/2027
1/1/2027
Self-Funded
Fully Insured
+1.1%
0% (Rate Pass) for 1 year
Vision VSP 1/1/2027 Self-Funded -1.39%
Life/AD&D/STD/LTD Lincoln (PRISM) RG Through 1/1/2028 Fully Insured N/A (rate guarantee) EAP Halcyon EAP 1/1/2027 Fully Insured 0% (Rate Pass) for 1 year FSA/HSA/HRA Administration P&A RG Through 1/1/2028 N/A N/A (rate guarantee) COBRA Administration APA Benefits 1/1/2027 N/A Pending Renewal

ATTACHMENT A
79 2027 Financial Overview
6 Line of Coverage Current 2027 Renewal % ∆
Sutter Health Plan HMO LG18 $8,042,630 $8,802,338 9.4%
Sutter Health Plan HMO LG22 $581,117 $618,307 6.4%
Sutter Health Plan DHMO LG24 $525,079 $545,198 3.8%
Sutter Health Plan DHMO LG29 $328,865 $395,185 20.2%
Sutter Health Plan HDHP HE08 $1,731,197 $1,887,707 9.0% Sutter Health Plan HDHP HL12 $810,496 $857,686 5.8%
Kaiser HMO $12,360,145 $13,128,637 6.2%
Kaiser DHMO $933,038 $1,008,763 8.1%
Kaiser POS $0 $0 0.0%
Kaiser PPO $0 $0 0.0%
Kaiser HDHP $3,097,390 $3,361,775 8.5%
Delta Dental DHMO $122,974 $122,974 0.0%
Delta Dental DPPO (PRISM) - Self-Funded $1,452,586 $1,468,663 1.1% VSP Vision - Self-Funded $193,509 $190,805 -1.4%
Rate Pass
Lincoln (PRISM) Basic Life and AD&D $102,221 $102,221 0.0% Rate Pass
Lincoln (PRISM) Long Term Disability $347,596 $347,596 0.0% SunLife Basic Life and AD&D (MGMT B&C EEs Only) $5,426 $5,426 0.0% SimpleTherapy EAP $32,136 $32,136 0.0%
APA COBRA $11,777 $11,777 0.0%
In Rate Guarantee
P&A FSA $9,384 $9,384 0.0%
In Rate Guarantee
P&A Commuter $234 $234 0.0%
In Rate Guarantee
P&A HSA $10,170 $10,170 0.0%
In Rate Guarantee
P&A HRA $8,532 $8,532 0.0%
TOTAL ANNUAL PREMIUM $30,706,503 $32,915,515
ANNUAL DOLLAR CHANGE $2,209,012
ANNUAL PERCENTAGE CHANGE 7.2%

ATTACHMENT A
80 Medical Renewal and
Marketing

ATTACHMENT A
81 8
Executive
Summary
Kaiser Sutter Health Plus
2021 +4.1% +2.52%
2022 +1% +6.9%
2023* +12% +7.3%
2025 +20% +19%
2026 +2.3 +35.1%
2027 +6.2% +8.7%
Average Renewal +7.6% +13.3%
*The medical plans renewed on 7/1/2023 with an 18-month guarantee (the final HDHP increase was lower due to plan design changes)
• In the last few years, the City has experienced higher than average medical renewals, particularly on the Sutter Health Plan offering. • Alliant has pursued other alternatives, both direct to carrier options and participation in a pooled purchasing program through PRISMHealth. o Unfortunately, PRISMHealth declined to quote due to the high Kaiser penetration.

The direct market declined to quote.
o We continued to pursue alternatives, however there were no options available that met the City’s needs.

ATTACHMENT A
82 2027 Medical Enrollment History
Actives Enrollment History
Medical & Rx
Prior
2022-2023
Prior
7/2023-12/2024
Prior
2025
Current
2026
Sutter Health Plan Medical 521 495 562 489
Kaiser Medical 794 765 780 883
Indemnity Plan (OE3) 22 21 19 17
Waivers 145 169 177 169
Grand Total Enrollment 1482 1450 1538 1558
Overall Kaiser Participation* 60.4% 60.7% 58.1% 64.4%
* Overall Kaiser Participation excludes OE3 and Waivers 9 ATTACHMENT A
83 Medical Financial Summary
Kaiser EE
2026 Current 2027 Renewal % ∆
Kaiser HMO 636 $12,360,145 $13,128,637 6.2%
Kaiser DHMO 57 $933,038 $1,008,763 8.1%
Kaiser HDHP 190 $3,097,390 $3,361,775 8.5%
Kaiser POS 0 $0 $0 0.0%
Kaiser PPO 0 $0 $0 0.0%
KAISER ANNUAL PREMIUM $16,390,573 $17,499,174 6.8%
Sutter Health Plus
EE
2026 Current 2027 Renewal % ∆
SHP HMO LG18 308 $8,042,630 $8,802,338 9.4%
SHP HMO LG22 24 $581,117 $618,307 6.4%
SHP DHMO LG24 22 $525,079 $545,198 3.8%
SHP DHMO LG29 17 $328,865 $395,185 20.2%
SHP HDHP HE08 71 $1,731,197 $1,887,707 9.0%
SHP HDHP HL12 47 $810,496 $857,686 5.8%
SHP ANNUAL PREMIUM $12,019,384 $13,106,422 9.0%
TOTAL MEDICAL ANNUAL PREMIUM $28,409,957
ANNUAL PERCENTAGE CHANGE 7.7%
$30,605,596
10 ATTACHMENT A
84 Sutter Health Plan
Renewal

ATTACHMENT A
85 SHP Executive Summary
Effective January 1, 2027, SHP proposes a renewal rate adjustment of:

Actives ▪ +8.7% Increase
Factors for SHPs
renewal include:
▪ Annual trend was 7.4% (2026 trend was 8.7%); Medical is 6.3% and Rx is 11.7% ▪ 100% Credible (City’s Utilization)
Mandatory changes ▪ HDHP: IRS Mandated Changes to deductible and OOPM ▪ HL12 name changing to HL17 for 2027 Plan Year.
▪ All Other Plans: None
12 ATTACHMENT A
86 SHP Pharmacy Utilization
13 City of Stockton
Monthly Rx Exhibit
- .
202404 1,441 416 $130,815 1,331
202405 1,441 428 $184,413 1,415

2.02406 1,439 419 $168,122 1,286
202407 1,432 407 $205,991 1,332
202408 1,443 431 $242,161 1,431
202409 1,457 417 $205,574 1,345
202410 1,447 405 $199,852 1,354
202411 1,449 420 $218,085 1,343

2.02412 1,427 410 $193,013 1,349

2.02501 1,497 395 $197,187 1,396
202502 1,498 406 $263,817 1,344
202503 1,508 432 $269,757 1,407
Total 17,479 4,986 $2,478,788 16,333
-.. . .
202504 1,515 452 $265,113 1,500
202505 1,503 421 $260,738 1,415
202506 1,513 413 $286,787 1,303
202507 1,500 404 $278,722 1,441
202508 1,525 400 $273,328 1,389

2.02509 1,513 380 $292,697 1,327
202510 1,521 428 $364,296 1,457
202511 1,520 429 $281,705 1,453
202512 1,505 422 $405,418 1,534

2.02601 1,453 399 $286,916 1,315

2.02602 1,442 373 $262,414 1,197
202603 1 436 395 311 736 1 301
Total 17,946 4,916 $3,569,871 16,632
86% 8%
88% 8%
88% 8%
86% 24%
85% 20%
82% 8%
84% 5%
87% 21%
84% 7%
86% 22.%
85% 17%
84% 20%
85% 15%
■
88% 19%
85% 20%
84% 18%
86% 18%
84% 19%
83% 17%
82% 24%
85% 18%
85% 15%
86% 6%
84% 5%
85% 9%
85% 16%
. ''
. . .
13%
11%
11%
13%
13%
17%
15%
12%
16%
13%
14%
15%
14%
. ''
. . .
11%
14%
14%
13%
15%
16%
16%
14%
14%
13%
14%
14%
14%
59%
44%
50%
47%
39%
51%
49%
38%
54%
48%
39%
43%
46%
37%
46%
43%
43%
45%
42%
39%
43%
41%
40%
44%
42%
42%
Alliant Insurance Services
1% 33% 3% 25%
1% 47% 2% 17%
1% 43% 3% 23%
1% 30% 3% 19%
1% 41% 2% 14%
1% 41% 4% 23%
1% 45% 3% 22%
1% 40% 3% 15%
1% 40% 3% 22%
1% 30% 3% 23%
1% 44% 3% 17%
1% 38% 4% 22%
1% 39% 3% 20%
■
.
1% 44% 3% 19%
1% 34% 4% 19%
1% 39% 4% 19%
1% 39% 4% 22%
1% 36% 5% 24%
2% 40% 4% 20%
1% 37% 5% 19%
1% 38% 4% 24%
1% 44% 5% 20%
2% 54% 5% 23%
2% 51% 5% 20%
1% 49% 5% 19%
1% 42.% 4% 20%

ATTACHMENT A
87 SHP Pharmacy Utilization
14 City of Stockton
Top 25 Rx by Cost
Current Period
Rank Drug Name
�

ZEPBOUND
3 MOUNJARO
4 SKYRIZI
5 ENBREL
6 ALVAIZ
7 DUPIXENT
8 TREMFYA
9 SKYRIZI
10 WEGOVY
l1 X:VWAV
12 JARDIANCE
13 VUMERITY
14 OZEMPIC
15 ORENCIA
16 XEUANZ
17 COPAXONE
18 COSENTYX
19 DEXCOM
20 REXULTI
21 NUCALA
22 ELIQUIS
23 XOLAIR
24 RYBELSUS
25 FIASP
All Other
Total
Your Group
Generic
Therapeutic Class Indicator
ENDOCRINE AND METABOLIC AGENTS - MISC.

ADHD/ANTI-NARCOLEPSY/ANTI-OBESITY/ANOREXIANTS

ANTI DIABETICS N
GASTROINTESTINAL AGENTS - MISC. N

ANALGESICS-ANTI-INFLAMMATORY N

HEMATOPOIETIC AGENTS N

DERMA TOLOGICALS N

DERMA TOLOGICALS N

DERMA TO LOGICALS N

ADHD/ANTI-NARCOLEPSY/ANTI-OBESITY/ANOREXIANTS N
PSYCHOTHERAPEUTIC AND NEUROLOGICAL AGENTS - MISC. N

ANTI DIABETICS N
PSYCHOTHERAPEUTIC AND NEUROLOGICAL AGENTS- MISC. N

ANTI DIABETICS N

ANALGESICS - ANTI-INFLAMMATORY N

ANALGESICS -ANTI-INFLAMMATORY N
PSYCHOTHERAPEUTIC AND NEUROLOGICAL AGENTS- MISC. N

DERMATOLOGICALS N

MEDICAL DEVICES AND SUPPLIES N

ANTIPSYCHOTICS/ANTIMANIC AGENTS N

ANTIASTHMATIC AND BRONCHODILATOR AGENTS N

ANTICOAGULANTS N

ANTIASTHMATIC AND BRONCHODILATOR AGENTS N

ANTI DIABETICS N

ANTI DIABETICS N
Specialty
Indicator
N
y
y
y
y
y
y
N
N
N
y
N
y
y
y
y
N
N
y
N
y
N
N
SHPLG
Net Claim Net Claim Net Claim
Cost Cost% Rank Cost%
382 937
$297,904 1
AmfllllnDIIIIRIIIIDRIII- --1
$206,254 5.8% 3 4.4%
$204,686 5.7% 5 3.8%
$194,842 5.5% 10 2 .. 1%
$188,114 5.3% 108 0.2%
$160,553 4.5% 7 3 .. 6%
$145,838 4.1% 14 1.4%
$134,170 3.8% 5 3.8%
$104,377 2.9% 4 4.1%
$93,115 2.6% 43 0.4%
$81,723 2.3% 9 2 .. 3%
$78,369 2.2% 44 0.4%
$69,902 2.0% 2 4.4%
$68,708 1.9% 30 0.5%
$64,640 1.8% 58 0 .. 3%
$49,343 1.4% 203 0.1%
$49,222 1.4% 11 1.6%
$45,543 1.3% 12 1.6%
$39,356 1.1% 72 0.3%
$39,240 1.1% 55 0.3%
$37,240 1.0% 21 0.9%
$34,680 1.0% 31 0.5%
$26,950 0.8% 34 0.5%
$26,775 0.8% 26 0.6%
$745,391 20.9% 53.6%
$3,569,871 100.0% 100.0%
Alliant Insurance Services

ATTACHMENT A
88 SHP HMO Renewal (LG18 and LG22)
Medical Plan Benefits
LG18 LG22 LG24
Current/ Renewal Current/ Renewal Current/ Renewal
Calendar Year Deductible
Individual / Family None None $1,000 / $2,000
Annual Out-of-Pocket Maximum
Individual / Family $1,500 / $3,000 $3,000 / $6,000 $3,000 / $6,000 Physician Office Visit $20 / Visit $40 / Visit $20 / Visit (ded waived) Specialist Copay $40 / Visit $80 / Visit $40 / Visit (ded waived) Preventative Care No Charge No charge No Charge (ded waived) Lab and X-Ray
CT, MRI, PET scans $50 $50 / Procedure $50 / Procedure (ded waived) Lab $10 $10 / Visit $20 / Visit (ded waived)
X-Ray $10 $10 / Procedure $10 / Procedure (ded waived)
Hospitalization
Inpatient $250 / Per day (max of 5 days per admission) $500 per day (max of 5 days per admission) 20% (after ded) Outpatient $50 / Visit $100 / Visit 20% (after ded)
Emergency Room $200 / Visit
(Copay waived if admitted)
$200 / Visit
(Copay waived if admitted)
20% (after ded)
(Copay waived if admitted)
Urgent Care Services $40 / Visit $80 / Visit $40 / Visit (ded waived) Durable Medical Equipment 50% 50% 50% (after ded)
Chiropractic / Acupuncture Care $20 / Visit $20 / Visit $20 / Visit Unlimited Visits Unlimited Visits Unlimited Visits
PRESCRIPTION DRUGS Generic / Brand / Non-Formulary / Specialty Generic / Brand / Non-Formulary / Specialty Generic / Brand / Non-Formulary / Specialty Rx Copay Out-of-Pocket Maximum Included with Medical Included with Medical Included with Medical Separate Brand Name Rx Deductible None None None
Retail - 30 day supply $10 / $30 / $75 / 10% up to $250 max $10 / $30 / $75 / 20% up to $250 max $10 / $30 / $75 / 20% up to $250 max Mail Order - up to 100 day supply $20 / $60 / $150 / Not Covered $20 / $60 / $150 / Not Covered $20 / $60 / $150 / Not Covered RATE GUARANTEE 1 Year
(1/1/2026 - 12/31/2026)
1 Year
(1/1/2027 - 12/31/2027)
1 Year
(1/1/2026 - 12/31/2026)
1 Year
(1/1/2027 - 12/31/2027)
1 Year
(1/1/2026 - 12/31/2026)
MONTHLY RATES EEs Current Renewal EEs Current Renewal
EE Only 120 $1,243.40 $1,360.90 8 $1,163.60 $1,238.10
EE + 1 54 $2,238.90 $2,450.40 8 $2,095.30 $2,229.40
EE + Family 134 $2,985.90 $3,267.90 8 $2,794.40 $2,973.20 308 24
MONTHLY PREMIUM $670,219 $733,528 $48,426 $51,526
ANNUAL PREMIUM $8,042,630 $8,802,338 $581,117 $618,307
ANNUAL DOLLAR CHANGE $759,708 $37,190
ANNUAL PERCENT CHANGE 9.4% 6.4%
Enrollment from Post OE Census as of December 2025
Sutter Health Plan HMOSutter Health Plan HMO
This document is intended as a quick reference, not a comprehensive description. Limitations and exclusions can be found in the official plan documents. In case of any discrepancies, the official plan documents will govern.
15 ATTACHMENT A
89 SHP DHMO Renewal (LG24 and LG29)
Medical Plan Benefits
LG24 LG29
Current/ Renewal Current/ Renewal
Calendar Year Deductible
Individual / Family $1,000 / $2,000 $5,500 / $11,000
Annual Out-of-Pocket Maximum
Individual / Family $3,000 / $6,000 $9,000 / $18,000
Physician Office Visit $20 / Visit (ded waived) $50 / Visit Specialist Copay $40 / Visit (ded waived) $100 / Visit
Preventative Care No Charge (ded waived) No charge
Lab and X-Ray
CT, MRI, PET scans $50 / Procedure (ded waived) $100 / Procedure (after ded) Lab $20 / Visit (ded waived) $10 / Visit (ded waived)
X-Ray $10 / Procedure (ded waived) $50 / Procedure (ded waived) Hospitalization
Inpatient 20% (after ded) 30% (after ded)
Outpatient 20% (after ded) 30% (after ded)
Emergency Room 20% (after ded)
(Copay waived if admitted)
$300 (after ded)
(Copay waived if admitted)
Urgent Care Services $40 / Visit (ded waived) $100 / Visit (ded waived) Durable Medical Equipment 50% (after ded) 50% (after ded) Chiropractic / Acupuncture Care $20 / Visit $20 / Visit Unlimited Visits Unlimited Visits
PRESCRIPTION DRUGS Generic / Brand / Non-Formulary / Specialty Generic / Brand / Non-Formulary / Specialty Rx Copay Out-of-Pocket Maximum Included with Medical Included with Medical Separate Brand Name Rx Deductible None None
Retail - 30 day supply $10 / $30 / $75 / 20% up to $250 max $10 / $30 / $75 / 30% up to $250 max Mail Order - up to 100 day supply $20 / $60 / $150 / Not Covered $20 / $60 / $150 / Not Covered RATE GUARANTEE 1 Year
(1/1/2026 - 12/31/2026)
1 Year
(1/1/2027 - 12/31/2027)
1 Year
(1/1/2026 - 12/31/2026)
1 Year
(1/1/2027 - 12/31/2027)
MONTHLY RATES EEs Current Renewal EEs Current Renewal
EE Only 6 $1,071.90 $1,113.00 4 $819.90 $985.40
EE + 1 6 $1,930.20 $2,004.20 3 $1,476.60 $1,774.50
EE + Family 10 $2,574.40 $2,673.00 10 $1,969.60 $2,366.70 22 17
MONTHLY PREMIUM $43,757 $45,433 $27,405 $32,932
ANNUAL PREMIUM $525,079 $545,198 $328,865 $395,185
ANNUAL DOLLAR CHANGE $20,119 $66,320
ANNUAL PERCENT CHANGE 3.8% 20.2%
Enrollment from Post OE Census as of December 2025
Sutter Health Plan DHMOSutter Health Plan DHMO
This document is intended as a quick reference, not a comprehensive description. Limitations and exclusions can be found in the official plan documents. In case of any discrepancies, the official plan documents will govern.
16 ATTACHMENT A
90 SHP HDHP Renewal (HE08 and HL17)
Medical Plan Benefits Sutter Health Plan HDHP Sutter Health Plan HDHP HE08 HL12 / HL17
Current / Renewal Current / Renewal
In-Network In-Network
Calendar Year Deductible 2027 Mandatory IRS Change
Individual / Ind. in Family / Family $1,800 / $3,400 $3,500 / $3,400 $3,500 $4,000 / $4,000 / $8,000 Annual Out-of-Pocket Maximum 2027 Mandatory IRS Change
Individual / Ind. in Family / Family $3,400 $3,500 / $3,400 $3,500 / $3,400 $3,500 $6,500 / $6,500 / $13,000 Physician Office Visit No Charge $40 / Visit
Specialist Copay No Charge $80 / Visit
Preventative Care No Charge (ded waived) No charge (ded waived) Lab and X-Ray
CT, MRI, PET scans No Charge $50 / Procedure
Lab No Charge $40 / Visit
X-ray No Charge $15 / Procedure
Hospitalization
Inpatient No Charge $500 per day (max of 5 days per admission) Outpatient No Charge $250 / Visit
Emergency Room No Charge $300 / Visit
Urgent Care Services No Charge $80 / Visit
Durable Medical Equipment No Charge 50%
Chiropractic Care Not Covered Not Covered
Acupuncture Care No Charge (Provided for treatment of nausea or chronic pain only)
$40 / Visit (Provided for treatment of nausea or chronic pain only)
PRESCRIPTION DRUGS Generic / Brand / Non-Formulary / Specialty Generic / Brand / Non-Formulary / Specialty Rx Copay Out-of-Pocket Maximum Combined with Medical Combined with Medical Rx Deductible Medical Deductible Applies Medical Deductible Applies Retail - 30 day supply $10 / $20 / $35 / No Charge $10 / $30 / $75 / 20% up to $250 max (after ded) Mail Order - 100 day supply $20 / $40 / $70 / Not Covered $20 / $60 / $150 / Not Covered RATE GUARANTEE 1 Year
(1/1/2026 - 12/31/2026)
1 Year
(1/1/2027 - 12/31/2027)
1 Year
(1/1/2026 - 12/31/2026)
1 Year
(1/1/2027 - 12/31/2027)
MONTHLY RATES EEs Current Renewal EEs Current Renewal
EE Only 20 $1,057.70 $1,153.30 18 $809.90 $857.00
EE + 1 10 $1,903.80 $2,075.90 7 $1,457.70 $1,542.60
EE + Family 41 $2,538.40 $2,767.90 22 $1,943.60 $2,056.80 71 47
MONTHLY PREMIUM $144,266 $157,309 $67,541 $71,474
ANNUAL PREMIUM $1,731,197 $1,887,707 $810,496 $857,686
ANNUAL DOLLAR CHANGE $156,510 $47,190
ANNUAL PERCENT CHANGE 9.0% 5.8%
Enrollment from Post OE Census as of December 2025
This document is intended as a quick reference, not a comprehensive description. Limitations and exclusions can be found in the official plan documents. In case of any discrepancies, the official plan documents will govern. 17 ATTACHMENT A
91 Kaiser Renewal
,,,,,.,,r,�,,,,,,.,,,,,,,,,,,.,,,�,�,,r,,,,,,,,,,,.,,,,.,,,,.,,,,,, , ,. , ,,,. , ,,,,. ,,, ,,, ,,, , ,,, .,,,. ,,. ,,,.. ,,. ,,,. ,,. ,,,. ,,, , ,,. ,,, ,,. ,,. ,,. , ,,,. ., ,, , , , ,, ., , ,, , , ,,. ,, ,,. ,,, ,,. .,. �,,r,�,�r�rr,r,�,,,,,rrr,�,,�,�,,�r�r,,,,��, ,,,,,.,,,.,,,,.,,.,,.,,,,,.,,,,,.,,,.,,,,�,,,,,,,,,.,,,,,.,,.,,,,,,, ,,. ,, , ,,. ,,. '., , ,,. ,,,. ,,. ,,,.. ,,,, ., , ,,. ,,. ,,. ,- . , , ,. , ,,. ,, ,,, ,,, ., ,,. ,. ,. ,,. ., r , ., , . ,,. , ,,. , , , , - r , ,,. ,, ,.,,,,,,,,,,,,,,,,,,,,,r,,r,,,,,,,,,,,,,,., ,,.,,,,,,,,.,,,,,,,,,,,,,,,,,.,,.,,,,,.,r,,,,,,,,,,,,.,,,,., r,,,,,.,,.,,.,,.,,.,,,.,�,,,,r,,,,,�,,,,�,,,�,,�,�,,,,,, r , r , ,,. , , , , r , r r , , ,,,,, .r , r r ,. ,. •, ,,,, r , , , , , r r , , , .,,,. r ,, . , , :r ., , , , ,, ,,. , ,,. .,,,. ,,,.. .,,. , ,,,. ,, , ,,. ,,. ,,. ,,. , ,,. ., :,, .,· ,, ,,,. ,,. ,,. ,,. .,,. ,,. ,,.. ,, ,,. ,' .,,. , ,,, ,,. , , , .,,,. , ,. ,,. ,, , , :r , ,,. r r r , , r· : ,,,.. ., , r , , , . r ,. , , r ., r , , , ,, r r ., ,,. ·, , , r , r , :r , , , ,, , , ,,. , , ,,,. ,, ,,. :,, ,, ,,,. , , , ,, ,, ,, ,,. , ,,, ,,. ,, , ,, ,. ,,,,. ,,. ,,, ,,. , , , ,, , ,. , , ., ,,. ,, , ,,. ,,,. ,,,,,.,,,.,,,,,,�,,,,,,,,, ,,. ,.,,,.,,.,,,,,,,,,,,,.,,,.,,,,,,,,,,,,,,, r,,, ,,.,,,,,,,,�,,,,,,.,,,,.,,,,,,,,.,,,,.,,,,,,.,r,,,,,,,,.,,. r ., , , , -r "' , r ., , r r , , , , , r .. ,,, , , , r , , , , , , , , , •r r r r , , , , , r r ,,, , ,,, , ,,, ,, ., ,,. ,,. ,,. ,,. :, ,,, ,,.. ,, , ,,. , ,,,, ,,. ,,, ,,,, ,,, , , ,, ,,. ,, , , ,, , ,,. ,,. ,, ,, ,, , ,,. ,,, _,,. ,,. , .,,,. r r ,, , " ·"' , ,- , , r· , ,- , , , , ,,,,. , , ,,,, , , , , , , ,,, r· , , , r , ,,, ,- r , , ,- , , ,- r r , r , ·r , ., r , , , r .,, r , , ., , .,,. r , , , ., , ,,. , r , ·, , r , , r r r , , , , ,, ,, :, , , , , r- :r , , r- , r r , ., , , , r ., , ., ,, , , , r , , , , r , , , , r , , , , , , r :r ,�rr,�rrrrrrr,,,,,,.,,,,,,,.,r,rr,,,,,,,,,�,r,, r , , r r ., r r , , ,,. r , ,,,. , , ,,. ,. ,, ,, ,,. r ,,.. ., , , ,,,. , ,. , , , , ,,. ,,. r ,- r , ·r .,,, r ,- ,,.,,,,. ,,,,,.,�,,,,,,,,,�,,,,rr,r,�,,,,r,,r,r,,,.,�,�, , , , r ,- ,: 1,., r, r �- , ,, , r r .,,,,. , , , r, ,,, , r r: ,, r,,,,,, r, ., , , , ,,,,,, .,,,,,,,,,,,,,,,,,,,.,,.,,,.,,,,,.,,,,,,,,, ,,,,,,,, , ,,,,. , , r r •r r , , r , r r , , , ,r ,- ·r :r r , r ,,,,. r r · , ., , ,,,,.. r ., , , , , ,- , , r , , r ,,,,,. ,- ,. ,,,,. ,,. ,, , ,, , ,. ,,, ,,. ,,,. , ,,,,. , , ,, , ,,. , ,, ,,, ,,. , ,, , , , ,, ,, , :, , , , .,,,. ,,. , ,,, , , ,,. .,,,. ,,,,,. , r r ,,- , .,,,. ., , ,,. r r , ., , ,- , r r r ,, ,· r .,,. -, , -,,,. , , r r , , , , r r , -I"' , r ·r r r ,

ATTACHMENT A
92 Kaiser Executive Summary
Effective January 1, 2027, Kaiser proposes a renewal rate adjustment of:

Actives ▪ Ranges from 6.2% to 8.5% depending on the plan For Kaiser’s 2027
Renewal
▪ Annual trend slightly increased from 5.66% to 5.77%
▪ Pooling point increased from $400,000 to $500,000
Rates are based on the
following Underwriting
factors:
▪ 100% Credible (City’s utilization)
Health Care Reform
Impacts:
▪ PCORI fee increased from $0.31 PMPM to $0.35 PMPM, however no longer applicable to non -PPO plans.

Mandatory Plan Changes ▪ HDHP: IRS Mandated Changes to deductible and OOPM 19 ATTACHMENT A
93 20
Update to Kaiser Renewal Methodology
APR
2025MAY
2024 2026 Renewal
MAR
2026
APR
2024 2027 Renewal
The 2026 Kaiser renewal calculation used paid claims from May 2024 through April 2025 (12 months of claims).

Going forward (starting in 2027), the Kaiser renewal calculation is using paid claims from April 2024 through March 2026 (24 months of claims).

ATTACHMENT A
94 Kaiser - Periodic Utilization Review (PUR)
PMPM by Service Category
21 ATTACHMENT A
95 Experience Period Feb 23 Jan 24 Exp Period
9 Month PUR
May 23 Apr 24 Exp Period
used in Jan 25 Renewal
May 24 Dec 24 Exp Period
8 Month PUR
May 24 Apr 25 Exp Period
12 Month PUR
Dec 24 Nov 25 Exp Period
12 Month PUR
Apr 25 Mar 26 Exp Period
12 Month PUR
Average Members 2,058 2,042 2,084 2,097 2,065 2,103
Average Age 29.4 29.3 28.9 28.7 28.7 28.5
Inpatient $ PMPM
(Includes Medical, surgical,
maternity, etc.)
$103.08 $115.63 $88.43 $99.92 $171.31 $181.26
Inpatient $/Day $9,290.24 $9,169.21 $8,505.96 $9,275.84 $8,716.99 $10,040.18 Inpatient Average Length of Stay 4.4 Days 4.4 Days 4.1 Days 3.8 Days 6.6 Days 6.4 Days Inpatient Days/ 1000 133.1 151.3 124.8 129.3 235.8 216.6 Inpatient Admits/ 1000 30.1 32.8 30.7 33.9 35.8 33.7
Outpatient $ PMPM (Includes
outpatient visits, ER, surgical
procedures, lab and radiology)
$211.71 $232.75 $259.32 $238.40 $245.47 $261.13
Pharmacy $ PMPM $43.11 $43.97 $42.53 $39.72 $41.01 $39.69 Other $ PMPM $82.75 $90.01 $97.17 $94.64 $97.57 $102.84 Total Claims PMPM $440.65 $482.36 $487.46 $472.68 $555.36 $584.92 High Cost Claimants
3 individuals with claims
over $187,500 representing

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

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

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

8.3% of total claims;
claimants at $981,377.10
5 individuals with claims
over $380,000 representing

14.3% of total claims;
claimants at $3,678,902.36
4 individuals with claims
over $250,000 representing

15.3% of total claims;
claimants at $4,113,528.79
Kaiser - Periodic Utilization Review (PUR)
Comparison
22 ATTACHMENT A
96 Kaiser HMO Renewal
Medical Plan Benefits
Current / Renewal
Plan Year Deductible
Individual / Family None
Annual Out-of-Pocket Maximum
Individual / Family $1,500 / $3,000
Physician Office Visit $20 / Visit
Specialist Copay $20 / Visit
Preventative Care No Charge
Lab and X-Ray
CT, MRI, PET scans $50 / Procedure
Other lab and x-ray tests $10 / Encounter
Hospitalization
Inpatient $250 / Admit
Outpatient $100 / Procedure
Emergency Room $100 / Visit
(Copay waived if admitted)
Urgent Care Services $20 / Visit
Durable Medical Equipment 20%
Chiropractic/Acupuncture Care $15 / Visit
(max 30 Visits combined)
PRESCRIPTION DRUGS Generic / Brand-name / Specialty
Rx Copay Out-of-Pocket Maximum Included with Medical
Separate Brand Name Rx Deductible None
Retail - 30 day supply $10 / $30 / 20% up to $150 max
Mail Order - up to 100 day supply $20 / $60 / Not Covered RATE GUARANTEE 1 Year
(1/1/2026 - 12/31/2026)
1 Year
(1/1/2027 - 12/31/2027)
MONTHLY RATES EEs Current Renewal
EE Only 248 $926.77 $984.39
EE + 1 113 $1,668.18 $1,771.91
EE + Family 275 $2,224.25 $2,362.54
636
MONTHLY PREMIUM $1,030,012 $1,094,053
ANNUAL PREMIUM $12,360,145 $13,128,637
ANNUAL DOLLAR CHANGE $768,492
ANNUAL PERCENT CHANGE 6.2%
Enrollment from Post OE Census as of December 2025
Kaiser HMO
This document is intended as a quick reference, not a comprehensive description. Limitations and exclusions can be found in the official plan documents. In case of any discrepancies, the official plan documents will govern.
23 ATTACHMENT A
97 Kaiser DHMO Renewal
Medical Plan Benefits Kaiser DHMO
Current / Renewal
Plan Year Deductible
Individual / Family $1,000 / $2,000
Annual Out-of-Pocket Maximum
Individual / Family $3,000 / $6,000
Physician Office Visit $30 / Visit (ded waived)
Specialist Copay $40 / Visit (ded waived)
Preventative Care No Charge (ded waived)
Lab and X-Ray
CT, MRI, PET scans 30% up to a maximum of $150 / Procedure (after ded)
Other lab and x-ray tests $10 / Encounter (after ded)
Hospitalization
Inpatient 30% (after ded)
Outpatient 30% (after ded)
Emergency Room 30% (after ded)
(Copay waived if admitted)
Urgent Care Services $30 / Visit (ded waived)
Durable Medical Equipment 20% (ded waived)
Chiropractic/Acupuncture Care $15 / Visit
(max 30 Visits combined)
PRESCRIPTION DRUGS Generic / Brand-name / Specialty
Rx Copay Out-of-Pocket Maximum Included with Medical
Separate Brand Name Rx Deductible None
Retail - 30 day supply $10 / $30 / 20% up to $250 max (ded waived) Mail Order - up to 100 day supply $20 / $60 / Not Covered (ded waived) RATE GUARANTEE 1 Year
(1/1/2026 - 12/31/2026)
1 Year
(1/1/2027 - 12/31/2027)
MONTHLY RATES EEs Current Renewal
EE Only 23 $793.40 $857.79
EE + 1 11 $1,428.12 $1,544.03
EE + Family 23 $1,904.16 $2,058.70
57 MONTHLY PREMIUM $77,753 $84,064
ANNUAL PREMIUM $933,038 $1,008,763
ANNUAL DOLLAR CHANGE $75,725
ANNUAL PERCENT CHANGE 8.1%
Enrollment from Post OE Census as of December 2025
This document is intended as a quick reference, not a comprehensive description. Limitations and exclusions can be found in the official plan documents. In case of any discrepancies, the official plan documents will govern.
24 ATTACHMENT A
98 Kaiser HDHP Renewal
Medical Plan Benefits Kaiser HDHP Kaiser HDHP
Current / Renweal Option
In-Network In-Network
Plan Year Deductible Pending
Individual / Ind. in Family / Family $1,800 / $3,400 $3,500 / $3,600 $3,500 / $3,500 / $3,500 Annual Out-of-Pocket Maximum
Individual / Ind. in Family / Family $3,700 / $3,700 / $7,400 $3,700 / $3,700 / $7,400 Physician Office Visit No Charge No Charge
Specialist Copay No Charge No Charge
Preventative Care No Charge (ded waived) No Charge (ded waived) Lab and X-Ray
CT, MRI, PET scans No Charge No Charge
Other lab and x-ray tests No Charge No Charge
Hospitalization
Inpatient No Charge No Charge
Outpatient No Charge No Charge
Emergency Room No Charge No Charge
Urgent Care Services No Charge No Charge
Durable Medical Equipment No Charge No Charge
Chiropractic Care $15
(30 Visits / calendar year)
$15
(30 Visits / calendar year)
Acupuncture Care Not Covered Not Covered
PRESCRIPTION DRUGS Generic / Brand-name / Specialty Generic / Brand-name / Specialty Rx Copay Out-of-Pocket Maximum Combined with Medical Combined with Medical Rx Deductible N/A N/A
Retail - 30 day supply $10 / $30 / 20% up to $150 $10 /$20 / $20 Mail Order - 100 day supply $20 / $60 / Not Covered $20 / $60 / Not Covered RATE GUARANTEE 1 Year
(1/1/2026 - 12/31/2026)
1 Year
(1/1/2027 - 12/31/2027)
MONTHLY RATES EEs Current Renewal
EE Only 68 $745.14 $808.74
EE + 1 24 $1,341.25 $1,455.73
EE + Family 98 $1,788.33 $1,940.98
190
MONTHLY PREMIUM $258,116 $280,148
ANNUAL PREMIUM $3,097,390 $3,361,775
ANNUAL DOLLAR CHANGE $264,384
ANNUAL PERCENT CHANGE 8.5%
Enrollment from Post OE Census as of December 2025
This document is intended as a quick reference, not a comprehensive description. Limitations and exclusions can be found in the official plan documents. In case of any discrepancies, the official plan 25 ATTACHMENT A
99 Ancillary Renewals

ATTACHMENT A
100
PRISM
Established in 1979, PRISM (Public Risk Innovation, Solutions, and Management) is a risk-sharing pool dedicated to controlling losses and providing effective risk management solutions. PRISM is a member- directed pool serving California public agencies.

Membership in Property & Casualty and Employee Benefit coverages has expanded to include 95% of counties, and 60% of cities, as well as numerous special districts, superior courts, housing authorities, fire districts, and other Joint Powers Authorities.

