Agenda packet, first session — Modesto City Council, March 8, 2022 (part 1 of 7)

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MODESTO CITY COUNCIL
www.modestogov.com
AGENDA
City of Modesto

CITY COUNCIL MEETING
Chambers, Basement Level
Tenth Street Place, 1010 10th Street
Modesto, California
Tuesday, March 08, 2022 at 5:30 PM
*Roll Call - Councilmembers Escutia-Braaton, Kenoyer, Madrigal, Ricci, Wright, Zoslocki, Mayor Zwahlen
* Some Councilmembers may be participating in the meeting remotely via teleconferencing or other electronic means consistent with the AB 361.

THIS MEETING WILL BE PHYSICALLY OPEN TO THE PUBLIC AND BY ZOOM

VIDEO CONFERENCING AND TELEPHONE
In order to minimize the spread of the COVID-19 virus, this meeting will be conducted pursuant to AB 361, which amended the Brown Act’s teleconferencing provisions.

You may observe a livestream of the meeting at http://media.modestogov.com. You may also participate in the meeting as indicated below.

PARTICIPATING IN CITY COUNCIL MEETINGS IN CONFORMANCE WITH AB 361
The City of Modesto is providing alternatives to view Council meetings and provide public comments. If you wish to make either a general public comment or to comment on a specific agenda item, you may use one of the following options:

SUBMITTING COMMENTS BY E-MAIL
Written comments may be submitted via email to: [email protected] (include Agenda Item Number in the subject line). All comments will be shared with the Councilmembers - 1 -
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and placed in the record, but will not be read aloud during the meeting. Written comments must be received by 3:00 p.m. on the day of the meeting.

VIRTUAL PARTICIPATION BY ZOOM VIDEO

CONFERENCING AND TELEPHONE
Joining the City Council meeting via Zoom
The City of Modesto is now offering the ability to view and participate in Council meetings via telephonic conferencing via “Zoom” video conferencing computer technology. The meeting may be accessed through the use of Zoom using the following options:
 Enter the following link into an Internet Browser
https://us02web.zoom.us/j/86945970570,
 Enter the following link into an Internet Browser https://zoom.us/ and using the Webinar ID 869 4597 0570
 Passcode 84326
To use Zoom, please visit: https://zoom.us/ and either sign-up for a free Zoom account or continue as a guest. Once you have downloaded the app onto your mobile device, joined from your web browser, or downloaded the Zoom software on your computer you will be ready for the upcoming Council meeting.

Joining the City Council meeting via Telephone
If you don’t have a smart phone or computer to access the meeting via Zoom, you can participate by phone, by calling 1-877-853-5257 (Toll Free) or 1-888-475-4499 (Toll Free) and enter the Webinar ID 869 4597 0570 Passcode 84326
Providing Public Comment on Zoom and by Telephone
The Mayor will request public comment during the Public Comment periods on the meeting agendas and during each Public Hearing and Regular Calendar Item on the Council Agenda.

Once the Mayor has announced the public comment period, please do one of the following.

USING A COMPUTER OR SMART PHONE APP:
 Click on the “Raise Hand” feature in the webinar controls. This will notify City staff that you have raised your hand.
 City staff will unmute your microphone when it is your turn to provide public comment.
 A prompt will appear to confirm you would like to be unmuted and then you will have three minutes to provide public comment.
 Once your public comment has ended, you will be muted again.

USING A REGULAR PHONE (not using a computer or smart phone APP):
 Dial *9 (star 9), this will notify City staff that you have “raised your hand” for public comment.
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 City staff will unmute your microphone when it is your turn to provide public comment.
 You will hear “you are unmuted” and then you will have three minutes to provide public comment.
 Once your public comment has ended, you will be muted again.  If your phone is unmuted, and you are unable to be heard, the host may ask that you Dial *6 to toggle mute on/off in Zoom.

Additional Zoom resources/support
Please visit Zoom’s website support page on helpful tips to prepare for the meeting:
https://support.zoom.us/hc/en-us/categories/201146643
Pledge of Allegiance to the Flag
Invocation: Rev. Edward Eissabake, St. John’s Assyrian Evangelical Presbyterian Church City Clerk’s Announcements
Declaration of Conflicts of Interest
Reports from Closed Session

ACKNOWLEDGEMENTS AND PRESENTATIONS

1. Resolution of the City Council of the City of Modesto condemning the unprovoked assault on Ukraine's sovereign nation borders, independence and territorial integrity, and opposing the unnecessary violence this conflict has cause. (Funding Source: Not Applicable)
CITY COUNCIL; Kathy Espinoza, 209-571-5597, [email protected]

2. Presentation of Proclamation proclaiming March 8, 2022 International Women's Day (Funding Source: Not Applicable)
CITY COUNCIL; Kathy Espinoza, 209-571-5597, [email protected]

3. Presentation of Proclamation proclaiming March 22, 2022 as "World Water Day" (Funding Source: Not Applicable)
CITY COUNCIL; Kathy Espinoza, 209-571-5597, [email protected]

PUBLIC COMMENT PERIOD
Please refer to special public comment instructions above Three minute time limit per speaker
Only interested persons in the audience may present these matters. Under State law, Councilmembers may respond to matters being presented under this item only as follows:
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a. Briefly respond to statements made or questions raised. b. Ask a question for clarification.
c. Provide a reference to staff or other resources for factual information. d. Request staff to report back at a subsequent meeting. e. Finally, a Councilmember or the Council itself may take action to direct staff to place a matter of business on a future agenda.

CONSENT ITEMS – ROLL CALL VOTE REQUIRED
Information concerning the consent items listed below has been forwarded to each Councilmember prior to this meeting for study. Unless some member of the audience or Councilmember has a question concerning an item and asks that it be withdrawn from the consent list, the Council approves the items at one time. The action taken by the Council in approving consent items is set forth in the explanation of this individual item.

Any and all of the following agenda items are subject to action by the Modesto City Council.

This Agenda is on file at the Modesto-Stanislaus Library Reference Room, 1500 I Street, Modesto, in the City Clerk’s Office, Sixth Floor, 10th Street Place, and is available on the City’s Web site at www.modestogov.com.

In accordance with the requirements of Title II of the Americans with Disabilities Act (“ADA”) of 1990, the Fair Employment & Housing Act (“FEHA”), the Rehabilitation Act of 1973 (as amended), Government Code section 11135 and other applicable codes, the City of Modesto (“City”) will not discriminate against individuals on the basis of disability in the City’s services, programs, or activities. For more information, please visit the City of Modesto website at https://www.modestogov.com/865/Americans-with-Disabilities-Act-ADA In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk (209) 577-5396. Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting.

CONSENT ITEMS
An item may be removed from consent and discussed at the request of an audience member or Councilmember.

Consent

4. Consider approving the minutes from the March 1, 2022 Council Meeting. (Funding Source: Not Applicable)
Staff Recommendation:
 Motion approving the minutes from the March 1, 2022 Council Meeting.

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Consent

5. Consider final adoption of Ordinance 3742-C.S. amending Section 10-3.704, “Application and Permit Procedures,” of Article 7 of Chapter 3 of Title 10, “Commercial Cannabis Uses,” of the Modesto Municipal Code to Rename the “Cannabis Permit Committee,” to be known as the “Cannabis Program and Permit Review Committee,” in order to capture the Standing Committee’s new expanded role. (Funding Source: Not Applicable)
Staff Recommendation:
 Motion approving final adoption of Ordinance 3742-C.S. amending Section 10-

3.704, “Application and Permit Procedures,” of Article 7 of Chapter 3 of Title 10, “Commercial Cannabis Uses,” of the Modesto Municipal Code to Rename the “Cannabis Permit Committee,” to be known as the “Cannabis Program and Permit Review Committee,” in order to capture the Standing Committee’s new expanded role.

CITY CLERK; Dana Sanchez, 209-577-5396, [email protected] Consent

6. Consider final adoption of Ordinance 3743-C.S. amending Section 2-1.18, “Standing Committees,” of the Modesto Municipal Code to include the “Cannabis Program and Permit Review Committee” as a Standing Committee of the City. (Funding Source:

Not Applicable)
Staff Recommendation:
 Motion approving final adoption of Ordinance 3743-C.S. amending Section 2-

1.18, “Standing Committees,” of the Modesto Municipal Code to include the “Cannabis Program and Permit Review Committee” as a Standing Committee of the City.

CITY CLERK; Dana Sanchez, 209-577-5396, [email protected] Consent

7. Consider final adoption of Ordinance 3744-C.S. adding Article 7, “Local Hiring Preference in Public Works Contracts,” and Article 8, “Utilizing skilled and Trained Workforce in Public Works Contracts,” to Title 8, Chapter 3 of the Modesto Municipal Code. (Funding Source: Not Applicable)
Staff Recommendation:
 Motion approving final adoption of Oridinance 3744-C.S. adding Article 7, “Local Hiring Preference in Public Works Contracts,” and Article 8, “Utilizing skilled and Trained Workforce in Public Works Contracts,” to Title 8, Chapter 3 of the Modesto Municipal Code.

CITY CLERK; Dana Sanchez, 209-577-5396, [email protected] Consent

8. Consider approving a resolution continuing to authorize remote teleconference meetings pursuant to Assembly Bill 361. (Funding Source: Not Applicable) Staff Recommendation:
 Resolution continuing to authorize remote teleconference meetings of the City of Modesto pursuant to Assembly Bill 361.
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CITY ATTORNEY; Jose Sanchez, 209-577-5284, [email protected] Consent

9. Consider approving the recommended budget adjustments to Fiscal Year 2021-22 Annual Operating and Capital Improvement Program Budgets. (Funding Source:

Various Funds)
Staff Recommendation:
 Resolution amending Year 2021-22 Annual Operating and Capital Improvement Project Fund Budgets and authorizing the City Manager to make the necessary steps to implement the provisions of this resolution.

BUDGET; Steve Christensen, 209-577-5390, [email protected] Consent

10. Consider approving a CARES Act Emergency Solutions Grant to Stanislaus County Affordable Housing Corporation for the renovation of the shelter located at 512 Vine Street, Modesto, CA 95351 in an amount not to exceed $186,000 and $20,000 in Activity Delivery to prevent, mitigate, and respond to the spread of COVID-19. (Funding Source: Emergency Solutions Grant CV2)
Staff Recommendation:
 Resolution approving an Emergency Solutions Grant CARES Act (ESG-CV2) to Stanislaus County Affordable Housing Corporation for the renovation of the shelter located at 512 Vine Street, Modesto, CA 95351 in an amount not to exceed $186,000 and $20,000 in Activity Delivery to prevent, mitigate, and respond to the spread of COVID-19, and authorizing the City Manager or his designee to execute any documents and/or Agreements.

CED; Jessica Hill, 209-577-5321, [email protected]
Consent

11. Consider approving the “upstreaming“ of the remaining ERAP1 funds to the US Treasury to be reallocated to the State of California with a designation for Modesto residents in an additional amount of $342,290.29 for a total amount of $2,670,235.34 (Funding Source: US Treasury ERAP1 Funds)
Staff Recommendation:
 Resolution approving the “upstreaming“ of the remaining ERAP1 funds back to the US Treasury to be reallocated to the State of California with a designation for Modesto residents in the amount of $2,670,235.34 and authorizing the City Manager or his designee, to execute any documents related to the purpose of this resolution.
 Resolution amending the Fiscal Year 2021-2022 multi-year fund budget, reducing the allocation of Consolidated Appropriations Act of 2021 funds from the U.S. Department of Treasury with appropriate revenue and expenditure allocations and authorizing the City Manager, or his designee, to return the Federal ERA #1 funding received on January 25, 2021, in an amount of $2,670,235.34 to the U.S. Treasury and authorizing the City Manager or his designee, to take the necessary steps to implement the provisions of this resolution.
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CED; Jessica Hill, 209-577-5321, [email protected]
Consent

12. Consider approving the Subdivision Improvement Agreement (SIA) and Final Map for the Woodglen Village No. 2 Subdivision consisting of approximately 9.2 acres located between Bangs Avenue, Tully Road, Pelandale Avenue and Carver Road. (Funding Source: Developer Fees)
Staff Recommendation:
 Resolution approving the Subdivision Improvement Agreement for Woodglen Village 2 Subdivision, and authorizing the City Manager or his designee, to execute the Subdivision Improvement Agreement with the owner, Modesto Roselle, LLC.
 Resolution approving the Final Map for Woodglen Village 2 Subdivision, and authorizing the City Clerk to certify the Final Map and record it with the Stanislaus County Recorder’s Office.

CED; Nathan Bray, 209-571-5542, [email protected]
Consent

13. Consider approving the Subdivision Improvement Agreement (SIA) and Final Map for the Woodglen Village No. 5 Subdivision consisting of roughly 8.3 acres located between Bangs Avenue, Tully Road, Pelandale Avenue and Carver Road. (Funding Source: Developer Fees)
Staff Recommendation:
 Resolution approving the Subdivision Improvement Agreement for Woodglen Village 5 Subdivision, authorizing the City Manager, or designee, to execute the Subdivision Improvement Agreement with the owner, Modesto Roselle, LLC.
 Resolution approving the Final Map for Woodglen Village 5 Subdivision, and authorizing the City Clerk to certify the final map and record it with the Stanislaus County Recorder’s Office.

CED; Nathan Bray, 209-571-5542, [email protected]
Consent

14. Consider adopting the 2022 State and Federal Legislative Priorities, and authorizing the City Manager or his designee, to carry out the necessary steps to help the City achieve the identified priorities. (Funding Source: Not Applicable) Staff Recommendation:
 Resolution adopting the 2022 State and Federal Legislative Priorities and authorizing the City Manager or his designee, to carry out the necessary steps to help the City achieve the priorities identified in the platform.

CITY MANAGER; Edgar Garcia, 209-571-5101, [email protected] Consent

15. Consider approving a First Amendment with Badger Meter, Inc. for the purchase of Badger water meters, automated meter readers, and related parts from an annual estimated amount of $600,880 to a new estimated annual amount of $1,500,880 and a - 7 -
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total revised amount not to exceed from $3,059,022 to $7,504,400 over five years, and authorizing the Director of Finance or her designee, the ability to add parts based on the Department’s needs, ensuring the total cost does not exceed the authorized amount. (Funding Source: Water Fund)
Staff Recommendation:
 Resolution approving a First Amendment with Badger Meter, Inc. for the purchase of Badger water meters, automated meter readers, and related parts from an annual estimated amount of $600,880 to a new estimated annual amount of $1,500,880 and a total revised amount not to exceed from $3,059,022 to $7,504,400 over five years, and authorizing the Director of Finance or her designee, to execute the amendment; and authorizing the Director of Finance or her designee, the ability to add parts based on the Department’s needs, ensuring the total cost does not exceed the authorized amount.

FINANCE DEPARTMENT; Cynthia Kline, 209-577-5412, [email protected] Consent

16. Consider approving the competitive bidding process from Sourcewell (formerly National Joint Powers Alliance) with Kenworth Truck Company under authorized dealer with NorCal Kenworth-Bay Area, San Leandro, CA, for a Kenworth Cab and Chassis Truck for a total amount not to exceed $148,510; and approving the competitive bidding process from BuyBoard Cooperative Purchasing with Cooper Equipment, Company, San Antonio, TX, for a Slurry Tank for a total amount not to exceed $279,034. (Funding Source: Surface Transportation Fund) Staff Recommendation:
 Resolution approving the competitive bidding process from Sourcewell (formerly National Joint Powers Alliance) with Kenworth Truck Company under authorized dealer with NorCal Kenworth-Bay Area, San Leandro, CA, for a Kenworth Cab and Chassis Truck for a total amount not to exceed $148,510; and authorizing the Purchasing Manager or her designee, to issue the Purchase Order.
 Resolution approving the competitive bidding process from BuyBoard Cooperative Purchasing with Cooper Equipment, Company, San Antonio, TX, for a Slurry Tank for a total amount not to exceed $279,034; and authorizing the Purchasing Manager, or her designee, to issue the Purchase Order.

FINANCE DEPARTMENT; Cynthia Kline, 209-577-5412, [email protected] Consent

17. Consider reissuing all bids for Request for Bid (RFB) No. 1819-49RB for Seven Stake Side Dump Trucks and RFB 19-20-83 for One-Ton Utility Truck and authorizing staff to reissue the RFB’s at a future date or identify a Cooperative Agreement when approved by the City Manager. (Funding Source: Fleet Replacement Fund) Staff Recommendation:
 Resolution reissuing all bids for Request for Bid (RFB) No. 1819-49RB for Seven Stake Side Dump Trucks and RFB 19-20-83 for One-Ton Utility Truck and authorizing staff to reissue the RFB’s at a future date or identify a - 8 -
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Cooperative Agreement when approved by the City Manager.

FINANCE DEPARTMENT; Cynthia Kline, 209-577-5412, [email protected] Consent

18. Consider approving the audited financial statements and various audit reports for Fiscal Year 2020-2021 audited by external auditors Hudson Henderson & Company, Inc. for the City’s Annual Comprehensive Financial Report, twelve Community Facilities Districts and various Joint Powers Agencies. (Funding Source: Not Applicable) Staff Recommendation:
 Resolution approving the audited financial statements and various audit reports for Fiscal Year 2020-2021 audited by external auditors Hudson Henderson & Company, Inc. for the City’s Annual Comprehensive Financial Report, twelve Community Facilities Districts and various Joint Powers Agencies.

FINANCE DEPARTMENT; Maria Garnica, 209-577-5249,
[email protected]
Consent

19. 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)
Staff Recommendation:
 Resolution approving the Fiscal Year 2020-2021 Auditor’s Report on Compliance of the Measure L: Local Roads First Transportation Funding Measure.

FINANCE DEPARTMENT; Maria Garnica, 209-577-5249,
[email protected]
Consent

20. 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)
Staff Recommendation:
 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.

FINANCE DEPARTMENT; Maria Garnica, 209-577-5249,
[email protected]
Consent

21. 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)
Staff Recommendation:
 Resolution approving the Fiscal Year 2020-2021 Single Audit Report for the City of Modesto from external auditors Hudson Henderson & Company, Inc.

FINANCE DEPARTMENT; Maria Garnica, 209-577-5249,
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[email protected]
Consent

22. 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)
Staff Recommendation:
 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.

FINANCE DEPARTMENT; Maria Garnica, 209-577-5249,
[email protected]
Consent

23. Consider approving a Resolution authorizing participation in the PARS PostEmployment 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) Staff Recommendation:
 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.

HUMAN RESOURCES; Christina Alger, 209-571-5126, [email protected] Consent

24. Consider approving 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 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)
Staff Recommendation:
 Resolution approving 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 one-year extension options, for an estimated - 10 -
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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.

PRN; Kelly Gallagher, 209-342-2270, [email protected] Consent

25. 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 year Agreement with three 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)
Staff Recommendation:
 Resolution approving the Award of Bid and Agreement for Discing and Flail Mowing Services to Elite Maintenance & Tree Service, Inc., Clovis, CA for a two year Agreement with three one-year extension options, for an annual estimated cost of $151,335 and a total amount not to exceed $756,675 over five years, and authorizing the City Manager or his designee, to execute the Agreement.

PRN; Kelly Gallagher, 209-342-2270, [email protected] Consent

26. Consider approving the First Amendment to the Memorandum of Understanding (MOU) between the La Loma Neighborhood Association and the City of Modesto for the Native Plant Garden on Encina Avenue, and extending the term of the MOU from March 28, 2022 to March 28, 2027. (Funding Source: General Fund) Staff Recommendation:
 Resolution approving the First Amendment to the Memorandum of Understanding (MOU) between the La Loma Neighborhood Association and the City of Modesto for the Native Plant Garden on Encina Avenue extending the term of the MOU from March 28, 2022 to March 28, 2027, and authorizing the City Manager or his designee, to execute the MOU.

PRN; Laurie Smith, 209-577-5347, [email protected]
Consent

27. Consider rejecting all bids for the Upgrade Traffic Signals 2017 Project and authorize staff to re-advertise the project for bids at a future date. (Funding Source: Congestion Mitigation and Air Quality)
Staff Recommendation:
 Resolution rejecting all bids for the Upgrade Traffic Signals 2017 Project and authorizing staff to re-advertise the project for bids at a future date.

PUBLIC WORKS; Scott Collins, 209-577-5431, [email protected] Consent

28. Consider approving a First Amendment to the Agreement with West Yost Associates, Inc., Sacramento, CA, for Design Services for Del Rio Replacement Well 271, in the amount of $42,700 for the identified scope of services, for a revised total cost not to - 11 -
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exceed $898,390. (Funding Source: Water Fund)
Staff Recommendation:
 Resolution approving a First Amendment to the Agreement with West Yost, Sacramento, CA, for Design Services for Del Rio Replacement Well 271, in the amount of $42,700, for the identified scope of services, for a revised total cost not to exceed $898,390, and authorizing the City Manager, or his designee, to execute the Amendment.

UTILITIES; Robert Davalos, 209-571-5869, [email protected] Consent

29. Consider approving the Award of Bid and Agreement with Western Oilfields Supply Company, dba Rain for Rent, Bakersfield, CA for the annual rental of three DV-400c pumps, and related equipment for a one-year Agreement with four one-year extension options, for an estimated annual amount of $60,545, and a total amount not to exceed $334,549 over five years. (Funding Source: Wastewater Fund) Staff Recommendation:
 Resolution approving the Award of Bid and Agreement with Western Oilfields Supply Company, dba Rain for Rent, Bakersfield, CA for the annual rental of three DV-400c pumps, and related equipment for a one-year Agreement with four one-year extension options, for an estimated annual amount of $60,545, and a total amount not to exceed $334,549 over five years, and authorizing the City Manager or his designee, to execute the Agreement.

UTILITIES; Robert Englent, 209-577-6222, [email protected]

COUNCIL COMMENTS & REPORTS

CITY MANAGER COMMENTS & REPORTS

HEARINGS
Published in the Modesto Bee on February 21, 2022

30. Hearing to consider approving a Capital Facilities Fees Exemption Agreement, in the amount of $55,809.60, with Stanislaus Equity Partners Community Development Corporation for a seven unit project located at 112 James Street. (Funding Source:

Capital Facilities Fees Fund)
Staff Recommendation:
 Resolution approving a Capital Facilities Fees Exemption Agreement, in the amount of $55,809.60, with Stanislaus Equity Partners CDC for the 7-unit project located at 112 James Street, and authorizing the City Manager or his designee, to execute the Agreement.

CED; Jessica Hill, 209-577-5321, [email protected]

31. Public Hearing to adopt the Final Council District Map Recommended by the Citizens’ Districting Commission. (Funding Source: Not Applicable) - 12 -
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Staff Recommendation:
 Resolution approving the Final Council District Map recommended by the Citizens’ Districting Commission.

CITY ATTORNEY; Jose Sanchez, 209-577-5284, [email protected]

NEW BUSINESS

32. Consider approving accepting funds from the California Water and Wastewater Arrearage Payment Program (CWWAPP) for drinking water arrearage in an amount not to exceed $2,716,416 and authorizing the submission of an application to the CWWAPP for the wastewater arrearage amount estimated at $4,215,784. (Funding Source: Water and Sewer Funds)
Staff Recommendation:
 Resolution accepting the funds from the California Water and Wastewater Arrearage Payment Program (CWWAPP) for drinking water arrearage in an amount not to exceed $2,716,416; and authorizing the submission of an application to the CWWAPP for the wastewater arrearage amount estimated at $4,215,784.

FINANCE DEPARTMENT; Jennifer Martin, 209-571-5892, [email protected]

MATTERS TOO LATE FOR THE AGENDA
These may be presented by members of the City Council and staff upon determination by a majority vote that an emergency exists, as defined by State law, or by a 2/3 vote that (1) there is a need to take immediate action, and (2) that the need for action came to the City’s attention after the agenda was posted.

ADJOURNMENT

CLOSED SESSION
Please take notice that a special Closed Session meeting of the Council of the City of Modesto has been called pursuant to Section 2-1.02 of the Modesto Municipal Code to be convened on
TUESDAY, MARCH 8, 2022 at 4:00 PM
and after the regularly scheduled meeting in the Tenth Street Place, Chambers Conference Room, Basement Level, 1010 Tenth Street, Modesto, California.

Any and all of the following agenda items are subject to action being taken by the Modesto City Council.

The business to be considered at said City Council meeting shall consist of a Closed - 13 -
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Session concerning the following:

CLOSED SESSION

PUBLIC EMPLOYEE APPOINTMENT
(Pursuant to Section 54957 Government Code)
Title: City Clerk
CONFERENCE WITH LABOR NEGOTIATOR:
(Pursuant to Section 54957.6 of the Government Code) – Unrepresented Agency Negotiators: Christina Alger, Director of Human Resources Jose M. Sanchez, City Attorney
Employee: City Clerk
CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION
One Case (Pursuant to Section 54956.9(d)(1) of the Government Code) Name of Case: Stephanie Lopez v. City of Modesto, et al.

Superior Court of California, County of Stanislaus
Stanislaus County Case No.: CV-21-00925

CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION
One Case (Pursuant to Section 54956.9(a) of the Government Code) Name of case(s): Andre VanRyn v. City of Modesto
California Workers Compensation Appeals Board
Nos. ADJ10990424
CONFERENCE WITH LABOR NEGOTIATOR:
(Pursuant to Section 54957.6 of the Government Code) – MCEA Negotiator: Christina Alger
Employee Organization: Modesto City Employees Association CONFERENCE WITH LABOR NEGOTIATOR:
(Pursuant to Section 54957.6 of the Government Code) – MCMA Negotiator: Christina Alger
Employee Organization: Modesto Confidential & Management Association CONFERENCE WITH LABOR NEGOTIATOR:
(Pursuant to Section 54957.6 of the Government Code) – MPOA Negotiator: Christina Alger
Employee Organization: Modesto Police Officers’ Association CONFERENCE WITH LABOR NEGOTIATOR:
(Pursuant to Section 54957.6 of the Government Code) – MPNSA Negotiator: Christina Alger
Employee Organization: Modesto Police Non-Sworn Association - 14 -
3/8/2022
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CONFERENCE WITH LABOR NEGOTIATOR:
(Pursuant to Section 54957.6 of the Government Code) –MPMA Negotiator: Christina Alger
Employee Organization: Modesto Police Management Association CONFERENCE WITH LABOR NEGOTIATOR:
(Pursuant to Section 54957.6 of the Government Code) – MCFFA Negotiator: Christina Alger
Employee Organization: Modesto City Firefighters Association CONFERENCE WITH LABOR NEGOTIATOR:
(Pursuant to Section 54957.6 of the Government Code) – Unrepresented Negotiator: Christina Alger
Employee Organization: Unrepresented Management and Confidential Employees Posted pursuant to Government Code Section 54954.2 on the bulletin board at Tenth Street Place on
at by
date time signature
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MODESTO CITY COUNCIL
RESOLUTION NO. 2022-XX

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MODESTO
CONDEMNING THE UNPROVOKED ASSAULT ON UKRAINE’S SOVEREIGN

NATION BORDERS, INDEPENDENCE AND TERRITORIAL INTEGRITY,

AND OPPOSING THE UNNECESSARY VIOLENCE THIS CONFLICT HAS CAUSED
WHEREAS, the City of Modesto recognizes the horrors and the humanitarian crisis that the unprovoked assault on Ukraine’s sovereign national borders, independence and territorial integrity has brought upon the people of Ukraine; and WHEREAS, the peace in Ukraine has been shattered and freedom of the Ukrainian people threatened by a dictator that does not share our values of peace, freedom, and self-determination; and
WHEREAS, the Ukrainian people, their leadership, and their President have shown the world what bravery and patriotism look like in the face of an illegal assault on Ukrainian sovereignty; and
WHEREAS, a free and independent Ukraine is vital in promoting and perpetuating peace, freedom, and the democratic rule of law; and WHEREAS, a democracy is the greatest form of government, and self-rule and self-determination are the natural state of humanity; and WHEREAS, American-Ukrainian relations have served as an example of peace, freedom, democracy, and human rights; and
WHEREAS, the City of Modesto has been Sister Cities with the City of Khmelnytskyi, Ukraine since 1987; and
WHEREAS, the Cities of Modesto and Khmelnytskyi have developed deep and meaningful bonds of friendship through cultural exchanges that enrich the City and citizens of Modesto; and
WHEREAS, Ukraine and the Ukrainian people represent a distinct culture with a long and proud history.

NOW THEREFORE BE IT RESOLVED, that the City Council of the City of Modesto, condemn the violation of Ukraine’s sovereign nation borders, and oppose the unnecessary and tragic loss of life this unprovoked and illegal invasion has caused; and BE IT FURTHER RESOLVED, that we, the City Council of the City of Modesto, recognize the bravery and patriotism of the people of Ukraine as they fight to defend their right to peace, freedom, and the democratic rule of law, and affirm our support to the sovereignty, independence, and territorial integrity of Ukraine. #1..
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The foregoing Resolution was introduced in a regular meeting of the Council of the City of Modesto held on the 8th day of March 2022, by Council Member ________, who moved its adoption, which motion being duly seconded by Council Member ______, was upon roll call carried and the resolution adopted by the following vote:

AYES: Council Members:

NOES: Council Members:

ABSENT: Council Members:
_____________________________
SUE ZWAHLEN, Mayor
ATTEST:
________________________________________
DANA SANCHEZ, Interim City Clerk
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MODESTO CITY COUNCIL
www.modestogov.com

MINUTES
City of Modesto

CITY COUNCIL MEETING
Chambers, Basement Level
Tenth Street Place, 1010 10th Street
Modesto, California
Tuesday, March 01, 2022 at 5:30 PM
Roll Call – Present: Councilmembers Kenoyer, Madrigal (arrived at 5:48 p.m.), Ricci, Wright, Zoslocki, Mayor Zwahlen

Absent: Councilmember Escutia-Braaton
Pledge of Allegiance to the Flag
Moment of Reflection: Moment of reflection for the people our Sister City and the people of Ukraine.

Invocation: Laura Williams, The Church of Jesus Christ of Latter-Day Saints.

City Clerk’s Announcements: Item 10 was removed from the agenda. Item 11 was noticed to begin at 5:45 p.m. so that will be taken out of order. Several public comments were received at ccmeetings and forwarded to Council.

Declaration of Conflicts of Interest: None

ACKNOWLEDGEMENTS AND PRESENTATIONS

1. Presentation of Proclamation proclaiming March 2022 as Developmental Disabilities Awareness Month (Funding Source: Not Applicable)
CITY COUNCIL; Kathy Espinoza, 209-571-5597, [email protected] ACTION: Mayor Zwahlen presented a Proclamation proclaiming March 2022 as Developmental Disabilities Awareness Month.
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2. Presentation of Proclamation proclaiming March 2022 as Women's History Month (Funding Source: Not Applicable)
CITY COUNCIL; Kathy Espinoza, 209-571-5597, [email protected] ACTION: Mayor Zwahlen presented a Proclamation proclaiming March 2022 as Women's History Month.

