Utilities (Water, Electricity, Gas)
Two speakers, estimated at $10,000 each.
Calculation for Expenditure
Enhance proactive code enforcement Services are roughly $960K for 5 years; SPD plans to use 45% for Monitoring Description of Professional
Service(s)
25 participant copies per cycle
3a. Professional Services or Public Agency Subcontracts 4a. Non-Governmental Organization (NGO) Subcontracts
3b. Professional Services or Public Agency Subcontracts Narrative: List each consultant and/or public agency that will receive grant funds. Provide a brief description of the services that will be provided.
Author/Artist Engagement (National Author)
Calculation for Expenditure
2b. Services and Supplies Narrative: Provide a brief description for each item that explains how it will be used toward fulfilling grant objectives.
Guest Speakers and Instructors
Rental; $10 per month, 15 radios
Duplicating
TOTAL
Ex. Jason Reynolds; includes travel (Single engagement) Description of Services or
Supplies
2a. Services and Supplies
25 participants, $400 per participant = $10,000
Various copies of handouts and materials required, estimated to cost $1,000 $1,000 per month for 12 months
TOTAL
Calculation for Expenditure
Lump sum allocation of $257,587 to fund a community-based organization contract for youth prevention, intervention, and support services over the grant period.
Security at the site $45.18 per hour, 12 hours a week, 52 weeks Community-Based Youth Prevention and
Intervention Services Contract
Lieutenant, 1 Position
The Lieutenant will provide overall oversight of the grant funded team, including mission planning, resource deployment, interagency coordination, and ensuring alignment with public safety objectives. This position will also oversee reporting, compliance, and performance monitoring.
Sergeants, 2 Positions
The Sergeants will provide direct supervision of daily operations, including coordinating enforcement activities, assigning staff, reviewing cases, and ensuring safe and effective execution of missions. They will also monitor progress and support operational reporting.
Officers, 10 Positions
The Officers will conduct field enforcement activities focused on identifying, investigating, and addressing illicit cannabis activity. Duties include surveillance, compliance checks, evidence collection, report writing, and supporting joint operations to improve community safety.
Launch Pad Staffing Roles and Responsibilities:
The success of the Launch Pad initiative relies on a coordinated team structure that combines program management, youth development, workforce preparation, and prevention-focused engagement. Each position plays a distinct role in ensuring the program operates effectively, serves youth appropriately, and builds strong partnerships throughout the community.
Recreation Supervisor, 1 Position
The Recreation Supervisor will provide overall leadership, program oversight, and operational management for the Launch Pad initiative. This position will be responsible for program development, implementation, and evaluation, ensuring that services align with the program’s goals of youth engagement, prevention, and opportunity development. The Recreation Supervisor will also serve as the primary partnership liaison, building and maintaining relationships with key partners, including the school district, probation, the Office of Violence Prevention, community-based organizations, and workforce partners. This role will oversee program staff, coordinate scheduling and facility use, and ensure the program operates efficiently and safely while meeting performance outcomes and reporting requirements.
Recreation Coordinator, 1 Position
The Recreation Coordinator will manage the day-to-day program operations and youth engagement activities. This position will coordinate programming with partner organizations and ensure that services are responsive to the needs of the youth and young adults participating in the program. Responsibilities include coordinating educational activities, job readiness programs, vocational exposure, life skills workshops, and workforce placement opportunities. The Recreation Coordinator will work closely with schools, probation, workforce partners, and community organizations to connect participants to job training, educational support, internships, and employment opportunities. This role will focus heavily on participant development, program scheduling, and ensuring consistent engagement and participation.
Senior Recreation Assistant, 1 Position
The Senior Recreation Assistant will support program implementation and participant services, working closely with the Office of Violence Prevention staff on participant intake, on-site profiling, and program tracking. This position will assist with program planning, educational activities, workshops, and field trips that expose youth to career, educational, and cultural opportunities. The Senior Recreation Assistant will also support data tracking, participant engagement, and program logistics, helping ensure participants move through the program and access the services and opportunities available to them.
Part-Time Recreation Leaders (2)
The Part-Time Recreation Leaders will support daily program operations by assisting with supervision, recreational programming, and structured activities within the gym, arts and crafts areas, and specialized program components. These staff members will help facilitate activities, support youth engagement, assist with program setup and cleanup, and help maintain a safe and welcoming environment. They play an important role in building relationships with participants and supporting daily program operations.
Librarian I, 1 Position and Part-Time Library Support Staff (2) The library staff positions will design and facilitate a structured creative literacy program. This library-led component will use culturally relevant literature and guided creative workshops to provide youth with structured activity, relationship-building, and personal development in a safe recreation setting. Low reading proficiency is strongly correlated with school disengagement and justice system involvement. By combining safe space, literacy access, and guided mentorship, this program addresses prevention at its root - connection, engagement, and opportunity.
Outreach Worker-Office of Violence Prevention Part-time staff Office of Violence Prevention staff will play a critical role in participant engagement and support services, serving as credible messengers, mentors, and program monitors. Using a public health approach, they recognize that violence is often driven by underlying factors such as trauma, substance use, and high-risk peer or group dynamics. Through consistent engagement, OVP staff will identify early warning signs and intervene to disrupt pathways that can lead to gang involvement, gun violence, or system involvement. They will support participants in developing healthier coping strategies, strengthening protective factors, and connecting to behavioral health, substance use treatment, and other community-based services. Their presence ensures the program maintains a strong prevention and intervention focus, addressing root causes of violence, alongside recreation and workforce development components.
Portable radios will be rented to support communication during enforcement operations. These radios will provide reliable, real-time coordination between field personnel, supervisors, and partnering agencies during missions targeting illicit cannabis activity.
The use of dedicated radios will enhance officer safety, improve operational efficiency, and ensure clear communication in environments where standard communication systems may be limited. This supports the grant objective of conducting effective, coordinated public safety and enforcement actions.
Program and Creative Materials and Supplies include journals and sketchbooks to be provided to participants. In addition, zine-making materials, art, mixed media supplies, and printing costs.
Each session will be a guided discussion led by trained library staff. They will provide structured creative response activities, such as poetry, journaling, zines, and visual art. Distribution of personal book copies to participants.
Graphic novel and audio format support.
The City currently contracts with Tolemi to provide a data driven software platform that supports environmental impact mitigation and proactive code enforcement. The platform integrates multiple data sources, including utility usage, code violations, and property status indicators, to identify vacant, distressed, and high risk properties before they become blighted.
Services include map based analytics, automated data integration, compliance monitoring, and reporting tools that allow staff to prioritize enforcement, track environmental and nuisance conditions, and allocate resources more effectively. The system also supports property registration, inspection tracking, and coordination across departments, improving the City’s ability to address environmental impacts associated with nuisance properties and illegal activity.
One author/artist engagement event (local or national). Sample anchor title: Long Way Down by Jason Reynolds. Selected for accessibility, relevance, and discussion of decision-making and consequences. Youth receive personal copies of books to build ownership and home libraries.
Description of Subcontracts
EXHIBIT 1
343
$0 $0 $0
$0 $0 $0
$0 $0 $0
$0 $0 $0
$0 $0 $0
$0 $0 $0
$0 $0 $0
$0 $250,087 $250,087
A. Grant Funds for
PPA 1: Public
Safety/Enforcement
B. Grant Funds for
PPA 2, 3, and/or 4
Total Requested
Grant Funds
(A+B)
$128,000 $128,000
$10,000 $20,000 $30,000
$4,000 $4,000
$16,000 $16,000
$82,500 $82,500
$75,000 $0 $75,000
$315,500 $20,000 $335,500
A. Grant Funds for
PPA 1: Public
Safety/Enforcement
B. Grant Funds for
PPA 2, 3, and/or 4
Total Requested
Grant Funds
(A+B)
$0 $10,000 $10,000
$0 $5,200 $5,200
$4,500 $3,000 $7,500
$0 $0 $0
$0 $0 $0
$0 $0 $0
$4,500 $18,200 $22,700
TOTAL
5a. Equipment/Fixed Assets
Description of Equipment/Fixed
Assets Calculation for Expense
Description of Other (Travel,
Training, etc.)
Training and Professional development
Fleet for participants
Required 2-Day Trip to Sacramento for
3-5 Key Grant Team Members
Calculation for Expense
TOTAL
Estimated at $2,500 per staff for 4 staff members
6a. Other (Travel, Training, etc.)
4b. Non-Governmental Organization (NGO) Subcontracts Narrative: List each NGO subcontractor that will receive grant funds. Provide a brief description of the services that will be provided. 5b. Equipment/Fixed Assets Narrative: List any equipment or fixed assets that will be purchased with grant funds and provide a brief description of each item that explains how it will be used toward fulfilling grant objectives.
6b. Other (Travel, Training, etc.) Narrative: Provide a brief explanation for how each item listed above will contribute toward fulfilling grant objectives. Please budget for at least one 2-day trip to Sacramento for 3-5 key grant team members.
TOTAL
1 Marked 3/4 Ton Truck
Two Laptops for A. section and 4 for B.
Section
Ballistic Shield
Individual Cameras & Binoculars
1 unmarked van
Pole Cameras
3/4 truck with Mobile Data Computer and grappler
$100 per week; 52 weeks
The City will partner with a qualified community-based organization through a competitive Request for Proposals process to provide youth prevention, intervention, and support services aligned with the goals of the Stockton Cannabis Public Safety and Prevention Project. The selected organization will provide services for youth at risk of substance use, involvement in illegal activity, or exposure to violence and unstable environments.
Services provided by the subcontractor may include mentorship, case management, substance use prevention education, life skills development, workforce readiness support, and referrals to behavioral health, substance use treatment, education, and employment services. The subcontractor will work with youth referred through City programs, schools, community programs, and partner agencies, including youth identified as at risk of involvement in illegal activity or substance use.
The subcontractor will support the project’s prevention and intervention goals by providing structured programming and individualized support services designed to reduce substance use risk factors, improve decision-making and life skills, increase engagement in education and employment pathways, and reduce involvement in illegal activity. Services provided by the subcontractor will complement enforcement and prevention efforts conducted by City departments and will help address the underlying risk factors associated with substance use and illegal cannabis activity.
Marked 3/4 Ton Truck (Public Safety and Enforcement)
The marked truck will support field enforcement operations by transporting personnel, equipment, and evidence during missions targeting illicit cannabis activity. It will enhance operational mobility, visibility, and response capability in impacted areas.
Two Laptops (Public Safety and Enforcement)
The laptops will be used in the field and office to support investigations, report writing, data analysis, and access to enforcement systems. This will improve efficiency, real time decision making, and case management.
Ballistic Shield (Public Safety and Enforcement)
The ballistic shield will be used during high risk enforcement operations to enhance officer safety. It will support tactical entries and other enforcement actions involving potentially dangerous environments.
Individual Cameras and Binoculars (Public Safety and Enforcement) Cameras and binoculars will support surveillance and evidence collection efforts. These tools will allow officers to document violations, gather intelligence, and build cases related to illicit cannabis activity.
Unmarked Van (Public Safety and Enforcement)
The unmarked van will be used for surveillance and covert operations. It will allow officers to conduct investigations without detection, improving the effectiveness of enforcement activities.
Pole Mounted Cameras (Environmental Impacts)
Pole mounted cameras will be deployed in targeted areas to monitor ongoing illicit activity and associated environmental or nuisance conditions. These cameras will support long term surveillance, evidence collection, and identification of environmental impacts tied to illegal cannabis operations.
Enter narrative here. You may expand row height if needed. $5K per laptop
$2K per Ballastic shield
$800 each; 10 of each needed
$72.5K for unmarked vehicle and $10K for Mobile Data Computer $15K each; need a total of 5
$1,500 per person (2 nights at hotel, milage reimbursement, incidentals, misc) for 5 people.
EXHIBIT 1
344
Grant Funds Total Requested
Grant Funds
$0 $0
$624,675
$0 $0
$832,900
7b. Indirect Costs Narrative:
Enter narrative here. You may expand row height if needed. If using a federally approved indirect cost rate, please include the rate in the narrative. 7a. Indirect Costs
Please see Instructions tab for additional information regarding Indirect Costs.
If the amount exceeds the maximum allowed and/or turns red , please adjust it to not exceed the line-item noted.
For this grant program, indirect costs may be charged using only one of the two options below:
1) Indirect costs not to exceed 15 percent (15%) of all grant-funded costs, excluding equipment and fixed assets. Applicable if the applicant does not have a federally approved indirect cost rate.
If using Option 1) grant funds allocated to Indirect Costs may not exceed:
2) Indirect costs not to exceed 20 percent (20%) of all grant-funded costs, excluding equipment and fixed assets. Applicable if the applicant has a federally approved indirect cost rate. Amount claimed may not exceed the applicant's federally approved indirect cost rate.
If using Option 2) grant funds allocated to Indirect Costs may not exceed:
$0 $0
EXHIBIT 1
345
CITY OF STOCKTON
BSCC 1473-26
PAGE 1 OF 2
APPENDIX B:
CRITERIA AND ASSURANCE FOR NON-GOVERNMENTAL ORGANIZATIONS
THAT RECEIVE BSCC GRANT FUNDS AS A SUBCONTRACTOR
The Proposition 64 Public Health and Safety (Prop 64 PH&S) Grant Program, Cohort 4, includes requirements that apply to non-governmental organizations that receive BSCC grant funds as subcontractors. Grantees are responsible for ensuring that all subcontracted third parties continually meet these requirements as a condition of receiving any Prop 64 PH&S grant funds.
These requirements are as follows.
Any non-governmental organization that receives Prop 64 PH&S grant funds must:
• Have been duly organized, in existence, and in good standing at least six (6) months prior to the start date of the Grantee’s Grant Agreement with BSCC.
Note: Non-governmental organizations that have recently reorganized or have merged with other qualified non-governmental organizations that were in existence prior to the six (6) month date are also eligible, provided all necessary agreements have been exe cuted and filed with the California Secretary of State prior to the start date of the applicant’s Grant Agreement with BSCC. • Be registered with the California Secretary of State’s Office, if applicable.
• Have a valid business license, Employer Identification Number (EIN), and/or Taxpayer ID (if sole proprietorship).
• Have any other state or local licenses or certifications necessary to provide the services requested (e.g., facility licensing by the Department of Health Care Services), if applicable.
In the table below, provide the name of the Grantee and list all subcontracted third parties.
See next page for signature block.
Name of Grantee:
Name of Subcontracted Third
Party Address Email / Phone Meets All
Requirements
Yes ☐ No ☐
Yes ☐ No ☐
Yes ☐ No ☐
Yes ☐ No ☐
EXHIBIT 1
346
CITY OF STOCKTON
BSCC 1473-26
PAGE 2 OF 2
APPENDIX B:
CRITERIA AND ASSURANCE FOR NON-GOVERNMENTAL ORGANIZATIONS
THAT RECEIVE BSCC GRANT FUNDS AS A SUBCONTRACTOR
Grantees are required to update this list and submit it to BSCC any time a new third -party subcontract with an NGO is executed after the initial assurance date. Grantees shall retain (on site) applicable source documentation for each subcontracted party that verifies compliance with the requirements listed in the Prop 64 PH&S RFP. These records will be subject to the records and retention language found in the Standard Agreement.
Unless prior approval is obtained, the BSCC prohibits disbursement or reimbursement to any NGO that does not meet the requirements listed above and for which the BSCC does not have a signed Criteria and Assurance form on file.
A signature below is an assurance that all requirements listed above have been met.
AUTHORIZED SIGNATURE
(This document must be signed by the person who is authorized to sign the Grant Agreement.)
NAME OF AUTHORIZED OFFICER TITLE TELEPHONE NUMBER EMAIL ADDRESS
STREET ADDRESS CITY STATE ZIP CODE
APPLICANT’S SIGNATURE (verified e-signature is acceptable) DATE x
EXHIBIT 1
347
City of Stockton
Legislation Text
File #: 26-1031, Version: 1
ADOPT A RESOLUTION NAMING THE NEW PARK SITE LOCATED AT 3993 STAPLETON DRIVE AS "CORAZÓN DEL VALLE PARK"
RECOMMENDATION
It is recommended that the City Council adopt a resolution:
1. Authorizing the City Manager to process the naming of the park site located at 3993 Stapleton Drive as "Corazón del Valle Park"
2. Authorizing the City Manager to take other actions which are necessary and appropriate to carry out the purpose and intent of this Resolution.
Summary
This staff report presents a recommendation for naming the new park site located at 3993 Stapleton Drive, currently referred to as Cannery Park. The naming process followed the City's Naming of City Facilities, Parks, and Property Directive 15.02 (Attachment A - Naming of Facilities Policy). Public engagement resulted in 10 complete applications, and the Naming Committee met to review submissions and finalize its selection. The recommended name honors the cultural heritage of the surrounding community. Approving this name will enhance community identity, facilitate wayfinding, and support public engagement with this new space.
DISCUSSION
Background
The new park site at 3993 Stapleton Drive requires an official name to facilitate signage, marketing, and community engagement. The process for naming this park adhered to the City's Naming of City Facilities, Parks, and Property Directive 15.02 (Directive), which establishes guidelines and criteria for naming public assets (Attachment A - Naming of Facilities Policy).
The City engaged the community to establish a nomination list. The nomination period was open from November 18, 2025 to January 20, 2026, during which 10 complete applications were received.
The Naming Committee convened on September 2, 2026 to review submissions and finalize its recommendation.
Based on the criteria and community feedback, the following name is recommended for the park site located at 3993 Stapleton Drive: "Corazón del Valle Park." The name honors the Mexican and Mexican American communities whose work and traditions helped shape the Central Valley, and dedicates the space to family, heritage, and community pride. The name is not that of an individual, City of Stockton Printed on 9/24/2026Page 1 of 2
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348
File #: 26-1031, Version: 1
group, or entity, and therefore, the Directive's criteria regarding length of service, financial contribution, and letters of support from community organizations do not apply.
Present Situation
The park site at 3993 Stapleton Drive is being developed and requires a formal name for signage, directories, and promotional materials.
FINANCIAL SUMMARY
There are no financial impacts from this action.
Attachment A - Naming of Facilities Policy
City of Stockton Printed on 9/24/2026Page 2 of 2
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349
SUBJECT: NAMING, CITY FACILITIES, PARKS, PROPERTY NUMBER: 15.02 RESPONSIBLE OFFICER:
City Manager
EFFECTIVE DATE:
Octoper 10, 2022
DIRECTIVE OWNER:
City Manager
LAS
d-tJ!:erU7P,D2AOOT8ED:
DIRECTIVE CONT ACT:
City Manager's Office ' )k!:
I Tl 7% '% _
'_; Y 1 !Sack
DIRECTIVE 'c,)-
The purpose of this directive is to establish uniform guidelines for the naming of City facilities, parks, and other City property. This directive does not apply to naming City streets and facilities designated for naming rights.
RELEV ANT AUTHORITY
City Charter Section 1201
RELATED CITY POLICIES
Naming of City Facilities, Parks, and Property 15.02.01 0
RELATED CITY PROCEDURES
Naming of City Facilities 15. 02.01 0. 01
FREQUENTLY ASKED QUESTIONS
N/A
UPDATE HISTORY
01/02/1974 - Adopted by Resolution No. 30,999
08/22/1977 -AmertdedbyResolutionNo. 34,445
01/02/1985 -AmendedbyResolutionNo. 85-0015
10/10/2000 -Amended by Resolution No. 00-0495
05/07/2002 -Amended by Resolution No. 02-0361
10/07/2008 - Amended by Resolution No. 08-0407
ATTACHMENT A
350
NAMING OF CITY Fh5itmffis,' Pants', ,15.0:2JOiO
SUBJECT: NAMING, CITY FACILITIES, PARKS, PROPERTY NUMBER: 15.02.010 RESPONSIBLE OFFICER:
City Manager
EFFECTIVE DATE:
October 10, 2022
POLICY OWNER:
Director of Community Services
L.ASl
Or:toq
' UPDATED:
er 7, 2008
POLICY CONT ACT:
Director of Community Services ,: PPI
('-
s
;v[:
fl
POLICY
1 ) Naming of City facilities, parks and buildings within parks, and other designated properties are subject to approval by the City Council.
2) A list of nominated names for facilities, parks, and properties (the "Master List") will be established by the City Manager and maintained by the Community Services Department ("Department") 3) Staff in the Department with responsibility for the facility, park, or property will facilitate the naming process in accordance with 15.02.010.01. Naming must adhere to geographic, topographic, or historical significance generally recognized and known within the City of Stockton or San Joaquin County. In considering naming, staff shall solicit help from historical societies, cultural organizations, or other groups having knowledge or the area.
4) Where there is a desire to name a new facility, park, or property after an individual, group, or entity, the City Council may choose to do so directly, or consider a recommendation from the ad hoc Naming Committee selected by the City Manager in accordance with the procedures outlined in 15.02.010.01.
A) The Naming Committee is responsible for reviewing applications submitted for naming and making recommendations to the City Council. The Naming Committee may not put forward their own recommendation.
B) The Naming Committee may choose not to make a recommendation after reviewing submitted nominations.
5) The following criteria must be considered when nominating and reviewing an application for naming after an individual, group, or other entity:
A) A nominee should have a direct connection to the facility, through providing significant financial support or a significant level of service to the facility to be named. A significant level of service is measured by at least 25 years of dedicated service, a measurable positive impact on the residents of Stockton, or contributions to the community through major development or enhancement of facilities or programs.
B) A nominee should be viewed as a role model in the community as evidenced by support from at least two recognized local community organizations.
C) In the case of individuals, a nominee must have been deceased for at least one year. 6) Names of individuals or groups nominated should not be those which have received significant recognition previously.
ATTACHMENT A
351
7) Naming is an honor that is intended to be permanent. However, in certain circumstances where the historical record reveals new information, or when there is extraordinary community support, renaming of existing City facilities may be considered. Nominations to rename an existing City facility must include a detailed explanation of why renaming is warranted. The nomination for renaming must also adhere to the criteria outlined in section 5 above.
A) Those City facilities, parks, or properties already named shall not be subject to renaming as a result of a financial contribution.
B) Renaming process will follow the same procedures as outlined in 15.02.010.01. 8) Where the naming of a City of Stockton facility, facility component, park, or other City property is later considered to place the City of Stockton in a negative or embarrassing light, the City Council may choose to revoke the honor.
9) General nominations, those nominations that do not specify property to be named, will be accepted at any time. When a new facility, park, or property is identified to be named, there will be a public announcement followed by a nomination period of no less than 60 days for the submission of names for the specific facility, park, or property.
10) All nominations will remain on the Master List for naming future facilities, parks, or properties for three years from the date the nomination was submitted.
RESPONSIBILITIES
Outlining responsibilities including delegation.
RELEV ANT AUTHORITY
City Charter Section 1201
RF,LATED CITY POLICIES
RELATED CITY PROCEDURES
Naming of City Facilities 15.02.01 0.01
RELATED FORMS, DOCUMENTS, OR LINKS
Application for Naming a City Facility, Park, or Property
FRF,QUENTLY ASKED QUESTIONS
N/A
ATTACHMENT A
352
UPDATE HISTORY
01/02/1974 - Adopted by Resolution No. 30,999
08/22/1977 -AmendedbyResolutionNo. 34,445
01/02/1985 -AmendedbyResolutionNo. 85-0015
10/10/2000 -Amended by Resolution No. 00-0495
05/07/2002 -Amended by Resolution No. 02-0361
10/07/2008 -AmendedbyResolutionNo. 08-0407
)OUXX/XXXX - Repealed and Replaced
ATTACHMENT A
353
SUBJECT: NAMING, CITY FACILITIES, PARKS, PROPERTY NUMBER: 15.02.010.01 RESPONSIBLE OFFICER:
City Manager
EFFECTIVE DATE:
October 10, 2022
PROCEDURE OWNER:
Director of Community Services
LAST UPDATED:
Oyto+r 7, 2008
PROCEDURE CONT ACT:
Director of Community Services
i
LThf' !.. ,,.
jFlCYEl) .
PURPOSE
When a new facility, park or other property is constructed, or when a suggestion for facility naming or renaming is submitted in writing to the City Manager, an ad hoc Naming Committee comprised of seven members will be convened at the direction of the City Manager. The Committee will be responsible for reviewing all applications for naming after an individual or group. The Committee will make recommendations to the City Council for approval based on their review. The Community Services Department will act as the staff lead for the Committee.
PROCEDURE
1 ) Nominations for individuals and organizations to be considered for future City facility, park, or property will be open continuously. For each specific naming opportunity, it will be the responsibility of the City Manager to appoint an ad hoc Naming Committee and to declare an open nomination period to last no less than 60 calendar days. All applications must be submitted in writing to the City Manager for review by the Naming Committee.
2) To be considered, the nominee must be recommended by at least two community organizations.
Organizations and individuals may not nominate themselves. Nominations must attach signed letters from each organization's administrative body (Executive Director, Chairman of the Board, etc.) supporting the nomination. The letter should be on organization letterhead and include the name, address, and contact information for the organization.
3) The Naming Committee may consist of representatives from the Parks and Recreation Commission, Stockton Arts Commission, Cultural Heritage Board, Planning Commission, and up to three City of Stockton staff. Additional representatives may be added to ensure a thorough vetting or the nominees. 4) The Naming Committee will be responsible for approving and including the nominated names on an active Master List. The names on the Master List will be active for three years. Names removed after three years may not be precluded from being nominated again.
5) For the nomination to be accepted, the nominee must meet the criteria for a significant level of financial support or service to the City. A significant level of service is measure by at least 25 years of dedicated service, a measurable positive impact on the residents of Stockton, or contributions to the community through major development or enhancement of facilities or programs. All accepted nominees will be
ATTACHMENT A
354
forwarded to the Naming Committee at the City Manager's direction. Community Services Department will serve as the staff lead for the Committee.
6) Individual and group nominees that meet the criteria for a significant level of service must be nominated by a minimum or two recognized City of Stockton organizations. Nominations must be approved at a regular meeting of the organization's administrative body such as a Board of Directors. Organizations may not nominate themselves. Examples of recognized organizations include school boards, non-profit organizations, chambers of commerce, alumni associations, service organizations and other similar community organizations. Organizations are not required to have 501(c)(3) status. 7) The Naming Committee will develop a recommendation to be presented to the City Council for approval.
The Committee may recommend against naming a facility for an individual or group in favor of a name with geographic, historical, or topographical significance. However, the Naming Committee may not recommend naming for an individual or group for whom no application has been submitted. 8) The official name and signage language or the City Facility, park, or property will be approved by a majority vote of the City Council at a regularly scheduled Council meeting. 9) Following approval, City staff, in consultation with the entity that requested the naming, will be responsible For selecting the appropriate signage material, lettering, signage location, and installation. 10) Signage costs for naming will be borne by the City. 1l)When the City Council determines that a significant financial contribution has been made towards the development or an agreement has been entered into for the project to be named, the Council may authorize the naming of the facility after the contributor, private citizen, or business entity, bypassing steps 2-5.
RELEV ANT AUTHORITY
City Charter Sectionl20l
RELATED CITY POLICIES
15.02.010
RELATED FORMS, DOCUMENTS, OR LINKS
Application for Naming a City Facility, Park, or Property
FREQUENTLY ASKED QUESTIONS
N/A
UPDATE HISTORY
01/02/1974 -Adopted byResolutionNo. 30,999
08/22/1977 - Amended by Resolution No. 34,445
01/02/1985 -AmendedbyResolutionNo. 85-0015
10/10/2000 -AmendedbyResolutionNo. 00-0495
ATTACHMENT A
355
05/07/2002 - Amended by Resolution No. 02-0361
10/07/2008 - Amended by Resolution No. 08-0407
XX/XX/XXXX - Repealed and Replaced
ATTACHMENT A
356
CITY OF STOCKTON
APPLICATION FOR NAMING A CITY FACILITY,
PARK, OR PROPERTY
Applicant Information
Name:
Organization:
Address:
Phone:
Email:
Nominee Information
What is the name of the person or organization you are nominating? What facility, park, or property are you proposing for naming? Location address:
Current location name:
Proposed name:
ATTACHMENT A
357
Please answer the following questions:
1. If the nominee is an individual, has the nominee been deceased for more than one (1 ) year? If the nominee is not an individual, check "N/A" g YES [1 NO g N/A
2. The individual or group being nominated should have a relationship to the facility, park, or property being named. Please indicate the relationship (check all that apply):
[1 Historic [1 Geographic [21 Individual g Financial
3. Does the nominee have an existing facility, park, or property already in their name?
g YES g NO [1 N/A
If yes, please provide the exact location.
On a separate sheet of paper, please attach a response to the following questions. Please limit your response to one-page per question.
4. The nominated individual or group should have a direct connection to the facility to be named, through providing significant financial support or a significant level of service. A significant level of service is measured by at least twenty-five (25) years of dedicated service, a measurable positive impact on the residents of Stockton, or contributions to the community through major development or enhancement of facilities or programs.
Please explain how the nominee fulfills these criteria.
5. The nominated individual or group should be viewed as a role model in the community as evidenced their accomplishments and positive impact on the lives of Stockton residents. Please explain how the nominee meets these criteria.
ATTACHMENT A
358
Community Recommendation
To be considered, the nominee must be recommended by at least two community organizations. Organizations and individuals may not nominate themselves. Please attach a signed letter from each organization's administrative body (Executive Director, Chairman of the Board, etc.) supporting the nomination. The letter should be on organization letterhead and include the name, address, and contact information for the organization.
Submit this application, along with all supporting documentation to [email protected]. If you have questions about this application, please contact the Community Services Department at 209.937.8206 What Happens Next?
* City staff will review your application to confirm requirements are met. * Nomination will be forwarded to the City Manager for official inclusion on the list of names to be considered for future naming of a City facility, park, or property.
* City Manager will appoint an ad hoc Naming Committee to review all applications or staff recommendations For naming this location. * The ad hoc Naming Committee will make a recommendation to the City Council for naming of the location.
* If the City Council approves the recommendation, staff will consult with you to select the appropriate signage material, lettering, and signage location. Staff has final decision-making authority on this matter. * Any signage costs will be borne by the City.
ATTACHMENT A
359
Resolution No.
STOCKTON CITY COUNCIL
RESOLUTION NAMING THE NEW PARK SITE LOCATED AT 3993 STAPLETON DRIVE AS "CORAZÓN DEL VALLE PARK"
The new park site located at 3993 Stapleton Drive is in need of an official name; and
The naming process adhered to the City’s Naming of City Facilities, Parks, and Property Directive 15.02, involving public engagement and careful consideration of nominations to reflect community values; and
The nomination period was open from November 18, 2025, through January 20, 2026, during which 10 complete applications were received, and the Naming Committee met on September 2, 2026 , to review the submissions and finalize its recommendation; and
The park site’s recommended name, "Corazón del Valle Park," honors the Mexican and Mexican American communities whose work and traditions helped shape the Central Valley, and dedicates the space to family, heritage, and community pride; now, therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF STOCKTON, AS FOLLOWS:
1. The park site located at 3993 Stapleton Drive shall be named "Corazón del Valle Park."
2. The City Manager, or designee, 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 29, 2026 .
CHRISTINA FUGAZI
Mayor of the City of Stockton
ATTEST:
BONNIE PAIGE, CMC
Interim City Clerk of the City of Stockton
360
City of Stockton
Legislation Text
File #: 26-0701, Version: 1
ADOPT A RESOLUTION TO AUTHORIZE EXECUTION OF TWO TEAM LEASE AGREEMENTS BETWEEN THE CITY OF STOCKTON AND (1) PARKER MOSKAL, FEDERAL PROSPECTS HOCKEY LEAGUE/STOCKTON PRO HOCKEY, LLC AND (2) STOCKTON CRUSADERS, FOR
THE USE OF ADVENTIST HEALTH ARENA
RECOMMENDATION
It is recommended that the City Council adopt a resolution:
1. Authorizing the execution of a Team Lease Agreement with Parker Moskal, Federal Prospects Hockey League/Stockton Pro Hockey, LLC (Stockton Thunder), for the use of Adventist Health Arena as the home court for the Stockton Thunder Hockey Team, consistent with the drafted agreement;
2. Authorizing the execution of a Team Lease Agreement with Stockton Crusaders for the use of the Adventist Health Arena as the home venue for Arena Football One regular season home games, consistent with the drafted agreement; and
3. Authorizing the City Manager, or his designee, to take all the necessary and appropriate actions to carry out the purpose and intent of this resolution.
Summary
The Stockton Thunder (Thunder) approached ASM Global (now Legends Global), operator of the Adventist Health Arena (Arena), about bringing a professional hockey team back to the Arena.
Legends Global, through their management agreement with the City, has the authority to seek and negotiate with potential teams to lease the Arena on behalf of the City, pending final City approval of a negotiated lease. The City has capacity in the Arena to accommodate the Federal Prospects Hockey League (FPHL) season which plays 28 home games, October through April. The City and the Stockton Thunder have reached consensus on the terms of the drafted agreement (Exhibit 1 to the Resolution).