Employee Benefit Coverages Offered
 Medical (PRISMHealth – Anthem/Blue Shield/Kaiser)
 Dental (Delta Dental/Ameritas)
 Vision (VSP/EyeMed)
 EAP (Concern/Anthem) – including First Responder program with Concern  Life & Disability (Voya/Lincoln) – including Paid Family Leave Program PRISM Membership Highlights
 Medical – 50 member groups – 45,000 covered
 Dental – 202 member groups – 103,775 covered
 Vision – 141 member groups – 105,825 covered
 EAP – 184 member groups – 79,500 covered
 Life & DI – 161 member groups – 94,500 covered

PRISM JPA
Overview
Property & Casualty
Programs:
• Worker’s Comp
• Property
• General Liability
• Cyber
• Other Misc. Lines
27 ATTACHMENT A
101
Dental Renewal
,,,,,.,,r,�,,,,,,.,,,,,,,,,,,.,,,�,�,,r,,,,,,,,,,,.,,,,.,,,,.,,,,,, , ,. , ,,,. , ,,,,. ,,, ,,, ,,, , ,,, .,,,. ,,. ,,,.. ,,. ,,,. ,,. ,,,. ,,, , ,,. ,,, ,,. ,,. ,,. , ,,,. ., ,, , , , ,, ., , ,, , , ,,. ,, ,,. ,,, ,,. .,. �,,r,�,�r�rr,r,�,,,,,rrr,�,,�,�,,�r�r,,,,��, ,,,,,.,,,.,,,,.,,.,,.,,,,,.,,,,,.,,,.,,,,�,,,,,,,,,.,,,,,.,,.,,,,,,, ,,. ,, , ,,. ,,. '., , ,,. ,,,. ,,. ,,,.. ,,,, ., , ,,. ,,. ,,. ,- . , , ,. , ,,. ,, ,,, ,,, ., ,,. ,. ,. ,,. ., r , ., , . ,,. , ,,. , , , , - r , ,,. ,, ,.,,,,,,,,,,,,,,,,,,,,,r,,r,,,,,,,,,,,,,,., ,,.,,,,,,,,.,,,,,,,,,,,,,,,,,.,,.,,,,,.,r,,,,,,,,,,,,.,,,,., r,,,,,.,,.,,.,,.,,.,,,.,�,,,,r,,,,,�,,,,�,,,�,,�,�,,,,,, r , r , ,,. , , , , r , r r , , ,,,,, .r , r r ,. ,. •, ,,,, r , , , , , r r , , , .,,,. r ,, . , , :r ., , , , ,, ,,. , ,,. .,,,. ,,,.. .,,. , ,,,. ,, , ,,. ,,. ,,. ,,. , ,,. ., :,, .,· ,, ,,,. ,,. ,,. ,,. .,,. ,,. ,,.. ,, ,,. ,' .,,. , ,,, ,,. , , , .,,,. , ,. ,,. ,, , , :r , ,,. r r r , , r· : ,,,.. ., , r , , , . r ,. , , r ., r , , , ,, r r ., ,,. ·, , , r , r , :r , , , ,, , , ,,. , , ,,,. ,, ,,. :,, ,, ,,,. , , , ,, ,, ,, ,,. , ,,, ,,. ,, , ,, ,. ,,,,. ,,. ,,, ,,. , , , ,, , ,. , , ., ,,. ,, , ,,. ,,,. ,,,,,.,,,.,,,,,,�,,,,,,,,, ,,. ,.,,,.,,.,,,,,,,,,,,,.,,,.,,,,,,,,,,,,,,, r,,, ,,.,,,,,,,,�,,,,,,.,,,,.,,,,,,,,.,,,,.,,,,,,.,r,,,,,,,,.,,. r ., , , , -r "' , r ., , r r , , , , , r .. ,,, , , , r , , , , , , , , , •r r r r , , , , , r r ,,, , ,,, , ,,, ,, ., ,,. ,,. ,,. ,,. :, ,,, ,,.. ,, , ,,. , ,,,, ,,. ,,, ,,,, ,,, , , ,, ,,. ,, , , ,, , ,,. ,,. ,, ,, ,, , ,,. ,,, _,,. ,,. , .,,,. r r ,, , " ·"' , ,- , , r· , ,- , , , , ,,,,. , , ,,,, , , , , , , ,,, r· , , , r , ,,, ,- r , , ,- , , ,- r r , r , ·r , ., r , , , r .,, r , , ., , .,,. r , , , ., , ,,. , r , ·, , r , , r r r , , , , ,, ,, :, , , , , r- :r , , r- , r r , ., , , , r ., , ., ,, , , , r , , , , r , , , , r , , , , , , r :r ,�rr,�rrrrrrr,,,,,,.,,,,,,,.,r,rr,,,,,,,,,�,r,, r , , r r ., r r , , ,,. r , ,,,. , , ,,. ,. ,, ,, ,,. r ,,.. ., , , ,,,. , ,. , , , , ,,. ,,. r ,- r , ·r .,,, r ,- ,,.,,,,. ,,,,,.,�,,,,,,,,,�,,,,rr,r,�,,,,r,,r,r,,,.,�,�, , , , r ,- ,: 1,., r, r �- , ,, , r r .,,,,. , , , r, ,,, , r r: ,, r,,,,,, r, ., , , , ,,,,,, .,,,,,,,,,,,,,,,,,,,.,,.,,,.,,,,,.,,,,,,,,, ,,,,,,,, , ,,,,. , , r r •r r , , r , r r , , , ,r ,- ·r :r r , r ,,,,. r r · , ., , ,,,,.. r ., , , , , ,- , , r , , r ,,,,,. ,- ,. ,,,,. ,,. ,, , ,, , ,. ,,, ,,. ,,,. , ,,,,. , , ,, , ,,. , ,, ,,, ,,. , ,, , , , ,, ,, , :, , , , .,,,. ,,. , ,,, , , ,,. .,,,. ,,,,,. , r r ,,- , .,,,. ., , ,,. r r , ., , ,- , r r r ,, ,· r .,,. -, , -,,,. , , r r , , , , r r , -I"' , r ·r r r ,

ATTACHMENT A
102
2027
Renewal
Results -
Dental
29 The Dental PPO plan is self-insured through PRISM
• Alliant recommends a dental reserve fund of approximately $111,000 to cover one month of claims
• Effective 1/1/2027, Alliant’s underwriting analysis for the Dental renewal is +1.1%. • The underwriting analysis includes the following:
o Claims through March 2026
o 4.0% Trend
o 3.0% Margin
o The most recent 12 months are weighted 80% for current 12 months and 20% for the prior 12 months
• 2027 Administrative Fees (no change):
o Delta Dental ASO: 6.7% of Paid Claims
o BCC Eligibility Fees $0.75 PEPM
o Aliant Broker Fees $2.00 PEPM
o UW Fee $0.50 PEPM
The DHMO plan is fully insured with Delta Dental (DeltaCare) • Rate Pass (0%)

ATTACHMENT A
103
Enrollment Premium Costs Paid
Month Employees Funding Rate Claims Admin Total Cost L/R 1/24 1,159 $131,643 $116,688 $22,362 $139,050 105.6%
2/24 1,155 $131,121 $130,531 $23,236 $153,767 117.3%
3/24 1,152 $130,417 $97,254 $20,952 $118,207 90.6%
4/24 1,164 $131,507 $83,306 $20,156 $103,462 78.7%
5/24 1,171 $132,369 $139,309 $23,999 $163,308 123.4%
6/24 1,175 $132,392 $115,172 $22,412 $137,585 103.9%
7/24 1,178 $132,914 $106,097 $21,850 $127,947 96.3%
8/24 1,173 $132,018 $144,386 $24,338 $168,723 127.8%
9/24 1,185 $133,209 $77,689 $20,012 $97,700 73.3%
10/24 1,189 $133,255 $116,673 $22,655 $139,328 104.6%
11/24 1,194 $134,220 $95,744 $21,334 $117,078 87.2%
12/24 1,191 $133,300 $95,560 $21,257 $116,817 87.6%
1/25 1,206 $135,293 $126,336 $12,384 $138,720 102.5%
2/25 1,221 $136,438 $98,623 $10,576 $109,199 80.0%
3/25 1,201 $134,228 $114,965 $11,606 $126,571 94.3%
4/25 1,202 $134,160 $116,017 $11,680 $127,696 95.2%
5/25 1,200 $133,809 $109,509 $11,237 $120,747 90.2%
6/25 1,195 $133,491 $93,594 $10,155 $103,749 77.7%
7/25 1,195 $133,718 $133,781 $12,847 $146,628 109.7%
8/25 1,197 $134,001 $96,501 $10,356 $106,857 79.7%
9/25 1,188 $133,208 $110,612 $11,272 $121,884 91.5%
10/25 1,195 $133,990 $122,430 $12,087 $134,516 100.4%
11/25 1,195 $133,933 $106,955 $11,050 $118,004 88.1%
12/25 1,188 $133,163 $107,472 $11,062 $118,533 89.0%
1/26 1,256 $141,374 $101,702 $10,896 $112,598 79.6%
2/26 1,255 $141,282 $127,451 $12,618 $140,068 99.1%
3/26 1,257 $141,213 $107,099 $11,261 $118,360 83.8%
PY 2024 14,086 $1,588,365 $1,318,409 $264,564 $1,582,974 99.7% PY 2025 14,383 $1,609,431 $1,336,794 $136,310 $1,473,104 91.5% PY 2026 3,768 $423,869 $336,252 $34,775 $371,027 87.5%
Rolling 12 14,523 $1,627,341 $1,333,123 $136,519 $1,469,642 90.3% 30 Dental Loss Ratio Report

ATTACHMENT A
104
Dental PPO Renewal (PRISM)
Dental Plan Benefits Delta Dental DPPO (PRISM)
ALL - Consolidated
Self-Funded - Current / Renewal
Calendar Year Maximum PPO Non-PPO
Per Member $1,500
(D & P does not count towards maximum)
Calendar Year Deductible
Individual / Family None
Diagnostic and Preventive
Oral Exam
X-Rays
Teeth Cleaning
Fluoride Treatment
Basic Services
Sealants
Anesthesia
Periodontics (Gum disease)
Endodontics (Root Canal)
Simple & Surgical Extractions
Major Services
Single Crowns
Inlays, Onlays, Veneers
Dental Implants
Bridges & Dentures
Repair & Maintenance of Bridgework & Dentures
Orthodontics Adult & Child
Benefit Percentage 50%
Lifetime Maximum $2,000
Out-of-Network Reimbursement Contracted Fees

ADMINISTRATION RATE GUARANTEE
1 Year
(1/1/2026 - 12/31/2026)
1 Year
(1/1/2027-12/31/2027)
PRISM Delta Dental Admin Fee 6.7% of Paid Claims
BCC, UW, and Program Management Fees $3.25 PEPM

FIE RATE GUARANTEE
1 Year
(1/1/2025 - 12/31/2025)
1 Year
(1/1/2027-12/31/2027)
MONTHLY RATES EEs Current Renewal
Employee Only 365 $56.67 $57.30
Employee + 1 185 $113.32 $114.57
Employee + Family 539 $147.31 $148.94
1089
TOTAL MONTHLY PREMIUM $121,049 $122,389
TOTAL ANNUAL PREMIUM $1,452,586 $1,468,663
ANNUAL DOLLAR CHANGE $16,077
ANNUAL PERCENT CHANGE 1.1%
Enrollment from Post OE Census as of December 2025
80%
80%
100%
This document is intended as a quick reference, not a comprehensive description. Limitations and exclusions can 50%
31 ATTACHMENT A
105
32 Dental HMO Renewal
Dental Plan Benefits DeltaCare DHMO
Current / Renewal
Diagnostic and Preventive
Office Visit 101 $0
Teeth Cleaning 1110 $0
X-Rays 210 $0
Sealants - per tooth 1351 $10
Restorative
Amalgam Filling 1-3 Surfaces 2140 $0
Composite Filling 2380 $0
Periodontics
Scaling and Root Planning - per quad 4341 $25
Gingivectomy (Per Quadrant) 4210 $130
Osseus Surgery 4260 $280
Endodontics (Root Canal Therapy)
Pulp Cap 3110 $0
Therapeutic Pulpotomy 3220 $0
Root Canal Therapy - (anterior) 3310 $55
Prosthodontics
Immediate - Upper or Lower 5130-40 $165
Complete - Upper or Lower 5110-20 $145
Partial Denture - Upper or Lower 5213-14 $160
Crown and Bridge
Inlay (one surface) 2510 $0
Crown - Porcelain/Ceramic Substrate 2740 $240
Crown - Porcelain Fused to High Noble Metal 2750-52 $140 - $240 Crown - Full Cast High Noble Metal 2790-92 $150 - $210
Oral Surgery
Extractions - Impacted tooth: soft tissue 7220 $50
Extractions - Impacted tooth: partial bony 7230 $70
Extractions - Impacted tooth: full bony 7240 $90
Orthodontics - comprehensive
Child to age 19 $1,700
Member over age 19 $1,900
RATE GUARANTEE 2 Years
(1/1/2025- 12/31/2026)
2 Years
(1/1/2027- 12/31/2028)
MONTHLY RATES EE's Current Renewal
Employee Only 148 $17.32 $17.32
Employee + 1 51 $33.40 $33.40
Employee + Family 82 $72.94 $72.94
281
TOTAL MONTHLY PREMIUM $10,248 $10,248
TOTAL ANNUAL PREMIUM $122,974 $122,974
ANNUAL DOLLAR CHANGE $0
ANNUAL PERCENT CHANGE 0.0%
Enrollment from Post OE Census as of December 2025
ADA
code
This document is intended as a quick reference, not a comprehensive description. Limitations and exclusions can be found in the official plan documents. In case of any discrepancies, the official plan documents will govern.

ATTACHMENT A
106
Vision Renewal
,,,,,.,,r,�,,,,,,.,,,,,,,,,,,.,,,�,�,,r,,,,,,,,,,,.,,,,.,,,,.,,,,,, , ,. , ,,,. , ,,,,. ,,, ,,, ,,, , ,,, .,,,. ,,. ,,,.. ,,. ,,,. ,,. ,,,. ,,, , ,,. ,,, ,,. ,,. ,,. , ,,,. ., ,, , , , ,, ., , ,, , , ,,. ,, ,,. ,,, ,,. .,. �,,r,�,�r�rr,r,�,,,,,rrr,�,,�,�,,�r�r,,,,��, ,,,,,.,,,.,,,,.,,.,,.,,,,,.,,,,,.,,,.,,,,�,,,,,,,,,.,,,,,.,,.,,,,,,, ,,. ,, , ,,. ,,. '., , ,,. ,,,. ,,. ,,,.. ,,,, ., , ,,. ,,. ,,. ,- . , , ,. , ,,. ,, ,,, ,,, ., ,,. ,. ,. ,,. ., r , ., , . ,,. , ,,. , , , , - r , ,,. ,, ,.,,,,,,,,,,,,,,,,,,,,,r,,r,,,,,,,,,,,,,,., ,,.,,,,,,,,.,,,,,,,,,,,,,,,,,.,,.,,,,,.,r,,,,,,,,,,,,.,,,,., r,,,,,.,,.,,.,,.,,.,,,.,�,,,,r,,,,,�,,,,�,,,�,,�,�,,,,,, r , r , ,,. , , , , r , r r , , ,,,,, .r , r r ,. ,. •, ,,,, r , , , , , r r , , , .,,,. r ,, . , , :r ., , , , ,, ,,. , ,,. .,,,. ,,,.. .,,. , ,,,. ,, , ,,. ,,. ,,. ,,. , ,,. ., :,, .,· ,, ,,,. ,,. ,,. ,,. .,,. ,,. ,,.. ,, ,,. ,' .,,. , ,,, ,,. , , , .,,,. , ,. ,,. ,, , , :r , ,,. r r r , , r· : ,,,.. ., , r , , , . r ,. , , r ., r , , , ,, r r ., ,,. ·, , , r , r , :r , , , ,, , , ,,. , , ,,,. ,, ,,. :,, ,, ,,,. , , , ,, ,, ,, ,,. , ,,, ,,. ,, , ,, ,. ,,,,. ,,. ,,, ,,. , , , ,, , ,. , , ., ,,. ,, , ,,. ,,,. ,,,,,.,,,.,,,,,,�,,,,,,,,, ,,. ,.,,,.,,.,,,,,,,,,,,,.,,,.,,,,,,,,,,,,,,, r,,, ,,.,,,,,,,,�,,,,,,.,,,,.,,,,,,,,.,,,,.,,,,,,.,r,,,,,,,,.,,. r ., , , , -r "' , r ., , r r , , , , , r .. ,,, , , , r , , , , , , , , , •r r r r , , , , , r r ,,, , ,,, , ,,, ,, ., ,,. ,,. ,,. ,,. :, ,,, ,,.. ,, , ,,. , ,,,, ,,. ,,, ,,,, ,,, , , ,, ,,. ,, , , ,, , ,,. ,,. ,, ,, ,, , ,,. ,,, _,,. ,,. , .,,,. r r ,, , " ·"' , ,- , , r· , ,- , , , , ,,,,. , , ,,,, , , , , , , ,,, r· , , , r , ,,, ,- r , , ,- , , ,- r r , r , ·r , ., r , , , r .,, r , , ., , .,,. r , , , ., , ,,. , r , ·, , r , , r r r , , , , ,, ,, :, , , , , r- :r , , r- , r r , ., , , , r ., , ., ,, , , , r , , , , r , , , , r , , , , , , r :r ,�rr,�rrrrrrr,,,,,,.,,,,,,,.,r,rr,,,,,,,,,�,r,, r , , r r ., r r , , ,,. r , ,,,. , , ,,. ,. ,, ,, ,,. r ,,.. ., , , ,,,. , ,. , , , , ,,. ,,. r ,- r , ·r .,,, r ,- ,,.,,,,. ,,,,,.,�,,,,,,,,,�,,,,rr,r,�,,,,r,,r,r,,,.,�,�, , , , r ,- ,: 1,., r, r �- , ,, , r r .,,,,. , , , r, ,,, , r r: ,, r,,,,,, r, ., , , , ,,,,,, .,,,,,,,,,,,,,,,,,,,.,,.,,,.,,,,,.,,,,,,,,, ,,,,,,,, , ,,,,. , , r r •r r , , r , r r , , , ,r ,- ·r :r r , r ,,,,. r r · , ., , ,,,,.. r ., , , , , ,- , , r , , r ,,,,,. ,- ,. ,,,,. ,,. ,, , ,, , ,. ,,, ,,. ,,,. , ,,,,. , , ,, , ,,. , ,, ,,, ,,. , ,, , , , ,, ,, , :, , , , .,,,. ,,. , ,,, , , ,,. .,,,. ,,,,,. , r r ,,- , .,,,. ., , ,,. r r , ., , ,- , r r r ,, ,· r .,,. -, , -,,,. , , r r , , , , r r , -I"' , r ·r r r ,

ATTACHMENT A
107
2027
Renewal
Results -
Vision
34 • The VSP plan is currently self-insured directly through VSP • Alliant recommends a vision reserve fund of approximately $10,000 to cover 3 weeks of claims
• Effective 1/1/2027, Alliant’s underwriting analysis for the Vision renewal is -1.4%.
• The underwriting analysis includes the following:
o Claims through May 2025
o 2.5% Trend
o 5% Margin
o The most recent 12 months are weighted 70% for current 12 months and 30% for the prior 12 months
o 2027 Administrative Fees:
▪ VSP ASO: $1.41 PEPM

ATTACHMENT A
108
Enrollment Funding Incurred Claims Fixed Costs TOTAL Total Surplus Employees Budgeted Dental Admin TOTAL COST Ratio (Deficit) Month
1/24 1,375 $21,251 $13,178 $2,745 $2,745 $15,922 75% $5,329 2/24 1,369 $21,173 $12,003 $2,733 $2,733 $14,736 70% $6,437 3/24 1,351 $20,857 $17,086 $2,696 $2,696 $19,782 95% $1,076 4/24 1,394 $21,459 $12,783 $2,778 $2,778 $15,561 73% $5,898 5/24 1,408 $21,673 $9,547 $2,806 $2,806 $12,353 57% $9,319 6/24 1,418 $21,711 $11,836 $2,821 $2,821 $14,657 68% $7,054 7/24 1,439 $22,006 $14,110 $2,861 $2,861 $16,971 77% $5,035 8/24 1,443 $22,014 $12,754 $2,866 $2,866 $15,620 71% $6,393 9/24 1,463 $22,231 $15,823 $2,902 $2,902 $18,725 84% $3,506 10/24 1,456 $22,147 $10,065 $2,889 $2,889 $12,954 58% $9,193 11/24 1,451 $22,156 $16,191 $2,883 $2,883 $19,074 86% $3,083 12/24 1,453 $22,079 $10,444 $2,882 $2,882 $13,326 60% $8,752 1/25 1,444 $20,651 $9,206 $1,805 $1,805 $11,011 53% $9,640 2/25 1,461 $20,782 $11,499 $1,826 $1,826 $13,325 64% $7,457 3/25 1,464 $20,812 $12,009 $1,830 $1,830 $13,839 66% $6,973 4/25 1,471 $20,865 $11,505 $1,839 $1,839 $13,344 64% $7,521 5/25 1,465 $20,746 $12,604 $1,831 $1,831 $14,435 70% $6,311 6/25 1,464 $20,754 $11,258 $1,830 $1,830 $13,088 63% $7,666 7/25 1,463 $20,782 $9,837 $1,829 $1,829 $11,665 56% $9,116 8/25 1,480 $20,950 $15,825 $1,850 $1,850 $17,675 84% $3,275 9/25 1,466 $20,797 $11,846 $1,833 $1,833 $13,679 66% $7,118 10/25 1,478 $20,922 $14,610 $1,848 $1,848 $16,458 79% $4,464 11/25 1,483 $20,939 $16,267 $1,854 $1,854 $18,121 87% $2,818 12/25 1,485 $20,913 $18,070 $1,856 $1,856 $19,927 95% $986 1/26 1,483 $17,451 $16,444 $2,091 $2,091 $18,535 106% ($1,084) 2/26 1,486 $17,494 $14,529 $2,095 $2,095 $16,624 95% $870 3/26 1,489 $17,503 $12,950 $2,099 $2,099 $15,049 86% $2,454 4/26 1,487 $17,536 $14,385 $2,097 $2,097 $16,482 94% $1,054 5/26 1,481 $17,458 $13,332 $2,088 $2,088 $15,420 88% $2,038 PY 2024 17,020 $260,756 $155,818 $33,863 $33,863 $189,681 73% $71,074 PY 2025 17,624 $249,911 $154,536 $22,030 $22,030 $176,566 71% $73,346 PY 2026 7,426 $87,443 $71,640 $10,471 $10,471 $82,111 94% $5,332 Rolling 12 17,745 $233,498 $169,353 $23,369 $23,369 $192,722 83% $40,776 35 Vision Loss Ratio Report

ATTACHMENT A
109
36 Vision Renewal
Vision Plan Benefits VSP Choice Plan
Self-Funded
In-Network Out-of-Network
Copay
Plan pays
up to:

Exam $10 $45
Lenses
Single $20 $30
Bifocal $20 $50
Trifocal $20 $65
Contact Lenses $120 Allowance
(Copay Waived) $105
Frames $120 Allowance
+ 20% Discount (over
$120)
$70
Frequency of Services
Eye Examination 12 months
Lenses 12 months
Frames 12 months
Contact Lenses* 12 months
* In lieu of frames
Administration Rate Guarantee 3 Years
(1/1/2026 - 12/31/2028)
Admin Fee $1.41 PEPM
Rate Guarantee
1 Year
(1/1/2026-12/31/2026)
1 Year
(1/1/2027-12/31/2027)
MONTHLY RATES EE'S Current Renewal
Employee Only 524 $6.14 $6.05
Employee + 1 Dependent 234 $12.29 $12.12
Employee + Family 629 $15.95 $15.73
1387
TOTAL MONTHLY PREMIUM $16,126 $15,900
TOTAL ANNUAL PREMIUM $193,509 $190,805
ANNUAL $ DIFFERENCE ($2,704)
ANNUAL % DIFFERENCE -1.4%
Out-of-Network - Plan will pay after in-network Copay. Frames have a $20 copay.

Enrollment from VSP Enrollment Sheet as of January 2026 This document is intended as a quick reference, not a comprehensive description. Limitations and exclusions can be found in the official plan documents. In case of any discrepancies, the official plan documents will govern.

ATTACHMENT A
110
EAP Renewal
,,,,,.,,r,�,,,,,, .,,,,,,,,,,,.,,,�,�,,r,,,,,,,,,,,.,,,,.,,,,.,,,,,, , ,. , ,,,. , ,,,,. ,,, ,,, ,,, , ,,, .,,,. ,,. ,,,.. ,,. ,,,. ,,. ,,,. ,,, , ,,. ,,, ,,. ,,. ,,. , ,,,. ., ,, , , , ,, ., , ,, , , ,,. ,, ,,. ,,, ,,. .,. �,,r,�,�r�rr,r,�,,,,,rrr,�,,�,�,,�r�r,,,,��, ,,,,,.,,,.,,,,.,,.,,.,,,,,.,,,,,.,,,.,,,,�,,,,,,,,,.,,,,,.,,.,,,,,,, ,,. ,, , ,,. ,,. '., , ,,. ,,,. ,,. ,,,.. ,,,, ., , ,,. ,,. ,,. ,- . , , ,. , ,,. ,, ,,, ,,, ., ,,. ,. ,. ,,. ., r , ., , . ,,. , ,,. , , , , - r , ,,. ,, ,.,,,,,,,,,,,,,,,,,,,,,r,,r,,,,,,,,,,,,,,., ,,.,,,,,,,,.,,,,,,,,,,,,,,,,,.,,.,,,,,.,r,,,,,,,,,,,,.,,,,., r,,,,,.,,.,,.,,.,,.,,,.,�,,,,r,,,,,�,,,,�,,,�,,�,�,,,,,, r , r , ,,. , , , , r , r r , , ,,,,, .r , r r ,. ,. •, ,,,, r , , , , , r r , , , .,,,. r ,, . , , :r ., , , , ,, ,,. , ,,. .,,,. ,,,.. .,,. , ,,,. ,, , ,,. ,,. ,,. ,,. , ,,. ., :,, .,· ,, ,,,. ,,. ,,. ,,. .,,. ,,. ,,.. ,, ,,. ,' .,,. , ,,, ,,. , , , .,,,. , ,. ,,. ,, , , :r , ,,. r r r , , r· : ,,,.. ., , r , , , . r ,. , , r ., r , , , ,, r r ., ,,. ·, , , r , r , :r , , , ,, , , ,,. , , ,,,. ,, ,,. :,, ,, ,,,. , , , ,, ,, ,, ,,. , ,,, ,,. ,, , ,, ,. ,,,,. ,,. ,,, ,,. , , , ,, , ,. , , ., ,,. ,, , ,,. ,,,. ,,,,,.,,,.,,,,,,�,,,,,,,,, ,,. ,.,,,.,,.,,,,,,,,,,,,.,,,.,,,,,,,,,,,,,,, r,,, ,,.,,,,,,,,�,,,,,,.,,,,.,,,,,,,,.,,,,.,,,,,,.,r,,,,,,,,.,,. r ., , , , -r "' , r ., , r r , , , , , r .. ,,, , , , r , , , , , , , , , •r r r r , , , , , r r ,,, , ,,, , ,,, ,, ., ,,. ,,. ,,. ,,. :, ,,, ,,.. ,, , ,,. , ,,,, ,,. ,,, ,,,, ,,, , , ,, ,,. ,, , , ,, , ,,. ,,. ,, ,, ,, , ,,. ,,, _,,. ,,. , .,,,. r r ,, , " ·"' , ,- , , r· , ,- , , , , ,,,,. , , ,,,, , , , , , , ,,, r· , , , r , ,,, ,- r , , ,- , , ,- r r , r , ·r , ., r , , , r .,, r , , ., , .,,. r , , , ., , ,,. , r , ·, , r , , r r r , , , , ,, ,, :, , , , , r- :r , , r- , r r , ., , , , r ., , ., ,, , , , r , , , , r , , , , r , , , , , , r :r ,�rr,�rrrrrrr,,,,,,.,,,,,,,.,r,rr,,,,,,,,,�,r,, r , , r r ., r r , , ,,. r , ,,,. , , ,,. ,. ,, ,, ,,. r ,,.. ., , , ,,,. , ,. , , , , ,,. ,,. r ,- r , ·r .,,, r ,- ,,.,,,,. ,,,,,.,�,,,,,,,,,�,,,,rr,r,�,,,,r,,r,r,,,.,�,�, , , , r ,- ,: 1,., r, r �- , ,, , r r .,,,,. , , , r, ,,, , r r: ,, r,,,,,, r, ., , , , ,,,,,, .,,,,,,,,,,,,,,,,,,,.,,.,,,.,,,,,.,,,,,,,,, ,,,,,,,, , ,,,,. , , r r •r r , , r , r r , , , ,r ,- ·r :r r , r ,,,,. r r · , ., , ,,,,.. r ., , , , , ,- , , r , , r ,,,,,. ,- ,. ,,,,. ,,. ,, , ,, , ,. ,,, ,,. ,,,. , ,,,,. , , ,, , ,,. , ,, ,,, ,,. , ,, , , , ,, ,, , :, , , , .,,,. ,,. , ,,, , , ,,. .,,,. ,,,,,. , r r ,,- , .,,,. ., , ,,. r r , ., , ,- , r r r ,, ,· r .,,. -, , -,,,. , , r r , , , , r r , -I"' , r ·r r r ,

ATTACHMENT A
111
EAP Renewal – Halcyon EAP
EAP SimpleTherapy EAP
Plan Benefits Current / Renewal
Sessions
All Other 3 Sessions every 6 months1
First Responder N/A
Digital Capabilities
Digital Platforms Web Portal, eConnect mobile app, and
textcoach text therapy
Telephonic Included
Video Included
Text Included
Employee Services
Legal Included
Financial Included
Dependent Care Included
Employer Services
Management Consultations Unlimited
CISD Seminar(s) Unlimited
Onsite Orientations 10 Hours
Add-On
Coaching N/A

RATE GUARANTEE
1 Year
(1/1/2026 - 12/31/2026)
1 Year
(1/1/2027 - 12/31/2027)
MONTHLY RATES EE's Current Renewal
Per Employee Per Month 1,557 $1.72 $1.72
MONTHLY PREMIUM $2,678 $2,678
ANNUAL PREMIUM $32,136 $32,136
ANNUAL $ DIFFERENCE $0
ANNUAL % DIFFERENCE 0.0%
Employee Count from SimpleTherapy Enrollment Counts via Email This document is intended as a quick reference, not a comprehensive description. Limitations and exclusions can be found in the official plan documents. In case of any discrepancies, the official plan documents will govern.
1Additional beyond 3 sessions available at $100/visit (self-fund), up to 10 sessions. The City will receive an invoice from SimpleTherapy for each visit beyond initial 3. 38 ATTACHMENT A
112
Contributions

ATTACHMENT A
113
Contributions (All Employees except SPOA) – Sutter Health Plan 40 Employee Contributions 2026 Current Current 2027 Renewal Proposed Monthly Contributions Per Paycheck Monthly Contributions Per Paycheck Total ER Cost EE Cost EE % EE Cost Total ER Cost EE Cost EE % % ∆ EE Cost Sutter Health HMO LG18, DHMO, and Vision Lives LG18 Lives EE Only 36 $1,266.86 $936.10 $330.76 26.1% $165.38 36 $1,384.27 $973.54 $410.73 29.7% 24.2% $205.37 EE + 1 8 $2,284.59 $1,698.55 $586.04 25.7% $293.02 8 $2,495.92 $1,766.49 $729.43 29.2% 24.5% $364.72 EE + Family 23 $3,074.79 $2,263.20 $811.59 26.4% $405.80 23 $3,356.57 $2,353.73 $1,002.84 29.9% 23.6% $501.42 Annual Premium 67 $1,615,246 $1,192,099 $423,147 26.2% 67 $1,764,026 $1,239,782 $524,244 29.7% Sutter Health HMO LG18, DPPO, and Vision Lives LG18 Lives EE Only 130 $1,306.21 $936.10 $370.11 28.3% $185.06 130 $1,424.25 $973.54 $450.71 31.6% 21.8% $225.36 EE + 1 66 $2,364.51 $1,698.55 $665.96 28.2% $332.98 66 $2,577.09 $1,766.49 $810.60 31.5% 21.7% $405.30 EE + Family 158 $3,149.16 $2,263.20 $885.96 28.1% $442.98 158 $3,432.57 $2,353.73 $1,078.84 31.4% 21.8% $539.42 Annual Premium 354 $9,881,187 $7,096,595 $2,784,592 28.2% 354 $10,771,038 $7,380,455 $3,390,583 31.5% Sutter Health DHMO LG24, DHMO, and Vision Lives LG24 Lives EE Only 2 $1,095.36 $936.10 $159.26 14.5% $79.63 2 $1,136.37 $973.54 $162.83 14.3% 2.2% $81.42 EE + 1 2 $1,975.89 $1,698.55 $277.34 14.0% $138.67 2 $2,049.72 $1,766.49 $283.23 13.8% 2.1% $141.62 EE + Family 2 $2,663.29 $2,263.20 $400.09 15.0% $200.05 2 $2,761.67 $2,353.73 $407.94 14.8% 2.0% $203.97 Annual Premium 6 $137,629 $117,548 $20,081 14.6% 6 $142,746 $122,250 $20,496 14.4% Sutter Health DHMO LG24, DPPO, and Vision Lives LG24 Lives EE Only 9 $1,134.71 $936.10 $198.61 17.5% $99.31 9 $1,176.35 $973.54 $202.81 17.2% 2.1% $101.41 EE + 1 1 $2,055.81 $1,698.55 $357.26 17.4% $178.63 1 $2,130.89 $1,766.49 $364.40 17.1% 2.0% $182.20 EE + Family 9 $2,737.66 $2,263.20 $474.46 17.3% $237.23 9 $2,837.67 $2,353.73 $483.94 17.1% 2.0% $241.97 Annual Premium 19 $442,886 $365,907 $76,979 17.4% 19 $459,085 $380,543 $78,542 17.1% Sutter Health HDHP HE08, DHMO, and Vision Lives HE08 Lives EE Only 12 $1,081.16 $936.10 $145.06 13.4% $72.53 12 $1,176.67 $973.54 $203.13 17.3% 40.0% $101.57 EE + 1 4 $1,949.49 $1,698.55 $250.94 12.9% $125.47 4 $2,121.42 $1,766.49 $354.93 16.7% 41.4% $177.47 EE + Family 5 $2,627.29 $2,263.20 $364.09 13.9% $182.05 5 $2,856.57 $2,353.73 $502.84 17.6% 38.1% $251.42 Annual Premium 21 $406,900 $352,121 $54,779 13.5% 21 $442,663 $366,205 $76,458 17.3% Sutter Health HDHP HE08, DPPO, and Vision Lives HE08 Lives EE Only 23 $1,120.51 $936.10 $184.41 16.5% $92.21 23 $1,216.65 $973.54 $243.11 20.0% 31.8% $121.56 EE + 1 13 $2,029.41 $1,698.55 $330.86 16.3% $165.43 13 $2,202.59 $1,766.49 $436.10 19.8% 31.8% $218.05 EE + Family 59 $2,701.66 $2,263.20 $438.46 16.2% $219.23 59 $2,932.57 $2,353.73 $578.84 19.7% 32.0% $289.42 Annual Premium 95 $2,538,624 $2,125,683 $412,941 16.3% 95 $2,755,659 $2,210,710 $544,949 19.8%

ATTACHMENT A
114
Contributions (All Employees except SPOA) – Sutter Health Plan 41 Employee Contributions 2026 Current Current 2027 Renewal Proposed Monthly Contributions Per Paycheck Monthly Contributions Per Paycheck Total ER Cost EE Cost EE % EE Cost Total ER Cost EE Cost EE % % ∆ EE Cost Sutter Health HMO LG22, DHMO, and Vision Lives LG22 Lives EE Only 1 $1,187.06 $936.10 $250.96 21.1% 1 $1,261.47 $973.54 $287.93 22.8% 14.7% $143.97 EE + 1 2 $2,140.99 $1,698.55 $442.44 20.7% 2 $2,274.92 $1,766.49 $508.43 22.3% 14.9% $254.22 EE + Family 0 $2,883.29 $2,263.20 $620.09 21.5% 0 $3,061.87 $2,353.73 $708.14 23.1% 14.2% $354.07 Annual Premium 3 $65,628 $51,998 $13,630 20.8% 3 $69,736 $54,078 $15,657 22.5% Sutter Health HMO LG22, DPPO, and Vision Lives LG22 Lives EE Only 7 $1,226.41 $936.10 $290.31 23.7% 7 $1,301.45 $973.54 $327.91 25.2% 13.0% $163.96 EE + 1 6 $2,220.91 $1,698.55 $522.36 23.5% 6 $2,356.09 $1,766.49 $589.60 25.0% 12.9% $294.80 EE + Family 8 $2,957.66 $2,263.20 $694.46 23.5% 8 $3,137.87 $2,353.73 $784.14 25.0% 12.9% $392.07 Annual Premium 21 $546,859 $418,195 $128,664 23.5% 21 $580,196 $434,923 $145,273 25.0% Sutter Health DHMO LG29, DHMO, and Vision Lives LG29 Lives EE Only 0 $843.36 $843.36 $0.00 0.0% $421.68 0 $1,008.77 $973.54 $35.23 3.5% N/A $17.62 EE + 1 0 $1,522.29 $1,522.29 $0.00 0.0% $761.15 0 $1,820.02 $1,766.49 $53.53 2.9% N/A $26.77 EE + Family 1 $2,058.49 $2,058.49 $0.00 0.0% $1,029.25 1 $2,455.37 $2,353.73 $101.64 4.1% N/A $50.82 Annual Premium 1 $24,702 $24,702 $0 0.0% 1 $29,464 $28,245 $1,220 4.1% Sutter Health DHMO LG29, DPPO, and Vision Lives LG29 Lives EE Only 4 $882.71 $882.71 $0.00 0.0% $441.36 4 $1,048.75 $973.54 $75.21 7.2% N/A $37.61 EE + 1 3 $1,602.21 $1,602.21 $0.00 0.0% $801.11 3 $1,901.19 $1,766.49 $134.70 7.1% N/A $67.35 EE + Family 9 $2,132.86 $2,132.86 $0.00 0.0% $1,066.43 9 $2,531.37 $2,353.73 $177.64 7.0% N/A $88.82 Annual Premium 16 $330,399 $330,399 $0 0.0% 16 $392,171 $364,526 $27,644 7.0% Sutter Health HDHP HL12, DHMO, and Vision Lives HL12 Lives EE Only 7 $833.36 $833.36 $0.00 0.0% $416.68 7 $880.37 $880.37 $0.00 0.0% N/A $0.00 EE + 1 2 $1,503.39 $1,503.39 $0.00 0.0% $751.70 2 $1,588.12 $1,588.12 $0.00 0.0% N/A $0.00 EE + Family 2 $2,032.49 $2,032.49 $0.00 0.0% $1,016.25 2 $2,145.47 $2,145.47 $0.00 0.0% N/A $0.00 Annual Premium 11 $154,863 $154,863 $0 0.0% 11 $163,557 $163,557 $0 0.0% Sutter Health HDHP HL12, DPPO, and Vision Lives HL12 Lives EE Only 11 $872.71 $872.71 $0.00 0.0% $436.36 11 $920.35 $920.35 $0.00 0.0% N/A $0.00 EE + 1 5 $1,583.31 $1,583.31 $0.00 0.0% $791.66 5 $1,669.29 $1,669.29 $0.00 0.0% N/A $0.00 EE + Family 20 $2,106.86 $2,106.86 $0.00 0.0% $1,053.43 20 $2,221.47 $2,221.47 $0.00 0.0% N/A $0.00 Annual Premium 36 $715,843 $715,843 $0 0.0% 36 $754,796 $754,796 $0 0.0% SUTTER TOTAL 650 $16,860,766 $12,945,953 $3,914,813 23.2% 650 $18,325,138 $13,500,071 $4,825,067 26.3% Change from current - $ $1,464,372 $554,118 $910,254
Change from current - % 8.7% 4.3% 23.3%

