TUOLUMNE RIVER REGIONAL PARK
REQUIRED SUPPLEMENTARY INFORMATION
#18..
- 886 -
25 TUOLUMNE RIVER REGIONAL PARK
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE – GENERAL FUND – BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2021
Original Final
REVENUES
Rents $ 63,550 $ 44,550 $ 24,059
Operating grants and contributions 408,800 385,526 385,526 Investment earnings (loss) - - (151)
Total Revenues 472,350 430,076 409,434
EXPENDITURES
Contractual services 458,783 417,374 402,012
Materials and supplies 1,675 1,650 2,301
Insurance and taxes 11,052 12,402 13,035
Total Expenditures 471,510 431,426 417,348
OTHER FINANCING SOURCES (USES)
Transfers in 209,654 559,649 -
Total Other Financing Sources (Uses) 209,654 559,649 -
Changes in Fund Balance $ 210,494 $ 558,299 (7,914)
Fund Balance, Beginning of Year 71,167
Fund Balance, End of Year $ 63,253
(20,642)
Budgeted Amounts
Actual Amounts
Variance With
Final Budget
-
$ (20,491)
(151)
$ (6,564)
15,362
(651)
(633)
14,078
-
-
#18..
- 887 -
TUOLUMNE RIVER REGIONAL PARK
NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION
26 NOTE 1 – BUDGETS AND BUDGETARY ACCOUNTING
Tuolumne River Regional Park (the Park) operates under the general laws of the State of California and annually adopts a budget for its General Fund to be effective July 1 the ensuing fiscal year. The budget must be approved by each of the legislative bodies of the parties to the joint powers agreement. From the effective date of the budget, which is adopted and controlled at the fund level, the amounts stated therein as proposed expenditures become appropriations. The Park may amend the budget by approval from each of the legislative bodies of the parties to the agreement during the fiscal year. The budget for the General Fund is prepared on the cash and expenditures/encumbrance basis. Revenues are budgeted in the year receipt is expected; expenditures, which include encumbrances, are budgeted in the year that the applicable warrant requisitions are expected to be issued.
There were no encumbrances outstanding as of June 30, 2021, so the actual budgetary-basis expenditures are the same as the actual GAAP-basis expenditures.
#18..
- 888 -
7473 N. INGRAM AVE., SUITE 102 ⬧ FRESNO, CA 93711
_______________________________________________________________________________________________ P (559) 412-7576 ⬧ F (559) 493-5325 ⬧ WWW.HHCCPAS.COM
INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE
AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH
GOVERNMENT AUDITING STANDARDS
To the Tuolumne River Regional Park Commission,
The Board of Supervisors of the County of Stanislaus, California, and The City Councils of Modesto and Ceres, California
Tuolumne River Regional Park
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities and each major fund of the Tuolumne River Regional Park (the Park), as of and for the year ended June 30, 2021, and the related notes to the financial statements, which collectively comprise the Park’s basic financial statements, and have issued our report thereon dated October 29, 2021.
Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the Park’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Park’s internal control. Accordingly, we do not express an opinion on the effectiveness of the Park’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or, significant deficiencies. Given these limitations, during our audit we did identify certain deficiencies in internal control that we consider to be significant deficiencies, described in the accompanying schedule of findings and responses as items 2021-001 and 2021-002. During our audit, we did not identify any material weaknesses. However, material weaknesses may exist that have not been identified.
#18..
- 889 -
28 Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Park’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.
The Park’s Responses to the Findings
The Park’s responses to the findings identified in our audit is described in the accompanying schedule of findings and responses. The Park’s responses were not subjected to the auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on them.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Park’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.
HUDSON HENDERSON & COMPANY, INC.
Fresno, California
October 29, 2021
#18..
- 890 -
29 TUOLUMNE RIVER REGIONAL PARK
SCHEDULE OF FINDINGS AND RESPONSES
FOR THE YEAR ENDED JUNE 30, 2021
Finding 2021-001 – Significant Deficiency
Accounts Payable Cutoff Procedures
Criteria:
Tuolumne River Regional Park (the Park) should design and implement internal controls over the accounts payable year end accrual process to ensure that balances can be vouched, tested, and presented in accordance with generally accepted accounting principles (GAAP).
Condition:
Per testing performed over subsequent disbursements, we noted expenditures for goods and services that were incurred prior to the end of the fiscal year that were not properly recorded in the correct accounting period. This resulted in material adjustments to accrue those expenses as accounts payable as of the fiscal year-end.
Cause of Condition:
The Park lacked a proper cut-off financial closing procedure that identified all payables that should be recorded back in the current fiscal year.
Effect of Condition:
This resulted in expenditures not being accrued or posted to the correct fiscal year and thus a material audit adjustment was recorded.
Recommendation:
We recommend that the Park implement and develop, as part of the year-end closing procedures, a process to review subsequent disbursements to identify those disbursements that were incurred in the previous fiscal year.
Management’s Response:
The City, Financial Analyst III, assigned to the Park will coordinate regular meetings with Park Management staff, to request updates on outstanding invoices to ensure all invoices outstanding after the end of the fiscal year are accrued back to the proper fiscal year. Financial Analyst in coordination with Park Management staff will analyze the payment history for all vendors to confirm there are no missing invoices. Additional training and guidance will be provided by the Accounting Manager to department staff on how to address outstanding invoices which may have charges in dispute that prevent timely payment prior to the end of the fiscal year or shortly after. #18..
- 891 -
30 TUOLUMNE RIVER REGIONAL PARK
SCHEDULE OF FINDINGS AND RESPONSES (continued)
FOR THE YEAR ENDED JUNE 30, 2021
Finding 2021-002 – Significant Deficiency
Accounts Receivable/Revenue Procedures
Criteria:
Tuolumne River Regional Park (the Park) should design and implement internal controls over the accounts receivable year end accrual process to ensure that balances can be vouched, tested, and presented in accordance with generally accepted accounting principles (GAAP).
Condition:
During our fieldwork, we noted the Park did not have adequate procedures to accurately report accounts receivable balances and revenues as of year-end and for the year then ended. The procedures currently in place did not ensure the year-end account balances were accurately presented for revenues, receivables, and unearned revenues, including the reconciliation of funds to be available within the proper revenue recognition period; resulting in material audit adjustments to reconcile these balances.
Cause of Condition:
Internal controls have not been suitably designed and implemented over the accounts receivable closing process to ensure current year revenues, receivables, and unearned revenue accurately reflect current year activity in accordance with the modified accrual basis of accounting, which resulted in current year balances of revenue, receivables, and unearned revenue to be incorrect prior to the start of the audit.
Effect of Condition:
Revenues and receivables not properly stated in accordance with GAAP resulted in material audit adjustments of current year revenues, receivables, and unearned revenues.
Recommendation:
We recommend that the Park implement stronger policies and closing procedures over revenue recognition and deferrals as part of the year-end closing procedures. This should include training and assistance in the original posting of entries to allow ease of reconciliation and reporting for the financial reporting process.
Management’s Response:
Additional training and guidance will be provided by the Accounting Manager to staff responsible for accounting for the revenues, receivables and unearned revenues for the Park. The Financial Analyst responsible for the year-end revenue accrual and deferral processes will be required to update the year-end check list to address the analysis of all outstanding receivable balances, revenue recognition and deferrals as of the end of the fiscal year. #18..
- 892 -
31 TUOLUMNE RIVER REGIONAL PARK
SCHEDULE OF PRIOR YEAR FINDINGS AND RESPONSES
FOR THE YEAR ENDED JUNE 30, 2020
There were no prior year financial statement findings reported in accordance with Government Auditing Standards. #18..
- 893 -
CITY OF MODESTO
TRANSPORTATION DEVELOPMENT ACT FUNDS
FINANCIAL STATEMENTS
WITH
INDEPENDENT AUDITORS’ REPORT
FOR THE YEAR ENDED
JUNE 30, 2021
#18..
- 894 -
TABLE OF CONTENTS
Page
Independent Auditors’ Report.......................................................................................................................... 1 Basic Financial Statements:
Fund Financial Statements:
Balance Sheet – Local Transportation Special Revenue Funds................................................................. 4 Statement of Revenues, Expenditures, and Changes in Fund Balances Local Transportation Special Revenue Funds ......................................................................................... 5 Statement of Net Position – Bus Enterprise Fund .................................................................................... 6 Statement of Revenues, Expenses, and Changes in Fund Net Position Bus Enterprise Fund................................................................................................................................ 7 Statement of Cash Flows – Bus Enterprise Fund ...................................................................................... 8 Notes to the Financial Statements ........................................................................................................... 10 Required Supplementary Information (Unaudited):
Schedule of the Bus Fund’s Proportionate Share of the Net Pension Liability ....................................... 27 Schedule of the Bus Fund’s Contributions.............................................................................................. 28 Schedule of Changes in the Net OPEB Liability and Related Ratios........................................................ 29 Schedule of Contributions – OPEB Plan .................................................................................................. 30 Other Reports:
Independent Auditors’ Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards and the Transportation Development Act ................................................................................................................... 31 Independent Accountants’ Report on Compliance with the Public Transportation Modernization, Improvement, and Service Enhancement Account (PTMISEA) ............................................. 33 #18..
- 895 -
7473 N. INGRAM AVE., SUITE 102 ⬧ FRESNO, CA 93711
_______________________________________________________________________________________________ P (559) 412-7576 ⬧ F (559) 493-5325 ⬧ WWW.HHCCPAS.COM
INDEPENDENT AUDITORS’ REPORT
To the Honorable Members of the City Council
City of Modesto, California
Report on the Financial Statements
We have audited the accompanying financial statements of the Local Transportation Special Revenue Funds and the Bus Enterprise Fund (collectively known as the Transportation Development Act Funds) of the City of Modesto, California (the City), as of and for the year ended June 30, 2021, and the related notes to the financial statements, which collectively comprise the Transportation Development Act Funds basic financial statements as listed in the table of contents.
Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
Auditors’ Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the Local Transportation Special Revenue Funds and the Bus Enterprise Fund of the City as of June 30, 2021, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. #18..
- 896 -
2 Emphasis of Matter
Basis of Presentation
As discussed in Note 1, the financial statements of the Transportation Development Act Funds of the City are intended to present the financial position, the changes in financial position, and, where applicable, cash flows of only that portion of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City that is attributable to the transactions of the Transportation Development Act Funds. They do not purport to, and do not present fairly the financial position of the City as of June 30, 2021, the changes in its financial position, or, where applicable, its cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter.
Other Matters
Prior-Year Comparative Information
The financial statements include summarized prior-year comparative information. Such information does not include all of the information required or sufficient detail to constitute a presentation in conformity with accounting principles generally accepted in the United States of America. Accordingly, such information should be read in conjunction with the financial statements for the year ended June 30, 2020, from which such summarized information was derived. We have previously audited the 2020 financial statements, and we expressed an unmodified audit opinion on the financial statements in our report dated November 13, 2020. In our opinion, the summarized comparative information presented herein as of and for the year ended June 30, 2020, is consistent, in all material respects, with the audited financial statements from which it has been derived.
Required Supplementary Information
Management has omitted management’s discussion and analysis (MD&A) and the respective budgetary comparison schedules for the special revenue funds that accounting principles generally accepted in the United States of America require to be presented to supplement the financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinion on the basic financial statements is not affected by this missing information.
Accounting principles generally accepted in the United States of America require that the schedule of the Bus Fund’s proportionate share of the net pension liability, schedule of the Bus Fund’s contributions, schedule of changes in the net OPEB liability and related ratios, and schedule of contributions – OPEB plan on pages 27-30 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context.
We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Other Reporting Required by Government Auditing Standards and the Transportation Development Act In accordance with Government Auditing Standards, we have also issued our report dated November 24, 2021, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters as it relates to the Transportation Development Act Funds. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance as it relates to the Transportation Development Act Funds.
#18..
- 897 -
3 That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance as it relates to the Transportation Development Act Funds.
HUDSON HENDERSON & COMPANY, INC.
Fresno, California
November 24, 2021
#18..
- 898 -
The accompanying notes are an integral part of the financial statements. 4 CITY OF MODESTO
TRANSPORTATION DEVELOPMENT ACT FUNDS
BALANCE SHEET - LOCAL TRANSPORTATION SPECIAL REVENUE FUNDS JUNE 30, 2021
(with comparative totals as of June 30, 2020)
NonMotorized
Streets
and Roads 2021 2020
ASSETS
Cash and investments $ 1,040,024 $ 427,374 $ 1,467,398 $ 1,751,450 Interest receivable 2,454 - 2,454 4,482
Due from other governments 189,759 - 189,759 -
Total Assets $ 1,232,237 $ 427,374 $ 1,659,611 $ 1,755,932
LIABILITIES
Unearned revenue $ 1,230,461 $ 427,374 $ 1,657,835 $ 1,754,158
FUND BALANCES
Restricted 1,776 - 1,776 1,774
Total Liabilities and
Fund Balances $ 1,232,237 $ 427,374 $ 1,659,611 $ 1,755,932 Totals
#18..
- 899 -
The accompanying notes are an integral part of the financial statements. 5 CITY OF MODESTO
TRANSPORTATION DEVELOPMENT ACT FUNDS
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
LOCAL TRANSPORTATION SPECIAL REVENUE FUNDS
FOR THE YEAR ENDED JUNE 30, 2021
(with comparative totals for the year ended June 30, 2020) NonMotorizedStreets
and Roads 2021 2020
REVENUES
Intergovernmental:
Local transportation funds $ 286,083 $ - $ 286,083 $ 103,400 Interest 11,898 - 11,898 5,029
Change in fair value of investments (12,094) - (12,094) 23,446 Other 14 - 14 -
Total Revenues 285,901 - 285,901 131,875
EXPENDITURES
Maintenance and supplies 330 - 330 -
Total Expenditures 330 - 330 -
Excess (Deficiency) of Revenues
Over (Under) Expenditures 285,571 - 285,571 131,875
OTHER FINANCING SOURCES (USES)
Transfers:
Out to other funds of the City (285,569) - (285,569) (131,875) Total Other Financing
Sources (Uses) (285,569) - (285,569) (131,875)
Changes in fund balances 2 - 2 -
Fund Balances, Beginning of Year 1,774 - 1,774 1,774
Fund Balances, End of Year $ 1,776 -$ $ 1,776 $ 1,774
Totals
#18..
- 900 -
The accompanying notes are an integral part of the financial statements. 6 CITY OF MODESTO
TRANSPORTATION DEVELOPMENT ACT FUNDS
STATEMENT OF NET POSITION – BUS ENTERPRISE FUND
JUNE 30, 2021
(with comparative totals as of June 30, 2020)
2021 2020
ASSETS
Current Assets:
Cash and investments $ 8,265,827 $ 13,505,464
Accounts receivable 304,695 107,419
Interest receivable 19,897 39,206
Prepaid expenses 5,582 104,492
Due from other governments 9,540,773 2,573,108
Total Current Assets 18,136,774 16,329,689
Noncurrent Assets:
Capital assets:
Land and construction in progress 6,852,312 4,912,255
Other capital assets, net 33,787,902 33,977,417
Total Noncurrent Assets 40,640,214 38,889,672
Total Assets 58,776,988 55,219,361
DEFERRED OUTFLOWS OF RESOURCES
Deferred OPEB 108,362 53,337
Deferred pensions 475,530 538,873
Total Deferred Outflows of Resources 583,892 592,210
LIABILITIES
Current Liabilities:
Accounts payable 3,400,202 2,261,012
Accrued salaries and benefits 88,159 52,308
Advances from other funds 471,416
Unearned revenue other 45,361 6,757
Unearned revenue PTMISEA - 26,690
Unearned revenue CALEMA 117,245 237,607
Unearned revenue state of good repair - 38,136
Unearned revenue capital transit 6,486,649 9,874,665
Unearned revenue LTF/LCTOP 5,621,643 1,862,729
Total Current Liabilities 16,230,675 14,359,904
Noncurrent Liabilities:
Net pension liability 3,861,752 3,423,069
Net OPEB liability 466,582 411,717
Total Noncurrent Liabilities 4,328,334 3,834,786
Total Liabilities 20,559,009 18,194,690
DEFERRED INFLOWS OF RESOURCES
Deferred OPEB 24,443 32,234
Deferred pensions 13,869 61,833
Total Deferred Inflows of Resources 38,312 94,067
NET POSITION
Net investment in capital assets 40,640,214 38,889,672
Unrestricted (1,876,655) (1,366,858)
Total Net Position $ 38,763,559 $ 37,522,814
#18..
- 901 -
The accompanying notes are an integral part of the financial statements. 7 CITY OF MODESTO
TRANSPORTATION DEVELOPMENT ACT FUNDS
STATEMENT OF REVENUES, EXPENSES, AND
CHANGES IN FUND NET POSITION – BUS ENTERPRISE FUND
FOR THE YEAR ENDED JUNE 30, 2021
(with comparative totals for the year ended June 30, 2020) 2021 2020
OPERATING REVENUES
Charges for services $ 1,118,636 $ 2,017,339
Miscellaneous 505,531 320,720
Total Operating Revenues 1,624,167 2,338,059
OPERATING EXPENSES
Contractual services 17,392,463 13,137,802
Depreciation 3,479,732 3,538,597
Maintenance and supplies 3,389,110 3,087,697
Salaries and wages 1,665,914 1,667,940
Administrative services 1,850,804 1,715,645
Employee benefits 787,615 745,949
Allocated indirect administrative costs 375,632 348,309 Utilities 197,821 208,392
Insurance 43,573 40,618
Other 137,652 131,579
Total Operating Expenses 29,320,316 24,622,528
Operating Loss (27,696,149) (22,284,469)
NONOPERATING REVENUES (EXPENSES)
Intergovernmental:
Local transportation funds 9,152,886 6,561,031
State transit assistance - 6,417,706
Federal transit administration 15,974,448 3,694,503
Proposition 1B 251,011 157,968
CMAQ grants 49,768 34,050
Low carbon transit operations program 323,940 872,582
Other 112,283 426,461
Gain (loss) on disposition of capital assets (258,570) 3,088 Interest income (loss) (2,421) (3,675)
Rental income 135,914 141,781
Change in fair value of investments (103,414) 201,475
Total Nonoperating Revenues (Expenses) 25,635,845 18,506,970 Income (Loss) Before Capital Contributions and Transfers (2,060,304) (3,777,499) Capital contributions:
Local transportation funds 2,462,281 254,425
Federal transit administration 2,979,321 258,985
Low carbon transit operations program (62,756) 76
Transfers in from other funds of the City 29,516 1,153,727 Transfers out to other funds of the City (2,107,313) (723,919) Change in Net Position 1,240,745 (2,834,205)
Net Position, Beginning of Year 37,522,814 40,357,019
Net Position, End of Year $ 38,763,559 $ 37,522,814
#18..
- 902 -
The accompanying notes are an integral part of the financial statements. 8 CITY OF MODESTO
TRANSPORTATION DEVELOPMENT ACT FUNDS
STATEMENT OF CASH FLOWS – BUS ENTERPRISE FUND
FOR THE YEAR ENDED JUNE 30, 2021
(with comparative totals for the year ended June 30, 2020) 2021 2020
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers and users $ 1,426,891 $ 2,287,050 Payments to suppliers (22,936,570) (18,644,637)
Payments to employees (1,183,952) (1,311,807)
Net Cash Used in Operating Activities (22,693,631) (17,669,394)
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Cash receipts/(payments) from grants:
Local transportation funds 12,911,800 4,021,538
State transit assistance - 6,417,706
Federal transit administration 12,586,432 5,976,676
CMAQ grant for rideshare program 49,768 34,050
Low carbon transit operations program 323,940 872,582
Other (6,750,955) 5,782,205
Transfers in from other funds of the City 29,516 1,153,727 Transfers out to other funds of the City (2,107,313) (723,919) Advances from other funds of the City 471,416 -
Net Cash Provided by Noncapital Financing Activities 17,514,604 23,534,565
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Acquisition and construction of capital assets (5,488,844) (777,536) Proceeds from the sale of property and equipment - 6,175 Capital contributions:
Local transportation funds 2,462,281 254,425
Federal transit administration 2,979,321 258,985
Low carbon transit operations program (62,756) 76
Net Cash Used in Capital and Related
Financing Activities (109,998) (257,875)
CASH FLOWS FROM INVESTING ACTIVITIES
Investment earnings (loss) (86,526) 183,212
Rental income received 135,914 141,781
Net Cash Provided by Investing Activities 49,388 324,993 Change in cash and investments (5,239,637) 5,932,289
Cash and Investments, Beginning of Year 13,505,464 7,573,175 Cash and Investments, End of Year $ 8,265,827 $ 13,505,464 #18..
- 903 -
The accompanying notes are an integral part of the financial statements. 9 CITY OF MODESTO
TRANSPORTATION DEVELOPMENT ACT FUNDS
STATEMENT OF CASH FLOWS – BUS ENTERPRISE FUND (continued) FOR THE YEAR ENDED JUNE 30, 2021
(with comparative totals for the year ended June 30, 2020) 2021 2020
RECONCILIATION OF OPERATING LOSS TO NET
CASH USED IN OPERATING ACTIVITIES:
Operating loss $ (27,696,149) $ (22,284,469)
Adjustments to reconcile operating loss to net cash
used in operating activities:
Depreciation 3,479,732 3,538,597
Changes in assets and liabilities:
Accounts receivable (197,276) (51,009)
Prepaid expenses 98,910 158,315
Accounts payable 1,139,190 613,039
Accrued salaries and benefits 35,851 15,954
Net OPEB liability and related deferred
outflows/inflows of resources (62,816) (14,607)
Net pension liability and related
deferred outflows/inflows of resources 508,927 354,786
Net Cash Used in Operating Activities $ (22,693,631) $ (17,669,394) #18..
- 904 -
CITY OF MODESTO
TRANSPORTATION DEVELOPMENT ACT FUNDS
NOTES TO THE FINANCIAL STATEMENTS
10 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Description of Reporting Entity: The City of Modesto, California (the City) accounts for California Transportation Development Act (TDA) monies in the Local Transportation Special Revenue Funds and the Bus Enterprise Fund (TDA Funds). These funds are a part of the City and not a separate legal entity. As such, these financial statements only present the fund financial statements and not the government-wide information or financial statements. The Local Transportation Special Revenue Funds are combined and presented as a special revenue fund in the City’s Comprehensive Annual Financial Report (ACFR) along with the Bus Enterprise Fund. These financial statements are intended to reflect the financial position, changes in financial position, and cash flows, where applicable, of the TDA Funds in accordance with accounting principles generally accepted in the United States of America.
Basis of Presentation, Basis of Accounting, and Measurement Focus: The Local Transportation Special Revenue Funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible with the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City considers revenues to be available if they are collected within 180 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under the accrual basis of accounting. Intergovernmental and interest revenues are considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. Under Governmental Accounting Standards Board (GASB) Statement No. 34, budgetary comparison information is required to be presented for each major special revenue fund with a legally adopted budget. The City is not legally required to adopt a budget for the TDA Funds. Therefore, budget comparison information is not included in these financial statements.
The Bus Enterprise Fund is reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows.
The financial statements include certain prior-year summarized comparative information in total but not at the level of detail required for a presentation in accordance with generally accepted accounting principles. Accordingly, such information should be read in conjunction with the TDA Funds financial statements for the year ended June 30, 2020, from which the summarized information was derived.
Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met.
The City reports the following Local Transportation Special Revenue Funds:
The Non-Motorized Fund accounts for monies received and spent under Article 3, Section 99234 of the TDA.
The Streets and Roads Fund accounts for monies received and to be spent under Article 8, Section 99400(a) of the TDA.
The City reports the following Enterprise Fund:
The Bus Enterprise Fund accounts for monies received and spent under Article 4, Section 99250 (public transit) of the TDA. The Bus Enterprise Fund also receives federal funds through the Federal Transit Administration, and other state and local grants, in addition to operating revenues.
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the enterprise fund are charges to customers for bus fares, sales, and services. Operating expenses for the enterprise fund includes the cost of sales and services, depreciation on capital assets, and administrative expenses. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. #18..
- 905 -
CITY OF MODESTO
TRANSPORTATION DEVELOPMENT ACT FUNDS
NOTES TO THE FINANCIAL STATEMENTS (continued)
11 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Management’s Use of Estimates: The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates.
Due from Other Governments/Unearned Revenue: Grants, entitlements, or shared revenues are recorded as receivables and revenues in the special revenue funds when they are received or susceptible to accrual. Grants awarded for enterprise funds are recorded as receivables and nonoperating revenues when they are earned.
Unearned revenue consists of grant funds received in excess of qualified expenditures. Grant revenue is recognized in the period of qualified expenditure/expenses.
Capital Assets: Capital assets are defined by the City as assets with an initial individual cost of more than $5,000 and estimated useful life in excess of two years. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated assets are recorded at estimated fair value at the date of donation.
Capital projects funded by the Local Transportation Special Revenue Funds, including infrastructure (roads, curbs, gutters, streets, bridges, sidewalks, drainage systems, lighting systems, right-of-ways, and land related to such assets), are recorded as transfers out to other City funds and capital outlay expenditures of the Local Transportation Special Revenue Funds. These expenditures are capitalized in the City’s government-wide financial statements as the related capital assets become the property of the City and are maintained by the City.
In the Bus Enterprise Fund, buildings and equipment are depreciated using the straight-line method over the estimated useful lives of the assets, which are 30 years for buildings, 20 years for improvements, 12 years for buses, 10 years for furnishings and equipment, and 2 to 10 years for vehicles. Depreciation is included in operating expenses.
Fund Equity: In the fund financial statements, governmental funds report fund balance as nonspendable, restricted, committed, assigned, or unassigned based primarily on the extent to which the City is bound to honor constraints on how specific amounts can be spent.
• Nonspendable – Amounts that are not in spendable form (such as inventory) or are required, either legally or contractually, to be maintained intact.
• Restricted – Amounts with constraints placed on their use that are either (a) externally imposed by creditors, grantors, contributors, or laws or regulations of other governments or (b) imposed by law through constitutional or enabling legislation.
• Committed – Amounts constrained to specific purposes by the City, using the highest level of decisionmaking authority (City Council). To be reported as committed, amounts cannot be used for any other purpose unless the City takes the same highest level action to remove or change the constraint. The underlying action that imposed the limitation needs to occur no later than the close of the reporting period. • Assigned – Amounts the City intends to use for a specific purpose. Intent can be expressed by the City at either the highest level of decision-making authority or by an official or body to which the City delegates the authority.
• Unassigned – For the TDA Special Revenue Funds, the unassigned classification is used only if expenditures incurred for specific purposes exceed the amounts restricted, committed, or assigned to those purposes. #18..
- 906 -
CITY OF MODESTO
TRANSPORTATION DEVELOPMENT ACT FUNDS
NOTES TO THE FINANCIAL STATEMENTS (continued)
12 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Fund Equity (continued): The City establishes and modifies or rescinds fund balance commitments by passage of an ordinance or policy. This is typically done through adoption or amendment of the budget. A fund balance commitment is further indicated in the budget as a designation or commitment of the fund, such as approved construction contracts. Assigned fund balance is established by the City through adoption or amendment of the budget or future year budget plan as intended for a specific purpose.
In circumstances where an expenditure is incurred for which restricted, committed, assigned, or unassigned funds are available for use, it is the City’s policy to use restricted resources first, followed by the committed, assigned, and unassigned resources as they are needed.
Net Position: Net position represents the residual interest in the City’s assets after liabilities are deducted. In accordance with GASB Statement No. 63, the fund equity section on the Statement of Net Position was combined to report total net position and present it in three broad components:
• Net investment in capital assets – Amount consists of capital assets, including infrastructure, net of accumulated depreciation and outstanding principal balances of debt attributable to the acquisition, construction, or improvement of those assets.
• Restricted – Amount consists of net position restricted by external creditors, grantors, contributors, or laws or regulations of other governments and restrictions imposed by law through constitutional provisions or enabled legislature.
• Unrestricted – Amount consists of all net position that does not meet the definition “net investment in capital assets” or “restricted” net position.
When both restricted and unrestricted net position are available, restricted resources are depleted first before unrestricted resources are used.
Pensions: For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the Miscellaneous Plan (Plan) and additions to/deductions from the Plan’s fiduciary net position have been determined on the same basis as they are reported by the CalPERS Financial Office. For this purpose, benefit payments (including refunds of employee contributions) are recognized when currently due and payable in accordance with the benefit terms. Investments of the Plan are reported at fair value.
GASB Statement No. 68 requires that the reported results must pertain to liability and asset information within certain defined timeframes. For this report, the following timeframes are used:
Valuation Date: June 30, 2019
Measurement Date: June 30, 2020
Measurement Period: July 1, 2019 to June 30, 2020
Other Postemployment Benefits (OPEB): For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the net position of the City’s plan (OPEB Plan) and additions to/deductions from the OPEB Plan’s net position have been determined on the same measurement basis. For this purpose, benefit payments are recognized when currently due and payable in accordance with the benefit terms. Investments of the Plan are reported at fair value.
GASB Statement No. 75 requires that the reported results must pertain to liability and asset information within certain defined timeframes. For this report, the following timeframes are used:
Valuation Date: June 30, 2019
Measurement Date: June 30, 2020
Measurement Period: July 1, 2019 to June 30, 2020
#18..
- 907 -
CITY OF MODESTO
TRANSPORTATION DEVELOPMENT ACT FUNDS
NOTES TO THE FINANCIAL STATEMENTS (continued)
13 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Governmental Accounting Standards Update: During the year ending June 30, 2021, the City implemented the following standards:
GASB Statement No. 84 – Fiduciary Activities. The requirements of this statement are effective for reporting periods beginning after December 15, 2018. Subsequent to issuance, GASB Statement No. 95 postponed the requirements of this statement to reporting periods beginning after December 15, 2019.
GASB Statement No. 89 – Accounting for Interest Cost Incurred before the End of a Construction Period. The requirements of this statement are effective for reporting periods beginning after December 15, 2019. Subsequent to issuance, GASB Statement No. 95 postponed the requirements of this statement to reporting periods beginning after December 15, 2020.
GASB Statement No. 90 – Majority Equity Interests- an amendment of GASB Statements No. 14 and No 61. The requirements of this statement are effective for reporting periods beginning after December 15, 2018. Subsequent to issuance, GASB Statement No. 95 postponed the requirements of this statement to reporting periods beginning after December 15, 2019.
Released GASB Statements to be implemented in future financial statements are as follows:
GASB Statement No. 87 – Leases. The requirements of this statement are effective for reporting periods beginning after December 15, 2019. Subsequent to issuance, GASB Statement No. 95 postponed the requirements of this statement to reporting periods beginning after June 15, 2021.
GASB Statement No. 91 – Conduit Debt Obligations. The requirements of this statement are effective for reporting periods beginning after December 15, 2020. Subsequent to issuance, GASB Statement No. 95 postponed the requirements of this statement to reporting periods beginning after December 15, 2021.
GASB Statement No. 92 – Omnibus 2020. The requirements of this statement are effective for reporting periods beginning after June 15, 2020. Subsequent to issuance, GASB Statement No. 95 postponed the requirements of this statement to June 15, 2021.
GASB Statement No. 93 – Replacement of Interbank Offered Rates. The requirements of this statement are effective for reporting periods beginning after June 15, 2021. Subsequent to issuance, GASB Statement No. 95 postponed the certain requirements of this statement to reporting periods beginning after June 15, 2022.
GASB Statement No. 94 – Public-Private and Public-Public Partnerships and Availability Payment Arrangements. The requirements of this statement are effective for reporting periods beginning after June 15, 2022.
GASB Statement No. 96 – Subscription-Based Information Technology Arrangements. The requirements of this statement are effective for reporting periods beginning after June 15, 2022.
GASB Statement No. 97 – Certain Component Unit Criteria, and Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans. The requirements of this statement are effective for reporting periods beginning after June 15, 2021.
Subsequent Events: In compliance with accounting standards, management has evaluated events that have occurred after year-end to determine if these events are required to be disclosed in the financial statements.
Management has determined that the event described in Note 12 requires disclosure in accordance with accounting standards. These subsequent events have been evaluated through November 24, 2021, which is the date the financial statements were available to be issued.
#18..
- 908 -
CITY OF MODESTO
TRANSPORTATION DEVELOPMENT ACT FUNDS
NOTES TO THE FINANCIAL STATEMENTS (continued)
14 NOTE 2 – CASH AND INVESTMENTS
Cash and investments of the Transportation Development Act Funds are pooled with other City of Modesto funds.
Interest earned on pooled cash and investments is credited to each participant in the pool based on each participant’s average monthly cash balance. Credit quality ratings are not available for the Transportation Development Act Funds’ investments as all cash is invested as part of the common cash and investment pool of the City of Modesto. Cash in the City Pool is considered unclassified as to credit risk because it is not evidenced by securities that exist in physical or book entry form. The Transportation Development Act Funds do not have any deposits with financial institutions as of June 30, 2021.
Cash and investments as of June 30, 2021 are classified in the accompanying financial statements as follows:
Balance Sheet- Local Transportation
Special Revenue Funds:
Cash and investments $ 1,467,398
Statement of Net Position- Bus Enterprise Fund:
Cash and investments 8,265,827
Total cash and investments $ 9,733,225
Summary of Deposits: Cash and investments as of June 30, 2021 consist of the following:
Deposits with City of Modesto
Cash and Investment Pool: $ 9,733,225
Total cash and investments $ 9,733,225
Detailed information concerning the City of Modesto’s pooled cash and investments, including information regarding the fair value of investments, may be found in the City of Modesto’s Annual Comprehensive Financial Report. As of June 30, 2021, the fair value of the TDA Funds position in the pool is the same as the value of its pool shares. #18..
- 909 -
CITY OF MODESTO
TRANSPORTATION DEVELOPMENT ACT FUNDS
NOTES TO THE FINANCIAL STATEMENTS (continued)
15 NOTE 3 – CAPITAL ASSETS
Capital asset activity for the Bus Enterprise Fund for the year ended June 30, 2021, was as follows:
Beginning Additions/ Deletions/ Ending
Balance Transfers In Transfers Out Balance
Capital Assets, Not
Being Depreciated:
Land $ 4,060,454 $ - $ - $ 4,060,454
Construction in Progress 851,801 2,317,603 (377,546) 2,791,858 Total Capital Assets,
Not Being Depreciated 4,912,255 2,317,603 (377,546) 6,852,312 Capital Assets, Being Depreciated:
Buildings 23,803,489 - - 23,803,489
Improvements 3,977,602 675,934 - 4,653,536
Furnishings and equipment 2,800,884 - (8,055) 2,792,829 Vehicles 197,556 - (12,785) 184,771
Buses and fareboxes 34,290,246 2,872,852 (524,631) 36,638,467 Total Capital Assets,
Being Depreciated 65,069,777 3,548,786 (545,471) 68,073,092 Less Accumulated Depreciation for:
Buildings (9,346,203) (778,880) - (10,125,083)
Improvements (2,325,606) (155,573) - (2,481,179)
Furnishings and equipment (1,387,118) (241,784) 7,249 (1,621,653) Vehicles (169,424) (6,820) 12,786 (163,458)
Buses and fareboxes (17,864,009) (2,296,675) 266,867 (19,893,817) Total Accumulated
Depreciation (31,092,360) (3,479,732) 286,902 (34,285,190) Total Capital Assets, Being
Depreciated, Net 33,977,417 69,054 (258,569) 33,787,902 Total Capital Assets, Net $ 38,889,672 $ 2,386,657 $ (636,115) $ 40,640,214 Depreciation expense for the year ended June 30, 2021 was $3,479,732.
NOTE 4 – COMPLIANCE REQUIREMENTS OF LOCAL TRANSPORTATION FUNDS The Bus Enterprise Fund is subject to TDA provisions requiring the calculation and adherence of fare and local support ratios for TDA transit funding. Effective July 1, 2016, the Stanislaus Council of Governments (StanCOG), the transportation planning agency for Stanislaus County, approved a split system farebox recovery ratio of 20% for Fixed Route and 10% for Demand Response. Due to the COVID-19 pandemic, per Transportation Bill AB-90, StanCOG has waived the Farebox Recovery Ratio requirements for the year ended June 30, 2021. The City’s Bus Enterprise Fund separated the fixed route and demand response calculations for 2021 to show compliance with the required farebox recovery ratios.
#18..
- 910 -
CITY OF MODESTO
TRANSPORTATION DEVELOPMENT ACT FUNDS
NOTES TO THE FINANCIAL STATEMENTS (continued)
16 NOTE 4 – COMPLIANCE REQUIREMENTS OF LOCAL TRANSPORTATION FUNDS (continued) The Bus Enterprise Fund’s fare ratio of operating revenues to operating expenses for the year ended June 30, 2021, as calculated below, indicates that the City’s farebox recovery ratios are below StanCOG’s requirements. However, the City is considered in compliance with TDA provisions as the requirements were waived for the year ended June 30, 2021.
Demand
Fixed Route Response
Charges for services $ 1,305,387 $ 152,479
Local funds supplementation 304,999 -
Advertising revenue 191,855 -
Fare revenues $ 1,802,241 $ 152,479
Operating expenses $ 26,106,198 $ 3,214,118
Less expenses not related to fare generated activities:
Depreciation (3,479,732) -
Transfer in from other City funds (3,439) -
Grant and rent-funded activities (2,949,049) -
Applicable operating expenses $ 19,673,978 $ 3,214,118
Fare ratio 9.16% 4.74%
NOTE 5 – STATE TRANSIT ASSISTANCE PROGRAM ALLOCATIONS
The City receives State Transit Assistance Program allocations from the County of Stanislaus State Transit Assistance Fund. State Transit Assistance funds are to be used for transit operations. Funds shall not be allocated for operating purposes pursuant to Sections 99313 and 99314 to an operator unless the operator meets efficiency standards as described in Section 99314.6. Although the City’s current operating cost per service hour is more than the prior year’s cost per hour taking into account the Consumer Price Index (CPI), the City is still considered to be in compliance with Section 99314.6 as the requirements were waived for the year ended June 30, 2021. 2019/20
2020/21 2019/20 CPI ADJ
2.300%
Total Operating Cost $ 22,445,647 $ 18,626,908
Total Vehicle Service Hours 197,082 187,048
Operating Cost per
Vehicle Service Hour $ 113.89 $ 99.58 $ 101.87
#18..
- 911 -
CITY OF MODESTO
TRANSPORTATION DEVELOPMENT ACT FUNDS
NOTES TO THE FINANCIAL STATEMENTS (continued)
17 NOTE 5 – STATE TRANSIT ASSISTANCE PROGRAM ALLOCATIONS (continued) Although the City’s average total operating cost per vehicle service hour in the three years preceding the current 2021 fiscal year multiplied by the CPI for the same period is higher as shown below, the City is still considered to be in compliance, as the requirements were waived for the year ended June 30, 2021. 2020/21 2019/20 2018/19 2017/18 CPI 3 Year Average
Preceding 3 Year
Average
Adjusted by CPI
1.977%
Total Operating Cost $ 22,445,647 $ 18,626,908 $ 17,576,031 $ 16,157,380 $ 19,549,529 $ 17,453,440 Total Vehicle Service Hours 197,082 187,048 168,311 161,231 184,147 172,197 Operating Cost per
Vehicle Service Hour $ 113.89 $ 99.58 $ 104.43 $ 100.21 $ 106.16 $ 103.36 NOTE 6 – PROPOSITION 1B: PUBLIC TRANSPORTATION MODERNIZATION, IMPROVEMENT, AND SERVICE
ENHANCEMENT ACCOUNT (PTMISEA)
In November 2006, California voters passed a bond measure enacting the Highway Safety, Traffic Reduction, Air Quality, and Port Security Bond Act of 2006. Of the $19.925 billion of State general obligation bonds authorized, $4 billion was set aside by the State as instructed by the statute as the Public Transportation Modernization, Improvement, and Service Enhancement Account (PTMISEA). These funds are available to the California Department of Transportation for intercity rail projects and to transit operators in California for rehabilitation, safety, or modernization improvements; capital service enhancements or expansions; new capital projects; bus rapid transit improvements; or for rolling stock procurement, rehabilitation, or replacement.