3. Presentation of Proclamation in honor of Golden Valley Health Center's 50th Anniversary (Funding Source: Not Applicable)
CITY COUNCIL; Kathy Espinoza, 209-571-5597, [email protected] ACTION: Mayor Zwahlen presented a Proclamation in honor of Golden Valley Health Center's 50th Anniversary.

PUBLIC COMMENT PERIOD
 Stephen Allen expressed concerns regarding the cost of housing and the definition of affordable housing. He also spoke regarding acts of violence by hate groups against people with differing opinions.
 Ramon Rodriguez spoke regarding propaganda of hate groups. He also spoke regarding Forward Together and expressed his shock regarding juvenile arrest statistics. He encouraged school programs to invest in the youth.  Darlene Ruiz spoke in support of Trevor Seever Day to honor Trevor. She also agreed that more needs to be done in regards to affordable housing.  Richard Navarro thanked the City Council for the moment of silence in support of the people of Ukraine and our Sister City in Ukraine. He asked the Council to consider a proclamation of support for Ukraine. He also mentioned Open World.  Sergei thanked the Council for the Moment of Reflection for Ukraine, and spoke regarding the history the City has had with our Sister City in Ukraine. He also spoke regarding the conditions the people of Ukraine are presently dealing with, and supported the idea of a proclamation of support.

CONSENT ITEMS – ROLL CALL VOTE REQUIRED
ACTION CONSENT ITEMS 4-9: (Madrigal/Zoslocki; 6/0; Escutia-Braaton absent) Item 10 was removed from the Agenda.

CONSENT ITEMS
Consent

4. Consider approving the minutes from the February 8, 2022 Council Meeting. (Funding Source: Not Applicable)
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 Motion approving the minutes from the February 8, 2022 Council Meeting.

CITY CLERK; Dana Sanchez, 209-577-5396, [email protected] ACTION: (Madrigal/Zoslocki; 6/0; Escutia-Braaton absent) Motion approving the minutes from the February 8, 2022 Council Meeting.

Consent

5. Consider approving a Will Serve Letter and Outside Service Agreement for sewer service for the property located at 792 Codoni Avenue (APN: 009-019-047). (Funding Source: Sewer Fund, General Fund)
 Resolution approving a Will Serve Letter and Outside Service Agreement between the City of Modesto and Modesto Irrigation District, a California irrigation district, to connect to the City of Modesto’s existing sewer system for the property located at 792 Codoni Avenue in Modesto (APN: 009-019-047), and authorizing the City Manager, or his designee, to sign the Will-Serve Letter and execute the Outside Service Agreement.

CED; Nathan Bray, 209-571-5542, [email protected]
ACTION: (Madrigal/Zoslocki; 6/0; Escutia-Braaton absent) Resolution 2022-106 approving a Will Serve Letter and Outside Service Agreement between the City of Modesto and Modesto Irrigation District, a California irrigation district, to connect to the City of Modesto’s existing sewer system for the property located at 792 Codoni Avenue in Modesto (APN: 009-019-047), and authorizing the City Manager, or his designee, to sign the WillServe Letter and execute the Outside Service Agreement.

Consent

6. Consider approving an Agreement for an analysis of emergency dispatch service options with Mission Critical Partners, for an amount of $156,741, with an 8% contingency of $12,539, for a total not to exceed $169,280. (Funding Source: General Fund)
 Resolution approving an Agreement for an analysis of emergency dispatch service options with Mission Critical Partners, for an amount of $156,741, with an 8% contingency of $12,539, for a total not to exceed $169,280 and authorizing the City Manager, or his designee to execute the Agreement.

CITY MANAGER; Scotty Douglass, 209-577-9149, [email protected] ACTION: (Madrigal/Zoslocki; 6/0; Escutia-Braaton absent) Resolution 2022-107 approving an Agreement for an analysis of emergency dispatch service options with Mission Critical Partners, for an amount of $156,741, with an 8% contingency of $12,539, for a total not to exceed $169,280 and authorizing the City Manager, or his designee to execute the Agreement.

Consent

7. Consider accepting an informational report for the January 2022 Accounts Payable Payment Register and Void report. (Funding Source: Not Applicable)  Motion accepting an informational report for the January 2022 Accounts #4..
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Payable Payment Register and Void report.

FINANCE DEPARTMENT; Maria Garnica, 209-577-5249,
[email protected]
ACTION: (Madrigal/Zoslocki; 6/0; Escutia-Braaton absent) Motion accepting an informational report for the January 2022 Accounts Payable Payment Register and Void report.

Consent

8. Consider accepting the Monthly Investment Report for December 2021. (Funding Source: Various Funds)
 Motion accepting the Monthly Investment Report for December 2021.

FINANCE DEPARTMENT; Calogero Maniscalco, 209-577-5219,
[email protected]
ACTION: (Madrigal/Zoslocki; 6/0; Escutia-Braaton absent) Motion accepting the Monthly Investment Report for December 2021.

Consent

9. Consider approving requirements for annual training of certain City of Modesto employees and officials regarding municipal disclosure responsibilities. (Funding Source: Not Applicable)
 Resolution approving requirements for annual training of certain City of Modesto employees and officials regarding municipal disclosure responsibilities.

FINANCE DEPARTMENT; Calogero Maniscalco, 209-577-5219,
[email protected]
ACTION: (Madrigal/Zoslocki; 6/0; Escutia-Braaton absent) Resolution 2022-108 approving requirements for annual training of certain City of Modesto employees and officials regarding municipal disclosure responsibilities.

Item 10 was removed from the Agenda

10. Consider approving an increase of purchase with Allsteel Inc., Muscatine, IA, for the procurement of modular systems furniture for the Sutter Plant Offices by $34,691 from $45,157, plus $3,469 in contingency (if needed) for a revised total amount not to exceed $83,317. (Funding Source: Wastewater Fund)
 Resolution approving an increase of purchase with Allsteel Inc., Muscatine, IA, for the procurement of modular systems furniture for the Sutter Plant Offices by $34,691 from $45,157, plus $3,469 in contingency (if needed) for a revised total amount not to exceed $83,317, and authorizing the Purchasing Manager, or her designee to execute the Purchase Order.

UTILITIES; William Wong, 209-571-5801, [email protected] #4..
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COUNCIL COMMENTS & REPORTS
Councilmember Wright expressed his thoughts and concern for the people of Ukraine and our Sister City.

Councilmember Zoslocki spoke regarding Ukrainian history, and made a motion for at least a letter of support to Ukraine.

ACTION: (Zoslocki/Madrigal; 6/0; Escutia-Braaton absent) Motion to issue at least a letter in support of the people of Ukraine at a subsequent meeting.

Councilmember Kenoyer spoke in support of the people of Ukraine and a proclamation.

She also expressed support and concern for Councilmember Escutia-Braaton in her time of loss with the soon passing of mother.

Councilmember Ricci spoke regarding the Ukraine, and expressed his support for Ukraine and our Sister City.

Councilmember Madrigal expressed solidarity with the people of Ukraine, and asked for a Resolution of support. He also asked for City Hall to be lighted in the colors of Ukraine.

He also spoke regarding community concerns regarding traffic in South Modesto due to road projects. He also asked for a report back of video surveillance camera's being brought to Council level. He also asked for a status update of Canna Pass update for Cannabis tourism.

CITY MANAGER COMMENTS & REPORTS
None

HEARINGS
Published in the Modesto Bee on February 15th & 22nd, 2022

11. Presentation of Recommended Council District Map from the Citizens’ Districting Commission and Public Hearing to receive public input. (Funding Source: Not Applicable)
 Hold a public hearing on the Recommended Council District Map submitted by the Citizens’ Districting Commission prior to considering adoption of Final Council District Map at the March 8, 2022 City Council meeting.

CITY ATTORNEY; Jose Sanchez, 209-577-5284, [email protected] ACTION: No Action for Public Hearing on the recommended Council District Map submitted by the Citizens’ Districting Commission prior to considering adoption of Final Council District Map at the March 8, 2022 City Council meeting.

Published in the Modesto Bee on February 18, 2022
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12. Public hearing to consider expanding the role of the Cannabis Permit Review Committee and renaming it to be known as the “Cannabis Program and Permit Review Committee,” an Ordinance amending Section 10-3.704, “Application and Permit Procedures,” of the Modesto Municipal Code, an Ordinance amending Section 2-1.18, “Standing Committees,” of the Modesto Municipal Code to include the “Cannabis Program and Permit Review Committee” as a Standing Committee of the City, and associated Resolution making these changes and rescinding Resolution No. 2021-132. (Funding Source: Not Applicable)
 Motion introducing and waiving the first reading of an Ordinance amending Section 10-3.704, “Application and Permit Procedures,” of Article 7 of Chapter 3 of Title 10, “Commercial Cannabis Uses,” of the Modesto Municipal Code to Rename the “Cannabis Permit Committee,” to be known as the “Cannabis Program and Permit Review Committee,” in order to capture the Standing Committee’s new expanded role.
 Motion introducing and waiving the first reading of an Ordinance amending Section 2-1.18, “Standing Committees,” of the Modesto Municipal Code to include the “Cannabis Program and Permit Review Committee” as a Standing Committee of the City.
 Resolution approving expanding the role of the Cannabis Permit Review Committee and renaming it to be known as the “Cannabis Program and Permit Review Committee” and rescinding Resolution No. 2021-132.

CITY ATTORNEY; Jose Sanchez, 209-577-5284, [email protected] ACTION: (Ricci/Kenoyer; 6/0; Escutia-Braaton absent) Motion introducing and waiving the first reading of an Ordinance 3742-C.S. amending Section 10-3.704, “Application and Permit Procedures,” of Article 7 of Chapter 3 of Title 10, “Commercial Cannabis Uses,” of the Modesto Municipal Code to Rename the “Cannabis Permit Committee,” to be known as the “Cannabis Program and Permit Review Committee,” in order to capture the Standing Committee’s new expanded role.

ACTION: (Madrigal/Ricci; 6/0; Escutia-Braaton absent) Motion introducing and waiving the first reading of an Ordinance 3743-C.S. amending Section 2-1.18, “Standing Committees,” of the Modesto Municipal Code to include the “Cannabis Program and Permit Review Committee” as a Standing Committee of the City.

ACTION: (Kenoyer/Zwahlen; 6/0; Escutia-Braaton absent) Resolution 2022-109 approving expanding the role of the Cannabis Permit Review Committee and renaming it to be known as the “Cannabis Program and Permit Review Committee” and rescinding Resolution No. 2021-132.

NEW BUSINESS

13. Consider an Ordinance adding Article 7, “Local Hiring Preferences in Public Works Contracts,” and Article 8, “Utilizing Skilled and Trained Workforce in Public Works Contracts,” to Title 8, Chapter 3 of the Modesto Municipal Code. (Funding Source:

Not Applicable)
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 Motion introducing and waiving the first reading of an Ordinance adding Article 7, “Local Hiring Preference in Public Works Contracts,” and Article 8, “Utilizing skilled and Trained Workforce in Public Works Contracts,” to Title 8, Chapter 3 of the Modesto Municipal Code.

CITY ATTORNEY; Jose Sanchez, 209-577-5284, [email protected] ACTION: (Madrigal/Ricci; 4/2; Kenoyer, Wright Noes; Escutia-Braaton absent) Motion introducing and waiving the first reading of an Ordinance 3744-C.S. adding Article 7, “Local Hiring Preference in Public Works Contracts,” and Article 8, “Utilizing skilled and Trained Workforce in Public Works Contracts,” to Title 8, Chapter 3 of the Modesto Municipal Code.

Recessed at 8:56 p.m.

Reconvened at 9:01 p.m

14. Consider amending the City Manager Employment Agreement with Joseph P. (“Joe”) Lopez adjusting the compensation as a result of the delivery of a very positive performance evaluation rating of “highly competent.” (Funding Source: General Fund)  Resolution approving a first amendment to the employment Agreement with Joe Lopez, City Manager, dated July 10, 2018 to increase base salary to $256,221.

HUMAN RESOURCES; Christina Alger, 209-571-5126, [email protected] ACTION: (Zoslocki/Wright; 6/0; Escutia-Braaton absent) Resolution 2022-110 approving a first amendment to the employment Agreement with Joe Lopez, City Manager, dated July 10, 2018 to increase base salary to $256,221.

MATTERS TOO LATE FOR THE AGENDA
None

ADJOURNMENT
This meeting adjourned at 9:17 p.m.

Attest:____________________________
Dana Sanchez, Interim City Clerk
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- 1 - ORDINANCE NO. 3742-C.S.

EFFECTIVE DATE: APRIL 7, 2022
ORDINANCE NO. 3742-C.S.

ORDINANCE AMENDING SECTION 10-3.704, “APPLICATION AND PERMIT PROCEDURES,” OF ARTICLE 7 OF CHAPTER 3 OF TITLE 10,
“COMMERCIAL CANNABIS USES,” OF THE MODESTO MUNICIPAL CODE TO RENAME THE “CANNABIS PERMIT COMMITTEE” TO BE KNOWN AS THE “CANNABIS PROGRAM AND PERMIT REVIEW COMMITTEE” IN
ORDER TO CAPTURE THE STANDING COMMITTEE’S NEW EXPANDED
ROLE
WHEREAS, on November 8, 2016, California voters approved Proposition 64, also known as the Adult Use of Marijuana Act (“AUMA”), legalizing recreational use of cannabis for adults 21 years of age and older; and
WHEREAS, the California Legislature passed Senate Bill 94 in June 2017, which was signed by the Governor and went into effect immediately, and which repealed the Medical Cannabis Regulation and Safety Act (“MCRSA”), and merged certain portions of that law with AUMA to create a more comprehensive regulatory structure for both medical and recreational cannabis; and
WHEREAS, the comprehensive regulatory system created by Senate Bill 94, intended to regulate all commercial cannabis uses, is called the Medicinal and Adult Use Cannabis Regulation and Safety Act (“MAUCRSA”); and
WHEREAS, the California Bureau of Cannabis Control has promulgated and adopted regulations (“BCC Regulations”) regarding commercial cannabis uses within the state; and
WHEREAS, the City of Modesto (“City”) adopted ordinances regulating all commercial cannabis activities within the City; and
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- 2 - ORDINANCE NO. 3742-C.S.

EFFECTIVE DATE: APRIL 7, 2022
WHEREAS, pursuant to Ordinance No. 3684-C.S, Section 10-3.704(f) of the Modesto Municipal Code/Zoning Code, the City Council is authorized to establish a Cannabis Permit Review Committee; and
WHEREAS, pursuant to Section 10-3.704(f), the Council adopted Resolution No. 2021-132, establishing a three (3) member standing committee, the Cannabis Permit Review Committee, to review and approve non-storefront and non-delivery commercial cannabis permits; and
WHEREAS, in order to expand the role of the standing committee, the Council adopted Resolution No. 2022-109, rescinding City Resolution No. 2021-132 and establishing a Cannabis Program and Permit Review Committee to not only review and approve non-storefront and non-delivery commercial cannabis permits but also to make recommendations to the City Council regarding cannabis-related programs, laws, and, regulations; and
WHEREAS, the City Council desires to amend the Modesto Municipal Code to reflect the Standing Committee’s new name in order to capture its expanded role.

NOW, THEREFORE, the City Council of the City of Modesto does ordain as follows:

SECTION 1. AMENDMENT TO CHAPTER 3 OF TITLE 10. Article 7, entitled “Commercial Cannabis Uses,” of the Modesto Municipal Code is hereby amended to read as follows:
10-3.704 - Application and Permit Procedures.
…
(f) Commercial Cannabis Permits.
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- 3 - ORDINANCE NO. 3742-C.S.

EFFECTIVE DATE: APRIL 7, 2022
(1) Commercial Cannabis Permits shall require City Council approval or the approval of a Cannabis Program and Permit Review Committee made up of three City Council members appointed by a majority of the entire Council, except with respect to Commercial Cannabis Delivery Permits, which shall be governed by Section 10-3.713.

Permit applicants must meet all operator and application requirements to be considered for permit issuance by the City Council or Cannabis Program and Permit Review Committee.
(2) City staff shall provide notice in accordance with Section 10-9.201 at least ten (10) days prior to the City Council’s or Cannabis Program and Permit Review Committee’s consideration of the permit.
…
(4) Appeals.
(i) If a Cannabis Program and Permit Review Committee is appointed, applicants may appeal its decisions on Cannabis Permits to the full City Council in writing in accordance with Section 10-9.302. The City Council’s decision on such appeals shall be final. (ii) If no Cannabis Program and Permit Review Committee is appointed, City Council decisions on Cannabis Permits shall be final.
…
(g) Cannabis Permit Application Procedure.
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- 4 - ORDINANCE NO. 3742-C.S.

EFFECTIVE DATE: APRIL 7, 2022
(1) The City Manager, or his or her designee, may design application forms and procedures specific to each permitted license type, including online permitting, and require inspections of proposed facilities before issuing a permit under this article. Such procedures may include a request for proposal (“RFP”) process for certain license types where deemed necessary.
(2) Applications shall be reviewed by City staff or qualified consultants, as designated by the City Manager. Such review may include a scoring or ranking system. Applications failing to meet minimum qualifications or scoring requirements may not be submitted to the City Council or Cannabis Program and Permit Review Committee for consideration. …
SECTION 2. SEVERABILITY.

If any provision of this Ordinance or the application thereof to any person or circumstance is held invalid, the remainder of the Ordinance, including the application of such part or provision to other persons or circumstances, shall not be affected thereby and shall continue in full force and effect. To this end, provisions of this Ordinance are severable. The City Council of the City of Modesto hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause, or phrase hereof irrespective of the fact that any one or more sections, subsections, subdivisions, paragraphs, sentences, clauses, or phrases be held unconstitutional, invalid, or unenforceable.

SECTION 3. CALIFORNIA ENVIRONMENTAL QUALITY ACT (“CEQA”). #5..
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EFFECTIVE DATE: APRIL 7, 2022
The proposed Ordinance is exempt from CEQA under the general rule in CEQA Guidelines section 15061(b)(3), that CEQA only applies to projects that have the potential for causing a significant effect on the environment.

SECTION 4. EFFECTIVE DATE.

This Ordinance shall go into effect and be in full force and operation from and after thirty (30) days following its final passage and adoption.

SECTION 5. PUBLICATION.

At least two (2) days prior to its final adoption, copies of this Ordinance shall be posted in at least three (3) prominent and distinct locations in the City; and a notice shall be published once in The Modesto Bee, the official newspaper of the City of Modesto, setting forth the title of this Ordinance, the date of its introduction and the places where this ordinance is posted.
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- 6 - ORDINANCE NO. 3742-C.S.

EFFECTIVE DATE: APRIL 7, 2022
The foregoing Ordinance was introduced at a regular meeting of the Council of the City of Modesto held on the 1st day of March, 2022, by Councilmember Ricci, who moved its introduction and passage to print, which motion being duly seconded by Councilmember Kenoyer, was upon roll call carried and ordered printed and published by the following vote:

AYES: Council Members: Kenoyer, Madrigal, Ricci, Wright, Zoslocki, Mayor Zwahlen
NOES: Council Members: None
ABSENT: Council Members: Escutia-Braaton
APPROVED: _________________________
SUE ZWAHLEN, Mayor
ATTEST:

BY: _________________________________
DANA SANCHEZ, Interim City Clerk
(SEAL)
APPROVED AS TO FORM:

BY: _________________________________
JOSE M. SANCHEZ, City Attorney
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- 7 - ORDINANCE NO. 3742-C.S.

EFFECTIVE DATE: APRIL 7, 2022

FINAL ADOPTION CLAUSE
The foregoing ordinance, having been published as required by the Charter of the City of Modesto, and coming on for final consideration at the regular meeting of the Council of the City of Modesto held on the 8th day of March, 2022, Council Member ______________moved its final adoption, which motion being duly seconded by Council Member ________________, was upon roll call carried and the ordinance adopted by the following vote:

AYES: Council Members:

NOES: Council Members:

ABSENT: Council Members:

APPROVED: _________________________

SUE ZWAHLEN, MAYOR
ATTEST: __________________________________
DANA SANCHEZ, Interim City Clerk
Effective Date: April 7, 2022
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CITY OF MODESTO
ORDINANCE NO. 3742-C.S.

The following Ordinance was introduced by the City Council of the City of Modesto at the meeting of March 1, 2022:

ORDINANCE 3742-C.S. AMENDING SECTION 10-3.704, “APPLICATION AND PERMIT PROCEDURES,” OF ARTICLE 7 OF CHAPTER 3 OF TITLE 10, “COMMERCIAL CANNABIS USES,” OF THE MODESTO MUNICIPAL CODE TO RENAME THE “CANNABIS PERMIT COMMITTEE” TO BE KNOWN AS THE “CANNABIS PROGRAM AND PERMIT REVIEW COMMITTEE” IN ORDER TO CAPTURE THE STANDING COMMITTEE’S NEW EXPANDED ROLE
Copies of the above-mentioned ordinance are posted at the following locations:
 Tenth Street Place, 1010 10th Street
 Maddux Youth Center, 615 Sierra Drive
 Senior Citizen Center, 211 Bodem Street
Dana Sanchez
Interim City Clerk
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- 1 - ORDINANCE NO. 3743-C.S.

EFFECTIVE DATE: April 7, 2022
ORDINANCE NO. 3743-C.S.

ORDINANCE AMENDING SECTION 2-1.18, “STANDING COMMITTEES,” OF THE MODESTO MUNICIPAL CODE TO INCLUDE THE “CANNABIS
PROGRAM AND PERMIT REVIEW COMMITTEE” AS A STANDING

COMMITTEE OF THE CITY
WHEREAS, on November 8, 2016, California voters approved Proposition 64, also known as the Adult Use of Marijuana Act (“AUMA”), legalizing recreational use of cannabis for adults 21 years of age and older; and
WHEREAS, the California Legislature passed Senate Bill 94 in June 2017, which was signed by the Governor and went into effect immediately, and which repealed the Medical Cannabis Regulation and Safety Act (“MCRSA”), and merged certain portions of that law with AUMA to create a more comprehensive regulatory structure for both medical and recreational cannabis; and
WHEREAS, the comprehensive regulatory system created by Senate Bill 94, intended to regulate all commercial cannabis uses, is called the Medicinal and Adult Use Cannabis Regulation and Safety Act (“MAUCRSA”); and
WHEREAS, the California Bureau of Cannabis Control has promulgated and adopted regulations (“BCC Regulations”) regarding commercial cannabis uses within the state; and
WHEREAS, the City of Modesto (“City”) adopted ordinances regulating all commercial cannabis activities within the City; and
WHEREAS, pursuant to Ordinance No. 3684-C.S, Section 10-3.704(f) of the Modesto Municipal Code/Zoning Code, the City Council is authorized to establish a Cannabis Permit Review Committee; and
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- 2 - ORDINANCE NO. 3743-C.S.

EFFECTIVE DATE: April 7, 2022
WHEREAS, pursuant to Section 10-3.704(f), the Council adopted Resolution No. 2021-132, establishing a three-member standing committee, the Cannabis Permit Review Committee, to review and approve of non-storefront and non-delivery commercial cannabis permits; and
WHEREAS, in order to expand the role of the standing committee, the Council adopted Resolution No. 2022-109, rescinding Resolution No. 2021-132 and establishing a Cannabis Program and Permit Review Committee to not only review and approve nonstorefront and non-delivery commercial cannabis permits but also to make recommendations to the City Council regarding cannabis-related programs, laws, and regulations; and
WHEREAS, the City Council desires to amend the Modesto Municipal Code to include the “Cannabis Program and Permit Review Committee” as a standing committee of the City under the Municipal Code.

NOW, THEREFORE, the City Council of the City of Modesto does ordain as follows:

SECTION 1. AMENDMENT TO CHAPTER 1 OF TITLE 2. Section 2-1.18, entitled “Standing Committees,” of the Modesto Municipal Code is hereby amended to read as follows:
2-1.18 - Standing Committees.

The standing committees of the Council shall be the Safety and Communities Committee, the Economic Development Committee, the Finance Committee, the Appointments Committee, the Audit Committee, and the Cannabis Program and Permit Review Committee, each of which committees shall consist of three (3) members of the Council #6..
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- 3 - ORDINANCE NO. 3743-C.S.

EFFECTIVE DATE: April 7, 2022
appointed by the Mayor. The responsibilities of the Appointments and Audit Committee shall be to review and make recommendations for appointments to City Boards, Commissions, and Committees, and such other responsibilities established from time to time by resolution of the City Council.

SECTION 2. SEVERABILITY.

SECTION 3. CALIFORNIA ENVIRONMENTAL QUALITY ACT (“CEQA”).

The proposed Ordinance is exempt from CEQA under the general rule in CEQA Guidelines section 15061(b)(3), that CEQA only applies to projects that have the potential for causing a significant effect on the environment.

SECTION 4. EFFECTIVE DATE.

This Ordinance shall go into effect and be in full force and operation from and after thirty (30) days following its final passage and adoption.
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- 4 - ORDINANCE NO. 3743-C.S.

EFFECTIVE DATE: April 7, 2022
SECTION 5. PUBLICATION.

EFFECTIVE DATE: April 7, 2022
The foregoing Ordinance was introduced at a regular meeting of the Council of the City of Modesto held on the 1st day of March, 2022, by Councilmember Madrigal, who moved its introduction and passage to print, which motion being duly seconded by Councilmember Ricci, was upon roll call carried and ordered printed and published by the following vote:

BY: _________________________________
DANA SANCHEZ, Interim City Clerk
(SEAL)
APPROVED AS TO FORM:

BY: _________________________________
JOSE M. SANCHEZ, City Attorney
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EFFECTIVE DATE: April 7, 2022

FINAL ADOPTION CLAUSE
The foregoing ordinance, having been published as required by the Charter of the City of Modesto, and coming on for final consideration at the regular meeting of the Council of the City of Modesto held on the 8th day of March, 2022, Councilmember ? moved its final adoption, which motion being duly seconded by Councilmember ?, was upon roll call carried and the ordinance adopted by the following vote:

AYES: Council Members: Escutia-Braaton, Kenoyer, Madrigal, Ricci, Wright, Zoslocki, Mayor Zwahlen
NOES: Council Members: None
ABSENT: Council Members: None
APPROVED: _________________________

SUE ZWAHLEN, MAYOR
ATTEST: __________________________________
DANA SANCHEZ, Interim City Clerk
Effective Date: April 7, 2022
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CITY OF MODESTO
ORDINANCE NO. 3743-C.S.

The following Ordinance was introduced by the City Council of the City of Modesto at the meeting of March 1, 2022:

ORDINANCE 3743-C.S. AMENDING SECTION 2-1.18, “STANDING COMMITTEES,” OF THE MODESTO MUNICIPAL CODE TO INCLUDE THE “CANNABIS PROGRAM AND PERMIT REVIEW COMMITTEE” AS A STANDING COMMITTEE OF THE CITY
Copies of the above-mentioned ordinance are posted at the following locations:
 Tenth Street Place, 1010 10th Street
 Maddux Youth Center, 615 Sierra Drive
 Senior Citizen Center, 211 Bodem Street
Dana Sanchez
Interim City Clerk
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EFFECTIVE DATE: April 7, 2022
ORDINANCE NO. 3744-C.S.

ORDINANCE ADDING ARTICLE 7, “LOCAL HIRING PREFERENCES IN PUBLIC WORKS CONTRACTS,” AND ARTICLE 8, “UTILIZING SKILLED AND TRAINED WORKFORCE IN PUBLIC WORKS CONTRACTS,” TO TITLE 8, CHAPTER 3 OF THE MODESTO MUNICIPAL CODE
WHEREAS, the unemployment rate in the City of Modesto (“City”) has generally been higher than in the State of California as a whole. The average unemployment rate in the City between 2018 and 2021 was 7.66%. During the same time period, the average annual unemployment rate for the State of California as a whole was 6.69%; and WHEREAS, the City has determined that expanding the employment base by implementing a local hiring preference in Public Works Contracts within the City and Stanislaus County will benefit the region as a whole; and WHEREAS, the City has determined that it is in the public interest and welfare to add Article 7 to Chapter 3 of Title 8 of the Modesto Municipal Code; and WHEREAS, the City has determined that Public Works Contracts utilizing a skilled and trained workforce will result in a higher quality work product; and WHEREAS, the City has determined that it is in the public interest and welfare to add Article 8 to Chapter 3 of Title 8 of the Modesto Municipal Code.