ATTACHMENT A
115
42 Contributions (All Employees except SPOA) – Kaiser
Employee Contributions 2026 Current Current 2027 Renewal Proposed Monthly Contributions Per Paycheck Monthly Contributions Per Paycheck Total ER Cost EE Cost EE % EE Cost Total ER Cost EE Cost EE % % ∆ EE Cost Kaiser HMO, DHMO, and Vision Lives Lives
EE Only 63 $950.23 $936.10 $14.13 1.5% $7.07 63 $1,007.76 $973.54 $34.22 3.4% 142.2% $17.11 EE + 1 29 $1,713.87 $1,698.55 $15.32 0.9% $7.66 29 $1,817.43 $1,766.49 $50.94 2.8% 232.5% $25.47 EE + Family 34 $2,313.14 $2,263.20 $49.94 2.2% $24.97 34 $2,451.21 $2,353.73 $97.48 4.0% 95.2% $48.74 Annual Premium 126 $2,258,562 $2,222,173 $36,389 1.6% 126 $2,394,426 $2,311,057 $83,369 3.5% Kaiser HMO, DPPO and Vision Lives Lives
EE Only 148 $989.58 $936.10 $53.48 5.4% $26.74 148 $1,047.74 $973.54 $74.20 7.1% 38.7% $37.10 EE + 1 74 $1,793.79 $1,698.55 $95.24 5.3% $47.62 74 $1,898.60 $1,766.49 $132.11 7.0% 38.7% $66.05 EE + Family 228 $2,387.51 $2,263.20 $124.31 5.2% $62.16 228 $2,527.21 $2,353.73 $173.48 6.9% 39.6% $86.74 Annual Premium 450 $9,882,607 $9,362,941 $519,666 5.3% 450 $10,461,190 $9,737,455 $723,734 6.9% Kaiser DHMO, DHMO, and Vision Lives Lives
EE Only 3 $816.86 $816.86 $0.00 0.0% $0.00 3 $881.16 $881.16 $0.00 0.0% 0.0% $0.00 EE + 1 3 $1,473.81 $1,473.81 $0.00 0.0% $0.00 3 $1,589.55 $1,589.55 $0.00 0.0% 0.0% $0.00 EE + Family 3 $1,993.05 $1,993.05 $0.00 0.0% $0.00 3 $2,147.37 $2,147.37 $0.00 0.0% 0.0% $0.00 Annual Premium 9 $154,214 $154,214 $0 0.0% 9 $166,251 $166,251 $0 0.0% Kaiser DHMO, DPPO, and Vision Lives Lives
EE Only 11 $856.21 $856.21 $0.00 0.0% $0.00 11 $921.14 $921.14 $0.00 0.0% 0.0% $0.00 EE + 1 5 $1,553.73 $1,553.73 $0.00 0.0% $0.00 5 $1,670.72 $1,670.72 $0.00 0.0% 0.0% $0.00 EE + Family 10 $2,067.42 $2,067.42 $0.00 0.0% $0.00 10 $2,223.37 $2,223.37 $0.00 0.0% 0.0% $0.00 Annual Premium 26 $454,334 $454,334 $0 0.0% 26 $488,638 $488,638 $0 0.0% Kaiser HDHP, DHMO, and Vision Lives Lives
EE Only 19 $768.60 $768.60 $0.00 0.0% $0.00 19 $832.11 $832.11 $0.00 0.0% 0.0% $0.00 EE + 1 5 $1,386.94 $1,386.94 $0.00 0.0% $0.00 5 $1,501.25 $1,501.25 $0.00 0.0% 0.0% $0.00 EE + Family 9 $1,877.22 $1,877.22 $0.00 0.0% $0.00 9 $2,029.65 $2,029.65 $0.00 0.0% 0.0% $0.00 Annual Premium 33 $461,197 $461,197 $0 0.0% 33 $498,998 $498,998 $0 0.0% Kaiser HDHP, DPPO, and Vision Lives Lives
EE Only 36 $807.95 $807.95 $0.00 0.0% $0.00 36 $872.09 $872.09 $0.00 0.0% 0.0% $0.00 EE + 1 24 $1,466.86 $1,466.86 $0.00 0.0% $0.00 24 $1,582.42 $1,582.42 $0.00 0.0% 0.0% $0.00 EE + Family 76 $1,951.59 $1,951.59 $0.00 0.0% $0.00 76 $2,105.65 $2,105.65 $0.00 0.0% 0.0% $0.00 Annual Premium 136 $2,551,340 $2,551,340 $0 0.0% 136 $2,752,833 $2,752,833 $0 0.0% KAISER TOTAL 780 $15,762,254 $15,206,199 $556,055 3.5% 780 $16,762,335 $15,955,232 $807,103 4.8% Change from current - $ $1,000,082 $749,033 $251,049
Change from current - % 6.3% 4.9% 45.1%

ATTACHMENT A
116
OE and Benefits Fair

ATTACHMENT A
117
44 Open Enrollment
Open Enrollment
October 1 – October 31
Employees will make benefit selections through the Tyler Munis ESS portal Open Enrollment Benefits Fair
Join for an on-site Benefits and Wellness Fair to learn more about our plans and ask questions.

Date Time Location
October 6, 2026 10am to 2pm
Stockton Memorial Civic
Auditorium (South Hall)
525 N. Center Street
Stockton CA 95202

ATTACHMENT A
118
© 2026 Alliant Insurance Services, Inc.

CA License No. 0C36861

ATTACHMENT A
119
Cost of Coverage
Full-Time Employees (excluding SPOA members)
Effective 1/1/2027
Kaiser Permanente HMO Plan - Medical, Dental and Vision Tier with DHMO Dental
Total Monthly
Premium
City Monthly
Contribution
Employee
Monthly
Contribution
Per Paycheck
Deduction
Employee Only $1,007.76 $973.54 $34.22 $17.11
Employee + 1 $1,817.43 $1,766.49 $50.94 $25.47
Employee + Family $2,451.21 $2,353.73 $97.48 $48.74
Tier with DPPO Dental
Total Monthly
Premium
City Monthly
Contribution
Employee
Monthly
Contribution
Per Paycheck
Deduction
Employee Only $1,047.74 $973.54 $74.20 $37.10
Employee + 1 $1,898.60 $1,766.49 $132.11 $66.05
Employee + Family $2,527.21 $2,353.73 $173.48 $86.74
Kaiser Permanente DEDUCTIBLE HMO Plan - Medical, Dental and Vision Tier with DHMO Dental
Total Monthly
Premium
City Monthly
Contribution
Employee
Monthly
Contribution
Per Paycheck
Deduction
Employee Only $881.16 $881.16 $0.00 $0.00
Employee + 1 $1,589.55 $1,589.55 $0.00 $0.00
Employee + Family $2,147.37 $2,147.37 $0.00 $0.00
Tier with DPPO Dental
Total Monthly
Premium
City Monthly
Contribution
Employee
Monthly
Contribution
Per Paycheck
Deduction
Employee Only $921.14 $921.14 $0.00 $0.00
Employee + 1 $1,670.72 $1,670.72 $0.00 $0.00
Employee + Family $2,223.37 $2,223.37 $0.00 $0.00
Kaiser Permanente HDHP Plan - Medical, Dental and Vision Tier with DHMO Dental
Total Monthly
Premium
City Monthly
Contribution
Employee
Monthly
Contribution
Per Paycheck
Deduction
Employee Only $832.11 $832.11 $0.00 $0.00
Employee + 1 $1,501.25 $1,501.25 $0.00 $0.00
Employee + Family $2,029.65 $2,029.65 $0.00 $0.00
Tier with DPPO Dental
Total Monthly
Premium
City Monthly
Contribution
Employee
Monthly
Contribution
Per Paycheck
Deduction
Employee Only $872.09 $872.09 $0.00 $0.00
Employee + 1 $1,582.42 $1,582.42 $0.00 $0.00
Employee + Family $2,105.65 $2,105.65 $0.00 $0.00

ATTACHMENT B
120
Cost of Coverage
Full-Time Employees (excluding SPOA members) Effective 1/1/2027 Sutter Health Plus HMO Plan LG18- Medical, Dental and Vision Tier with DHMO
Dental
Total Monthly
Premium
City Monthly
Contribution
Employee Monthly
Contribution
Per Paycheck
Deduction
Employee Only $1,384.27 $973.54 $410.73 $205.37
Employee + 1 $2,495.92 $1,766.49 $729.43 $364.72
Employee + Family $3,356.57 $2,353.73 $1,002.84 $501.42 Tier with DPPO
Dental
Total Monthly
Premium
City Monthly
Contribution
Employee Monthly
Contribution
Per Paycheck
Deduction
Employee Only $1,424.25 $973.54 $450.71 $225.36
Employee + 1 $2,577.09 $1,766.49 $810.60 $405.30
Employee + Family $3,432.57 $2,353.73 $1,078.84 $539.42 Sutter Health Plus Deductible HMO Plan LG24 - Medical, Dental and Vision Tier with DHMO
Dental
Total Monthly
Premium
City Monthly
Contribution
Employee Monthly
Contribution
Per Paycheck
Deduction
Employee Only $1,136.37 $973.54 $162.83 $81.42
Employee + 1 $2,049.72 $1,766.49 $283.23 $141.62
Employee + Family $2,761.67 $2,353.73 $407.94 $203.97
Tier with DPPO
Dental
Total Monthly
Premium
City Monthly
Contribution
Employee Monthly
Contribution
Per Paycheck
Deduction
Employee Only $1,176.35 $973.54 $202.81 $101.41
Employee + 1 $2,130.89 $1,766.49 $364.40 $182.20
Employee + Family $2,837.67 $2,353.73 $483.94 $241.97
Sutter Health Plus HDHP Plan HE08 - Medical, Dental and Vision Tier with DHMO
Dental
Total Monthly
Premium
City Monthly
Contribution
Employee Monthly
Contribution
Per Paycheck
Deduction
Employee Only $1,176.67 $973.54 $203.13 $101.57
Employee + 1 $2,121.42 $1,766.49 $354.93 $177.47
Employee + Family $2,856.57 $2,353.73 $502.84 $251.42
Tier with DPPO
Dental
Total Monthly
Premium
City Monthly
Contribution
Employee Monthly
Contribution
Per Paycheck
Deduction
Employee Only $1,216.65 $973.54 $243.11 $121.56
Employee + 1 $2,202.59 $1,766.49 $436.10 $218.05
Employee + Family $2,932.57 $2,353.73 $578.84 $289.42

ATTACHMENT B
121
Sutter Health Plus HMO Plan LG22- Medical, Dental and Vision Tier with DHMO
Dental
Total Monthly
Premium
City Monthly
Contribution
Employee Monthly
Contribution
Per Paycheck
Deduction
Employee Only $1,261.47 $973.54 $287.93 $143.97
Employee + 1 $2,274.92 $1,766.49 $508.43 $254.22
Employee + Family $3,061.87 $2,353.73 $708.14 $354.07
Tier with DPPO
Dental
Total Monthly
Premium
City Monthly
Contribution
Employee Monthly
Contribution
Per Paycheck
Deduction
Employee Only $1,301.45 $973.54 $327.91 $163.96
Employee + 1 $2,356.09 $1,766.49 $589.60 $294.80
Employee + Family $3,137.87 $2,353.73 $784.14 $392.07
Sutter Health Plus Deductible HMO Plan LG29 - Medical, Dental and Vision Tier with DHMO
Dental
Total Monthly
Premium
City Monthly
Contribution
Employee Monthly
Contribution
Per Paycheck
Deduction
Employee Only $1,008.77 $973.54 $35.23 $17.62
Employee + 1 $1,820.02 $1,766.49 $53.53 $26.77
Employee + Family $2,455.37 $2,353.73 $101.64 $50.82
Tier with DPPO
Dental
Total Monthly
Premium
City Monthly
Contribution
Employee Monthly
Contribution
Per Paycheck
Deduction
Employee Only $1,048.75 $973.54 $75.21 $37.61
Employee + 1 $1,901.19 $1,766.49 $134.70 $67.35
Employee + Family $2,531.37 $2,353.73 $177.64 $88.82
Sutter Health Plus HDHP Plan HL12 - Medical, Dental and Vision Tier with DHMO
Dental
Total Monthly
Premium
City Monthly
Contribution
Employee Monthly
Contribution
Per Paycheck
Deduction
Employee Only $880.37 $880.37 $0.00 $0.00
Employee + 1 $1,588.12 $1,588.12 $0.00 $0.00
Employee + Family $2,145.47 $2,145.47 $0.00 $0.00
Tier with DPPO
Dental
Total Monthly
Premium
City Monthly
Contribution
Employee Monthly
Contribution
Per Paycheck
Deduction
Employee Only $920.35 $920.35 $0.00 $0.00
Employee + 1 $1,669.29 $1,669.29 $0.00 $0.00
Employee + Family $2,221.47 $2,221.47 $0.00 $0.00

ATTACHMENT B
122
City of Stockton
Legislation Text
File #: 26-0809, Version: 1

APPROVE A MOTION AUTHORIZING AGREEMENT WITH GLOBAL RETIREMENT PARTNERS, LLC d/b/a SHUSTER ADVISORY GROUP, A HUB INTERNATIONAL COMPANY FOR INVESTMENT AND RECORDKEEPING ADMINISTRATIVE SERVICES TO SUPPORT THE CITY’S

DEFERRED COMPENSATION PLANS

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

1. Authorize the City Manager, or designee, to execute a three (3) year Memorandum of Understanding (MOU) with an option to extend for two (2) additional one (1) year terms between the City of Stockton (City) and Global Retirement Partners, LLC d/b/a Shuster Advisory Group, for administrative services to support the City’s 457(b), 457(b) Part-time, Temporary, Seasonal, and 401(a) Deferred Compensation Plans, not to exceed $48,000 per year paid directly from the Deferred Compensation Plan with no cost to the City; and

2. Approve findings which support and justify an exception to the competitive bidding process pursuant to the Stockton Municipal Code Section 3.68.070(A)(3) where the City held a competitive Request for Proposals.

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

Summary
The City of Stockton offers employee-funded supplemental retirement savings plans to all full-time and part-time employees. In May 2026, the City conducted a Request for Proposals (RFP) for Deferred Compensation Consulting Services through Bid PUR 26-031. On July 1, 2026, the RFP committee reviewed the proposals and scored each based on experience, professional qualifications, and performance. The Procurement department scored each proposal on overall cost. After all scores were combined, the Procurement Department determined that Shuster Advisory Group LLC received the highest score.

DISCUSSION
Background
In October 1972, Council adopted Resolution 30,047, which directed the offering of a 457 Deferred Compensation Plan to employees. The Plan's primary purpose was to attract and retain key personnel by allowing them to defer a portion of compensation they would otherwise receive and invest those funds in an appropriate defined contribution plan. The Deferred Compensation plan City of Stockton Printed on 8/28/2026Page 1 of 2
powered by Legistar™
123
File #: 26-0809, Version: 1
(457) allows employees to deposit payroll dollars into a 457 plan for long-term investment.

The City contracted with SST Benefits Consulting as the deferred compensation plan consultant for over ten (10) years. The deferred compensation plan consultant works with the City and the Recordkeeper (currently known as the Empower Retirement, LLC), to oversee the investments, ensuring the quality of the investments meets with the City’s portfolio standards. After 10 years with the same deferred compensation consultant and Recordkeeper, the City elected to request proposals from other deferred compensation consultants to compare consulting services/fees and select a consultant who will bring more value to the City’s deferred compensation program.

Present Situation
The City entered into an agreement with Shuster Advisory Group, LLC in October 2023 to provide investment and recordkeeping administrative services for the term of one (1) year with option to renew two (2) times for one (1) year term. Current contract is set to expire on October 30, 2026. In May of 2026 a Request for Proposals (RFP) for Deferred Compensation Consulting Services was conducted through Bid PUR 26-031. On July 1, 2026, the RFP committee reviewed the proposals and scored each based on experience, professional qualifications, and performance. The Procurement Department scored each proposal on overall cost. After all scores were combined, the Procurement Department determined that Shuster Advisory Group LLC received the highest score.

Council is being asked to approve a three (3) year MOU with the option to renew up to two (2) times for one (1) year, for investment and recordkeeping administrative services to support the City’s Deferred Compensation Plans with Shuster Advisory Group, LLC. The maximum not to exceed amount is $48,000 per year and it will be paid directly from the Deferred Compensation Plan, with no cost to the City. (Attachment A)
Findings
Pursuant to SMC section 3.68.070(A)(3), Council may approve findings that support an exception to the competitive bidding process. These findings include:
· Use of RFP is appropriate for this MOU because it relies on the evaluation of professional qualifications, experience, and performance as the basis of the selection. · Use of fiduciary advisors is important in risk mitigation, advanced knowledge of laws and regulations, managing investments and costs, which is outside City’s scope of duties.

FINANCIAL SUMMARY
The annual fee of $48,000.00 for the service will be deducted from the Plan(s) assets and paid to Shuster Advisory Group, LLC by the Plan(s) record keeper (Empower). The City will not incur any General Fund cost.

Attachment A - Agreement Shuster Advisory Group, LLC
City of Stockton Printed on 8/28/2026Page 2 of 2
powered by Legistar™
124

MEMORANDUM OF UNDERSTANDING (MOU)
This Mem
orandum of Understanding ( MOU) is made and entered into by and between Global Retirement Partners, LLC d/b/a Shuster Advisory Group, a HUB International Company (Consultant), and the City of Stockton, a municipal corporation (City), as of November 1, 2026. The Consultant and the City are sometimes referred to herein individually as a “ Party” or collectively as the “Parties.”

1. Reci
tals

WHEREAS
, City of Stockton is partnering with Consultant for deferred compensation consulting services and

WHEREAS
, Consultant possesses the necessary expertise and qualifications to provide the required services, and
WHE
REAS, the parties wish to establish the terms and conditions under which Consultant will provide said services to the City of Stockton NOW
, THEREFORE, in consideration of the mutual covenants contained herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

2. Scope of S
ervices

1.1 General Governance Consultation

1.1.1 Consultant shall provide compliance recommendations to ensure that the City's Deferred Compensation Plan is consistent with all laws and regulations of the United States Department of Labor, the Securities and Exchange Commission, the Internal Revenue Service as well as other necessary regulatory bodies.

1.1.2 Consultant shall advise the City regarding fiduciary responsibilities to further the performance, transparency, and accountability of the Deferred Compensation Plan program.

1.1.3 Consultant shall review and recommend necessary changes including but not limited to the City’s documentation, design, and operation of its Deferred Compensation Plan, written Investment Policy Statement, strategic goals, communication methods, detailed investment education programs, Industry best practices for both Internal and Plan provider procedures, Implementation of new federal laws and regulatory changes, etc.

1.2 Oversight and Regular Reporting

1.2.1 Consultant shall analyze existing plans, Identify, and develop ATTACHMENT A 125
cost- saving alternative benefit strategies and plans.

1.2.2 Consultant shall provide innovative approaches to benefit challenges facing the City and recommend benefit Plan changes.

1.2.3 Consultant shall assist in the development of short and long-range goals and strategies, including projects of potential savings.

1.2.4 Consultant shall provide analysis as described in Section 3 - Major Deliverables and Section 4 - Tasks that Support Major
Deliverables.

1.2.5 Consultant shall provide a high level of customer service to Include evaluation of data, submission of executive reports, and reconciliation of investments and plan accounts.

1.3 Investment Return Summaries

1.3.1 Consultant shall provide Investment return summaries as described In Section 4 – Tasks that Support Major Deliverables.

1.4 Requests for Proposal (RFP)

1.4.1 Consultant shall develop an RFP In accordance with the City’s Procurement Policy for a Deferred Compensation Plan
Provider(s) as described In Section 4 - Tasks that Support Major Deliverables.

1.5 Education and Training

1.5.1 Consultant shall develop and conduct training as needed to educate members and potential members of the benefits of the deferred compensation plan. Consultant may hold training In- person using a web- based video platform (e.g. Skype, Zoom, GoToMeeting, Microsoft Teams, etc.).

1.5.2 Consultant shall conduct outreach and provide educational materials as necessary to keep members, including the City's various bargaining unit representatives informed.

1.5.3 Consultant shall be available to discuss Investment, education, and governance with City employees, and bargaining unit representatives as necessary.

1.5.4 Consultant shall recommend Innovative solutions to better meet member needs.

2.1 Specifications
Consultant shall perform the following fiduciary services:

2.1.1 Consultant shall develop an Investment Policy Statement (IPS).

The IPS establishes the Investment policies and objectives for the Plan(s) and shall set forth the asset classes and investment categories to be offered under the Plan(s}, as well as the criteria and standards for selecting and monitoring the Investments. The City will have the ultimate responsibility and authority to establish such policies and objectives and to adopt the Investment policy statement.

ATTACHMENT A
126

2.1.2 Consultant shall select the initial investment options within the Plan(s) consistent with the Investment Policy statement.

2.1.3 Consultant shall periodically review the Investments within the Plan(s) and shall be responsible for making additions/deletions thereto.

2.1.4 Consultant shall provide periodic Investment advisory reports that document consistency of fund management and performance to the guidelines set forth in the IPS, and to make recommendations to maintain or remove and replace Investment options. Reports to Include: Market Overview, In-Depth Portfolio Summary, Plan Asset Allocation Analysis, and Fund Performance Comparison to the Index.

2.1.5 Consultant shall meet with City on a periodic basis to discuss reports and recommendations.

2.1.6 Consultant shall annually review the IPS With the City to ensure it continues to meet the City’s needs.

2.1.7 Consultant shall select a default Investment for participants who fail to make an investment election.

2.1.8 Consultant shall coordinate the Deferred Compensation quarterly meetings, record the meeting minutes, and provide minutes to the attending members.

2.2 Consultant shall perform the following Non-Fiduciary services:

2.2.1 Education Program Strategy – Consultant shall assist in the education of the participants in the Plan(s) about general investing principles and the investment alternatives. This shall include on-site meetings, webinars, and one-on-one consultations.

2.2.2 Consultant shall distribute Plan(s) level newsletters to the City.

2.2.3 Consultant provides custom communications when needed.

2.2.4 Consultant shall provide Plan(s) design consulting and Plan document review.

2.2.5 Consultant shall assist the City In the transition of previous record- keeper(s) and/or Plan(s) provider(s).

2.2.6 Consultant shall provide vendor management/issue resolution to the City.

2.2.7 Consultant shall provide consulting assistance on fiduciary best practices.

2.2.8 Consultant shall provide assistance with mandatory and optional legislative changes. ·

2.2.9 Consultant shal
l assist the City In their communications with
recordkeepers and/or Plan(s) providers.

2.2.10 Consultant shall provide RFP services in accordance with the City's Procurement Policy and Plan(s) fee negotiations on behalf of the City.

2.2.11 Consultant shall perform incumbent vendor audit and fee review.

2.2.12 Consultant shall provide retiree meeting and consultations.

2.2.13 Consultant shall provide contract review support.

ATTACHMENT A 127

3.1 Maj
or Deliverables

3.1.1 Investment Policy Statement

3.1.2 Regular Reporting

3.1.2.1 Market overview

3.1.2.2 ln Depth Portfolio Summary

3.1.2.3 Plan Asset Allocation

3.1.2.4 Fund Performance Comparison •

3.1.3 Investment Return Summaries

3.1.4 Deferred Compensation RFP

3.1.5 Deferred Compensation Meeting Minutes

3.1.6 Plan Communications

4.1 Tasks
That Support the Deliverables
Investment Policy Statement

4.1.1 Consultant shall develop an Investment Policy Statement (IPS).

The IPS establishes the Investment policies and objectives for the Plan(s) and shall set forth the asset classes and Investment categories to be offered under the Plan(s), as well as the criteria and standards for selecting and monitoring the Investments. The City will have the ultimate responsibility and authority to establish such policies and objectives and to adopt the Investment policy statement.

4.2 Regular Reporting

4.2.1 Consultant shall document consistency of fund management and performance to the guidelines set forth in the IPS and to make recommendations to maintain or remove and replace Investment options.

4.2.2 Consultant shall provide analysis and recommendations based on utilization and performance reports, statistical and financial reports, and Plan specific data.

4.2.3 Consultant shall monitor and analyze experience trends, providing timely alerts on changing patterns, and making appropriate recommendations.

4.2.4 Consultant shall provide, maintain and update comparison reports of other public and private companies' benefit Plan offerings, and costs, to determine their competitiveness with the City's options.

4.2.5 Consultant shall prepare, provide and present various types of reports as needed, such as cost analysis for benefit changes, and other statistical, financial, forecasting, trend, or experience reports, as well as new products and audits, as requested.

4.2.6 Consultant shall monitor and evaluate performance measures and guarantees for the Plan provider(s).

ATTACHMENT A 128

4.2.7 Consultant shall maintain full and accurate records with respect to all matters and services provided on behalf of the City's Plan(s).

Consultant shall provide City staff and officials all spreadsheets, assumptions and calculations upon completion of any project performed on behalf of the City's Plan(s).

4.3 Investment Return Summaries

4.3.1 Total return - Consultant shall provide a detailed breakdown of beginning market value, contributions and withdrawals, Income, capital gains/losses, and ending market value.

4.3.2 Consultant shall compare returns in each asset category to their benchmarks Including, but not limited to, the following:

4.3.2.1 Cash and cash Equivalents

4.3.2.2 Stable Value/General Account/Fixed Account

4.3.2.3 Bonds

4.3.2.4 Domestic Equity

4.3.2.5 International Equity

4.3.2.6 Global Equity

4.3.2.7 Pre-Set Asset Allocation

4.4 Deferred Compensation RFP

4.4.1 Consultant shall develop an RFP in accordance with the City's Procurement policy for a Deferred Compensation Plan Provider(s) that will identify the record keeping, reporting, and investment choices to be provided to City employees.

4.4.2 Consultant shall notify potential Deferred Compensation Plan providers of the RFP posting on Bid Flash.

4.4.3 Consultant shall conduct written analysis of all responses.

4.4.4 Consultant shall assist with the Plan provider Interviews.

4.4.5 Consultant shall assist with service agreement negotiations.

4.4.6 Consultant shall assist with the oversight of any transition and implementation period.

4.5 Consultant shall coordinate the Deferred Compensation meetings, record the meeting minutes and provide minutes to the attending member.

5.1 Internal and External Standards and Guidelines
Excluded Assets

5.1.1 Consultant shall have no responsibility to provide any services related to the following types of assets: employer securities; real estate (except for real estate funds and publicly traded REITs); stock brokerage accounts or mutual fund windows; in-plan guaranteed retirement income annuity products; participant loans; non-publicly traded partnership interests:
other non-publicly traded securities (other than collective trusts and similar vehicles): or other hard-to-value securities or assets. Such assess

ATTACHMENT A
129
(exc
ept for real estate funds, publicly traded REITs, and collective trusts and similar vehicles) shall be referred to collectively as “Excluded Assets.” The Excluded Assets shall be disregarded in determining the fees payable to Consultant pursuant to this Memo of Understanding and the fees shall be calculated only on the remaining assets (the “Included Assets”).

5.2 Fiduciary Status: Limitations on Functions

5.2.1 In performing the Fiduciary Services, Consultant is acting as a fiduciary of the plan and as a registered Investment Advisor under the Investment Advisers Act of 1940.

5.2.2 In performing the Non-Fiduciary Services, Consultant is not acting as a fiduciary of the plan. ·

5.2.3 In performing both Non-Fiduciary Services and Fiduciary Services, Consultant does not act as, nor has Consultant agreed to assume the duties of, a trustee or the Plan Administrator, and Consultant has no discretion or responsibility to interpret the plan documents, to determine eligibility or participation under the plan, or to take any other action with respect to the management, administration or any other aspect of the plan.

5.2.4 Consultant shall not provide legal or tax advice.

5.2.5 Investments are subject to various market, political, currency, economic, and business risks, and may not always be profitable.

As a result, Consultant does not and cannot guarantee financial results.

5.2.6 Consultant may, by reason of performing services for other clients, from time to time acquire confidential Information. City acknowledges and agrees that Consultant is unable to divulge to the City or any other party, or to act upon, any such confidential Information with respect to the performance of this Agreement.

5.2.7 Consultant is entitled to rely upon all information provided to Consultant (whether financial or otherwise) from reputable third parties or by City, City's representatives, or third-party service providers to City, the Plan or Consultant without independent verification. City agrees to promptly notify Consultant in writing of any material change in the financial and other information provided to Consultant and to promptly provide any such additional information as may be reasonably requested by Consultant.

5.2.8 Consultant shall not be responsible for voting (or recommending how to vote) proxies of any publicly traded securities (including mutual fund shares) held by the plan (or its trust). Responsibility for voting proxies of investments held by the plan or its trust remain with City (or, if applicable, the plan participants).

ATTACHMENT A
130

5.2.9 City understands that Consultant: (i) may perform other services for other clients, (ii) may charge a different fee for other clients, and (iii) may give advice and take action that Is different for each client even when retirement plans are similar.

5.2.10 Limitations on Fiduciary Services

5.2.10.1 Consultant shall not be responsible or liable for the recommendations of or services rendered by anyone
other than Consultant. The ability to perform the above services is contingent upon the rules, policies,
processes, and responsiveness to requests for
information of City, Plan Sponsor, Record Keeper(s),
and/or Third-Party Administrator(s).

5.2.11 Limitations on Non-Fiduciary Services

5.2.11.1 Consultant shall not be responsible or liable for the recommendations of or services rendered by anyone
other than Consultant. Consultant and Plan Sponsor will work together to determine mutually agreed upon for
services requiring both parties coordinate and/or attend.

The ability to perform the above services is contingent upon the rules, policies, processes, and responsiveness to requests for information of City, Plan Sponsor,
Record Keeper(s), and/or Third-Party Administrator(s).

5.3 Representations of City

5.3.1 City represents and warrants as follows:

5.3.1.1 It is the responsible plan fiduciary for the control and/or management of the assets of the plan, and for the
selection and monitoring of service providers for the plan.

Consultant is entitled to rely upon this statement until notified in writing to the contrary.

5.4 Representation of Consultant

5.4.1 Consultant represents as follows:

5.4.1.1 Consultant is registered as an Investment Advisor (“RIA”) under the Investment Advisers Act of 1940.

5.4.1.2 Consultant agrees to take reasonable steps to protect Private Participant Information and Plan Investment Data in its possession;
Consultant is not responsible for the assessment of systems and procedures of third parties for the protection of plan and participant data;
Consultant is not responsible for the actions by or the failure to act by City, by other service providers, or by Plan participants to protect Data;

ATTACHMENT A
131
Consultant shall have no liability in the event of a Data breach or a violation of participant privacy rights (under the California Consumer Privacy Act or otherwise) unless said breach is the direct result of negligence, recklessness, or willful misconduct of an employee of Consultant

5.5 Standard of Care

5.5.1 Consultant shall perform the Fiduciary Services described in Section 5 in accordance with the standard of care of the prudent man rule set forth In the Investment Adviser Act of 1940.

5.5.2 Consultant shall perform the Non-Fiduciary Services described In Section 5 using reasonable business judgment and shall not be liable for any liabilities and claims arising thereunder, unless directly arising from Consultant's intentional misconduct or gross negligence.

5.6 Effect

5.6.1 This Agreement shall be binding upon and shall inure to the benefit of the Parties and their respective heirs, successors, survivors, administrators and assigns.

5.7 Waiver of Limitation

5.7.1 Nothing in this Agreement shall in any way constitute a waiver or limitation of any rights which City or Plan or any other party may have under federal or state securities law.

6. Compensa
tion and Payment

3.1 At the direction of the City, the annual fee of $48,000.00 for service will be deducted from the Plan(s) assets and paid to Consultant by the Plan(s) record keeper. There is no cost to the City.

7. Insurance
Requirements for Services
Consu
ltant shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder by the Consultant, its agents, representatives, or employees.

MINIMUM

SCOPE AND LIMIT OF INSURANCE
Cover
age shall be at least as broad as:

1. Comm
ercial 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.

ATTACHMENT A
132

2. Automobile Liability: Insurance Services Office Form Number CA 0001 covering, Code 1 (any auto), or if Consultant has no owned autos, Code 8 (hired) and 9 (non- owned), with limit no less than $1,000,000 per accident for bodily injury and property damage.

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

4. Prof
essional Liability (Errors and Omissions) Insurance appropriates to the Consultant’s profession, with limit no less than $2,000,000 per occurrence or claim, $2,000,000 aggregate.

If
the Consultant 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 Consultant. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City of Stockton.

Other I
nsurance Provisions
The ins
urance policies are to contain, or be endorsed to contain, the following provisions:

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

Primary Coverage
For any claims related to this contract, the Consultant’s insurance coverage shall be primary and non-contributory and at least as broad as ISO CG 20 01 12 19 as respects the City of Stockton, its officers, officials, employees, and volunteers. Any insurance or self-insurance maintained by the City of Stockton, its officers, officials, employees, or volunteers shall be excess of the Consultant’s insurance and shall not contribute with it.

This requirement shall also apply to any Excess or Umbrella liability policies. The City of Stockton does not accept endorsements limiting the Consultant’s insurance coverage to the sole negligence of the Named Insured.

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

ATTACHMENT A
133
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 S
ubrogation
Consultant hereby grants to City of Stockton a waiver of any right to subrogation which any insurer of said Consultant may acquire against the City of Stockton by virtue of the payment of any loss under such insurance. Consultant agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation and provide a copy to the City of Stockton, but this provision applies regardless of whether or not an endorsement has been issued.

The Workers’ Compensation policy shall be endorsed with a waiver of subrogation in favor of the City of Stockton for all work performed by the Consultant, its employees, agents and subcontractors. This provision applies regardless of whether or not an endorsement has been issued.

Self-I
nsured Retentions
Self-insured retentions must be declared to and approved by the City of Stockton. The City of Stockton may require the Consultant to purchase coverage with a lower retention or provide proof of ability to pay losses and related expenses within the retention. The policy language shall provide, or be endorsed to provide, that the self-insured retention may be satisfied by either the named insured or City of Stockton.

Acceptabi
lity 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 (Does Not Apply to Commercial General Liability) If any of the required policies provide claims-made coverage:

1. The Ret
roactive Date must be shown and must be before the date of the contract or the beginning of contract work.

2. Insur
ance 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 c
overage is canceled or non-renewed, and not replaced with another claims- made policy form with a Retroactive Date prior to the contract effective date, the Consultant must purchase “extended reporting” coverage for a minimum of five (5) years after completion of work.

Ver
ification of Coverage
Consultant 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 required documents are to be received and approved by the City of Stockton before work commences. However, failure to obtain the documents prior to the work beginning shall not waive the Consultant’s obligation to provide them. The City of Stockton reserves the right to require complete, certified copies of all required insurance policies, including endorsements, at any time.

ATTACHMENT A
134
Subcontractors
Consultant shall require and verify that all subcontractors maintain insurance meeting all the requirements stated herein, and Consultant shall ensure that City of Stockton is an additional insured on insurance required from subcontractors.

Durat
ion of Coverage
CGL & Excess liability policies for any construction related work, including, but not limited to, maintenance, service, or repair work, shall continue coverage for a minimum of 5 years for Completed Operations liability coverage. Such Insurance must be maintained and evidence of insurance must be provided for at least five (5) years after completion of the contract of work.

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

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

City of Stockton
Its Officers, Officials, Employees, and Volunteers
501 W Weber Avenue
Building 1, 4th Floor
Stockton, CA 95203

8. Term
Comm
ences on November 1, 2026 and terminates on October 31, 2029.

5.1 The
term is the MOU may be extended up to two (2) additional one (1) one-year terms by a written amendment executed by both parties.