In fiscal year 2021, the City didn’t receive any additional funding from the State of California Department of Transportation passed through StanCOG. The City spent $26,993 in various projects during the year and earned an additional $303 in interest, leaving $0 of unspent PTMISEA funds as of June 30, 2021.
Project Name
Beginning
Unearned
Revenue Interest
New
Receipts Expended
Ending
Unearned
Revenue
Security $ 26,690 $ 303 $ - $ (26,993) $ -
Total $ 26,690 $ 303 $ - $ (26,993) $ -
#18..
- 912 -
CITY OF MODESTO
TRANSPORTATION DEVELOPMENT ACT FUNDS
NOTES TO THE FINANCIAL STATEMENTS (continued)
18 NOTE 7 – CALIFORNIA OFFICE OF EMERGENCY SERVICES GRANT (CALEMA) Unearned revenue for the CALEMA Funds for the year ended June 30, 2021, was as follows:
Project Name
Beginning
Unearned
Revenue Interest
New
Receipts Expended
Ending
Unearned
Revenue
On Board Security Enhancements $ 121,877 $ 1,044 $ - $(122,921) $ - Transit Center Video
Surveillance System 115,730 1,515 - - 117,245
Total $ 237,607 $ 2,559 $ - $(122,921) $ 117,245
NOTE 8 – CAPITAL TRANSIT AND LOCAL TRANSPORTATION FUNDS Unearned revenue for the TDA Funds for the year ended June 30, 2021, was as follows:
Non-Motorized Streets and Roads Total
Unearned revenue, beginning of year $ 1,326,784 $ 427,374 $ 1,754,158 TDA funds allocated 201,657 - 201,657
TDA funds earned (297,980) - (297,980)
Unearned revenue, end of year $ 1,230,461 $ 427,374 $ 1,657,835 Local Transportation Special Revenue Funds
LTF/LCTOP Capital Transit Total
Unearned revenue, beginning of year $ 1,862,729 $ 9,874,665 $ 11,737,394 TDA funds allocated 12,326,866 3,887,014 16,213,880
TDA funds earned (8,567,952) (7,275,030) (15,842,982)
Unearned revenue, end of year $ 5,621,643 $ 6,486,649 $ 12,108,292 Bus Enterprise Fund
#18..
- 913 -
CITY OF MODESTO
TRANSPORTATION DEVELOPMENT ACT FUNDS
NOTES TO THE FINANCIAL STATEMENTS (continued)
19 NOTE 9 – PENSION PLAN
General Information about the Pension Plan
Plan Description: All of the Bus Fund qualified employees are eligible to participate in the City’s Miscellaneous Pension Plan (Plan), an agent multi-employer defined benefit pension plan administered by the California Public Employees’ Retirement System (CalPERS). Departments and funds of the City, including the Bus Fund, are in a costsharing arrangement in which all risks and costs are shared proportionately. CalPERS issues a separate annual comprehensive financial report. Copies of the annual audited financial statements are publicly available reports that can be obtained at CalPERS’ website at www.calpers.ca.gov under Forms and Publications or may be obtained from the CalPERS Executive Office, 400 Q Street, Sacramento, California 95811.
The California Legislature passed and the Governor signed the “Public Employees’ Pension Reform Act of 2013” (PEPRA) on September 12, 2012. PEPRA contained a number of provisions intended to reduce future pension obligations. PEPRA primarily affects new pension plan members who are enrolled for the first time after December 2012. Benefit provisions under the Plan and other requirements are established by State statute and City resolution.
Benefits Provided: The benefits for the Plan are based on members’ years of services, age, final compensation, and benefit formula. Benefits are provided for disability, death, and survivors of eligible members or beneficiaries.
Members come fully vested in their retirement benefits earned to date after five years of credited service.
The Plan’s provisions and benefits in effect at June 30, 2021 are summarized as follows:
Prior to
January 17, 2012
January 17, 2012 to
December 31, 2012
On or After
January 1, 2013
Benefit formula 2% @ 55 2% @ 60 2% @ 62
Benefit vesting schedule 5 years service 5 years service 5 years service Benefit payments monthly for life monthly for life monthly for life Retirement age 50 to 67 50 to 67 52 to 67
Monthly benefits, as a % of
eligible compensation 1.426 to 2.418% 1.092 to 2.418% 1.0 to 2.5% Contributions: Section 20814(c) of the California Public Employees Retirement Law (PERL) requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through the CalPERS’ annual actuarial valuation process. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees.
For the measurement period ended June 30, 2020 (the measurement date) for the Plan, the average active employee contribution rate was 7.00% of annual pay and the employer’s contribution rate was 8.32% of annual payroll.
Employer contribution rates may change if plan contracts are amended.
It is the responsibility of the City to make necessary accounting adjustments to reflect the impact due to any employer-paid member contributions or situations where members are paying a portion of the employer contribution.
For the year ended June 30, 2021, the employer contributions recognized as a deferred outflow of resources was $346,108.
#18..
- 914 -
CITY OF MODESTO
TRANSPORTATION DEVELOPMENT ACT FUNDS
NOTES TO THE FINANCIAL STATEMENTS (continued)
20 NOTE 9 – PENSION PLAN (continued)
Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions
As of June 30, 2021, the Bus Fund reported a liability of $3,861,752 for its proportionate share of the net pension liability. The net pension liability at June 30, 2021, was measured as of June 30, 2020, using an annual actuarial valuation as of June 30, 2019, rolled forward to June 30, 2020 using standard update procedures. The Bus Fund’s proportion of the net pension liability was based on its contributions to the Plan relative to all contributions to the Plan. At June 30, 2021, the Bus Fund’s proportion was 2.78969%.
For the year ended June 30, 2021, the Bus Fund recognized pension expenses of $591,717. At June 30, 2021, the Bus Fund reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:
June 30, 2021
Deferred Outflows
of Resources
Deferred Inflows
of Resources
Pension contribution subsequent to measurement date $ 346,108 $ - Changes of assumptions - (13,073)
Differences between expected and actual experiences 60,108 (796) Net difference between projected and actual
earnings on pension plan investments 69,314 -
Totals $ 475,530 $ (13,869)
The pension contributions made subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2021. Other amounts reported as deferred outflows and deferred inflows of resources related to pensions will be recognized in future pension expense as follows:
Year Ending
June 30
2022 $ (16,518)
2023 41,289
2024 49,976
2025 40,806
Total $ 115,553
#18..
- 915 -
CITY OF MODESTO
TRANSPORTATION DEVELOPMENT ACT FUNDS
NOTES TO THE FINANCIAL STATEMENTS (continued)
21 NOTE 9 – PENSION PLAN (continued)
Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions (continued)
Actuarial Assumptions: The total pension liabilities in the June 30, 2019 actuarial valuations, which were rolled forward to June 30, 2020, were determined using the following actuarial method and assumptions:
Valuation Date: June 30, 2019
Measurement Date: June 30, 2020
Actuarial Cost Method: Entry Age Normal Cost Method
Actuarial Assumptions:
Discount Rate- 7.15%
Inflation- 2.625%
Salary Increases- Varies by entry age and service
Investment Rate of Return- 7.25%
Mortality Rate Table1- Derived using CalPERS’ Membership Data for all Funds
Post Retirement Benefit- Up to 2.75%
(1) The mortality table used was developed on CalPERS specific data. The table includes 20 years of mortality improvements using Society of Actuaries Scale BB. For more details on this table, please refer to the 2017 experience study report.
All other actuarial assumptions used in the June 30, 2019 valuation were based on the results of an actuarial experience study for the period from 1997 to 2015, including updates to salary increase, mortality and retirement rates. The Experience Study report can be obtained at the CalPERS website under Forms and Publications.
Discount Rate: The discount rate used to measure the total pension liability at June 30, 2021 was 7.15 percent. To determine whether the municipal bond rate should be used in the calculation of a discount rate for the Plan, CalPERS stress tested plans that would most likely result in a discount rate that would be different from the actuarially assumed discount rate. Based on the testing, none of the tested plans run out of assets. Therefore, the discount rate is adequate and the use of municipal bond rate calculation is not necessary. The long-term expected discount rate of 7.15 percent is applied to all plans in the Public Employees Retirement Fund for the June 30, 2020 measurement date. The stress test results are presented in a detailed report called “GASB Crossover Testing Report” that can be obtained at the CalPERS’ website under the GASB 68 section.
The long-term expected rate of return on pension plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.
In determining the long-term expected rate of return, CalPERS staff took into account both short-term and longterm market return expectations as well as the expected pension fund cash flows. Such cash flows were developed assuming that both members and employers will make their required contributions on time and as scheduled in all future years. Using historical returns of all the funds’ asset classes, expected compound (geometric) returns were calculated over the short-term (first 10 years) and the long-term (11- 60 years) using a building-block approach.
Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund.
The expected rate of return was set by calculating the single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equivalent to the single equivalent rate calculated above and rounded down to the nearest one-quarter of one percent.
#18..
- 916 -
CITY OF MODESTO
TRANSPORTATION DEVELOPMENT ACT FUNDS
NOTES TO THE FINANCIAL STATEMENTS (continued)
22 NOTE 9 – PENSION PLAN (continued)
Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions (continued)
Discount Rate (continued): The table below reflects long-term expected real rate of return by asset class. The rate of return was calculated using the capital market assumptions applied to determine the discount rate and asset allocation. These geometric rates of return are net of administrative expenses.
The target allocation for the June 30, 2020 measurement date was as follows:
Asset Class
New Strategic
Allocation
Real Return
Years 1-10*
Real Return
Years 11+**
Global Equity 50.00% 4.80% 5.98%
Global Fixed Income 28.00 1.00 2.62
Inflation Sensitive 0.00 0.77 1.81
Private Equity 8.00 6.30 7.23
Real Estate 13.00 3.78 4.93
Liquidity 1.00 0.00 (0.92)
Total 100.00%
* An expected inflation of 2.0% used for this period
** An expected inflation of 2.92% used for this period
Sensitivity of the Bus Fund’s Proportionate Share of the Net Pension liability to Changes in the Discount Rate: The following presents the net pension liability of the Plan as of the June 30, 2020 measurement date, calculated using the discount rate of 7.15 percent, as well as what the net pension liability would be if it were calculated using a discount rate that is 1 percentage-point lower (6.15 percent) or 1 percentage-point higher (8.15 percent) than the current rate:
Current
Discount Rate Discount Rate Discount Rate
-1% (6.15) 7.15% +1% (8.15)
Bus Fund's Proportionate Share
of Plan's Net Pension Liability $ 5,589,515 $ 3,861,752 $ 2,424,580 Pension Plan Fiduciary Net Position: Detailed information about the pension plan’s fiduciary net position is available in the separately issued CalPERS financial report. Copies of which may be obtained from the CalPERS Executive Offices, Lincoln Plaza East, 400 Q Street, Sacramento, California 95811. #18..
- 917 -
CITY OF MODESTO
TRANSPORTATION DEVELOPMENT ACT FUNDS
NOTES TO THE FINANCIAL STATEMENTS (continued)
23 NOTE 10 – OTHER POSTEMPLOYMENT BENEFITS (OPEB)
Plan Description: In addition to the pension benefits described above in Note 9, the City participates in an agent multiple-employer plan which provides health care benefits to employees who retire from the City based on certain criteria related to their hired and retirement date, under contractual agreements with all employee groups. All fulltime employees hired before January 1, 2011, except firefighters who receive a cash payout, are eligible to set aside a percentage of accumulated sick leave upon retirement to be used for payment of future health care premiums to a choice of insurance plans (sick leave conversion). The City has no obligation to pay the health insurance allowance for retirees with no accumulated sick leave. All employees hired on or after January 1, 2011 will not be eligible to participate in the sick leave conversion. If an employee elects to receive a buy-out contribution, they will be removed from the City’s medical plan and will no longer be allowed to return to the City’s medical plan.
Employees Covered: See the City of Modesto Annual Comprehensive Financial Report for more information regarding total employees covered.
Contributions: The OPEB plan and its contribution requirements are established by Memoranda of Understanding with the applicable employee bargaining units and may be amended by the agreements between the City and the bargaining units. The annual contribution is based on the actuarially determined contribution. For the fiscal year ended June 30, 2021, the City’s cash contributions were $2,869,050 in payments made by the employer and no estimated subsidy was determined.
Net OPEB Liability: The Bus Fund’s net OPEB liability of $466,582 was measured as of June 30, 2020, and was determined by an actuarial valuation as of July 1, 2019 that rolled forward to determine the June 30, 2021 total OPEB liability, based on the following actuarial methods and assumptions. Standard actuarial update procedures were used to roll forward to the measurement date from the actuarial valuation.
Actuarial assumptions and other inputs- The total OPEB liability in the June 30, 2020 actuarial valuation was determined using the following actuarial assumptions and other inputs, applied to all periods included in the measurement, unless otherwise specified:
Discount Rate: 2.21% at June 30, 2020. 3.50% for TOL as of June 30, 2019;
3.87% for TOL as of June 30, 2018; 3.58% for TOL as of June 30, 2017
Inflation: 2.5% annually
Salary Increases: Aggregate – 3% annually. Merit – CalPERS 1997-2015 Experience Study
Trend: Medical: Graded from 5.8% to ultimate 4.0% in 2076 Mortality: CalPERS 1997-2015 Experience Study
Mortality Improvement: MacLeod Watts Scale 2020 applied generationally from 2015 #18..
- 918 -
CITY OF MODESTO
TRANSPORTATION DEVELOPMENT ACT FUNDS
NOTES TO THE FINANCIAL STATEMENTS (continued)
24 NOTE 10 – OTHER POSTEMPLOYMENT BENEFITS (OPEB) (continued) Net OPEB Liability (continued):
Actuarial assumptions and other inputs (continued)- The changes in the Net OPEB liability for the plan year was as follows:
Net OPEB
Liability
(Asset)
Balance at June 30, 2020 (Measurement Date: June 30, 2019) $ 411,717 Changes in the year:
Service cost 12,824
Interest on the
total OPEB liability 13,861
Differences between expected and
actual experience 26,650
Changes in assumptions 46,633
Benefit payments, including
refunds of employee contributions (45,103)
Net change 54,865
Balance at June 30, 2021 (Measurement Date: June 30, 2020) $ 466,582 Discount Rate- The discount rate used to measure the total OPEB liability was 2.21 percent. The projection of the cash flows used to determine the discount rate assumed that the City contributions will be made at rates equal to the actuarially determined contribution rates. Based on these assumptions, the OPEB City’s net position was projected to be available to make all projected OPEB payments for current active and inactive employees and beneficiaries based on the ‘pay as you go’ annual contributions.
Sensitivity of the Net OPEB Liability to Changes in the Discount Rate: The following presents the total OPEB liability of the City, as well as what the City’s total OPEB liability would be if it were calculated using a discount rate that is 1- percent lower (1.21 percent) or 1-percentage point higher (3.21 percent) than the current discount rate:
Current
Discount Rate Discount Rate Discount Rate
- 1% (1.21%) 2.21% + 1% (3.21%)
Net OPEB Liability $ 509,784 $ 466,582 $ 430,185
#18..
- 919 -
CITY OF MODESTO
TRANSPORTATION DEVELOPMENT ACT FUNDS
NOTES TO THE FINANCIAL STATEMENTS (continued)
25 NOTE 10 – OTHER POSTEMPLOYMENT BENEFITS (OPEB) (continued) Sensitivity of the Net OPEB Liability to Changes in the Healthcare Cost Trend Rate: The following presents the total OPEB liability of the City, as well as what the City’s total OPEB liability would be if it were calculated using a healthcare cost trend rate that is 1-percent lower (4.80 percent) or 1-percentage point higher (6.80 percent) than the current discount rate:
Current
Healthcare
Trend Rate Trend Rate Trend Rate
- 1% (4.80%) 5.80% + 1% (6.80%)
Net OPEB Liability $ 437,191 $ 466,582 $ 504,303
OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB: For the year ended June 30, 2021, the City recognized OPEB Expense of $34,952.
Components of OPEB Expense:
Service cost $ 12,824
Interest on the
total OPEB liability 13,861
Expensed portion of current-period changes of
assumptions or other inputs 8,267
OPEB Expense $ 34,952
At June 30, 2021, the City reported deferred outflows and inflows of resources related to the OPEB Plan from the following sources:
Deferred Deferred
Outflows of Inflows of
Resources Resources
OPEB contributions subsequent to the
measurement date $ 43,995 $ -
Difference between actual and expected experiences 21,688 (3,704) Changes in assumptions 42,679 (20,739)
Total $ 108,362 $ (24,443)
#18..
- 920 -
CITY OF MODESTO
TRANSPORTATION DEVELOPMENT ACT FUNDS
NOTES TO THE FINANCIAL STATEMENTS (continued)
26 NOTE 10 – OTHER POSTEMPLOYMENT BENEFITS (OPEB) (continued) OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB (continued): The OPEB contributions made subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2022. Other amounts reported as deferred outflows and deferred inflows of resources related to the OPEB Plan will be recognized as OPEB expense as follows:
Year Ending
June 30, Amount
2022 $ 6,695
2023 6,644
2024 9,509
2025 12,417
2026 4,659
Total $ 39,924
NOTE 11 – CONTINGENCY
Coronavirus Pandemic: Management has determined the events regarding the novel coronavirus require disclosure in accordance with accounting standards. On March 4, 2020 Governor Newsom issued an emergency proclamation declaring a state of emergency in California due to the novel coronavirus (COVID-19). The COVID-19 outbreak is ongoing, and the ultimate geographic spread of the virus, the duration and severity of the outbreak and the economic and other actions that may be taken by government authorities to contain the outbreak or treat its impact are uncertain. The ultimate impact of COVID-19 on the operations and finances of the City remains unknown.
NOTE 12 – SUBSEQUENT EVENT
On January 26, 2021, the City Council authorized the Joint Powers Agency Agreement to form the Stanislaus Regional Transit Authority (StanRTA), which consolidated Stanislaus County’s public transportation services and City of Modesto’s public transportation services into one regionalized public transportation agency. This consolidation is effective as of July 1, 2021, and has the potential to enhance transit service, reduce overall costs of service and will lead to a more “easy to use” public transportation option for residents by having more coordinated transit services in the County.
#18..
- 921 -
27 CITY OF MODESTO
TRANSPORTATION DEVELOPMENT ACT FUNDS
REQUIRED SUPPLEMENTARY INFORMATION (UNAUDITED)
SCHEDULE OF THE BUS FUND’S PROPORTIONATE SHARE
OF THE NET PENSION LIABILITY
LAST 10 YEARS*
2021 2020 2019 2018 2017 2016 2015
Miscellaneous Plan:
Bus Fund's proportion of the net pension liability 2.78969% 2.64746% 2.77420% 2.72162% 2.76335% 2.68432% 2.55465% Bus Fund's proportionate share of the net pension
liability $ 3,861,752 $ 3,423,069 $ 3,177,325 $ 3,151,106 $ 2,759,942 $ 2,149,389 $ 1,899,090 Bus Fund's covered payroll $ 1,491,188 $ 1,347,768 $ 1,381,897 $ 1,271,958 $ 1,249,245 $ 1,115,678 $ 1,127,265 Plan net pension liability as a percentage of their
covered payroll 265.64% 253.98% 242.74% 257.04% 233.94% 201.29% 168.47% Plan fiduciary net position as a percentage of the total pension liability 72.16% 73.18% 73.88% 73.17% 74.26% 79.02% 81.18% Notes to Schedule:
Changes in assumptions:
The discount rate was changed from 7.50 percent (net of administrative expense) in 2015 to 7.65% in 2016 and 7.15% in 2018. * - GASB Statement No. 68 was implemented in 2015.
#18..
- 922 -
28 CITY OF MODESTO
TRANSPORTATION DEVELOPMENT ACT FUNDS
REQUIRED SUPPLEMENTARY INFORMATION (UNAUDITED)
SCHEDULE OF THE BUS FUND’S CONTRIBUTIONS
LAST 10 YEARS*
2021 2020 2019 2018 2017 2016 2015
Miscellaneous Plan:
Contractually required contribution $ 346,108 $ 313,888 $ 281,249 $ 224,420 $ 227,290 $ 178,451 $ 143,374 Contributions in relation to the contractually
required contribution 346,108 313,888 281,249 224,420 227,290 178,451 143,374 Contribution deficiency (excess) $ - $ - $ - $ - $ - $ - $ - Bus Fund's covered-employee payroll $ 1,491,188 $ 1,347,768 $ 1,381,897 $ 1,271,958 $ 1,249,245 $ 1,115,678 $ 1,127,265 Contributions as a percentage of
covered-employee payroll 23.21% 23.29% 20.35% 17.64% 18.19% 15.99% 12.72% Notes to Schedule:
Actuarial Cost Method Entry-Age Normal
Actuarial assumptions:
Inflation 2.625%
Salary increase Varies (1)
Payroll growth 3.00% (2)
Investment rate of return 7.25%
Retirement age 2017 Experience Study (3)
Mortality 2017 Experience Study (4)
(1) Depending on age, service, and type of employment.
(2) Net of pension plan investment and administrative expenses, including inflation. (3) The probabilities of retirement are based on the 2017 CalPERS Experience Study for the period 1997 to 2015. (4) The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. Pre-retirement and post-retirement mortality rates include 5 years of projected mortality improvement using Scale AA published by the Society of Actuaries. * - GASB Statement No. 68 was implemented in 2015.
#18..
- 923 -
29 CITY OF MODESTO
TRANSPORTATION DEVELOPMENT ACT FUNDS
REQUIRED SUPPLEMENTARY INFORMATION (UNAUDITED)
SCHEDULE OF CHANGES IN THE NET OPEB LIABILITY AND RELATED RATIOS LAST 10 YEARS*
2021 2020 2019 2018
Total Net OPEB Liability
Service cost $ 12,824 $ 12,634 $ 15,007 $ 44,570
Interest on the
total OPEB liability 13,861 15,776 16,169 13,904
Differences between expected and
actual experience 26,650 - (7,290) -
Changes in assumptions 46,633 11,300 (20,352) (17,129)
Benefit Payments, including
Refunds of Employee Contributions (45,103) (46,870) (42,574) (37,857) Net change in Total OPEB Liability 54,865 (7,160) (39,040) 3,488 Total Net OPEB Liability - Beginning 411,717 418,877 457,917 454,429 Total Net OPEB Liability - Ending $ 466,582 $ 411,717 $ 418,877 $ 457,917 Bus Fund's covered-employee payroll-
Measurement Period $ 829,679 $ 791,689 $ 773,314 $ 866,613 Net OPEB liability as a percentage of
covered-employee payroll 56.24% 52.00% 54.17% 52.84%
Notes to Schedule:
Changes in assumptions:
The discount rate was changed from 2.85% to 3.58% for the measurement period ended June 30, 2017, and was changed to 3.87% for the measurement period ended June 30, 2018. The discount rate was changed from 3.50% in June 30, 2019 to 2.21% for the measurement period ended June 30, 2020. * - GASB Statement No. 75 was implemented in 2018.
#18..
- 924 -
30 CITY OF MODESTO
TRANSPORTATION DEVELOPMENT ACT FUNDS
REQUIRED SUPPLEMENTARY INFORMATION (UNAUDITED)
SCHEDULE OF CONTRIBUTIONS – OPEB PLAN
LAST 10 YEARS*
2021 2020 2019 2018
Actuarially determined contribution $ 116,203 $ 55,547 $ 42,574 $ 37,857 Contributions in relation to the
actuarially determined contribution (116,203) (55,547) (42,574) (37,857) Contribution Deficiency (Excess) $ - $ - $ - $ -
Bus Fund's covered-employee payroll-
Measurement Period $ 829,679 $ 791,689 $ 773,314 $ 866,613 Contributions as a percentage of
covered-employee payroll 14.01% 7.02% 5.51% 4.37%
Notes to Schedule:
The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2018- 2021 were as follows for June 30, 2017 through 2020 measurement date actuarial valuations.
Actuarial Cost Method Entry-Age Normal
Actuarial assumptions:
Discount Rate: 2.21% at June 30, 2020. 3.5% for TOL as of June 30, 201;
3.87% for TOL as of June 30, 2018; 3.58% for TOL as of June 30, 2017
Asset Valuation Method: Market Value of Assets
Inflation: 2.5% Annually
Salary Increases: Aggregate – 3% annually. Merit – CalPERS 1997-2015 Experience Study
Trend: Medical: Graded from 5.8% to ultimate 4.0% in 2076 Mortality: CalPERS 1997-2015 Experience Study
Mortality Improvement: MacLeod Watts Scale 2020 applied generationally from 2015 * - GASB Statement No. 75 was implemented in 2018.
#18..
- 925 -
7473 N. INGRAM AVE., SUITE 102 ⬧ FRESNO, CA 93711
_______________________________________________________________________________________________ P (559) 412-7576 ⬧ F (559) 493-5325 ⬧ WWW.HHCCPAS.COM
INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE
AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH
GOVERNMENT AUDITING STANDARDS AND THE TRANSPORTATION DEVELOPMENT ACT Honorable Members of the City Council
City of Modesto, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the Local Transportation Special Revenue Funds and the Bus Enterprise Fund (collectively known as the Transportation Development Act Funds) of the City of Modesto, California (the City), as of and for the year ended June 30, 2021 and the related notes to the financial statements, and have issued our report thereon dated November 24, 2021.
Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting as it relates to the Transportation Development Act Funds (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or, significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City’s Transportation Development Act Funds financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, including the applicable statutes, rules and regulations of the Transportation Development Act and the allocation instructions and resolutions of the Stanislaus Council of Governments as required by Sections 6666 and 6667 of Title 21, Division 3, Chapter 2, Article 5.5 of the California Code of Regulations, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards or the Transportation Development Act.
#18..
- 926 -
32 Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards and the Transportation Development Act in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.
HUDSON HENDERSON & COMPANY, INC.
Fresno, California
November 24, 2021
#18..
- 927 -
7473 N. INGRAM AVE., SUITE 102 ⬧ FRESNO, CA 93711
_______________________________________________________________________________________________ P (559) 412-7576 ⬧ F (559) 493-5325 ⬧ WWW.HHCCPAS.COM
INDEPENDENT ACCOUNTANTS’ REPORT ON COMPLIANCE WITH THE PUBLIC TRANSPORTATION
MODERNIZATION, IMPROVEMENT, AND SERVICE ENHANCEMENT ACCOUNT (PTMISEA) Honorable Members of the City Council
City of Modesto, California
We have examined the City of Modesto’s (the City) compliance with the verification of receipt and appropriate expenditure of bond funds per the Public Transportation Modernization, Improvement, and Service Enhancement Account (PTMISEA) guidelines during the year ended June 30, 2021. Management is responsible for the City’s compliance with the specified requirements. Our responsibility is to express an opinion on the City’s compliance with the specified requirements based on our examination.
Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. Those standards require that we plan and perform the examination to obtain reasonable assurance about whether the City complied, in all material respects, with the specified requirements referenced above. An examination involves performing procedures to obtain evidence about whether the City complied with the specified requirements. The nature, timing, and extent of the procedures selected depend on our judgment, including an assessment of the risks of material noncompliance, whether due to fraud or error. We believe that the evidence we obtained is sufficient and appropriate to provide a reasonable basis for our opinion.
Our examination does not provide a legal determination on the City’s compliance with specified requirements.
In our opinion, the City complied, in all material respects, with the aforementioned requirements during the year ended June 30, 2021.
HUDSON HENDERSON & COMPANY, INC.
Fresno, California
November 24, 2021
#18..
- 928 -
CITY OF MODESTONATIONAL TRANSIT DATABASE REPORT
INDEPENDENT ACCOUNTANTS’ REPORT
ON
FEDERAL FUNDING ALLOCATION STATISTICS
FOR THE YEAR ENDED
JUNE 30, 2021
#18..
- 929 -
7473 N. INGRAM AVE., SUITE 102 ⬧ FRESNO, CA 93711
_______________________________________________________________________________________________ P (559) 412-7576 ⬧ F (559) 493-5325 ⬧ WWW.HHCCPAS.COM
INDEPENDENT ACCOUNTANTS’ REPORT
To the City Council of the City of Modesto
and the Board of Trustees of the Modesto Area Express
Modesto, California
The Federal Transit Administration (the FTA) has established the following standards with regard to the data reported to it in the Federal Funding Allocation Statistics form of the City of Modesto’s annual National Transit Database (NTD) report:
• A system is in place and maintained for recording data in accordance with NTD definitions. The correct data are being measured and no systematic errors exist. • A system is in place to record data on a continuing basis, and the data gathering is an ongoing effort. • Source documents are available to support the reported data and are maintained for FTA review and audit for a minimum of three years following FTA’s receipt of the NTD report. The data are fully documented and securely stored.
• A system of internal controls is in place to ensure the data collection process is accurate and that the recording system and reported comments are not altered. Documents are reviewed and signed by a supervisor, as required.
• The data collection methods are those suggested by FTA or otherwise meet FTA requirements. • The deadhead miles, computed as the difference between the reported total actual vehicle miles data and the reported total actual VRM data, appear to be accurate. • Data are consistent with prior reporting periods and other facts known about transit agency operations.
We have applied the procedures to the data contained in the accompanying FFA-10 forms for the fiscal year ending June 30, 2021. Such procedures, which were agreed to and specified by FTA in the Declarations section of the 2021 NTD Policy Manual and were agreed to by the City of Modesto, were applied to assist you in evaluating whether the transit agency complied with the standards described in the first paragraph of this part and that the information included in the NTD report Federal Funding Allocation Statistics form for the fiscal year ending June 30, 2021 is presented in conformity with the requirements of the Uniform System of Accounts (USOA) and Records and Reporting System; Final Rule, as specified in 49 CFR Part 630, Federal Register, dated January 15, 1993, and as presented in the 2021 NTD Policy Manual. This report is intended solely for your information and for the FTA and should not be used by those who did not participate in determining the procedures.
The procedures were applied separately to each of the information systems used to develop the reported actual VRM, FG DRM, PMT, and OE of the Modesto Area Express for the fiscal year ending June 30, 2021 for the following mode:
• Demand Response Service- Purchased Transportation
• Motor Bus Service- Purchased Transportation
• Demand Taxi- Purchased Transportation
#18..
- 930 -
2 Finding: In our procedures performed we noted that the annual total Unlinked Passenger Trips per the Federal Funding Allocation Statistics (FFA-10) DR PT report did not match the Annual Total Passengers per the Form 406B Annual Report to FTA. Per discussion with management the difference was caused by a new individual in charge of completing the Form 406B who mistakenly excluded some passengers from the Annual Total Passengers on the Form 406B. Management then revised the Form 406B and the Annual Total Passengers on the revised Form 406B matched the total Unlinked Passenger Trips per the Federal Funding Allocation Statistics (FFA-10) DR PT without exception.
No other information or findings were noted in our procedures performed that require communication in accordance with the requirements of the Uniform System of Accounts (USOA) and Records and Reporting System; Final Rule, as specified in 49 CFR Part 630, Federal Register, dated January 15, 1993, and as presented in the 2021 NTD Policy Manual.
In performing the procedures, the information included in the NTD report on the Federal Funding Allocation Statistics form for the fiscal year ending June 30, 2021 is presented fairly, in all material respects, with the requirements of the USOA and Records and Reporting System; Final Rule, as specified in 49 CFR Part 630, Federal Register, dated January 15, 1993, and as presented in the 2021 NTD Policy Manual.
HUDSON HENDERSON & COMPANY, INC.
Fresno, California
November 24, 2021
#18..
- 931 -
AUDIT PRESENTATION TO THE
CITY OF MODESTO
June 30, 2021 Audit Results &
Required Communications
Audit Committee, January 20, 2022
Presented by:
Brian Henderson, CPA, Partner
Hudson Henderson & Company, Inc.
#18..
- 932 -
Agenda
• Introduction
• Required Communications
• Audit Results & Overview of Findings
• City ACFR & Smaller audits
• Single Audit
• PFC Audit
• Measure L
• Closing
#18..
- 933 -
INTRODUCTION
#18..
- 934 -
Introduction
• Audits are conducted under the following standards:
• Generally Accepted Auditing Standards
• Governmental Auditing Standards (Yellow Book)
• Uniform Guidance (Single Audit)
• Passenger Facility Charge Program Compliance
• PFC Audit
• Transportation Development Act Compliance
• TDA audit
#18..
- 935 -
Introduction (continued)
• Our Responsibility:
• Issue an Opinion: Provide reasonable assurance that the financial statements are presented in all material respects (free of material misstatement)
• Does not address the financial condition of the City
• Purpose of the audit is not to detect fraud. We cannot take responsibility for finding fraud, if it existed • Consider internal control over financial reporting for the purpose of expressing our opinion on the financial statements, but not for expressing an opinion on the effectiveness of internal control • Perform tests of the City’s compliance with certain provisions of law, regulations, contracts and grant agreements, with which could have a material effect on the financial statements, but not for the purpose of expressing an opinion on compliance with these provisions #18..
- 936 -
Introduction (continued)
• City’s Responsibility:
• Preparation and fair presentation of the financial statements • Accurate and complete in accordance with accounting principles generally accepted in the United States of America
• Maintain effective internal controls
• Design, implementation and maintenance relevant to the fair presentation of the financial statements free from material misstatement, whether due to fraud or error #18..
- 937 -
REQUIRED COMMUNICATIONS
#18..
- 938 -
Required Communications
• Sensitive estimates affecting the financial statements • ACFR: Pension Liability and OPEB Liability
• FS Disclosures are neutral, consistent with PY and clear • No significant difficulties encountered in performing the audit • All misstatements noted during the audit corrected by mgmt. • No major disagreements with management
• We obtained representations from management (dated in conjunction with various audit issuance dates) • We are unaware of any management consultations with other independent accountants #18..
- 939 -
Required Communications (continued)
• Audit Procedures
• Audit testing and fieldwork (Mix of remote and limited in-office in CY due to COVID) • Interim in June 2 weeks
• Final in Sep 1 week and Oct 2 Weeks
• Testing included Risk Based Audit Approach, which includes test of controls over significant accounting transaction cycles (no findings noted).
• Cash Disbursements (including approvals, contracts, contract limits, and purchase orders) • Cash Receipts (including recording, reconciling, review and approval) • Utility Billing (including recording, reconciling, review and approval) • Payroll (including initiation, approval, timesheet review, recording and reconciliation) #18..
- 940 -
Required Communications (continued)
• Risk Based Audit Approach also includes additional testing possible areas of fraud, abuse and areas of concern. • Employee Reimbursements (15 random selections) (no findings noted) • Highly Compensated Employees (Top 3 employees) (traced out to W2, random pay period selections) (no findings noted)
• Amazon purchases and order limits (Review of Amazon limits, controls over purchasing, random testing of Amazon purchases) (no findings noted)
• Completed audit reports and financials in Oct/Nov/Dec #18..
- 941 -
CITY ACFR & SMALLER
AUDITS
June 30, 2021
#18..
- 942 -
City ACFR & Smaller Audits
• Audit Reports- Unmodified Opinion
• City ACFR: 12/10/21 (Yellow Book)
• AVA: 10/15/21 (Yellow Book and AVA Program Handbook)
• CFD’s: All 12 10/19/21 (Yellow Book)
• GANN Annual Appropriations AUP: 10/1/21: No findings per procedures performed • Ceres-Modesto Fire Protection Agency: 10/5/21 (Yellow Book) • TRRP: 10/29/21 (Yellow Book)
• TDA: 11/21/21 (Yellow Book, TDA & PTMISEA Compliance) • Federal Funding Allocation Data (NTF Forms) (Transit Figures): 11/24/21: No findings per procedures performed
#18..
- 943 -
City ACFR & Smaller Audits (continued)
• Current Year Findings
• TRRP
• Significant Deficiency: Accounts Payable: Material adjustment for expenditures incurred not properly accrued as of year-end.
• Significant Deficiency: Accounts Receivable/Revenue: Material adjustments for revenues/receivable not properly accrued as of year-end. #18..
- 944 -
City ACFR & Smaller Audits (continued)
• Follow Up on Prior Year Findings
• ACFR
• Significant Deficiency: Accounts Payable: Material adjustment for expenditures incurred not properly accrued as of year-end. Implemented
#18..
- 945 -
PASSENGER FACILITY CHARGE
PROGRAM (PFC)
June 30, 2021
#18..
- 946 -
PFC Audit
• Audit Report- Unmodified Opinion
• Issued Audit Report in accordance with Governmental Auditing Standards (Internal Control and Compliance) and PFC Program Compliance Requirements 10/1/2021- unmodified opinion (no significant deficiencies, material weaknesses or instances of noncompliance) • Note: Final year of PFC Audit- closed out during FY21 #18..
- 947 -
MEASURE L AUDIT
June 30, 2021
#18..
- 948 -
Measure L Audit
• Hired by StanCOG Policy Board to audit all Measure L Agencies, including the City of Modesto • Audit Report- Unmodified Opinion
• Issued Audit Report in accordance with Governmental Auditing Standards and Measure L Compliance (Internal Control and Compliance) 11/5/2021- unmodified opinion (no significant deficiencies, material weaknesses or instances of noncompliance) • Measure L Compliance
• Expenditures
• Level of Effort
• Reporting
• Admin Limit
#18..
- 949 -
Measure L Audit (continued)
• Measure L Fund Financial Update
• Ending Net Position: $22,452,320
• Increase in Net Position: $6,565,588
• 2021 Revenue: $13,578,141
• 2021 Expenses: $7,017,056
• Budget: Expenses under budget by $2,920,030
#18..
- 950 -
CLOSING
June 30, 2021
#18..
- 951 -
Questions???
Contact Information
Brian Henderson, CPA
[email protected]
7473 N. Ingram Ave., Suite 102
Fresno, CA 93711
559-412-7576
#18..
- 952 -
#18..
- 953 -
CITY OF MODESTO
COUNCIL AGENDA REPORT
DATE OF MEETING:
March 8, 2022
Date: January 20, 2022
TO: Mayor and City Council
THROUGH: Joseph P. Lopez, City Manager
FROM: DeAnna Christensen, Director of Finance
SUBJECT: Fiscal Year 2020-2021 Auditor’s Report on Compliance of the Measure L: Local Roads First Transportation Funding Measure
CONTACT: Maria Garnica, Accounting Manager, [email protected], 209-577-5249 DESCRIPTION:
Consider approving the Auditors’ Reports and Schedule of Measure L Program Revenues and Expenditures for Fiscal Year Ended June 30, 2021. (Funding Source: Not Applicable) STRATEGIC PLAN ELEMENT:
This item supports the City of Modesto 2020-2025 Strategic Plan focus of Governance and Service Delivery under Goal H: Achieve Financial Sustainability.
