I've heard that catfish need to be handled a certain way to not get cut or
poked or something like that. Is this true?

Very true, especially on small ones. I find using a good pair of channel
lock pliers works real good if you grab them in the lower lip area. I fish
mostly sal****er and don't like catching them so I carry a flipper to flip
them off my hook and back into the water without touching them,. However if
I plan on going freshwater fishing and might catch a channel or blue cat
worth keeping, I will bring along the pliers to grab them with.


Is there any reason not to just grab onto a catfish when you catch one?

The spines on the dorsal fine and pectoral fins will poke you. You can
safely grab one if you can manage to pick one up without getting stuck.

In a small stocked urban lake setting what are the basics of fishing for
catfish?

Any bottom rig will work. They can also be caught under a cork. They are
known for being bottom dwellers but they will eat something that is near the
surface.
Baits can be anything from shiners, worms, stink baits, (commercially
produced) market shrimp, insects or just about anything. Catfish will eat
just about anything. The worst it smells the better it is.
There are 30 different varieties of catfish in the US. Not sure what
variety your lake is stocked with.but most probably will be channel cat or
blue cat since these are what most fish farms raise.


Sarge