Meanwhile Legends Global also engaged in discussion with the Stockton Crusaders, an Arena Football One (AF1) league team to also bring their team to the Adventist Health Arena for their 2027 season beginning in March of 2027. The Crusaders play a twelve -game season, six on the home court of Stockton. The Crusaders and the City have agreed on the terms contained within the proposed lease attached, (Exhibit 2 to the Resolution).
The City will not only benefit from increased rental of the Arena, but also in welcoming two new home teams to the City, adding more entertainment/recreational options for the community and creating positive exposure for Stockton.
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File #: 26-0701, Version: 1
It is recommended that Council authorize the City Manager to enter into Tenant Lease Agreements with both the Thunder for the use of the Arena for their FPHL team and the Crusaders for AF1 football and accept the lease terms as proposed.
DISCUSSION
Background
The FPHL is a Single-A minor professional hockey league, positioned just below the ECHL (formerly known as the East Coast Hockey League). The league prepares players, coaches, officials, trainers, and front-office staff for the next levels of hockey. The 2025/26 season featured 15 teams in the league with aggressive growth aspirations as the league welcomes five already announced new markets for the upcoming 2026/27 season. The Stockton Thunder is the latest expansion team announced, following teams in Fresno, Oceanside, Southaven, MS, and Thief River Falls, MN. FPHL just completed its sixteenth season with a mission of delivering top-tier family entertainment at affordable prices, spanning a spectrum of hockey markets across the country. FPHL professes a commitment to the communities they call home, cultivating customer-centric personnel and dedicated teams committed to delivering high-performance, energized hockey at an outstanding value to the fans.
Arena Football One (AF1) is a professional indoor arena football league that launched its inaugural season in 2025. AF1was built to revive the high-scoring, fast-paced, and fan-centric tradition of classic arena football while focusing on long-term financial stability and digital accessibility. AF1 is led by Commissioner Jeff Fisher (former NFL head coach). Its premier championship game is known as the Arena Crown. AF1 is growing as the original eight teams will be joined by the addition of the Stockton Crusaders and the Austin Bulls in 2027.
AF1 games are played indoors on a 50-yard field surrounded by padded dasher boards, leading to an incredibly fast and physical game. The games include an 8-on-8 format where teams field 8 players at a time, with most players playing both offense and defense ("ironman football"). Beyond standard touchdowns, field goals are worth 3 points (4 points if executed via a rare drop kick).
Kickoffs that sail cleanly through the uprights award the kicking team a 2-point "Deuce".
AF1 has placed a heavy focus on removing barriers to entry for fans. Nationally, the league broadcasts a weekly "Game of the Week" on VICE TV <https://www.vicetv.com/>. All other regular season and postseason games are produced by the HomeTeam Network and streamed completely free on the Official AF1 YouTube Channel.
Present Situation
The Arena was constructed in 2005 with the intent of accommodating a wide range of events and activities, including sports and family entertainment. Currently, the Arena is home to the Stockton Kings, a G-League Basketball team, in addition to hosting various other acts throughout the year, such as Disney on Ice, StocktonCon, WWE Wrestling, jujitsu tournaments, and many artists from varying genres. FPHL plays between October and April, like the G-League Basketball season, but there is capacity for both uses at the Arena over similar seasons. The ice will be covered as the basketball floor is built over it for the basketball games. This practice is common in many sought-after arenas, and current Legends Global staff are seasoned and experienced at changing over the facility.
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File #: 26-0701, Version: 1
The terms of the pending Tenant Lease Agreement with Stockton Thunder include, but are not limited to, the following:
· Term: Three years with two additional one-year team options · Rent: $21,000/game with 3% annual increase
· Rent includes full use of the Arena, including storage, locker rooms, game night staffing and more
· Facility Fees will be collected on all single, group, and partial season ticket holders · Revenue for advertising on game nights will be sold and retained by the team The terms of the pending Tenant Lease Agreement with Stockton Crusaders include, but are not limited to, the following:
· Term: Three years with two additional one-year options · Rent: $28,000/game with 3% annual increase
· Rent includes full use of Arena, including storage, locker rooms, game night staffing, and more · Facility Fees will be collected on all single, group, and partial season ticket holders · Revenue for advertising on game nights will be sold and retained by the team Approving the Team Lease Agreements will bring additional revenue to the Arena and parking operation, provide greater positive exposure to Stockton, aid in the revitalization of the waterfront and downtown area, and enhance the overall quality of life for the Stockton community and region.
Notification
Per the City Charter, a “Notice of Intent to Lease Real Property Interest” was published inThe Record on September 17, 2026.
FINANCIAL SUMMARY
The Thunder will pay $21,000 per game for 28 home games per season, totaling $588,000 with a 3% annual increase, in rent alone. The Stockton Crusaders will pay $28,500 per game, totaling $171,000 for the season and will increase by 3% annually. The net revenue per game varies depending on attendance and concession sales but is expected to add over $150,000 annually in net revenue to the bottom line of the Arena operating budget. While the FY2027/28 approved budget did not account for the anticipated increase, should budget adjustment be necessary for the Venues Fund, staff will bring requested approvals forward to Council through the quarterly budget reports.
Also of note, the City will remain responsible for the Arena facility including the ice system required for hockey. The current ice system is anticipated to be required to be replaced in the next 3 years, due to the unavailability of the R-22 freon that the system uses for coolant. Very rough estimates for replacement of the ice system are in the $3 - $5M range. A substantial amount of the project funding is anticipated to be available from the Venues Fund balance. Staff will research and procure the replacement through an upcoming capital improvement project, brought before Council for approval at a later date.
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Resolution No.
STOCKTON CITY COUNCIL
ADOPT A RESOLUTION TO AUTHORIZE EXECUTION OF TWO TEAM LEASE AGREEMENTS BETWEEN THE CITY OF STOCKTON AND (1) PARKER MOSKAL, FEDERAL PROSPECTS HOCKEY LEAGUE/STOCKTON PRO HOCKEY, LLC AND (2)
STOCKTON CRUSADERS, FOR THE USE OF ADVENTIST HEALTH ARENA
Adventist Health Arena (Arena) was constructed in 2005 with the intent of accommodating a wide range of events and activities, including sports , and family entertainment; and
The Stockton Thunder approached Legends Global (formerly ASM Global) , operator of the Arena , about bringing a professional hockey team back to the Arena.
Legends Global also engaged in discussions with the Stockton Crusaders, an Arena Football One (AF1) league, to bring their team to the Arena for the 2027 season. Legends Global, through their management agreement with the City, has the authority to seek and negotiate with potential teams to lease the Arena on behalf of the City, pending final City approval of a negotiated lease; and
The City has capacity in the Arena to accommodate the Federal Prospects Hockey League (FPHL) season, which plays 28 home games, October through April; and
FPHL has just completed its sixteenth season with a mission of delivering top -tier family entertainment at affordable prices, spanning a spectrum of hockey markets across the country; and
FPHL professes a commitment to th e communities they call home, cultivating customer-centric personnel and dedicated teams committed to delivering high - performance, energized hockey at an outstanding value to the fans; and
The City has capacity in the Arena to accommodate the Stockton Cru saders for their 2027 season beginning in March of 2027; and
The Stockton Crusaders and AF1 will bring professional indoor football to Stockton with a growing league that places heavy focus on removing barriers to entry for fans; and
The City will not only benefit from increased rental of the Arena, but also in welcoming another home team to the City, adding yet another entertainment/recreational option for the community and creating positive exposure for Stockton; now, therefore, //
//
//
//
364
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF STOCKTON, AS FOLLOWS:
1. The City Council of the City of Stockton hereby approves the execution of a Team Lease Agreement with Parker Moskal, Federal Prospects Hockey League/Stockton Pro Hockey, LLC (Stockton Thunder ), for the use of Adventist Health Arena as the home court for the Stockton Thunder Hockey Team, consistent with the drafted agreement (Exhibit 1).
2. The City Council of the City of Stockton hereby approves the execution of a Team Lease Agreement with Stockton Crusaders for the use of the Adventist Health Arena as the home venue for Arena Football One regular season home games, consistent with the drafted agreement (Exhibit 2).
3. A “Notice of Intent to Lease Real Property Interest” was published in The Record at least ten days prior to Council’s action under this Resolution to lease property, as required by Charter 510.
4. The City Manager, or designee, 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 29, 2026 .
CHRISTINA FUGAZI
Mayor of the City of Stockton
ATTEST:
BONNIE PAIGE, CMC
Interim City Clerk of the City of Stockton
365
T
EAM LEASE FOR ADVENTIST HEALTH ARENA
(HOCKEY TEAM)
B
ETWEEN
CITY OF STOCKTON
And
SMG
And
STOCKTON PRO HOCKEY, LLC
Dated as of April 27,2026.
EXHIBIT 1
DRAFT
366
2 TEAM LEASE FOR ADVENTIST HEALTH ARENA
(HOCKEY TEAM)
THIS LEASE (the “Lease”) is made and entered into as of April 27, 2026 (the "Effective Date"), by and between the City of Stockton (the “City”), SMG (the “Arena Operator”) and Stockton Pro Hockey, LLC, a Wyoming limited liability company (together with its permitted successors and assigns, collectively referred to herein as "Team Owner"). The City, the Arena Operator and the Team Owner are referred to collectively as the “parties” and individually as a “party.”
RECITALS
Team Owner, Arena Operator and City wish to enter into a Lease for Adventist Health Arena for purposes of hosting the home games of Team Owner’s Federal Prospects Hockey League franchise (the “Team”), which will consist of approximately 28 regular season team games with the potential for subsequent playoff games at the Adventist Health Arena located at 248 W. Fremont Street, Stockton, CA 95203 (the “Arena”), in accordance with the terms and conditions of this Lease.
AGREEMENT
NOW, THEREFORE, in consideration of the mutual covenants contained herein, the undersigned parties hereto hereby agree as follows:
1. This Agreement and any subsequent amendments hereto shall constitute the entire and exclusive terms of the Agreement.
2. DEFINITIONS.
(
a) "Additional Insured" has the meaning set forth in Section 29(a). (
b) "Additional Team Games" means, for each Contract Year, any Regular Season Games in excess of twenty-eight (28).
(c) "FPHL" means the Federal Prospects Hockey League.
(
d) "FPHL Season" means the period of time during which the FPHL plays its pre- season, regular season, playoff and all-star games.
(e) "Agreement" has the meaning set forth in the Introduction. (
f) "Applicable Taxes" means, with respect to any revenues, all applicable taxes, assessments or fees required by law to be paid in connection with such revenues. (g) "Arena" has the meaning set forth in the Recitals.
(
h) "Arena Operator" means SMG.
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367
3 (i) "Arena Operator Indemnitees" has the meaning set forth in Section 30(a). (
j) "Available Dates" has the meaning set forth in Section 5(c). (
k) "Base Amount" has the meaning set forth in Section 7(a). (
l) "Club Seat Tickets" means any tickets, including without limitation, to Team Games, which are sold by Arena Operator as part of a Full Club Seat License or by Team Owner as an Unsold Team Club Seat, which entitle the holder thereof to attend an event in a Club Seat at the Arena.
(m) "Commencement Date" has the meaning set forth in Section 3 of this Agreement. (
n) "Contract Year" means the period commencing July 1 of one year and ending on June 30 of the next calendar year.
(o) "CPI" means the Consumer Price Index for Urban Wage Earners and Clerical Workers, Los Angeles - Riverside - Orange County Area, All Items (1982-1984=100) published by the U.S. Department of Labor, Bureau of Labor Statistics ("Bureau"), or if the CPI is no longer published, the Bureau's most comprehensive official index then in use that most nearly corresponds to the CPI. If such subsequent index is calculated from a base different from the base period (1982-1984=100), figures used for calculating the adjustment shall first be converted to the base period used under a formula supplied by the Bureau.
(p) "Cut-off Date" means September 1st prior to each FPHL Season. (
q) "Execution Date" means the date as of which all parties hereto have executed this Agreement.
(r) "Fan Event" has the meaning set forth in Section 6(a)(ii). (
s) "Force Majeure Event" has the meaning set forth in Section 42. (
t) "Full Suite License" means any Luxury Suite License entitling the holder thereof to use a Luxury Suite for all Team Games during the FPHL season as well as other events at the Arena (including without limitation, publicly ticketed concerts, family shows, Team Events and other events). (t.1) "Full Club Seat License" means any Club Seat License entitling the holder thereof to use designated Club Seats for all Team Games during the FPHL Season as well as other events at the Arena (including without limitation, publicly ticketed concerts, family shows, Team Events and other events).
(u) "Game Day Facilities" means those portions of the Arena reasonably necessary for the proper presentation of each Team Game (and Team Events), including without limitation, use of designated hospitality and arena concourse events as reasonably requested for Team Games by Team Owner.
(v) "Net Food and Beverage Revenue" means the total amount of money and receipts, less any Applicable Taxes, tips, cost of sales, labor, contracted labor, non-profit organization labor and concessionaire fee, received and/or charged by or on behalf of any food and beverage concessionaire or any agent or employee of that concessionaire for all sales, cash or credit, made as a result of the sale of food and beverages at the Arena during each Team Game Interval. For the purpose of determining Team Owner's share under Section 8(d)(i), Net Food and Beverage Revenue shall include any net amounts received from any of concessionaire's subcontractors.
EXHIBIT 1
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368
4 (w) "Gross Ticket Revenues" means gross receipts (net of Applicable Taxes) received by Team Owner from the sale (whether sold through season ticket sales, the Ticketing Agent, the box office, or otherwise) of tickets of admission to the Arena for Non-Premium Seats and any tickets for Premium Seats sold under Section 7(b) for inclusion in Full Suite Licenses and Full Club Seats Licenses for Additional Team Games, in each case for Team Games (or Team Events). Gross Ticket Revenues shall include 100% of the full-face value of any tickets for Non-Premium Seats provided by Team Owner to sponsors in fulfillment of their obligations to sponsors. (x) "Hazardous Materials" means any chemical, substance or waste (i) the presence of which requires investigation or remediation under any legal requirements; (ii) which is defined as a "hazardous waste", "hazardous substance", "hazardous material", pollutant, toxic or contaminant under any legal requirements; (iii) which is toxic, explosive, corrosive, flammable, infectious, radioactive, carcinogenic, mutagenic, or otherwise hazardous and is regulated by any governmental authority; or (iv) the presence of which in the Arena causes or threatens to cause a nuisance or injury upon the Arena, to adjacent properties or to the environment or poses or threatens to pose a hazard to the health and safety of persons in or about the Arena, provided that such presence is not due to the actions or negligence of SMG.
(y) "Luxury Suites" means the twenty-four (24) luxury suites located in a restricted area of the Arena.
(z) "Luxury Suite License" means any license or similar right pursuant to which the holder thereof has a right to use a Luxury Suite for a specified period of time or event(s). (aa) "Luxury Suite Tickets" means any tickets, including without limitation, to Team Games, which are sold by Arena Operator as part of a Full Suite License, Team Suite License or by Arena Operator or Team Owner as part of an Unsold Team Suite, which entitle the holder thereof to attend an event in a Luxury Suite at the Arena.
(bb) “Major Sponsors” means a company or organization that financially supports the Arena in exchange for prominent branding and advertising opportunities at the Arena. Currently and at the time of the execution of this Agreement, the Major Sponsors at the Arena are:
1. Adventist Health
2. Coca-Cola
3. CalWater
(cc) "Naming Rights Sponsor" Naming Rights Sponsor means Adventist Health. (
dd) "Non-Premium Seats" means all seats in the Arena as configured for a hockey game, excluding Premium Seats, but, for purposes of "Non-Premium Seats" shall include Unsold Team Club Seats sold by the Team Owner.
(ee) "Non-Team Events" means those events, other than Team Games or Team Events hosted at the Arena.
(ff) "Non-Team Premium Seats" means those Premium Seats sold by Arena Operator - - other than as part of a Full Suite License, Full Club Seat License -- to events other than Team Games or as part of packages that do not include any Team Games or any Team Events. (gg) "Option" has the meaning set forth in Section 3.
(
hh) "Playoff Dates" has the meaning set forth in Section 5(d).
EXHIBIT 1
DRAFT
369
5 (ii) "Premium Seat Licenses" means, collectively, Full Suite Licenses, Full Club Seat Licenses, Team Suite Licenses and Team Club Seat Licenses.
(jj) "Premium Seats" means the Luxury Suites and the Club Seats operated to provide the holders thereof with premium service and amenities.
(kk) "Premium Seat Tickets" means any tickets, including without limitation Team Premium Seat Tickets, which are sold or otherwise provided to persons using Premium Seats and entitle the holder thereof to attend an event in the Arena.
(ll) "Regular Season Games" means those regular season games played at the Arena where the Team is designated as the "home team."
(mm) "Novelties" has the meaning set forth in Section 8(a).
(nn) "Team" has the meaning set forth in the Recitals.
(oo) "Team Club Seat Licenses" means any Club Seat License entitling the holder thereof to use Club Seats for Team Games.
(pp) "Team Club Seat Tickets" means Club Seat Tickets for Team Games.
(qq) "Team Events" means other publicly ticketed hockey events, other than the Team Games, hosted or sponsored by the Team (e.g. FPHL All-Star Game,)
(rr) "Team Game Interval" means the period beginning when the Arena first opens any of its doors for the admission of fans for each Team Game and terminating when the fans are required to leave the Arena following the conclusion of such game or any post-game event permitted under Section 6(b).
(ss) "Team Games" means all games, including preseason, regular season and playoff games, played where the Team is designated as the "home team."
(tt) "Team Indemnitees" has the meaning set forth in Section 30(a).
(uu) "Team Owner" has the meaning set forth in the Introduction.
(vv) "Team Owner Temporary Advertising" has the meaning set forth in Section 9(b).
(ww) "Team Owner Tickets" means tickets for Non-Premium Seats, Unsold Team Club Seats and Unsold Team Suites sold by or on behalf of Team Owner for Team Games and Team Events.
(xx) "Team Premium Seat Tickets" means Premium Seat Tickets for Team Games or Team Events.
(yy) "Team Suite Licenses" means any Luxury Suite License entitling the holder thereof to use a Luxury Suite for all Regular Season Games or all Team Games during the FPHL Season.
(zz) "Team Suite Tickets" means Luxury Suite Tickets for Team Games or Team Events.
EXHIBIT 1
DRAFT
370
6 (aaa) "Term" has the meaning set forth in Section 3 of this Agreement.
(bbb) "Ticketing Agent" shall mean the ticketing agent utilized by Arena Operator from time to time in connection with Arena events, including Team Games, which is Ticketmaster.
(ccc) "Unsold Team Suites" has the meaning set forth in Section 4(b).
(ddd) "Unsold Team Club Seats" has the meaning set forth in Section 4(c) of this Agreement.
2. USE OF ARENA
(a) Agreement to Play Games at Arena. Team Owner agrees to cause the Team to play all Team Games in the Arena during each FPHL Season of the Term on the terms and conditions set forth herein; provided however Team Owner may cause the Team to play up to two (2) Team Games each Contract Year at venues other than the Arena upon advance written notice to Arena Operator. The foregoing obligation is subject to the availability of the Arena on the dates scheduled for Team Games by the FPHL.
(b) Agreement to Provide Arena. Subject to the provisions of Section 5 and Section 6, Arena Operator agrees to make the Arena available for use by Team Owner and the Team during the Term on the terms and conditions set forth herein.
3. TERM. The term of the Agreement (the "Initial Term") shall commence on July 1, 2026 (the "Commencement Date") and is to continue through June 30, 2029. Subject to the written approval of the City, the Arena Operator and the Team Owner shall extend the Initial Term through June 30, 2030 (the "Extended Term"). The Team Owner shall have the Option to extend the Extended Term for another two-year (2) years (the “Option”). The Option shall be exercised in writing by Team Owner to Arena Operator no later than January 1, 2030.
4. PREMIUM SEATING; OTHER AMENITIES.
(a) Sale of Premium Seat Licenses. Subject to Section 7(c) and (d), Arena Operator shall retain the exclusive right to sell Premium Seat Licenses. Arena Operator and Team Owner shall mutually agree (with such agreement not to be unreasonably withheld, conditioned or delayed) on the pricing and other terms of the sale of the Premium Seat Licenses, including without limitation: (i) what events and amenities are included in the Premium Seat Licenses, and (ii) what events and amenities will be offered to Premium Seat License holders at additional cost and the price of such additional events or amenities.
(b) Sale of Unsold Team Suites. No later than the Cut-Off Date, Arena Operator shall notify Team Owner of any Suites that have not been sold as part of a Premium Seat License and that remain unsold as of the Cut-Off Date ("Unsold Team Suites"). Upon such notice, subject to Section 4(e), Team Owner shall have the primary right to sell Unsold Team Suites for Team Games (and Team Events) with such amenities and at such prices as agreed upon by the Arena Operator.
(c) Sale of Unsold Team Club Seats. No later than the Cut-Off Date, Arena Operator shall notify Team Owner of any Club Seats that have not been sold as part of a Premium Seat License and that remain unsold as of the Cut-Off Date ("Unsold Team Club Seats"). Team Owner shall retain the exclusive right to sell Unsold Club Seats at such prices as determined by Team Owner; provided that the price of such Unsold Team Club Seats shall not be lower than the lowest ticket price offered for a comparably located Club Seat sold as part of a Full Club Seat License. Team Owner shall have the sole discretion to determine from time to time the pricing and other terms of sale with respect to Unsold Team Club Seats, provided that such sale shall only involve the sale of such Unsold Team Club Seats EXHIBIT 1
DRAFT
371
7 for Team Games (whether on an individual, package or season ticket basis) and Team Events and shall include the right for such Unsold Team Club Seats holders to access that certain club space, currently known as The Club at no additional cost. Subject to the foregoing, Team Owner shall provide in advance of the season proposed guidelines and club amenity schedules, for Arena Operator's review and approval.
(d) Sale of Non-Team Premium Seats. Subject to Section 7(e), Arena Operator shall retain the exclusive right to sell Non-Team Premium Seats (including any Luxury Suites or Club Seats that (i) were not sold as part of a Team Premium License; and (ii) are for use during Non-Team Events (which, for clarity, does not include Unsold Team Suites and Unsold Team Club Seats). Subject to the foregoing sentence, Arena Operator shall retain sole discretion in establishing the pricing and other terms of the sale of the Non-Team Premium Seats, including without limitation: (i) what events and amenities are included in the sale of such Non-Team Premium Seats, and (ii) what events and amenities will be offered to Non-Team Premium Seat Seats.
(e) Marketing Coordination. Arena Operator and Team Owner agree to meet and confer in order to coordinate the marketing of Premium Seats (other than Unsold Team Club Seats) by Arena Operator and the marketing of Non-Premium Seat tickets, Unsold Team Club Seats and Unsold Team Suites by Team Owner and to cooperate with each other in such undertakings. In furtherance of the foregoing, (i) upon the reasonable request of Arena Operator, Team Owner shall mail, at Arena Operator's expense, marketing materials for Premium Seats to the Team season ticket holders, and (ii) Arena Operator shall consider in good faith requests by Team Owner for information to be utilized by Team Owner for marketing purposes provided, however, that Arena Operator shall have no obligation to provide any information the disclosure of which would, in the reasonable judgment of Arena Operator, adversely affect the confidentiality, privacy or proprietary interests of Arena Operator or its clients.
(f) Use of Suite. Subject to Arena Operator's standard terms and conditions for Luxury Suite use applicable to other users of Luxury Suites in the Arena, Team Owner shall have the use of two (2) Luxury Suite during each of the Team Games at no charge to Team Owner during each FPHL Season during the Term.
5. SCHEDULING.
(a) Team shall have priority over other events, but not over the current basketball tenant for the selection of dates for use of the Arena for Team Games, provided however, subject to Section 5(b), (c) and (d) below, Arena Operator retains the right to reserve dates to allow for other programming at the Arena, including dates for possible football tenant, concerts, family shows, or other sporting events, during the Term, including those that are under multiyear contracts.
(b) Other Events. Team Owner acknowledges that from time-to-time Arena Operator may schedule other events, such as concerts, family shows, basketball games or other sporting events during the FPHL Season. Subject to Section 5(a), (c) and (d), Team Owner agrees that Arena Operator may reserve a reasonable quantity of dates in order to accommodate such other events. Team Owner agrees that if such event has been scheduled on a date prior to a Team Game being scheduled on that date, subject to Arena Operator's obligations under Section 5(c) and (d) below, then such date shall not be available for a Team Game
(c) Regular Season. Each Contract Year during the term hereof, on or before the date mandated by the FPHL, Arena Operator shall submit to Team Owner a list of dates on which the Arena would be available for Regular Season Games of the Team during the next FPHL Season ("Available Dates"). Arena Operator will ensure that the Available Dates submitted to Team Owner include a minimum of twenty (20) weekend dates (i.e. Thursdays, Fridays, Saturdays and Sundays) during the FPHL Season and fifteen (15) mid-week dates (i.e. Mondays through Wednesdays) during the FPHL Season. Once the Available Dates are submitted by Arena Operator to the FPHL, Arena Operator may EXHIBIT 1
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8 not modify such Available Dates or schedule an event on such Available Date prior to receiving the complete and final FPHL schedule for the ensuing FPHL Season, except that, notwithstanding the foregoing, Arena Operator shall have the right, by providing written notice to Team Owner during the period between March 1st and the following June 30th (or such earlier date which is thirty (30) days prior to the release of the complete and final FPHL schedule) of each Contract Year, to reclaim up to five (5) Available Dates, for purposes of hosting live entertainment events at the Arena. Within forty- eight (48) hours after Team Owner receives its final, complete schedule from the FPHL for the ensuing FPHL Season, Team Owner shall submit its final, complete schedule to Arena Operator for the ensuing FPHL Season at which point all unscheduled Available Dates shall be released to Arena Operator without further notice or action and Team Owner will have no priority for use of the Arena on such dates. Once a Team Game has been scheduled on an Available Date, Arena Operator may not schedule a conflicting event at the Arena on such date (except in accordance with this section or Section 6 below); provided, however, that if a scheduled Team Game is cancelled or postponed for any reason (including without limitation as a result of an actual or threatened strike, Lock-out or other labor dispute), Arena Operator shall be entitled to schedule another event at the Arena in lieu of the Team Games unless Team Owner agrees to pay a forty-five thousand dollar ($45,000) reservation deposit to continue to hold such date. Notwithstanding the foregoing, no such deposit shall be required, and the date shall continue to be held for Team Owner, where the cancellation or postponement results from a Force Majeure Event or from any act or omission of Arena Operator or the condition of the Arena. Such deposit shall be refunded to the Team Owner in the event that a Team Game occurs on the date in question (otherwise the full amount of the deposit shall be retained by Arena Operator). If Arena Operator has the opportunity to schedule a significant event (such as a major concert, family show or sporting event) at the Arena on the same date for which a Team Game has been scheduled pursuant to the final, complete schedule from the FPHL, then, upon request from Arena Operator to reschedule such Team Game, Team Owner agrees to consider such request in good faith. Notwithstanding anything herein to the contrary, in no event shall any Team Game scheduled for an Available Date be rescheduled without (i) approval from the Team Owner and the FPHL; and (ii) payment to the Team of any and all expenses reasonably incurred in connection with such rescheduling for each such rescheduled Team Game, which expenses shall not exceed $10,000 for each such rescheduled Team Game.
(d) Playoffs. Each Contract Year during the Term, upon receipt by Team Owner of written notice from the FPHL of dates to be reserved for such season's playoff games for the Team, Team Owner shall immediately notify Arena Operator of such dates and Arena Operator shall reserve all mutually agreeable dates for use by Team Owner ("Playoff Dates"); provided however, Arena Operator agrees to reserve as available Playoff Dates six (6) out of each fifteen (15) consecutive dates during the period between April 1 to June 15 each FPHL Season unless and until Team is eliminated from qualification for the Playoffs. Within twenty-four (24) hours after Team Owner receives notice from FPHL of which Playoff Dates will not be used for the Team's playoff games, Team Owner shall notify Arena Operator of such released dates, which dates shall be released to Arena Operator without further notice or action and Team Owner will have no priority for use of the Arena on such dates.
6. USE OF FACILITIES.
(a) Game Day Use of Facilities.
(i) Except as otherwise provided herein, during the presentation of Team Games, Team Owner shall have the right to use the Game Day Facilities in a manner consistent with the presentation of FPHL minor league hockey games. Team Owner shall not unreasonably interfere with the use by others of the areas of the Arena that are not Game Day Facilities.
(ii) Subject to Section 6(a)(iii), Team Owner shall have (A) the exclusive use of the Game Day Facilities for morning skate, between the hours of 8a-11a and a period commencing five (5) hours before the commencement of such Team Game on the day of each Team Game and ending EXHIBIT 1
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9 two (2) hours after the conclusion of such Team Game, unless otherwise agreed, (B) nonexclusive access to the Game Day Facilities at all other times of the day of each Team Game (provided that such non- exclusive access shall be subject to availability and shall not unreasonably interfere with other activities at the Arena, including without limitation the changeover of Game Day Facilities from their prior use) and (C) non-exclusive access to Game Day Facilities on days other than the days of Team Games (provided that such non-exclusive access shall not occur on days when there are major events hosted at the Arena and shall not unreasonably interfered with other activities at the Arena). During the periods under (A) and (B) above, Team Owner shall be entitled to conduct hockey games (including without limitation Black and White Games, Alumni Games etc.), promotional events (subject to the provisions of Section 9 below), clinics, half-time entertainment and other similarly constituted events. During the period under (C) above, Team Owner shall be permitted access to the Arena for the purpose of conducting tours (of the Arena and locker rooms), prospecting events and events in premium areas (as mutually agreed) provided such access or use does not interfere with any such non-Game event being hosted at the Arena at such time. Subject to availability, Arena Operator will use commercially reasonable efforts to provide Team Owner and the visiting team with use of the Game Day Facilities (including ice rink) during the morning of each Team Game and at other times during the day of each Team Game for practice sessions. In addition, the Team Owner shall be entitled to exclusive use of the Game day Facilities, including the ice surface, for the purpose of hosting six (6) fan-based events ("Fan Events") at the Arena (on dates and at times mutually agreeable to the parties). Arena Operator shall not charge Team Owner any rent or other fees in connection with such Fan Events provided however Team Owner shall be responsible for paying reasonable incremental out-of-pocket staffing and other direct event related expenses incurred by Arena Operator in connection with such Fan Events.
(iii) Notwithstanding the provisions of this Section 6(a), Arena Operator shall be allowed to schedule another event at the Arena provided that (A) such event shall not unreasonably restrict Team Owner's use of the Game Day Facilities (including without limitation the ice rink) at any time during the period beginning five (5) hours prior to the scheduled starting time of a Team Game and ending at such time as is reasonably necessary to allow the fans, the visiting team, and Team Owner and its agents to vacate the Game Day Facilities following such Team Game, and (B) Arena Operator shall ensure that Team Owner and its agents (including the production personnel for game telecasts) have reasonable time and access to complete preparation for the presentation of the Team Game.
Notwithstanding the other provisions of this Section 6(a)(iii) Team Owner shall use its best efforts to cooperate with the scheduling of doubleheader dates, including without limitation, (i) agreeing to reasonable deviations from the standard scheduled starting times for the Team Games on such dates (e.g. 8:00p.m. instead of 7:30p.m.) and (ii) in the case of an afternoon Team Game, using best efforts to, and to cause Team Owner's agents to, make the Game Day Facilities available for the other event as soon as is reasonably possible after the conclusion of the Team Game. Any requested scheduling changes by Arena Operator shall be subject to the approval of Team Owner, such approval not to be unreasonably withheld or delayed.
(b) Non-Play Areas. Subject to Section 22, Team Owner shall have a license for non- exclusive ingress and egress on game days through the common area and public corridors of the Arena necessary to enter and exit the Game Day Facilities. No charitable or political collections shall be made or attempted by Team Owner in the Arena, except for the Team's foundation's current silent auction table event, any 50/50 raffles conducted in accordance with applicable law as well as certain charitable events periodically conducted by Team Owner with the prior approval of Arena Operator, which approval shall not be unreasonably withheld.
(c) Office Space. Team Owner will be responsible for securing and paying for their own office space outside of the Arena. Should the current basketball tenant vacate arena offices Team Owner will be presented with first right of refusal to utilize the vacated offices.
7. BASE PAYMENT AND PREMIUM SEAT PAYMENTS.
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10 (a) Base Payment for the Arena.
(i) During the Term of this Agreement, Team Owner shall pay to Arena Operator rent in an amount of twenty-one thousand dollars ($21,000.00) per [Contract Year / Team Game] (the "Base Amount"). The Base Amount shall be paid in accordance with the provisions of Section 12. Each subsequent year the base rent shall increase by three percent (3%). In addition to the Base Amount, all single game tickets sold for the Team Game shall be subject to a $4.00 facility fee; all partial season and group tickets shall be subject to a $2.00 facility fee, increasing annually by $0.25; all full season tickets for the duration of the initial term shall be subject to a $1.00 facility fee.