BACKGROUND:
In November of 2016 the voters of Stanislaus County approved the county wide, 25-year, halfcent sales tax increase known as Measure L. As part of the safeguards built into the expenditure plan an annual independent audit and annual reporting must be completed. On page 8 of the expenditure plan, the ordinance states “Annual fiscal and compliance audits will be conducted by a CPA, to assure that the revenues expended are necessary and reasonable.” The ordinance also requires an audit annually to ensure that administrative expenses were no more than 1% of revenues expended and that the jurisdiction meets its maintenance of effort.
On December 12, 2017, per Resolution 2017-505, Council approved the Measure L master funding agreement with the Stanislaus Council of Governments (StanCOG). The agreement states in Article II: Funding Prerequisites and Requirement that the recipient shall annually submit to StanCOG, “An annual independent audit of all of recipients Measure L accounts which audit shall be conducted at recipients sole cost and expense.” For the audit related to FY 2020-2021, the City received information from StanCOG that they would be continuing to conduct the annual audit and that it would be at the expense of StanCOG as part of the 1% allowable administrative expenses within the Measure L ordinance. #19..
- 954 -
City Council, March 8, 2022
Fiscal Year 2020-2021 Measure L Auditor’s Report
The accounting firm of Hudson Henderson & Company, Inc., as selected by StanCOG conducted the Fiscal Year 2020-2021 audit report.
DISCUSSION:
As part of the City’s Fiscal Year 2020-2021 Measure L Program Audit, the accounting firm verified the revenues and expenditures, fund balances, and that the Maintenance of Effort requirement was met.
In order to accomplish the audit, the City provided the following information to the firm:
Payment receipts for all cash received from StanCOG;
Detail of all payroll charges and expenditures supporting documentation; Copies of completed monthly reports submitted to StanCOG; Revenue and Expenditure General Ledger detail and the trial balance for all Measure L funds;
Copy of the certification for the maintenance of effort; List of all Measure L projects and a copy of the Strategic Plan After all information was provided, staff worked closely with the firm to ensure that any requested documents and questions asked were addressed in a timely manner.
On November 5, 2021, Hudson Henderson & Company, Inc. issued the final independent auditor’s report of the Measure L program for the fiscal year ending in June 30, 2021. In addition, on November 5, 2021 the firm issued a letter to the Policy Board of Stanislaus Council of Governments with the final report. Both the final report and the letter to StanCOG did not have any findings for the year ending June 30, 2021.
FISCAL IMPACT:
While the information contained in this report discloses the financial performance for the City, there is no direct fiscal impact.
COMMITTEE RECOMMENDATION:
This item was considered by the Audit Committee on January 20, 2022 and recommended forwarding to Council for approval.
RECOMMENDED COUNCIL ACTION:
Staff Recommendations:
Resolution approving the Fiscal Year 2020-2021 Auditor’s Report on Compliance of the Measure L: Local Roads First Transportation Funding Measure.
Approved by:
DeAnna Christensen, Director of Finance
Joseph P. Lopez, City Manager
#19..
- 955 -
City Council, March 8, 2022
Fiscal Year 2020-2021 Measure L Auditor’s Report
Attachment:
1. Resolution
2. Independent Auditors’ Reports and Schedule of Measure L Revenues and Expenditures for Fiscal Year Ended June 30, 2021.
3. Letter to the Policy Board of Stanislaus Council of Governments #19..
- 956 -
MODESTO CITY COUNCIL
RESOLUTION NO. 2022-
RESOLUTION APPROVING THE FISCAL YEAR 2020-2021 AUDITOR’S REPORT ON COMPLIANCE OF THE MEASURE L: LOCAL ROADS FIRST
TRANSPORTATION FUNDING MEASURE
WHEREAS, in November of 2016 the voters of Stanislaus County approved the county wide, 25-year, half-cent sales tax increase for the Local Roads First Transportation Funding Measure, known as Measure L. As part of the safe guards built into the expenditure plan an annual independent audit and annual reporting must be completed, and
WHEREAS, on December 12, 2017, per Resolution 2017-505, Council approved the Measure L master funding agreement with the Stanislaus Council of Governments (StanCOG) which requires an annual independent audit of all of recipients Measure L accounts which audit shall be conducted at recipient’s sole cost and expense, and WHEREAS, for the audit related to FY 2020-2021 the City received information from StanCOG that they would be continuing to conduct the annual audit and that it would be at the expense of StanCOG as part of the 1% allowable administrative expenses within the Measure L ordinance, and
WHEREAS, the accounting firm of Hudson Henderson & Company, Inc., was selected by StanCOG to conduct the Fiscal Year 2020-2021 audit report, and WHEREAS, as part of the City’s Fiscal Year 2020-2021 Measure L Program Audit, the accounting firm verified the revenues and expenditures, fund balances, and that the Maintenance of Effort requirement was met, and WHEREAS, Hudson Henderson & Company, Inc. issued the final independent auditor’s report of the Measure L program for the fiscal year ending in June 30, 2021. In #19..
- 957 -
addition, the firm issued a letter to the Policy Board of Stanislaus Council of Governments with the final report. Both the final report and the letter to StanCOG did not have any findings for the year ending June 30, 2021.
NOW, THEREFORE, BE IT RESOLVED, by the Council of the City of Modesto that it hereby approves the Fiscal Year 2020-2021 Auditor’s Report on Compliance of the Measure L: Local Roads First Transportation Funding Measure.
The foregoing resolution was introduced at a regular meeting of the Council of the City of Modesto held on the 8th day of March, 2022, by Councilmember ?, who moved its adoption, which motion being duly seconded by Councilmember ?, was upon roll call carried and the resolution adopted by the following vote:
AYES: Councilmembers: ?
NOES: Councilmembers: ?
ABSENT: Councilmembers: ?
ATTEST: ____________________________
DANA SANCHEZ, Interim City Clerk
(SEAL)
APPROVED AS TO FORM:
BY: ____________________________________
JOSE M. SANCHEZ, City Attorney
#19..
- 958 -
STANISLAUS COUNCIL OF GOVERNMENTS
MEASURE L – CITY OF MODESTO
ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED
JUNE 30, 2021
#19..
- 959 -
TABLE OF CONTENTS
Page
Independent Auditors’ Report.......................................................................................................................... 1 Financial Statements:
Government-Wide Financial Statements:
Statement of Net Position................................................................................................................... 3 Statement of Activities........................................................................................................................ 4 Fund Financial Statements:
Balance Sheet- Governmental Fund.................................................................................................... 5 Statement of Revenues, Expenditures and Changes in
Fund Balance- Governmental Fund................................................................................................... 6 Statement of Revenues, Expenditures and Changes in Fund Balance- Budget to Actual (GAAP)- Special Revenue Fund .............................................................................. 7 Notes to Financial Statements........................................................................................................................... 8 Independent Auditors’ Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards and the Measure L Program........................................................................ 13 Supplemental Schedule:
Schedule of Expenditures by Project............................................................................................................ 15 #19..
- 960 -
7473 N. INGRAM AVE., SUITE 102 ⬧ FRESNO, CA 93711
_______________________________________________________________________________________________ P (559) 412-7576 ⬧ F (559) 493-5325 ⬧ WWW.HHCCPAS.COM
INDEPENDENT AUDITORS’ REPORT
To the Policy Board
Stanislaus Council of Governments
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities and major fund of the Measure L Fund of the City of Modesto, California (the Measure L Fund), pertaining to certain provisions of Measure L: Local Road First Transportation Funding Measure (the Measure L Program), issued by the Stanislaus Council of Governments acting as the Stanislaus County Transportation Authority as of and for the year ended June 30, 2021, the budgetary comparison schedule for the special revenue fund and the related notes to the financial statements, which collectively comprise the financial statements as listed in the table of contents.
Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
Auditors’ Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities and major fund of the Measure L Fund, as of June 30, 2021, and the respective changes in financial position and budgetary comparison for the special revenue fund for the year then ended in accordance with accounting principles generally accepted in the United States of America. #19..
- 961 -
2 Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis be presented to supplement the financial statements. Management has omitted such information. Such information, although not a part of the financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the financial statements in an appropriate operational, economic, or historical context. Our opinion on the financial statements is not affected by this missing information.
Other Information
The schedule of expenditures by project (supplemental schedule) is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. Such information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the supplemental schedule is fairly stated in all material respects in relation to the financial statements as a whole.
Emphasis-of-Matters
As discussed in Note 1 to the financial statements, the financial statements present only the Measure L Fund referred to above and are not intended to present the financial position of the City of Modesto as a whole and the respective changes in financial position, or where applicable, its cash flows for the year then ended, in accordance with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter.
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated November 5, 2021, on our consideration of the Measure L Fund’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance.
That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Measure L Fund’s internal control over financial reporting and compliance.
HUDSON HENDERSON & COMPANY, INC.
Fresno, California
November 5, 2021
#19..
- 962 -
The accompanying notes are an integral part of the financial statements. 3 STANISLAUS COUNCIL OF GOVERNMENTS
MEASURE L - CITY OF MODESTO
STATEMENT OF NET POSITION
JUNE 30, 2021
Governmental
Activities
ASSETS
Cash and investments $ 18,039,837
Accounts receivable 3,987,875
Advances to city funds 471,416
Total Assets 22,499,128
LIABILITIES
Accounts payable 46,808
Total Liabilities 46,808
NET POSITION
Restricted 22,452,320
Total Net Position $ 22,452,320
#19..
- 963 -
The accompanying notes are an integral part of the financial statements. 4 STANISLAUS COUNCIL OF GOVERNMENTS
MEASURE L - CITY OF MODESTO
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2021
Net (Expense)
and Revenue
Program and Changes
in Net Position
Capital Grants
and Governmental
Functions/Programs Expenses Contributions Activities
Governmental Activities:
Public ways and facilities $ 7,017,056 $ 13,574,935 $ 6,557,879 Totals $ 7,017,056 $ 13,574,935 6,557,879
General Revenues:
Investment earnings 7,709
Total General Revenues 7,709
6,565,588
Net Position, Beginning of Year 15,898,704
Prior Period Adjustment (11,972)
Net Position, End of Year $ 22,452,320
Revenues
Change in Net Position
#19..
- 964 -
The accompanying notes are an integral part of the financial statements. 5 STANISLAUS COUNCIL OF GOVERNMENTS
MEASURE L - CITY OF MODESTO
BALANCE SHEET
GOVERNMENTAL FUND
JUNE 30, 2021
ASSETS
Cash and investments $ 18,039,837
Accounts receivable 3,987,875
Advances to city funds 471,416
Total Assets $ 22,499,128
LIABILITIES
Accounts payable $ 46,808
Total Liabilities 46,808
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue 4,503
Total Deferred Inflows of Resources 4,503
FUND BALANCE
Restricted 22,447,817
Total Fund Balance 22,447,817
Total Liabilities, Deferred Inflows of Resources, and Fund Balance $ 22,499,128 Reconciliation of the Balance Sheet of the Governmental Fund to the Statement of Net Position:
Total Fund Balance - Governmental Fund $ 22,447,817
Adjustments to the Balance Sheet of the Governmental Fund to reconcile with the Statement of Net Position:
Revenues not available for current-period expenditures are deferred in governmental funds, but are considered earned in the Statement of Net Position. 4,503
Total Net Position - Governmental Activities $ 22,452,320 #19..
- 965 -
The accompanying notes are an integral part of the financial statements. 6 STANISLAUS COUNCIL OF GOVERNMENTS
MEASURE L - CITY OF MODESTO
STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
GOVERNMENTAL FUND
FOR THE YEAR ENDED JUNE 30, 2021
REVENUES
Measure L funds $ 13,570,432
Investment earnings 7,709
Total Revenues 13,578,141
EXPENDITURES
Public ways and facilities 7,017,056
Total Expenditures 7,017,056
Net Change in Fund Balance 6,561,085
Fund Balance, Beginning of Year 15,898,704
Prior Period Adjustment (11,972)
Fund Balance, End of Year $ 22,447,817
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balance of the Governmental Fund to the Statement of Activities:
Net change in Fund Balance - Governmental Fund $ 6,561,085 Adjustments to the Statement of Revenues, Expenditures and Changes in Fund Balance of the Governmental Fund to reconcile with the Statement of Activities:
Revenues that are considered earned in the Statement of Activities that did not provide current financial resources in the current year were not reported as revenues in the governmental funds. 4,503 Change in Net Position - Governmental Activities $ 6,565,588 #19..
- 966 -
The accompanying notes are an integral part of the financial statements. 7 STANISLAUS COUNCIL OF GOVERNMENTS
MEASURE L - CITY OF MODESTO
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE- BUDGET TO ACTUAL (GAAP)-
SPECIAL REVENUE FUND
FOR THE YEAR ENDED JUNE 30, 2021
Actual Variance with
Original Final (GAAP Basis) Final Budget
RESOURCES (INFLOWS)
Measure L funds $ 9,366,639 $ 13,558,189 $ 13,570,432 $ 12,243 Investment earnings - - 7,709 7,709
Total Resources (Inflows) 9,366,639 13,558,189 13,578,141 19,952
CHARGES TO
APPROPRIATIONS (OUTFLOWS)
Streets and roads 7,688,152 7,688,152 6,175,527 1,512,625 Bike and pedestrian 759,184 759,184 267,510 491,674
Transit services 475,000 475,000 - 475,000
Traffic management 1,014,750 1,014,750 574,019 440,731
Total Charges to
Appropriations (Outflows) 9,937,086 9,937,086 7,017,056 2,920,030 Net Change in Fund Balance $ (570,447) $ 3,621,103 6,561,085 $ 2,939,982 Fund Balance, Beginning of Year 15,898,704
Prior Period Adjustment (11,972)
Fund Balance, End of Year $ 22,447,817
Budgeted Amounts
#19..
- 967 -
STANISLAUS COUNCIL OF GOVERNMENTS
MEASURE L - CITY OF MODESTO
NOTES TO FINANCIAL STATEMENTS
8 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accompanying financial statements present only the City of Modesto’s Measure L Fund and are not intended to present fairly the financial position, changes in financial position, or cash flows of the City of Modesto, California (the City) as a whole in accordance with accounting principles generally accepted in the United States of America.
Reporting Entity: The City of Modesto’s Measure L Fund (the Measure L Fund), is a special revenue fund of the City.
Stanislaus Council of Governments (StanCOG) is the regional transportation planning agency and the metropolitan planning organization of Stanislaus County, which oversees the Measure L Initiative. Measure L provides for the implementation of the Expenditure Plan as approved and adopted by StanCOG, which provides funding for countywide local street and road improvements, arterial street widening, signalization, pedestrian, bicyclist and driver safety improvements. These needed improvements are funded by Measure L, the one-half of one percent retail transactions and use tax established for a twenty-five-year period, April 1, 2017 – March 31, 2042. The revenues will be deposited in a special fund, used solely for the transportation projects, improvements and programs described in the Expenditure Plan which is considered a part of Ordinance, and incorporated into Measure L Policies and Procedures.
The City’s Department of Public Works and Planning staff provides the necessary services such as maintenance and accounting to the Measure L Fund on a reimbursement basis with no allocation of payroll expenses.
Measurement Focus, Basis of Accounting and Financial Statement Presentation:
The government-wide financial statements (i.e., the Statement of Net Position and the Statement of Activities) report information on all of the Measure L fund activities. The Statement of Activities demonstrates the degree to which the direct expenses of a given function are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function. Taxes and other items not properly included among program revenues are reported as general revenues.
Separate financial statements are provided for governmental funds. Major individual governmental funds are reported as separate columns in the fund financial statements. • Government-Wide Financial Statements
The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements are met.
• Governmental Fund Financial Statements
Governmental fund financial statements (i.e., Balance Sheet and Statement of Revenues, Expenditures and Changes in Fund Balance) are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. Revenues susceptible to accrual are property taxes, interest on investments, and intergovernmental revenues. Property taxes are recorded as revenues in the fiscal year in which they are levied, provided they are collected in the current period or within sixty days thereafter. A one-year availability period is used for all other revenues. Interest on invested funds is recognized when earned. Intergovernmental revenues that are reimbursements for specific expenditures are recognized when all eligibility requirements are met. Expenditures generally are recorded when a liability is incurred, as under accrual accounting; however, debt service expenditures are recorded only when payment is due.
#19..
- 968 -
STANISLAUS COUNCIL OF GOVERNMENTS
MEASURE L - CITY OF MODESTO
NOTES TO FINANCIAL STATEMENTS (continued)
9 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Measurement Focus, Basis of Accounting and Financial Statement Presentation (continued):
Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government’s near-term financing decisions. Both the governmental fund Balance Sheet and the governmental fund Statement of Revenues, Expenditures and Changes in Fund Balance provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.
The Measure L Fund reports one major governmental fund:
The Special Revenue Fund is the primary operating fund and accounts for all financial resources of the Measure L Fund of the City.
The City adopts annual appropriated budgets for its special revenue fund, which is a major fund. Budgetary comparison schedules have been provided for this fund to demonstrate compliance with the budgets.
Cash and Investments: In order to maximize the flexibility of its investment program and to aid in cash budgeting, the City pools the cash of all funds, except for monies deposited with fiscal agents in accordance with related bond indentures. The cash and investments balance in each fund represents that fund’s equity share of the City’s cash and investment pool, as the City places no restrictions on the deposit account for the participating funds.
Interest income earned on pooled cash and investments is allocated quarterly. Interest income on restricted cash and investments with fiscal agents is credited directly to the related fund.
Accounts Receivable: The Measure L Fund utilizes the allowance method of accounting for and reporting uncollectible or doubtful accounts. At June 30, 2021, management considered all accounts to be fully collectible and, therefore, no allowance was recorded in the accompanying financial statements.
Advances To City Funds: Balances representing lending transactions between the Measure L Program and the City of Modesto outstanding at the end of the fiscal year are reported as advances to city funds. These balances represent non-current portions of lending transactions expected to be fully collectible.
Accounts Payable: Certain costs are incurred by the Fund during the current reporting period but are not paid until after the beginning of the next fiscal period. These costs are reported as accounts payable in the financial statements.
The Measure L Fund current accounts payable balance is $46,808 as of June 30, 2021.
Net Position: Net position represents the residual interest of all assets after liabilities are deducted. In accordance with GASB Statement No. 34, the fund equity section on the Statement of Net Position was combined to report total net position and present it in three broad components: net investment in capital assets, restricted, and unrestricted.
Net position, net investment in capital assets, includes capital assets net of accumulated depreciation and outstanding principal balances of debt attributable to the acquisition, construction, or improvement of those assets.
Net position is restricted when constraints are imposed by third parties or by law through constitutional provisions or enabling legislation. All other net position is unrestricted. The Measure L Fund’s policy is to first apply restricted resources when an expense is incurred for purposes for which both restricted and unrestricted net position is available.
Management’s Use of Estimates: The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates.
#19..
- 969 -
STANISLAUS COUNCIL OF GOVERNMENTS
MEASURE L - CITY OF MODESTO
NOTES TO FINANCIAL STATEMENTS (continued)
10 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Deferred Outflows and Inflows of Resources: Pursuant to GASB Statement No. 63, Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position, and GASB Statement No. 65, Items Previously Reported as Assets and Liabilities, the Measure L Fund recognizes deferred outflows and inflows of resources.
In addition to assets, the Statements of Net Position will sometimes report a separate section for deferred outflows of resources. A deferred outflow of resources is defined as a consumption of net position by the Measure L Fund that is applicable to a future reporting period.
In addition to liabilities, the Statements of Net Position will sometimes report a separate section for deferred inflows of resources. A deferred inflow of resources is defined as an acquisition of net position by the Measure L Fund that is applicable to a future reporting period. Deferred inflows of resources reported by the Measure L Fund consist of intergovernmental revenues earned, but not yet received.
Fund Balance: In the fund financial statements, in accordance with GASB Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions, governmental funds report fund balance as nonspendable, restricted, committed, assigned or unassigned based primarily on the extent to which the Measure L Fund is bound to honor constraints on how specific amounts can be spent.
• Nonspendable – Amounts that are not in spendable form (such as inventory) or are required to be maintained intact. The Measure L Fund did not have any nonspendable resources as of June 30, 2021. • Restricted – Amounts constrained to specific purposes by their providers (such as grantors, bondholders, and higher levels of government), through constitutional provisions, or by enabling legislation. The Measure L Fund considers all of its resources to be restricted. • Committed – Amounts constrained to specific purposes by the Measure L Fund itself, using its highest level of decision-making authority (City Council). To be reported as committed, amounts cannot be used for any other purpose unless the City Council takes the same highest-level action to remove or change the constraint. The Measure L Fund did not have any committed resources as of June 30, 2021. • Assigned – Amounts the Measure L Fund intends to use for a specific purpose. Intent can be expressed by the Measure L Fund or by an official or body to which the City Council delegates the authority. The Measure L Fund did not have any assigned resources as of June 30, 2021. • Unassigned – Amounts that are available for any purpose. The Measure L Fund did not have any unassigned resources as of June 30, 2021.
The Measure L Fund establishes and modifies or rescinds fund balance commitments by passage of an ordinance or policy. This is typically done through adoption and amendment of the budget. A fund balance commitment is further indicated in the budget as a designation or commitment of the fund, such as approved contracts. Assigned fund balance is established by the Measure L Fund through adoption or amendment of the budget or future year budget plan as intended for a specific purpose. The Measure L Fund’s policy is to first apply restricted, committed or assigned resources when an expense is incurred for purposes for which both restricted, committed or assigned and unassigned fund balance is available.
Governmental Accounting Standards Update: During the year ending June 30, 2021, the Measure L Fund implemented the following standards with no financial impact:
GASB Statement No. 84 – Fiduciary Activities. The requirements of this statement are effective for reporting periods beginning after December 15, 2018. Subsequent to issuance, GASB Statement No. 95 postponed the requirements of this statement to reporting periods beginning after December 15, 2019. #19..
- 970 -
STANISLAUS COUNCIL OF GOVERNMENTS
MEASURE L - CITY OF MODESTO
NOTES TO FINANCIAL STATEMENTS (continued)
11 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) GASB Statement No. 89 – Accounting for Interest Cost Incurred before the End of a Construction Period. The requirements of this statement are effective for reporting periods beginning after December 15, 2019. Subsequent to issuance, GASB Statement No. 95 postponed the requirements of this statement to reporting periods beginning after December 15, 2020.
GASB Statement No. 90 – Majority Equity Interests- an amendment of GASB Statements No. 14 and No 61. The requirements of this statement are effective for reporting periods beginning after December 15, 2018. Subsequent to issuance, GASB Statement No. 95 postponed the requirements of this statement to reporting periods beginning after December 15, 2019.
Released GASB Statements to be implemented in future financial statements are as follows:
GASB Statement No. 87 – Leases. The requirements of this statement are effective for reporting periods beginning after December 15, 2019. Subsequent to issuance, GASB Statement No. 95 postponed the requirements of this statement to reporting periods beginning after June 15, 2021.
GASB Statement No. 91 – Conduit Debt Obligations. The requirements of this statement are effective for reporting periods beginning after December 15, 2020. Subsequent to issuance, GASB Statement No. 95 postponed the requirements of this statement to reporting periods beginning after December 15, 2021.
GASB Statement No. 92 – Omnibus 2020. The requirements of this statement are effective for reporting periods beginning after June 15, 2020. Subsequent to issuance, GASB Statement No. 95 postponed the requirements of this statement to June 15, 2021.
GASB Statement No. 93 – Replacement of Interbank Offered Rates. The requirements of this statement are effective for reporting periods beginning after June 15, 2021. Subsequent to issuance, GASB Statement No. 95 postponed the certain requirements of this statement to reporting periods beginning after June 15, 2022.
GASB Statement No. 94 – Public-Private and Public-Public Partnerships and Availability Payment Arrangements. The requirements of this statement are effective for reporting periods beginning after June 15, 2022.
GASB Statement No. 96 – Subscription-Based Information Technology Arrangements. The requirements of this statement are effective for reporting periods beginning after June 15, 2022 GASB Statement No. 97 – Certain Component Unit Criteria, and Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans. The requirements of this statement are effective for reporting periods beginning after June 15, 2021
Subsequent Events: In compliance with accounting standards, management has evaluated events that have occurred after year-end to determine if these events are required to be disclosed in the financial statements.
Management has determined that no events require disclosure in accordance with accounting standards. These subsequent events have been evaluated through November 5, 2021, which is the date the financial statements were available to be issued.
#19..
- 971 -
STANISLAUS COUNCIL OF GOVERNMENTS
MEASURE L - CITY OF MODESTO
NOTES TO FINANCIAL STATEMENTS (continued)
12 NOTE 2 – CASH AND INVESTMENTS
Cash and investments as of June 30, 2021 are classified in the accompanying financial statements as follows:
Statement of Net Position:
Cash and investments $ 18,039,837
Total cash and investments $ 18,039,837
Summary of Deposits:
Cash and investments as of June 30, 2021 consist of the following:
Deposits with City of Modesto $ 18,039,837
Total cash and investments $ 18,039,837
See the City of Modesto’s Annual Comprehensive Financial Report (ACFR) for disclosures related to risks and fair value measurements.
NOTE 3 – RISK MANAGEMENT
The Measure L Fund is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. The City provides coverage for these losses through commercial insurance policies and/or through participation in the City of Modesto program. Refer to the City of Modesto’s ACFR for additional information.
NOTE 4 – COMMITMENTS AND CONTINGENCIES
Commitments and contingencies, undeterminable in amount, include normal recurring pending claims and litigation.
In the opinion of management, based upon discussion with legal counsel, there is no pending litigation which is likely to have a material adverse effect on the financial position of the Measure L Fund.
NOTE 5 – COVID-19 CONTINGENCY
On March 4, 2020, Governor Newsom issued an emergency proclamation declaring a State of Emergency in California due to the novel Coronavirus (COVID-19). The COVID-19 outbreak is ongoing, and the ultimate geographic spread of the virus, the duration and severity of the outbreak, and the economic and other actions that may be taken by governmental authorities to contain the outbreak or to treat its impact are uncertain. A vaccination has been created and is being administered throughout the state, including the Agency’s service area. The ultimate impact of COVID19 on the Measure L Fund is unknown.
NOTE 6 – PRIOR PERIOD ADJUSTMENT
A prior period adjustment of ($11,972) was recorded to the special revenue fund and governmental activities beginning fund balance and net position, to account for expenditures incurred in the prior period that were improperly not recorded and reported in the prior year. #19..
- 972 -
7473 N. INGRAM AVE., SUITE 102 ⬧ FRESNO, CA 93711
_______________________________________________________________________________________________ P (559) 412-7576 ⬧ F (559) 493-5325 ⬧ WWW.HHCCPAS.COM
INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE
AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH
GOVERNMENT AUDITING STANDARDS AND THE MEASURE L PROGRAM To the Policy Board
Stanislaus Council of Governments
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States; and certain provisions of the Measure L: Local Road First Transportation Funding Measure (the Measure L Program), issued by the Stanislaus Council of Governments acting as the Stanislaus County Transportation Authority, the Measure L Fund of the City of Modesto (the Measure L Fund) for the year ended June 30, 2021, the budgetary comparison schedule for the special revenue fund and the related notes to the financial statements, and have issued our report thereon dated November 5, 2021.
Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the Measure L Fund’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Measure L Fund’s internal control. Accordingly, we do not express an opinion on the effectiveness of the Measure L Fund’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or, significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Measure L Fund’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, grant agreements, and the Measure L Program, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards or the Measure L Program.
#19..
- 973 -
14 Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Measure L Fund’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards and the Measure L Program in considering the Measure L Fund’s internal control and compliance.
Accordingly, this communication is not suitable for any other purpose.
HUDSON HENDERSON & COMPANY, INC.
Fresno, California
November 5, 2021
#19..
- 974 -
STANISLAUS COUNCIL OF GOVERNMENTS
MEASURE L – CITY OF MODESTO
SUPPLEMENTAL SCHEDULE
#19..
- 975 -
15 STANISLAUS COUNCIL OF GOVERNMENTS
MEASURE L - CITY OF MODESTO
SCHEDULE OF EXPENDITURES BY PROJECT
FOR THE YEAR ENDED JUNE 30, 2021
Category
Project
Number Project Name
Expense Budget
-Local Control
Measure L
FY 20-21
Expenses
Project to Date
Expenses
through
6/30/2021
Budget
Remaining for
Future Fiscal
Years
Local Streets & Roads 100806 2016 Pavement Rehab Project $ 750,000 $ 409,129 $ 409,129 $ 340,871 Local Streets & Roads 100942 Paradise Road Improvements 415,000 - - 415,000 Local Streets & Roads 100966 Pelandale from Sisk to Dale 700,000 286,890 299,864 400,136 Local Streets & Roads 101036 Carpenter Street Improvements 2,628,392 5 2,628,392 - Local Streets & Roads 101037 Lakewood Street Improvements 2,365,558 119 2,365,558 - Local Streets & Roads 101038 Wylie,Floyd,Carver Improvements 2,250,469 (2,660) 2,250,469 - Local Streets & Roads 101042 Paradise Road ATP - Construction Portion 760,000 - - 760,000 Local Streets & Roads 101088 Standiford Avenue Pavement Rehab 2,788,144 (181) 2,788,144 - Local Streets & Roads 101118 Claus Road Pavement Rehab 1,183,203 (2,091) 1,183,203 - Local Streets & Roads 101120 Village One Slurry Seal 2,622,060 (305) 2,554,544 67,516 Local Streets & Roads 101141 Downtown Master Plan 108,450 9,306 108,450 - Local Streets & Roads 101168 Scenic Dr Pavement Rehab Phase 1 (Lakewood to Claus) 1,739,500 155,258 216,143 1,523,357 Local Streets & Roads 101169 Scenic Dr Pavement Rehab Phase 2 (Downey to 3,100,000 23,922 36,626 3,063,374 Local Streets & Roads 101170 Tully Road Pavement Rehab 2,400,000 1,556,204 2,011,062 388,938 Local Streets & Roads 101171 Coffee Road Pavement Rehab Phase 1 4,100,000 3,149,581 3,186,243 913,757 Local Streets & Roads 101214 Granger Neighborhood Pavement Rehabilitation 330,000 163,194 193,646 136,354 Local Streets & Roads 101245 2020 Pvmnt Condition Survey 300,000 - - 300,000 Local Streets & Roads 101246 Briggsmore-McHenry to Oakdale 367,500 201,638 201,638 165,862 Local Streets & Roads 101248 Orangeburg Ave. Pvmt Rehab Ph1 241,500 82,463 82,463 159,037 Local Streets & Roads 101249 Pelandale Nghbrhd Pvmt Maintenance 2,271,250 143,055 143,055 2,128,195 Total Local Streets and Roads $ 31,421,026 $ 6,175,527 $ 20,658,629 $ 10,762,397 Traffic Management 100634 Upgrade Traffic Signals - 2013 $ 175,000 $ 139,851 $ 139,851 $ 35,149 Traffic Management 100719 Traffic Signals 2013 (Ros/Bel) - (38,783) - - Traffic Management 100720 Traffic Signals 2013 (Pres/Mt. Vrn) 122,080 (13,532) 122,080 - Traffic Management 100884 Emergency Vehicle Pre-Emption 61,500 32 61,500 - Traffic Management 100990 System Safety Analysis Program 32,500 23,531 29,492 3,008 Traffic Management 101039 Task Force for School Safety 45,000 3,499 23,141 21,859 Traffic Management 101040 Orville Wright Elementary Improve. 638,265 300,330 531,584 106,681 Traffic Management 101043 Replace Traffic Controllers 584,437 - 584,437 - #19..
- 976 -
16 STANISLAUS COUNCIL OF GOVERNMENTS
MEASURE L - CITY OF MODESTO
SCHEDULE OF EXPENDITURES BY PROJECT (continued)
FOR THE YEAR ENDED JUNE 30, 2021
Category
Project
Number Project Name
Expense Budget
-Local Control
Measure L
FY 20-21
Expenses
Project to Date
Expenses
through
6/30/2021
Budget
Remaining for
Future Fiscal
Years
Traffic Management 101089 Tully Road Safety Improvement $ 511,183 $ 246 $ 30,831 $ 480,352 Traffic Management 101122 Install 2 Flashing Beacons 200,000 - 9,970 190,030 Traffic Management 101123 Fiber Drop Traffic Signal Cabinet 560,000 - 156 559,844 Traffic Management 101124 Replace 35 Traffic Controllers 178,250 - 150,149 28,101 Traffic Management 101125 Traffic Signal Analysis Study 250,000 42,340 243,270 6,730 Traffic Management 101172 School Safety Program Study 250,000 61,309 61,698 188,302 Traffic Management 101173 School Area All Stop Beacon 48,000 - 48,000 - Traffic Management 101174 Advance School Zone Beacons at 13 Schools 130,000 - - 130,000 Traffic Management 101175 School Crosswalk Beacon 345,000 8,171 25,386 319,614 Traffic Management 101176 Upgrade Crosswalk to RRFB 460,000 6,325 37,353 422,647 Traffic Management 101177 Upgrade RRFB - Elliot School 20,000 19,670 19,670 330 Traffic Management 101178 Neighborhood Traffic Calming 150,000 11,300 20,678 129,322 Traffic Management 101179 HAWK System at Hetch-Hetchy on Tully and Prescott 500,000 9,245 25,846 474,154 Traffic Management 101221 School Safety Program Study - Projects 525,000 - - 525,000 Traffic Management 101242 Install Video Detection 410,000 - - 410,000 Traffic Management 101322 Claus Road Signal Coordination 27,750 269 269 27,481 Traffic Management 101323 Scenic Drive Signal Coordination 37,000 217 217 36,783 Total Traffic Management $ 6,260,965 $ 574,019 $ 2,165,577 $ 4,095,388 Bike and Pedestrian 100882 MJC Bike Path Phase 2 $ 202,047 $ 13,803 $ 202,047 $ - Bike and Pedestrian 101041 Active Transportation Plan 300,000 42,544 217,894 82,106 Bike and Pedestrian 101042 Paradise Road ATP 60,000 - 25,000 35,000 Bike and Pedestrian 101073 Carver/Bangs-Pelandale/Snyder Bike Trail System 205,591 - - 205,591 Bike and Pedestrian 101126 Dry Creek Trail Maintenance 685,000 202,618 607,634 77,108 Bike and Pedestrian 101180 Dry Creek Trail Pavement Rehab & ADA Upgrade Phase II 867,660 (5,717) 12,105 855,555 Bike and Pedestrian 101247 Virginia Corridor Trail Maintenance 632,500 12,685 12,685 619815 Bike and Pedestrian 101250 Neighborhood ADA Program 25,000 1,578 1,578 23,422 Total Bike and Pedestrian $ 2,977,798 $ 267,510 $ 1,078,943 $ 1,898,597 #19..
- 977 -
17 STANISLAUS COUNCIL OF GOVERNMENTS
MEASURE L - CITY OF MODESTO
SCHEDULE OF EXPENDITURES BY PROJECT (continued)
FOR THE YEAR ENDED JUNE 30, 2021
Category
Project
Number Project Name
Expense Budget
-Local Control
Measure L
FY 20-21
Expenses
Project to Date
Expenses
through
6/30/2021
Budget
Remaining for
Future Fiscal
Years
Transit Services Transfer Fund 4540 - Bus Fixed Route Max Operations $ - $ - $ 475,000 $ * - Total Transit Services - - 475,000 -
Grand Total $ 40,659,789 $ 7,017,056 $ 24,378,150 $ 16,756,381 *Transit funding is not budgeted for by the City; revenues earned during the year are utilized to supplement fare box ratio requirements. #19..
- 978 -
7473 N. INGRAM AVE., SUITE 102 ⬧ FRESNO, CA 93711
_______________________________________________________________________________________________ P (559) 412-7576 ⬧ F (559) 493-5325 ⬧ WWW.HHCCPAS.COM
November 5, 2021
To the Policy Board of
Stanislaus Council of Governments
We have audited the accompanying financial statements of the major fund and governmental activities of the Measure L Fund of the City of Modesto, California (the Measure L Fund) pertaining to certain provisions of Measure L: Local Road First Transportation Funding Measure, (The Measure L Program) issued by the Stanislaus Council of Governments acting as the Stanislaus County Transportation Authority as of and for the year ended June 30, 2021, the budgetary comparison schedule for the special revenue fund and the related notes to the financial statements, which collectively comprise the financial statements as listed in the table of contents. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards, as well as certain information related to the planned scope and timing of our audit. We have communicated such information in our letter to you dated August 6, 2021.
Professional standards also require that we communicate to you the following information related to our audit.
Significant Audit Findings
Qualitative Aspects of Accounting Practices
Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the Measure L Fund are described in Note 1 to the financial statements. No new significant accounting policies were adopted and the application of existing policies was not changed during 2021. We noted no transactions entered into by the Measure L Fund during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period.
Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. There weren’t any sensitive estimates affecting the financial statements.
The financial statement disclosures are neutral, consistent, and clear.
Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in performing and completing our audit.
Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are clearly trivial, and communicate them to the appropriate level of management. Management has corrected all such misstatements.
In addition, none of the misstatements detected as a result of audit procedures and corrected by management were material, either individually or in the aggregate, to each opinion unit’s financial statements taken as a whole.
Disagreements with Management
For purposes of this letter, a disagreement with management is a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor’s report. We are pleased to report that no such disagreements arose during the course of our audit. #19..
- 979 -
Stanislaus Council of Governments
Measure L – City of Modesto
November 5, 2021
Management Representations
We have requested certain representations from management that are included in the management representation letter dated November 5, 2021.
Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves application of an accounting principle to the Measure L Fund’s financial statements or a determination of the type of auditor’s opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants.
Other Audit Findings or Issues
We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the Measure L Fund’s auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention.
Other Matters
We were engaged to report on the Schedule of Expenditures by project, the supplemental schedule, which accompany the financial statements but are not RSI. With respect to this supplementary information, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves.
Restriction on Use
This information is intended solely for the information and use of the Policy Board and management of the City of Modesto and management of the City of Modesto and is not intended to be, and should not be, used by anyone other than these specified parties.
Sincerely,
HUDSON HENDERSON & COMPANY, INC.
By: Brian Henderson, CPA
#19..
- 980 -
CITY OF MODESTO
COUNCIL AGENDA REPORT
DATE OF MEETING:
March 8, 2022
Date: January 21, 2022
TO: Mayor and City Council
THROUGH: Joseph P. Lopez, City Manager
FROM: DeAnna Christensen, Director of Finance
SUBJECT: Fiscal Year 2020-2021 Auditor’s Report on Compliance of the Passenger Facility Charge Program
CONTACT: Maria Garnica, Accounting Manager, [email protected], 209-577-5249 DESCRIPTION:
Consider approving the Auditors’ Reports and Schedule of Passenger Facility Charge Revenues and Expenditures for Fiscal Year Ended June 30, 2021. (Funding Source: Not Applicable)
STRATEGIC PLAN ELEMENT:
This item supports the City of Modesto 2020-2025 Strategic Plan focus of Governance and Service Delivery under Goal H: Achieve Financial Sustainability.
