Modesto City Council
February 28, 2023

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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, February 28, 2023 at 5:30 PM
*Roll Call - Councilmembers Alvarez, Bavaro, Escutia-Braaton, Ricci, Williams, Wright, Mayor Zwahlen
* Some Councilmembers may be participating in the meeting remotely via teleconferencing or other electronic means consistent with the AB 361.
“Wordly” can translate into 25+ different languages! To access written translation during the meeting, please scan the QR Code or click this link https://attend.wordly.ai/join/RJDY-6364.
"Wordly" puede traducir a más de 25 idiomas diferentes! Para acceder a la traducción durante la reunión, por favor escanee el código QR o haga clic en el enlace https://attend.wordly.ai/join/RJDY-6364.

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.
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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 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.
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 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.
 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: Pat Nagle, Redeemer
City Clerk’s Announcements
Declaration of Conflicts of Interest

MISCELLANEOUS
Legislation, Appointments, Other

1. Proclamation declaring March 17th through March 27th as CalTrans Community Days “Spring into Action” (Funding Source: Not Applicable)
PUBLIC WORKS; Myriah Hill, 209-577-5495, [email protected]

PUBLIC COMMENT PERIOD
Please refer to the special 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
An item may be removed from consent and discussed at the request of an audience member or Councilmember.

Consent

2. Consider approving the minutes from the February 14, 2023 Council Meeting. (Funding Source: Not Applicable)
Staff Recommendation:
 Motion approving the minutes from the February 14, 2023 Council Meeting.

CITY CLERK; Diane Nayares-Perez, 209-577-5396, [email protected] - 4 -
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Consent

3. Consider approving final adoption of Ordinance 3759-C.S. amending Section 3-

2.1401.1 of Article 14 of Chapter 2 of Title 3 of the Modesto Municipal Code relating to speed limits. (Funding Source: Not Applicable)
Staff Recommendation:
 Motion approving final adoption of Ordinance 3759-C.S. amending Section 3-

2.1401.1 of Article 14 of Chapter 2 of Title 3 of the Modesto Municipal Code relating to speed limits.

CITY CLERK; Diane Nayares-Perez, 209-577-5396, [email protected] Consent

4. Consider terminating the Local Emergency in response to the Novel Coronavirus (COVID-19). (Funding Source: Not Applicable)
Staff Recommendation:
 Resolution terminating the Local Emergency related to the Novel Coronavirus (“COVID-19”).

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

5. Consider supporting a House of Representatives Bill to designate the facility of the United States Postal Service located at 2300 Sylvan Avenue in Modesto, California, as the ‘‘Corporal Michael D. Anderson Jr. Post Office Building”. (Funding Source: Not Applicable)
Staff Recommendation:
 Resolution supporting a House of Representatives (H.R.) Bill that Congressman McClintock will be introducing to Congress to designate the facility of the United States Postal Service located at 2300 Sylvan Avenue in Modesto, California, as the ‘‘Corporal Michael D. Anderson Jr. Post Office Building”.

CITY MANAGER; Andrew Gonzales, 209-571-5809, [email protected] Consent

6. Consider approving the First Amendment for the Mayor’s appointments and formatting changes to the City of Modesto’s City Council Liaison Committees list for the 2023 calendar year. (Funding Source: Not Applicable)
Staff Recommendation:
 Motion approving the changes to the City Council Liaison Committees.

CITY COUNCIL; Ariana Harbottle-Jarrett, 209-571-5597,
[email protected]
Consent

7. Consider approving a Street Name Change from North Franklin Street to Kansas Avenue Extension to comply with Caltrans requirements and the project approval for State Route 132 Phase 1. (Funding Source: Various Funds) Staff Recommendation:
 Resolution approving a Street Name Change from North Franklin Street to Kansas Avenue Extension to comply with Caltrans requirements and the project - 5 -
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approval for State Route 132 Phase 1.

CED; Edwin Borquez, 209-571-5516, [email protected] Consent

8. Consider directing staff to prepare and file the Fiscal Year 2023-24 Engineer’s Annual Report for City of Modesto Landscape Maintenance Assessment District No. 1 (Dry Creek Meadows Subdivisions Nos. 1-6). (Funding Source: Landscape Maintenance Assessment District No. 1)
Staff Recommendation:
 Resolution directing staff to prepare and file the Fiscal Year 2023-24 Engineer’s Annual Report for City of Modesto Landscape Maintenance Assessment District No. 1 (Dry Creek Meadows Subdivisions Nos. 1-6).

CED; Peter Ibrahim, 209-577-5211, [email protected] Consent

9. Consider directing staff to prepare and file the Fiscal Year 2023-24 Engineer’s Annual Report for City of Modesto Landscape Maintenance Assessment District No. 2 (Dry Creek Meadows Subdivisions Nos. 7-10, Creekwood Meadows Subdivision and Yosemite Meadows Subdivisions Units 1 and 2). (Funding Source: Landscape Maintenance Assessment District No. 2)
Staff Recommendation:
 Resolution directing staff to prepare and file the Fiscal Year 2023-24 Engineer’s Annual Report for City of Modesto Landscape Maintenance Assessment District No. 2 (Dry Creek Meadows Subdivisions Nos. 7-10, Creekwood Meadows Subdivision and Yosemite Meadows Subdivisions Units 1 and 2).

CED; Peter Ibrahim, 209-577-5321, [email protected] Consent

10. Consider directing staff to prepare and file the Fiscal Year 2023-24 Engineer’s Annual Report for City of Modesto Shackelford Landscape and Lighting District. (Funding Source: Shackelford Landscape and Lighting District)
Staff Recommendation:
 Resolution directing staff to prepare and file the Fiscal Year 2023-24 Engineer’s Annual Report for City of Modesto Shackelford Landscape and Lighting District.

CED; Peter Ibrahim, 209-577-5321, [email protected], Consent

11. Consider approving the Citywide Risk Assessment prepared by Sjoberg Evashenk Consulting, Inc.. (Funding Source: General Fund)
Staff Recommendation:
 Resolution approving the Citywide Risk Assessment prepared by Sjoberg Evashenk Consulting, Inc..

FINANCE DEPARTMENT; DeAnna Christensen, 209-577-5387,
[email protected]
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Consent

12. Consider approving an increase for purchases from Amazon Business Marketplace pursuant to OMNIA Cooperative Contract with Prince William County Schools for an Online Marketplace for Products by the annual estimated amount of $205,000, for a revised annual estimated cost of $380,000, for a total revised amount not to exceed $2,417,581 over eight years. (Funding Source: Various Funds) Staff Recommendation:
 Resolution approving an increase for purchases from Amazon Business Marketplace pursuant to OMNIA Cooperative Contract with Prince William County Schools for an Online Marketplace for Products by the annual estimated amount of $205,000, for a revised annual estimated cost of $380,000, for a total revised amount not to exceed $2,417,581 over eight years; and authorizing the City Manager or his designee to execute the Participating Addendum.

FINANCE DEPARTMENT; DeAnna Christensen, 209-577-5387,
[email protected]
Consent

13. Consider approving the Award of Proposal and Agreements to Public Financial Management (PFM) Financial Advisors LLC, San Francisco, California, for Municipal Advisory Services and PFM Swap Advisors LLC, San Francisco, California, for Annual Derivative Valuation Report for a total amount not to exceed $900,000 over the six years, rescinding Resolution 2022-335. (Funding Source: Various Funds) Staff Recommendation:
 Resolution approving the Award of Proposal and Agreements to Public Financial Management (PFM) Financial Advisors LLC, San Francisco, California, for Municipal Advisory Services and PFM Swap Advisors LLC, San Francisco, California, for Annual Derivative Valuation Report for a total amount not to exceed $900,000 over the six years, rescinding Resolution 2022- 335; and authorizing the City Manager or his designee to execute the Agreement.

FINANCE DEPARTMENT; Dianne Love, 209-571-5164, [email protected] Consent

14. Consider approving updated pricing for three bid events for Fleet Replacement Vehicles by $110,217. (Funding Source: Fleet Replacement Fund) Staff Recommendation:
 Resolution approving an increase to the amount for the purchase of One LowProfile Dump Truck to Towne Ford Sales, Redwood City, CA by $16,552, increasing the Purchase Order from $99,797 to a new total amount not to exceed $116,349, and authorizing the Purchasing Manager, or her designee, to update the Purchase Order.
 Resolution approving an increase to the amount for the purchase of Seven OneTon Stake Side Dump Trucks to Towne Ford Sales, Redwood City, CA by $64,194, increasing the Purchase Order from $602,868 to a new total amount not to exceed $667,062, and authorizing the Purchasing Manager, or her - 7 -
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designee, to update the Purchase Order.
 Resolution approving an increase to the amount for the purchase of six OneTon Trucks to Towne Ford Sales, Redwood City by $29,471, increasing the Purchase Order from $536,924 to a new total amount not to exceed $566,395, and authorizing the Purchasing Manager, or her designee, to update the Purchase Order.

FINANCE; Dianne Love, 209-571-5614, [email protected] Consent

15. Consider approving the Audited Financial Statements and various audit reports for Fiscal Year 2021-2022, audited by external auditors Hudson Henderson & Company, Inc. for the City’s Annual Comprehensive Financial Report (ACFR), twelve (12) Community Facilities Districts (CFDs), Measure L, Single Audit, and other Miscellaneous Programs and Joint Power Agencies. (Funding Source: Not Applicable) Staff Recommendation:
 Resolution approving the Audited Financial Statements and various audit reports for Fiscal Year 2021-2022 audited by external auditors Hudson Henderson & Company, Inc. for the City’s Annual Comprehensive Financial Report (ACFR), twelve (12) Community Facilities Districts (CFDs) and other Miscellaneous Programs and Joint Power Agencies.
 Resolution approving the audited Fiscal Year 2021-2022 Federal Single Audit report for the City of Modesto from external auditors Hudson Henderson & Company, Inc.
 Resolution approving the Fiscal Year 2021-2022 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

16. Consider approving an increase of the Director’s Authority of contingency amount of $74,455 with Gruendel Inc. DBA Ray’s Electric in an amount not to exceed $148,910 for the Rectangular Rapid Flashing Beacon Installation Project. (Funding Source:

Measure L Road Tax Fund)
Staff Recommendation:
 Resolution approving an increase in the Director’s Authority to issue Change Orders for the Rectangular Rapid Flashing Beacon Installation Project from 10% ($74,455) to 20% ($148,910) of the construction contract price to Gruendel Inc. DBA Ray’s Electric of Oakland, CA in an amount not to exceed $148,910.

PUBLIC WORKS; James Asbhy, 209-571-5116, [email protected] Consent

17. Consider approving the Plans and Specifications for the La Loma Phase 3A Strengthen & Replace Water Mains Project; accepting the Bid and Awarding a Construction Contract to United Pavement Maintenance, Inc., of Hughson, CA, in the amount of - 8 -
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$6,229,282, plus $622,928 for contingency (if needed), for a total amount not to exceed $6,852,210; authorizing the increase in Director’s Authority from 8% ($498,343) to 10% ($622,928) of the construction contract price of $6,229,282 to issue Change Orders; and amending the Fiscal Year 2022-23 Capital Improvement Program Budget in the amount of $2,379,021. (Funding Source: Water Fund) Staff Recommendation:
 Resolution approving Plans and Specifications for the La Loma Phase 3A Strengthen & Replace Water Mains Project, accepting the Bid, and approving a Construction Contract with United Pavement Maintenance Inc., of Hughson, CA, in the amount of $6,229,282, plus $622,928 in contingency (if needed), for a total amount not to exceed $6,852,210 and authorizing the City Manager, or his designee, to execute the Agreement.
 Resolution authorizing an increase in the Director’s Authority to issue Change Orders for the La Loma Phase 3A Strengthen & Replace Water Mains Project from 8% ($498,343) to 10% ($622,928) of the construction contract amount of $6,229,282 with United Pavement Maintenance Inc., of Hughson, CA.  Resolution amending the Fiscal Year 2022-23 Capital Improvement Program Budget in the amount of $2,379,021 to be transferred into the Project from Water Fund Reserves in order to fund the Construction Phase of the La Loma Phase 3A Strengthen & Replace Water Mains Project.

UTILITIES; Edgar Vargas, 209-577-5424, [email protected] Consent

18. Consider approving the increase of a Purchase Order (PO) for Bay City Electric Works, Poway, CA, for the Rental of a Standby Generator for an amount not to exceed $202,040. (Funding Source: Sewer Operation Fund)
Staff Recommendation:
 Resolution approving the increase of a Purchase Order with Bay City Electric Works, Poway, CA, for the Rental of a Standby Generator by $162,126 from $39,914 for a revised total amount not to exceed $202,040, and authorizing the Purchasing Manager, or her designee to increase the Purchase Order.

UTILITIES; Jason Farnsworth, 209-577-6255, [email protected]

COUNCIL COMMENTS & REPORTS

CITY MANAGER COMMENTS & REPORTS

NEW BUSINESS

19. Consider accepting Mayor Sue Zwahlen’s Budget Message per Charter Section 1302.1 for the upcoming Fiscal Year 2023-24 budget year. (Funding Source: Not Applicable) Staff Recommendation:
 Motion to accept Mayor Sue Zwahlen’s Budget Message per Charter Section 1302.1 for the upcoming Fiscal Year 2023-24 budget year.

BUDGET; Steve Christensen, 209-577-5390, [email protected] - 9 -
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20. Consider approving the Purchase of a GippsAero GA8 airplane from CNC Technologies, Oak Park, CA for a total amount not to exceed $741,578. (Funding Source: Traffic Safety Fund and State Law Enforcement Supplemental Fund) Staff Recommendation:
 Resolution approving the Purchase of a GippsAero GA8 airplane from CNC Technologies, Oak Park, CA for a total amount not to exceed $741,578, and authorizing the City Manager, or his designee, to execute the Agreement and other necessary documents.

POLICE; Ivan Valencia, 209-572-9500, [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
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
www.modestogov.com

MINUTES
City of Modesto

CITY COUNCIL MEETING
Chambers, Basement Level
Tenth Street Place, 1010 10th Street
Modesto, California
Tuesday, February 14, 2023 at 5:30 PM
Roll Call – Present: Councilmembers Alvarez, Bavaro, Escutia-Braaton, Ricci, Williams, Wright, Mayor Zwahlen

Absent: None
Pledge of Allegiance to the Flag
Invocation: Carlos Gonzalez, City Ministry Network
City Clerk’s Announcements: City Clerk announced that item 16 was removed from the agenda to be considered at a future meeting. Correspondence was received for Item No. 27.

Declaration of Conflicts of Interest: Recusal from Council Member Wright – Item 27 out of abundance of caution.

Reports from Closed Session: Mayor Zwahlen reported that the City will begin the recruitment of the City Auditor. The City will be using the services of a Professional Recruiting Firm and the Human Resources Department. Applications will be accepted from private individuals and public sector consulting firms.

MISCELLANEOUS

1. Consider accepting the resignation of Janice Keating from the City of Modesto Citizens’ Transportation Sales Tax Commission. (Funding Source: Not Applicable) Staff Recommendation:
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 Resolution accepting the resignation of Janice Keating from the City of Modesto’s Citizens’ Transportation Sales Tax Commission.

CED; Toby Wells, 209-571-5442, [email protected]
ACTION: (Wright/Alvarez; 7/0) Resolution 2023-043 accepting the resignation of Janice Keating from the City of Modesto’s Citizens’ Transportation Sales Tax Commission.

PUBLIC COMMENT PERIOD
 Patrick spoke about the shooting of Paul Chavez, Jr. He also commented about deescalation and Officer Muncy.  Raman Paul spoke about non-emergency medical transport companies operating without a business license or permission from MPD. She cited her concerns with patient safety.  Paul Soto read a quote from Martin Luther King regarding non-violent attention to issues.

He further commented about public safety and the shooting of Paul Chavez, Jr.  Mark Serkanic commented on the bike trails. He addressed Moose Park and the closing of it due to flooding. He further spoke about the patch work on the bridge and the lack of down slopes on the curbs.
 Theresa Clutter spoke about the shooting of Paul Chavez. She further commented on Officers Muncy and Valencia and accountability. She further commented about the new district attorney and asked Council speak to him and ask him to look into the shooting of Paul Chavez, Jr.
 Janet spoke on behalf of her friend a StanRTA employee who was assaulted on February 2 nd in the employee parking lot. She spoke about the need for employee safety.  Brittney Chavez spoke about the shooting of Paul Chavez, Jr. She further commented about Officer Muncy and accountability.
 Sebastian Jones wished everyone a Happy Valentine’s Day. He also commented on the shooting of Paul Chavez, Jr. He further commented about how he felt disrespected at a recent Martin Luther King event.
 Steve spoke in support of Sebastian Jones. He further commented about a recent Facebook post about the civilian police review board. He also commented on the rules posted on the City's website regarding City Council meetings and public comment. He asked for Council to consider changing the rules on the time allowed for public comment.  Ramon Rodriguez spoke about the last Council meeting and Mr. Jones and his claims of discrimination. He also commented about housing at the municipal golf course site. #2..
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 Bianca Lopez, Valley Improvement Project notified the community that February is childhood Cancer Awareness Month and spoke about cancer awareness and referenced a report about pesticides causing childhood cancer.

CONSENT ITEMS – ROLL CALL VOTE REQUIRED
ACTION CONSENT ITEMS 2-6, and 14-16, 18-22 (Alvarez/Williams; 7/0)

CONSENT
Consent

2. Consider approving the minutes from the January 24, 2023 Council Meeting. (Funding Source: Not Applicable)
 Motion approving the minutes from the January 24, 2023 Council Meeting.

CITY CLERK; Diane Nayares-Perez, 209-577-5396, [email protected] ACTION: (Alvarez/Williams; 7/0) Motion approving the minutes from the January 24, 2023 Council Meeting.

Consent

3. Consider approving a resolution continuing to authorize remote teleconference meetings pursuant to Assembly Bill 361 (Funding Source: Not Applicable)  Resolution continuing to authorize remote teleconference meetings of the City of Modesto pursuant to Assembly Bill 361.

CITY CLERK; Jose Sanchez, 209-577-5284, [email protected] ACTION: (Alvarez/Williams; 7/0) Resolution 2023-044 continuing to authorize remote teleconference meetings of the City of Modesto pursuant to Assembly Bill 361.

Removed from Consent – due to Motion to Reconsider
Consent

4. Consider approving a First Amendment to the Legal Services Agreement with Castillo, Moriarty, Tran & Robinson in the amount of $200,000, for a total Agreement amount not to exceed $245,000 for continued representation in Police Related Matters and a Fourth Amendment to the Legal Services Agreement with Bartkiewicz, Kronick & Shanahan P.C. to adjust rates for continued representation in Water Related Matters. (Funding Source: General Liability Insurance Fund and Water Funds)  Resolution approving a First Amendment to the Legal Services Agreement with Castillo, Moriarty, Tran & Robinson in the amount of $200,000, for a total Agreement amount not to exceed $245,000, for continued representation in Police Litigation Matters and authorizing the City Manager or his designee, to execute the Amendment.
 Resolution approving a Fourth Amendment to the Legal Services Agreement for Bartkiewicz, Kronick & Shanahan P.C. to adjust hourly rates for continued representation and authorizing the City Manager or his designee, to execute the Agreement.

CITY ATTORNEY; Jose Sanchez, 209-577-5284, [email protected] #2..
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ACTION: (Escutia-Braaton/Bavaro; 7/0) Motion to reconsider original Motion approving Resolution Nos. 2023-045 and 2023-046 on the Consent Calendar to allow for comments.

ACTION: (Ricci/Alvarez; 7/0) Resolution 2023-045 approving a First Amendment to the Legal Services Agreement with Castillo, Moriarty, Tran & Robinson in the amount of $200,000, for a total Agreement amount not to exceed $245,000, for continued representation in Police Litigation Matters and authorizing the City Manager or his designee, to execute the Amendment.

ACTION: (Ricci/Alvarez; 7/0) Resolution 2023-046 approving a Fourth Amendment to the Legal Services Agreement for Bartkiewicz, Kronick & Shanahan P.C. to adjust hourly rates for continued representation and authorizing the City Manager or his designee, to execute the Agreement.

Consent

5. Consider approving the recommended Budget adjustments to Fiscal Year 2022-23 Annual Operating and Capital Improvement Program Budgets. (Funding Source:

Various Funds)
 Resolution amending Fiscal Year 2022-23 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] ACTION: (Alvarez/Williams; 7/0) Resolution 2023-047 amending Fiscal Year 2022- 23 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.

Consent

6. Consider rejecting all proposals for Request for Proposal (RFP) No. 2122-44 for the Stanislaus Regional Transit Oriented Development Plan. (Funding Source: LEAP Grant)
 Resolution rejecting all proposals for RFP No. 2122-44 for the Stanislaus Regional Transit Oriented Development Plan.

CED; Jessica Hill, 209-577-5321, [email protected]
ACTION: (Alvarez/Williams; 7/0) Resolution 2023-048 rejecting all proposals for RFP No. 2122-44 for the Stanislaus Regional Transit Oriented Development Plan.

Removed from Consent
Consent

7. Consider approving a First Amendment to an Agreement with Management Advisory Services for Planning Consultation and Support, increasing the Agreement to a new total not to exceed $109,500. (Funding Source: General Fund) #2..
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 Resolution approving the First Amendment to an Agreement with Management Advisory Services for Planning Consultation and Support, increasing the Agreement amount by $60,000 from $49,500 to a new total not to exceed $109,500 and authorizing the City Manager, or his designee, to execute the Amendment.

CED; Jessica Hill, 209-577-5321, [email protected]
ACTION: (Wright/Ricci; 7/0) Resolution 2023-049 approving the First Amendment to an Agreement with Management Advisory Services for Planning Consultation and Support, increasing the Agreement amount by $60,000 from $49,500 to a new total not to exceed $109,500 and authorizing the City Manager, or his designee, to execute the Amendment.

Consent

8. Consider approving a Resolution authorizing the execution of escrow documents to transfer fee title to approximately 2.61 acres of real property (APN 007-037-012) currently owned by the City (“City-Owned Remnant”) to Hans Wagner III 2015 Trust consistent with a previously authorized settlement of an eminent domain action to acquire property for the State Route 132 West Freeway/Expressway – Phase I Project. (Funding Source: Streets Capital Facilities Fee and Regional Measure L funds)  Resolution authorizing the execution of escrow documents to transfer fee title to approximately 2.61 acres of real property (APN 007-037-012) currently owned by the City (“City-Owned Remnant”) to Hans Wagner III 2015 Trust consistent with a previously authorized settlement of an eminent domain action to acquire property for the State Route 132 West Freeway/Expressway – Phase I Project.

CED; Jessica Hill, 209-577-5321, [email protected]
ACTION: (Alvarez/Williams; 7/0) Resolution 2023-050 authorizing the execution of escrow documents to transfer fee title to approximately 2.61 acres of real property (APN 007-037-012) currently owned by the City (“City-Owned Remnant”) to Hans Wagner III 2015 Trust consistent with a previously authorized settlement of an eminent domain action to acquire property for the State Route 132 West Freeway/Expressway – Phase I Project.

Consent

9. Consider approving the First Amendment increasing the Agreement amount with Ready to Work, for Litter Abatement Services by $872,500 from $450,000 to a revised total amount of $1,322,500 over a five year extension option. (Funding Source: Solid Waste Fund and CalTrans Delegated Maintenance Agreement)  Resolution approving the First Amendment with Ready to Work for Litter Abatement Services to extend for two years, with three one-year extension options; for an annual estimated cost $174,500 and increasing the overall agreement amount by $872,500 from $450,000 to a new revised total amount of #2..
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$1,322,500; and authorizing the City Manager, or his designee to execute the Amendment.

CED; Edgar Garcia, 209-571-5101, [email protected] ACTION: (Alvarez/Williams; 7/0) Resolution 2023-051 approving the First Amendment with Ready to Work for Litter Abatement Services to extend for two years, with three one-year extension options; for an annual estimated cost $174,500 and increasing the overall agreement amount by $872,500 from $450,000 to a new revised total amount of $1,322,500; and authorizing the City Manager, or his designee to execute the Amendment.

Consent

10. Consider approving a Third Amendment to the Construction Management Services Agreement with WSP USA Inc. for the State Route 132 West Freeway/Expressway - Phase 1 Project, for a total amount not to exceed $13,140,236. (Funding Source: Streets Capital Facility Fees)
 Resolution approving a Third Amendment to the Construction Management Services Agreement with WSP USA Inc. for the State Route 132 West Freeway/Expressway - Phase 1 Project, increasing the Agreement amount by $629,311 plus $62,931 additional services, if needed, from $12,447,994 for a total amount not to exceed $13,140,236, and authorizing the City Manager, or his designee to execute the Third Amendment.

CED; Toby Wells, 209-577-5542, [email protected]
ACTION: (Alvarez/Williams; 7/0) Resolution 2023-052 approving a Third Amendment to the Construction Management Services Agreement with WSP USA Inc. for the State Route 132 West Freeway/Expressway - Phase 1 Project, increasing the Agreement amount by $629,311 plus $62,931 additional services, if needed, from $12,447,994 for a total amount not to exceed $13,140,236, and authorizing the City Manager, or his designee to execute the Third Amendment.

Consent

11. Consider approving a Will Serve Letter and an Outside Service Agreement for Sewer connection for the property located at 4601 Yosemite Blvd. in unincorporated Stanislaus County just outside of the city limits of Modesto (APN: 133-001-019). (Funding Source: Sewer Fund, General Fund)
 Resolution approving a Will Serve letter and an Outside Service Agreement between the City of Modesto and CVE Properties, LLC. A California Limited Liability Company, to connect to the City of Modesto’s existing sewer system for the property located at 4601 Yosemite Blvd. (APN:133-001-019), and authorizing the City Manager, or his designee, to sign the Will Serve Letter and execute the Outside Service Agreement.

CED; Toby Wells, 209-571-5542, [email protected]
ACTION: (Alvarez/Williams; 7/0) Resolution2023-053 approving a Will Serve letter and an Outside Service Agreement between the City of Modesto and CVE Properties, #2..
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LLC. A California Limited Liability Company, to connect to the City of Modesto’s existing sewer system for the property located at 4601 Yosemite Blvd. (APN:133-001- 019), and authorizing the City Manager, or his designee, to sign the Will Serve Letter and execute the Outside Service Agreement.

Consent

12. Consider approving Freeway Maintenance Agreement STA-132, PM-R11.3/R14.7 with the State of California, for the State Route 132 West Freeway/Expressway - Phase 1 Project. (Funding Source: Not Applicable)
 Resolution approving Freeway Maintenance Agreement STA-132, PMR11.3/R14.7 with the State of California, for the State Route 132 West Freeway/Expressway - Phase 1 Project, and authorizing the City Manager, or his designee to execute the Freeway Maintenance Agreement.

CED; Toby Wells, 209-571-5542, [email protected]
ACTION: (Alvarez/Williams; 7/0) Resolution 2023-054 approving Freeway Maintenance Agreement STA-132, PM-R11.3/R14.7 with the State of California, for the State Route 132 West Freeway/Expressway - Phase 1 Project, and authorizing the City Manager, or his designee to execute the Freeway Maintenance Agreement.

Consent

13. Consider accepting an informational report for the December 2022 Accounts Payable Payment Register and Void Report. (Funding Source: Not Applicable)  Motion accepting an informational report for the December 2022 Accounts Payable Payment Register and Void Report.

FINANCE DEPARTMENT; Maria Garnica, 209-577-5249,
[email protected]
ACTION: (Alvarez/Williams; 7/0) Motion accepting an informational report for the December 2022 Accounts Payable Payment Register and Void Report.

Consent

14. Consider accepting an Informational Report on the September and October 2022 Grant Applications and Awards and forwarding to Council for approval. (Funding Source:

Not Applicable)
 Motion accepting an Informational Report for the September and October 2022 Grant Applications and Awards.

FINANCE DEPARTMENT; Maria Garnica, 209-577-5249,
[email protected]
ACTION: (Alvarez/Williams; 7/0) Motion accepting an Informational Report for the September and October 2022 Grant Applications and Awards.

Consent

15. Consider accepting an informational update on the Transient Occupancy Tax Audit. (Funding Source: General Fund)
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 Motion accepting the informational update on the Transient Occupancy Tax Audit.

FINANCE DEPARTMENT; Gina Brown, 209-577-5381, [email protected] ACTION: (Alvarez/Williams; 7/0) Motion accepting the informational update on the Transient Occupancy Tax Audit.

Consent – Removed from the Agenda.