(b) Arena Operator shall pay the Team Owner a per-paid ticket rebate:
$1 per full and group priced ticket (1-1,000)
$2 per full and group priced ticket (1,001-2,000, retroactive)
$3 per full and group priced ticket (2,001-9,500, retroactive)
The per ticket rebate shall be paid as part of the event settlement procedure as laid out in SECTION 12
(c) Revenues from Unsold Team Suites.
(i) Team Owner and Arena Operator shall have the right to sell all Unsold Team Suites. Gross revenues generated from the sale of Unsold Team Suites shall be shared as follows: twenty percent (20%) to Arena Operator ("Arena Operator Percentage Share") and eighty percent (80%) to Team Owner ("Team Owner Percentage Share"). Team Owner agrees that it will provide Team Suite Tickets for inclusion in Unsold Team Suites at no expense.
(d) Revenues from Non-Team Premium Seats. Subject to Section 4(d), Arena Operator shall have the exclusive right to sell all Non-Team Premium Seats and retain one hundred percent (100%) of the revenue generated from the sale thereof.
(e) Ticketing Arrangement.Team Owner agrees to be bound by the terms and conditions of any agreement to which the Arena Operator grants to the Arena Operator's Ticketing Agent the exclusive right to sell tickets to events at the Arena.
(f) Capital Improvements.
(i) Capital Repair and Replacement. Under its authority granted by the City, Arena Operator, shall timely complete all capital repairs required to be made to the Arena or the replacement of furniture, fixtures or equipment located therein, including concession equipment, and to maintain these items in operating condition. Additionally, the City, Arena Operator and Team Owner shall meet, confer and cooperate in good faith on decisions with respect to the annual Capital Repair and Replacement program for the Arena prior to the commencement of each Contract Year.
(ii) Emergency Repairs. Subject to Section 43(a), in the case of an emergency which poses an imminent threat to the health, safety and welfare of the general public or the structural integrity of the facility, Arena Operator may take such actions which the Arena Operator reasonably determines to be necessary, including spending and committing funds from the Arena Operator. If possible, Arena Operator shall inform and obtain City consent prior to responding to an emergency. If, due to the nature of the emergency, Arena Operator is unable to obtain the City prior consent, Arena EXHIBIT 1
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11 Operator shall contact the Parties immediately before such action to inform of the emergency and the proposed actions to remedy the emergency situation, and seek their consent unless it is not practically possible due to the urgency of the situation.
(iii) Game Day Expenses. Arena Operator, at its sole cost and expense (and not subject to reimbursement by the Team Owner), shall provide the following: a reasonable and customary number of ushers, ticket takers, ticket sellers, Zamboni drivers, operations staffing, event ice crew, security officers, front of house police officers and firemen (subject to the following sentence) and patron EMT/medical personnel, cleaning staff: electrician box office personnel (game day and non-game day), event set-up and other necessary operational personnel, operation of the box office and ticket office during business hours on game days and non-game days, cleaning of the building before and after the Team Games, set up and changeover of the ice playing surface and utilities, including electricity, gas and hot water. The Base Amount shall exclude staffing overtime, additional staff for private parties and/or functions used in conjunction with the Team Game, sound & lighting equipment, stagehands, loaders, spotlight operators, production, camera / spotlight operators, wardrobe, catering, broadcast fees or staffing, equipment rentals, video board use or staffing, ASCAP/ BMI/SESAC or similar music royalties, and all box office credit card fees and/or expenses (collectively, "Team Owner Expenses" and together with the Base Amount, the "Event Expenses"), all of which shall be the sole responsibility of Team Owner. Any and all Event Expenses shall be paid by Team Owner pursuant to the terms and in accordance with Section 12 herein.
8. OTHER REVENUES AND INCOME.
(a) Novelties. During the Term, Team Owner shall be entitled to retain one hundred percent (100%) of the gross revenues from the sale of merchandise, programs and novelties ("Novelties") and shall be responsible for all costs in connection with such sales.
(b) Radio, Television and Motion Picture Income. Team Owner shall own all of the rights and revenues relating to all radio, television and other forms of transmission of verbal and visual depictions, whether now existing or that may exist in the future of Team Games, including but not limited to any Internet, pay TV, cable TV and digital TV broadcasts, and shall have the exclusive right to take, or permit others to take, motion pictures of Team Games and to retain all revenues relating thereto; provided, however, that Team Owner, the visiting FPHL teams and the FPHL, as applicable, or any of their agents or assignees producing or broadcasting Team Games on radio, television, motion pictures or other technologies, (i) shall be required to utilize production facilities in the Arena for the first feed out (provided that such production facilities must be available on reasonably competitive terms and conditions), AND (ii) shall pay such facility usage and other charges as may reasonably be charged by Arena Operator and/or the operator of the Arena Operator's production facilities (such charges to be consistently applied as those incurred by other the Arena anchor sporting tenants) in connection with the production and transmission of broadcasts from the Arena.
(c) Parking.
(i) Parking. LAZ controls parking on behalf of the City
(ii) Team Owner's Parking Spaces. During Team Games, Team Owner shall be entitled to approximately thirty (30) staff and player parking spaces at no cost in Arena loading dock.
Parking could be reduced with team buses and production vehicles.
(d) Food and Beverage.
(i) Arena Operator and its designated concessionaires shall control all food and beverage concession sales in the building and Team Owner shall not permit any third party to sell or EXHIBIT 1
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12 give-away any food and beverage products on the premises of the Arena at any time. Arena Operator will reasonably cooperate (and will cause its concessionaire to cooperate) with the Team’s efforts to utilize F&B promotions, consistent with best practices, in connection with the marketing of tickets. In addition, Arena Operator and Team Owner agree that during any Team Games, upon reasonable advance notice by the Team Owner, the Arena shall conduct and honor a Team Owner promotion by which hot dogs and soft drinks may be purchased upon the presentation of a voucher provided to customers by or on behalf of the Team Owner provided that, in exchange for the foregoing, Team Owner shall pay to Arena Operator or its concessionaire the amount of ten dollars ($10) for each hot dog/soft drink voucher requested.
(e) Catering. Team Owner agrees to use Arena Operator concessionaire for all catering needs, both front of house and back of house. If requested, post-game team meals will be fifteen dollars ($15) per player/coach (excluding sales tax) during year one, increasing annually by three percent (3%).
Concessionaire will be responsible for determining menu.
(f) Food and Beverage Rebate. Concessions rebate of fifteen percent (15%) of net food and beverage when paid attendance exceeds 2,500 per the game audit. Net is described as Gross Sales less Sales Tax, Tips, Cost of Sales, Labor, Temporary Labor, NPOs, Concessionaire Fee.
9. ADVERTISING.
(a) Score Board Advertising Revenues. Team Owner may have primary use of the score board at the Arena during each Team Game Interval, in accordance with policies and procedures determined by Arena Operator; provided, however, that Team Owner shall provide Arena Operator with reasonable access to the score board during each Team Game Interval for the purpose of promoting other events and activities in the Arena. Arena Operator shall retain 100% of the income from any fixed advertising on the main scoreboard unit at the Arena (including any rotating sign advertisements thereon and, other than the main scoreboard unit at the Arena, Arena Operator retains rights to and control over any LED signage). Team Owner shall not be charged for the use of the score board except for the cost of personnel required in connection with such use.
(b) Arena Advertising. Unless otherwise agreed by the parties and except as otherwise provided in this Agreement, Arena Operator shall control and retain the revenue from all advertising and building signage, including the center ice position granted to the Naming Rights Sponsor. Team Owner shall have no right to sell advertising on signs, posters or other printed display advertising in the Arena except as expressly permitted in this Section 9(b). Subject to this Section 9, Team Owner shall be entitled to temporary advertising and promotional signage rights within the Arena bowl or the board ring (e.g., ice resurfacing machines, dasher boards, scoreboard identification and messages, board ring messages and advertising, public address system announcements, game or event program advertising, and event related promotions (e.g., event t-shirts) in the ice surface (other than in the center ice position), on the main scoreboard unit, and on temporary roll up advertising. ("Team Owner Temporary Advertising”) Unless otherwise agreed by the parties and except as otherwise provided in this Agreement, Team Owner shall retain one hundred percent (100%) of the revenues from all Team Owner Temporary Advertising.
Team Owner Temporary Advertising shall not include any permanent or fixed advertising anywhere in the Arena or any advertising (whether temporary or permanent) in any areas outside the bowl and outside the Arena building (e.g. inside and outdoor concourses, lobbies, indoor plaza, outside public plazas, and the parking lots). With respect to the Team Owner Temporary Advertising, Team Owner agrees that (i) Team Owner Temporary Advertising signage and promotions shall be subject to the approval of Arena Operator (such approval is subject to advertising and promotional exclusions as set forth in agreements with the Arena’s Major Sponsors and will not to be unreasonably withheld by the Arena Operator), and (ii) the Arena's Major Sponsors shall be offered a right of first negotiation with respect to the purchase of such team sponsorship or advertising rights for their category.
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13 (c) Naming Rights. Team Owner recognizes that the licensing of naming rights in the Arena Operator is fundamental to the operation of the Arena and that the ability of Arena Operator to grant strong exclusivity rights to the Naming Rights Sponsor is essential to the marketability of those naming rights. Based on the foregoing, Team Owner agrees that for the term of the agreement with the current Naming Rights Sponsor (Adventist Health), Team Owner will not sell or otherwise provide Team Owner Temporary Advertising to any competitor of Adventist Health (meaning any provider of healthcare [including physical, mental, spiritual and social wellness], clinics or hospital services), provided however, following the expiration of the current naming rights agreement with Adventist Health, and with respect to any Naming Rights Sponsor that succeeds Adventist Health, (i) the center circle underneath the main ice surface of the Arena shall include the name of the Arena (substantially as such center-ice signage is currently configured from Adventist Health); and (ii) in the event that such succeeding Naming Rights Sponsor wishes to secure Team Owner Temporary Advertising rights (including category exclusivity) from Team Owner, provided that Team Owner does not already have a Team sponsor in the same sponsorship category as such future Naming Rights Sponsor, Team Owner agrees to provide such future Naming Rights Sponsor an opportunity to present an offer to secure such Team Owner Temporary Advertising rights. If the succeeding Naming Rights Sponsor makes such an offer, then upon receipt of such offer by Team Owner, Team Owner shall negotiate with such succeeding Naming Rights Sponsor in order to try to reach agreement on the terms of the proposed sponsorship/advertising arrangement. If no agreement is reached by the parties, Team Owner may not enter into a sponsorship/advertising agreement that would conflict with the Naming Rights Sponsor. In addition, Team Owner agrees (i) to refer to the Arena by the name designated by Arena Operator and (ii) to use its commercially reasonable efforts to cause its and the FPHL’s employees, sponsors, broadcasters, subcontractors and other agents to refer to the Arena by such name.
(d) Major Sponsors. Arena Operator shall notify Team Owner of the name of any party who becomes a Major Sponsor fourteen (14) business days after entering into an agreement with the party who becomes a Major Sponsor. Team Owner recognizes that the sale of sponsorships to Major Partners is fundamental to the operation and financing of the Arena and that the ability of Arena Operator to grant naming and other exclusivity rights to each of the Major Partners is essential to the marketability of the Major Sponsors’ sponsorships based on the foregoing, Team Owner shall provide each of the Major Sponsor, in categories not otherwise occupied by an existing Team sponsor, with a right to negotiate for the purchase of Team Owner Temporary Advertising in such Major Sponsor’s category on terms and conditions to be mutually agreeable to Team Owner and such Major Sponsor. If, despite the good faith effort of the parties, Team Owner and such Major Sponsor are unable to reach unable to reach agreement on the terms and conditions under which such Major Sponsor would purchase such rights, Team Owner may not enter into a sponsorship/advertising arrangement that would conflict with exclusivity rights established between the Arena and the Major Sponsor.
(e) Advertising Subject Matter. If Arena Operator objects to an in-Arena advertisement sold or displayed by Team Owner during a Team Game on the grounds that such advertisement is not in good taste, as determined by Arena Operator in its sole discretion, Arena Operator shall notify the Team Owner of such objection and, if necessary, cause such advertisement to be removed.
10. TICKET SALES.
(a) Box Office Expenses. Other than sales of Team Owner Tickets sold by Team Owner, all other Premium Seat Ticket sales (excluding, for clarity, any Unsold Team Club Seats and Unsold Team Suites sold by Team Owner) relating to the presentation of Team Games shall be made through the Ticketing Agent, Arena's box office, and other locations selected by Arena Operator. Arena Operator shall provide designated personnel of Team Owner with reasonable access to the Arena box office, consistent with the access provided to the designated personnel of other anchor sporting tenants.
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14 (b) Ticket Control. At least ten (10) days before Team Owner desires the sale of the tickets and admissions to begin for the sale of individual games as opposed to season seats, it shall deliver to the Ticketing Agent all information required for Arena Operator's sale of tickets and admissions for Team Games. Team Owner will, at Team Owner's expense, be responsible for the printing and distribution of Team Owner Tickets. Arena Operator will, at Arena Operator's expense, be responsible for the printing and distribution of Premium Seat Tickets (other than, for clarity, Unsold Team Club Seats and Unsold Team Suites sold by Team Owner) provided that Team Owner will provide Arena Operator bar codes for the print files for such Premium Seat Tickets for distribution to annual Premium Seat licensees. Each Arena Operator and Team Owner will be responsible to the other for an accurate accounting of all tickets and admissions to Team Games sold by it, including through the Ticketing Agent. Arena Operator shall require the Ticketing Agent to render a complete accounting of its ticket sales for Team Games to Arena Operator and Team Owner.
(c) Ticket Administration. Arena Operator, with the assistance of Team Owner, shall control the ticket inventory for Premium Seat Ticket sales (including for Team Games), except with respect to Unsold Team Suites to be sold by Team Owner. Subject to the terms and conditions of Arena Operator's agreement with the Ticketing Agent, Team Owner shall control ticket inventory for Team Owner Ticket sales for Team Games. Arena Operator shall control Non-Team Premium Seat ticket inventory.
(d) Information Sharing. Arena Operator agrees to provide Team Owner with any information collected by Arena Operator in connection with the sale of Team Non-Premium Seats (including without limitation any information provided to Arena Operator by the Ticketing Agent).
11. COMPLIMENTARY TICKETS.
(a) Arena Operator shall be entitled to thirty (30) complimentary tickets to Team Games (and Team Events) in locations reasonably acceptable to Arena Operator.
(b) Team Owner shall be entitled to two hundred (200) comps per game without incurring the facility fee. Up to four (4) games a year Owner shall be allowed up to four hundred (400) comps per game for pre-determined promotional nights such as Season Ticket Holder redemption night at end of season.
(c) Team Owner will make up to one hundred and fifty (150) additional tickets to Team Games (and Team Events) available to Arena Operator for purchase at face value.
12. SETTLEMENT.
(a) Arena Operator shall collect and serve as the repository of all revenue with respect to each Team Game derived from food and beverage and ticket sales. Within three (3) days after each Team Game, Arena Operator shall complete the settlement of revenues for such Team Game by paying to the Team Owner the portion of the revenues to which the Team Owner is entitled pursuant to this Agreement, and by providing the Team Owner with a settlement statement in form and content consistent with standard industry practice for the settlement of event revenue.
(b) If, following a Team Game, there is a shortfall between the amount that is determined by the Arena Operator to be owed to the City with respect to such Team Game for the items described above and the amount of Gross Receipts then received by the Arena Operator and the Arena Ticket Service for such Team Game, the Arena Operator shall notify the Team Owner and inform the Team Owner of the amount of such shortfall (a “Shortfall Amount”). The Team Owner shall deposit the Shortfall Amount for such Team Game with the Arena Operator within seven (7) business days of receipt of such notice.
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15 (c) Taxes.
(i) Team Owner shall pay to any city or other applicable jurisdiction in which the Arena is located any applicable sales, admission or similar fees or taxes on all receipts for Team Games, and hereby indemnifies and agrees to hold Arena Operator harmless from any and all claims, demands, actions, assessments and proceedings relating in any way to admissions taxes or fees (but only to the extent that Arena Operator has given Team Owner any ticket proceeds that were paid to Arena Operator and that relate to such admissions taxes), and Team Owner indemnifies and holds Arena Operator harmless from and shall pay upon demand all costs, expenses and attorneys' fees incurred by either or both of them in defense of any such claims.
(ii) As Team Owner shall never have exclusive control of the Arena, Team Owner believes that Team Owner shall not owe possessory interest tax on its interest in the Arena. In the event that such taxes are levied, Team Owner and City shall cooperate to dispute any such proposed levy, but ultimately, Team Owner is solely responsible for such taxes as may be deemed appropriate.
The Team Owner shall have the right to contest in good faith, any such taxes or assessments. In the event it is determined by the appropriate body that such taxes are due, the Team Owner shall immediately pay such taxes or assessments. If any such taxes or assessments are not paid when due, then the City may, in addition to any other remedy granted to the City under this Lease, withhold the amount of such unpaid taxes or assessments from revenue due to or otherwise payable to the Team Owner by City, and apply the withheld amount toward the payment of such unpaid taxes and assessments.
13. PROMOTION AND PUBLICITY.
(a) Designation of Home Arena. During the Term, all material developed to directly promote the sale of tickets to Team Games, whether created for newspaper, outdoor advertising, handbills or otherwise prepared by or for Team Owner shall contain reference to the Adventist Health Arena as the home Arena of the Team and shall be approved as to the form of the Arena's logo and/or name only in advance, in writing, by Arena Operator, which approval shall not be unreasonably withheld or delayed as to the form of such logo and/or name; provided, however, that such material must use the Arena's established logo-type, trademark or service mark and must conform to Arena Operator policies for use such, where applicable and shall be subject to the terms and conditions of the City Operating Agreement. Notwithstanding the foregoing, Team Owner shall not be obligated to include references to the Adventist Health Arena in all television or radio advertising, provided that Team Owner shall use commercially reasonable efforts to include such references where appropriate.
(b) Use of Team's Name and Logo. During the Term, Arena Operator may use the name and logo of the Team and of Team Owner, without charge, in connection with promotion of the Arena subject to Team Owner's prior approval, which approval shall not be unreasonably withheld or delayed as to the form of such name and logo. Such promotional materials must use Team Owner's established logo type, trademark or service mark.
(c) Agreement to Publicize Team Games. Arena Operator agrees to publicize and promote each Team Game at no cost to Team Owner through its in-house promotional outlets such as its public address system, score board, message board, concourse TVs, or the Arena publication at any time as such publication might exist at Arena Operator's sole discretion in the future.
14. BUILDING STAFF.
(a) Cost of Game Day Building Services. For each Team Game, Arena Operator shall, at no additional charge to Team Owner, provide customary event staffing, for Team Games, including, EXHIBIT 1
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16 but not limited to, ticket sellers, ticket takers, ushers, security guards, porters, janitorial, and such other personnel as Arena Operator, in its reasonable discretion, shall deem necessary and including any staffing required in connection with pre- and post-game use of the Arena by Team Owner; provided, however, that Team Owner shall not pay for costs associated with changing the Game Day Facilities from a prior use before, or over to another use following, a Team Game. Such personnel shall be provided by or through Arena Operator only; provided, however, that Team Owner shall be entitled to provide its own personnel for certain game day functions, provided further, however, that any such personnel who will be operating any part or all of an item of building equipment, such as the scoreboard, shall first be approved by Arena Operator.
(b) Basic Security. Subject to Section 14(a), the Arena Operator shall provide, at its sole cost, full-time building security for the Arena.
(c) Staffing Levels. Arena Operator shall consult with Team Owner regarding game day staffing and Team Owner may request that Arena Operator increase game day staffing, reduce game day staffing, or, subject to applicable contractual or legal constraints, replace game-day staff performing at an unacceptable level. Arena Operator shall in good faith consider such a request, but Arena Operator shall have no obligation to comply with such request.
(d) General Event Expenses. Except with respect to Team Owner Expenses and those incremental expenses associated with Fan Events as set forth Section 6(a)(ii), for which Team Owner shall be solely responsible for paying, any other costs and expenses incurred in connection with Team Games at the Arena shall be the responsibility of Arena Operator_
15. PUBLIC ADDRESS SYSTEMS.
Arena Operator shall furnish the Arena's public address and sound systems for Team Games. Team Owner shall have exclusive use of the public address system and sound system during Team Games; provided, however, that (a) the public address system and sound system shall be operated according to reasonable rules and regulations established by Arena Operator and shall not be used for announcements which violate the exclusivity provisions set forth in Section 9, et al. Team Owner shall provide Arena Operator with reasonable access to the public address system and sound system during Team Games in order to make announcements, descriptions and advertisements concerning other or future events being or to be held in the Arena or elsewhere to the extent such event is promoted by Arena Operator or an affiliate of Arena Operator.
16. CLEANING AND OPERATION.
(a) Cleaning. Arena Operator, at no cost to Team Owner, shall clean the Game Day Facilities after each Team Game.
(b) Ice Rink and Equipment. The Arena Operator shall provide the professional ice rink for the main playing surface of the Arena for Team Games. Arena Operator shall at all times maintain and operate the professional ice sheet and the hockey equipment, including the ice resurfacing machine, hockey nets and the boards and glass in conformity with a standard comparable to that generally found at other FPHL arenas and in compliance with FPHL requirements generally applicable to all FPHL arenas.
(c) Equipment Storage. Arena Operator shall store, at no additional cost to Team Owner, the ice rink and hockey equipment during each season; provided, however, that Team Owner shall be responsible for any storage of FPHL game systems and other equipment storage at all other times of the year.
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17 17. LOCKER ROOMS.
(a) Locker Rooms. Arena Operator shall, at no extra cost to Team Owner and based on availability, make available for the Team, visiting team and officials dressing rooms as required by FPHL rules and regulations for each Team Game. Locker room used by the Stockton Kings will not be available during their season.
(b) Maintenance of Locker Rooms. Arena Operator shall maintain the Team locker room and the visiting and officials' dressing rooms on a game-by-game basis, in compliance with FPHL requirements, and at the sole cost of Team Owner.
18. PERMITS.
Team Owner agrees to furnish at its expense such governmental permits and other licenses and permits as may be required for Team Games, including, but not limited to, business licenses or music licenses (e.g., ASCAP and BMI) required specifically for the presentation of Team Games, but excluding any permits required for the operation of the Arena which shall be provided by Arena Operator.
19. COMPLIANCE WITH LAWS.
(a) Governmental Rules. Team Owner shall comply with the requirements of all laws, orders, rules and regulations of Federal, State, County and Municipal authorities and with any lawful direction of public officers which shall impose any duty upon Arena Operator or Team Owner and which pertain specifically to the presentation of Team Games; provided, however, that such expense of compliance thereof shall be shared equally by Arena Operator and Team Owner if it is required generally for the operation of the building or if building alterations or improvements are required. Team Owner shall not use the Arena for any political purpose.
(b) Fire Code Requirements. Team Owner shall comply with all rules, orders, regulations or requirements of applicable building and fire code enforcement authorities having jurisdiction over the construction and/or operation the Arena and shall not do or permit anything to be done in or about the Arena or bring or keep anything therein except as permitted by such authorities. No gasoline, acetylene or other fuel or other combustible will be permitted in the Arena without the approval of Arena Operator, which may be withheld in Arena Operator's sole discretion. Any decorating or other work and the material therefor, done or furnished by Team Owner shall be subject to approval by Arena Operator and, if necessary in Arena Operator's sole judgment, the building and fire code enforcement authorities having jurisdiction over the construction and/or operation the Arena and unless so approved, installation thereof may be prevented or, if having already been installed, removed by Arena Operator.
All decorations and other combustible materials must be fireproofed, and Team Owner shall deliver to Arena Operator a flame/firing proofing certificate in the form specified or required by and satisfactory to any building and fire code enforcement authorities having jurisdiction with respect thereto, if necessary, under applicable law.
(c) ADA Compliance. Arena Operator shall comply with and shall cause the Arena and the operation of the Arena to comply with, the Americans with Disabilities Act (the "ADA") at all times during the Term. Team Owner shall comply with, and shall cause the operation of the Team's business, including, without limitation, the sale of Non-Premium Seats for Team Games to patrons with disabilities, to comply with the ADA at all times during the Term.
20. ALTERATIONS.
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18 Team Owner shall not mark, paint, drill into or in any way mar or deface any part of the Arena. Other than Team Owner Temporary Advertising, Team Owner shall not display or erect any lettering, signs, pictures, notices or advertisements upon any part of the outside or inside of the Arena or make any alterations or improvements in or to the Arena without the prior written approval of Arena Operator, which may be withheld in Arena Operator's sole discretion. Any improvements which may be made by Team Owner in any part of the Arena, which become fixtures shall become the property of the Arena and, upon expiration of the Term, shall be surrendered by Team Owner and shall remain with the Arena.
21. ENTRANCES AND EXITS.
The entrances and exits of the Arena shall be locked or unlocked during Team Games as Team Owner may direct, subject to regulations of Federal, State, County and Municipal authorities, to any lawful direction of public officers, and Arena Operator's approval. The Arena Operator shall, at Team Owner's expense, at all times during Team Games maintain guards and special police, as designated by Team Owner, at all exits and entrances of the Arena when such exits and entrances are unlocked. Articles, fittings, fixtures, materials and equipment shall be brought into or removed from the Arena only at entrances and exits designated by Arena Operator. The total number and weight of vehicles which may enter the Arena at any one time shall be conclusively determined by the Arena Operator.
22. NON-EXCLUSIVE USE.
(a) Team Owner acknowledges that besides the use of the Arena as contemplated by this Agreement, the Arena and various parts thereof and areas therein may or will be used for the installation, holding or presentation and removal of activities, events and engagements other than Team Games and that in order for the Arena to operate as efficiently as practicable it may or will be necessary for the use or availability of services and facilities of the Arena, including without limitation entrances, general storage areas, passenger or freight elevators and concession areas, to be scheduled or shared.
Subject to the terms of this Agreement, Team Owner agrees that Arena Operator shall have full, complete and absolute authority to establish the schedules for the use and availability of such services and facilities and to determine when and the extent to which the sharing of any such services and facilities is necessary or desirable, and Team Owner agrees to comply with any schedules so established and to cooperate in any sharing arrangements so determined. In no event shall Team Owner enter or use any area, service space, or facility of the Arena without first obtaining Arena Operator's consent and approval, except for entry or use in the ordinary course of business of the Team and Team Owner.
(b) Arena Operator shall, at all times, have unrestricted access to all areas of the Arena so long as Arena Operator does not unreasonably interfere with the presentation of Team Games. In the event of an emergency, the Arena Operator shall have the right to use any and all means it deems proper to gain access to any area of the Arena. Any entry hereunder shall not under any circumstances be deemed or construed to be a forcible or unlawful entry into, or a detainer of, such premises, or an eviction therefrom or any portion thereof nor give Team Owner the right to abate any rent hereunder. Team Owner waives any claims for damages for any injury or inconvenience to or interference with its business, any loss of occupancy or quiet enjoyment, and any other loss occasioned by any such entry hereunder.
23. EJECTION.
The Arena Operator and its servants, employees and agents shall have the right to refuse admission to or to cause to be removed from the Arena any undesirable person seeking admission to or attending a Team Game. Any artisans or workmen employed by Team Owner shall be under the general supervision and control of Arena Operator (but not as an agent or servant of Arena Operator) while in or about the Arena and may be refused entrance to or ejected from the Arena by Arena Operator for EXHIBIT 1
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19 noncompliance with any provision of this Agreement or for objectionable or improper conduct without any liability on Arena Operator's part for such refusal or ejection.
24. ARENA OPERATOR REGULATIONS.
Team Owner shall, and shall cause its servants, agents, employees, licensees, patrons and guests to, abide by such reasonable rules and regulations as may from time to time be adopted by Arena Operator or the City of Stockton for the use, occupancy and operation of the Arena; provided, however, that no such rule or regulation shall interfere in any material way with the presentation of Team Games or their enjoyment by the patrons thereto unless such rule or regulation is reasonably imposed by Arena Operator to facilitate compliance with any applicable law or unless such rule or regulation is imposed by the City of Stockton or is required under the City Operating Agreement. Team Owner shall not use or allow another person or entity to use any part of the Arena for the storage, use, treatment, manufacture or sale of any Hazardous Materials. Nothing in this Section 24 shall be construed to limit the rights granted to Arena Operator under Sections 22 and 23.
25. RISK OF LOSS.
Team Owner agrees that all of its property or property of others brought or permitted by it upon the Arena by Team Owner shall be at the risk of Team Owner and that neither Arena Operator nor the City of Stockton shall be liable to Team Owner for any loss or damage whatsoever caused.
26. POST-GAME USE.
Subject to Section 6(a)(ii), Team Owner shall vacate the Game Day Facilities no later than two (2) hours after the conclusion of each Team Game. Upon the request of Team Owner and subject to availability, Arena Operator shall permit Team Owner to use certain areas of the Arena for post-game promotional purposes provided that (a) Team Owner shall be responsible for all staffing and other costs associated with such use and (b) such use shall not interfere with any subsequent events scheduled at the Arena or with the cleaning or conversion of any portion of the Game Day Facilities in anticipation of a subsequent event. Following each Team Game, the Arena shall be in the same condition as at the beginning of such Team Game and in good order, ordinary wear, damage and the need to be cleaned excepted. Team Owner shall remove from the Arena any goods or chattels brought or permitted by it in or about the Arena which are not securely stored by Team Owner in the Arena. In the event Team Owner fails to so surrender the Game Day Facilities, Team Owner hereby authorizes Arena Operator to immediately enter any and all areas occupied or used by Team Owner and remove and/or store any and all personal property of Team Owner, its employees, agents, invitees, and others at the expense of Team Owner and to offset, from any sums owing or which become owing by Team Owner to Arena Operator for whatsoever purpose, the actual costs of such removal and storage.
27. ARENA OPERATOR USE OF FACILITIES AND ISSUANCE OF PASSES.
(a) During Team Games, Arena Operator, its officers, directors, servants, employees, agents, concessionaires, and its concessionaires' servants, employees and agents shall at all times have free access to the Arena upon presentation of usual passes issued to them by Arena Operator.
(b) Subject to Arena Operator's reasonable approval as to numbers, during Team Games Team Owner may issue photo, press, media and staff passes permitting selected persons free access to the Arena and to specified areas of the Arena normally closed to the public. During times other than during Team Games, Arena Operator shall provide designated Team Owner personnel with access to the Arena, provided that such access shall be requested in advance, shall be limited to periods when no other events are occurring at the Arena, and shall be subject to such reasonable controls and limitations as Arena Operator may determine from time to time. A list of persons holding game passes or requiring EXHIBIT 1
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20 off-hours access to the Arena shall be maintained by Team Owner and provided to Arena Operator from time to time.
28. UTILITIES. At no expense to Team Owner, Arena Operator shall furnish gas, power, hot and cold water, sewer, air conditioning, including heat and air cooling and illumination, to the Arena with the permanent equipment with which the Arena is equipped which shall be adequate for the intended purposes on the Commencement Date, at such times and in such amounts as shall be reasonably necessary for the use of the Arena contemplated hereunder, except when prevented by strikes, accidents or other causes beyond the control or prevention of Arena Operator and except during the repairing of equipment and apparatus in the Arena which is provided for such air conditioning and illuminating purposes. Arena Operator shall in no event be liable for a failure to provide any services incidental to use of the Arena when prevented by strikes, accidents or other causes beyond the control or prevention of Arena Operator or during the repairing of equipment or apparatus in the Arena which is provided by Arena Operator for such purposes.
29. INSURANCE.
(a) Team Owner Insurance Coverage.
(i) During the term of this Agreement, Team Owner shall maintain in full force and effect at its own cost and expense the insurance coverage as set forth in the attached Exhibit A to this Agreement and shall otherwise comply with the other provisions of Exhibit A to this Agreement.
Periodically during the Term, but no more often than annually, Arena Operator may require higher policy limits if the amounts in the foregoing sentence are lower than those generally required of other FPHL teams playing in comparable FPHL arenas at the time. Said insurance policies shall name as additional insureds such entities and individuals as Arena Operator shall reasonably designate including, but not limited to, the City of Stockton (the “Additional Insured"). All such insurance shall be primary insurance and shall provide that any right of subrogation against Team Owner or Arena Operator and their successors and assigns is waived.
(ii) There will be no charge to Arena Operator for such coverage and a certificate of insurance evidencing such coverage shall be furnished to Arena Operator prior to the expiration of the then current policy. Said policy of insurance and endorsements shall provide that the policy of insurance cannot be canceled without thirty (30) days prior written notification to Arena Operator. Said insurance shall not restrict or limit the coverage of the foregoing additional insureds. If Team Owner fails to provide Arena Operator with the required certificate of insurance prior to the expiration of any existing policy, Arena Operator may, in its sole and absolute judgment, either (A) acquire, at Team Owner's expense, such insurance as Arena Operator determines in its commercially reasonable judgment to be necessary in order to protect Arena Operator and the Additional Insureds from any of the matters to be covered under Section 29(a)(i) above, or (B) treat such failure as a default by Team Owner subject to the cure provisions of Section 31(b).