9. Amend
ments
Any amend
ments or modifications to this MOU must be made in writing and signed by both parties.

10. Signatures
In witness whereof, the parties hereto have executed this MOU as of the date first above written.

ATTACHMENT A
135
City of Stockton:

Johnny Ford
City Manager
501 W. Weber Ave, Building 1, 5th Floor
Stockton, CA 95203
Global Retirement Partners, LLC d/b/a
Shuster Advisory Group, a HUB
International Company:

Scott Hauptmann
President
155 N. Lake Ave, Suite 950
Pasadena CA 91101
Acknowledged:

Mark Shuster, Investment Advisor
Representative

ATTACHMENT A
136

EXHIBIT A

STATEMENT OF WORK

1. Project Objectives
The City, as the responsible plan fiduciary for the 457(b) Deferred Compensation, 401(a) Defined Contribution retirement plan and 457(b) Plan for Part-Time, Seasonal and Temporary Employees plan (“Plan(s)”), desires to engage Contractor to provide the services described in this Exhibit.

1.1 Fiduciary Authority. City as the responsible plan fiduciary has the authority to designate investment alternatives under the Plan and the related trust, and to enter into an Agreement with third parties to assist in these and related duties.

2. Project Scope

2.1 General Governance Consultation

2.1.1 Contractor shall provide compliance recommendations to ensure that the City's Deferred Compensation Plan is consistent with all laws and regulations of the United States Department of Labor, the Securities and Exchange Commission, the Internal Revenue Service as well as other necessary regulatory bodies.

2.1.2 Contractor shall advise the City regarding fiduciary responsibilities to further the performance, transparency, and accountability of the Deferred Compensation Plan program.

2.1.3 Contractor shall review and recommend necessary changes including but not limited to the City’s documentation, design and operation of its Deferred Compensation Plan, written Investment Policy Statement, strategic goals, communication methods, detailed investment education programs, Industry best practices for both Internal and Plan provider procedures, Implementation of new federal laws and regulatory changes, etc.

2.2 Oversight and Regular Reporting

2.2.1 Contractor shall analyze existing plans, Identify, and develop cost - saving alternative benefit strategies and plans.

2.2.2 Contractor shall provide innovative approaches to benefit challenges facing the City and recommend benefit Plan changes.

ATTACHMENT A
137

2.2.3 Contractor shall assist in the development of short and long-range goals and strategies, Including projects of potential savings.

2.2.4 Contractor shall provide analysis as described in Section 4, Major Deliverables and Section 5, Tasks that Support Major Deliverables of this Exhibit.

2.2.5 Contractor shall provide a high level of customer service to Include evaluation of data, submission of executive reports and reconciliation of investments and plan accounts.

2.3 Investment Return summaries

2.3.1 Contractor shall provide Investment return summaries as described In Section 5, Tasks that Support Major Deliverables of this Exhibit

2.4 Requests for Proposal (RFP)

2.4.1 Contractor shall develop an RFP In accordance with the City's Procurement Policy for a Deferred Compensation Plan Provider(s) as described In Section 5, Tasks that Support Major Deliverables of this Exhibit.

2.5 Education and Training

2.5.1 Contractor shall develop and conduct training as needed to educate members and potential members of the benefits of the deferred compensation plan. Contractor may hold training In-person using a web- based video platform (e.g. Skype, Zoom, GoToMeeting, Microsoft Teams, etc.).

2.5.2 Contractor shall conduct outreach and provide educational materials as necessary to keep members, including the City's various bargaining unit representatives informed.

2.5.3 Contractor shall be available to discuss Investment, education. and governance with City employees and bargaining unit representatives as necessary.

2.5.4 Contractor shall recommend Innovative solutions to better meet member needs.

Specifications

3.1 Contractor shall perform the following fiduciary services:

3.1.1 Contractor shall develop an Investment Policy Statement (IPS). The IPS establishes the Investment policies and objectives for the Plan(s), and shall set forth the asset classes and investment categories to be offered under the Plan(s}, as well as the criteria and

ATTACHMENT A
138
standards for selecting and monitoring the Investments. The City Will have the ultimate responsibility and authority to establish such policies and objectives and to adopt the Investment policy statement.

3.1.2 Contractor shall select the initial investment options within the Plan(s) consistent with the Investment Policy statement.

3.1.3 Contractor shall periodically review the Investments within the Plan(s) and shall be responsible for making additions/deletions thereto.

3.1.4 Contractor shall provide periodic Investment advisory reports that document consistency of fund management and performance to the guidelines set forth in the IPS, and to make recommendations to maintain, or remove and replace Investment options. Reports to Include: Market Overview, In-Depth Portfolio Summary, Plan Asset Allocation Analysis and Fund Performance Comparison to the Index.

3.1 ,5 Contractor shall meet with City on a periodic basis to discuss reports and recommendations.

3.1.6 Contractor shall annually review the IPS With the City to ensure it continues to meet the City’s needs.

3.1.7 Contractor shall select a default Investment for participants who fail to make an investment election.

3.1.8 Contractor shall coordinate the Deferred Compensation quarterly meetings, record the meeting minutes and provide minutes to the attending members.

3.2 Contractor shall perform the following Non-Fiduciary services:

3.2.1 Education Program Strategy – Contractor shall assist in the education of the participants in the Plan(s) about general investing principles and the investment alternatives. This shall include on-site meetings, webinars, and one-on-one consultations.

3.2.2 Contractor shall distribute Plan(s) level newsletters to the City.

3.2.3 Contractor provide custom communications when needed.

3.2.4 Contractor shall provide Plan(s) design consulting and Plan document review.

ATTACHMENT A
139

3.2.5 Contractor shall assist the City In the transition of previous record- keeper(s) and/or Plan(s) provider(s).

3.2.6 Contractor shall provide vendor management/issue resolution to the City

3.2.7 Contractor shall provide consulting assistance on fiduciary best practices.

3.2.8 Contractor shall provide assistance with mandatory and optional legislative changes. ·

3.2.10 Contractor shall assist the City In their communications with recordkeepers and/or Plan(s) providers.

3.2.11 Contractor shall provide RFP services in accordance with the City's Procurement Policy and Plan(s) fee negotiations on behalf of the City.

3.2.12 Contractor shall perform incumbent vendor audit and fee review.

3.2.13 Contractor shall provide retiree meeting and consultations.

3.2.14 Contractor shall provide contract review support.

4. Major Deliverables

4.1 Investment Policy Statement

4.2 Regular Reporting

4.2.1 Market overview

4.2.2 ln Depth Portfolio Summary

4.2.3 Plan Asset Allocation
.. 4.2.4 Fund Performance Comparison •

4.3 Investment Return Summaries

4.4 Deferred Compensation RFP

4.5 Deferred Compensation Meeting Minutes

4.6 Plan Communications

ATTACHMENT A
140

5. Tasks That Support the Deliverables

5.1 Investment Policy Statement

5.1.1 Contractor shall develop an Investment Policy Statement (IPS). The IPS establishes the Investment policies and objectives for the Plan(s) and shall set forth the asset classes and Investment categories to be offered under the Plan(s), as well as the criteria and standards for selecting and monitoring the Investments. The City will have the ultimate responsibility and authority to establish such policies and objectives and to adopt the Investment policy statement.

5.2 Regular Reporting

5.2.1 Contractor shall document consistency of fund management and performance to the guidelines set forth In the IPS, and to make recommendations to maintain, or remove and replace Investment options.

5.2.2 Contractor shall provide analysis and recommendations based on utilization and performance reports, statistical and financial reports, and Plan specific data.

5.2.3 Contractor shall monitor and analyze experience trends, providing timely alerts on changing patterns, and making appropriate
recommendations.

5.2.4 Contractor shall provide, maintain and update comparison reports of other public and private companies' benefit Plan offerings, and costs, to determine their competitiveness with the City's options.

5.2.5 Contractor shall prepare, provide and present various types of reports as needed, such as cost analysis for benefit changes, and other statistical, financial, forecasting, trend, or experience reports, as well as new products and audits, as requested.

5.2.6 Contractor shall monitor and evaluate performance measures and guarantees for the Plan provider(s).

5.2.7 Contractor shall maintain full and accurate records with respect to all matters and services provided on behalf of the City's Plan(s).

Contractor shall provide City staff and officials all spreadsheets, assumptions and calculations upon completion of any project performed on behalf of the City's Plan(s).

ATTACHMENT A
141

5.3 Investment Return Summaries

5.3.1 Total return - Contractor shall provide a detailed breakdown of beginning market value, contributions and withdrawals, Income, capital gains/losses, and ending market value.

5.3.2 Contractor shall compare returns In each asset category to their benchmarks Including, but not limited to, the following:

6.3.4.1 Cash and cash Equivalents

5.3,4.2 Stable Value/General Account/Fixed Account

5.3.4.3 Bonds

5.3.4.4 Domestic Equity

5.3.4.5 International Equity

5.3.4.6 Global Equity

5.3.4.7 Pre-Set Asset Allocation

5.4 Deferred Compensation RFP

5.4.1 Contractor shall develop an RFP in accordance with the City's Procurement policy for a Deferred Compensation Plan Provider(s) that will identify the record keeping, reporting and investment choices to be provided to City employees.

5.4.2 Contractor shall notify potential Deferred Compensation Plan providers of the RFP posting on Bid Flash.

5.4.3 Contractor shall conduct written analysis of all responses.

5.4.4 Contractor shall assist with the Plan provider Interviews.

5.4.5 Contractor shall assist with service agreement negotiations.

5.4.6 Contractor shall assist with the oversight of any transition and Implementation period.

5.5 Contractor shall coordinate the Deferred Compensation meetings, record the meeting minutes and provide minutes to the attending member.

ATTACHMENT A
142

6. Internal and External Standards and Guidelines

6.1 Excluded Assets

6.1.1 Contractor shall have no responsibility to provide any services related to the following types of assets: employer securities; real estate (except for real estate funds and publicly traded REITs); stock brokerage accounts or mutual fund windows; in- plan guaranteed retirement income annuity products; participant loans; non- publicly traded partnership interests: other non-publicly traded securities (other than collective trusts and similar vehicles): or other hard- to-value securities or assets. Such assess (except for real estate funds, publicly traded REITs, and collective trusts and similar vehicles) shall be referred to collectively as “ Excluded Assets.” The Excluded Assets shall be disregarded in determining the Fees payable to Contractor pursuant to this Agreement. and the Fees shall be calculated only on the remaining assets (the “Included Assets”).

6.2 Fiduciary Status: Limitations on Functions

6.2.1 In performing the Fiduciary Services, Contractor Is acting as a fiduciary of the Plan and as a registered Investment advisor under the Investment Advisers Act of 1940.

6.2.2 In performing the Non-Fiduciary Services, Contractor Is not acting as a fiduciary of the Plan. ·

6.2.3 In performing both Non- Fiduciary Services and Fiduciary Services, Contractor does not act as, nor has Contractor agreed to assume the duties of, a trustee or the Plan Administrator, and Contractor has no discretion or responsibility to interpret the Plan documents, to determine eligibility or participation under the Plan, or to take any other action with respect to the management, administration or any other aspect of the Plan.

6.2.4 Contractor does not provide legal or tax advice.

6.2.5 Investments are subject to various market, political, currency, economic, and business risks, and may not always be profitable. As a result, Contractor does not and cannot guarantee financial results.

6.2.6 Contractor may, by reason of performing services for other clients, from time to time acquire confidential Information. City acknowledges and agrees that Contractor is unable to divulge to the City or any other party, or to act upon, any such confidential Information with respect to the performance of this Agreement.

ATTACHMENT A
143

6.2.7 Contractor Is entitled to rely upon all Information provided to Contractor (whether financial or otherwise) from reputable third parties or by City, City's representatives or third- party service providers to City, the Plan or Contractor without Independent verification. City agrees to promptly notify Contractor In writing of any material change in the financial and other Information provided to Contractor and to promptly provide any such additional information as may be reasonably requested by Contractor.

6.2.8 Contractor shall not be responsible for voting (or recommending how to vote) proxies of any publicly traded securities (Including mutual fund shares) held by the Plan (or Its trust). Responsibility for voting proxies of Investments held by the Plan or Its trust remain with City (or, If applicable, the Plan participants).

6.2.9 City understands that Contractor: (i) may perform other services for other clients, (ii) may charge a different fee for other clients, and (iii) may give advice and take action that Is different for each client even when retirement plans are similar.

6.2.10 Limitations on Fiduciary Services

6.2.10.1 Contractor shall not be responsible or liable for the recommendations of or services rendered by anyone other than Contractor. The ability to perform the above services Is contingent upon the rules, policies, processes, and
responsiveness to requests for information of City, Plan Sponsor, Record Keeper(s), and/or Third- Party
Administrator(s).

6.2.11 Limitations on Non-Fiduciary Services

6.2.11.1 Contractor shall not be responsible or liable for the recommendations of or services rendered by anyone other than Contractor. Contractor and Plan Sponsor will work
together to determine mutually agreed upon for services requiring both parties coordinate and/or attend. The ability to perform the above services is contingent upon the
rules, policies, processes, and responsiveness to
requests for Information of City, Plan Sponsor, Record
Keeper(s), and/or Third-Party Administrator(s).

6.3 Representations of City

6.3.1 City represents and warrants as follows:

ATTACHMENT A
144

6.3.1.1 It Is the responsible plan fiduciary for the control and/or management of the assets of the Plan, and for the
selection and monitoring of service providers for the Plan.

Contractor Is entitled to rely upon this statement until notified In writing to the contrary.

6.4 Representation of Contractor

6.4.1 Contractor represents as follows:

6.4.1.1 Contractor is registered as an investment advisor (“RIA”) under the Investment Advisers Act of 1940.

6.5 Standard of Care

6.5.1 Contractor shall perform the Fiduciary Services described in Section 6 In accordance with the standard of care of the prudent man rule set forth In the Investment Adviser Act of 1940.

6.5.2 Contractor shall perform the Non-Fiduciary Services described In Section 6 using reasonable business judgment and shall not be liable for any liabilities and claims arising thereunder, unless directly arising from Contractor's intentional misconduct or gross negligence.

6.6 Effect

6.6.1 This Agreement shall be binding upon and shall inure to the benefit of the Parties and their respective heirs, successors, survivors, administrators and assigns.

6.7 Waiver of Limitation

6.7.1 Nothing in this Agreement shall in any way constitute a waiver or limitation of any rights which City or Plan or any other party may have under federal or state securities law.

7. Criteria of Acceptance for Deliverables

7.1 Contractor shall email an electronic copy of each deliverable to [email protected]. Contractor shall make hard copies of each deliverable available to the City upon request.

8. Notices
Pursuant to Exhibit C - General Terms and Conditions, Paragraph 15 - Notices, the mailing address for all required notices is as follows:

ATTACHMENT A
145
Con
tractor: Global Retirement Partners d/b/a Shuster Advisory Group, a HUB International Company
Attn: Mark A. Shuster
155 N. Lake Ave, Suite 950
Pasadena, CA 91101
City
: City of Stockton
Attn: City Manager
501 W. Weber Ave, Building 1, 5th Floor
Stockton, CA 95203

9. Option to Renew
The term of the Agreement Is for three (3) years. The term of the Agreement may be extended up to two (2) additional one (1) one-year terms by a written amendment executed by both parties.

ATTACHMENT A
146

ATTACHMENT A
147
REV 2026-03-31
Exhibi
t B:

Insurance Requirements for Professional Services
(Consultant)
Consu
ltant shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder by the Consultant, its agents, representatives, or employees.

MINIMUM

SCOPE AND LIMIT OF INSURANCE
Cover
age shall be at least as broad as:

1. Comm
ercial 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. Autom
obile Liability: Insurance Services Office Form Number CA 0001 covering, Code 1 (any auto), or if Consultant has no owned autos, Code 8 (hired) and 9 (non-owned), with limit no less than $1,000,000 per accident for bodily injury and property damage.

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

4. Prof
essional Liability (Errors and Omissions) Insurance appropriates to the Consultant’s profession, with limit no less than $2,000,000 per occurrence or claim, $2,000,000 aggregate.

If
the Consultant 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 Consultant. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City of Stockton.

Other I
nsurance Provisions
The ins
urance policies are to contain, or be endorsed to contain, the following provisions:

ATTACHMENT A
148
REV 2026-03-31
Addit
ional Insured Status
The City of Stockton, its officers, officials, employees, and volunteers are to be covered as additional insureds on the CGL policy with respect to liability arising out of work or operations performed by or on behalf of the Consultant including materials, parts, or equipment furnished in connection with such work or operations. General liability coverage can be provided in the form of an endorsement to the Consultant’s insurance (at least as broad as ISO Form CG 20 10 11 85 or if not available, through the addition of both CG 20 10, CG 20 26, CG 20 33, or CG 20 38; and CG 20 37). 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.

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

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

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

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

The Workers’ Compensation policy shall be endorsed with a waiver of subrogation in favor of the City of Stockton for all work performed by the Consultant, its employees, agents and subcontractors. This provision applies regardless of whether or not an endorsement has been issued.

ATTACHMENT A
149
REV 2026-03-31
Self-I
nsured Retentions
Self-insured retentions must be declared to and approved by the City of Stockton. The City of Stockton may require the Consultant to purchase coverage with a lower retention or provide proof of ability to pay losses and related expenses within the retention. The policy language shall provide, or be endorsed to provide, that the self-insured retention may be satisfied by either the named insured or City of Stockton.

Acceptabi
lity 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.

Claim
s Made Policies (Does Not Apply to Commercial General Liability) If any of the required policies provide claims-made coverage:

1. The Ret
roactive Date must be shown and must be before the date of the contract or the beginning of contract work.

2. Insur
ance 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 cover
age is canceled or non-renewed, and not replaced with another claims- made policy form with a Retroactive Date prior to the contract effective date, the Consultant must purchase “extended reporting” coverage for a minimum of five (5) years after completion of work.

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

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

Durat
ion of Coverage
CGL & Excess liability policies for any construction related work, including, but not limited to, maintenance, service, or repair work, shall continue coverage for a minimum of 5 years for Completed Operations liability coverage. Such Insurance must be maintained and evidence of insurance must be provided for at least five (5) years after completion of the contract of work.

ATTACHMENT A
150
REV 2026-03-31
Special R
isks 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.

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

City of Stockton
Its Officers, Officials, Employees, and Volunteers
501 W Weber Avenue
Building 1, 4th Floor
Stockton, CA 95203

ATTACHMENT A
151

EXHIBIT C

GENERAL TERMS AND CONDITIONS

1. Goods, Equipment, and Services. Subject to the terms and conditions set forth in this Agreement, Contractor shall provide to City the services described in Exhibit A of the Agreement. Contractor shall provide said services at the time, place, and in the manner specified in Exhibit A of the Agreement.

2. City Assistance, Facilities, Equipment, and Clerical Support. Except as set forth in Exhibit A, Contractor shall, at its sole cost and expense, furnish and maintain all facilities and equipment that may be required for furnishing services pursuant to this Agreement. If applicable, City shall furnish to Contractor only the facilities and equipment listed in Exhibit A to the Agreement.

3. Compensation. City shall pay Contractor for services rendered pursuant to this Agreement as described more particularly in Exhibit A and Exhibit E to the Agreement.

3.1 Invoices submitted by Contractor to City must contain a brief description of work performed, time spent, and City reference number. Within thirty (30) days of receipt of Contractor’s invoice, City will review the invoice, and if acceptable, make payment on the approved invoice.

3.2 Upon completion of work and acceptance by the City, Contractor shall have sixty (60) days in which to submit final invoice(s) for payment. An extension may be granted by the City upon receiving a written request thirty (30) days in advance of said time limitation. The City shall have no obligation or liability to pay any invoice for work performed which the Contractor fails or neglects to submit within sixty (60) days, or any extension thereof granted by the City, after the work is accepted by the City.

4. Sufficiency of Contractor’s Work. All Contractor services, work, and deliverables shall be performed in a good and workmanlike manner with due diligence in accordance with the degree of skill normally exercised by similar contractors supplying services and work of a similar nature, and in conformance with applicable laws, codes, and professional standards.

Contractor’s work shall be adequate and sufficient to meet the purposes of this Agreement.

5. Ownership of Work. All reports, work product, all other documents completed or partially completed by Contractor or its approved subcontractors, in performance of this Agreement, and if applicable, drawings, designs, and plan review comments shall become the property of the City. Any and all copyrightable subject matter in all materials is hereby assigned to the City and the Contractor and its approved subcontractors agree to execute any additional documents that may be necessary to evidence such assignment. All materials shall be delivered to the City upon completion or termination of the work under this Agreement. If any materials are lost, damaged, or destroyed before final delivery to the City, the Contractor shall replace them at its own expense. The Contractor and its approved subcontractors shall keep materials confidential. Materials shall not be used for purposes other than the performance of services under this Agreement and shall not be disclosed to anyone not connected with these services, unless the City provides prior written consent.

6. Timeliness. Time is of the essence in this Agreement. Further, Contractor acknowledges that the failure of Contractor to comply with the time limits described in Exhibit A and Exhibit F may result in economic or other losses to the City.
(Rev. 11.7.2025) 1
ATTACHMENT A 152

7. Changes. Both parties to this Agreement understand that it may become desirable or necessary during the term of this Agreement for City to modify the scope of services provided for under this Agreement. Any material extension or change in the scope of work shall be discussed with the City and the change and cost shall be memorialized in a written amendment to the original contract prior to the performance of the additional work. Until the amendment is so executed, the City will not be responsible for paying any charges Contractor may incur in performing such additional services, and Contractor shall not be required to perform any such additional services.

8. Amendment. No variation of the terms of this Agreement shall be valid unless an amendment is made in writing and signed by both parties.

9. Contractor’s Status.

9.1 In performing the obligations set forth in this Agreement, Contractor shall have the status of an independent contractor and Contractor shall not be considered to be an employee of the City for any purpose. All persons working for or under the direction of Contractor are its agents and employees and are not agents or employees of the City. Contractor, by virtue of this Agreement, has no authority to bind or incur any obligation on behalf of the City. Except as expressly provided in Exhibit A, Contractor has no authority or responsibility to exercise any rights or power vested in the City. No agent, officer, or employee of the City is to be considered an employee of the Contractor. It is understood by both Contractor and City that this Agreement shall not be construed or considered under any circumstances to create an employer-employee relationship or a joint venture.

9.2 Contractor shall determine the method, details, and means of performing the work and services to be provided by Contractor under this Agreement. Contractor shall be responsible to the City only for the requirements and results specified in this Agreement and, except as expressly provided in this Agreement, shall not be subjected to the City's control with respect to the physical action or activities of Contractor in fulfillment of this Agreement. Contractor has control over the manner and means of performing the services under this Agreement. If necessary, Contractor has the responsibility for employing other persons or firms to assist Contractor in fulfilling the terms and obligations under this Agreement.

9.3 If in the performance of this Agreement any third persons are employed by Contractor, such persons shall be entirely and exclusively under the direction, supervision, and control of Contractor. All terms of employment, including hours, wages, working conditions, discipline, hiring and discharging, or any other term of employment or requirements of law, shall be determined by the Contractor.

9.4 It is further understood and agreed that Contractor must issue W-2 forms or other forms as required by law for income and employment tax purposes for all of Contractor's assigned personnel under the terms and conditions of this Agreement.

10. Subcontractor.

10.1 Subcontractors shall not be recognized as having any direct or contractual relationship with the City. Contractor shall be responsible for the work of subcontractors, which shall be subject to the provisions of this Agreement. Subcontractors will be provided with a copy of the Agreement and will be bound by its terms. Contractor is responsible to the City for the acts and omissions of its subcontractors and persons directly or indirectly employed by them.

10.2 If
in the performance of this Agreement any third persons are employed by (Rev. 11.7.2025) 2
ATTACHMENT A 153
Contractor, such persons shall be entirely and exclusively under the direction, supervision and control of Contractor. All terms of employment, including hours, wages, working conditions, discipline, hiring, and discharging or any other term of employment or requirement of law, shall be determined by Contractor.

10.3 It is further understood and agreed that all Subcontractors must issue W-2 forms or other forms as required by law for income and employment tax purposes for all of the Subcontractors’ personnel.

11. Termination.

11.1 Termination for Convenience of City. The City may terminate this Agreement at any time by mailing a notice in writing to Contractor. The Agreement shall then be deemed terminated, and no further work shall be performed by Contractor. If the Agreement is so terminated, the Contractor shall be paid for the work actually completed at the time the notice of termination is received.

11.2 Should either party default in the performance of this Agreement or materially breach any of its provisions, the other party, at that party’s option, may terminate this Agreement by giving written notification to the other party.

11.3 Funding- Non-Appropriation. It is mutually understood between the Parties that payment to the Contractor for performance shall be dependent upon the availability of appropriations by the City Council for the purposes of this Agreement. No legal liability on the part of the City for any payment may arise under this Agreement until funds are made available and until the Contractor has received funding availability, which will be confirmed in writing. If funding for any fiscal year is reduced or deleted, or if the City loses funding for any reason, the City, in its sole discretion, shall have the option to either (a) cause this Agreement to be canceled or terminated pursuant to applicable provisions of the Agreement; or (b) offer to amend the Agreement to reflect the reduced funding for this Agreement.

12. Non-Assignability. The Contractor shall not assign, sublet, or transfer this Agreement or any interest or obligation in the Agreement without the prior written consent of the City, and then only upon such terms and conditions as City may set forth in writing. Contractor shall be solely responsible for reimbursing subcontractors.

13. Indemnity and Hold Harmless. To the fullest extent permitted by law, Contractor shall hold harmless, defend and indemnify City of Stockton and its officers, officials, employees and volunteers from and against any and all liability, loss, damage, expense, costs (including without limitation costs, attorney fees, and fees of litigation) of every nature arising out of or in connection with Contractor’s performance of work hereunder or its failure to comply with any of its obligations contained in this agreement, except such loss or damage which was caused by the sole negligence or willful misconduct of the City of Stockton. This obligation is independent of, and shall not in any way be limited by, the minimum insurance obligations contained in this agreement. These obligations
shall survive the completion or termination of this agreement.

14. Insurance. During the term of this Agreement, Contractor shall maintain in full force and effect at its own cost and expense the insurance coverage as set forth in the attached Exhibit B to this Agreement and shall otherwise comply with the other provisions of Exhibit B to this Agreement.

15. Notices. All notices required herein shall be in writing and shall be sent by certified or (Rev. 11.7.2025) 3
ATTACHMENT A 154
registered mail, postage prepaid, addressed in Exhibit A to this Agreement.

16. Conformance to Applicable Laws . Contractor shall comply with all applicable Federal, State, and Municipal laws, rules, and ordinances. Contractor shall not discriminate in the employment of persons or in the provision of services under this Agreement on the basis of any legally protected classification, including race, color, national origin, ancestry, sex, or religion of such person.

17. Licenses, Certifications, and Permits. Prior to the City’s execution of this Agreement and prior to the Contractor’s engaging in any operation or activity set forth in this Agreement, Contractor shall obtain a City of Stockton business license, which must be kept in effect during the term of this Agreement. Contractor covenants that it has obtained all certificates, licenses, permits, and the like required to perform the services under this Agreement. Such licenses, certificates, and permits shall be maintained in full force and effect during the term of this Agreement.

18. Records and Audits. Contractor shall maintain all records regarding this Agreement and the services performed for a period of three (3) years from the date that final payment is made.

At any time during normal business hours, the records shall be made available to the City to inspect and audit. To the extent Contractor renders services on a time and materials basis, Contractor shall maintain complete and accurate accounting records, in a form prescribed by City or, if not prescribed by City, in accordance with generally accepted accounting principles, such records to include, but not be limited to, payroll records, attendance cards, time sheets, and job summaries.

19. Confidentiality. Contractor shall exercise reasonable precautions to prevent the unauthorized disclosure and use of City reports, information, or conclusions.

20. Conflicts of Interest. Contractor covenants that, other than this Agreement, Contractor has no financial interest with any official, employee, or other representative of the City. Contractor and its principals do not have any financial interest in real property, sources of income, or investments that would be affected in any manner of degree by the performance of Contractor’s services under this Agreement. If such an interest arises, Contractor shall immediately notify the City.

Pursuant to Government Code 1090, California Assembly Bill 334: Contractor or Consultants duties and services under this agreement shall not include preparing or assisting the public entity with any portion of the public entity’s preparation of a request for proposals, request for qualifications, or any other solicitation regarding a subsequent or additional contract with the public entity. The public entity entering this agreement shall at all times retain responsibility for public contracting, including with respect to any subsequent phase of this project.

Contractor or Consultants participation in the planning, discussions, or drawing of project plans or specifications shall be limited to conceptual, preliminary, or initial plans or specifications. Contractor/consultant shall cooperate with the public entity to ensure that all bidders for a subsequent contract on any subsequent phase of this project have access to the same information, including all conceptual, preliminary, or initial plans or specifications prepared by the contractor pursuant to this agreement.

21. Waiver. In the event either City or Contractor at any time waives any breach of this Agreement by the other, such waiver shall not constitute a waiver of any other or succeeding breach of this Agreement, whether of the same or of any other covenant, condition or obligation. No payment, partial payment, acceptance, or partial acceptance by City shall operate as a waiver on the part of City of any of its rights under this Agreement. (Rev. 11.7.2025) 4
ATTACHMENT A 155

22. Governing Law. California law shall govern any legal action pursuant to this Agreement, with venue for all claims in the Superior Court of the County of San Joaquin, Stockton Branch, or where applicable, in the Federal District Court of California, Eastern District, Sacramento Division.

23. No Personal Liability. No official or employee of City shall be personally liable to Contractor in the event of any default or breach by the City or for any amount due Contractor.

24. Severability. If any portion of this Agreement or application thereof to any person or circumstance shall be declared invalid by a court of competent jurisdiction or if it is found in contravention of any federal, state or city statue, ordinance or regulation the remaining provisions of this Agreement or the application thereof shall not be invalidated thereby and shall remain in full force and effect to the extent that the provisions of this Agreement are severable.

25. Non-Discrimination. During the performance of this Agreement, Contractor and its officers, employees, agents, representatives or subcontractors shall not unlawfully discriminate in violation of any federal, state, or local law, rule or regulation against any employee, applicant for employment or person receiving services under this Agreement because of race, religion, color, national origin, ancestry, physical or mental disability, medical condition (including genetic characteristics), marital status, age, political affiliation, gender identity, gender expression, sex or sexual orientation, family and medical care leave, pregnancy leave, or disability leave. Contractor and its officers, employees, agents, representative or subcontractors shall comply with all applicable Federal, State and local laws and regulations related to non-discrimination and equal opportunity, including without limitation the City’s nondiscrimination policy; the Fair Employment and Housing Act (Government Code sections 12990 (et seq.); California Labor Code sections 1101, 1102 and 1102.1; the Federal Civil Rights Act of 1964 (P.L. 88-352), as amended; and all applicable regulations promulgated in the California Code of Regulation or Code of Federal Regulations. Title VI of the Civil Rights Act of 1964 requires that “no person in the United States shall, on the grounds of race, color, or national origin, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity receiving federal financial assistance.”(42USCSection2000d). http://www.dol.gov/oasam/regs/statutes/titlevi.htm. The City requires compliance with the requirements of Title VI in all of its programs and activities, regardless of funding source.

26. Force Majeure. Neither party shall be responsible for delays or failures in performance resulting from acts of God, acts of civil or military authority, terrorism, fire, flood, strikes, war, epidemics, pandemics, shortage of power, or other acts or causes reasonably beyond the control of that party. The party experiencing the force majeure event agrees to give the other party notice promptly following the occurrence of a force majeure event, and to use diligent efforts to re-commence performance as promptly as commercially practicable.

27. Taxes and Charges. Contractor shall be responsible for payment of all taxes, fees, contributions, or charges applicable to the conduct of the Contractor’s business.

28. Cumulative Rights. Any specific right or remedy provided in this Agreement will not be exclusive but will be cumulative of all other rights and remedies to which may be legally entitled.

29. Advice of Attorney. Each party warrants and represents that in executing this Agreement, it has received independent legal advice from its attorneys or the opportunity to seek such advice.
(Rev. 11.7.2025) 5
ATTACHMENT A 156

30. Dispute Resolution; Attorney Fees. Any dispute arising out of or relating to the terms and provisions of this Agreement shall be addressed in good faith by the parties. If a dispute cannot be resolved through informal negotiations, either party may pursue all remedies available under applicable law.

In the event of any dispute between the parties concerning the terms and provisions of this Agreement, the party prevailing in such dispute shall be entitled to collect from the other party all costs incurred, including reasonable attorneys’ fees.

31. Heading Not Controlling. Headings used in this Agreement are for reference purposes only and shall not be considered in construing this Agreement.

32. Entire Agreement, Integration, and Modification.

31.1 This Agreement represents the entire integrated agreement between Contractor and the City; it supersedes all prior negotiations, representations, or agreements, either written or oral, between the parties, and may be amended only by a written Amendment signed by the Contractor and City Manager.

31.2 All Exhibits to this Agreement and this Agreement are intended to be construed as a single document.

33. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original. All counterparts shall be construed together and shall constitute one agreement.

34. Authority. The individual(s) executing this Agreement represent and warrant that they have the legal capacity and authority to do so on behalf of their respective legal entities. (Rev
. 11.7.2025) 6
ATTACHMENT A 157

EXHIBIT D

PROFESSIONAL SERVICES SPECIAL TERMS AND CONDITIONS

1. Definitions. The following words and phrases have the following meanings for purposes of this Agreement:

1.1 "Services" means, collectively, the services, duties, and responsibilities described in Exhibit A of this Agreement and any and all work necessary to complete them or carry them out fully and to the standard of performance required in this Agreement.

1.2 “Deliverable” means quantifiable goods or services that will be provided upon completion of a project. A deliverable is any tangible material, work, or thing delivered by one party to the other, including associated technical documentation. A deliverable can be a tangible or intangible part of the development process, and often are a specified function or characteristic of the project.

2. General. The following terms and conditions are applicable for the Professional Services only.

The special conditions shall be read in conjunction with the Standard Agreement, General Terms and Conditions (“GTC”) Exhibit C, and all other Exhibits identified in the Standard Agreement.

2.1 Where any portion of the GTC is in conflict to or at variance with any provisions of the Special Conditions of the Agreement, then unless a different intention stated, the provision(s) of the Special Conditions of the Agreement shall be deemed to override the provision(s) of GTC only to the extent that such conflict or variations in the Special Conditions of the Agreement are not possible of being reconciled with the provisions of the GTC.

2.2 In the case of modification of a part or provision of the GTC, the unaltered part or provision, or both, shall remain in effect. The Special Conditions shall relate to a particular project and be peculiar to that project, but shall not weaken the character or intent of the GTC.

3. Time
for Performance.

3.1 Contractor shall perform the services according to the schedule contained in Exhibit F.

3.2 Timeliness of Performance
i) Contractor shall provide the Services, and Deliverables within the term and within the time limits required under this Agreement, pursuant to the provisions of Exhibit A and Exhibit F.
ii) Neither Contractor nor Contractor’s agents, employees, nor subcontractors are entitled to any damages from the City, nor is any party entitled to be reimbursed by the City, for damages, charges or other losses or expenses incurred by Contractor by reason of delays or hindrances in the performance of the Services, whether or not caused by the City.

4. Standard of Performance
In addition to Exhibit C, Section 4 and 17, Contractor agrees as follows:
1 (Rev. 11.7.25)

ATTACHMENT A
158

4.1 Contractor’s Services shall be performed in accordance with generally accepted professional practices and principles and in a manner consistent with the level of care and skill ordinarily exercised by members of Contractor’s profession currently practicing under similar conditions. The Contractor shall comply with the profession’s standard of performance, applicable laws, regulations, and industry standards. By delivery of completed work, Contractor certifies that the work conforms to the requirements of this Agreement and all applicable federal, state, and local laws. If Contractor is retained to perform services requiring a license, certification, registration, or other similar requirement under California law, Contractor shall maintain that license, certification, registration, or other similar requirement throughout the term of this Agreement.

4.2 Contractor acknowledges that it is entrusted with or has access to valuable and confidential information and records of the City and with respect to that information, Contractor agrees to be held to the standard of care of a fiduciary. Contractor shall ensure that all services that require the exercise of professional skills or judgment are accomplished by professionals qualified and competent in the applicable discipline and appropriately licensed, if required by law. Contractor must provide copies of any such licenses. Contractor remains responsible for the professional and technical accuracy of all Services or Deliverables furnished, whether by Contractor or its subcontractors or others on its behalf. All Deliverables must be prepared in a form and content satisfactory to the Using Agency and delivered in a timely manner consistent with the requirements of this Agreement.

4.3 If Contractor fails to comply with the foregoing standards, Contractor must perform again, at its own expense, all Services required to be re-performed as a direct or indirect result of that failure. Any review, approval, acceptance or payment for any of the Services by the City does not relieve Contractor of its responsibility for the professional skill and care and technical accuracy of its Services and Deliverables. This provision in no way limits the City’s rights against Contractor either under this Agreement, at law or in equity.

5. Compensation

5.1 In addition to Section 3 Compensation in Exhibit C – GTC, the Contractor shall be compensated for the services provided under this Agreement as follows:

Contractor shall be compensated for services rendered and accepted under this Agreement and shall be paid monthly, in arrears on a not to exceed basis, based upon the rates set forth in Exhibit E attached hereto and made a part of this Agreement. Contractor may vary the compensation for each task in Exhibit E, provided that the total project compensation listed in Exhibit E and the Standard Agreement is not exceeded.

6. Per
sonnel

6.1 None of the work or services covered by this Agreement shall be subcontracted without the prior written approval of the City. Any work or services subcontracted hereunder shall be specified by written agreement and shall be subject to each provision of this Agreement.

Contractor shall provide the subcontractor a copy of this fully executed Agreement.