NOW, THEREFORE, the City Council of the City of Modesto does ordain as follows: SECTION 1. FINDINGS
The City Council of the City of Modesto finds that all of the above Recitals and within this Ordinance are true and correct and incorporated herein by reference. #7..
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EFFECTIVE DATE: April 7, 2022
SECTION 2. ADDITIONS

1. The City of Modesto Municipal Code Title 8 Chapter 3 is hereby amended by adding ARTICLE 7 entitled “Local Hiring Preferences in Public Works Contracts” in its entirety to read as follows:

Article 7 – Local Hiring Preferences in Public Works Contracts 8-3.701 – Findings and Purpose
(a) The City Council finds and declares as follows:
(1) The unemployment rate in the City has generally been higher than in the State of California as a whole. The average annual unemployment rate in the City between 2018 and 2021 was 7.66%. During the same time period, the average annual unemployment rate for the State of California as a whole was 6.69%.
(2) Statistics indicate that the City’s higher unemployment rate correlates to a higher number of families living in poverty and to a higher crime rate. (3) Expanding the employment base by implementing a local hiring preference in Public Works Contracts within the City and Stanislaus County will benefit the region as a whole.
(4) The City spends significant amounts in contracting for services and in constructing improvements to real property or to existing facilities. The funds used in contracting for those services are derived, in part, from taxes, fees, and other revenues of local businesses in the City. To the extent possible, such funds should be placed back into the local economy. #7..
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EFFECTIVE DATE: April 7, 2022
(5) The construction industry is a potential path to stable employment and is, therefore, a critical opportunity to connect residents with economic opportunities.
(6) A local hiring preference in Public Works Contracts will aim to provide job opportunities to City and Stanislaus County residents, expand the region’s employment base, lessen the drain on public assistance resources, and reduce the City workforce’s pattern of commuting outside the region for employment.
(b) The purpose of this Article is to improve the local economy by:
(1) Increasing the local workforce base by decreasing unemployment and thereby enhancing and retaining job skills; and
(2) Increasing local spending power, which will result in a stronger, more self-reliant economy.
8-3.702 – Exclusions and Exceptions
The provisions of this Article shall not apply under any of the following circumstances:
(a) When a state or federal law or regulation applicable to a particular Public Works Contract prohibits a local hiring requirement;
(b) When a particular Public Works Contract utilizes grant funding, where the conditions of the grant prohibit a local hiring requirement; (c) When the City, in its sole discretion, determines that a contract is necessary to respond to any emergency which endangers the public health, safety, or welfare; #7..
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EFFECTIVE DATE: April 7, 2022
(d) When the City, in its sole discretion, determines that a suitable pool of Qualified Individuals who are Local Residents does not exist for a specific Public Works Contract; and/or
(e) When the estimated cost of the construction of the Public Works Contract is less than $500,000.
8-3.703 – Definitions
Except as otherwise expressly set forth herein, the following words and terms as used in this Article shall have the following meanings:
(a) “Construction Work Hours” means the total hours worked on a Public Works Contract by qualified individuals, whether those individuals are employed by a Contractor or Subcontractor.
(b) “Contractor” means any of the following:
(1) Any person or entity who submits a bid as the prime entity to the City for a Public Works Contract.
(2) Any person or entity who provides labor and/or materials for the City pursuant to a Public Works Contract.
(c) “City” means the City of Modesto, California.
(d) “Days” means calendar days unless otherwise specified. (e) “Local Resident” means an individual who is legally domiciled, as defined by Elections Code section 349(b), in Stanislaus County immediately preceding the date of the notice of solicitation or bid advertisement by the City. An individual’s domicile is his or her one and only true, fixed, and permanent home and principal establishment. An individual shall verify his or her domicile upon request of the #7..
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EFFECTIVE DATE: April 7, 2022
Contractor or City by producing satisfactory documentation such as a rent/lease agreement, utility bills, a valid state-issued driver’s license or identification card, or any other similar and reliable evidence.
(f) “Public Works Contract” has the same meaning as set forth in Section 1307 of the City Charter, as amended or supplanted.
(g) “Qualified Individuals” means any and all skilled and unskilled workers, including but not limited to, work site foremen, journeymen, technical engineers, apprentices, construction trainees, and construction helpers. Qualified Individuals also include any and all other workers appropriate for construction activities regardless of level of skill.
(h) “Subcontractor(s)” means any person or entity that assumes, by secondary contract, some or all of the obligations of a Contractor. 8-3.704 – Requirements for Contractors
(a) Every Contractor submitting a bid to the City for a Public Works Contract shall agree to make a good faith effort to hire Qualified Individuals who are Local Residents in sufficient numbers so that, with respect to such Public Works Contract, no less than 25% of the total construction workforce, including the Subcontractor workforce, measured in Construction Work Hours, is comprised of Local Residents.
(b) A “good faith effort” means a Contractor will take all of the following or similar actions to recruit and maintain Local Residents as part of the construction workforce:
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EFFECTIVE DATE: April 7, 2022
(1) Contact local recruitment sources to identify Qualified Individuals who are Local Residents;
(2) Advertise for Qualified Individuals who are Local Residents in trade papers and newspapers of general circulation within the City and the County of Stanislaus, or by equivalent electronic means, unless time limits imposed under the applicable Public Works Contract relative to the commencement and/or completion of work do not permit such advertising; and
(3) With respect to any portion of a Public Works Contract to be performed by a Subcontractor, identify Subcontractors whose workforce includes Qualified Individuals who are Local Residents.
(c) Every Contractor shall complete and sign, under penalty of perjury, a certification of good faith effort to hire Local Residents, on the form provided in the City’s bid package, and shall submit the same with its sealed bid no later than the date and time of the bid opening.
(d) A Contractor shall include in each and every subcontract relating to a Public Works Contract, a provision whereby the Subcontractor agrees to make a good faith effort to hire Qualified Individuals who are Local Residents. A Contractor shall be responsible for a Subcontractor’s compliance with the provisions of this Article.
(e) The City Purchasing Manager, or his or her designee, shall prescribe rules, regulations, and procedures relating to the application, administration, and interpretation of the provisions of this Section. Such rules, regulations, and #7..
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EFFECTIVE DATE: April 7, 2022
procedures shall be consistent with the provisions of this Section and may specify details and forms to be used.
(f) If in the sole discretion of the City, the City finds that a Contractor has failed to make a good faith effort to use Local Residents in the course of performance of any applicable Public Works Contract pursuant to the requirements of this Article, the City may deem the Contractor in breach of contract. In the alternative of any other available legal remedies, the City may require that Contractor to develop a written plan to recruit Qualified Individuals who are Local Residents as a method of complying with the requirements of this Article. If the Contractor fails to comply with a written plan described by this Section, the City may, at its sole discretion, deem the Contractor non-responsible in the evaluation of future Public Works Contract bid opportunities.
8-3.705 – Hiring Discretion
This Article does not limit the Contractor’s or the Subcontractor’s ability to assess the qualifications of prospective workers, and to make final hiring and retention decisions.

No provision of this Article shall be interpreted so as to require a Contractor or Subcontractor to employ a worker not qualified for a position in question, or to employ any particular worker.
8-3.706 – Nonresponsive Bids
(a) Nothing in this Article alters the City’s obligation to award a contract to the lowest bidder. The City may declare a bid to be nonresponsive under the provisions of this Article for good cause including, but not limited to, the following circumstances:
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EFFECTIVE DATE: April 7, 2022
(1) If a Contractor fails to complete and sign, under penalty of perjury, the certificate of good faith effort to hire Local Residents and/or fails to submit the same with its sealed bid no later than the date and time of bid opening; or
(2) If a Contractor, or a Subcontractor listed by a Contractor, fails to comply with the good faith effort requirements set forth in 8-3.703. 8-3.707 – Required Documentation
During its performance of a Public Works Contract, a Contractor shall keep an accurate record on a standardized form showing the name, place, of residence, trade classification, hours employed, proof of a Qualified Individual status, per diem wages and benefits, or each person employed by the Contractor on the specific public works project, including full-time, part-time, permanent and temporary employees. A Contractor shall require each Subcontractor performing work pursuant to a Public Works Contract awarded by the City to the Contractor to maintain records of the same information for the Subcontractor’s workforce and shall require each Subcontractor to provide a copy of such records to the Contractor upon the Contractor’s request. A Contractor shall make the records and documents set forth in this Section available to the City, upon request, within five (5) business days.
8-3.708 – Forms Submitted Under Penalty of Perjury
All forms required under this Article shall be attested to as true as to the information set forth therein and shall be submitted under penalty of perjury. 8-3.709 – Monitoring
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EFFECTIVE DATE: April 7, 2022
From time to time, and at its sole discretion, the City may monitor and investigate the compliance of any Contractor and/or Subcontractor with respect to the requirements of this Article. The City shall have the right to engage in random inspections of job sites, subject to the construction schedule and safety concerns. Each Contractor and Subcontractor shall allow representatives of the City, in the performance of their duties, to engage in random inspections of job sites and to have access to the employees of the Contractor and Subcontractor and the records required to document compliance with this Article. The City shall establish a procedure for City monitoring of compliance with this Article and to address allegations of noncompliance. The City shall have sole authority over the administration of this Article.

2. The City of Modesto Municipal Code Title 8 Chapter 3 is hereby amended by adding ARTICLE 8 entitled “Utilizing Skilled and Trained Workforce in Public Works Contracts” in its entirety to read as follows:

Article 8 – Utilizing Skilled and Trained Workforce in Public Works Contracts 8-3.801 – Findings and Purpose
(a) The City Council finds and declares as follows: The purpose of this Article is to improve the quality of public works projects undertaken in the City by:
(1) Increasing the percentage of individuals utilized in Public Works Contracts meeting the definition of a skilled and trained workforce. (2) Utilizing a greater percentage of skilled and trained workforce will increase the quality of public works projects completed in the City because the workforce is more experienced and qualified to perform such work.
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EFFECTIVE DATE: April 7, 2022
8-3.802 – Exclusions and Exceptions
The provisions of this Article shall not apply under any of the following circumstances:
(a) When a state or federal law or regulation applicable to a particular Public Works Contract prohibits a skilled and trained workforce requirement; (b) When a particular Public Works Contract utilizes grant funding, where the conditions of the grant prohibit a skilled and trained workforce requirement; (c) When the City determines that a contract is necessary to respond to any emergency which endangers the public health, safety, or welfare; (d) When the City, in its sole discretion, determines that a suitable pool of Qualified Individuals who meet skilled and trained workforce requirements does not exist for a specific Public Works Contract.
(e) When the estimated cost of the construction of the Public Works Contract is less than $500,000; and/or
(f) When a Public Works Project is governed by a particular State law or regulation prescribing skilled and trained workforce requirements inconsistent with this Article.
8-3.803 – Definitions
Except as otherwise expressly set forth herein, the following words and terms as used in this Article shall have the following meanings:
(a) “Apprenticeable occupation” means an occupation for which the Chief of the Division of Apprenticeship Standards of the Department of Industrial Relations had approved an apprenticeship program pursuant to Section 3075 of the Labor code before January 1, 2014.
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EFFECTIVE DATE: April 7, 2022
(b) “Construction Work Hours” means the total hours worked on a public works contract by qualified individuals, whether those individuals are employed by a Contractor or Subcontractor.
(c) “Contractor” means any of the following:
(1) Any person or entity who submits a bid as the prime entity to the City for a Public Works Contract.
(2) Any person or entity who provides labor and/or materials for the City pursuant to a Public Works Contract.
(d) “City” means the City of Modesto, California.
(e) “Days” means calendar days unless otherwise specified. (f) “Public Works Contract” has the same meaning as set forth in Section 1307 of the City Charter, as amended or supplanted.
(g) “Qualified Individuals” means any and all skilled and trained workers, including but not limited to, work site foremen, journeymen, technical engineers, apprentices, construction trainees, and construction helpers. Qualified Individuals also include any and all other workers appropriate for construction activities regardless of level of skill.
(h) “Skilled and trained workforce” means a workforce that meets all of the following conditions:
(1) All the workers performing work in an apprenticable occupation in the building and construction trades are either skilled journeypersons or apprentices registered in an apprenticeship program approved by the Chief #7..
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EFFECTIVE DATE: April 7, 2022
of the Division of Apprenticeship Standards of the Department of Industrial Relations.
(2) At least 60% of the skilled journeypersons employed to perform work on the contract or project by every Contractor and each of its Subcontractors at every tier are graduates of an apprenticeship program for the applicable occupation. This requirement shall not apply to the following occupations: acoustical installer, bricklayer, carpenter, cement mason, drywall installer or lather, marble mason, finisher, or setter, modular furniture or systems installer, operating engineer, pile driver, plasterer, roofer or waterproofer, stone mason, surveyor, teamster, terranzzo worker or finisher, and tile layer, setter, or finisher.
(3) For the occupations exempted from the requirements of Paragraph 2 of this Section (definition of “skilled and trained workforce”), at least 30% of the skilled journeypersons employed to perform work on the contract or project by every Contractor and each of its Subcontractors at every tier must be graduates of an apprenticeship program for the applicable occupation.
(i) “Skilled journeyperson” means a worker who either:
(1) Graduated from an apprenticeship program for the applicable occupation that was approved by the Chief of the Division of Apprenticeship Standards of the Department of Industrial Relations or located outside California and approved for federal purposes pursuant to the apprenticeship regulations adopted by the federal Secretary of Labor. #7..
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EFFECTIVE DATE: April 7, 2022
(2) Has at least as many hours of on-the-job experience in the applicable occupation as would be required to graduate from an apprenticeship program for the applicable occupation that is approved by the Chief of the Division of Apprenticeship Standards of the Department of Industrial Relations.
(j) “Subcontractor(s)” means any person or entity that assumes, by secondary contract, some or all of the obligations of a Contractor. 8-3.804 – Requirements for Contractors
(a) Each Contractor and Subcontractor that performs work on a Public Works Contract shall make a good faith effort to employ a skilled and trained workforce, pursuant to California Public Contract Code § 2601, to perform all work on the project that falls within an Apprenticable Occupation in the building and construction trades, as defined by California Public Contract Code § 2601. (b) Each Contractor and Subcontractor that performs work on a Public Works Contract shall make a good faith effort to use graduates of an apprenticeship program as defined by Public Contract Code § 2601(c), in the percentages required by Section 8-3.803(i) of this Article.
(c) A “good faith effort” means a Contractor will take all of the following or similar actions to recruit and maintain skilled and trained workforce in the performance of any Public Works Contract meeting the requirements of this Article:
(1) Contact recruitment sources to identify Qualified Individuals; (2) Advertise for Qualified Individuals in trade papers and newspapers of general circulation within the City and the County of Stanislaus, or by #7..
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EFFECTIVE DATE: April 7, 2022
equivalent electronic means, unless time limits imposed under the applicable Public Works Contract relative to the commencement and/or completion of work do not permit such advertising; and
(3) With respect to any portion of a Public Works Contract to be performed by a Subcontractor, identify Subcontractors whose workforce includes Qualified Individuals.
(d) Each Contractor shall certify that it made a good faith effort to use a skilled and trained workforce, on the form provided in the City’s bid package, and shall submit the same with its sealed bid no later than the date and time of the bid opening.
(e) Each Contractor shall include in each and every subcontract relating to a Public Works Contract, a provision requiring the Subcontractor to certify that it made a good faith effort to use a skilled and trained workforce in that contract. Each Contractor shall be responsible for a Subcontractor’s compliance with the requirements of this Article.
(f) Failure of any Contractor or Subcontractor to comply with any requirement of this Article may be deemed, in the sole discretion of the City, a material breach of the Public Works Contract.
8-3.805 – Hiring Discretion
This Article does not limit the Contractor’s or the Subcontractor’s ability to assess the qualifications of prospective workers, and to make final hiring and retention decisions.

No provision of this Article shall be interpreted so as to require a Contractor or #7..
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EFFECTIVE DATE: April 7, 2022
Subcontractor to employ a worker not qualified for a position in question, or to employ any particular worker.
8-3.806 – Nonresponsive Bids
(a) Nothing in this Article alters the City’s obligation to award a contract to the lowest bidder. The City may declare a bid to be nonresponsive under the provisions of this Article for good cause including, but not limited to, the following circumstances:
(1) If a Contractor fails to complete and sign, under penalty of perjury, the certification that the Contractor made a good faith effort to use a skilled and trained workforce and/or fails to submit the same with its sealed bid no later than the date and time of bid opening; or
(2) If a Contractor, or a Subcontractor listed by a Contractor, fails to comply with the requirements set forth in 8-3.804.
8-3.807 – Required Documentation
For three (3) years following substantial completion of any Public Works Contract, each Contractor and Subcontractor shall keep accurate payroll records, showing the name, address, and work classification for each worker who worked on the project; the straight time and overtime hours worked each day and week; whether the worker qualifies as a skilled journeyperson under California Public Contract Code § 2601; and whether the worker is a graduate of an apprenticeship program in the applicable occupation. These records shall be made available upon request by officers and agents of the City. Records shall be made available no later than ten (10) days subsequent to the request. 8-3.808 – Forms Submitted Under Penalty of Perjury
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EFFECTIVE DATE: April 7, 2022
All forms required under this Article shall be attested to as true as to the information set forth therein and shall be submitted under penalty of perjury. 8-3.809 – Monitoring
From time to time, and at its sole discretion, the City may monitor and investigate compliance of any Contractor and/or Subcontractor with respect to the requirements of this Article. The City shall have the right to engage in random inspections of job sites, subject to the construction schedule and safety concerns. Each Contractor and Subcontractor shall allow representatives of the City, in the performance of their duties, to engage in random inspections of job sites and to have access to the employees of the Contractor and Subcontractor and the records required to document compliance with this Article. The City shall establish a procedure for City monitoring of compliance with this Article and to address allegations of noncompliance. Within sixty (60) days of Contractor completing all substantial work associated with a Public Works Contract pursuant to this Article, Contractor shall submit documentation as set forth in Section 8-

3.807 in a form acceptable to the City. The City shall have sole authority over the administration of this Article.
8-3.810 – City’s Remedies
If in the sole discretion of the City, the City finds that a Contractor has failed to make a good faith effort to use a skilled and trained workforce in the course of performance of any applicable Public Works Contract pursuant to the requirements of this Article, the City may deem the Contractor in breach of contract. In the alternative of any other available legal remedies, the City may require that Contractor to develop a written plan to recruit qualified individuals as a method of complying with the requirements of this #7..
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EFFECTIVE DATE: April 7, 2022
Article. If the Contractor fails to comply with a written plan described by this Section, the City may, at its sole discretion, deem the Contractor non-responsible in the evaluation of future Public Works Contract bid opportunities.

SECTION 3. SEVERABILITY.

If any portion of this Ordinance, or its application to any person or circumstance, is for any reason held to be invalid, unenforceable or unconstitutional, by a court of competent jurisdiction, that portion shall be deemed severable, and such invalidity, unenforceability or unconstitutionality shall not affect the validity or enforceability of the remaining portions of the Ordinance, or its application any other person or circumstance. The City Council or the City of Modesto hereby declares that it would have adopted each section, sentence, clause, or phrase of this Ordinance, irrespective of the fact that any one or more other sections, sentences, clauses or phrases of this Ordinance be declared invalid, unenforceable or unconstitutional.

SECTION 4. CALIFORNIA ENVIRONMENTAL QUALITY ACT
(“CEQA”)
The City Council hereby finds that the adoption of this Ordinance is exempt from CEQA pursuant to CEQA Guidelines section 15061(b)(3) of the State CEQA Guidelines.

Specifically, this Ordinance will not result in a direct or reasonably foreseeable indirect physical change in the environment because it does not authorize the construction of any new structures or other physical changes to the environment.

SECTION 5. EFFECTIVE DATE.

This Ordinance shall go into effect and be in full force and operation from and after thirty (30) days after its final passage and adoption.
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EFFECTIVE DATE: April 7, 2022
SECTION 6. PUBLICATION.

At least two (2) days prior to its final adoption, copies of this Ordinance shall be posted in at least three (3) prominent and distinct locations in the City; and a notice shall be published once in the Modesto Bee, the official newspaper of the City of Modesto, setting forth the title of this Ordinance, the date of its introduction and the places where this ordinance is posted.
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AYES: Council Members: Madrigal, Ricci, Zoslocki, Mayor Zwahlen NOES: Council Members: Kenoyer, Wright,
ABSENT: Council Members: Escutia-Braaton
APPROVED: _________________________
SUE ZWAHLEN, Mayor
ATTEST:

BY: _________________________________
DANA SANCHEZ, Interim City Clerk
(SEAL)
APPROVED AS TO FORM:

BY: _________________________________
JOSE M. SANCHEZ, City Attorney
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EFFECTIVE DATE: April 7, 2022

FINAL ADOPTION CLAUSE
The foregoing ordinance, having been published as required by the Charter of the City of Modesto, and coming on for final consideration at the regular meeting of the Council of the City of Modesto held on the 8th day of March, 2022, Councilmember ? moved its final adoption, which motion being duly seconded by Councilmember ?, was upon roll call carried and the ordinance adopted by the following vote:

AYES: Council Members: Escutia-Braaton, Kenoyer, Madrigal, Ricci, Wright, Zoslocki, Mayor Zwahlen
NOES: Council Members: None
ABSENT: Council Members: None
APPROVED: _________________________

SUE ZWAHLEN, MAYOR
ATTEST: __________________________________
DANA SANCHEZ, Interim City Clerk
Effective Date: April 7, 2022
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CITY OF MODESTO
ORDINANCE NO. 3744-C.S.

The following Ordinance was introduced by the City Council of the City of Modesto at the meeting of March 1, 2022:

ORDINANCE 3744-C.S. ADDING ARTICLE 7, “LOCAL HIRING PREFERENCES IN PUBLIC WORKS CONTRACTS,” AND ARTICLE 8, “UTILIZING SKILLED AND TRAINED WORKFORCE IN PUBLIC WORKS CONTRACTS,” TO TITLE 8, CHAPTER 3 OF THE MODESTO MUNICIPAL CODE
Copies of the above-mentioned ordinance are posted at the following locations:
 Tenth Street Place, 1010 10th Street
 Maddux Youth Center, 615 Sierra Drive
 Senior Citizen Center, 211 Bodem Street
Dana Sanchez
Interim City Clerk
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CITY OF MODESTO

COUNCIL AGENDA REPORT
DATE OF MEETING:

March 8, 2022
Date: March 3, 2022
TO: Mayor & City Council
THROUGH: Joseph P. Lopez, City Manager
FROM: Jose M. Sanchez, City Attorney
CONTACT: Jose M. Sanchez, City Attorney, 209-577-5284, [email protected] DESCRIPTION:

Consider approving a resolution continuing to authorize remote teleconference meetings pursuant to Assembly Bill 361. (Funding Source: Not Applicable) STRATEGIC PLAN ELEMENT:

This item is related to the 2020-2025 Strategic Plan goal of promoting trust and engagement.

BACKGROUND:

On March 4, 2020, Governor Newsom declared a State of Emergency to make additional resources available, formalize emergency actions already underway across multiple state agencies and departments, and help the State prepare for a broader spread of the novel coronavirus disease 2019 (“COVID-19”). On March 19, 2020, the City Council adopted Resolution Number 2020-140, ratifying the proclamation of a local emergency by the Director of Emergency Services due to COVID-19.

All meetings of the City Council and the City’s other legislative bodies are open and public, as required by the Ralph M. Brown Act, Government Code section 54950 et seq., so that any member of the public may attend, participate, and watch the City’s legislative bodies conduct their business. On March 17, 2020, in response to the COVID-19 pandemic, Governor Newsom issued Executive Order N-29-20 suspending certain provisions of the Ralph M. Brown Act in order to allow local legislative bodies to conduct meetings telephonically or by other means in order to slow the spread of COVID-19. As a result of Executive Order N-29-20, staff set up virtual meetings for all City Council meetings and other City legislative bodies. On June 11, 2021, Governor Newsom issued Executive Order N-08-21, which, effective September 30, 2021, ended the provisions of Executive Order N-29-20 that allowed local legislative bodies to conduct meetings telephonically or by other means.
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City Council, March 8, 2022
Assembly Bill 361-Continued Remote Teleconference Meetings

Page 2 of 4 ends

DISCUSSION:

On September 16, 2021, the Governor signed Assembly Bill (AB) 3611 (2021) which allows for local legislative bodies to continue to conduct meetings via teleconferencing under specified conditions and includes a requirement that the City Council make specified findings. AB 361 took effect immediately. In addition to other circumstances, the City and its legislative bodies will be allowed to continue to meet remotely during a declared state of emergency when state or local health officials have imposed or recommended measures to promote social distancing, or when the Council finds that meeting in person would present imminent risks to the health or safety of attendees.

On Tuesday, September 28, 2021, the City Council adopted Resolution No. 2021-370, finding that a state of emergency exists and that the County of Stanislaus Health Officer had imposed and recommended social distancing measures for residents within the City. On Tuesday, October 5, 2021, the City Council held their first meeting in accordance with the requirements of Government Code section 54953(e).

In order to continue to hold remote meetings, the City Council must reconsider the state of emergency and declare every 30 days that either (i) the state of emergency continues to directly impact the ability of the members to meet safely in person, or (ii) State or local officials continue to impose or recommend measures to promote social distancing.

The state of emergency, as declared by the Governor and City Council, continues in existence.

Health officials continue to recommend measures to slow the spread of COVID-19. On November 15, 2021, the Stanislaus County Health Officer reiterated her recommendation that “[i]ncreasing distance during meetings and indoor gatherings to six feet or more can help stop the spread” of COVID-19.

The proposed resolution includes the necessary findings in order for the City Council and the other legislative bodies of the City to continue holding remote teleconference meetings pursuant to AB 361.

FISCAL IMPACT:

There is no cost associated with this item.

COMMITTEE RECOMMENDATION:

This agenda item was not presented to a Council Committee.

RECOMMENDED COUNCIL ACTION:

Staff Recommendations:

Resolution continuing to authorize remote teleconference meetings of the City of Modesto pursuant to Assembly Bill 361.
1 Assembly Bill No. 361 - An act to add and repeal Section 89305.6 of the Education Code, and to amend, repeal, and add Section 54953 of, and to add and repeal Section 11133 of, the Government Code, relating to open meetings, and declaring the urgency thereof, to take effect immediately. https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=202120220AB361 #8..
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City Council, March 8, 2022
Assembly Bill 361-Continued Remote Teleconference Meetings

Page 3 of 4 ends

Approved by:

Jose M. Sanchez, City Attorney
Joseph P. Lopez, City Manager
Attachments:

1. Resolution

2. Assembly Bill 361
5040861.1
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MODESTO CITY COUNCIL
RESOLUTION NO. 2022-XX

RESOLUTION CONTINUING TO AUTHORIZE REMOTE

TELECONFERENCE MEETINGS OF THE CITY OF MODESTO PURSUANT TO ASSEMBLY BILL 361
WHEREAS, the City of Modesto (the “City”) is committed to preserving and promoting public access and participation in meetings of the legislative bodies; and WHEREAS, all meetings of the City are open and public, as required by the Ralph M.

Brown Act (Cal. Gov. Code 54950 – 54963), so that any member of the public may attend, participate, and watch the City conduct their business; and WHEREAS, on March 4, 2020, Governor Newsom declared a State of Emergency to make additional resources available, formalize emergency actions already underway across multiple state agencies and departments, and help the State prepare for a broader spread of the novel coronavirus disease 2019 (“COVID-19”); and WHEREAS, on March 19, 2020, the City Council adopted Resolution Number 2020-140, ratifying the proclamation of a local emergency by the Director of Emergency Services due to COVID-19; and
WHEREAS, on March 17, 2020, in response to the COVID-19 pandemic, Governor Newsom issued Executive Order N-29-20 suspending certain provisions of the Ralph M. Brown Act in order to allow local legislative bodies to conduct meetings telephonically or by other means; and
WHEREAS, on June 11, 2021, Governor Newsom issued Executive Order N-08- 21, which, effective September 30, 2021, repealed the provisions of Executive Order N29-20 that allowed local legislative bodies to conduct meetings telephonically or by other means; and
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WHEREAS, on September 16, 2021, Governor Newsom signed Assembly Bill 361 (2021) (“AB 361”), which allows for remote teleconferencing participation in meetings by members of a legislative body without compliance with the requirements of Government Code section 54953(b)(3), subject to the existence of certain conditions; and WHEREAS, a required condition of AB 361 is that a state of emergency is declared by the Governor pursuant to Government Code section 8625, proclaiming the existence of conditions of disaster or of extreme peril to the safety of persons and property within the state caused by conditions as described in Government Code section 8558; and
WHEREAS, AB 361 further requires that state or local officials have imposed or recommended measures to promote social distancing, or, that the legislative body meeting in person would present imminent risks to the health and safety of attendees; and WHEREAS, on September 28, 2021, the City Council adopted Resolution No. 2021-370 authorizing remote teleconference meetings pursuant to AB361 (Government Code section 54953(e)); and
WHEREAS, the City is required to make certain findings every thirty (30) days to continue teleconferencing under Government Code section 54953(e)(3), including reconsideration of the state of emergency declared by the Governor pursuant to Government Code section 8625, and whether State or local officials continue to impose or recommend measures to promote social distancing; and #8..
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WHEREAS, the City Council has considered the circumstances of the Governor’s state of emergency proclamation pursuant to Government Code section 8625, which remains active; and
WHEREAS, on November 15, 2021, the Health Officer of the County of Stanislaus reiterated her recommendation that “[i]ncreasing distance during meetings and indoor gatherings to six feet or more can help stop the spread” of COVID-19; and WHEREAS, the City Council, acting for itself and for the benefit of all of the City’s commissions, committees, and other bodies (collectively referred to as the “Legislative Bodies”), does hereby find that the Legislative Bodies shall continue to conduct their meetings without compliance with Government Code section 54953(b)(3), as authorized by Government Code section 54953(e), and that the Legislative Bodies shall continue to comply with the requirements to provide the public with access to the meetings as prescribed in Government Code section 54953(e)(2) as a consequence of the ongoing state of emergency and the continued social distancing measures required by local officials.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MODESTO DOES HEREBY RESOLVE AS FOLLOWS:

Section 1. Recitals. The Recitals set forth above are true and correct and are incorporated into this Resolution by this reference.

Section 2. Consideration of State of Emergency. The City Council has considered the conditions of the state of emergency declared pursuant to Government Code section 8625, and determined that such emergency conditions continue to be present in the City. #8..
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Section 3. Continued Social Distancing Measures by State and Local Officials.

The City Council finds that the County of Stanislaus Health Officer’s recommended measures to promote social distancing remain in effect.

Section 4. Remote Teleconference Meetings. The City Council finds that the conditions continue to exist pursuant to Government Code section 54953(e)(3) to allow Legislative Bodies to use teleconferencing to hold public meetings in accordance with Government Code section 54953(e)(2) to ensure members of the public have continued access to safely observe and participate in local government meetings.

The foregoing Resolution was introduced in a regular meeting of the Council of the City of Modesto held on the 8th day of March 2022, by Council Member ________, who moved its adoption, which motion being duly seconded by Council Member ______, was upon roll call carried and the resolution adopted by the following vote:

AYES: Council Members:

NOES: Council Members:

ABSENT: Council Members:

ATTEST: _____________________________
DANA SANCHEZ, Interim City Clerk
(SEAL)
APPROVED AS TO FORM:

BY: _________________________________
JOSE M. SANCHEZ, City Attorney
5040876.1
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Assembly Bill No. 361
CHAPTER 165
An act to add and repeal Section 89305.6 of the Education Code, and to amend, repeal, and add Section 54953 of, and to add and repeal Section 11133 of, the Government Code, relating to open meetings, and declaring the urgency thereof, to take effect immediately.
[Approved by Governor September 16, 2021. Filed with
Secretary of State September 16, 2021.]
legislative counsel’s digest
AB 361, Robert Rivas. Open meetings: state and local agencies:
teleconferences.
(1) Existing law, the Ralph M. Brown Act requires, with specified exceptions, that all meetings of a legislative body of a local agency, as those terms are defined, be open and public and that all persons be permitted to attend and participate. The act contains specified provisions regarding the timelines for posting an agenda and providing for the ability of the public to directly address the legislative body on any item of interest to the public.

The act generally requires all regular and special meetings of the legislative body be held within the boundaries of the territory over which the local agency exercises jurisdiction, subject to certain exceptions. The act allows for meetings to occur via teleconferencing subject to certain requirements, particularly that the legislative body notice each teleconference location of each member that will be participating in the public meeting, that each teleconference location be accessible to the public, that members of the public be allowed to address the legislative body at each teleconference location, that the legislative body post an agenda at each teleconference location, and that at least a quorum of the legislative body participate from locations within the boundaries of the local agency’s jurisdiction. The act provides an exemption to the jurisdictional requirement for health authorities, as defined. The act authorizes the district attorney or any interested person, subject to certain provisions, to commence an action by mandamus or injunction for the purpose of obtaining a judicial determination that specified actions taken by a legislative body are null and void.

Existing law, the California Emergency Services Act, authorizes the Governor, or the Director of Emergency Services when the governor is inaccessible, to proclaim a state of emergency under specified circumstances.

Executive Order No. N-29-20 suspends the Ralph M. Brown Act’s requirements for teleconferencing during the COVID-19 pandemic provided that notice and accessibility requirements are met, the public members are allowed to observe and address the legislative body at the meeting, and that a legislative body of a local agency has a procedure for receiving and swiftly

92 #8..
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resolving requests for reasonable accommodation for individuals with disabilities, as specified.