(iii) All such insurance shall be effected by valid and enforceable policies issued by insurers of responsibility, approved to do business in the State of California, such responsibility and the insuring agreements to meet with the reasonable approval of Arena Operator. An insurer with a current A.M. Best rating of at least A (excellent) with a financial size category of at least X shall be deemed to be acceptable. Receipt by Arena Operator of a certificate of insurance, endorsement or policy of insurance which is more restrictive than the contracted for insurance shall not be construed as a waiver or modification of the agreement to modify same permissible or binding. Any agreement to amend this provision of this Agreement must be in writing signed by the parties.
(iv) At the request of Arena Operator, Team Owner shall promptly furnish loss information concerning all liability claims brought against Team Owner (or any other insured under EXHIBIT 1
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21 Team Owner's required policies), that may affect the amount of liability insurance available for the benefit and protection of the Additional Insureds under this Agreement. Such loss information shall include such specifics and be in such form as Arena Operator may reasonably require.
(b) Waiver of Subrogation. Arena Operator and Team Owner each hereby waives all rights of recovery against the other and against the officers, partners, employees, agents and representatives of the other, on account of loss by or damage to the waiving party of its property or the property of others under its control, to the extent that such loss or damage is insured against under any fire and extended coverage insurance policy which either may have in force at the time of the loss or damage. Arena Operator and Team Owner shall, upon obtaining the policies of insurance required under this Agreement, give notice to its insurance carrier or carriers that the foregoing mutual waiver of subrogation is contained in this Agreement.
30. INDEMNITY.
(a) Team Owner shall indemnify, defend and hold harmless Arena Operator, ASM Global Parent, Inc., City of Stockton and their respective officers, directors, agents, and employees (the “Indemnitees”) from and against any and all losses, liabilities, claims, damages and expenses (including reasonable costs of investigation and attorneys’ fees) (collectively, the “Losses”) which arise out of or in connection with Team Owner’s use and occupancy of the Arena, except to the extent such claim arises from the sole negligence or willful misconduct of the City, the Arena Operator or any other Indemnitee.
(b) The provisions set forth in subparagraph (a) above shall survive termination or expiration of this Agreement.
31. TEAM OWNER DEFAULT.
The occurrence of any one or more of the following events shall constitute a default and breach of this Agreement by Team Owner:
(a) If Team Owner fails to pay any payment or any other charges required to be paid by Team Owner under this Agreement and such failure continues for fifteen (15) business days after written notice that such payment is due and payable; or
(b) If Team Owner fails to promptly and fully perform any other covenant, condition or agreement contained in this Agreement and such failure continues for thirty (30) calendar days after written notice thereof from Arena Operator to Team Owner (unless such failure is of a nature which cannot reasonably be cured within such thirty (30) day period, so long as Team Owner has promptly, and in any event within such thirty (30) day period, commenced to cure such failure and thereafter diligently prosecutes such cure to completion); or
(c) If Team Owner makes a general assignment for the benefit of creditors, or provides for an arrangement, composition, extension or adjustment with its creditors, files a voluntary petition for relief or if a petition against Team Owner in a proceeding under the federal bankruptcy laws or other insolvency laws is filed and not withdrawn or dismissed within forty-five (45) calendar days thereafter, or if under the provisions of any law providing for reorganization or winding up of corporations, any court of competent jurisdiction assumes jurisdiction, custody or control of Team Owner or any substantial part of its property and such jurisdiction, custody or control remains in full force unrelinquished, unstayed or unterminated for a period of forty-five (45) calendar days.
32. ARENA OPERATOR'S DEFAULT.
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22 The occurrence of any one or more of the following events shall constitute a default and breach of this Agreement by Arena Operator:
(a) If Arena Operator fails to pay any payment or any other charges required to be paid by Arena Operator under this Agreement and such failure continues for fifteen (15) business days after written notice that such payment is due and payable; or
(b) If Arena Operator fails to promptly and fully perform any other covenant, condition or agreement contained in this Agreement and such failure continues for thirty (30) calendar days after written notice thereof from Team Owner to Arena Operator (unless such failure is of a nature which cannot reasonable be cured within such thirty (30) day period, so long as Arena Operator has promptly, and in any event within such thirty (30) day period, commenced to cure such failure and thereafter diligently prosecutes such cure to completion).
33. REMEDIES; DAMAGES.
(a) In the event of Team Owner's default hereunder, then in addition to any other rights or remedies Arena Operator may have under any law, subject to the notice and cure provisions of Section 31, Arena Operator shall have the right, at Arena Operator's option, to, upon sixty (60) days’ notice (which notice period is in addition to and cumulative with any notice and cure periods set forth in Section 31), terminate this Agreement and Team Owner's right to possess or use all parts of the Arena occupied and used by Team Owner, and Team Owner shall have no further claim to occupy or use the Arena under this Agreement.
(b) In the event of a material default by Arena Operator pursuant to Section 32, then in addition to any other rights or remedies Team Owner may have under any law, subject to the notice and cure provisions of Section 32, Team Owner shall have the right to terminate this Agreement upon sixty (60) days’ notice to Arena Operator (which notice period is in addition to and cumulative with any notice and cure periods set forth in Section 32).
(c) Should Arena Operator elect to terminate this Agreement, Arena Operator may recover as damages from Team Owner any contract damages available under applicable law, including without limitation, any amount necessary to compensate Arena Operator for all detriment proximately caused by Team Owner's failure to perform its obligations under this Agreement, or which in the ordinary course of things would be likely to result therefrom, including but not limited to, any costs or expenses (including attorneys' fees), incurred by Arena Operator in (i) maintaining the Arena after Team Owner's default, (ii) preparing the Arena for use by another tenant, including any repairs or alterations, (iii) storing Team Owner's personal property and (iv) relicensing Game Day Facilities, including broker's commissions.
34. OFFSET.
In addition to and not in limitation of any other rights and remedies, any party hereto may offset amounts held for any other party hereunder in satisfaction of any obligation or liability of such other party to the offsetting party under this Agreement or otherwise.
35. WAIVERS.
The waiver by either party hereto of any breach of any term, covenant or condition of this Agreement shall not be deemed a waiver of such term, covenant or condition or of any subsequent breach of the same or any other term, covenant or condition. Acceptance of payments by either party hereto subsequent to any breach hereof shall not be deemed a waiver of any preceding breach other than the failure to pay the particular payments so accepted, regardless of such party's knowledge of any breach EXHIBIT 1
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23 at the time of such acceptance of payments. Neither party shall be deemed to have waived any term, covenant or condition unless such party gives the other party written notice of such waiver.
36. DESTRUCTION OR DAMAGE.
(a) If, after the Commencement Date, the Arena is damaged by fire, earthquake, act of God, the elements or other casualty, Arena Operator may, in its sole discretion and subject to the provisions of this Section 36 and subject to the City Operating Agreement, repair the damage, if such repairs can, in Arena Operator's reasonable opinion, be completed within six (6) months after the damage; provided, however, that, if Arena Operator's insurance coverage at the time of the damage was in compliance with the requirements of Section 29(b), Arena Operator shall only be obligated to make such repairs to the extent that the insurance proceeds received in connection with such damage are sufficient to pay for the repair; provided further, however, that if Arena Operator's insurance proceeds are insufficient to pay for, and Arena Operator does not otherwise pay for, restoration of the Arena to a level necessary for the presentation of Team Games, Team Owner shall have the option to terminate this Agreement. If Arena Operator reasonably determines that repairs can be completed within six (6) months after the damage and Arena Operator has elected to repair the damage, this Agreement shall remain in full force and effect, except that if such damage is not the result of the negligence or willful misconduct of Team Owner or Team Owner's agents, employees, contractors, licensees, or invitees, payments as provided herein, shall be abated for any period that Team Owner is prevented from using the Arena for Team Games.
(b) If in Arena Operator's reasonable opinion, such repairs to the Arena cannot be completed within six (6) months after the damage, Arena Operator may elect, upon notice to Team Owner given within thirty (30) days after the date of such fire or other casualty, to repair such damage, in which event this Agreement shall continue in full force and effect; provided, however, that during such period (i) payments hereunder, shall be abated as provided in Section 36(a) and (ii) the provisions of Section 36(e) shall apply. If Arena Operator does not elect to make such repairs, this Agreement shall terminate as of the date of such fire or other casualty. If Arena Operator elects to make such repairs and if the repairs will take or do take more than two (2) years, during which period of time Team Games cannot be played at the Arena, Team Owner shall have the option to terminate this Agreement.
(c) If the Arena is to be repaired under this Section 36, Arena Operator shall repair at its cost any such injury or damage to the Arena, except Team Owner shall be responsible at its sole cost and expense for the repair, restoration and replacement of any of Team Owner's personal property. Arena Operator shall not be liable for any loss of business, inconvenience or annoyance arising from any repair or restoration of any portion of the Arena, as a result of any damage from fire or other casualty.
(d) This Agreement shall be considered an express agreement governing any case of damage to or destruction of the Arena after the Commencement Date by fire or other casualty, and any present or future law which purports to govern the rights of Arena Operator and Team Owner in such circumstances in the absence of express agreement shall have no application.
(e) During any period when the Arena is damaged such that Team Games cannot be presented in a safe manner reasonably convenient under the circumstances, the Team shall be permitted to conduct Team Games elsewhere.
37. ADDITIONAL REMEDIES.
Reference in this Agreement to any particular remedy shall not preclude either party from any other remedy at law or in equity. The failure of any party to seek redress for violation of, or to insist upon strict performance of, any covenant or condition of this Agreement shall not prevent a subsequent act which would have originally constituted a violation from having all the force and effect of an original EXHIBIT 1
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24 violation. No provision of this Agreement shall be deemed to have been waived by any party unless specific waiver thereof by such party shall be in writing.
38. PAYMENT ON DEFAULT.
Any expense or damage which Arena Operator may incur or sustain by reason of Team Owner's non-compliance with any of the provisions of this Agreement shall be due and payable by Team Owner to Arena Operator pursuant to the provisions of Section 33.
39. LIENS.
If any moneys become due from one party to another hereunder and any payment or transfer thereof is, or appears to the paying party to be, subject to Federal or other governmental licensing, withholding or other restrictive regulations, the paying party shall not be obligated to pay over or transfer said moneys unless and until such party shall have been satisfied by the receiving party that the paying party may lawfully pay over or transfer such moneys in compliance with such regulations, and subject to withholding of any such moneys if required under any such regulations.
40. COPYRIGHTS.
With respect to any Team Game at the Arena, Team Owner shall comply fully with any and all local, state, and federal laws, regulations, rules, constitutional provisions, common laws, and rights of others applicable to the reproduction or performance of proprietary or copyrighted materials and works of third parties (the “Works”), and to the protection of the intellectual property rights associated with such Works. The fees, if any, payable by Team Owner under this Agreement do not include royalty, copyright or other payments which may be payable on behalf of third party owners of such Works, and Team Owner agrees hereby to make any and all such payments to third parties and/or clearinghouse agencies as may be necessary to lawfully perform, publish or reproduce any such Works. Team Owner agrees to indemnify, defend, protect and hold harmless Arena Operator and all other Arena Operator Indemnitees of and from any and all Losses arising in any way from the use by Team Owner of proprietary intellectual property of third parties without permission (whether such claims are actual or threatened) under the copyright or other laws of the United States. Team Owner agrees to indemnify, defend, protect and hold harmless the Arena Operator and its Indemnitees from any and all Losses arising in any way from the use of any proprietary intellectual property of third parties without permission (whether such claims are actual or threatened) under the copyright or other laws of the United States.
The foregoing indemnities shall apply regardless of the means of publication or performance, and shall include specifically and without limitation the use of recordings, audio broadcasts, video broadcasts, Works on other magnetic media, sounds or images transmitted via the worldwide web, chat rooms, webcast, or on-line service providers, satellite or cable, and all other publication or performance means whatsoever, whether now known or developed after the date of this Agreement.
Team Owner shall assume all costs arising from the use of patented and/or copyrighted materials, equipment, devices, or dramatic rights used on or incorporated in the conduct of Team Games.
Team Owner agrees to indemnify and hold harmless Arena Operator and its duly authorized representatives from all damages, costs and expenses, including attorney's fees, for or on the account of the use of any patented and/or copyrighted materials, equipment, devices, processes, or dramatic rights furnished or used by Team Owner in connection with this Agreement and Team Games. In this regard, Team Owner's attention is particularly directed to the use of copyrighted music.
41. LABOR AGREEMENTS.
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25 Except for (i) players, coaches, referees and any other persons directly involved in the playing of the Team Games and (ii) part-time administrative and full-time employees of Team Owner, Team Owner shall not perform any work or employ any personnel except if such work or employment conforms to labor agreements to which Arena Operator is a party or which control labor activities at the Arena. At Team Owner's request, Arena Operator must provide Team Owner with a comprehensive list and explanation of all pertinent provisions of such labor agreements.
42. EXCUSE FOR PERFORMANCE.
(a) Force Majeure Event. Neither party shall be liable to the other party for the failure to perform any of the terms and conditions of this Agreement when such failure is attributable to: an Act of God; circumstances that would cause the Arena to become unavailable for any Team Game, limit the ability of the Team or its personnel to travel or prevent Team Owner from presenting any Team Game, such as, but not limited to, the government taking possession of or limiting, restricting or prohibiting use of the Arena or public gatherings or other government rules, regulations, travel warnings or other actions, railroad, airline or bus strike or accident, failure of public utilities, common carriers, transport or other goods and services, severe weather conditions, viral outbreak, epidemic, natural hazards and other disasters, declaration of a national or state emergency, riots or civil disturbance, police action, acts of terrorism, security and/or health risks in or around the world, etc.; or any other circumstances not under the control of such party. If any such event shall cause a delay but shall not be an independent reason for cancellation of an entire FPHL Season, the remaining Team Games shall be presented, and this Agreement shall continue to be in full force and effect, except as to the number of Team Games. If any Team Game is prevented by Arena Operator by reason of any labor dispute between Arena Operator and any of its employees or between Arena Operator and any other personnel it has agreed to provide under the terms of this Agreement, Team Owner is hereby authorized to contract for the necessary labor required for such Team Game at Arena Operator’s expense.
Each party acknowledges the uncertainty and lack of foreseeability related to significant public health threats and disease outbreaks in general, which are not under the control of either party. This includes state, local or federal government actions that may be taken in response thereto that may impact any Team Game. The parties shall cooperate in good faith to determine how to proceed should any such circumstances arise. If any Team Game cannot take place due to such circumstances, the parties shall use commercially reasonable efforts to reschedule such Team Game, and each party shall bear its own costs and expenses.
(b) Excused Performance. Subject to clause (c) of this Section 42, each party shall be excused from performance and shall not be considered to be in default with respect to any obligation hereunder, if and to the extent that its failure of, or delay in, performance is due to a Force Majeure Event; provided, that:
(i) such party gives the other party written notice describing the particulars of the Force Majeure Event as soon as is reasonably practicable.
(ii) the suspension of performance is of no greater scope and of no longer duration than is reasonably required by the Force Majeure Event.
(iii) the party uses reasonable commercial efforts to overcome or mitigate the effects of such occurrence; and
(iv) when the party is able to resume performance of its obligations under this Agreement, such party shall give the other party written notice to that effect and shall promptly resume performance hereunder.
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26 (c) Extended Force Majeure. Notwithstanding anything to the contrary herein, if any party hereto is excused from performance of a material obligation hereunder by reason of a Force Majeure Event for a continuous period exceeding two (2) years, the other party shall be entitled to terminate this Agreement upon thirty (30) days’ notice to the excused party.
43. REPRESENTATIONS AND WARRANTIES.
(a) Team Owner hereby represents and warrants as follows:
(i) Team Owner is a limited liability company, duly organized, validly existing and in good standing under the laws of the State of New York, with full power and authority to conduct its business as presently conducted, to execute, deliver and perform its obligations under this Agreement.
(ii) Team Owner is the owner of a validly issued and existing franchise agreement with the FPHL and pursuant thereto has the complete authority and right to operate the FPHL franchise located in Stockton, California.
(iii) Team Owner has taken all necessary corporate action to authorize its execution, delivery and performance of this Agreement. The Agreement constitutes a legal, valid and binding obligation of Team Owner, enforceable against Team Owner in accordance with its terms.
(iv) The execution, delivery and performance of this Agreement by Team Owner does not and will not conflict with, or constitute a violation or a breach of, or constitute a default under, or result in the creation or imposition of any lien upon the property of Team Owner by reason of the terms of (A) charter documents or bylaws of Team Owner, (B) any applicable law, rule or regulation binding upon or applicable to Team Owner, or (C) any material agreements to which Team Owner is a party.
(b) City hereby represents and warrants as follows:
(i) City has taken all necessary action to authorize its execution, delivery and performance of this Agreement. The Agreement constitutes a legal, valid and binding obligation of City, enforceable against City in accordance with its terms.
(ii) To the best of the City’s knowledge, the execution, delivery and performance of this Agreement by City does not and will not conflict with, or constitute a violation or a breach of, or constitute a default under, or result in the creation or imposition of any lien upon the property of City by reason of the terms of (a) charter documents of the City, (b) any applicable law, rule or regulation binding upon or applicable to City, or (c) any material agreements to which City is a party.
45. MISCELLANEOUS.
(a) Regular Meetings. Representatives from Team Owner and Arena Operator shall meet regularly, and in any event promptly following any request by either party for a meeting, during both the course of the FPHL regular season and playoffs and during the offseason in order to discuss any complaints or problems and make recommendations regarding the use of the Arena by Team Owner.
(b) Membership in the FPHL. From the execution hereof through the end of the Term, Team Owner shall (i) maintain its franchise right with the FPHL, (ii) operate the Team in accordance with FPHL rules, and (iii) not do or not cause anything to be done which would cause (A) Team Owner's FPHL franchise right to be impaired or diminished in any material respect or (B) the Team to be moved from Stockton, California.
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27 (c) Affiliate Services. If any services for which Team Owner must pay hereunder are provided by any affiliate of Arena Operator, such services shall be charged to Team Owner at a cost equivalent to that which would be charged by an unaffiliated third party providing such service.
(d) Severability. If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remainder of the terms, covenants, conditions and restrictions hereof shall remain in full force and effect, and shall in no way be affected, impaired or invalidated to the extent the essential purposes of the parties can be satisfied.
(e) No Partnership. The parties hereto are acting as independent contractors, and this Agreement shall not create a partnership.
(g) Entire Agreement. Any agreements, warranties or representations relative to this Agreement or the Arena between the parties not expressly contained in this Agreement shall in no way bind either Arena Operator or Team Owner and each expressly waives all claims for damages by reason of any statement, representation, warranty, promise or agreement, if any, not contained in this Agreement. All prior writings, negotiations, arrangements, agreements and understandings, whether written or oral, among Arena Operator, Team Owner or their predecessors relating to the use of the Arena for Team Games are canceled and superseded hereby. The Agreement constitutes the entire agreement among the parties hereto relating to use of the Arena for Team Games and the ancillary uses set forth herein, and no addition to, or modification of, any term or time hereof shall be effective until and unless set forth in a written instrument executed by all parties hereto.
(h) Governing Law. The Agreement shall be construed under the laws of the State of California.
(i) Construction. The language used in this Agreement will be deemed to be the language chosen by the parties hereto to express their mutual intent, and no rule of strict construction shall be applied against either party. Whenever required by the context, any gender shall include any other gender, the singular shall include the plural, and the plural shall include the singular. The words "herein," "hereof," "hereunder," and words of similar import refer to the Agreement as a whole and not to a particular section. Whenever the word "including" is used in this Agreement, it shall be deemed to mean "including, without limitation," "including but not limited to" or other words of similar import such that the items following the word "including" shall be deemed to be a list by way of illustration only and shall not be deemed to be an exhaustive list of applicable items in the context thereof.
(
(k) Notices. Any notice required to be given under this Agreement shall be in writing, and all notices shall be given by personal delivery, overnight courier or mailing. All notices personally given to Team Owner or Arena Operator may be given to any person apparently in charge at the offices of Team Owner or Arena Operator, as the case may be, within the Arena, or any corporate officer or agent thereof, as the case may be; any notice so given shall be binding upon Team Owner or Arena Operator, as the case may be, as if served personally. Any notice given shall be deemed to have been given when personally delivered, or if mailed, when seventy-two (72) hours have elapsed from the time when such notice was deposited in the United States Mail, certified or registered mail, postage prepaid, addressed to Team Owner or Arena Operator. Notice may also be given by electronic mail to such address(es) as each party may designate in writing, effective upon confirmed transmission. As of the date hereof, the addresses of the parties shall be:
If to Team Owner:
Parker Moskal
EXHIBIT 1
DRAFT
392
28 FPHL / Stockton Pro Hockey, LLC
33 Victoria Drive, Binghamton, NY 13904
With a copy to:
[ADD TEAM OWNER COUNSEL]
If to City:
City of Stockton
501 W. Weber Ave, Building 2
Stockton, CA 95203
Attention: Venues Director
With a copy to:
City of Stockton
501 W. Weber Ave, Building 1
Stockton, CA 95203
Attention: City Attorney
If to Arena Operator:
SMG
Adventist Health Arena
248 W. Fremont St
Stockton, CA 95203
Attention: General Manager
With a copy to:
SMG
300 Conshohocken State Road #770
West Conshohocken, PA 19428
Attention: General Counsel
(l) Financial Reports.
(i) Books and Records. Both Team Owner and Arena Operator shall keep at their respective offices complete, true and accurate books of account, records and contracts including sales, revenues, costs and expenses containing complete information as to the matters required to be included in the statements to be furnished to Arena Operator and Team Owner, as the case may be, under this Agreement. The books, records and contracts required under this Agreement to be kept shall not be destroyed for a period of three (3) years following the expiration of the year for which such books of accounts, records and contracts are kept and shall be kept in accordance with generally accepted accounting principles consistently applied.
(ii) Audit Rights. At its option, but no more than twice each year, either Arena Operator or Team Owner may, at any reasonable time during the Term, upon no less than 48 hours prior notice and for a period of three (3) full Contract Years after the expiration or earlier termination of this Agreement, cause a complete audit during regular business hours of the other's books and records EXHIBIT 1
DRAFT
393
29 relating to the Arena for any of the immediately three (3) preceding Contract Years. If such audit shall disclose a liability for amounts owing to the auditing party for any such year which is in excess of any amount actually paid by the audited party during the period in which such amounts owing to the auditing party is being calculated, then the audited party shall forthwith pay to the auditing party the amount of such liability together with interest thereon at two percentage points above the Prime Rate (meaning the prime rate as published in The Wall Street Journal from time to time), from the date payment was originally due to the date of actual payment, and if such audit discloses an understatement by the audited party of payments or such other amounts owing to the auditing party in such period in excess of five percent (5%), then the audited party shall promptly pay to the auditing party the cost of said audit unless the audited party can conclusively demonstrate that such error was inadvertent. If such audit shall disclose an overpayment to the auditing party, then the auditing party shall forthwith pay to the audited party the amount of such overpayment together with interest at the Prime Rate.
(m) Further Assurances. Subject to the terms and conditions of this Agreement, each party will use all reasonable efforts to take, or cause to be taken, all actions and to do, or cause to be done, all things necessary or desirable under applicable law to consummate the transactions contemplated by this Agreement. The parties agree to execute and deliver such other documents, certificates, agreements and other writings and to take such other actions as may be reasonably necessary or desirable in order to consummate or implement expeditiously the transactions contemplated by this Agreement.
(n) Consents Not Delayed. Any request, consent or waiver that, pursuant to the terms of this Agreement, is not to be unreasonably withheld by any party hereunder, shall also not unreasonably be delayed by such party.
(o) Legal Fees. In the event any legal action is taken under this Agreement, the prevailing party shall be entitled to recover reasonable attorney's fees, cost of suit and all other costs reasonable related to enforcement of its rights under this Agreement.
(p) Expenses. Except as otherwise provided herein, all costs and expenses incurred in connection with this Agreement shall be paid by the party incurring such costs and expenses.
(q) Intention of Parties. The parties hereby intend that the use and possession of the Arena by Team Owner does not create a leasehold estate and that this Agreement does not constitute a real property lease for purposes of state or federal law, including without limitation, Section 502(b)(6) of United States Bankruptcy Code.
(r) No Third-Party Beneficiaries. Except as expressly provided in this Agreement and other than the City of Stockton and Arena Operator Lender, no person other than the parties hereto shall have any right, benefit or obligation under this Agreement as a third-party beneficiary or otherwise.
(s) Confidentiality. Each party will use reasonable efforts to treat as confidential all confidential information provided by the other parties pursuant to this Agreement which does not otherwise become available to others, unless disclosure thereof is required by law.
(t) Counterparts; Effectiveness. This Agreement may be signed in any number of counterparts, each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument. This Agreement shall become effective when each party hereto shall have received a counterpart hereof signed by the other parties hereto.
(u) Rules and Regulations. Team Owner shall abide by and conform to the Rules and Regulations, a copy of which has been provided to Team Owner and the terms of which are incorporated by reference herein.
EXHIBIT 1
DRAFT
394
30 (v) Civil Rights Act. During the performance of this Agreement, Team Owner shall comply fully with Title VI and Title VII of the Civil Rights Act of 1964, as amended, and all other regulations promulgated thereunder, in addition to all applicable state and local ordinances concerning Civil Rights.
(w) Americans With Disabilities Act. With respect to any Team Game at the Arena, Team Owner recognizes that it is subject to the provisions of Title III of the Americans With Disabilities Act, as amended, and all similar applicable state and local laws (collectively, the “ADA”). Team Owner represents that it has viewed or otherwise apprised itself of the access into the Arena, together with the common areas inside, and accepts such access, common areas, and other conditions of the Arena as adequate for Team Owner’s responsibilities under the ADA. Team Owner shall be responsible for ensuring that the Arena complies and continues to comply in all respects with the ADA, including accessibility, usability, and configuration insofar as Team Owner modifies, rearranges or sets up in the Arena in order to accommodate Team Owner’s usage. Team Owner shall be responsible for any violations of the ADA, including, without limitation, those that arise from Team Owner’s reconfiguration of the seating areas or modification of other portions of the Arena in order to accommodate Team Owner’s usage. Team Owner shall be responsible for ensuring that the policies, practices, and procedures it applies in connection with Team Games are in compliance with the ADA.
(x) Time. Time is of the essence hereof, and every term, covenant, and condition shall be deemed to be of the essence hereof.
(y) Singular and Plural. Whenever the context shall so require, the singular shall include the plural, and the plural shall include the singular.
(z) Waiver. The failure of any party to enforce any of the provisions of this Agreement, or any rights with respect hereto, or the failure to exercise any election provided for herein, will in no way be considered a waiver of such provisions, rights, or elections, or in any way affect the validity of this Agreement. The failure of any party to enforce any of such provisions, rights, or elections will not prejudice such party from later enforcing or exercising the same or any other provisions, rights, or elections which it may have under this Agreement.
(aa) Non-Exclusive Use. During the Team Games, Arena Operator shall have the right, for reasonable business purposes, to use or permit the use of any portion of the Arena other than the Game Day Facilities to any person, firm or other entity regardless of the nature of the use of such other space so long as Arena Operator or such person, firm or other entity does not unreasonably interfere with Team Owner’s use of the Arena.
(bb) Assignment. Team Owner may not assign this Agreement without the prior written consent of Arena Operator and the City.
IN WITNESS WHEREOF, the Parties have executed this Agreement as of the day and year first set forth above.
City: Team Owner:
City of Stockton Parker Moskal, FPHL/Stockton Pro Hockey, LLC
By __________________________ By __________________________ Johnny Ford Parker Moskal EXHIBIT 1
DRAFT
395
31 City Manager President
Date: ________________________ Date: ________________________ APPROVED AS TO FORM:
DONALD LARKIN
INTERIM CITY ATTORNEY
BY: ________________________
ATTEST:
KATHERINE ROLAND, CMC, CPMC
CITY CLERK OF THE CITY OF STOCKTON
BY: ________________________
Arena Operator:
SMG
By ___________________________
Jason Perry
Regional General Manager
Date: ________________________
EXHIBIT 1
DRAFT
396
REV 2026-03-31
Exhibit A:
Insurance Requirements
(Tenant Lease for the Arena)
Less
ee 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 Lessee’s operation and use of the leased premises. The cost of such insurance shall be borne by the Lessee.
MI
NIMUM SCOPE AND LIMIT OF INSURANCE
Cov
erage shall be at least as broad as:
1. Co
mmercial 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 $5,000,000 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. Aut
omobile Liability: Insurance Services Office Form Number CA 0001 covering Code 1 (any auto), or if Instructor has no owned autos, Code 8 (hired) and 9 (non-owned), with limits no less than $1,000,000 per accident for bodily injury and property damage.
3. Wo
rkers’ Compensation insurance as required by the State of California, with Statutory Limits, and Employer’s Liability Insurance with limits of no less than $1,000,000 per accident for bodily injury or disease. (This applies to lessees with employees).
If
the Lessee 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 Lessee. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City of Stockton.
Ot
her Insurance Provisions
The i
nsurance policies are to contain, or be endorsed to contain, the following provisions:
Addi
tional 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 the lease of the subject property including damage caused in whole or in part by Lessee or by those working on your behalf. General liability coverage can be provided in the form of an 32 EXHIBIT 1
DRAFT
397
REV 2026-03-31
endorsement to the Lessee’s insurance, at least as broad as ISO Form CG 20 11 12 19 or if not available, CG 20 43 12 19. 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.
Pr
imary Coverage
For any claims related to this contract, the Lessee’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 Lessee’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 Lessee’s insurance coverage to the sole negligence of the Named Insured.
No
tice of Cancellation
Each insurance policy required above shall provide that coverage shall not be canceled, except with notice to the City of Stockton.
Wa
iver of Subrogation
Lessee hereby grants to City of Stockton a waiver of any right to subrogation which any insurer of said Lessee may acquire against the City of Stockton by virtue of the payment of any loss under such insurance. Lessee 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 Lessee, its employees, agents and subcontractors. This provision applies regardless of whether or not an endorsement has been issued.
Se
lf-Insured Retentions
Se
lf-insured retentions must be declared to and approved by the City of Stockton. The City of Stockton may require the Lessee 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.
Accep
tability 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.
33 EXHIBIT 1
DRAFT
398
REV 2026-03-31
Verification of Coverage
Less
ee 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 lease commences. However, failure to obtain the documents prior to the lease beginning shall not waive the Lessee’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.
Sp
ecial 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 a
ddress for mailing certificates, endorsements and notices shall be:
Ci
ty of Stockton
Its Officers, Officials, Employees, and Volunteers
501 W Weber Avenue
Building 1, 4th Floor
Stockton, CA 95203
34 EXHIBIT 1
DRAFT
399
TE
AM LEASE AGREEMENT
BY AND BETWEEN
CITY OF STOCKTON
AND
SMG
AND
STOCKTON CRUSADERS, LLC
DATED May 26, 2026
EXHIBIT 2
DRAFT
400
9 /22/26
2 TEAM LEASE AGREEMENT
THIS TEAM LEASE AGREEMENT (this "Lease Agreement") is entered into effective as of, July 6, 2026, by and between the City of Stockton (the “Owner”), SMG (the “Manager”) and Stockton Crusaders, LLC, whose current address is 5674 Stoneridge Drive #204, Pleasanton, CA 94588, c/o JGPC Business Law Group (the “Tenant”).
DATA SHEET
I
tem Section
1. The Production: Arena Football One, Regular Season Home Games for Stockton Crusaders
2. The Event Date(s): DATE v. OPPONENT (TV Status)
*Doors/Kickoff times are TBD *
3. Base License Fee: $28,500 per game, which is inclusive of documented Manager Expenses. Base License Fee increased by 3%
annually. TV origination fee waived.
4. Team Merch: Tenant to sell and retain 100% of sales
5. Load-in: 6:00 AM on game day(s)
6. Load-out: Within 4 hours of completion of event otherwise agreed to by Manager.
7. Complimentary Tickets: Manager to receive 20 lower bowl tickets at no cost (excluding suite tickets). Tenant shall receive up to 200 complimentary tickets per game without facility fee.
Promotional exceptions will be made; example of season
ticket holder redemption night.
8. Miscellaneous/ Additional Terms: See Exhibit A
9. Deposit: Twenty-Eight Thousand Five Hundred Dollars ($28,500) due June 15, 2026. Fifty-Seven Thousand Dollars ($57,000) due December 31, 2026. This reflects a pre-payment of three games rent. Final three games rent of Eighty-Five Thousand Dollars ($85,500) must be paid on or before February 28, 2027. Deposit schedule remains in play for future years.