6.2 Contractor agrees to assign only competent personnel according to the reasonable and customary standards of training and experience in the relevant field to perform services under this Agreement. Failure to assign such competent personnel shall constitute grounds for termination of this Agreement. The payment made to Contractor pursuant to this Agreement shall be the full and complete compensation to which Contractor and Contractor’s officers, employees, agents, and subcontractors are entitled for performance 2 (
Rev. 11.7.25)

ATTACHMENT A
159
of any work under this Agreement. Neither Contractor nor Contractor’s officers or employees are entitled to any salary or wages, or retirement, health, leave or other fringe benefits applicable to employees of the City. The City will not make any federal or state tax withholdings on behalf of the Contractor. The City shall not be required to pay any workers' compensation insurance on behalf of the Contractor. Contractor shall pay, when and as due, any and all taxes incurred as a result of Contractor’s compensation hereunder, including estimated taxes, and shall provide City with proof of such payments upon request.

6.3 Key Personnel: Because of the special skills required to satisfy the requirements of this Agreement, Contractor shall not reassign or replace key personnel without the written consent of the City, which consent the City will not unreasonably withhold. "Key Personnel" means those job titles and the persons assigned to those positions in accordance with the provisions of this Agreement. The City may at any time in writing notify Contractor that the City will no longer accept performance of Services under this Agreement by one or more Key Personnel listed. Upon that notice, Contractor shall immediately suspend the services of the key person or persons and must replace him or them in accordance with the terms of this Agreement. A list of key personnel is found in Exhibit A, Scope of Services.

7. Reports and Information
Contractor shall at such times and in such forms as the City may require furnish the City such periodic reports as it may request pertaining to the work or services undertaken pursuant to this Agreement, the costs and obligations incurred or to be incurred in connection therewith, and any other matters are covered by this Agreement as specified in Exhibit A and Exhibit E.

8. Findings Confidential
All of
the reports, information, data, et cetera, prepared or assembled by the Contractor under this Agreement are confidential and the Contractor agrees that they shall not be made available to any individual or organization without the prior written approval of the City.

Contractor shall not be required under the provisions of this paragraph to keep confidential any data or information which is or becomes publicly available, is required by applicable law or by proper legal or governmental authority, is already rightfully in the Contractor’s possession without obligation of confidentiality, is independently developed by Contractor outside the scope of this Agreement or is rightfully obtained from third parties. Contractor shall give City prompt notice of any such legal or governmental demand and reasonably cooperate with City in any effort to seek a protective order or otherwise to contest such required disclosure.

9. Copyright
No materi
als, including but not limited to reports, maps, or documents produced as a result of this Agreement, in whole or in part, shall be available to Contractor for copyright purposes.

Any such materials produced as a result of this Agreement that might be subject to copyright shall be the property of the City and all such rights shall belong to the City, and the City shall be the sole and exclusive entity who may exercise such rights.

10. Deliverables
Contrac
tor shall prepare or provide to the City various Deliverables. "Deliverables" include work product, such as written reviews, recommendations, reports, and analyses, produced by 3 (Rev. 11.7.25)

ATTACHMENT A
160
Contractor for the City. The City may reject Deliverables that do not include relevant information or data, or do not include all documents or other materials specified in this Agreement or reasonably necessary for the purpose for which the City made this Agreement or for which the City intends to use the Deliverables. If the City determines that Contractor has failed to comply with the foregoing standards, it has 30 days from the discovery to notify Contractor of its failure. If Contractor does not correct the failure, or if it is possible to do so, within 30 days after receipt of notice from the City specifying the failure, then the City, by written notice, may treat the failure as a default of this Agreement. Partial or incomplete Deliverables may be accepted for review only when required for a specific and well -defined purpose and when consented to in advance by the City. Such Deliverables will not be considered as satisfying the requirements of this Agreement and partial or incomplete Deliverables in no way relieve Contractor of its commitments under this Agreement.

11. Applicable Laws
Deli
verables 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.

Per Executive Order N -6-22, all contractors and grantees that have agreements valued at $5 million or more with agencies/departments subject to the California Governor’s authority are directed to report to their contracting or grantor agency or department regarding their compliance with economic sanctions imposed by the U.S. government in response to Russia’s actions in Ukraine, as well as sanctions imposed under state law, if any. 4 (Rev. 11.7.25)

ATTACHMENT A
161

EXHIBIT E

COMPENSATION SCHEDULE
The Cont
ractor shall be compensated for the services identified in Exhibit A, Exhibit C, and Exhibit D to this Agreement as follows:

1. Proj
ect Price

1.1 The m
aximum the Contractor shall be paid on this Agreement is $48,000.00 per year (hereafter the “not to exceed” amount). The “not to exceed” amount includes all payments to be made pursuant to this Agreement, including City approved reimbursable expenses, if any. Nothing in this Agreement requires the City to pay for work that does not meet the Standard of Performance identified in Exhibit D section 4 or other requirements of this Agreement.

1.2 St
andard Reimbursable Items : Only the reimbursable items identified in Exhibit A, C, and D (Compensation), shall be compensated to the Contractor.

Reimbursable expenses will be reimbursed without markup. Fees plus reimbursable expenses shall not exceed the amount set forth in section 1.1 of this Exhibit and a copy of the original invoice for the items listed in i, ii or iii below shall be attached to the invoice submitted to the City for reimbursement. Payments shall be based upon work documents submitted by the Contractor to the City and accepted by the City as being satisfactory to City’s needs. The City shall not pay a markup on any of the items listed in i, ii or iii.

Additionally, items such a telephone, fax, postage or freight are already included in the billable hourly rate. Contractor shall be reimbursed the direct expenses, which are the actual cost of the following items that are reasonable, necessary and actually incurred, by the Contractor in connection with the services:
i. Expens
es, fees or charges for printing, reproduction or binding of documents at actual costs with no markup added to the actual cost. ii. Any filing fees, permit fees, or other fees paid or advanced by the Contractor at actual costs with no markup added to the actual cost. iii. Trav
el expenses shall be reimbursed in accordance with the City’s travel policy, which is incorporated herein by reference.

Reimbursement shall be made at actual costs with no markup added to the actual cost.

1.3 The C
ontractor shall be entitled to receive payments for its work performed pursuant to the Agreement. The City will pay Contractor based on invoices for acceptable work performed and approved until the “not to exceed” amount is reached.

Thereafter, Contractor must complete services based on the Agreement without additional compensation unless there is a material change to the Statement of Work and Scope by a written Amendment.
1 (Rev. 10.30.18)

ATTACHMENT A
162

1.4 If work is completed before the “not to exceed” amount is reached, the Contractor’s compensation will be based on the Contractor’s invoices previously submitted for acceptable work performed and approved.

1.5 Subc
ontractor Costs: Compensation for subcontractors shall be limited to the same restrictions imposed on the Contractor. Maximum markup Contractor may apply to subcontractor fees, minus reimbursable expenses, shall not exceed 10%.

2. Task Price. Below is the price for the services and reimbursable expenses as described in Exhibit A of this Agreement.

Task Description Task Price
1 Deferred Compensation Consulting $48,000.00
TOTAL PRICE $48,000.00

3. Hourl
y Rates. The following is a list of hourly billable rates that Contractor shall apply for additional services requested of the Contractor. Contractor shall be compensated based on the hourly rates set forth below, on a time and material basis for those services that are within the general scope of services of this Agreement, but beyond the description of services required under Exhibit A, and all services are reasonably necessary to complete the standards of performance required by this Agreement. Any changes and related fees shall be mutually agreed upon between the parties by a written amendment to this A
greement.

Hourl
y Billable Rate Schedule
Title Role on Project
Hourly
Billable
Rates
None $
$
$
$
$
$
$

4. Addit
ional Fees. Should an amendment to the Agreement be issued for additional services that require the following items, the unit prices are as follows:

Title Unit Price
None $
2 (Rev. 10.30.18)

ATTACHMENT A
163

5. Invoice to Address. Each invoice submitted shall identify the specific task(s) listed in Exhibit A and this Exhibit, and the completed work product/deliverable for the agreed upon price listed in this Exhibit. Invoices shall be submitted to the below address:

City of Stockton Human Resources Department
501 W. Weber Ave, Building 1, 4th Floor
Stockton, CA 95203
3 (Rev. 10.30.18)

ATTACHMENT A
164

EXHIBIT F

TIMELINE

1. Consu
ltant shall complete the requested services identified in Exhibit A as follows:

1.1 TI

MELINE FOR COMPLETION OF WORK

1.1.1 Regular Reporting Periodically

1.1.2 Investment Return Summaries Periodically

1.1.3 Deferred Compensation RFP Re-issue as appropriate With City direction

1.1.4 Deferred Compensation Meeting Minutes 45 days after meeting

1.1.5 Plan Newsletter Quarterly

ATTACHMENT A
165
City of Stockton
Legislation Text
File #: 26-0810, Version: 1

APPROVE A MOTION AUTHORIZING AGREEMENT WITH ALLIANT INSURANCE SERVICES, INC. FOR BENEFITS CONSULTING SERVICES

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

1. Authorize the City Manager, or designee, to execute a three (3) year agreement with an option to extend for two (2) additional one (1) year terms between the City of Stockton (City) and Alliant Insurance Services, Inc, for benefits consulting services, not to exceed $750,000.00.

2. Approve findings which support and justify an exception to the competitive bidding process pursuant to the Stockton Municipal Code Section 3.68.070(A)(3) where the City held a competitive Request for Proposals.

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

Summary
The City currently contracts with Alliant Insurance Services, Inc. to provide benefit consulting and actuarial services. The agreement with Alliant will expire on January 31, 2027. Pursuant to Stockton Municipal Code (SMC) 3.68.070, the Human Resources Department issued a Request for Proposals (RFP) on June 4, 2026, to solicit proposals for Benefit Consulting Services for the City of Stockton (City) employee benefits program. On July 22, 2026, the RFP Evaluation Committee (Committee) evaluated and scored proposals and unanimously chose Alliant Insurance Services, Inc. (Alliant). If approved, the agreement with Alliant will begin on February 1, 2027, and continue for an initial three years through January 31, 2030, with an option to extend for two additional one-year periods (Attachment A).

Alliant will bill the City for services rendered based on a flat fee as noted in the contract; however, annual fees shall not exceed $150,000 per year or $750,000 for the five-year term for providing comprehensive benefit consulting as required by the City. The billing structure is similar and consistent with the current benefits consultant contract.

It is recommended that Council approve a motion to approve findings pursuant to Stockton Municipal Code (SMC) section 3.68.070 and authorize the City Manager to execute a Professional Services Agreement with Alliant.

City of Stockton Printed on 8/28/2026Page 1 of 3
powered by Legistar™
166
File #: 26-0810, Version: 1

DISCUSSION
Background
The City provides a comprehensive benefits program, including a variety of health and voluntary benefits, to its active employees and their eligible dependents. For medical, the City offers nine fully insured plan options through Kaiser Permanente and Sutter Health Plus. The City also offers two dental plan options through Delta Dental and one vision plan option through Vision Service Plan.

Other City-provided benefits include a Section 125 plan for health care, dependent care expenses, a limited flexible spending account, commuter benefits, life insurance, long-term disability, employee assistance services, and voluntary benefit plans such as supplemental life insurance, short-term disability, accident, critical illness, and hospital indemnity.

In the past several years, the City has seen significant benefit-related changes affecting employees.

It is critical that the City have the assistance of industry experts to help manage insurance vendor relationships, including negotiating premium rates, ensuring continued compliance with legislative requirements such as the Affordable Care Act, and conducting required actuarial services. The City’s benefit consultant is also directly involved in working with staff on designing benefit plans that meet the specific needs of plan participants, helping to improve healthcare delivery, and developing cost containment measures that maintain and reduce program costs, all while providing the best possible level of customer service and competitive benefits to all employees.

Present Situation
Alliant has been the City’s benefits consultant and provider of actuarial services since January 2022.

Alliant’s contract has been extended twice for one (1) year each per original agreement. On May 19, 2026, the City Manager approved and authorized Human Resources staff to conduct the RFP process.

The City issued the RFP for Benefit Consulting Services on June 4, 2026, and received three (3) proposals. The City established a committee to evaluate the submitted proposals and select the best consulting company.

On July 22, 2026, the Committee reviewed and scored the three (3) proposals based on the following criteria:

1. Qualifications

2. Past Performance

3. Industry expertise

4. Customer Support and Service
The Procurement department reviewed and ranked the cost for each proposal and combined scores, ranking Alliant Insurance Services Inc. highest out of the three proposals.

After reviewing and evaluating the three (3) proposals, the Committee selected Alliant to provide benefits consulting services. The Committee unanimously ranked Alliant as its lead choice because of Alliant’s understanding of the City’s needs. The Committee also recognized Alliant’s understanding City of Stockton Printed on 8/28/2026Page 2 of 3
powered by Legistar™
167
File #: 26-0810, Version: 1
of the City’s unique needs through its work with many California public entities, including the California Association of Highway Patrolmen, East Bay Municipal Utility District (EBMUD), the City of Pleasanton, and the City of San Jose.

Alliant has public entity expertise with over 1,000 public entity clients, including many cities, counties, special districts, community college districts, and K-12 public schools. Alliant’s knowledge of the healthcare marketplace, combined with its experience working with clients of similar size, positions it to deliver highly customized, account-level service to the City.

Findings
Pursuant to SMC section 3.68.070(A)(3), Council may approve findings that support an exception to the competitive bidding process. These findings include:

1. Use of RFP is appropriate for this agreement because it relies on the evaluation of professional qualifications, experience, industry expertise, and customer support and service as the basis of the selection.

2. The City needs a specialized insurance broker networks and dedicated risk-modeling expertise that fall outside the City’s current internal scope.

3. Utilizing an insurance broker ensures the City achieves full market access and expert placement.

FINANCIAL SUMMARY
The annual cost for benefit consultant services with Alliant will be $150,000 per year during the five- year contract term, with a total cost not to exceed $750,000. Funding for this contract is budgeted in the HR FY26-27 budget.

Attachment A - Alliant Insurance Services, Inc. Agreement City of Stockton Printed on 8/28/2026Page 3 of 3
powered by Legistar™
168

CITY OF STOCKTON

STANDARD AGREEMENT

1. This Agreement is entered into between the City of Stockton ("City") and I Agreement Number:

Alliant Insurance Services, Inc ("Contractor") to provide lnsuranceConsultingServicesforCitywideBenefits as set forth in Exhibit A to this Agreement.
. The term ofthis-Agreement is as follows, unless amended�inc:JCh1bit A an Exhibit C section 8:

Commences on: 02/01/2027 Terminates on: 01/31/2032

3. The maximum not to exceed amount to be paid to Contractor for the term of this Agreement, including if authorized, reimbursement of expenses, is: $ !750,000.00 I

4. The complete Agreement consists of all the following Agreement documents which by reference are incorporated and made a part of this Agreement. The parties agree to comply with the terms and conditions of this Agreement.
(a) Exhibit A - Statement' of Work
(b) Exhibit B - Insurance
(c) Exhibit C - General Terms & Conditions
(d) Exhibit D - Professional Services Special Terms & Conditions (e) Exhibit E - Compensation Schedule
(f) Exhibit F - Timeline
(g) Exhibit G - Special Funding Terms & Conditions (If applicable check box)YES D IN WITNESS WHEREOF, the authorized parties have executed this Agreement.

CONTRACTOR
Alliant Insurance Services, Inc.

Contractor's Name (if other than an .individual, state whether a corporation, partnership, etc.):

Cfwiiluu? I� �I 175 J,;;o � �
Authorized Signature Date
Christine Kerns, Executive Vice President
Printed Name and Title of Person Signing
18100 Von Karman Ave, 10th Floor, Irvine, CA 92612
Address

CITY OF STOCKTON
Johnny Ford, City Manager
ATTEST:

Katherine Roland, CMC, CPMC, City Clerk
APPROVED AS TO FORM:

Donald A. Larkin, Interim City Attorney
BY:
(Rev. 03.13.26)
1 Date

ATTACHMENT A
169
1 (Rev. 10.30.18)

EXHIBIT A

STATEMENT OF WORK

1. Project Objectives
Subject to the terms and conditions set forth in this Agreement, the Contractor shall provide City the services described in Exhibit A, entitled Statement of Work, attached hereto and by reference made a part thereof. Contractor shall not be compensated for services outside the scope of services as set forth in Exhibit A unless, prior to the commencement of such services: (a) Contractor notifies City and City agrees that such services are outside the scope of services to be performed; (b) Contractor estimates the additional compensation required for the additional services; and (c) City, after notice, approves the additional services and amount of compensation, therefore.

2. Project Scope

2.1 Administrative Services
• Benefit Design Assistance
• Contractor shall provide an initial in-depth review of the City’s existing health insurance programs, assist in the development of long-range plans, financial, operational, and utilization goals.

Contractor shall provide an annual assessment as to whether long- term objectives are being met.
• Contractor shall review and analyze vendor documents, including but not limited to contracts, policies and coverage booklets, provide interpretations and recommendations to improve employee benefits and services, and employee benefit related expenses.
• Contractor shall determine methods of reporting, plan performance for recommending strategies to lower costs and maintain or improve the quality of employee benefits.
• Contractor shall recommend wellness and disease management strategy with a focus on measuring the return on investment of such efforts.
• Contractor shall provide general guidance on trends in benefits offered and eligibility requirements.

2.2 Communications
• Contractor shall provide editorial and compliance review of Open enrollment and other City produced benefit communications

ATTACHMENT A
170
2 (Rev. 10.30.18)
including memos, materials, and presentations for employee meetings and throughout the enrollment process.
• Contractor shall assist in coordinating with vendors as necessary; leverage availability of vendor communication materials and resources to improve employee benefit enrollment and processes. • Contractor shall review vendor’s plan summaries and other materials for benefit accuracy and basic compliance.
• Contractor shall assist in the development and analysis of surveys to acquire employee feedback on the performance of plans.

2.3 Meeting Attendance and General Availability
• Contractor shall participate in conference calls with City staff no less than once per month.
• Contractor shall provide prompt and effective responses to ad hoc requests from City staff for information or analysis.
• Contractor shall assist City staff with technical issues affecting the administration and processing procedures of the benefits programs as they arise, including plan document interpretation and eligibility determination.
• Contractor shall assist in the preparation of a variety of materials required for labor negotiations including, but not limited to, cost estimates for new or upgraded benefit programs, rate calculations, and written material such as analysis, summaries, and
graphs/spreadsheets.

2.4 Legal and Regulatory Compliance Support and Updates • Contractor shall provide advice and interpretation on all local, state, and federal benefit regulations impacting the City health plans, including but not limited to:
- Patient Protection Affordable Care Act (PPACA)
- Family and Medical Leave Act (FMLA)
- California Family Rights Act (CFRA)
- Consolidated Omnibus Budget Reconciliation Act (COBRA) - Health Insurance Portability and Accountability Act (HIPPA) - Americans with Disabilities Act (ADA)
- Fair Employment and Housing Act (FEHA)
- Uniformed Services Employment Reemployment Rights Act (USERRA)
• Contractor shall notify the City of necessary steps towards compliance with new and changing legislation impacting City health plans

ATTACHMENT A
171
3 (Rev. 10.30.18)
• Contractor shall review plan documents and internal City policies to ensure compliance with appropriate laws and regulations and to ensure that the City is adhering to industry best practices.

Contractor shall make recommendations regarding necessary amendments to plan documents or internal policies and assist in their preparation.
• On an annual basis, the Contractor shall audit the City’s current health insurance administration practices (including, but not limited to, forms and communications to participants) to ensure compliance with applicable laws and regulations, as well as applicable plan documents and internal policies. Contractor shall provide recommendations regarding necessary changes to current
practices and compliance.
• Contractor shall assist in an advisory capacity in reviewing and ruling on appeals from members covered by the City’s health plan (includes flex spending accounts).

2.5 Data Analysis and Reporting
• Contractor shall monitor, analyze, and report monthly claim experience, identify trends and changes in large claims monthly activity and other anomalies as it relates to claims and employee benefits.
• Contractor shall monitor, analyze, and report claim utilization data in a format that is clear, concise, and actionable.

2.6 Vendor Relations
• Contractor shall provide Requests for Proposals (RFP) and contract development in accordance with the City’s procurement policies, procedures, and codes.
• Contractor shall develop RFPs and submit them to viable medical (including mental health), dental, vision, and prescription providers. • Contractor shall review and evaluate vendor responses to RFP and present a summary of the results to the City.
• Contractor shall assist in negotiating fee agreements with selected vendors and provide an executive summary report of results of negotiations and final rates/fees.
• Contractor shall facilitate the transition to new vendor(s) as required (if necessary).
• Contractor shall provide sample RFP materials.
• Contractor shall assist with vendor management.
• Contractor shall establish appropriate vendor performance guarantees in collaboration with the City.

ATTACHMENT A
172
4 (Rev. 10.30.18)
• Contractor shall ensure that vendors are compliant with the terms of their agreement with the City and monitor performance guarantees, provide feedback and insight relating to vendor compliance.
• Upon request of City staff or whenever appropriate, the Contractor shall act as a liaison between the City and vendors, including but not limited to, participating in problem resolution and strategic planning.
• Contractor shall conduct annual strategic sessions with the City and its vendors to discuss performance, opportunities, and updates. • Contractor shall attend meetings or conference calls with vendors as requested by the City, but no less than once per quarter. • Contractor shall monitor insurance companies for financial solvency where applicable and as deemed necessary.

2.7 Actuarial, Underwriting and Fiscal Support
• Contractor shall provide actuarial cost projections for various plan feature changes and improvements.
• Contractor shall analyze and recommend plan funding alternatives. • Contractor shall prepare financial projections from alternative benefit designs and/or employee contributions.

2.8 Other Services
• Group insurance policies for medical, dental, and vision and specify what needs to be done.
• Life, disability, accident, critical illness, hospital indemnity. • Benefit Programs
- Section 125 Flexible Spending Program
- Employee Assistance Program
• RFP and bid administration services shall include development of desired contractor specifications, review and presentation of submittals to selection committees, and advertisement on final selection. It is anticipated the following areas will require RFP or bid processes during the anticipated three-year base agreement and two individual option years.
• Actuarial services shall include, but not limited to:
- Prepare on an annual basis an actuary report evaluating health benefit program history and provide rate and reserve recommendations for each fiscal year.
- Present on an annual basis the actuary report and
recommendations to bargaining units in advance of a
presentation to the City Council.

ATTACHMENT A
173
5 (Rev. 10.30.18)
- Present on an annual basis the actuary report and
recommendations to the City Council.
- Develop rates and reserves for annual budget in conjunction with Human Resources and Budget staff.

3. Specifications
N/A

4. Major Deliverables
In addition to the Project Scope in Section 2, the Contractor shall perform the following deliverables:
- Strategic Planning
- Reporting and Benchmarking
- Pre-Renewal Strategy
- Procurement, Analysis, and Negotiations
- Recommendation and Implementation
- Communication and Education
- Compliance and Contract Review
- Program Monitoring and Vendor Management

5. Tasks That Support the Deliverables

5.1 Strategic Planning
• Contractor shall perform a comprehensive review of the existing benefit plans to have a clear understanding of the City’s objectives and thorough knowledge of the current situation. Contractor shall conduct a detailed information gathering process which will include items such as:
- Medical, dental, vision, life, and disability contracts - 2–3-year renewal history for medical, dental, vision, life and disability
- Complete census with demographic information
- Employer contributions for employees
- Claims and utilization data
- Current procedures for COBRA administration
- Active and retiree eligibility
- Current enrollment procedures
• Based on the findings, Contractor shall develop annual goals and objectives to guide us through the annual work plan.

ATTACHMENT A
174
6 (Rev. 10.30.18)

5.2 Reporting and Benchmarking
• Contractor shall develop a report format and frequency that will enable the City to easily monitor the plan’s actual financial results versus expected costs.
• Contractor shall provide the City with customized benchmarking information.

5.3 Pre-Renewal Strategy
• Contractor shall begin the renewal process at least 6 months prior to the effective date with preliminary renewal meeting to gain an understanding of the City’s budget requirements, expected growth and other anticipated needs. The following information will be discussed at the pre-renewal meeting:
- Provide market trends analysis by plan
- Introduce new product innovation
- Review of insurance carrier performance
- Identify areas of cost containment
- Provide renewal estimates
- Provide large claim and experience analysis

5.4 Procurement, Analysis, and Negotiation
• Contractor shall provide analysis and tools to help the City understand alterative plan design and cost reduction options for each line of coverage and how potential changes will affect overall premium and out-of-pocket costs. Analysis and decision-making tolls provided will include:

Renewal evaluation and negotiation:
- Analysis of funding options
- Benefit plan design option
- Financial cost impact modeling
- Alternative cost control approaches
• Contractor will ensure that vendors complete from a service and pricing perspective to leverage the most competitive proposals from the marketplace. Contractor will evaluate many variables in the renewal and marketing process to determine qualified bids and carriers. Examples of variables, other than cost and benefit schedules, that are reviewed in the evaluation of bids and bidders include:

ATTACHMENT A
175
7 (Rev. 10.30.18)
- Network size and disruption analysis
- Reporting capabilities
- Administrative efficiencies
- Eligibility maintenance
- Fee structure
- Prescription formula listing
- Employee educational materials
- Data integration capabilities
- Continuity of care provisions
- Clain adjudication speed and accuracy
• Contractor shall review plan design, funding and purchasing alternatives, provide benchmarking, and submit recommendations for changes in line with the City’s short term and long term goals:
- Seeking to lower cost (or improve value) of premiums spent - Improving the stability of the plans
- Proactively analyzing the existing coverage and developing cost savings recommendations and projections of potential savings
- Improving employee health
- Complying with the ACA
- Reducing administrative burden
- Enhancing employee experience/perception

5.5 Recommendation and Implementation
• Contractor shall provide several additional decision-making tools to assist the City in its evaluation such as carrier interviews, performance guarantees and rate caps. Implementation support will include the following:
- Manage implementation timeline
- Coordinate implementation calls with new and existing carriers as needed
- Completion of implementation paperwork
- Assistance reviewing and completing master application paperwork
- Review of Current and new carrier summaries, SBC, and contracts for comparison purposes
- Establish enrollment mythology
- Provide data to a benefits administration system if applicable - Development of communication materials
- Audit enrollment results

ATTACHMENT A
176
8 (Rev. 10.30.18)
- Assist in all transitional issues (ID cards, access to care, escalated service issues)

5.6 Communication and Education
• Contractor shall provide a year-round approach which includes support with open enrollment, new hires/recruitment, education, videos, and mobile/interactive communications. Contractor shall also provide live and/or online access to educational events specifically designed to provide guidance to City staff.

5.7 Compliance and Contract Review
• Contractor shall provide proactive, efficient, and client-tailored employee benefits compliance support through their in-house Compliance Department.
• Contractor shall act as a liaison between the City and all insurance carriers and third-party vendors. Contractor shall conduct a thorough review of the contracts to ensure that rates, benefits, and provisions match what was agreed upon at renewal.

Their review process is outlined as follows:
- Review and evaluate coverage drafts and summary plan
description for consistency with sold plan design
- Assist with drafting plan documents, including Section 125 plan document
- Prepare or review plan amendments as needed
- Coordinate insurance contracts with the City’s policies and procedures
- Review employee handbook/policies and procedures manual

5.8 Program Monitoring and Vendor Management
▪ Contractor shall provide ongoing support with plan document review, vendor management, claims and eligibility assistance and resolution including benefit advocacy, and legislative updates and compliance.
▪ Contractor shall develop, negotiate, and implement performance standards and guarantees for benefit plan providers.
▪ Contractor shall assist with multi-year strategy, committee and board support, annual work plan, renewal and marketing analysis, negotiation and recommendation, implementation, communication, open enrollment, benchmarking, wellness, program monitoring and vendor management, as well as ongoing administration support.

ATTACHMENT A
177
9 (Rev. 10.30.18)

6. Internal and External Standards and Guidelines
N/A

7. Criteria of Acceptance for Deliverables
Contractor shall email an electronic copy of each deliverable to [email protected]. Contractor shall make hard copies of each deliverable available to the City upon request.

8. Notices
Pursuant to Exhibit C – General Terms and Conditions, Paragraph 15 – Notices, the mailing address for all required notices is as follows:

Contractor: Alliant Insurance Services, Inc. City: City of Stockton Christine Kerns, Executive VP Attn: City Manager
18100 Von Karman Ave, 10th Floor 501 W. Weber Avenue
Irvine, CA 92612 Stockton, CA 95203

9. Key Personnel
N/A

10. Option to Renew.

The term of the Agreement may be extended up to two (2) one (1) year periods by a written amendment executed by both parties. However, the total term of the Agreement including the extended term shall not exceed five (5) years.

ATTACHMENT A
178
REV 2026-03-31
Exhibit B:

Insurance Requirements for Professional Services
(Consultant)
Consultant shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder by the Consultant, its agents, representatives, or employees.

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

1. Commercial General Liability (CGL): Insurance Services Office Form CG 00 01 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: Insurance Services Office Form Number CA 0001 covering, Code 1 (any auto), or if Consultant has no owned autos, Code 8 (hired) and 9 (non-owned), with limit no less than $1,000,000 per accident for bodily injury and property damage.

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

4. Professional Liability (Errors and Omissions) Insurance appropriates to the Consultant’s profession, with limit no less than $2,000,000 per occurrence or claim, $2,000,000 aggregate.

If the Consultant 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 Consultant. 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:

ATTACHMENT A
179
REV 2026-03-31
Additional Insured Status
The City of Stockton, its officers, officials, employees, and volunteers are to be covered as additional insureds on the CGL policy with respect to liability arising out of work or operations performed by or on behalf of the Consultant including materials, parts, or equipment furnished in connection with such work or operations. General liability coverage can be provided in the form of an endorsement to the Consultant’s insurance (at least as broad as ISO Form CG 20 10 11 85 or if not available, through the addition of both CG 20 10, CG 20 26, CG 20 33, or CG 20 38; and CG 20 37). Additional insured Name of Organization shall read “City of Stockton, its officers, officials, employees, and volunteers.” Policy shall cover City of Stockton, its officers, officials, employees, and volunteers for all locations work is done under this contract.

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

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

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

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

The Workers’ Compensation policy shall be endorsed with a waiver of subrogation in favor of the City of Stockton for all work performed by the Consultant, its employees, agents and subcontractors. This provision applies regardless of whether or not an endorsement has been issued.

ATTACHMENT A
180
REV 2026-03-31
Self-Insured Retentions
Self-insured retentions must be declared to and approved by the City of Stockton. The City of Stockton may require the Consultant to purchase coverage with a lower retention or provide proof of ability to pay losses and related expenses within the retention. The policy language shall provide, or be endorsed to provide, that the self-insured retention may be satisfied by either the named insured or City of Stockton.

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

Claims Made Policies (Does Not Apply to Commercial General Liability) If any of the required policies provide claims-made coverage:

1. The Retroactive Date must be shown and must be before the date of the contract or the beginning of contract work.

2. Insurance must be maintained and evidence of insurance must be provided for at least five (5) years after completion of the contract of work.

3. If coverage is canceled or non-renewed, and not replaced with another claims- made policy form with a Retroactive Date prior to the contract effective date, the Consultant must purchase “extended reporting” coverage for a minimum of five (5) years after completion of work.

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

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

Duration of Coverage
CGL & Excess liability policies for any construction related work, including, but not limited to, maintenance, service, or repair work, shall continue coverage for a minimum of 5 years for Completed Operations liability coverage. Such Insurance must be maintained and evidence of insurance must be provided for at least five (5) years after completion of the contract of work.

ATTACHMENT A
181
REV 2026-03-31
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
501 W Weber Avenue
Building 1, 4th Floor
Stockton, CA 95203

ATTACHMENT A
182
(Rev. 11.7.2025) 1

EXHIBIT C

GENERAL TERMS AND CONDITIONS

1. Goods, Equipment , and Services. Subject to the terms and conditions set forth in this Agreement, Contractor shall provide to City the services described in Exhibit A of the Agreement. Contractor shall provide said services at the time, place , and in the manner specified in Exhibit A of the Agreement.

2. City Assistance, Facilities, Equipment, and Clerical Support. Except as set forth in Exhibit A, Contractor shall, at its sole cost and expense, furnish and maintain all facilities and equipment that may be required for furnishing services pursuant to this Agreement. If applicable, City shall furnish to Contractor only the facilities and equipment listed in Exhibit A to the Agreement.

3. Compensation. City shall pay Contractor for services rendered pursuant to this Agreement as described more particularly in Exhibit A and Exhibit E to the Agreement.

3.1 Invoices submitted by Contractor to City must contain a brief description of work performed, time spent, and City reference number. Within thirty (30) days of receipt of Contractor’s invoice, City will review the invoice, and if acceptable , make payment on the approved invoice.

3.2 Upon completion of work and acceptance by the City, Contractor shall have sixty (60) days in which to submit final invoic e(s) for payment. An extension may be granted by the City upon receiving a written request thirty (30) days in advance of said time limitation. The City shall have no obligation or liability to pay any invoice for work performed which the Contractor fails or neglects to submit within sixty (60) days, or any extension thereof granted by the City, after the work is accepted by the City.

4. Sufficiency of Contractor’s Work. All Contractor services, work, and deliverables shall be performed in a good and workmanlike manner with due diligence in accordance with the degree of skill normally exercised by similar contractors supplying services and work of a similar nature, and in conformance with applicable laws, codes, and professional standards.

Contractor’s work shall be adequate and sufficient to meet the purposes of this Agreement.

5. Ownership of Work . All reports, work product, all other documents completed or partially completed by Contractor or its approved subcontractors, in performance of this Agreement, and if applicable, drawings, designs, and plan review comments shall become the property of the City. Any and all copyrightable subject matter in all materials is hereby assigned to the City and the Contractor and its approved subcontractors agree to execute any additional documents that may be necessary to evidence such assignment . All materials shall be delivered to the City upon completion or termination of the work under this Agreement. If any materials are lost, damaged, or destroyed before final delivery to the City, the Contractor shall replace them at its own expense. The Contractor and its approved subcontractors shall keep materials confidential. Materials shall not be used for purposes other than the performance of services under this Agreement and shall not be disclosed to anyone not connected with these services, unless the City provides prior written consent.

6. Timeliness. Time is of the essence in this Agreement. Further, Contractor acknowledges that the failure of Contractor to comply with the time limits described in Exhibit A and Exhibit F may result in economic or other losses to the City.

ATTACHMENT A
183
(Rev. 11.7.2025) 2

7. Changes. Both parties to this Agreement understand that it may become desirable or necessary during the term of this Agreement for City to modify the scope of services provided for under this Agreement. Any material extension or change in the scope of work shall be discussed with the City and the change and cost shall be memorialized in a written amendment to the original contract prior to the performance of the additional work. Until the amendment is so executed, the City will not be responsible for paying any charges Contractor may incur in performing such additional services, and Contractor shall not be required to perform any such additional services.

8. Amendment. No variation of the terms of this Agreement shall be valid unless an amendment is made in writing and signed by both parties.

9. Contractor’s Status.

9.1 In performing the obligations set forth in this Agreement, Contractor shall have the status of an independent contractor and Contractor shall not be considered to be an employee of the City for any purpose. All persons working for or under the direction of Contractor are its agents and employees and are not agents or employees of the City. Contractor, by virtue of this Agreement, has no authority to bind or incur any obligation on behalf of the City. Except as expressly provided in Exhibit A, Contractor has no authority or responsibility to exercise any rights or power vested in the City. No agent, officer , or employee of the City is to be considered an employee of the Contractor. It is understood by both Contractor and City that this Agreement shall not be construed or considered under any circumstances to create an employer-employee relationship or a joint venture.

9.2 Contractor shall determine the method, details, and means of performing the work and services to be provided by Contractor under this Agreement. Contractor shall be responsible to the City only for the requirements and results specified in this Agreement and, except as expressly provided in this Agreement, shall not be subjected to the City's control with respect to the physical action or activities of Contractor in fulfillment of this Agreement. Contractor has control over the manner and means of performing the services under this Agreement. If necessary, Contractor has the responsibility for employing other persons or firms to assist Contractor in fulfilling the terms and obligations under this Agreement.

9.3 If in the performance of this Agreement any third persons are employed by Contractor, such persons shall be entirely and exclusively under the direction, supervision, and control of Contractor. All terms of employment, including hours, wages, working conditions, discipline, hiring and discharging, or any other term of employment or requirements of law, shall be determined by the Contractor.

9.4 It is further understood and agreed that Contractor must issue W-2 forms or other forms as required by law for income and employment tax purposes for all of Contractor's assigned personnel under the terms and conditions of this Agreement.

10. Subcontractor.

10.1 Subcontractors shall not be recognized as having any direct or contractual relationship with the City. Contractor shall be responsible for the work of subcontractors, which shall be subject to the provisions of this Agreement. Subcontractors will be provided with a copy of the Agreement and will be bound by its terms. Contractor is responsible to the City for the acts and omissions of its subcontractors and persons directly or indirectly employed by them.

10.2 If in the performance of this Agreement any third persons are employed by

ATTACHMENT A
184
(Rev. 11.7.2025) 3
Contractor, such persons shall be entirely and exclusively under the direction, supervision and control of Contractor. All terms of employment, including hours, wages, working conditions, discipline, hiring, and discharging or any other term of employment or requirement of law, shall be determined by Contractor.

10.3 It is further understood and agreed that all Subcontractors must issue W-2 forms or other forms as required by law for income and employment tax purposes for all of the Subcontractors’ personnel.

11. Termination.

11.1 Termination for Convenience of City. The City may terminate this Agreement at any time by mailing a notice in writing to Contractor. The Agreement shall then be deemed terminated, and no further work shall be performed by Contractor. If the Agreement is so terminated, the Contractor shall be paid for the work actually completed at the time the notice of termination is received.

11.2 Should either party default in the performance of this Agreement or materially breach any of its provisions, the other party, at that party’s option, may terminate this Agreement by giving written notification to the other party.