16. Consider approving the purchase for one Fleet Replacement in the amount not to exceed $53,148; and approving updated pricing for three bid events for Fleet Replacement Vehicles by $110,217. (Funding Source: Fleet Replacement Fund)  Resolution approving the purchase with Towne Ford Sales, Redwood City, CA for one Ford Mustang for an amount not to exceed $53,148; and authorizing the Purchasing Manager, or her designee, to issue the Purchase Order.  Resolution approving an increase to the amount for the purchase of One LowProfile Dump Truck to Towne Ford Sales, Redwood City, CA by $16,552, increasing the Purchase Order from $99,797 to a new total amount not to exceed $116,349, and authorizing the Purchasing Manager, or her designee, to update the Purchase Order.
 Resolution approving an increase to the amount for the purchase of Seven OneTon Stake Side Dump Trucks to Towne Ford Sales, Redwood City, CA by $64,194, increasing the Purchase Order from $602,868 to a new total amount not to exceed $667,062, and authorizing the Purchasing Manager, or her designee, to update the Purchase Order.
 Resolution approving an increase to the amount for the purchase of six OneTon Trucks to Towne Ford Sales, Redwood City by $29,471, increasing the Purchase Order from $536,924 to a new total amount not to exceed $566,395, and authorizing the Purchasing Manager, or her designee, to update the Purchase Order.

FINANCE DEPARTMENT; Dianne Love, 209-571-5614, [email protected] ACTION: No action taken. Item was removed from the agenda.

Consent

17. Consider accepting the Monthly Investment Report for November 2022. (Funding Source: Various Funds)
 Motion accepting the Monthly Investment Report for November 2022.

FINANCE DEPARTMENT; Calogero Maniscalco, 209-577-5219,
[email protected],
ACTION: (Alvarez/Williams; 7/0) Motion accepting the Monthly Investment Report for November 2022.

Consent
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18. Consider approving the purchase of the 2019 Chevrolet Tahoe SUV to Salida Fire Protection District (SFPD), Salida, CA, for a total amount not to exceed $60,000 (Funding Source: General Fund)
 Resolution approving the purchase of a 2019 Chevrolet Tahoe SUV from Salida Fire Protection District, Salida, CA, for a total amount not to exceed $60,000 and authorizing the Purchasing Manager, or her designee to issue the Purchase Order.

FIRE DEPARTMENT; Alan Ernst, 209-572-9590, [email protected] ACTION: (Alvarez/Williams; 7/0) Resolution 2023-055 approving the purchase of a 2019 Chevrolet Tahoe SUV from Salida Fire Protection District, Salida, CA, for a total amount not to exceed $60,000 and authorizing the Purchasing Manager, or her designee to issue the Purchase Order.

Consent

19. Consider approving the revisions and additions to the Modesto Police Department’s Hiring and Recruiting Incentive Program, increasing the estimated annual allocated amount by $365,000 to a new estimated annual total of $415,000; and rescinding Resolution Nos. 2014-467 and 2016-378. (Funding Source: General Fund)  Resolution approving the revisions and additions to the Modesto Police Department’s Hiring and Recruitment Incentive Program and increasing the estimated annual allocated amount by $365,000 to a new estimated annual total of $415,000; and rescinding Resolution Nos. 2014-467 and 2016-378.

POLICE DEPARTMENT; Chris Adams, 209-572-9500, [email protected] ACTION: (Alvarez/Williams; 7/0) Resolution 2023-056 approving the revisions and additions to the Modesto Police Department’s Hiring and Recruitment Incentive Program and increasing the estimated annual allocated amount by $365,000 to a new estimated annual total of $415,000; and rescinding Resolution Nos. 2014-467 and 2016-378.

Consent

20. Consider approving an Agreement with Mark Thomas & Company, Inc. to prepare construction documentation for the Dry Creek Regional Park to Tuolumne River Regional Park (TRRP) Trail Connection Project for a total amount not to exceed $511,424. (Funding Source: Parks & Air Quality Capital Facility Fee Fund)  Resolution approving an Agreement with Mark Thomas & Company, Inc. to prepare construction documentation for the Dry Creek Regional Park to Tuolumne River Regional Park (TRRP) Trail Connection Project for an amount of $464,931, plus $46,493 for additional services, if needed, for an Agreement total not to exceed $511,424, and authorizing the City Manager, or his designee, to execute the Agreement.

PRN; Nathan Houx, 209-571-5526, [email protected]
ACTION: (Alvarez/Williams; 7/0) Resolution 2023-057 approving an Agreement with Mark Thomas & Company, Inc. to prepare construction documentation for the #2..
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Dry Creek Regional Park to Tuolumne River Regional Park (TRRP) Trail Connection Project for an amount of $464,931, plus $46,493 for additional services, if needed, for an Agreement total not to exceed $511,424, and authorizing the City Manager, or his designee, to execute the Agreement.

Consent

21. Consider an Ordinance amending Section 3-2.1401.1 of Article 14, Chapter 2, Title 3 of the Modesto Municipal Code relating to speed limits to determine and designate speed limit changes. (Funding Source: Surface Transportation Fund (Gas Tax))  Motion introducing and waiving the first reading of an Ordinance amending Section 3-2.1401.1 of Article 14, Chapter 2, Title 3 of the Modesto Municipal Code relating to speed limits.

PUBLIC WORKS; Mark Murphy, 209-577-5431, [email protected] ACTION: (Alvarez/Williams; 7/0) Motion introducing and waiving the first reading of Ordinance 3759-C.S. amending Section 3-2.1401.1 of Article 14, Chapter 2, Title 3 of the Modesto Municipal Code relating to speed limits.

Consent

22. Consider authorizing the submittal of application(s) to the Department of Transportation Clean California Local Grant Program. (Funding Source: Not Applicable)
 Resolution authorizing the submittal of application(s) to the Department of Transportation Clean California Local Grant Program, and authorizing the City Manager, or his designee, to sign Grant Applications and related forms.

PUBLIC WORKS; Rosene Salmo, 209-577-5453, [email protected] ACTION: (Alvarez/Williams; 7/0) Resolution 2023-058 authorizing the submittal of application(s) to the Department of Transportation Clean California Local Grant Program, and authorizing the City Manager, or his designee, to sign Grant Applications and related forms.

Consent

23. Consider approving a Right-of-Way Dedication by the City of Modesto on behalf of the public for the future Aria Way extension for Public Use and Right of Way. (Funding Source: Not Applicable)
 Resolution approving a Right-of-Way Dedication by the City of Modesto on behalf of the public for the future Aria Way (APN 083-004-084) extension for Public Use and Right-of-Way.

UTILITIES; Robert Davalos, 209-571-5869, [email protected] ACTION: (Alvarez/Williams; 7/0) Resolution 2023-059 approving a Right-of-Way Dedication by the City of Modesto on behalf of the public for the future Aria Way (APN 083-004-084) extension for Public Use and Right-of-Way.

Consent
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24. Consider approving the submission of a Grant Application to the California Department of Water Resources for the 2022 Urban Community Drought Relief Grant Program. (Funding Source: Water Fund and American Rescue Plan Act Fund)  A Resolution of the Modesto City Council authorizing the submittal of a Grant Application for the 2022 Urban Community Drought Relief program that authorizes the City Manager, or his designee as the City representative authorizing the Grant Application, acceptance, and execution of a Grant Agreement to fund the Empire Local Water Main Improvements Project, Empire Water Main Crossings Project, Modesto City Parks Turf Replacement Project, and Modesto Turf Replacement Customer Rebate Program.

UTILITIES; Juan Ochoa, 209-577-5423, [email protected] ACTION: (Alvarez/Williams; 7/0) A Resolution 2023-060 of the Modesto City Council authorizing the submittal of a Grant Application for the 2022 Urban Community Drought Relief program that authorizes the City Manager, or his designee as the City representative authorizing the Grant Application, acceptance, and execution of a Grant Agreement to fund the Empire Local Water Main Improvements Project, Empire Water Main Crossings Project, Modesto City Parks Turf Replacement Project, and Modesto Turf Replacement Customer Rebate Program.

COUNCIL COMMENTS & REPORTS
Council Member Alvarez thanked everyone for being here this evening on Valentine's Day. He gave a special recognition to Operation 9.2.99 Cleanup Project for their work along Tuolumne River. The group offers a monthly opportunity to cleanup and restore along the River. He also thanked Phil McKay with DFW Natural Resource Volunteer Program, and the Parks Department for the trash bags. He thanked Duane Becker and volunteers for hauling away the shopping carts. Council Member Alvarez also highlighted his committee assignments.

Vice Mayor Ricci wished everyone a Happy Valentine’s Day, especially his wife. He spoke about Modesto having a self-image problem, and some of that could be due to how they talk about themselves sometimes. But, the challenge right now is to inspire City government to make a change in vision. He also reported on the Stanislaus 2030 project and the community collaboration, that tried to create a strategy for regional economic growth and opportunity in the coming decade. He commented on homelessness, the CHAT team, park rangers and the programs in place. He further commented on housing needed Downtown and how the City needs to increase reasons for people to visit Modesto.

Council Member Escutia-Braaton wished everyone a Happy Valentine's Day and wished her husband Dr Braaton a Happy Valentine's Day. She also acknowledged her two sons at home, Dominic and Luke. She reported that she had the honor and privilege of judging a Hispanic leadership speech competition. It was amazing to see all these young men and women speaking on the subject of what is a leader. She was very impressed to see that effort. She also reported on the Modesto Youth Commission. This is a dynamic group of young leaders that serve in an advisory capacity to the City Council.
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Council Member Williams reported that he attended a City event at Cesar Chavez Park and was accompanied by Council Member Alvarez and Mayor Zwahlen. The event was put on by the Recreation Department, and Bruce Lockard, an employee that has been with the City over 40 years. There were many vendors at the event with a lot of good information given out. There was also some cultural dances from all areas of the world. He also reported on attending Christian Love Baptist Church who bestowed him with a Trailblazer award. He further reported on the City Council Retreat held on February 3rd.

Mayor Zwahlen stated that she wanted to add a couple of thoughts to this evening's meeting.

As was mentioned, the City does have a Youth Commission. This morning, she received a briefing on the City’s General Plan update. This is what will guide the community regarding all the things that they’ve talked about this evening, and all the things the Council Members mentioned for the future into 2050. But one of the components of it that she was most impressed with after dozens of community meetings and input was that one of those meetings was held at a local high school for the students. So, she really thinks that says how important young people are in the community. She further commented on the way she conducts meetings. She always tries to do the best job that she can at every meeting. She further commented on public comment period. While on the school board, she felt so strongly that, that's the public's time to speak and their time to listen. She also commented that the Fire Chief, Police Chief and Directors are at the meetings to address any of the issues that the public might have.

CITY MANAGER COMMENTS & REPORTS
None.

UNFINISHED BUSINESS

25. Consider approving the Fourth Amendment to the Purchasing Agreement with Grover Landscape Services, Inc. of Modesto, CA for Landscape Maintenance Services to extend the term period for an additional three years and six months and increasing the amount of the Agreement by an amount not to exceed $10,745,509 for the extension period. (Funding Source: General Fund – Parks Operations, Community Facilities District Funds, Joint Powers Authority Tuolumne River Regional Park Fund, Various City and Enterprise Funds)
 Resolution approving the Fourth Amendment to the Purchasing Agreement with Grover Landscape Services, Inc. of Modesto, CA for Landscaping Maintenance Services to extend the term period for an additional three years and six months and increasing the amount of the Agreement by an amount not to exceed $10,745,509 for the extension period; and authorizing the City Manager or his designee to execute the Amendment.

PRN; Kelly Gallagher, 209-342-2270, [email protected] ACTION: (Wright/Williams; 7/0) Resolution 2023-061 approving the Fourth Amendment to the Purchasing Agreement with Grover Landscape Services, Inc. of Modesto, CA for Landscaping Maintenance Services to extend the term period for an additional three years and six months and increasing the amount of the Agreement by #2..
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an amount not to exceed $10,745,509 for the extension period; and authorizing the City Manager or his designee to execute the Amendment.

Recessed: 7:30 pm
Reconvened: 7:36 pm

NEW BUSINESS

26. Consider approving an initial spending plan related to Measure H for Fiscal Year 2022- 23 to address quality of life issues in the community; and authorizing the City Manager to carry out the necessary steps to implement the initial spending plan related to Measure H. (Funding Source: Measure H General Fund)
 Resolution approving an initial spending plan related to Measure H for Fiscal Year 2022-23 to address quality of life issues in the community; and authorizing the City Manager to carry out the necessary steps to implement the initial spending plan related to Measure H.
 Resolution amending the Position Allocation for Fiscal Year 2022-23 as Adopted in the Operating Budget.
 Resolution amending the classification plan for the City of Modesto to create the classification of the Senior Outreach Specialist, create the classification of the Police Civilian Investigator, and to amend the title for Homeless Outreach Specialist to Outreach Specialist.

BUDGET; Steve Christensen, 209-577-5390, [email protected] ACTION: (Escutia-Braaton/Ricci; 7/0) Resolution 2023-062 approving an initial spending plan related to Measure H for Fiscal Year 2022-23 to address quality of life issues in the community; and authorizing the City Manager to carry out the necessary steps to implement the initial spending plan related to Measure H.

ACTION: (Escutia-Braaton/Ricci; 7/0) Resolution 2023-063 amending the Position Allocation for Fiscal Year 2022-23 as Adopted in the Operating Budget.

ACTION: (Escutia-Braaton/Ricci; 7/0) Resolution 2023-064 amending the classification plan for the City of Modesto to create the classification of the Senior Outreach Specialist, create the classification of the Police Civilian Investigator, and to amend the title for Homeless Outreach Specialist to Outreach Specialist.

Councilmember Wright absent due to conflict of interest.

27. Consider adopting the Comprehensive Housing Plan that provides strategies and recommendations for increasing the supply and choice of housing in Modesto. (Funding Source: SB2 Planning Grant)
 Resolution adopting the Housing Plan that provides strategies and recommendations for increasing the supply of housing in Modesto.

CED; Jessica Hill, 209-577-5321, [email protected]
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ACTION: (Williams/Escutia-Braaton; 6/0, Wright Recused; Councilmember Wright absent due to conflict of interest) Resolution 2023-065 adopting the Housing Plan that provides strategies and recommendations for increasing the supply of housing in Modesto.

28. Consider authorizing the services of Steve Mitchell on a part-time basis for a limited duration of up to six months for the purposes of providing work on special Planning projects to ensure high priority projects continue to completion. (Funding Source:

General Fund)
 Resolution authorizing the services of Steve Mitchell on a part-time basis for a limited duration of up to six months for the purposes of providing work on special projects to ensure high priority projects continue to completion; and authorizing the City Manager, or his designee, to take the necessary steps to implement the provisions of the action.

HUMAN RESOURCES; Christina Alger, 209-571-5126, [email protected] ACTION: (Alvarez/Wright; 7/0); Resolution 2023-066 authorizing the services of Steve Mitchell on a part-time basis for a limited duration of up to six months for the purposes of providing work on special projects to ensure high priority projects continue to completion; and authorizing the City Manager, or his designee, to take the necessary steps to implement the provisions of the action.

MATTERS TOO LATE FOR THE AGENDA
None.

ADJOURNMENT
This meeting adjourned at 8:23 p.m.

All Closed Session matters heard prior to meeting.

CLOSED SESSION

CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION
Two Cases (Pursuant to Section 54956.9(a) of the Government Code) Name of case(s): Kelly Mikolich v. City of Modesto
California Workers Compensation Appeals Board
Nos. ADJ15250443, ADJ15250474
Steve Fischio v. City of Modesto
California Workers Compensation Appeals Board
Nos. Unassigned and ADJ12517812
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PUBLIC EMPLOYEE APPOINTMENT
(Pursuant to Section 54957 Government Code)
Title: City Auditor
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 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 Attest:____________________________
Diane Nayares-Perez, City Clerk
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- 1 - ORDINANCE NO. 3759-C.S.

EFFECTIVE DATE: March 30, 2023
ORDINANCE NO. 3759-C.S.

ORDINANCE AMENDING SECTION 3-2.1401.1 OF
ARTICLE 14 OF CHAPTER 2 OF TITLE 3 OF THE

MODESTO MUNICIPAL CODE RELATING TO

SPEED LIMITS
The Council of the City of Modesto does ordain as follows:

SECTION 1. AMENDMENT OF CODE. Section3-2.1401.1, School Zone Reduced Speed Limits of the Modesto Municipal Code is amended to read as follows:

SCHOOL ZONE REDUCED SPEED LIMITS
BEAR CUB LANE, between Kodiak Dr
and Hillglen Avenue 15 miles per hour
BOWEN AVENUE, between Fremont Avenue
and College Avenue 15 miles per hour
BOWIE AVENUE, between School Ave
and El Paso Ave 15 miles per hour
CALIFORNIA AVENUE, between
Champagne Lane and S. Emerald Ave 15 miles per hour
CHEYENNE WAY, between Seminole Lane
and Shawnee Drive 15 miles per hour
COLDWELL AVENUE, between Brady Avenue
and Enslen Avenue 15 miles per hour
CONANT AVENUE, between Nancy Ln
And W. Rumble Road 15 miles per hour
ELSIE STREET, between Hudson Lane
And Sutter Avenue 15 miles per hour
S. EMERALD AVENUE, between California
Avenue and Muriel Avenue 15 miles per hour
ENCINA AVENUE, between North Conejo Ave
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- 2 - ORDINANCE NO. 3759-C.S.

EFFECTIVE DATE: March 30, 2023
and Rosina Avenue 15 miles per hour
ESCUELITA AVENUE, between North Santa Ana
Avenue and Las Palmas Avenue 15 miles per hour
FINE AVENUE, between Landing Way
and Kodiak Drive 15 miles per hour
FINE AVENUE, between Merle Avenue
And Sharon Avenue 15 miles per hour
FLOYD AVENUE, between Newport
Drive and Vicki Drive 15 miles per hour
GLENN AVENUE, between Las Vegas Street
and Rutherford Street 15 miles per hour
HAMMOND STREET, between Robertson
Road and Red Pine Drive 15 miles per hour
JANNA AVENUE, between Easter Drive
and Peach Drive 15 miles per hour
KIRSCHEN DRIVE, between Crippen Avenue
and Pine Tree Lane 15 miles per hour
KODIAK DRIVE, between Litt Road
And Fine Avenue 15 miles per hour
KODIAK DRIVE, between Tagura Drive
and Bear Cub Lane 15 miles per hour
LAS VEGAS STREET, between Butte Avenue
and Glenn Avenue 15 miles per hour
LUCERN AVENUE, between Coffee Road
And El Terino Avenue 15 miles per hour
MAID MARIANE LANE, between Merle
Avenue and Sharon Avenue 15 miles per hour
MERLE AVENUE, between Wisdom Way
And Walnut Tree Drive 15 miles per hour
MIDDLEBORO PLACE, between Lakewood Ave
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- 3 - ORDINANCE NO. 3759-C.S.

EFFECTIVE DATE: March 30, 2023
and Eastridge Drive 15 miles per hour
MONTEREY AVENUE, between Kerr
Avenue and Empire Avenue 15 miles per hour
MOUNT VERNON DRIVE, between Hemminger
Way and Sharondell Drive 15 miles per hour
NORTHVIEW DRIVE, between Mable Avenue
and Kentwood Avenue 15 miles per hour
POUST AVENUE, between Chapparad Place
And Kidd Avenue 15 miles per hour
ROBERTSON ROAD, between Pine Tree Lane
and Hammond Street 15 miles per hour
EAST RUMBLE ROAD, between Claremont
Avenue and Hampshire Lane 15 miles per hour
W. RUMBLE ROAD, between Conant
Avenue and Marvin Gardens 15 miles per hour
W. RUMBLE ROAD, between Park Place
and Holiday Lane 15 miles per hour
SCHOOL AVENUE, between Crows Landing
Road and Bowie Avenue 15 miles per hour
SHARON AVENUE, between Maid Mariane
Lane and Fine Avenue 15 miles per hour
SHELDON DRIVE, between Janet Drive
and Pembroke Drive 15 miles per hour
SONOMA AVENUE, between East Orangeburg
Avenue and Meadow Rue Drive 15 miles per hour
SUNRISE AVENUE, between East Coolidge Ave
and East Orangeburg Avenue 15 miles per hour
SUTTER AVENUE, between Elsie Street
and South Avenue 15 miles per hour
TERESA STREET, between Seasons Way
and Grape Avenue 15 miles per hour
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- 4 - ORDINANCE NO. 3759-C.S.

EFFECTIVE DATE: March 30, 2023
TOKAY AVENUE, between Sunrise Avenue
and La Cienega Drive 15 miles per hour
WARM SPRINGS DRIVE, between Eastport Dr
and Eastern Avenue 15 miles per hour
WISDOM WAY, between Whole Court 15 miles per hour
WOODROW AVENUE, between Tully
Road and Lord Avenue 15 miles per hour
*EXTEND SURVEY 5, 7, 10 years per State of California Department of Transportation, Traffic Operations Policy Directive 09-04.

SECTION 2. SEVERABILITY . If any provision of this Ordinance or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of this Ordinance, which can be given effect without the invalid provision or application, and to this end, the provisions of this Ordinance are severable. This City Council declares that it would have adopted this Ordinance irrespective of the invalidity of any particular portion thereof and intends that the invalid portions should be severed and the balance of the Ordinance be enforced.

SECTION 3. 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.

SECTION 4. SAVINGS. The provisions of this ordinance shall not affect any proceedings, suit or prosecution heretofore or hereafter commenced under the provisions of the Municipal Code as they existed prior to the effective date of this ordinance. No offense committed and no liability, penalty or forfeiture, either civilly or #3..
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- 5 - ORDINANCE NO. 3759-C.S.

EFFECTIVE DATE: March 30, 2023
criminally incurred under the provisions of the Municipal Code as they existed prior to the effective date of this ordinance shall be discharged or affected by the adoption of this ordinance; but prosecutions and suits for such offenses, liabilities, penalties or forfeitures shall be instituted or proceeded with in all respects as if this ordinance had not been adopted.

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. #3..
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- 6 - ORDINANCE NO. 3759-C.S.

EFFECTIVE DATE: March 30, 2023
The foregoing ordinance was introduced at a regular meeting of the Council of the City of Modesto held on the 14th day of February, 2023, by Councilmember Alvarez who moved its introduction and passage to print, which motion being duly seconded by Councilmember Williams, was upon roll call carried and ordered printed and published by the following vote:

AYES: Councilmembers: Alvarez, Bavaro, Escutia-Braaton, Ricci, Williams, Wright, Mayor Zwahlen
NOES: Councilmembers: None
ABSENT: Councilmembers: None
APPROVED: _____________________________
SUE ZWAHLEN, Mayor
ATTEST:

By: _________________________________
DIANE NAYERES-PEREZ, City Clerk
(SEAL)
APPROVED AS TO FORM:

By: _________________________________
JOSE M. SANCHEZ, City Attorney
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- 7 - ORDINANCE NO. 3759-C.S.

EFFECTIVE DATE: March 30, 2023

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 28th day of February, 2023, 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: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:

APPROVED: ________________________

SUE ZWAHLEN, MAYOR
ATTEST: ___________________________________
DIANE NAYARES-PEREZ, City Clerk
Effective Date: March 30, 2023
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CITY OF MODESTO
ORDINANCE NO. 3759-C.S.

The following Ordinance was introduced by the City Council of the City of Modesto at the meeting of February 14, 2023:

ORDINANCE AMENDING SECTION 3-2.1401.1 OF ARTICLE 14 OF CHAPTER 2 OF TITLE 3 OF THE MODESTO MUNICIPAL CODE RELATING TO SPEED LIMITS 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
Diane Nayares-Perez
City Clerk
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CITY OF MODESTO

COUNCIL AGENDA REPORT
DATE OF MEETING:

February 28, 2023
Date: February 13, 2023
TO: Mayor and City Council
THROUGH: Joseph P. Lopez, City Manager
FROM: Jose M. Sanchez, City Attorney
SUBJECT: Termination of the Local Emergency Related to the Novel Coronavirus (“COVID-19”)
CONTACT: Jose M. Sanchez, City Attorney, 209-577-5284, [email protected] DESCRIPTION:

Consider terminating the Local Emergency in response to the Novel Coronavirus (COVID-19). (Funding Source: Not applicable).

STRATEGIC PLAN ELEMENT:

This item supports the City’s 2020-2025 Strategic Plan commitment for Quality of Life.

BACKGROUND:

The Novel Coronavirus (“COVID-19”), a severe respiratory disease, was first detected in Wuhan, Hubei Province, People’s Republic of China, on December 31, 2019. In the subsequent months, COVID-19 resulted in serious illness throughout our region. On March 4, 2020, Governor Gavin Newsom proclaimed a state of emergency regarding COVID-19. On March 13, 2020, the County of Stanislaus Director of Emergency Services proclaimed a Local Emergency due to the threat of COVID-19 in the County. On March 13, 2020, the President of the United States, Donald Trump, declared a state of national emergency in response to the COVID-19 outbreak.

California Government Code section 8630 and Modesto Municipal Code section 3-4.06 authorize the Director of Emergency Services for the City of Modesto (the “City”) to proclaim the existence of a local emergency when the City is affected or likely to be affected by conditions of extreme peril to the safety of persons and property within the City. Section 3-4.05 of the Modesto Municipal Code designates the City Manager as the Director of Emergency Services.

Furthermore, California Government Code section 8558(c) defines a local emergency as “duly proclaimed existence of conditions of disaster or of extreme peril to the safety of persons and property within the territorial limits of a county, city and county, or city, caused by conditions such as …. epidemic … which or are likely to be beyond the control of the services, personnel, equipment, and facilities of that political subdivision and require the combined forces of other #4..
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City Council, February 28, 2023
Termination of the Local Emergency Related to the Novel Coronavirus (“COVID-19”)

political subdivisions to combat…” On March 13, 2020, the City Manager, in his capacity as Director of Emergency Services, proclaimed the existence of a local emergency in the City in response to COVID-19. The Proclamation was pursuant to Modesto Municipal Code section 3-

4.06. On March 19, 2020, the City Council adopted Resolution No. 2020-140 ratifying the proclamation of a local emergency.

In addition to the public health implications, COVID-19 had a major impact on restaurants in the City because of limitations on indoor dining; this made delivery and pick-up a much larger percentage of most restaurants’ operations. The high fees charged by third-party delivery services were significantly impacting these businesses and threatened restaurants’ ability to survive state and local measures in response to COVID-19. On February 2, 2021, the City Council adopted an Urgency Ordinance establishing a temporary limit of 15% on fees by thirdparty food delivery services to restaurants in Modesto during the COVID-19 pandemic in an effort to limit the economic impact on restaurants. Ordinance No. 3729-C.S. stated that it would terminate when the City Council terminated the local emergency.

DISCUSSION:

The widespread availability of vaccinations and other mitigation tools has served to significantly decrease COVID-19 case rates and deaths. COVID-19 no longer poses the same threat to public health as it did previously. As a result, most COVID-19 mandates and recommendations have been removed, such as masking, occupancy limits, and vaccination measures. On October 17, 2022, the Governor announced the COVID-19 State of Emergency in California will end on February 28, 2023.

City, County, and State restrictions have been removed so that businesses have returned to full operations, and restaurants may now utilize the full indoor occupancy of their spaces. The conditions have changed such that restaurants can now operate as they did before the pandemic, and the COVID-19 State of Emergency is set to terminate at the end of this month.

Adoption of the Resolution will terminate the local emergency due to COVID-19. In addition, termination of the local emergency will automatically end the cap on food delivery service fees of 15% as of February 28, 2023.

FISCAL IMPACT:

This is no fiscal impact associated with terminating the local emergency due to the COVID-19 pandemic.

COMMITTEE RECOMMENDATION:

This item was not presented to a Council Committee.

RECOMMENDED COUNCIL ACTION:

Staff Recommendations:

Resolution terminating the Local Emergency related to the Novel Coronavirus (“COVID-19”).

Approved by:

Jose M. Sanchez, City Attorney
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City Council, February 28, 2023
Termination of the Local Emergency Related to the Novel Coronavirus (“COVID-19”)

Joseph P. Lopez, City Manager
Attachments:

1. Resolution

2. Proclamation of Existence of Local Emergency
5297168.2
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1 MODESTO CITY COUNCIL
RESOLUTION NO. 2023-?

RESOLUTION TERMINATING THE LOCAL EMERGENCY RELATED TO
THE NOVEL CORONAVIRUS (“COVID-19”)
WHEREAS, Government Code section 8630 and Modesto Municipal Code section 3-4.06 authorize the Director of Emergency Services for the City of Modesto (the “City”) to proclaim the existence of a local emergency when the City is affected or likely to be affected by conditions of extreme peril to the safety of persons and property within the City; and
WHEREAS, Section 3-4.05 of the Modesto Municipal Code designates the City Manager as the Director of Emergency Services; and
WHEREAS, on March 4, 2020, Governor Gavin Newsom issued proclaimed a state of emergency regarding the Novel Coronavirus (“COVID-19”), a respiratory disease that may result in serious illness or death that is easily transmissible from person to person; and
WHEREAS, on March 13, 2020, the President of the United States, Donald Trump, declared a state of national emergency in response to the COVID-19 outbreak; and
WHEREAS, in accordance with Government Code section 8630 and Municipal Code section 3-4.06, the Director of Emergency Services proclaimed the existence of a local emergency caused by COVID-19; and
WHEREAS, on March 19, 2020, the City Council adopted Resolution No. 2020- 140 ratifying the proclamation of a local emergency due to COVID-19; and #4..
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2 WHEREAS, on February 2, 2021, the City Council adopted Ordinance No. 3729- C.S. establishing a temporary limit of fifteen percent (15%) on fees by third-party food delivery services to restaurants in Modesto; and
WHEREAS, Ordinance No. 3729-C.S. provides that it shall automatically terminate when the City terminates the proclamation of a local emergency due to COVID-19; and
WHEREAS, restaurants in the City of Modesto have resumed full indoor operations consistent with their ability to operate before the COVID-19 pandemic; and WHEREAS, on October 17, 2022, Governor Gavin Newsom announced that the State of California’s COVID-19 state of emergency will end on February 28, 2023, citing that California has the tools needed to continue fighting COVID-19 when the state of emergency terminates, including vaccines and boosters, testing, treatments, and other mitigation measures such as masking and indoor ventilation; and WHEREAS, pursuant to Government Code section 8630(c), the City Council has determined that the situation resulting from said condition of extreme peril is now deemed not to be beyond the control of normal protective services, personnel, equipment, and facilities of and within said City’s ability to handle.

NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Modesto that it hereby proclaims the termination of the local emergency regarding COVID-19 declared by Resolution No. 2020-140, effective at the end of the day on February 28, 2023, or upon such date that the State of California’s COVID-19 state of emergency ends, whichever is later.
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3 BE IT FURTHER RESOLVED, that the limit of fifteen percent (15%) on fees by third-party food delivery services to restaurants during the COVID-19 pandemic will automatically terminate at the end of the day on February 28, 2023 pursuant to Ordinance No. 3729-C.S.

The foregoing Resolution was introduced at a meeting of the Council of the City of Modesto held on the 28th day of February 2023 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:

DIANE NAYARES-PEREZ, City Clerk
(SEAL)
APPROVED AS TO FORM:

BY:

JOSE M. SANCHEZ, City Attorney
5300028.1
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CITY OF MODESTO

COUNCIL AGENDA REPORT
DATE OF MEETING:

February 28, 2023
Date: February 22, 2023
TO: Mayor and Council
FROM: Joseph P. Lopez, City Manager
SUBJECT: Resolution in support of naming the Sylvan Post Office for fallen Marine Cpl.

Michael D. Anderson Jr.

CONTACT: Andrew Gonzales, Public Relations and Legislative Affairs Manager, [email protected], 209-571-5809
DESCRIPTION:

Consider supporting a House of Representatives Bill to designate the facility of the United States Postal Service located at 2300 Sylvan Avenue in Modesto, California, as the ‘‘Corporal Michael D. Anderson Jr. Post Office Building”. (Funding: Not Applicable) STRATEGIC PLAN ELEMENT:

This project supports the City’s (2020-2025) Strategic Plan Initiatives: Promote trust and engagement: Collaborate with community and civic organizations.

BACKGROUND:

On February 14, 2023, the City was asked to support a Resolution that Congressman McClintock will introduce to Congress to name the Sylvan post office the “Corporal Michael D.

Anderson Jr Post Office Building”.

Marine Cpl. Michael D. Anderson Jr. was killed in action in 2004 serving in Operation Iraqi Freedom. A native son of Modesto, Michael Anderson Jr. attended Johansen High School. As a child here in Modesto, Michael enjoyed skateboarding, snowboarding, motorcycles, and working on cars.

After graduation in 2001, Michael enlisted in the United States Marine Corps and he was assigned to 3rd Battalion, 5th Marine Regiment, 1st Marine Division, 1st Marine Expeditionary Force, based at Camp Pendleton. Michael was described as “gung-ho” and “tough as nails” which served him well as a member of an elite terrorist fighting team known as Fast Company.

He also served in Japan, Guam, and Haiti prior to his deployment to Iraq in September of 2004.

In Iraq, Cpl. Anderson’s unit was tasked with the dangerous job of searching house-by-house for insurgents and enemy combatants. On one of these missions in Fallujah, Iraq, Cpl.

Anderson’s unit was engaged in heavy, close-range, small-arms combat while clearing buildings and rooftops. Upon entering one home, he was instantly met with a hail of bullets and was #5..
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City Council, February 28, 2023
Resolution in support of naming the Sylvan Post Office
for fallen Marine Cpl. Michael D. Anderson Jr.

struck by enemy fire. Tragically, Marine Cpl. Michael D. Anderson Jr. was killed in action on December 14, 2004.

DISCUSSION:

As mentioned, Michael Anderson Jr. attended Johansen High School in Modesto. Following his graduation in 2001, Michael enlisted in the United States Marine Corps. Marine Cpl. Michael D.

Anderson Jr. was killed in action in 2004 serving in Operation Iraqi Freedom.

The City was asked to formally support a Resolution that Congressman McClintock will introduce to Congress to name the Sylvan post office the “Corporal Michael D. Anderson Jr.

Post Office Building”.

FISCAL IMPACT:

There is no fiscal impact associated with this item.

COMMITTEE RECOMMENDATION
This item was not considered by a Council Committee.

RECOMMENDED ACTION:

Resolution supporting a House of Representatives (H.R.) Bill that Congressman McClintock will be introducing to Congress to designate the facility of the United States Postal Service located at 2300 Sylvan Avenue in Modesto, California, as the ‘‘Corporal Michael D. Anderson Jr. Post Office Building”
Approved by:

Joseph P. Lopez, City Manager
Attachments:

1. Resolution
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2/28/23/CMO/ 1 2023-

MODESTO CITY COUNCIL
RESOLUTION NO. 2023-
RESOLUTION SUPPORTING A HOUSE OF REPRESENTATIVE (H.R.) BILL

THAT CONGRESSMAN MCCLINTOCK WILL BE INTRODUCING TO

CONGRESS TO DESIGNATE THE FACILITY OF THE UNITED STATES POSTAL SERVICE LOCATED AT 2300 SYLVAN AVENUE IN MODESTO, CALIFORNIA, AS THE ‘‘CORPORAL MICHAEL D. ANDERSON JR. POST OFFICE BUILDING”
WHEREAS, Congressman Tom McClintock (CA-05) will be introducing a bill to designate the facility of the United States Postal Service located at 2300 Sylvan Avenue in Modesto, California, as the ‘‘Corporal Michael D. Anderson Jr. Post Office Building”; and
WHEREAS, Marine Cpl. Michael D. Anderson Jr., of Modesto, California, died on December 14, 2004, while serving during Operation Iraqi Freedom; and WHEREAS, Cpl. Anderson, a former member of the Marine Corps' terrorismfighting team known as Fast Company retired from the elite squad in early 2004 to be closer to his family. He was assigned to the 3rd Battalion, 5th Marine Regiment, 1st Marine Division, 1st Marine Expeditionary Force at Camp Pendleton. He left for Iraq on September 2004; and
WHEREAS, Section 1 of Congressman Tom McClintock’s bill states that it be enacted that the Senate and House of Representatives of the United States of America in Congress assembled designation the post office as CORPORAL MICHAEL D.

ANDERSON JR. POST OFFICE BUILDING; and that the facility of the United States Postal Service located at 2300 Sylvan Avenue in Modesto, California shall be known and designated as the ‘‘Corporal Michael D. Anderson Jr. Post Office Building, Furthermore, that any refences in a law, map, regulation, document, paper, or other record of the #5..
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2/28/23/CMO/ 2 2023-
United States to the facility referred to shall be deemed to be a reference to the ‘‘Corporal Michael D. Anderson Jr. Post Office Building.”
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Modesto that it hereby approves supporting Senator McClintock’s House of Representative Bill to honor the life, service, patriotism, heroism, and ultimate sacrifice of Cpl. Michael D.

Anderson Jr. and support the House Resolution offered by Congressman Tom McClintock to name the Sylvan US Post Office the Corporal Michael D. Anderson Jr.

Post Office Building.

The foregoing resolution was introduced at a regular meeting of the Council of the City of Modesto held on the 28th day of February 2023, 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: _____________________________

DIANE NAYARES-PEREZ, CMC,
City Clerk
(SEAL)
APPROVED AS TO FORM:

BY: ________________________________
JOSE M. SANCHEZ, City Attorney
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2/28/23/CMO/ 3 2023-
#5..
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CITY OF MODESTO

COUNCIL AGENDA REPORT
DATE OF MEETING:

February 28, 2023
Date: February 22, 2023
TO: Mayor and Council
THROUGH: Joseph P. Lopez, City Manager
FROM: Ariana Harbottle-Jarrett, Executive Assistant to Mayor and Council SUBJECT: Amendment of 2023 City Council Liaison Committee Assignments CONTACT: Ariana Harbottle-Jarrett, Executive Assistant to Mayor and Council, [email protected], 209-571-5597
DESCRIPTION:

Consider approving the First Amendment for the Mayor’s Appointments and formatting changes to the City of Modesto’s City Council Liaison Committees list for the 2023 calendar year. (Funding Source: Not Applicable)
STRATEGIC PLAN ELEMENT:

This item supports the City’s Strategic Plan Commitment for Governance and Service Delivery, Goal I: Promote trust and engagement between the community and the City.

BACKGROUND:

According to Section 601(g) of the City of Modesto Charter (Charter), “the Mayor may appoint with the advice and consent of the Council, a Chairman, a Vice Chairman, one regular member and one alternate member to each standing, special, and ad hoc committee of the Council.” In accordance with the above outlined provisions of the Charter, the Mayor recommended the following appointments to the City’s Liaison committees as set forth in Attachment 1, respectively for the 2023 calendar year. With the approval of the Council at the December 6, 2022 Council meeting, these appointments went into effect January 1, 2023.

DISCUSSION:

The annual process of committee assignments is a critical element of public engagement and promoting a diversity of opinions in the City’s standing and liaison committees. Therefore, the Mayor has restructured several of the committee names and descriptions to more accurately reflect their full titles and responsibilities.

In addition, an appointment of an alternate to the StanCOG Executive Committee was inadvertently overlooked and not added to the original appointment list. This item addresses the #6..
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City Council, February 23, 2023
Amendment of 2023 City Council Liaison Committee Assignments

oversight, and the Mayor recommends Council Member Escutia-Braaton as the alternate to the StanCOG Executive Committee.

FISCAL IMPACT:

There is no fiscal impact associated with this item.

COMMITTEE RECOMMENDATION
This item was not considered by a Council Committee.

RECOMMENDED ACTION:

Mayor’s Recommendation:

Motion approving the changes to the City Council Liaison Committees.

Approved by:

Joseph P. Lopez, City Manager
Attachments:

1. 2023 City Council Liaison Committees

2. Revised 2023 City Council Liaison Committees final

3. Revised 2023 City Council Liaison Committees highlighted changes #6..
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12/1/2022 1
City of Modesto
City Council Liaison Committees
December 6, 2022

BLIGHT ABATEMENT ADVISORY COMMITTEE
Member (Non-Voting): David Wright
Meets: Monthly
The Blight Abatement Advisory Committee acts as an advisory body to the City Council on policies to address blight in the community.

CITY-COUNTY AIRPORT ADVISORY COMMITTEE
Member(s): Eric Alvarez
Alternate: Jeremiah Williams
Meets: Bi-Monthly
The City of Modesto operates the Modesto City-County Airport for the benefit of all residents, business owners and visitors in and around the City of Modesto and surrounding areas. The Committee advises the City Manager and The Modesto City council on policy matters pertaining to the operation and management of the Modesto CityCounty Airport, the uses of the property adjacent to the airport if such uses may impact operations at the airport and any other matters as the City Manager may from time to time request.

CITY–COUNTY LIAISON COMMITTEE
Member(s): Rosa Escutia-Braaton
Nick Bavaro
David Wright
Joe Lopez
Jose Sanchez
Meets: Quarterly
The City–County Liaison Committee meets to discuss issues involving both agencies.

CITIZENS HOUSING AND COMMUNITY DEVELOPMENT COMMITTEE
Member(s): Chris Ricci
Eric Alvarez
Alternate: Jeremiah Williams
Meets: Monthly
The Citizens Housing and Community Development Committee provides overall review of the City’s HUD funds. The committee makes funding recommendations to the Modesto City Council regarding the HUD Community Development Block Grant, Emergency Shelter Grant, and HOME Investment Partnership Grant programs. #6..
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12/1/2022 2
CITY’S RDA SUCCESSOR AGENCY/STANISLAUS COUNTY
Member: Rosa Escutia-Braaton
Alternate: Jeremiah Williams

HOUSING REHABILITATION LOAN COMMITTEE
Member(s): Jeremiah Williams
Mayor/Council Appointment(s): Mayor or Designee
Meets: First Thursday (Monthly)
The Rehabilitation and Loan Committee develops the administrative procedures and policies for housing rehabilitation loan funds as well as the down payment assistance program, eligibility and extent of governmental and private sector commitment of funds, and makes recommendations on policy issues to the Citizens Housing and Community Development Committee.

LAFCO
Member(s) Turlock/Riverbank
Mayor/Council Appointments: Majority of City Selection Committee Meets: Monthly
Stanislaus LAFCO is responsible for coordinating logical and timely changes in local governmental boundaries, conducting special studies which review ways to reorganize, simplify, and streamline governmental structure and preparing Spheres of Influence for each city and special district within each county. The Commission's efforts are directed to seeing that services are provided efficiently and economically while agricultural and open-space lands are protected.

LCC – CENTRAL VALLEY DIVISION
Member: Eric Alvarez
Mayor Appointment: Mayor
Meets: Quarterly

MID DOMESTIC WATER POLICY BOARD
Member(s): David Wright
Jeremiah Williams
Alternate: Sue Zwahlen
Mayor/Council Appointment(s): Two members of City Council Meets: Monthly
The MID Domestic Water Policy Board is the Policy Board that implements the Treatment and Delivery Agreement between MID and the City of Modesto for the Modesto Water Treatment Plant. It was originally comprised of three agencies: MID, City of Modesto, and Del Este each with two seats on the Policy Board. Since the City of Modesto bought Del Este on 1995, the City now holds four of the six seats. The revised TDA changes the number of seats for the City of Modesto from four seats to two seats effective November 1, 2005.
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12/1/2022 3

NORTH COUNTY CORRIDOR JPA
Member (s): David Wright
Alternate: Jeremiah Williams
Meets: Monthly

NORTH VALLEY REGIONAL RECYCLED WATER JPA
Member(s): Chris Ricci
Meets: As Needed

SAN JOAQUIN COUNTY AIR POLLUTION CONTROL BOARD - SPECIAL CITY SELECTION

COMMITTEE
Member: Chris Ricci
Alternate: Eric Alvarez
Meets: As needed
On September 30, 2008 Governor Schwarzenegger signed SB 1548 (Florez) which creates Section 40600.5 of the Health and Safety Code (H&SC) establishing a valley-wide Special City Selection Committee which is charged with making appointments of city representatives to the San Joaquin Valley Air Pollution Control District’s (District’s) Governing Board. The Special City Selection Committee consists of one member selected by a majority vote of the council of each city located within the District. An alternate can be selected to attend if the primary member is unable to attend a meeting.

STANCOG POLICY BOARD/EXECUTIVE COMMITTEE
Executive Committee Sue Zwahlen
Alternate:

Policy Board:

Member(s): Sue Zwahlen
Rosa Escutia-Braaton
David Wright
Alternate: Eric Alvarez
Meets: Third Wednesday of the Month
StanCOG (Stanislaus County Council of Governments) is comprised of representatives from each city in Stanislaus County and is responsible for regional planning, transportation, and housing within the county.

STANISLAUS COUNTY DISASTER COUNCIL
Member(s): Sue Zwahlen
Alternate: Nick Bavaro
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12/1/2022 4
The Disaster Council makes recommendations to local governing agencies on matters pertinent to the development of mitigation, disaster preparedness, response and recovery plans, and programs for any potential local emergency. This allows for consistent and uniform standards so that plans do not conflict with one another. Disaster Council meetings provide for communication and coordination between the public and private sectors in the County in analyzing and developing plans, projects, policies, and procedures for emergency operations.

STANISLAUS ECONOMIC DEVELOPMENT ACTION COMMITTEE
Member(s): Sue Zwahlen
Alternate: David Wright
Meets: Quarterly
The Economic Development Action Committee coordinates local participation in activities that stimulate new public and private investment, and seeks grants and local funds from the Federal Economic Development Administration.

STANISLAUS COUNTY LOCAL TASK FORCE ON SOLID WASTE MANAGEMENT Member(s): Chris Ricci
Alternate: Rosa Escutia-Braaton
Meets: Second Thursday of the Month
The Task Force serves as the advisory body for both the County and all nine incorporated cities relative to Integrated Solid Waste Management. The group assists the jurisdictions in identifying, developing, and implementing environmentally sound solid waste management policies, procedures, and programs. The Task Force assists, advises, and provides technical support relative to meeting the mandates of the California Integrated Waste Management Act of 1989.

STANISLAUS COUNTY WASTE TO ENERGY JPA
Member(s): Chris Ricci
Nick Bavaro
Alternate:

Meets: Quarterly (or more often as needed)
The Waste to Energy Joint Powers Authority is the policy board over the City – County Waste to Energy Plant managed by Covanta. The committee meets a minimum of once a quarter throughout the year.

STANISLAUS HOMELESS ALLIANCE
Member: David Wright
Meets: Monthly
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12/1/2022 5

STANISLAUS REGIONAL TRANSIT JPA
Members: David Wright
Chris Ricci
Alternate: Jeremiah Williams
Meets: Monthly
Stanislaus Regional Transit Authority (StanRTA), was formed to improve transit efficiencies and operations in the Stanislaus region. StanRTA will merge the City of Modesto MAX and the Stanislaus County StaRT transit systems into one system to better serve transit users.

TENTH STREET PLACE JPA
Member(s): Chris Ricci
Nick Bavaro
Alternate: Rosa Escutia-Braaton
Meets: Monthly
The Tenth Street Place Joint Powers Authority is comprised of a six-member policy board overseeing the operation of Tenth Street Place.

TUOLUMNE RIVER REGIONAL PARK JPA COMMISSION
Member(s): Nick Bavaro
Eric Alvarez
Meets: Bi-Monthly
The Tuolumne River Regional Park Committee acts in an advisory capacity to City of Modesto staff in carrying out the provisions of the TRRP Park agreement. The committee also serves in an advisory capacity to the legislative bodies of the parties in the agreement.

SR 911 EMERGENCY DISPATCH JPA COMMISSION
Member(s): Sue Zwahlen
Alternate: Nick Bavaro
Meets: Third Wednesday of Every
Month
Call processing and dispatch protocols are developed in conjunction with the responder agencies and adopted by our Dispatch Advisory Board (Sheriff, County Fire Warden, Modesto Police Chief and Modesto Fire Chief). SR9-1-1 staff apply these protocols when processing information for dispatch or in providing referral information to callers. #6..
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2/24/2023 1
City of Modesto
City Council Liaison Committees
February 28, 2023

BLIGHT ABATEMENT ADVISORY COMMITTEE
Member (Non-Voting): David Wright
Meets: Monthly
The Blight Abatement Advisory Committee acts as an advisory body to the City Council on policies to address blight in the community.

CITY-COUNTY AIRPORT ADVISORY COMMITTEE
Member(s): Eric Alvarez
Alternate: Jeremiah Williams
Meets: Bi-Monthly
The City of Modesto operates the Modesto City-County Airport for the benefit of all residents, business owners and visitors in and around the City of Modesto and surrounding areas. The Committee advises the City Manager and The Modesto City council on policy matters pertaining to the operation and management of the Modesto CityCounty Airport, the uses of the property adjacent to the airport if such uses may impact operations at the airport and any other matters as the City Manager may from time to time request.

CITY–COUNTY LIAISON COMMITTEE
Member(s): Rosa Escutia-Braaton
Nick Bavaro
David Wright
Joe Lopez
Jose Sanchez
Meets: Quarterly
The City–County Liaison Committee meets to discuss issues involving both agencies.

CITIZENS HOUSING AND COMMUNITY DEVELOPMENT COMMITTEE
Member(s): Chris Ricci
Eric Alvarez
Alternate: Jeremiah Williams
Meets: Monthly
The Citizens Housing and Community Development Committee provides overall review of the City’s HUD funds. The committee makes funding recommendations to the Modesto City Council regarding the HUD Community Development Block Grant, Emergency Shelter Grant, and HOME Investment Partnership Grant programs. #6..
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2/24/2023 2
CITY’S REDEVELOPMENT AGENCY (RDA) / SUCCESSOR AGENCY- STANISLAUS COUNTY Member: Rosa Escutia-Braaton
Alternate: Jeremiah Williams

HOUSING REHABILITATION LOAN COMMITTEE
Member(s): Jeremiah Williams
Mayor/Council Appointment(s): Mayor or Designee
Meets: First Thursday (Monthly)
The Rehabilitation and Loan Committee develops the administrative procedures and policies for housing rehabilitation loan funds as well as the down payment assistance program, eligibility and extent of governmental and private sector commitment of funds, and makes recommendations on policy issues to the Citizens Housing and Community Development Committee.

STANISLAUS LOCAL AGENCY FORMATION COMMISSION (LAFCO)
Member(s) Turlock/Riverbank
Mayor/Council Appointments: Majority of City Selection Committee Meets: Monthly
Stanislaus LAFCO is responsible for coordinating logical and timely changes in local governmental boundaries, conducting special studies which review ways to reorganize, simplify, and streamline governmental structure and preparing Spheres of Influence for each city and special district within each county. The Commission's efforts are directed to seeing that services are provided efficiently and economically while agricultural and open-space lands are protected.

LEAGUE OF CALIFORNIA CITIES – CENTRAL VALLEY DIVISION EXECUTIVE COMMITTEE Member: Eric Alvarez
Mayor Appointment: Mayor
Meets: Quarterly

MODESTO IRRIGATION DISTRICT (MID) DOMESTIC WATER POLICY BOARD Member(s): David Wright
Jeremiah Williams
Alternate: Sue Zwahlen
Mayor/Council Appointment(s): Two members of City Council Meets: Monthly
The MID Domestic Water Policy Board is the Policy Board that implements the Treatment and Delivery Agreement between MID and the City of Modesto for the Modesto Water Treatment Plant. It was originally comprised of three agencies: MID, City of Modesto, and Del Este each with two seats on the Policy Board. Since the City of Modesto bought Del Este on 1995, the City now holds four of the six seats. The revised TDA changes the number of seats for the City of Modesto from four seats to two seats effective November 1, 2005.
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NORTH COUNTY CORRIDOR JOINT POWERS AUTHORITY (JPA) – (INACTIVE) Member (s): David Wright
Alternate: Jeremiah Williams
Meets: Monthly

NORTH VALLEY REGIONAL RECYCLED WATER JOINT POWERS AUTHORITY (JPA) Member(s): Chris Ricci
Meets: As Needed

SAN JOAQUIN VALLEY SPECIAL CITY SELECTION COMMITTEE
Member: Chris Ricci
Alternate: Eric Alvarez
Meets: As needed
On September 30, 2008 Governor Schwarzenegger signed SB 1548 (Florez) which creates Section 40600.5 of the Health and Safety Code (H&SC) establishing a valley-wide Special City Selection Committee which is charged with making appointments of city representatives to the San Joaquin Valley Air Pollution Control District’s (District’s) Governing Board. The Special City Selection Committee consists of one member selected by a majority vote of the council of each city located within the District. An alternate can be selected to attend if the primary member is unable to attend a meeting.

STANISLAUS COUNCIL OF GOVERNMENTS (STANCOG) - EXECUTIVE COMMITTEE Member: Sue Zwahlen
Alternate: Rosa Escutia-Braaton
Meets: Second Monday of the Month
The Executive Committee is one of StanCOG's Standing Committees. The Committee is responsible for appointing members to Standing Committees, and for reviewing and making recommendations on special matters.

STANISLAUS COUNCIL OF GOVERNMENTS (STANCOG) - POLICY BOARD Member(s): Sue Zwahlen
Rosa Escutia-Braaton
David Wright
Alternate: Eric Alvarez
Meets: Third Wednesday of the Month
StanCOG (Stanislaus County Council of Governments) is comprised of representatives from each city in Stanislaus County and is responsible for regional planning, transportation, and housing within the county.
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STANISLAUS COUNTY DISASTER COUNCIL
Member(s): Sue Zwahlen
Alternate: Nick Bavaro
The Disaster Council makes recommendations to local governing agencies on matters pertinent to the development of mitigation, disaster preparedness, response and recovery plans, and programs for any potential local emergency. This allows for consistent and uniform standards so that plans do not conflict with one another. Disaster Council meetings provide for communication and coordination between the public and private sectors in the County in analyzing and developing plans, projects, policies, and procedures for emergency operations.

STANISLAUS ECONOMIC DEVELOPMENT ACTION COMMITTEE
Member(s): Sue Zwahlen
Alternate: David Wright
Meets: Quarterly
The Economic Development Action Committee coordinates local participation in activities that stimulate new public and private investment, and seeks grants and local funds from the Federal Economic Development Administration.

STANISLAUS COUNTY LOCAL TASK FORCE ON SOLID WASTE MANAGEMENT Member(s): Chris Ricci
Alternate: Rosa Escutia-Braaton
Meets: Second Thursday of the Month
The Task Force serves as the advisory body for both the County and all nine incorporated cities relative to Integrated Solid Waste Management. The group assists the jurisdictions in identifying, developing, and implementing environmentally sound solid waste management policies, procedures, and programs. The Task Force assists, advises, and provides technical support relative to meeting the mandates of the California Integrated Waste Management Act of 1989.

STANISLAUS COUNTY WASTE-TO-ENERGY COMPANY (SWEC) JOINT POWERS AUTHORITY (JPA)
Member(s): Chris Ricci
Nick Bavaro
Alternate:

Meets: Quarterly (or more often as needed)
The Waste to Energy Joint Powers Authority is the policy board over the City – County Waste to Energy Plant managed by Covanta. The committee meets a minimum of once a quarter throughout the year.
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STANISLAUS HOMELESS ALLIANCE (SHA)
Member: David Wright
Meets: Monthly

STANISLAUS REGIONAL TRANSIT AUTHORITY JOINT POWERS AUTHORITY (JPA) Members: David Wright
Chris Ricci
Alternate: Jeremiah Williams
Meets: Monthly
Stanislaus Regional Transit Authority (StanRTA), was formed to improve transit efficiencies and operations in the Stanislaus region. StanRTA will merge the City of Modesto MAX and the Stanislaus County StaRT transit systems into one system to better serve transit users.

TENTH STREET PLACE JOINT POWERS AUTHORITY (JPA)
Member(s): Chris Ricci
Nick Bavaro
Alternate: Rosa Escutia-Braaton
Meets: Monthly
The Tenth Street Place Joint Powers Authority is comprised of a six-member policy board overseeing the operation of Tenth Street Place.

TUOLUMNE RIVER REGIONAL PARK JOINT POWERS AUTHORITY (JPA) COMMISSION Member(s): Nick Bavaro
Eric Alvarez
Meets: Bi-Monthly
The Tuolumne River Regional Park Committee acts in an advisory capacity to City of Modesto staff in carrying out the provisions of the TRRP Park agreement. The committee also serves in an advisory capacity to the legislative bodies of the parties in the agreement.

STANISLAUS REGIONAL (SR) 911 EMERGENCY DISPATCH JOINT POWERS AUTHORITY (JPA)

COMMISSION
Member(s): Sue Zwahlen
Alternate: Nick Bavaro
Meets: Third Wednesday of Every
Month
Call processing and dispatch protocols are developed in conjunction with the responder agencies and adopted by our Dispatch Advisory Board (Sheriff, County Fire Warden, #6..
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Modesto Police Chief and Modesto Fire Chief). SR9-1-1 staff apply these protocols when processing information for dispatch or in providing referral information to callers. #6..
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CITY OF MODESTO

COUNCIL AGENDA REPORT
DATE OF MEETING:

February 28, 2023
February 6, 2023
TO: Mayor and Council
THROUGH: Joseph P. Lopez, City Manager
FROM: Jessica Hill, Interim Director of Community and Economic Development SUBJECT: Street Name Change from North Franklin Street to Kansas Avenue Extension CONTACT: Edwin Borquez, Assistant Planner
[email protected] 209-571-5516
DESCRIPTION:

Consider approving a Street Name Change from North Franklin Street to Kansas Avenue Extension to comply with Caltrans requirements and the project approval for State Route 132 Phase 1. (Funding Source: Various Funds)
STRATEGIC PLAN ELEMENT:

The recommended action supports the City of Modesto’s 2020-2025 Strategic Plan – Goal D:

Provide safe, efficient and reliable infrastructure through proactive community investment, maintenance and sustainability efforts.

BACKGROUND:

North Franklin Street is a local street that runs north-south between Kansas Avenue and the new State Route 132 (SR-132) alignment located west of the Needham Street Overpass.

The purpose of the State Route 132 West Freeway/Expressway - Phase 1 Project is to improve regional and interregional circulation, relieve traffic congestion along existing State Route 132 (SR132), and enhance safety and operations for the existing and proposed transportation network.