EXHIBIT 2
DRAFT
401
9/22/26
3 TEAM LEASE AGREEMENT
RECITALS
A. Tenant is the owner and operator of the production described in Item 1 of the Data Sheet (the "Production").
B. SMG is the Manager of a facility commonly known as Adventist Health Arena (the “Facility”), located at 248 W. Fremont Street Stockton, CA 95203, which is owned by the City of Stockton (the “Owner”). Tenant desires to use all or a portion of the Facility, as set forth below, for the purposes stated herein. Manager shall execute the functions of this agreement on behalf of Owner. Accordingly, Manager desires to grant to Tenant, and Tenant hereby accepts from Manager a license to use certain areas of the Facility in accordance with the terms and conditions set forth herein.
C. Tenant has determined that the Facility is suitable for presentation of the Production, and Tenant desires to present the Production in the Facility.
AGREEMENT
In consideration of the mutual covenants and agreements contained herein and in Exhibit A attached hereto and incorporated fully by reference, Tenant and Owner agree as follows:
1. LICENSE OF FACILITIES
Owner hereby licenses to Tenant (the "License") the Facility which Manager deems necessary for the proper presentation of the Production (the "Arena Facilities"), and Tenant hereby agrees to present the Production in the Arena Facilities on the dates and at the times set forth in Item 2 of the Data Sheet (the "Event"). Tenant acknowledges that Tenant has had the opportunity to inspect the Arena Facilities, accepts the Arena Facilities in their present condition and is satisfied that the Arena Facilities are suitable for Tenant’s intended use.
2. TICKET PRICES
Ticket prices for each Production during the Event (excluding Suite) shall be established by the Tenant.
Ticket prices for Suite tickets shall be established by Manager in its sole discretion.
3. LICENSE FEE
(a) Tenant shall remit non-refundable deposits to Manager in the amount specified in Item 9 of the Data Sheet. If Tenant fails to complete the deposit schedule in the amount and manner provided herein, then Owner may, in its sole discretion, terminate this License, the Team Lease Agreement and the Event.
(b) If as of seven (7) business days prior to the Event the proceeds in the box office from the sale of tickets to the Event do not equal the sum of the License Fee plus estimated expenses for the Event, the Manager will notify Tenant of such shortage. Tenant shall have 24 hours from the receipt of such notification to pay to Manager, in readily available funds, sufficient money to cover the amount of such shortage. In the event that Tenant fails to make such payment to Manager in the amount and manner provided herein, then Owner may, in its sole discretion, terminate this License, the Team Lease Agreement and the Event.
4. EVENT EXPENSES
Tenant shall pay for or reimburse Manager for the flat expense fee which shall be equal to that amount set forth in Item 3 of the Data Sheet (the “Manager Expenses”). The Manager Expenses shall include a reasonable number of ushers, ticket takers, changeover operations staffing, event crew, security officers, front of house EXHIBIT 2
DRAFT
402
9/22/26
4 police, housekeeping, janitors, box office staff, front of house medical, and fire personnel as determined by Manager in its sole discretion, cleaning of the building before, during and after each performance, conversion, power and miscellaneous expenses such as available house staging, risers, barricades, spotlights, forklifts and chairs. The Manager Expenses shall exclude additional security or police in excess of the number determined by Manager in the previous sentence, staffing overtime, advertising, group sales commission and expenses, sound & lighting equipment, stagehands, loaders, riggers, wardrobe, catering, telecommunications, broadcast fees or staffing, equipment rentals, backline, local transportation, runners, vans, videoboard use or staffing, ASCAP / BMI / SESAC or similar music royalties, or other applicable taxes or fees imposed by governmental authorities, the facility fee imposed on all Facility tickets (the “Facility Fee”), or any other related expense including but not limited to, any and all box office credit card fees and/or expenses (collectively, “Tenant Expenses” and together with the “Manager Expenses, the “Event Expenses”). The Manager Expenses shall also exclude AF1 required equipment such as turf, dasher boards, goalposts, padding, time clocks and other game-related items. All such Tenant Expenses shall be paid by Tenant pursuant to the terms and in accordance with Section 39 herein. Credit card fees shall be added to the standard Ticketmaster.com service charge for Ticketmaster.com purchases by phone or internet. Tenant will be billed for credit card fees (3.5%) as an event expense for all Facility box office purchases.
Event Expenses shall be paid in accordance with the provisions of Section 39 below.
Notwithstanding anything to the contrary above, the Event Expenses shall not include (a) staffing costs associated with the sale of food and beverage concessions or merchandise (which staffing costs shall be the responsibility of Manager or its designated concessionaires or subcontractors), or (b) any other costs which are the responsibility of Manager as explicitly set forth elsewhere in this Team Lease Agreement.
5. CONCESSIONS
The City, through Manager, shall have the exclusive right to operate the concession services for food and beverages during Tenant Events. Except as may otherwise be agreed with respect to Merchandise Revenue (as defined below), all revenue derived from the sale of food, beverages, concessions and other items or services sold at the Facility shall be retained by Manager or persons designated by Manager. Manager or persons designated by Manager shall be the only parties authorized to provide and sell food, beverages, concessions, and other items or services at the Facility including, without limitation, any catering for Tenant’s hospitality.
6. MERCHANDISE
Tenant shall staff all team related merchandise sales in areas specified by Manager. All revenue associated with team merchandise shall reside with Stockton Crusaders and all sales taxes shall be full responsibility of the Tenant. Manager will provide tables and chairs at each mutually agreed upon sales location.
7. PREMIUM SEATING
The Facility includes 24 suites (the “Suites”). Manager agrees to provide Tenant with one (1) dedicated suite for Tenant Events only. Manager also agrees the Tenant has the ability to sell unsold suite inventory for Tenant Events only, retaining 60% of gross sale price and paying Manager the remaining 40% of the suite sale price. Tenant agrees the Manager has the ability to sell unsold suite inventory for Tenant Events, retaining 60% of gross sale price and paying Tenant the remaining 40% of the suite sale price. Without limiting the generality of the foregoing, Manager shall have the right to sell or distribute tickets to the Event for the Suites, at prices established by Manager in its sole discretion, including without limitation the right, if Manager elects, to distribute such tickets to Suite holders at no additional charge.
8. ADVERTISING, PROMOTION AND PUBLICITY
(a) Tenant agrees to advertise, publicize and promote the Event in a manner customary for such an event. Tenant shall be solely responsible for all costs associated with such advertising, publicity and promotion.
EXHIBIT 2
DRAFT
403
9/22/26
5 (b) If Manager makes available to Tenant any radio or television time or newspaper or outdoor advertising space for the advertising of the Event on terms more favorable than those otherwise available to Tenant, Tenant shall use reasonable efforts to utilize such advertising space as needed and to pay Manager for such time or space at the quoted price for the applicable station, newspaper or outdoor advertiser.
(c) Tenant agrees that any visual material, whether created for television, newspaper, outdoor advertising, handbills or otherwise, prepared by or for Tenant containing reference to the Facility shall be submitted to Manager for approval in advance of production or execution. Tenant shall allow adequate time for Manager to approve, comment upon or express its disapproval thereof; provided that Manager shall not unreasonably withhold its approval as long as the material containing reference to the Facility uses Manager’s established logotype, trademark or service mark and is in accordance with the guidelines established by Manager for the use of such marks.
(d) Subject to Manager’s sole discretion as to content and frequency, Manager agrees to publicize and promote the Event at no cost to Tenant through the Facility’s in-house promotional outlets such as its video screens and electronic displays.
(e) Tenant grants to Owner and Manager the right to use and to authorize others to use the name or names of Tenant, the Event, the Production and personalities appearing in the Event for the purposes of advertising, promoting and publicizing the Event or the Facility.
(f) With respect to use of Manager’s electronic database for Event specific e-mail marketing advertisements, the parties agree as follows: (i) Manager’s use of its electronic database shall be subject to Tenant’s payment of the applicable fee as set forth by Manager, (ii) the electronic database is proprietary to Manager, and Tenant shall not have access to the electronic database or any information contained therein, (iii) all incidents of ownership in the electronic database shall remain vested in Manager, and (iv) Manager shall have exclusive control over the use of the electronic database, the dissemination of the e-mail advertisements and the content of the e-mail advertisements; provided, however, that Manager shall consult with Tenant regarding such content.
9. BUILDING STAFF
For the Event, Manager shall provide all personnel required to staff the Facility, including, but not limited to, all box office personnel, ticket sellers, ticket takers, ushers, security guards, custodians, and such other personnel as Manager, in its reasonable discretion, shall deem required, together with such additional personnel as Tenant may reasonably request. Manager shall consult with Tenant, if and when requested by Tenant, regarding staffing levels, provided that final decisions regarding staffing levels shall be made by Manager in its reasonable discretion. All such personnel shall be provided only by or through Manager. The costs of such personnel shall be the responsibility of Tenant unless otherwise explicitly set forth herein.
10. PUBLIC ADDRESS SYSTEM
If requested by Tenant, the Facility public address system shall be furnished for the Event. The public address system shall be operated according to reasonable and customary rules and regulations established, from time to time, by Manager.
11. DELIVERY OF POSSESSION
The Arena Facilities shall be made available to Tenant at the time and on the date set forth in Item 5 of the Data Sheet ("Move-in Time") for preparatory work by Tenant, complete with such staging requirements as are mutually agreed upon by Tenant and Manager.
Any additional use of the Arena Facilities by Tenant beyond that contemplated hereunder shall be subject to mutual agreement of the parties; provided that such use shall be governed by the terms and conditions of this Team Lease Agreement except as otherwise agreed with respect to costs and fees for such additional usage.
EXHIBIT 2
DRAFT
404
9/22/26
6 12. SURRENDER AND OVERTIME
(a) After the conclusion of the Event, Tenant shall as soon as possible quit and surrender the Arena Facilities to Manager, but in no event later than the time and date set forth in Item 6 of the Data Sheet ("Move-out Time").
Upon such quitting and surrender, the Arena Facilities shall be in the same condition as at the Move-in Time and in good order, ordinary wear and tear excepted. Tenant shall remove from the Facility all Event property. Without limiting any other remedies available to Manager, if Tenant fails to quit and surrender the Arena Facilities on or before the Move-out Time, Tenant shall reimburse Manager for all incremental direct labor costs incurred by Manager as a result thereof. In addition, Tenant shall pay Manager for any expense incurred by Manager in removing and/or storing Event property.
Nothing in this Section 12(a) shall in any way be construed to limit Manager’s right to recover all actual damages incurred in the event Tenant fails to quit and surrender the Arena Facilities on or before the Move-out Time (including without limitation damages incurred if any subsequent scheduled event is delayed or cancelled).
(b) The allocated time for a performance of the Production shall be as set forth in Item 2 of the Data Sheet. If a performance of the Production continues in excess of such allocated time Tenant shall reimburse Manager for all incremental direct labor costs incurred by Manager as a result thereof. There will be no preliminary settlement made if it appears that the show will go beyond the time limits unless a contingency to cover overtime charges as reasonably determined by Manager is withheld from that portion of the monies paid to the acts, agency and/or managers.
(c) If any performance of a Production extends beyond the commencement of any curfew imposed by the State of California, the City or any other governmental body, Tenant agrees to pay in addition to all other sums due to Manager hereunder, an amount equal to all fines, penalties and other charges assessed by such governmental body because such performance of the Production extended beyond the commencement of the curfew.
13. TICKET SALES
(a) Ticket sales relating to the presentation of the Event shall be made solely by Manager at its box office or through Manager’s designated ticketing agent by such means (e.g. telephone sales, box office and Internet) as selected by Manager and its ticketing agent. Tenant agrees that the sale of tickets for the Event by Manager’s designated ticketing agent shall be governed solely by the terms of Manager’s agreement with such ticketing agent.
(b) At least ten days before Tenant desires the sale or distribution of the tickets and admissions to begin, Tenant shall deliver to Manager's box office all information required by Manager for such tickets and admissions for the Event, and Manager shall cause such tickets and admissions to be available via Ticketmaster and the box office.
Manager will provide an accounting to Tenant of all tickets and admissions. If Manager distributes tickets through sales outlets other than its box office, it shall require that all sales outlets render a complete accounting to Manager. All consignment ticket sales are subject to a $5 fee per ticket, retained 100% by Manager.
(c) If the Event is cancelled for reasons beyond the control of Manager and any or all of the tickets sold for the Event are refunded, Tenant shall return to Manager any such ticket revenues to the extent received by Tenant.
All refunds for any Event shall be done in accordance with Manager’s ticket refund policies and procedures.
(d) Tickets that are sold to the Event through Manager’s designated ticketing agent shall be subject to the convenience and handling surcharges set forth in Manager’s agreement with such designated ticketing agent. Tickets that are sold to the Event through the Facility box office shall not be subject to any convenience and handling surcharges unless otherwise agreed by the parties.
14. INSURANCE
(a) During the term of this Agreement, Tenant 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.
EXHIBIT 2
DRAFT
405
9/22/26
7 (b) The following shall apply to the insurance policies described in clauses (i) and (ii) above:
(i) SMG and Owner shall be named as additional insureds thereunder. Prior to the first Event set forth on the Date Sheet, Tenant shall deliver to SMG certificates of insurance evidencing the existence thereof, all in such form as SMG may reasonably require. Each such policy or certificate shall contain a valid provision or endorsement stating, “This policy will not be canceled or materially changed or altered without first giving thirty (30) days’ written notice thereof to each of SMG, Risk Management Director, 300 Conshohocken State Road #770 West Conshohocken, PA, 19428, and City of Stockton, City Manager, 501 W. Weber Ave, Building 2, Stockton, CA 95203.” If any of the insurance policies covered by the foregoing certificates of insurance will expire prior to or during the time of an Event, Tenant shall deliver to SMG prior to such expiration a certificate of insurance evidencing the renewal of such policy or policies.
(ii) The coverage provided under such policies shall be occurrence-based, not claims made.
(iii) The coverage limits contained on such policies shall be on a per-occurrence basis only.
(iv) Tenant hereby acknowledges that the coverage limits contained in any policy, whether such limits are per occurrence or in the aggregate, shall in no way limit the liabilities or obligations of Tenant under this Agreement, including, without limitation, Tenant’s indemnification obligations under Section 15 below.
(c) The terms of all insurance policies referred to in this Section 14 shall preclude subrogation claims against SMG and Owner and their respective officers, directors, employees, and agents.
(d) The failure of the Tenant to provide insurance in accordance with this Section 14 shall be a breach of this Agreement and shall, notwithstanding any cure period set forth in Section 34 below, preclude the Event from taking place.
15. INDEMNIFICATION
(a) Tenant shall indemnify, defend and hold harmless Manager, ASM Global Parent, Inc., City of Stockton and their respective officers, directors, agents, and employees (the “Indemnitees”) from and against any and all losses, liabilities, claims, damages and expenses (including reasonable costs of investigation and attorneys’ fees) (collectively, the “Losses”) which arise out of or in connection with the Tenant’s use and occupancy of the Facility, except to the extent such claim arises from the sole negligence or willful misconduct of the City or Manager.
(b) The provisions set forth in subparagraph (a) above shall survive termination or expiration of this Agreement.
16. [ Intentionally Omitted]
17. BUILDING COSTS
Manager shall provide air conditioning, heating, lighting, janitorial supplies, maintenance supplies, and equipment (if available) and other similar miscellaneous goods and services, to the extent reasonably required by the Event.
The cost of any equipment rentals which are requested by Tenant or necessitated by any extraordinary needs of the Production shall be treated as an additional Event Expenses for which Manager shall be entitled to reimbursement.
EXHIBIT 2
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8 18. IN-FACILITY MESSAGE BOARDS AND VIDEOBOARDS
If Tenant wishes to use the Facility’s in-bowl scoreboard, matrix board, facia board and/or video screens, there will be an additional production fee due Manager for their use. The amount of any such fee shall be determined in the reasonable discretion of Manager and Tenant shall pay to Manager the amount thereof on demand. The scoreboard, matrix board, facia board and video screens shall be operated solely by such persons as Manager may authorize from time to time and their use shall be subject to such rules and regulations as Manager may establish from time to time.
19. PARTICIPANTS
Tenant shall, at its sole cost and expense, provide all participants (including, without limitation, performers and musicians) required for the Event. To the extent Tenant provides participants, Tenant shall, at its sole cost and expense, comply with all legal requirements resulting from the providing of such participants, including those of all unions of which such participants may be members.
20. SHOW OFFICE
Manager shall make available to Tenant space for a show office, the location of which shall be mutually agreed by Manager and Tenant subject to availability. Such space shall be available to Tenant from the Move-in Time to the Move-out Time. There shall be no additional charge to Tenant for such space, but such space shall be part of the Arena Facilities and Tenant's use thereof is subject to all other terms and conditions of this Team Lease Agreement.
21. TICKET HOLDS; COMPLIMENTARY TICKETS/PARKING
(a) Tenant agrees to provide Manager, in advance of the on-sale date and upon prior written notification from Manager, the number of ticket holds set forth in Item 7 of the Data Sheet for each performance during the Event (the “Ticket Holds”). The Ticket Holds shall be in seat locations reasonably agreed to by Manager and Tenant; provided hat in any event a reasonable number of such Ticket Holds shall be located in the top price category. Except as set forth below, the Ticket Holds will be held without guarantee of purchase. From the on-sale date until the date of the Event, either Manager or Tenant may release some or all of their respective Ticket Holds back onto the ticket manifest; provided that the party releasing such holds shall provide the other party with reasonable advance notice of such releases and shall coordinate and consult with such other party regarding the sale of the released seats.
(b) Tenant and Manager may each receive the number of complimentary tickets set forth in Item 7 of the Data Sheet for each performance during the Event upon compliance with Manager's established procedure for the issuance of complimentary tickets. The locations of all complimentary tickets shall be agreed to by the parties, provided that in any event a reasonable number of such complimentary tickets shall be in the top price category unless otherwise agreed by the parties. Nothing in this Section 21(b) shall be construed to limit the right of Manager to issue complimentary Suite tickets as set forth in Section 7.
22. DRESSING ROOMS
Manager shall, at no extra charge to Tenant, make available such dressing rooms at the Facility, with such furnishings as Manager may have available, as may be required for the Event as mutually agreed by Manager and Tenant subject to availability. There shall be no additional charge to Tenant for such space, but such space shall be part of the Arena Facilities and Tenant's use thereof is subject to all other terms and conditions of this Team Lease Agreement.
Stockton Kings dressing room will not be available for use during the life of their lease.
23. REHEARSAL
In the event Tenant desires to use the Arena Facilities for rehearsal prior to the Move-in Time set forth in Item 5 of the Data Sheet, Tenant shall notify Manager of such fact. If feasible, in Manager's sole judgment, the Arena EXHIBIT 2
DRAFT
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9/22/26
9 Facilities shall be made available to Tenant for such purposes at such times and under such terms and conditions as Manager may designate. Tenant shall (a) pay any rental charges reasonably imposed by Manager, and/or (b) shall reimburse Manager for any additional costs or expenses incurred by Manager in connection with such rehearsal.
24. PERMITS
Prior to the Move-in Time, Tenant agrees, at Tenant's expense, to obtain from the City or any other applicable governmental body or agency, such governmental permits necessary for the Event.
25. ADDITIONAL OBLIGATIONS OF TENANT
Tenant shall:
(a) Supply and pay for all performers and participants required for the proper presentation of the Production (including each individual performer and participant integrally identifiable with the named Event).
(b) Transport all personnel, properties, facilities and equipment necessary for the Production to and from the Arena Facilities.
(c) Present the Production in a manner customary for shows comparable in type and nature to the Production.
(d) Tenant shall be solely responsible for, and timely pay, all fees and governmental taxes and levies due as a result of the Event, including without limitation any non-resident withholdings required by any governmental agency (including the 7% California non-resident withholding tax).
(e) If Tenant or its agents, representatives, managers, employees, patrons, players, performers, or participants in or about the Arena Facilities shall at any time accept or use the services of a physician or surgeon, or accept or use an ambulance service or any service in connection with an injury or sickness occurring to any such person or persons while within or about the Facility from the Move-in Date to the Move-out Date, even though such services are made available or are obtained through Manager, Tenant will assume such costs solely as an Event Expense and will defend, indemnify and hold Manager harmless from all responsibility or liability therefor.
26. COMPLIANCE WITH LAWS
(a) Tenant shall comply with all applicable laws, orders, regulations and requirements of Federal, State, County and Municipal authorities as well as those of the City, and with any lawful direction or order of public officers which shall impose any duty upon Manager or Tenant, with respect to the Facility or the use and occupancy thereof. No collections, whether for charity or otherwise, shall be made or attempted in or at the Facility by Tenant or any of its employees, agents or contractors unless otherwise expressly approved in writing by Manager in advance.
(b) Tenant shall comply with all applicable rules, orders, regulations or requirements of the applicable fire and police departments (i.e., State of California, the City) or any other similar body and shall not do or permit anything to be done in or about the Facility or bring or keep anything therein except as permitted by the City or any other authority having jurisdiction over the Facility, Manager or Tenant. Any decorating or other work, and all material therefor, done or furnished by Tenant shall be subject to the reasonable approval of Manager and, if necessary, in Manager's sole judgment, the approval of the City’s Fire Department. All flammable decorations and other materials must be fireproofed. Tenant shall deliver to Manager, if Manager so requests, a flameproofing certificate in the form specified or required by and satisfactory to any local government body having jurisdiction with respect thereto.
(c) No pyrotechnics, gasoline, acetylene, explosives, fireworks or other fuel or other flammable material (collectively, “Pyrotechnics”) will be permitted in the Facility without the prior written approval of Manager and without Tenant obtaining the appropriate permits and licenses. In the event Tenant is permitted to EXHIBIT 2
DRAFT
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9/22/26
10 use Pyrotechnics in connection with the Production, then Tenant agrees to provide the following, at its sole cost and expense: (i) a display site and stage configuration (including, without limitation, a firing and fallout zone such that the Pyrotechnic display and any Pyrotechnic debris can be exhibited, rise and fall safely) that complies in all respects to any law, rule, ordinance, directive or regulation issued by the local Fire Department or any other authority (including the Manager) having jurisdiction over the Production, applicable venue, Tenant, Manager or the Pyrotechnic display at issue; (ii) adequate policing, guard protection, roping, fencing and/or other crowd control measures required by applicable law and the applicable venue; and (iii) the services of standby firemen and/or any applicable permit fees as required by state and local statutes, ordinances or regulations. Tenant shall not do or permit anything to be done in or about the Facility or bring or keep anything therein except as permitted by such Fire Department or any other authority having jurisdiction over the Facility, Tenant, Manager or the Pyrotechnic display at issue. Tenant shall also deliver to Manager and the Facility commercial general liability insurance with Pyrotechnics endorsement in an amount (minimum $10 million per occurrence in general liability coverage including bodily injury and property damage) and on such forms as are satisfactory to Manager in its sole discretion, and which shall name the Indemnitees as additional insureds thereunder. In no event shall any Indemnitee have any liability or obligation with respect to any Pyrotechnic display and Tenant agrees to defend, indemnify and hold Indemnitees harmless from any claims, losses, damage and liability arising out of or related to (x) the Pyrotechnics, or (y) the breach or alleged breach by Tenant or any designee, agent, employee or independent contractor of Tenant of any representation, warranty or agreement contained in this Section 26(c).
(d) Any item not approved in accordance with the above provisions shall not be permitted in the Facility and if it is already in the Facility, it shall immediately be removed by Tenant at its expense. If Tenant fails to immediately remove any unapproved item from the Facility, Manager may cause such item's removal at Tenant's expense.
(e) Tenant acknowledges that the operation of the Facility is subject to certain hiring, workforce utilization and minority/women-owned business utilization requirements imposed on Manager and its contractors, subcontractors and other agents by the City and agrees to cooperate with Manager’s efforts to satisfy the goals established in connection therewith. Tenant agrees that Tenant shall not discriminate against or segregate any person or group of persons on account of race, color, religion, creed, national origin, ancestry, sex, sexual preference/orientation, age, disability, medical condition, acquired immune deficiency syndrome (AIDS) – acquired or perceived retaliation for having filed a discrimination complaint, or marital status in the use, occupancy, tenure or enjoyment of the Arena Facilities, nor shall Tenant, or any person claiming under or through Tenant establish or permit any such practice or practices of discrimination or segregation.
27. ALTERATIONS
Tenant shall not mark, paint, drill into or in any way mar or deface any part of the Facility. Subject to Section 37, Tenant shall not display or erect any lettering, signs, pictures, notices or advertisements upon any part of the outside or inside of the Facility or make any alterations or improvements in or to the Arena Facilities without the prior written consent of Manager, which consent may be withheld in Manager's absolute discretion.
28. ENTRANCES AND EXITS
The entrances and exits of the Facility shall be locked or unlocked during the Event as Manager may direct, subject to all applicable laws, rules, regulations and orders of Federal, State, County and Municipal authorities (including, without limitation, the City), any lawful direction of public officers, and also subject to Tenant's reasonable approval to the extent not in conflict with any such law, rule, regulation or order. Articles, fittings, fixtures, materials and equipment required for Production shall be brought into or removed from the Facility by Tenant only at entrances and exits, and at such times, as designated by Manager. The total number and weight of vehicles, which may enter the Facility at any one time, shall be determined by Manager in its absolute discretion.
29. NON-EXCLUSIVE USE
Tenant acknowledges that besides the use of the Arena Facilities as contemplated by the Team Lease EXHIBIT 2
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11 Agreement, the Facilities and various parts thereof and areas therein may or will be used for the installation, holding or presentation and removal of activities, events and engagements other than the Event and that in order for the Facility to operate as efficiently as practicable it may or will be necessary for the use or availability of services and facilities of the Facility, including without limitation, entrances, exits, parking lots, truck ramps, receiving areas, marshalling areas, storage areas, passenger or freight elevators and club and concession areas, to be scheduled or shared. Tenant agrees that Manager shall have full, complete and absolute authority to establish the schedules for the use and availability of such services and facilities and to determine when and to what extent any sharing of any such services and facilities is necessary or desirable provided such schedules do not unreasonably interfere with Tenant’s use of the facility, and Tenant agrees to comply with any schedules so established and to cooperate in any sharing arrangements so determined. In no event shall Tenant enter or use any area, service space, or facility of the Facility other than the Arena Facilities without first obtaining Manager's consent and approval.
30. EJECTION
Tenant hereby appoints Manager, or any servant, employee, contractor or agent of Manager, as Tenant's agent to, within its reasonable discretion, refuse admission to or to cause to be removed from the Facility any undesirable person. Any artisans or workmen employed by Tenant shall be under the general supervision and control of Manager (but not as an agent, servant, or employee of Manager) while in or about the Facility and may be refused entrance by Manager for non-compliance with this provision of this Team Lease Agreement or for objectionable or improper conduct without any liability on Manager's part for such refusal or ejection.
31. MANAGER REGULATIONS
Tenant shall, and shall cause its servants, agents, employees, Tenants, patrons and guests to abide by such reasonable rules and regulations as may from time to time be adopted by Manager for the use, occupancy and operation of the Facility.
32. MANAGER USE OF FACILITIES
Manager, the City, their affiliates and their respective officers, directors, servants, employees, agents, concessionaires and such concessionaires' servants, employees and agents shall at all times have free access to the Arena Facilities upon presentation of usual passes issued to them by Manager; provided that Manager, the Owner and its agents shall not unreasonably disturb the privacy of the artist in areas and circumstances where the artist has a reasonable expectation of privacy (such as, but not limited to, sound checks and dressing rooms). Subject to Manager's prior approval, Tenant may issue such number of photo, press and backstage passes approved by Manager and permitting selected persons access to specified areas of the Facility normally closed to the public as Manager shall designate. Manager and the Owner, at such reasonable time or times as either may deem appropriate, may announce, describe and advertise over the sound system and video screens in the Facility during the Event, including without limitation, announcements, descriptions and advertisements concerning other or future events being or to be held in the Facility or elsewhere, and Manager and the Owner reserves and retains the exclusive right to use and may use the sound system, scoreboard, video screens, display advertising capabilities and facilities and all other advertising capabilities and facilities in and about the Facility in any manner which in its sole opinion is desirable or appropriate, providing only that such announcements, descriptions, advertisements and use do not unduly disrupt or interfere with the Event. Notwithstanding the foregoing, if Tenant reasonably requests that the sound system inside the bowl area not be used for advertising purposes and/or the video screens inside the bowl area of the Facility be turned off during part or all of the Event for production purposes, Manager shall comply with such request.
33. UTILITIES
Air conditioning (including heat and air cooling) and illumination to be provided by Manager pursuant to Section 17, shall be provided by the permanent equipment with which the Facility is equipped at such times and in such amounts as shall be reasonably necessary, in the sole and absolute judgment of Manager, during each Performance for the comfortable use and occupancy of the Facility. If any services, including without limitation heat, air cooling, illumination, EXHIBIT 2
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9/22/26
12 water or electricity, are furnished, with or without charges by Manager to Tenant, Manager shall in no event be liable for a failure to provide such services (i) during the repairing of any such equipment or apparatus in the Facility or (ii) as a result of any power shortage, irregularity, deficiency or outage affecting the Facility or the Production or any other cause beyond the control of Manager. Tenant may, at Tenant’s sole cost and expense, provide Manager with power generators or other equipment acceptable to Manager to be used by Manager only in the event of any such occurrence in connection with the Production.
34. DEFAULT
(a) Each of the following shall constitute a default on the part of Tenant: (i) Tenant makes a general assignment for the benefit of creditors or takes the benefit of any insolvency act, or (ii) Tenant files a voluntary petition in bankruptcy, whether for the purpose of seeking a reorganization or otherwise, (iii) a receiver or trustee is appointed for Tenant or Tenant's property, or (iv) execution is issued pursuant to a judgment rendered against Tenant, or (v) this Team Lease Agreement is assigned to any person, firm or corporation other than Tenant or without the prior written consent of Manager, which consent may be withheld in Manager's absolute discretion, or (iv) Tenant defaults in the performance or observance of any of its obligations or agreements contained herein, including the agreement to make payments as provided herein. In the event of a material default by Tenant, Manager may, upon delivering, by personal delivery or facsimile, not less than a 48-hour written notice (or such lesser time as is reasonable if the Event is to take place less than 48-hours after the default) to Tenant, terminate this Team Lease Agreement. Upon such termination this Team Lease Agreement shall expire as fully and completely as if such date and time of expiration were the date and time definitely fixed herein for the expiration of the term and of this Team Lease Agreement, and Tenant shall then quit and surrender its rights to the Arena Facilities to Manager, but Tenant shall remain liable as hereinafter provided. Manager shall forthwith upon such termination be entitled to recover as its stipulated damages for such breach an amount equal to the License Fee per day for each day Tenant was to have used the Arena Facilities, together with an amount equal to the sum of all costs and expenses then incurred by Manager with regard to the Event and this Team Lease Agreement.
(b) Manager or any other person by its order may immediately upon expiration of this Team Lease Agreement as provided in subparagraph (a) above, or at any time thereafter, enter the Arena Facilities and remove all persons and all or any property therefrom by summary unlawful or wrongful detainer proceeding, or by any suitable action or proceeding at law, or by force or otherwise, without being liable to indictment, prosecution, or damages therefor, and possess and enjoy the Facility, including the Arena Facilities. In any case where, pursuant to the provisions of this Team Lease Agreement or by summary proceedings or otherwise, this Team Lease Agreement expires or is terminated before the Move-out Time, and in all cases of entry by Manager, Manager may, but shall not be required to, relicense the Arena Facilities or any part or parts thereof, as the agent of Tenant or otherwise, at any time or times during the term for whatever compensation or rent Manager shall obtain, and Tenant shall, whether or not the Arena Facilities are relicensed or let, be and remain liable for, and Tenant hereby agrees to pay to Manager as damages an amount equal to all amounts payable by Tenant to Manager hereunder, less the amount thereof already paid and the net receipt of relicensing, and the same shall be due and payable by Tenant to Manager hereunder. The words "enter”, and "entry" as used in this Team Lease Agreement are not restricted to their technical legal meanings.
(c) In the event of a breach or threatened breach by Tenant of any of its agreements or obligations hereunder, Manager shall have the right of injunction and the right to invoke any remedy allowed at law or in equity or otherwise as if entry, summary proceeding, or other remedies were not provided for herein. Tenant shall not have the right of injunction or right to invoke any remedy available in equity with respect to any default by Manager.
(d) In the event of entry by Manager, Manager at its option may store at the cost of Tenant any personal property of Tenant, or its servants, employees and agents then in or about the Facility, but in such case Manager shall not be obligated to store such property for more than 30 days and thereafter may dispose of such property in any way it sees fit, upon 10 days notice in writing to Tenant. Manager shall be entitled to receive from Tenant all costs and expenses for storage of Tenant's property and if Manager shall sell such personal property, it shall be entitled to retain from the proceeds thereof the expense of the sale and the cost of storage in addition to any other sums then due to Manager by Tenant.
EXHIBIT 2
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9/22/26
13 35. ADDITIONAL REMEDIES
Reference in this Team Lease Agreement to any particular remedy shall not preclude Manager from any other remedy at law or in equity. Manager's failure to seek redress for violation of, or to insist upon strict performance of, any covenant or condition of this Team Lease Agreement shall not prevent a subsequent act which would have originally constituted a violation from having all the force and effect of an original violation. No provision of this Team Lease Agreement shall be deemed to have been waived by Manager unless specific waiver thereof by Manager shall be in writing.
36. PAYMENT ON DEFAULT
Any expense or damage which Manager may incur or sustain by reason of Tenant's non-compliance with any of the provisions of this Team Lease Agreement shall be due and payable by Tenant to Manager pursuant to the provisions of Section 39 hereof.
37. ADVERTISING AND SPONSORSHIP
(a) Other than as provided at subparagraph (b) below, Manager retains exclusive rights to (i) all permanent signage and advertising opportunities (including without limitation all fixed and rotating sign panels on scoreboards, vomitories, walls, seats and steps) inside the bowl area of the Facility, (ii) all in-house promotional programming on television monitors and electronic displays in and around the Facility, and (iii) all signage, advertising and promotional opportunities in all other areas of the Facility, whether temporary or permanent (including without limitation in the concourses, restaurants, plaza areas and parking lots in and around the Facility). Tenant shall only be entitled to sell or otherwise grant sponsorship or advertising rights with respect to temporary signage and promotional opportunities within the bowl area of the Facility. The placement of any temporary signage opportunities (including the form, size, location and appearance thereof) or the conduct of any promotions inside the bowl area of the Facility by Tenant or its agents shall be subject to the prior approval of Manager, such approval not to be unreasonably withheld (provided that Manager shall be entitled to withhold its approval on the grounds that any proposed advertising or promotion conflicts with any of the exclusivity rights granted to the Facility’s sponsors, including Managers naming rights and pouring righs exclusive category).
38. ANCILLARY RIGHTS
If Tenant records, stores, digitalizes, tapes, films, broadcasts or telecasts the Event by any means, including, without limitation, on television or radio, over the Internet, in motion pictures or for video tape or DVD distribution (collectively, the “Ancillary Rights”), Tenant shall execute the Facility’s Filming Agreement, and Manager shall have no interests or rights of any kind therein; provided that, (a) Manager shall retain all rights to its trademarks (i.e. "Adventist Health Arena” and related logos), and (b) Manager shall have the right to use photographs or tapes of the Event for the purpose of promoting the Facility.
Notwithstanding the foregoing, if the Ancillary Rights are exploited by the performer or anyone other than Manager or its agents, Manager shall have no responsibility for the staffing and other costs associated therewith, and Tenant shall pay, or cause others to pay, such costs as well as all applicable production and origination fees. Tenant agrees that anyone broadcasting and/or taping the Event for television shall be required to utilize the television production facilities located in the Facility (subject only to the condition that the fees charged by such production facility shall be reasonable) and all costs associated therewith, including any applicable broadcast assessments or fees, shall be borne by Tenant or such third party. In no event shall Tenant or any broadcaster use blocking technology or insert any virtual signage on either the exterior or interior of the Facility, including, without limitation, over any of the Facility’s permanent or temporary signage, during any broadcast or re-broadcast of the Event.
39. SETTLEMENT
All receipts from the sale of admissions to the Event ("Box Office Receipts"), after the deduction by EXHIBIT 2
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14 Manager of all applicable fees and taxes (including, without limitation, the Facility Fee and any business license fees) and credit card charges, shall be held by Manager as its sole property until the preliminary box office settlement. Manager may, however, in its sole and absolute discretion apply any such Box Office Receipts in payment of all sums of money which shall become due from Tenant to Manager hereunder or by reason of Tenant's use of the Arena Facilities as provided herein, including, but not limited to, all amounts which shall become due for payments payable by Tenant to Manager hereunder for personnel, services, materials and equipment furnished to Tenant by Manager under this Team Lease Agreement, any agreement supplementing this Team Lease Agreement, Tenant's work orders and requests, or otherwise and for any damages whether stipulated herein or not, to which Manager is entitled by reason of any breach of this Team Lease Agreement by Tenant. The aforesaid applications shall be deemed to have been made as and when said amounts become due, irrespective of the date upon which such application shall be made upon the books of Manager. Prior to or immediately following the conclusion of the Event, Manager shall provide Tenant with a preliminary box office statement and a statement setting forth estimates of Event Expenses to the extent available. Within 24 hours after the conclusion of the Event, Manager shall (a) furnish Tenant with an updated preliminary box office statement and a preliminary settlement statement (setting forth estimated Event Expenses and any other available information pertinent to event settlement), and (b) shall make a preliminary settlement; provided, that Manager shall be entitled to retain a reasonable contingency to assure proper final settlement. Within two business days after the Event, Manager shall furnish to Tenant a final box office statement and a final settlement statement (the "Final Statements") showing all Box Office Receipts relating to Tenant's use of the Arena Facilities hereunder and the application of the same, and Manager shall pay to Tenant such moneys as shall then be due to Tenant. Tenant agrees to examine the Final Statements and to notify Manager in writing of any error in the account or of any objection to any charge within five business days after delivery of the Final Statements. Unless Tenant shall notify Manager of any claimed error or objection within such five business days after its receipt of the Final Statements, the Final Statements shall be deemed to be a true, correct and final statements of the account among Manager and Tenant. To the extent that any amounts owing by Tenant to Manager hereunder (including without limitation Event Expenses due under Section 4 hereof) are not fully paid by Tenant at the preliminary box office settlement, such amounts shall be reflected on the Final Statements and Tenant shall promptly pay such amounts within five business days after receipt of the Final Statements. Manager shall have no obligation to pay Tenant any interest on Box Office Receipts held by Manager in accordance with this Section 39.
40. COPYRIGHTS
Tenant represents and warrants that all copyrighted materials, music, equipment, devices, or dramatic rights used on or incorporated in the conduct of the Production will be used with the express permission of the copyright owner. The Tenant represents and warrants that it will use commercially reasonable efforts to ensure that any and all obligations under the copyright license shall be performed by Tenant. Tenant agrees to indemnify and hold harmless the Indemnitees from any and all liabilities, claims, damages, costs and expenses, including attorney's fees, incurred by any one or more of the Indemnitees by reason of the use of any patented and/or copyrighted materials, music, equipment, devices, processes, or dramatic rights furnished or used by Tenant in connection with the performing of the Production under this Team Lease Agreement.
41. LABOR AGREEMENTS
Tenant shall not perform any work or employ any personnel in connection with the Event except if such work or employment conforms to labor agreements to which Manager or its contractors are a party or which control labor activities at the Facility. At Tenant's request, Manager will advise Tenant of pertinent provisions of such labor agreements.
Manager may, at its option, deny access to the Facility to any person whose admittance to the Facility could result in a violation of any such labor agreement.
42. REFUND
If Tenant shall for any reason fail to occupy or use the Arena Facilities as provided herein (for reasons other than a breach by Manager of its obligations hereunder), no refund shall be made of any amounts paid by Tenant to Manager hereunder, and the aggregate amount payable by Tenant to Manager hereunder, including disbursements or expenses incurred by Manager in connection herewith, shall be payable by Tenant to Manager as provided in Section 39 EXHIBIT 2
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15 above.
43. TERM
The current term of the Agreement (the "Initial Term") commencing on July 1, 2026 (the "Commencement Date") and is to continue through June 30, 2029. Subject to the approval of the City, the Arena Operator and the Tenant shall extend the Initial Term through June 30, 2030 (the "Extended Term". The Tenant shall have the Option to extend the Extended Term for another one-year (1) year (the “Option”). The Option shall be exercised in writing by Tenant to Manager no later than January 1, 2030. The Option to extend the Term of this Agreement is subject to approval of the City and the Manager.
44. SUBORDINATION
The provisions of this Team Lease Agreement and Tenant's right to the use of the Facility hereunder are hereby made subject and subordinate to the terms and conditions of the Management Agreement and any other current or future lease, mortgage, deed of trust or any other encumbrance granted by Manager or under which Manager or its affiliates may be operating the Facility. If Manager's right to operate the Facility expires or is terminated, according to the terms of such Management Agreement, current or future lease, mortgage, deed of trust or other encumbrance, with or without fault on Manager's part, or if Manager's lessor, mortgagor, trustee or beneficiary under such current or future lease, mortgage, deed of trust, or creditor under any other encumbrance prevents the performance of this Team Lease Agreement, Manager shall not be liable to Tenant in any way.
45. FORCE MAJEURE
The parties to this Team Lease Agreement will be excused from the performance of this Team Lease Agreement in whole or in part by reason of any of the following causes:
(a) When such Event is prevented by operation of law.
(b) If the Facility is damaged from any cause whatsoever or if any other casualty or unforeseeable cause beyond the control of the parties, including, without limitation, acts of God, fires, floods, epidemics, quarantine restrictions imposed by government officials, terrorist acts, strikes or labor disputes (though not of the employees of the Tenant), failure of public utilities, or unusually severe weather, prevents occupancy and use, or either, as granted in this Agreement, then the parties shall be relieved of their respective obligations hereunder. In the event performance is excused in accordance with the foregoing provisions, Manager shall refund to Tenant any deposits paid by Tenant, less any reasonable costs and expenses which have been incurred by Manager up to the time further performance is excused.
46. WAIVER
Waiver of one or more of the terms, provisions, conditions or undertakings of this Team Lease Agreement shall be in writing and shall be restricted to its particular scope and shall not operate as a modification of this Team Lease Agreement.
47. SEVERABILITY
The invalidity or illegality of any part of this Team Lease Agreement shall not affect the validity or enforceability of any other part of this Team Lease Agreement.
48. NO PARTNERSHIP
The parties hereto are acting as independent contractors, and this Team Lease Agreement shall not create a partnership, joint venture, agency or employment relationship between the parties.
EXHIBIT 2
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16 49. ASSIGNMENT
Neither this Team Lease Agreement nor any of the rights, duties or obligations of Tenant hereunder shall be assignable or delegable in whole or part, whether by operation of law or otherwise, by Tenant, without the prior written consent of Manager. Any assignment or delegation or attempted assignment or delegation without such consent shall, at the election of Manager, be void and of no force or effect. Manager may assign and delegate its rights, duties and obligations hereunder to (a) any affiliate, or (b) any entity to which Manager is assigning substantially all of its rights and responsibilities as the operator of the Facility (“Permitted Assignments”) without the consent of Tenant. Any other assignment or delegation by Manager other than a Permitted Assignment shall require the prior written consent of Tenant (provided, that the subcontracting by Manager of any aspect of the operation of the Facility to a third party shall not constitute an assignment or delegation for purposes of this provision).
50. ENTIRE AGREEMENT
This Team Lease Agreement supersedes any previous agreements between Tenant and Manager with respect to the presentation of the Production in the Facility, and upon the execution and delivery hereof any rights, duties, obligations and claims arising by reason of any such previous agreements shall be deemed terminated forthwith. In the event of an alteration or amendment of this Team Lease Agreement, the alteration or amendment shall be in writing, shall specifically refer to this Team Lease Agreement and shall be signed by both parties in order for the same to be binding upon the parties.
51. CONSTRUCTION
This Team Lease Agreement shall be governed by and construed in accordance with the laws of the State of California, without reference to its conflicts of law provision.
52. NOTICES
Except as otherwise herein expressly provided, all notices and other correspondence or communication between the parties shall be in writing and shall be delivered, either in person, by email, or by certified or registered mail, return receipt requested, postage prepaid, to the parties at the following addresses:
If to Owner: City of Stockton
501 W. Weber Ave, Building 2
Stockton, CA 95203
Attention: Venues Director
With a copy to: City of Stockton
501 W. Weber Ave, Building 1
Stockton, CA 95203
Attention: City Attorney
If to Manager:
SMG
248 W FREMONT ST
S TOCKTON, CA 95203
Attention: General Manager
EXHIBIT 2
DRAFT
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9/22/26
17 With a copy to:
SMG
300 Conshohocken State Road #770
West Conshohocken, PA 19428
Attention: General Counsel
If to Tenant:
Stockton Crusaders
5674 Stoneridge Drive, #204
Pleasanton, CA 94588
Attention: JGPC Business Law
53. LEGAL FEES
In the event any legal action is taken under this Team Lease Agreement, the prevailing party shall be entitled to have and recover from the losing party reasonable attorney's fees, cost of suit, and all other costs reasonably related to enforcement of its rights under this Team Lease Agreement.
54. COUNTERPARTS
This Team Lease Agreement may be executed in counterparts, each of which together shall constitute one and the same agreement.
55. OWNER EXCULPATION
Tenant acknowledges that this Team Lease Agreement imposes no contractual obligation upon the Owner unless, until and only if the City expressly assumes the obligations of Manager hereunder pursuant to the provisions of the Management Agreement; that the Owner (and its members, directors, officers, agents, employees, independent contractors and consultants as to the indemnities set forth in this Team Lease Agreement) is an express third party beneficiary of this Team Lease Agreement; and that in the event of a default under this Team Lease Agreement by Manager, of any kind or nature whatsoever, Tenant shall look solely to Manager at the time of the default for remedy or relief; and that no member, director, officer, employee, agent, independent contractor or consultant of the Owner shall have any liability hereunder.
EXHIBIT 2
DRAFT
416
9/22/26
18 IN WITNESS WHEREFORE, Tenant, Owner and Manager executed this Event Team Lease Agreement on the date first above written.
TENANT:
Stockton Crusaders
By: ___________________________
Kurt Bryan, Manager & Head Coach
Date: ___________________________
OWNER:
City of Stockton
By: ___________________________
Johnny Ford, City Manager
Date: ___________________________
APPROVED AS TO FORM:
CITY ATTORNEY
BY: ___________________________
ATTEST:
CITY CLERK OF THE CITY OF STOCKTON
BY: ___________________________
MANAGER:
SMG
By: ___________________________
Jason Perry, Regional General Manager
Date: ___________________________
EXHIBIT 2
DRAFT
417
9/22/26
19 EXHIBIT A TO USE TEAM LEASE AGREEMENT
$4.00 venue facility fee on all paid tickets
Tenant must use Ticketmaster ticketing as sole ticketing solution within Adventist Health Arena Cash free venue
Tenant with ensure Manager is trained on proper setup of the Tenant supplied field and equipment. Manager will install the Tenant supplied field with the Tenant responsible for approving the playing surface before any activity on field.
Tenant to pay actual box office credit card fees, up to 3.5%
Tenant to receive a $2.50 per paid ticket rental credit up to 3,000 game day paid tickets and a $3.00 per paid ticket rental credit, back to zero, for game day paid tickets over 3,000 with a cap of 4,200 paid tickets.
This rent credit is per Tenant Event and is not cumulative.
Venue to provide (3) dedicated high speed internet lines at no charge for all Tenant Events.
Venue to provide (1) complimentary 12-person suite excluding F&B for all Tenant Events.
Cost for (1) pair of EMT/Medics + (1) ambulance for players/ back of house, to be absorbed by Tenant
Rent does NOT include:
o Stagehands/IATSE positions as per CBA (including spot ops) o Team Catering
o Credit card fee of 3.5% on all box office sales
o Production rentals/ supplemental sound & lights
o Equipment rentals for anything outside of in-house supply o Runners
o Transportation
o Towels
o K9 sweep (if requested)
o Interpreters (if requested)
o Gases and pyro
o Specific equipment required by the Arena Football One League not currently owned by Adventist Health Arena
Manager retains 100% of the following:
o F&B Concessions sales
o Paid ticket facility fee
Manager agrees to revenue share of the following:
o If Tenant sells a game-day suite Tenant shall retain 60% of the sale price and Manager shall receive the remaining 40% of the sale price.
o If Manager sells a game-day suite Manager shall retain 60% of the sale price and Tenant shall receive the remaining 40% of the sale price.
EXHIBIT 2
DRAFT
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9/22/26
20 Exhibit B:
Insurance Requirements
(Tenant Lease for the Arena)
Lessee 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 Lessee’s operation and use of the leased premises. The cost of such insurance shall be borne by the Lessee.
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 $5,000,000 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 Instructor has no owned autos, Code 8 (hired) and 9 (non-owned), with limits 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 limits of no less than $1,000,000 per accident for bodily injury or disease. (This applies to lessees with employees).
4. If the Lessee 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 Lessee. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City of Stockton.
Other Insurance Provisions
The insurance policies are to contain, or be endorsed to contain, the following provisions:
Additional Insured Status
The City of Stockton, its officers, officials, employees, and volunteers are to be covered as additional insureds on the CGL policy with respect to liability arising out the lease of the subject property including damage caused in whole or in part by Lessee or by those working on your behalf. General liability coverage can be provided in the form of an endorsement to the Lessee’s insurance, at least as broad as ISO Form CG 20 11 12 19 or if not available, CG 20 43 12 19. 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 and ASM Global Parent, Inc.
Primary Coverage
For any claims related to this contract, the Lessee’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, EXHIBIT 2
DRAFT
419
9/22/26
21 its officers, officials, employees, or volunteers shall be excess of the Lessee’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 Lessee’s insurance coverage to the sole negligence of the Named Insured.
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
Lessee hereby grants to City of Stockton a waiver of any right to subrogation which any insurer of said Lessee may acquire against the City of Stockton by virtue of the payment of any loss under such insurance.
Lessee 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 Lessee, its employees, agents and subcontractors. This provision applies regardless of whether or not an endorsement has been issued.
Self-Insured Retentions
Self-insured retentions must be declared to and approved by the City of Stockton. The City of Stockton may require the Lessee 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.
Acceptability of Insurers
Insurance is to be placed with insurers authorized to conduct business in the state with a current A.M. Best’s rating of no less than A:VII, unless otherwise acceptable to the City of Stockton.
Verification of Coverage
Lessee 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 lease commences. However, failure to obtain the documents prior to the lease beginning shall not waive the Lessee’s obligation to provide them. The City of Stockton reserves the right to require complete, certified copies of all required insurance policies, including endorsements required by these specifications, at any time.
Special Risks or Circumstances
City of Stockton reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances.
EXHIBIT 2
DRAFT
420
9/22/26
22 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
And
Adventist Health Arena
248 W Fremont St
Stockton, CA 95203
Attention: General Manager
o
EXHIBIT 2
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421
City of Stockton
Legislation Text
File #: 26-1041, Version: 1
APPROVAL OF A TEMPORARY RECRUITMENT AND RETENTION INCENTIVE AND SIDE
LETTER AGREEMENTS FOR FIRE TELECOMMUNICATION CLASSIFICATIONS IN THE STOCKTON CITY EMPLOYEES’ ASSOCIATION AND THE STOCKTON MID-MANAGEMENT /
SUPERVISORY UNITS
RECOMMENDATION
It is recommended that the City Council adopt by resolution the attached Side Letter Agreements between the City of Stockton (City) and the Stockton City Employees’ Association (SCEA) and the Stockton Mid-Management/Supervisory Level (B&C) Unit. The side letters establish a temporary recruitment and retention incentive for eligible employees in the Fire Telecommunication classifications through June 30, 2029.
It is further recommended that the City Manager be authorized to take any appropriate and necessary actions to carry out the purpose and intent of the resolution, including implementation and funding of the side letter agreements.
Summary
The City, the B&C unit, and the SCEA reached an agreement on temporary incentives intended to support the recruitment and retention of employees in designated Fire Telecommunication classifications within the Fire Department. The proposed side letter agreements provide a ten thousand dollar ($10,000) recruitment incentive for eligible newly hired employees paid out in two installments and retention incentives totaling six thousand dollars ($6,000) for eligible current employees in specified Fire Telecommunication classifications, consisting of three thousand dollars ($3,000) payable in 2026 and three thousand dollars ($3,000) payable in 2027.
The incentives are non-pensionable and are subject to applicable state and federal taxes. The side letter agreements will remain in effect through June 30, 2029, unless otherwise modified by mutual agreement of the parties.
DISCUSSION
Background
The City, the B&C Unit, and the SCEA previously entered into a Recruitment and Retention Side Letter Agreements to support the recruitment and retention of employees in the Fire Telecommunication classifications within their respective bargaining units. This agreement sunsets on June 30, 2026. The City continues to experience recruitment and retention challenges within the Fire Telecommunications operations. Maintaining adequate staffing in these classifications is critical to meeting the operational needs of the Fire Department and ensuring the continued delivery of emergency communications services.
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File #: 26-1041, Version: 1
To enhance the City's ability to recruit qualified candidates and retain experienced employees, the City, the B&C Unit, and the SCEA have agreed to temporary recruitment and retention incentives for designated Fire Telecommunication classifications, as set forth in the proposed side letter agreements.
Present Situation
The proposed side letter agreements establish temporary recruitment and retention incentive programs for eligible new hires and current employees in the following classifications:
· Fire Telecommunications/CAD Coordinator
· Fire Telecommunications Supervisor
· Fire Telecommunicator I/II
· Fire Telecommunicator Call Taker
The proposed recruitment and retention incentives are as follows:
1. New first-time hires in the specified Fire Telecommunication classifications hired on or after July 1, 2026, will be eligible for a one-time signing bonus totaling ten thousand dollars ($10,000). The incentive will be paid in two installments:
· Two thousand five hundred dollars ($2,500) payable no later than the fourth full pay period following hire, or the full pay period following City Council adoption, whichever is later; and
· Seven thousand five hundred dollars ($7,500) payable on the first full pay period following the employee's first anniversary of their employment.
2. Employees in the specified Fire Telecommunication classifications who are employed as of September 29, 2026, will receive a three thousand dollar ($3,000) retention bonus payable by October 15, 2026.
3. Employees in the specified Fire Telecommunication classifications who are employed as of September 29, 2027, will receive a three thousand dollar ($3,000) retention bonus payable by October 15, 2027.
Approval of the proposed side letter agreements will allow the City to implement the temporary incentives to support recruitment and retention of experienced and qualified employees within the Fire Telecommunication operations.
FINANCIAL SUMMARY
The department currently has twenty-nine positions within the specified classifications, with seven vacancies. To incentivize the filling of these positions, the department would need approximately $70,000, on a one-time basis, to implement the provisions of this side-letter agreement for newly hired employees. For the remaining twenty-two current employees, the proposed incentive would require one-time funding of $132,000, bringing the total impact of this agreement to approximately $202,000. The department can fund this request through salary savings.
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Resolution No.
STOCKTON CITY COUNCIL
RESOLUTION APPROVING RECRUITMENT AND RETENTION INCENTIVES AND
SIDE LETTER AGREEMENTS FOR FIRE TELECOMMUNICATION
CLASSIFICATIONS IN THE STOCKTON CITY EMPLOYEES’ ASSOCIATION AND
STOCKTON MID-MANAGEMENT/SUPERVISORY UNITS
The City of Stockton (“City”), the Stockton City Employees’ Association (“SCEA”), and the Stockton Mid-Management / Supervisory Le vel (“B&C”) Unit have reached an agreement on side letters establishing temporary recruitment and retention incentives for designated Fire Telecommunication classifications to enhance the City’s ability to recruit qualified candidates and retain experienced employees; and
The City is experiencing recruitment and retention challenges within its Fire Telecommunications operations . M aintaining adequate staffing in Fire Telecommunication classifications is critical to meeting the operational needs of the Fire Department and ensuring the continued delivery of emergency communications services; and
The proposed side letter agreements establish temporary recruitment and retention incentive programs for eligible employees in the Fire Telecommunications/CAD Coordinator, Fire Telecommunications Supervisor, Fire Telecommunicator I/II, and Fire Telecommunicator Call Taker classifications; and
Under the proposed side letter agreements, new first -time hires in the specified Fire Telecommunication classifications hired on or after July 1, 2026, will be eligible for a one-time recruitment incentive totaling Ten Thousand Dollars ($10,00 0), payable in two installments as follows:
1. Two thousand five hundred dollars ($2,500) payable no later than the fourth full pay period following hire , or the full pay period following City Council adoption, whichever is later; and
2. Seven thousand five hundred dollars ($7,500) payable on the first full pay period following the employee’s first anniversary of employment; and
Employees in the specified Fire Telecommunication classifications who are employed as of September 29, 2026, will be eligible to receive a three thousand dollar ($3,000) retention incentive payable by October 15 2026; and
Employees in the specified Fire Telecommunication classifications who are employed as of September 29, 2027, will be eligible to recei ve a three thousand dollar ($3,000) retention incentive payable by October 15, 2027; and 424
The proposed side letter agreements will remain in effect through June 30, 2029, unless otherwise modified by mutual agreement of the parties . The City Council has reviewed and considered the proposed side letter agreements and finds that approval is in the best interests of the City and its residents; now, therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF STOCKTON, AS FOLLOWS:
1. The City Council hereby approves the B&C Fire Telecommunications Recruitment and Retention Side Letter Agreement, substantially in the form attached hereto as Exhibit 1 and incorporated herein by reference.
2. The City Council hereby approves the SCEA Fire Telecommunicator Recruitment and Retention Side Letter Agreement, substantially in the form attached hereto as Exhibit 2 and incorporated herein by reference.
3. The City Council hereby approves the temporary recruitment and retention incentives established by the side letter agreements for eligible employees in the designated Fire Telecommunication classifications, subject to the terms and conditions of the respective side letter agreements and the availability of funds.
4. The City Manager is hereby authoriz ed and directed to execute the side letter agreements through June 30, 2029.
5. The City Manager and the Director of Human Resources are authorized to take whatever actions are appropriate and necessary to carry out the purpose and intent of this Resolution.
PASSED, APPROVED and ADOPTED September 29, 2026 .
CHRISTINA FUGAZI
Mayor of the City of Stockton
ATTEST:
BONNIE PAIGE
Interim City Clerk of the City of Stockton
425
Side Letter Agreement
To the Memorandum of Understanding effective July 1, 2026 through June 30, 2029, Between the City of Stockton and Mid-Management/ Supervisory Level (B&C) Unit.
This will confirm an understanding reached between the City of Stockton (hereinafter referred to as the “City”) and the Stockton Mid-Management/Supervisory Level (B&C) Unit.
A. Temporary Recruitment Incentives for Newly Hired Telecommunications Supervisors and Fire Telecommunications/CAD Coordinators within the Fire Department
In an effort to increase recruitment , the City and the Association have met and conferred and agree on the following:
1) All new first -time hires in the Fire Telecommunications Supervisor and Fire Telecommunications/CAD Coordinator classifications are eligible for a ten thousand dollar ($10,000) signing bonus when hired on or after July 1, 2026. This provision shall sunset and become ineffective at 11:59 pm on June 30, 2029. This bonus is non - pensionable and subject to applicable state and federal taxes. The bonus will be distributed as follows:
a. Two thousand five hundred dollars ($2,500) payable no later than the fourth full pay period upon hire , or the full pay period following City Council adoption, whichever is later.
b. Seven thousand five hundred dollars ($7,500) payable on the first full pay period following the first anniversary of the employee’s start date. c. Employees who separate prior to their first anniversa ry in the Fire Telecommunications Supervisor or Fire Telecommunications/CAD Coordinator classifications will be required to reimburse the City two thousand five hundred dollars ($2,500) of the signing bonus which they received. d. An employee who transfers into the Fire Telecommunications Supervisor or Fire Telecommunications/CAD Coordinator classifications from the Police Department, shall not be considered a new hire for purposes of this provision and shall not be eligible for the signing bonus.
e. Employees reinstated by Civil Service Resolutions shall not be considered a “new first-time hire ” and shall not be eligible for the new -hire incentive under this provision.
EXHIBIT 1
426
Side Letter Agreement – B&C Fire Tele Supervisor and Fire Telecommunications/CAD Coordinator Recruitment & Retention Incentives
B. Temporary Retention Incentives for Current Fire Telecommunications Supervisors and Fire Telecommunications/CAD Coordinators within the Fire Department
In an effort to increase retention of current employees, the City and the Association have met and conferred and agree on the following:
1) Each employee assigned to the Fire Telecommunications Supervisor or Fire Telecommunications/CAD Coordinator classifications and employed as of September 29, 2026, will receive a Retention Bonus in the amount of three thousand dollars ($3,000) payable by October 15, 2026.
2) Each employee assigned to the Fire Telecommunications Supervisor or Fire Telecommunications/CAD Coordinator classifications and employed as of September 29, 2027, will receive a Retention Bonus in the amount of three thousand dollars ($3,000) payable by October 15, 2027.
3) The parties understand that the City has authorized allocation to fund the above - described temporar y programs through June 30, 2029. Continuation of this temporary recruitment incentive shall be subject to available allocation through the City’s budget process.
4) This side letter agreement shall be effective upon the date this agreement is fully executed by the parties and shall sunset and become ineffective at 11:59 pm on June 30, 2029. This side letter shall not be included in any successor agreement between the parties unless both parties agree to extend this side letter. The provisions of this side letter are not subject to the grievance process.
FOR THE CITY: FOR THE ASSOCIATION:
______________________________________
Johnny Ford
City Manager
Date: _________________
______________________________________
Tony Silva
Labor Representative
Date: _________________
EXHIBIT 1
427
Side Letter Agreement – B&C Fire Tele Supervisor and Fire Telecommunications/CAD Coordinator Recruitment & Retention Incentives
______________________________________
Gilbert Garcia
Administrative Services Director / Chief
Financial Officer
Date: _________________
______________________________________
Almarosa Vargas
B&C President
Date: _________________
_________________________________
Marie Guillory-Jones
Director of Human Resources
Date: _________________
Approved as to form:
________________________________
Donald A. Larkin
Interim City Attorney
Date: ________________
EXHIBIT 1
428
Side Letter Agreement
To the Memorandum of Understanding effective July 1, 2026 through June 30, 2029, Between the City of Stockton and the Stockton City Employees’ Association (SCEA) Unit.
This will confirm an understanding reached between the City of Stockton (hereinafter referred to as the “City”) and the Stockton City Employees’ Association (SCEA) Unit.
A. Temporary Recruitment Incentives for Newly Hired Telecommunicators within the Fire Department
In an effort to increase recruitment , the City and the Association have met and conferred and agree on the following:
1) All new first -time hires in the Fire Telecommunicator Call Taker, Fire Telecommunicator I, and Fire Telecommunicator II classifications are eligible for a ten thousand dollar ($10,000) signing bonus when hired on or after July 1, 2026. This provision shall sunset and become ineffective at 11:59 pm on Jun e 30, 2029. This bonus is non -pensionable and subject to applicable state and federal taxes. The bonus will be distributed as follows:
a. Two thousand five hundred dollars ($2,500) payable no later than the fourth full pay period upon hire , or the full pay period following City Council adoption , whichever is later.
b. Seven thousand five hundred dollars ($7,500) payable on the first full pay period following the first anniversary of the employee’s start date. c. Employees who separate prior to their first anniversa ry in a Fire Telecommunicator classification will be required to reimburse the City two thousand five hundred dollars ($2,500) of the signing bonus which they received. d. An employee who transfers into a Fire Telecommunicator classification from the Police Department, shall not be considered a new hire for purposes of this provision and shall not be eligible for the signing bonus. e. Employees reinstated by Civil Service Resolutions shall not be considered a “new first-time hire ” and shall not be eligible for the new -hire incentive under this provision.
B. Temporary Retention Incentives for Current Telecommunicat ors within the Fire Department
In an effort to increase retention of current employees, the City and the Association have met and conferred and agree on the following:
EXHIBIT 2
429
Side Letter Agreement – SCEA Fire Tele Recruitment & Retention Incentives
1) Each employee assigned to the Fire Telecommunicator Call Taker, Fire Telecommunicator I, and Fire Telecommunicator II classifications and employed as of September 29 , 2026, will receive a Retention Bonus in the amount of three thousand dollars ($3,000) payable by October 15, 2026.
2) Each employee assigned to the Fire Telecommunicator Call Taker, Fire Telecommunicator I, and Fire Telecommunicator II classifications and employed as of September 29, 2027, will receive a Retention Bonus in the amount of three thousand dollars ($3,000) payable by October 15, 2027.
3) The parties understand that the City has authorized allocation to fund the above - described temporary programs through June 30, 2029. Continuation of this temporary recruitment incentive shall be subject to available allocation through the City’s budget process.
4) This side letter agreement shall be effective upon the date this agreement is fully executed by the parties and shall sunset and become ineffective at 11:59 pm on June 30, 2029. This side letter shall not be included in any successor agreement between the parties unless both parties agree to extend this side letter. The provisions of this side letter are not subject to the grievance process.
FOR THE CITY: FOR THE ASSOCIATION:
______________________________________
Johnny Ford
City Manager
Date: _________________
______________________________________
Mehran Tahoori
SCEA Attorney
Date: _________________
______________________________________
Gilbert Garcia
Administrative Services Director / Chief
Financial Officer
Date: _________________
EXHIBIT 2
430
Side Letter Agreement – SCEA Fire Tele Recruitment & Retention Incentives
_________________________________
Marie Guillory-Jones
Director of Human Resources
Date: _________________
Approved as to form:
________________________________
Donald A. Larkin
Interim City Attorney
Date: ________________
EXHIBIT 2
431
City of Stockton
Legislation Text
File #: 26-1029, 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
This item was presented to the Council on September 1, 2026. At that time, the Council asked staff to bring the item back on September 29, 2026, with additional information regarding premium contribution split of 80/20 percent and 85/15 percent and the associated cost to the City.
Administrative Services Department will be presenting this information. There are no additional changes from the original report.
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%
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· 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%
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
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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
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
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File #: 26-1029, Version: 1
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 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 9/24/2026Page 4 of 4
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435
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
436
Agenda • Executive Summary
• Medical Plan Renewal
• Ancillary Renewals
• Contributions
• Open Enrollment and Benefits Fair
2 ATTACHMENT A
437
Executive Summary
ATTACHMENT A
438
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
439
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
440
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
441
Medical Renewal and
Marketing
ATTACHMENT A
442
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
443
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
444
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
445
Sutter Health Plan
Renewal
ATTACHMENT A
446
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
447
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
448
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
449
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
450
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
451
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
452
Kaiser Renewal
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ATTACHMENT A
453
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
454
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
455
Kaiser - Periodic Utilization Review (PUR)
PMPM by Service Category
21 ATTACHMENT A
456
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
457
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
458
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
459
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
460
Ancillary Renewals
ATTACHMENT A
461
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
462
Dental Renewal
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ATTACHMENT A
463
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
464
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
465
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
466
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
467
Vision Renewal
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ATTACHMENT A
468
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
469
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
470
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
471
EAP Renewal
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ATTACHMENT A
472
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
473
Contributions
ATTACHMENT A
474
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
475
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
476
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
477
OE and Benefits Fair
ATTACHMENT A
478
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
479
© 2026 Alliant Insurance Services, Inc.
CA License No. 0C36861
ATTACHMENT A
480
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
481
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
482
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
483
City of Stockton
Legislation Text
File #: 26-0930, Version: 1
APPROVE FINDINGS AND AUTHORIZE ADDITIONAL FUNDS FOR SOLE SOURCE
AGREEMENT WITH MUNICIPAL MAINTENANCE EQUIPMENT INC FOR MUNICIPAL UTILITIES
CAMERA REPAIR SERVICES AND MATERIALS (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 which support an exception to the competitive bidding process.
2. Authorize additional funds to the existing five-year sole source agreement with Municipal Maintenance Equipment Inc. of Sacramento, CA, in an amount not to exceed $450,000 for camera repair services and materials (Exhibit 1 to the Resolution).
It is further recommended that the City Manager be authorized to take appropriate and necessary actions to carry out the purpose and intent of this resolution.
Summary
The Municipal Utilities Department (MUD) Collections Division is responsible for the operation and maintenance of citywide stormwater and wastewater collection systems. MUD staff routinely use specialized camera systems to monitor and evaluate the integrity and operation of sewer and stormwater pipelines. The specialized camera systems require routine maintenance and repair to work properly.
If approved by the City Council, this action will authorize additional funds for the existing five-year sole-source agreement with Municipal Maintenance Equipment Inc., the sole source for RapidView IBAK camera equipment, parts, and repairs, in an amount not to exceed $450,000.
DISCUSSION
Background
MUD staff routinely monitor stormwater and sewer pipelines for integrity, blockages, and project evaluations. Staff uses specialized Rapidview IBAK camera systems and three camera trucks to gather highly detailed video reports in accordance with industry standards and best practices.
RapidView is a proprietary brand that requires specialized repair services and replacement of parts with authentic IBAK materials to maintain proper operation. MME is the exclusive dealer and source for RapidView camera equipment, parts, and repairs in California.
City of Stockton Printed on 9/24/2026Page 1 of 2
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484
File #: 26-0930, Version: 1
In October 2025, under the authority of the City Manager, a five-year sole-source agreement with MME was approved for $80,000 in RapidView parts, maintenance, and repair services for fiscal year 2025-26.
Present Situation
The cost of RapidView parts, maintenance, and repair services necessary to maintain the camera systems in accordance with manufacturer’s specifications are expected to exceed the $80,000 approved in 2025. Staff has determined that the estimated cost of such services through 2030 will require an additional $450,000. If approved by the City Council, this action will authorize the addition of funds to the existing five-year sole-source agreement with MME in an amount not to exceed $450,000.
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. Maintaining the equipment according to proprietary protocols and manufacturer specifications is essential to ensure the camera systems operate reliably and as intended to monitor stormwater and sewer pipelines.
2. Municipal Maintenance Equipment Inc. is the only authorized dealer of and provider of repair services and replacement parts for Rapidview IBAK camera systems in this region.
3. Providing adequate funding for ongoing maintenance is in the public’s best interest, as it protects prior investments and prevents the need to prematurely replace expensive equipment that is already in service.
4. The services provided during the first year of the agreement were satisfactory, demonstrating the vendor’s ability to meet performance expectations and support the continued reliability of the camera systems.
FINANCIAL SUMMARY
The estimated annual cost is $75,000. There are sufficient funds in the Wastewater Collections Division accounts 6520-000-630013-610-000-00-65-000-000 to support the repair services and materials required for FY 2026-27. Funding for subsequent years will continue to be budgeted in these account, subject to City Council approval through the annual budget process.
This action has no impact on the General Fund or any other unrestricted funds.
City of Stockton Printed on 9/24/2026Page 2 of 2
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485
Resolution No.
STOCKTON CITY COUNCIL
RESOLUTION AUTHORIZING ADDITIONAL FUNDS FOR SOLE SOURCE
AGREEMENT WITH MUNICIPAL MAINTENANCE EQUIPMENT INC FOR MUNICIPAL
UTILITIES CAMERA REPAIR SERVICES AND MATERIALS
The Municipal Utilities Department Collections Division (MUD) monitors and evaluates stormwater and sanitary wastewater sewer lines using specialized Rapidview IBAK camera systems; and
The Rapidview IBAK camera systems require Municipal Maintenance Equipment (MME) repair services and replacement parts to maintain proper operation.
Consequently, MME is the sole available source for repair services and materials; and
The Rapidview IBAK camera systems are operated and maintained by MUD Collections staff. The proposed additional funds allow staff to purchase the necessary repair services and materials to ensure proper maintenance of the camera systems; now, therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF STOCKTON, AS FOLLOWS:
1. The City Council a pproves the following findings pursuant to Stockton Municipal Code section 3.68.070 to support and justify an exception to the competitive bidding process:
a. Maintaining the equipment according to proprietary pro tocols and manufacturer specifications is essential to ensure the camera systems operate reliably and as intended to monitor stormwater and sewer pipelines.
b. Municipal Maintenance Equipment Inc. is the only authorized provider of repair services and replacement parts for Rapidview IBAK camera systems in this region.
c. Providing adequate funding for ongoing maintenance is in the public’s best interest, as it protects prior investments and prevents the need to prematurely replace expensive equipment that is already in service.
d. The services provided during the first year of the agreement were satisfactory, demonstrating the vendor’s ability to meet performance expectations and support the continued reliability of the camera systems. //
//
//
//
//
486
2. The City Council authorizes additional funds to the existing five-year sole source agreement, in an amount not to exceed $450,000 with Municipal Maintenance Equipment Inc. of Sacramento, CA , for camera repair services and materials, 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 29, 2026 .
CHRISTINA FUGAZI
Mayor of the City of Stockton
ATTEST:
BONNIE PAIGE, CMC
Interim City Clerk of the City of Stockton
487
Justification For:
N Sole Source
Good, technology, or service is available from only one vendor/source
D 8ole Brand Bids will be solicited for specified brand only [] Single Available Department selects single vendor over others Transaction Type,
Frequency &
Criteria:
N Goods
!! ServJce
CI Technology
CI One Time [a Annual 0 Pilot
!! OEM/Proprietary [1 Compatibility CI Continuity
Documentation
Attach: fflYes
R Budgeted Funds
CI Grant Award'
[1 Special Funds
Request is: [EI New [1 Ren_ewal
(If this is a renewal, new documentation is required to be attached to and submitted with the form)
Requested contractor Name
or Sole Brand Item Name: Municipal Maintenance Equipment Vendor Address: 4634 MAYHEW RD SACRAMENTO CA 95827
Price (Estimated}:
0 Annual
$ 80,000.00 [- Term of Agreement
Approved Period:
(l;plid for one year unleas
associated with a multi-year
agreement,)
Start Date:
-10/01/2025
End Date:
06/30/2030 "
'}NfAffi%'Flgllk'!417,iPjk'l!'l'f!'21!l'J!"t'l'A'Jjl'!'ffil(9;40111!El!l!lll'll"l ' 1. Brief!y describe what specific good(s) and/or service is needea-and why.
RapidView IBAK inspection camera equipment Is used to in sewer pipelines by MUD staff to evaluate and inspect pipeline operational and physical heath in conjunction with industry standard software. Tlie i MLID currently operate 4 IBAK camera systems using 3 specialized trucks, which are used for routine, preventative inspections, as well as emergency inspections. The City-owned IBAK camera systems periodically need off-site specialized maintenance and repair services.
2. Why is this procurement restricted to this good/service supplier? The IBAK inspection camera system parts and service are exclusively provided by Municipal Maintenance Equipment for the California and Nevada region. 3 2-(o3
June 16 2025
EXHIBIT 1
488
3. Describe the uniqueness of the procurement.
The RapidView IBAK camera systems and service trucks were determined to be the best in class, and initially procured through a co-operative contract. The camera systems are attachments to the specialized service trucks. The camera systems require specialized repair parts and service which Is done off-site.
4. What are the consequences of not purchasing the good(s) and/or service or contracting with the proposed supplier? Provide any applicable documentation to support your statements.
In order to maintain proper operation, the MUD's owned and operated equipment must be repaired in accordance with the manufacturer's specified parts and service. Municipal Maintenance Equipment is the sole source for IBAK pipeline inspection equipment, parts, and service in the state of California.
5. What market research, including evaluation of other items, was conducted to substantiate no competition?
The RapidView IBAK equipment is exclusively repaired by Municipal Maintenance Equipment in accordance with the manufacturer's specifications.
4 "1. Describe the commodity, te:,hnology or item needed to meet your requirement and why it is needed. Inc(ude the brand name, manufacturer, and model number. If needed for compatibility purposes, provide the manufacturer and model number of your existing equipment.
2. What are the unique performance features/factors of the product specified that are essential to your requirements and that are not available in any other product or brand? June 16 2025
EXHIBIT 1
489
3. Please provide a brief, yet technical explanation as to why these features are essential and required.
N/A
4. What competing brands were investigated and examined (e.g. products with similar capabilities, list specific brands/models of competitors)? Why are these products being rejected (e.g, how did they not meet some or all of the features' requirements list in items 3)? What other suppliers did you contact? (please include company names and address).
N/A
gaa lllFal31Failj =JiajT ail ilAFil iNLl laalT!Tlfff!-lflf!Illll!l'Jajll . a " _ml& j.l .... .
1. How was the price offered determined to be fair and reas-o-na- b-le : add-:-t7o-n-a-lsheets-,-a-s- necessary)
Comprehensive labor rates have been provided by the OEM vendor.
2. Describe any cost savings realized, or costs avoided by acquiring the goods/services from this supplier. (attach additional sheets, as necessary) N/A
NOTE: Justification requests submitted without adequate information in support of limiting competitive bidding will be returned to the originating department. For the purposes of this statement, "adequate" is defined as s*ibstantive information or data. Any miasing in'ormation may delay the processing of this recuest or result in the return of this form to the ort:inatin', departrr7;nt. , , i1 ai'Hk!'jVl'!ffi-X'l'4'l-- jfffi1i-l!ll'lVl 'l-*lllffl I am aware of the City of Stockton requiremeants set forth in the City of Stockton Charter, Municipal Code and Purchasing Manual for competitive bidding and the requirement for justification of a sole/single available source purchase reques,t. Procurement reserves the right to competitively bid, negotiate pricing or to solicit additional information. As an approved department representative, I have gathered technical information and made a diligent effort to review comparable/equal good or service, and sources for this purchase as documented. I hereby certify the validity of the information contained herein and feel confident the icistification for sole/single available source meets the criteria and is accurate. I understand that this request and supporting documentation may be subject to audits and protests and that I may be called upon to appear to justify this request. This action is also governed by the legal authority per SMC 3.68.060 (City Manager delegated contracting authority up to $"lO0,000.) 5 June 16, 2025
EXHIBIT 1
490
, Name of Requesting Department:
Municipal Utilities Department
Requesting Department's Representative
(Signature/Printed name):
Paul Acosta
$-."-
Requesting Department Director (or Designee)
(Signature/Printed named. / /1
,/'/l,/',/"a /./ l l -4 'l ,-/ / hi 'I / I ly t.i i i_x t i/ I } i i i i i v--
}a
_%'
/
Approved: (eS a NO '
oateJk_ }"",.1"'. V,,..,(J_=,-17l__l__l__......
If no, briefly state reason why:
ffl. " - 'l- ' @ ' <lR4)jjl k!#Jl?j:'!A!!141 '
DEPARTMEN'T p SELECT AT LEAST ONE (1) IF FEDERAL FUNDS ARE USED € 1. Item is only available from a single source. [] 2. After solicitation of several documented sources competition is determined to be inadequate. € 3. Federal or State pass-through entity expressly authorizes use of this method in response to a written request; and
[] 4. A public emergency or exigency exists that will not permit delay resulting from competitive solicitation. /"
-l 'i '
APPROVED: @Yes [] No
Procurement Supervisor (Or Designee) Initial & Date q- ")_'€a%
Pro ementSpe6ialist(OrDesignea)Initiql&Date
Procurement Manager (or Designee) Sign & Date:
ffl cs->s->K
If no, briefly state reason why:
yhiffi- k i-ffl <bz-'%--- iy- rai--i*..?:l- o rii-a-.
If no, briefly state reason why:
,/,Ank u_,_dIe;
J4MJi'!iliYi!el4i '
jCity Manager (Or D-esa)Si ture: ' "-Comments: "'-"- ,/ ff i7-
Dater- / /
/O/ to[@6
6 CITYCO(JNCILAPPROVAL(REQUIREDIFSOLE/SINGLEAVAILABLESOuRCEEXCEED-S, $100,000)
June 16, 2025
EXHIBIT 1
491
February 24, 2025
Re: Sole Source
To whom it may concern:
RapidView LLC and its dealer, Municipal Maintenance Eqtiipment, are the sole source for RapidVlew IBAK pipeline inspection and rel'iabilitatlon equipment and parts and service in states of California and Nevada (excluding Clark County).
Sincerely,
Steve Keranko
Director of Sales
RapidView LLC
574-224-5450 I 800-656-4225 j [email protected]
RapidView IBAK North America
1828 W. 015011 RCI. I Rochester, IN 46975
Toll Free: (800) 656-4225 i Fax: (574) 223-7953
Email: info@rap}dview.com i www.rapldview.oom
EXHIBIT 1
492
City of Stockton
Legislation Text
File #: 26-0931, Version: 1
APPROVE FINDINGS AND AUTHORIZE THE PURCHASE OF MEMBRANE FILTERS AND
REPLACEMENT PARTS FROM ENVIRONMENTAL DYNAMICS INTERNATIONAL (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, which support an exception to the competitive bidding process.
2. Authorize a nine-year sole source agreement with Environmental Dynamics International of Columbia, MO, in an amount not to exceed $900,000, for the purchase of membrane filters and replacement parts for the Regional Wastewater Control Facility (Exhibit 1 to the Resolution).
It is further recommended that the City Manager be authorized to take appropriate and necessary actions to carry out the purpose and intent of this resolution.
Summary
The Municipal Utilities Department (MUD) Wastewater Utility operates the Regional Wastewater Collection Facility (RWCF), an advanced tertiary treatment plant with a capacity of 55 million gallons per day (MGD) located next to the San Joaquin River.
MUD staff operate and maintain equipment used in wastewater treatment, including four aeration basin systems to remove biological contaminants. The aeration basin systems require routine maintenance and repair to work properly.
If approved by the City Council, this action will authorize a nine-year sole-source justification with Environmental Dynamics International for the purchase of membranes and replacement parts, in an amount not to exceed $900,000.
DISCUSSION
Background
During the construction of the RWCF Modifications Project, outdated aeration basin systems were replaced by four Environmental Dynamics International aeration basin systems.
The Environmental Dynamics International aeration basin system uses the FlexAir Aeration/Mixing System membrane filters to remove biological contaminants during wastewater treatment. Each of City of Stockton Printed on 9/24/2026Page 1 of 3
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File #: 26-0931, Version: 1
the four basins contains approximately 8,400 membrane filters, which have a useful lifespan of three to five years.
Annually, the MUD will complete a full replacement of all membrane filters for one basin on a rotating basis to ensure each basin continues to operate properly. Because Environmental Dynamics International membrane filters and fixture materials are proprietary, they must be replaced with authentic Environmental Dynamics International components to maintain proper system performance.
In April 2026, under the City Manager's authority, a two-month sole-source agreement for $80,000 was approved for the one-time purchase of necessary components.
Present Situation
The Environmental Dynamics International aeration basin systems are operated and maintained by MUD Maintenance staff. However, the systems require routine part replacements to continue performing as designed by the manufacturer. Currently, Environmental Dynamics International is the sole manufacturer and source of the FlexAir Aeration/Mixing System required membrane filters and replacement parts.
If approved by the City Council, this action will authorize a nine-year sole-source agreement with Environmental Dynamics International of Columbia, MO, in an amount not to exceed $900,000, for the purchase of membrane filters and replacement parts for the Regional Wastewater Control Facility.
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. Maintaining the aeration basin systems according to manufacturer specifications is essential to ensure they effectively remove biological contaminants during the sewer treatment process.
2. The Environmental Dynamics International aeration basins require the use of original manufacturer materials for proper operation, performance guarantees, and the lowest life- cycle cost.
3. Environmental Dynamics International is the only manufacturer and source of the required membranes and replacement parts in the United States.
4. Maintaining and repairing the Environmental Dynamics International aeration basin systems is more cost-effective than replacing them with an alternative system.
FINANCIAL SUMMARY
The estimated annual cost is $100,000. There are sufficient funds in the Wastewater Maintenance Division account 6512-000-650001-610-000-00-65-000-000 to support the cost of membranes and replacement parts for FY 2026-27.
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File #: 26-0931, Version: 1
Funding for subsequent years will continue to be budgeted in these accounts, subject to City Council approval through the annual budget process.
This action has no impact on the General Fund or any other unrestricted funds.
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Resolution No.
STOCKTON CITY COUNCIL
RESOLUTION APPROVING FINDINGS AND AUTHORIZING THE PURCHASE OF
MEMBRANE FILTERS AND REPLACEMENT PARTS FROM ENVIRONMENTAL
DYNAMICS INTERNATIONAL FOR THE REGIONAL WASTEWATER CONTROL
FACILITY
The Regional Wastewater Control Facility (RWCF) Modifications Project replaced the outdated aeration basin systems with four Environmental Dynamis International (EDI) aeration basin systems to remove biological contaminants from collected wastewater; and
The EDI aeration basin systems require EDI repair and replacement parts to maintain proper operation; and
EDI is the sole manufacturer and source for replacement membrane filters and materials; and
The EDI aeration basin systems are operated and maintained by MUD Maintenance staff but require EDI replacement parts to continue performing as designed by the manufacturer; now, therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF STOCKTON, AS FOLLOWS:
1. The City Council a pproves the following findings pursuant to Stockton Municipal Code Section 3.68.070 to support and justify an exception to the competitive bidding process:
a. Maintaining the aeration basin systems according to manufacturer specifications is essential to ensure they effectively remove biological contaminants during the sewer treatment process.
b. The EDI aeration basins require the use of original manufacturer materials for proper operation, performance guarantees, and the lowest life -cycle cost.
c. EDI is the manufacturer and sole provider of required membranes and replacement parts in the United States.
d. Maintaining and repairing the EDI aeration basin systems is more cost - effective than replacing them with an alternative system.
2. The City C ouncil authorizes a nine-year sole source agreement with Environmental Dynamics International of Columbia, MO , in an amount not to exceed $900,000, for the purchase of membrane filters and replacement parts 496
for the aeration basin systems , 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 29, 2026 .
CHRISTINA FUGAZI
Mayor of the City of Stockton
ATTEST:
BONNIE PAIGE, CMC
Interim City Clerk of the City of Stockton
497
EXHIBIT 1
498
EXHIBIT 1
499
EXHIBIT 1
500
EXHIBIT 1
501
EXHIBIT 1
502
EXHIBIT 1
503
EXHIBIT 1
504
City of Stockton
Legislation Text
File #: 26-0939, Version: 1
ADOPT A RESOLUTION OF INTENTION TO ANNEX TERRITORY TO A MUNICIPAL
IMPROVEMENT DISTRICT AND LEVY ANNUAL STORM DRAINAGE MAINTENANCE ASSESSMENTS (DISTRICT 6)
RECOMMENDATION
It is recommended that the City Council approve a Resolution of Intention to:
1. Provide intent to annex assessor’s parcel number 177-020-78, owned by Applied Aerospace Structures Corporation, into the Western Pacific Industrial Park Assessment District for the maintenance and operation of storm drainage improvements.
2. Specify that the public interest would be served by annexing the parcel into the Western Pacific Industrial Park Assessment District and levying annual assessments for the costs to maintain and operate the storm drainage improvements.
3. Preliminarily approve the Proposed 2027-2028 Fiscal Year Budget, the schedule of parcels and assessment amounts for the 2027-2028 fiscal year, and Amendment No. 12 to the Amended Assessment Diagram for the Western Pacific Industrial Park Storm Drainage Basin Maintenance District (Attachment A).
4. Set the Public Hearing date on December 8, 2026, and direct the City Clerk to mail public notice to the affected property owners by October 23, 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 Applied Aerospace Structures Corporation (AASC) development must install, operate, and maintain a stormwater quality treatment device.
All property owners subject to assessment of the annual costs of the storm drain improvements submitted written consents for annexation to the City Clerk. Siegfried Engineering, 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.
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File #: 26-0939, Version: 1
The owner of assessor’s parcel number 177-020-78 has agreed to annex into the Western Pacific Industrial Maintenance District as a condition of their building permit. This annexation does not increase the District’s overall maintenance, replacement, or reserve obligations, and the parcel will be assessed consistently with existing District requirements. The annexation also complies with Proposition 218, as the parcels within the District receive 100% special benefit from the storm drainage improvements and 0% general benefit.
Staff recommend that the City Council approve the proposed Resolution to schedule the Public Hearing on December 8, 2026.
DISCUSSION
Background
In 1985, the City Council approved the formation of Western Pacific Industrial Park Basin Assessment District by Resolution 85-0470. The District is responsible for maintaining the stormwater detention basin, including the discharge pumps and associated equipment that release stormwater into Duck Creek, as defined in the original report and the subsequent amendments to date.
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.
AASC assessor’s parcel number 177-020-78 (Attachment B) consists of an industrial building complex of approximately 10 buildings and associated site improvements. Recent expansion of the site, along with related City permit requirements, necessitates the parcel’s annexation into the District to participate in the ongoing maintenance of the stormwater drainage improvements.
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, assessor’s parcel number 177-020-78 will be annexed into the Western Pacific Industrial Park Assessment District (Attachment C) to fund costs associated with operating, maintaining, and replacing the pump station.
Funding for Western Pacific Industrial Park Assessment District will be provided through an annual assessment based on the stormwater runoff from individual parcels. The proposed 2027-2028 maximum annual assessment for assessor’s parcel number 177-020-78 is $971.04. Subsequent assessments will be presented to the City Council for consideration annually.
The maximum annual assessment may increase each year by the greater of 3% or the change in the Consumer Price Index, as needed to meet rising maintenance costs.
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File #: 26-0939, Version: 1
The funds collected from property owners within a district may only be used for work on the basin serving that district, as the resulting benefits apply exclusively to properties located there. Each district’s funds are segregated and cannot be used to operate, maintain, or support stormwater activities or any other utility outside that district.
FINANCIAL SUMMARY
The City of Stockton makes no financial contribution to the Western Pacific Industrial Park Assessment District or any of the Districts. All costs are paid by the property owner/developer through the annual tax roll. The use of the funds collected within the Western Pacific Industrial Park Assessment District or within the various districts is restricted by Proposition 218 to pay only for the expenses related to the maintenance and operation of the specific storm drainage basin for which they were collected. The proposed FY 2027-2028 assessment for AASC parcel number 177-020-78 is $971.04.
This action has no impact on the General Fund or any other unrestricted funds.
Attachment A - Western Pacific Industrial Park Amendment 12 - AASC Annexation Storm Drainage Basin Maintenance District
Attachment B - Boundary Map
Attachment C - Storm Drainage Basin Districts Location Map City of Stockton Printed on 9/24/2026Page 3 of 3
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Stockton San Jose Sacramento Modesto
3428 Brookside Rd. 84 W Santa Clara St., #700 1164 National Dr, #20 100 Sycamore Ave, #100 Stockton, CA 95219 San Jose, CA 95113 Sacramento, CA 95834 Modesto, CA 95354 t: 209.943.2021 t: 408.754.2021 t: 916.520.2777 t: 209.762.3580 F:\17projects\17100 Applied Aerospace Structures Corporation\2026 Western Pacific Annexation\17100 Western Pacific Basin Amendment 12 AASC Annexation FY 26-27 Ver
1.docx
A
ugust 6, 2026
Dagmara Saini
City of Stockton Municipal Utilities Department
2500 Navy Dr.
Stockton CA 95206
Dear Dagmara:
Subject: Western Pacific Industrial Park Amendment 12 – AASC Annexation Storm Drainage Basin Maintenance District
On behalf of Siegfried Engineering, Inc., Engineer of Work for the subject maintenance district, I am submitting the following documents for the annexation of the Applied Aerospace Structures Corporation (AASC) assessor’s parcel number 177-020-78 into the subject Western Pacific Industrial Park Maintenance District:
1. Attachment A - Proposed 2027-2028 Fiscal Year Budget.
2. Attachment B - Schedule of parcels and assessment amounts for the 2027-2028 fiscal year.
3. Attachment C - Amendment No. 12 to the Amended Assessment Diagram for Western Pacific Industrial Park Storm Drainage Basin Maintenance District.
The parcel owner has agreed to this annexation as part of the development conditions of building permit BP23-08762. The addition of the parcel to the District does not increase the maintenance burden or replacement and reserve requirements. This submittal appropriately addresses the requirements of Proposition 218 in that the parcels within the subject district receive one hundred percent (100%) of special benefits from the subject district and zero percent (0%) of general benefits.
Sincerely,
_________________________________
Paul J. Schneider, QSD, QSP, P.E.
Pr
esident | Managing Principal
SIEGFRIED
Attachments:
Atta
chment A – FY 27-28 Budget
Attachment B – FY 27-28 Roll
Attachment C – Western Pacific Assessment Diagram Amendment 12
ATTACHMENT A
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F:\26projects\26090 4101 Airport Way Western Pacific Industrial Basin Annexation\Working Documents\Contracts and Proposals\26090 Western Pacific Budget FY 27-28.docx
WESTERN PACIFIC INDUSTRIAL PARK
S
TORM DRAINAGE BASIN MAINTENANCE DISTRICT
PROPOSED 2027-2028 FISCAL YEAR BUDGET
Inspection, Maintenance & Graffiti Control $14,950.00
Fence Repairs $0.00
Operational Costs $14,950.00
Ci
ty of Stockton Publicity and Advertising Costs $85.00
Maintenance District Attorney Fee $1,432.00
San Joaquin County Processing Fees $105.00
District Engineering Annual Engineer’s Report $2,326.00 Professional Services $0.00
City of Stockton Administrative Costs $3,500.00
Total Administrative Costs $7,448.00
Co
ntingency $2,229.54
Total 2027-2028 Budget $24,627.54
Amount allocated from reserve ($7,307.86)
Amount to be assessed by
Western Pacific Industrial Park $17,319.68
FY2027-2028 Maximum Total Assessment Amount $17,320.00
The improvements being maintained by this district are a storm water retention basin and appurtenances which are site specific to the parcels being assessed. The improvements and appurtenances do not provide any benefit to any parcel or parcels outside the boundaries of the district. In the opinion of the undersigned, the benefits received by the parcels assessed within the Western Pacific Industrial Park, Storm Drain Maintenance District, from the Western Pacific Industrial Park, Storm Basin Maintenance District, are identified as set forth by Proposition 218 as follows:
Special Benefits-100%
General Benefits - 0%
Siegfried Engineering, Inc.
Engineer of Work,
___________________________________ _______________
Paul J. Schneider, P.E. Date
2026-08-06
ATTACHMENT A
509
WESTERN PACIFIC INDUSTRIAL PARK
STORM DRAINAGE BASIN MAINTENANCE DISTRICT
Maintenance Assessor's 2026-2027
District Parcel Adjusted Drainage Assessment
Assessment No. Number Area (Acres) Amount
7 177-020-39 0.00 $0.00
15 177-280-16 0.63 $24.54
28 177-280-17 0.00 $0.00
33 177-280-20 5.00 $194.82
34 177-280-24 10.00 $389.66
39 177-280-08 2.90 $113.00
40 177-280-09 3.10 $120.78
41 177-280-10 5.00 $194.82
48 177-280-32 24.24 $944.54
59 177-270-04 3.17 $123.52
60 177-270-05 5.85 $227.94
81 177-270-24 2.69 $104.82
82 177-270-23 4.60 $179.24
90 177-020-56 18.51 $721.26
91 177-020-57* 0.80 $31.16
92 177-020-58* 0.71 $27.66
93 177-020-59 10.35 $403.30
96 177-270-20 20.16 $785.56
99 177-280-42* 0.47 $18.30
100 177-280-43 5.65 $220.16
101 177-280-44 11.04 $430.18
102 177-280-45* 0.91 $35.44
103 177-280-48 10.30 $401.34
104 177-280-51 0.14 $5.44
106 177-280-21 23.72 $924.28
109 177-020-68 0.79 $30.78
111 177-280-59 3.95 $153.90
112 177-280-60 3.45 $134.42
113 177-020-73 9.12 $355.36
114 177-270-29 27.36 $1,066.12
115 177-280-58 9.11 $354.98
116 177-270-30 5.93 $231.06
117 177-270-31 14.51 $565.40
118 177-020-76 20.88 $813.62
119 177-020-77 45.67 $1,779.60
122 177-280-61 53.69 $2,092.12
123 177-280-62 8.56 $333.54
124 177-280-63 7.38 $287.56
125 177-280-64 39.22 $1,528.28
126 177-020-78 24.92 $971.04
444.48 $17,319.54
* - Indicates parcel to be hand billed
DO NOT SEND PARCELS REQUIRING SEPARATE BILLING TO COUNTY AUDITOR Schedule of Parcels, Adjusted Drainage Areas and
Assessment Amounts for 2026-2027 Budget
April 9, 2026
F:\26projects\26012 City of Stockton CSDMD\26-27 Reports\Basins\26012 Western Pacific Basin Roll FY 26-27.xlsx ATTACHMENT A 510
3428 Brookside Road Stockton, California 95219
2 0 9 - 9 4 3 - 2 0 2 1 w w w . s i e g f r i e d e n g . c o m F x : 2 0 9 - 9 4 2 - 0 2 1 4 CIVIL
ENGINEERING
STRUCTURAL
ENGINEERING
SURVEYING
PLANNING
ATTACHMENT A
511
3428 Brookside Road Stockton, California 95219
2 0 9 - 9 4 3 - 2 0 2 1 w w w . s i e g f r i e d e n g . c o m F x : 2 0 9 - 9 4 2 - 0 2 1 4 CIVIL
ENGINEERING
STRUCTURAL
ENGINEERING
SURVEYING
PLANNING
ATTACHMENT B
512
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CHARTER WAY
INDUSTRIAL PARK
ARCH ROAD
INDUSTRIAL PARK
WESTERN PACIFIC
INDUSTRIAL PARK
AIRPORT
GATEWAY
STOCKTON AIRPORT
BUSINESS CENTER
NORTH NEWCASTLE
Legend
City Limits
County Pockets
MUNICIPAL UTILITIES
DEPARTMENT
STORM DRAINAGE BASIN
MAINTENANCE DISTRICTS
®
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ATTACHMENT C
513
Resolution No.
STOCKTON CITY COUNCIL
RESOLUTION OF INTENTION TO ANNEX TERRITORY TO A MUNICIPAL
IMPROVEMENT DISTRICT TO MAINTAIN AND OPERAT E STORM DRAINAGE
IMPROVEMENTS, PROVID E ANNUAL ASSESSMENTS , APPROVE A PROPOSED
BOUNDARY MAP AND APPOINT ENGINEER OF WORK
CITY OF STOCKTON
WESTERN PACIFIC INDUSTRIAL PARK STORM DRAINAGE MAINTENANCE
DISTRICT
APPLIED AEROSPACE STRUCTURES CORPORATION ANNEXATION
The City of Stockton p roposes to annex assessor’s parcel number 177 -020-78, owned by Applied Aerospace Structures Corporation, into the Western Pacific Industrial Park Assessment District , initiate special assessment pro ceedings for the annexation, and assess annual storm drainage operation and maintenance costs upon the parcels and properties benefited by the improvements in the Western Pacific Industrial Park Storm Drainage Maintenance District (the “District”); and
The storm drainage improvements to be maintained by the District are maintenance of a storm water retention basin as described in the proceedings for formation of the District and by this reference incorporated herein are to serve the property to be annexed to the District in compliance with the conditions of the subdivision development agreement between the owner and the City; and
The public interest and conveniences will be served by the proposed proceedings; and
The proceedings financ e the ongoing maintenance, repair, replacement , and operation of the storm drainage improvements in the District, 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 assessment roll to the City Clerk and City Council for approval, in accordance with Article 5 of the 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 to fund the annual repair, replacement, and operation of storm drainage improvements through annual assessments on benefiting parcels within the District; and
514
The City Council finds that the land specially benefited by the storm drainage improvements is shown on the map titled, “Amendment No. 12 to Assessment Diagram of Western Pacific Industrial Park Storm Drainage Maintenance District, City of Stockton, County of San Joaquin, State of California,” on file with the City Clerk and presented at this meeting. This area shall be designated as the “Amendment No. 12 AASC Annexation, Stockton Consolidated Storm Drainage Maintenance Assessment District No. 2005 -1”; and
The City Council desires to designate an Engineer of Work; and
Under 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 to a municipal improvement district to levy annual assessment s covering the costs of maintaining and operating storm drainage improvements serving the property within the District . These may include rent, repairs, 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, known as the Special Assessment Investigation, Limitation and Majority Protest Act of 1931, does not apply to these proceedings.
4. Law Applicable. The annexation proceedings for the annexation of territory to the municipal improvement district 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 of territory to the maintenance District, 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 Western Pacific Industrial Park Storm 515
Drainage Maintenance District , 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 Siegfried Engineering, 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) A reasonable estimate of the cost sufficient to pay 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 annex ed to the assessment District.
(2) The lines and dimensions of each parcel of land within the District.
Each subdivision on the diagram shall be assigned a separate number. If the diagram refer ences the county assessor’s maps for parcel boundaries and dimensions, those maps shall control all such details.
(c) A proposed maximum annual assessment of operation and maintenance costs for the District , apportioned to each numbered subdivision based on its adjusted drainage acreage and estimated benefits.
(d) A proposed maximum assessment for each subdivision in the District.
See t he 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, th e City Council orders a Public Hearing on December 8, 2026, at the City Council Chambers, 501 W. Weber Ave., Stockton, California, 95202, to decide on the annual storm drainage costs, the Engineer’s Report, annexation of territory, and related assessments. The City Clerk will mail notice of public hearing, including the Engineer’s Report, assessment ballot, and protest information, to all affected property owners at least 45 days before the hearing. Notice is given when mailed with the City’s name and Clerk’s return address.
516
9. Contact Person. Dagmara Saini of the 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.
10. Effectiveness. This resolution shall take effect immediately upon its adoption.
11. 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.
PASSED, APPROVED, and ADOPTED September 29, 2026 .
CHRISTINA FUGAZI
Mayor of the City of Stockton
ATTEST:
BONNIE PAIGE, CMC
Interim City Clerk of the City of Stockton
517
City of Stockton
Legislation Text
File #: 26-0940, Version: 1
ADOPT A RESOLUTION OF INTENTION TO ANNEX TERRITORY TO A MUNICIPAL
IMPROVEMENT DISTRICT AND LEVY ANNUAL STORM DRAINAGE MAINTENANCE ASSESSMENTS (DISTRICT 6)
RECOMMENDATION
It is recommended that the City Council approve a Resolution of Intention to:
1. Provide intent to annex PG&E assessor’s parcel number 177-280-31 into the Western Pacific Industrial Park Assessment District, for the maintenance and operation of storm drainage improvements.
2. Specify that the public interest would be served by annexing to the Western Pacific Industrial Park Assessment District and levying annual assessments for the costs to maintain and operate the storm drainage improvements.
3. Preliminarily approve the Proposed 2027-2028 Fiscal Year Budget, the schedule of parcels and assessment amounts for the 2027-2028 fiscal year, and Amendment No. 13 to the Amended Assessment Diagram for Western Pacific Industrial Park Storm Drainage Basin Maintenance District (Attachment A).
4. Set the Public Hearing date on December 8, 2026, and direct the City Clerk to mail public notice to the affected property owners by October 23, 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), Pacific Gas & Electric (PG&E), the owner of property under assessor’s parcel number 177-280-31, must install, operate, and maintain a stormwater quality treatment device.
All property owners subject to assessment of the annual costs of the storm drain improvements submitted written consents for annexation to the City Clerk. Siegfried Engineering, 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.
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PG&E has agreed to annex the parcel into the Western Pacific Industrial Maintenance District as a condition of its building permit. This annexation does not increase the District’s overall maintenance, replacement, or reserve obligations, and the parcel will be assessed consistently with existing District requirements. The annexation also complies with Proposition 218, as the parcels within the District receive 100% special benefit from the storm drainage improvements and 0% general benefit.
Staff recommends that the City Council approve the proposed Resolution to schedule the Public Hearing on December 8, 2026.
DISCUSSION
Background
In 1985, the City Council approved the formation of Western Pacific Industrial Park Basin Assessment District by Resolution 85-0470. The District is responsible for maintaining the stormwater detention basin, including the discharge pumps and associated equipment that release stormwater into Duck Creek, as defined in the original report and the subsequent amendments to date.
On November 01, 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 and state agencies. It is designed to control water pollution by regulating point sources that discharge stormwater runoff into waters of the United States.
PG&E property under assessor’s parcel number 177-280-31 (Attachment B) consists of a PG&E energy distribution facility. The parcel must be annexed into the District to participate in the ongoing maintenance of the stormwater drainage improvements.
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, assessor’s parcel number 177-280-31 will be annexed into the Western Pacific Industrial Park Assessment District (Attachment C) to fund costs associated with operating, maintaining, and replacing the pump station.
Funding for the Western Pacific Industrial Park Assessment District will be provided through an annual assessment based on the stormwater runoff from individual parcels. The proposed 2027-2028 maximum annual assessment for assessor’s parcel number 177-280-31 is $918.44. Subsequent assessments will be presented to the City Council for consideration annually.
The maximum annual assessment may increase each year by the greater of 3% or the change in the Consumer Price Index, as needed to meet rising maintenance costs.
The funds collected from property owners within a district may only be used for work on the basin serving that district, as the resulting benefits apply exclusively to properties located there. Each City of Stockton Printed on 9/24/2026Page 2 of 3
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district’s funds are segregated and cannot be used to operate, maintain, or support stormwater activities or any other utility outside that district.
FINANCIAL SUMMARY
The City of Stockton makes no financial contribution to the Western Pacific Industrial Park Assessment District or any of the Districts. All costs are paid by the property owner/developer through the annual tax roll. The use of the funds collected within the Western Pacific Industrial Park Assessment District or within the various districts is restricted by Proposition 218 to pay only for the expenses related to the maintenance and operation of the specific storm drainage basin for which they were collected. The proposed FY 2027-2028 assessment for PG&E parcel number 177-280-31 is $918.44.
This action has no impact on the General Fund or any other unrestricted funds.
Attachment A - Western Pacific Industrial Park Amendment 13 - PG&E Annexation Storm Drainage Basin Maintenance District
Attachment B - Boundary Map
Attachment C - Storm Drainage Basin Districts Location Map City of Stockton Printed on 9/24/2026Page 3 of 3
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A
pril 21, 2026
Dagmara Saini
City of Stockton Municipal Utilities Department
2500 Navy Dr.
Stockton CA 95206
Dear Dagmara:
Subject: Western Pacific Industrial Park Amendment 13 – PG&E Annexation Storm Drainage Basin Maintenance District
On behalf of Siegfried Engineering, Inc., Engineer of Work for the subject maintenance district, I am submitting the following documents for the annexation of the PG&E assessor’s parcel number 177-280-31 into the subject Western Pacific Industrial Park Maintenance District:
1. Attachment A - Proposed 2027-2028 Fiscal Year Budget.
2. Attachment B - Schedule of parcels and assessment amounts for the 2027-2028 fiscal year.
3. Attachment C - Amendment No. 13 to the Amended Assessment Diagram for Western Pacific Industrial Park Storm Drainage Basin Maintenance District.
The parcel owner has agreed to this annexation as part of the development conditions of their building permit. The addition of the parcel to the District does not increase the maintenance burden or replacement and reserve requirements. This submittal appropriately addresses the requirements of Proposition 218 in that the parcels within the subject district receive one hundred percent (100%) of special benefits from the subject district and zero percent (0%) of general benefits.
Sincerely,
_________________________________
Paul J. Schneider, QSD, QSP, P.E.
Pre
sident | Managing Principal
SIEGFRIED
Attachments:
Attac
hment A – FY 27-28 Budget
Attachment B – FY 27-28 Roll
Attachment C – Western Pacific Assessment Diagram Amendment 13
ATTACHMENT A
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WESTERN PACIFIC INDUSTRIAL PARK
ST
ORM DRAINAGE BASIN MAINTENANCE DISTRICT
PROPOSED 2027-2028 FISCAL YEAR BUDGET
Inspection, Maintenance & Graffiti Control $14,950.00
Fence Repairs $0.00
Operational Costs $14,950.00
Cit
y of Stockton Publicity and Advertising Costs $85.00
Maintenance District Attorney Fee $1,432.00
San Joaquin County Processing Fees $105.00
District Engineering Annual Engineer’s Report $2,326.00 Professional Services $0.00
City of Stockton Administrative Costs $3,500.00
Total Administrative Costs $7,448.00
Con
tingency $2,229.54
Total 2027-2028 Budget $24,627.54
Amount allocated from reserve ($7,307.86)
Amount to be assessed by
Western Pacific Industrial Park $17,319.68
FY2027-2028 Maximum Total Assessment Amount $17,320.00
The improvements being maintained by this district are a storm water retention basin and appurtenances which are site specific to the parcels being assessed. The improvements and appurtenances do not provide any benefit to any parcel or parcels outside the boundaries of the district. In the opinion of the undersigned, the benefits received by the parcels assessed within the Western Pacific Industrial Park, Storm Drain Maintenance District, from the Western Pacific Industrial Park, Storm Basin Maintenance District, are identified as set forth by Proposition 218 as follows:
Special Benefits-100%
General Benefits - 0%
Siegfried Engineering, Inc.
Engineer of Work,
___________________________________ _______________
Paul J. Schneider, P.E. Date
2026-04-21
ATTACHMENT A
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WESTERN PACIFIC INDUSTRIAL PARK
STORM DRAINAGE BASIN MAINTENANCE DISTRICT
Maintenance Assessor's 2027-2028
District Parcel Adjusted Drainage Assessment
Assessment No. Number Area (Acres) Amount
7 177-020-39 0.00 $0.00
15 177-280-16 0.63 $23.24
28 177-280-17 0.00 $0.00
33 177-280-20 5.00 $184.50
34 177-280-24 10.00 $369.00
39 177-280-08 2.90 $107.00
40 177-280-09 3.10 $114.38
41 177-280-10 5.00 $184.50
48 177-280-32 24.24 $894.46
59 177-270-04 3.17 $116.96
60 177-270-05 5.85 $215.86
81 177-270-24 2.69 $99.26
82 177-270-23 4.60 $169.74
90 177-020-56 18.51 $683.02
91 177-020-57* 0.80 $29.52
92 177-020-58* 0.71 $26.18
93 177-020-59 10.35 $381.92
96 177-270-20 20.16 $743.90
99 177-280-42* 0.47 $17.34
100 177-280-43 5.65 $208.48
101 177-280-44 11.04 $407.38
102 177-280-45* 0.91 $33.56
103 177-280-48 10.30 $380.06
104 177-280-51 0.14 $5.16
106 177-280-21 23.72 $875.28
109 177-020-68 0.79 $29.14
111 177-280-59 3.95 $145.74
112 177-280-60 3.45 $127.30
113 177-020-73 9.12 $336.52
114 177-270-29 27.36 $1,009.58
115 177-280-58 9.11 $336.16
116 177-270-30 5.93 $218.82
117 177-270-31 14.51 $535.42
118 177-020-76 20.88 $770.48
119 177-020-77 45.67 $1,685.24
122 177-280-61 53.69 $1,981.18
123 177-280-62 8.56 $315.86
124 177-280-63 7.38 $272.32
125 177-280-64 39.22 $1,447.22
126 177-020-78 24.92 $919.56
127 177-280-31 24.89 $918.44
469.37 $17,319.68
* - Indicates parcel to be hand billed
DO NOT SEND PARCELS REQUIRING SEPARATE BILLING TO COUNTY AUDITOR Schedule of Parcels, Adjusted Drainage Areas and
Assessment Amounts for 2027-2028 Budget
April 21, 2026
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ATTACHMENT A 523
3428 Brookside Road Stockton, California 95219
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ENGINEERING
STRUCTURAL
ENGINEERING
SURVEYING
PLANNING
ATTACHMENT A
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3428 Brookside Road Stockton, California 95219
2 0 9 - 9 4 3 - 2 0 2 1 w w w . s i e g f r i e d e n g . c o m F x : 2 0 9 - 9 4 2 - 0 2 1 4 CIVIL
ENGINEERING
STRUCTURAL
ENGINEERING
SURVEYING
PLANNING
ATTACHMENT B
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CHARTER WAY
INDUSTRIAL PARK
ARCH ROAD
INDUSTRIAL PARK
WESTERN PACIFIC
INDUSTRIAL PARK
AIRPORT
GATEWAY
STOCKTON AIRPORT
BUSINESS CENTER
NORTH NEWCASTLE
Legend
City Limits
County Pockets
MUNICIPAL UTILITIES
DEPARTMENT
STORM DRAINAGE BASIN
MAINTENANCE DISTRICTS
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ATTACHMENT C
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Resolution No.
STOCKTON CITY COUNCIL
RESOLUTION OF INTENTION TO ANNEX TERRITORY TO A MUNICIPAL
IMPROVEMENT DISTRICT TO MAINTAIN AND OPERAT E STORM DRAINAGE
IMPROVEMENTS, PROVID E ANNUAL ASSESSMENTS , APPROVE A PROPOSED
BOUNDARY MAP AND APPOINT ENGINEER OF WORK
CITY OF STOCKTON
WESTERN PACIFIC INDUSTRIAL PARK STORM DRAINAGE MAINTENANCE
DISTRICT
PG&E ANNEXATION
The City of Stockton proposes to annex assessor’s parcel number 177-280-31, owned by Pacific Gas & Electric (PG&E) , into the Western Pacific Industrial Park Assessment District , initiate special assessment pro ceedings for the annexation, and assess annual storm drainage operation and maintenance costs upon the parcels and properties benefited by the imp rovements in the Western Pacific Industrial Park Storm Drainage Maintenance District (the “District”); and
The storm drainage improvements to be maintained by the District are maintenance of a storm water retention basin as described in the proceedings f or formation of the District and by this reference incorporated herein are to serve the property to be annexed to the District in compliance with the conditions of the subdivision development agreement between the owner and the City; and
The public interest and conveniences will be served by the proposed proceedings; and
The proceedings finance the ongoing maintenance, repair, replacement , and operation of the storm drainage improvements in the District, 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 assessment roll to the City Clerk and City Council for approval, in accordance with Article 5 of the 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 to fund the annual repair, replacement, maintenance, and operation of s torm drainage improvements through annual assessments on benefitting parcels within the District; and
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The City Council finds that the land specially benefited by the storm drainage improvements is shown on the map titled, “Amendment No. 13 to Assessment Diagram of Western Pacific Industrial Park Storm Drainage Maintenance District, City of Stockton, County of San Joaquin, State of California,” on file with the City Clerk and presented at this meeting. This area shall be designated as the “Amendment No. 13 PG&E Annexation, Stockton Consolidated Storm Drainage Maintenance Assessment District No. 2005 -1”; and
The City Council desires to designate an Engineer of Work; and
Under Article XIIID, Section 4 of the California Constitution, publicly owned properties benefitting 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 to a municipal improvement district to levy annual assessment s covering the costs of maintaining and operating storm drainage improvements serving the property within the District. These may include rent, repairs, equipment replacement, utilities, supervision, and any necessary replacements, improvements, or extensions to ensure proper operation.
3. Division 4 E xception. Under Section 2086 of the California Streets and Highways Code, Division 4, known as the Special Assessment Investigation, Limitation and Majority Protest Act of 1931, does not apply to these proceedings.
4. Law Applicable. The annexation proceedings for the annexation of territory to the municipal improvement district 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 of territory to the maintenance District, 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 Western Pacific Industrial Park Storm Drainage Maintenance District , as shown on the map on file with the City Clerk, which defines the zone’s boundaries and governs all related details. 528
7. Engineer’s Report . The annual operation and maintenance costs are referred to Siegfried Engineering, 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) A reasonable estimate of the cost sufficient to pay 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 annex ed to the assessment District.
(2) The lines and dimensions of each parcel of land within the District.
Each subdivision on the diagram shall be assigned a separate number. If the diagram refer ences the county assessor’s maps for parcel boundaries and dimensions, those maps shall control all such details.
(c) A proposed maximum annual assessment of operation and maintenance costs for the District, apportioned to each numbered subdivision based on its adjusted drainage acreage and estimated benefits.
(d) A proposed maximum assessment for each subdivision in the District.
See t he 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, th e City Council orders a Public Hearing on December 8, 2026, at the City Council Chambers, 501 W. Weber Ave., Stockton, California, 95202, to decide on the annual storm drainage costs, the Engineer’s Report, annexation of territory, and related assessments. The City Clerk will mail notice of public hearing, including the Engineer’s Report, assessment ballot, and protest information, to all affected property owners at least 45 days before the hearing. Notice is 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.
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10. Effectiveness. This resolution shall take effect immediately upon its adoption.
11. 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.
PASSED, APPROVED, and ADOPTED September 29, 2026 .
CHRISTINA FUGAZI
Mayor of the City of Stockton
ATTEST:
BONNIE PAIGE, CMC
Interim City Clerk of the City of Stockton
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City of Stockton
Legislation Text
File #: 26-0952, Version: 1
APPROVE MOTION TO EXECUTE AN AGREEMENT UP TO FIVE YEARS WITH AT&T VESTA
FOR THE CITY OF STOCKTON PUBLIC SAFETY DISPATCH CENTERS IN A TOTAL NOT-TO- EXCEED THE AMOUNT OF $215,205 ANNUALLY
RECOMMENDATION
It is recommended that the City Council approve a motion to:
1. Approve findings pursuant to Stockton Municipal Code section 3.68.070 in support of an exception to the competitive bidding process.
2. Delegate authority to the City Manager to negotiate and execute an agreement up to five years between the City of Stockton (City) and AT&T in an amount not to exceed $215,205 annually.
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 motion.
Summary
The City of Stockton uses AT&T's Vesta platform to provide maintenance, supplies, and equipment for the City’s Public Safety 911 phone system. This service contract supports the continued operation of the existing system while ensuring access to essential technical support as needs arise. A new agreement is required to maintain the equipment and services necessary to answer emergency calls effectively and efficiently. If approved, execution of a one-year contract between the City and AT&T in an amount not to exceed $215,205 annually will support uninterrupted, round-the-clock operation of the 911 phone system.
DISCUSSION
Background
The City of Stockton Public Safety Department’s 911 system was upgraded to the AT&T Vesta platform in 2004. The Vesta platform requires routine maintenance and ongoing support services to ensure the reliable and continuous operation of the City’s 911 phone system. The existing maintenance contract expires in October 2026, and without execution of a new agreement, maintenance services may be interrupted, which could impair the City’s ability to operate and support the 911 system. Funding for the City of Stockton 911 system may be provided by the State of California through the California Governor’s Office of Emergency Services (Cal OES). Cal OES may fully reimburse the annual cost associated with AT&T Vesta 911 system maintenance. However, Cal OES reimbursement is limited to single-year agreements.
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Present Situation
On August 3, 2026, the City of Stockton prepared a sole source justification to extend the contract with AT&T for the dates of 11/4/2026 to 11/3/2027. Total not-to-exceed the amount of $215,205 annually. AT&T holds the contract with the State of California who funds the 911 phone system. If the City of Stockton were to become out of compliance with the state 911 Operations Regulations, the City could lose the ability to operate as a 911 call center. (See Attachment A) The City of Stockton received the following quote:
Company Location Cost
AT&T Riverside, CA $127,060 (Police)
AT&T Riverside, CA $88,145 (Fire)
Staff recommend that the City Council adopt a motion to delegate authority to the City Manager to negotiate and enter into an agreement with AT&T Vesta for $215,205 annually for the maintenance and upkeep of the 911 phone system. Once such authority is delegated, the City Manager and staff will work directly with AT&T Vesta on the terms of the agreement and execute a contract separately.
Findings
Stockton Municipal Code Section 3.68.070(A)(3) states that the City Council may approve findings that support and justify an exception to the competitive bidding process.
1. The current 911 system needs a new contract for continued maintenance and supplies.
2. The expiration of the contract without renewal could result in interrupted maintenance and services causing the City of Stockton to lose the ability to operate the 911 Call Center.
3. AT&T holds the contract with the State of California who funds the 911 system. If the City of Stockton were to become out of compliance, it could potentially lose its ability to operate as a 911 call center.
FINANCIAL SUMMARY
The proposed cost of this contract shall not exceed $215,205 annually. Funding for these additional services is included in the FY 2026-27 Police and Fire Department’s Software/License budget.
Attachment A - Sole Source Letter, including Quotes
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City of Stockton
Legislation Text
File #: 26-0843, Version: 1
ADOPT RESOLUTION TO AUTHORIZE THE MORMON SLOUGH SANITARY SEWER REHABILITATION PROJECT (DISTRICT 6)
RECOMMENDATION
It is recommended that the City Council adopt a resolution to:
1. Approve the plans and specifications for the Mormon Slough Sanitary Sewer Rehabilitation, Project No. UW18030.
2. Award a Construction Contract in the amount of $2,978,000 to K. J. Woods Construction, Inc. of South San Francisco, CA, for the Mormon Slough Sanitary Sewer Rehabilitation, Project No. UW18030.
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) has implemented a Condition Assessment Program for the City’s sewer infrastructure comprised of Closed-Circuit Televised Video (CCTV) inspection, pipe cleaning, and engineering evaluation. This program generates a prioritized list of sewer replacement and/or rehabilitation projects for inclusion in the City’s Capital Improvement Program (CIP). The program identified a 24-inch diameter sewer line along Mormon Slough between Sierra Nevada Street and Bieghle Avenue for rehabilitation and/or replacement (Attachment A). The project will replace approximately 2,428 linear feet of 24-inch diameter sewer line with a 30-inch sewer line. The project was included in the 2018-2023 Five-Year CIP.
On July 16, 2026, the City received six bids for this project. It is recommended that Council award a Construction Contract to the lowest responsible bidder, K. J. Woods Construction, Inc., in the amount of $2,978,000. It is also recommended that Council approve the plans and specifications for the project.
Construction is anticipated to be completed by July 2027.
DISCUSSION
Background
The MUD has implemented a Condition Assessment Program for the City’s sewer infrastructure comprised of CCTV inspection, pipe cleaning, and engineering evaluation. This program generates a City of Stockton Printed on 9/24/2026Page 1 of 3
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File #: 26-0843, Version: 1
prioritized list of sewer replacement and/or rehabilitation projects for inclusion in the City’s CIP. The program identified a 24-inch diameter sewer line along Mormon Slough between Sierra Nevada Street and Bieghle Avenue for rehabilitation and/or replacement (Attachment A). The project will replace approximately 2,428 linear feet of 24-inch diameter sewer line with a 30-inch sewer line. The project was included in the 2018-2023 Five-Year CIP.
On April 2, 2019, by Motion No. 2019-04-02-1111, Council authorized award of a Professional Services Contract, in the amount of $123,999.97, to Kjeldsen, Sinnock & Neudeck, Inc. of Stockton, CA, for professional design services of the Mormon Slough Sanitary Sewer Line Rehabilitation, Project No. UW18030.
Three Professional Services Contract Amendments were subsequently approved by Council or administratively to enhance the project and/or comply with recent updates to the City’s Wastewater Master Plan.
On January 26, 2021, by Motion No. 2021-01-26-1211, Council approved Professional Services Contract Amendment No. 1, in the amount of $81,386.71, for additional design services. These services were necessary to upsize a segment of the Mormon Slough pipeline from 24 to 30 inches in accordance with the City’s Wastewater Master Plan.
On April 28, 2022, the City Manager administratively approved Professional Services Contract Amendment No. 2, in the amount of $73,386, for additional design and geotechnical services. These services were necessary to include a new segment of pipe downstream of the project to advance repairs along this segment and to gain better pricing through economies of scale.
On December 9, 2025, by Motion No. 2025-12-09-1215, Council approved Professional Services Contract Amendment No. 3, in the amount of $92,000, for additional design services and to extend the contract expiration date to June 30, 2027. These services were necessary to realign a portion of the Mormon Slough pipeline as required by the California Central Valley Flood Protection Board, a permitting agency.
On October 17, 2023, by Resolution No. 2023-10-17-1213, Council adopted the Final Initial Study/Mitigated Negative Declaration and Mitigation Monitoring Reporting Program and authorizing the filing of a Notice of Determination under the California Environmental Quality Act for the Mormon Slough Sanitary Sewer Line Rehabilitation project. The project is in conformance with the City’s General Plan, pursuant to California Government Code, section 65402.
On July 26, 2016, Council adopted a Community Workforce and Training Agreement (CWTA). The CWTA became effective August 25, 2016, and applies to all Public Works projects over $1 million that are bid after that date. On July 16, 2019, by Motion No. 2019-07-16-1403, Council extended the CWTA term to August 25, 2024. On August 20, 2024, by Motion No. 2024-08-20-1203, Council extended the CWTA term to August 25, 2029. The CWTA was applied to this project as the estimated construction cost exceeds $1 million.
Present Situation
On June 2, 2026, the Mormon Slough Sanitary Sewer Rehabilitation, Project No. UW18030, was advertised for bids. On July 16, 2026, six bids were received with City of Stockton Printed on 9/24/2026Page 2 of 3
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the following results:
COMPANY NAME BID AMOUNT ADJUSTED BID AMOUNT
(local preference applied)
K. J. Woods Construction, Inc. $2,978,000.00 $2,978,000.00 (South San Francisco, CA)
Soracco, Inc. $3,575,870.00 $3,504,352.60
(Lodi, CA)
Mountain Cascade, Inc. $3,586,472.00 $3,586,472.00
(Livermore, CA)
Lafleur Engineering, Inc. $3,595,862.00 $3,595,862.00
(Roseville, CA)
Ranger Pipelines, Inc. $3,640,280.00 $3,640,280.00
(San Francisco, CA)
ARB, Inc. $3,762,640.00 $3,762,640.00
(Pittsburg, CA)
Engineer’s Estimate $3,735,779.00
The requirements of Stockton Municipal Code (SMC) section 3.68.090, Local Business Preference, apply to this project. Soracco, Inc. is located within County limits and is entitled to a two percent bid preference. Application of the Local Business Preference has no effect on the bid order. The Local Employment Ordinance, SMC section 3.68.095 also applies to this contract.
The bid from K. J. Woods Construction, Inc., the lowest responsible bidder, is regular in all respects and has the proper license to perform the work. It is recommended that Council approve the plans and specifications and award a Construction Contract to K. J. Woods Construction, Inc., of South San Francisco, CA, in the amount of $2,978,000, for the Mormon Slough Sanitary Sewer Rehabilitation, Project No. UW18030.
Construction is anticipated to be completed by July 2027.
FINANCIAL SUMMARY
There is sufficient funding available in the Mormon Slough Sanitary Sewer Rehabilitation, Project No.
UW18030, to award a Construction Contract to K. J. Woods Construction, Inc. in the amount of $2,978,000.
Attachment A - Vicinity Map
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Wilson WayCharter Way/Dr MLK Blvd
Anderson StreetBieghle AvenueMormon SloughSierra Nevada Street CITY OF STOCKTONDEPARTMENT OF PUBLIC WORKSATTACHMENT AMORMON SLOUGH SANITARY SEWER REHABILITATION PROJECT NO. UW18030
PROJECT LOCATION
VICINITY MAP NOT TO SCALEPROJECT LIMITS
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Resolution No.
STOCKTON CITY COUNCIL
RESOLUTION APPROVING THE PLANS AND SPECIFICATIONS AND AWARDING A
CONSTRUCTION CONTRACT FOR THE MORMON SLOUGH SANITARY SEWER REHABILITATION, PROJECT NO. UW18030
On July 16, 2026, the City Clerk of the City of Stockton opened, examined, and publicly declared the sealed proposals or bids offered for the Mormon Slough Sanitary Sewer Rehabilitation, Project No. UW18030; and
The Municipal Utilities Department has implemented a Condition Assessment Program for the City’s sewer infrastructure comprised of comprised of Closed -Circuit Televised Video (CCTV) inspection, pipe cleaning, and engineering evaluation . This program generates a prioritized list of sewer replacement and/or rehabilitation projects for inclusion in the City’s Capital Improvement Plan; and
The project will replace approximately 2,428 linear feet of 24-inch diameter sewer line with a 30-inch sewer line along Mormon Slough between Sierra Nevada Street and Beighle Avenue; and
K. J. Woods Construction, Inc. is the lowest responsible bidder in the amount of $2,978,000 and its bid is regular in all respects; now, therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF STOCKTON, AS FOLLOWS:
1. The City Council approves the plans and sp ecifications for the Mormon Slough Sanitary Sewer Rehabilitation, Project No. UW18030.
2. The City Council awards a Construction Contract between the City of Stockton and K. J. Woods Construction, Inc., in the amount of $ 2,978,000, and the City Manager is authorized and directed to execute same, a copy of which is attached as Exhibit 1 and incorporated by this reference.
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3. The City Manager is hereby authorized to take whatever actions are necessary and appropriate to carry out the purpose and intent of this Resolution.
PASSED, APPROVED, and ADOPTED September 29, 2026 .
CHRISTINA FUGAZI
Mayor of the City of Stockton
ATTEST:
BONNIE PAIGE, CMC
Interim City Clerk of the City of Stockton
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Local Construction Contract – K.J. WOODS CONSTRUCTION, INC. - PROJECT NO UW18030. (Updated 10/18/23)
CONSTRUCTION CONTRACT
T
his contract is made and entered into on _____________, by and between K .J.
WOODS CONSTRUCTION, INC. , a STATE OF CA CORPORATION, with a business address at P.O. BOX 947 , SOUTH SAN FRANCISCO, CA 94083 , hereinafter called "CONTRACTOR," and CITY OF STOCKTON, a municipal corporation, hereinafter called "CITY."
W
I T N E S S E T H:
W
HEREAS, plans and specifications for the construction of MORMON SLOUGH SANITARY SEWER REHABILITATION (PROJECT NO. UW 18030), hereinafter called “PROJECT,” were regularly adopted by Council Resolution No. __________________, on _________________; and
WHEREAS, the contract for said work was regularly awarded to CONTRACTOR, by Council Resolution No. __________________, on ________________.
NOW, THEREFORE, in consideration of the promises and of the mutual covenants herein contained, the parties hereto expressly agree as follows:
CONTRACTOR agrees:
1. SC
OPE OF SERVICES. To do the work and furnish all the labor, materials, tools, equipment, and insurance required for the construction of PROJECT in accordance with the plans and specifications adopted on _____________, by Council Resolution No. __________________ . The "contract documents," which include the bid documents, project plans, specifications, all letters of clarification, and the City of Stockton Standard Specifications and Plans, are incorporated into and made a part of this contract by this reference to the same extent as if fully set forth.
2. C
OMPENSATION. To do and perform the work contemplated hereby in a good and workmanlike manner and to furnish all labor, materials, tools , and equipment necessary therefore at the prices specified in Exhibit A, attached hereto and by reference made a part hereof, under the direction of and to the complete satisfaction of the Director of Public Works of the City of Stockton. Total compensation for services and reimbursement for costs shall not exceed $2,978,000.00, or as otherwise mutually agreed to in a Contract Change Order.
3. I
NSURANCE. CONTRACTOR shall not commence any work before obtaining, and shall maintain in force at all times during the duration and performance of this contract, the policies of insurance specified in Exhibit B, which is attached to this contract and incorporated by this reference, and as provided in the “contract documents” including Section 7- 1.06 of the City of Stockton Standard Specifications and Plans as adopted on September 27, 2016, by Council Resolution No. 2016-09-27-1213, effective September 27, 201
EXHIBIT 1