11.3 Funding- Non-Appropriation. It is mutually understood between the Parties that payment to the Contractor for performance shall be dependent upon the availability of appropriations by the City Council for the purposes of this Agreement. No legal liability on the part of the City for any payment may arise under this Agreement until funds are made available and until the Contractor has received funding availability, which will be confirmed in writing. If funding for any fiscal year is reduced or del eted, or if the City loses funding for any reason, the City, in its sole discretion, shall have the option to either (a) cause this Agreement to be canceled or terminated pursuant to applicable provisions of the Agreement; or (b) offer to amend the Agreement to reflect the reduced funding for this Agreement.

12. Non-Assignability. The Contractor shall not assign, sublet, or transfer this Agreement or any interest or obligation in the Agreement without the prior written consent of the City, and then only upon such terms and conditions as City may set forth in writing. Contractor shall be solely responsible for reimbursing subcontractors.

13. Indemnity and Hold Harmless. To the fullest extent permitted by law, Contractor shall hold harmless, defend and indemnify City of Stockton and its officers, officials, employees and volunteers from and against any and all liability, loss, damage, expense, costs (including without limitation costs, attorney fees, and fees of litigation) of every nature arising out of or in connection with Contractor’s performance of work hereunder or its failure to comply with any of its obligations contained in this agreement, except such loss or damage which was caused by the sole negligence or willful misconduct of the City of Stockton. This obligation is independent of, and shall not in any way be limited by, the minimum insurance obligations contained in this agreement. These obligations shall survive the completion or termination of this agreement.

14. Insurance. During the term of this Agreement, Contractor shall maintain in full force and effect at its own cost and expense the insurance coverage as set forth in the attached Exhibit B to this Agreement and shall otherwise comply with the other provisions of Exhibit B to this Agreement.

15. Notices. All notices required herein shall be in writing and shall be sent by certified or

ATTACHMENT A
185
(Rev. 11.7.2025) 4
registered mail, postage prepaid, addressed in Exhibit A to this Agreement.

16. Conformance to Applicable Laws . Contractor shall comply with all applicable Federal, State, and Municipal laws, rules, and ordinances. Contractor shall not discriminate in the employment of persons or in the provision of services under this Agreement on the basis of any legally protecte d classification, including race, color, national origin, ancestry, sex , or religion of such person.

17. Licenses, Certifications, and Permits. Prior to the City’s execution of this Agreement and prior to the Contractor’s engaging in any operation or activity set forth in this Agreement, Contractor shall obtain a City of Stockton business license, which must be kept in effect during the term of this Agreement. Contractor covenants that it has obtained all certificates, licenses, permits, and the like required to perform the services under this Agreement. Such licenses, certificates, and permits shall be maintained in full force and effect during the term of this Agreement.

18. Records and Audits. Contractor shall maintain all records regarding this Agreement and the services performed for a period of three (3) years from the date that final payment is made.

At any time during normal business hours, the records shall be made available to the City to inspect and audit. To the extent Contractor renders services on a time and materials basis, Contractor shall maintain complete and accurate accounting records, in a form prescribed by City or, if not prescribed by City, in accordance with generally accepted accounting principles, such records to include, but not be limited to, payroll records, attendance cards, time sheets, and job summaries.

19. Confidentiality. Contractor shall exercise reasonable precautions to prevent the unauthorized disclosure and use of City reports, information, or conclusions.

20. Conflicts of Interest. Contractor covenants that, other than this Agreement, Contractor has no financial interest with any official, employee, or other representative of the City. Contractor and its principals do not have any financial interest in real property, sources of income , or investments that would be affected in any manner of degree by the performance of Contractor’s services under this Agreement. If such an interest arises, Contractor shall immediately notify the City.

Pursuant to Government Code 1090, California Assembly Bill 334: Contractor or Consultants duties and services under this agreement shall not include preparing or assisting the public entity with any portion of the public entity’s preparation of a request for proposals, request for qualifications, or any other solicitation regarding a subsequent or additional contract with the public entity. The public entity entering this agreement shall at all times retain responsibility for public contracting, including with respect to any subsequent phase of this project.

Contractor or Consultants participation in the planning, discussions, or drawing of project plans or specifications shall be limited to conceptual, preliminary, or initial plans or specifications. Contractor/consultant shall cooperate with the public entity to ensure that all bidders for a subsequent contract on any subsequent phase of this project have access to the same information, including all conceptual, preliminary, or initial plans or specifications prepared by the contractor pursuant to this agreement.

21. Waiver. In the event either City or Contractor at any time waives any breach of this Agreement by the other, such waiver shall not constitute a waiver of any other or succeeding breach of this Agreement, whether of the same or of any other covenant, condition or obligation. No payment, partial payment, acceptance, or partial acceptance by City shall operate as a waiver on the part of City of any of its rights under this Agreement.

ATTACHMENT A
186
(Rev. 11.7.2025) 5

22. Governing Law. California law shall govern any legal action pursuant to this Agreement, with venue for all claims in the Superior Court of the County of San Joaquin, Stockton Branch , or where applicable, in the Federal District Court of California, Eastern District, Sacramento Division.

23. No Personal Liability. No official or employee of City shall be personally liable to Contractor in the event of any default or breach by the City or for any amount due Contractor.

24. Severability. If any portion of this Agreement or application thereof to any person or circumstance shall be declared invalid by a court of competent jurisdiction or if it is found in contravention of any federal, state or city statue, ordinance or regulation the remaining provisions of this Agreement or the application thereof shall not be invalidated thereby and shall remain in full force and effect to the extent that the provisions of this Agreement are severable.

25. Non-Discrimination. During the performance of this Agreement, Contractor and its officers, employees, agents, representatives or subcontractors shall not unlawfully discriminate in violation of any federal, state, or local law, rule or regulation against any employee, applicant for employment or person receiving services under this Agreement because of race, religion, color, national origin, ancestry, physical or mental disability, medical condition (including genetic characteristics), marital status, age, political affiliation, gender identity, gender expression, sex or sexual orientation, family and medical care leave, pregnancy leave, or disability leave. Contractor and its officers, employees, agents, representative or subcontractors shall comply with all applicable Federal, State and local laws and regulations related to non -discrimination and equal opportunity, including without limitation the City’s nondiscrimination policy; the Fair Employment and Housing Act (Government Code sections 12990 (et seq.); California Labor Code sections 1101, 1102 and 1102.1; the Federal Civil Rights Act of 1964 (P.L. 88-352), as amended; and all applicable regulations promulgated in the California Code of Regulation or Code of Federal Regulations. Title VI of the Civil Rights Act of 1964 requires that “no person in the United States shall, on the grounds of race, color, or national origin, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity receiving federal financial assistance.”(42USCSection2000d). http://www.dol.gov/oasam/regs/statutes/titlevi.htm. The City requires compliance with the requirements of Title VI in all of its programs and activities, regardless of funding source.

26. Force Majeure . Neither party shall be responsible for delays or failures in performance resulting from acts of God, acts of civil or military authority, terrorism, fire, flood, strikes, war, epidemics, pandemics, shortage of power , or other acts or causes reasonably beyond the control of that party. The party experiencing the force majeure event agrees to give the other party notice promptly following the occurrence of a force majeure event, and to use diligent efforts to re-commence performance as promptly as commercially practicable.

27. Taxes and Charges. Contractor shall be responsible for payment of all taxes, fees, contributions, or charges applicable to the conduct of the Contractor’s business.

28. Cumulative Rights. Any specific right or remedy provided in this Agreement will not be exclusive but will be cumulative of all other rights and remedies to which may be legally entitled.

29. Advice of Attorney. Each party warrants and represents that in executing this Agreement, it has received independent legal advice from its attorneys or the opportunity to seek such advice.

ATTACHMENT A
187
(Rev. 11.7.2025) 6

30. Dispute Resolution; Attorney Fees. Any dispute arising out of or relating to the terms and provisions of this Agreement shall be addressed in good faith by the parties. If a dispute cannot be resolved through informal negotiations, either party may pursue all remedies available under applicable law.

In the event of any dispute between the parties concerning the terms and provisions of this Agreement, the party prevailing in such dispute shall be entitled to collect from the other party all costs incurred, including reasonable attorneys’ fees.

31. Heading Not Controlling. Headings used in this Agreement are for reference purposes only and shall not be considered in construing this Agreement.

32. Entire Agreement, Integration, and Modification.

31.1 This Agreement represents the entire integrated agreement between Contractor and the City; it supersedes all prior negotiations, representations, or agreements, either written or oral, between the parties, and may be amended only by a written Amendment signed by the Contractor and City Manager.

31.2 All Exhibits to this Agreement and this Agreement are intended to be construed as a single document.

33. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original. All counterparts shall be construed together and shall constitute one agreement.

34. Authority. The individual(s) executing this Agreement represent and warrant that they have the legal capacity and authority to do so on behalf of their respective legal entities.

ATTACHMENT A
188
1 (Rev. 11.7.25)

EXHIBIT D

PROFESSIONAL SERVICES SPECIAL TERMS AND CONDITIONS

1. Definitions. The following words and phrases have the following meanings for purposes of this Agreement:

1.1 "Services" means, collectively, the services, duties , and responsibilities described in Exhibit A of this Agreement and any and all work necessary to complete them or carry them out fully and to the standard of performance required in this Agreement.

1.2 “Deliverable” means quantifiable goods or services that will be provided upon completion of a project. A deliverable is any tangible material, work, or thing delivered by one party to the other, including associated technical documentation. A deliverable can be a tangible or intangible part of the development process, and often are a specified function or characteristic of the project.

2. General. The following terms and conditions are applicable for the Professional Services only.

The special conditions shall be read in conjunction with the Standard Agreement, General Terms and Conditions (“GTC”) Exhibit C, and all other Exhibits identified in the Standard Agreement.

2.1 Where any portion of the GTC is in conflict to or at variance with any provisions of the Special Conditions of the Agreement, then unless a different intention stated, the provision(s) of the Special Conditions of the Agreement shall be deemed to override the provision(s) of GTC only to the extent that such conflict or variations in the Special Conditions of the Agreement are not possible of being reconciled with the provisions of the GTC.

2.2 In the case of modification of a part or provision of the GTC, the unaltered part or provision, or both , shall remain in effect. The Special Conditions shall relate to a particular project and be peculiar to that project , but shall not weaken the character or intent of the GTC.

3. Time for Performance.

3.1 Contractor shall perform the services according to the schedule contained in Exhibit F.

3.2 Timeliness of Performance
i) Contractor shall provide the Services, and Deliverables within the term and within the time limits required under this Agreement, pursuant to the provisions of Exhibit A and Exhibit F.
ii) Neither Contractor nor Contractor’s agents, employees, nor subcontractors are entitled to any damages from the City, nor is any party entitled to be reimbursed by the City, for damages, charges or other losses or expenses incurred by Contractor by reason of delays or hindrances in the performance of the Services, whether or not caused by the City.

4. Standard of Performance
In addition to Exhibit C, Section 4 and 17, Contractor agrees as follows:

ATTACHMENT A
189
2 (Rev. 11.7.25)

4.1 Contractor’s Services shall be performed in accordance with generally accepted professional practices and principles and in a manner consistent with the level of care and skill ordinarily exercised by members of Contractor’s profession currently practicing under similar conditions. The Contractor shall comply with the profession’s standard of performance, applicable laws, regulations, and industry standards. By delivery of completed work, Contractor certifies that the work conforms to the requirements of this Agreement and all applicable federal, state , and local laws. If Contractor is retained to perform services requiring a license, certification, registration, or other similar requirement under California law, Contractor shall maintain that license, certification, registration , or other similar requirement throughout the term of this Agreement.

4.2 Contractor acknowledges that it is entrusted with or has access to valuable and confidential information and records of the City and with respect to that information, Contractor agrees to be held to the standard of care of a fiduciary. Contractor shall ensure that all services that require the exercise of professional skills or judgment are accomplished by professionals qualified and competent in the applicable discipline and appropriately licensed, if required by law. Contractor must provide copies of any such licenses. Contractor remains responsible for the professional and technical accuracy of all Services or Deliverables furnished, whether by Contractor or its subcontractors or others on its behalf. All Deliverables must be prepared in a form and content satisfactory to the Using Agency and delivered in a timely manner consistent with the requirements of this Agreement.

4.3 If Contractor fails to comply with the foregoing standards, Contractor must perform again, at its own expense, all Services required to be re-performed as a direct or indirect result of that failure. Any review, approval, acceptance or payment for any of the Services by the City does not relieve Contractor of its responsibility for the professional skill and care and technical accuracy of its Services and Deliverables. This provision in no way limits the City’s rights against Contractor either under this Agreement, at law or in equity.

5. Compensation

5.1 In addition to Section 3 Compensation in Exhibit C – GTC, the Contractor shall be compensated for the services provided under this Agreement as follows:

Contractor shall be compensated for services rendered and accepted under this Agreement and shall be paid monthly, in arrears on a not to exceed basis, based upon the rates set forth in Exhibit E attached hereto and made a part of this Agreement. Contractor may vary the compensation for each task in Exhibit E, provided that the total project compensation listed in Exhibit E and the Standard Agreement is not exceeded.

6. Personnel

6.1 None of the work or services covered by this Agreement shall be subcontracted without the prior written approval of the City. Any work or services subcontracted hereunder shall be specified by written agreement and shall be subject to each provision of this Agreement.

Contractor shall provide the subcontractor a copy of this fully executed Agreement.

6.2 Contractor agrees to assign only competent personnel according to the reasonable and customary standards of training and experience in the relevant field to perform services under this Agreement. Failure to assign such competent personnel shall constitute grounds for termination of this Agreement. The payment made to Contractor pursuant to this Agreement shall be the full and complete compensation to which Contractor and Contractor’s officers, employees, agents, and subcontractors are entitled for performance

ATTACHMENT A
190
3 (Rev. 11.7.25)
of any work under this Agreement. Neither Contractor nor Contractor’s officers or employees are entitled to any salary or wages, or retirement, health, leave or other fringe benefits applicable to employees of the City. The City will not make any federal or state tax withholdings on behalf of the Contractor. The City shall not be required to pay any workers' compensation insurance on behalf of the Contractor. Contractor shall pay, when and as due, any and all taxes incurred as a result of Contractor’s compensation hereunder, including estimated taxes, and shall provide City with proof of such payments upon request.

6.3 Key Personnel: Because of the special skills required to satisfy the requirements of this Agreement, Contractor shall not reassign or replace key personnel without the written consent of the City, which consent the City will not unreasonably withhold. "Key Personnel" means those job titles and the persons assigned to those positions in accordance with the provisions of this Agreement. The City may at any time in writing notify Contractor that the City will no longer accept performance of Services under this Agreement by one or more Key Personnel listed. Upon that notice, Contractor shall immediately suspend the services of the key person or persons and must replace him or them in accordance with the terms of this Agreement. A list of key personnel is found in Exhibit A, Scope of Services.

7. Reports and Information
Contractor shall at such times and in such forms as the City may require furnish the City such periodic reports as it may request pertaining to the work or services undertaken pursuant to this Agreement, the costs and obligations incurred or to be incurred in connection therewith, and any other matters are covered by this Agreement as specified in Exhibit A and Exhibit E.

8. Findings Confidential
All of the reports, information, data, et cetera, prepared or assembled by the Contractor under this Agreement are confidential and the Contractor agrees that they shall not be made available to any individual or organization without the prior written appr oval of the City.

Contractor shall not be required under the provisions of this paragraph to keep confidential any data or information which is or becomes publicly available, is required by applicable law or by proper legal or governmental authority, is al ready rightfully in the Contractor’s possession without obligation of confidentiality, is independently developed by Contractor outside the scope of this Agreement or is rightfully obtained from third parties. Contractor shall give City prompt notice of any such legal or governmental demand and reasonably cooperate with City in any effort to seek a protective order or otherwise to contest such required disclosure.

9. Copyright
No materials, including but not limited to reports, maps, or documents produced as a result of this Agreement, in whole or in part, shall be available to Contractor for copyright purposes.

Any such materials produced as a result of this Agreement that might be subject to copyright shall be the property of the City and all such rights shall belong to the City, and the City shall be the sole and exclusive entity who may exercise such rights.

10. Deliverables
Contractor shall prepare or provide to the City various Deliverables. "Deliverables" include work product, such as written reviews, recommendations, reports, and analyses, produced by

ATTACHMENT A
191
4 (Rev. 11.7.25)
Contractor for the City. The City may reject Deliverables that do not include relevant information or data, or do not include all documents or other materials specified in this Agreement or reasonably necessary for the purpose for which the City made this Agreement or for which the City intends to use the Deliverables. If the City determines that Contractor has failed to comply with the foregoing standards, it has 30 days from the discovery to notify Contractor of its failure. If Contractor does not correct the failure, or if it is possible to do so, within 30 days after receipt of notice from the City specifying the failure, then the City, by written notice, may treat the failure as a default of this Agreement. Partial or incomplete Deliverables may be accepted for review only when required for a specific and well -defined purpose and when consented to in advance by the City. Such Deliverables will not be considered as satisfying the requirements of this Agreement and partial or incomplete Deliverables in no way relieve Contractor of its commitments under this Agreement.

11. Applicable Laws
Deliverables must conform with all applicable federal, state, and local laws. Such conformity includes compliance with federal sanctions, and Contractor certifies that it has not and will not engage in prohibited transactions with sanctioned persons or entities.

Per Executive Order N -6-22, all contractors and grantees that have agreements valued at $5 million or more with agencies/departments subject to the California Governor’s authority are directed to report to their contracting or grantor agency or department regarding their compliance with economic sanctions imposed by the U.S. government in response to Russia’s actions in Ukraine, as well as sanctions imposed under state law, if any.

ATTACHMENT A
192
1 (Rev. 10.30.18)

EXHIBIT E

COMPENSATION SCHEDULE
The Contractor shall be compensated for the services identified in Exhibit A, Exhibit C, and Exhibit D to this Agreement as follows:

1. Project Price

1.1 The maximum the Contractor shall be paid on this Agreement is $750,000.00 (hereafter the “not to exceed” amount). The “not to exceed” amount includes all payments to be made pursuant to this Agreement, including City approved reimbursable expenses, if any. Nothing in this Agreement requires the City to pay for work that does not meet the Standard of Performance identified in Exhibit D section 4 or other requirements of this Agreement.

1.2 Standard Reimbursable Items: Only the reimbursable items identified in Exhibit A , C, and D ( Compensation), shall be compensated to the Contractor.

Reimbursable expenses will be reimbursed without markup. Fees plus reimbursable expenses shall not exceed the amount set forth in section 1.1 of this Exhibit and a copy of the original invoice for the items listed in i, ii or iii below shall be attached to the invoice submitted to the City for reimbursement. Payments shall be based upon work documents submitted by the Contractor to the City and accepted by the City as being satisfactory to City’s needs. The City shall not pay a markup on any of the items listed in i, ii or iii .

Additionally, items such a telephone, fax, postage or freight are already included in the billable hourly rate. Contractor shall be re imbursed the direct expenses, which are the actual cost of the following items that are reasonable, necessary and actually incurred, by the Contractor in connection with the services:
i. Expenses, fees or charges for printing, reproduction or binding of documents at actual costs with no markup added to the actual cost. ii. Any filing fees, permit fees, or other fees paid or advanced by the Contractor at actual costs with no markup added to the actual cost. iii. Travel expenses shall be reimbursed in accordance with the C ity’s travel policy, which is incorporated herein by reference.

Reimbursement shall be made at actual costs with no markup added to the actual cost.

1.3 The Contractor shall be entitled to receive payments for its work performed pursuant to the Agreement. The City will pay Contractor based on invoices for acceptable work performed and approved until the “not to exceed” amount is reached.

Thereafter, Contractor must complete services based on the Agreement without additional compensation unless there is a material change to the Statement of Work and Scope by a written Amendment.

ATTACHMENT A
193
2 (Rev. 10.30.18)

1.4 If work is completed before the “not to exceed” amount is reached, the Contractor’s compensation will be based on the Contractor’s invoices previously submitted for acceptable work performed and approved.

1.5 Subcontractor Costs: Compensation for sub contractors shall be limited to the same restrictions imposed on the Contractor. Maximum markup Contractor may apply to subcontractor fees, minus reimbursable expenses, shall not exceed 10%.

2. Task Price. Below is the price for the services and reimbursable expenses as described in Exhibit A of this Agreement.

Task Description Task Price
1 Insurance Consulting Services $750,000.00
$
$
TOTAL PRICE $750,000.00

3. Hourly Rates. The following is a list of hourly billable rates that Contractor shall apply for additional services requested of the Contractor. Contractor shall be compensated based on the hourly rates set forth below, on a time and material basis for those services that are within the general scope of services of this Agreement, but beyond the description of services required under Exhibit A, and all services are reasonably necessary to complete the standards of performance required by this Agreement. Any changes and related fees shall be mutually agreed upon between the parties by a written amendment to this Agreement.

Hourly Billable Rate Schedule
Title Role on Project
Hourly
Billable
Rates
None $
$
$
$
$
$
$

4. Additional Fees. Should an amendment to the Agreement be issued for additional services that require the following items, the unit prices are as follows:

Title Unit Price
None $

ATTACHMENT A
194
3 (Rev. 10.30.18)

5. Invoice to Address. Each invoice submitted shall identify the specific task(s) listed in Exhibit A and this Exhibit, and the completed work product/deliverable for the agreed upon price listed in this Exhibit. Invoices shall be submitted to the below address:

City of Stockton Human Resources Department
Attention: Benefits
501 W. Weber Avenue, Building 1, 4th Floor
Stockton, CA 95203

ATTACHMENT A
195
1 (Rev, 10.27.22)

EXHIBIT F
TIME
LINE

1. Contra
ctor shall complete the requested services identified in Exhibit A as follows:

1.1 TIMELINE FOR COMPLETION OF WORK

1.1.1 Strategic Planning - TBD

1.1.2 Reporting and Benchmarking -TBD

1.1.3 Pre-Renewal Strategy - TBD

1.1.4 Procurement, Analysis, and Negotiation - TBD

1.1.5 Recommendation and Implementation - TBD

1.1.6 Communication and Education - TBD

1.1.7 Compliance and Contract Review - TBD

1.1.8 Program Monitoring and Vendor Management - TBD

ATTACHMENT A
196
City of Stockton
Legislation Text
File #: 26-0721, Version: 1
APPROVE FINDINGS AND AUTHORIZE THE SOLE SOURCE PURCHASE OF GE ORBIT 900 MHZ RADIOS FROM APPLIED TECHNOLOGY GROUP, INC. FOR THE MUNICIPAL UTILITIES

DEPARTMENT (CITYWIDE)

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

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

2. Authorize the purchase of 110 GE Orbit 900 MHz radios from Applied Technology Group, Inc. of Bakersfield, CA, for $317,000.

3. Authorize the appropriations of Storm, Water, and Wastewater Utility funds in the amount of $317,000 from Fund Balance.

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) operates and maintains a 900 MHz telemetry radio system that supports communication between remote water, sanitary sewer, and stormwater pump stations, and the Supervisory Control and Data Acquisition (SCADA) system located at the Regional Wastewater Control Facility (RWCF). The MUD SCADA system gathers real time data from these remote locations to control equipment, monitor site conditions, and inform operations and maintenance staff of issues.

Modernizing the telemetry radio system is essential because the existing radios are more than 20 years old, increasingly unreliable, and difficult to support due to the limited availability of replacement parts. Updating the system will help ensure continued, stable communication for critical water, wastewater, and stormwater operations.

If approved by the City Council, this action will approve findings of an exception to the competitive bidding process and authorize the purchase of 110 GE Orbit 900 MHz radios from Applied Technology Group, Inc. of Bakersfield, CA, for $317,000.

City of Stockton Printed on 8/28/2026Page 1 of 3
powered by Legistar™
197
File #: 26-0721, Version: 1

DISCUSSION
Background
MUD’s telemetry radio system delivers vital real-time information to the SCADA system operated at the RWCF. It supports data transmission from 10 groundwater well sites, 28 sanitary sewer pump stations and 75 storm water pump stations. The information provided to SCADA informs operations and maintenance staff of pump status, wet well levels, pump run hours, discharge flow rates, and critical alarms such as pump failures, facility intrusions and high-level conditions.

The current telemetry radio system is more than 20 years old and relies on outdated technology that is increasingly difficult to maintain. Federal guidance from the Environmental Protection Agency (EPA), Department of Homeland Security (DHS), and the American Water Works Association (AWWA) encourages water and wastewater utilities to modernize remote telemetry and SCADA communication systems to ensure reliable operations. Updating these radios aligns with federal recommendations and represents a critical step in improving MUD’s overall system reliability.

Present Situation
The current radio network infrastructure has been past its end-of-life for several years, creating significant operational risks. When a radio fails, replacement and repair are increasingly difficult because these older GE units are no longer readily available.

The proposed solution offers a cost-effective approach to improving MUD’s cybersecurity defenses and safeguarding essential services. After a thorough review of modern product options, staff recommend purchasing GE Orbit radios from Applied Technology Group, Inc., of Bakersfield, CA, for $317,000. These new radios are compatible in form, fit, and function with the existing equipment, ensuring a smooth transition while enhancing system resilience.

Applied Technology Group, Inc. is a technology company that offers full-service radio/wireless communications and related services for public safety, commercial industries, education, private enterprise, and government agencies. They specialize in SCADA products and are the only authorized vendor of GE Orbit 900 MHz radios in this region.

Findings
Stockton Municipal Code Section 3.68.070(A)(4) provides an exception to the competitive bidding requirements when the City Council approves findings that support and justify the purchase through a sole source vendor.

Proposed findings to support this purchase are:

1. The purchase of GE Orbit 900 MHz radios is necessary because they are compatible in form, fit, and function with the existing infrastructure, which uses proprietary protocols.

2. Replacing the currently in place end-of-life equipment is essential to maintaining a reliable radio system for monitoring and controlling the water, sanitary sewer, and stormwater systems that provide vital public health services to the Stockton community.

City of Stockton Printed on 8/28/2026Page 2 of 3
powered by Legistar™
198
File #: 26-0721, Version: 1

3. Applied Technology Group, Inc., is the only authorized vendor of GE Orbit 900 MHz radios in this region.

4. Purchasing the GE Orbit 900 MHz radios from Applied Technology Group, Inc. will allow MUD to avoid additional costs associated with replacing auxiliary components, as the new radios use the same cabling, antennas, mounts, power supplies, and related hardware.

FINANCIAL SUMMARY
With this action, $317,000 will be appropriated from MUD Wastewater, Water, and Stormwater Utility Fund Balance for the replacement of the aging radios.

Product Estimated Quantity Unit Cost including 9% Tax Total Cost GE Orbit 110 $2,875.42 $317,000.00
Account Percentage Amount
6511-500-800005-600-000-00-65-000-000 29% $91,930.00
6511-500-800005-610-000-00-65-000-000 52% $164,840.00
6511-500-800005-620-000-00-65-000-000 19% $60,230.00
This action has no impact on the General Fund or any other unrestricted funds.

City of Stockton Printed on 8/28/2026Page 3 of 3
powered by Legistar™
199

Resolution No.

STOCKTON CITY COUNCIL

RESOLUTION APPROVING FINDINGS AND AUTHORIZING A SOLE SOURCE PURCHASE OF GE ORBIT 900 MHZ RADIOS FROM APPLIED TECHNOLOGY GROUP, INC. FOR THE MUNICIPAL UTILITIES DEPARTMENT

The Municipal Utilities Department operates and maintains a 900 MHz telemetry radio system that supports communication between remote water, sanitary sewer, and stormwater pump stations, and the Supervisory Control and Data Acquisition (SCADA) system located at the Regional Wastewater Control Facility; and

The current telemetry radio system is more than 20 years old and lacks the common modern protocols necessary to ensure system security. Modernizing the telemetry radio system is essential to address significant cybersecurity vulnerabilities associated with outdated and unsupported radio hardware , and to align with industry best practices for securing critical water, wastewater and stormwater infrastructure; and

The absence of modern security protocols jeopardizes MUD’s ability to provide vital public health services to the Stockton community; and

Following a comprehensive review of current product offerings, staff recommend the purchase of 110 GE Orbit 900 MHz radios from Applied Technology Group, Inc., of Bakersfield, California, in the amount of $317,000, because the equipment is compatible in form, fit, and function with the existing tel emetry radio system , and Applied Technology Group, Inc. is the only authorized vendor of GE Orbit 900 MHz radios in this region; now, therefore,

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

1. The City Council approves the following findings pursuant to Stockton Municipal Code section 3.68.070 to support and justify an exception to the competitive bidding process:

a. The purchase of GE Orbit 900 MHz radios is necessary because the y are compatible in form, fit and function with the existing infrastructure, which uses proprietary protocols.

b. Replacing the current ly in place end-of-life equipment is essential to maintaining a reliable radio system for monitoring and controlling the water, sanitary sewer, and stormwater systems that provide vital public health services to the Stockton community.

c. Applied Technology Group, Inc., is the only authorized vendor of GE Orbit 900 MHz radios in this region.

200

d. Purchasing the GE Orbit 900 MHz radios from Applied Technology Group, Inc. will allow MUD to avoid additional costs associated with replacing auxiliary components, as the new radios use the same cabling, antennas, mounts, power supplies, and related hardware.

2. The City Council authorizes the sole source purchase of 110 GE Orbit 900 MHz radios from Applied Technology Group, Inc. of Bakersfield, California, in the amount of $317,000.

3. The City Council authorizes the appropriation of $91,930 from the Water Fund Balance, $164,840 from the Wastewater Fund Balance, and $60,230 from the Stormwater Fund Balance. This is a total transfer of $317,000 from the fund balances for the replacement of aging Supervisory Control and Data Acquisition radio equipment.

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

PASSED, APPROVED, and ADOPTED September 1, 2026 .

CHRISTINA FUGAZI
Mayor of the City of Stockton

ATTEST:

KATHERINE ROLAND, CMC, CPMC
City Clerk of the City of Stockton

201
City of Stockton
Legislation Text
File #: 26-0786, Version: 1

ADOPT A RESOLUTION OF INTENTION TO ANNEX TERRITORY AND TO FORM A NEW ZONE

IN THE STOCKTON CONSOLIDATED STORM DRAINAGE MAINTENANCE ASSESSMENT DISTRICT (DISTRICT 1)

RECOMMENDATION
It is recommended that the City Council approve a Resolution of Intention to:

1. Provide intent to annex territory to a Municipal Improvement District and to form the Stockton Consolidated Storm Drainage Maintenance Assessment District No. 2005-1, Tra Vigne West, Zone 16 (Attachment A), to maintain and operate storm drainage improvements.

2. Specify that the public interest would be served by establishing the Zone and levying annual assessments for the costs to maintain and operate the storm drainage improvements.

3. Preliminarily approve the Engineer’s Report, approve a proposed boundary map (Attachment B), and appoint the Engineer of Work.

4. Set the Public Hearing date on October 27, 2026, and direct the City Clerk to mail public notice to the affected property owners by September 11, 2026, at least forty-five days before the hearing date.

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

Summary
To comply with Stockton Municipal Code Chapter 13.20 Stormwater Quality Control Criteria Plan (SWQCCP), the Tra Vigne West Project, Zone 16 development must install stormwater quality treatment devices. To fund the maintenance and operation of the devices, a new zone must be formed in the City of Stockton Consolidated Storm Drainage Maintenance Assessment District No. 2005-1.

All property owners subject to assessment for the annual costs of the storm drain improvements submitted written consents for annexation to the City Clerk. Northstar Engineering Group, Inc. of Stockton, California, serving as the Engineer of Work, prepared the attached Engineer’s Report and submitted it for preliminary review and approval, including the annual operation and maintenance cost estimates.

Staff recommend that the City Council approve the proposed Resolution to schedule the Public Hearing on October 27, 2026.

City of Stockton Printed on 8/28/2026Page 1 of 4
powered by Legistar™
202
File #: 26-0786, Version: 1

DISCUSSION
Background
On July 26, 2005, the City Council adopted Resolution 05-0329 approving the formation of Stockton Consolidated Storm Drainage Maintenance Assessment District No. 2005-1.

On November 1, 2016, the Central Valley Regional Water Quality Control Board issued the City of Stockton a revised Stormwater National Pollution Discharge Elimination System (NPDES) Permit (Order No. R5-2016-0040-002). The NPDES Permit is a regulatory program under the Clean Water Act administered by the U.S. Environmental Protection Agency (EPA) and state agencies. It is designed to control water pollution by regulating point sources that discharge stormwater runoff into waters of the United States.

The Tra Vigne West project (Attachment A) is a 200-acre development that will include up to 756 single-family residential lots, one multifamily residential lot, one commercial lot, a potential school site, two park sites, and one domestic well. The project site is located in the northeastern portion of the City of Stockton, at the southeast corner of Eight Mile Road and West Lane, and is being developed by MCD North Stockton, LLC and MCD South Stockton, LLC.

To ensure compliance with the SWQCCP and NPDES permit requirements, the Tra Vigne West development must install stormwater quality treatment devices to treat stormwater runoff from the project site. To fund the required maintenance and operation of these stormwater devices, a new zone, Tra Vigne West Project, Zone 16, must be formed in the City of Stockton Consolidated Storm Drainage Maintenance Assessment District No. 2005-1.

The Engineer’s Report (Attachment B) outlines the criteria used to approve the assessment, identifies the special benefits received, and presents the budget for annual maintenance and reserves. In addition, the storm drainage improvements to be maintained in Zone 16 are listed in Exhibit 1.

Present Situation
The Conditions of Approval for any development project require Owners/Developers/Successors-in- Interest to install certain public stormwater quality improvements and provide operations and maintenance services for the proposed treatment features. As a result, and if approved, Tra Vigne West, Zone 16, will be created within the existing Consolidated Storm Drainage Maintenance Assessment District No. 2005-1 (Attachment C) to fund costs associated with operating, maintaining, and replacing the stormwater separator, storm pump station, outfall, detention basin, wrought iron fence, and access road.

The parcels within the proposed Tra Vigne West development are expected to be subdivided following the formation of Zone 16. The subdivision is anticipated to include a total of 1,010 Dwelling Unit Equivalent Factor (dueF) and will have a proposed assessment roll based on the criteria and budget outlined in the Engineer’s Report.

City of Stockton Printed on 8/28/2026Page 2 of 4
powered by Legistar™
203
File #: 26-0786, Version: 1
The annexation will establish the maximum allowable assessment. The actual levy for developed parcels for the 2027-2028 fiscal year will be determined through the City’s 2027-2028 Annual Stockton Consolidated Storm Drainage Maintenance District 2005-1 budget process.

The maximum annual maintenance assessment for Zone 16 will be:

Assessment
Number

APN TRA VIGNE
UNIT NO.

OWNER No. OF
dueF’s
ANNUAL
BUDGET
1 120-02-036 All of Unit 1,
Parts of Unit 5

41.4 AC (82
dueF’s)
MCD South Parcel,
LLC
82 $5,736.72
2 120-02-038 Part of Unit 8

0.85 AC (0
dueF’s)
MCD South Parcel,
LLC
0 $0.00
3 120-02-035 Part of Units 2,
4 & 5 31.38 AC
(163 dueF’s)
MCD South Parcel,
LLC
163 $11,403.48
4 120-02-037 Part of Unit 8

6.93 AC (30
dueF’s)
MCD South Parcel,
LLC
30 $2,098.80
5 120-02-034 Parts of Unit 3 &
4 19.92 AC (90
dueF’s)
MCD South Parcel,
LLC
90 $6,296.40
6 120-02-033 All of Units 6, 7,
9, 10, 11, 11a,
and Parts of
Unit 8 & 12
101.28 AC (636
dueF’s)
MCD South Parcel,
LLC
636 $44,494.56
7 120-02-001 Part of Unit 12

0.74 AC (9
dueF’s)
MCD South Parcel,
LLC
9 $629.64
TOTAL 1010 $70,659.60
The maximum annual assessment may increase each year by the greater of 3% or the change in the Consumer Price Index, as needed to address rising maintenance costs.

FINANCIAL SUMMARY
The installation and cost of the stormwater quality treatment devices will be paid for by the developer.

Upon completion of the Tra Vigne West development, the new stormwater infrastructure will be owned and operated by the City of Stockton. The proposed formation of Zone 16 and its annual assessment will fund the required maintenance and operation of the new stormwater devices.

City of Stockton Printed on 8/28/2026Page 3 of 4
powered by Legistar™
204
File #: 26-0786, Version: 1
This annexation sets a maximum assessment. The actual FY 2027-2028 levy on developed parcels will be set during next year’s annual budget process for the Stockton Consolidated Storm Drainage Maintenance District 2005-1. The current Engineer’s Report estimates the FY 2027-28 assessment at $70,659.60.