This bill, until January 1, 2024, would authorize a local agency to use teleconferencing without complying with the teleconferencing requirements imposed by the Ralph M. Brown Act when a legislative body of a local agency holds a meeting during a declared state of emergency, as that term is defined, when state or local health officials have imposed or recommended measures to promote social distancing, during a proclaimed state of emergency held for the purpose of determining, by majority vote, whether meeting in person would present imminent risks to the health or safety of attendees, and during a proclaimed state of emergency when the legislative body has determined that meeting in person would present imminent risks to the health or safety of attendees, as provided.

This bill would require legislative bodies that hold teleconferenced meetings under these abbreviated teleconferencing procedures to give notice of the meeting and post agendas, as described, to allow members of the public to access the meeting and address the legislative body, to give notice of the means by which members of the public may access the meeting and offer public comment, including an opportunity for all persons to attend via a call-in option or an internet-based service option, and to conduct the meeting in a manner that protects the statutory and constitutional rights of the parties and the public appearing before the legislative body. The bill would require the legislative body to take no further action on agenda items when there is a disruption which prevents the public agency from broadcasting the meeting, or in the event of a disruption within the local agency’s control which prevents members of the public from offering public comments, until public access is restored. The bill would specify that actions taken during the disruption are subject to challenge proceedings, as specified.

This bill would prohibit the legislative body from requiring public comments to be submitted in advance of the meeting and would specify that the legislative body must provide an opportunity for the public to address the legislative body and offer comment in real time. The bill would prohibit the legislative body from closing the public comment period and the opportunity to register to provide public comment, until the public comment period has elapsed or until a reasonable amount of time has elapsed, as specified. When there is a continuing state of emergency, or when state or local officials have imposed or recommended measures to promote social distancing, the bill would require a legislative body to make specified findings not later than 30 days after the first teleconferenced meeting pursuant to these provisions, and to make those findings every 30 days thereafter, in order to continue to meet under these abbreviated teleconferencing procedures.

Existing law prohibits a legislative body from requiring, as a condition to attend a meeting, a person to register the person’s name, or to provide other information, or to fulfill any condition precedent to the person’s attendance.
92 Ch. 165 — 2 —
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This bill would exclude from that prohibition, a registration requirement imposed by a third-party internet website or other online platform not under the control of the legislative body.
(2) Existing law, the Bagley-Keene Open Meeting Act, requires, with specified exceptions, that all meetings of a state body be open and public and all persons be permitted to attend any meeting of a state body. The act requires at least one member of the state body to be physically present at the location specified in the notice of the meeting.

The Governor’s Executive Order No. N-29-20 suspends the requirements of the Bagley-Keene Open Meeting Act for teleconferencing during the COVID-19 pandemic, provided that notice and accessibility requirements are met, the public members are allowed to observe and address the state body at the meeting, and that a state body has a procedure for receiving and swiftly resolving requests for reasonable accommodation for individuals with disabilities, as specified.

This bill, until January 31, 2022, would authorize, subject to specified notice and accessibility requirements, a state body to hold public meetings through teleconferencing and to make public meetings accessible telephonically, or otherwise electronically, to all members of the public seeking to observe and to address the state body. With respect to a state body holding a public meeting pursuant to these provisions, the bill would suspend certain requirements of existing law, including the requirements that each teleconference location be accessible to the public and that members of the public be able to address the state body at each teleconference location. Under the bill, a state body that holds a meeting through teleconferencing and allows members of the public to observe and address the meeting telephonically or otherwise electronically would satisfy any requirement that the state body allow members of the public to attend the meeting and offer public comment. The bill would require that each state body that holds a meeting through teleconferencing provide notice of the meeting, and post the agenda, as provided. The bill would urge state bodies utilizing these teleconferencing procedures in the bill to use sound discretion and to make reasonable efforts to adhere as closely as reasonably possible to existing law, as provided.
(3) Existing law establishes the various campuses of the California State University under the administration of the Trustees of the California State University, and authorizes the establishment of student body organizations in connection with the operations of California State University campuses.

The Gloria Romero Open Meetings Act of 2000 generally requires a legislative body, as defined, of a student body organization to conduct its business in a meeting that is open and public. The act authorizes the legislative body to use teleconferencing, as defined, for the benefit of the public and the legislative body in connection with any meeting or proceeding authorized by law.

This bill, until January 31, 2022, would authorize, subject to specified notice and accessibility requirements, a legislative body, as defined for purposes of the act, to hold public meetings through teleconferencing and 92 — 3 — Ch. 165
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to make public meetings accessible telephonically, or otherwise electronically, to all members of the public seeking to observe and to address the legislative body. With respect to a legislative body holding a public meeting pursuant to these provisions, the bill would suspend certain requirements of existing law, including the requirements that each teleconference location be accessible to the public and that members of the public be able to address the legislative body at each teleconference location.

Under the bill, a legislative body that holds a meeting through teleconferencing and allows members of the public to observe and address the meeting telephonically or otherwise electronically would satisfy any requirement that the legislative body allow members of the public to attend the meeting and offer public comment. The bill would require that each legislative body that holds a meeting through teleconferencing provide notice of the meeting, and post the agenda, as provided. The bill would urge legislative bodies utilizing these teleconferencing procedures in the bill to use sound discretion and to make reasonable efforts to adhere as closely as reasonably possible to existing law, as provided.
(4)  This bill would declare the Legislature’s intent, consistent with the Governor’s Executive Order No. N-29-20, to improve and enhance public access to state and local agency meetings during the COVID-19 pandemic and future emergencies by allowing broader access through teleconferencing options.
(5)  This bill would incorporate additional changes to Section 54953 of the Government Code proposed by AB 339 to be operative only if this bill and AB 339 are enacted and this bill is enacted last.
(6)  The California Constitution requires local agencies, for the purpose of ensuring public access to the meetings of public bodies and the writings of public officials and agencies, to comply with a statutory enactment that amends or enacts laws relating to public records or open meetings and contains findings demonstrating that the enactment furthers the constitutional requirements relating to this purpose.

This bill would make legislative findings to that effect. (7) Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest.

This bill would make legislative findings to that effect. (8) This bill would declare that it is to take effect immediately as an urgency statute.

The people of the State of California do enact as follows:

SECTION 1. Section 89305.6 is added to the Education Code, to read:
89305.6. (a)  Notwithstanding any other provision of this article, and subject to the notice and accessibility requirements in subdivisions (d) and (e), a legislative body may hold public meetings through teleconferencing 92 Ch. 165 — 4 —
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and make public meetings accessible telephonically, or otherwise electronically, to all members of the public seeking to observe and to address the legislative body.
(b)  (1)  For a legislative body holding a public meeting through teleconferencing pursuant to this section, all requirements in this article requiring the physical presence of members, the clerk or other personnel of the legislative body, or the public, as a condition of participation in or quorum for a public meeting, are hereby suspended.
(2)  For a legislative body holding a public meeting through teleconferencing pursuant to this section, all of the following requirements in this article are suspended:
(A)  Each teleconference location from which a member will be participating in a public meeting or proceeding be identified in the notice and agenda of the public meeting or proceeding.
(B)  Each teleconference location be accessible to the public. (C)  Members of the public may address the legislative body at each teleconference conference location.
(D)  Post agendas at all teleconference locations.
(E)  At least one member of the legislative body be physically present at the location specified in the notice of the meeting.
(c)  A legislative body that holds a meeting through teleconferencing and allows members of the public to observe and address the meeting telephonically or otherwise electronically, consistent with the notice and accessibility requirements in subdivisions (d) and (e), shall have satisfied any requirement that the legislative body allow members of the public to attend the meeting and offer public comment. A legislative body need not make available any physical location from which members of the public may observe the meeting and offer public comment.
(d)  If a legislative body holds a meeting through teleconferencing pursuant to this section and allows members of the public to observe and address the meeting telephonically or otherwise electronically, the legislative body shall also do both of the following:
(1)  Implement a procedure for receiving and swiftly resolving requests for reasonable modification or accommodation from individuals with disabilities, consistent with the federal Americans with Disabilities Act of 1990 (42 U.S.C. Sec. 12101 et seq.), and resolving any doubt whatsoever in favor of accessibility.
(2)  Advertise that procedure each time notice is given of the means by which members of the public may observe the meeting and offer public comment, pursuant to paragraph (2) of subdivision (e).
(e)  Except to the extent this section provides otherwise, each legislative body that holds a meeting through teleconferencing pursuant to this section shall do both of the following:
(1)  Give advance notice of the time of, and post the agenda for, each public meeting according to the timeframes otherwise prescribed by this article, and using the means otherwise prescribed by this article, as applicable.
92 — 5 — Ch. 165
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(2)  In each instance in which notice of the time of the meeting is otherwise given or the agenda for the meeting is otherwise posted, also give notice of the means by which members of the public may observe the meeting and offer public comment. As to any instance in which there is a change in the means of public observation and comment, or any instance prior to the effective date of this section in which the time of the meeting has been noticed or the agenda for the meeting has been posted without also including notice of the means of public observation and comment, a legislative body may satisfy this requirement by advertising the means of public observation and comment using the most rapid means of communication available at the time. Advertising the means of public observation and comment using the most rapid means of communication available at the time shall include, but need not be limited to, posting such means on the legislative body’s internet website.
(f)  All legislative bodies utilizing the teleconferencing procedures in this section are urged to use sound discretion and to make reasonable efforts to adhere as closely as reasonably possible to the otherwise applicable provisions of this article, in order to maximize transparency and provide the public access to legislative body meetings.
(g)  This section shall remain in effect only until January 31, 2022, and as of that date is repealed.

SEC. 2. Section 11133 is added to the Government Code, to read:
11133. (a)  Notwithstanding any other provision of this article, and subject to the notice and accessibility requirements in subdivisions (d) and (e), a state body may hold public meetings through teleconferencing and make public meetings accessible telephonically, or otherwise electronically, to all members of the public seeking to observe and to address the state body.
(b)  (1)  For a state body holding a public meeting through teleconferencing pursuant to this section, all requirements in this article requiring the physical presence of members, the clerk or other personnel of the state body, or the public, as a condition of participation in or quorum for a public meeting, are hereby suspended.
(2)  For a state body holding a public meeting through teleconferencing pursuant to this section, all of the following requirements in this article are suspended:
(A)  Each teleconference location from which a member will be participating in a public meeting or proceeding be identified in the notice and agenda of the public meeting or proceeding.
(B)  Each teleconference location be accessible to the public. (C)  Members of the public may address the state body at each teleconference conference location.
(D)  Post agendas at all teleconference locations.
(E)  At least one member of the state body be physically present at the location specified in the notice of the meeting.
(c)  A state body that holds a meeting through teleconferencing and allows members of the public to observe and address the meeting telephonically 92 Ch. 165 — 6 —
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or otherwise electronically, consistent with the notice and accessibility requirements in subdivisions (d) and (e), shall have satisfied any requirement that the state body allow members of the public to attend the meeting and offer public comment. A state body need not make available any physical location from which members of the public may observe the meeting and offer public comment.
(d)  If a state body holds a meeting through teleconferencing pursuant to this section and allows members of the public to observe and address the meeting telephonically or otherwise electronically, the state body shall also do both of the following:
(1)  Implement a procedure for receiving and swiftly resolving requests for reasonable modification or accommodation from individuals with disabilities, consistent with the federal Americans with Disabilities Act of 1990 (42 U.S.C. Sec. 12101 et seq.), and resolving any doubt whatsoever in favor of accessibility.
(2)  Advertise that procedure each time notice is given of the means by which members of the public may observe the meeting and offer public comment, pursuant to paragraph (2) of subdivision (e).
(e)  Except to the extent this section provides otherwise, each state body that holds a meeting through teleconferencing pursuant to this section shall do both of the following:
(1)  Give advance notice of the time of, and post the agenda for, each public meeting according to the timeframes otherwise prescribed by this article, and using the means otherwise prescribed by this article, as applicable.
(2)  In each instance in which notice of the time of the meeting is otherwise given or the agenda for the meeting is otherwise posted, also give notice of the means by which members of the public may observe the meeting and offer public comment. As to any instance in which there is a change in the means of public observation and comment, or any instance prior to the effective date of this section in which the time of the meeting has been noticed or the agenda for the meeting has been posted without also including notice of the means of public observation and comment, a state body may satisfy this requirement by advertising the means of public observation and comment using the most rapid means of communication available at the time. Advertising the means of public observation and comment using the most rapid means of communication available at the time shall include, but need not be limited to, posting such means on the state body’s internet website.
(f)  All state bodies utilizing the teleconferencing procedures in this section are urged to use sound discretion and to make reasonable efforts to adhere as closely as reasonably possible to the otherwise applicable provisions of this article, in order to maximize transparency and provide the public access to state body meetings.
(g)  This section shall remain in effect only until January 31, 2022, and as of that date is repealed.

SEC. 3. Section 54953 of the Government Code is amended to read:
92 — 7 — Ch. 165
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54953. (a)  All meetings of the legislative body of a local agency shall be open and public, and all persons shall be permitted to attend any meeting of the legislative body of a local agency, except as otherwise provided in this chapter.
(b)  (1)  Notwithstanding any other provision of law, the legislative body of a local agency may use teleconferencing for the benefit of the public and the legislative body of a local agency in connection with any meeting or proceeding authorized by law. The teleconferenced meeting or proceeding shall comply with all otherwise applicable requirements of this chapter and all otherwise applicable provisions of law relating to a specific type of meeting or proceeding.
(2)  Teleconferencing, as authorized by this section, may be used for all purposes in connection with any meeting within the subject matter jurisdiction of the legislative body. All votes taken during a teleconferenced meeting shall be by rollcall.
(3)  If the legislative body of a local agency elects to use teleconferencing, it shall post agendas at all teleconference locations and conduct teleconference meetings in a manner that protects the statutory and constitutional rights of the parties or the public appearing before the legislative body of a local agency. Each teleconference location shall be identified in the notice and agenda of the meeting or proceeding, and each teleconference location shall be accessible to the public. During the teleconference, at least a quorum of the members of the legislative body shall participate from locations within the boundaries of the territory over which the local agency exercises jurisdiction, except as provided in subdivisions (d) and (e). The agenda shall provide an opportunity for members of the public to address the legislative body directly pursuant to Section 54954.3 at each teleconference location.
(4)  For the purposes of this section, “teleconference” means a meeting of a legislative body, the members of which are in different locations, connected by electronic means, through either audio or video, or both.

Nothing in this section shall prohibit a local agency from providing the public with additional teleconference locations.
(c)  (1)  No legislative body shall take action by secret ballot, whether preliminary or final.
(2)  The legislative body of a local agency shall publicly report any action taken and the vote or abstention on that action of each member present for the action.
(3)  Prior to taking final action, the legislative body shall orally report a summary of a recommendation for a final action on the salaries, salary schedules, or compensation paid in the form of fringe benefits of a local agency executive, as defined in subdivision (d) of Section 3511.1, during the open meeting in which the final action is to be taken. This paragraph shall not affect the public’s right under the California Public Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1) to inspect or copy records created or received in the process of developing the recommendation.
92 Ch. 165 — 8 —
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(d)  (1)  Notwithstanding the provisions relating to a quorum in paragraph (3) of subdivision (b), if a health authority conducts a teleconference meeting, members who are outside the jurisdiction of the authority may be counted toward the establishment of a quorum when participating in the teleconference if at least 50 percent of the number of members that would establish a quorum are present within the boundaries of the territory over which the authority exercises jurisdiction, and the health authority provides a teleconference number, and associated access codes, if any, that allows any person to call in to participate in the meeting and the number and access codes are identified in the notice and agenda of the meeting. (2)  Nothing in this subdivision shall be construed as discouraging health authority members from regularly meeting at a common physical site within the jurisdiction of the authority or from using teleconference locations within or near the jurisdiction of the authority. A teleconference meeting for which a quorum is established pursuant to this subdivision shall be subject to all other requirements of this section.
(3)  For purposes of this subdivision, a health authority means any entity created pursuant to Sections 14018.7, 14087.31, 14087.35, 14087.36, 14087.38, and 14087.9605 of the Welfare and Institutions Code, any joint powers authority created pursuant to Article 1 (commencing with Section 6500) of Chapter 5 of Division 7 for the purpose of contracting pursuant to Section 14087.3 of the Welfare and Institutions Code, and any advisory committee to a county-sponsored health plan licensed pursuant to Chapter

2.2 (commencing with Section 1340) of Division 2 of the Health and Safety Code if the advisory committee has 12 or more members.
(e)  (1)  A local agency may use teleconferencing without complying with the requirements of paragraph (3) of subdivision (b) if the legislative body complies with the requirements of paragraph (2) of this subdivision in any of the following circumstances:
(A)  The legislative body holds a meeting during a proclaimed state of emergency, and state or local officials have imposed or recommended measures to promote social distancing.
(B)  The legislative body holds a meeting during a proclaimed state of emergency for the purpose of determining, by majority vote, whether as a result of the emergency, meeting in person would present imminent risks to the health or safety of attendees.
(C)  The legislative body holds a meeting during a proclaimed state of emergency and has determined, by majority vote, pursuant to subparagraph (B), that, as a result of the emergency, meeting in person would present imminent risks to the health or safety of attendees.
(2)  A legislative body that holds a meeting pursuant to this subdivision shall do all of the following:
(A)  The legislative body shall give notice of the meeting and post agendas as otherwise required by this chapter.
(B)  The legislative body shall allow members of the public to access the meeting and the agenda shall provide an opportunity for members of the public to address the legislative body directly pursuant to Section 54954.3. 92 — 9 — Ch. 165
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In each instance in which notice of the time of the teleconferenced meeting is otherwise given or the agenda for the meeting is otherwise posted, the legislative body shall also give notice of the means by which members of the public may access the meeting and offer public comment. The agenda shall identify and include an opportunity for all persons to attend via a call-in option or an internet-based service option. This subparagraph shall not be construed to require the legislative body to provide a physical location from which the public may attend or comment.
(C)  The legislative body shall conduct teleconference meetings in a manner that protects the statutory and constitutional rights of the parties and the public appearing before the legislative body of a local agency. (D)  In the event of a disruption which prevents the public agency from broadcasting the meeting to members of the public using the call-in option or internet-based service option, or in the event of a disruption within the local agency’s control which prevents members of the public from offering public comments using the call-in option or internet-based service option, the body shall take no further action on items appearing on the meeting agenda until public access to the meeting via the call-in option or internet-based service option is restored. Actions taken on agenda items during a disruption which prevents the public agency from broadcasting the meeting may be challenged pursuant to Section 54960.1.
(E)  The legislative body shall not require public comments to be submitted in advance of the meeting and must provide an opportunity for the public to address the legislative body and offer comment in real time.

This subparagraph shall not be construed to require the legislative body to provide a physical location from which the public may attend or comment. (F)  Notwithstanding Section 54953.3, an individual desiring to provide public comment through the use of an internet website, or other online platform, not under the control of the local legislative body, that requires registration to log in to a teleconference may be required to register as required by the third-party internet website or online platform to participate. (G)  (i)  A legislative body that provides a timed public comment period for each agenda item shall not close the public comment period for the agenda item, or the opportunity to register, pursuant to subparagraph (F), to provide public comment until that timed public comment period has elapsed.
(ii)  A legislative body that does not provide a timed public comment period, but takes public comment separately on each agenda item, shall allow a reasonable amount of time per agenda item to allow public members the opportunity to provide public comment, including time for members of the public to register pursuant to subparagraph (F), or otherwise be recognized for the purpose of providing public comment. (iii)  A legislative body that provides a timed general public comment period that does not correspond to a specific agenda item shall not close the public comment period or the opportunity to register, pursuant to subparagraph (F), until the timed general public comment period has elapsed. 92 Ch. 165 — 10 —
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(3)  If a state of emergency remains active, or state or local officials have imposed or recommended measures to promote social distancing, in order to continue to teleconference without compliance with paragraph (3) of subdivision (b), the legislative body shall, not later than 30 days after teleconferencing for the first time pursuant to subparagraph (A), (B), or (C) of paragraph (1), and every 30 days thereafter, make the following findings by majority vote:
(A)  The legislative body has reconsidered the circumstances of the state of emergency.
(B)  Any of the following circumstances exist:
(i)  The state of emergency continues to directly impact the ability of the members to meet safely in person.
(ii)  State or local officials continue to impose or recommend measures to promote social distancing.
(4)  For the purposes of this subdivision, “state of emergency” means a state of emergency proclaimed pursuant to Section 8625 of the California Emergency Services Act (Article 1 (commencing with Section 8550) of Chapter 7 of Division 1 of Title 2).
(f)  This section shall remain in effect only until January 1, 2024, and as of that date is repealed.

SEC. 3.1. Section 54953 of the Government Code is amended to read:
54953. (a)  All meetings of the legislative body of a local agency shall be open and public, and all persons shall be permitted to attend any meeting of the legislative body of a local agency in person, except as otherwise provided in this chapter. Local agencies shall conduct meetings subject to this chapter consistent with applicable state and federal civil rights laws, including, but not limited to, any applicable language access and other nondiscrimination obligations.
(b)  (1)  Notwithstanding any other provision of law, the legislative body of a local agency may use teleconferencing for the benefit of the public and the legislative body of a local agency in connection with any meeting or proceeding authorized by law. The teleconferenced meeting or proceeding shall comply with all otherwise applicable requirements of this chapter and all otherwise applicable provisions of law relating to a specific type of meeting or proceeding.
(2)  Teleconferencing, as authorized by this section, may be used for all purposes in connection with any meeting within the subject matter jurisdiction of the legislative body. All votes taken during a teleconferenced meeting shall be by rollcall.
(3)  If the legislative body of a local agency elects to use teleconferencing, it shall post agendas at all teleconference locations and conduct teleconference meetings in a manner that protects the statutory and constitutional rights of the parties or the public appearing before the legislative body of a local agency. Each teleconference location shall be identified in the notice and agenda of the meeting or proceeding, and each teleconference location shall be accessible to the public. During the teleconference, at least a quorum of the members of the legislative body 92 — 11 — Ch. 165
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shall participate from locations within the boundaries of the territory over which the local agency exercises jurisdiction, except as provided in subdivisions (d) and (e). The agenda shall provide an opportunity for members of the public to address the legislative body directly pursuant to Section 54954.3 at each teleconference location.
(4)  For the purposes of this section, “teleconference” means a meeting of a legislative body, the members of which are in different locations, connected by electronic means, through either audio or video, or both.

Nothing in this section shall prohibit a local agency from providing the public with additional teleconference locations.
(c)  (1)  No legislative body shall take action by secret ballot, whether preliminary or final.
(2)  The legislative body of a local agency shall publicly report any action taken and the vote or abstention on that action of each member present for the action.
(3)  Prior to taking final action, the legislative body shall orally report a summary of a recommendation for a final action on the salaries, salary schedules, or compensation paid in the form of fringe benefits of a local agency executive, as defined in subdivision (d) of Section 3511.1, during the open meeting in which the final action is to be taken. This paragraph shall not affect the public’s right under the California Public Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1) to inspect or copy records created or received in the process of developing the recommendation.
(d)  (1)  Notwithstanding the provisions relating to a quorum in paragraph (3) of subdivision (b), if a health authority conducts a teleconference meeting, members who are outside the jurisdiction of the authority may be counted toward the establishment of a quorum when participating in the teleconference if at least 50 percent of the number of members that would establish a quorum are present within the boundaries of the territory over which the authority exercises jurisdiction, and the health authority provides a teleconference number, and associated access codes, if any, that allows any person to call in to participate in the meeting and the number and access codes are identified in the notice and agenda of the meeting. (2)  Nothing in this subdivision shall be construed as discouraging health authority members from regularly meeting at a common physical site within the jurisdiction of the authority or from using teleconference locations within or near the jurisdiction of the authority. A teleconference meeting for which a quorum is established pursuant to this subdivision shall be subject to all other requirements of this section.
(3)  For purposes of this subdivision, a health authority means any entity created pursuant to Sections 14018.7, 14087.31, 14087.35, 14087.36, 14087.38, and 14087.9605 of the Welfare and Institutions Code, any joint powers authority created pursuant to Article 1 (commencing with Section 6500) of Chapter 5 of Division 7 for the purpose of contracting pursuant to Section 14087.3 of the Welfare and Institutions Code, and any advisory committee to a county-sponsored health plan licensed pursuant to Chapter 92 Ch. 165 — 12 —
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In each instance in which notice of the time of the teleconferenced meeting is otherwise given or the agenda for the meeting is otherwise posted, the legislative body shall also give notice of the means by which members of the public may access the meeting and offer public comment. The agenda shall identify and include an opportunity for all persons to attend via a call-in option or an internet-based service option. This subparagraph shall not be construed to require the legislative body to provide a physical location from which the public may attend or comment.
(C) The legislative body shall conduct teleconference meetings in a manner that protects the statutory and constitutional rights of the parties and the public appearing before the legislative body of a local agency. (D) In the event of a disruption which prevents the public agency from broadcasting the meeting to members of the public using the call-in option or internet-based service option, or in the event of a disruption within the local agency’s control which prevents members of the public from offering public comments using the call-in option or internet-based service option, the body shall take no further action on items appearing on the meeting agenda until public access to the meeting via the call-in option or internet-based service option is restored. Actions taken on agenda items during a disruption which prevents the public agency from broadcasting the meeting may be challenged pursuant to Section 54960.1.
(E) The legislative body shall not require public comments to be submitted in advance of the meeting and must provide an opportunity for 92 — 13 — Ch. 165
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the public to address the legislative body and offer comment in real time.

This subparagraph shall not be construed to require the legislative body to provide a physical location from which the public may attend or comment. (F)  Notwithstanding Section 54953.3, an individual desiring to provide public comment through the use of an internet website, or other online platform, not under the control of the local legislative body, that requires registration to log in to a teleconference may be required to register as required by the third-party internet website or online platform to participate. (G)  (i)  A legislative body that provides a timed public comment period for each agenda item shall not close the public comment period for the agenda item, or the opportunity to register, pursuant to subparagraph (F), to provide public comment until that timed public comment period has elapsed.
(ii)  A legislative body that does not provide a timed public comment period, but takes public comment separately on each agenda item, shall allow a reasonable amount of time per agenda item to allow public members the opportunity to provide public comment, including time for members of the public to register pursuant to subparagraph (F), or otherwise be recognized for the purpose of providing public comment. (iii)  A legislative body that provides a timed general public comment period that does not correspond to a specific agenda item shall not close the public comment period or the opportunity to register, pursuant to subparagraph (F), until the timed general public comment period has elapsed. (3)  If a state of emergency remains active, or state or local officials have imposed or recommended measures to promote social distancing, in order to continue to teleconference without compliance with paragraph (3) of subdivision (b), the legislative body shall, not later than 30 days after teleconferencing for the first time pursuant to subparagraph (A), (B), or (C) of paragraph (1), and every 30 days thereafter, make the following findings by majority vote:
(A)  The legislative body has reconsidered the circumstances of the state of emergency.
(B)  Any of the following circumstances exist:
(i)  The state of emergency continues to directly impact the ability of the members to meet safely in person.
(ii)  State or local officials continue to impose or recommend measures to promote social distancing.
(4)  For the purposes of this subdivision, “state of emergency” means a state of emergency proclaimed pursuant to Section 8625 of the California Emergency Services Act (Article 1 (commencing with Section 8550) of Chapter 7 of Division 1 of Title 2).
(f)  This section shall remain in effect only until January 1, 2024, and as of that date is repealed.

SEC. 4. Section 54953 is added to the Government Code, to read:
54953. (a)  All meetings of the legislative body of a local agency shall be open and public, and all persons shall be permitted to attend any meeting 92 Ch. 165 — 14 —
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of the legislative body of a local agency, except as otherwise provided in this chapter.
(b)  (1)  Notwithstanding any other provision of law, the legislative body of a local agency may use teleconferencing for the benefit of the public and the legislative body of a local agency in connection with any meeting or proceeding authorized by law. The teleconferenced meeting or proceeding shall comply with all requirements of this chapter and all otherwise applicable provisions of law relating to a specific type of meeting or proceeding.
(2)  Teleconferencing, as authorized by this section, may be used for all purposes in connection with any meeting within the subject matter jurisdiction of the legislative body. All votes taken during a teleconferenced meeting shall be by rollcall.
(3)  If the legislative body of a local agency elects to use teleconferencing, it shall post agendas at all teleconference locations and conduct teleconference meetings in a manner that protects the statutory and constitutional rights of the parties or the public appearing before the legislative body of a local agency. Each teleconference location shall be identified in the notice and agenda of the meeting or proceeding, and each teleconference location shall be accessible to the public. During the teleconference, at least a quorum of the members of the legislative body shall participate from locations within the boundaries of the territory over which the local agency exercises jurisdiction, except as provided in subdivision (d). The agenda shall provide an opportunity for members of the public to address the legislative body directly pursuant to Section 54954.3 at each teleconference location.
(4)  For the purposes of this section, “teleconference” means a meeting of a legislative body, the members of which are in different locations, connected by electronic means, through either audio or video, or both.

Nothing in this section shall prohibit a local agency from providing the public with additional teleconference locations
(c)  (1)  No legislative body shall take action by secret ballot, whether preliminary or final.
(2)  The legislative body of a local agency shall publicly report any action taken and the vote or abstention on that action of each member present for the action.
(3)  Prior to taking final action, the legislative body shall orally report a summary of a recommendation for a final action on the salaries, salary schedules, or compensation paid in the form of fringe benefits of a local agency executive, as defined in subdivision (d) of Section 3511.1, during the open meeting in which the final action is to be taken. This paragraph shall not affect the public’s right under the California Public Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1) to inspect or copy records created or received in the process of developing the recommendation.
(d)  (1)  Notwithstanding the provisions relating to a quorum in paragraph (3) of subdivision (b), if a health authority conducts a teleconference meeting, 92 — 15 — Ch. 165
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members who are outside the jurisdiction of the authority may be counted toward the establishment of a quorum when participating in the teleconference if at least 50 percent of the number of members that would establish a quorum are present within the boundaries of the territory over which the authority exercises jurisdiction, and the health authority provides a teleconference number, and associated access codes, if any, that allows any person to call in to participate in the meeting and the number and access codes are identified in the notice and agenda of the meeting. (2)  Nothing in this subdivision shall be construed as discouraging health authority members from regularly meeting at a common physical site within the jurisdiction of the authority or from using teleconference locations within or near the jurisdiction of the authority. A teleconference meeting for which a quorum is established pursuant to this subdivision shall be subject to all other requirements of this section.
(3)  For purposes of this subdivision, a health authority means any entity created pursuant to Sections 14018.7, 14087.31, 14087.35, 14087.36, 14087.38, and 14087.9605 of the Welfare and Institutions Code, any joint powers authority created pursuant to Article 1 (commencing with Section 6500) of Chapter 5 of Division 7 for the purpose of contracting pursuant to Section 14087.3 of the Welfare and Institutions Code, and any advisory committee to a county-sponsored health plan licensed pursuant to Chapter

2.2 (commencing with Section 1340) of Division 2 of the Health and Safety Code if the advisory committee has 12 or more members.
(e) This section shall become operative January 1, 2024.