The Phase 1 Project includes construction of an access-controlled, 2-lane expressway (one lane eastbound and one lane westbound) along a new alignment just south of Kansas Avenue starting from the east side of State Route 99 (SR99) at the west end of the Needham Street Overpass, westbound to Dakota Avenue and then along Dakota Avenue to the existing SR132/Maze Boulevard. The Project also includes grade separations at Rosemore Avenue, Carpenter Avenue, Emerald Avenue, and SR99, and improvements to the 5th and 6th Street connections to the new SR132 expressway and the addition of an auxiliary lane at the northbound SR99 on-ramp at L Street.
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City Council - February 28, 2023
Street Name Change from North Franklin Street to Kansas Avenue Extension

DISCUSSION:

As part of the California Department of transportation (Caltrans) Project Approval / Environmental Document (PA&ED) for the State Route SR-132 project, the current as well as the ultimate interchange between highway SR-99 and the new SR-132 alignment will be considered a single interchange between the two State Routes.

Caltrans design policy requires all connector ramps within a single interchange to be connected with a common street name; therefore, with the future completion of phase 2 of the SR-132 project, the on and off ramps and connecting streets separating SR-132 and SR-99 must be connected by a route or a road with a single name.

Since the existing on and off ramps from State Route 99 are connected to Kansas Avenue, Caltrans requires all future ramps, connectors, and connecting streets have the same common name. This requirement was documented in the previously executed Project Report and Freeway Agreement with Caltrans. Therefore, since the westbound couplet connecting northbound highway SR-99 will connect to Kansas Avenue via North Franklin Street, North Franklin Street should be changed to Kansas Avenue Extension
The request by Caltrans is to establish a single street name for two separate City surface streets that are contiguous with each other, to the new 99/132 interchange and to avoid confusion for motorists when using the ultimate completed interchange.

There are two businesses with an existing Franklin Avenue addresses that are impacted by proposed street name change. Both businesses have been contacted by project staff to discuss the proposed change and continue to work with the business owners on the transition associated with the street name change.

Government Code Section 34091.1 states, “whenever the legislative body finds that a name should be adopted and applied to any city street, or that the existing name of any city street should be changed, the legislative body may adopt a resolution designating a name for, or change the name of, such street.” Furthermore, in accordance with Government Code Section 34092, the City Clerk is directed to transmit a certified copy of the approved resolution to the Stanislaus County Board of Supervisors.

Upon approving the street name change, staff shall notify affected public agencies, utility companies, and city departments regarding the street name change. The street name change shall become effective thirty (30) days after adoption of the resolution.

FISCAL IMPACT:

The State Route 132 project is funded by a complex matrix of fifteen different funding sources including, Measure L, Capitol Facilities Fees, and other State and Federal grant funds. The sign changes required for the street name change are already incorporated into the existing contract for SR 132 Phase I project. The businesses impacted by the changed address were also involved in the acquisition process of the SR 132 project and are being compensated for the impacts of costs associated with the street name change on the business. No additional fiscal impacts are associated with the proposed action.

COMMITTEE RECOMMENDATION:

The Planning Commission heard the item at its regularly scheduled meeting of February 6, 2023 and recommended City Council approval.
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City Council - February 28, 2023
Street Name Change from North Franklin Street to Kansas Avenue Extension

CEQA/NEPA REQUIREMENTS:

The proposed street name change is exempt from CEQA under Section 15301(c) of the CEQA guidelines, which exempts existing highways and streets.

RECOMMENDED COUNCIL ACTION:

Staff Recommendations:

Resolution approving a Street Name Change from North Franklin Street to Kansas Avenue Extension to comply with Caltrans requirements and the project approval for State Route 132 Phase 1.

Approved by:

Jessica Hill, Interim Director of CEDD
Joseph P. Lopez, City Manager
Attachments:

1. Resolution

2. Area Map
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MODESTO CITY COUNCIL
RESOLUTION NO. 2023-

RESOLUTION APPROVING A STREET NAME CHANGE FROM NORTH

FRANKLIN STREET TO KANSAS AVENUE EXTENSION TO COMPLY WITH

CALTRANS REQUIREMENTS AND THE PROJECT APPROVAL FOR STATE ROUTE 132 PHASE 1
WHEREAS, North Franklin Street is a local street that runs north-south between Kansas Avenue and the new State Route 132 alignment located west of the Needham Street Overpass, and
WHEREAS, the purpose of the State Route 132 West Freeway/Expressway - Phase 1 Project is to improve regional and interregional circulation, relieve traffic congestion along existing State Route 132 (SR-132), and enhance safety and operations for the existing and proposed transportation network; and WHEREAS, the Phase 1 Project includes construction of an access-controlled, two-lane expressway (one lane eastbound and one lane westbound) along a new alignment just south of Kansas Avenue starting from the east side of State Route 99 (SR99) at the west end of the Needham Street Overpass, westbound to Dakota Avenue and then along Dakota Avenue to the existing SR-132/Maze Boulevard; and WHEREAS, as part of the California Department of Transportation (Caltrans) Project Approval/Environmental Document for the SR-132 project, the current as well as the ultimate interchange between highway SR-99 and the new SR-132 alignment will be considered a single interchange between the two State Routes; and WHEREAS, Caltrans design policy requires all connector ramps within a single interchange to be connected with a common street name; therefore, with the future completion of Phase 2 of the SR-132 project, the on- and -off ramps and connecting #7..
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streets separating SR-132 and SR-99 must be connected by a route or a road with a single name; and
WHEREAS, since the existing on- and off-ramps from SR-99 are connected to Kansas Avenue, Caltrans requires all future ramps, connectors, and connecting streets have the same common name; and
WHEREAS, this requirement was documented in the previously executed Project Report and Freeway Agreement with Caltrans. Therefore, since the westbound couplet connecting northbound highway SR-99 will connect to Kansas Avenue via North Franklin Street, North Franklin Street should be changed to Kansas Avenue Extension; and
WHEREAS, Government Code Section 34091.1 states, “whenever the legislative body finds that a name should be adopted and applied to any city street, or that the existing name of any city street should be changed, the legislative body may adopt a resolution designating a name for, or change the name of, such street.”; and WHEREAS, once the resolution is approved, staff shall notify affected public agencies, utility companies, and city departments regarding the street name change; and WHEREAS, the street name change shall become effective thirty (30) days after adoption of this the resolution; and
WHEREAS, once the resolution is approved, staff shall notify affected public agencies, utility companies, and city departments regarding the street name change; and WHEREAS, the street name change shall become effective thirty (30) days after adoption of this the resolution; and
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WHEREAS, in accordance with Section 34092 of the Government Code, the City Clerk is directed to transmit a certified copy of this resolution to the Stanislaus County Board of Supervisors; and
WHEREAS, City staff shall immediately notify affected public agencies, utility companies, and city departments regarding the street name change; and WHEREAS, the street name change shall become effective thirty (30) days after adoption of this resolution; and
WHEREAS, the Council of the City of Modesto hereby authorizes and directs the Community & Economic Development Director to file a notice of approval or determination within five (5) business days with the Stanislaus County Clerk pursuant to Section 21152 of the Public Resources Code.

NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Modesto that it hereby approves a street name change from North Franklin Street to Kansas Avenue Extension.

The foregoing resolution was introduced at a regular meeting of the Council of the City of Modesto held on the 28th day of February 2023, 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: ________________________________
DIANE NAYARES-PEREZ, City Clerk
(SEAL)
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APPROVED AS TO FORM:

BY: ___________________________________________
JOSE M. SANCHEZ, City Attorney
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CITY OF MODESTO

COUNCIL AGENDA REPORT
DATE OF MEETING:

February 28, 2023
Date: January 17, 2023
TO: Mayor and City Council
THROUGH: Joseph P. Lopez, City Manager
FROM: Jessica Hill, Interim Director of Community and Economic Development SUBJECT: Prepare and File the Fiscal Year 2023-24 Engineer’s Annual Report for Landscape Maintenance Assessment District No. 1 (Dry Creek Meadows Subdivisions Nos. 1-6)
CONTACT: Peter Ibrahim, Infrastructure Financing Program Supervisor [email protected], 209-577-5211
DESCRIPTION:

Consider directing staff to prepare and file the Fiscal Year 2023-24 Engineer’s Annual Report for City of Modesto Landscape Maintenance Assessment District No. 1 (Dry Creek Meadows Subdivisions Nos. 1-6). (Funding: Landscape Maintenance Assessment District No. 1) STRATEGIC PLAN ELEMENT:

The recommended action supports the City of Modesto’s 2020-2025 Strategic Plan focus to provide safe, efficient, and reliable infrastructure through proactive community investment, maintenance and sustainability efforts.

BACKGROUND:

On December 12, 1988, the City of Modesto formed Landscape Maintenance Assessment District (LMAD No. 1). LMAD No. 1 provides funding for the landscape maintenance in the public right-of-way, street medians, and areas adjacent to the access control walls in Dry Creek Meadows Subdivisions Nos. 1 through 6. LMAD No. 1 is comprised of 749 single-family residential lots and three (2) public agency owned parcels located east of North McClure Road at the southwest corner of Claus Road and MID Lateral No. 2. A copy of the boundary map is provided as Attachment 2.

LMAD No. 1 was formed in accordance with the Streets and Highways Code Sections 22500 through 22679, more commonly known as the Landscape and Lighting Act of 1972 (the Act).

Section 22620 et. seq. of the Act requires the legislative body (the City Council) to take the following actions prior to August 10 of each year:
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City Council, February 28, 2023
Prepare and File the Fiscal Year 2023-24 Engineer’s Annual Report for Landscape Maintenance Assessment District No. 1

1. Adopt a resolution which generally describes any proposed new improvements or any substantial changes in existing improvements and orders the preparation and filing of the Engineer’s Annual Report.

2. Adopt a resolution approving the Engineer’s Annual Report as submitted or as modified by the legislative body.

3. Adopt a Resolution of Intention to levy and collect assessments within the assessment district for the fiscal year.

4. Conduct a public hearing.

5. Adopt a resolution confirming the diagram and assessment as originally proposed or as changed by the legislative body.

DISCUSSION:

When LMAD No. 1 was formed, no annual escalator was adopted; therefore, the annual assessment for LMAD No. 1 has remained the same since 1996. Staff does not anticipate any new improvements or substantial changes to existing improvements.

Staff recommends that the City Council direct staff to prepare and file the Fiscal Year 2023-24 Engineer’s Annual Report for LMAD No. 1 with the City Clerk. Approval of the Engineer’s Annual Report will be scheduled for City Council consideration in April of 2023, with the public hearing to follow in June of 2023.

FISCAL IMPACT:

All costs associated with LMAD No. 1 are paid by the assessments levied on each property within the assessment area. Included in these costs are contracted maintenance expenses, utility service charges, and City staff time associated with administration and maintenance of LMAD No. 1. Fiscal Year 2022-23 assessment was $19,474.00 (749 parcels at $26.00 per parcel).

COMMITTEE RECOMMENDATION:

This item is an annual report and was not presented to a Council Committee.

RECOMMENDED COUNCIL ACTION:

Staff Recommendations:

Resolution directing staff to prepare and file the Fiscal Year 2023-24 Engineer’s Annual Report for City of Modesto Landscape Maintenance Assessment District No. 1 (Dry Creek Meadows Subdivisions Nos. 1-6).
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City Council, February 28, 2023
Prepare and File the Fiscal Year 2023-24 Engineer’s Annual Report for Landscape Maintenance Assessment District No. 1

Approved by:

Jessica Hill,
Interim Director of Community and Economic
Development
Joseph P. Lopez, City Manager
Attachments:

1. Resolution

2. LMAD No.1 Boundary Map
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MODESTO CITY COUNCIL
RESOLUTION NO. 2023-

RESOLUTION DIRECTING STAFF TO PREPARE AND FILE THE FISCAL YEAR 2023-24 ENGINEER’S ANNUAL REPORT FOR CITY OF MODESTO LANDSCAPE MAINTENANCE ASSESSMENT DISTRICT NO. 1 (DRY CREEK MEADOWS SUBDIVISIONS NOS. 1-6)
WHEREAS, Resolution No. 88-935 adopted by the Council of the City of Modesto on December 13, 1988, initiated proceedings for the formation of Landscape Assessment District No. 1 (LMAD No. 1) to provide funding for the landscape maintenance in the public right-of-way, street medians and adjacent to the access control walls in Dry Creek Meadows Subdivisions Nos. 1-6; and
WHEREAS, LMAD No. 1 was formed in accordance with the
Landscaping and Lighting Act of 1972 (Streets and Highways Code Sections 22500 through 22679), and comprised of 749 single-family residential lots and three (3) public agency owned parcels; and
WHEREAS, Section 22620 et. seq. of the Streets and Highways Code requires the legislative body (the City Council) adopt a resolution which shall generally describe any proposed new improvements or any substantial changes in existing improvements and orders the preparation and filing of the report; and WHEREAS, the annual assessment for LMAD No. 1 has remained the same since 1996; and
WHEREAS, staff does not anticipate any new improvements or substantial changes in existing improvements.

NOW, THEREFORE, BE IT RESOLVED that the City Engineer is designated by this Council as the Engineer of Work for LMAD No. 1 and is hereby #8..
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directed to prepare and file an annual report in accordance with the provisions of the Landscaping and Lighting Act of 1972, as amended (Streets and Highways Code Sections 22500 through 22679).

The foregoing resolution was introduced at a regular meeting of the Council of the City of Modesto held on the 28th day of February, 2023, 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: _________________________

DIANE NAYARES-PEREZ,
City Clerk
(SEAL)
APPROVED AS TO FORM:

BY: ____________________________________
JOSE M. SANCHEZ, City Attorney
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CLAUS RD

N MC CLURE RD

MECHALYS WY
MID LATERAL NO 2
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CLAUS RD

WADDELL WY

N MC CLURE RD

CREEKWOOD DR

CODINGTON WY

ARDIA AVE

WICHITA WY

REDFIELD AVE

DRY CREEK DR

MECHALYS WY

GATESVILLE AVE

ELLENBORO AVE

DILLINGHAM AVE

MILBANK DR

LOUISBURG AVE

WILKESBORO AVE

CREEDMOOR AVE

LAURENBURG AVE

BERESFORD DR

SHARPSBURG DR

BALFOUR LN

ASHEBORO LN

HIGHMORE LN

EFFINGHAM LN

LARNED LN

ANSONVILLE LN

CARRBORO LN

MELBOURNE DR

SALINA DR

PARKSTON CT

SPINDALE DR

LEAVENWORTH WY

WILMONT LN

BATTLEBORO CT

CHADBURN CT

GARST RD

EDENTON WY

SCHUYLER WY

PARSONS CT

GOODLAND CT

SUNBURY CT
MID LATERAL NO 2
Assessment District Diagram
Landscape Maintenance Assessment District No. 1
(Dry Creek Meadows Subdivisions No. 1 - 6)
250 125 0 250
Feet Date: 1/9/2023
Document Path: K:\Projects\Maintenance\Mxd\landscape-d1-20230109.mxd #8..
- 79 -

CITY OF MODESTO

COUNCIL AGENDA REPORT
DATE OF MEETING:

February 28, 2023
Date: January 17, 2023
TO: Mayor and City Council
THROUGH: Joseph P. Lopez, City Manager
FROM: Jessica Hill, Interim Director of Community and Economic Development SUBJECT: Prepare and File the Fiscal Year 2023-24 Engineer’s Annual Report for Landscape Maintenance Assessment District No. 2 (Dry Creek Meadows Subdivisions Nos. 7-10, Creekwood Meadows Subdivision and Yosemite Meadows Subdivisions Units 1 and 2)
CONTACT: Peter Ibrahim, Infrastructure Financing Program Supervisor [email protected], 209-577-5321
DESCRIPTION:

Consider directing staff to prepare and file the Fiscal Year 2023-24 Engineer’s Annual Report for City of Modesto Landscape Maintenance Assessment District No. 2 (Dry Creek Meadows Subdivisions Nos. 7-10, Creekwood Meadows Subdivision and Yosemite Meadows Subdivisions Units 1 and 2). (Funding: Landscape Maintenance Assessment District No. 2) STRATEGIC PLAN ELEMENT:

The recommended action supports the City of Modesto’s 2020-2025 Strategic Plan focus to provide safe, efficient, and reliable infrastructure through proactive community investment, maintenance and sustainability efforts.

BACKGROUND:

On April 4, 1989, the City of Modesto formed Landscape Maintenance District No. 2 (LMAD No. 2). LMAD No. 2 provides funding for the landscape maintenance in the public right-of-way, street medians, and areas adjacent to the access control walls in Dry Creek Meadows Subdivisions Nos. 7 through 10, Creekwood Meadows Subdivision, and Yosemite Meadows Subdivisions Units 1 and 2. LMAD No. 2 is comprised of 135.2 acres and is located on the northeast corner of Yosemite Boulevard and North McClure Road and is bounded by Yosemite Boulevard on the south, North McClure Road on the west, Yosemite Meadows Drive on the east, and Mechalys Way on the north. A copy of the boundary map is provided as Attachment

2. LMAD No. 2 was formed in accordance with the Streets and Highways Code Sections 22500 through 22679, more commonly known as the Landscape and Lighting Act of 1972 (the Act).

Section 22620 et. seq. of the Act requires the legislative body (the City Council) to take the following actions prior to August 10 of each year:
#9..
- 80 -
City Council, February 28, 2023
Prepare and File the Fiscal Year 2023-24 Engineer’s Annual Report for Landscape Maintenance Assessment District No. 2

1. Adopt a resolution which generally describes any proposed new improvements or any substantial changes in existing improvements and orders the preparation and filing of the Engineer’s Annual Report.

2. Adopt a resolution approving the Engineer’s Annual Report as submitted or as modified by the legislative body.

3. Adopt a resolution of intention to levy and collect assessments within the assessment district for the fiscal year.

4. Conduct a public hearing.

5. Adopt a resolution confirming the diagram and assessment as originally proposed or as changed by the legislative body.

DISCUSSION:

In June of 2000, staff successfully completed a Proposition 218 ballot measure which increased the annual assessment and added an annual inflator based on the Building Cost Index. Staff does not anticipate any new improvements or substantial changes.

Staff recommends that the City Council direct staff to prepare and file the Fiscal Year 2023-24 Engineer’s Annual Report for LMAD No. 2 with the City Clerk. Approval of the Engineer’s Annual Report will be scheduled for City Council consideration in April of 2023 with the Public Hearing to follow in June of 2023.

FISCAL IMPACT:

All costs associated with LMAD No. 2 are paid by the assessments levied on each property within the 134.17-acre assessment area. Included in these costs are contracted maintenance expenses, utility service charges, and City staff time associated with administration and maintenance of LMAD No. 2. Fiscal Year 2022-23 assessment was $31,214.06 (134.17 assessed acres at $232.64/acre for all property which resulted in $232.64/acre for commercial property and $45.78 per parcel for residential property).

COMMITTEE RECOMMENDATION:

This item is an annual report and was not presented to a Council Committee.

RECOMMENDED COUNCIL ACTION:

Staff Recommendations:

Resolution directing staff to prepare and file the Fiscal Year 2023-24 Engineer’s Annual Report for City of Modesto Landscape Maintenance Assessment District No. 2 (Dry Creek Meadows Subdivisions Nos. 7-10, Creekwood Meadows Subdivision and Yosemite Meadows Subdivisions Units 1 and 2).
#9..
- 81 -
City Council, February 28, 2023
Prepare and File the Fiscal Year 2023-24 Engineer’s Annual Report for Landscape Maintenance Assessment District No. 2

Approved by:

Jessica Hill, Interim Director of Community
and Economic Development
Joseph P. Lopez, City Manager
Attachments:

1. Resolution

2. LMAD No.2 Boundary Map
#9..
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02-28-2023/C&ED/JHill 1 2023-

MODESTO CITY COUNCIL
RESOLUTION NO. 2023-

RESOLUTION DIRECTING STAFF TO PREPARE AND FILE THE FISCAL YEAR 2023-24 ENGINEER’S ANNUAL REPORT FOR CITY OF MODESTO LANDSCAPE MAINTENANCE ASSESSMENT DISTRICT NO. 2 (DRY CREEK MEADOWS SUBDIVISIONS NOS. 7-10, CREEKWOOD MEADOWS
SUBDIVISION AND YOSEMITE MEADOWS SUBDIVISIONS UNITS 1 AND 2) WHEREAS, Resolution No. 89-460, adopted by the Council of the City of Modesto on April 4, 1989, initiated proceedings for the formation of Landscape Maintenance Assessment District No. 2 (LMAD No. 2) to provide funding for the landscape maintenance in the public right-of-way, street medians, and areas adjacent to the access control walls in Dry Creek Meadows Subdivisions Nos. 7 through 10, Creekwood Meadows Subdivision, and Yosemite Meadows Subdivisions Units 1 and 2; and
WHEREAS, LMAD No. 2 was formed in accordance with the
Landscaping and Lighting Act of 1972 (Streets and Highways Code Sections 22500 through 22679); and
WHEREAS, Section 22620 of the Streets and Highways Code requires the legislative body (the City Council) to adopt a resolution which shall generally describe any proposed new improvements or any substantial changes in existing improvements and direct staff to prepare and to file a report accordingly; and WHEREAS, the annual assessment for LMAD No. 2 has gradually increased since July 2000; and
WHEREAS, staff does not anticipate any new improvements or substantial changes in existing improvements.
#9..
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02-28-2023/C&ED/JHill 2 2023-
NOW, THEREFORE, BE IT RESOLVED, that the City Engineer is designated by this City Council as the Engineer of Work for LMAD No. 2 and is hereby directed to prepare and file an annual report in accordance with the provisions of the Landscaping and Lighting Act of 1972, as amended, (Streets and Highways Code Sections 22500 through 22679).

The foregoing resolution was introduced at a regular meeting of the Council of the City of Modesto held on the 28th day of February, 2023, 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: _________________________
DIANE NAYARES-PEREZ, City Clerk
(SEAL)
APPROVED AS TO FORM:

BY: _____________________________________
JOSE M. SANCHEZ, City Attorney
#9..
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YOSEMITE BLV

N MC CLURE RD

MECHALYS WY

YOSEMITE MEADOWS DR

CLAUS RD
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079022012 079018044
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009001024
079012001 079011024
009001021
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009002002
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079009062 079012053 079012051 079011032
036013019
079012052
033092087
079028069
009001018
079025015

CLAUS RD

YOSEMITE BLV

N MC CLURE RD

CREEKWOOD DR

JARENA DR

MELBOURNE DR

WADDELL WY

JULENE DR

CODINGTON WY

MECHALYS WY

GELF LN

SENTINEL DR

DOTHAN DR

GATESVILLE AVE

LOUISBURG AVE

WILKESBORO AVE

ANSONVILLE LN

LAURENBURG AVE

TROON PL

EFFINGHAM LN

ASHEBORO LN

WILMINGTON WY

YOSEMITE MEADOWS DR

GARNER RD

BAYBORO DR

S MC CLURE RD

ANASTASIA DR

EL PORTAL PL

WESTFALL LN

ELLENBORO AVE

ARDIA AVE

ANNISTON CT

HALLSBORO CT

RECTOR LN

SCHUYLER WY

VANCEBORO CT HIGH POINT CT

MACON CT

SENTINEL CT

SUNBURY CT
Assessment District Diagram
Landscape Maintenance Assessment District No. 2
(Dry Creek Meadows Subdivisions No. 7 - 10)
(Creekwood Meadows Subdivision)
(Yosemite Meadows Units No. 1 & 2)
250 125 0 250
Feet Date: 1/9/2023
Document Path: K:\Projects\Maintenance\Mxd\landscape-d2-20230109.mxd #9..
- 85 -

CITY OF MODESTO

COUNCIL AGENDA REPORT
DATE OF MEETING:

February 28, 2023
Date: January 17, 2023
TO: Mayor and City Council
THROUGH: Joseph P. Lopez, City Manager
FROM: Jessica Hill, Interim Director of Community and Economic Development SUBJECT: Prepare and File the Fiscal Year 2023-24 Engineer’s Annual Report for the Shackelford Landscape and Lighting District
CONTACT: Peter Ibrahim, Infrastructure Financing Program Supervisor [email protected], 209-577-5321
DESCRIPTION:

Consider directing staff to prepare and file the Fiscal Year 2023-24 Engineer’s Annual Report for City of Modesto Shackelford Landscape and Lighting District. (Funding: Shackelford Landscape and Lighting District)
STRATEGIC PLAN ELEMENT:

The recommended action supports the City of Modesto’s 2020-2025 Strategic Plan focus to provide safe, efficient, and reliable infrastructure through proactive community investment, maintenance, and sustainability efforts.

BACKGROUND:

On June 29, 1999, the County of Stanislaus formed the Shackelford Landscape and Lighting District (Shackelford LLD). On July 1, 2012, the City assumed jurisdiction of the Shackelford LLD which includes 494 residential and commercial lots. The Shackelford LLD is comprised of 153 acres of land and bounded by Crows Landing Road on the west, East Hatch Road on the south, Union Pacific Railroad on the east, and State Route 99 on the north. The Shackelford LLD provides funding for the maintenance and service of six (6) 95-watt and seventy-six (76) 200-watt high-pressure sodium street lights located within its boundaries. A copy of the boundary map is provided as Attachment 2.

Shackelford LLD was formed in accordance with California Streets and Highways Code Section 22500 through 22679, more commonly known as the Landscape and Lighting Act of 1972 (“the Act”). Section 22620 et. seq. of the Act requires the legislative body (the City Council) to take the following actions prior to August 10th of each year:
#10..
- 86 -
City Council, February 28, 2023
Prepare and File the Fiscal Year 2023-24 Engineer’s Annual Report for the Shackelford Landscape and Lighting District

1. Adopt a resolution which generally describes any proposed new improvements or any substantial changes in existing improvements and orders the preparation and filing of the Engineer’s Annual Report.

2. Adopt a resolution approving the Engineer’s Annual Report as submitted or as modified by the legislative body.

3. Adopt a Resolution of Intention to levy and collect assessments within the assessment district for the fiscal year.

4. Conduct a public hearing.

5. Adopt a resolution confirming the diagram and assessment as originally proposed or as changed by the legislative body.

DISCUSSION:

Pursuant to section 22572 of the Streets and Highway Code, the method used to calculate the annual assessment is the total cost to operate and maintain the Shackelford LLD divided equally by the number of parcels located within the district. Staff does not anticipate any new improvements of substantial changes to existing improvements.

Staff recommends that the City Council direct staff to prepare and file the 2023-24 Engineer’s Annual Report for the Shackelford LLD with the City Clerk. Approval of the Engineer’s Annual Report will be scheduled for City Council consideration in April of 2023 with the Public Hearing to follow in June of 2023.

FISCAL IMPACT:

All costs associated with the Shackelford LLD are paid by the assessments levied on each property within the assessment area. There are 494 assessment parcels within the Shackelford LLD, and each parcel receives equal benefits. The Fiscal Year 2022-23 assessment was $30,262.44, $61.25 per parcel. Included in these costs are the maintenance and servicing of the improvements including, but not limited to, materials, equipment, labor, and administrative expenses.

COMMITTEE RECOMMENDATION:

This item is an annual report and was not presented to a Council Committee.

RECOMMENDED COUNCIL ACTION:

Staff Recommendations:

Resolution directing staff to prepare and file the Fiscal Year 2023-24 Engineer’s Annual Report for City of Modesto Shackelford Landscape and Lighting District. #10..
- 87 -
City Council, February 28, 2023
Prepare and File the Fiscal Year 2023-24 Engineer’s Annual Report for the Shackelford Landscape and Lighting District

Approved by:

Jessica Hill, Interim Director of Community
and Economic Development
Joseph P. Lopez, City Manager
Attachments:

1. Resolution

2. Shackelford LLD Boundary Map
#10..
- 88 -
02-28-2023/C&ED/JHill 1 2023-

MODESTO CITY COUNCIL
RESOLUTION NO. 2023-

RESOLUTION DIRECTING STAFF TO PREPARE AND FILE THE FISCAL YEAR 2023-24 ENGINEER’S ANNUAL REPORT FOR CITY OF MODESTO

SHACKELFORD LANDSCAPE AND LIGHTING DISTRICT
WHEREAS, on June 29, 1999, the County of Stanislaus formed the Shackelford Landscape and Lighting District (Shackelford LLD) for the purpose of administering the maintenance and service of six (6) 95-watt and seventy-six (76) 200- watt high-pressure sodium streetlights; and
WHEREAS, the Shackelford LLD was formed in accordance with the Landscaping and Lighting Act of 1972 (Streets and Highways Code Sections 22500 through 22679); and
WHEREAS, the Shackelford LLD is comprised of approximately 153 acres, includes 494 lots with both residential and commercial development, and is bounded by Crows Landing Road on the west, East Hatch Road on the south, Union Pacific Railroad on the east, and State Route 99 on the north; and WHEREAS, on July 1, 2012, the City of Modesto assumed jurisdiction of the Shackelford Landscape and Lighting District from the County of Stanislaus; and WHEREAS, Section 22620 of the Streets and Highways Code requires the legislative body (the City Council) to adopt a resolution which shall generally describe any proposed new improvements or any substantial changes in existing improvements and direct staff to prepare and to file a report accordingly, and WHEREAS, the annual assessment for the Shackelford LLD has gradually increased since June 1999; and
#10..
- 89 -
02-28-2023/C&ED/JHill 2 2023-
WHEREAS, staff does not anticipate any new improvements or substantial changes in existing improvements.

