Stockton City Council June 24, 2025: FY 2025-26 Budget, DEI and South Stockton Substations
Stockton City Council and Concurrent Authorities Meeting — June 24, 2025
The Stockton City Council met on June 24, 2025, convening in closed session at 4:01 PM and in regular session at 5:30 PM, with adjournment at 11:58 PM. The Council approved the FY 2025-26 annual budget, settled a lawsuit for $150,000, considered informational reports on city diversity/equity/inclusion (DEI) efforts and South Stockton police substations, and approved a street right-of-way vacation for Waste Management.
Closed Session Report
- City Attorney Lori Asuncion reported the Council voted 6-0 (Councilmember Padilla absent) to settle Francisco Terrones III v. City of Stockton, et al. (San Joaquin County Superior Court Case No. STK-CV-UAT-2021-0011378) in the amount of $150,000.
Consent Calendar
- The Consent Agenda was approved 7-0 in a single vote, with items 12.1, 12.12, 12.16, 12.17, and 12.18 considered separately (each passed 7-0).
- 12.1 (Resolution 2025-06-24-1201): Ratified appointment of Stefani Alfaro to the Measure W Oversight Committee through January 31, 2027. Councilmember Enriquez and the City Clerk noted 35 commission vacancies citywide.
- 12.2 (Resolution 2025-06-24-1202): Allocated up to $1,653,877 in HOME Investment Partnerships Program funds (including $153,877 of 2017 funds expiring September 2025 and $1,500,000 in additional HOME funds) plus up to $350,000 from the Low-Moderate-Income Housing Fund to Delta Community Development Corporation for acquisition of five single-family affordable homes.
- 12.3 (Resolution 2025-06-24-1203): Authorized acquisition of 1661 West Fremont Street for the Stockton Animal Shelter for up to $3,200,000, plus appropriation of $400,000 from the Police Department's Pet Overpopulation Donation Accounts. The Mayor clarified $2.8 million had been designated by a prior council from unspent funds, with $400,000 from the police pet fund.
- 12.4 (Resolution 2025-06-24-1204): Expanded city participation in the PRISM joint powers insurance pool, including Primary Cyber Liability, Property, and Crime programs.
- 12.5 (Resolution 2025-06-24-1205): Adopted the updated CalPERS salary schedule effective July 1, 2025.
- 12.6 (Motion 2025-06-24-1206): Approved an AT&T Switched Ethernet/Network on Demand contract totaling $533,850.40 over 60 months.
- 12.7 (Motion 2025-06-24-1207): Authorized continued CALNET participation with AT&T and Comcast for an increased total of $2,423,842.
- 12.8 (Resolution 2025-06-24-1208): Authorized Change Order No. 1 with Silva Landscape for storm drainage basin maintenance, adding $314,050 for a new total of $765,850.
- 12.9 (Resolution 2025-06-24-1209): Authorized the Mormon Slough Improvements Project, transferring $50,000, approving NOE24-25, and awarding a $427,569 construction contract to FBD Vanguard Construction, Inc.
- 12.10 (Motion 2025-06-24-1210): Authorized Contract Change Order No. 5 for custodial services with Imperial Maintenance Services, Inc. in the amount of $1,115,201.26.
- 12.11 (Motion 2025-06-24-1211): Awarded a $293,920 on-call arborist services contract to California Tree and Landscape Consulting, Inc.
- 12.12 (Motion 2025-06-24-1212): Authorized Contract Change Order No. 6 for the McKinley Park Renovation Project in the amount of $284,064.10 with Otto Construction. Discussion covered handball court surfacing, future murals, and activation of the park's community center through YMCA/Boys & Girls Club partnerships.
- 12.13 (Motion 2025-06-24-1213): Authorized Change Order No. 2 with All Seasons Pool Service for $179,589.
- 12.14 (Motion 2025-06-24-1214): Authorized Change Order No. 2 with American Chiller Service, Inc. for $561,230.
- 12.15 (Motion 2025-06-24-1215): Awarded a $282,922 design contract to R.E.Y. Engineers, Inc. for federal-aid street resurfacing.
- 12.16 (Resolution 2025-06-24-1216): Approved NOE16-25 and awarded a $127,369 contract to Valentine Corporation for repairs to the El Dorado Street Bridge over Bianchi (damaged by vehicle impact in 2021, assessed in 2022, construction expected summer 2025).