BACKGROUND:
Passenger Facility Charges (PFC’s) are fees that airline passengers pay when they purchase their ticket. The funds received pursuant to the PFC program are used for the purpose of capital improvements at the airports. Federal Aviation Administration (FAA) guideline Part 158.67 requires each Airport/Public Agency to conduct an annual audit of their Passenger Facility Charge (PFC) program. The accounting firm of Hudson Henderson & Company, Inc., conducted the Fiscal Year 2020-2021 audit report.
DISCUSSION:
Based on the attached Auditors’ Reports and Schedule of Passenger Facility Charge Revenues and Expenditures, the auditors identified no findings on the PFC program for Fiscal Year Ended June 30, 2021. Furthermore, as of June 30, 2021 all PFC revenues have been fully spent, and as a result, the City will not be required to prepare a financial audit of the PFC revenues commencing in Fiscal Year 2022.
FISCAL IMPACT:
While the information contained in this report discloses the financial performance for the Airport’s PFC program, there is no direct fiscal impact. #20..
- 981 -
City Council, March 8, 2022
Fiscal Year 2020-2021 PFC Auditor’s Report
COMMITTEE RECOMMENDATION:
This item was considered by the Audit Committee on January 20, 2022 and recommended to forward to Council for approval.
RECOMMENDED COUNCIL ACTION:
Staff Recommendations:
Resolution approving the Auditors’ Reports and Schedule of Passenger Facility Charge Revenues and Expenditures for Fiscal Year Ended June 30, 2021, prepared by external auditors Hudson Henderson & Company, Inc.
Approved by:
DeAnna Christensen, Director of Finance
Joseph P. Lopez, City Manager
Attachment:
1. Resolution
2. Independent Auditors’ Reports and Schedule of Passenger Facility Charge Revenues and Expenditures for Fiscal Year Ended June 30, 2021. #20..
- 982 -
MODESTO CITY COUNCIL
RESOLUTION NO. 2022-
RESOLUTION APPROVING THE AUDITORS’ REPORTS AND SCHEDULE OF
PASSENGER FACILITY CHARGE REVENUES AND EXPENDITURES FOR FISCAL YEAR ENDED JUNE 30, 2021, PREPARED BY EXTERNAL
AUDITORS HUDSON HENDERSON & COMPANY, INC.
WHEREAS, pursuant to Federal Aviation Administration (FAA) guidelines part 158.67 requires each Airport/Public Agency to conduct an annual audit of their Passenger Facility Charge (PFC) program, and
WHEREAS, the accounting firm of Hudson Henderson & Company, Inc. has completed its Auditors’ Report and Schedule of Passenger Facility Charge Revenues and Expenditures, and
WHEREAS, the independent audit is applicable to the City’s Passenger Facility Charge program at the Modesto City-County Airport for the year ending June 30, 2021.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Modesto that it hereby approves the Independent Auditors' Reports and Schedule of Passenger Facility Charge Revenues and Expenditures for Fiscal Year Ended June 30, 2021 for the City of Modesto.
The foregoing resolution was introduced at a regular meeting of the Council of the City of Modesto held on the 8th day of March, 2022, by Councilmember ?, who moved its adoption, which motion being duly seconded by Councilmember ?, was upon roll call carried and the resolution adopted by the following vote:
AYES: Councilmembers: ?
NOES: Councilmembers: ?
ABSENT: Councilmembers: ?
#20..
- 983 -
ATTEST: ____________________________
DANA SANCHEZ, Interim City Clerk
(SEAL)
APPROVED AS TO FORM:
By: ____________________________________
JOSE M. SANCHEZ, City Attorney
#20..
- 984 -
CITY OF MODESTO, CALIFORNIA
INDEPENDENT AUDITORS’ REPORTS
AND
SCHEDULE OF PASSENGER FACILITY CHARGE
REVENUES AND EXPENDITURES
FOR THE YEAR ENDED
JUNE 30, 2021
#20..
- 985 -
TABLE OF CONTENTS
Page
Independent Auditors’ Report........................................................................................................................... 1 Financial Schedule:
Schedule of Passenger Facility Charge Revenues and Expenditures............................................................ 3
Notes to the Schedule of Passenger Facility Charge
Revenues and Expenditures....................................................................................................................... 4 Independent Auditors’ Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards...................................................................................................................... 5 Independent Auditors’ Report on Compliance with Applicable Requirements of the Passenger Facility Charge Program and Internal Control Over Compliance ................................................................................................................... 7 Schedule of Findings and Responses................................................................................................................. 9 Schedule of Prior Year Findings and Responses................................................................................................ 10 #20..
- 986 -
7473 N. INGRAM AVE., SUITE 102 ⬧ FRESNO, CA 93711
_______________________________________________________________________________________________ P (559) 412-7576 ⬧ F (559) 493-5325 ⬧ WWW.HHCCPAS.COM
INDEPENDENT AUDITORS’ REPORT
To the Honorable City Council
City of Modesto, California
Report on the Financial Schedule
We have audited the accompanying schedule of passenger facility charge revenues and expenditures of the City of Modesto, California, for the year ended June 30, 2021, and the related notes to the schedule of passenger facility charge revenues and expenditures, which collectively comprise the passenger facility charge program financial schedule as listed in the table of contents.
Management’s Responsibility for the Financial Schedule
Management is responsible for the preparation and fair presentation of this financial schedule in accordance with accounting principles generally accepted in the United States of America and the requirements of the Passenger Facility Charge Audit Guide for Public Agencies; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
Auditors’ Responsibility
Our responsibility is to express an opinion on this financial schedule based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial schedule is free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial schedule. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial schedule, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial schedule in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion.
An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial schedule.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion, the schedule of passenger facility charge revenues and expenditures referred to above presents fairly, in all material respects, the financial position of the passenger facility charge revenues and expenditures, for the year ending June 30, 2021, in accordance with accounting principles generally accepted in the United States of America and the requirements of the Passenger Facility Charge Audit Guide for Public Agencies. #20..
- 987 -
2 Emphasis of Matter
Basis of Accounting
As discussed in Note 1, the schedule of passenger facility charge revenues and expenditures of the City of Modesto is designed to present the financial position and transactions of the passenger facility charge program as previously noted, for the year ending June 30, 2021. It does not purport to, and does not present fairly the financial position of the City of Modesto, California as of June 30, 2021, the changes in its financial position, or, where applicable, its cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter.
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated October 1, 2021, on our consideration of the passenger facility charge financial schedule’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City of Modesto passenger facility charge program’s internal control over financial reporting and compliance.
HUDSON HENDERSON & COMPANY, INC.
Fresno, California
October 1, 2021
#20..
- 988 -
The accompanying notes are an integral part of the schedule of passenger facility charge revenues and expenditures 3 CITY OF MODESTO, CALIFORNIA
SCHEDULE OF PASSENGER FACILITY CHARGE REVENUES AND EXPENDITURES FOR THE YEAR ENDED JUNE 30, 2021
Cumulative
Total
For the
Year Ended
Cumulative
Total
Revenues:
June 30,
2020
September 30,
2020
December 31,
2020
March 31,
2021
June 30,
2021
June 30,
2021
June 30,
2021
Passenger facility charge revenue received $ 979,064 $ - $ - $ - $ - $ - $ 979,064 Interest earned 57,157 - - - - - 57,157
Total passenger facility charge revenue received 1,036,221 - - - - - 1,036,221 Expenditures:
Application No. Date Approved Amount
Project No. Project Name Approved
Completed and Closed Applications $ 1,030,005 1,030,005 - - - - - 1,030,005 Total passenger facility charge revenue expended 1,030,005 - - - - - 1,030,005 Project close out transfer - - 6,216 - - 6,216 6,216
Unliquidated passenger facility charge revenues $ 6,216 $ - $ (6,216) $ - $ - $ (6,216) $ - For the Quarter Ended
#20..
- 989 -
CITY OF MODESTO, CALIFORNIA
NOTES TO THE SCHEDULE OF PASSENGER FACILITY CHARGE
REVENUES AND EXPENDITURES
4 NOTE 1 – BASIS OF PRESENTATION
The accompanying schedule of passenger facility charge revenues and expenditures (the Schedule) includes the passenger facility charge activity at the Modesto City-County Airport by the City of Modesto, California (the City).
Interest income is earned on deposit balances of passenger facility charge receipts. Passenger facility charge collection revenues and expenditures are presented on the accrual basis of accounting. In the accrual basis of accounting, revenue is reported when earned and readily available, generally considered to be received within sixty days. Expenditures are reported when incurred. The information in this schedule is presented for purposes of additional analysis, as specified in the Passenger Facility Charge Audit Guide for Public Agencies, issued by the Federal Aviation Administration (FAA). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in preparation of, the City’s basic financial statements.
Passenger facility charge expenditures may consist of direct project costs, administrative costs, debt service costs and bond financing costs, if requested in the application. Eligible expenditures not requested or approved in the application are not applied against passenger facility charge collections. The Schedule includes the eligible expenditures that have been applied against passenger facility charge collections through June 30, 2021, however, the City did not collect any passenger facility charges during the year because commercial airlines discontinued operations in June 2014.
NOTE 2 – PASSENGER FACILITY CHARGE MATCHING FUNDS
Passenger facility charge revenue is used to match funding for various grants. Funding provided under government grants is considered earned as the related allowable expenditures are incurred.
NOTE 3 – RELATIONSHIP TO FEDERAL FINANCIAL REPORTS
Amounts reported in the Schedule agree to or can be reconciled with the amounts reported to the FAA on the Passenger Facility Charge Quarterly Status Reports.
NOTE 4 – PASSENGER FACILITY CHARGE CLOSEOUT
On September 30, 2020, the City received formal approval from the FAA that the remaining $6,216 in unliquidated passenger facility charge revenues could be transferred to a non-interest bearing account of the City and formally close out the passenger facility charge program with the City. This will be the final report of the passenger facility charge program of the City.
#20..
- 990 -
7473 N. INGRAM AVE., SUITE 102 ⬧ FRESNO, CA 93711
_______________________________________________________________________________________________ P (559) 412-7576 ⬧ F (559) 493-5325 ⬧ WWW.HHCCPAS.COM
INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE
AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH
GOVERNMENT AUDITING STANDARDS
To the Honorable City Council
City of Modesto, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the schedule of passenger facility charge revenues and expenditures of the City of Modesto, California (the City), for the year ended June 30, 2021, and the related notes to the schedule of passenger facility charge revenues and expenditures, which collectively comprise the passenger facility charge program financial schedule, and have issued our report thereon dated October 1, 2021.
Internal Control Over Financial Reporting
In planning and performing our audit of the passenger facility charge program financial schedule, we considered the City’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the passenger facility charge program financialschedule, but not for the purpose of expressing an opinion on the effectiveness of the City’sinternal control.
Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the City’s passenger facility charge program financial schedule, will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City’s passenger facility charge program financial schedule is free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. #20..
- 991 -
6 Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.
HUDSON HENDERSON & COMPANY, INC.
Fresno, California
October 1, 2021
#20..
- 992 -
7473 N. INGRAM AVE., SUITE 102 ⬧ FRESNO, CA 93711
_______________________________________________________________________________________________ P (559) 412-7576 ⬧ F (559) 493-5325 ⬧ WWW.HHCCPAS.COM
INDEPENDENT AUDITORS’ REPORT ON COMPLIANCE WITH APPLICABLE REQUIREMENTS OF THE PASSENGER
FACILITY CHARGE PROGRAM AND INTERNAL CONTROL OVER COMPLIANCE To the Honorable City Council
City of Modesto, California
Compliance
We have audited the City of Modesto, California’s (the City) compliance with compliance requirements described in the Passenger Facility Charge Audit Guide for Public Agencies, issued by the Federal Aviation Administration (the Guide) applicable to the City’s passenger facility charge program at the Modesto City-County Airport for the year ended June 30, 2021.
Management’s Responsibility for the Financial Schedule
Compliance with the requirements referred to above is the responsibility of the City’s management.
Auditors’ Responsibility
Our responsibility is to express an opinion on the City’s compliance based on our audit.
We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the Guide. Those standards and the Guide require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the compliance requirements referred to above that could have a material effect on the passenger facility charge program occurred. An audit includes examining, on a test basis, evidence about the City’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances.
We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide legal determination of the City’s compliance with those requirements.
Opinion
In our opinion, the City complied, in all material respects, with the compliance requirements referred to above that are applicable to its passenger facility charge program for the year ended June 30, 2021.
Internal Control Over Compliance
Management of the City is responsible for establishing and maintaining effective internal control over compliance with the compliance requirements referred to above. In planning and performing our audit, we considered the City’s internal control over compliance with requirements that could have a direct and material effect on the passenger facility charge program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on the internal control over compliance in accordance with the Guide. #20..
- 993 -
8 Our consideration of the internal control over compliance would not necessarily disclose all matters in the internal control that might be material weaknesses. A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that noncompliance with applicable requirements of laws and regulations that would be material in relation to the passenger facility charge program being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions.
This report is intended solely for the information and use of the City Council, management, and the Federal Aviation Administration and is not intended to be and should not be used by anyone other than these specified parties.
HUDSON HENDERSON & COMPANY, INC.
Fresno, California
October 1, 2021
#20..
- 994 -
9 CITY OF MODESTO, CALIFORNIA
SCHEDULE OF PASSENGER FACILITY CHARGE REVENUES AND EXPENDITURES
SCHEDULE OF FINDINGS AND RESPONSES
FOR THE YEAR ENDED JUNE 30, 2021
There were no current year financial statement findings reported in accordance with Government Auditing Standards.
#20..
- 995 -
10 CITY OF MODESTO, CALIFORNIA
SCHEDULE OF PASSENGER FACILITY CHARGE REVENUES AND EXPENDITURES
SCHEDULE OF PRIOR YEAR FINDINGS AND RESPONSES
FOR THE YEAR ENDED JUNE 30, 2020
There were no prior year financial statement findings reported in accordance with Government Auditing Standards. #20..
- 996 -
CITY OF MODESTO
COUNCIL AGENDA REPORT
DATE OF MEETING:
March 8, 2022
Date: February 09, 2022
TO: Mayor and City Council
THROUGH: Joseph P. Lopez, City Manager
FROM: DeAnna Christensen, Director of Finance
SUBJECT: Fiscal Year 2020-2021 Single Audit Report
CONTACT: Maria Garnica, Accounting Manager, [email protected], 209-577-5249 DESCRIPTION:
Consider approving the Fiscal Year 2020-2021 Single Audit Report for the City of Modesto from external auditors Hudson Henderson & Company, Inc. (Funding Source: Not Applicable) STRATEGIC PLAN ELEMENT:
This item supports the City of Modesto 2020-2025 Strategic Plan focus of Governance and Service Delivery under Goal H: Achieve Financial Sustainability.
BACKGROUND:
The City of Modesto Single Audit report is federally mandated by the provisions of the Federal Single Audit Act Amendments of 1996 and Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), which requires an audit to be conducted for any non-Federal entity that expends $750,000 or more a year in Federal awards. This audit was conducted by the City’s external auditor, Hudson Henderson & Company, Inc. and the main objectives were to ensure a fair presentation of the basic financial statements and the schedule of expenditures of Federal awards, and to also audit the City's internal controls and compliance with legal requirements, with special emphasis on internal controls and legal requirements involving the administration of federal awards expended during the fiscal year.
DISCUSSION:
As part of the City’s Fiscal Year 2020-2021 Single Audit report, one audit finding was reported for the following program:
Emergency Rental Assistance Program, American Rescue Plan Act – Per Uniform Guidance Section 200.303, it is the City’s responsibility to establish and maintain effective internal controls over federal awards, that provide reasonable assurance that the City is managing the federal award in compliance with the federal statutes, regulations, and terms and conditions of the federal award. The requirement ensures that only allowable costs are charged to the federal #21..
- 997 -
City Council, March 8, 2022
Single Audit Report for FY 2020-2021
programs. Per audit procedures performed over expenditures charged to the Emergency Rental Assistance Program (ERAP), it was identified that an invoice was incorrectly calculated and charged to the program. Although, the City has sufficient internal control processes over expenditures, including proper review, approval and recording; the overcharge was due to the vendor providing one invoice which combined charges for both federal and state funded programs that was overlooked when the invoice was submitted for payment to the federal program.
As a corrective action plan, the City staff will work with all vendors and sub-recipients to ensure that separate invoices are submitted to process payments with multiple funding sources. The vendors who hold multiple contracts with different funding sources will be required to submit written confirmation that all invoices are associated with the correct funding source. Additionally, all invoices will be reviewed by three entities before processing, program manager, fiscal review, and Community Development Manager.
FISCAL IMPACT:
While the information contained in these reports discloses the financial performance for the City, there is no direct fiscal impact.
COMMITTEE RECOMMENDATION:
This item was considered by the Audit Committee on February 23, 2022 and recommended forwarding to Council for approval.
RECOMMENDED COUNCIL ACTION:
Staff Recommendations:
Resolution approving the Fiscal Year 2020-2021 Single Audit Report for the City of Modesto from external auditors Hudson Henderson & Company, Inc.
Approved by:
DeAnna Christensen, Director of Finance
Joseph P. Lopez, City Manager
Attachment:
1. Resolution
2. Fiscal Year 2020-2021 City of Modesto Single Audit Report #21..
- 998 -
MODESTO CITY COUNCIL
RESOLUTION NO. 2022-
RESOLUTION APPROVING THE FISCAL YEAR 2020-2021 SINGLE AUDIT
REPORT FOR THE CITY OF MODESTO FROM EXTERNAL AUDITORS
HUDSON HENDERSON & COMPANY, INC.
WHEREAS, the City of Modesto Single Audit reports are federally mandated by the provisions of the Federal Single Audit Act Amendments of 1996 and Title 2 U.S.
Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), which requires an audit to be conducted for any non-Federal entity that expends $750,000 or more a year in Federal awards, and
WHEREAS, this audit was conducted by the City’s external auditors, Hudson Henderson & Company, Inc., and the main objectives were to ensure a fair presentation of the basic financial statements and the schedule of expenditures of Federal awards, and to also audit the City's internal controls and compliance with legal requirements, with special emphasis on internal controls and legal requirements involving the administration of federal awards expended during the fiscal year, and
WHEREAS, as part of the City’s Fiscal Year 2020-2021 Single Audit report, one audit findings was reported for grant funding received from the Emergency Rental Assistance Program (ERAP) for incorrect calculation of one invoice charged to the program, and
WHEREAS, as part of the corrective action plan, City staff will work with all vendors and sub-recipients to ensure that separate invoices are submitted to process payments with multiple funding sources, and additional review will be completed by #21..
- 999 -
program manager, fiscal review and Community Development management before invoices are processed for payment.
NOW, THEREFORE, BE IT RESOLVED, by the Council of the City of Modesto that it hereby approves the Fiscal Year 2020-2021 Single Audit report for the City of Modesto.
The foregoing resolution was introduced at a regular meeting of the Council of the City of Modesto held on the 8th day of March, 2022, by Councilmember ?, who moved its adoption, which motion being duly seconded by Councilmember ?, was upon roll call carried and the resolution adopted by the following vote:
AYES: Councilmembers: ?
NOES: Councilmembers: ?
ABSENT: Councilmembers: ?
ATTEST: ____________________________
DANA SANCHEZ, Interim City Clerk
(SEAL)
APPROVED AS TO FORM:
BY: ____________________________________
JOSE M. SANCHEZ, City Attorney
#21..
- 1000 -
CITY OF MODESTO
SINGLE AUDIT REPORT
FOR THE YEAR ENDED
JUNE 30, 2021
#21..
- 1001 -
TABLE OF CONTENTS
Page
Reports:
Independent Auditors’ Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards...................................................................................................................... 1 Independent Auditors’ Report on Compliance for Each Major Program and on Internal Control over Compliance; and Report on the Schedule of Expenditures of Federal Awards
Required by the Uniform Guidance ................................................................................................................. 3 Financial Schedule:
Schedule of Expenditures of Federal Awards.................................................................................................... 6 Notes to Schedule of Expenditures of Federal Awards ..................................................................................... 10 Findings and Questioned Costs:
Schedule of Findings and Questioned Costs...................................................................................................... 11 Summary Schedule of Prior Year Findings and Questioned Costs..................................................................... 13 Corrective Action Plan ....................................................................................................................................... 14 #21..
- 1002 -
7473 N. INGRAM AVE., SUITE 102 ⬧ FRESNO, CA 93711
_______________________________________________________________________________________________ P (559) 412-7576 ⬧ F (559) 493-5325 ⬧ WWW.HHCCPAS.COM
INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE
AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH
GOVERNMENT AUDITING STANDARDS
To the City Council
City of Modesto, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Modesto, California (the City), as of and for the year ended June 30, 2021, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, and have issued our report thereon dated December 10, 2021.
Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or, significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we considered to be material weaknesses.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed an instance of noncompliance or other matters that are required to be reported under Government Auditing Standards which is described in the accompanying schedule of findings and questioned costs as item 2021-001. #21..
- 1003 -
2 City’s Response to Findings
The City’s response to the finding identified in our audit is described in the accompanying schedule of findings and questioned costs. The City’s response was not subjected to the auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on it.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.
HUDSON HENDERSON & COMPANY, INC.
Fresno, California
December 10, 2021
#21..
- 1004 -
7473 N. INGRAM AVE., SUITE 102 ⬧ FRESNO, CA 93711
_______________________________________________________________________________________________ P (559) 412-7576 ⬧ F (559) 493-5325 ⬧ WWW.HHCCPAS.COM
INDEPENDENT AUDITORS’ REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE; AND REPORT ON THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS REQUIRED BY
THE UNIFORM GUIDANCE
To the City Council
City of Modesto, California
Report on Compliance for Each Major Federal Program
We have audited the City of Modesto, California’s (the City) compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on each of the City’s major federal programs for the year ended June 30, 2021. The City’s major federal programs are identified in the summary of auditors’ results section of the accompanying schedule of findings and questioned costs.
Management’s Responsibility
Management is responsible for compliance with federal statutes, regulations, and the terms and conditions of its federal awards applicable to its federal programs.
Auditors’ Responsibility
Our responsibility is to express an opinion on compliance for each of the City’s major federal programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Those standards and the Uniform Guidance require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the City’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances.
We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program.
However, our audit does not provide a legal determination of the City’s compliance.
Opinion on Each Major Federal Program
In our opinion, the City complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2021.
Other Matters
The results of our auditing procedures disclosed an instance of noncompliance which is required to be reported in accordance with the Uniform Guidance and which is described in the accompanying schedule of findings and questioned costs as item 2021-001. Our opinion on each major federal program is not modified with respect to this matter.
The City’s response to the noncompliance finding identified in our audit is described in the accompanying schedule of findings and questioned costs. The City’s response was not subjected to the auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on the response. #21..
- 1005 -
4 Report on Internal Control over Compliance
Management of the City is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the City’s internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control over compliance.
A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis.
A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis.
A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance.
Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that have not been identified. We consider the deficiency in internal control over compliance described in the accompanying schedule of findings and questioned costs as item 2021-001 to be a significant deficiency.
The City’s response to the internal control over compliance finding identified in our audit is described in the accompanying schedule of findings and questioned costs. The City’s response was not subjected to the auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on it.
Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City, as of and for the year ended June 30, 2021, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements. We issued our report thereon dated December 10, 2021, which contained unmodified opinions on those financial statements.
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the basic financial statements. The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by the Uniform Guidance and is not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the schedule of expenditures of federal awards is fairly stated in all material respects in relation to the basic financial statements as a whole.
#21..
- 1006 -
5 Purpose of Report
The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance.
Accordingly, this report is not suitable for any other purpose.
HUDSON HENDERSON & COMPANY, INC.
Fresno, California
February 4, 2022
#21..
- 1007 -
CITY OF MODESTO
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE YEAR ENDED JUNE 30, 2021
The accompanying notes are an integral part of the Schedule of Expenditures of Federal Awards. 6 PassThrough to
Federal Grant Sub- Federal
CFDA No. Number recipients Expenditures
Federal Grantor/ Pass-through
Grantor/ Program or Cluster Title
U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Direct Programs
CDBG - Entitlement Grants Cluster
Community Development Block Grants (CDBG)/Entitlement Program 14.218 B-14-MC-060002 $ - $ 782 Community Development Block Grants (CDBG)/Entitlement Program 14.218 B-17-MC-060002 - 155 Community Development Block Grants (CDBG)/Entitlement Program 14.218 B-18-MC-060002 - 157,131 Community Development Block Grants (CDBG)/Entitlement Program 14.218 B-19-MC-060002 - 324,403 Community Development Block Grants (CDBG)/Entitlement Program 14.218 B-20-MC-060002 447,114 1,185,253
14.218 B-20-MW-060002 769,512 907,957
Total CDBG - Entitlement Grants Cluster 1,216,626 2,575,681 Emergency Solutions Grant Program 14.231 E-19-MC-060002 11,795 11,795 Emergency Solutions Grant Program 14.231 E-20-MC-060002 84,501 104,417 Emergency Solutions Grant Program - CARES Act 14.231 E-20-MW-060002 1,034,928 1,393,294 Total Emergency Solutions Grant Program 1,131,224 1,509,506 Home Investment Partnerships Program 14.239 M-15-MC-060207 - 3,715 Home Investment Partnerships Program 14.239 M-16-MC-060207 - 315,041 Home Investment Partnerships Program 14.239 M-17-MC-060207 - 315,748 Home Investment Partnerships Program 14.239 M-18-MC-060207 - 860,023 Home Investment Partnerships Program 14.239 M-19-MC-060207 - 16,258 Home Investment Partnerships Program 14.239 M-20-MC-060207 - 138,134 Total Home Investment Partnerships Program - 1,648,919
ARRA - Neighborhood Stabilization Program (Recovery Act Funded) 14.256 B-09-LN-CA-0053 - 13,414 Continuum of Care Program 14.267 CA1754L9T101800 84,778 84,778 TOTAL U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT 2,432,628 5,832,298 U.S. DEPARTMENT OF JUSTICE
Direct Programs
Coronavirus Emergency Supplemental Funding 16.034 2020VDBX0954 - 103,315 Public Safety Partnership and Community Policing Grants 16.710 2016ULWX0021 - 19,647 Community Development Block Grants (CDBG)/Entitlement
Program - CARES Act
#21..
- 1008 -
CITY OF MODESTO
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS (continued)
FOR THE YEAR ENDED JUNE 30, 2021
The accompanying notes are an integral part of the Schedule of Expenditures of Federal Awards. 7 PassThrough to
Federal Grant Sub- Federal
CFDA No. Number recipients Expenditures
Federal Grantor/ Pass-through
Grantor/ Program or Cluster Title
Passed through the County of Stanislaus
Edward Byrne Memorial Justice Assistance Grant 16.738 2017-DJ-BX-0939 $ - $ 134,043 Edward Byrne Memorial Justice Assistance Grant 16.738 2018-DJ-BX-0826 - 102,711 Edward Byrne Memorial Justice Assistance Grant 16.738 2019-DJ-BX-0693 - 11,024 Edward Byrne Memorial Justice Assistance Grant 16.738 2020-DJ-BX-0226 - 26,827 Total Edward Byrne Memorial Justice Assistance Grant - 274,605 TOTAL U.S. DEPARTMENT OF JUSTICE - 397,567
U.S. DEPARTMENT OF TRANSPORTATION
Direct Programs
Airport Improvement Program 20.106 AIP-041 - 2,165
Airport Improvement Program - CARES Act 20.106 AIP-042 - 69,000 Total Airport Improvement Program - 71,165
Federal Transit Cluster
Federal Transit - Capital Investment Grants 20.500 CA-04-0198 - 824,667 Federal Transit - Formula Grants 20.507 CA-2017-010-00 - 515,408 Federal Transit - Formula Grants 20.507 CA-2017-054-00 - 1,100,000 Federal Transit - Formula Grants 20.507 CA-2017-157-00 - 105,561 Federal Transit - Formula Grants 20.507 CA-2019-001 - 2,058,393 Federal Transit - Formula Grants 20.507 CA-2020-021-00 713,075 2,063,795 Federal Transit - Formula Grants 20.507 CA-2020-073-00 2,185,035 11,467,476 Total Federal Transit - Formula Grants 2,898,110 17,310,633 Bus and Bus Facilities Formula & Discretionary Program 20.526 CA-2017-062-00 - 1,076,373 Total Federal Transit Cluster 2,898,110 19,211,673
Passed through the California Department of Transportation Highway Planning and Construction Cluster
Highway Planning and Construction 20.205 BRLS-5938(167) - 52,095 Highway Planning and Construction 20.205 TGHPLUL-5059(230) - 4,767,806 Highway Planning and Construction 20.205 CML-5059(186) - 563,045 Highway Planning and Construction 20.205 CML-5059(185) - 386,881 Highway Planning and Construction 20.205 CML-5059(198) - 7,118 Highway Planning and Construction 20.205 STPL-5059(205) - 1,412,477 #21..
- 1009 -
CITY OF MODESTO
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS (continued)
FOR THE YEAR ENDED JUNE 30, 2021
The accompanying notes are an integral part of the Schedule of Expenditures of Federal Awards. 8 PassThrough to
Federal Grant Sub- Federal
CFDA No. Number recipients Expenditures
Federal Grantor/ Pass-through
Grantor/ Program or Cluster Title
Passed through the California Department of Transportation (continued) Highway Planning and Construction Cluster (continued)
Highway Planning and Construction 20.205 STPL- 5059 (208) $ - $ 41,689 Highway Planning and Construction 20.205 CML-5059(217) - 1,407 Highway Planning and Construction 20.205 CML-5059(219) - 32,959 Highway Planning and Construction 20.205 STPL-5059(220) - 1,635,761 Highway Planning and Construction 20.205 CML-5059(222) - 10,718 Highway Planning and Construction 20.205 CML-5059(223) - 383,778 Highway Planning and Construction 20.205 ATPL-5059(233) - 73,897 Highway Planning and Construction 20.205 NH-P099(647) - 111,131 Highway Planning and Construction 20.205 HSIPL-5059(227) - 9,095 Highway Planning and Construction 20.205 CML-5059(229) - 3,672 Highway Planning and Construction 20.205 STPL-5059(234) - 14,255 Highway Planning and Construction 20.205 CML-5059(236) - 8,845 Highway Planning and Construction 20.205 HSIPL-5059(237) - 1,001 Highway Planning and Construction 20.205 HSIPL-5059(238) - 18,448 Highway Planning and Construction 20.205 STPL-5059(242) - 12,067 Highway Planning and Construction 20.205 CML-5059(245) - 458 Highway Planning and Construction 20.205 CML-5059(246) - 369 Highway Planning and Construction 20.205 CML-5059-(228) - 12,840 Highway Planning and Construction 20.205 CML-5059-(235) - 21,870 Highway Planning and Construction 20.205 CML-5059-(240) - 15,057 Total Highway Planning and Construction Cluster - 9,598,739 Passed through the California Office of Traffic Safety
Highway Safety Cluster
State and Community Highway Safety 20.600 PT20083 - 60,935 State and Community Highway Safety 20.600 PS20013 - 11,977 State and Community Highway Safety 20.600 PT21110 - 50,352 State and Community Highway Safety 20.600 PS21034 - 17,501 Total State and Community Highway Safety - 140,765
Minimum Penalties for Repeat Offenders for Driving While Intoxicated 20.608 PT20083 - 78,408 Minimum Penalties for Repeat Offenders for Driving While Intoxicated 20.608 PT21110 - 142,846 Total Minimum Penalties for Repeat Offenders for Driving While Intoxicated - 221,254 #21..
- 1010 -
CITY OF MODESTO
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS (continued)
FOR THE YEAR ENDED JUNE 30, 2021
The accompanying notes are an integral part of the Schedule of Expenditures of Federal Awards. 9 PassThrough to
Federal Grant Sub- Federal
CFDA No. Number recipients Expenditures
Federal Grantor/ Pass-through
Grantor/ Program or Cluster Title
Passed through the California Office of Traffic Safety (continued) Highway Safety Cluster (continued)
OTS Step Grant 20.616 PT20083 $ - $ 42,900
Total Highway Safety Cluster
TOTAL U.S. DEPARTMENT OF TRANSPORTATION 2,898,110 29,286,496 U.S. DEPARTMENT OF THE TREASURY
Direct Programs
Coronavirus State and Local Fiscal Recovery Funds - American Rescue Plan Act 21.019 606125051 - 708,500 Passed through California Department of Finance
Coronavirus Relief Funding - County 21.019 606125051 - 2,745,524 Emergency Rental Assistance Program - American Rescue Plan Act 21.023 N/A 521,765 524,897 TOTAL U.S. DEPARTMENT OF THE TREASURY 521,765 3,978,921 U.S. DEPARTMENT OF HOMELAND SECURITY
Passed through California Office of Emergency Services (CalOES) Disaster Grants - Public Assistance Grant 97.036 FEMA-4308-DR-CA - 1,286,054 Disaster Grants - Public Assistance Grant 97.036 FEMA-4482-DR-CA - 42,421 Total Public Assistance Grants - 1,328,475
TOTAL U.S. DEPARTMENT OF HOMELAND SECURITY - 1,328,475
TOTAL EXPENDITURES OF FEDERAL AWARDS $ 5,852,503 $ 40,823,757 #21..
- 1011 -
CITY OF MODESTO
NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
10 NOTE 1 – GENERAL
The accompanying Schedule of Expenditures of Federal Awards presents all the activity of all the federal award programs of the City of Modesto (the City) for the year ended June 30, 2021. The City reporting entity is defined in Note 1 to the City’s basic financial statements. Federal awards received directly from federal agencies as well as federal awards passed through other government agencies are included on the schedule.
NOTE 2 – BASIS OF ACCOUNTING & PRESENTATION
Consistent with the City’s method of filing federal financial reports, the accompanying Schedule of Expenditures of Federal Awards is prepared using the accrual basis method of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 U.S., Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance).
Therefore, some of the amounts presented in this schedule may differ from amounts presented in, or used in the preparation of the basic financial statements. The amounts reported in the accompanying Schedule of Expenditures of Federal Awards agree, in all material respects, to amounts reported within the City’s financial statements.
NOTE 3 – RELATIONSHIP TO FEDERAL FINANCIAL REPORTS
Amounts reported in the accompanying schedule agree with the amounts reported in the related periodic federal financial reports.
NOTE 4 – CATALOG OF FEDERAL DOMESTIC ASSISTANCE (CFDA)
The CFDA numbers included in the accompanying Schedule of Expenditures of Federal Awards were determined based on the program name, review of the grant or contract information and the Office of Management and Budget’s Catalog of Federal Domestic Assistance.
NOTE 5 – PASS-THROUGH ENTITY IDENTIFYING NUMBERS
When Federal awards were received from a pass-through entity, the Schedule of Expenditures of Federal Awards show, if available, the identifying number assigned by the pass-through entity. When no identifying number is shown, the City has either determined that no identifying number is assigned for the program or the City was unable to obtain an identifying number from the pass-through entity.
NOTE 6 – INDIRECT COST RATE LIMITATION
The City does not use the 10 percent de minimis indirect cost rate. #21..
- 1012 -
CITY OF MODESTO
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE YEAR ENDED JUNE 30, 2021
11 SECTION I – SUMMARY OF AUDITORS’ RESULTS
Financial Statements
Type of auditors' report issed: Unmodified
Internal control over financial reporting
● Material weakness identified? Yes X No
● Significant deficiency(ies) identified that are not
considered to be material weaknesses? Yes X No
Noncompliance material to financial statements noted? Yes X No Federal Awards
Internal control over major federal programs:
● Material weakness identified? Yes X No
● Significant deficiency(ies) identified that are not
considered to be material weaknesses? X Yes No
Noncompliance material to federal awards? X Yes No
X Yes No
Type of auditors' report issued on compliance for major Federal programs: Unmodified
Identification of major programs:
Name of Federal Program or Cluster
Emergency Solutions Grant Program
Home Investment Partnerships Program
Edward Byrne Memorial Justice Assistance Grant
Highway Planning and Construction Cluster
Disaster Grants - Public Assistance Grant
Dollar threshold used to distinguish
Between Type A and B programs: $1,224,713
Auditee qualified as a low risk auditee? Yes X No
CFDA Number:
14.218
97.036
Any audit findings disclosed that are required to be reported in accordance with 2CRF section 200.516(a).
21.023
20.205
14.231
14.239
16.738
CDBG - Entitlement Grants Cluster
Emergency Rental Assistance Program - American
Rescue Plan Act
#21..
- 1013 -
CITY OF MODESTO
SCHEDULE OF FINDINGS AND QUESTIONED COSTS (continued)
FOR THE YEAR ENDED JUNE 30, 2021
12 SECTION II – FINANCIAL STATEMENT FINDINGS
There are no financial statement findings to be reported in accordance with Government Auditing Standards.
SECTION III – FEDERAL AWARD FINDINGS
Reference: 2021-001
Type of Finding: Significant Deficiency
Category of Finding: Allowable Costs/Cost Principles
Federal Program Title(s) & CFDA Number(s): 21.023 – Emergency Rental Assistance Program – American Rescue Plan Act
Federal Agency: United States Department of the Treasury Passed-Through: State of California - Department of Finance Award Number: N/A
Award Year: Fiscal Year 2020/21
Criteria:
Per Uniform Guidance Section 200.303, it is the City’s responsibility to establish and maintain effective internal controls over Federal awards that provide reasonable assurance that the City is managing the Federal award in compliance with Federal statutes, regulations, and terms and conditions of the Federal award. The requirement ensures that only allowable costs are charged to federal programs.
Condition:
Per audit procedures performed over expenditures charged to the Emergency Rental Assistance Program (the Program), we noted an invoice that was incorrectly calculated and charged to the program. The service charge was calculated on a combined federal and state program total, which resulted in the City’s Program being overcharged.
The overcharge included costs that should have been allocated to the State funding programs as opposed to the federal program, resulting in questioned costs to the Program.
Cause:
Although the City has sufficient internal control processes over expenditures, including proper review, approval and recording; the overcharge was due to the vendor providing one invoice which combined charges for both federal and state funded programs that was overlooked when the invoice was submitted for payment to the federal program.
Effect:
The City is out-of-compliance with the allowable costs/cost principles requirement of the Program in that the federal program was overcharged for the fiscal year ended June 30, 2021.
Questioned Costs:
$68,738
Recommendations:
We recommend that management require vendors to split charges and/or implement additional reviews when processing payments for invoices with multiple funding sources.
Views of Responsible Officials and Planned Corrective Actions:
City staff will work with all vendors and sub-recipients to ensure that separate invoices are submitted to process payments for invoices with multiple funding sources. The vendors who hold multiple contracts with different funding sources we will require written confirmation that all invoices are associated with the correct funding source.
Additionally, all invoices will be reviewed by three entities before processing, program manager, fiscal review, and Community Development Manager approval.
#21..
- 1014 -
CITY OF MODESTO
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS FOR THE YEAR ENDED JUNE 30, 2020
13 SECTION II – FINANCIAL STATEMENT FINDINGS
Finding 2020-001 – Significant Deficiency
Accounts Payable
Criteria:
In accordance with accounting principles generally accepted in the United States of America, adequate internal controls should be implemented to ensure that all liabilities incurred by the City be recorded/accrued as of the fiscal reporting date and in the correct accounting reporting period.