SEC. 4.1. Section 54953 is added to the Government Code, to read:
54953. (a)  All meetings of the legislative body of a local agency shall be open and public, and all persons shall be permitted to attend any meeting of the legislative body of a local agency, in person except as otherwise provided in this chapter. Local agencies shall conduct meetings subject to this chapter consistent with applicable state and federal civil rights laws, including, but not limited to, any applicable language access and other nondiscrimination obligations.
(b)  (1)  Notwithstanding any other provision of law, the legislative body of a local agency may use teleconferencing for the benefit of the public and the legislative body of a local agency in connection with any meeting or proceeding authorized by law. The teleconferenced meeting or proceeding shall comply with all requirements of this chapter and all otherwise applicable provisions of law relating to a specific type of meeting or proceeding.
(2)  Teleconferencing, as authorized by this section, may be used for all purposes in connection with any meeting within the subject matter jurisdiction of the legislative body. All votes taken during a teleconferenced meeting shall be by rollcall.
(3)  If the legislative body of a local agency elects to use teleconferencing, it shall post agendas at all teleconference locations and conduct teleconference meetings in a manner that protects the statutory and constitutional rights of the parties or the public appearing before the 92 Ch. 165 — 16 —
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legislative body of a local agency. Each teleconference location shall be identified in the notice and agenda of the meeting or proceeding, and each teleconference location shall be accessible to the public. During the teleconference, at least a quorum of the members of the legislative body shall participate from locations within the boundaries of the territory over which the local agency exercises jurisdiction, except as provided in subdivision (d). The agenda shall provide an opportunity for members of the public to address the legislative body directly pursuant to Section 54954.3 at each teleconference location.
(4)  For the purposes of this section, “teleconference” means a meeting of a legislative body, the members of which are in different locations, connected by electronic means, through either audio or video, or both.

Nothing in this section shall prohibit a local agency from providing the public with additional teleconference locations.
(c)  (1)  No legislative body shall take action by secret ballot, whether preliminary or final.
(2)  The legislative body of a local agency shall publicly report any action taken and the vote or abstention on that action of each member present for the action.
(3)  Prior to taking final action, the legislative body shall orally report a summary of a recommendation for a final action on the salaries, salary schedules, or compensation paid in the form of fringe benefits of a local agency executive, as defined in subdivision (d) of Section 3511.1, during the open meeting in which the final action is to be taken. This paragraph shall not affect the public’s right under the California Public Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1) to inspect or copy records created or received in the process of developing the recommendation.
(d)  (1)  Notwithstanding the provisions relating to a quorum in paragraph (3) of subdivision (b), if a health authority conducts a teleconference meeting, members who are outside the jurisdiction of the authority may be counted toward the establishment of a quorum when participating in the teleconference if at least 50 percent of the number of members that would establish a quorum are present within the boundaries of the territory over which the authority exercises jurisdiction, and the health authority provides a teleconference number, and associated access codes, if any, that allows any person to call in to participate in the meeting and the number and access codes are identified in the notice and agenda of the meeting. (2)  Nothing in this subdivision shall be construed as discouraging health authority members from regularly meeting at a common physical site within the jurisdiction of the authority or from using teleconference locations within or near the jurisdiction of the authority. A teleconference meeting for which a quorum is established pursuant to this subdivision shall be subject to all other requirements of this section.
(3)  For purposes of this subdivision, a health authority means any entity created pursuant to Sections 14018.7, 14087.31, 14087.35, 14087.36, 14087.38, and 14087.9605 of the Welfare and Institutions Code, any joint 92 — 17 — Ch. 165
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powers authority created pursuant to Article 1 (commencing with Section 6500) of Chapter 5 of Division 7 for the purpose of contracting pursuant to Section 14087.3 of the Welfare and Institutions Code, and any advisory committee to a county-sponsored health plan licensed pursuant to Chapter

2.2 (commencing with Section 1340) of Division 2 of the Health and Safety Code if the advisory committee has 12 or more members.
(e) This section shall become operative January 1, 2024.

SEC. 5. Sections 3.1 and 4.1 of this bill incorporate amendments to Section 54953 of the Government Code proposed by both this bill and Assembly Bill 339. Those sections of this bill shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2022, but this bill becomes operative first, (2) each bill amends Section 54953 of the Government Code, and (3) this bill is enacted after Assembly Bill 339, in which case Section 54953 of the Government Code, as amended by Sections 3 and 4 of this bill, shall remain operative only until the operative date of Assembly Bill 339, at which time Sections 3.1 and 4.1 of this bill shall become operative.

SEC. 6. It is the intent of the Legislature in enacting this act to improve and enhance public access to state and local agency meetings during the COVID-19 pandemic and future applicable emergencies, by allowing broader access through teleconferencing options consistent with the Governor’s Executive Order No. N-29-20 dated March 17, 2020, permitting expanded use of teleconferencing during the COVID-19 pandemic.

SEC. 7. The Legislature finds and declares that Sections 3 and 4 of this act, which amend, repeal, and add Section 54953 of the Government Code, further, within the meaning of paragraph (7) of subdivision (b) of Section 3 of Article I of the California Constitution, the purposes of that constitutional section as it relates to the right of public access to the meetings of local public bodies or the writings of local public officials and local agencies. Pursuant to paragraph (7) of subdivision (b) of Section 3 of Article I of the California Constitution, the Legislature makes the following findings:

This act is necessary to ensure minimum standards for public participation and notice requirements allowing for greater public participation in teleconference meetings during applicable emergencies.

SEC. 8. (a)  The Legislature finds and declares that during the COVID-19 public health emergency, certain requirements of the Bagley-Keene Open Meeting Act (Article 9 (commencing with Section 11120) of Chapter 1 of Part 1 of Division 3 of Title 2 of the Government Code) were suspended by Executive Order N-29-20. Audio and video teleconference were widely used to conduct public meetings in lieu of physical location meetings, and public meetings conducted by teleconference during the COVID-19 public health emergency have been productive, have increased public participation by all members of the public regardless of their location in the state and ability to travel to physical meeting locations, have protected the health and safety of civil servants and the public, and have reduced travel costs incurred by members of state bodies and reduced work hours spent traveling to and from meetings.
92 Ch. 165 — 18 —
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(b)  The Legislature finds and declares that Section 1 of this act, which adds and repeals Section 89305.6 of the Education Code, Section 2 of this act, which adds and repeals Section 11133 of the Government Code, and Sections 3 and 4 of this act, which amend, repeal, and add Section 54953 of the Government Code, all increase and potentially limit the public’s right of access to the meetings of public bodies or the writings of public officials and agencies within the meaning of Section 3 of Article I of the California Constitution. Pursuant to that constitutional provision, the Legislature makes the following findings to demonstrate the interest protected by this limitation and the need for protecting that interest:
(1)  By removing the requirement that public meetings be conducted at a primary physical location with a quorum of members present, this act protects the health and safety of civil servants and the public and does not preference the experience of members of the public who might be able to attend a meeting in a physical location over members of the public who cannot travel or attend that meeting in a physical location. (2)  By removing the requirement for agendas to be placed at the location of each public official participating in a public meeting remotely, including from the member’s private home or hotel room, this act protects the personal, private information of public officials and their families while preserving the public’s right to access information concerning the conduct of the people’s business.

SEC. 9. This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the California Constitution and shall go into immediate effect.

The facts constituting the necessity are:

In order to ensure that state and local agencies can continue holding public meetings while providing essential services like water, power, and fire protection to their constituents during public health, wildfire, or other states of emergencies, it is necessary that this act take effect immediately.

O
92 — 19 — Ch. 165
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CITY OF MODESTO

COUNCIL AGENDA REPORT
DATE OF MEETING:

March 8, 2022
Date: February 15, 2022
TO: Mayor and City Council
FROM: Joseph P. Lopez, City Manager
SUBJECT: Monthly Budget Adjustment Report – February 2022 CONTACT: Steve Christensen, Budget Manager, [email protected] 209-577-5390
DESCRIPTION:

Consider approving the recommended budget adjustments to Fiscal Year 2021-22 Annual Operating and Capital Improvement Program Budgets. (Funding Source: Various Funds)
STRATEGIC PLAN ELEMENT:

This item supports the City of Modesto 2020-2025 Strategic Plan focus on Governance and Service Delivery under Goal H: Achieve Financial Sustainability.

BACKGROUND:

Each month City staff presents a variety of budget adjustments requiring the approval of Council. These changes are submitted to the Finance Committee for review prior to submission to Council and include an explanation and justification for each transaction.

This report includes a number of adjustments that have been identified by monitoring department budgets. Due to the number of adjustments, they have been included as an attachment to this report (Exhibit A). As in past reports, adjustments are separated by fund and department as appropriate. The adjustments are reflected in a more summarized version and supporting documentation is available for review upon request.

Also included in this report as an attachment (Exhibit B) is a summary of the budget adjustments approved by the City Manager and/or Budget Manager consistent with the change in authority levels that was approved by Council with the passing of the Fiscal Year 2019-20 Operating Budget via Resolution No. 2019-305.

DISCUSSION:

The monthly budget adjustments attached as Exhibit A in this item include adjustments across various departments. These adjustments are explained in further detail within Exhibit A. #9..
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City Council, March 8, 2022
Monthly Budget Adjustment Report – February 2022

Page 2 of 2 ends

FISCAL IMPACT:

The fiscal impact of each item is noted in the attachments to this report. The adjustments are for Fiscal Year 2021-22.

COMMITTEE RECOMMENDATION:

This item was presented to the Finance Committee on February 28, 2022 and was recommended to be forwarded to Council for approval.

RECOMMENDED COUNCIL ACTION:

Staff Recommendations:

Resolution amending Year 2021-22 Annual Operating and Capital Improvement Project Fund Budgets and authorizing the City Manager, to make the necessary steps to implement the provisions of this resolution.

Approved by:

Joseph P. Lopez, City Manager
Attachments:

1. Resolution

2. Exhibit A – Budget Adjustments Requiring Council Approval

3. Exhibit B - Staff Approved Budget Adjustments
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1 MODESTO CITY COUNCIL
RESOLUTION NO. 2022-
RESOLUTION AMENDING THE FISCAL YEAR 2021-22 ANNUAL

OPERATING AND CAPITAL IMPROVEMENT FUND BUDGETS AND

AUTHORIZING THE CITY MANAGER, TO TAKE THE NECESSARY

STEPS TO IMPLEMENT THE PROVISIONS OF THIS RESOLUTION
WHEREAS, a financial analysis has been completed and it has been determined that a budget adjustment is required to the Annual and Capital Improvement Budgets of the City of Modesto for Fiscal Year 2021-22.

NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Modesto that it hereby approves amending the Fiscal Year 2021-22 Annual Operating and Capital Improvement budget as shown in Exhibit A, which is attached hereto and incorporated by reference herein.

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
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City Council, March 8, 2022
Monthly Budget Adjustment Report

EXHIBIT A
FISCAL YEAR 2021-22

COMMUNITY & ECONOMIC DEVELOPMENT
 A budget adjustment in the amount of $50,000 is needed to increase the revenue, expense and transfer budgets for project 101296 – Boys and Girls First Tee. The increase in budget is for staff time and administrative expenses. When the project budgets were approved, these items were not included. These increases will be funded by Housing and Urban Development (HUD) Community Development Block Grant funding.
 A budget adjustment in the amount of $55,000 is needed to increase the revenue, expense and transfer budgets for project 100866 – Senior Playground. The increase in budget is for staff time and administrative expenses. When the project budgets were approved, these items were not included. These increases will be funded by Housing and Urban Development (HUD) Community Development Block Grant funding.

FIRE DEPARTMENT
 A budget adjustment is necessary to increase both the revenue and expenditure budgets for the newly created General Fund (0100) cost center 18214 (MFD - Fire Services for Turlock) for the Turlock Fire Services contract amounts for the remainder of the current Fiscal Year. This adjustment will increase the revenue budget in the cost center by $126,555 in account 42410 (Intergov - Local - City of Turlock) to collect the revenue from Turlock for administrative fire services provided per the contract. The expenditure budget will increase by $107,805 in the cost center in accounts 51401 (Budget Only - Salary Adjustment - New Position) and 51901 (Budget Only - Benefit Adjustment - New Position) to cover the costs of the Deputy Fire Chief position for the remainder of the fiscal year.

UTILITIES
 A budget adjustment in the amount of $236,000 is needed to increase the expense budget for the MID Surface Water Treatment & Delivery Agreement Cost Center – 45070 within Water Fund 4100. The increase in budget is for the principal repayments of the 2007 F Bonds. The increase in budget will come from the Water Fund 4100 fund balance as there are sufficient funds available.
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Department Director/Budget Manager/City Manager Approved Budget Adjustments EXHIBIT B For FY2021/22
AT #
Appro
ved by
CM,
BM or
DD Fund Fund Name Cost Ctr/Project Name Account Name
Rev/E
xp/TI/
TO
Accou
nt Current Budget
Increase
(Decrease)
Revised
Budget Description
AT-089 CM 0100 General Fund CMO - City Manager's
Office
Budget Only - Salary Adjustment
- Decrease Exp $ (17,500) (4,200) $ $ (21,700)
AT-089 CM 0100 General Fund CMO - City Manager's
Office
Budget Only - Benefit
Adjustment - Decrease Exp $ (7,500) (1,800) $ $ (9,300) AT-089 CM 0100 General Fund CMO - City-wide
Organization & Dues Membership and Dues Exp $ 196,000 6,000 $ $ 202,000 AT-097 BM 0100 General Fund CMO - City Manager's
Office
Budget Only - Salary Adjustment
- Decrease Exp $ (21,700) (7,000) $ $ (28,700)
AT-097 BM 0100 General Fund CMO - City Manager's
Office
Budget Only - Benefit
Adjustment - Decrease Exp $ (9,300) (3,000) $ $ (12,300) AT-097 BM 0100 General Fund CMO - City Manager's
Office Office Supplies Exp $ 7,246 10,000 $ $ 17,246
AT-098 DD 0100 General Fund FIN - Purchasing Budget Only - Salary Adjustment Decrease Exp $ - (10,290) $ $ (10,290)
AT-098 DD 0100 General Fund FIN - Purchasing Budget Only - Benefit Adjustment Decrease Exp $ - (4,410) $ $ (4,410)
AT-098 DD 0100 General Fund FIN - Purchasing Professional Services Exp $ 8,411 14,700 $ $ 23,111 AT-099 DD 0100 General Fund PRN - Convention & Visitors Bureau Professional Services Exp $ 366,569 (366,569) $ $ - AT-099 DD 0100 General Fund PRN - Convention & Visitors Bureau
Intergovernmental Services -
Other Exp $ - 366,569 $ $ 366,569
AT-101 CM 0100 General Fund Transfer Out General Fund
0100 Transfer Out to Fund 4550 TO $ 44,864 (44,864) $
AT-101 CM 0100 General Fund Transfer Out General Fund
0100 Transfer Out to Fund 5400 TO $ - 5,000 $ $ 5,000
AT-102 DD 0100 General Fund CED - Building Safety Budget Only - Salary Adjustment - Decrease Exp $ - (105,000) $ $ (105,000)
AT-102 DD 0100 General Fund CED - Building Safety Budget Only - Benefit Adjustment - Decrease Exp $ - (45,000) $ $ (45,000)
AT-102 DD 0100 General Fund CED - Building Safety Professional Services Exp $ 25,016 150,000 $ $ 175,016 AT-104 CM 0100 General Fund CMO - City Manager's
Office
Budget Only - Salary Adjustment
- Decrease Exp $ (28,700) (42,000) $ $ (70,700)
AT-104 CM 0100 General Fund CMO - City Manager's
Office
Budget Only - Benefit
Adjustment - Decrease Exp $ (12,300) (18,000) $ $ (30,300) AT-104 CM 0100 General Fund CMO - City Manager's
Office Professional Services Exp $ 70,000 60,000 $ $ 130,000 Total Changes for Fund 0100 $ 621,106 $ (39,864) $ 581,242 AT-088 BM 1130 CDBG Direct Program 101256 - Small Business Assistance Prgm Federal Intergov - Activity 1359 Rev $ 691,519 (134,338) $ $ 557,181 AT-088 BM 1130 CDBG Direct Program 101256 - Small Business Assistance Prgm Federal Intergov - Activity 1403 Rev $ - 11,424 $ $ 11,424 AT-088 BM 1130 CDBG Direct Program 101256 - Small Business Assistance Prgm Federal Intergov - Activity 1404 Rev $ - 10,523 $ $ 10,523 AT-088 BM 1130 CDBG Direct Program 101256 - Small Business Assistance Prgm Federal Intergov - Activity 1405 Rev $ - 10,340 $ $ 10,340 AT-088 BM 1130 CDBG Direct Program 101256 - Small Business Assistance Prgm Federal Intergov - Activity 1406 Rev $ - 11,744 $ $ 11,744 AT-088 BM 1130 CDBG Direct Program 101256 - Small Business Assistance Prgm Federal Intergov - Activity 1407 Rev $ - 10,502 $ $ 10,502 A budget adjustment of $6,000 is necessary to move salary savings to Membership and Dues to cover a sponsorship payment to Love Modesto.

A budget adjustment of $10,000 is necessary to move salary savings to Office Supplies to cover unbudgeted Zoom expenses and FT meals.

A budget adjustment of $14,700 is necessary to move salary savings from a vacant buyer position to Professional Services in order to cover a legal service invoice that was not budgeted in FY22.

A budget adjustment is necessary to move the budget for the Convention & Visitors Bureau payments from the professional services account to the Intergovernmental Services - Other account as the actual payments are being paid from this account.

There is no change to the overall budget within the cost center.

A budget adjustment of $150,000 is necessary to move salary savings to Professional Services for consultant costs in Building Safety due to inspector vacancies and an increase in development activity. Council passed resolution 2021-397 increasing the annual contract limit for both 4-Leaf and Interwest to $400,000 each in anticipation of an increased need of assistance.

A budget adjustment of $60,000 is necessary to move Salary and Benefit savings from the vacant Community and Media Relations Officer position to Professional Services in order to cover Slate and recruitment expenses. Slate will be providing services until the Legislative Affairs and Media position is filled in March. #9..
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Department Director/Budget Manager/City Manager Approved Budget Adjustments EXHIBIT B For FY2021/22
AT #
Appro
ved by
CM,
BM or
DD Fund Fund Name Cost Ctr/Project Name Account Name
Rev/E
xp/TI/
TO
Accou
nt Current Budget
Increase
(Decrease)
Revised
Budget Description
AT-088 BM 1130 CDBG Direct Program 101256 - Small Business Assistance Prgm Federal Intergov - Activity 1408 Rev $ - 10,823 $ $ 10,823 AT-088 BM 1130 CDBG Direct Program 101256 - Small Business Assistance Prgm Federal Intergov - Activity 1409 Rev $ - 10,603 $ $ 10,603 AT-088 BM 1130 CDBG Direct Program 101256 - Small Business Assistance Prgm Federal Intergov - Activity 1410 Rev $ - 11,377 $ $ 11,377 AT-088 BM 1130 CDBG Direct Program 101256 - Small Business Assistance Prgm Federal Intergov - Activity 1411 Rev $ - 11,095 $ $ 11,095 AT-088 BM 1130 CDBG Direct Program 101256 - Small Business Assistance Prgm Federal Intergov - Activity 1412 Rev $ - 6,279 $ $ 6,279 AT-088 BM 1130 CDBG Direct Program 101256 - Small Business Assistance Prgm Federal Intergov - Activity 1413 Rev $ - 8,600 $ $ 8,600 AT-088 BM 1130 CDBG Direct Program 101256 - Small Business Assistance Prgm Federal Intergov - Activity 1414 Rev $ - 10,280 $ $ 10,280 AT-088 BM 1130 CDBG Direct Program 101256 - Small Business Assistance Prgm Federal Intergov - Activity 1415 Rev $ - 10,748 $ $ 10,748 AT-088 BM 1130 CDBG Direct Program 101256 - Small Business Assistance Prgm
Services Interfund - Activity 1359
AD Exp $ 21,039 (11,008) $ $ 10,031
AT-088 BM 1130 CDBG Direct Program 101256 - Small Business Assistance Prgm
Services Interfund - Activity 1403
AD Exp $ - 1,424 $ $ 1,424
AT-088 BM 1130 CDBG Direct Program 101256 - Small Business Assistance Prgm
Services Interfund - Activity 1404
AD Exp $ - 523 $ $ 523
AT-088 BM 1130 CDBG Direct Program 101256 - Small Business Assistance Prgm
Services Interfund - Activity 1405
AD Exp $ - 340 $ $ 340
AT-088 BM 1130 CDBG Direct Program 101256 - Small Business Assistance Prgm
Services Interfund - Activity 1406
AD Exp $ - 1,744 $ $ 1,744
AT-088 BM 1130 CDBG Direct Program 101256 - Small Business Assistance Prgm
Services Interfund - Activity 1407
AD Exp $ - 502 $ $ 502
AT-088 BM 1130 CDBG Direct Program 101256 - Small Business Assistance Prgm
Services Interfund - Activity 1408
AD Exp $ - 823 $ $ 823
AT-088 BM 1130 CDBG Direct Program 101256 - Small Business Assistance Prgm
Services Interfund - Activity 1409
AD Exp $ - 603 $ $ 603
AT-088 BM 1130 CDBG Direct Program 101256 - Small Business Assistance Prgm
Services Interfund - Activity 1410
AD Exp $ - 1,377 $ $ 1,377
AT-088 BM 1130 CDBG Direct Program 101256 - Small Business Assistance Prgm
Services Interfund - Activity 1411
AD Exp $ - 1,095 $ $ 1,095
AT-088 BM 1130 CDBG Direct Program 101256 - Small Business Assistance Prgm
Services Interfund - Activity 1412
AD Exp $ - 835 $ $ 835
AT-088 BM 1130 CDBG Direct Program 101256 - Small Business Assistance Prgm
Services Interfund - Activity 1413
AD Exp $ - 714 $ $ 714
AT-088 BM 1130 CDBG Direct Program 101256 - Small Business Assistance Prgm
Services Interfund - Activity 1414
AD Exp $ - 280 $ $ 280
AT-088 BM 1130 CDBG Direct Program 101256 - Small Business Assistance Prgm
Services Interfund - Activity 1415
AD Exp $ - 748 $ $ 748
Total Changes for Fund 1130 $ 712,558 $ - $ 712,558
AT-103 DD 1341 Grants/Operation Reimbursed City/County Payment Program FY20-21 Recycle Grant Expenses Exp $ - 165 $ $ 165 AT-103 DD 1341 Grants/Operation Reimbursed City/County Payment Program FY20-21 Beverage Container Collection Exp $ 16,172 165 $ $ 16,337 Total Changes for Fund 1341 $ 16,172 $ 330 $ 16,502
A budget adjustment is necessary to clean up the project budget in order to close the project. There is no change to the total amount budgeted.

A budget adjustment in the amount of $165 is needed to recognize interest received and establish expenditure appropriations in equal amount. #9..
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Department Director/Budget Manager/City Manager Approved Budget Adjustments EXHIBIT B For FY2021/22
AT #
Appro
ved by
CM,
BM or
DD Fund Fund Name Cost Ctr/Project Name Account Name
Rev/E
xp/TI/
TO
Accou
nt Current Budget
Increase
(Decrease)
Revised
Budget Description
AT-100 BM 1380 Non-Capital Parks Fund (NonGrant)
100880 - Fund Dev/Special
Projects
Misc. Donations/Contributions -
Non-Intergov Rev $ 14,844 12,260 $ $ 27,104
AT-100 BM 1380 Non-Capital Parks Fund (NonGrant)
100880 - Fund Dev/Special
Projects Professional Services Exp $ 14,044 12,260 $ $ 26,304 Total Changes for Fund 1380 $ 28,888 $ 24,520 $ 53,408
AT-092 BM 3130 Parks Fund Transfer Out Parks Fund
3130 Transfer Out to Fund 3150 TO $ - 10,000 $ $ 10,000 A budget adjustment is necessary to establish the transfer out from the Parks Fund 3130 to Project 101289 and increase the expense budget. The increase in budget for the project is needed for the purchase of playground equipment. The transfer will come from Parks Fund 3130 reserves where sufficient funds are available.

AT-093 BM 3130 Parks Fund 101376 - Parks Partners
2021
Misc. Donations/Contributions -
Non-Intergov Rev $ - 5,000 $ $ 5,000
AT-093 BM 3130 Parks Fund 101376 - Parks Partners
2021
Lloyd Stueve Memorial Bench -
CON Exp $ - 5,000 $ $ 5,000
Total Changes for Fund 3130 $ - $ 20,000 $ 20,000
AT-096 BM 3160 Capital Grants - Streets CIP
Projects
Pelandale Interchange -
Phase 2 EDA-CFF-Eng./Design/Admin Exp $ 253,755 (48,906) $ $ 204,849 AT-096 BM 3160 Capital Grants - Streets CIP
Projects
Pelandale Interchange -
Phase 2
CC-STIP-LA-R/W Support-Land
Acquisition Exp $ 82,049 (6,653) $ $ 75,396
AT-096 BM 3160 Capital Grants - Streets CIP
Projects
Pelandale Interchange -
Phase 2
CC-CFF-DesignEng./Design/Admin Exp $ 150,608 52,018 $ $ 202,626 AT-096 BM 3160 Capital Grants - Streets CIP
Projects
Pelandale Interchange -
Phase 2 CC-STIP-UC-R/W Support Exp $ 16,698 3,541 $ $ 20,239 Total Changes for Fund 3160 $ 503,110 $ - $ 503,110
AT-092 BM 3150 Capital Grants - Parks CIP
Projects
101289 - Revard Pk
Playground Reno Transfer In from Fund 3130 TI $ - 10,000 $ $ 10,000 AT-092 BM 3150 Capital Grants - Parks CIP
Projects
101289 - Revard Pk
Playground Reno AUC-CON - Construction Exp $ 72,952 10,000 $ $ 82,952 Total Changes for Fund 3150 $ 72,952 $ 20,000 $ 92,952
AT-091 BM 3170 CDBG Capital Projects 101288 - Mellis Park Splash Pad Eng./Design/Admin Exp $ 25,000 (25,000) $ $ - A budget adjustment is necessary to close this project. Park improvements will be funded by a State grant.

Total Changes for Fund 3170 $ 25,000 $ (25,000) $ -
AT-101 CM 4550 Bus Fixed Route - Altern
Transportation Fund
Municipal TAXI Program
Administration Transfer In from Fund 0100 TI $ 44,864 (44,864) $ $ - AT-101 CM 4550 Bus Fixed Route - Altern
Transportation Fund
Municipal TAXI Program
Administration Professional Services Exp $ 10,000 (10,000) $ $ - AT-101 CM 4550 Bus Fixed Route - Altern
Transportation Fund
Municipal TAXI Program
Administration Legal Services Exp $ 2,000 (2,000) $ $ - AT-101 CM 4550 Bus Fixed Route - Altern
Transportation Fund
Municipal TAXI Program
Administration Services City Forces - Interfund Exp $ 32,061 (32,061) $ $ - AT-101 CM 4550 Bus Fixed Route - Altern
Transportation Fund
Municipal TAXI Program
Administration
ISF - Fleet Operating and
Maintenance Exp $ 803 (803) $ $ -
Total Changes for Fund 4550 $ 89,728 $ (89,728) $ -
A budget adjustment is necessary to establish the transfer out from the Parks Fund 3130 to Project 101289 and increase the expense budget. The increase in budget for the project is needed for the purchase of playground equipment. The transfer will come from Parks Fund 3130 reserves where sufficient funds are available.

A budget adjustment is necessary to recognize the $5,000 personal donation for Lloyd Stueve Memorial Bench and allocate to a newly created expense task within a project.

A budget adjustment is necessary to re-allocate funds within the Pelandale Phase 2 project tasks. The change is needed to account for Amendment #6 with Dokken Engineering that was recently approved by Council.

A budget adjustment is necessary to increase the Virginia Corridor task on the Fund Development project 100880. The adjustment is needed to account for remaining expenses related to Virginia Corridor in FY 21-22. The increase in expense budget will be offset with funds at the Stanislaus Community Foundation - Virginia Corridor account which has a sufficient fund balance.

A budget adjustment is necessary to move the Taxi Cab Administration budget. The fund 4550 is no longer being used in FY 21-22 as it is a Transit fund and the budget needs to be moved. In discussion with staff, it was determined the budget should be moved to the Fleet Management Fund. In addition, the budget is being reduced from $44,864 to $5,000. In reviewing the previous history based on actuals, it was determined the entire budget was not being utilized during the fiscal year and should be reduced.
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Department Director/Budget Manager/City Manager Approved Budget Adjustments EXHIBIT B For FY2021/22
AT #
Appro
ved by
CM,
BM or
DD Fund Fund Name Cost Ctr/Project Name Account Name
Rev/E
xp/TI/
TO
Accou
nt Current Budget
Increase
(Decrease)
Revised
Budget Description
AT-101 CM 5400 Fleet Management Fund Fleet Municipal TAXI Program Administration Transfer In from Fund 0100 TI $ - 5,000 $ $ 5,000 AT-101 CM 5400 Fleet Management Fund Fleet Municipal TAXI Program Administration Professional Services Exp $ - 4,197 $ $ 4,197 AT-101 CM 5400 Fleet Management Fund Fleet Municipal TAXI Program Administration
ISF - Fleet Operating and
Maintenance Exp $ - 803 $ $ 803
Total Changes for Fund 5400 $ - $ 10,000 $ 10,000
A budget adjustment is necessary to move the Taxi Cab Administration budget. The fund 4550 is no longer being used in FY 21-22 as it is a Transit fund and the budget needs to be moved. In discussion with staff, it was determined the budget should be moved to the Fleet Management Fund. In addition, the budget is being reduced from $44,864 to $5,000. In reviewing the previous history based on actuals, it was determined the entire budget was not being utilized during the fiscal year and should be reduced.
#9..
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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: Jaylen French, Director of Community and Economic Development SUBJECT: CARES Act Emergency Solutions Grant (ESG-CV2) to STANCO for Shelter Renovations for Shelter located at 512 Vine Street, Modesto CONTACT: Jessica Hill, Community Development Manager
[email protected], 209-577-5321
DESCRIPTION:

Consider approving a CARES Act Emergency Solutions Grant to Stanislaus County Affordable Housing Corporation for the renovation of the shelter located at 512 Vine Street, Modesto, CA 95351 in an amount not to exceed $186,000 and $20,000 in Activity Delivery to prevent, mitigate, and respond to the spread of COVID-19. (Funding Source: Emergency Solutions Grant CV2)
STRATEGIC PLAN ELEMENT:

This item supports the City of Modesto’s 2020-2025 Strategic Plan Goal C: Develop Homelessness and Housing Plan.