NOW, THEREFORE, BE IT RESOLVED that the City Engineer is designated by this Council as the “Engineer of Work” for the Shackelford LLD and is hereby directed to prepare and file an annual report in accordance with the provisions of the Landscaping and Lighting Act of 1972, as amended (Streets and Highways Code Sections 22500 through 22679).

The foregoing resolution was introduced at a regular meeting of the Council of the City of Modesto held on the 28th day of February, 2023, 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: ______________________________
DIANE NAYARES-PEREZ, City Clerk
(SEAL)
APPROVED AS TO FORM:

BY: ____________________________________
JOSE M. SANCHEZ, City Attorney
#10..
- 90 -

MAIN ST

PECOS AVE

RIO GRANDE AVE

CROWS LANDING RD

SCHOOL AVE

BOWIE AVE

CROWS LANDING RD
038030045
038039027
038018005
038019034
038019038
038019012
038019018
038018004
038025019
038039002
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038028051
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086010021
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038037017
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038037018
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038037063
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038037062
038037061
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038037060
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038035020
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038035032
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086009011
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086009025
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086009027
038038018
038029018
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038037088
086009019
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038037045038037046
056011025
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038022015
038023004
086009030
038022001
038019017
038025015
TID LATERAL NO 1
HWY 99

MAIN ST

E HATCH RD

ALAMO AVE
S 7TH ST

PECOS AVE

CROWS LANDING RD

EL PASO AVE

SANTA FE AVE

BOULDER AVE

RIO GRANDE AVE

BOWIE AVE

PUEBLO AVE

SCHOOL AVE

BAROZZI AVE

ZEFF RD

BROADWAY AVE
S 9TH ST
JIM WY
N HWY 99 (ON RAMP)

CROCKETT AVE
N HWY 99 (OFF RAMP)

JANOPAUL AVE

RITA CT

LITA CT
HWY 99
Assessment District Diagram
Shackelford Landscape and Lighting District
250 125 0 250
Feet
Date: 1/9/2023
Document Path: K:\Projects\Maintenance\Mxd\landscape-Shackelford-20230109.mxd #10..
- 91 -

CITY OF MODESTO

COUNCIL AGENDA REPORT
DATE OF MEETING:

February 28, 2023
Date: January 27, 2023
TO: Mayor and City Council
THROUGH: Joseph P. Lopez, City Manager
FROM: DeAnna Christensen, Director of Finance
SUBJECT: Citywide Risk Assessment
CONTACT: DeAnna Christensen, Director of Finance, [email protected] 209-577-5387
DESCRIPTION:

Consider approving the Citywide Risk Assessment prepared by Sjoberg Evashenk Consulting, Inc. (Funding Source: General Fund)
STRATEGIC PLAN ELEMENT:

This item advances the City of Modesto 2020-2025 Strategic Plan Area: Governance and Service Delivery: “build community trust in City government through responsive, transparent and efficient service delivery”; Goal J: “build a high-performance organization”.

BACKGROUND:

In February 2008, Modesto voters approved Measure M, otherwise titled “The Accountability in City Hall Measure of 2008”, which focused on amending Modesto’s Charter in ways that served to create a more open process in Modesto City governance. It particularly served to increase the oversight capacity of the elected Mayor and Councilmembers over certain matters such as budget and City operations. One such way proposed under the measure to provide greater opportunity to review City efficiencies was the creation of a separate Office of the City Auditor, who would serve as an independent Charter Office answering directly to the Council. The Charter amendment1 also specifically delineated the duties of the City Auditor, with particular emphasis on the conduct of City process, or performance audits.

One of the core functions of the City Auditor Office is to perform risk assessments to determine opportunities for greater efficiencies or employ best practices to be fiscally responsible.

Assessments are performed on all departments, reviewing policies, procedures, and practices. 1 Refer to Charter SECTION 902.1
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City Council, February 28, 2023
Citywide Risk Assessment

DISCUSSION:

Since the creation of the City Auditor position, the City has either employed a City Auditor or has contracted with a firm to provide these services between appointments. Further, the City recently reviewed various sections of the City Charter, the Charter Review Committee recommended, and voters subsequently approved, a number of changes to the Office of the City Auditor. Given the timing of these events, staff recommended using the interim period to hire a firm to complete a Risk Assessment and perform other auditing services as identified by staff and/or council.

On October 15, 2021, the Human Resource Department solicited Request for Proposals (RFP) to 12 auditing firms who specialize in internal audit functions. Five companies provided responsive and responsible proposals. An evaluation committee comprised of three Council members chosen by the full Council and one City staff member evaluated and scored the proposals. On April 5, 2022, under Resolution 2022-179, after a competitive bidding process, the City Council approved a contract with Sjoberg Evashenk Consulting to provide as-needed auditing services, including:
 Conducting financial, operational, and performance audits to determine compliance with laws and the appropriate utilization of resources including public funds, personnel, property, equipment, and space to ensure efficiency of operations.  Reviewing system of internal controls confirming the adequacy and effectiveness of the controls and that work complies with applicable professional standards.  Identifying causes of inefficiencies or uneconomical practices including inadequacies in management information systems, internal and administrative procedures, organizational structure, use of resources, allocation of personnel, purchasing polices, and equipment.
 Consulting with operating departments to recommend appropriate improvements to procedures, review progress on implementing the recommended improvements, and ensure action is taken.
 Conducting research, analysis, and special studies on complex and sensitive administrative and policy issues; prepare reports with recommendations for appropriate action.
 Providing timely information and report progress and results of audits to City Council.

The first task required under the contract was the completion of a citywide risk assessment.

Audit standards issued by the Institute of Internal Auditors2 require that audit organizations establish a risk-based plan to determine the priorities of the internal audit activity—or City Auditor function—and that the plan be consistent with the organization’s goals and priorities. A risk assessment is a means of identifying, measuring, and prioritizing potential audit areas based on the level of risk these areas pose to an organization. The purpose of a risk assessment is to help inform future audit planning efforts, and to better ensure limited audit resources are deployed in a manner that adds the greatest value to the City. It does this primarily by facilitating the identification of auditable units within the agency, such as divisions or programs; the assessment of inherent risks to the success of key operations, programs, and services; and the prioritization of potential audit topics. 2 https://www.theiia.org/globalassets/site/standards/mandatory-guidance/ippf/2017/ippf-standards-2017-english.pdf #11..
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City Council, February 28, 2023
Citywide Risk Assessment

In conducting the present study, Sjoberg Evashenk Consulting assessed and analyzed the results of prior studies and audits, legal and regulatory requirements, program goals and objectives, management concerns, compliance requirements, and internal controls such as performance management. The team conducted research, interviews, and document reviews with all City departments. The resulting report includes summary profiles for each department describing their functions, responsibilities, and a heat map rating the risks for those functions, along with potential audit topics. This report does not provide specific conclusions regarding the City’s operations or programs, nor does it present specific recommendations for improvement.

Rather, it is intended to facilitate a deliberative approach to directing limited audit resources, identifying nearly 50 audit topics, and it recommends consideration of specific audits for inclusion in a five-year audit plan.

This report will be used to initiate the development of an audit schedule defined under Modesto City Charter, Section 902.1(H) for future submittal by the City Auditor’s Office.

FISCAL IMPACT:

While the information contained in this report discloses areas of risk involving City departments and programs, there is no direct fiscal impact. The cost for Sjoberg Evashenk to complete this plan was $99,973 and was funded by the General Fund from the savings of the vacancy of the City Auditor position.

COMMITTEE RECOMMENDATION:

This item was presented at the January 23, 2023 Audit Committee and approved to move forward to Council.

RECOMMENDED COUNCIL ACTION:

Staff Recommendations:

Resolution approving the Citywide Risk Assessment prepared by Sjoberg Evashenk Consulting, Inc.

Approved by:

DeAnna Christensen, Director of Finance
Joseph P. Lopez, City Manager
Attachments:

1. Resolution

2. Citywide Risk Assessment

3. Measure M - “The Accountability in City Hall Measure of 2008”

4. January 23, 2023 – Audit Committee Presentation
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1 MODESTO CITY COUNCIL
RESOLUTION NO. 2023-

RESOLUTION APPROVING THE CITYWIDE RISK ASSESSMENT
PREPARED BY SJOBERG EVASHENK CONSULTING, INC.

WHEREAS, in February 2008, Modesto voters approved Measure M, otherwise titled “The Accountability in City Hall Measure of 2008”, which focused on amending Modesto’s Charter in ways that served to create a more open process in Modesto City governance; and
WHEREAS, one of the core functions of the City Auditor Office is to perform risk assessments to determine opportunities for greater efficiencies or employ best practices to be fiscally responsible; and
WHEREAS, the City recently reviewed various sections of the City Charter, the Charter Review Committee recommended, and voters subsequently approved, a number of changes to the Office of the City Auditor; and
WHEREAS, on October 15, 2021, the Human Resource Department solicited Request for Proposals (RFP) to 12 auditing firms who specialize in internal audit functions; and
WHEREAS, on April 5, 2022, under Resolution 2022-179, after a competitive bidding process, the City Council approved a contract with Sjoberg Evashenk Consulting to provide as-needed auditing services which included a citywide risk assessment; and WHEREAS, in conducting this assessment, Sjoberg Evashenk Consulting assessed and analyzed the results of prior studies and audits, legal and regulatory requirements, program goals and objectives, management concerns, compliance requirements, and internal controls such as performance management; and #11..
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2 WHEREAS, the resulting report includes summary profiles for each department describing their functions, responsibilities, and a heat map rating the risks for those functions, along with potential audit topics; and
WHEREAS, this report does not provide specific conclusions regarding the City’s operations or programs, nor does it present specific recommendations for improvement; and
WHEREAS, it is intended to facilitate a deliberative approach to directing limited audit resources, identifying nearly 50 audit topics, and it recommends consideration of specific audits for inclusion in a five-year audit plan.

NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Modesto that it hereby approves he citywide risk assessment prepared by Sjoberg Evashenk Consulting, Inc.
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3 The foregoing resolution was introduced in a regular meeting of the Council of the City of Modesto held on the 28th day of February 2023, 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: _____________________________
DIANE NAYARES-PEREZ, CMC, City Clerk
(SEAL)
APPROVED AS TO FORM:

BY: _____________________________
JOSE M. SANCHEZ, City Attorney
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455 Capitol Mall • Suite 700 • Sacramento, California • 95814 • Tel 916.443.1300 • www.secteam.com City of Modesto
Internal Audit
Citywide Risk Assessment – 2022
February 2023
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SJOBERGEVASHENK P a g e | 1
Table of Contents
Introduction....................................................................................................................................................2 Background ...............................................................................................................................................2 Risk Assessment Approach ......................................................................................................................4 Department Risk Profiles ...............................................................................................................................9 City Attorney..............................................................................................................................................9 City Clerk................................................................................................................................................. 12 City Manager’s Office.............................................................................................................................. 15 Community and Economic Development ................................................................................................ 18 Finance ................................................................................................................................................... 23 Fire.......................................................................................................................................................... 27 Human Resources................................................................................................................................... 30 Information Technology........................................................................................................................... 35 Parks, Recreation, and Neighborhoods................................................................................................... 39 Police ...................................................................................................................................................... 43 Public Works ........................................................................................................................................... 47 Utilities..................................................................................................................................................... 52 Risk Assessment Results ............................................................................................................................ 57 #11..
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SJOBERGEVASHENK P a g e | 2
Introduction
The City of Modesto asked Sjoberg Evashenk Consulting to conduct a citywide risk assessment as part of a long-term internal audit planning process. A fundamental component of a successful internal audit function requires determining which departments, programs, or activities to audit—and allocating scarce audit resources in a way that adds the greatest value to the City. As such, the purpose of this project was to identify key organizational units, programs, and operations of the City and to assess each in terms of the potential risk factors that could impede the effective delivery of services, reduce operational efficiency, or impair transparency and public accountability. As the relative magnitude and prevalence of potential risk factors associated with key programs increase, so too does the potential value a performance audit of the program will be to the City.

Background
The City of Modesto was founded as one of the San Joaquin Valley’s railroad towns in 1870. As of 2022, the City encompasses more than 37.4 square miles and takes pride in serving a population of nearly 217,900 residents, 145,000 households, and a prosperous business community.

Modesto is a Charter City and operates under a Council-Manager form of municipal government. Thus, the City Council stands responsible for establishing policy, passing local ordinances, voting appropriations, and developing an overall vision for the City. The City Council appoints a City Manager to serve as the Chief Administrative Officer for the City. In this role, the City Manager oversees the daily operations of the government, implements the policies established by the governing body, and oversees various departments primarily responsible for delivering services to City residents and administering City government. These departments include City Manager’s Office, Community and Economic Development, Finance, Fire, Human Resources, Information Technology, Parks, Recreation and Neighborhoods, Police, Public Works, and Utilities. In addition, the Office of the City Attorney, City Auditor, and City Clerk falls under the purview of the City Council. The City’s organizational chart is depicted in Exhibit 1 below.

EXHIBIT 1. CITYWIDE ORGANIZATIONAL CHART
Source: Official City Organization Charts
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As illustrated below, the City’s Fiscal Year 2022-23 budgeted operating expenses for all departments totaled approximately $467 million, of which the Utilities Department and Public Safety comprise most City expenditures. This amount does not include budgeted transfers of approximately $47 million.

EXHIBIT 2. ALLOCATED BUDGETED EXPENDITURES BY CITY DEPARTMENT Source: City of Modesto Fiscal Year 2022-23 Budget Book The City uses various funds to pay for Department operating expenses, including the City’s General Fund as well as a variety of special revenue or restricted funds such as Water, Wastewater, Internal Service Funds, Surface Transportation, Solid Waste, and Storm Drain. Other revenue sources include the City’s Golf Fund, Centre Plaza, and Airport fund. Restricted revenues are used to fund narrowly-specified City operations; for example, state and federal grant monies are generally restricted to the purposes/program for which the grant was approved, and use fees are generally required to be used to recover the cost of services rendered. The General Fund, however, is the City’s primary operating fund, with $171.4 million in projected revenues derived primarily from local taxes (e.g., sales, property, utility user, business license, and cannabis taxes), and may be used to fund almost any municipal service. Most General Fund revenues (80 percent) pay for public safety programs, including the Police and Fire departments. Other City services that rely on the General Fund include parks, recreation, planning, economic development, and general government administration.

According to City management, one of its most significant challenges has been a consistently underfunded General Fund needed to support general municipal services. According to the FY 2022-23 budget, the City’s General Fund has been underfunded since the Great Recession, with expenditure growth outpacing the growth of revenues annually. This has led to several rounds of staffing cuts, totaling 27 percent (224 FTEs) of its personnel in General Funds Departments within the last 15 years, and related service #11..
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reductions at a time when demands for such services have only increased. An independent study revealed that these cuts have led to operational inefficiencies and have impeded the City’s ability to fund and support appropriate service levels and maintain valuable public assets. In November 2022, the citizens of Modesto voted on a one-cent sales tax measure that could generate approximately $39 million annually that will help the city maintain and improve current levels of public safety, infrastructure, and parks.

Risk Assessment Approach
The Modesto City Charter requires the City Auditor to annually submit a one- to five-year audit schedule to the Audit Committee and Council for review and comment, and that this plan include the rationale for selecting certain departments and other municipal functions for the audit plan.1 Audit standards issued by the Institute of Internal Auditors require that the chief audit executive establish a risk-based plan to determine the priorities of the management audit activity, and that the plan be consistent with the organization’s goals. The purpose of a risk assessment is to help ensure that limited audit resources are deployed in a manner that fulfills the purpose of the City by identifying inherent risks to the successful execution of municipal operations, programs, and services; and differentiating between all the potential risks and areas of interest and prioritizing them based on the potential value that the audit may provide to the City. This process is intended to facilitate a deliberative approach to directing limited audit resources and to inform management of potential areas of risk for which it may wish to take action; it is not intended to provide specific conclusions regarding an organization’s operations or programs, or to present specific recommendations for improvement.

While potential financial and performance audit topics are wide-ranging, relating to any area within City government, the Modesto City Charter primarily empowers the City Auditor to conduct such audits of all departments, offices, boards, activities, agencies, and programs of the City in order to independently and objectively determine whether:2
• Activities and programs being implemented have been authorized by government Charter or Code, state law or applicable federal law or regulations and are being conducted and funds expended in compliance with applicable laws;
• The department, office, or agency is acquiring, managing, protecting, and using its resources, including public funds, personnel, property, equipment, and space, economically, efficiently, equitably, and effectively and in a manner consistent with the objectives intended by the City Council or enabling legislation;
• The entity, programs, activities, functions, or policies are effective, including the identification of any causes of inefficiencies or uneconomical practices; • The desired result or benefits as intended by the City Council are being achieved; • Financial and other reports are being provided that disclose fairly, accurately, and fully all information required by law, to ascertain the nature and scope of programs and activities, and to 1 Modesto City Charter 902.1(H)
2 Modesto City Charter, Section 902.1(C)
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establish a proper basis for evaluating the programs and activities including the collection of, accounting for, and depositing of, revenues and other resources; • Management has established adequate operating and administrative procedures and practices, systems or accounting internal control systems and internal management controls; and • Indications of fraud, abuse or illegal acts are valid and need further investigation.

To fulfill the strategic purpose of a citywide risk assessment, our team interviewed nearly 40 department heads and division managers to gather information about City operations, programs, and functions; to identify potential and inherent risks to the achievement of the missions, objectives, and goals of each; and to discuss current initiatives and activities of the departments. We also obtained and evaluated current and historical background information for each office, department, and program, including information available through the City’s website, program descriptions, budget documentation, strategic plans and annual reports, policies and procedures, and other relevant documentation, etc. In doing so, we identified the audit universe and auditable units, including City departments and the defined programs, services, and functions carried out by City departments, and identified the sources and types of risks associated with the missions, objectives, and goals of each.

Some information was obtained directly from objective reporting of past and current performance. This includes the relative size of one department’s budget or workforce in relation to other departments, one department’s financial exposure resulting from claims filed as compared to other departments, the number of contracts or capital projects managed by one department as compared to others, as well as key performance indicators and departmental performance reports. Other information was obtained through subjective analyses of current issues and trends affecting each department. This includes understanding and assessing public concern related to certain programs, services, or functions of City government; determining the extent to which certain problems are already known, such as through the press or previously completed audits or studies; or the extent to which previously manual activities have been automated. Both subjective and objective risk categories drive the ultimate calculated risk score for each department and program area, and the relative risk associated with each when compared to other City departments or program areas.

Exhibits 3 and 4 differentiate the nature of the risks auditors often use as criteria to prioritize potential audit topics. Exhibit 3 presents risk factors that are primarily a product of how the City administers a function— e.g., decisions related to resource allocation, strategic and organizational planning, and information technology, among other factors.
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EXHIBIT 3. RISK SOURCES & TYPES RELATED TO THE ADMINISTRATION OF CITY PROGRAMS Exhibit 4 presents risk factors that are inherent to the function, regardless of how the function is administered within the City. For example, public safety departments are inherently more visible to the public, are exposed to increased health and safety risks, and involve greater organizational complexity than smaller departments that do not regularly interface with the public. These factors are just as relevant as those resulting from how the City administers municipal operations. #11..
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EXHIBIT 4. INHERENT RISK SOURCES & TYPES OF RISKS
Based on information provided and auditor judgement, we assessed each organizational unit and program in terms of the potential risks that could impede effective delivery of services, reduce operational efficiency, or impair transparency and public accountability. In doing so, we prepared “risk profiles” for each department, which include general indicators of the size of the division, a description of the core functions of the division and inherent risks and general concerns associated with the division’s operations. These inherent risks are, in short, those factors that may impede the ability of the division to achieve, in an effective or efficient manner, its core functions.

While this report presents risk ratings for key departments, divisions, and programs, it is important to note that a high-risk score is not indicative of poor performance, lacking internal controls, or bad business practices. Rather, risk scores indicate the extent to which key programmatic or operational areas within City departments present sufficient inherent risks to warrant audit resources, and the extent to which we believe a performance audit of that area will yield value to the City.

To illustrate our assessment of risk associated with the auditable units within each department as compared to each other and to other divisions throughout the City, we include in each department profile a heat map similar to that shown in Exhibit 5. This is meant to illustrate the extent to which, or likelihood that, inherent risks associated with core municipal functions warrant audit resources and the potential impact that such an audit could have in assisting the City of Modesto address current and emerging challenges— that is, the relative value of spending audit resources in one area of municipal government versus another area.
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EXHIBIT 5. SAMPLE HEAT MAP
Based on our assessment of risk, we present numerous audit topics related to each division and/or program. A larger audit could include each of these as a specific audit objective; smaller audits could address just one or two of the topics listed in each profile.

This approach is designed to provide the City with information necessary to develop an audit plan that focuses on those areas within City government that are most likely to benefit from a performance audit. It is also designed to present the rationale behind our risk ratings to the City Council’s Audit Committee, and to facilitate an open and deliberative forum to discuss audit priorities and to determine the focus of limited audit resources.

1.0 2.0

3.0 4.0

5.0 1 2 3 4 5
Likelihood
Impact
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Department Risk Profiles
This section presents background information and risk profiles for each of the City’s key departments, including offices reporting directly to the City Council—the City Manager, City Attorney, and City Clerk—as well as the departments reporting directly to the City Manager: Community and Economic Development; Finance; Fire; Human Resources; Information Technology; Parks, Recreation, and Neighborhoods; Police; Public Works; and Utilities. Each profile includes a discussion of a City department; background information, core functions, key statistics and characteristics, inherent risks, and challenges associated with each; and potential audit topics designed to address those areas where internal audit resources could prove most valuable.

City Attorney
The mission of the City Attorney’s Office is to
provide outstanding legal services to the City of
Modesto. With an approximate budget of $1.8
million—representing less than one percent of
the City’s overall budget—and 5 full-time
equivalent (FTE) positions, the City Attorney’s
Office is responsible for general legal services,
personnel, litigation, community prosecution,
and specialty advice including but not limited to
land use, the environment, eminent domain,
real estate, and the first amendment. The City
Attorney’s Office implements the City Council
and Mayor’s direction and supports the efforts
of staff by providing advice on technical
matters, litigation, and prosecutorial services. The Office’s funding is derived entirely from the City’s General Fund and generates revenue from external sources such as legal service fees to the City.

The City of Modesto employs hybrid model in staffing its City Attorney’s Office. The appointed City Attorney and other attorney personnel are employed by third-party firms specializing in municipal and special district legal services, while four employees of the City Attorney’s Office—including one deputy attorney, two paralegals, and one assistant—are direct employees of the City of Modesto. It is common practice among local governments within California to outsource all or some City Attorney operations, including appointing personnel of private law firms as the City Attorney. Modesto’s hybrid approach provides many of the benefits of this outsourced model, specifically as it relates to the diverse expertise and experience available through a law firm rather than a single individual, as well as many of the benefits of employing in-house staff—primarily, continuity and familiarity with the protocols, culture, and operating environment of the City of Modesto. Exhibit 6 provides a summary of the Department’s fiscal year 2022-23 budgeted expenses for the Office in general.
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EXHIBIT 6. BUDGET BREAKDOWN BY DIVISION
Source: City Budget Book Fiscal Year 2022-23
The City of Modesto’s City Attorney’s Office is organized into both in-house and outsourced professional services, as well as a variety of areas of specialization, including litigation, employment law, finance, election law, and general counsel. This organizational structure is generally reflected in Exhibit 7.

EXHIBIT 7. CITY ATTORNEY ORGANIZATIONAL CHART
Source: Official City Organization Charts and Council Introduction Presentations Risk Analysis
The City Attorney’s Office has a relatively low level of funding and FTE allocation when compared to other city departments, as well as relatively low level of cash or other high-risk assets. Inherent risks associated with the City Attorney’s Office remain relatively low, but include continued adherence to professional standards, the efficient use of professional service contracts in a hybrid model that relies heavily on professional firms, balancing differing perspectives on risk mitigation, and the implementation of business processes and controls to mitigate risk and prevent the loss of City assets. The table below provides an evaluation of key divisions or programs within the Department, along with a description of responsibilities, budget, FTEs, and inherent risks.
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EXHIBIT 8. DIVISION AND PROGRAM DESCRIPTIONS

DIVISION / PROGRAM RESPONSIBILITIES FACTORS CONTRIBUTING TO RISK RATING City Attorney Provide general counsel legal services on behalf of the City, including providing legal advice to City officials and departments; representing the City’s interests in court proceedings; advising City officials on matters relating to municipal law, land use and environmental law, torts and litigation, labor and employment, and public records,
among others; and providing community prosecution
services, including prosecuting violations of City
ordinances.

Budget: $1-5 million FTEs: 0-5
Inherent Risks: Efficiency of
professional services provided by Office;
third party contract services; records
management; privacy security.

Overall, the City Attorney’s Office’s rating is low risk, as illustrated in the risk ranking below.

EXHIBIT 9. PROGRAM RISK RATING
Ultimately, the Office of the City Attorney represents relatively low risk in terms of audit priority when compared to other City departments and programs. Performance audit topics of the Office generally would not focus on the exercise of professional judgment or legal counsel, but would rather focus on the efficiency with which the Office manages resources, including internal business processes related to broader municipal responsibilities (such as risk management, in collaboration with Human Resources, contract review and processing, and record retention) and the Office’s administration of legal services contracts (including the Office’s practice requiring City departments to review and sign-off on outside attorney invoices for work performed on their behalf). Therefore, this risk assessment revealed the following potential audit objective:
1) Evaluate the Office’s business processes and information systems to identify potential inefficiencies or opportunities for improvement in the Office’s administrative functions.

City
Attorney

1.0 2.0

3.0 4.0

5.0 1.0 2.0 3.0 4.0 5.0
Likelihood
Impact
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City Clerk
With an approximate budget of $1.8 million—
representing less than one percent of the City’s
overall budget—and 5 FTE positions, the City
Clerk’s Office supports the Mayor and Council
and serves the public by providing records
maintenance and management services. These
services include preparation, posting and
maintenance of agendas, minutes, ordinances,
resolutions and contracts of the City Council;
coordinating advertisement of legal notices to
the Modesto Bee; maintaining the Modesto
Municipal Code, responding to public records
requests in a timely manner; ensuring
compliance with the Public Records Act;
performing duties of Election Official and overseeing all local elections for the City of Modesto and Modesto City Schools Board; receive and publicly open bids for City contracts; administering the oath of office to newly elected officials, and new hires. The City Clerk also oversees Mail Services and audit employee expense claims and reimbursements. The Office’s funding is derived primarily from the City’s General Fund and its Mail Services Internal Service Fund.

The department is organized into three units: City Clerk’s Office, Mail Services, and Elections. Exhibit 10 provides a summary of the Department’s fiscal year 2022-23 budgeted expenses for each division, which includes a budget allocation for the current year election cycle, and Exhibit 11 illustrates the Department’s organizational structure.

EXHIBIT 10. BUDGET BREAKDOWN BY DIVISION
Source: City Budget Book Fiscal Year 2022-23
Note: The City Clerk budgets for Elections during an Election Year and this is solely for the purpose of paying the County of Stanislaus for the cost of administering the election.
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EXHIBIT 11. CITY CLERK’S OFFICE ORGANIZATIONAL STRUCTURE Source: Official City Organization Charts and Council Introduction Presentations Risk Analysis
Inherent risks associated with City Clerk’s Office include: high levels of public relations, compliance with professional standards and state requirements, election compliance, adequate record keeping. The table below provides an evaluation of each division or program within the City Clerk’s Office with a description of responsibilities, budget, FTEs, and inherent risks.

EXHIBIT 12. DIVISION AND PROGRAM DESCRIPTIONS

DIVISION / PROGRAM RESPONSIBILITIES FACTORS CONTRIBUTING TO RISK RATING City Clerk’s Office Attend all regular and special meetings of the Council, and keep an accurate record of the proceedings of the
Council; keep a record of all ordinances of the City,
and of all written resolutions adopted by the Council, in such manner that the information contained therein will be readily accessible to the public; audit City payroll records; receive and conduct bid openings; receive
and process claims against the City, including
subpoenas and summons; and receive and process
Public Records Act requests.

Budget: $0-1 million FTEs: 0-5
Inherent Risks: Inefficiencies that could
impact the receipt and recording of publicly
recorded documents, as well as the
availability of records; cost-effective
administration of document requests;
potentially inefficient or insufficient support
of the Office’s core operations. Further,
workload has increased (e.g., requests for
public records increased from 300/year to
700/year over the past several years) and
reductions in FTEs since the beginning of
the pandemic presents challenges relating
to adequate coverage, cross training, and
records management.
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Mail Services Sorts and delivers mail throughout City Departments and provides mail services at the following locations:

Modesto, Centre Plaza, Corp Yard, Neighborhood
Center, treatment Plant, Dryden, Muni, Cop Shop,
Modesto PD, Museum, Airport, Creekside, Senior
Center, and Utilities.

Budget: $0-1 million FTEs: 0-5
Inherent Risks: Efficiency of operations;
potential for theft in the opening and
processing of mail with cash / checks.

Elections Administer oaths or affirmations and execute affidavits in connection with or pertaining to City affairs or
business; and certify copies of official records of the Clerk’s office; have charge of all City and Board of
Education elections; is Filing Officer of Campaign
Financial Disclosure Statements and Statements of
Economic Interests, as required by State Law.