Condition:
During our testing of accounts payable, we noted invoices for goods/services incurred prior to the end of the fiscal year were not accrued in the financial statements resulting in a material adjustment.
Cause of Condition:
Although the City’s accrual process resulted in the vast majority of the accruals being correctly accrued, the City unfortunately missed two material invoices which resulted in the material adjustment.
Effect of Condition:
The City’s financial statements required a material adjustment to ensure presentation in accordance with accounting principles generally accepted in the United States of America.
Recommendation:
We recommend that City put an additional level of review over the accrual process and implement additional testing over possible missed expenses and liabilities to ensure that the City captures and accrues all necessary invoices as of year-end.
Management’s Response:
Accounting Manager will meet with Accounts Payable staff on a bi-weekly basis after June 30th through the completion of the draft financials to identify invoices that should be accrued to the prior fiscal year. Accounts Payable staff will inform Accounting Manager of any large dollar invoices dated prior to the end of the fiscal year by a defined date to ensure Accounting Manager accrues the invoices properly. Additionally, prior to the start of the preparation of the financial reports, further review of all invoices processed subsequent to the end of the fiscal year will be completed to ensure the City captures and accrues all necessary invoices as of year-end.
Current Year Status:
Implemented.
SECTION III – FEDERAL AWARD FINDINGS
There were no federal award findings to be reported in accordance with the Uniform Guidance in the prior year. #21..
- 1015 -
Finance Department
P.O. Box 642
Modesto, California 95354
209.577.5200
Modestogov.com
Reference: 2021-001
Type of Finding: Significant Deficiency
Category of Finding: Allowable Costs/Cost Principles
Federal Program Title(s) & CFDA Number(s): 21.023 – Emergency Rental Assistance Program – American Rescue Plan Act
Federal Agency: United States Department of the Treasury Passed-Through: State of California - Department of Finance Award Number: N/A
Award Year: Fiscal Year 2020/21
While the City’s auditors performed audit procedures over expenditures charged to the Emergency Rental Assistance Program (the Program), it was noted that an invoice was incorrectly calculated and charged to the program. The service charge was calculated on a combined federal and state program total, which resulted in the City’s Program being overcharged. The overcharge included costs that should have been allocated to the State funding programs as opposed to the federal program, resulting in questioned costs to the Program.
Corrective Action Plan
City staff will work with all vendors and sub-recipients to ensure that separate invoices are submitted to process payments for invoices with multiple funding sources. The vendors who hold multiple contracts with different funding sources we will require written confirmation that all invoices are associated with the correct funding source. Additionally, all invoices will be reviewed by three entities before processing, program manager, fiscal review, and Community Development Manager approval.
Contact
Jessica Hill, Community Development Manager
209-577-5321
[email protected]
14 #21..
- 1016 -
CITY OF MODESTO
COUNCIL AGENDA REPORT
DATE OF MEETING:
March 8, 2022
Date: February 14, 2022
TO: Mayor and City Council
THROUGH: Joseph P. Lopez, City Manager
FROM: DeAnna Christensen, Director of Finance
SUBJECT: Local Transportation Funds FY 2021/22 for other purposes CONTACT: Maria Garnica, Accounting Manager, [email protected] 209-577-5249
DESCRIPTION:
Consider approving the submission of the City’s Local Transportation Funds Fiscal Year 2021-2022 Claim for Non-motorized and Other Purposes (bike lanes and pedestrian pathways and local streets and roads interest) in the amount of $503,707 to the Stanislaus Council of Governments (StanCOG) and amending the Fiscal Year 2021-22 Capital Improvement Program Budget in an amount not to exceed $503,707. (Funding Source:
Local Transportation Funds)
STRATEGIC PLAN ELEMENT:
This item is consistent with the following 2020-2025 Strategic Plan Area of Focus: Quality of Life and Governance and Service Delivery.
BACKGROUND:
Local Transportation Funds (LTF) for non-motorized purposes is an important source of revenue for bike trail construction and bike lane striping projects. These funds are derived from ¼ cent of the sales tax and have been used in the past as a local match for Federal funds and to support the development for the following bicycle and pedestrian projects:
100692 – Bike Lane Striping
100813 – Virginia Corridor Phase VII
100599 – TRRP Gateway Phase 2
101232 – TRRP Riverwalk Trail: Gateway to Legion
On November 30, 2021, the City was notified by StanCOG that in addition to the nonmotorized funds, the City will receive $238,275 from Local Streets and Roads interest. #22..
- 1017 -
City Council, March 8, 2022
Local Transportation Funds FY 2021/22 for other purposes
These funds are included as part of the claim and will be used for two eligible streets and roads projects listed below.
101383 - Median Installation on Oakdale Road from Lancey Drive to Celeste Drive 101384 - Pedestrian hybrid beacons at Standiford/Longbridge and Sylvan/Bridgeford DISCUSSION:
Every year, the Stanislaus Council of Governments (StanCOG) distributes within their jurisdiction approximately $24.5 million in LTF and State Transit Assistance funds as required by the Transportation Development Act (TDA). TDA funds are primarily intended for transit needs, however, the TDA mandates that 2% of the LTF funds be apportioned for non-motorized (bicycle and pedestrian) purposes.
On November 30, 2021, StanCOG apportioned $503,707 for non-motorized and other purposes for FY 2021-22 to be allocated to the City of Modesto. The City of Modesto was allocated $183,701 for the bicycle and pedestrian projects, $51,222 in non-motorized interest, and $238,275 for local streets and roads interest. (StanCOG resolution 20-53 is attached). In addition, the City will receive $30,509 in supplement funding from FY 2020-21. This funding will be used for the Virginia Corridor Phase VII project to continue development of the trail from Woodrow Avenue to the Hetch-Hetchy Trail (CIP 100813) The local streets and roads interest allocation will be used for two projects. The projects are Oakdale Road Improvements which will install a median on Oakdale Road from Lancey Drive to Celeste Drive (CIP 101383) and Sylvan/Standiford PHB's which will install pedestrian hybrid beacons at Standiford/Longbridge and Sylvan/Bridgeford (CIP 101384).
FISCAL IMPACT:
This claim for Local Transportation Funds for non-motorized purposes is the formal request by the City to StanCOG to release its apportionment of LTF funds for non-motorized projects, nonmotorized interest, and local streets and roads interest during the current fiscal year. In addition, the City is also claiming a total of $30,509 in supplemental LTF funds for FY2020-21, allocated to the City of Modesto under StanCOG’s resolution 21-11 (attached).
Apportionments for non-motorized 2% LTF
FY 2021-22 Award $183,701
Streets and Roads Interest $238,275
Nonmotorized Interest $51,222
FY 2020-21 Supplemental Award $30,509
Total $503,707
The revenue shall be allocated to the following CIP projects:
100813 – Virginia Corridor Phase VII $265,432
101383 – Oakdale Road Improvements $119,137
101384 – Sylvan/Standiford PHB's $119,138
Total $503,707
#22..
- 1018 -
City Council, March 8, 2022
Local Transportation Funds FY 2021/22 for other purposes
COMMITTEE RECOMMENDATION:
This item was presented to the Finance Committee on February 28, 2022 and was recommended to be forwarded to Council for approval.
CEQA/NEPA REQUIREMENTS:
This is an administrative action and therefore is not subject to a CEQA review.
RECOMMENDED COUNCIL ACTION:
Staff Recommendations:
Resolution approving the submission of the City’s Local Transportation Funds Fiscal Year 2021- 2022 Claim for Non-motorized and Other Purposes (bike lanes and pedestrian pathways and local streets and roads interest) in the amount of $503,707 to the Stanislaus Council of Governments (STANCOG).
Resolution amending the Fiscal Year 2021-2022 Capital Improvement Program Budget to fund project #100813, 101383, and 101384 (Virginia Corridor Phase VII, Oakdale Road Improvements, and Sylvan/Standiford PHB's) in an amount not to exceed $503,707 in transfers, revenue, and to budget expenditures to fund the projects, and authorizing the City Manager or his designee, to implement the provisions of this resolution.
Approved by:
DeAnna Christensen, Director of Finance
Joseph P. Lopez, City Manager
Attachments:
1. Resolution – 21/22 LTF Claim
2. Resolution – Budget Adjustment
3. FY21/22 LTF claim
4. StanCOG Resolution 20-53
5. StanCOG Resolution 21-11
#22..
- 1019 -
1 MODESTO CITY COUNCIL
RESOLUTION NO. 2022-
RESOLUTION APPROVING THE SUBMISSION OF THE CITY’S
LOCAL TRANSPORTATION FUNDS FISCAL YEAR 2021-2022 CLAIM
FOR NON-MOTORIZED AND OTHER PURPOSES (BIKE LANES AND
PEDESTRIAN PATHWAYS AND LOCAL STREETS AND ROADS
INTEREST) IN THE AMOUNT OF $503,707 TO THE STANISLAUS
COUNCIL OF GOVERNMENTS (STANCOG)
WHEREAS, the Stanislaus Council of Governments (StanCOG) has informed the City that Local Transportation Funds (LTF) funds have been apportioned by StanCOG for allocation to the City, and
WHEREAS, this Claim for Non-motorized Purposes is the formal request by the City to StanCOG to release its apportionment of LTF funds for non-motorized and other purposes during the current fiscal year, and
WHEREAS, LTF funds provide the required local match for Federal funds received for the purpose of non-motorized and other projects (bicycle and pedestrian pathways and local streets and roads interest), and
WHEREAS, two percent (2%) of all LTF funds available to StanCOG are designated to be used for bicycle and pedestrian projects, and
WHEREAS, on November 30, 2021, the City was notified by StanCOG that in addition to the non-motorized funds, the City will receive $238,275 from Local Streets and Roads interest, and
WHEREAS, the City has prepared its LTF Claim for Fiscal Year 2021-22 pursuant to Articles 4 and 8 of Chapter 4 of Part 11, Division 10 of the California Public Utilities Code, and WHEREAS, Council action authorizing submission of the claim is required by the rules and regulations governing the Transportation Development Act Funds, including StanCOG’s approved Transit Cost Sharing Procedures, before any LTF funding can be released to the City.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Modesto that it #22..
- 1020 -
2 hereby approves the submission of the City’s Local Transportation Funds Fiscal Year 2021-22 Claim for Non-motorized Purposes (bike lanes and pedestrian pathways and local streets and roads interest) in the amount of $503,707 to the Stanislaus Council of Governments (StanCOG).
BE IT FURTHER RESOLVED that the City Manager, or his designee, is hereby authorized to take the necessary steps to implement the provisions of this resolution.
The foregoing resolution was introduced at a regular meeting of the Council of the City of Modesto held on the 8th day of March 2022, by Councilmember _________, who moved its adoption, which motion being duly seconded by Councilmember ______, was upon roll call carried and the resolution adopted by the following votes:
AYES: Councilmembers:
NOES: Councilmembers:
ABSENT: Councilmembers:
ATTEST: ________________________________
DANA SANCHEZ, Interim City Clerk
(SEAL)
APPROVED AS TO FORM:
BY: _____________________________________
JOSE M. SANCHEZ, City Attorney
#22..
- 1021 -
1 MODESTO CITY COUNCIL
RESOLUTION NO. 2022-
RESOLUTION AMENDING THE FISCAL YEAR 2021-2022 CAPITAL
IMPROVEMENT PROGRAM BUDGET TO FUND PROJECT #100813,
101383, AND 101384 (VIRGINIA CORRIDOR PHASE VII, OAKDALE ROAD IMPROVEMENTS, AND SYLVAN/STANDIFORD PHB’S) IN AN
AMOUNT NOT TO EXCEED $503,707 IN TRANSFERS, REVENUE,
AND TO BUDGET EXPENDITURES TO FUND THE PROJECTS, AND
AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE, TO
IMPLEMENT THE PROVISIONS OF THIS RESOLUTION
WHEREAS, the Stanislaus Council of Governments (StanCOG) has informed the City that Local Transportation Funds (LTF) funds have been apportioned by StanCOG for allocation to the City, and
WHEREAS, this Claim for Non-motorized Purposes is the formal request by the City to StanCOG to release its apportionment of LTF funds for non-motorized and other purposes during the current fiscal year, and
WHEREAS, LTF funds provide the required local match for Federal funds received for the purpose of non-motorized and other projects (bicycle and pedestrian pathways and local streets and roads interest), and
WHEREAS, two percent (2%) of all LTF funds available to StanCOG are designated to be used for bicycle and pedestrian projects, and
WHEREAS, on November 30, 2021, the City was notified by StanCOG that in addition to the non-motorized funds, the City will receive $238,275 from Local Streets and Roads interest, and
WHEREAS, the City has prepared its LTF Claim for Fiscal Year 2021-22 pursuant to Articles 4 and 8 of Chapter 4 of Part 11, Division 10 of the California Public Utilities Code, and WHEREAS, Council action authorizing submission of the claim is required by the rules and regulations governing the Transportation Development Act Funds, including StanCOG’s approved Transit Cost Sharing Procedures, before any LTF funding can be released to the City, #22..
- 1022 -
2 and
WHEREAS, $503,707 is available to be budgeted into the Fiscal Year 2021-2022 Capital Improvement Program Budget, and
WHEREAS, staff identified three projects to receive funding this fiscal year: #100813 – Virginia Corridor Phase VII, #101383 – Oakdale Road Improvements, and #101384 – Sylvan/Standiford PHB’s, and
WHEREAS, the Fiscal Year 2021-2022 Capital Improvement Budget must be amended to increase Project 100813 – Virginia Corridor Phase VII, 101383 – Oakdale Road Improvements, and 101384 – Sylvan/Standiford PHB’s in a total amount of $503,707 to establish transfers, recognize revenue, and increase expenditures.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Modesto that it hereby approves the amendments of the Fiscal Year 2021-2022 Capital Improvement Program Budget to fund project 100813, 101383, and 101384 (Virginia Corridor Phase VII, Oakdale Road Improvements, and Sylvan/Standiford PHB’s) in an amount not to exceed $503,707 in transfers, revenue and to budget expenditures to fund the projects.
BE IT FURTHER RESOLVED that the City Manager, or his designee, is hereby authorized to take the necessary steps to implement the provisions of this resolution.
The foregoing resolution was introduced at a regular meeting of the Council of the City of Modesto held on the 8th day of March 2022, by Councilmember _________, who moved its adoption, which motion being duly seconded by Councilmember ______, was upon roll call carried and the resolution adopted by the following votes:
AYES: Councilmembers:
NOES: Councilmembers:
ABSENT: Councilmembers:
#22..
- 1023 -
3 ATTEST: ________________________________
DANA SANCHEZ, Interim City Clerk
(SEAL)
APPROVED AS TO FORM:
BY: _____________________________________
JOSE M. SANCHEZ, City Attorney
#22..
- 1024 -
TO: Stanislaus Council of Governments
1111 I Street, Suite 308
Modesto, CA 95354
FROM: Applicant: City of Modesto
Address: 1010 10th Street
City Modesto, CA Zip: 95354
Contact Person: Laurie Smith / Matthew Chewning Phone: 577-5347/577-5370 E-mail Address: [email protected] Fax: 209-491-5592 The City of Modesto hereby requests, in accordance with the Transportation Development Act and applicable rules and regulations, that its claim for other purposes be approved in the amount of for fiscal year 2021/22, to be drawn from the Local Transportation Fund.
When approved, please transmit this claim to the County Auditor for payment. Approval of the claim and payment by the County Auditor to this applicant is subject to such monies being on hand and available for distribution, and to the provisions that such monies will be used only in accordance with the terms contained in the approving resolution to the Stanislaus Council of Governments.
The claimant certifies that this Local Transportation Fund claim and the financial information contained therein is reasonable and accurate to the best of my knowledge and conforms with the requirements of the Transportation Development Act and applicable rules and regulations.
Submitted by:
Joseph P Lopez
Title: City Manager
Date:
StanCOG Board of Directors:
Date of approval:
Resolution #:
StanCOG Approving Authority
LOCAL TRANSPORTATION FUND
CLAIM FOR FISCAL YEAR 2021/22 OTHER PURPOSES
TRANSPORTATION DEVELOPMENT ACT
$ 503,706.12
#22..
- 1025 -
CLAIMANT: City of Modesto
1. Planning, Local
--PUC 99262/99402 $ -
2. Planning, Local Transit
_______________________ * $ -
3. Streets and Roads
--PUC 99400 (a) $ 238,274.85
4. Nonmotorized - 2% LTF funds
--PUC 99233.2/99234 $ 265,431.27
5. Nonmotorized - Other LTF funds
--PUC 99233.2/99234 $ -
6. TOTAL CLAIM $ 503,706.12
City of Modesto
Total LTF available to be claimed for other purposes:
FY 2020/21 Nonmotorized Supplemental $ 30,509
FY 2021/22 Nonmotorized Apportionment $ 183,701
Street & Roads Interest $ 238,274.85
Nonmotorized Interest $ 51,221.27
Total 2% Nonmotorized $ 503,706.12
Total available to be claimed at this time $ 503,706.12 * If you have proposed transit expenditures, please fill in the appropriate PUC Code.
This table is to be filled out by StanCOG staff
LOCAL TRANSPORTATION FUND
CLAIM FOR OTHER PURPOSES
TABLE 1
FY 2021/22
#22..
- 1026 -
CLAIMANT: City of Modesto
ACTUAL /
B P P PROJECT PROJECT 2019/20 2020/21 2021/22 ESTIMATED
I E L IN IN ACTUAL ESTIMATED CLAIM EXPENDITURES
K D A StanCOG's CITY/CO EXPENDITURES EXPENDITURES FOR 3 YEAR
E N BIKE BIKE PERIOD
ID PROJECT TITLE PLAN * PLAN *
100692 Bike Lane Striping X YES $0.00 $0.00 $1,830.24 $1,830.24 100813 Virginia Cooridor Phase VII X X YES $130,301.20 $285,568.84 $1,304,303.27 $1,720,173.31 100599 TRRP Gateway Phase 2 X X YES $0.00 $0.00 $0.00 $0.00 101232 TRRP Riverwalk Prjct: Gateway to Legion X X YES YES $0.00 $0.00 $189,759.00 $189,759.00 $0.00 $0.00 $0.00 $0.00
$130,301.20 $285,568.84 $1,495,892.51 $1,911,762.55
2017/18 2018/19 2019/20 2020/21 2021/22 5 Year
Actual Actual Actual Estimate Claim Total
Bicycle facilities $1,011.56 $155,089.23 $65,150.60 $142,784.42 $748,861.38 $1,112,897.18 Pedestrian facilities $771.29 $154,154.89 $65,150.60 $142,784.42 $747,031.14 $1,109,892.33 Preparation of Bicycle Plan $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $1,782.85 $309,244.11 $130,301.20 $285,568.84 $1,495,892.51 $2,222,789.51 YES
StanCOG 50% bicycle expenditure requirement: The 5 year bicycle expenditures must be 50% or greater. 2018/19 2019/20 2020/21 2021/22
Fiscal year beginning fund balance $1,311,450.67 $1,227,691.45 $1,326,784.30 $1,230,461.24 Plus fiscal year 2% nonmotorized claim $187,909.00 $184,975.00 $189,759.00 $0.00 Plus interest $37,575.89 $44,419.05 ($513.22) $0.00
Minus nonmotorized expenditures ($309,244.11) ($130,301.20) ($285,568.84) $0.00 $1,227,691.45 $1,326,784.30 $1,230,461.24 $1,230,461.24
1. Prior year(s) LTF carryover held by jurisdiction applied towards FY 2021/22 Nonmotorized claim (TABLE 4)
3. FY 2021/22 Nonmotorized 2% funds applied towards FY 2021/22 projects (must match Page 2, Line 4)
4. FY 2021/22 Other LTF funds applied towards Nonmotorized claim (must match Page 2, Line 5)
5. FY 2021/22 Nonmotorized 2% funds to be held at StanCOG
6. Total of lines #1 through #5 above
50.07%
49.93%
0.00%
DOES THIS CLAIM MEET THE MINIMUM 50% BICYCLE EXPENDITURE STANCOG PERFORMANCE STANDARD?
RECORD LTF FUNDS ONLY
FUNDS HELD IN RESERVE AT JURISDICTION
TABLE 2
FOR BIKE PROJECTS ONLY
BREAKDOWN BY PROJECT
BREAKDOWN BY CATEGORY
TOTAL FUNDS APPROPRIATED TO PROJECTS
Fiscal year ending fund balance
MODE
Expenditures
$1,230,461.24
NONMOTORIZED PROJECTS
(Use additional forms if necessary)
BRIEFLY DESCRIBE PROJECTS AND EXPENDITURES INCLUDED IN THE 3 YEAR PERIOD BELOW FY 2021/22
RECORD LTF FUNDS ONLY
TABLE 3
TOTAL AMOUNT OF BIKE/PED EXPENDITURES
% of Total
TABLE 4
$0
* SEE PAGE 3b FOR NONMOTORIZED REGULATIONS/POLICIES AND NOTES $0
$265,431.27
$1,495,892.51
$0
2. Interest earned on previously paid LTF funds held by jurisdiction (required by State law) (TABLE 4)
#22..
- 1027 -
CLAIMANT: City of Modesto
NONMOTORIZED REGULATION/POLICY REMINDERS:
D. All funds must be spent within five years of receipt. Over the five-year period shown in Table 3, at least 50% of funds must be spent for bicycle purposes. StanCOG will not allocate funds to any jurisdiction which is in violation of these policies.
NOTES:
* By StanCOG policy, all bike projects must appear in either StanCOG's Bicycle Action Plan, or in a City or County bicycle plan, to be eligible for LTF funding. ** Beginning with FY 2003/04, nonmotorized funds will only be allocated by StanCOG for specific projects.
If no project is identified, funds will be held in reserve at StanCOG for eventual use by that jurisdiction. other sources to fund bicycle safety education programs, but the funds shall not be used to fully fund the
NONMOTORIZED PROJECTS
FY 2021/22
(Continued)
C. State law allows a jurisdiction to use up to 5% of the amount available each year to supplement moneys from lanes (PUC 99234(h)).
salary of any one person (PUC 99233.3).
A. State law allows a jurisdiction to use LTF to update a Bicycle Action Plan once every five years (PUC 99234(h)).
B. State law allows a jurisdiction to use up to 20% of the amount available each year to restripe Class II bicycle
#22..
- 1028 -
CLAIMANT: City of Modesto
ANNUAL PROJECT AND FINANCIAL PLAN
PROJECTS FOR OTHER PURPOSES
FY 2021/22
(Use additional forms as necessary)
TABLE 5
Will this Project Will this Project Is this Project Total LTF add new use Federal consistent with Project Funds
travel lanes? Funds? the RTP Cost Utilized
Yes or No Yes or No Yes or No
No No Yes 965,800 119,137.43
No No Yes $ 1,105,900 119,137.42
TOTAL 2,071,700.00 238,274.85
1. LTF carryover applied towards FY 2021/22 Other Purposes
2. Interest earned on LTF carryover (required by State law)
3. FY 2021/22 apportionment applied towards FY 2021/22 Other Purposes
4. Total of Lines 1, 2 and 3 above
-
238,274.85
Project Title & Brief Description
Briefly describe all proposed projects and indicate proposed project expenditures 238,274.85
-
Project: 101384 (HSIPSL 5059(254)
–Pedestrian Hybrid Beacons at
Standiford/Longbridge and Sylvan/Bridgeford
Project: 101383 HSIPSL 5059(255) – Median on
Oakdale Road from Lancey Drive to Celeste
Drive)
#22..
- 1029 -
#22..
- 1030 -
#22..
- 1031 -
STANISLAUS COUNCIL OF GOVERNMENTS
RESOLUTION 21-11
APPROVING THE FY 2020/21
LOCAL TRANSPORTATION FUND (LTF) SUPPLEMENTAL APPORTIONMENT WHEREAS, the Stanislaus Council of Governments (StanCOG) is a Regional Transportation Planning Agency (RTPA) and a Metropolitan Planning Organization (MPO), pursuant to State and Federal designation; and
WHEREAS, StanCOG as the RTPA, is responsible for administering the Transpo1iation Development Act (TDA), including the app01iionment and allocation of the Local Transportation Fund (LTF); and
WHEREAS, StanCOG approved an LTF funding apportionment for FY 2020/21 of $24,500,000; and
WHEREAS, LTF funds of $28,584,753 were received for FY 2020/21; and WHEREAS, the excess LTF funds of $4,084,753 are available for a supplemental apportionment.
NOW, THEREFORE, BE IT RESOLVED, that based on the Rules and Regulations governing the Local Transp01iation Fund, the Policy Board of the Stanislaus Council of Governments approves the FY 2020/21 Local Transportation Fund supplemental apportionment as shown in the table below.
FY20/21 P rooose d S uoo I emen t a IA nnor f ionmen t s StanCOG Non-Motorized Regional
Jurisdictions Plannin~ (3%) (2%) Pro.iects Total
StanCOG $ 122,543 $ 122,543
Ceres $ 7,019 $ 7,019
County $ 16,735 $ 16,735
Hughson $ 1,137 $ 1,137
Modesto $ 30,509 $ 30,509
Newman $ 1,664 $ 1,664
Oakdale $ 3,374 $ 3,374
Patterson $ 3,369 $ 3,369
Riverbank $ 3,589 $ 3,589
Turlock $ 10,558 $ 10,558
Waterford $ 1,290 $ 1,290
Reserves $ 3,882,966 $ 3,882,966
Total $ 122,543 $ 79,244 $ 3,882,966 $ 4,084,753
#22..
- 1032 -
BE IT FURTHER RESOLVED, that the StanCOG Executive Director, or the Policy Board Chair of Stan COG, or his/her designee, is hereby authorized and empowered to execute in the name of Stanislaus Council of Governments all necessary documents to effectuate the provisions of this Resolution and to make administrative changes to implement and carry out the purposes specified in this Resolution.
NOW, THEREFORE, BE IT FURTHER RESOLVED, that the Executive Director, or his/her designee, is authorized to issue allocations, consistent with this Resolution, and issue disbursements to honor claimant invoices as funds become available.
The foregoing Resolution was introduced at a regular meeting of the Stanislaus Council of Governments, on the 20th day of October 2021. A motion was made and seconded to adopt the foregoing Resolution. Motion canied and the Resolution was adopted.
MEETING DATE: October 20, 2021
#22..
- 1033 -
ATTACHMENT 1
STANISLAUS COUNCIL OF GOVERNMENTS
FY 2020/21 LOCAL TRANSPORTATION FUND SUPPLEMENTAL APPORTIONMENT
CALCULATION FOR STANCOG PLANNING AND NONMOTORIZED FUNDS PROPOSED FOR OCTOBER 20, 2021
Supplemental apportionment
StanCOG 3% planning allocation apportionment- Proposed
Subtotal
Nonmotorized 2% (apportionment based on population) - Proposed Amount to be held in reserves for future transit projects 4,084,753
(122,543)
3,962,210
-----'-(7_9-'-,2_44-<...) ---
3,882,966
LTF NONMOTORIZED SUPPLEMENTAL APPORTIONMENT BASED ON POPULATION Nonmotorized
Supplemental
Jurisdiction Population * Population % Apportionment
Ceres 49,510 8.857% $ 7,019
County 118,046 21.118% $ 16,735
Hughson 8,017 1.434% $ 1,137
Modesto 215,201 38.499% $ 30,509
Newman 11,738 2.100% $ 1,664
Oakdale 23,807 4.259% $ 3,374
Patterson 23,764 4.251% $ 3,369
Riverbank 25,318 4.529% $ 3,589
Turlock 74,471 13.323% $ 10,558
Waterford 9,100 1.628% $ 1,290
Total 558,972 100.000% $ 79,244 <E
* May 2019 population estimates from the Dept. of Finance for 1/1/19 #22..
- 1034 -
Claimant TDA
Admin
StanCOG 245,000
StanRTA
CTSA
Ceres
County
Hughson
Modesto
Newman
Oakdale
Patterson
Riverbank
Turlock
Waterford
Reserves
Total 245,000
STANISLAUS COUNCIL OF GOVERNMENTS
TRANSPORTATION DEVELOPMENT ACT (TDA) APPORTIONMENTS
FY 2020/21
AS PROPOSED FOR POLICY BOARD ADOPTION ON OCTOBER 20, 2021 Transp. Bike/ Transit
Planning Ped
857,543
4,670,000
877,041
48,684
116,076 3,616,563
7,884
211 ,610 8,963,230
11 ,542
23,409
23,367
24,895
73,229 2,057,346
8,948
857,543 549,644 20,184,180
Regional Regional Total
Transit Projects LTF
15,000 1,117,543
4,670,000
877,041
48,684
3,732,639
7,884
1,472,555 10,647,395
11,542
23,409
23,367
24,895
998,905 3,129,480
8,948
4,261,926 4,261,926
2,486,460 4,261,926 28,584,753
FY 2020/21 L TF Estimate 24,500,000
Supplemental 4,084,753
Total TDA Receipts 28,584,753
+
+
+
+
+
+
+
+
+
+
+
+
+
+
https://stancog-my.sharepoint com/personal/smora_stancog_org/Documents/Desktop/STAFF REPORTS COMPLETED/FY21-22/Attachment 2 LTF and STA Apportionment for FY 2020-21 Attachment 2
Total Total
STA TDA
1,117,543
4,670,000
877,041
48,684
51,408 3,784,047
7,884
5,889,413 16,536,808
11,542
23,409
23,367
24,895
21,858 3,151,338
8,948
4,261,926
5,962,679 34,547,432
#22..
- 1035 -
CITY OF MODESTO
COUNCIL AGENDA REPORT
DATE OF MEETING:
March 8, 2022
Date: January 11, 2022
TO: Mayor & City Council
THROUGH: Joseph P. Lopez, City Manager
FROM: Christina Alger, Director of Human Resources
SUBJECT: Section 115 Trust
CONTACT: Christina Alger, Director of Human Resources
[email protected], 209-571-5126
DESCRIPTION:
Consider approving a Resolution authorizing participation in the PARS Post-Employment Benefits Trust Program to be administered by Public Agency Retirement Services (PARS) and U.S. Bank, appointing the City Manager or his designee as the City’s Plan Administrator. (Funding Source: Various Funds)
STRATEGIC PLAN ELEMENT:
This item supports the City of Modesto 2020-2025 Strategic Plan focus of Governance and Service Delivery under Goal H: Achieve Financial Sustainability.
BACKGROUND:
In 2012, the Government Accounting Standards Board (GASB) issued Statement No. 68, Accounting and Financial Reporting for Pensions. GASB 68 requires that governmental employers that sponsor Defined Benefit plans (i.e., CalPERS) must recognize a net pension liability (unfunded accrued liability) on their balance sheet. This is the difference between the City’s total pension liability (actuarial accrued liability) and actual plan assets. GASB 68 became effective for fiscal years starting after June 15, 2014.
In 2015, the Government Accounting Standards Board (GASB) issued Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions. GASB 75 requires the City to report costs and obligations for post-employment healthcare and other post-employment benefits (called “OPEBs”) much like the current accounting requirement to report pension obligations. Similar to GASB 68, the City must also report its net OPEB liability (difference between the total OPEB liability and assets accumulated in an irrevocable trust) on its Financial Statements. GASB 75 (which replaces the requirements of GASB 45) became effective for fiscal years beginning after June 15, 2017. #23..
- 1036 -
City Council, March 8, 2022
Section 115 Trust
In an effort to help public agencies address and manage their GASB 68 and 75 liabilities, PARS has sought and received approval from the IRS in the form of a Private Letter Ruling on its PostEmployment Benefits Trust Program. PARS has assembled leading professionals to provide the City with the necessary services required under one program to pre-fund both pension and retiree health care liabilities. This would provide the City with an alternative to CalPERS that will allow for greater local control over assets, investment by a professional fund management team selected and monitored by the City, with contributions and distributions from the trust determined at the discretion of the City.
The program has been established as a multiple employer trust so that public agencies regardless of size can join the program to receive the necessary economies of scale to keep administrative fees low and avoid any setup costs. To properly offset OPEB liabilities, funds must be set aside in an exclusive benefit, irrevocable trust that cannot be accessed by creditors in order to be accounted for as assets to reduce the liabilities on the City’s financial statements.
The trust permits the City, under federal and state law, to invest in a more diversified array of investments to maximize investment returns long term and reduce the City’s liabilities.
On January 11, 2022, by Resolution No. 2022-033, Council approved the contract between the City and PARS to establish the Section 115 Trust. Council also approved some initial funding for both a Pension and an OPEB Trust.
DISCUSSION:
Council approved contributing $1,000,000 to a pension trust from the Employee Benefits Fund (EBF) reserves. Our current EBF Reserves is estimated at $6.3 million. This reserve amount is not final until the City’s financials are finalized for Fiscal Year 2020-21. Additional funds being held for deposit into a pension trust include approximately $120,651, based on the 50% of the Modesto Confidential Management Association (MCMA) employee contribution that was established as part of recent concessions in Fiscal Year 2020-21 and ongoing leave bank purchase transactions for MCMA employees. In addition to these funds, the contracts for Fire Services with the City of Oakdale, Oakdale Fire District, and City of Ceres provide cost recovery for ongoing pension obligations.
In addition to the above funds, the City adopted a policy for excess funds realized during a fiscal year. This policy states that one third of the excess would be deposited into the General Fund Reserve, one third would be dedicated to Deferred Maintenance, and one third would be utilized for Pension costs. The City estimated an excess General Fund revenue as the Fiscal Year 2020-21 closed, and requested the amount of $1,000,000 be deposited into the newly established pension trust and $900,000 to be deposited into the newly established OPEB trust.
Staff recommended total City contributions for the pension 115 Trust to be $2,345,594 and total contributions for the OPEB 115 Trust would be $1,387,280.
With the approval and full execution of the contract, the next step required to establish and fund the Section 115 Trust accounts is to adopt a resolution to identify the Plan Administrator and allow PARS to open and place funds in the accounts. The proposed resolution will appoint the City Manager, or his designee, as the City’s Plan Administrator.
FISCAL IMPACT:
There is no Fiscal impact to the adoption of the resolution. All costs were identified within the approval of the contract during the January 11, 2022 regular Council meeting. #23..
- 1037 -
City Council, March 8, 2022
Section 115 Trust
COMMITTEE RECOMMENDATION:
This agenda item was not reviewed by a committee.
RECOMMENDED COUNCIL ACTION:
Staff Recommendations:
Resolution approving the adoption of the Public Agencies Post-Employment Benefits Trust administered by Public Agency Retirement Services (PARS), appointing the City Manager or his designee as the Plan Administrator and authorizing the City Manager or his designee to execute the documents to implement the Program.
Approved by:
Christina Alger, Director of Human Resources
Joseph P. Lopez, City Manager
Attachments:
1. Resolution
#23..
- 1038 -
MODESTO CITY COUNCIL
RESOLUTION NO. 2022-?
RESOLUTION APPROVING THE ADOPTION OF THE PUBLIC AGENCIES
POST-EMPLOYMENT BENEFITS TRUST ADMINISTERED BY PUBLIC
AGENCY RETIREMENT SERVICES (PARS) AND APPOINTING THE CITY
MANAGER OR HIS DESIGNEE AS PLAN ADMINISTRATOR AND
AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO EXECUTE
THE DOCUMENTS TO IMPLEMENT THE PROGRAM
WHEREAS, PARS has made available the PARS Public Agencies PostEmployment Benefits Trust (the “Program”) for the purpose of pre-funding pension obligations and/or OPEB obligations; and
WHEREAS, the City of Modesto (“City”) is eligible to participate in the Program, a tax-exempt trust performing an essential governmental function within the meaning of Section 115 of the Internal Revenue Code, as amended, and the Regulations issued there under, and is a tax-exempt trust under the relevant statutory provisions of the State of California; and
WHEREAS, the City’s adoption and operation of the Program has no effect on any current or former employee’s entitlement to post-employment benefits; and WHEREAS, the terms and conditions of post-employment benefit entitlement, if any, are governed by contracts separate from and independent of the Program; and WHEREAS, the City’s funding of the Program does not, and is not intended to, create any new vested right to any benefit nor strengthen any existing vested right; and WHEREAS, the City reserves the right to make contributions, if any, to the Program.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Modesto that it hereby adopts the PARS Public Agencies Post-Employment Benefits Trust, #23..
- 1039 -
effective March 8, 2022; and the City Council hereby appoints the City Manager or his designee as City’s Plan Administrator for the program; and the City’s Plan Administrator is hereby authorized to execute the PARS legal and administrative documents on behalf of the City and to take whatever additional actions are necessary to maintain the City’s participation in the Program and to maintain compliance of any relevant regulation issued or as may be issued; therefore, authorizing him/her to take whatever additional actions are required to administer the City’s Program.
The foregoing resolution was adopted at a regular meeting of the Council of the City of Modesto held on the 8th day of March 2022, by Councilmember ?, who moved its adoption, which motion being duly seconded by Councilmember ?, was upon roll call carried and the resolution adopted by the following vote:
AYES: Councilmembers: ?
NOES: Councilmembers: ?
ABSENT: Councilmembers: ?
ATTEST:
DANA SANCHEZ, Interim City Clerk
(SEAL)
APPROVED AS TO FORM:
BY: ___________________________________
JOSE M. SANCHEZ, City Attorney
#23..
- 1040 -
CITY OF MODESTO
COUNCIL AGENDA REPORT
DATE OF MEETING:
March 8, 2022
Date: February 16, 2022
TO: Mayor and City Council
THROUGH: Joseph P. Lopez, City Manager
FROM: Laurie A. Smith, Director of Parks, Recreation & Neighborhoods SUBJECT: Agreement for Backflow Testing and Emergency Repairs CONTACT: Kelly Gallagher, Park Operations Manager, [email protected], (209)342-2270
DESCRIPTION:
Consider approving the Award of Bid and Agreement for Backflow Prevention Testing Services to Dan Ely Backflow Services, Turlock, CA for a two (2) year Agreement with three (3) one-year extension options, for an estimated annual amount of $25,000 and a total amount not to exceed $125,000 over five years. (Funding Source: General Fund, Airport and Centre Plaza Funds) STRATEGIC PLAN ELEMENT:
This item supports the City of Modesto 2020-2025 Strategic Plan focus on Quality of Life, Goal D: provide safe, efficient, and reliable infrastructure through proactive community investment, maintenance and sustainability efforts.
BACKGROUND:
The State of California Health and Safety Code requires annual testing of each backflow prevention assembly owned and operated by the City. Pursuant to Modesto Municipal Code 11-
1.113 and California Health and Safety Codes 116800-116820, all backflow prevention assemblies are to be tested annually at the owner/water (City’s) account holder’s expense.
An informal bid for Backflow Prevention Testing Services was issued in 2016. At the time, it was estimated services would not exceed $10,000 annually. In 2018, a purchasing agreement for five years was executed under the City Manager’s authority, in an amount not to exceed $49,000.
On April 27, 2021, by Resolution 2021-160, Council approved an amendment to the Agreement to increase the amount of funding by $13,000 from $49,000 to a new total of $62,000 for the last year of the five-year agreement.
#24..
- 1041 -
City Council, March 8, 2022
Purchase Agreement for Backflow Prevention Testing Services
On October 12, 2021, by Resolution 2021-409, Council approved the second amendment increasing the agreement amount by $3,600 to a new total of $65,600 and extending the term of the agreement to April 30, 2022. This amendment was needed to allow enough time for the Request for Bids process.