BACKGROUND:

As a U.S. Department of Housing and Urban Development (HUD) entitlement community, the City is required to develop an Annual Action Plan (AAP) that describes proposed activities funded with Community Development Block Grant (CDBG), Home Investment Partnerships (HOME), and Emergency Solutions Grant (ESG) funds.

On March 27, 2020 the United States Congress passed the Coronavirus Aid, Relief and Economic Security (CARES) Act. The bill provided $5 billion under Community Development Block Grant – Coronavirus (CDBG-CV1) and $4 billion for Emergency Solutions Grants – Coronavirus (ESG-CV1) to rapidly respond to COVID-19 and the economic, housing, and homelessness impacts caused by it.

On June 9, 2020 HUD announced the second round of CARES Act Funding through which the City was awarded an additional $3,360,962 in Emergency Solutions Grants – Coronavirus (ESG-CV2) and on September 11, 2020 HUD announced a third round of CARES Act funding through which City will receive an additional $1,267,503 in Community Development Block Grant – Coronavirus (CDBG-CV3).
#10..
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City of Modesto, March 8, 2022
CARES Act Emergency Solutions Grant (ESG-CV2) to STANCO for Shelter Renovations for Shelter located at 512 Vine Street, Modesto

Page 2 of 3 ends

On October 27, 2020, the City Council, by Resolution No. 2020-448, approved Amendment #4 to the City of Modesto Program Year 2019-2020 Annual Action. The amendment served in allocating program Community Development Block Grant Coronavirus Round 3 (CDBG-CV3) and Emergency Solutions Grant Coronavirus Round 2 (ESG-CV2).

DISCUSSION:

The City’s current 2020-2025 Consolidated Plan identifies addressing homelessness and housing as the highest priorities. Addressing homelessness in the midst of a pandemic takes many community partners and City departments coming together to create a holistic approach to keeping the most vulnerable in the community safe from COVID-19 and to continue the effort to assist these individuals on a path that brings them closer to a life off the streets and to becoming a part of our local community. With this in mind, the City has been working with its partners in allocating CARES Act resources to address this priority while responding to the COVID-19 threat to the community.

Stanislaus County Affordable Housing Corporation (STANCO) owns and operates an intensive short-term shelter located at 512 Vine Street, Modesto. This two-story shelter has a livable square footage 2,239 and has been in operations since 2002.

Emergency shelters play an important role in providing shelter to homeless individuals in the community. However, COVID-19 has impacted the way in which shelters operate and provide services and has resulted in an increased need for operational resources. To assist in the in the longevity of the shelter infrastructure in the continuum for the response to COVID-19. Funds will be used for the following repairs:

Repair Justification Cost
Replace roof/ install rain gutters Energy and Extend Roof Life $28,882 Replace HVAC system Energy and Replace Dated
Equipment
$14,375
Repair and Paint Exterior Significant Wear/Weather
Proofing
$29,281
Replace Sidewalk and Driveway Tripping Hazard $14,676
Repair Porch Landing and Rails Deterioration $4,800
Replace Floor Coverings Worn due to Excessive Use $27,900 Renovate Bathrooms Age/Water Conservation $6,700
Refurbish Landscaping Repair and Replace after
exterior work
$1,200
Design, Development, and Overhead $41,563
Contingency $16,623
Total $186,000
All rehabilitation projects funded with ESG-CV will undergo an environmental review and cost reasonableness review. Per the ESG-CV regulations, this shelter must remain in operation for a minimum of three years after the completion of the rehabilitation. Staff is recommending the rehabilitation of this shelter in an amount not to exceed $186,000. #10..
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City of Modesto, March 8, 2022
CARES Act Emergency Solutions Grant (ESG-CV2) to STANCO for Shelter Renovations for Shelter located at 512 Vine Street, Modesto

Page 3 of 3 ends

FISCAL IMPACT:

ESG-CV2 CARES Act Funds were authorized for eligible uses through the Program Year 2019- 2020 Annual Action Plan Amendment #4 approved by City Council on October 27, 2020 by Resolution 2020-448. There will be no impact to the General Fund.

COMMITTEE RECOMMENDATION:

This item was presented to the Citizen Housing and Community Development Committee on February 10, 2022 and recommended to forward to Council for approval.

RECOMMENDED COUNCIL ACTION:

Resolution approving an Emergency Solutions Grant CARES Act (ESG-CV2) to Stanislaus County Affordable Housing Corporation for the renovation of the shelter located at 512 Vine Street, Modesto, CA 95351 in an amount not to exceed $186,000 and $20,000 in Activity Delivery to prevent, mitigate, and respond to the spread of COVID-19 and authorizing the City Manager or his designee to execute any documents and/or agreements.

Approved By:

Jaylen French, Director of Community and Economic Development Joseph P. Lopez, City Manager
Attachments:

1. Resolution

2. Agreement – STANCO ESG-CV2 Agreement
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03-08-2022/C&ED/Jhill 1 2022-

MODESTO CITY COUNCIL
RESOLUTION NO. 2022-

RESOLUTION APPROVING AN EMERGENCY SOLUTIONS GRANT CARES ACT (ESG-CV2) TO STANISLAUS COUNTY AFFORDABLE HOUSING

CORPORATION FOR THE RENOVATION OF THE SHELTER LOCATED AT 512 VINE STREET, MODESTO, CA 95351 IN AN AMOUNT NOT TO EXCEED $186,000 AND $20,000 IN ACTIVITY DELIVERY TO PREVENT, MITIGATE, AND RESPOND TO THE SPREAD OF COVID-19 AND AUTHORIZING THE

CITY MANAGER OR HIS DESIGNEE TO EXECUTE ANY DOCUMENTS

AND/OR AGREEMENTS
WHEREAS, the City of Modesto is an entitlement community under three U.S.

Department of Housing and Urban Development (HUD) programs within its Office of Community Planning and Development (CPD), and
WHEREAS, as an entitlement community, the City annually receives entitlement funds from the Community Development Block Grant, Emergency Solutions Grant, and HOME Investment Partnerships Program (HOME) programs, and WHEREAS, on March 27, 2020, the United States Congress passed the Coronavirus Aid, Relief, and Economic Security Act (CARES Act – H.R. 748), and WHEREAS, through the first round of funding, the City of Modesto was awarded $1,118,269 in CDBG-CV1 and $567,410 in ESG-CV1, and
WHEREAS, this funding was programmed by 2019-2020 Annual Action Plan Amendment #3 approved by City Council on April 28, 2020 by Resolution 2020-206, and
WHEREAS, on June 9, 2020 HUD announced the second round of CARES Act Funding through which the City was awarded an additional $3,360,962 in Emergency Solutions Grants – Coronavirus (ESG-CV2) and this funding was programmed by 2019- #10..
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03-08-2022/C&ED/Jhill 2 2022-
2020 Annual Action Plan Amendment #4 approved by City Council on October 27, 2020 by Resolution 2020-448, and
WHEREAS, the City’s current 2020-2025 Consolidated Plan identifies homelessness and housing as the highest priorities, and WHEREAS, addressing homelessness in the midst of a pandemic takes a global approach with many community partners and the City departments coming together to create a holistic approach to keeping the most vulnerable in the community safe from COVID-19 and to continue the effort to assist these individuals on a path that brings them closer to a life off the streets and part of our local community, and WHEREAS, the City has been working with its partners in allocating CARES Act resources to address this priority while responding to the COVID-19 threat to the community, and
WHEREAS, Stanislaus County Affordable Housing Corporation (STANCO) owns and operates an intensive short-term shelter located at 512 Vine Street, Modesto, CA. This two-story shelter has a livable square footage 2,239 and has been in operations since 2002, and
WHEREAS, Emergency shelters play an important role in providing shelter to homeless individuals in the community, and
WHEREAS, rehabilitation projects funded with ESG-CV will undergo an environmental review and cost reasonableness review and per the ESG-CV regulations, this shelter must remain in operation for a minimum of three years after the completion of the rehabilitation, and
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03-08-2022/C&ED/Jhill 3 2022-
WHEREAS, to assist in the in the longevity of the shelter infrastructure in the continuum for the response to COVID-19 the city staff is recommending funding for the rehabilitation of this existing shelter in an amount not to exceed $186,000.

NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Modesto that it hereby approving an Emergency Solutions Grant CARES Act (ESG-CV2) to Stanislaus County Affordable Housing Corporation for the renovation of the shelter located at 512 Vine Street, Modesto, CA 95351 in an amount not to exceed $186,000 and $20,000 in Activity Delivery to prevent, mitigate, and respond to the spread of COVID19.

BE IT FURTHER RESOLVED; authorize the City Manager or his designee to execute any documents and/or agreements with such changes as determined by the City Attorney.

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
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5071572.1 1

CITY GRANT AGREEMENT
(City of Modesto ESG Grant – 512 Vine Street)
This Grant Agreement (this “Agreement”) is entered into as of ____________________, 2021, by and between the City of Modesto, a California charter city (the “City”) and Stanislaus County Affordable Housing Corporation, a California nonprofit corproation (“Recipient”). City and Recipient are collectively referred to in this Agreement as the “Parties.”

RECITALS
A. Defined terms used but not defined in these recitals have the meaning ascribed to them in Article 1 of this Agreement.

B. The City has received funds from HUD under Subtitle B of Title IV of the Stewart B. McKinney Homeless Assistance Act, as amended (the “ESG Funds”). The ESG Funds must be used by the City in accordance with 24 CFR 576 et seq. (the “ESG Regulations”).

C. The Recipient owns the real property located at 512 Vine Street, Modesto, California, known as Stanislaus County Assessor’s Parcel Number ______________, as more particularly described in Exhibit A attached hereto and incorporated herein by this reference (the “Property”). Recipients owns and operates an intensive two-story, 2,230 square foot, short-term shelter on the Property for homeless individuals (the “Shelter”). The Shelter serves individuals who qualify as “homeless” pursuant to 24 CFR 576.2.

D. In order to extend the useful life of the Shelter and address potential health and safety issues, the Recipient intends to make certain improvements and repairs to the Shelter, as more particularly described in the project summary attached hereto as Exhibit B and incorporated herein by this reference (the “Project”). The Project will extend the longevity of the Shelter and ensure its continued operation during the response to the COVID-19 pandemic.

E. City wishes to give to Recipient a grant of One Hundred Eighty Six Thousand Dollars ($186,000) (the “Grant”) of ESG funds to help finance predevelopment costs associated with the Project.

F. Concurrently herewith: Recipient and City shall execute a Regulatory Agreement and Declaration of Restrictive Covenants in a form provided by the City (the “Regulatory Agreement”), which shall be recorded against the Property and which shall require the Property and the Shelter to be maintained as a shelter for homeless individuals and families for not less than a period of three (3) years.

G. The Grant is being made to assist in financing the Project in order to help achieve financial feasibility for the Project and to improve the Shelter.

H. The California Environmental Quality Act (Public Resources Code Sections 21000 et seq.) (“CEQA”) imposes no conditions on the City's consideration and approval of this #10..
- 101 -
5071572.1 2
Agreement because the Project is exempt from CEQA requirements under the categorical exemption set forth in 14 California Code of Regulations Section 15303(b).

I. In accordance with the National Environmental Policy Act of 1969, as amended (42 USC 4321-4347) (“NEPA”), the City has completed and approved all applicable environmental review for the activities proposed to be undertaken under this Agreement.

NOW, THEREFORE, in consideration of the mutual covenants contained herein and good and valuable consideration the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:

ARTICLE 1 DEFINITIONS AND EXHIBITS
Section 1.1 Definitions
The following capitalized terms have the meanings set forth in this Section 1.1 wherever used in this Agreement, unless otherwise provided:
“Agreement” means this Grant Agreement.
“Approved Project Budget” means the proforma development budget, including sources and uses of funds, as approved by the City, and attached hereto and incorporated herein as Exhibit C.
“Approved Financing” means all of the funds acquired by the Recipient and approved by the City for the purpose of financing the acquisition of the Property and development of the project, in addition to the Grant from the City and other grants which are secured by the Project as of the date of this Agreement. “Bid Package” means the package of documents Recipient's general contractor is required to distribute to potential bidders as part of the process of selecting subcontractors for the construction of the Project. The Bid Package is to include the following: (i) an invitation to bid, (ii) copy of the proposed construction contract; (iii) a form of bid guarantee that is reasonably acceptable to the City that guarantees, at a minimum, an amount equal to five percent (5%) of the bid price, and (iv) all Construction Plans (as defined in Section 3.2 below). “City” means the City of Modesto, a California Charter City. “Default” has the meaning set forth in Section 6.1 below. “ESG” means the Emergency Solutions Grant program under Subtitle B of Title IV of the Stewart B. McKinney Homeless Assistance Act (42 U.S.C. 11371-11378), as amended.
“ESG Funds” has the meaning set forth in Recital B.
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5071572.1 3
“ESG Regulations” means the statutory and regulatory provisions that govern the ESG program under Subtitle B of Title IV of the Stewart B. McKinney Homeless Assistance Act (42 U.S.C. 11371-11378) and as amended including 24 C.F.R. Part 576 et seq. “City” means the City of Modesto, a California Charter City. “Default” has the meaning set forth in Section 6.1 below. “Hazardous Materials” has the meaning set forth in Section 4.9 below. “Hazardous Materials Claim” has the meaning set forth in Section 4.9 below. “Hazardous Materials Law” has the meaning set forth in Section 4.9 below. “HUD” means the U.S. Department of Housing and Urban Development. “Grant” means the City's grant to Recipient pursuant to this Agreement in the total principal amount of One Hundred Eighty Six Thousand Dollars ($186,000) consisting of ESG Funds.
“Term” means the term of this Agreement which commences as of the date of this Agreement and shall expire three (3) years from the completion of construction pursuant to Section 3.6.

Section 1.2 Exhibits
The following exhibits are attached to this Agreement and incorporated into this Agreement by this reference:

Exhibit A: Legal Description of the Property
Exhibit B: Project Summary
Exhibit C: Approved Project Budget
Exhibit D: Federal Award Identification Information
ARTICLE 2 GRANT PROVISIONS
Section 2.1 Grant.

Upon satisfaction of the conditions set forth in Section 2.3 of this Agreement, the City shall grant to the Recipient the Grant for the purposes set forth in Section 2.2 of this Agreement.

2.1.1 Federal Award Identification. Federal award identification information regarding the funding provided to Recipient by this Agreement, as required by 24 CFR 200.331, is included in Exhibit D, attached hereto and incorporated herein.

Section 2.2 Use of Grant Funds.

The Recipient shall use the proceeds of the Grant solely to fund constructions costs associated with the Project as further specified in Exhibits B and C, attached hereto and #10..
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5071572.1 4
incorporated herein. Recipient shall only use funds for eligible costs as defined in 24 CFR 576.102(a)(2) Recipient shall not use the Grant proceeds for any other purposes without the prior written consent of the City.

Section 2.3 Conditions Precedent to Disbursement of Grant Funds.

The maximum amount of funds to be disbursed pursuant to this Section 2 shall not exceed the amount of the Grant. The City shall not be obligated to make any disbursements of Grant funds for acquisition of the Property or take any other action under the Agreement unless the following conditions precedent have been and continue to be satisfied prior to each such disbursement of Grant funds:

There exists no Default nor any act, failure, omission or condition that would constitute an event of Default under this Agreement;
The Recipient holds title to the Property or is acquiring title simultaneously with the disbursement of the Grant proceeds;
Recipient has delivered to the City a copy of a corporate resolution authorizing Recipient's execution of the Agreement;
There exists no material adverse change in the financial condition of Recipient from that shown by the financial statements and other data and information furnished by Recipient to the City prior to the date of this Agreement; The Recipient has furnished the City with evidence of the insurance coverage meeting the requirements of Section 4.16 below;
Recipient has caused to be executed and delivered to the City this Agreement and any other instruments and policies required thereunder; The Regulatory Agreement have been recorded against the Property in the Office of the Recorder of the County of Stanislaus, or will be recorded simultaneously to the disbursement of the Grant;
The City has completed and approved all environmental reviews under NEPA, as necessary for the construction of the Project, and Recipient has provided the City evidence of compliance with all approved NEPA requirements and mitigation measures required by the NEPA environmental documentation;
The City has reasonably determined that the undisbursed proceeds of the Grant, together with other funds or firm commitments for funds that the Recipient has obtained in connection with the Project, are not less than the amount that is necessary to pay for development of the Project and to satisfy all of the covenants contained in this Agreement; The City has received a written draw request from the Recipient, including certification that the condition set forth in Section 2.3 continues to be satisfied, and setting forth the proposed uses of funds, the amount of funds needed, and, where applicable, a copy of the bill or invoice covering a cost incurred or to be incurred. #10..
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ARTICLE 3 CONSTRUCTION OF THE IMPROVEMENTS
Section 3.1 Permits and Approvals.

Recipient shall obtain all permits and approvals necessary for the construction of the Project on the Property.

Section 3.2 Construction Plans.

Recipient shall submit to the City a copy of the Construction Plans for the Project and Bid Package. As used in this Agreement, “Construction Plans” shall mean all construction documentation upon which Recipient and Recipient's contractor shall rely in constructing all the improvements on the Property (including any landscaping, parking, and common areas) and shall include, but not necessarily be limited to, final architectural drawings, landscaping plans and specifications, final elevations, and building plans and specifications (also known as “working drawings”).

The Construction Plans shall be deemed approved by the City unless rejected by the City in writing for their failure to comply with the foregoing requirements within thirty (30) days after receipt by the City. Such approval of the Construction Plans by the City shall not relieve Recipient's Obligation to obtain any and all approvals required by the City or the City Building Services Department.

If rejected by the City in whole or in part, Recipient shall submit new or corrected Construction Plans within thirty (30) days after notification of the City's rejection and the reasons therefor. The City shall then have thirty (30) days to review and approve Recipient's new or corrected Construction Plans. The provisions of this Section relating to time periods for approval, rejection, or resubmission of new or corrected Construction Plans shall continue to apply until the Construction Plans have been approved by the City.

Section 3.3 Construction Contract.

Not later than ten (10) days prior to the proposed commencement of construction of the Project, the Recipient shall submit to the City the proposed construction contract for the Project. All construction work and professional services shall be performed by persons or entities licensed or otherwise authorized to perform the applicable construction work or service in the State of California. Each contract that the Recipient enters for construction of the Project shall provide that at least five percent (5%) of the costs incurred shall be payable only upon completion of construction, subject to early release of retention for specified subcontractors upon approval by the City. The construction contract shall include all applicable ESG requirements set forth in Section 4.8 below.

Upon receipt by the City of the proposed construction contract, the City shall promptly review same and approve or disapprove it within ten (10) days. If the construction contract is not approved by the City, the City shall set forth in writing and notify the Recipient of the City's reasons for withholding such approval. The Recipient shall thereafter submit a revised construction contract for City approval, which approval shall be granted or denied in ten #10..
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(10) working days in accordance with the procedures set forth above. Any construction contract executed by the Recipient for the Project shall be in the form approved by the City. The City's approval of the construction contract shall in no way be deemed to constitute approval of or concurrence with any term or condition of the construction contract except as such term or condition may be required by this Agreement.

Section 3.4 Reserved.

Section 3.5 Commencement of Construction.

Recipient shall cause the commencement of construction of the Project no later than December 1, 2022 or such later date that the City may approve.

Section 3.6 Completion of Construction.

Recipient shall diligently prosecute construction of the Project to completion, and shall cause the completion of the construction of the Project no later than twelve (12) months from construction commencement or such later date that the City may approve. The completion of construction shall be deemed to occur upon the acceptance of the public improvements constructed as part of the Project by the City Engineer or other authorized official.

Section 3.7 Construction Pursuant Applicable Laws
Recipient shall cause all work performed in connection with the Project to be performed in compliance with (i) all applicable laws, ordinances, rules and regulations of federal, state, City or municipal governments or agencies now in force or that may be enacted hereafter, including without limitation and to the extent applicable, the prevailing wage provisions of the federal Davis-Bacon Act and implementing rules and regulations and state prevailing wages pursuant to Labor Code Section 1770 et seq., and the regulations pursuant thereto, as further set forth in subsection (c) below; (ii) the shelter and housing standards set out in 24 CFR 576.403; and (iii) all directions, rules and regulations of any fire marshal, health officer, building inspector, or other officer of every governmental agency now having or hereafter acquiring jurisdiction. The work shall proceed only after procurement of each permit, license, or other authorization that may be required by any governmental agency having jurisdiction, and Recipient shall be responsible to the City for the procurement and maintenance thereof, as may be required of Recipient and all entities engaged in work on the Project.

Section 3.8 Accessibility.

To the extent applicable, Recipient shall construct the Project in compliance with all applicable federal and state disabled persons accessibility requirements including but not limited to the Federal Fair Housing Act; Section 504 of the Rehabilitation Act of 1973 (“Section 504”); Title II and/or Title III of the Americans with Disabilities Act; and Title 24 of the California Code of Regulations (collectively, the “Accessibility Requirements”). In compliance with Section 504 Recipient shall provide the City with a certification from the Project architect that to the best of the architect's knowledge, the Project comply with all federal and state accessibility requirements applicable to the Project. Recipient shall indemnify, hold harmless and defend (with counsel reasonably acceptable to the City) the City against any claim for damages, compensation, fines, #10..
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penalties or other amounts arising out of the failure or alleged failure of any person or entity (including Recipient, its architect, contractor and subcontractors) to construct the Project in accordance with the Accessibility Requirements.

Section 3.9 Equal Opportunity.

During the construction of the Project there shall be no discrimination on the basis of race, color, creed, religion, age, sex, sexual orientation, marital status, national origin, ancestry, or disability in the hiring, firing, promoting, or demoting of any person engaged in the construction work.

Section 3.10 Minority and Women-Owned Contractors.

Recipient will use its best efforts to afford minority-owned and women-owned business enterprises the maximum practicable opportunity to participate in the construction of the Project.

Recipient shall, at a minimum, notify applicable minority-owned and women-owned business firms located in Stanislaus County of bid opportunities for the construction of the Project.

Documentation of such notifications shall be maintained by Recipient and available to the City as requested.

Section 3.11 Progress Reports.

Until such time as Recipient has received a certificate of occupancy from the City for the Project, Recipient shall provide the City with quarterly progress reports regarding the status of the construction of the Project.

Section 3.12 Construction Responsibilities.

It shall be the responsibility of Recipient to coordinate and schedule the work to be performed so that commencement and completion of the construction of the Project will take place in accordance with this Agreement.

Recipient shall be solely responsible for all aspects of Recipient's conduct in connection with the Project, including (but not limited to) the quality and suitability of the plans and specifications, the supervision of construction work, and the qualifications, financial condition, and performance of all architects, engineers, contractors, subcontractors, suppliers, consultants, and property managers. Any review or inspection undertaken by the City with reference to the Project is solely for the purpose of determining whether Recipient is properly discharging its obligations to the City, and should not be relied upon by Recipient or by any third parties as a warranty or representation by the City as to the quality of the design or construction of the Project.

Section 3.13 Mechanics Liens, Stop Notices, and Notices of Completion.

If any claim of lien is filed against the Property or a stop notice affecting the Grant is served on the City or any other lender or other third party in connection with the Project, then Recipient shall, within twenty (20) days after such filing or service, either pay and fully discharge the lien or stop notice, effect the release of such lien or stop notice by delivering #10..
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to the City a surety bond in sufficient form and amount, or provide the City with other assurance satisfactory to the City that the claim of lien or stop notice will be paid or discharged.

If Recipient fails to discharge any lien, encumbrance, charge, or claim in the manner required in this Section, then in addition to any other right or remedy, the City may (but shall be under no obligation to) discharge such lien, encumbrance, charge, or claim at Recipient's expense. Alternately, the City may require Recipient to immediately deposit with the City the amount necessary to satisfy such lien or claim and any costs, pending resolution thereof. The City may use such deposit to satisfy any claim or lien that is adversely determined against Recipient.

Recipient shall file a valid notice of cessation or notice of completion upon cessation of construction on the Project for a continuous period of thirty (30) days or more, and take all other reasonable steps to forestall the assertion of claims of lien against the Property.

Recipient authorizes the City, but without any obligation, to record any notices of completion or cessation of labor, or any other notice that the City deems necessary or desirable to protect its interest in the Project and Property.

Section 3.14 Inspections.

Recipient shall permit and facilitate, and shall require its contractors to permit and facilitate, observation and inspection at the Project by the City and by public authorities during reasonable business hours for the purposes of determining compliance with this Agreement.

ARTICLE 4 GRANT REQUIREMENTS
Section 4.1 Financial Accountings and Post-Completion Audits.

No later than sixty (60) days following completion of construction of the Project, Recipient shall provide to City a financial accounting of all sources and uses of funds for the Project.

Section 4.2 Information.

Recipient shall provide any information reasonably requested by the City in connection with the Project, including (but not limited to) any information required by HUD in connection with Recipient's use of the Grant funds.

Section 4.3 Records.

The Recipient shall keep and maintain at the Administrative Office, or elsewhere with the City's written consent, full, complete and appropriate books, record and accounts relating to the Project, including all such books, records and accounts necessary or prudent to evidence and substantiate in full detail Recipient's compliance with the terms and provisions of this Agreement. Books, records and accounts relating to Recipient's compliance with the terms, provisions, covenants and conditions of this Agreement shall be kept and maintained in accordance with generally accepted accounting principles consistently applied, and shall be #10..
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consistent with requirements of this Agreement. All such books, records, and accounts shall be open to and available for inspection and copying by the HUD, the City, its auditors or other authorized representatives at reasonable intervals during normal business hours. Copies of all tax returns and other reports that Recipient may be required to furnish to any governmental agency shall at all reasonable times be open for inspection by the City at the place that the books, records and accounts of the Recipient are kept. The Recipient shall preserve such records for a period of not less than five (5) years after the creation of such records in compliance with all HUD records and accounting requirements. If any litigation, claim, negotiation, audit exception, monitoring, inspection or other action relating to the use of the Grant is pending at the end of the record retention period stated herein, then the Recipient shall retain such records until such action and all related issues are resolved. Such records shall include all invoices, receipts, and other documents related to expenditures from the Grant funds.

Records must be kept accurate and current and in such a form as to allow the City to comply with the recordkeeping requirements contained in 24 CFR 576.500. Such records shall include but not be limited to:
(i) Records providing a full description of the activities undertaken with the use of the Grant funds;
(ii) Records demonstrating the eligibility of activities under ESG Regulations set forth in 24 CFR 576 et seq. ;
(iii) Records demonstrating compliance with the HUD property standards and lead-based paint requirements;
(iv) Financial records as required by 2 C.F.R. Part 200; (v) Records demonstrating compliance with Section 3, and labor requirements, including certified payrolls from the Recipient's general contractor evidencing that applicable prevailing wages have been paid
(vi) Such other records as required by 24 CFR 576.500.

The City shall notify Recipient of any records it deems insufficient. Recipient shall have fifteen (15) calendar days after the receipt of such a notice to correct any deficiency in the records specified by the City in such notice, or if a period longer than fifteen (15) days is reasonably necessary to correct the deficiency, then Recipient shall begin to correct the deficiency within fifteen (15) days and correct the deficiency as soon as reasonably possible.

Section 4.4 ESG Requirements.

Recipient shall comply with all applicable laws and regulations governing the use of the ESG funds, as set forth in 24 CFR Part 576, to the extent applicable. In the event of any conflict between this Agreement and applicable laws and regulations governing the use of the Grant funds, the applicable laws and regulations shall govern.

The laws and regulations governing the use of the Grant funds include (but are not limited to) the following:
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(i) Environmental and Historic Preservation. Section 104 (f) of the Housing and Community Project Act of 1974 and 24 CFR Part 58, which prescribe procedures for compliance with the National Environmental Policy Act of 1969 (42 USC 4321-4361), and the additional laws and authorities listed at 24 CFR 58.5.
(ii) Applicability of 2 C.F.R. Part 200s. The applicable policies, guidelines, and requirements of 2 C.F.R. Part 200.
(iii) Debarred, Suspended or Ineligible Contractors. The prohibition on the use of debarred, suspended, or ineligible contractors set forth in 24 CFR Part 24. (iv) Civil Rights, Housing and Community Project, and Age Discrimination Acts. The Fair Housing Act (42 USC 3601 et seq.) and implementing regulations at 24 CFR Part 100; Title VI of the Civil Rights Act of 1964 as amended; Title VIII of the Civil Rights Act of 1968 as amended; Section 104(b) and Section 109 of Title I of the Housing and Community Project Act of 1974 as amended; Section 504 of the Rehabilitation Act of 1973 (29 USC 794, et seq.); the Age Discrimination Act of 1975 (42 USC 6101, et seq.); Executive Order 11063 as amended by Executive Order 12259 and implementing regulations at 24 CFR Part 107; Executive Order 11246 as amended by Executive Orders 11375, 12086, 11478, 12107; Executive Order 11625 as amended by Executive Order 12007; Executive Order 12432; Executive Order 12138 as amended by Executive Order 12608.
(v) Lead-Based Paint. The requirement of the Lead-Based Paint Poisoning Prevention Act, as amended (42 USC 4821 et seq.), the Residential Lead-Based Paint Hazard Reduction Act (42 USC 4851 et seq.), and implementing regulations at 24 CFR Part 35. (vi) Discrimination against the Disabled. The requirements of the Fair Housing Act (42 U.S.C. 3601 et seq.) and implementing regulations at 24 C.F.R. Part 100, Section 504 of the Rehabilitation Act of 1973 (29 USC 794), and federal regulations issued pursuant thereto, which prohibit discrimination against the disabled in any federally assisted program, the requirements of the Architectural Barriers Act of 1968 (42 USC 4151-4157) and the applicable requirements of Title II and/or Title III of the Americans with Disabilities Act of 1990 (42 USC 12131 et seq.), and federal regulations issued pursuant thereto. (vii) Clean Air and Water Acts. The Clean Air Act, as amended, 42 USC 7401 et seq., the Federal Water Pollution Control Act, as amended, 33 USC 1251 et seq., and the regulations of the Environmental Protection Agency with respect thereto, at 40 CFR Part 1500, as amended from time to time.
(viii) Labor Standards. The applicable labor requirements set forth in 24 CFR Section 576, as such require compliance with the prevailing wage requirements of the DavisBacon Act and implementing rules and regulations (40 USC 3141-3148); the Copeland “AntiKickback” Act (40 USC 276(c)) which requires that workers be paid at least once a week without any deductions or rebates except permissible deductions; the Contract Work Hours and Safety Standards Act – CWHSSA (40 USC 3701-3708) which requires that workers receive “overtime” compensation at a rate of 1-1/2 times their regular hourly wage after they have worked forty (40) hours in one (1) week; and Title 29, Code of Federal Regulations, Subtitle A, Parts 1, 3 and 5 are the #10..
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regulations and procedures issued by the Secretary of Labor for the administration and enforcement of the Davis-Bacon Act, as amended.
(ix) Anti-Lobbying; Disclosure Requirements. The disclosure requirements and prohibitions of 31 USC 1352 and implementing regulations at 24 CFR Part 87. (x) Historic Preservation. The Recipient shall comply with the historic preservation requirements set forth in the National Historic Preservation Act of 1966, as amended (16 USC Section 470) and the procedures set forth in 36 CFR Part 800. If archeological, cultural, or historic period resources are discovered during construction, all construction work must come to a halt and Recipient shall immediately notify the City. Recipient shall not shall alter or move the discovered material(s) until all appropriate procedures for “post-review discoveries” set forth in Section 106 of the National Historic Preservation Act have taken place, which include, but are not limited to, consultation with the California State Historic Preservation Officer and evaluation of the discovered material(s) by a qualified professional archeologist. (xi) Faith Based Activities. If applicable, the 24 CFR Section 576.406 regarding eligible use of funds by organizations that are religious or faith-based. (xii) Flood Disaster Protection. This Agreement is subject to the requirements of the Flood Disaster Protection Act of 1973 (P.L. 93-234). No portion of the assistance provided under this Agreement is approved for acquisition or construction purposes as defined under Section 3(a) of said Act, for use in an area identified by HUD as having special flood hazards which is located in a community not then in compliance with the requirements for participation in the national flood insurance program pursuant to Section 201(d) of said Act. The use of any assistance provided under this Agreement for such acquisition or construction in such identified areas in communities then participating in the national flood insurance program shall be subject to the mandatory purchase of flood insurance requirements of Section 102(a) of said Act.