Attachment A - Boundary Map
Attachment B - Engineer’s Report
Attachment C - Stockton Consolidated Storm Drainage Maintenance Assessment District No. 2005-1 City of Stockton Printed on 8/28/2026Page 4 of 4
powered by Legistar™
205

EIGHT MILE ROAD

WEST LANE
APN: 120-02-027
APN: 120-02-036
APN: 120-02-037
APN: 120-02-035
APN: 120-02-038
APN: 120-02-034
APN: 120-02-033
APN: 120-02-013
APN: 120-02-014
APN: 120-02-015
APN: 120-02-001

ASSESSMENT DISTRICT

BOUNDARY

PARCEL LINES

MAINTENANCE DISTRICT

ASSESSMENT NUMBER
0 1" =
500 250 500
500'
PLOTTED: 6/18/2026 10:08 AM PLOTTED BY: Kmikkelsen
DWGNAME: F:\15-1532 Bear Creek East\Civil\Calcs & Reports\Eng Report\Storm Maintenance District\CAD\Exhibit for Council.dwg COPYRIGHT  2026 NORTHSTAR ENGINEERING GROUP, INC

ATTACHMENT A
206
(1*,1((5¶65(3257
75$9,*1(:(67352-(&7=21(6
672&.721&2162/,'$7('67250'5$,1$*(
0$,17(1$1&($66(660(17',675,&71R
&,7<2)672&.721

38568$17727+(081,&,3$/,03529(0(17$&72)
$1'
672&.721,03529(0(17352&('85(&2'(3$579

),6&$/<($5

35(3$5('%<

1257+67$5(1*,1((5,1**5283,1&
0$<

ATTACHMENT B
207
(1*,1((5¶65(3257
)257+(±),6&$/<($5

75$9,*1(:(67352-(&7=21(6
672&.721&2162/,'$7('67250'5$,1$*(0$,17(1$1&(
$66(660(17',675,&712


3XUVXDQWWRWKH0XQLFLSDO,PSURYHPHQW$FWRI
DQG6WRFNWRQ,PSURYHPHQW
3URFHGXUH&RGH3DUW9


7KHXQGHUVLJQHGUHVSHFWIXOO\VXEPLWVWKHHQFORVHGDQQXDOUHSRUWDVGLUHFWHGE\WKH&LW\&RXQFLO '$7('
BBBBBBBBBBBBB
 1RUWKVWDU(QJLQHHULQJ*URXS,QF
( Q J L QHHURI:RUN


  % <
   BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
 $QWKRQ\GH0HOR
 3(

,+(5(%<&(57,)<WKDWWKHHQFORVHG(QJLQHHU¶V5HSRUWWRJHWKHUZLWKWKH$VVHVVP HQW'LVWULFW %RXQGDU\$VVHVVPHQW'LDJUDPDQG$VVHVVPHQW5ROOWKHUHWRDWWDFKHGZDVILOHGZLWKPHRQWKH BBBBBBBBBBGD\RIBBBBBBBBBBBBBBBBBBB

&LW\&OHUN&LW\RI6WRFNWRQ
6DQ-RDTXLQ&RXQW\&DOLIRUQLD


%<
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB


,+(5(%<&(57,)<WKDWWKHHQFORVHG(QJLQHHU¶V5HSRUWWRJHWKHUZLWKWKH$VVHVVP HQW'LVWULFW %RXQGDU\ $VVHVVPHQW 'LDJUDP DQG $VVHVVPHQW 5ROO WKHUHWR DWWDFKHG ZDV DSSURYHG DQG FRQILUPHGE\WKH&LW\RI6WRFNWRQ&DOLIRUQLDRQWKHBBBBBBBBBB GD\RIBBBBBBBBBBBBBBBBBBB 
&LW\&OHUN&LW\RI6WRFNWRQ
6DQ-RDTXLQ&RXQW\&DOLIRUQLD


%<
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB


,+(5(%<&(57,)<WKDWWKHHQFORVHG(QJLQHHU¶V5HSRUW
WRJHWKHUZLWKWKH$VVHVVPHQW'LVWULFW
%RXQGDU\$VVHVVPHQW'LDJUDPDQG$VVHVVPHQW5ROOWKHUHWRDWWDFKHGZDVILOHGZLWKWKH$XGLWRU RIWKH&RXQW\RI6DQ-RDTXLQRQWKHBBBBBBBBBBGD\RIBBBBBBBBBBBBBBBBBBB 
&LW\&OHUN&LW\RI6WRFNWRQ
6DQ-RDTXLQ&RXQW\&DOLIRUQLD


%<
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB

ATTACHMENT B
208
,1752'8&7,21
7KLVUHSRUWLVSUHSDUHGSXUVXDQWWRDQGLQFRPSOLDQFHZLWKWKH UHTXLUHPHQWVRIWKH³0XQLFLSDO ,PSURYHPHQW$FWRI
´DVDPHQGHGFRPPHQFLQJZLWKWKH6WUHHWVDQG+LJKZD\VFRGHVHFWLRQV HW6HTDQGWKH6WRFNWRQ,PSURYHPHQW3URFHGXUH&RGH3DUW9FRPPHQFLQJZLWKWKHFRGH VHFWLRQV
HWVHTIRUWKHFUHDWLRQRIDQHZ=RQH
7UD9LJ QH:HVW3URMHFW=RQH 6
LQWKH
6WRFNWRQ&RQVROLGDWHG6WRUP'UDLQDJH0DLQWHQDQFH$VVHVVPHQW'LVWULFW1R %$&.*5281'
7KH7UD9LJQH:HVWSURMHFWLVDDFUHSURMHFWWKDWZLOOGHYHORSXSWRVLQJOHIDPLO\UHVLGHQWLDO ORWV

RQHPXOWLIDPLO\UHVLGHQWLDOORW

RQHFRPPHUFLDOORW

RQHSRVVLEOHVFKRROVLWH

WZR
SDUNVLWHVDQG

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
3+$6(''(9(/230(17
7KH7UD9LJQH:HVWSURMHFWLVFXUUHQWO\DQWLFLSDWHGWREHFRQVW UXFWHGLQPXOWLSOHSKDVHVIRUPDOO\ GHVLJQDWHGDV8QLWV
HJ8QLW8QLW
XSRQWKHUHFRUGLQJRIWKHILQDOPDSV7KHVWRUPGUDLQDJH LPSURYHPHQWVIRUDOOSKDVHVWKDWZLOOEHPDLQWDLQHGE\WKH7UD 9LJQH:HVW=RQH 6$VVHVVPHQW 'LVWULFWDUHGHVFULEHGLQWKH³'HVFULSWLRQRI)DFLOLWLHVWREH 0DLQWDLQHG´$VWKHSKDVHVSURJUHVV WKH\VKDOOEHLGHQWLILHGDVFRPSOHWHGDQGZLOOEHLQFRUSRUDWHGLQWRWKHQH[WDQQXDOVWRUPGUDLQDJH PDLQWHQDQFHEXGJHW7UD9LJQHZ KHQFRPSOHWHGZLOOLQFOXGHXS WRDSSUR[LPDWHO\VLQJOH IDPLO\ORWV

RQHPXOWLIDPLO\UHVLGHQWLDOORW

RQHFRPPH UFLDOORW

RQHSRVVLEOHVFKRROVLWH


WZRSDUNVLWHVDQG

RQHGRPHVWLFZHOO
$66(660(17',675,&7$5($
7KHDUHDRI=RQH 67UD9LJQH:HVWLVGHVFULEHGDVDOORIWKHSURSHUW\ZLWKLQWKH IROORZLQJ DVVHVVRU¶VSDUFHOVLGHQWLILHGE\DVVHVVRU¶VSDUFHOQXPEHU $31


  %RRN  3DJH   3DUFHO 
   
   
   
   
   
   
   

7KH%RXQGDU\0DS$VVHVVPHQW'LDJUDPDQGFXUUHQW&RXQW\$VVHVVRU¶V0DSIRU7UD9LJQH:HVW =RQH6DUHDWWDFKHGWRWKLV(QJLQHHU¶V5HSRUWDV([KLELW%([KLELW&DQG([KLELW'UHVSHFWLYHO\ ([KLELW&VKRZVWKHSURSRVHG$VVHVVPHQW'LDJUDPZLWKWKHIXWXUHSDUFHOVVXEGLYLGHG 3/$16$1'63(&,),&$7,216
3ODQVDQGVSHFLILFDWLRQVIRUWKHVWRUPGUDLQDJHLPSURYHPHQWVWR EHPDLQWDLQHGE\WKHIXQGV JHQHUDWHGE\7UD9LJQH:HVW=RQH 6DUHILOHGVHSDUDWHO\ZLWKWKH&LW\RI6WRFNWRQDQGDUH LQFRUSRUDWHGLQWRWKLVUHSRUWE\UHIHUHQFH

ATTACHMENT B
209
(QJLQHHU¶V5HSRUW
7UD9LJQH:HVW3URMHFW
0D\
3DJHRI

)$&,/,7,(672%(0$,17$,1('
&HUWDLQSXEOLFVWRUPGUDLQDJHLPSURYHPHQWVDUHWREHLQVWDOOHG E\WKHGHYHORSHUVDVSDUWRIWKH &RQGLWLRQVRI$SSURYDOIRUWKH7UD9LJQH:HVWSURMHFW7UD9LJQ H:HVW=RQH 6 ZDVFUHDWHGWR SURYLGH IXQGLQJIRUWKH FRQWLQXHGPDLQWHQDQFH RIWKHVH VWRUP GUDLQDJH IDFLOLWLHV ZKLFK DUH GHVFULEHGEHORZ'XULQJWKHFRQVWUXFWLRQSHULRGRIHDFKSKDVH WKHGHYHORSHUZLOOPDLQWDLQWKH GUDLQDJHLPSURYHPHQWVXQWLOWKHIROORZLQJ-XQH WKDWZKLFKWLPHWKHQHZLPSURYHPHQWVZLWKLQ WKHUHFRUGHGXQLWVKDOOEHLQFRUSRUDWHGLQWR7UD9LJQH:HVW=RQH6RIWKH$VVHVVPHQW'LVWULFW 
7KHVWRUPGUDLQDJHLPSURYHPHQWVWREHPDLQWDLQHGDUHDVIROORZV 

 $ &RQWHFK &'6& +\GURG\QDPLF 6HSDUDWRU WR EH PDLQWDLQHG SHU

PDQXIDFWXUHU
VUHFRPPHQGDWLRQV
 7KHLQOHWDQGRXWOHWVWUXFWXUHVIRUWKHEDVLQWREHLQVSHFWHGDQGPDLQWDLQHGDVQHHGHG  7KHVWRUPSXPSVWDWLRQWKDWGLVFKDUJHVLQWR%HDU&UHHNLVWREHLQVSHFWHGDQGPDLQWDLQHG DQQXDOO\
 7KHJHQHUDWRU\DUGDWWKHSXPSVWDWLRQLVWREHLQVSHFWHGDQGPDLQWDLQHGDQQXDOO\  7KH%HDU&UHHN2XWIDOOLVWREHLQVSHFWHGDQGPDLQWDLQHGDVQHHGHG  $GHWHQWLRQEDVLQWREHPDLQWDLQHGDQGLQVSHFWHGSHULRGLFDOO\IRU VORSHVWDELOLW\VHGLPHQW
DFFXPXODWLRQWUDVKDQGGHEULVSUHVHQFHRIEXUURZVDQGPRZOHV VJUDVVRUDSSURYHG HTXLYDOHQW
 9HFWRUFRQWUROWREHLQVSHFWHGDQGWUHDWHG
 7KHZURXJKWLURQIHQFH
a/)
DQG

WZRJDWHVWKDWVXUURXQGWKHH[WHQGHGGHWHQWLRQ
EDVLQWREHLQVSHFWHGDQGPDLQWDLQHG

 $QDVSKDOWFRQFUHWHDFFHVVURDGWREHPDLQWDLQHG
$//2&$7,212)&2676
$VVHVVPHQWVIRUWKH7UD9LJQH:HVW=RQH 66WRUP'UDLQDJH0DLQWHQDQFH$VVHVVPHQW'LVWULFW DUHDSSRUWLRQHGLQDPDQQHULQWHQGHGWRIDLUO\GLVWULEXWHWKHD PRXQWVDPRQJDOODVVHVVDEOH GHYHORSHGSDUFHOVLQSURSRUWLRQWRWKHHVWLPDWHGEHQHILWVWREHUHFHLYHGE\HDFKVXFKSDUFHO7KH DVVHVVPHQWVKDOOEHOHYLHGEDVHGRQWKHDGMXVWHGGUDLQDJHDUHDVRIHDFKVXFKORWDQGRUSDUFHO$ SDUFHOLVFRQVLGHUHGDVEHLQJGHYHORSHGE\UHDVRQRIKDYLQJEHHQLQFOXGHGDVDORWRUSDUFHOLQ7UD 9LJQH:HVW=RQH6UHFRUGHG)LQDO0DS
V
RUEHLQJLQFOXGHGZLWKLQWKHDFWLYHGHYH ORSHGDUHDLQ WKHFDVHRIDQH[LVWLQJSDUFHO7KHFULWHULDIRUDSSRUWLRQLQJW KHFRVWVIRUWKHPDLQWHQDQFHPDNHV XVHRIDGZHOOLQJXQLWHTXLYDOHQW)DFWRU
GXH)
WRFDOFXODWHWK HEHQHILWIRUDOOXVHVLQWHUPVRI
HTXLYDOHQWGZHOOLQJXQLWV

7KHWHUPVGHILQLWLRQVDQGSURFHGXUHVIROORZHGWRGHYHORSWKHDQQXDODVVHVVPHQWVDUHDVIROORZV 

 &DOFXODWLRQRI5XQRII&RHIILFLHQW
$OO GHYHORSHG SDUFHOV VKDOO EH GLUHFWO\ SURSRUWLRQDO WR D VLQJOHIDPLO\ UHVLGHQWLDO GHYHORSPHQWDVVXPLQJGHYHORSHGVLQJOHIDPLO\ORWVSHUDFUHZLWKDUXQRIIFRHIILFLHQW RI

([DPSOH&DOFXODWLRQ

'HWHUPLQHGXH)SHUDFUHIRUDGHYHORSHGSDUFHOZLWKDUXQRIIFRHIILFLHQWRI 
ሻ
ͲǤ͸ͷሻ
ͲǤ͵ͷ 

 3DUFHO
'HYHORSHG
 GXH)SHU$FUH

ATTACHMENT B
210
(QJLQHHU¶V5HSRUW
7UD9LJQH:HVW3URMHFW
0D\
3DJHRI


 'ZHOOLQJ8QLW(TXLYDOHQW)DFWRU
GXH)

 7KH GXH)IRUHDFKXVHDUHDVIROORZV


D 6LQJOH)DPLO\5HVLGHQWLDO
$OOSDUFHOVGHYHORSHGIRUVLQJOHIDPLO\UHVLGHQWLDOXVHVKDOOEHGHWHUPLQHGWRKDYH DUXQRIIFRHIILFLHQWRIDQGDGXH)RIIRUHDFKSDUFHO 
E 0XOWL)DPLO\5HVLGHQWLDO
$OOSDUFHOVGHWHUPLQHGWREHGHYHORSHGIRUPXOWLIDPLO\UHVLGHQ WLDOXVHVKDOOEH GHWHUPLQHGWRKDYHDUXQRIIFRHIILFLHQWRIDQGDGXH)RISHUDFUHZKLFK LVUHSUHVHQWDWLYHRIWKHLQFUHDVHLQVWRUPGUDLQDJHUXQRIIEHWZ HHQDPXOWLIDPLO\ UHVLGHQWLDOVLWHDQGDVLQJOHIDPLO\UHVLGHQWLDOGHYHORSPHQW 
F 6FKRRO6LWH
$OOSDUFHOVGHYHORSHGIRUDVFKRROVLWHVKDOOEHGHWHUPLQHGWR KDYHDUXQRII FRHIILFLHQWRIDQGD GXH)RISHUDFUHZKLFKLVUHSUHVHQWDWLYHRIWKH LQFUHDVHLQVWRUPGUDLQDJHUXQRIIEHWZHHQDVFKRROVLWHDQGDV LQJOHIDPLO\ UHVLGHQWLDOGHYHORSPHQW

G &RPPHUFLDO6LWH
$OOSDUFHOVGHYHORSHGIRUDFRPPHUFLDOVLWHVKDOOEHGHWHUPLQHG WRKDYHDUXQRII FRHIILFLHQWRIDQGD GXH)RI
SHUDFUHZKLFKLVUHSUHVHQWDWLYHRIWKH
LQFUHDVHLQVWRUPGUDLQDJHUXQRIIEHWZHHQDFRPPHUFLDOVLWHDQG DVLQJOHIDPLO\ UHVLGHQWLDOGHYHORSPHQW

H 2WKHU8VHV
$OOSDUFHOVGHWHUPLQHGWRKDYHXVHVRWKHUWKDQLGHQWLILHGDERYHVKDOOKDYHDGXH) HVWDEOLVKHG DW WKH WLPH RI WKH ILUVW DQQXDO EXGJHW DIIHFWLQJ VXF K D U H D V D V  GHWHUPLQHGE\WKH(QJLQHHURURWKHURIILFHUDSSRLQWHGE\WKH&L W\RI6WRFNWRQWR SUHSDUHWKHDQQXDOFRVWVSUHDG7KHGHWHUPLQHG GXH)VKDOOIROORZWKHFKDUDFWHU RIWKHIDFWRUVDVVLJQHGDERYHDVQHDUO\DVSUDFWLFDEOHEXWWKHGHWHUPLQDWLRQVKDOO EHWKHVROHUHVSRQVLELOLW\RIWKHDSSRLQWHGSDUW\DQGWKH&LW\RI6WRFNWRQ 
I =HUR'ZHOOLQJ8QLW(TXLYDOHQW)DFWRU
GXH)

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

 &RPSLODWLRQ
$QQXDOO\DERXW0DUFKIROORZLQJWKHGHWHUPLQDWLRQRIWKHGZ HOOLQJXQLWHTXLYDOHQW )DFWRU
GXH)
IRUDOOGHYHORSHGSDUFHOVDQGWKHGHWHUPLQDWLRQRIWKHOLVWR IGHYHORSHG SDUFHOVE\$31IRUWKHQH[WILVFDO\HDUDOOVLQJOHIDPLO\UHVLGHQWLDOSDUFHOVVKDOOKDYHD GZHOOLQJXQLWHTXLYDOHQW
GXH
DVVLJQHGWRHDFKSDUFHOHTXDOWRWKHGXH)IRUWKDWSDUFHO )RUDOOSDUFHOVRWKHUWKDQVLQJOHIDPLO\UHVLGHQWLDOSDUFHOVWKHSURGXFWRIWKHGXH)WLPHV WKHDUHDRUDGMXVWHGXVDEOHDUHDRIWKHSDUFHODVDSSURSULDWH VKDOOEHFDOFXODWHGDQG

ATTACHMENT B
211
(QJLQHHU¶V5HSRUW
7UD9LJQH:HVW3URMHFW
0D\
3DJHRI

VKDOOEHWKHGXHDVVLJQHG)RUGHYHORSHGSDUFHOVWKHVXPRIWKHGXHDVVLJQHGWRHDFK VLQJOHIDPLO\DQGWKHGXHIRUHDFKRWKHUSDUFHOVKDOOHTXDOWKHWRWDOGXHIRUWKHQH[WILVFDO \HDU7KHWRWDODPRXQWRIUHYHQXHUHTXLUHGIRUWKHQH[WILVFDO\HDUVKDOOWKHQEHGLYLGHG E\WKHWRWDO GXHWRFDOFXODWHWKHDVVHVVPHQWSHU GXHIRUWKHQH[WILVFDO\HDU3DUFHOV GHILQHG DV QRW GHYHORSHG IRU WKH SXUSRVHV RI GHWHUPLQLQJ WKH VWRUP GUDLQDJH PDLQWHQDQFHDVVHVVPHQWVZLOODOOKDYHD]HUR GXH)DQGFRQVHTXHQWO\D]HUR GXHDQG D]HURDVVHVVPHQW

 $OORFDWLRQRI$VVHVVPHQWV
7KHDVVHVVPHQWIRUPDLQWHQDQFHIRUWKHQH[WILVFDO\HDUVKDOOWKHQEHVHWIRUHDFKSDUFHO DVWKHSURGXFWRIWKHFDOFXODWHGGZHOOLQJXQLWHTXLYDOHQW GXH
IRUHDFKSDUFHOPXOWLSOLHG
E\WKHDVVHVVPHQWSHUGXHIRUWKHQH[WILVFDO\HDU
0(7+2'2)$66(660(17635($'
,QFRPSOLDQFHZLWKWKHSURYLVL RQVRI3URSRVLWLRQDGGLQJ$U WLFOH;,,,'WRWKH&DOLIRUQLD &RQVWLWXWLRQWKHEHQHILWVFRQIHUUHGRQHDFKSDUFHOZLWKLQ7UD9LJQH:HVW=RQH6RIWKH6WRFNWRQ &RQVROLGDWHG6WRUP'UDLQDJH0DLQWHQDQFH$VVHVVPHQW'LVWULFW1R DUHSDUWLFXODUDQG GLVWLQFWEHQHILWV
KHUHLQDIWHU³VSHFLDOEHQHILWV´
RYHUDQGDERYHJHQHUDOEHQHILWVFRQIHUUHGRQVXFK
SURSHUW\RUWRWKHSXEOLFDWODUJHLQWKDW=RQH 6SURYLGHVVWRUPGUDLQDJHTXDOLW\FRQWUROIRUWKH GHYHORSPHQWRIWKHSURSHUW\ZLWKLQ=RQH6IRUUHVLGHQWLDODQGUHODWHGXUEDQXVHV 
%HQHILWVDUHGHWHUPLQHGWREHVSHFLDOEHQHILWVDQGJHQHUDOEHQHILWV$OVRLQNHHSLQJZLWK WKHUHTXLUHPHQWVRI3URSRVLWLRQQRDQQXDOLQGLYLGXDODVVHVVPHQWVVKDOOEHLQFUHDVHGDERYH WKHDPRXQWVDVVHVVHGXQGHUWKHHVWDEOLVKHGFULWHULDIRUHDFK]R QHIRUWKHSUHFHGLQJILVFDO\HDU ZLWKRXWDQHOHFWLRQDSSURYDOH[FHSWDVSURYLGHGE\WKHDQQXDOHVFDODWLRQIDFWRU 
3XUVXDQWWR$UWLFOH;,,,'6HFWLRQRIWKH&DOLIRUQLD&RQVWLWXWLRQSXEOLFO\RZQHGSURSHUWLHVZKLFK UHFHLYHVSHFLDOEHQHILWIURPWKHLPSURYHPHQWVPXVWEHDVVHVVHGDSURSRUWLRQDWHVKDUHRIWKHFRVWV WKHUHRI

7KHEDVHREMHFWLYHRIWKHDVVHVVPHQWVSUHDGLVWRGLVWULEXWHFRVWVLQDFFRUGDQFHZLWKWKHEHQHILWV UHFHLYHG&RVWVZLOOEHVSUHDGEDVHGRQ GXHWRHDFKUHVLGHQWLDOORWFRPPHUFLDOVLWHVFKRROVLWH SDUNVLWHVDQGGRPHVWLFZHOOVLWH
$118$/(6&$/$725
7KHPD[LPXPDVVHVVPHQWDPRXQWIRUHDFKILVFDO\HDUVKDOOEHLQF UHDVHGLQDQDPRXQWHTXDOWR WKHJUHDWHURI

WKUHHSHUFHQW

RU
WKHSHUFHQWDJHLQFUHDVHRIWKH/RFDO&RQVXPHU3ULFH
,QGH[
&3,
&RQVXPHU3ULFH,QGH[DSSOLHGLVIRUWKH6DQ)UDQFLVFR2DNODQG6DQ-RVH&RXQW\ $UHDIRU$OO8UEDQ&RQVXPHUVDVGHYHORSHGE\WKH86%XUHDXR I/DERU6WDWLVWLFVIRUDVLPLODU SHULRGRIWLPH
$'0,1,675$7,21
,WLVLQWHQGHGWKDWWKH&LW\RI6WRFNWRQHLWKHUGLUHFWO\RUE\VXEFRQWUDFWVKDOOKDYHWKHUHVSRQVLELOLW\ WRHVWDEOLVKDQRQJRLQJ6WRUP'UDLQDJH0DLQWHQDQFH0DQDJHPHQWHQWLW\WREHNQRZQDVWKH6WRUP 'UDLQDJH0DLQWHQDQFH'LVWULFW0DQDJHUZKLFKVKDOOEHUHVSRQVLEOHWRHVWDEOLVKWKHDQQXDOEXGJHW NHHSDQDFFRXQWLQJRIWKHPDLQWHQDQFHDQGRSHUDWLRQDODGPLQLVWU DWLYHFRVWVDGPLQLVWHUDQG SHUIRUPWKHVWRUPGUDLQPDLQWHQDQFHHLWKHUGLUHFWO\RUE\VXEFR QWUDFWSD\DOOIHHVXWLOLW\FRVWV WD[HVDQGDQ\DQGDOORWKHURSHUDWLQJFRVWV

ATTACHMENT B
212
(QJLQHHU¶V5HSRUW
7UD9LJQH:HVW3URMHFW
0D\
3DJHRI

(67,0$7(2)&2676
7KHHVWLPDWHGFRVWVDUHIRUSXEOLFVWRUPGUDLQDJHPDLQWHQDQFHR QO\$OOLQLWLDOLPSURYHPHQWVZLOO EHLQVWDOOHGE\WKHGHYHORSHUDWQRFRVWWRWKH6WRUP'UDLQDJH0DLQWHQDQFH$VVHVVPHQW'LVWULFW 7KHFRVWRIPDLQWDLQLQJWKHLPSURYHPHQWVZLOOEHSDLGE\WKHGHYHORSHUWRWKH'LVWULFWWKURXJKWKH HQGRIWKHILVFDO\HDU
-XQH
DQGXQWLOVXFKWLPHDVVXIILFL HQWIXQGV
QRWWRH[FHHGWKHWRWDO
PD[LPXPDVVHVVPHQW
DUHDYDLODEOHIURPWKH'LVWULFW¶VDQQXDODVVHVVPHQWV 
,WHPVFRQVLGHUHGLQWKHPDLQWHQDQFHFRVWLQFOXGHEXWDUHQRWO LPLWHGWR UHJXODUO\VFKHGXOHG
PDLQWHQDQFHDQGIDFLOLW\UHSDLUDQGUHSODFHPHQWDWWKHHQGRILWVXVHIXOOLIH 67250'5$,1$*(0$,17(1$1&($66(660(17
7KH 7UD 9LJQH :HVW GHYHORSPHQW LVUHTXLUHG WR HQVXUH WKDW DOO SURSHUW\ RZQHUV ZLWKLQ WKH VXEGLYLVLRQSD\WKHLUSURSRUWLRQDWHVKDUHRIWKHFRVWWRPDLQWDLQWKHVWRUPGUDLQDJHTXDOLW\FRQWURO IDFLOLWLHVZLWKLQWKHVHUYLFHDUHDIRUWKHVXEGLYLVLRQRUVHUYLQJWKHVXEGLYLVLRQ 
7KHDQQXDOFRVWVHVWLPDWHGWREHFROOHFWHGZLWKWKHW D[HVIRUWKHLQLWLDOO\GHYHORSHG DUHDVDUHDVIROORZV5HIHUWRWKHFRVWEUHDNGRZQVZKLFKIROOR ZWKHHVWLPDWHGFRVWVIRUGHWDLOHG LQIRUPDWLRQRQWKHLWHPVPDUNHGZLWKDQDVWHULVN


  $QQXDO
23(5$7,21&2676 %XGJHW
 &RQWHFK+\GURG\QDPLF6HSDUDWRU
 
 0DLQWHQDQFH 
  5HSODFHPHQW5HVHUYH    
 %DVLQ,QOHW2XWOHW6WUXFWXUHVDQG&UHHN2XWIDOO

 0DLQWHQDQFH5HSDLU 
  5HSODFHPHQW5HVHUYH    
 'HWHQWLRQ%DVLQ
 
 0DLQWHQDQFH5HSDLU 

  9HFWRU&RQWURO 
  :HHGLQJ 
  :DWHULQJ0RZOHVV6RG 

  5HSODFHPHQW5HVHUYH    
 :URXJKW,URQ)HQFHDQG*DWH
 
 0DLQWHQDQFH*UDIILWL    5HSODFHPHQW5HVHUYH 
  
 $FFHVV5RDG 
 0DLQWHQDQFH  90
  
 ,QVSHFWLRQ0DQDJHPHQW 
  
7RWDO2SHUDWLRQ&RVWV  600
 
',675,&7$'0,1,675$7,21&2676 
 $WWRUQH\V¶)HH 
  $QQXDO(QJLQHHU¶V5HSRUW 

ATTACHMENT B
213
(QJLQHHU¶V5HSRUW
7UD9LJQH:HVW3URMHFW
0D\
3DJHRI

  &LW\$GPLQLVWUDWLRQ)HH    &RXQW\$GPLQLVWUDWLRQ)HH    3XEOLFDWLRQ 
 
7RWDO$GPLQLVWUDWLRQ&RVWV    
7RWDO2SHUDWLRQDQG$GPLQLVWUDWLRQ&RVWV  600   
(VWLPDWHG&RQWLQJHQF\

  360
  
7RWDO(VWLPDWHG5HYHQXH5HTXLUHGIRU)LVFDO<HDU  96   
7RWDO$SSURSULDWLRQ5HTXLUHGIURP([LVWLQJ)XQG%DODQFH     
7RWDO(VWLPDWHG$VVHVVPHQWIRU)LVFDO<HDU  96   
'HYHORSHU
V&RQWULEXWLRQ 
  
7RWDOGXH)  
  
(VWLPDWHG$VVHVVPHQWSHUGXH)  


&RQWHFK+\GURG\QDPLF6HSDUDWRU
 0DLQWHQDQFH
VLWHYLVLWDQQXDOO\ZLWKYDFXXPWUXFNWRUHPRYHVHGLPHQWDWSHUVLWHYLVLW 
5HSODFHPHQW5HVHUYH

[\HDUV 


%DVLQ,QOHW2XWOHW6WUXFWXUHDQG&UHHN2XWIDOO
 0DLQWHQDQFH
VLWHYLVLWDQQXDOO\ZLWKYDFXXPWUXFNWRUHPRYHVHGLPHQWDWSHUVLWHYLVLW 
5HSODFHPHQW5HVHUYH

[\HDUV 


'HWHQWLRQ%DVLQ
 0DLQWHQDQFH5HSDLU
VLWHYLVLWVIRUWUDVKSLFNXSPRZOHVVVRGFKHFNDQGUHSDLUVORSHFKHFN DQGUHSDLUEHUPFKHFNDQGUHSDLUORZIORZFKDQQHOFKHFNDQGU HSDLUVSULQNOHUFKHFNDQG UHSDLUDWSHUVLWHYLVLW
LQFOXGLQJPDWHULDOVIRUUHSDLU
 

 9HFWRU&RQWURO
 ,QVSHFWLRQDQGVSUD\LQJ
LQFOXGLQJPDWHULDOV
 
 :HHGLQJ
$QQXDOO\
 :DWHULQJ0RZOHVV6RG


 5HSODFHPHQW5HVHUYH

[\HDUV 


:URXJKW,URQ)HQFHDQG*DWH0DLQWHQDQFH
 0DLQWHQDQFH*UDIILWL&RQWURO
VLWHYLVLWVWRUHPRYHJUDIILWLDWSHUVLWHYLVLW   5HSODFHPHQWUHVHUYH

[\HDUV 
/)#/)


$FFHVV5RDG
 0DLQWHQDQFH
LQFKJULQGDQGRYHUOD\ 930
[\HDUV a
406)#


,QVSHFWLRQ0DQDJHPHQW
KRXUVSHUPRQWK[PRQWKVSHU\HDU[SHUKRXU   

ATTACHMENT B
214
(QJLQHHU¶V5HSRUW
7UD9LJQH:HVW3URMHFW
0D\
3DJHRI

$66(660(1752//
7KHDVVHVVPHQWUROOIRUWKHSURSRVHG=RQH6IRUWKHILVFDO\HDULVDVIROORZV 
$66(66
0(17
180%(5

$31
75$9,*1(
81,712 2:1(5
1R2)
GXH)
V
$118$/
%8'*(7
  $OORI8QLW3DUWVRI8QLW 0&'6RXWK 3DUFHO//&  
$&
GXH)
V

  3DUWRI8QLW 0&'6RXWK
3DUFHO//&  
$&
GXH)
V

  3DUWRI8QLWV  0&'6RXWK
3DUFHO//&  
$&
GXH)
V

  3DUWRI8QLW 0&'6RXWK
3DUFHO//&  


$&
GXH)
V

  3DUWVRI8QLW  0&'1RUWK
3DUFHO//&
 



$&

GXH)
V

 
$OORI8QLWV

DDQG3DUWVRI8QLW  0&'1RUWK
3DUFHO//&  

$&
GXH)
V

  3DUWRI8QLW 0&'1RUWK
3DUFHO//&
 

$&

GXH)
V

   727$/  


7KHSDUFHOVLQWKHSURSRVHG7UD9LJQH:HVWDUHH[SHFWHGWRVXEGLYLGHVXEVHTXHQWWRWKHIRUPDWLRQ RI=RQH67KHSURSRVHGVXEGLYLVLRQZLOOFRQWDLQDWRWDORI GXH)DQGZLOOKDYHDSURSRVHG DVVHVVPHQWUROOEDVHGRQWKHDERYHFULWHULDDQGEXGJHWVHWIRUWKRQ([KLELW³$´ 
7KLVDQQH[DWLRQZLOOUHVXOWLQDSSURYDORIDPD[LPXPDVVHVVPHQW 7KHDFWXDOILVFDO \HDUOHY\RQGHYHORSHGSDUFHOVZLOOEHGHWHUPLQHGDWWKH&LW\¶V $QQXDO6WRFNWRQ &RQVROLGDWHG6WRUP'UDLQDJH0DLQWHQDQFH'LVWULFWEXGJHWSURFHVV 
7KHIRUHJRLQJ(QJLQHHU¶V5HSRUWDQGWKHHVWLPDWHRIFRVWVDVZ HOODVWKH$VVHVVPHQW'LDJUDP DQG$VVHVVPHQW5ROOZKLFKDUHDWWDFKHGKHUHWRDUHSUHVHQWHGI RU\RXUDSSURYDOE\UHVROXWLRQ GDWHGWKLVBBBBBBBBBGD\RIBBBBBBBBBBBBBBBBBB


 1RUWKVWDU(QJLQHHULQJ*URXS,QF
 (QJLQHHURI:RUN




  % <
   BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
 $QWKRQ\GH0HOR
 3(

ATTACHMENT B
215
(QJLQHHU¶V5HSRUW
7UD9LJQH:HVW3URMHFW
0D\
3DJHRI

(;+,%,7³$´
352326('$66(660(1752//
75$9,*1(:(67=21(6
672&.721&2162/,'$7('67250'5$,1$*(0$,17(1$1&($66(660(17 ',675,&71R

$66(66
0(17
180%(5

$31 /271R 81,71R
0$;,080
$118$/
$66(660(17
 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 



 7%'
 /RW
8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 



 7%'
 /RW
8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 



 7%'
 /RW
8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 



ATTACHMENT B
216
(QJLQHHU¶V5HSRUW
7UD9LJQH:HVW3URMHFW
0D\
3DJH
RI


 7%'
 /RW
8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 



 7%'
 /RW
8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 



 7%'
 /RW
8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 



 7%'
 /RW3DUN8QLW 
 7%'
 /RW'RPHVWLF:HOO8QLW 
 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 



 7%'
 /RW
8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 



ATTACHMENT B
217
(QJLQHHU¶V5HSRUW
7UD9LJQH:HVW3URMHFW
0D\
3DJHRI

 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 



 7%'
 /RW
8QLW 



 7%'
 /RW8QLW 



 7%'
 /RW8QLW 



 7%'
 /RW8QLW 



 7%'
 /RW8QLW 



 7%'
 /RW8QLW 



 7%'
 /RW8QLW 



 7%'
 /RW8QLW 



 7%'
 /RW8QLW 



 7%'
 /RW8QLW 



 7%'
 /RW
8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 



 7%'
 /RW
8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 



 7%'
 /RW
8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 



 7%'
 /RW
8QLW 


 7%'
 /RW8QLW 



ATTACHMENT B
218
(QJLQHHU¶V5HSRUW
7UD9LJQH:HVW3URMHFW
0D\
3DJHRI

 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 



 7%'
 /RW
8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 



 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW
8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 



 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW
8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 



 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW
8QLW 



ATTACHMENT B
219
(QJLQHHU¶V5HSRUW
7UD9LJQH:HVW3URMHFW
0D\
3DJHRI

 7%'
 /RW8QLW 


 7%'
 /RW8QLW 



 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW
8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 



 7%'
 /RW8QLW 



 7%'
 /RW8QLW 



 7%'
 /RW8QLW 



 7%'
 /RW8QLW 



 7%'
 /RW8QLW 



 7%'
 /RW8QLW 



 7%'
 /RW8QLW 



 7%'
 /RW
8QLW 



 7%'
 /RW8QLW 



 7%'
 /RW8QLW 




 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW
8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 



 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW
8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 



 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 



ATTACHMENT B
220
(QJLQHHU¶V5HSRUW
7UD9LJQH:HVW3URMHFW
0D\
3DJHRI

 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 



 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW
8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 



 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW
8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 



 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW
8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 



 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW
8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 



ATTACHMENT B
221
(QJLQHHU¶V5HSRUW
7UD9LJQH:HVW3URMHFW
0D\
3DJHRI


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW
8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 



 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW
8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 



 7%'
 /RW8QLW 



 7%'
 /RW8QLW 



 7%'
 /RW8QLW 



 7%'
 /RW8QLW 



 7%'
 /RW8QLW 



 7%'
 /RW8QLW 



 7%'
 /RW
8QLW 



 7%'
 /RW8QLW 



 7%'
 /RW8QLW 



 7%'
 /RW8QLW 




 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW
8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 



 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 



ATTACHMENT B
222
(QJLQHHU¶V5HSRUW
7UD9LJQH:HVW3URMHFW
0D\
3DJHRI

 7%'
 /RW
8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 



 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW
8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 



 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW
8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 



 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW
8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 



 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW
8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 



 7%'
 /RW8QLW 


 7%'
 /RW8QLW 



ATTACHMENT B
223
(QJLQHHU¶V5HSRUW
7UD9LJQH:HVW3URMHFW
0D\
3DJHRI

 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW
8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 



 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW
8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 



 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW
8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 