The current five-year agreement for Backflow Prevention Testing Services expires on April 30, 2022. It is anticipated the new agreement will begin May 1, 2022.
DISCUSSION:
The City Manager authorized the Purchasing Manager to issue a formal Request for Bids (RFB) for backflow prevention testing services. The Purchasing division issued RFB 2122-03, for Backflow Prevention Testing Services on November 5, 2021. Seventeen (17) vendors downloaded the RFB.
Bids were formally due to the City Clerk’s office on December 28, 2021, by 11:00 a.m. One (1) bid was received by Dan Ely Backflow Services, Turlock, CA and was selected as the most responsive and responsible bidder. Purchasing staff and Park Operations staff evaluated the bid.
The Purchasing and Parks Operations divisions recommended the award of bid be forwarded to the City Council for approval of Backflow Prevention Testing services to Dan Ely Backflow Services, Turlock, CA.
Modesto Municipal Code Section 8-3.203 generally requires all purchases, which meet or exceed $50,000 for material, equipment, or contractual services to follow the formal bid procedures. An award of bid and agreement for Backflow Prevention Testing Services for Parks, Recreation & Neighborhoods department use to Dan Ely Backflow Services, Turlock, CA, conforms to the Modesto Municipal Code because the City complied with the formal bid procedures and Dan Ely Backflow Services was the lowest responsive and responsible bidder.
FISCAL IMPACT:
The following summarizes compensation paid for the current agreement ending April 30, 2022.
Department 2017 2018 2019 2020 2021 Total
Park Ops 10,350 10,525 10,900 10,525 12,546 54,846
Modesto Centre Plaza - 540 540 480 225 1,785
Public Works 1,375 350 240 400 425 1,900
Modesto Fire Dept. 375 375 375 375 400 2,790
Total 12,100 11,790 12,055 11,780 13,596 $61,321
The following summarizes the proposed compensation for the new agreement. This includes increases for the Consumer Price Index and for future development requiring backflow installations and maintenance.
#24..
- 1042 -
City Council, March 8, 2022
Purchase Agreement for Backflow Prevention Testing Services
Department Annual 5-Years
Park Ops 19,500 97,500
Other Depts 1,500 7,500
Emergency Repairs (Labor Only) 4,000 20,000
TOTAL 25,000 125,000
COMMITTEE RECOMMENDATION:
This item was approved by the Finance Committee on February 14, 2022, which recommended it be forwarded to Council.
RECOMMENDED COUNCIL ACTION:
Staff Recommendations:
Resolution approving the Award of Bid and Agreement for Backflow Prevention Testing Services to Dan Ely Backflow Services, Turlock, CA for a two (2) year Agreement with three (3) one-year extension options, for an estimated annual amount of $25,000 and a total amount not to exceed $125,000 over five years, and authorizing the City Manager, or his designee, to execute the Agreement.
Approved by:
Laurie A. Smith, Director of Parks, Recreation &
Neighborhoods
Joseph P. Lopez, City Manager
Attachments:
1. Resolution
2. Backflow Prevention Testing Services Agreement - Dan Ely Backflow Services
3. Financial Interest Disclosure
4. RFB 2122-03 Backflow Testing and Emergency Repairs
5. Bid Submittal – Dan Ely Backflow Services
#24..
- 1043 -
03/08/2022/PRND/SMITH 1 2022-?
MODESTO CITY COUNCIL
RESOLUTION NO. 2022-
RESOLUTION APPROVING THE AWARD OF BID AND AGREEMENT FOR
BACKFLOW PREVENTION TESTING SERVICES TO DAN ELY BACKFLOW SERVICES, TURLOCK, CA FOR A TWO (2) YEAR AGREEMENT WITH THREE (3) ONE-YEAR EXTENSION OPTIONS, FOR AN ESTIMATED ANNUAL AMOUNT OF $25,000 AND A TOTAL AMOUNT NOT TO EXCEED $125,000
OVER FIVE YEARS, AND AUTHORIZING THE CITY MANAGER, OR HIS
DESIGNEE, TO EXECUTE THE AGREEMENT
WHEREAS, the State of California Health and Safety Code requires annual testing of backflow prevention assemblies owned and operated by the City; and WHEREAS, pursuant to Modesto Municipal Code 11-1.113 and California Health and Safety Codes 116800-116820, all backflow prevention assemblies are to be tested annually at the owner/water (City’s) account holder’s expense; and WHEREAS, in 2016, an informal bid for Backflow Prevention Testing Services was issued and it was estimated services would not exceed $10,000 annually; and WHEREAS, in 2018, a purchasing agreement for five years was executed under the City Manager’s authority in an amount not to exceed $49,000 over five years; and WHEREAS, on April 27, 2021, by Reso. 2021-160, Council approved an amendment to the Agreement to increase the amount of funding by $13,000 from $49,000 to a new total of $62,000 for the last year of the five-year agreement; and WHEREAS, on October 12, 2021, by Reso. 2021-409, Council approved the Second Amendment increasing the agreement amount by $3,600 to a new total of $65,600 and extended the term of the agreement to April 30, 2022, to allow enough time for the Request for Bids process; and
#24..
- 1044 -
03/08/2022/PRND/SMITH 2 2022-?
WHEREAS, the City Manager authorized the Purchasing Manager to issue a formal Request for Bids (RFB) for Backflow Prevention Testing Services on November 5, 2021; and
WHEREAS, seventeen (17) vendors downloaded the RFB; and WHEREAS, bids were formally due to the City Clerk’s office on December 28, 2021 and one bid was received; and
WHEREAS, staff evaluated the bid and recommends the award of bid to Dan Ely Backflow Services, Turlock, CA; and
WHEREAS, Modesto Municipal Code Section 8-3.203 generally requires all purchases, which meet or exceed $50,000 for material, equipment or contractual services to follow formal bid procedures; an award of bid and agreement for Backflow Prevention Testing Services for Parks, Recreation & Neighborhoods department use to Dan Ely Backflow Services, Turlock, CA, conforms to the Modesto Municipal Code because the City complied with the formal bid procedures and Dan Ely Backflow Services was the lowest responsive and responsible bidder.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Modesto that it hereby approves the Award of Bid and Agreement for Backflow Prevention Testing Services to Dan Ely Backflow Services, Turlock, CA for a two-year Agreement with three (3) one-year extension options, for an estimated annual amount of $25,000 and a total amount not to exceed $125,000 over five years.
BE IT FURTHER RESOLVED that the City Manager, or his designee, is hereby authorized to execute the Agreement in a form approved by the City Attorney. #24..
- 1045 -
03/08/2022/PRND/SMITH 3 2022-?
The foregoing resolution was introduced at a regular meeting of the Council of the City of Modesto held on the 8th day of March, 2022, by Councilmember ?, who moved its adoption, which motion being duly seconded by Councilmember ?, was upon roll call carried and the resolution adopted by the following vote:
AYES: Councilmembers:
NOES: Councilmembers:
ABSENT: Councilmembers:
ATTEST:
DANA SANCHEZ, Interim City Clerk
(SEAL)
APPROVED AS TO FORM:
BY: ___________________________
JOSE M. SANCHEZ, City Attorney
#24..
- 1046 -
AGREEMENT
DAN ELY BACKFLOW SERVICES
FOR BACKFLOW TESTING AND EMERGENCY REPAIRS
This Agreement, made and entered into in the City of Modesto, State of California, this 8th day of March, 2022, by and between the City of Modesto, a municipal corporation of the State of California, hereinafter called CITY, and Dan Ely Backflow Services hereinafter called CONTRACTOR.
W I T N E S S E T H:
WHEREAS, the Modesto City Council adopted Resolution No. 2022-_______ authorizing the award of bid and contract for the furnishing of BACKFLOW TESTING AND EMERGENCY REPAIRS to Dan Ely Backflow Services,
attached hereto as Exhibit “A” and made a part hereof, and WHEREAS, the CONTRACTOR provided a responsive and responsible submittal to RFB 2122-03 for BACKFLOW TESTING AND EMERGENCY REPAIRS that best meets CITY needs, and
WHEREAS, the CONTRACTOR shall provide services to CITY as defined in the “Submittal”, attached hereto as Exhibit “B” and made a part hereof, and WHEREAS, the CITY and CONTRACTOR shall enter into an agreement for the furnishing of BACKFLOW TESTING AND EMERGENCY REPAIRS, as described in RFB 2122-03, attached hereto as Exhibit “C” and made a part hereof, and NOW, THEREFORE, the parties hereto mutually agree as follows:
1. SCOPE OF WORK.
a. CONTRACTOR shall furnish BACKFLOW TESTING AND
EMERGENCY REPAIRS, in strict accordance with the conditions of the complete Contract. #24..
- 1047 -
b. CONTRACTOR shall do and perform the work in a professional and businesslike manner under the direction of and to the satisfaction of the CITY. c. CONTRACTOR shall perform its duties under this Agreement in accordance with the standard(s) of care prevailing in its industry. d. CONTRACTOR shall maintain proper insurance with the CITY for the duration of the contract.
e. CONTRACTOR shall maintain a CITY business license for the duration of the contract.
f. CONTRACTOR shall furnish the services at the following agreement rates, estimated amount of $ 25,000 and a total amount not to exceed $125,000.
AGREEMENT PRICING
PER SINGLE UNIT IN EACH SIZE CATEGORY
PAYMENT OF PREVAILING WAGES REQUIRED
Manufacturer/Type over 90% are Febco, however the City may contain devices from other manufacturers such as Ames, Rain Bird, Watts and Wilkins List Unit Price (Per Test)
Estimated
Annual Quantity:
6 +/- 50 +/- 65 +/- 130 +/- 13 +/- 50 +/- 6 +/-
Size: ¾" 1" 1-½" 2" 3" 4" 6"
Double Check
(DC) $45.00 $45.00 $45.00 $45.00 $45.00 $45.00 $45.00
Pressure Vaccum
$45.00 $45.00 $45.00 $45.00 $45.00 $45.00 $45.00
#24..
- 1048 -
Breaker (PVB)
Reduce Pressure
(RP) $45.00 $45.00 $45.00 $45.00 $45.00 $45.00 $45.00
Please provide your parts markup percentage 10% (NTE 10%).
Hourly rate for emergency repairs $75.00.
Modesto Fire Department
PAYMENT OF PREVAILING WAGES REQUIRED
Manufacturer / Type over 90% are Febco, for Parts/Materials however the City may contain devices from other manufacturers such as Ames, Rain, Watts and Wilkins List Unit Price (Per Test)
Estimated
Annual
Quantity:
2 1 2 9 1
Size: ¾" 1-1/4” 1-½" 2" 8”
Double Check
(DC) $45.00 $45.00 $45.00 $45.00 $45.00
Double Check
Detector
Assembly
(DCDA) $45.00 $45.00 $45.00 $45.00 $45.00
Pressure
Vacuum
Breaker (PVB) $45.00 $45.00 $45.00 $45.00 $45.00
#24..
- 1049 -
Reduce
Pressure (RP) $45.00 $45.00 $45.00 $45.00 $45.00
PRICING SCHEDULE
City Business/Delivery License No.1162908 Expiration Date: __________ Contractor License No. N/A Expiration Date: N/A
DIR Registration No. PW-LR-1000844993 Expiration Date: 6/1/2022 Stated pricing is subject to (_2 %) cash discount if invoice is paid within 15 days after acceptance of service.
THE PAYMENT OF PREVAILING WAGES IS REQUIRED.
2. PREVAILING WAGES:
The payment of prevailing wages is required for maintenance under this agreement and all provisions of Section 7.04 of the General Provisions contained with the City standards shall apply.
DIR Project ID# 402556
3. CITY CONTACT:
Kathy Crandall, Buyer Ph: (209) 577-5420
Changes of a contractual or business nature shall be effected only by written change to the contract, issued by the City of Modesto, Purchasing Division.
4. TERM OF CONTRACT:
The term of the contract shall be for a period of two (2) years, with three (3) one-year extension options.
Year 1: May 1, 2022 through April 30, 2023
#24..
- 1050 -
Year 2: May 1, 2023 through April 30, 2024
Year 3: May 1, 2024 through April 30, 2025
Year 4: May 1, 2025 through April 30, 2026
Year 5: May 1, 2026 through April 30, 2027
This Agreement may be renewed for three (3) additional one-year terms by mutual, written agreement of the parties. Such renewal shall be in written form. Price will remain firm for the first two (2) years of the contract. Price increases for subsequent contract years three (3) through five (5) shall not exceed the Consumer Price Index (CPI) in any one contract year and shall be negotiated through the Purchasing Division. Request for price increases shall be submitted by CONTRACTOR in writing, sixty (60) days prior to the annual anniversary date of the contract to be effective for the subsequent year. Price adjustments for diesel fuel fluctuations may be considered. A thirty (30) day written notice is required for consideration. Any price adjustment shall be negotiated through the Purchasing Division, and approved at the sole discretion of the City. The index used to determine price adjustments on diesel fuel shall come from the Energy Information Administration:
5. LIABILITY INSURANCE:
CONTRACTOR shall provide at its own expense and maintain at all times the following insurance with insurance companies licensed in the State of California and shall provide evidence of such insurance to CITY as may be required by the Risk Manager.
The policies or certificates thereof shall provide that, thirty (30) days prior to cancellation or material change in the policy, notices of same shall be given to the Risk Manager of #24..
- 1051 -
CITY by registered mail, return receipt requested, for all of the following stated insurance policies.
(a) Workers' Compensation - In compliance with the statutes of the State of California, plus employer's liability with a minimum limit of liability of $1,000,000
(b) General Liability insurance with a minimum limit of liability per occurrence of $1,000,000 and $2,000,000 aggregate for bodily injury and property damage. If Commercial General Liability Insurance or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice the required occurrence limit. This insurance shall indicate on the certificate of insurance the following coverages and indicate the policy aggregate limit applying to: premises and operations; broad form contractual; independent Contractors and subcontractors; products and completed operations as applicable.
(c) Automobile Liability insurance with a minimum limit of liability per occurrence of $1,000,000 for bodily injury and property damage.
This insurance shall cover any automobile for bodily injury and property damage.
period of one year.
Waiver of Subrogation – CONTRACTOR hereby grants to CITY a waiver of any right to subrogation which any insurer of said CONTRACTOR may acquire against the CITY by virtue of the payment of any loss under such insurance. CONTRACTOR agrees to obtain #24..
- 1052 -
any endorsement that may be necessary to affect this waiver of subrogation, but this provision applies regardless of whether or not the CITY has received a waiver of subrogation endorsement from the insurer.
Additional Insured Status-endorsement – The City of Modesto its officers, officials, employees, agents and volunteers are to be covered as additional insureds on the CGL policy with respect to liability arising out of work or operations performed by or on behalf of the CONTRACTOR including materials, parts, or equipment furnished in connection with such work or operations. General liability coverage can be provided in the form of an endorsement to the CONTRACTOR’S insurance (at least as broad as ISO Form CG 20 10 11 85 or if not available, through the addition of both CG 20 10, CG 20 26, CG 20 33, or CG 20 38; and CG 20 37 if a later edition is used).
If at any time any of said policies shall be unsatisfactory to CITY, as to form or substance, or if a company issuing such policy shall be unsatisfactory to CITY, CONTRACTOR shall promptly obtain a new policy, submit the same to Risk Manager of CITY for approval and submit a certificate thereof as herein above provided. Upon failure of CONTRACTOR to furnish, deliver or maintain such insurance and certificates as above provided, this Agreement, at the election of CITY, may be forthwith declared suspended, or terminated.
Failure of CONTRACTOR to obtain and/or maintain any required insurance shall not relieve CONTRACTOR from any liability under this Agreement, nor shall the insurance requirements be construed to conflict with or otherwise limit the obligations of CONTRACTOR concerning indemnification. CITY, and its agents, officers, officials, #24..
- 1053 -
employees, and volunteers shall be named as an additional insured on all insurance polices required herein, except Workers’ Compensation, Professional Liability and Financial Institution’s Fidelity.
The Workers’ Compensation insurer shall agree to waive all rights of subrogation against CITY, its agents, officers, employees, and volunteers for losses arising from work performed by CONTRACTOR for CITY. CONTRACTOR’S insurance policy(ies) shall include a provision that the coverage is primary as respects CITY; shall include no special limitations to coverage provided to additional insured; and, shall be placed with insurer(s) with acceptable Best’s rating of A:VII or with approval of the Risk Manager of CITY. The CONTRACTOR must deliver certificates evidencing existence of the insurance to the City prior to the time contract is signed.
CONTRACTOR agrees to provide CITY with a separate endorsement evidencing proof of City’s additional insured status required herein (both general and automobile liability) as well as a separate endorsement for the Workers’ Compensation insurer’s waiver of all subrogation rights as stated above. Every endorsement shall identify the policy number.
CONTRACTOR shall provide CITY with separate an endorsement evidencing proof of the CITY’s additional insured status as to the general liability insurance policy. In addition, CONTRACTOR shall provide CITY with a Workers Compensation subrogation waiver by way of a separate endorsement. All endorsements referenced above must include the applicable policy number.
For any claims related to this project, the CONTRACTOR’S insurance coverage shall be primary insurance as respects the Entity, its agents, officers, officials, employees, and volunteers. Any #24..
- 1054 -
insurance or self-insurance maintained by the Entity, its agents, officers, officials, employees, or volunteers shall be excess of the CONTRACTOR’S insurance and shall not contribute with it.
CONTRACTOR further agrees that the amount of insurance required may from time to time be adjusted by CITY’s Risk Manager and CONTRACTOR agrees to file a new insurance certificate with CITY’s City Clerk evidencing the new amounts after a thirty (30) day written notice from CITY’s Risk Manager.
6. PAYMENT:
CONTRACTOR shall invoice CITY on a monthly basis. All invoices shall be paid in full within thirty (30) days after completion and acceptance of the service by the City, and receipt of a properly prepared invoice in duplicate, subject to cash discounts allowed and stated in this proposal document. The City is exempt from payment of Federal Excise Tax, and all invoices shall be exclusive of such excise tax.
Invoice to: City of Modesto
Attn: Accounts Payable
P.O. Box 642
Modesto, CA 95353
[email protected]
CONTRACTOR shall establish a separate billing account number for each CITY department and/or division.
At a minimum invoice shall state the following:
Reference Agreement #216569
City department/division name and address
Billing period
Unit price, extended price, sales tax and total
7. INDEMNITY:
The CONTRACTOR shall hold the CITY, its agents, officers, employees, and volunteers, harmless from and save, defend and indemnify them against any and all claims, #24..
- 1055 -
losses, liabilities, judgments or damages from every cause, including but not limited to injury to person or property or wrongful death, including reasonable costs and expenses of defense of any judicial or administrative action, arising directly or indirectly out of any negligent or intentional act or omission of CONTRACTOR, or its agents, officers, employees, or volunteers relating to or during the performance of its obligations under this Agreement.
CONTRACTOR’S obligation to defend, indemnify, and hold the CITY, its agents, officers, and employees harmless under the provisions of this paragraph is not limited to or restricted by any requirement in this Agreement for CONTRACTOR to procure and maintain a policy of insurance.
In the indemnity clause contained herein CONTRACTOR agrees to defend, indemnify and hold CITY harmless from the negligence of its employees, among other risks. With reference to the foregoing, the parties agree that all risk of loss, including but not limited to damages, property losses and defense of third party suits, arising out of or relating to the operation of CITY owned vehicles by CONTRACTOR’S employees is apportioned to CONTRACTOR in accordance with the provisions contained in Indemnity 6.
8. ARBITRATION:
Any dispute or claim arising or related to this Agreement, its performance, breach, or interpretation (including issues about its validity or enforceability), shall be exclusively, (except as approved below) resolved by final binding arbitration before the American Arbitration Association (AAA), utilizing its Commercial Arbitration Rules. One Arbitrator shall be selected using AAA procedures. The Arbitrator shall use all reasonable efforts to minimize discovery and to complete the arbitration proceedings as expeditiously as possible. #24..
- 1056 -
The Arbitrator shall render a written decision within thirty (30) calendar days of the hearing.
The Arbitrator will not award attorney’s fees, or punitive, incidental, consequential, treble or other multiple or exemplary damages, and the parties hereby agree to waive and not seek such damages. Either party may seek judicial relief to compel the other party to comply with the provisions of this Section, or injunctive or other equitable relief to protect its intellectual property rights, provided (unless prohibited by applicable law) that the remainder of the dispute or claim is submitted to arbitration. The arbitration shall be held in Modesto, California; both parties give their irrevocable consent to jurisdiction of courts of or in the State of California, as well as processes of the AAA in California. Awards shall be final, binding and non-appealable (except on the minimal grounds required under the Federal Arbitration Act or other applicable law). All awards may be filed with one or more courts, state, federal or foreign having jurisdiction over the party against whom such award is rendered or its property, as a basis of judgment and of the issuance of execution for its collection.
9. GOVERNING LAW:
This Agreement shall be deemed made in, governed by, performed in, and construed and enforced in accordance with the laws of the State of California, U.S.A., without giving effect to its conflicts of laws provisions or principles.
10. COMMENCEMENT AND COMPLETION OF THE WORK:
The work contemplated herein shall be commenced as soon as possible after receipt of the Notice to Proceed for this contract. The Notice to Proceed shall not be issued until the contract administrator receives and has on file:
Executed Agreement;
#24..
- 1057 -
a. Resolution No. 2022- attached hereto as Exhibit “A” and made a part hereof;
b. Bid Submittal, attached hereto as Exhibit “B” and made a part hereof; c. RFB 2122-03, attached hereto as Exhibit “C” and made a part hereof; d. Proof of Insurance
e. Business License
11. TERMINATION OF SERVICES:
Termination by City for Default of CONTRACTOR
Should CONTRACTOR default in the performance of this Agreement or materially breach any of its provisions, at its option, City may terminate this Agreement by giving written notification to CONTRACTOR. The termination date shall be the effective date of the notice.
For the purposes of this section, material breach of this Agreement shall include, but not be limited to, any of the following: failure to perform required services or duties, willful destruction of City's property by Contractor, dishonesty or theft.
Termination by City for Convenience
The City may also terminate the CONTRACTOR’S performance under the Agreement, either in whole or in part, at its own discretion, or when conditions encountered during the Work make it impossible or impracticable to proceed, or when the City is prevented from proceeding with the Agreement by act of God, by law, or by official action of a public authority, or upon a determination by the City that such termination is in the best interest and convenience of the City, or whenever the City is prohibited from completing the Work for any reason. The City shall provide no less than ten (10) calendar days written notice of its intent to terminate the Agreement for convenience, and shall endeavor to provide the Contractor with consultation with the City prior to termination. #24..
- 1058 -
Post-Termination Procedure
Upon receipt of a written notice of termination pursuant to either of the foregoing paragraphs, the Contractor shall:
a. Cease its work as directed in the notice of termination as of the termination date and see to it that its employees, subcontractors and agents are notified of such termination and act as specified in the notice of termination;
b. Terminate all orders and Subcontractors except as necessary to complete any portion of the Work that is not terminated;
c. If directed in writing by the City to do so, assign all right, title and interest in subcontracts and materials in progress to City, in which case the City will have the right at its discretion to settle, or pay any or all claims arising out of the termination of such subcontractors, but in no event shall recovery by any Contractor or subcontractor include lost profits for portions of the Work not completed or undertaken, including materials not delivered;
d. Deliver or otherwise make available to the City all data, drawings, specifications, reports, estimates, summaries and such other information and material as may have been accumulated by the Contractor in performing the Work whether completed or in process;
e. Settle outstanding liabilities and claims, subject to the approval of City; f. Complete performance of such part of the Work as has not been terminated;
#24..
- 1059 -
g. Take such other actions as may be necessary, or as may be directed by the City for the protection and preservation of the Work and/or property related to the Work;
h. If City so requests, and at City's cost, Contractor shall provide sufficient oral or written status reports to make City reasonably aware of the status of Contractor's work on the project.
i. The Contractor understands and agrees that City may, in City's sole discretion, refuse to pay Contractor for that portion of Contractor's services which were performed by Contractor on the project prior to the termination date and which remain unacceptable and/or not useful to City as of the termination date.
City will pay Contractor an amount based on the percentage of satisfactory work completed in accordance with the notice of termination. The final payment to the Contractor after termination for convenience shall be limited to amounts due and owing under the Agreement at time of termination, including the following:
a. The cost of settling and paying valid claims arising out of the termination of the Work such as subcontractor agreements or contracts for materials; b. The Agreement price allocable to the portion of the Work properly performed or goods supplied to the work site by the Contractor as of the date of termination, as determined in accordance with the notice of termination, reduced by any sums previously paid to the Contractor.
Authorization to Terminate Agreement
#24..
- 1060 -
Termination of the Agreement may be invoked by the City Manager, or his/her designee, subject to the right of the Contractor to appeal the City Manager, or his/her designee’s, decision to the City Council. The Contractor shall appeal by notifying the City Clerk in writing within ten (10) calendar days of receipt of written notification from City of termination of the Agreement.
In the event that termination of this Agreement is upheld by the City Council, any cessation of payment of delay claims, extended claims, Eichleay claims, or any other claims for delay shall be retroactive to the date of termination selected by the City Manager, or his/her designee.
12. COMPLIANCE WITH ALL LAWS:
CONTRACTOR hereby agrees that CONTRACTOR and its subcontractors, if any, in the performance of the work described, designated and herein referred to, will comply with all federal, state, county and municipal laws, rules and regulations which may be applicable to the work herein contracted for, whether now in existence or hereafter adopted.
13. AGREEMENT DOCUMENTS:
The complete contract between the parties hereto consists of this agreement, and all exhibits, and the following documents which are incorporated herein by this reference:
a. Resolution No. 2022-___________ attached hereto as Exhibit “A” and made a part hereof;
b. CONTRACTOR Bid Submittal, attached hereto as Exhibit “B” and made a part hereof;
c. RFB 2122-03, attached hereto as Exhibit “C” and made a part hereof; d. Proof of Insurance
e. Business License
#24..
- 1061 -
These documents include important legal requirements, procedures and restrictions and should be reviewed by CONTRACTOR. They are available for review during normal business hours in the Department of Finance, Purchasing Division). All documents specified above are intended to operate so that any work called for in any one and not mentioned in the other, or vice versa, is to be executed the same as if mentioned in all said documents.
14. NOTICES:
Any notice, payment or instrument required or permitted by this Contract to be given or delivered to either party shall be deemed to have been received when personally delivered, or one calendar week following deposit of the same in any United States Post Office, registered or certified mail, postage prepaid, addressed as follows:
CONTRACTOR Dan Ely/Owner
Dan Ely Backflow Services
902 Bennington Ave
Turlock, CA 95382
(209) 678-7024
CITY: City of Modesto
Purchasing Division
P.O. Box 642
Modesto, CA 95353
Each party may change its address for delivery of notice by delivering written notice of such change of address to the other party.
15. SIGNATOR(IES) FOR CONTRACTOR:
The undersigned signator(ies) for CONTRACTOR warrant(s) and represent(s) that he/she/they is/are legally competent to execute the contract and has/have full authority to execute this contract.
16. ASSIGNMENT:
#24..
- 1062 -
Neither this agreement nor any portion thereof shall be subcontracted or assigned without the written consent of the CITY in each and every instance.
17. WAIVER:
The waiver by any party to this Agreement of a breach of any provision hereof shall be in writing and shall not operate or be construed as a waiver of any other or subsequent breach hereof unless specifically stated in writing.
18. HEADINGS NOT CONTROLLING.
Headings used in the Agreement are for reference purposes only and shall not be considered in construing this Agreement
19. MISCELLANEOUS:
Time is of the essence in every provision of this contract.
20. ENTIRE AGREEMENT.
This Agreement and its exhibits contain the entire understanding between Consultant and City. Additional or new terms contained in this Agreement which vary from Consultant's proposal are controlling and are deemed accepted by Consultant by shipment of any article or other commencement of performance hereunder. All previous proposals, offers and communications relative to this Agreement, whether oral or written, are hereby superseded except to the extent that they have been incorporated into this Agreement. No future waiver of or exception to any of the terms, conditions, and provisions of this Agreement shall be considered valid unless specifically agreed to in writing by all the parties.
21. PARTIAL INVALIDITY.
#24..
- 1063 -
If any provision in this Agreement is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remaining provisions shall nevertheless continue in full force without being impaired or invalidated in any way.
IN WITNESS WHEREOF, the CITY OF MODESTO, a municipal corporation, has authorized the execution of this Agreement in duplicate by City Manager and attested by its City Clerk under authority of Resolution No. 2022- _________, adopted by the Council of the City of Modesto on the ___8th____ day of March, 2022 and Dan Ely Backflow Services., has caused this Agreement to be duly executed.
#24..
- 1064 -
REQUEST POR Bm AND SPEClFJCATJO
BA KFLOW T · STING AND EMERGEN
0. 2122-0
REP JR
FINANCIAL I EREST OlSCLO URE FOR1'.·1
AD pe on · luded wi · th meanin of eit f th followiin • te ts have a m,lteria1 financiri1 interest in an agreement or application for deve]opment rights. submitted for approva] or disap rnval by the City Coll.llcil, and shaU be identified by the appljcant, by name.
Tests of Materiality:
l . \ hether it is foreseeable to a r-easonahle person that the value of the ir intere t in property available for use by an applicant, or their interest in the apphcant itself, may increase or decrease by an amount greater than $2 000.00 as , direct or 'ndirect result of Council actfon on the app]icanfs agreement or application for development ri hts.
2. Wbetber it is for.es eabl t.o a rea.sonabJe person that the person s gross · come from the applicant may increase or decrease by a sum greater than $2,000;00 as a direct or indir ct result of Council action on the agreement or application for development ·gh , It i the ]egal obligation of aU applicants for a.pprova] of an agreement or of au app,H ation for devdopment rights to verify in writing, under penalty of pei.-j u.ry, that the identity of each persom having a material tm~mciel internst in the agre,ement or application or development rights is tru , correct and complete.
By .signing below~ the applicant understands tlmt this information i.s provided under penalty of pe1jmy, and tltat 'ntentiona]ly suppl · g mi · onnation o deception may result in either invalidation of the agreement or ► application, or criminal pro ecution for mhidcmcanor violation of the Iodesto Mu icipal Co<l or both.
Negligent provision •Of misinformation shaU be grounds fo1· inva.lidatfon. In accordance ith the Modesto Municipal Code each ap 1icant has a continuit1g obligation to ntaintain the truth, accuracy and completeness o the financial interest disdosure infonnation provided below unti1 after final consideration by the City Council of atte a ising out o or eat' g to the agreemen r application.
By signing this documeut I agree to the info mation contained within.
COMP ANY NAME:
TE( IG ):
n~~ EL" low N E::B
APPLIC T S NAME/TITLE (PRINT):
15 Questio concerning the applic:atio of either test to partkular facts should be reso]ved 1n dvance of ouncil ac ion by agreement ith the department he-ad recommending approval of its agreement/application. 14 #24..
- 1065 -
1 CITY OF MODESTO
REQUEST FOR BID AND SPECIFICATIONS NO. 2122-03
FOR
BACKFLOW TESTING AND EMERGENCY REPAIRS
THE PAYMENT OF PREVAILING WAGE IS REQUIRED
BID OPENING: DECEMBER 14, 2021 at 11:00 A.M.
CITY OF MODESTO CONTACT: Kathy Crandall, Buyer
E-MAIL ADDRESS: [email protected]
PHONE: (209) 577-5420
#24..
- 1066 -
2 CITY OF MODESTO
REQUEST FOR BID AND SPECIFICATIONS NO. 2122-03
TABLE OF CONTENTS
Page
. Notice to Bidders..................................................................................................................3 . City Contacts ........................................................................................................................4 . Calendar of Events ...............................................................................................................4 . Offer and Acceptance...........................................................................................................4 . Bid Submittal Checklist .......................................................................................................5 . REQUIRED DOCUMENT
. Bid Acknowledgement (Signature)....................................................................................6 . Pricing Schedule (Signature)..............................................................................................9 . Exceptions, Clarifications, Amendments (if applicable) ..................................................10 . References ..........................................................................................................................11 . Financial Interest Disclosure Form (Signature Form) ....................................................14 . Support of Local Vendors (if applicable) ..........................................................................16 . Company History Statement .............................................................................................17 . Addenda Acknowledgement Page (if applicable) ............................................................18 . TECHNICAL REQUIREMENTS
. Scope of Work....................................................................................................................19 . Technical Specifications ....................................................................................................19 . Required Licenses ..............................................................................................................22 . Insurance.............................................................................................................................22 . GENERAL REQUIREMENTS
. Bid Submittal......................................................................................................................25 . Acceptance/Rejection of Irregular Bids.............................................................................25 . Complete Bid Document....................................................................................................25 . Compliance.........................................................................................................................26 . Prevailing Wages................................................................................................................26 . Pricing Format....................................................................................................................26 . Pricing Schedule.................................................................................................................26 . Award of Bid ......................................................................................................................27 . Term of Contract ................................................................................................................27 . Termination of Services .....................................................................................................27 . Quantities............................................................................................................................28 . Funding...............................................................................................................................28 . Other Government/Publicly Funded Agencies..................................................................28 . Protest and Appeal Procedures ..........................................................................................30 . Payment ..............................................................................................................................34 . ATTACHMENTS
. Sample Annual Agreement …………………………………………………………...35
#24..
- 1067 -
3 NOTICE TO BIDDERS
NOTICE IS HEREBY GIVEN that the City of Modesto, County of Stanislaus, State of California, will receive at the City Clerk’s office, 1010 Tenth Street, Suite 6600, Modesto, CA 95354 sealed bids for the furnishing of BACKFLOW TESTING AND EMERGENCY REPAIRS for the City of Modesto, Parks, Recreation & Neighborhoods Division.
All equipment, materials, and supplies shall be furnished F.O.B. City of Modesto. Bids can be downloaded from the City’s Purchasing website at http://www.modestogov.com/257/Contracting-Bid-Opportunities; such bids shall include all necessary specifications.
Each bid shall be sealed and filed with the City Clerk’s office, 1010 Tenth Street, Suite 6600, Modesto, CA 95354 prior to Tuesday, December 14, 2021 at 11:00 A.M., at which time bids will be opened, read and recorded. All bids shall be available for review following City Council award approval at the Purchasing Division, 1010 Tenth Street, 5th Floor, Suite 5300, Modesto, CA 95354.
Bids will be received only at the address shown above, and prior to the time indicated. Any bid received at or after said time and/or date, or at a place other than the stated address cannot be considered and will be returned to the bidder unopened.
All bids, whether delivered by an employee of the bidder, U.S. Postal Service, courier or package delivery service must be received and time stamped at the stated address prior to the time designated. The City Clerk’s time stamp shall be considered the official timepiece for the purpose of establishing the actual receipt of bids.
The City of Modesto assumes no responsibility for delay in the delivery of the bid.
On the outside of the bid envelope and courier envelope, if any, the bidder shall indicate the following:
NAME AND ADDRESS OF BIDDER
SPECIFICATION NUMBER 2122-03
BACKFLOW TESTING AND EMERGENCY REPAIRS
BID OPENING DATE: DECEMBER 14, 2021 AT 11:00 A.M.
MAIL TO: CITY CLERK DELIVER/ COURIER TO: CITY CLERK
CITY OF MODESTO CITY OF MODESTO
P.O. BOX 642 1010 10TH STREET, SUITE 6600
MODESTO, CA 95353 MODESTO, CA 95354
The City reserves the right to reject any or all bids or to waive any informalities or minor irregularities in a bid.
No bidder may withdraw his/her bid for a period of ninety (90) days after the date set for the opening thereof.
Note: Deliver or mail bids to the referenced address, only, as indicated in the Notice to Bidders. #24..
- 1068 -
4 CITY CONTACTS
All questions regarding these specifications, terms, and conditions shall be submitted in writing to Kathy Crandall, Buyer, via email at: [email protected] All contact during the bid process shall be through the Purchasing Division. Attempts by the bidder to contact department representatives may result in disqualification of the bidder from the bid process.
CALENDAR OF EVENTS
Event Date
Bid Issued NOVEMBER 4, 2021
Written Questions Due NOVEMBER 16, 2021
Addendum Issued (if required) NOVEMBER 23, 2021
Bid Opening BEFORE 11:00 A.M. on Tuesday, DECEMBER 14, 2021 Bid Award Approximately April 2022
It is the responsibility of each bidder to be familiar with all of the specifications, terms and conditions and the site condition (if applicable). The bidder agrees and acknowledges all RFB specifications, terms, and conditions and indicates the ability to perform by submission of a bid. By the submission of a bid, the bidder certifies that if awarded a contract they will make no claim against the City based upon ignorance of conditions or misunderstanding of the specifications.
CALIFORNIA LABOR CODE SECTION 1771.1 (a)
1771.1. (a) A contractor or subcontractor shall not be qualified to bid on, be listed in a bid proposal, subject to the requirements of Section 4104 of the Public Contract Code, or engage in the performance of any contract for public work, as defined in this chapter, unless currently registered and qualified to perform public work pursuant to Section 1725.5. It is not a violation of this section for an unregistered contractor to submit a bid that is authorized by Section 7029.1 of the Business and Professions Code or by Section 10164 or 20103.5 of the Public Contract Code, provided the contractor is registered to perform public work pursuant to Section 1725.5 at the time the contract is awarded.
OFFER AND ACCEPTANCE:
Seller represents his/her acceptance to provide products and/or services as follows: City's offer to purchase products and/or services is expressly conditioned upon Seller's assent to the terms and conditions set forth in City purchase order documents, specifications, supporting data, and these articles. Seller agrees that Seller's Order Acknowledgement terms and conditions received prior to, during, or after order placement by City are hereby rejected. City purchase orders signed by the City's Purchasing Manager or designated agent and issued to Seller constitutes written notification to Seller of City's rejection of any and all of Seller Order Acknowledgements, counter offers and change to the City's terms and conditions. #24..
- 1069 -
5 REQUEST FOR BID AND SPECIFICATIONS NO. 2122-03
BACKFLOW TESTING AND EMERGENCY REPAIRS
SUBMITTAL CHECKLIST
BID SUBMITTAL CHECKLIST
The bidder shall provide a complete bid in a sealed envelope before 11:00 A.M. on the bid opening date.
Failure to provide all the required documents may cause the bid to be considered non-responsive.
BACKFLOW TESTING AND EMERGENCY REPAIRS
COMPLETE BID Page No.
. Bid Acknowledgement (Signature Form).........................................................................6 . Pricing Schedule (Signature Form) ...................................................................................9 . Exceptions, Clarifications, Amendments (if applicable) ..................................................10 . References ..........................................................................................................................11 . Financial Interest Disclosure Form (Signature Form) ....................................................14 . Support of Local Vendors (if applicable) ..........................................................................16 . Company History Statement .............................................................................................17 . Addenda Acknowledgement Page (if applicable) ............................................................18 #24..
- 1070 -
6 BACKFLOW TESTING AND EMERGENCY REPAIRS
BID ACKNOWLEDGEMENT
The City is soliciting bids from qualified Bidders to furnish its requirements per the specifications, terms and conditions contained in the above referenced bid number. This Bid Acknowledgement must be completed, signed by a responsible officer or employee, dated and submitted with the bid response.