Any contract or Agreement for the sale, lease, or other transfer of land acquired, cleared or improved with assistance provided under this Agreement shall contain certain provisions. These provisions will apply if such land is located in an area identified by HUD as having special flood hazards and in which the sale of flood insurance has been made available under the National Flood Insurance Act of 1968, as amended, 42 USC 4001 et seq. These provisions shall obligate the transferee and its successors or assigns to obtain and maintain, during the ownership of such land, such flood insurance as required with respect to financial assistance for acquisition or construction purposes under -Section 102(s) of the Flood Disaster Protection Act of 1973. Such provisions shall be required notwithstanding the fact that the construction on such land is not itself funded with assistance provided under this Agreement.
(xiii) Program Income. The Recipient shall report on a monthly basis, all program income generated by activities carried out with Grant funds made available under this contract. The use of program income by the Recipient shall comply with the requirements set forth at 24 CFR 576. By way of further limitations, the Recipient may use such income during the contract period for activities permitted under this contract, which shall be ESG-Eligible activities related to the operation of the Project as mutually agreed upon in writing by the City and Recipient, and shall reduce requests for additional funds by the amount of any such program income balance on hand. All unused program income shall be returned to the Grantee at the end of the contract period. Any interest earned #10..
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on cash advances from the U.S. Treasury is not program income and shall be remitted promptly to the Grantee.
(xiv) Reversion of Assets. Upon expiration of this Agreement, Recipient shall transfer to City any unused Grant funds on hand and any accounts receivable attributable to the use of Grant Funds in accordance with 24 CFR § 576.
(xv) Displacement, Relocation, and Acquisition. To the extent applicable, Recipient shall comply the regulations regarding displacement, relocation, and acquisition contained in 24 CFR § 576.408.
(xvi) Victims of Domestic Violence and Sexual Assault. To the extent applicable, Recipient shall comply the regulations regarding protections for victims of domestic violence, dating violence, sexual assault and stalking contained in 24 CFR § 576.409. (xvii) HUD Regulations. All other regulations set forth in 24 CFR § 576 and any other HUD regulations present or as may be amended, added, or waived in the future pertaining to the Grant funds, including but not limited to HUD regulations as may be promulgated regarding subrecipients.

Section 4.5 Hazardous Materials.

Recipient shall keep and maintain the Property in compliance with, and shall not cause or permit the Property to be in violation of any federal, state or local laws, ordinances or regulations relating to industrial hygiene or to the environmental conditions on, under or about the Property including, but not limited to, soil and ground water conditions. Recipient shall not use, generate, manufacture, store or dispose of on, under, or about the Property or transport to or from the Property any flammable explosives, radioactive materials, hazardous wastes, toxic substances or related materials, including without limitation, any substances defined as or included in the definition of “hazardous substances”, “ hazardous wastes”, “hazardous materials”, or “toxic substances” under any applicable federal or state laws or regulations (collectively referred to hereinafter as “Hazardous Materials”) except such of the foregoing as may be customarily used in the construction of projects like the Project or kept and used in and about residential property of this type.

Recipient shall immediately advise the City in writing if at any time it receives written notice of (i) any and all enforcement, cleanup, removal or other governmental or regulatory actions instituted, completed or threatened against Recipient or the Property pursuant to any applicable federal, state or local laws, ordinances, or regulations relating to any Hazardous Materials, (“Hazardous Materials Law”); (ii) all claims made or threatened by any third party against Recipient or the Property relating to damage, contribution, cost recovery compensation, loss or injury resulting from any Hazardous Materials (the matters set forth in clauses (i) and (ii) above are hereinafter referred to as “Hazardous Materials Claims”); and (iii) Recipient's discovery of any occurrence or condition on any real property adjoining or in the vicinity of the Property that could cause the Property or any part thereof to be classified as “border-zone property” (as defined in California Health and Safety Code Section 25117.4) under the provision of California Health and Safety Code, Sections 25220 et seq., or any regulation adopted in accordance therewith, or to be otherwise subject to any restrictions on the #10..
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ownership, occupancy, transferability or use of the Property under any Hazardous Materials Law.

The City shall have the right to join and participate in, as a party if it so elects, any legal proceedings or actions initiated in connection with any Hazardous Materials Claims.

Recipient shall indemnify and hold harmless the City and its council members, supervisors, directors, officers, employees, agents, successors and assigns from and against any loss, damage, cost, expense or liability directly or indirectly arising out of or attributable to the use, generation, storage, release, threatened release, discharge, disposal, or presence of Hazardous Materials on, under, or about the Property including without limitation: (i) all foreseeable consequential damages; (ii) the costs of any required or necessary repair, cleanup or detoxification of the Property and the preparation and implementation of any closure, remedial or other required plans; and (iii) all reasonable costs and expenses incurred by the City in connection with clauses (i) and (ii), including but not limited to reasonable attorneys' fees and consultant's fees. This indemnification applies whether or not any government agency has issued a cleanup order. Losses, claims, costs, suits, liability, and expenses covered by this indemnification provision include, but are not limited to: (1) losses attributable to diminution in the value of the Property; (2) loss or restriction of use of rentable space on the Property; (3) adverse effect on the marketing of any rental space on the Property: and (4) penalties and fines levied by, and remedial or enforcement actions of any kind issued by any regulatory agency (including but not limited to the costs of any required testing, remediation, repair, removal, cleanup or detoxification of the Property and surrounding properties). This obligation to indemnify shall survive termination of this Agreement.

Without the City's prior written consent, which shall not be unreasonably withheld, Recipient shall not take any remedial action in response to the presence of any Hazardous Materials on, under or about the Property, nor enter into any settlement agreement, consent decree, or other compromise in respect to any Hazardous Material Claims, which remedial action, settlement, consent decree or compromise might, in the City's reasonable judgment, impair the value of the City's security hereunder; provided, however, that the City's prior consent shall not be necessary in the event that the presence of Hazardous Materials on, under, or about the Property either poses an immediate threat to the health, safety or welfare of any individual or is of such a nature that an immediate remedial response is necessary and it is not reasonably possible to obtain the City's consent before taking such action, provided that in such event Recipient shall notify the City as soon as practicable of any action so taken. The City agrees not to withhold its consent, where such consent is required hereunder, if (i) a particular remedial action is ordered by a court of competent jurisdiction, (ii) Recipient will or may be subjected to civil or criminal sanctions or penalties if it fails to take a required action; (iii) Recipient establishes to the reasonable satisfaction of the City that there is no reasonable alternative to such remedial action which would result in less impairment of the City's security hereunder; or (iv) the action has been agreed to by the City.

Recipient hereby acknowledges and agrees that (i) this Section is intended as the City's written request for information (and Recipient's response) concerning the environmental condition of the Property as required by California Code of Civil Procedure Section 726.5, and (ii) each representation and warranty in this Agreement (together with any indemnity obligation applicable to a breach of any such representation and warranty) with respect to the #10..
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environmental condition of the Property is intended by the Parties to be an “environmental provision” for purposes of California Code of Civil Procedure Section 736.

In the event that any portion of the Property is determined to be “environmentally impaired” (as that term is defined in California Code of Civil Procedure Section 726.5(e)(3)) or to be an “affected parcel” (as that term is defined in California Code of Civil Procedure Section 726.5(e)(1)), then the City may elect to exercise its rights under California Code of Civil Procedure Section 726.5(a) to (1) waive its lien on such environmentally impaired or affected portion of the Property and (2) exercise (i) the rights and remedies of an unsecured creditor, including reduction of its claim against the Recipient to judgment, and (ii) any other rights and remedies permitted by law. For purposes of determining the City's right to proceed as an unsecured creditor under California Code of Civil Procedure Section 726.5(a), the Recipient shall be deemed to have willfully permitted or acquiesced in a release or threatened release of Hazardous Materials, within the meaning of California Code of Civil Procedure Section 726.5(d)(1), if the release or threatened release of Hazardous Materials was knowingly or negligently caused or contributed to by any lessee, occupant, or user of any portion of the Property and the Recipient knew or should have known of the activity by such lessee, occupant, or user which caused or contributed to the release or threatened release. All costs and expenses, including (but not limited to) attorneys' fees, incurred by the City in connection with any action commenced under this paragraph, including any action required by California Code of Civil Procedure Section 726.5(b) to determine the degree to which the Property is environmentally impaired, plus interest thereon at the lesser of ten percent (10%) and the maximum rate permitted by law, until paid, shall be due and payable to the City upon its demand made at any time following the conclusion of such action.

Section 4.6 Maintenance and Damage.

During the course of both construction and operation of the Project, Recipient shall maintain the Property and the Project in good repair and in a neat, clean and orderly condition. If there arises a condition in contravention of this requirement, and if Recipient has not cured such condition within thirty (30) days after receiving a City notice of such a condition, then in addition to any other rights available to the City, the City shall have the right to perform all acts necessary to cure such condition, and to establish or enforce a lien or other encumbrance against the Property.

If economically feasible in the City's reasonable judgment after consultation with the Recipient, if any improvement now or in the future on the Property is damaged or destroyed, then Recipient shall, to the extent of available insurance proceeds, diligently undertake to repair or restore such improvement consistent with the plans and specifications approved by the City with such changes as have been approved by the City. Such work or repair shall be commenced no later than the later of one hundred twenty (120) days, or such longer period approved by the City in writing, after the damage or loss occurs or thirty (30) days following receipt of the insurance proceeds, and shall be complete within one (1) year thereafter. Any insurance proceeds collected for such damage or destruction shall be applied to the cost of such repairs or restoration and, if such insurance proceeds shall be insufficient for such purpose, then Recipient shall make up the deficiency.
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Section 4.7 Fees and Taxes.

Recipient shall be solely responsible for payment of all fees, assessments, taxes, charges, and levies imposed by any public authority or utility company with respect to the Property or the Project to the extent owned by Recipient, and shall pay such charges prior to delinquency.

However, Recipient shall not be required to pay and discharge any such charge so long as (a) the legality thereof is being contested diligently and in good faith and by appropriate proceedings, and (b) if requested by the City, Recipient deposits with the City any funds or other forms of assurance that the City in good faith from time to time determines appropriate to protect the City from the consequences of the contest being unsuccessful.

Section 4.8 Notice of Litigation.

Recipient shall promptly notify the City in writing of any litigation which has the potential to materially affect Recipient or the Property and of any claims or disputes that involve a material risk of such litigation.

Section 4.9 Nondiscrimination.

Recipient shall not restrict the rental, sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the Property, or any portion thereof, on the basis of race, color, religion, creed, sex, sexual orientation, disability, marital status, ancestry, or national origin of any person. Recipient covenants for itself and all persons claiming under or through it, and this Agreement is made and accepted upon and subject to the condition that there shall be no discrimination against or segregation of any person or group of persons on account of any basis listed in subdivision (a) or (d) of Section 12955 of the Government Code, as those bases are defined in Sections 12926, 12926.1, subdivision (m) and paragraph (1) of subdivision (p) of Section 12955, and Section 12955.2 of the Government Code, in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the Property or part thereof, nor shall Recipient or any person claiming under or through Recipient establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees in, of, or for the Property or part thereof. Recipient shall include such provision in all deeds, leases, contracts and other instruments executed by Recipient, and shall enforce the same diligently and in good faith. The foregoing covenant shall run with the land. If and for so long as the Project is assisted with Section 8 Project-based vouchers, the Recipient may apply such tenant selection standards as are permitted under the Section 8 Project-based voucher program regulations.

Section 4.10 Operation of Project. Promptly after completion of construction, the Recipient shall operate the Property and the Shelter as a shelter for homeless individuals and families for not less than a period of three (3) years consistent with (i) the ESG Regulations, (ii) the Regulatory Agreement, and (iii) any other regulatory requirements imposed on Recipient.

Section 4.11 Insurance Requirements.

The Recipient shall maintain the following insurance coverage throughout the Term of the Grant:
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Worker's Compensation insurance to the extent required by law, including Employer's Liability coverage, with limits not less than One Million Dollars ($1,000,000) each accident.

Comprehensive General Liability insurance with limits not less than One Million Dollars ($1,000,000) each occurrence combined single limit for Bodily Injury and Property Damage, including coverages for Contractual Liability, Personal Injury, Broadform Property Damage, Products and Completed Operations.

Comprehensive Automobile Liability insurance with limits not less than One Million Dollars ($1,000,000) each occurrence combined single limit for Bodily Injury and Property Damage, including coverages for owned, non-owned and hired vehicles, as applicable.

Builders' risk insurance during the course of the construction, and, upon completion of construction, property insurance covering the Project, in form appropriate for the nature of such property, covering all risks of loss, excluding earthquake, for one hundred percent (100%) of the replacement value, with deductible, if any, acceptable to the City, naming the City as a Loss Payee, as its interests may appear. Flood insurance shall be obtained if required by applicable federal regulations.

Property insurance covering the Property, in form appropriate for the nature of such property, covering all risks of loss, excluding earthquake, for one hundred percent (100%) of the replacement value, with deductible, if any, acceptable to the City, naming the City as a Loss Payee, as its interests may appear. Flood insurance shall be obtained if required by applicable federal regulations.

Commercial crime insurance covering all officers and employees, for loss of Grant proceeds caused by dishonesty, in an amount not less than the amount of the Grant, naming the City as a Loss Payee, as its interests may appear.

The Recipient shall cause any general contractor, agent, or subcontractor working on the Project under direct contract with the Recipient or subcontract to maintain insurance of the types and in at least the minimum amounts described in subsections (a), (b), and (c) above, except that the limit of liability for comprehensive general liability insurance for subcontractors shall be One Million Dollars ($1,000,000), and shall require that such insurance shall meet all of the general requirements of subsections (g), (h), and (i) below.

The required insurance shall be provided under an occurrence form, and Recipient shall maintain the coverage described in subsections (a) through (d) continuously throughout the Term. Should any of the required insurance be provided under a form of coverage that includes an annual aggregate limit or provides that claims investigation or legal defense costs be included in such annual aggregate limit, such annual aggregate limit shall be three times the occurrence limits specified above.

Comprehensive and General Liability and Comprehensive Automobile Liability insurance policies shall be endorsed to name as an additional insured the City and its officers, agents, employees and members of the City Council.
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All policies and bonds shall contain (i) the agreement of the insurer to give the County at least thirty (30) days' notice prior to cancellation (including, without limitation, for non-payment of premium) or any material change in said policies (ii) an agreement that such policies are primary and non-contributing with any insurance that may be carried by the City; (iii) a provision that no act or omission of the Recipient shall affect or limit the obligation of the insurance carrier to pay the amount of any loss sustained; and (iv) a waiver by the insurer of all rights of subrogation against the City and its authorized parties in connection with any loss or damage thereby insured against.

Section 4.12 Anti-Lobbying Certification.

The Recipient certifies, to the best of Recipient's knowledge or belief, that:

No Federal appropriated funds have been paid or will be paid, by or on behalf of it, to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal grant or loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement; If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, grant, loan, or cooperative agreement, it will complete and submit Standard Form-LLL, Disclosure Form to Report Lobbying, in accordance with its instructions.

This certification is a material representation of fact upon which reliance was placed when this Agreement was made or entered into. Submission of this certification is a prerequisite for making or entering into this Agreement imposed by Section 1352, Title 31, U.S. Code. Any person who fails to file the required certification shall be subject to a civil penalty of not less than Ten Thousand Dollars ($10,000) and no more than One Hundred Thousand Dollars ($100,000) for such failure.

Section 4.13 Payment of Other Indebtedness; Notice of Defaults.

Recipient shall promptly pay the principal and interest when due on any other indebtedness related to the Project. Recipient shall promptly notify the City in writing of any defaults declared under any other financing for the Project by the lender of such financing.

Section 4.13 Prevailing Wage Requirements. To the extent, and if, required by applicable federal and state laws, rules and regulations, Developer and its contractors and agents shall comply with California Labor Code Section 1720 et seq. and applicable federal labor laws and standards, and the regulations adopted pursuant thereto (“Prevailing Wage Laws”), and shall be responsible for carrying out the requirements of such provisions. Developer shall submit to City a plan for monitoring payment of prevailing wages and shall implement such plan at Developer’s expense.
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Developer shall indemnify, defend (with counsel approved by City) and hold the City, and its officers, officials, employees, agents, consultants, and contractors (collectively, the “Indemnitees”) harmless from and against all liability, loss, cost, expense (including without limitation attorneys’ fees and costs of litigation), claim, demand, action, suit, judicial or administrative proceeding, penalty, deficiency, fine, order, and damage (all of the foregoing collectively “Claims”) which directly or indirectly, in whole or in part, are caused by, arise in connection with, result from, relate to, or are alleged to be caused by, arise in connection with, or relate to, the payment or requirement of payment of prevailing wages or the requirement of competitive bidding in the construction of the Project, the failure to comply with any state or federal labor laws, regulations or standards in connection with this Agreement, including but not limited to the Prevailing Wage Laws, or any act or omission of Developer related to this Agreement with respect to the payment or requirement of payment of prevailing wages or the requirement of competitive bidding, whether or not any insurance policies shall have been determined to be applicable to any such Claims. It is further agreed that City does not and shall not waive any rights against Developer which they may have by reason of this indemnity and hold harmless agreement because of the acceptance by City, or Developer’s deposit with City of any of the insurance policies described in this Agreement. The provisions of this Section shall survive the expiration or earlier termination of this Agreement and the issuance of a Certificate of Completion for the Project. Developer’s indemnification obligations under this Section shall not apply to any Claim which arises as a result of an Indemnitee’s gross negligence or willful misconduct.

ARTICLE 5 REPRESENTATIONS AND WARRANTIES OF RECIPIENT
Section 5.1 Representations and Warranties.

Recipient hereby represents and warrants to the City as follows:

Organization. Recipient is a duly formed California non-profit benefit corporation, validly existing and in good standing under the laws of the State of California and has the power and authority to own its property and carry on its business as now being conducted.

Authority of Recipient. Recipient has full power and authority to execute and deliver this Agreement and to make and accept the borrowings contemplated hereunder, to execute and deliver the Agreement and all other documents or instruments executed and delivered, or to be executed and delivered, pursuant to this Agreement, and to perform and observe the terms and provisions of all of the above.

Authority of Persons Executing Documents. This Agreement and all other documents or instruments executed and delivered, or to be executed and delivered, pursuant to this Agreement have been executed and delivered by persons who are duly authorized to execute and deliver the same for and on behalf of Recipient, and all actions required under Recipient's organizational documents and applicable governing law for the authorization, execution, delivery and performance of this Agreement and all other documents or instruments executed and delivered, or to be executed and delivered, pursuant to this Agreement, have been duly taken.
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Valid Binding Agreements. This Agreement and all other documents or instruments which have been executed and delivered pursuant to or in connection with this Agreement constitute or, if not yet executed or delivered, will when so executed and delivered constitute, legal, valid and binding obligations of Recipient enforceable against it in accordance with their respective terms.

No Breach of Law or Agreement. Neither the execution nor delivery of this Agreement or of any other documents or instruments executed and delivered, or to be executed or delivered, pursuant to this Agreement, nor the performance of any provision, condition, covenant or other term hereof or thereof, will conflict with or result in a breach of any statute, rule or regulation, or any judgment, decree or order of any court, board, commission or agency whatsoever binding on Recipient, or conflict with any provision of the organizational documents of Recipient, or will conflict with or constitute a breach of or a default under any agreement to which Recipient is a party, or will result in the creation or imposition of any lien upon any assets or property of Recipient, other than liens established pursuant hereto.

Compliance With Laws; Consents and Approvals. The construction of the Project will comply with all applicable laws, ordinances, rules and regulations of federal, state and local governments and agencies and with all applicable directions, rules and regulations of the fire marshal, health officer, building inspector and other officers of any such government or agency.

Pending Proceedings. Recipient is not in default under any law or regulation or under any order of any court, board, commission or agency whatsoever, and there are no claims, actions, suits or proceedings pending or, to the knowledge of Recipient, threatened against or affecting Recipient or the Property, at law or in equity, before or by any court, board, commission or agency whatsoever which might, if determined adversely to Recipient, materially affect Recipient's ability to comply with the Grant.

Title to Land. At the time of disbursement of the Grant, Recipient will have good and marketable fee title to the Project and there will exist thereon or with respect thereto no mortgage, lien, pledge or other encumbrance of any character whatsoever other than liens for current real property taxes and liens in favor of the City or approved in writing by the City, including documents associated with the Approved Financing further described in Section

1.1(c) above.

Financial Statements. The financial statements of Recipient and other financial data and information furnished by Recipient to the City fairly and accurately present the information contained therein. As of the date of this Agreement, there has not been any adverse, material change in the financial condition of Recipient from that shown by such financial statements and other data and information.

Sufficient Funds. Recipient holds sufficient funds, binding commitments for sufficient funds, and/or access to borrow sufficient funds to complete the acquisition of the Property and the construction of the Project in accordance with the terms of this Agreement.

Taxes. Recipient and its subsidiaries have filed all federal and other material tax returns and reports required to be filed, and have paid all federal and other material taxes, assessments, fees and other governmental charges levied or imposed upon them or their income #10..
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or the Property otherwise due and payable, except those which are being contested in good faith by appropriate proceedings and for which adequate reserves have been provided in accordance with generally accepted accounting principles. There is no proposed tax assessment against Recipient or any of its subsidiaries that could, if made, be reasonably expected to have a material adverse effect on the Property, liabilities (actual or contingent), operations, condition (financial or otherwise) or prospects of the Recipient and its subsidiaries, taken as a whole, which would be expected to result in a material impairment of the ability of Recipient to perform under any Loan Document to which it is a party, or a material adverse effect upon the legality, validity, binding effect or enforceability against Recipient of any Loan Document.

ARTICLE 6 DEFAULT AND REMEDIES
Section 6.1 Events of Default.

Each of the following shall constitute a “Default” by Recipient under this Agreement:
(a) Failure to Construct. Failure of Recipient to commence and complete construction of the Project within the times set forth in Article 3 above; (b) Reserved.
(c) Breach of Covenants. Failure by Recipient to duly perform, comply with, or observe any of the conditions, terms, or covenants of any of this Agreement, and such failure having continued uncured for thirty (30) days after receipt of written notice thereof from the City to the Recipient or, if the breach cannot be cured within thirty (30) days, the Recipient shall not be in breach so long as Recipient is diligently undertaking to cure such breach and such breach is cured within ninety (90) days; provided, however, that if a different period or notice requirement is specified under any other section of this Article 6, the specific provisions shall control.
(d) Default Under Other Loans. A default is declared under any other financing for the Project by the lender of such financing and such default remains uncured following any applicable notice and cure period.
(e) Insolvency. A court having jurisdiction shall have made or entered any decree or order (i) adjudging Recipient or Recipient's general partner, if Recipient is a partnership, or Recipient's managing member, if Recipient is a limited liability company, to be bankrupt or insolvent, (ii) approving as properly filed a petition seeking reorganization of Recipient or Recipient's general partner, if Recipient is a partnership, or Recipient's managing member, if Recipient is a limited liability company, or seeking any arrangement for Recipient or Recipient's general partner, if Recipient is a partnership, or Recipient's managing member, if Recipient is a limited liability company, under the bankruptcy law or any other applicable debtor's relief law or statute of the United States or any state or other jurisdiction, (iii) appointing a receiver, trustee, liquidator, or assignee of Recipient or Recipient's general partner, if Recipient is a partnership, or Recipient's managing member, if Recipient is a limited liability company, in bankruptcy or insolvency or for any of their properties, (iv) directing the winding up or liquidation of Recipient or Recipient's general partner, if Recipient is a partnership, or #10..
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Recipient's managing member, if Recipient is a limited liability company, if any such decree or order described in clauses (i) to (iv), inclusive, shall have continued unstayed or undischarged for a period of ninety (90) calendar days; or (v) Recipient or Recipient's general partner, if Recipient is a partnership, or Recipient's managing member, if Recipient is a limited liability company, shall have admitted in writing its inability to pay its debts as they fall due or shall have voluntarily submitted to or filed a petition seeking any decree or order of the nature described in clauses (i) to (iv), inclusive. .
(f) Assignment; Attachment. Recipient shall have assigned its assets for the benefit of its creditors or suffered a sequestration or attachment of or execution on any substantial part of its property, unless the property so assigned, sequestered, attached or executed upon shall have been returned or released within ninety (90) calendar days after such event or, if sooner, prior to sale pursuant to such sequestration, attachment, or execution. (g) Suspension; Termination. Recipient shall have voluntarily suspended its business or, if Recipient is a partnership, the partnership shall have been dissolved or terminated, other than a technical termination of the partnership for tax purposes. (h) Liens on Property and the Project. There shall be filed any claim of lien (other than liens approved in writing by the City) against the Project or any part thereof, or any interest or right made appurtenant thereto, or the service of any notice to withhold proceeds of the Grant and the continued maintenance of said claim of lien or notice to withhold for a period of twenty (20) days, without discharge or satisfaction thereof or provision therefor (including, without limitation, the posting of bonds) satisfactory to the City. (i) Condemnation. The condemnation, seizure, or appropriation of all or the substantial part of the Property and the Project.
(j) Unauthorized Transfer. Any Transfer other than as permitted by Section 4.14.
(k) Representation or Warranty Incorrect. Any Recipient representation or warranty contained in this Agreement, or in any application, financial statement, certificate, or report submitted to the City in connection with this Agreement, proving to have been incorrect in any material respect when made. After issuance of the certificates of occupancy for the Project, Default may be declared under this subsection only if the failure of representation or warranty also has a material adverse effect on the operation of the Project.

Section 6.2 Remedies.

The occurrence of any Default hereunder following the expiration of all applicable notice and cure periods will, either at the option of the City or automatically where so specified, relieve the City of any obligation to make or continue the Grant and shall give the City the right to proceed with any and all remedies set forth in this Agreement, including but not limited to the following:
(a) Repayment. The City shall have the right to cause the Recipient to repay, upon written demand, the Grant within a reasonable period of time, as determined by the City in #10..
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its sole discretion. The City may proceed to enforce repayment of the Grant and to exercise any or all rights afforded to the City.
(b) Specific Performance. The City shall have the right to mandamus or other suit, action or proceeding at law or in equity to require Recipient to perform its obligations and covenants under the Agreement or to enjoin acts on things which may be unlawful or in violation of the provisions of the Agreement.
(c) Right to Cure at Recipient's Expense. The City shall have the right (but not the obligation) to cure any monetary default by Recipient under a loan other than the Grant.

The Recipient agrees to reimburse the City for any funds advanced by the City to cure a monetary default by Recipient upon demand therefor, together with interest thereon at the lesser of the maximum rate permitted by law and ten percent (10%) per annum (the “Default Rate”) from the date of expenditure until the date of reimbursement.

Section 6.3 Right of Contest.

Recipient shall have the right to contest in good faith any claim, demand, levy, or assessment the assertion of which would constitute a Default hereunder. Any such contest shall be prosecuted diligently and in a manner unprejudicial to the City or the rights of the City hereunder.

Section 6.4 Remedies Cumulative.

No right, power, or remedy given to the City by the terms of this Agreement is intended to be exclusive of any other right, power, or remedy; and each and every such right, power, or remedy shall be cumulative and in addition to every other right, power, or remedy given to the City by the terms of any such instrument, or by any statute or otherwise against Recipient and any other person. Neither the failure nor any delay on the part of the City to exercise any such rights and remedies shall operate as a waiver thereof, nor shall any single or partial exercise by the City of any such right or remedy preclude any other or further exercise of such right or remedy, or any other right or remedy.

ARTICLE 7 GENERAL PROVISIONS
Section 7.1 Relationship of Parties.

Nothing contained in this Agreement shall be interpreted or understood by any of the Parties, or by any third persons, as creating the relationship of employer and employee, principal and agent, limited or general partnership, or joint venture between the City and Recipient or its agents, employees or contractors, and Recipient shall at all times be deemed an independent contractor and shall be wholly responsible for the manner in which it or its agents, or both, perform the services required of it by the terms of this Agreement. Recipient has and retains the right to exercise full control of employment, direction, compensation, and discharge of all persons assisting in the performance of services under the Agreement. In regards to the construction and operation of the Project, Recipient shall be solely responsible for all matters relating to payment of its employees, including compliance with Social Security, withholding, and all other laws and regulations governing such matters, and shall include requirements in each #10..
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contract that contractors shall be solely responsible for similar matters relating to their employees. Recipient shall be solely responsible for its own acts and those of its agents and employees.

Section 7.2 No Claims.

Nothing contained in this Agreement shall create or justify any claim against the City by any person that Recipient may have employed or with whom Recipient may have contracted relative to the purchase of materials, supplies or equipment, or the furnishing or the performance of any work or services with respect to the purchase of the Property, the construction or operation of the Project, and Recipient shall include similar requirements in any contracts entered into for the construction or operation of the Project.

Section 7.3 Amendments.

No alteration or variation of the terms of this Agreement shall be valid unless made in writing by the Parties. The City Manager is authorized to execute on behalf of the City amendments to this Agreement as long as any material change in the amount or terms of this Agreement is approved by the City Council, or in the event the amounts or terms of financing provided by other parties for the Project is revised, requiring conforming amendments to this Agreement.

Section 7.4 Indemnification.

The Recipient shall indemnify, defend and hold the City harmless against any and all claims, suits, actions, losses and liability of every kind, nature and description made against it and expenses (including reasonable attorneys' fees) which arise out of or in connection with this Agreement, including but not limited to the purchase of the Property, development, construction, marketing and operation of the Project, except to the extent such claim arises from the grossly negligent or willful misconduct of the City, its agents, and its employees. The provisions of this Section shall survive the expiration of the Term.

Section 7.5 Non-Liability of City Officials, Employees and Agents.