Budget: $0-1 million FTEs: 0-5
Inherent Risks: The perception that
actions of the Office could unduly impact
the outcome of a fair election, whether
intentional or unintentional; sufficiency of
space.

The City Clerk’s Office has a low budget and FTE allocation when compared to other City departments.

The City Clerk is responsible for a wide range of duties with relatively few staff and limited ability to crosstrain and ensure knowledge transfer. There appears to be some areas—such as the City Clerk’s role in auditing City payroll—that may be outside the role City Clerks generally service in municipal government, but such cases appear to be limited. Because of this, the potential benefits of a performance audit of the City Clerk’s Office are likely to be in assessing the overall efficiency and effectiveness of the Office’s dayto-day operations. With this in mind, we illustrate below the risk rankings of each division or program area in relation to one another.

EXHIBIT 12. PROGRAM RISK RATINGS
The Office of the City Clerk represents relatively low risk in terms of audit priority when compared to other City departments and programs, particularly because of its relatively small budget and limited risk factors.

However, staffing constraints and diverse responsibilities present ongoing challenges for the Office.

Therefore, this risk assessment revealed the following potential audit objective:

City Clerk's
Office
Mail
Services
Elections

1.0 2.0

3.0 4.0

5.0 1.0 2.0 3.0 4.0 5.0
Likelihood
Impact
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1) Evaluate the Office’s business processes, information systems, and workload management practices to identify potential inefficiencies or opportunities for improvement in the Office’s operational activity and administrative functions.

City Manager’s Office
The City Manager is responsible for all operations of city government, making recommendations to the City Council on a variety of issues, carrying out policies and direction from the City Council, enforcing ordinances of the City, appointing, and supervising all City personnel, and being responsive and available to the community. The Office’s funding is derived entirely from the City’s General Fund.

With an approximate annual budget of $3.1
million—representing less than 1 percent of the
City’s overall budget—and 14 authorized FTE
positions (including 1 frozen FTE), the City
Manager is charged with carrying out policies
and direction from the City Council. Specifically,
the City Manager’s Office provides strategic
leadership and implements policy; provides
oversight to all City departments; develops and
recommends alternatives to address current
and future community needs; ensures that City
services are provided equitably and costeffectively; and provides oversight for the development of the City budget. Further, the
City Manager’s Office is responsible for citywide communications, including Community and Media Relations, the City’s website, social media platforms, mobile application interfaces, and collaboration with departmental leadership and public information officers.

In addition to directing and overseeing critical municipal services and initiatives that support and further the City’s strategic objectives—including Public Works, Utilities, Community and Economic Development, Parks and Recreation, and other City programs and departments—the Office of the City Manager also oversees legislative advocacy and constituent services, and houses the Budget Division. Exhibit 13 provides a summary of the Office’s fiscal year 2022-23 budgeted expenses for each division, and Exhibit 14 illustrates the Office’s organizational structure.
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EXHIBIT 13. BUDGET BREAKDOWN BY DIVISION
Source: City Budget Book Fiscal Year 2022-23
EXHIBIT 14. CITY MANAGER’S OFFICE ORGANIZATIONAL STRUCTURE Source: Official City Organization Charts and Council Introduction Presentations Risk Analysis
The City Manager’s Office has a relatively low budget and FTE allocation when compared to other City Departments. However, its role in implementing City policy and strategic initiatives, developing budgets, and monitoring resource allocation, and framing and messaging City priorities and communications place the Office in a position of strategic importance and high public visibility. Exhibit 15 provides an evaluation of key divisions or programs within the City Manager’s Office with a description of responsibilities, budget, FTEs, and inherent risks.
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EXHIBIT 15. DIVISION AND PROGRAM DESCRIPTIONS

DIVISION / PROGRAM RESPONSIBILITIES FACTORS CONTRIBUTING TO RISK RATING Budget Manages the preparation of the annual operating
and capital budgets, including citywide
collaboration on funding strategies, developing,
and executing the Annual Budget publication,
assisting with the development of the five-year
Capital Improvement Plan, maintaining multi-year
financial models, forecasting and monitoring
revenues and expenditures throughout the fiscal
year.

Budget: $0-1 million FTEs: 0-5
Inherent Risks: Reliability of financial models
and forecasts; reasonably accurate budget-toactual monitoring and reporting; compliance with grants and increasing grant footprint;
effectiveness of the City budget as a planning tool
and as a basis for performance measurement;
efficiency of the budgetary process.

City Manager’s
Office
Executes Council direction; provides strategic
leadership and implements policies; acts as
liaison for intergovernmental affairs; provides
oversight to all City departments; manages
interdepartmental initiatives; manages Council
and constituent requests; promotes and
implements performance management and
innovative projects for the organization.

Budget: $1-5 million FTEs: 5-10
Inherent Risks: Coordination and collaboration
among diverse and specialized City departments
and functions; public perception; framing and
messaging of City priorities; cost-effective
contract execution; public perception, framing and
messaging City priorities and communications;
successful engagement with external agencies.

With the exception of the Budget Office, the operational activities of the City Manager’s Office are generally not considered a high-priority subject of internal audit organizations. For instance, Community and Media relations are focused on messaging of the City and they are generally not considered high-risk. Conversely, the Budget Office plays a significant role in the strategic and legislative priorities of the City and is identified as moderate- to high-risk. As is the case with many municipal governments, the ability to prioritize and monitor the allocation of limited resources is of critical importance, particularly during economic downturns.

With these three key risk areas in mind, we illustrate in Exhibit 15 the risk rankings of each division or program area in relation to one another.

EXHIBIT 15. PROGRAM RISK RATINGS
Budget
Office
City Manager's Office

1.0 2.0

3.0 4.0

5.0 1.0 2.0 3.0 4.0 5.0
Likelihood
Impact
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Based on this assessment, there are two audit topics that ranked the highest and warrant consideration for future internal audit planning. These include:

1. Citywide budget and financial planning protocols and practices, including determining the sufficiency of budgetary tools available to City management to monitor budget-to-actual performance, evaluate forecasting models, or assess on a routine basis the financial performance of various City operations.

2. Audit of City Manager’s Performance Measurement System, the purpose of which would be to identify ways to build upon an already strong performance measurement system that is both meaningful to City officials and the public

3. Citywide engagement with the public, including the centralized role of the City Manager’s Office— such as through the GoModesto app, the City’s website, and social media—is efficient and effective, administered in a manner consistent with best and leading practice, and meets the City’s strategic priorities.

Community and Economic Development
The mission of the Community and Economic Development Department (Community and Economic Development or CED) is to enhance the quality of life for residents, businesses, and visitors by promoting and facilitating quality development, investing in and supporting cultural and destination amenities, and designing sustainable roads for motorized and non-motorized modes of transportation.

Community and Economic Development has
an approximate budget of $18.9 million and
represents 5 percent of the City’s overall
budgeted expenditures. Less than $7 million of
those funds come from the General Fund
Operating Budget, while $12 million come from
Measure L funds. Measure L is a one-half
percent sales tax to improve various regional
projects. Additionally, Department revenues
come from various sources such as taxes,
service fees, transportation fees, and grants.

Specifically, the Department receives funds
from Community Facilities District Funds,
Capital Facilities Fees, and Landscape
Maintenance Assessment Districts. Community
Facilities District funds generate just over $6 million per year in revenue and are created to provide a funding and reimbursement mechanism for public facilities and/or services and to ensure new development projects do not solely become the responsibility of the General Fund. Capital Facilities Fees account for administrative costs and are used to offset the impact of growth on community infrastructure. Landscape Maintenance Assessment Districts use property taxes to pay for landscaping, lighting, and other improvements and services in public areas; this fund generates approximately $70,000 per year. #11..
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With 72 authorized FTE positions (including 1 frozen FTE), the Community and Economic Development Department is responsible for all development-related activity in the City of Modesto, including planning and building permit services, building inspections, code enforcement, current and long-range planning, economic development, development engineering, housing and homeless services, and grant administration and related public services.

Community and Economic Development is organized into five divisions: Building Safety/Neighborhood Preservation Unit (NPU), Economic Development, Planning, Engineering, and Community Development.

Exhibit 16 provides a summary of the Department’s fiscal year 2022-23 budgeted expenses for each division, and Exhibit 17 illustrates the Department’s organizational structure.

EXHIBIT 16. BUDGET BREAKDOWN BY DIVISION
Source: City Budget Book Fiscal Year 2022-23
Note: Represents total monies for each division including grants and other revenue that are not part of the General Fund EXHIBIT 17. COMMUNITY AND ECONOMIC DEVELOPMENT DEPARTMENT ORGANIZATIONAL STRUCTURE Source: Official City Organization Charts and Council Introduction Presentations #11..
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Risk Analysis
Community and Economic Development has a moderate level of budget and FTE resources when compared to other City departments, and a relatively low level of at-risk assets; relies heavily on coordination and collaboration between other City departments, regional agencies, and external service providers; facilitates private development and serves a critical role in economic development; and remains highly visible to the public.

Exhibit 18 provides an evaluation of each division or program within Community and Economic Development with a description of responsibilities, budget, FTEs, and inherent risks. These include matters relating to grant compliance, challenges associated with affordable housing and homelessness, transportation project delivery with sales tax revenue and other State and Federal funding allocations, relatively high levels of outsourcing and contract monitoring, recent increases in cannabis licensing, revenue generation, and the potential for fraud, waste, and abuse.

EXHIBIT 18. DEPARTMENT AND PROGRAM DESCRIPTIONS

DIVISION /

PROGRAM

RESPONSIBILITIES FACTORS CONTRIBUTING TO RISK RATING
Building Safety/
Neighborhood
Preservation
Provides building permit application processing, plan
review, construction inspection, records maintenance,
and permit issuance; regulates construction and property use to ensure safe, healthy, sustainable, and accessible environments for occupancy
The Neighborhood Preservation Unit, or code
enforcement, helps maintain and improve the quality of
the community through awareness, education, and
enforcement.

Budget: $1-5 million FTEs: 10-20
Inherent Risks: High levels of public
interaction/perception, above average
health and safety risks, compliance with
state and local laws, consistent application
of code enforcement notices, and the
potential for fraud and abuse.

Economic
Development/
Administration
The division is charged with growing the economy and
enhancing the prosperity and quality of life in Modesto.

Staff are responsible for the City’s economic
development efforts and programs including cannabis
licensing, partnerships with the Convention & Visitors
Bureau, business attraction, retention and expansion,
marketing, business advisory services, etc.

Budget: $0-5 million FTEs: 1-5
Inherent Risks: External factors beyond
the City’s control and the effect on
business of policies and programs of
related City departments and external
agencies.

Planning Provides advanced and current planning services.

Advanced planning is the long-range comprehensive
visioning for future development and infrastructure.

Current planning is the review of entitlement applications and plans for proposed development such as
subdivisions, new commercial and industrial
development, annexations, etc.

Budget: $1-5 million FTEs: 5-10
Inherent Risks: Efficiency of intercity
coordination, timely and responsive
service to applicants, grant compliance,
staff shortages, public interaction, and the
potential for abuse.

Engineering Split into three units or subdivisions, the Engineering division oversees Special Projects, Land Development
Engineering and Transportation Engineering & Design.

Land Development is responsible for maintaining and
upholding the City’s standards and specifications, as well as improvement plans, new maps, transportation permits, and storm water issues. Transportation Engineering and
Design is responsible for the design of various
Budget: $10-25 million FTEs:10-20
Inherent Risks: High levels of interactions
with the public, efficiency of permitting
system, high levels of intercity
coordination, staff shortages, and large
amounts of grant money.
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The functional responsibilities of Community and Economic Development play a critical and visible role in economic development, resident satisfaction, and commercial activity throughout the City, and the functions of Community and Economic Development intersect with other City departments in ways that are unique among other City departments. Ultimately, however, this risk assessment revealed three primary areas of risk associated with Community and Economic Development.

First, a substantial portion of the work of Community and Economic Development relates to the processing of permits. In recent years, spurred by growth in development throughout the City, it has undergone several process improvements, including the implementation of a new permitting system (eTRAKiT), through which employees are able to process permit applications, assess fees, handle payments, and issue permits.

Business processes must be designed to ensure timely and quality service, but must also prevent and/or detect the potential for fraud, waste, or abuse.

Second, the Community and Economic Development receives and utilizes significant grant monies, including HUD monies, for planning and community development purposes. This has taken on an increasingly high profile during a complex environment with increasing homelessness, the COVID-19 pandemic, and rising housing costs. Business processes must be designed to ensure grant compliance; the prevention of fraud, waste, and abuse; and to achieve key program outcomes.

Third, code enforcement activities commonly face challenges including above average health and safety risks and public perception concerns, including the ability of Community and Economic Development to strike a balance between eliciting voluntary compliance versus applying enforcement measures.

With these three key risk areas in mind, we illustrate below the risk rankings of each division or program area in relation to one another.
transportation related CIP projects. Special Projects is responsible for the delivery of large transportation
construction projects (e.g., State Route 132 and
Interchange Reconstruction projects).

Community
Development
Administers all the City’s federal and state funding to support affordable housing and homelessness including
funding from HUD, CDGB, HOME, and ESG and ensures
its timeliness and appropriate use. Division is also
responsible for all infrastructure financing programs.

Budget: $5-10 million FTEs: 10-20
Inherent Risks: Efficiency of professional
services provided, large cash flows, equity
in financial administration, grant
compliance, potential for fraud and abuse,
and external factors outside the City’s
control.
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EXHIBIT 19. PROGRAM RISK RATINGS
Community and Economic Development represents relatively high-risk operations, particularly related to development and permitting functions, which involves significant public interaction and a large volume of monetary transactions, and Community Development, which involves significant grant funding and subrecipient monitoring. Therefore, based on the analysis undertaken in this risk assessment, three performance audits rank as the most important:

1. Performance audit of Community and Economic Development’s recent technological and process improvements (i.e., eTRAKiT) to determine (a) the extent to which the initiative’s goals were met, efficiencies were gained, and service delivery was improved; (b) whether continued opportunities for improvement exist; and (c) whether system controls are sufficient and effective to prevent or detect fraud, waste, and abuse.

2. Performance audit of Community Development’s grant funded programs, including an assessment of grant compliance, internal controls associated with grant programs, subrecipient compliance with City requirements, outreach efforts, efforts to expand the agency’s grant footprint, and the overall effectiveness in achieving program goals.

3. Performance audit of Community and Economic Development’s Code Enforcement operation, to determine the extent to which the program’s activities are consistent with best practices and the City’s strategic goals, its effectiveness in eliciting voluntary compliance, and whether opportunities for improvement exist.

Building Safety &
Neighborhood Preservation
Economic
Development
Planning
Engineering
Community
Development

1.0 2.0

3.0 4.0

5.0 1.0 2.0 3.0 4.0 5.0
Likelihood
Impact
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Finance
The mission of the Modesto Finance
Department (Finance) is to provide efficient
and effective fiduciary control of the City’s
assets and resources, to provide accurate and
useful financial information to City
organizations and the community served, and
to promote sound strategies that will support
the City’s fiscal and operational goals while
preserving the integrity of the organization.

With an approximate budget of $16 million—
representing 4.1 percent of the City’s overall
budget—and 61 FTE positions, Finance
oversees the City's financial functions. These
include the collection, receipt, disbursement
and accounting of all monies received in
accordance with Generally Accepted
Accounting Principles; cash management and
investment of cash balances; financial analysis
and forecasting, administration of a centralized
purchasing system; administration of inventory
stores for operating departments; issuance of new debt instruments and refinancing of existing debt instruments; preparation and development of financial statements and other financial programs; coordination of external audits; grant administration; and oversight and administration of outstanding debt covenants. Finance staff also serve as the primary advisors to the City Manager, City Council and City Departments in financial planning. Finance’s funding is derived primarily through utility fees, taxes, collections, grants, and the City’s Internal Services Fund.

In Fiscal Year 2021-22, Finance cites various accomplishments, including its oversight of the City’s American Rescue Plan funding; implementation of a new policy management platform PolicyTech to track, manage, and distribute all personnel and fiscal policies; and securing of relief funding for Modesto utility customers to cover past due bills during the COVID-19 relief period. Other accomplishments include successful Cannabis and Transient Occupancy audits and implementation of Senate Bill 1383.

Finance is organized into four units: Administration, Accounting, Purchasing, and Revenue Collection and Compliance. Exhibit 20 shows a breakdown of each divisions budgeted expenses for fiscal year 2022-23. #11..
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EXHIBIT 20. BUDGET BREAKDOWN BY DIVISION
Source: FY 2022-23 City Budget Book
Finance allocates functional responsibilities to each of the four divisions as depicted in Exhibit 21.

EXHIBIT 21. FINANCE DEPARTMENT ORGANIZATIONAL STRUCTURE Source: Official City Organization Charts and Council Introduction Presentations Risk Analysis
Finance has a relatively low level of funding and FTEs as compared to other departments, but is responsible for a significantly high level of cash or other high-risk assets such as revenue collection from various sources, state, and federal grant management, and purchasing of good and services. Most of the divisions of Finance perform functions that are common subjects of internal and external audit activities:
inventory management, procurement, grant management, accounting, cash handling, etc. Generally, each employs systems of internal controls to ensure compliance, fiscal integrity, and the prevention of fraud, waste, and abuse. As is typical in many cities, Finance is subject to annual external audits, which focus on #11..
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accounting functions and general financial-related internal controls and has been historically subject to a variety of internal audits over the years.

Inherent risks associated with Finance include ensuring investment policies are fiscally sound and in line with best practices for ensuring compliance with debt and investment policies and asset allocation; engaging in effective cash management practices; complying with grants and increasing grant footprint; preventing and detecting theft; considering the impact of cashiering operations on general accounting functions; and ensuring the most competitive price for high-quality goods or services, transparency in purchasing decisions, and compliance with relevant laws and regulations. Exhibit 22 presents the key divisions/programs administered by Finance, the core responsibilities of each, and key factors contributing to the programs’ risk rating.

EXHIBIT 22. DIVISION/PROGRAM EVALUATION
Most of the divisions in Finance perform functions that are common subjects of internal and external audit activities: inventory management, procurement, grant management, accounting, cash investments, cash handling, etc. Generally, each employs systems of internal controls to ensure compliance, fiscal integrity, and the prevention of fraud, waste, and abuse. As mentioned previously, Finance recently completed audits

DIVISION/PROGRAM RESPONSIBILITIES FACTORS CONTRIBUTING TO RISK RATING Administration Provides leadership and oversight services, cash management and investments, credit
reviews, bond financing, and agenda review.

Budget: $0-1 million FTEs: 0-5
Inherent Risks: Efficiency of services provided;
ensuring investment policies are fiscally sound and
in line with best practices; engaging in effective
cash management practices; and ensuring
compliance with investment policies and asset
allocation.

Accounting Manages the daily activities of the accounting functions (payroll, accounts payable, accounts
receivable, cash management, fixed assets, and
grant management) to accurately record all
financial activity; prepares financial statements,
and coordinates the City’s annual financial audit.

Budget: $1-5 million FTEs: 10-20
Inherent Risks: Accurately and efficiently process
and record all financial activity of the City; prevent
and detect potential of fraud, waste, abuse, or
otherwise the loss of City assets; and ensure
effective management of state and federal grants.

Revenue
Collection and
Compliance
Manages utility billing, cashiering and
collections; business licensing, cannabis taxes,
and Transient Occupancy Tax; citation
processing and adjudication; parking ticket
administration; and receipting of various
payments both on the phone and in person.

Budget: $5-10 million FTEs: 20-50
Inherent Risks: Cash handling; high staff turnover;
multiple cashiering systems and interfaces with the
enterprise system; high levels of customer
interactions; and controls over theft, fraud, waste,
or abuse.

Purchasing Facilitates the competitive procurement of
goods and services; inventory management and
control; maintains and expands relationships
with vendors; ensures that purchases are
acquired legally from responsible providers at
the lowest possible costs; and monitors contract
compliance.

Budget: $5-10 million FTEs:10-20
Inherent Risks: Ensuring the most competitive
price for high-quality goods or services,
transparency in purchasing decisions, and
compliance with relevant laws and regulations;
ensuring proper segregation of duties between
purchasing and accounts payable functions;
avoiding potential conflicts of interest and other
forms of fraud, waste, or abuse.
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related to the transient occupancy tax and cannabis tax revenues. Audit topics in these areas would not be an efficient use of city resources and therefore is not highlighted as being at high risk in this assessment. In addition to the audits, Finance has undergone various process improvements related to citywide purchasing and contracting practices. Further, Finance is in the process of procuring a new point of sales system and would benefit from an assessment or review of how efficiencies in current cashiering process will be affected by this change, as well as how those efficiencies could be improved with the use of a different system. With these key factors in mind, we illustrate below the risk rankings of each division or program area in relation to one another.

EXHIBIT 23. PROGRAM RISK RATINGS
Based on this assessment, there are four audit topics that ranked highest and warrant consideration for future internal audit planning.
1) Evaluate procurement and contracting practices with a focus on ensuring consistency with Finance and Council policies, proper segregation of duties with accounts payable functions, consistency with best practices, the overall efficiency of the City’s purchasing and contracting processes, and whether control deficiencies identified in the past have been corrected and resolved. 2) Evaluate cashiering processes, including those performed through differing information and cashiering systems, the impact that staff turnover has had on cashiering operations, and the role of Finance in ensuring adequate internal and system controls associated with each. 3) Evaluate grant management activities to determine whether existing policies and procedures, systems of internal control, and staffing and system resources are sufficient to administer, optimize, and account for grant monies in an efficient and effective manner. 4) Evaluate cash management, investment, treasury functions, and determine the extent to which investment and cash management activities adhere to best practices and established investment policies.

Finance
Administration
Accounting
Purchasing
Revenue
Collection &
Compliance

1.0 2.0

3.0 4.0

5.0 1.0 2.0 3.0 4.0 5.0
Likelihood
Impact
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Of these audit topics, the first two are ranked highest. Specifically, first, Finance reported past violations of the City’s contracting policies, including contracts exceeding approved thresholds and failures to record all contracts into the City’s enterprise system. Finance noted that substantial process improvements have been implemented to better prevent and detect such occurrences from happening in the future. However, given the passage of several years, we find it prudent to conduct an audit of the City’s contracting and purchasing practices to determine whether adequate controls are now in place and whether further opportunities for improvement exist. Second, with the recent implementation of eTRAKiT and other systems designed to facilitate cash collections, we also find it prudent to evaluate the extent to which cashiering operations, which are administered through a variety of systems that interface with Finance’s enterprise system, are subject to adequate internal and system controls to appropriately account for all transactions and mitigate the risk of fraud or abuse.

Fire
The mission of the Modesto Fire Department (Fire Department) is to proudly serve, protect, and partner with their community for a safer Modesto. With an approximate budget of $58 million—representing 15 percent of the City’s overall budget—and 215 FTE positions, the Fire Department is responsible for providing an all-risk emergency response to the
Modesto citizens and other neighboring towns.

This includes fire suppression and rescue
services, risk mitigation, community
preparedness and education, emergency
medical services (EMS), fire prevention,
hazardous materials, permit and design review,
building inspections, investigations, special
event planning, and overall public safety. In
addition to providing all-risk emergency
response services on behalf of the residents of
Modesto, the Fire Department contracts with
neighboring cities—such as Ceres, Stanislaus,
Turlock, Oakdale, and Salida—to provide fire
suppression, prevention, and other services
throughout the region. Fire department funding is primarily derived from the City’s General Fund and the Fire department generates revenue through contracted services provided to other jurisdictions within the region, such as other municipalities and the Industrial Fire Joint Powers Agency, fire code inspection services, emergency medical service billings, standby services for special events, educational safety programs, advanced life support charges, special permits, and other miscellaneous special services provided to users.

The Fire Department is organized into four divisions/service areas: Support/Business Operations, Operations/Suppression, Contract Agencies, and Community Risk Reduction. Exhibit 24 provides a summary of the Fire Department’s fiscal year 2022-23 budgeted expenses for each division, and Exhibit 25 illustrates the Fire Department’s organizational structure. #11..
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EXHIBIT 24. BUDGET BREAKDOWN BY DIVISION
City Budget Book Fiscal Year 2022-23
EXHIBIT 25. MODESTO FIRE DEPARTMENT ORGANIZATIONAL STRUCTURE Source: Official City Organization Charts and Council Introduction Presentations Risk Analysis
The Fire Department has a relatively high-level budget and moderate FTE allocation when compared to other city departments. Public Safety agencies are inherently high risk—large budgets, significant public profile and scrutiny, large number of at-risk assets and equipment, overtime usage, significant health and safety risks, legal exposure and workers’ compensation claims, and routine understaffing. The City of #11..
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Modesto also contracts its administrative and training services to various other cities, requiring a high degree of coordination. Further, the Fire Department has experienced budget reductions that has affected the timeliness of response times. Currently, the Fire Department meets response time goals 70-80% of the time. This poses a risk to the community as delayed response times could lead to loss of life. Exhibit 26 provides an evaluation of each division or program within the Fire Department with a description of responsibilities, budget, FTEs, and inherent risks.

EXHIBIT 26. DIVISION AND PROGRAM DESCRIPTIONS

DIVISION/PROGRAM RESPONSIBILITIES FACTORS CONTRIBUTING TO RISK RATING Support/Business
Operations
Provides administrative oversight for the department in terms of human resources and labor management, fiscal
management and budget, public information, facilities
and fleet maintenance, data analysis and reporting, IT
support and payroll.

Budget: $5-10 million FTEs: 5-10
Inherent Risks: High levels of inner-city
coordination.

Operations /
Suppression
Provides “all-risk” emergency response. Calls for service include a wide spectrum of medical aids, technical
rescues, public assists, hazardous materials, structure fires, vehicle accidents, and special operations such as high and low angle rescues, confined space rescues
and any other rescue that may require their specialized equipment. This division is also responsible for providing training for both firefighters in the academy as well as continuing education and training to all members of the department.

Budget: $25+ million FTEs: 50+
Inherent Risks: Health and safety risks,
staff and resource challenges and
efficiencies, technological efficiencies,
asset management, overtime usage and
cost controls concerns, the efficacy of
newly-implemented EMS billing protocols,
and the potential for abuse.

Community Risk
Reduction
Provides services to the community to reduce the loss of life and protect citizens from the threat of unwanted fires by providing fire and life safety and building code
inspections, new construction inspections, plan review
of construction documents, public fire safety education, special event planning and activities, and investigations into the origins and causes of fires.

Budget: $1-5 million FTEs: 5-10
Inherent Risks: High levels of public
interaction and timeliness of building
inspections and fire hazard identification.

Contract Agencies Provides full Service Operational Contract Services for the following agencies: City of Ceres, City of Oakdale, Oakdale Fire Protection District, and the Salida Fire
Protection District. Fire department also provides
administrative contract services agreements with the
City of Turlock Fire Department and the Stanislaus
Consolidated Fire Protection District
Budget: $10-25 million FTEs: 1-5
Inherent Risks: Efficiency of professional
services and high levels of inner and outer
city coordination.

Inherent risks associated with the Fire Department include: a high degree of public interaction, compliance with professional standards, establishing effective fire prevention strategies and response times, cost controls associated with contract services, necessary overtime costs, allocation of staffing (civilian v. sworn), inventory control and the potential for loss of high-risk assets, health and safety risks, and the potential for fraud, waste, and abuse. With these key risk areas in mind, we illustrate, in Exhibit 27, the risk rankings of each division or program area in relation to one another. #11..
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EXHIBIT 27. PROGRAM RISK RATINGS
Based on our assessment of management input, internal audit observations, or auditing best practices, we believe that consideration of the following topics are warranted:
(1) The effectiveness and efficiency of internal controls associated with overseeing and administering the Fire Department’s contract services, and its cost-recovery methods. (2) Permitting and inspection processes to determine whether the Community Risk Reduction services meet plan review and inspection timeliness standards (e.g., inspection cycles, review turnaround times, etc.)
(3) The Fire Department emergency response times and trends. (4) Inventory management, including equipment and other sensitive assets. (5) Staffing Study, including shift scheduling, civilian versus sworn staffing, and recruitment strategies. (6) Use of and control over overtime.

Human Resources
The mission of the Modesto Human Resources department (Human Resources) is to recruit and retain a qualified and diverse workforce to meet the varied needs of the organization; to train and develop the workforce toward performance that exceeds community expectations; and to recognize and minimize the risk of loss associated with the provision of City services.

Support/Business
Operations
Operations/Suppression
Contract
Agencies
Community Risk
Reduction

1.0 2.0

3.0 4.0

5.0 1.0 2.0 3.0 4.0 5.0
Likelihood
Impact
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With an approximate budget of $22.4 million—
representing 6 percent of the City’s overall
budget—and 18 FTE positions, the Human
Resources Department is responsible for
planning, coordinating, and administering a
comprehensive human resources management
program. This includes developing and
administering the City’s personnel system,
recruiting and hiring, training and development,
classification and pay administration, employee
benefits including a wellness initiative and
disability programs, employee and labor
relations, employee recordkeeping, risk
management, and other areas of human
resources management. Human Resources is
organized into three divisions: Administration, Employee Benefits, and Risk Management. Exhibit 28 provides a breakdown of each division’s budgeted expenses for fiscal year 2022-23.