Obligations assumed by such signature must be fulfilled.
1. Preparation of Bids: (a) All prices and notations must be printed in ink or typewritten. No erasures permitted. Errors may be crossed out and corrections printed in ink or typewritten adjacent and must be initialed in ink by person signing the bid. (b) Quote price as specified in bid. No alterations or changes of any kind shall be permitted to the Bid Form. Responses that do not comply shall be subject to rejection in total.
2. Failure to Submit Bid: If you are not submitting a bid but want to remain on the mailing list and receive future bids, complete, sign and return this Bid Acknowledgement and state the reason you are not pricing.
3. Taxes and Freight Charges: (a) Unless otherwise required and specified in the RFB, the prices quoted herein do not include Sales, Use or other taxes. (b) No charge for delivery, drayage, express, parcel post packing, cartage, insurance, license fees, permits, costs of bonds, or for any other purpose, except taxes legally payable by City, will be paid by the City unless expressly included and itemized in the bid. (c) Amount paid for transportation of property to the City is exempt from Federal Transportation Tax. An exemption certificate is not required where the shipping paper shows the consignee as one (1) of the Agencies; as such papers may be accepted by the carrier as proof of the exempt character of the shipment. (d) Articles sold to the Agencies are exempt from certain Federal excise taxes. The Agencies will furnish an exemption certificate.
4. Award: (a) Unless otherwise specified by the bidder or the RFB gives notice of an all-or-none award, the City may accept any item or group of items of any bid. (b) Bids are subject to acceptance at any time within thirty (30) days of opening, unless otherwise specified in the RFB. (c) A valid, written purchase order mailed, or otherwise furnished, to the successful bidder within the time for acceptance specified results in a binding contract without further action by either party. The contract shall be interpreted, construed and given effect in all respects according to the laws of the State of California.
5. Patent Indemnity: Bidders who do business with the City shall hold the City, its officers, agents and employees, harmless from liability of any nature or kind, including cost and expenses, for infringement or use of any patent, copyright or other proprietary right, secret process, patented or un-patented invention, article or appliance furnished or used in connection with the contract or purchase order.
6. Samples: Samples of items, when required, shall be furnished free of expense to the City and if not destroyed by test may upon request (made when the sample is furnished), be returned at the bidder’s expense.
7. Rights and Remedies of Agencies for Default: (a) In the event any item furnished by the bidder in the performance of the contract or purchase order should fail to conform to the specifications therefore or to the sample submitted by the bidder with its bid, the City may reject the same, and it shall thereupon become the duty of the bidder to reclaim and remove the same forthwith, without expense to the City, and immediately to replace all such rejected items with others conforming to such specifications or samples; provided that should the bidder fail, neglect or refuse so to do the City shall thereupon have the right to purchase in the open market, in lieu thereof, a corresponding quantity of any such items and to deduct from any moneys due or that may there after come due to vendor the difference between the prices named in the contract or purchase order and the actual cost thereof to the City. In the event that the bidder fails to make prompt delivery as specified for any item, the same conditions as to the rights of the City to purchase in the open market and to reimbursement set forth above shall apply, except when delivery is delayed by fire, strike, freight embargo, or Act of God or the government. (b) Cost of inspection or deliveries or offers for delivery, which do not meet specifications, will be borne by the bidder. (c) The rights and remedies of the Agencies provided above shall not be exclusive and are in addition to any other rights and remedies provided by law or under the contract.
8. Discounts: (a) Terms of less than ten (10) days for cash discount will be considered as net. (b) In connection with any discount offered, time will be computed from date of complete, satisfactory delivery of the supplies, equipment or services specified in the RFB, or from date correct invoices are received by the City at the billing address specified, if the latter date is later than the date of delivery. Payment is deemed to be made, for the purpose of earning the discount, on the date of mailing the City’s check.
9. California Government Code Section 4552: In submitting a bid to a public purchasing body, the bidder offers and agrees that if the bid is accepted, it will assign to the purchasing body all rights, title, and interest in and to all causes of action it may have under Section 4 of the Clayton Act (15 U.S.C. Sec. 15) or under the Cartwright Act (Chapter 2, commencing with Section 16700, of Part 2 of Division 7 of the Business and Professions Code), arising from purchases of goods, materials, or services by the bidder for sale to the purchasing body pursuant to the bid. Such assignment shall be made and become effective at the time the purchasing body tenders final payment to the bidder.
10. No Guarantee or Warranty: The City makes no guarantee or warranty as to the condition, completeness or safety of any material or equipment that may be traded in on this order.
11. Two “Inked” Signed Original Bid Document Requested: Failure to furnish at least one “inked” signed original bid document may result in disqualification.
THE undersigned acknowledges receipt of the referenced RFB and/or Addenda and offers and agrees to furnish the articles and/or services specified on behalf of the bidder indicated below, in accordance with the specifications, terms and conditions of this RFB and Bid Acknowledgement, for the pricing indicated on the Pricing Schedule.
Firm:
Address:
City/State/Zip:
Signature/Title/Date:
#24..
- 1071 -
7 REQUEST FOR BID AND SPECIFICATIONS NO. 2122-03
BACKFLOW PREVENTION TESTING & REPAIRS
PRICING SCHEDULE PAGE 1
All labor, equipment, tools, fuel and insurance necessary to perform the required services shall be included in bid pricing. Bid must be submitted on the Pricing Schedule provided. No alterations should be made to the pricing schedule. Any exceptions, amendments or adjustments should be noted on the “Exception, Clarification, and Amendments page”.
All labor, materials/hardware, tools, equipment, licenses, mileage and insurance necessary to perform the required job shall be included in bid pricing. Quote shall include cost to conduct annual testing and certification (averaging approximately 40-45 units per month), make minor adjustments and prepare written diagnosis with recommendations for corrective measures as necessary. Monthly communication with contract administrator for units tested and or emergency repairs needed. Provide hourly cost for emergency repairs per size of unit.
ENTER QUOTE PER SINGLE UNIT IN EACH SIZE CATEGORY
PAYMENT OF PREVAILING WAGES REQUIRED
Manufacturer / Type over 90% are Febco, however the City may contain devices from other manufacturers such as Ames, Rain Bird, Watts and Wilkins List Unit Price
Estimated
Annual Quantity:
6 +/- 50 +/- 65 +/- 130 +/- 13 +/- 50 +/- 6 +/-
Size: ¾" 1" 1-½" 2" 3" 4" 6"
Double Check
(DC) $ $ $ $ $ $ $
Pressure Vaccum
Breaker (PVB) $ $ $ $ $ $ $
Reduce Pressure
(RP) $ $ $ $ $ $ $
TOTAL $ $ $ $ $ $ $
Please provide your markup percentage _________% NTE 10%. #24..
- 1072 -
8 REQUEST FOR BID AND SPECIFICATIONS NO. 2122-03
BACKFLOW TESTING & EMERGENCY REPAIRS
PRICING SCHEDULE PAGE 2
Modesto Fire Department
All labor, materials/hardware, tools, equipment, licenses, mileage and insurance necessary to perform the required job shall be included in bid pricing. Quote shall include cost to conduct annual testing and certification (averaging approximately 2 units per month), make minor adjustments and prepare written diagnosis with recommendations for corrective measures as necessary. Monthly communication with contract administrator for units tested and or emergency repairs needed. Provide hourly cost for emergency repairs per size of unit.
PAYMENT OF PREVAILING WAGES REQUIRED
Manufacturer / Type over 90% are Febco, for Parts/Materials however the City may contain devices from other manufacturers such as Ames, Rain, Watts and Wilkins List Unit Price (Per Test)
Estimated
Annual
Quantity:
2 1 2 9 1
Size: ¾" 1-1/4” 1-½" 2" 8”
Double
Check (DC) $
Double
Check
Detector
Assembly
(DCDA) $
Pressure
Vacuum
Breaker
(PVB) $
Reduce
Pressure (RP) $
TOTAL $ $ $ $ $ $ $
Please provide your markup percentage _________% NTE 10%.
Company Name (Bidder):
#24..
- 1073 -
9 REQUEST FOR BID AND SPECIFICATIONS NO. 2122-03
BACKFLOW TESTING AND EMERGENCY REPAIRS
PRICING SCHEDULE
City Business/Delivery License No. __________ Expiration Date: __________ Contractor License No. __________ Expiration Date: __________ DIR Registration No. _______________________________ Expiration Date:
Stated pricing is subject to (______ %) cash discount if invoice is paid within ______ days after acceptance of service.
THE PAYMENT OF PREVAILING WAGES IS REQUIRED.
A City Business License
is not required at the time of the bid, however, please note the License No. if bidder should already have one. (See Section 1.3 for further details)
Does bidder accept the City’s Epay Payment Program? Please check one: Yes ____ No ____ Information regarding the program is provided in Section 2.25 Payment.
THE undersigned acknowledges receipt of the referenced RFB and/or Addenda and offers and agrees to furnish the articles and/or services specified on behalf of the bidder indicated below, in accordance with the specifications, terms and conditions of this RFB and Bid Acknowledgement, for the pricing indicated on the Pricing Schedule.
Company Name (Bidder):
By (Person Submitting Bid): (Print)
By (Person Submitting Bid): (Signature)
Title of Person Submitting Bid:
Business Address
(City/State/Zip):
E-Mail Address:
Telephone Number:
Fax Number:
Date:
#24..
- 1074 -
10 REQUEST FOR BID AND SPECIFICATIONS NO. 2122-03
BACKFLOW TESTING AND EMERGENCY REPAIRS
EXCEPTIONS, CLARIFICATIONS, AMENDMENTS
Exceptions, Clarifications, Amendments
List requests for bid clarifications and exceptions below, if any, sign and submit with your bid response. This form is not required to be returned, unless an Exception, Clarification, or Amendment is requested by the bidder. Any requested exception, clarification or amendment may not be accepted and may deem the bidder as non-responsive.
Item
No.
Reference To: Description
Page No. Paragraph No.
Company Name (Bidder):
#24..
- 1075 -
11 REQUEST FOR BID AND SPECIFICATIONS NO. 2122-03
BACKFLOW TESTING AND EMERGENCY REPAIRS
REFERENCES
All Bidders must provide a list of five (5) current or former clients in the area provided below, identifying prior experience with similar type of services requested by the City under Scope of Work.
References shall have similar volume and requirements to those outlined in these specifications, terms and conditions. Bidders failing to provide references may be deemed as non-responsive.
The City may contact some or all of the references provided in order to determine the bidders’ performance record on work and equipment similar to that described in this bid. The City reserves the right to contact references other than those provided in the response and to use the information gained from them in the award process.
Company Name:
Address:
City, State, Zip Code:
Contact Person:
Email Address:
Telephone Number:
Type of Business:
Date of Service:
Annual Contract Value $
Company Name:
Address:
City, State, Zip Code:
Contact Person:
Email Address:
Telephone Number:
Type of Business:
Date of Service:
Annual Contract Value $
Company Name:
Address:
City, State, Zip Code
Contact Person:
Email Address:
Telephone Number:
Type of Business:
Date of Service:
Annual Contract Value $
#24..
- 1076 -
12 Company Name:
Address:
City, State, Zip Code
Contact Person:
Email Address:
Telephone Number:
Type of Business:
Date of Service:
Annual Contract Value $
Company Name:
Address:
City, State, Zip Code
Contact Person:
Email Address:
Telephone Number:
Type of Business:
Date of Service:
Annual Contract Value $
Company Name (Bidder):
#24..
- 1077 -
13 REQUEST FOR BID AND SPECIFICATIONS NO. 2122-03
BACKFLOW TESTING AND EMERGENCY REPAIRS
FINANCIAL INTEREST DISCLOSURE
REQUIRED DISCLOSURE BEGINNING THE COUNCIL MEETING
OF JANUARY 7, 2003
The ordinance requiring financial interest disclosure by all parties having a direct or indirect interest of $2,000 or more (except for certain publicly traded companies) will be effective at the Council meeting of January 7, 2003. This means that any Council action on a contract, agreement or development right must be accompanied by a FINANCIAL INTEREST DISCLOSURE FORM listing by name all parties that have a material financial interest in the agreement, contract or development right.
PLEASE NOTE, any Council action that requires a FINANCIAL INTEREST DISCLOSURE cannot be considered by the City Council until the required reporting is made. That means that Agenda Items without the DISCLOSURE will be removed from the Council Agenda.
FinDisclosure12-19
#24..
- 1078 -
14 REQUEST FOR BID AND SPECIFICATIONS NO. 2122-03
BACKFLOW TESTING AND EMERGENCY REPAIRS
FINANCIAL INTEREST DISCLOSURE FORM
All persons included within the meaning of either of the following tests have a material financial interest in an agreement, or application for development rights, submitted for approval or disapproval by the City Council, and shall be identified by the applicant, by name.
Tests of Materiality:
1. Whether it is foreseeable to a reasonable person that the value of their interest in property available for use by an applicant, or their interest in the applicant itself, may increase or decrease by an amount greater than $2,000.00 as a direct or indirect result of Council action on the applicant’s agreement or application for development rights.
2. Whether it is foreseeable to a reasonable person that the person’s gross income from the applicant may increase or decrease by a sum greater than $2,000.00 as a direct or indirect result of Council action on the agreement or application for development rights.
It is the legal obligation of all applicants for approval of an agreement or of an application for development rights to verify in writing, under penalty of perjury, that the identity of each person having a material financial interest in the agreement or application or development rights is true, correct and complete.
By signing below, the applicant understands that this information is provided under penalty of perjury, and that intentionally supplying misinformation or deception may result in either invalidation of the agreement or application, or criminal prosecution for misdemeanor violation of the Modesto Municipal Code, or both.
Negligent provision of misinformation shall be grounds for invalidation. In accordance with the Modesto Municipal Code, each applicant has a continuing obligation to maintain the truth, accuracy and completeness of the financial interest disclosure information provided below until after final consideration by the City Council of any matter arising out of or relating to the agreement or application.
By signing this document I agree to the information contained within.
COMPANY NAME: ____________________________________________________ __________________________________
APPLICANT’S NAME (SIGNATURE):
__________________________________
APPLICANT’S NAME/TITLE (PRINT):
__________________________________
DATE:____________________________
Applicable Names: (if any, use page 15)
Questions concerning the application of either test to particular facts should be resolved in advance of Council action by agreement with the department head recommending approval of its agreement/application. #24..
- 1079 -
15 REQUEST FOR BID AND SPECIFICATIONS NO. 2122-03
BACKFLOW TESTING AND EMERGENCY REPAIRS
FINANCIAL INTEREST DISCLOSURE FORM
COMPANY NAME: __________________________________________ NAMES
Signature / Print:
Signature / Print:
Signature / Print:
Signature / Print:
Signature / Print:
Signature / Print:
Signature / Print:
Signature / Print:
Signature / Print:
Signature / Print:
Signature / Print:
Signature / Print:
Signature / Print:
Signature / Print:
Signature / Print:
Signature / Print:
Signature / Print:
Signature / Print:
Signature / Print:
#24..
- 1080 -
16 REQUEST FOR BID AND SPECIFICATIONS NO. 2122-03
BACKFLOW TESTING AND EMERGENCY REPAIRS
SUPPORT OF LOCAL VENDORS
REQUEST FOR DECLARATION
of
LOCAL BUSINESS
Should the bidder that submits the lowest responsive bid or quote and would otherwise normally qualify to receive the bid pursuant to Sections 8-3.203 and 8-3.204 of the Modesto Municipal Code (MMC) not be a local business as defined herein, the lowest bid or quote submitted by a local business that is within five percent (5%) of the lowest bid or quote, whether or not that bidder is the second lowest bidder, may be deemed to be the lowest bidder if the local bidder agrees to reduce its bid to match the bid or quote of the lowest bidder in writing within five (5) business days after notification by City Purchasing staff, provided that said local bidder is deemed to be a responsible bidder as determined by the Purchasing Manager.
To qualify as a local bidder, the bidder must have a physical business location within the City of Modesto and a current City of Modesto business license.
This document is only required should the bidder request to be considered for the Support of Local Vendor preference, and meets the criteria noted above.
I declare I am a local business per the above criteria
SUPPORT OF LOCAL VENDORS
DECLARATION OF ELIGIBILITY
Company Name:
Street Address:
Telephone Number:
Business License Number:
Under penalty of perjury, The Undersigned declares that the foregoing information is true and correct:
Print/Type Name:
Title:
Signature:
Date:
#24..
- 1081 -
17 REQUEST FOR BID AND SPECIFICATIONS NO. 2122-03
BACKFLOW TESTING AND EMERGENCY REPAIRS
COMPANY HISTORY STATEMENT
Your company shall have been in business for a minimum of three (3) continuous years (immediately prior to the time of the RFB submittal date) providing the types of services requested herein.
The company history statement shall be prepared on company letterhead and provided with the bid submittal. #24..
- 1082 -
18 REQUEST FOR BID AND SPECIFICATIONS NO. 2122-03
BACKFLOW TESTING AND EMERGENCY REPAIRS
ADDENDA ACKNOWLEDGEMENT
The bidder shall check the RFB listing on the City or PlanetBid website, periodically, and in any event, no later than the day prior to bid opening to obtain any addenda information. The changes identified in the addenda modify this request for bid and specifications. The addenda now become a part of this request for bid and specifications. Signing the Bid on the signature portion thereof, the bidder is acknowledging that the bidder has confirmed that he or she has received all addenda issued for this request for bid and specifications, and has included costs for such in the bid submitted. Failure to list and acknowledge all addenda numbers may cause the bid to be considered nonresponsive. Do not attach any of the addenda to this sheet nor include them with the bid.
This document is only required to be returned should addenda have been issued.
The Bid is submitted with respect to the changes to the request for bid and specifications included in addenda numbers:
LIST ALL ADDENDA NUMBERS:_____________________________________________________ Company Name (Bidder):
#24..
- 1083 -
19 REQUEST FOR BID AND SPECIFICATIONS NO. 2122-03
BACKFLOW TESTING AND EMERGENCY REPAIRS
TECHNICAL SPECIFICATIONS AND REQUIREMENTS
1.0 SCOPE OF WORK:
The City of Modesto is requesting quotations on Backflow Testing & Emergency Repair Services for backflow units. Pricing shall include the costs to conduct annual testing and certification; prepare written diagnosis with recommendations for corrective measures as necessary; and make emergency repairs as requested. Monthly communication with Contract Administrator for units tested and/or repairs needed. Approximately 450 tests and certifications will be conducted per year. The successful CONTRACTOR will arrange pickup and return of the backflow test reports with Contract Administrator.
The Scope of Work includes 14 fire service backflow prevention assemblies. For the purpose of this scope of work, the main and detector backflow prevention assemblies on fire services shall be considered separate backflow prevention assembly tests for billing purposes as noted in the Pricing Schedule of this Request for Bid under “Modesto Fire Department”.
A. BACKFLOW TESTING:
Conduct annual testing for approximately 450 backflow prevention assemblies managed by the City of Modesto. Assemblies may range in size from ¾” to 8”. This includes, but not limited to, devices from Ames, Febco, Rainbird, Wilkins, and Watts. The majority of devices are Febco (90%) B. ASSIGNMENT OF WORK:
Contract Administrator will notify CONTRACTOR which backflows require testing the first Tuesday of each month.
C. TESTING PROCEDURES:
1. CONTRACTOR will test backflow device according to the California Code of Regulations for Recycled Water and apply tag certifying device has passed. In the event that a device does not pass the initial test, Backflow Tester will make all reasonable attempts to retest the device. Examples would be to “exercise” the device and open and close shut off valves if valves are not closing tight.
Retesting of the device after such attempts will not be considered an additional test. “California Drinking Water-Related Laws”. California State Water Resources Board. California Code of Regulations: Title 17, Division 1, Chapter 5, Group 4, Articles 1 and 2, Sections: 7583- 7586,7601-7605.
https://www.waterboards.ca.gov/drinking_water/certlic/drinkingwater/Lawbook.html “California Drinking Water-Related Laws”. California State Water Resources Board. California Code of Regulations: Title 17, Division 1, Chapter 5, Group 4, Articles 1 and 2, Sections: 7583- 7586,7601-7605.
For Fire protection systems, CONTRACTOR will test fire protection system assemblies in accordance with National Fire Protection Association Standard 25, 2013 California Edition. https://catalog.nfpa.org/NFPA-25-Standard-for-the-Inspection-Testing-and-Maintenance-of-WaterBased-Fire-Protection-Systems-with-California-Amendments-P17438.aspx #24..
- 1084 -
20 2. CONTRACTOR shall furnish all labor, materials, tools, equipment, supplies, facilities, vehicle and supervision necessary to provide annual test.
3. Within twenty-four (24) hours of test, CONTRACTOR will provide written notification to Contract Administrator and the City’s Water Department Backflow Administrator ([email protected]) via email of illegal cross-connections, incorrect installations, or any other potential hazard to the water system observed during backflow prevention assembly test.
D. EMERGENCY REPAIR PROCEDURES:
1. During testing, CONTRACTOR will perform repairs as needed at a cost not to exceed those identified in the table below. If the cost of the repair is estimated to exceed these amounts, CONTRACTOR must submit a full repair quote to the Contract Administrator for approval. If requested by Contract Administrator, CONTRACTOR will provide a quote for device repair within 48 hours of request.
Size 0” – 1 ½” 2” 3” 4” and up
Cost $150 $200 $250 $500
2. Quotes for device repairs will require a “Parts List”. The Parts List will consist of any materials and/or supplies needed to complete the repair. These parts will be procured by CITY and provided to CONTRACTOR to complete the quoted repair.
E. RECORDKEEPING AND DELIVERABLES:
1. CONTRACTOR must submit completed Test Report forms which are accurate, readable and complete to the Contract Administrator. Awarded CONTRACTOR to provide copy of their Test Form to the City’s Water Department for approval.
2. Provide Contract Administrator with an electronic PDF file of each completed Test Report form within ten (10) days of passing test. The name of the PDF file must include:
i. Site
ii. Equipment location and street or cross-street. E.g. “Graceada Park – Corner of Stoddard and Sycamore Ave.”
3. Submit the Test Report in a format acceptable to the water purveyor. Test Report forms must be submitted at least three (3) working days before the test due date.
4. All test reports are required to be received by the end of the reporting month. A copy must be submitted to the Contract Administrator and the City’s Water Department.
5. CONTRACTOR shall keep a record of all test reports for three (3) years per the American Water Works Association (AWWA) and make these available to the CITY upon request.
F. GENERAL NOTES:
1. CONTRACTOR shall accomplish any other duties or requirements not included in the Scope of Work but required as per the test procedures identified in Section F, number 2, to ensure the satisfactory completion of the aforementioned testing goals.
2. Test procedures shall be those identified by the California State Water Resources Control Board in the most current edition of the University of Southern California Foundation for Cross-Connection Control book. As of March 2021, the 10th Edition is most current. #24..
- 1085 -
21 California State Water Resources Board
https://www.waterboards.ca.gov/drinking_water/certlic/drinkingwater/Publications.html
3. At the start of work, CONTRACTOR shall provide Contract Administrator with annual test kit calibration documentation for all test kits used prior to annual expiration date.
4. Work Hours – CONTRACTOR will conduct all work during the CITY’s regular business hours Monday – Friday (8:00 am – 5:00 pm). The CONTRACTOR shall be required to receive prior written authorization from the Contract Administrator for any testing outside the CITY’s regular business hours. Such authorization, if granted, would be provided for isolated circumstances and should not be considered to be a standard practice during the performance of this scope of work.
G. COMPENSATION:
CONTRACTOR shall submit an invoice and attach a hard copy for each test report. Invoices shall be submitted within thirty (30) days of test date. To decrease paperwork, CONTRACTOR is encouraged to include multiple test reports with one invoice. A maximum of two (2) invoices can be submitted during any one month.
H. MINIMUM QUALIFICATIONS:
1. All CONTRACTORS are required to hold a current California-Nevada American Water Works Association (CA/NV AWWA) Prevention Assembly Tester certification. A complete list of all testers and a copy of their current certification will be required prior to testing. No testing or test reports will be accepted if certification has expired.
CA/NV American Water Works Association – Certification: https://www.ca-nvawwa.org/canv/CNS/Professional_Certification/CNS/Certification/Certification.aspx?hkey=08011bb 7-c2de-4282-81ea-4d7875e10b84
The Awarded CONTRACTOR must also have a City of Modesto business license.
2. All required certifications expiring during contract period must be renewed and copies supplied to CITY a minimum of thirty (30) days prior to expiration date.
3. Test kits must be those approved by the University of Southern California Foundation for CrossConnection Control and approved by appropriate water purveyors. It is the responsibility of the CONTRACTOR to ensure that test equipment being used is approved by the appropriate water purveyor and that all records of calibrations of said devices are submitted to the water purveyor at the assigned intervals as required by the water purveyor.
USC Foundation for Cross-Connection Control and Hydraulic Research – List of Approved Field Test Kits: https://fccchr.usc.edu/fieldtestkitslist.html
1.1 CITY REPRESENTATIVE:
Work under any resulting contract shall be performed under the general technical guidance and direction of the City "City Representative". The City Representative is not authorized to commit the City to changes in specifications, requirements, or scope of work, changes in price(s), period of performance or delivery date(s) or method of shipment. Changes of a contractual or business nature shall be affected only by written change to the contract, issued by the City of Modesto, Purchasing Division.
1.2 CALIFORNIA LABOR CODE SECTION 1771.1 (a)
#24..
- 1086 -
22 1771.1. (a) A contractor or subcontractor shall not be qualified to bid on, be listed in a bid proposal, subject to the requirements of Section 4104 of the Public Contract Code, or engage in the performance of any contract for public work, as defined in this chapter, unless currently registered and qualified to perform public work pursuant to Section 1725.5. It is not a violation of this section for an unregistered contractor to submit a bid that is authorized by Section 7029.1 of the Business and Professions Code or by Section 10164 or 20103.5 of the Public Contract Code, provided the contractor is registered to perform public work pursuant to Section 1725.5 at the time the contract is awarded.
Workers must be paid no less than the prevailing wage rate as published by the DIR, and Contractor shall maintain certified payroll. For additional information regarding Prevailing Wages, please contact the DIR at www.dir.ca.gov, or call the DIR, Labor Research and Statistics Unit, Prevailing Wage Unit at (415)-703-4774.
1.3 REQUIRED LICENSES:
Prior to beginning any service that shall be furnished under this specification, the bidder shall secure the appropriate Business/Delivery license from the City of Modesto. Business/Delivery license information may be obtained by calling (209) 577-5389.
The successful bidder shall maintain a City of Modesto business license for the duration of the contract.
1.4 INSURANCE:
The CONTRACTOR shall provide, at its own expense, and maintain at all times the following insurance with insurance companies licensed in the State of California and shall provide evidence of such insurance to the CITY as may be required by the City Clerk of the CITY. The policies or certificates thereof shall provide that, thirty (30) days prior to cancellation or material change in the policy, notices of same shall be given to the Risk Manager of the CITY by registered mail, return receipt requested, for all of the following stated insurance policies.
A. Workers' Compensation - in compliance with the statutes of the State of California, plus employer's liability with a minimum limit of liability of $1,000,000.
B. General Liability - insurance with a minimum limit of liability per occurrence of $2,000,000 for bodily injury and property damage. The insurance shall indicate on the certificate of insurance the following coverage and indicate the policy aggregate limit applying to: premises and operations; broad form contractual; independent contractors and subcontractors; products and completed operations.
C. Automobile Liability – insurance with a minimum limit of liability per occurrence of $1,000,000 for bodily injury and property damage. This insurance shall cover any automobile for bodily injury and property damage.
D. Pollution Liability – Pollution liability and/or errors & omissions applicable to the work being performed, with a limit no less than $1,000,000 per claim or occurrence.
If at any time any of said policies shall be unsatisfactory to the CITY, as to form or substance or if a company issuing such policy shall be unsatisfactory to the CITY, the CONTRACTOR shall promptly obtain a new policy, submit the same to Risk Manager for approval and submit a certificate thereof as hereinabove provided.
Upon failure of the CONTRACTOR to furnish, deliver or maintain such insurance and certificates as above provided, this Agreement, at the election of the CITY, may be forthwith declared suspended, or terminated.
Failure of the CONTRACTOR to obtain and/or maintain any required insurance shall not relieve the CONTRACTOR from any liability under this Agreement, nor shall the insurance requirements be construed to #24..
- 1087 -
23 conflict with or otherwise limit the obligations of the CONTRACTOR concerning indemnification. The CITY, it agents, officers, employees, and volunteers shall be named as an additional insured on all insurance policies required herein, except Workers' Compensation.
The Workers' Compensation insurer shall agree to waive all rights of subrogation against the CITY, its agents, officers, employees, and volunteers for losses arising from work performed by CONTRACTOR for the CITY.
The CONTRACTOR's insurance policy(ies) shall include a provision that the coverage is primary as respects the CITY; shall include no special limitations to coverage provided to additional insured; and, shall be placed with insurer(s) with acceptable Best's rating of A: VII or with approval of the Risk Manager. For any claims related to this project, the CONTRACTOR’s insurance coverage shall be primary insurance as respects the Entity, its officers, officials, employees, and volunteers. Any insurance or self-insurance maintained by the Entity, its officers, officials, employees, or volunteers shall be excess of the Contractor’s insurance and shall not contribute with it.
CONTRACTOR shall either require any subcontractor to procure and to maintain during the term of the subcontract all insurance in the amounts specified above, or shall insure the activities of subcontractors in the policy specified above. The limits of liability required may vary, depending on the type of permit or contract.
The successful bidder shall maintain proper insurance with the City for the duration of the contract.
1.5 CONTRACTOR’S RESPONSIBILITY FOR WORK:
Until the formal acceptance of the work by the City Representative, the Contractor shall be responsible for and have care, custody, and control of the work and of the parts, materials and equipment to be used therein, including parts, materials and equipment delivered to the work site. The Contractor shall bear full risk of loss, injury or damage to any part of the work and parts, material or equipment by action of the elements, or from any other cause, whether arising from the execution or non-execution of the work. The Contractor shall rebuild, repair, restore and make whole, all loss or damage to any portion of the work, parts or materials, before final acceptance, and shall bear the expense thereof, except for such loss or damage caused by the acts of the City, State, or Federal Government, or by an act of God as defined in Section 4150 of the California Government Code.
Suspension of work for any cause whatsoever shall not relieve the Contractor of his/her responsibility for the work or parts and materials as specified on the work request.
The Contractor shall be responsible for and remedy all defects arising from faulty, improper or inferior workmanship, or parts and materials discovered in any part of the work, during one year after the completion and acceptance of the work.
The Contractor shall be responsible for any damage his/her activities cause to adjacent public or private property. The Contractor shall take all measures necessary to protect the surrounding area from debris or other damage resultant from the project activities.
1.6 CHARACTER OF WORKERS:
If any person employed by the Contractor fails or refuses to carry out the direction of the City Representative or appears to be incompetent or acts in a disorderly or improper manner, that person shall be discharged immediately from the job on the request of the City Representative or Purchasing Manager, and such person shall not again work on any City job.
#24..
- 1088 -
24 1.7 LABOR FORCE AND SUPERVISION:
The Contractor shall provide sufficient labor at all times to carry out the work properly and shall ensure that competent workers who are skilled in the type of work required are employed. The Contractor shall ensure that supervision is provided at all times while any work under this contract is being performed. If, in the judgment of the City, any person is incompetent or disorderly, Contractor shall promptly remove such person from the work for the duration of the contract.
1.8 DELAY BY THE CITY:
Any act or omission of any kind by the City of Modesto, its officers, agents or employees, which causes the Contractor delay in the completion of the work shall be grounds for extension of time on the part of the Contractor to complete the work, but shall give the Contractor no damages for such delay.
1.9 ADDITIONAL AND EMERGENCY PROTECTION:
Whenever, in the opinion of the City Representative, the Contractor has not taken sufficient precautions for the safety of the public, or property and structures adjacent to the work site, the City Representative may provide suitable protection with or without first notifying the Contractor. The cost and expense of such protection provided by the City shall be borne by the Contractor. The City shall deduct the cost of such protection from any monies due or to become due to the Contractor.
#24..
- 1089 -
25 REQUEST FOR BID AND SPECIFICATIONS NO. 2122-03
BACKFLOW TESTING AND EMERGENCY REPAIRS
GENERAL TERMS AND CONDITIONS
2.0 BID SUBMITTAL:
Bidders should submit two “inked” (preferably blue ink) signed original bid documents, plus two (2) copies of the signed original bid document and One (1) electronic copy submitted via USB. The original bid document shall be clearly marked. Photocopies do not constitute an original bid.
FAILURE TO FURNISH AT LEAST ONE “INKED” SIGNED ORIGINAL BID DOCUMENT MAY RESULT IN DISQUALIFICATION.
It is the responsibility of the bidders to identify information in their bid responses that they consider to be confidential under the California Public Records Act. To the extent that the City agrees with that designation, such information will be held in confidence whenever possible. All other information will be considered public.
All costs associated with the preparation of this bid shall be borne by the bidder.
All exceptions taken to these specifications shall be specifically and clearly identified on Exceptions, Clarifications and Amendments form. Failure to comply with this provision may deem the bid as nonresponsive.
Please review the Sample Annual Agreement and make note on the Exceptions, Clarifications, and Amendments form for any changes.
Exceptions taken shall not affect the overall performance and quality of equipment, materials and/or services required by the City. The Purchasing Manager or designated agent shall make the final decision regarding the acceptability of equipment, materials and/or services with exceptions.
2.1 ACCEPTANCE/REJECTION OF IRREGULAR BIDS:
A contract shall be awarded to the bidder whose bid most closely satisfies the needs of the City and is deemed the most advantageous to the City. The City reserves the right to reject any or all bids or to waive any informalities or minor irregularities in a bid.
2.1.1 COMPLETE BID DOCUMENT:
The following forms constitute the makeup of a complete bid document:
Bid Acknowledgement (Signature Form)
Pricing Schedule (Signature Form)
Exceptions, Clarifications, Amendments (if applicable) References
Financial Interest Disclosure (Signature Form)
Support of Local Vendors (if applicable)
Company History Statement
Addenda Acknowledgement Page (if applicable)
Failure to furnish any of these documents may result in disqualification. #24..
- 1090 -
26 2.1.2 BID PRESENTATION:
Bid submittals should be presented in the order as listed in Section 2.1.1 Complete Bid Document.
2.2 COMPLIANCE:
Bidders are required to sign the “Pricing Schedule and Bid Acknowledgement Form” of this bid document, thereby acknowledging they are in full compliance with all requirements of Bid No. 2122-03, and any addendum to such bid. Failure to comply may result in disqualification.
The bidder guarantees that the offered equipment, material or services meet all safety requirements applicable in accordance with Cal-OSHA regulations and any other rule or regulation required by the City of Modesto.
All permits and licenses necessary for the prosecution of the scope of work shall be secured and paid for by the Contractor, except those secured by the City and so noted.
2.3 PREVAILING WAGES:
The payment of prevailing wages is required for maintenance under this contract and all provisions of Section
7.04 of the General Provisions contained within the City standards shall apply.
2.4 PRICING FORMAT:
All labor, equipment, fuel, licenses, permits and insurance necessary to perform the required services shall be included in bid pricing.
Unless otherwise stated, the bidder agrees that, in the event of a price decline, the benefit of such lower pricing shall be extended to the City.
The City of Modesto shall not pay mileage charges or travel time from the Contractor’s place of business to the job site, or from site to site, or for the Contractor’s travel time to pickup materials.
2.5 PRICING SCHEDULE:
Bidders shall use the pricing schedule provided in this document to present bid pricing. No other form or format shall be accepted
2.6 AWARD OF BID:
Contracts may be awarded to more than one company in order to provide for backup, or in case the “primary” contractor is unable to meet the City’s needs.
The City reserves the right to decline to award a contract if it is determined that the proposed pricing is not competitively priced based on similar contracts with public agencies within the State of California.
The City reserves the right to select that bid, which best suits the City’s needs. Regardless of City staff’s recommendation, the City Council reserves the right to award a contract to the bidder that best suits the City’s needs as determined by the City Council whether or not said award is consistent with City staff’s recommendation for award.
2.7 INSPECTION AND ACCEPTANCE:
Whenever the product or service provided by the supplier has been delivered to the Modesto, California, delivery point, the designated agent shall make the final inspection and acceptance. #24..
- 1091 -
27 If upon initial inspection the product or service is found to be defective in its construction or deficient in any of the requirements of this specification, the supplier shall remedy or remove said product in an acceptable manner at the supplier's expense. No compensation shall be allowed for such correction of product, labor, or transportation of product.
2.8 SUPPORT OF LOCAL VENDORS:
Should the bidder that submits the lowest responsive bid or quote and would otherwise normally qualify to receive the bid pursuant to Sections 8-3.203 and 8-3.204 of the Modesto Municipal Code (MMC) not be a local business as defined herein, the lowest bid or quote submitted by a local business that is within five percent (5%) of the lowest bid or quote, whether or not that bidder is the second lowest bidder, may be deemed to be the lowest bidder if the local bidder agrees to reduce its bid to match the bid or quote of the lowest bidder in writing within five (5) business days after notification by City Purchasing staff, provided that said local bidder is deemed to be a responsible bidder as determined by the Purchasing Manager. To qualify as a local bidder, the bidder must have a physical business location within the City of Modesto and a current City of Modesto business license.
2.9 TERM OF CONTRACT:
The term of the contract shall be for a period of two (2) years, with three (3) one-year extension options at the sole discretion of the City, for a total of five (5) years.
A. Pricing shall remain firm (other than fuel) for the first two (2) years of any contract, which may be awarded pursuant to this RFB.
B. Price adjustments for diesel fuel fluctuations may be considered. A thirty (30) day written notice is required for consideration. Any price adjustment shall be negotiated through the Purchasing Division, and approved at the sole discretion of the City.
The index used to determine price adjustments on diesel fuel shall come from the Energy Information Administration:
Web site: HTTPS://WWW.EIA.GOV/PETROLEUM/GASDIESEL/,California data.
C. Price increases (other than fuel) for subsequent contract years, three (3), four (4) and five (5), shall not exceed the Consumer Price Index (CPI) for West Urban Area in any one (1) contract year, and shall be negotiated through the Purchasing Division. Requests for price increases shall be submitted by Contractor(s) in writing, sixty (60) days prior to the annual anniversary date of the contract to be effective for the subsequent year.
2.10 TERMINATION OF SERVICES:
The City reserves the right to discontinue services with the provider upon failure to meet contractual expectations and/or obligations, as recommended by the site supervisor or his/her agent. Cancellation of services shall be determined by the collaborative efforts of the Purchasing Manager, or designee, and using department after reviewing the incident(s) of failure to perform.
The City reserves the right to review the service providers’ performance at any time with or without the knowledge or consent of the provider.
The City may terminate the agreement at any time with or without cause. #24..
- 1092 -
28 2.11 QUANTITIES:
No minimum or maximum is guaranteed or implied.
2.12 FUNDING:
All annual extensions are based upon continuous funding for that purpose by the City Council. Failure to fund any annual extension shall result in an immediate termination of the agreement without redress.