- 12.17 (Resolution 2025-06-24-1217): Appropriated $80,000 from Gas Tax funds and awarded a $301,867.50 re-striping contract to Chrisp Company.
- 12.18 (Resolution 2025-06-24-1218): Approved NOE25-25 and awarded a $408,232.79 pavement repair contract to Robert Burns Construction, Inc.
- 12.19 (Resolution 2025-06-24-1219): Authorized procurement of general liability coverage up to $14,000,000 for FY 2025-26 through PRISM.
- 12.20 (Motion 2025-06-24-1220): Authorized five-year revenue audit contracts with Hinderliter, de Llamas & Associates (HdL) and MuniServices, LLC across sales/use, business license, transient occupancy, property, utility user, and franchise tax categories.
Public Comments & Testimony
- Non-agenda public comments: Armando Valerio spoke on public safety and the FY 2025/26 budget; Stefanie Alfaro urged enforcement of animal cruelty penal codes; Zoyla Moreno (speaking in Spanish) said Latinos are a 45% majority and demanded the city fulfill promises on a Weston Ranch police substation; Jessica Velez, Eric Hoyt, Pat Barrett, Patrisha Cochran, and Mike Lopez described displacement, arrests, and property destruction involving unhoused residents, with Lopez asking the Council to reconsider the scheduled July 7, 2025 Trinity Park displacement until safe camping and equitable housing options exist. Eric Hoyt stated he was tased by Stockton police on June 19, 2025, received seven staples, and is exploring legal options.
- Item 12.3 public comment: Yolanda Amen questioned the priority of the animal shelter expansion, saying she would prefer public safety and unhoused needs be funded first. The Mayor responded that most funding was already allocated by a prior council.
Discussion Items
- Item 15.1 — Diversity, Equity, and Inclusion (informational, no action): Priya Nixon, who oversees inclusion initiatives, presented work tied to Resolution 2022-07-12-1504, organized into tier-one actions (recruitment/hiring evaluation, university internship MOUs with Delta College/UOP/Stan State, performance evaluation modernization, training, EEO report refresh) and tier-two items (classification/compensation study, an equity framework, and a charter/policy review committee). Vice Mayor Lee stated Nixon had resigned, that her position was declassified to an HR analyst, and that $40,000 from the DEI budget was spent on food; he called for a DEI "report card," a 30-day DEI plan, and exploration of making DEI its own department. Councilmember Padilla acknowledged the fire department has only three Black firefighters but praised firefighter recruitment efforts conducted with little or no budget. The Mayor cited a Zen City survey showing 72% of Stockton residents rated acceptance of all backgrounds good/excellent/very good and 28% fair/poor. A procedural point-of-order dispute arose during the item; the City Attorney clarified meeting-order rules, and the Mayor was determined not to have violated decorum. Public speakers included Yolanda Amen (questioning removal of DEI committee members and lack of transparency), Bobby Bivens (asserting no major equity change in 30 years and proposing a "community parity" office), Julie Dunning (arguing DEI must sit at the executive level, not in HR, and questioning why the DEI officer is leaving after one year), Pat Barrett (citing data that white women have been top beneficiaries of corporate DEI), Tammy Williams (calling for more diversity and culturally competent services), and Andi Barrise (urging representation at all staff levels).
- Item 15.2 — South Stockton Police Substations (informational, no action): Captain Annabelle Morris presented a three-phase plan for two storefront substations in Sierra Vista and Weston Ranch, with four location options costing approximately $1.3 million to $1.4 million. Staffing would be drawn from the existing authorized force (currently 373 sworn of 425 authorized), with about two officers (approximately $278,000), one CSO ($120,000), and one police service technician ($47,000) per location, plus one-time costs such as vehicles. Vice Mayor Lee noted the direction was given January 7, 2025, and emphasized the community's commitment; the Mayor and Councilmember Padilla asked how costs would be funded. Options showed a marginal additional annual cost of about $82,000 for option one and about $46,560 for option two beyond already-budgeted staffing. Interim City Manager Chad Reed committed to returning at the next council meeting with a clear plan, and staff indicated a 60-day timeline for a full financial evaluation. Public comment included strong support from Weston Ranch and Sierra Vista residents, including Yolanda Amen (describing drug activity at a shopping center), Brandie Boyd (whose nephew was killed in 2016, saying "you can't put a price on saving lives"), and Dan Richardson; Peter Ragsdale of the Housing Authority said resident councils are excited and offered fiscal support; Bobby Bivens supported substations as relationship-builders but opposed militarized equipment.