EXHIBIT 28. BUDGET BREAKDOWN BY DIVISION
Source: FY 2022-2023 City Budget Book
Human Resources also administers Modesto’s claims for workers’ compensation benefits, working with a third-party administrator to monitor, control and resolve litigated claims, and provides training for various departments to minimize the potential risk of future losses. This department is also responsible for staff development to provide an opportunity for employees to have a direct impact on the workplace through participation in joint problem-solving activities with management and support continuing education for professional growth. Below is the organizational chart with corresponding roles and responsibilities. #11..
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EXHIBIT 29. HUMAN RESOURCES ORGANIZATIONAL CHART
Source: Official City Organization Charts, Budget Workshop Presentations Risk Analysis
Human Resources has a moderate-level budget and low FTE allocation when compared to other City departments. Like other agencies, however, Human Resources serves a critical role in organization-wide risk management—ensuring compliance with a wide range of federal and state laws—and in defining workplace culture. Inherent risks include talent management; recruiting efforts; effective classification and compensation structures; workforce development practices, and other efforts that may be insufficient to attract, retain, and motivate a talented and qualified workforce; controls relating to confidential employee data; employee compensation; legal compliance; and ensuring the Human Resources Information System, benefits enrollment processes, and related internal controls effectively ensure City employees are compensated as authorized and appropriate. Other risks include minimizing costs by striking the best balance between risk retention and risk transfer; establishing adequate reserves; routinely evaluating insurance markets to ensure cost-effective risk transfer; and ensuring effective risk mitigation efforts.

Exhibit 30 provides an evaluation of each division or program within Human Resources with a description of responsibilities, budget, FTEs, and inherent risks.

EXHIBIT 30. DIVISION/PROGRAM EVALUATION

DIVISION/PROGRAM RESPONSIBILITIES FACTORS CONTRIBUTING TO RISK SCORE Administration Recruits, hires, and retains qualified employees; manages the City’s classification and compensation
structure; administers workers compensation, leaves
of absence, and return-to-work programs; develops
and coordinates city-wide training programs;
administers labor and employee relations; personnel
file recordkeeping; and COVID case management.

Budget: $1-5 million FTEs: 10-20
Inherent Risks: Talent management,
recruiting efforts, classification and
compensation structures, workforce
development practices, and other efforts that
may be insufficient to attract, retain, and
motivate a talented and qualified workforce;
controls relating to confidential data, employee
compensation, and legal compliance.
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Employee
Benefits
Administers a full range of health, life, EAP,
retirement, and other group benefits offered to
employees; manages benefit and third-party
administrator contracts; oversees enrollment and
eligibility processes.
.

Budget: 5-10 million FTEs: 0-5
Inherent Risks: The potential for inefficient
management and administration of plan
offerings; the efficient and easy enrollment of
employees into benefit plans; the potential that
barriers to enrollment will reflect poorly on
benefit offerings; the potential that ineligible
dependents receiving benefits, and the risk
that employee benefit offerings may be
insufficient to attract, retain, and motivate a
talented and qualified workforce.

Risk Management Identify and assess risks, procure, and work with the City’s broker of record; conduct risk retention
analyses; administer self-insurance program;
procure insurance products; perform claims handling
and disposition including recovery, and administer
Worker's Compensation program and safety
program; manage loss control/prevention.

Budget: $10-25 million FTEs: 0-5
Inherent Risks: Minimizing cost by striking
the best balance between risk retention and
risk transfer; establishing adequate reserves;
routinely evaluating insurance markets to
ensure cost-effective risk transfer; and
ensuring effective risk mitigation efforts.

Human Resources has recently undergone new leadership and is recovering from high levels of turnover over the last few years. Most recently, the City’s 2019 Risk Management Report revealed several opportunities for improvement in the areas of framework, governance, self-insured funding policies and practices, general liability program, and its health and safety program. According to management, Human Resources staff has since then completed most recommendations in the risk report and are in the process of various internal administrative improvements. While staffing levels have stabilized since 2019, there are opportunities within Human Resources where extra staff would be beneficial, such as additional help in administrative services related to employee benefits.

Other cited areas of improvement relate to the use of its human resources software and physical office space. Currently, Human Resources uses a few different systems to conduct their operations (Neogov and Oracle). Neogov is a public sector human resource software. Modesto utilizes Neogov’s modules for performance management, goals, professional development, improvement plans, onboarding and offboarding. Human Resources also uses “Oracle”, a financial database system, for its added HR component. Management expressed concern over the systems compatibility with Neogov. Currently, staff inputs the same data into two different systems and thus this becomes an issue of inefficiency, and poses a risk of incorrect data entry. Further, due to the effects of the COVID-19 pandemic, the City of Modesto underwent a citywide hiring and purchasing freeze. This affected various departments within the City as loss of experienced staff has reportedly resulted in significant loss of institutional knowledge. As the State has made the move to reopen its economy, City departments find that they are struggling to meet operational needs with current staffing levels. This poses a challenge to the City—and many employers— and is exacerbated by relatively low compensation rates. According to compensation studies, the City’s compensation is approximately 7 percent below market when compared to similarly situated employers.

With these three key risk areas in mind, we illustrate below the risk rankings of each division or program area in relation to one another.
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EXHIBIT 31. PROGRAM RISK RATINGS
Based on our assessment of management input, internal audit observations, or auditing best practices, we believe that consideration of the following topics are warranted. 1) Determine whether the City’s human resources management activities are consistent with industry standards; sufficient to ensure compliance with federal, state, and local laws and regulations; effective in attracting, retaining, and motivating a highly talented, qualified, and effective workforce; and appropriately resourced and right-sized for the City of Modesto. This should include key elements of human resources management, such as policies and procedures related to and its administration of the following:
i. Hiring and Recruiting
ii. Classification and Compensation
iii. Employee Recordkeeping
iv. Human Resources Information System Functionality & Controls, including the efficiency between Oracle and NEOGOV systems in data entry and record retention v. Employee Relations and Performance Management
vi. Benefits Management
vii. Workplace Investigations
viii. Payroll Management (in coordination with Finance) ix. Professional and Workforce Development, Training, and Succession Planning x. Workplace Health & Safety
xi. State and Federal Compliance
Human Resource
Admin
Employee
Benefits
Risk Management

1.0 2.0

3.0 4.0

5.0 1.0 2.0 3.0 4.0 5.0
Likelihood
Impact
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2) Evaluate risk management practices, including the City’s reliance on third-party administrators and service providers, risk retention and transfer evaluations, claims processing, and workplace health and safety programs, as well as existing workload demands and future opportunities to enhance risk management operations in a growing City government. 3) Evaluate the administration of compensation practices to ensure employer costs are appropriately controlled by determining whether benefit enrollment processes appropriately control employee enrollment and cost-sharing, including the verification of dependent eligibility, and the recording of employee compensation within Oracle to ensure compensation (including bonuses and other differential pay) are appropriately approved and authorized.

Of these three potential audits, we find the first—a performance audit of the City’s human resources management functions—to be the highest priority. Risk management operations has undergone an independent assessment in the recent past, and the Human Resources Department has noted already existing controls related to the administration of compensation and benefits. Questions remain, however, whether human resources management functions are sufficiently resourced, relevant policies and procedures are sufficiently up-to-date, information systems are adequately streamlined, and processes are as efficient and effective as desired. Because of this, we believe a performance audit of the employee lifecycle—recruiting, onboarding, record keeping, training, compensation, offboarding, etc.—would provide the City with the greatest value at this time.

Information Technology
The mission of the Information Technology
Department (IT Department) is to build and
empower a smart, digital city providing
innovative technology solutions that support
City departments and the public. With an
approximate budget of $10.4 million—
representing 2.2 percent of the City’s overall
budget—and 36 FTE positions, the IT
Department provides technical customer
service and support to City departments as well
as a growing community of residents,
businesses, and visitors within the City of
Modesto. In doing so, it provides GIS and data
analytics, enterprise and business applications
development and support, enterprise technology services, project services and contracts management, cyber security, website development and maintenance, and other support services. Department funding and revenues primarily come from the Information and Technology Services Fund, which is an internal service fund that uses monies to upgrade and maintain the City’s network and technology infrastructure, and to develop and implement a coordinated city-wide information technology plan. #11..
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The IT Department is organized into four divisions: Enterprise Applications, Infrastructure, Administration, and Security. The City is in the process of adding a public safety division that will focus on Police and Fire operations, which is expected to fall within the Department’s Infrastructure Division. Exhibit 32 provides a summary of the IT Department’s fiscal year 2022-23 budgeted expenses for each division, and Exhibit 33 illustrates the IT Department’s organizational structure.

EXHIBIT 32. BUDGET BREAKDOWN BY DIVISION
Source: City Budget Book fiscal Year 2022-23
The IT Department is an Internal Service Fund (ISF), a cost recovery model. Funding is received through allocation charges to other City departments for services.

EXHIBIT 33. INFORMATION TECHNOLOGY DEPARTMENT ORGANIZATIONAL STRUCTURE Source: Official City Organization Charts and Council Introduction Presentations #11..
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Risk Analysis
The IT Department has a moderate-level budget and FTE allocation when compared to other departments, with a higher-than-average level of sensitive assets, particularly computers and small peripherals. Like most information technology departments in municipal governments, inherent risks associated with the IT Department include:
• Cybersecurity and network hygiene.
• Sufficiency of systems and applications to meet end user needs. • Data management.
• Customer service.
• Controlling sensitive assets and sensitive data.
• Maintaining cost-efficiency in information technology procurement. • Reliability and functionality of communications equipment.

The following exhibit provides an evaluation of each division or program within the IT Department with a description of responsibilities, budget, FTEs, and inherent risks.

EXHIBIT 34. DIVISION AND PROGRAM DESCRIPTIONS

DIVISION/PROGRAM RESPONSIBILITIES FACTORS CONTRIBUTING TO RISK RATING Administration Responsible for financial oversight for the IT Department.

Provides oversight for the preparation of the annual
budget; ensures compliance with City procurement
policies; prepares purchase requisitions, RFPs, and all procurement activities for the department.

Budget: $0-1 million FTEs: 10-20
Inherent Risks: Efficiency of services
provided to IT Department programs;
maintaining cost-efficiency and
compliance in information technology
procurement.

Security Responsible for ensuring protection against cybersecurity threats and enhancements to ensure that City networks
and infrastructure are safe and reliable, including
overseeing the security of IT organizations, implementing spam filters and scan servers, managing public websites, and ensuring proper disaster recovery protocols.

Budget: $0-1 million FTEs: 0-5
Inherent Risks: Cybersecurity and
network hygiene; reliability and
functionality of communications
equipment; ensuring proper controls over
sensitive assets and sensitive data; and
updating disaster recovery plans.

Enterprise
Applications
Responsible for implementation, maintenance, and
support of business software applications utilized by all City departments. Some major applications supported
include the financial system, Payroll, Human Resources, Budget, GIS, Utility Billing and Customer Service, Agenda Management, Public Safety, Parks Reservations, and
GoModesto.

Budget: $1-5 million FTEs: 10-20
Inherent Risks: Sufficiency of systems
and applications to meet end user needs;
data management; customer service;
controlling sensitive assets and sensitive
data; reliability and functionality of
communications equipment.
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Infrastructure Responsible for technical infrastructure, allowing delivery and execution of critical systems within the City, including implementing, maintaining, and supporting the City’s data communications network, internet, telephone systems,
servers, email system, and the City’s desktops, printers, mobile devices, phones, and network infrastructure.

Budget: $5-10 million FTEs: 20-50
Inherent Risks: Availability of the network
(requires redundancy for critical access
items); Customer service; controlling
sensitive assets and sensitive data;
ensuring the information technology
infrastructure is designed to meet current
and future needs of City employees,
businesses, and residents.

Based on this assessment, we find that all key programs and divisions within the IT Department represent medium- to high-risk, with the exception of Administration. Citywide, management expressed general satisfaction with the City’s information systems—though there was hope that enhanced technology capabilities would increase operational efficiencies and improve service to the public. Overall, there appeared to be a high level of satisfaction with the services provided by the IT Department and the direction it is heading, but also a recognition that the City’s information technology resources are outdated and underutilized. The IT Department management described numerous initiatives currently underway, including significantly enhancing its focus on public safety, implementing a new citywide service request platform, managing a backlog of service requests, addressing limited data management capabilities, and evaluating a large portfolio of antiquated applications with limited capacity.

Further, the Department recently conducted an internal cybersecurity assessment that identified significant deficiencies in the City’s security system. Specifically, the assessment revealed that the City is at a higher than desirable risk of vulnerability to threat actors and requires more investment in cybersecurity tools to help proactively detect, prevent, and/or recover from an attack. Below, we illustrate the relative risk ratings of the IT Department’s core operating divisions.

EXHIBIT 35. PROGRAM RISK RATINGS
Administration
Security Enterprise
Applications
Infrastructure

1.0 2.0

3.0 4.0

5.0 1.0 2.0 3.0 4.0 5.0
Likelihood
Impact
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Information technology is generally considered to be a moderate- to high-risk function in any government organization, and recommended performance audits typically focus on:
(1) Cybersecurity and network hygiene;
(2) Data management protocols;
(3) Customer service efficiency;
(4) Disaster recovery planning;
(5) Cost-effectiveness of operations, including contracting and purchasing; and (6) Information technology project management policies, processes, and practices, and the consistency of the IT Department’s efforts with best practices.

Of these general topics we find that cybersecurity is of paramount concern and the highest priority audit topic for the City of Modesto.

Parks, Recreation, and Neighborhoods
The mission of the Parks, Recreation, and
Neighborhoods Department (Parks
Department) is to serve the citizens of Modesto
through quality recreational programming,
welcoming community centers, active
neighborhood engagements, a variety of
cultural awareness events, inviting destinations
and attractions, and planning and operation of
the City’s vibrant park and trail systems.

With an approximate budget of $21.2 million—
representing 5.4 percent of the City’s overall
budgeted expenditures—and 53.75 authorized
FTE positions (including 1 frozen FTE), the
Parks Department oversees the planning,
development, and maintenance of 76 community, neighborhood and regional parks, trails, and sports and recreational venues. In addition to full time staff, the Parks Department has over 300 part time employees that are critical for most department operations. The Parks Department’s funding primarily comes from the City’s General Fund and “Other” sources. The Parks Department generates revenue through various grants, recreation and neighborhood fees, and a Non-Capital Parks Fund that generates revenue from the Stanislaus Community Foundation. The Parks Department provides a variety of services and recreational activities to the community such as, after school programs, adaptive youth and adult programs, sports and aquatics programs, senior programs, and volunteerism. In addition to the many park, recreation, and community services the department organizes and operates, the Parks Department is also responsible for administering business contracts for the operation of the Modesto Centre Plaza, historical properties, and the John Thurman Field Ballpark. It also coordinates guest services for park and facility reservations and program registrations.
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The Parks Department consists of four divisions: Administration and Facilities, Recreation and Neighborhoods, Parks Planning and Development, and Park Operations and Maintenance. Exhibit 36 provides a summary of the Department’s fiscal year 2022-23 budgeted expenses for each division, and Exhibit 37 illustrates the Parks Department’s organizational structure.

EXHIBIT 36. BUDGET BREAKDOWN BY DIVISION
Source: City Budget Book Fiscal Year 2022-23
EXHIBIT 37. PARKS, RECREATION, AND NEIGHBORHOODS DEPARTMENT ORGANIZATIONAL STRUCTURE Source: Official City Organization Charts, New Council Introduction Presentations Risk Analysis
The Parks Department has a moderate- to high-level of funding/FTEs when compared to other City departments/offices, and a high level of cash or other high-risk assets and equipment. Exhibit 38 provides #11..
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an evaluation of each division or program within the Parks Department with a description of responsibilities, budget, FTEs, and inherent risks. These include matters relating to grant compliance, the effects of COVID19 on revenue-generating activities, project management on capital improvement projects, high-levels of public visibility and engagement, revenue generation and the potential for abuse, significant levels of deferred maintenance, coordination among regional partners, complex environment with increasing homelessness, and recent reorganizational efforts. Further, the Parks Department has a deferred liability of more than $74 million and should be considered a high risk to the City. Exhibit 38 provides an overview of each division/program as well as relevant risk factors.

EXHIBIT 38. DIVISION AND PROGRAM DESCRIPTIONS

DIVISION/PROGRAM RESPONSIBILITIES FACTORS CONTRIBUTING TO RISK RATING Administration
and Facilities
Administration of the Parks Department, facilities,
management, and guest services. Oversees the
management and operation of Modesto Centre Plaza,
McHenry Mansion, McHenry Museum, John Thurman
Field, and two golf courses. It also administers business contracts and coordinates reservations for park, facility, and field rentals.

Budget: $5-10 million FTEs: 10-20
Inherent Risks: Federal grant
compliance, coordination among regional
partners, low staff levels, and economic
effects imposed by the COVID-19
pandemic. City should also evaluate
current contracts and ensure they are
meeting the city's needs.

Recreation and
Neighborhoods
Provides services for recreation operations, sports, and aquatics, youth centers, adaptive programs, neighborhood engagement, soccer complex management; community
events, Culture and Youth Commission; community center
programs and operations.

Budget: $5-10 million FTEs: 10-20
Inherent Risks: Low staff levels,
economic effects imposed by the COVID19 pandemic, public health and safety, high level of public engagement.

Planning and
Development
Acquisition, design, & construction of new parks or other large community projects. Provides landscape and
irrigation construction plan review for commercial and
residential development, submits grants for state and
federal funding, and helps manage Tuolumne River
Regional Park. Coordinates the “Park Partners Program”
which offers community groups the opportunity to partner with the Parks Department to make improvements to their neighborhood parks and amenities.

Budget: $1-5 million FTEs: 0-5
Inherent Risks: Federal grant
compliance, high public engagement, low
staff levels, economic effects imposed by
the COVID-19 pandemic, health and
safety.

Park Operations
and Maintenance
Maintenance division of all 76 City Parks and recreational facilities. Staff prepares sites for park, picnic, and ball field rentals and provides preparation and clean up assistance at community events. They oversee the City’s landscaping contract with Grover Landscaping. In addition, this division provides vegetation management, fire break, and
abatement services throughout the City.

Budget: $5-10 million FTEs: 20-50
Inherent Risks: Worker Health and
Safety, low staff levels, coordination with
other divisions, deferred maintenance,
economic effects imposed by the COVID19 pandemic, growing number of homelessness in parks.

The Parks Department has a moderate level of budget and FTE resources when compared to other departments, and a moderate level of at-risk assets. It provides a variety of functions that vary from contract management, development facilitation, maintenance, and recreation services to the public. Some risks within the Parks Department include health and safety for visitors and staff; cash handling and payment processing at park locations; ensuring accessibility and being responsive to recreational needs; #11..
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lacking technology, including a reliable asset maintenance system; maintaining reliable revenue streams; maintaining the park system in a cost-effective manner; and maintaining adequate funding. In Exhibit 39, we illustrate the relative risk ratings of the Parks Department’s core operating divisions.

EXHIBIT 39. PROGRAM RISK RATINGS
Due to the restructuring of the Parks Department within the last decade, expansive services, large sum of deferred maintenance, and the large number or parks and facilities, the City would benefit from performance audits involving the following topics.
1) Evaluate the Parks Department’s strategic planning, particularly as it relates to:
a. Capital asset planning and the impacts on future operating costs. b. Recreational programming, utilization, and responsiveness to community needs. c. Maintenance programming and the approaches taken by the Department to assess and maintain its asset infrastructure, as well as staffing levels to adequately maintain City assets.
2) Evaluate facility contracts, including those associated with the Convention Center, John Thurman Stadium, and municipal golf courses.
3) Evaluate capital project management and project delivery functions within the Parks Department and in relation to the Department of Public Works.
4) Evaluate the Parks Department’s performance measurement system and its effectiveness in capturing relevant metrics regarding the utilization of park assets and recreational programming.

Of these, we find the first audit topic to be the highest priority. Given the restructuring of the Parks Department within the last decade and the impacts of the pandemic on the Parks Department, an overall assessment of the Parks Department’s strategic approach to capital, recreational, and maintenance Parks
Administration
and Facilities
Recreation and
Neighborhoods
Parks Planning
and Development
Park Operations
and Maintenence

1.0 2.0

3.0 4.0

5.0 1.0 2.0 3.0 4.0 5.0
Likelihood
Impact
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planning efforts will enable the City to determine whether the Parks Department is right-sized and well positioned to serve City residents moving forward.

Police
The mission of the Modesto Police Department
(MPD) is to drive the crime rate down and
improve the quality of life in the City of
Modesto. With an approximate budget of $76.8
million—representing 20 percent of the City’s
overall budget—and 310 authorized FTE
positions (including 8 frozen FTEs), the MPD
represents the largest department within the
City. The MPD’s funding is primarily derived
from the City’s General Fund and it generates
revenue through service fees such fees and
charges for bookings, disturbance responses,
permits, property impounds, misdemeanors
citations, providing reports, false alarm
responses, property storage for arrestees, prisoner medical expenses, and driving under the influence arrest-related costs. The core function of the MPD is to provide police services such as routine patrols, developing relationships and partnerships with Modesto communities, traffic law enforcement, accident investigation, responses to calls for assistance, crime prevention, secure city facilities, investigate criminal activity, and preparing cases for the District Attorney’s Office.

In addition to the core functions mentioned above, the MPD offers a variety of services to the community such as a camera registry program; a community health and assistance team; crime free multi-housing; neighborhood watch; vacation house check; and a “Youth Wake-Up” program. Further, in recent years, the MPD has implemented the Community Health and Assistance Team, or C.H.A.T., a program designed to use trained Outreach Specialists to respond to qualifying 911 calls, received through the 911 communications center, for mental health crises and similar non-criminal, non-violent incidents.

The MPD is organized into three divisions: Operations, Investigative Services, and Support Services.

Exhibit 40 provides a breakdown of each division’s budgeted expenses for fiscal year 2022-23. #11..
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EXHIBIT 40. BUDGET BREAKDOWN BY DIVISION
Source: FY 2022-23 City Budget Book
Exhibit 41 provides an overview of the organizational structure and corresponding areas of responsibility.

EXHIBIT 41. MODESTO POLICE DEPARTMENT ORGANIZATIONAL STRUCTURE Source: Official City Organization Charts and Council Introduction Presentations Risk Analysis
Law enforcement agencies are inherently high-risk—large budgets, significant public profile and scrutiny, large number of at-risk assets (equipment, weapons, cash, evidence, and other assets), overtime usage, significant health and safety risks, legal exposure, and routine understaffing. The following table provides an evaluation of each division or program within the MPD with a description of responsibilities, budget, FTEs, and inherent risks.
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EXHIBIT 42. DIVISION AND PROGRAM DESCRIPTIONS
Inherent risks associated with the Police Department include: public relations, compliance with professional standards and state requirements, establishing effective policing strategies, potential for abuse, response times, unnecessary overtime costs, contract services, ability to effectively patrol, prevent crime, and affect arrests; allocation of staffing (civilian v. sworn), inventory control (both assets and evidence), the ability to effectively prevent crime, unnecessary overtime costs, ability to assess fees and collect payments, the potential for theft or loss of monies, loss of high-risk assets, and health and safety risks. Further, the potential for fraud, waste, and abuse remains high in the field of law enforcement.

At the same time, the MPD is subject to routine POST audits/reviews at least annually, and is currently in the process of overhauling accountability and oversight efforts. Specifically, the Modesto City Council approved forming a Community Police Review Board, which will hold monthly public meetings to promote oversight, accountability, and community engagement. The City has begun to solicit firms to serve in the role of Independent Police Auditor, which will require the review of and reporting on all closed investigations involving the use of deadly force, in-custody deaths, and bias-based policing complaints, as well as a random selection of one third of citizens’ complaints and one quarter of all use-of-force reviews. Overall, it appears that the MPD welcomes insights presented through the internal audit process and is mindful of the need to ensure internal control and operational efficiency within the agency.

With these key factors in mind, we illustrate in Exhibit 43 the risk rankings of each division or program area in relation to one another.

DIVISION/PROGRAM RESPONSIBILITIES FACTORS CONTRIBUTING TO RISK RATING Operations Provides core uniformed police services (Patrol) and call response services, including emergency incident
response, routine call response and collision
investigation; conducts law and regulation
enforcement, as well as preliminary crime scene
investigations, nuisance and criminal investigations,
proactive patrol activities and data analysis; utilizes innovative crime reduction strategies.

Budget: $25+ million FTEs: 50+
Inherent Risks: Public relations, health and
safety, increasing challenges in filling vacant
positions, potential for abuse, response times,
unnecessary overtime costs, efficacy of
information technology resources, contract
services, and ability to effectively patrol,
prevent crime, and affect arrests.

Investigative
Services
Investigates felony cases (Special Units); prepares
cases for criminal prosecution; conducts specialized
investigations and works collaboratively with local
state, and federal agencies
Budget: $25+ million FTEs: 50+
Inherent Risks: Public relations, allocation of
staffing (civilian v. sworn), inventory control—
both assets and evidence—and ability to
effectively prevent crime, and affect arrests.

Support Services Provides logistical, technical, and administrative support to the Department; oversees all personnel
matters (hiring, promotions, workers comp, etc.);
assures the MPD operated effectively and efficiently
24/7; conducts annual audits (property and evidence,
annual use of force audit, pursuit audits); conducts
firearm audits once per year (armorers do firearms
inspections); complies with POST requirements.

Budget: $10-25 million FTEs: 50+
Inherent Risks: Public relations, potential for
abuse, allocation of staffing (civilian v. sworn),
inventory control—both assets and evidence—
unnecessary overtime costs, ability to assess
fees and collect payments.
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EXHIBIT 43. PROGRAM RISK RATINGS
Based on this assessment, all key programs and divisions within the MPD represent medium- to high-risk.

This is attributable to the nature of law enforcement in general and is to be expected of any law enforcement agency. Because law enforcement agencies are inherently high-risk, there is no shortage of potential audit topics. Frequently, law enforcement audits and evaluations focus on staffing and overtime because of the impact both have on the operational efficiency and effectiveness of an organization.

Based on our assessment of management input, internal audit observations, or auditing best practices, we believe that consideration of the following topics are warranted:
1) Inventory management, including equipment, cash, weapons, evidence, and other sensitive assets; 2) Facility condition assessment;
3) Staffing Study, including shift scheduling, civilian v. sworn staffing, and recruitment strategies; 4) Use of and control over overtime; and
5) Effectiveness of the civilian outreach program (C.H.A.T).

Although the City is in the process of implementing various changes, the review board and independent auditor will likely not begin operations until after May of 2023. Because of the impending implementation of the independent police auditor, we recommend holding off on a performance audit of the MPD until the police auditor is appointed and, in a position to effectively establish the audit function. At that point, and after consideration of the how the scope of responsibility of the police auditor is implemented in practice, we recommend evaluating whether the potential audit topics identified above remain valid prior to selecting one for the upcoming audit plan. Of the audit topics listed, however, we believe the first audit topic should remain the top priority for consideration, as it is and will remain a high-risk area for any law enforcement agency.

Operations
Investigative
Services
Division
Support
Services

1.0 2.0

3.0 4.0

5.0 1.0 2.0 3.0 4.0 5.0
Likelihood
Impact
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Public Works
The mission of the Public Works Department
(Public Works) is to design, construct, operate
and maintain public infrastructure efficiently
and effectively in order to protect public safety
and enhance the quality of community life. With
an approximate budget of $59.2 million—
representing 12.7 percent of the City’s overall
budget—and 203 FTE positions, Public Works
provides capital improvement, maintenance,
and operational services for the City of
Modesto’s airport, streets, traffic control
systems, public buildings, parking, fleet
vehicles, urban forest, waste hauling, and
recycling and green waste collection. Public
Works provides design, construction, and maintenance services to operate the City’s existing transportation infrastructure, and operates city building and parking services. Its funding is derived from various sources including the General Fund, utility fees and taxes, transportation fees, and internal service fees.

Public Works is organized into six division areas: Administration; Fleet, Streets, and Airports; Solid Waste; Building and Parking Services; Traffic Engineering and Operations; and Forestry, Green Waste, and Street Sweeping. Exhibit 44 illustrates the Public Works’ organizational structure, and Exhibit 45 provides a summary of the Public Works’ fiscal year 2022-23 budgeted expenses for each division.

EXHIBIT 44. PUBLIC WORKS ORGANIZATIONAL STRUCTURE
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EXHIBIT 45. BUDGET BREAKDOWN BY DIVISION3
Source: City Budget Book Fiscal Year 2022-23
Risk Analysis
Nearly every program in Public Works can be considered moderate- to high-risk, primarily because of the public resources allocated to the development and preservation of public infrastructure. With the exception of the its Administration division, the importance of and the resources managed by each division would warrant a performance audit at some point. The following table provides an evaluation of key divisions or programs within Public Works, along with a description of responsibilities, budget, FTEs, and inherent risks.