2.13 OTHER GOVERNMENT/PUBLICLY FUNDED AGENCIES:
If mutually agreeable to all parties, the issuance of any resultant contract/purchase order referencing these specifications and modified by mutual agreement between all parties may be extended to other government or publicly funded agencies. It shall be understood that all terms and conditions as specified herein shall apply.
2.14 NON-DISCRIMINATION:
A. During the performance of this contract, Contractor and its subcontractors shall not unlawfully discriminate against any employee or applicant for employment because of race, color, ancestry, religion, sex, national origin, marital status, age, medical condition (cancer related), physical handicap (including AIDS), or sexual orientation. Equal employment opportunity extends, but is not limited to recruitment, compensation, benefits, layoff, termination, and all other conditions of employment. Contractor and subcontractors shall ensure that the evaluation and treatment of their employees and applicants for employment are free of such discrimination. Contractor and subcontractors shall comply with the provisions of the Fair Employment and Housing Act (Government Code, Section 12900 et seq.) and the applicable regulations promulgated thereunder (California Administrative Code, Title 2, Section 7285.0 et seq.). The applicable regulations of the Fair Employment and Housing Commission implementing Government Code, Section 12900, set forth in Chapter 5 of Division 4 of Title 2 of the California Administrative Code are incorporated into this contract by reference and made a part hereof as if set forth in full.
B. Contractor and its subcontractors shall give written notice of their obligations under this clause to labor organizations with which they have a collective bargaining or other agreement.
C. Contractor shall include the nondiscrimination and compliance provisions of this clause in all subcontracts to perform work under the contract.
D. Contractor shall permit access by representatives of the Department of Fair Employment and Housing and the City upon reasonable notice at any time during the normal business hours, but in no case less than twenty-four (24) hours notice, to such of its books, records, accounts, other sources of information and its facilities as said Department or City shall require to ascertain compliance with this clause.
2.15 NON-DISCRIMINATION OF THE HANDICAPPED:
CERTIFICATION OF BIDDER REGARDING NON-DISCRIMINATION OF THE HANDICAPPED By executing this agreement, the bidder hereby certifies that he/she is in compliance with the Americans with Disabilities Act of 1990, the applicable administrative requirements promulgated in response thereto, and any other applicable Federal laws and regulations relating to handicap discrimination and participation, and will continue to do so for at least the duration of the agreement and any extensions thereof.
#24..
- 1093 -
29 2.16 DRUG FREE WORKPLACE:
Bidder/Contractor certifies that he/she is in compliance with Sections 8350 - 8355 of Chapter 5.5 of the Government Code, Drug Free Workplace Act. Every person or organization awarded a contract/purchase order or grant for the procurement of any property or service from any state agency (city) shall certify to the contracting or granting agency that it will provide a drug free workplace.
2.17 INDEMNITY:
The Contractor shall hold the city, its agents, officers, employees, and volunteers, harmless from and save, defend and indemnify them against any and all claims, losses, liabilities, judgements or damages from every cause, including but not limited to injury to person or property or wrongful death, including reasonable costs and expenses of defense of any judicial or administrative action, arising directly or indirectly out of any negligent or intentional act or omission of Contractor, or its agents, officers, employees, or volunteers relating to or during the performance of its obligations under this bid. Contractor’s obligation to defend, indemnify, and hold the city, its agents, officers, and employees harmless under the provisions of this paragraph is not limited to or restricted by any requirement in this bid for Contractor to procure and maintain a policy of insurance. In the indemnity clause contained herein Contractor agrees to defend, indemnify and hold city harmless from the negligence of its employees, among other risks. With reference to the foregoing, the parties agree that all risk of loss, including but not limited to damages, property losses and defense of third-party suits, arising out of or relation to the operation of city owned vehicles by Contractor’s employees is apportioned to Contractor in accordance with the provisions contained in indemnity.
2.18 ASSIGNMENT OF RIGHTS:
CONTRACTOR offers and agrees, and will require all subcontractors and suppliers to agree, to assign to the CITY all rights, title, and interest in and to all causes of action it and they may have under Section 4 of the Clayton Act (15 United States code, Section 15) or under the Cartwright Act (Business and Professions Code, Section 16700 et seq.), arising from the purchase of goods, services, or materials pursuant to this contract or any subcontract. The assignment made by CONTRACTOR and all assignments made by subcontractors and suppliers shall be made and become effective at the time the CITY tenders final payment to CONTRACTOR, without further acknowledgment by the parties (Government Code, Sections 4550-4554).
2.19 CITY PROCESS/PROCEDURE APPROVALS:
CITY approval of any process or procedure shall not relieve the bidder of his/her responsibility to furnish the required items and service meeting all specifications contained herein.
2.20 BIDDER/SELLER REPRESENTATION:
The bidder/seller represents that:
A. He/She has had an opportunity to examine and has examined any and all of the documents, including specifications, any resultant purchase order and supporting data, and that he/she has, from the information contained in such documents, specifications, and data, fully acquainted him/her with all conditions relevant to the work.
B. He/She has made all reasonable investigations essential to a full understanding of the difficulties, which may be encountered in performing the work.
C. He/She will complete the work for the compensation stated above.
D. He/She assumes full and complete responsibility for all conditions relevant to the work and all risks in connection therewith.
#24..
- 1094 -
30 E. In addition, thereto, the bidder/seller represents that he/she is fully qualified to do the work in accordance with the terms of any Purchase Order or agreement issued within the time specified in it.
2.21 FAILURE TO PERFORM SATISFACTORY:
It is agreed and understood that if the CONTRACTOR fails to perform the work as specified herein, CITY's representative may (1) consent to accept such unsatisfactory service with an appropriate adjustment in contract price, based on established cost factors, (2) have such required work done by CITY forces or otherwise, and charge the cost thereof to the CONTRACTOR, or (3) recommend termination of contract between said CONTRACTOR and the City of Modesto. Those discrepancies and deficiencies in the work that remains uncorrected after the date set for correction may be the necessary justification for a billing adjustment in the month following the occurrence. Unless otherwise negotiated, billing adjustments for this incomplete or uncorrected work shall be permanent retention of 100% of the estimated monthly cost for the work not corrected or completed.
2.22 CONTRACTOR'S RESPONSIBILITY FOR DAMAGES:
If CONTRACTOR damages any property belonging to the CITY or private property by the Contractor or his employees or agents, the Contractor will be required to make repairs immediately. The CITY may either retain from the money due to CONTRACTOR an amount sufficient to repair the damage or require CONTRACTOR to repair the damage to the satisfaction of the CITY at CONTRACTOR's expense.
2.23 LABOR FORCE AND SUPERVISION:
CONTRACTOR shall provide sufficient labor at all times to carry out the project properly and shall ensure that fully experienced competent licensed workers who are skilled in the type of work required are employed.
CONTRACTOR shall ensure that supervision is provided at all times while any work under this contract is being performed. If, in the judgment of the CITY, any person is incompetent or disorderly, CONTRACTOR shall promptly remove such person from the work for the duration of the contract.
2.24 PROTEST AND APPEAL PROCEDURES:
Potential offerors, bidders, contractors, and subcontractors wishing to protest or appeal a procurement or contracting decision by the City of Modesto must follow the procedures provided by the section. Protests or appeals which are not submitted in accordance with these procedures will not be reviewed.
DEFINITIONS
For the purposes of this procedure: "Days" means working days in which City Hall is open for business, excluding holidays and weekends.
"Filing Date" or "Submission Date" means the date of receipt by the City Clerk’s office of the City of Modesto. "Interested Party" means an actual or prospective bidder or offeror, or any contractor or subcontractor identified by name in any bid or proposal.
"Bid" includes the term "offer" or "proposal" as used in the context of formal, informal, or negotiated procurements.
"Announced Decision" includes the term “Notice of Intent to Award Letter”. Once the City has issued an Announced Decision, the date noted will begin the time that an Interested Party may lodge a protest.
Procurements valued at $50,000 or less normally will not have an Announced Decision. #24..
- 1095 -
31 A. PROTEST PROCEDURES
1. Any interested party may lodge a written protest to an Announced Decision with the City of Modesto's Purchasing Manager no later than ten (10) days after the Announced Decision.
2. The protest shall be delivered or sent by registered mail and postmarked by the deadline, or protest will be automatically rejected. Protestors who choose to be represented by legal counsel are responsible for the associated expenses.
3. The protest shall be accompanied by a certified or cashier's check in the amount of $300.00, (EXCEPT FOR PROTESTS OF FEDERALLY FUNDED PROJECTS) or in such other sum as the City may establish, made payable to the Clerk of the City of Modesto. Protests filed without the requisite fee will be rejected without any additional review.
4. The protest filed with the Purchasing Manager shall:
a. Include the name, address, and business telephone number of the protestor; b. Identify the project under protest by name, Request for Bid (RFB)/Request for Proposal (RFP) number, and bid/RFP date;
c. Contain a concise statement of the grounds for protest; d. Include all supporting documentation, if any. Documentation submitted after filing deadline will not be reviewed.
All protests shall either be delivered to:
City Clerk’s Office
Attn: Purchasing Manager
1010 Tenth St. Suite 6600
Modesto CA 95354
Or mailed to:
City Clerk’s Office
Attn: Purchasing Manager
PO Box 642
Modesto CA 95353
B. PROTEST REVIEW (ANNOUNCED DECISION)
1. Protest to Purchasing Manager
Upon receipt of a complete and timely protest, the Purchasing Manager shall review all the submitted materials and shall create and retain a written record of the review. The Purchasing Manager shall respond at least generally to each material issue raised in the protest not later than ten (10) days after receipt of the protest. Notice of the Purchasing Manager's decision may be given by letter mailed through U.S. Postal Service.
2. Appeal to Deputy City Manager
The Purchasing Manager's decision may be appealed in writing to the City of Modesto's Deputy City Manager(s) no later than ten (10) days after the date of the Purchasing Manager’s Decision. #24..
- 1096 -
32 The scope of the appeal shall be limited by the issues raised in the initial protest to the Purchasing Manager. The Deputy City Manager shall not be permitted to review any newly raised issues. The Deputy City Manager shall review the appeal, accompanying supporting documents, if any, and the written record of the protest review by the Purchasing Manager.
A written record of the Deputy City Manager's review shall be created and maintained. The Deputy City Manager shall give notice of his or her decision to the protestor within ten (10) days after receipt of appeal.
All protest appeals shall either be delivered to:
City Clerk’s Office
Attn: Deputy City Manager
1010 Tenth St. Suite 6600
Modesto CA 95354
Or mailed to:
City Clerk’s Office
Attn: Deputy City Manager
PO Box 642
Modesto CA 95353
3. Appeal to City Council
Any protestor seeking to appeal to the decision of the Deputy City Manager may appeal in writing to the City Council by filing with the City Clerk a written notice of such appeal not later than fifteen (15) business days after the date of the Deputy City Manager's decision.
The City Clerk will calendar the protest for Council hearing and give notice of the time and place of the hearing as provided in Modesto Municipal Code Sections 1-4.01 through 1-4.05.
The City Council is the highest authority of the City of Modesto. It is possible that the City Council may reverse the decision of any City staff member at the hearing, or provide other direction to staff. In such cases, staff cannot reverse a City Council decision.
All protests shall either be delivered to:
City Clerk’s Office
Attn: City Council
1010 Tenth St. Suite 6600
Modesto CA 95354
Or mailed to:
City Clerk’s Office
Attn: City Council
PO Box 642
Modesto CA 95353
#24..
- 1097 -
33 C. PROTESTS OF PROCUREMENTS EXCEEDING $250,000.00
Interested parties protesting procurements exceeding $250,000.00 shall comply with the procedures contained herein, except that in lieu of appeal to the Deputy City Manager, a protestor may request that the protest be heard and decided at an administrative hearing.
A written request for administrative hearing shall be accompanied by a certified or cashier's check in the amount of $1,500.00, (EXCEPT FOR PROTESTS OF FEDERALLY FUNDED PROJECTS; Refer to Purchasing Procedures Manual for the Transit Division and Federal Transit Administration Funded Purchases, Chapter 14) payable to the City of Modesto, and shall be received by the Purchasing Manager not later than fifteen (15) days after dispatch of the Purchasing Manager's decision. The request for hearing shall include the specific grounds of the appeal.
The City of Modesto shall select and engage an impartial and qualified person to act as hearing officer in the pending protest. The protestor shall have the right to twice reject the selected hearing officer, provided that the City is notified of such rejection within three (3) days of notice to protestor of the name of the hearing officer.
The protest shall be heard not later than twenty (20) days after receipt of protestor's request for hearing and the selection of a hearing officer. Protests not heard in a timely manner shall be deemed withdrawn, unless the City and the protestor mutually agree otherwise in writing. The protestor’s failure to accept a hearing officer after the third attempt by City staff to identify an impartial hearing officer shall be deemed a withdrawal of the protest.
The costs of the hearing officer and expenses of the protest shall be borne by the protestor. The sums deposited with the request for hearing shall be credited to the costs of the hearing officer and other hearing expenses.
The decision of the hearing officer shall be deemed as the final decision of the City, and no other appeal to City Staff or body shall be permitted.
D. PROCUREMENTS OBTAINED WITH FEDERAL FUNDS
1. If the protested procurement involves federal funds, e.g., from the Federal Transit Administration (FTA) of the United States, the Deputy City Manager, City Council, or hearing officer shall give notice, accompanying their respective decisions, to the protestor that he or she has the right to appeal to the appropriate federal agency, for which an agency name, contact (where available) and address shall be provided by City staff. Such an appeal shall be filed with the appropriate agency within seven (7) business days of the dispatch or rejection notices to the protestor. Federal agencies may entertain protests alleging that the City has failed to adopt written protest procedures or has failed to follow such procedures. Appeals to the Federal Transit Administration (FTA) shall comply with FTA Circular 4220.1E and the amendments and supplements thereto. Additional information regarding protesting procurements obtained with Federal Funds can be found in the Purchasing Procedures Manual for the Transit Division and Federal Transit Administration Funded Purchases, Chapter 14.
2. The City Council is the highest authority of the City of Modesto. It is possible that the City Council may reverse the decision of any City staff member at the hearing before Council on the procurement at hand. In such cases, no internal appeal is possible since staff may in no #24..
- 1098 -
34 case reverse a City Council decision. In such an event, a disappointed transit bidder or a contract involving expenditures of Federal funds shall have the right to appeal the City Council decision directly to the Federal Transit Administration.
2.25 PAYMENT:
Paper Payment Method:
All invoices shall be paid in full within thirty (30) days after completion and acceptance of the vehicles by the City, and receipt of a properly prepared invoice in duplicate, subject to cash discounts allowed and stated in this bid document.
Electronic Payment Method:
The City of Modesto provides an Epay Program which involves payment of invoices by a secure Visa account number assigned to the supplier after award of bid or contract. Notification of payments and required invoice information are issued to the supplier’s designed Accounts Receivable contact by email remittance advice at time of payment.
During the bid evaluation process preference may be shown to bidders that agree to accept Epay for payment of invoices. Please indicate on the Pricing Schedule whether or not your company will accept the City’s Epay Program.
Invoice to: City of Modesto
Attn: Accounts Payable
P.O. Box 642
Modesto, CA 95353
Email to: [email protected]
2.26 SAMPLE ANNUAL AGREEMENT:
Please review the Sample Agreement. This Agreement may be modified and subject to change. #24..
- 1099 -
35 SAMPLE AGREEMENT
This Agreement, made and entered into in the City of Modesto, State of California, this ____ day of _________, 2022, by and between the City of Modesto, a municipal corporation of the State of California, hereinafter called CITY, and ______________ hereinafter called CONTRACTOR.
W I T N E S S E T H:
WHEREAS, the Modesto City Council adopted Resolution No. 2022-_______ authorizing the award of bid and contract for the furnishing of Backflow Testing & Repair Services to ______________________ attached hereto as Exhibit “A” and made a part hereof, and WHEREAS, the CONTRACTOR provided a responsive and responsible submittal to RFB 2122- 03 for Backflow Testing & Repair Services that best meets CITY needs, and WHEREAS, the CONTRACTOR shall provide services to CITY as defined in the “Submittal”, attached hereto as Exhibit “B” and made a part hereof, and WHEREAS, the CITY and CONTRACTOR shall enter into an agreement for the furnishing of Backflow Testing & Repair Services, as described in RFB 2122-03, attached hereto as Exhibit “C” and made a part hereof, and
NOW, THEREFORE, the parties hereto mutually agree as follows:
1. SCOPE OF WORK.
a. CONTRACTOR shall furnish Backflow Testing & Repair Services, in strict accordance with the conditions of the complete Contract. b. CONTRACTOR shall do and perform the work in a professional and businesslike manner under the direction of and to the satisfaction of the CITY. c. CONTRACTOR shall perform its duties under this Agreement in accordance with the standard(s) of care prevailing in its industry.
d. CONTRACTOR shall maintain proper insurance with the CITY for the duration of the contract.
#24..
- 1100 -
36 e. CONTRACTOR shall maintain a CITY business license for the duration of the contract.
f. CONTRACTOR shall furnish the service defined for the following contracted rates, not to exceed $__________ annually:
2. CITY CONTACT:
Kathy Crandall, Buyer Ph: (209) 577-5420
Purchasing Department Ph: (209) 577-5405
Changes of a contractual or business nature shall be affected only by written change to the contract, issued by the City of Modesto, Purchasing Division.
3. TERM OF CONTRACT:
The term of the contract shall be for a period of two (2) years, with three (3) one-year extension options.
Year 1: May 1, 2022 through April 30, 2023
Year 2: May 1, 2023 through April 30, 2024
Year 3: May 1, 2024 through April 30, 2025
Year 4: May 1, 2025 through April 30, 2026
Year 5: May 1, 2026 through April 30, 2027
This Agreement may be renewed for three (3) additional one-year terms by mutual, written agreement of the parties. Such renewal shall be in written form.
Price will remain firm for the first two (2) years of the contract. Price increases for subsequent contract years three (3) through five (5) shall not exceed the Consumer Price Index (CPI) in any one contract year and shall be negotiated through the Purchasing Division. Request for price increases shall be submitted by CONTRACTOR in writing, sixty (60) days prior to the annual anniversary date of the contract to be effective for the subsequent year. Price adjustments for diesel fuel fluctuations may be considered. A thirty (30) day written notice is required for consideration. Any price adjustment shall be negotiated through the Purchasing Division, and approved at the sole discretion of the City.
The index used to determine price adjustments on diesel fuel shall come from the Energy Information Administration:
#24..
- 1101 -
37 4. LIABILITY INSURANCE:
CONTRACTOR shall provide at its own expense and maintain at all times the following insurance with insurance companies licensed in the State of California and shall provide evidence of such insurance to CITY as may be required by the Risk Manager. The policies or certificates thereof shall provide that, thirty (30) days prior to cancellation or material change in the policy, notices of same shall be given to the Risk Manager of CITY by registered mail, return receipt requested, for all of the following stated insurance policies.
(a) Workers' Compensation - In compliance with the statutes of the State of California, plus employer's liability with a minimum limit of liability of $1,000,000 (b) General Liability insurance with a minimum limit of liability per occurrence of $1,000,000 and $2,000,000 aggregate for bodily injury and property damage. If Commercial General Liability Insurance or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice the required occurrence limit. This insurance shall indicate on the certificate of insurance the following coverages and indicate the policy aggregate limit applying to: premises and operations; broad form contractual; independent Contractors and subcontractors; products and completed operations as applicable.
(c) Automobile Liability insurance with a minimum limit of liability per occurrence of $1,000,000 for bodily injury and property damage. This insurance shall cover any automobile for bodily injury and property damage.
(d) Waiver of Subrogation - Form required
(e) Additional Insured Status-endorsement – The City of Modesto its officers, officials, employees, agents and volunteers are to be covered as additional insureds. #24..
- 1102 -
38 If at any time any of said policies shall be unsatisfactory to CITY, as to form or substance, or if a company issuing such policy shall be unsatisfactory to CITY, CONTRACTOR shall promptly obtain a new policy, submit the same to Risk Manager of CITY for approval and submit a certificate thereof as herein above provided. Upon failure of CONTRACTOR to furnish, deliver or maintain such insurance and certificates as above provided, this Agreement, at the election of CITY, may be forthwith declared suspended, or terminated. Failure of CONTRACTOR to obtain and/or maintain any required insurance shall not relieve CONTRACTOR from any liability under this Agreement, nor shall the insurance requirements be construed to conflict with or otherwise limit the obligations of CONTRACTOR concerning indemnification. CITY, and its agents, officers, officials, employees, and volunteers shall be named as an additional insured on all insurance polices required herein, except Workers’ Compensation, Professional Liability and Financial Institution’s Fidelity. The Workers’ Compensation insurer shall agree to waive all rights of subrogation against CITY, its agents, officers, employees, and volunteers for losses arising from work performed by CONTRACTOR for CITY. CONTRACTOR’S insurance policy(ies) shall include a provision that the coverage is primary as respects CITY; shall include no special limitations to coverage provided to additional insured; and, shall be placed with insurer(s) with acceptable Best’s rating of A:VII or with approval of the Risk Manager of CITY. The CONTRACTOR must deliver certificates evidencing existence of the insurance to the City prior to the time contract is signed.
CONTRACTOR agrees to provide CITY with a separate endorsement evidencing proof of City’s additional insured status required herein (both general and automobile liability) as well as a separate endorsement for the Workers’ Compensation insurer’s waiver of all subrogation rights as stated above.
Every endorsement shall identify the policy number.
CONTRACTOR shall provide CITY with separate an endorsement evidencing proof of the CITY’s additional insured status as to the general liability insurance policy. In addition, CONTRACTOR shall provide CITY with a Workers Compensation subrogation waiver by way of a separate endorsement. All endorsements referenced above must include the applicable policy number. #24..
- 1103 -
39 For any claims related to this project, the CONTRACTOR’S insurance coverage shall be primary insurance as respects the Entity, its agents, officers, officials, employees, and volunteers. Any insurance or selfinsurance maintained by the Entity, its agents, officers, officials, employees, or volunteers shall be excess of the CONTRACTOR’S insurance and shall not contribute with it.
CONTRACTOR further agrees that the amount of insurance required may from time to time be adjusted by CITY’s Risk Manager and CONTRACTOR agrees to file a new insurance certificate with CITY’s Risk Services Division evidencing the new amounts after a thirty (30) day written notice from CITY’s Risk Manager.
5. PAYMENT:
CONTRACTOR shall invoice CITY on a monthly basis. All invoices shall be paid in full within thirty (30) days after completion and acceptance of the service by the City, and receipt of a properly prepared invoice in duplicate, subject to cash discounts allowed and stated in this proposal document.
The City is exempt from payment of Federal Excise Tax, and all invoices shall be exclusive of such excise tax.
Invoice to: City of Modesto
Attn: Accounts Payable
P.O. Box 642
Modesto, CA 95353
[email protected]
CONTRACTOR shall establish a separate billing account number for each CITY department and/or division.
At a minimum invoice shall state the following:
Reference Annual Agreement #: _____________________
City department/division name and address
Billing period
Unit price, extended price, sales tax and total
6. INDEMNITY:
The CONTRACTOR shall hold the CITY, its agents, officers, employees, and volunteers, harmless from and save, defend and indemnify them against any and all claims, losses, liabilities, judgments or #24..
- 1104 -
40 damages from every cause, including but not limited to injury to person or property or wrongful death, including reasonable costs and expenses of defense of any judicial or administrative action, arising directly or indirectly out of any negligent or intentional act or omission of CONTRACTOR, or its agents, officers, employees, or volunteers relating to or during the performance of its obligations under this Agreement.
CONTRACTOR’S obligation to defend, indemnify, and hold the CITY, its agents, officers, and employees harmless under the provisions of this paragraph is not limited to or restricted by any requirement in this Agreement for CONTRACTOR to procure and maintain a policy of insurance.
In the indemnity clause contained herein CONTRACTOR agrees to defend, indemnify and hold CITY harmless from the negligence of its employees, among other risks. With reference to the foregoing, the parties agree that all risk of loss, including but not limited to damages, property losses and defense of third party suits, arising out of or relating to the operation of CITY owned vehicles by CONTRACTOR’S employees is apportioned to CONTRACTOR in accordance with the provisions contained in Indemnity 6.
7. ARBITRATION:
Any dispute or claim arising or related to this Agreement, its performance, breach, or interpretation (including issues about its validity or enforceability), shall be exclusively, (except as approved below) resolved by final binding arbitration before the American Arbitration Association (AAA), utilizing its Commercial Arbitration Rules. One Arbitrator shall be selected using AAA procedures. The Arbitrator shall use all reasonable efforts to minimize discovery and to complete the arbitration proceedings as expeditiously as possible. The Arbitrator shall render a written decision within thirty (30) calendar days of the hearing. The Arbitrator will not award attorney’s fees, or punitive, incidental, consequential, treble or other multiple or exemplary damages, and the parties hereby agree to waive and not seek such damages. Either party may seek judicial relief to compel the other party to comply with the provisions of this Section, or injunctive or other equitable relief to protect its intellectual property rights, provided (unless prohibited by applicable law) that the remainder of the dispute or claim is submitted to arbitration. The arbitration shall be held in Modesto, California; both parties give their irrevocable consent to jurisdiction of courts of or in the State of California, as #24..
- 1105 -
41 well as processes of the AAA in California. Awards shall be final, binding and non-appealable (except on the minimal grounds required under the Federal Arbitration Act or other applicable law). All awards may be filed with one or more courts, state, federal or foreign having jurisdiction over the party against whom such award is rendered or its property, as a basis of judgment and of the issuance of execution for its collection.
8. GOVERNING LAW:
This Agreement shall be deemed made in, governed by, performed in, and construed and enforced in accordance with the laws of the State of California, U.S.A., without giving effect to its conflicts of laws provisions or principles.
9. COMMENCEMENT AND COMPLETION OF THE WORK:
The work contemplated herein shall be commenced as soon as possible after receipt of the Notice to Proceed for this contract. The Notice to Proceed shall not be issued until the contract administrator receives and has on file:
Proofs of insurance (approved by Risk Management);
Executed Agreement;
a. Resolution No. ____________ attached hereto as Exhibit “A” and made a part hereof; b. Bid Submittal, attached hereto as Exhibit “B” and made a part hereof; c. RFB 2122-03, attached hereto as Exhibit “C” and made a part hereof;
10. TERMINATION OF SERVICES:
Termination by City for Default of CONTRACTOR
Should CONTRACTOR default in the performance of this Agreement or materially breach any of its provisions, at its option, City may terminate this Agreement by giving written notification to CONTRACTOR. The termination date shall be the effective date of the notice. For the purposes of this section, material breach of this Agreement shall include, but not be limited to, any of the following: failure to perform required services or duties, willful destruction of City's property by Contractor, dishonesty or theft.
Termination by City for Convenience
#24..
- 1106 -
42 The City may also terminate the CONTRACTOR’S performance under the Agreement, either in whole or in part, at its own discretion, or when conditions encountered during the Work make it impossible or impracticable to proceed, or when the City is prevented from proceeding with the Agreement by act of God, by law, or by official action of a public authority, or upon a determination by the City that such termination is in the best interest and convenience of the City, or whenever the City is prohibited from completing the Work for any reason.
The City shall provide no less than ten (10) calendar days written notice of its intent to terminate the Agreement for convenience, and shall endeavor to provide the Contractor with consultation with the City prior to termination.
Post-Termination Procedure
Upon receipt of a written notice of termination pursuant to either of the foregoing paragraphs, the CONTRACTOR shall:
a. Cease its work as directed in the notice of termination as of the termination date and see to it that its employees, sub-contractors and agents are notified of such termination and act as specified in the notice of termination; b. Terminate all orders and Subcontractors except as necessary to complete any portion of the Work that is not terminated;
c. If directed in writing by the City to do so, assign all right, title and interest in subcontracts and materials in progress to City, in which case the City will have the right at its discretion to settle, or pay any or all claims arising out of the termination of such Sub-contractors, but in no event shall recovery by any CONTRACTOR or Sub-contractors include lost profits for portions of the Work not completed or undertaken, including materials not delivered; d. Deliver or otherwise make available to the City all data, drawings, specifications, reports, estimates, summaries and such other information and material as may have been accumulated by the CONTRACTOR in performing the Work whether completed or in process;
#24..
- 1107 -
43 e. Settle outstanding liabilities and claims, subject to the approval of City; f. Complete performance of such part of the Work as has not been terminated; g. Take such other actions as may be necessary, or as may be directed by the City for the protection and preservation of the Work and/or property related to the Work; h. If City so requests, and at City's cost, CONTRACTOR shall provide sufficient oral or written status reports to make City reasonably aware of the status of CONTRACTOR’S work on the project.
i. The CONTRACTOR understands and agrees that City may, in City's sole discretion, refuse to pay CONTRACTOR for that portion of CONTRACTOR’S services which were performed by CONTRACTOR on the project prior to the termination date and which remain unacceptable and/or not useful to City as of the termination date.
City will pay CONTRACTOR an amount based on the percentage of satisfactory work completed in accordance with the notice of termination. The final payment to the CONTRACTOR after termination for convenience shall be limited to amounts due and owing under the Agreement at time of termination, including the following:
a. The cost of settling and paying valid claims arising out of the termination of the Work such as subcontractor agreements or contracts for materials; b. The Agreement price allocable to the portion of the Work properly performed or goods supplied to the work site by the CONTRACTOR as of the date of termination, as determined in accordance with the notice of termination, reduced by any sums previously paid to the CONTRACTOR.
Authorization to Terminate Agreement
Termination of the Agreement may be invoked by the City Manager, or his/her designee, subject to the right of the CONTRACTOR to appeal the City Manager, or his/her designee’s, decision to the #24..
- 1108 -
44 City Council. The CONTRACTOR shall appeal by notifying the City Clerk in writing within ten (10) calendar days of receipt of written notification from City of termination of the Agreement. In the event that termination of this Agreement is upheld by the City Council, any cessation of payment of delay claims, extended claims, Eichleay claims, or any other claims for delay shall be retroactive to the date of termination selected by the City Manager, or his/her designee.
11. COMPLIANCE WITH ALL LAWS:
CONTRACTOR hereby agrees that CONTRACTOR and its subcontractors, if any, in the performance of the work described, designated and herein referred to, will comply with all federal, state, county and municipal laws, rules and regulations which may be applicable to the work herein contracted for, whether now in existence or hereafter adopted.
12. CONTRACT DOCUMENTS:
The complete contract between the parties hereto consists of this agreement, and all exhibits, and the following documents which are incorporated herein by this reference:
a. Resolution No. ____________ attached hereto as Exhibit “A” and made a part hereof; b. Response to Request for Bid (RFB) and Specifications NO. 2122-03 For Backflow Prevention Testing & Repairs, attached hereto as Exhibit “B” and made a part hereof; c. RFB 2122-03, attached hereto as Exhibit “C” and made a part hereof; d. Proof of Insurance
e. Business License
These documents include important legal requirements, procedures and restrictions and should be reviewed by CONTRACTOR. They are available for review during normal business hours in the Department of Finance, Purchasing Division). All documents specified above are intended to operate so that any work called for in any one and not mentioned in the other, or vice versa, is to be executed the same as if mentioned in all said documents.
13. NOTICES:
#24..
- 1109 -
45 Any notice, payment or instrument required or permitted by this Contract to be given or delivered to either party shall be deemed to have been received when personally delivered, or one calendar week following deposit of the same in any United States Post Office, registered or certified mail, postage prepaid, addressed as follows:
CONTRACTOR _______________________
_______________________
_______________________
CITY: City of Modesto
Purchasing Division
P.O. Box 642
Modesto, CA 95353
Each party may change its address for delivery of notice by delivering written notice of such change of address to the other party.
14. SIGNATOR(IES) FOR CONTRACTOR:
The undersigned signator(ies) for CONTRACTOR warrant(s) and represent(s) that he/she/they is/are legally competent to execute the contract and has/have full authority to execute this contract.
15. ASSIGNMENT:
Neither this agreement nor any portion thereof shall be subcontracted or assigned without the written consent of the CITY in each and every instance.
16. WAIVER.
The waiver by any party to this Agreement of a breach of any provision hereof shall be in writing and shall not operate or be construed as a waiver of any other or subsequent breach hereof unless specifically stated in writing.
17. HEADINGS NOT CONTROLLING.
Headings used in the Agreement are for reference purposes only and shall not be considered in construing this Agreement
18. MISCELLANEOUS:
#24..
- 1110 -
46 Time is of the essence in every provision of this contract.
19. ENTIRE AGREEMENT.
This Agreement and its exhibits contain the entire understanding between Consultant and City.
Additional or new terms contained in this Agreement which vary from Consultant's proposal are controlling and are deemed accepted by Consultant by shipment of any article or other commencement of performance hereunder. All previous proposals, offers and communications relative to this Agreement, whether oral or written, are hereby superseded except to the extent that they have been incorporated into this Agreement. No future waiver of or exception to any of the terms, conditions, and provisions of this Agreement shall be considered valid unless specifically agreed to in writing by all the parties.
20. PARTIAL INVALIDITY.
If any provision in this Agreement is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remaining provisions shall nevertheless continue in full force without being impaired or invalidated in any way.
IN WITNESS WHEREOF, the CITY OF MODESTO, a municipal corporation, has authorized the execution of this Agreement in duplicate by City Manager and attested by its City Clerk under authority of Resolution No. _________, adopted by the Council of the City of Modesto on the _____________ day of _____________________, 2022 and _____________________has caused this Agreement to be duly executed. #24..
- 1111 -
47 A municipal corporation
By:__________________________ By:_________________________________ JOSEPH P. LOPEZ (Signature)
CITY Manager
By:_________________________________
(Name & Title)
ATTEST: Date:_______________________________
By:______________________ By:_________________________________ DANA SANCHEZ (Signature)
Interim City Clerk
By: _________________________________
(SEAL) (Name & Title)
Date:_______________________________
APPROVED AS TO FORM:
By:_________________________________
JOSE M. SANCHEZ
Acting City Attorney
By:_____________________________
CHRISTINA D. ALGER
City Human Resources Manager (Risk)
Signature Requirements
Corporation:
1.Signature of two (2) officers
or
2.Signature of one (1) officer plus the
corporate seal.
Partnership: Signature of one partner
Sole Proprietorship: Signature of proprietor
#24..
- 1112 -
48 PRICING SCHEDULE PAGE 1
REQUEST FOR BID AND SPECIFICATIONS NO. 2122-03
BACKFLOW TESTING & EMERGENCY REPAIRS
PRICING SCHEDULE PAGE 1
All labor, equipment, tools, fuel and insurance necessary to perform the required services shall be included in bid pricing. Bid must be submitted on the Pricing Schedule provided. No alterations should be made to the pricing schedule. Any exceptions, amendments or adjustments should be noted on the “Exception, Clarification, and Amendments page”.
All labor, materials/hardware, tools, equipment, licenses, mileage and insurance necessary to perform the required job shall be included in bid pricing. Quote shall include cost to conduct annual testing and certification (averaging approximately 40-45 units per month), make minor adjustments and prepare written diagnosis with recommendations for corrective measures as necessary. Monthly communication with contract administrator for units tested and or emergency repairs needed. Provide hourly cost for emergency repairs per size of unit.
ENTER QUOTE PER SINGLE UNIT IN EACH SIZE CATEGORY
PAYMENT OF PREVAILING WAGES REQUIRED
Manufacturer / Type over 90% are Febco for parts/materials, however the City may contain devices from other manufacturers such as Ames, Rain Bird, Watts and Wilkins List Unit Price
Estimated
Annual Quantity:
6 +/- 50 +/- 65 +/- 130 +/- 13 +/- 50 +/- 6 +/-
Size: ¾" 1" 1-½" 2" 3" 4" 6"
Double Check
(DC) $ $ $ $ $ $ $
Pressure Vaccum
Breaker (PVB) $ $ $ $ $ $ $
Reduce Pressure
(RP) $ $ $ $ $ $ $
TOTAL $ $ $ $ $ $ $
Please provide your markup percentage _________% NTE 10%. #24..
- 1113 -
49 PRICING SCHEDULE PAGE 2
Modesto Fire Department
All labor, materials/hardware, tools, equipment, licenses, mileage and insurance necessary to perform the required job shall be included in bid pricing. Quote shall include cost to conduct annual testing and certification (averaging approximately 2 units per month), make minor adjustments and prepare written diagnosis with recommendations for corrective measures as necessary. Monthly communication with contract administrator for units tested and or emergency repairs needed. Provide hourly cost for emergency repairs per size of unit.
PAYMENT OF PREVAILING WAGES REQUIRED
Manufacturer / Type over 90% are Febco, for Parts/Materials however the City may contain devices from other manufacturers such as Ames, Rain, Watts and Wilkins List Unit Price (Per Test)
Estimated
Annual
Quantity:
2 1 2 9 1
Size: ¾" 1-1/4” 1-½" 2" 8”
Double
Check (DC) $
Double
Check
Detector
Assembly
(DCDA) $
Pressure
Vacuum
Breaker
(PVB) $
Reduce
Pressure (RP) $
TOTAL $ $ $ $ $
Please provide your markup percentage _________% NTE 10%. #24..
- 1114 -
#24..
- 1115 -
#24..
- 1116 -
#24..
- 1117 -
#24..
- 1118 -
#24..
- 1119 -
#24..
- 1120 -
#24..
- 1121 -
#24..
- 1122 -
#24..
- 1123 -
CITY OF MODESTO
COUNCIL AGENDA REPORT
DATE OF MEETING:
March 8, 2022
Date: February 16, 2022
TO: Mayor and City Council
THROUGH: Joseph P. Lopez, City Manager
FROM: Laurie A. Smith, Director of Parks, Recreation & Neighborhoods SUBJECT: Agreement for Discing and Flail Mowing Services CONTACT: Kelly Gallagher, Park Operations Manager, [email protected], (209)342-2270
DESCRIPTION:
Consider approving the Award of Bid and Agreement for Discing and Flail Mowing Services to Elite Maintenance & Tree Service, Inc., Clovis, CA for a two (2) year Agreement with three (3) one-year extension options, for an annual estimated cost of $151,335 and a total amount not to exceed $756,675 over five years. (Funding Source: Various Funds) STRATEGIC PLAN ELEMENT:
This item supports the City of Modesto 2020-2025 Strategic Plan focus on Quality of Life, Goal D: provide safe, efficient, and reliable infrastructure through proactive community investment, maintenance and sustainability efforts.
BACKGROUND:
Discing and flail mowing services are needed on open fields to control the overgrowth of weeds and grasses. Park Operations uses these services for various departments on a quarterly basis in several parks and open areas throughout the City.
On March 3, 2015, by Resolution 2015-63, Council approved the award of bid for discing and flail mowing services to Scoto Farming for a five-year agreement not to exceed $210,000.
On April 28, 2020, by Resolution 2020-199, Council approved an amendment for an extension to the Agreement to extend the term from March 2, 2020, to September 2, 2020.
On April 13, 2021, by Resolution 2021-137, Council approved another amendment for an extension to the Agreement from September 2, 2020, to October 31, 2021.
The City Manager authorized the Purchasing Manager to issue a formal Request for Bids (RFB) for Discing and Flail Mowing services. The Purchasing division issued RFB 2021-46, for #25..
- 1124 -
City Council, March 8, 2022
Agreement for Discing and Flail Mowing Services