No member, official, employee or agent of the City shall be personally liable to Recipient in the event of any default or breach by the City or for any amount which may become due to Recipient or its successor or on any obligation under the terms of this Agreement.

Section 7.6 No Third Party Beneficiaries.

There shall be no third party beneficiaries to this Agreement.

Section 7.7 Discretion Retained By City.

The City's execution of this Agreement in no way limits the discretion of the City in the permit and approval process in connection with development of the Project.

Section 7.8 Conflict of Interest.
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Except for approved eligible administrative or personnel costs, no person described in Section 7.8(b) below who exercises or has exercised any functions or responsibilities with respect to the activities funded pursuant to this Agreement or who is in a position to participate in a decision-making process or gain inside information with regard to such activities, may obtain a personal or financial interest or benefit from the activity, or have an interest in any contract, subcontract or agreement with respect thereto, or the proceeds thereunder, either for themselves or those with whom they have family or business ties, during, or at any time after, such person's tenure. Recipient shall exercise due diligence to ensure that the prohibition in this Section 7.8(a) is followed.

The conflict of interest provisions of Section 7.8(a) above apply to any person who is an employee, agent, consultant, officer, or any immediate family member of such person, or any elected or appointed official of the City, or any person related within the third (3rd) degree of such person.

In accordance with Government Code Section 1090 and the Political Reform Act, Government Code section 87100 et seq., no person who is a director, officer, partner, trustee or employee or consultant of the Recipient, or immediate family member of any of the preceding, shall make or participate in a decision, made by the City or a City board, commission or committee, if it is reasonably foreseeable that the decision will have a material effect on any source of income, investment or interest in real property of that person or Recipient.

Interpretation of this section shall be governed by the definitions and provisions used in the Political Reform Act, Government Code Section 87100 et seq., its implementing regulations manual and codes, and Government Code Section 1090.

The Recipient shall comply with the conflict of interest provisions set forth in 24 CFR Section 576.404.

Section 7.9 Notices, Demands and Communications.

Formal notices, demands, and communications between the Parties shall be sufficiently given if and shall not be deemed given unless dispatched by registered or certified mail, postage prepaid, return receipt requested, or delivered by express delivery service, return receipt requested, or delivered personally, to the principal office of the Parties as follows:

City: City of Modesto
1010 10th Street
P. O. Box 642
Modesto, CA 95353
Attention: Community Development Manager
Recipient: STANCO
[Address]
[Address]
Oakland CA 94613
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Such written notices, demands and communications may be sent in the same manner to such other addresses as the affected Party may from time to time designate by mail as provided in this Section. Receipt shall be deemed to have occurred on the date shown on a written receipt as the date of delivery or refusal of delivery (or attempted delivery if undeliverable).

Section 7.10 Applicable Law.

This Agreement shall be governed by and construed in accordance with California law.

Section 7.11 Parties Bound.

Except as otherwise limited herein, the provisions of this Agreement shall be binding upon and inure to the benefit of the Parties and their heirs, executors, administrators, legal representatives, successors, and assigns. This Agreement is intended to run with the land and shall bind Recipient and its successors and assigns in the Property and the Project for the entire Term, and the benefit hereof shall inure to the benefit of the City and its successors and assigns.

Section 7.12 Attorneys' Fees.

If any lawsuit is commenced to enforce any of the terms of this Agreement, the prevailing Party will have the right to recover its reasonable attorneys' fees and costs of suit from the other Party.

Section 7.13 Severability.

If any term of this Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remainder of the provisions shall continue in full force and effect unless the rights and obligations of the Parties have been materially altered or abridged by such invalidation, voiding or unenforceability.

Section 7.14 Force Majeure.

In addition to specific provisions of this Agreement, performance by either Party shall not be deemed to be in Default where delays or defaults are due to war, insurrection, strikes, lockouts, riots, floods, earthquakes, fires, quarantine restrictions, freight embargoes, lack of transportation, or court order. An extension of time for any cause will be deemed granted if notice by the Party claiming such extension is sent to the other within ten (10) days from the commencement of the cause and such extension of time is not rejected in writing by the other Party within ten (10) days of receipt of the notice. In no event shall the City be required to agree to cumulative delays in excess of one hundred eighty (180) days.

Section 7.15 City Approval.

The City has authorized the City Manager to execute the Agreement and deliver such approvals or consents as are required by this Agreement, and to execute estoppel certificates concerning the status of the Grant and the existence of Recipient defaults under the Agreement.

Any consents or approvals required under this Agreement shall not be unreasonably withheld or #10..
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made, except where it is specifically provided that a sole discretion standard applies. The City shall not unreasonably delay in reviewing and approving or disapproving any proposal by Recipient made in connection with this Agreement.

Section 7.16 Waivers.

Any waiver by the City of any obligation or condition in this Agreement must be in writing. No waiver will be implied from any delay or failure by the City to take action on any breach or default of Recipient or to pursue any remedy allowed under this Agreement or applicable law. Any extension of time granted to Recipient to perform any obligation under this Agreement shall not operate as a waiver or release from any of its obligations under this Agreement. Consent by the City to any act or omission by Recipient shall not be construed to be a consent to any other or subsequent act or omission or to waive the requirement for the City's written consent to future waivers.

Section 7.17 Title of Parts and Sections.

Any titles of the sections or subsections of this Agreement are inserted for convenience of reference only and shall be disregarded in interpreting any part of the Agreement's provisions.

Section 7.18 Entire Understanding of the Parties
This Agreement constitutes the entire understanding and agreement of the Parties with respect to the Grant.

Section 7.19 Multiple Originals; Counterpart.

This Agreement may be executed in multiple originals, each of which is deemed to be an original, and may be signed in counterparts.
[Signature Page Follows]
WHEREAS, this Agreement has been entered into by the undersigned as of the date first above written.

Stanialaus County Affordable Housing Corporation
By: ________________________________

Title: ________________________________
By: ________________________________

Title: ________________________________
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City of Modesto
By: _______________________________
Joseph P. Lopez, City Manager
ATTEST:

By:

Dana Sanchez, Acting City Clerk
(SEAL)

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APPROVED AS TO LEGAL FORM
By: _______________________________
Jose M. Sanchez, City Attorney
APPROVED AS TO RISK MANAGEMENT:

By:

Risk Manager
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EXHIBIT A

LEGAL DESCRIPTION OF THE PROPERTY
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2 EXHIBIT B

PROJECT SUMMARY
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EXHIBIT C

APPROVED PROJECT BUDGET
Repair Justification Cost
Replace roof/ install rain gutters Energy and Extend Roof Life $28,882 Replace HVAC system Energy and Replace Dated
Equipment
$14,375
Repair and Paint Exterior Significant Wear/Weather
Proofing
$29,281
Replace Sidewalk and Driveway Tripping Hazard $14,676
Repair Porch Landing and Rails Deterioration $4,800
Replace Floor Coverings Worn due to Excessive Use $27,900 Renovate Bathrooms Age/Water Conservation $6,700
Refurbish Landscaping Repair and Replace after
exterior work
$1,200
Design, Development, and Overhead $41,563
Contingency $16,623
Total $186,000
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2 EXHIBIT D

FEDERAL AWARD IDENTIFICATION INFORMATION
i) Participant’s name:
ii) Participant’s DUNS:
iii) Federal Award Identification Number (FAIN):
iv) Federal Award Date:
v) Subaward Period of Performance Start and End Date:
vi) Amount of Federal Funds Obligated by this action by the CITY entity to the Participant:
$500,000 Entitlement Grant Funds
vii) Total Amount of Federal Funds Obligated to the Participant by the CITY including the current obligation:
viii) Total Amount of the Federal Award committed to the Participant by the CITY:
ix) Federal award project description, as required to be responsive to the Federal Funding Accountability and Transparency Act (FFATA):

See Exhibit B Project Summary
x) Name of Federal awarding agency:

US Department of Housing and Urban Development
xi) Contact information for CITY official responsible for awarding funding:

Community Development Manager 1010 10th Street, Ste 3100, Modesto CA 95354 xii) CFDA Number and Name:
14-218 Community Development Block Grant/Entitlement
xiii) Identification of whether the award is R&D:

Not Applicable
xiv) Indirect cost rate for the Federal award (including if the de minimis rate is charged per 2 CFR 200.414 Indirect (F&A) costs):

Not Applicable
5071572.1
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5071640.1

RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:

City of Modesto
1010 10th Street
P. O. Box 642
Modesto, CA 95353
Attention: Jessica Narayan - CEDD
No fee for recording pursuant to
Government Code Section 27383
__________________________________________________________________________ APN: _________

REGULATORY AGREEMENT AND

DECLARATION OF RESTRICTIVE COVENANTS
(1109 and 1113 5th Street)
This Regulatory Agreement and Declaration of Restrictive Covenants (this “Agreement”) is entered into as of ________ __, 2020, by and between the City of Modesto, a California charter city (the “City”) and Stanislaus County Affordable Housing Corporation, a California non-profit corporation (the “Recipient”). City and Recipient are collectively referred to herein as the “Parties.”

RECITALS

1. City and Recipient have entered into a certain grant agreement pursuant to which the City granted to Recipient One Hundred Eighty Six Thousand Dollars ($186,000) (the “Grant”) ($558,475) (the “Grant”).

2. The Grant was both funded with Emergency Solutions Grant (“ESG”) program funds received by the City from HUD pursuant to Subtitle B of Title IV of the Stewart B.

McKinney Homeless Assistance Act, as amended.

3. Recipient owns fee simple title to the land located at 512 Vine Street, Modesto, California, known as Stanislaus County Assessor’s Parcel Number ______________, as more particularly described in Exhibit A attached hereto and incorporated herein by this reference (the “Property”). Recipients owns and operates an intensive two-story, 2,230 square foot, short-term shelter on the Property for homeless individuals (the “Shelter”). The Shelter serves individuals who qualify as “homeless” pursuant to 24 CFR 576.2.

4. The City has provided Grant in order to assist Recipient in making certain improvements to the Shelter and Property, as more particularly described in Grant Agreement (the “Project”).
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5. In consideration of receipt of the Grant, the Recipient agrees to observe all the terms and conditions set forth in this Agreement.

ARTICLE 1

DEFINITIONS

1.1 Definitions.

When used in this Agreement, the following terms shall have the respective meanings assigned to them in this Article 1:
(a) “ESG” means the Emergency Solutions Grant program under Subtitle B of Title IV of the Stewart B. McKinney Homeless Assistance Act (42 U.S.C. 11371-11378), as amended.
(b) “ESG Regulations” means the statutory and regulatory provisions that govern the ESG program under Subtitle B of Title IV of the Stewart B. McKinney Homeless Assistance Act (42 U.S.C. 11371-11378) and as amended including 24 C.F.R. Part 576 et seq. (c) “Grant” means all funds granted to the Recipient by the City pursuant to the Grant Agreement.
(d) “Grant Agreement” means the Grant Agreement between Recipient and City, dated of even date herewith, evidencing the Grant. (e) “HUD” means the United States Department of Housing and Urban Development.
(f) “Homeless” has the same meaning as that term is defined in 24 CFR 576.2, as amended from time to time.
(g) “Official Records” means the official land records of the County of Stanislaus, California
(h) “Property” means the property described in the attached Exhibit A. (i) “Term” means the term of this Agreement, which shall commence on the date of this Agreement and shall expire three (3) years from the date the Project is completed, but in no event later than December 31, 2026.

ARTICLE 2

OPERATION OF PROJECT
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2.1 Permitted Use.

The Property, and the improvements thereon, shall be used and maintained as a shelter for Homeless individuals and families, along with other compatible and related accessory uses.

The Property shall not be used for any other purpose without the prior written consent of the City.

2.2 Compliance with Grant.

Recipient shall comply with all the terms and provisions of the Grant.

2.3 Fair Housing.

The Property shall be operated at all times in compliance with the provisions of: (i) the Unruh Act; (ii) the California Fair Employment and Housing Act, (iii) Section 504 of the Rehabilitation Act of 1973; (iv) the United States Fair Housing Act, as amended, and (v) any other applicable law or regulation (including the Americans With Disabilities Act, to the extent applicable to the Property). Recipient agrees to indemnify, protect, hold harmless and defend (by counsel reasonably satisfactory to City) City, and its council members, officers and employees, from all suits, actions, claims, causes of action, costs, demands, judgments and liens arising out of Recipient's failure to comply with applicable legal requirements related to housing for persons with disabilities. The provisions of this subsection shall survive expiration of the Term or other termination of this Agreement, and shall remain in full force and effect.

ARTICLE 3

REPORTING

3.1 Annual Report to City.

Recipient shall submit to the City annual reports in a form approved by the City, no later than sixty (60) days after the end of Recipient's fiscal year. The reports shall contain such information as the City may require, including, but not limited to, the following:
(a) All information required by 24 CFR 576.500, as amended from time to time.
(b) A statistical report regarding the individuals served at the Project. (c) A statement of the fiscal condition of the Property, including a financial statement indicating surpluses or deficits in operating accounts, a detailed itemized listing of income and expenses, and the amounts of any fiscal reserves. The report due after the end of each fiscal year shall contain an audited version of this statement. Such audit shall be prepared in accordance with the requirements of the City and certified at the Property's expense by an independent Certified Public Accountant licensed by the State of California. #10..
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(d) The substantial physical defects in the Property, if any, including a description of any major repair or maintenance work undertaken in the reporting period.

Within fifteen (15) days after receipt of a written request from the City, Recipient shall also submit, any other information or completed forms requested by the City in order to comply with reporting requirements of HUD (provided, however, that the Recipient shall in no event be obligated to provide any information that it cannot legally obtain as a housing provider), the State of California or any other government entity or lender to Recipient.

3.2 Additional Information.

The Recipient shall provide any additional information reasonably requested by the City.

The City shall have the right to examine and make copies of all books, records or other documents of the Recipient that pertain to the Property.

3.3 Records.

The Recipient shall maintain complete, accurate and current records pertaining to the Property and all those records set forth in the Grant Agreement, and shall permit any duly authorized representative of the City to inspect records.

3.4 On-site Inspection.

The City shall have the right to perform an on-site inspection of the Project, when deemed necessary by the City, at least one time per year. The Recipient agrees to cooperate in such inspection and request tenants cooperate with such inspections.

ARTICLE 4
TAXES

4.1 Taxes and Assessments.

Recipient shall pay all real and personal property taxes, assessments and charges and all franchise, income, employment, old age benefit, withholding, sales, and other taxes assessed against it, or payable by it, at such times and in such manner as to prevent any penalty from accruing, or any lien or charge from attaching to the Property; provided, however, that Recipient shall have the right to contest in good faith, any such taxes, assessments, or charges. In the event Recipient exercises its right to contest any tax, assessment, or charge against it, Recipient, on final determination of the proceeding or contest, shall immediately pay or discharge any decision or judgment rendered against it, together with all costs, charges and interest.

4.2 Property Tax Exemption.

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provision of law except California Revenue and Taxation Section 214(g), without the prior written consent of the City.

ARTICLE 5

PROPERTY MANAGEMENT AND MAINTENANCE

5.1 Management Responsibilities.

The Recipient is responsible for all management functions with respect to the Property, including without limitation maintenance, landscaping, routine and extraordinary repairs, replacement of capital items, and security. The City shall have no responsibility over management of the Property or the Project. Recipient may retain a professional property management company approved by the City in its reasonable discretion to perform its management duties hereunder (“Management Agent”).

5.2 Management Agent; Periodic Reports.

The Recipient shall submit for the City's approval the identity of any proposed Management Agent and if applicable, the management agreement between Recipient and the Management Agent (the “Management Agreement”). The Recipient shall also submit such additional information about the background, experience and financial condition of any proposed management agent as is reasonably necessary for the City to determine whether the proposed management agent meets the standard for a qualified management agent set forth above. If the proposed management agent meets the standard for a qualified management agent set forth above, the City shall approve the proposed management agent by notifying the Recipient in writing. Unless the proposed management agent and proposed management agreement is disapproved by the City within thirty (30) days, which disapproval shall state with reasonable specificity the basis for disapproval, it shall be deemed approved.

5.3 Periodic Performance Review.

The City reserves the right to conduct an annual (or more frequently, if deemed necessary by the City) review of the management practices and financial status of the Property. The purpose of each periodic review will be to enable the City to determine if the Property is being operated and managed in accordance with the requirements and standards of this Agreement.

The Recipient shall cooperate with the City in such reviews.

5.4 Replacement of Management Agent.

If, as a result of a periodic review, the City determines in its reasonable judgment that the Property is not being operated and managed in accordance with any of the material requirements and standards of this Agreement, or, if applicable, the Management Agreement, the City shall deliver notice to Recipient of its determination that the Property does not satisfy the requirements of this Agreement, such notice may include a request to cause replacement of the Management Agent, including the reasons therefor. Within fifteen (15) days after receipt by Recipient of such #10..
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written notice, City staff and the Recipient shall meet in good faith to consider methods for improving the financial and operating status of the Property, including, without limitation, replacement of the Management Agent.

5.5 Property Maintenance.

The Recipient agrees, for the entire Term of this Agreement, to maintain all interior and exterior improvements, including landscaping, on the Property in good condition and repair (and, as to landscaping, in a healthy condition) and in accordance with all applicable laws, rules, ordinances, orders and regulations of all federal, state, municipal, and other governmental agencies and bodies having or claiming jurisdiction and all their respective departments, bureaus, and officials, and in accordance with the maintenance conditions in this Section.

The Recipient shall, for the entire Term of this Agreement, maintain all interior and exterior improvements, including landscaping, on the Property in good condition and repair (and, as to landscaping, in a healthy condition) and in accordance with all applicable laws, rules, ordinances, orders and regulations of all federal, state, county, municipal, and other governmental agencies and bodies having or claiming jurisdiction and all their respective departments, bureaus, and officials, and in accordance with the following maintenance conditions:
(a) Landscaping. The Recipient shall have landscape maintenance performed on a regular basis, including replacement of dead or diseased plants with comparable plants.

Recipient agrees to adequately water the landscaping on the Property. No improperly maintained landscaping on the Property is to be visible from public streets and/or rights of way; (b) Yard Area. Recipient shall not leave any yard areas on the Property unmaintained, including:
(1) broken or discarded furniture, appliances and other, household equipment stored in yard areas for a period exceeding one (1) week; (2) packing boxes, lumber trash, dirt and other debris in areas visible from public property or neighboring properties; and
(3) vehicles parked or stored in other than approved parking areas. (c) Building. The Recipient shall not leave any buildings located on the Property in an unmaintained condition so that any of the following exist:
(1) violations of state law, uniform codes, or City ordinances; (2) conditions that constitute an unsightly appearance that detracts from the aesthetics or value of the Property or constitutes a private or public nuisance; (3) broken windows;
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(4) graffiti (must be removed within 72 hours); and
(5) conditions constituting hazards and/or inviting trespassers, or malicious mischief.
(d) Sidewalks. The Recipient shall maintain, repair, and replace as necessary all public sidewalks adjacent to the Development.

The City places prime importance on quality maintenance to protect its investment and to ensure that all City and City-assisted affordable housing projects within the City are not allowed to deteriorate due to below-average maintenance. Normal wear and tear of the Property will be acceptable to the City assuming the Recipient agrees to provide all necessary improvements to assure the Property is maintained in good condition. The Recipient shall make all repairs and replacements necessary to keep the improvements in good condition and repair.

In the event that the Recipient breaches any of the covenants contained in this Section and such default continues for a period of seven (7) days after written notice from the City with respect to graffiti, debris, waste material, and general maintenance or thirty (30) days after written notice from the City with respect to landscaping and building improvements, then the City, in addition to whatever other remedy it may have at law or in equity, shall have the right to enter upon the Property and perform or cause to be performed all such acts and work necessary to cure the default. Pursuant to such right of entry, the City shall be permitted (but is not required) to enter upon the Property and perform all acts and work necessary to protect, maintain, and preserve the improvements and landscaped areas on the Property, and to attach a lien on the Property, or to assess the Property, in the amount of the expenditures arising from such acts and work of protection, maintenance, and preservation by the City and/or costs of such cure, including a ten percent (10%) administrative charge, which amount shall be promptly paid by the Recipient to the City upon demand.
(e) Safety Conditions. The Recipient acknowledges that the City places a prime importance on the security of City-assisted projects and the safety of the residents and surrounding community. The Recipient shall implement and maintain throughout the Term the following security measures in the Development:
(1) to the extent feasible employ defensible space design principles and crime prevention measures in the operation of the Development including, but not limited to, maintaining adequate lighting in parking areas and pathways; (2) use its best efforts to work with the City Police Department to implement and operate an effective neighborhood watch program; and (3) provide added security including dead-bolt locks for every entry door, and where entry doors are damaged, replace them with solid-core doors. #10..
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(f) The City shall have the right to enter on the Property and/or contact the City Police Department if it becomes aware of, or is notified of, any conditions that pose a danger to the peace, health, welfare or safety of the Tenants and/or the surrounding community, and to perform, or cause to be performed, such acts as are necessary to correct the condition.

ARTICLE 6

MISCELLANEOUS

6.1 Nondiscrimination.
(a) The Property shall be operated at all times in compliance with the provisions of: (i) the Unruh Act; (ii) the California Fair Employment and Housing Act; (iii) Section 504 of the Rehabilitation Act of 1973; (iv) the Fair Housing Act, as amended; and (v) any other applicable law or regulation (including the Americans With Disabilities Act, to the extent applicable to the Property). Recipient shall agree to indemnify, protect, hold harmless and defend (with counsel reasonably satisfactory to City) City, and its board members, officers and employees, from all suits, actions, claims, causes of action, costs, demands, judgments and liens arising out of Recipient's failure to comply with applicable legal requirements related to housing for persons with disabilities. The provisions of this subsection will survive expiration of the Term or other termination of this Agreement, and remain in full force and effect.

6.2 Term.

The terms of this Agreement shall expire three (3) years from the completion of construction of the Project, but in no event later than December 31, 2026. This Agreement shall bind any successor, heir or assign of the Recipient, whether a change in interest occurs voluntarily or involuntarily, by operation of law or otherwise, except as expressly released by the City. The City makes the Grant on the condition, and in consideration of, this provision, and would not do so otherwise.

6.3 Compliance with Program Requirements.

Recipient actions with respect to the Property shall at all times be in full conformity with:
(i) all requirements of the Grant Agreement all requirements imposed on projects assisted under the ESG Program as contained in the ESG Regulations and other implementing rules and regulations. Without limiting the forgoing, Recipient, and Recipient's employees, agents, officers, and board members shall comply with the conflict of interest requirements set forth in 24 CFR Section 576.404.

6.4 Covenants to Run With the Land.

The City and the Recipient hereby declare their express intent that the covenants and restrictions set forth in this Agreement shall run with the land, and shall bind all successors in title to the Property, provided, however, that on the expiration of the Term of this Agreement said covenants and restrictions shall expire. Each and every contract, deed or other instrument #10..
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hereafter executed covering or conveying the Property or any portion thereof, shall be held conclusively to have been executed, delivered and accepted subject to such covenants and restrictions, regardless of whether such covenants or restrictions are set forth in such contract, deed or other instrument, unless the City expressly releases such conveyed portion of the Property from the requirements of this Agreement. Notwithstanding the automatic expiration of this Agreement set forth above, upon the expiration of the Term, the Parties hereby agree to execute and record in the Official Records such document(s) as may be necessary to evidence the termination and release of this Agreement as an encumbrance against the Property.

6.5 Enforcement by the City.

Subject to the notice and cure rights set forth in the Grant Agreement, if the Recipient fails to perform any obligation under this Agreement, and fails to cure the default within thirty (30) days after the City has notified the Recipient in writing of the default or, if the default cannot be cured within thirty (30) days, failed to commence to cure within thirty (30) days and thereafter diligently pursue such cure and complete such cure within ninety (90) days, the City shall have the right to enforce this Agreement by any or all of the following actions, or any other remedy provided by law:
(a) Action to Compel Performance or for Damages. The City may bring an action at law or in equity to compel the Recipient's performance of its obligations under this Agreement, for damages, or for injunctive relief.
(b) Remedies Provided Under Grant Agreement or Deed of Trust. The City may exercise any other remedy provided under the Grant Agreement or Deed of Trust. (c) Special Remedy for Breach of Use Requirement. Pursuant to 24 C.F.R. 570.503(b)(7)(ii), if Recipient substantially changes the use of the Property to a use that fails to meet a national objective as defined in 24 C.F.R 570.208, City may require Recipient to pay to City the fair market value of the Property based on an appraisal. Such appraisal shall be performed by an appraiser selected by the City and shall take into consideration the Recipient's new use of the Property (that is not permitted by this Agreement). Funds recovered from Recipient pursuant to this subsection shall be credited: (1) by the City against any remaining amount of the ESG Grant.

6.6 Attorneys Fees and Costs.

In any action brought to enforce this Agreement, the prevailing party shall be entitled to all costs and expenses of suit, including attorneys' fees. This Section shall be interpreted in accordance with California Civil Code Section 1717 and judicial decisions interpreting that statute.

6.7 Recording and Filing.

The City and the Recipient shall cause this Agreement, and all amendments and supplements to it, to be recorded in the Official Records. #10..
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6.8 Governing Law.

This Agreement shall be governed by the laws of the State of California.

6.9 Waiver of Requirements.

Any of the requirements of this Agreement may be expressly waived by the City in writing, but no waiver by the City of any requirement of this Agreement shall, or shall be deemed to, extend to or affect any other provision of this Agreement.

6.10 Amendments.

This Agreement may be amended only by a written instrument executed by all the parties hereto or their successors in title, and duly recorded in the Official Records.

6.11 Notices.

Any notice requirement set forth herein shall be deemed to be satisfied three (3) days after mailing of the notice first-class United States certified mail, postage prepaid, addressed to the appropriate party as follows:

City: City of Modesto
1010 10th Street
P. O. Box 642
Modesto, CA 95353
Attention: Community Development Manager
Recipient: Stanislaus County Affordable Housing Corporation [Address]
[Address]
Attn: Executive Director
Such addresses may be changed by notice to the other party given in the same manner as provided above.

6.12 Severability.

If any provision of this Agreement shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining portions of this Agreement shall not in any way be affected or impaired thereby.

6.13 Multiple Originals; Counterparts.

This Agreement may be executed in multiple originals, each of which is deemed to be an original, and may be signed in counterparts.
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6.14 Revival of Agreement after Foreclosure.

This Agreement shall be revived according to its original terms if, during the original Term, the Recipient of record before the foreclosure, or deed in lieu of foreclosure, or any entity that includes the former Recipient or those with whom the former Recipient has or had family or business ties, obtains an ownership interest in the Property or Project.

6.15 Indemnification.

Recipient shall indemnify, defend and hold the City harmless against all claims made against it and expenses (including reasonable attorneys' fees) which arise out of or in connection with the development, construction, marketing and operation of the Property, except to the extent such claim arises from the grossly negligent or willful misconduct of the City, its agents, and its employees. The provisions of this Section shall survive the expiration of the Term and the reconveyance of the City Deed of Trust.

6.16 Encumbrances.

Recipient shall not encumber the Property, including the granting of commercial leases, or permit the conveyance, transfer or encumbrance of such Property (except by qualified tenants) or to allow the placement of any liens, notes or deeds or use the Property as security for a note or loan except: (i) with the written consent of the City or (ii) upon a sale or transfer of the Property in accordance with the terms of this Regulatory Agreement.

6.17 Subordination Agreement.

If necessary to secure other financing, City may subordinate this Agreement, resulting in this Agreement becoming subject to and of lower priority than the lien of some other security instrument, subject to the conditions to subordination in the Grant Agreement.

6.18 Notice of Litigation.

Recipient shall promptly notify the City in writing of any litigation materially affecting Recipient or the Property and of any claims or disputes that involve a material risk of such litigation.

6.19 ESG Funds.

Upon the expiration of the Agreement, the Recipient shall transfer to the City any remaining ESG funds and any accounts receivable attributable to the use of ESG funds. [Signature Pages Follow]
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IN WITNESS WHEREOF, the City and the Recipient have executed this Agreement by duly authorized representatives, all on the date first written above.

STANISLAUS COUNTY AFFORDABLE
HOUSING CORPORATION:

By:________________________________

Title: ________________________________
By:________________________________

Title: ________________________________
[SIGNATURES MUST BE NOTARIZED]
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CITY OF MODESTO
By: _______________________________
Joseph P. Lopez, City Manager
Date: ______________________________
ATTEST:

By:

Dana Sanchez, Acting City Clerk
(SEAL)

APPROVED AS TO LEGAL FORM
By: _______________________________
Jose M. Sanchez, City Attorney
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ACKNOWLEDGMENT
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

State of California )
County of Stanislaus )
On_____________ before me, _____________________________, Notary Public, , personally appeared, ___________________________________, who proved to me the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under penalty of perjury under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature_____________________________
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B-1
Exhibit A
Legal Description of the Property
5071640.1
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CITY OF MODESTO

COUNCIL AGENDA REPORT
DATE OF MEETING:

March 8, 2022
Date:February 25, 2022
TO: Mayor and City Council
THROUGH: Joseph P. Lopez, City Manager
FROM: Jaylen French, Director of Community and Economic Development SUBJECT: Upstreaming of the remaining ERAP1 funds to the US Treasury to be reallocated to the State of California with a designation for Modesto residents CONTACT: Jessica Hill, Community Development Manager
[email protected], 209-577-5321
DESCRIPTION:

Consider approving the “upstreaming“ of the remaining ERAP1 funds to the US Treasury to be reallocated to the State of California with a designation for Modesto residents in an additional amount of $342,290.29 for a total amount of $2,670,235.34 (Funding Source: US Treasury ERAP1 Funds)
STRATEGIC PLAN ELEMENT:

This item supports the City of Modesto’s 2020-2025 Strategic Plan Goal C: Develop Homelessness and Housing Plan.

BACKGROUND:

On December 21, 2020, Congress passed the Consolidated Appropriations Act of 2021 and the Emergency Rental Assistance Program (ERAP), which made available $25 billion nationwide to assist households that are unable to pay rent and utilities due to the COVID-19 pandemic. The funds were provided directly to States, U.S. Territories, local governments, and Indian tribes.

Grantees will use the funds to provide assistance to eligible households through existing or newly created rental assistance programs.

The U.S. Treasury issued approximately $1.1 billion to California jurisdictions with a population of 200,000 or more and an additional $1.5 billion to the State of California.

The ERAP defines eligible renter households as households with an income up to 80% of area median income (AMI) and meet both of the following criteria to be eligible to receive assistance:
o One or more individuals in the household has qualified for unemployment benefits or can attest in writing that they have experienced a reduction in household income, incurred significant costs, or experienced other financial hardship due to the coronavirus pandemic; and
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City of Modesto, March 8, 2022
Upstreaming of the remaining ERAP1 funds to the US Treasury to be reallocated to the State of California with a designation for Modesto residents

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Modesto City CouncilMarch 8, 2022

Modesto City Council
March 8, 2022