 7%'
 /RW8QLW 



 7%'
 /RW8QLW 



 7%'
 /RW8QLW 



 7%'
 /RW8QLW 



 7%'
 /RW8QLW 



 7%'
 /RW8QLW 



 7%'
 /RW8QLW 



 7%'
 /RW
8QLW 



 7%'
 /RW8QLW 



 7%'
 /RW8QLW 




 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 



ATTACHMENT B
224
(QJLQHHU¶V5HSRUW
7UD9LJQH:HVW3URMHFW
0D\
3DJHRI

 7%'
 /RW8QLW 


 7%'
 /RW8QLW 



 7%'
 /RW
8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 



 7%'
 /RW
8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 



 7%'
 /RW
8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 



 7%'
 /RW
8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 



 7%'
 /RW
8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 



ATTACHMENT B
225
(QJLQHHU¶V5HSRUW
7UD9LJQH:HVW3URMHFW
0D\
3DJHRI

 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW3DUN8QLW 
 7%'
 /RW8QLW 


 7%'
 /RW8QLW 



 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW
8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 



 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW
8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 



 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW
8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 



 7%'
 /RW8QLW 



 7%'
 /RW8QLW 



 7%'
 /RW8QLW 



 7%'
 /RW8QLW 



 7%'
 /RW8QLW 



 7%'
 /RW8QLW 



 7%'
 /RW
8QLW 



 7%'
 /RW8QLW 



 7%'
 /RW8QLW 



 7%'
 /RW8QLW 



ATTACHMENT B
226
(QJLQHHU¶V5HSRUW
7UD9LJQH:HVW3URMHFW
0D\
3DJH
RI



 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW
8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 



 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW
8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 



 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW
 


 7%'
 /RW8QLW
 


 7%'
 /RW8QLW
 


 7%'
 /RW8QLW
 


 7%'
 /RW8QLW
 


 7%'
 /RW8QLW
 


 7%'
 /RW8QLW
 



 7%'
 /RW8QLW
 


 7%'
 /RW
8QLW
 


 7%'
 /RW8QLW
 


 7%'
 /RW8QLW
 


 7%'
 /RW8QLW
 


 7%'
 /RW8QLW
 


 7%'
 /RW8QLW
 


 7%'
 /RW8QLW
 


 7%'
 /RW8QLW
 


 7%'
 /RW8QLW
 



 7%'
 /RW8QLW
 


 7%'
 /RW
8QLW
 


 7%'
 /RW8QLW
 


 7%'
 /RW8QLW
 


 7%'
 /RW8QLW
 


 7%'
 /RW8QLW
 



ATTACHMENT B
227
(QJLQHHU¶V5HSRUW
7UD9LJQH:HVW3URMHFW
0D\
3DJHRI

 7%'
 /RW8QLW
 


 7%'
 /RW8QLW
 


 7%'
 /RW8QLW
 


 7%'
 /RW8QLW
 



 7%'
 /RW8QLW
 


 7%'
 /RW
8QLW
 


 7%'
 /RW8QLW
 


 7%'
 /RW8QLW
 


 7%'
 /RW8QLW
 


 7%'
 /RW8QLW
 


 7%'
 /RW8QLW
 


 7%'
 /RW8QLW
 


 7%'
 /RW8QLW
 


 7%'
 /RW8QLW
 



 7%'
 /RW8QLW
 


 7%'
 /RW
8QLW
 


 7%'
 /RW8QLW
 


 7%'
 /RW8QLW
 


 7%'
 /RW8QLW
 


 7%'
 /RW8QLW
 


 7%'
 /RW8QLW
 


 7%'
 /RW8QLW
 


 7%'
 /RW8QLW
 


 7%'
 /RW8QLW
 



 7%'
 /RW8QLW
 


 7%'
 /RW
8QLW
 


 7%'
 /RW8QLW
 


 7%'
 /RW8QLW
 


 7%'
 /RW8QLW
 


 7%'
 /RW8QLW
 


 7%'
 /RW8QLW
 


 7%'
 /RW8QLW
 


 7%'
 /RW8QLW
 


 7%'
 /RW8QLW
 



 7%'
 /RW8QLW
 


 7%'
 /RW
8QLW
 


 7%'
 /RW8QLW
 


 7%'
 /RW8QLW
 


 7%'
 /RW8QLW
 


 7%'
 /RW8QLW
 


 7%'
 /RW8QLW
 


 7%'
 /RW8QLW
 


 7%'
 /RW8QLW
 


 7%'
 /RW8QLW
 



 7%'
 /RW8QLW
 



 7%'
 /RW
8QLW
 



ATTACHMENT B
228
(QJLQHHU¶V5HSRUW
7UD9LJQH:HVW3URMHFW
0D\
3DJHRI


 7%'
 /RW8QLW
 



 7%'
 /RW8QLW
 



 7%'
 /RW8QLW
 



 7%'
 /RW8QLW
 



 7%'
 /RW8QLW
 



 7%'
 /RW8QLW
 



 7%'
 /RW8QLW
 



 7%'
 /RW8QLW
 




 7%'
 /RW8QLW
 


 7%'
 /RW
8QLW
 


 7%'
 /RW8QLW
 


 7%'
 /RW8QLW
 


 7%'
 /RW8QLW
 


 7%'
 /RW8QLW
 


 7%'
 /RW8QLW
 


 7%'
 /RW8QLW
 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 



 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW
8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 



 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW
8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 



 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW
8QLW 


 7%'
 /RW8QLW 



ATTACHMENT B
229
(QJLQHHU¶V5HSRUW
7UD9LJQH:HVW3URMHFW
0D\
3DJHRI

 7%'
 /RW8QLW 


 7%'
 /RW8QLW 



 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW
8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 



 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW
8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 



 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW
8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 



 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 



 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW
8QLW 



ATTACHMENT B
230
(QJLQHHU¶V5HSRUW
7UD9LJQH:HVW3URMHFW
0D\
3DJHRI

 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 



 7%'
 /RW8QLW 



 7%'
 /RW8QLW 



 7%'
 /RW8QLW 



 7%'
 /RW
8QLW 



 7%'
 /RW8QLW 



 7%'
 /RW8QLW 



 7%'
 /RW8QLW 



 7%'
 /RW8QLW 



 7%'
 /RW8QLW 



 7%'
 /RW8QLW 




 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW
8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 



 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW
8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 



 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW
8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 



ATTACHMENT B
231
(QJLQHHU¶V5HSRUW
7UD9LJQH:HVW3URMHFW
0D\
3DJHRI


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW
8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 



 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW
8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 


 7%'
 /RW8QLW 



 7%'
 /RW8QLW 


 7%'
 /RW8QLWD 


 7%'
 /RW8QLWD 


 7%'
 /RW8QLWD 


 7%'
 /RW8QLWD 


 7%'
 /RW8QLWD 


 7%'
 /RW8QLWD 


 7%'
 /RW8QLWD 


 7%'
 /RW8QLWD 


 7%'
 /RW
8QLWD 



 7%'
 /RW8QLWD 


 7%'
 /RW&RPPHUFLDO8QLW 

 7%'
 /RW+LJK'HQVLW\5HVLGHQWLDO8QLW 


)LQDO$VVHVVRU¶V3DUFHO1XPEHUWREHDVVLJQHGRQFHWKHLQGLYLGXDOXQLWILQDOPDSVUHFRUG

ATTACHMENT B
232

EIGHT MILE ROAD

WEST LANE
APN: 120-02-027
APN: 120-02-036
APN: 120-02-037
APN: 120-02-035
APN: 120-02-038
APN: 120-02-034
APN: 120-02-033
APN: 120-02-013
APN: 120-02-014
APN: 120-02-015
APN: 120-02-001

ASSESSMENT DISTRICT

BOUNDARY

PARCEL LINES

MAINTENANCE DISTRICT

ASSESSMENT NUMBER

EXHIBIT B

ASSESSMENT DISTRICT BOUNDARY MAP
& ASSESSMENT DIAGRAM
TRA VIGNE WEST PROJECT ZONE 16

STOCKTON CONSOLIDATED STORM DRAINAGE
MAINTENANCE ASSESSMENT DISTRICT, NO. 2005-1

FILED IN THE OFFICE OF THE CITY CLERK OF THE CITY OF STOCKTON THIS_______ DAY OF _________, 20____.
_____________________________________________

CITY CLERK OF THE CITY OF STOCKTON

RECORDED IN THE OFFICE OF THE SUPERINTENDENT OF STREETS THIS ______ DAY OF __________, 20____.
_______________________________________________________________

SUPERINTENDENT OF STREETS OF THE CITY OF STOCKTON

AN ASSESSMENT WAS LEVIED BY THE CITY COUNCIL OF THE CITY OF STOCKTON

COUNTY OF SAN JOAQUIN, STATE OF CALIFORNIA, ON THE LOTS, PIECES AND PARCELS OF LAND SHOWN ON THE AMENDED ASSESSMENT DIAGRAM. SAID ASSESSMENT WAS LEVIED ON __________. SAID AMENDED ASSESSMENT DIAGRAM

AND THE ASSESSMENT ROLL WERE RECORDED IN THE OFFICE OF THE SUPERINTENDENT OF STREETS OF SAID CITY ON THE __________. REFERENCE IS

MADE TO THE ASSESSMENT ROLL RECORDED IN THE OFFICE OF THE

SUPERINTENDENT OF STREETS FOR THE EXACT AMOUNT OF EACH ASSESSMENT

LEVIED AGAINST EACH PARCEL OF LAND SHOWN ON THIS AMENDED ASSESSMENT DIAGRAM.
____________________________________________

CITY CLERK OF THE CITY OF STOCKTON
FILED THIS __________ DAY OF __________, 20____, AT THE HOUR OF____ O'CLOCK __.M, IN THE BOOK ______ OF ASSESSMENT DISTRICTS AT PAGE ______, IN THE OFFICE OF THE COUNTY RECORDER OF THE COUNTY OF SAN JOAQUIN, STATE OF CALIFORNIA. ________________________________________________________________________________

COUNTY RECORDER OF THE COUNTY OF SAN JOAQUIN, STATE OF CALIFORNIA

STOCKTON, SAN JOAQUIN COUNTY

STATE OF CALIFORNIA
0 1" =
500 250 500
500'
PLOTTED: 12/30/2025 11:16 AM PLOTTED BY: Kmikkelsen DWGNAME: F:\15-1532 Bear Creek East\Civil\Calcs & Reports\Eng Report\Storm Maintenance District\CAD\Exhibit B - Assessment.dwg COPYRIGHT  2025 NORTHSTAR ENGINEERING GROUP, INC

ATTACHMENT B
233

EIGHT MILE ROAD

WEST LANE

EXHIBIT C

TRA VIGNE STORM DRAINAGE

MAINTENANCE DISTRICT

FUTURE ASSESSMENT DIAGRAM
JANUARY 2026
PLOTTED: 12/30/2025 11:14 AM PLOTTED BY: Kmikkelsen DWGNAME: F:\15-1532 Bear Creek East\Civil\Calcs & Reports\Eng Report\Storm Maintenance District\CAD\Exhibit C - Future.dwg COPYRIGHT  2025 NORTHSTAR ENGINEERING GROUP, INC

ATTACHMENT B
234

ATTACHMENT B
235
!"#$5
!"#$5
·|}þ9 9
·|}þ9 9
·|}þ4
·|}þ4
·|}þ4
·|}þ8 8
·|}þ62!( !(
!(
!(
!(
!(
!(
!(
Malisa Manor,
Zone 9
Cannery Park,
Zone 2
Riverbend,
Zone 1
Oakmore
Meadows,
Zone 7
Dama Estates,
Zone 4
!(
Silver & Gold
Springs, Zone 5
!(
Westlake Villages,
Zone 11
The Meadowlands
Unit No. 2, Zone 10
!(
!(
Moss Garden,
Zone 12
Little John
Creek N & S,
Zone 8
Simbad Estates,
Zone 3
Old Oak Estates,
Zone 6
!(
ProLogis Park
at Duck Creek
Zone 13
®
0 1 20.5 Miles
Stockton Consolidated Storm Drainage
Maintenance Assessment District 2005-1
City Limits
Legend
Calaveras Estates,
Zone 14
!(
!(
Tra Vigne West
Zone 16

ATTACHMENT C
236
Resolution No.

STOCKTON CITY COUNCIL

RESOLUTION OF INTENTION TO ANNEX TERRITORY TO A MUNICIPAL

IMPROVEMENT DISTRICT AND TO FORM A ZONE TO MAINTAIN AND OPERATE

STORM DRAINAGE IMPROVEMENTS, PROVIDE ANNUAL ASSESSMENTS,

APPROVE A PROPOSED BOUNDARY MAP AND APPOINT ENGINEER OF WORK

CITY OF STOCKTON

STOCKTON CONSOLIDATED STORM DRAINAGE MAINTENANCE
ASSESSMENT DISTRICT NO. 2005-1
TRA VIGNE WEST PROJECT - ZONE 16

The City of Stockton proposes to annex territory into an existing municipal improvement district, initiate special assessment proceedings for the annexation and formation of Tra Vigne West , (Zone 16), and assess annual storm drainage operation and maintenance costs to the benefiting parcels in Zone 16; and The storm drainage improvements to be maintained in Zone 16, as described in Exhibit 1, will serve the property within Zone 16 in accordance with the subdivision’s development agreement between the owner and the City; and

The public interest and conveniences will be served by the proposed proceedings; and

These proceedings finance the ongoing maintenance, repair, replacement, and operation of the storm drainage improvements in Zone 16, installed or to be installed by the owner at no cost to the City of Stockton. Annual costs will be assessed to benefit lots and parcels based on adjusted drainage acres, as calculated each year by the appointed engineer. The engineer will submit an annual budget and assessme nt roll to the City Clerk and City Council for approval, in accordance with Article 5 of Division of the City Improvement Procedure Code; and
Under the authority of the Municipal Improvement Act of 1913 and the Stockton Improvement Procedure Code, the City Council intends to annex territory to a municipal improvement district and form Zone 16 to fund the annual repair, replacement, maintenance, and operation of storm drainage improvements through annual assessments on benefiting parcels within Zone 16; and

The City Council finds that the land specially benefited by the storm drainage improvements is shown on the map titled “Proposed Amended Boundaries ( Tra Vigne West) of Stockton Consolidated Storm Drainage Maintenance Assessment District No. 2005-1,” on file with the City Clerk and presented at this meeting. This area shall 237
be designated as the “Tra Vigne West Annexation, Stockton Consolidated Storm Drainage Maintenance Assessment District No. 2005-1”; and

The City Council desires to designate an Engineer of Work; and

Pursuant to Article XIIID, Section 4 of the California Constitution, publicly owned properties benefiting from the improvements must pay a proportionate share of the costs; now, therefore,

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

1. Recitals. The above recitals are true and correct, and the City Council so finds and determines.

2. Intention. The public interest requires, and the City Council intends, to annex territory and create Zone 16 to levy annual assessments covering the costs of maintaining and operating storm drainage improvements serving Zone 16. These costs may include rent, repair s, equipment replacement, utilities, supervision, and any necessary replacements, improvements, or extensions to ensure proper operation.

3. Division 4 Exception . Under Section 2086 of the California Streets and Highways Code, Division 4 of that Code does not apply to these proceedings.

4. Law Applicable. The annexation proceedings and formation of Zone 16 will follow the Municipal Improvement Act of 1913 (Division 12, Sections 10000 and following) and the Stockton Improvement Procedure Code (Stockton Code).

5. Consent. All property owners subject to assessment have submitted written consents to the City Clerk for the annexation and formation of Zone 16, which are hereby accepted.

6. Special Benefit and Boundary Map . In the City Council’s opinion, the maintenance and operation of the storm drainage improvements provide more than local benefit. The costs are therefore chargeable to Zone 16, as shown on the map on file with the City Clerk, which defines the zone’s boundaries and governs all related details.

7. Engineer’s Report . The annual operation and maintenance costs are referred to Northstar Engineering Group , Inc., Stockton, California, as the Engineer of Work, who is directed to file a written report with the City Clerk including, among other items, the following:

A general description of the storm drainage improvements to be operated and maintained.

238
(a) A reasonable estimate of all costs and expenses of maintaining and operating the improvements.

(b) A diagram showing, as they existed at the time of the passage of this Resolution, all the following:

(1) The exterior boundaries of the territory to be annexed to the assessment district.

(2) The boundaries of Zone 16.
(3) The lines and dimensions of each parcel in Zone 16.

Each subdivision on the diagram shall be assigned a separate number. If the diagram references county assessor’s maps for parcel boundaries and dimensions, those maps shall control all such details.

(c) A proposed annual assessment of operation and maintenance costs for Zone 16, apportioned to each numbered su bdivision based on its adjusted drainage acreage and estimated benefits.

(d) A proposed maximum assessment for each subdivision in the district.

See the Engineer’s Report for detailed descriptions of the improvements, annexation boundaries, and proposed assessments on assessable lots within the annexation area.

8. Public Hearing and Notice . Under the Act and Stockton Code, the City Council orders a Public Hearing on October 27 , 2026, at the City Council Chambers, 501 W. Weber Ave , Stockton, California, 95203, to decide on the annual storm drainage costs, the Engineer’s Report, annexation of territory, Zone 16, and related assessments. The City Clerk will mail notice of public hearing, including the Engineer’s Report, assessment ballot, and protest informatio n, to all affected property owners at least 45 days before the hearing. Notice is considered given when mailed with the City’s name and Clerk’s return address.

9. Contact Person. Dagmara Saini, City of Stockton, is designated to handle protest inquiries and can be contacted during regular office hours at 2500 Navy Dr., Stockton, California 95206. Telephone (209) 937-8155.

//
//
//
//
239

10. Effectiveness. This resolution takes effect immediately upon adoption.

PASSED, APPROVED, and ADOPTED September 1, 2026 .

CHRISTINA FUGAZI
Mayor of the City of Stockton
ATTEST:

KATHERINE ROLAND, CMC, CPMC
City Clerk of the City of Stockton
240
EXHIBIT 1
Exhibit 1

ZONE 16 IMPROVEMENTS TO BE MAINTAINED

Certain public storm drainage improvements are to be installed by the developers as part of the Conditions of Approval for the Tra Vigne West Project. Tra Vigne West Project Zone 16 was created to fund the continued maintenance of the storm drainage facilities described below. During the construction period of each phase, the developer will maintain the drainage improvements until June 30th of the following year, at which time the new improvements within the recorded unit shall be incorporated into Tra Vigne West Zone 16 of the Assessment District.

The following improvements shall be included in Zone 16 upon their completion:

1. A Contech CDS5678-10-C771343-10 Hydrodynamic Separator, to be maintained per manufacturer's recommendations.

2. The inlet and outlet structures for the basin to be inspected and maintained as needed.

3. The storm pump station, which discharges into Bear Creek, is to be inspected and maintained annually.

4. The generator yard, at the pump station, is to be inspected and maintained annually.

5. The Bear Creek Outfall is to be inspected and maintained as needed.

6. A detention basin to be maintained and inspected periodically for: slope stability, sediment accumulation, trash and debris, presence of burrows, and mowless grass or approved equivalent.

7. Vector control to be inspected and treated.

8. The wrought iron fence (~3,100 LF) and two gates that surround the extended detention basin are to be inspected and maintained.

9. An asphalt concrete access road to be maintained.

241
City of Stockton
Legislation Text
File #: 26-0865, Version: 1

ADOPT A RESOLUTION TO AUTHORIZE A THREE-YEAR SOLE SOURCE AGREEMENT WITH INSOURCE SOFTWARE SOLUTIONS, INC. FOR AVEVA SOFTWARE SUBSCRIPTION,

MAINTENANCE, AND SUPPORT SERVICES FOR THE MUNICIPAL UTILITIES DEPARTMENT (ALL DISTRICTS - CITYWIDE)

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

1. Approve findings pursuant to Stockton Municipal Code Section 3.68.070(A)(4) supporting an exception to the competitive bidding process for InSource Software Solutions, Inc. as the sole source vendor for AVEVA software subscription, maintenance, and support services.

2. Authorize the City Manager, or designee, to execute a three-year agreement with InSource Software Solutions, Inc. for AVEVA software subscription, maintenance, and support services in an amount not to exceed $180,000.00.

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) uses AVEVA software as a critical component of the City’s Supervisory Control and Data Acquisition (SCADA) system. The software supports monitoring, control, automation, alarming, historical data collection, and reporting for critical utility operations, including the Delta Water Treatment Plant, the Regional Wastewater Control Facility, water distribution sites, sanitary sewer pump stations, and storm water pump stations. Every MUD facility equipped with SCADA uses AVEVA software.

The current AVEVA software subscription, maintenance, and support services must be renewed to maintain access to software updates, maintenance releases, technical support, compatibility support, and vendor support for the existing SCADA environment. These services are necessary to help ensure the continued reliability and functionality of MUD’s utility control and monitoring systems.

If approved by the City Council, this action will approve findings of an exception to the competitive bidding process and authorize the City Manager to execute a three-year sole source agreement and/or purchase orders with InSource Software Solutions Inc., the sole provider of AVEVA software subscription, maintenance, and support services.

City of Stockton Printed on 8/28/2026Page 1 of 3
powered by Legistar™
242
File #: 26-0865, Version: 1

DISCUSSION
Background
For more than 25 years MUD utilized Wonderware software to operate and monitor critical water, wastewater, storm water, and pumping facilities. In or around 2018, Wonderware was rebranded as AVEVA. Following that transition, the City purchased its AVEVA subscription annually through AVEVA Select California. In 2025, InSource Solutions, Inc. purchased AVEVA Select California, making InSource Software Solutions, Inc. the sole provider of AVEVA (formerly Wonderware) software in our region.

The AVEVA software is necessary to operate the City Municipal Utilities Department’s Supervisory Control and Data Acquisition (SCADA) systems. These systems gather real-time data to control equipment, monitor site conditions, generate alarms, record selected historical data, and provide operational and regulatory reporting for wastewater treatment, stormwater pump stations, and water distribution networks.

To use AVEVA, the City must maintain an active subscription that includes maintenance and support services. These services provide essential access to software updates, maintenance releases, licensing assistance, technical support, and compatibility updates for server operating systems and related infrastructure.

Present Situation
The proposed three-year renewal will provide continued AVEVA Flex subscription and Customer FIRST Premium Support services from October 2026 through October 2029.

InSource Software Solutions, Inc. is the only authorized distributor for California and is authorized to sell AVEVA software licenses, renew AVEVA Customer First support contracts, and provide authorized technical training. Because AVEVA is the SCADA software currently implemented by MUD, other SCADA software vendors cannot provide software updates, maintenance releases, licensing support, or technical support for the City’s existing AVEVA platform.

InSource Software Solutions, Inc. provided the City with a total cost of $179,180 for the City’s AVEVA software subscriptions. Staff recommend approval of a not-to-exceed amount of $180,000.00 to account for the quoted subscription renewals.

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

1. AVEVA software subscription, maintenance, and support services are required to maintain the City’s existing SCADA software environment used by MUD to monitor and control critical utility infrastructure.

City of Stockton Printed on 8/28/2026Page 2 of 3
powered by Legistar™
243
File #: 26-0865, Version: 1

2. The requested subscription and support services are proprietary to the AVEVA software platform and must be obtained through an authorized AVEVA distributor.

3. InSource Software Solutions, Inc. is the sole authorized AVEVA distributor for California and is authorized to sell AVEVA software licenses, renew AVEVA Customer First support contracts, and provide authorized technical training.

4. Other SCADA software vendors cannot provide updates, maintenance releases, licensing support, or technical support for the City’s existing AVEVA software platform.

5. Replacing the existing SCADA software platform would require significant cost, staff time, programming, testing, training, and operational disruption with no practical benefit for the purpose of renewing existing software maintenance and support.

Failure to renew these services would leave critical software unsupported, increasing cybersecurity and reliability risks. Over time, this could affect SCADA performance, slow troubleshooting, and heighten the risk of outages across treatment plants, pump stations, distribution facilities, and reporting systems.

FINANCIAL SUMMARY
If approved by the City Council, this action will authorize a three-year agreement and/or purchase orders with InSource Software Solutions, Inc. for AVEVA software subscription, maintenance, and support services in an amount not to exceed $180,000.00. The quoted three-year subscription renewal cost is $179,180.00.

Quote Description Term Total Cost
037717 v2 AVEVA Flex / Customer FIRST
Premium Support Renewal
10/02/2026 -
10/01/2029
$118,645.00
037714 v1 AVEVA Flex / Customer FIRST
Premium Support Renewal
10/02/2026 -
10/01/2029
$60,535.00
Total $179,180.00
Not-to-Exceed
Authorization
$180,000.00
Account Percentage Amount
6511-500-650002-600-000-00-65-000-000 26% $ 46,800.00
6511-500-650002-610-000-00-65-000-000 49% $ 88,200.00
6511-500-650002-620-000-00-65-000-000 25% $ 45,000.00
There are sufficient funds in the Municipal Utilities Department Utility Technology account. This action has no impact on the General Fund or any other unrestricted funds.

City of Stockton Printed on 8/28/2026Page 3 of 3
powered by Legistar™
244

Resolution No.

STOCKTON CITY COUNCIL

RESOLUTION AUTHORIZING A THREE -YEAR SOLE SOURCE AGREEMENT WITH INSOURCE SOFTWARE SOLUTIONS, INC. FOR AVEVA SOFTWARE SUBSCRIPTION,

MAINTENANCE, AND SUPPORT SERVICES FOR THE MUNICIPAL UTILITIES

DEPARTMENT

The Municipal Utilities Department uses AVEVA software as a critical component of the City's Supervisory Control and Data Acquisition (SCADA) system to monitor, control, automate, alarm, collect historical data, and support regulatory reporting for critical utility operations; and

The AVEVA software environment supports critical Municipal Utilities Department operations, including the Delta Water Treatment Plant, the Regional Wastewater Control Facility, water distribution sites, wells, tanks, chemical injection systems, storm pump stations, and sanitary sewer pump stations; and

Maintaining active AVEVA subscription, maintenance, and support services is essential to obtain software updates, maint enance releases, technical support, cybersecurity updates, and compatibility support for Microsoft operating systems and related infrastructure; and

Stockton Municipal Code Section 3.68.070(A)(4) provides an exception to the competitive bidding requirements when the City Council approves findings that support and justify the purchase through a sole source vendor; and

InSource Software Solutions, Inc. is the sole authorized AVEVA distributor for California and is authorized to sell AVEVA software licenses, renew AVEVA Customer First support contracts, and provide authorized technical training; now, therefore,

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

1. The City Council approves the following findings pursuant to Stoc kton Municipal Code section 3.68.070 to support and justify an exception to the competitive bidding process:

a. AVEVA software subscription, maintenance, and support services are required to maintain the City’s existing SCADA software environment used by MUD to monitor and control critical utility infrastructure.

b. The requested subscription and support services are proprietary to the AVEVA software platform and must be obtained through an authorized AVEVA distributor.

245

c. InSource Software Solutions, Inc. is the sole authorized AVEVA distributor for California and is authorized to sell AVEVA software licenses, renew AVEVA Customer First support contracts, and provide authorized technical training.

d. Other SCADA software vendors cann ot provide updates, maintenance releases, licensing support, or technical support for the City’s existing AVEVA software platform.

e. Replacing the existing SCADA software platform would require significant cost, staff time, programming, testing, training, a nd operational disruption with no practical benefit for the purpose of renewing existing software maintenance and support.

2. A three-year sole source agreement with InSource Software Solutions, Inc. for AVEVA software subscription, maintenance, and support services for the Municipal Utilities Department in an amount not to exceed $180,000 is hereby authorized, a copy of which is attached as Exhibit 1 and incorporated by this reference.

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

PASSED, APPROVED, and ADOPTED September 1, 2026 .

CHRISTINA FUGAZI
Mayor of the City of Stockton

ATTEST:

KATHERINE ROLAND, CMC, CPMC
City Clerk of the City of Stockton
246
EXHIBIT 1
247
EXHIBIT 1
248
EXHIBIT 1
249
EXHIBIT 1
250
EXHIBIT 1
251
EXHIBIT 1
252
EXHIBIT 1
253
EXHIBIT 1
254
EXHIBIT 1
255
EXHIBIT 1
256
EXHIBIT 1
257
EXHIBIT 1
258
EXHIBIT 1
259
EXHIBIT 1
260
EXHIBIT 1
261
EXHIBIT 1
262
EXHIBIT 1
263
EXHIBIT 1
264
EXHIBIT 1
265
EXHIBIT 1
266
EXHIBIT 1
267
EXHIBIT 1
268
EXHIBIT 1
269
EXHIBIT 1
270
EXHIBIT 1
271
City of Stockton
Legislation Text
File #: 26-0838, Version: 1

APPROVE RESOLUTION ACCEPTING A DRIVING UNDER THE INFLUENCE SELECTIVE

TRAFFIC ENFORCEMENT PROGRAM GRANT AWARD FROM THE STATE OF CALIFORNIA OFFICE OF TRAFFIC SAFETY IN THE AMOUNT OF $435,000

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

1. Authorize the City Manager, or designee, to accept a Driving Under the Influence Selective Traffic Enforcement Program grant award from the State of California Office of Traffic Safety in the amount of $435,000;

2. Authorize the City Manager, or designee, to execute Grant Agreement PT27208 and all related documents to carry out the purpose and intent of the grant award;

3. Amend the Fiscal Year 2026-27 Annual Budget to increase the Police Grants & Special Programs revenue and expenditure appropriation by $435,000; and

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

Summary
The Stockton Police Department (SPD) seeks Council approval to accept grant funding from the Office of Traffic Safety (OTS) for a Driving Under the Influence (DUI) Selective Traffic Enforcement Program (STEP) grant award, for the period of October 1, 2026, through September 30, 2027. The STEP grant provides funding for SPD overtime, training, equipment, supplies, and related expenses to support reducing alcohol-involved accidents resulting in fatalities and injuries as well as other types of distracted driving. Enforcement operations include night-time seat belt enforcement, special enforcement operations encouraging motorcycle safety and raising general public awareness regarding the problems associated with drinking and driving, as well as raising awareness in areas with high number of bicycle and pedestrian crashes. Funding for this program is provided by a grant from the OTS through the National Highway Traffic Safety Administration.

DISCUSSION
Background
The SPD has received OTS grant program funding for multiple consecutive years and most recently received a $435,000 OTS grant in Fiscal Year (FY) 2026-27 through the STEP grant for DUI-related missions. In January 2026, the SPD submitted a Memorandum Proposal to the OTS requesting City of Stockton Printed on 8/28/2026Page 1 of 2
powered by Legistar™
272
File #: 26-0838, Version: 1
consideration to continue participation in the DUI STEP Grant program. The SPD’s proposal included “best practice” strategies to be conducted on an overtime basis to help reduce the number of individuals killed or injured in alcohol-involved crashes as well as other types of distracted driving.

Those “best practices” include, but are not limited to, DUI checkpoints, DUI saturation patrols, traffic enforcement, street racing and sideshow enforcement, distracted driving operations, motorcycle safety enforcement, and warrant service operations.

Under the DUI STEP grant, these missions would be conducted by the SPD during the Winter Holiday Mobilization period which is December through January; Memorial Day weekend; Independence Day weekend/period; and during the Summer Mobilization period, which is mid-August through the Labor Day Holiday, as well as any special dates, county fairs, festivals, and other community events.

Present Situation
In June 2026, SPD received notification from OTS indicating the proposal was accepted for funding in FY 2026-27 in the amount of $435,000. Grant funds will be used to pay for overtime staffing costs for the DUI enforcement activities, printed materials, and miscellaneous checkpoint supplies.

Therefore, staff recommends approval of Grant Agreement PT27208 in the amount of $435,000 (Exhibit 1 to the Proposed Resolution).

FINANCIAL SUMMARY
The SPD’s Traffic Section will be responsible for coordinating operations of the grant program. The grant program does not require matching funds. Revenue and expenditures will require an increase in appropriation to the FY 2026-27 Police Special Grants Fund Budget:
· Revenue appropriation of $435,000 to the 2027 OTS/DUI STEP Grant in the Police’s Special Grants Fund - Reimbursement, Traffic Division.
· Expenditure appropriation of $435,000 to the 2027 OTS/DUI STEP Grant in the Police’s Special Grants Fund - Reimbursement, Traffic Division.

City of Stockton Printed on 8/28/2026Page 2 of 2
powered by Legistar™
273
Resolution No.

STOCKTON CITY COUNCIL

RESOLUTION ACCEPTING GRANT FUNDING, IN THE AMOUNT OF $435,000, FROM

THE STATE OF CALIFORNIA OFFICE OF TRAFFIC SAFETY FOR A DUI SELECTIVE TRAFFIC ENFORCEMENT PROGRAM GRANT FOR THE PERIOD OCTOBER 1, 2026, THROUGH SEPTEMBER 30, 2027, AND AMENDING THE FISCAL YEAR 2026-27

ANNUAL BUDGET

In January 2026, the Stockton Police Department (SPD) submitted a Memorandum Proposal to the State of California Office of Traffic Safety requesting consideration to participate in the Driving Under the Influence (DUI) Selective Traffic Enforcement Program Grant (STEP); and

The Program is administered by the Office of Traffic Safety and funding is provided by a grant from the California Office of Traffic Safety, through the National Highway Traffic Safety Administration; and

SPD’s proposal included “best practice” strategies to be conducted on an overtime basis to help reduce the number of individuals killed or injured in alcohol-involved crashes and other types of distracted driving; and

Under t he DUI STEP Grant, missions would be conducted by SPD during the Winter Holiday Mobilization period, which is December through January, Memorial Day Weekend, Independence Day Weekend/Period, Summer Mobilization period which is mid-August through the Labor Day Holiday, and any special dates, County fairs, festivals, and other community events; and

In June 2026, SPD received notification from the State of California Office of Traffic Safety indicating that its proposal was accepted for funding in the amount of $435,000; and

A Grant Agreement (PT27208), attached as Exhibit 1, details how grant funds will be used to pay for DUI enforcement overtime, training, and miscellaneous materials and supplies; now, therefore,

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

1. The City Manager, or designee, is authorized to accept the grant award in the amount of $ 435,000 for the period October 1, 2026, through September 30, 2027, and make all necessary appropriations in compliance with and for the purposes stated in the grant application.

274

2. The City Manager, or designee, is authorized to execute Grant Agreement PT27208 and all related documents to carry out the purpose and intent of the grant award.

3. The Fiscal Year 2026-2027 Annual Budget is amended to appropriate $435,000 in revenues and expenditures for the Police Grants and Special Program s accounts as needed to carry out the purpose and intent of this Resolution.

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

PASSED, APPROVED, and ADOPTED _September 1, 2026___.

________________________

CHRISTINA FUGAZI
Mayor of the City of Stockton
ATTEST:

KATHERINE ROLAND, CMC, CPMC
City Clerk of the City Of Stockton

275

7/29/2026 11:35:55 AM Page 1 of 21

State of California – Office of Traffic Safety

GRANT AGREEMENT

GRANT NUMBER
PT27208

1. GRANT TITLE
Selective Traffic Enforcement Program (STEP)

2. NAME OF AGENCY 3. Grant Period
Stockton From:

To:
10/01/2026
09/30/2027 4. AGENCY UNIT TO ADMINISTER GRANT
Stockton Police Department

5. GRANT DESCRIPTION
Best practice strategies will be conducted to reduce the number of persons killed and injured in crashes involving alcohol and other primary crash factors. The funded strategies may include impaired driving enforcement, enforcement operations focusing on primary crash factors, distracted driving, night-time seat belt enforcement, special enforcement operations encouraging motorcycle safety, enforcement and public awareness in areas with a high number of bicycle and pedestrian crashes, and educational programs. These strategies are designed to earn media attention thus enhancing the overall deterrent effect.

6. Federal Funds Allocated Under This Agreement Shall Not Exceed:

Allocation is contingent upon availability of federal funds. $435,000.00

7. TERMS AND CONDITIONS: The parties agree to comply with the terms and conditions of the following which are by this reference made a part of the Agreement:
• Schedule A – Problem Statement, Goals and Objectives and Method of Procedure • Schedule B – Detailed Budget Estimate and Sub-Budget Estimate (if applicable) • Schedule B-1 – Budget Narrative and Sub-Budget Narrative (if applicable) • Exhibit A – Certifications and Assurances
• Exhibit B* – OTS Grant Program Manual
• Exhibit C – Grant Electronic Management System (GEMS) Access

*The item shown with an asterisk (*), is hereby incorporated by reference and made a part of this agreement as if attached hereto. This document can be viewed at the OTS home web page under Grants: www.ots.ca.gov.

Use of OTS Grant Agreement template in lieu of the California Model Agreement (CMA) The California Office of Traffic Safety (OTS) utilizes its standardized OTS Grant Agreement template for awards. The format, structure, and uniformity of the OTS Grant Agreement template allows for processing through Grant Electronic Management System (GEMS). OTS’s approach to using the OTS Grant Agreement template is consistent with the California Model Agreement (CMA) developed by University of California Office of the President (UCOP) and directed by the Department of General Service (DGS). For more information, please review the OTS Grant Program Manual.

Pre-Agreement Work
No work shall commence and no costs shall be incurred prior to the grant start date or the grant agreement being fully signed and executed. Any such costs are incurred at the grantee’s own risk and may not be reimbursed.

EXHIBIT 1
276
7/29/2026 11:35:55 AM Page 2 of 21

8. Approval Signatures
We, the officials named below, hereby swear under penalty of perjury under the laws of the State of California that we are duly authorized to legally bind the Grant recipient to the grant terms and conditions described herein.

IN WITNESS WHEREOF, this Agreement has been executed by the parties hereto.

A. GRANT DIRECTOR B. AUTHORIZING OFFICIAL
NAME:

TITLE:

EMAIL:

PHONE:

ADDRESS:

Christopher Martin
Sergeant
[email protected]
209-937-7241
22 E. Market Street
Stockton, CA 95202
NAME: