Stockton City Council/Successor Agency/Public Financing Authority/Parking Authority Concurrent Meeting - January 23, 2024

The Stockton City Council met concurrently with the Successor Agency to the Redevelopment Agency, the Public Financing Authority, and the Parking Authority on Tuesday, January 23, 2024. The meeting began with a 4:00 PM closed session, resumed in regular session at 5:30 PM, and adjourned at 7:23 PM. City Attorney Lori Asuncion reported no reportable action from closed session.

Consent Calendar

• The Council approved the remaining consent calendar 7-0, after pulling items 12.1, 12.4, 12.8, and 12.12 for separate consideration. Routine approvals included minutes of September 12, October 17, and October 24, 2023; additional funding for the Co-Occupational Medical Partners pre-employment health services contract; a citywide temporary employment services pool with six providers; a waiver of customer credits under the State Water Resources Control Board Water and Wastewater Arrearage Payment Program; a $20,000,000 Caltrans Funds Transfer Agreement for Miracle Mile pedestrian crossing, public safety, and revitalization improvements; purchase of miscellaneous equipment; the Transportation Development Act claim for FY 2023-24; and the Streetlight Knockdown Repairs Phase 7 contract with Ray's Electric for $122,723.
• Item 12.1, ratifying Councilmember Villapudua's appointment of Anthony Wolford to the Charter Review Advisory Commission for a term ending December 31, 2026, was approved 7-0.
• Item 12.4, a three-year service agreement with Klear.ai LLC for a Risk Management Information System, with a competitive bidding exception, was approved 7-0. Human Resources Director Rosemary Rivas explained the system would replace numerous Excel spreadsheets used by the HR risk division.
• Item 12.8, awarding the Parks Maintenance and Janitorial Service Contract to Al Fresco Landscaping, Inc., was approved 7-0. The three-year contract is not to exceed $4,871,952.53 annually, or $14,615,857.59 total, with two optional one-year extensions and related budget amendments. Discussion confirmed Al Fresco has a Stockton office and was selected through an RFP evaluation considering factors beyond price.
• Item 12.12, the tobacco retailer ordinance amendment, was adopted 5-2 and is discussed below.

Public Comments & Testimony

• Mike De Anda, a union business representative for Operating Engineers, expressed concern about ongoing OE3 negotiations for municipal utilities and public works departments. He asked Council members to understand the union's proposals on cost-of-living adjustments, a market adjustment, and retroactive pay, arguing that enterprise and Measure A funds are available and that 'one size doesn't fit all' across bargaining units.
• Mario Gardea, President of Stockton Firefighters Local 456, expressed appreciation for the City's investments in restoring fire services, including Fire Station 1, a fourth firefighter on Engine 12, and reopening Truck 7. He noted post-bankruptcy losses of 21 firefighters per day and seven fire stations.
• Esperanza Vielma thanked Councilmember Padilla and city staff for resolving an abandoned-property issue on San Lucas Avenue and suggested adding an AI component or upgrade to the Ask Stockton app.
• Pat Barrett raised concerns about an encampment near Eden Park after a shooting and supported higher pay for water/sewer workers who handle hazardous cleanup.
• Philip Herrera, a Miracle Mile resident, expressed strong support for agenda item 12.7, saying the $20 million investment would improve aging infrastructure, pedestrian safety, economic growth, and community engagement.
• On the tobacco retailer ordinance, Kimberly Bankston-Lee, Vice Chair of the Coalition for Tobacco Free San Joaquin, and Ryan McClinton, Program Manager at Public Health Advocates, opposed the additional exemptions, citing tobacco retailer density, youth access, and health disparities in communities of color. Business owners Gurneel Boparai and Jeff Tesh Gill said transfer restrictions reduced the value and saleability of their businesses and urged a balanced or gradual approach. Pat Barrett, a resident with COPD, said there should be no more tobacco retailers in Stockton.

Discussion Items

• Tobacco Retailer Ordinance (12.12): The proposed amendment created additional exemptions to the distancing restrictions in Stockton Municipal Code Chapter 5.104. Councilmember Wright, who helped draft the original ordinance, said he could not support allowing ownership transfers of tobacco retail licenses because it could perpetuate tobacco density near schools; he noted the location at issue is less than a mile from an elementary school and would be the third tobacco retailer on that corner. Councilmember Blower, chair of the Legislation Committee, supported the amendment, describing a father-son team that invested about $500,000 in a 7-Eleven project before 7-Eleven withdrew due to the ordinance; he also reported that 43 tobacco retail permit inquiries had failed to meet location requirements since the original ordinance passed. CFO Kimberly Trammell and Deputy City Attorney Ryan Meyerhoff explained that the amendment would create transfer rights that did not previously exist. Councilmember Lenz and Villapudua supported the amendment as a way to avoid unintended financial harm to existing business owners, while Councilmember Padilla opposed it because it would increase tobacco retailer density and availability.
• FY 2022-23 Fourth Quarter Budget Status Update (15.1): CFO Kimberly Trammell and Budget Officer Amelda Arroyo presented preliminary, unaudited year-end results. General fund revenues were $321.8 million, about $36.2 million (12.7%) over the $285.6 million approved budget. General fund expenditures were $328.8 million, $21.8 million below the $350.6 million approved budget, driven largely by $30.9 million in vacancy savings versus $10.4 million anticipated. The year-end net position was negative $7.0 million, with a total favorable budget variance of approximately $58.02 million. Staff recommended reserving $925,000 for repayment to HUD for Oak Park Ice Arena costs, adding $1.469 million to the Assured Guaranty settlement reserve for a total $3.6 million, allocating $13.8 million to reserves, and appropriating $21.45 million to Council priority projects. The initial staff recommendation for those projects included $5 million for Truck 7 restoration, $300,000 in one-time equipment costs, employee retention bonuses, parks maintenance increases, additional Victory Park Pool funding, and a $250,000 El Concilio contribution. The recommended reserve funding included $48.3 million for working capital, $68 million of the $74 million target for known contingency, and $10.8 million for risk-based reserves, for total reserves of $127.1 million.
• During budget discussion, Councilmember Padilla asked about traffic calming; Interim Public Works Director Chad Beecher confirmed the backlog is 84 locations at about $100,000 each, with the proposed funding enabling roughly 17 locations. Vice Mayor Warmsley asked about red light cameras; Deputy Chief Scott Gravia said the city's analysis found fixed red-light cameras less effective than deployable officers and likely to operate at a deficit under current state regulations. Fire Chief Rick Edwards said the restored Truck 7 would be staffed with the standard four firefighters, would restore the last fire apparatus closed during bankruptcy, and would bring daily staffing to 59 firefighters, compared with 75 before bankruptcy.

Key Outcomes

• The Council unanimously approved the consent items and the FY 2022-23 fourth quarter budget resolution 2024-01-23-1501 by a 7-0 vote, including a motion by Vice Mayor Warmsley to increase Fire Station 7/Truck 7 restoration funding from $5 million to $6 million and refer the remaining $4 million of Council priority project funds to the Budget/Finance/Economic Development Committee.
• Ordinance 2024-01-23-1212 amending tobacco retailer rules was adopted 5-2, with Councilmembers Blower, Villapudua, Lenz, Lincoln, and Warmsley in favor and Councilmembers Padilla and Wright opposed.
• The meeting adjourned at 7:23 PM.