Hearings
- Item 16.1 — Street Vacation (Resolution 2025-06-24-1601, passed 7-0): Public hearing on vacating portions of South Pershing Avenue and Temple Street rights-of-way at Waste Management's request for facility reconfiguration. Public utility easements were reserved, and CEQA Notices of Exemption 13-25 and 15-25 were approved.
- Item 16.2 — FY 2025-26 Annual Budget (Resolutions 2025-06-24-1602, PA 2025-06-24-1602, and SRD 2025-06-24-1602, passed 7-0): Budget Officer Brandon Sepulveda presented a $982 million citywide expenditure budget (2.8% increase) with $936 million in revenues; the general fund totals $328.2 million, with police at $184 million (55%) and fire at $70 million (21%). Sales tax is the largest revenue source at $123.9 million (including $45.9 million Measure A), followed by property tax at $82 million and utility user tax at $45 million. The budget closed an initial $15 million general fund deficit. Reserves are projected at $140 million versus a $238 million target. Council direction added $54,661 for the City Clerk, $73,416 for the City Attorney, $34,970 for firefighter recruitment/diversity, and two full-time plus five part-time Office of Violence Prevention (OVP) positions ($221,000 and $162,000). Adopted modifications redirected $150,000 from the City Manager's discretionary fund to fund the Clerk and City Attorney asks totaling approximately $128,000, redistributing the remainder; OVP positions were approved as presented but hiring will be held until the outcome of the CalVIP grant application and revenue reports are known.
Key Outcomes
- Closed session litigation settlement of $150,000 approved 6-0.
- All Consent Calendar items approved 7-0.
- Resolution 2025-06-24-1601 (Pershing Avenue/Temple Street vacation) approved 7-0.
- FY 2025-26 Annual Budget, 2025-2030 Capital Improvement Plan, FY 2025-26 Fee Schedule, Gann Appropriations Limit, Parking Authority budget, and Successor Agency budget adopted 7-0 with the modifications described above.
- Directive: City Manager staff, Police Department, and Housing Authority to return at the next council meeting with a definitive plan and fiscal assessment for South Stockton substation options.
- Directive: Staff to present a DEI plan to Council within 30 days and keep Council informed of the DEI manager hiring process; request to explore making DEI a standalone department referred to the Legislative Committee.
- Council agreed to hold an open discussion at the July meeting on ad hoc committee formation and dissolution, and on the city manager search timeline, after Councilmember Enriquez expressed concern that an ad hoc committee was dissolved in private.
Meeting Transcript
Good afternoon and welcome to the Stockton City Council closed session part of our meeting today on the 24th of June. Let's go ahead and do roll call. Councilmember Blower. Present. Councilmember Enriquez. Present. Councilmember Ponce. Present. Councilmember Pedia is absent. Councilmember Via Pedua. Present. Vice Mayor Lee. Present. And Mayor Fugazi. Present. We have a quorum. Okay. Is there anyone from the public that wishes to speak? No comic cards. Seeing that, uh, do we have any additions to the closed session agenda? I don't think so, right? No additions. Okay, great. So this body will recess to closed session pursuant to government code section 54956.9 D1 to confer with its attorney regarding agenda item 3.10. This body will resource recess to closed session pursuant to government code section 54957b to discuss agenda item 3.30 and 3.40. And this body will recess to close session pursuant to government code section 54957. Good evening, everyone, and welcome to our city council meeting for today, June 24th, 2025. We'll go ahead and start with roll call. Councilmember Blower. Present. Councilmember Enriquez. Present. Councilmember Ponce. Present. Councilmember Pedia. Present. Councilmember Via Pedua. Present. Vice Mayor Lee. Present. Hey, Mayor Figazi. Present. We have a quorum. Thank you. So at this time, I would like to call up somebody very special. Yes. Press the button. Hello. Good evening, Mayor Fugasi. Um, Consul members, and everybody are here.
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