EXHIBIT 46. DIVISION AND PROGRAM DESCRIPTIONS

DIVISION/PROGRAM RESPONSIBILITIES FACTORS CONTRIBUTING TO RISK RATING Public Works
Administration &
City Services
Provides policy direction and support to all the
divisions in Public Works. Administrative serves as
the point of contact for citizens as well as Public
Works employees. This also includes City funding of
the Stanislaus Regional Transportation Authority
and 10th Street Joint Power Agency services.

Budget: $1-5 million FTEs: 0- 5
Inherent Risks: Efficiency of professional
services provided to all programs; ensuring
compliance with related contracts and franchise
agreements; ensuring competitive procurement
for all assets.

Fleet Procures and maintains the City’s fleet of 1,250
vehicles and equipment, maintains and repairs Cityowned and leased facilities; provides for and controls the fueling of fleet vehicles.

Budget: $10-25+ million FTEs: 50+
Inherent Risks: Maintaining adequate internal
controls over vehicle and maintenance assets;
ensuring compliance with related contracts and
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franchise agreements, and ensuring an effective
preventive maintenance program.

Streets Responsible for keeping all City streets and
sidewalks in good repair and serviceable condition.

Budget: $5-10 million FTEs: 20-50
Inherent Risks: Efficiency of professional
services provided to all programs
Airport Provides both scheduled and nonscheduled air
service as well as private charter service. The City
owns approximately 164 based aircrafts and own
140 hangars that are leased to tenants for
recreational flying, private business use and
aviation related business.

Budget: $1-5 million FTEs: 0-5
Inherent Risks: Overall airport sustainability;
operator compliance; revenue-generating
contracts and leases; high levels of public
interaction; high-risk assets; health and safety
risks; and regulatory risks.

Solid Waste Manages two service agreements for residential, commercial, and industrial garbage and recycling
services. Services provided also include continuous
public education, community events, and outreach
programs, bulky-item pick up, enforcement and
clean-up of illegal dumping in streets and alleys,
litter removal throughout the City, daily customer
service, and implementing and enforcing various
state recycling guidelines and regulations. Solid
Waste division also oversees the City’s Compost
Facility which receives approximately 57,000 tons of
organic waste annually.

Budget: $1-5 million FTEs: 10-20
Inherent Risks: High level of public interaction
through public community outreach events,
customer service help desks, and route reviews.

High level of health and safety risk; ensuring
quality customer service and establishing rates
sufficient to sustain quality service; ensuring
compliance with revenue-generating waste
hauler agreements to optimize revenue; and
staff shortages and training.

Traffic Electrical Provides street light maintenance for street lights located in the city limits of Modesto and maintains
the traffic signals for the City of Modesto, as well as Stanislaus County and the City of Riverbank.

Additionally, this division also maintains the
electrical systems in all City of Modesto owned
buildings.

Budget: $1-5 million FTEs: 10-20
Inherent Risks: Sustainability of funding and
resources to maintain transportation and
environmental services; high-level of public
interest, health and safety, asset control and
inventory risks; ensuring cost-effective
maintenance and operations; and meeting the
changing environmental regulations and
unfunded mandates
Traffic
Engineering
Designs traffic signals and provides traffic signal
timing and coordination. Staff also investigates and
responds to citizen inquiries regarding traffic-related issues and maintains a citywide accident database.

Traffic Engineering staff design and construct traffic
improvement projects, analyze traffic impacts of
proposed projects and recommend solutions.

Budget: $0-1 million FTEs: 0-5
Inherent Risks: Cost-effective contract,
construction, and project management;
managing contractors and controlling project
costs; health and safety risks and high level of
public interest and visibility.

Traffic
Operations
Maintains more than 27,000 traffic signs and
pavement legends, as well as makes all pavement
striping for center lines, lane lines, bike lanes, etc.

Budget: $0-1 million FTEs: 0-5
Inherent Risks: Efficiency of services provided,
contract management and compliance, and
worker health and safety.

Green
Waste/Street
Sweeping
Work together to remove large green waste, street
debris, and fallen leaves from streets, alleys, and
storm drains throughout the City.

Budget: $5-10 million FTEs: 0-5
Inherent Risks: Efficiency of services provided,
worker health and safety, regulatory oversight
Building and
Parking Services
Responsible for preventative maintenance, general
repairs, troubleshooting, and coordination of vendor
repairs for most City facilities. Responsible for
managing contracts and invoice payments for a
Budget: $1-5 million FTEs: 10-20
Inherent Risks: Effective management of
contracts; high levels of public interaction; aging
infrastructure with relatively few staff to manage
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variety of building-related services, including
custodial service, pest control, elevator
maintenance, fire suppression systems, etc.
and maintain building and parking assets; $132
million in deferred maintenance for City
buildings; and contract management and
compliance.

Forestry Takes care of the City’s extensive urban forest. This includes the City’s street and park trees, as well as
the trees outside government buildings.

Budget: $1-5 million FTEs: 50+
Inherent Risks: Ensuring quality and efficiency
of services; health and safety risks to the public
and employees; some safety risks; contract
management and compliance.

Public Works manages a relatively high budget and FTE position allocation as compared to other City departments, controls a high level of at-risk assets, and relies heavily on external service providers, and is dependent on significant special revenue funding. The infrastructure for which Public Works is responsible to develop and maintain is highly visible to the community and requires substantial resources to maintain.

Further, its work is prone to increased health and safety risks, particularly as compared to other municipal services. Over the past year in particular, Public Works has experienced a difficult time recruiting and retaining qualified department personnel in a highly-competitive market, creating challenges as Public Works carries out essential functions.

The risks identified above may be exacerbated by reported personnel shortages and staff turnover that preexisted and was accelerated during the current tightening of the labor market. All of this suggests a higherthan-typical risk associated with staffing and organizational change. Because of this, the City will initiate a feasibility study in 2023 to identify staffing going forward. With these key risk areas in mind, we illustrate below the risk rankings of each division or program area in relation to one another.

EXHIBIT 47. PROGRAM RISK RATINGS
Nearly every program in Public Works can be considered moderate- to high-risk, primarily because of the amount of public resources allocated to the development and preservation of public infrastructure. With the Building &
Parking
Services
Public Works
Administration
Traffic
Engineering &
Operations
Fleet
Solid Waste
Streets Forestry
Airport
Green
Waste/Street
Sweeping

1.0 2.0

3.0 4.0

5.0 1.0 2.0 3.0 4.0 5.0
Likelihood
Impact
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exception of the its Administration Division, the importance of and the resources managed by each division would warrant a performance audit at some point. At the same time, however, many of the operations within Public Works remain in flux. Many operations have been the subject of recent studies and evaluations (e.g., citywide engineering services, parking, and fleet management), and others may be significantly impacted by increased funding resulting from the recent passage of Measure H. The City’s impending implementation of recommendations stemming from these recent studies and the operational impacts of increased funding suggest that it would be prudent to hold off on conducting performance audits of those programs expected to be most impacted—at least for the next year or two. Nevertheless, for this purpose of this Risk Assessment, the following potential performance audits rank as the most important:
(1) Assess the management of the City’s Capital Improvement Program (CIP) and engineering services, as well as the Department’s approach to capital project management—either on a citywide basis or specific to Public Works. This could include an evaluation of the City’s CIP development, planning, and monitoring activities to determine whether opportunities exist to improve the City’s ability to optimize utilization of restricted funds through capital planning. (2) Evaluate the City’s Facilities Maintenance Program, including:
a. Assessing Public Works’ overall approach to project management for construction projects, including its project delivery manual and guidelines, and determine the extent to which it is consistent with best practices.
b. Evaluating the Public Works’ ongoing control, monitoring, assessment, and maintenance of City facilities and properties to identify opportunities to enhance efficiencies and protect City assets.
c. Examine efforts to determine ongoing and future facility needs given the potential longterm impacts of the pandemic on remote work. (3) Evaluate the City’s fleet management program, including determining the extent to which fleet management is performed in a manner consistent with best practices, controls over sensitive assets are effective to prevent misuse, routine and preventive maintenance is performed in accordance to acceptable guidelines, the potential for abuse of City vehicles/fuel/equipment is appropriately mitigated, and practices are both efficient and effective. (4) Evaluate the Solid Waste Division to determine the cost effectiveness of the Department’s current service delivery model and operator contracts, as well as operator compliance with City contracts and mandates.
(5) Evaluate the Public Work’s Forestry Division to evaluate the operational efficiency of its business practices, the sufficiency of resources required to manage the City’s urban forest, its oversight of third-party service providers, and its success in achieving programmatic goals and outcomes. (6) Assess the Department’s operations and maintenance functions—including those in Traffic Electrical, Traffic Operations, Streets, and Building & Parking—and determine the extent to which (a) public infrastructure assets are adequately maintained and deferred maintenance is sufficiently tracked, (b) the Department’s asset management system reflects up-to-date condition assessments and effectively tracks and manages preventive maintenance cycles, (c) the Department’s job order tracking system enables incorporates effective cost controls, and (d) the #11..
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Department’s operations and maintenance activities are otherwise efficient and consistent with best practices.
(7) Assess the City’s airport operations, including the following key objectives (1) Determining the extent to which the Airport ensures ongoing self-sustainability; (2) Evaluating the effectiveness and efficiency of internal controls associated with overseeing and administering a wide range of third-party contracts and agreements; (3) Ensuring compliance with federal regulations relating to the use of aviation and nonaviation designated properties; (4) Ensuring efficiency in operations, maintenance and planning, public safety, and other airport operations.
(5) Evaluating the extent to which capital improvement planning and construction project management adhere to best practices.
(8) Evaluate grant management and administration activities to ensure compliance and optimal program outcomes.
(9) Assess revenue-generating activities, including the Public Works’ administration of franchise agreements, parking services, solid waste services, cost recovery fees, and other revenuegenerating activities.

Utilities
The mission of the Modesto Utilities
Department (Utilities Department) is to build
partnerships that promote a vibrant business
community and engage neighborhoods with a
culture of excellence. With an approximate
budget of $103 million—representing 26.3
percent of the City’s overall budget—and 269
FTE positions, the Utilities Department
operates and maintains all City water,
wastewater, and storm water systems; and
oversees capital improvement projects, water
resource planning, groundwater, surface water,
and recycled water initiatives, utility rates, and
regional water partnerships. Its funding is
primarily derived from the City’s Utility fund,
which generates revenue through utility service fees and taxes.

The Utilities Department is organized into four divisions: Wastewater Services, Water Services, Engineering Services, and Administration. The first two divisions manage the City’s water and wastewater utilities. Specifically, the Water Services Division manages the City’s water supply. It owns approximately #11..
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100 wells and purchases additional water from the Modesto Irrigation District, and delivers water to the City’s residential and business community. Likewise, Wastewater Services Division manages the City’s sewage and storm drainage systems and treatment plants. Water and wastewater customers are billed by the City’s Finance Department based on connection and metered data collected and managed by both divisions. Both divisions also maintain their own systems using both in-house and contract personnel, and track all maintenance activity through a maintenance management system. The Engineering Services and Administration divisions support the City’s utilities, with the former providing engineering design, master planning, and construction management services, and the latter providing budgetary, financial, rate-setting and other administrative support to the Department. Exhibit 48 provides a summary of the Utilities Department’s fiscal year 2022-23 budgeted expenses for each division.

EXHIBIT 48. BUDGET BREAKDOWN BY DIVISION
Source: City Budget Book Fiscal Year 2022-23
Exhibit 49 provides an overview of the organizational structure within the Utilities Department and corresponding areas of responsibility.
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EXHIBIT 49: UTILITIES DEPARTMENT ORGANIZATIONAL STRUCTURE Source: Official City Organization Charts and New Council Introduction Presentations Risk Analysis
Nearly every program in the Utilities Department can be considered moderate- to high-risk, primarily because of the public resources allocated to the development and preservation of the City’s water-related infrastructure. With the exception of the its Administration division, the importance of and the resources managed by each division would warrant a performance audit at some point. The following table provides an evaluation of key divisions or programs within the Utilities Department, along with a description of responsibilities, budget, FTEs, and inherent risks.

EXHIBIT 50. DIVISION AND PROGRAM DESCRIPTIONS

DIVISION /

PROGRAM

RESPONSIBILITIES FACTORS CONTRIBUTING TO RISK RATING
Waste Water
Services
The City of Modesto has two wastewater treatment
facilities in one of the largest beneficial reuse facilities in the United States. The City works to meet the stringent effluent limits required by the State of California in order for the water to be safely reused for irrigation. The City operates and maintains sewer mains and pump stations
that convey wastewater from homes and businesses to
the treatment plant.

Budget: $25+ million FTEs: 50+
Inherent Risks: Maintaining the system in
a cost-effective manner; maintaining
adequate funding; managing consultants
and contractors and controlling operating
costs; aging infrastructure; significant
deferred maintenance and workorder
backlogs; and increasing staff shortages
and high staff turnover.
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Water Services With over 75,000 water service connections, Modesto’s Water Services Division operates and maintains
approximately 1,000 miles of potable water pipelines and regularly tests 77 water wells and 12 water tanks to
ensure customers have access to clean water. Water
Services provides residents with safe, clean, and reliable drinking water. They work to maintain the water
distribution system and test the water supply, in addition to managing water meters and the Water Conservation
and Backflow-Cross Connection programs. Water
services operates the help desk and interacts with the
pubic frequently whether it is for non-payment on bills, emergency shut offs, customer requested service, or
other utility-related issue.

Budget: $25+ million FTEs: 50+
Inherent Risks: Ensuring quality and safe
drinking water according to state
mandates; maintaining the system in a
cost-effective manner; maintaining
adequate funding; managing consultants
and contractors and controlling operating
costs; aging infrastructure; significant
deferred maintenance and workorder
backlogs; and increasing staff shortages
and high staff turnover.

Engineering The Engineering Services teams oversee water, wastewater, and storm drainage studies and projects;
major citywide capital improvement construction projects; and more to ensure the department and services are
running smoothly. The Engineering division works with
various departments throughout the city such as Parks,
Recreation and Neighborhoods, Community and
Economic Development, and Public Works.

Budget: $1-5 million FTEs: 20-50
Inherent Risks: Cost-effective contract,
construction, and project management;
managing consultants and contractors and
controlling project costs; health and safety
risks and high level of public interest and
visibility; significant staff turnover and
staffing shortages.

Administration Oversees the general management of the Utilities Department, and is responsible for personnel, oversees
the department budget, and maintains utility rates and
fees.

Budget: $1-5 million FTEs: 50+
Inherent Risks: Efficiency of services
provided to all divisions, including
budgeting, financial, and administrative
support.

The Utilities Department is the second largest department in the City, behind only the Police Department.

Nearly every program in the Utilities Department can be considered moderate- to high-risk, primarily because of the amount of public resources allocated to the development and preservation of public waterrelated infrastructure. It has a significant level of budget and FTE resources when compared to other City departments, controls a high level of at-risk assets, manages a large number of contracts, relies heavily on external service providers, and relies on a significant special revenue funding. The public infrastructure for which the Utilities Department is responsible for developing and maintaining is highly regulated and highly visible to the public. It requires substantial resources to maintain, and the work of the Utilities Department is prone to increased health and safety risks, particularly as compared to other municipal services. There is also a high level of deferred maintenance for existing pipelines, facilities, and fleet equipment, which may lead to increased costs and/or service delivery challenges in the years to come. Further, the Utilities Department utilizes Lucity, a computerized maintenance management software. This software is utilized throughout various departments and divisions such as Public Works and Engineering divisions throughout the city. The roll-out of Lucity is in progress throughout the departments and therefore remains a high-risk audit area.

The risks identified above may be exacerbated by reported personnel shortages—primarily among engineers—and staff turnover that pre-existed and was accelerated during the current tightening of the labor market. Over the past year in particular, the Utilities Department has experienced a difficult time recruiting and retaining qualified department personnel in a highly-competitive market, creating challenges #11..
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as it carries out essential functions. All of this suggests a higher-than-typical risk associated with staffing and organizational change. With these key risk factors in mind, we illustrate below the risk rankings of each division or program area in relation to one another.

EXHIBIT 51. PROGRAM RISK RATINGS
However, for this purpose of this Risk Assessment, the following potential performance audits rank as the most important:
(1) Assess the management of the City’s Capital Improvement Program (CIP) and approach to project management, either on a citywide basis or specific to the Utilities Department. This could include:
a. The City’s CIP development, planning, and monitoring activities to determine whether opportunities exist to improve the City’s planning process and its ability to optimize utilization of restricted funds through capital planning. b. Project management practices to determine consistency with best practices and project delivery guidelines, and the adequacy of project and cost controls. (2) Assess revenue-generating activities, including rate-setting and data collection efforts used for the purposes of Utility Billing.
(3) Assess the current work order system (Lucity) and its effectiveness on operational activities as well as its compatibility with simultanously managing work order requests with other departments.

While we find that the first audit topic—an assessment of the City’s CIP and approach to project management—remains the highest priority audit in this list, we recommend the City hold off on initiating this audit until City management determines the next steps it will take in response to an internally-initiated study of citywide engineering functions. The outcome of this study and the implementation of its recommendations should be considered as part of a broader audit of the City’s CIP and approach to project management.

Water
Services
Engineering
Services
Wastewater
Services
Administration

1.0 2.0

3.0 4.0

5.0 1.0 2.0 3.0 4.0 5.0
Likelihood
Impact
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Risk Assessment Results
A Risk Assessment for internal audit planning is intended to identify ways to optimize the value of limited audit resources. This includes identifying “high-risk” programs or operations—e.g., those involving the most resources, impacting the most residents, experiencing the greatest challenges, etc.—but it is not limited to identifying “high-risk” programs or operations. In addition to identifying City programs that are considered to be high- or moderate-risk for inclusion in the audit plan, consideration must also be given to ensuring broad coverage over a defined period of time. Below, we provide recommendations for the City’s consideration in the development of its audit plan.

In considering the departmental profiles described previously, we shift to a broader view of our assessment of risk throughout the City. In Exhibit 56, we provide a citywide heat map, differentiating our assessment of risk among each of the City’s key programs and operations. In the lower left corner, we have several divisions that present relatively low risk, including certain departmental administrative operations, the City Clerk’s Office, City Attorney’s Office, and the City Manager’s Office. In the upper right corner, where the yellow meets the red, we find several divisions or programs for which, in general, we find reason to prioritize a management audit. These include those programs or operations involving the most resources and impacting the most residents, such as the Police, Fire, Utilities, Public Works, and Community & Economic Development departments. The City’s internal service programs tend to fall within the moderaterisk category.

EXHIBIT 56. CITYWIDE PROGRAM RISK RATINGS
Building &
Parking
Services
Fleets
Solid Waste
Forestry Streets
Airport
Green
Waste/Street
Sweeping
Employee
Benefits
Risk
Management
Engineering
Services
Water/Wastewater
Services
Accounting
Revenue
Collection &
Compliance
IT Security
Enterprise
Applications
Building Safety
& Neighborhood
Preservation
Economic
Development
Planning
Community
Development
Parks Administration
and Facilities
Recreation and
Neighborhoods
Parks Planning and Development
Park
Operations &
Maintenence
Fire
Support/Business
Operations
Fire
Operations/Suppression Fire Contract
Agencies
Community Risk
Reduction
Police Operations/
Investigavtive Services Police Support
Services
City Clerk's
Office
Department
Administration
Budget
Office
City Manger's
Office
City Attorney
1 2
3 4
5 1.0 2.0 3.0 4.0 5.0
Likelihood
Impact
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It is important to recognize, however, that effective audit plans do not solely focus on program areas that fall into the high-risk category. If this were the case, the same programs would be audited year after year.

Rather, an effective audit plan ensures adequate coverage throughout the City’s departments and programs. To achieve this, we recommend establishing an auditing cycle that ensures that the performance, programs, and/or activities of every department are audited, at least in part, on a periodic basis—such as on a three- or five-year cycle.

While the budget for the Office of the City Auditor will determine the number and scope of audits that can be completed in a given year, we present the following 14 audit engagements for inclusion in the initial Five-Year Audit Plan. This list of audit engagements addresses every department within the City, and provides a balance between internal service departments and those departments that serve and interact most with the residents and business community of Modesto. Specifically:
1) City Attorney: Evaluate the business processes and information systems to identify potential inefficiencies or opportunities for improvement in the Office’s administrative functions. 2) City Clerk: Evaluate the Office’s business processes, information systems, and workload management practices to identify potential inefficiencies or opportunities for improvement in the Office’s operational activity and administrative functions. 3) City Manager: Evaluate the City Manager’s Performance Measurement System, the purpose of which would be to identify ways to build upon an already strong performance measurement system that is both meaningful to City officials and the public. 4) Community & Economic Development: Performance audit of the Department’s recent technological and process improvements (i.e., eTRAKiT) to determine: (a) the extent to which the initiative’s goals were met, efficiencies were gained, and service delivery was improved; (b) whether continued opportunities for improvement exist; and (c) whether system controls are sufficient and effective to prevent or detect fraud, waste, and abuse. 5) Community & Economic Development: Performance audit of Community Development’s grant funded programs, including an assessment of grant compliance, internal controls associated with grant programs, subrecipient compliance with City requirements, outreach efforts, efforts to expand the agency’s grant footprint, and the overall effectiveness in achieving program goals. 6) Finance: Evaluate procurement and contracting practices with a focus on ensuring consistency with Finance and Council policies, proper segregation of duties with accounts payable functions, consistency with best practices, the overall efficiency of the City’s purchasing and contracting processes, and whether control deficiencies identified in the past have been corrected and resolved.
7) Finance: Evaluate cashiering processes, including those performed through differing information and cashiering systems, the impact that staff turnover has had on cashiering operations, and the role of Finance in ensuring adequate internal and system controls associated with each. 8) Fire Department: The effectiveness and efficiency of internal controls associated with overseeing and administering the Department’s contract services, and the Department’s cost-recovery methods.
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9) Human Resources: Determine whether the City’s human resources management activities are consistent with industry standards; sufficient to ensure compliance with federal, state, and local laws and regulations; effective in attracting, retaining, and motivating a highly talented, qualified, and effective workforce; and appropriately resourced and right-sized for the City of Modesto. This should include key elements of human resources management, as outlined in the Human Resources department profile.
10) Information Technology: Performance audit of the Department’s protocols and practices related to cybersecurity to determine the extent to which practices are consistent with best practices, resources are adequate to sufficiently mitigate security risks, the City’s vulnerability to threat actors.
11) Parks, Recreation, and Neighborhoods: Evaluate the Department’s strategic planning to determine whether the Department is right-sized and well positioned to serve City residents moving forward, particularly as it relates to:
a. Capital asset planning and the impacts on future operating costs. b. Recreational programming, utilization, and responsiveness to community needs. c. Maintenance programming and the approaches taken by the Department to assess and maintain its asset infrastructure, as well as staffing levels to adequately maintain City assets.
12) Police Department: Performance audit of the Department’s Inventory management, including equipment, cash, weapons, evidence, and other sensitive assets to determine whether sufficient controls are in place to prevent and detect potential instances of theft, loss, fraud, or abuse. 13) Public Works: Evaluate the Department’s Forestry Division to evaluate the operational efficiency of its business practices, the sufficiency of resources required to manage the City’s urban forest, its oversight of third-party service providers, and its success in achieving programmatic goals and outcomes.
14) Utilities: Assess the management of the City’s Capital Improvement Program (CIP) and approach to project management, either on a citywide basis or specific to the Utilities Department. This could include:
c. The City’s CIP development, planning, and monitoring activities to determine whether opportunities exist to improve the City’s planning process and its ability to optimize utilization of restricted funds through capital planning. d. Project management practices to determine consistency with best practices and project delivery guidelines, and the adequacy of project and cost controls.

These audit topics are presented in the order in which they were presented in this risk assessment, and are proposed for inclusion in a five-year audit plan to be administered by the City Auditor. It is recognized, however, that prior to establishing each annual audit plan, the City Auditor will seek input from the City Council’s Performance Audit Committee, City Councilmembers, and City Management to identify potential changes to the five-year plan and before determining the specific audits to be included in the annual audit plan. This allows for continued input and routine updating to the audit plan to ensure it addresses current #11..
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and emerging challenges faced by the City. For the purpose of the initial 2023 audit plan, we recommend prioritizing three audit engagements:
1) Community & Economic Development: Performance audit of Community Development’s grant funded programs, including an assessment of grant compliance, internal controls associated with grant programs, subrecipient compliance with City requirements, outreach efforts, efforts to expand the agency’s grant footprint, and the overall effectiveness in achieving program goals. 2) Finance: Evaluate procurement and contracting practices with a focus on ensuring consistency with Finance and Council policies, proper segregation of duties with accounts payable functions, consistency with best practices, the overall efficiency of the City’s purchasing and contracting processes, and whether control deficiencies identified in the past have been corrected and resolved.
3) Information Technology: Performance audit of the Department’s protocols and practices related to cybersecurity to determine the extent to which practices are consistent with best practices, resources are adequate to sufficiently mitigate security risks, the City’s vulnerability to threat actors.

We recognize that the actual audit plan will be determined, in part, by the budgetary resources available for the City Auditor. Nevertheless, in our view, these three audit topics are both timely and are likely to result in added value to the City of Modesto.
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Exhibit “3”
The Increase Accountability in City Hall
Measure of 2008
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The Increase Accountability in City Hall Measure of 2008 REVISED SECTIONS 601, 703, 800, 801, 900, 903, 1201, 1303 AND 1304
NEW SECTION 725, 902.1, 1302.1 AND 1302.2
REVOKED SECTION 1302
SECTION 601. POWERS AND DUTIES OF MAYOR.

The Mayor shall have the following powers and duties:
(a) The Mayor shall be recognized as the official head of the City for all political, representative and ceremonial purposes and by the Governor for military purposes;
(b) The Mayor may review with the City Manager, City Attorney and City Clerk prior to each Council meeting the items on the Council’s agenda and to add matters thereto;
(c) The Mayor may make recommendations to the City Manager on matters of policy and programs;
(d) The Mayor may direct the Charter Officers to prepare and provide information to the Council on matters of policy and programs which require Council decision;
(e) The Mayor may request budgetary and any other information from the Charter Officers that the Mayor determines is necessary for the conduct of the Mayor’s duties;
(f) The Mayor, together with the Council, annually shall conduct a written performance evaluation of each Charter Officer which shall include, without limitation, an evaluation of the Charter Officer’s performance in implementing the Council’s Statement of Policy for that Charter Officer developed pursuant to Section 725 of this Charter. (g) The Mayor may appoint, with the advice and consent of the Council, a Chairman, a Vice-Chairman, one regular member and one alternate member to each standing, special and ad hoc committee of the Council; #11..
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(h) The Mayor may appoint, with the advice and consent of the Council, such advisory boards, commissions and ad hoc committees as may be necessary or desirable to advise and assist in the work of the Council; (i) The Mayor may appoint such other advisory boards and ad hoc committees as may be necessary or desirable to advise and assist in the work of the Mayor; provided, however, that the members of such advisory boards or ad hoc committees shall not receive any compensation; (j) The Mayor may recommend adjustments to the City budget and to propose the modification or curtailment of any city service. If the Mayor recommends any increases in the City budget, the Mayor shall recommend the method of financing such expenditures. If the Mayor proposes the modification or curtailment of any city service, the Mayor shall provide specific recommendations and the reasons for such proposal;
(k) The Mayor shall prepare and deliver the Mayor’s Proposed Budget Priorities and Direction and the Mayor’s Budget Message pursuant to Section 1302A of the Charter and the Mayor’s Final Budget Modifications pursuant to Section 1303 of the Charter;
(l) The Mayor may select and hire staff to the office of Mayor and the City Council as may be necessary or desirable to advise and assist in the work of the Mayor and City Council; provided, however, that the Mayor shall not appoint to any position any business associate or any person related to him or her or to the City Manager or to any member of the Council by blood or marriage within the second degree. If staff is provided to the Council under this section, such staff shall be provided on an equal basis to each member of the Council. All such appointees shall serve at the pleasure of the Mayor in the Unclassified Service; and shall serve under such terms and conditions, salaries and benefits as are similar to other employees in Modesto’s service. In the event an employee of the City who holds a Classified Service position is appointed to a position in the Unclassified Service under this Section, he or she may return to a position in the Classified Service. Such return to the Classified Service shall be without loss of any rights or privileges that currently pertain to the Classified Service;
(m) When a vacancy occurs, the Mayor shall nominate at least two (2) candidates for Council consideration for appointment to the position of City Manager. The Mayor may express to the Council a preference among final candidates;
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annually by the City Manager of each head of a city department which is under the administration of the City Manager;
(o) The Mayor may attend and participate in executive meetings of the City Manager and heads of City departments which are under the administration of the City Manager;
(p) In time of public danger or emergency, the Mayor may, with the consent of the Council, or pending a meeting of the Council, direct the administration of the City Government through the City Manager; (q) The Mayor shall be charged with the duty of making
recommendations to the Council on all major matters of policy and program which require Council decision. The Mayor shall have the primary, but not exclusive, responsibility for interpreting the policies, programs and needs of the City government to the community; (r) The Mayor may also, on the Mayor’s own account, as may each individual Councilmember, inform the community on any matters of policy or program which the Mayor believes the welfare of the community makes necessary;
(s) It shall be the duty of the Mayor to represent the Council in its relationships with civic groups within the City, and by direction of the Council, the Mayor shall represent the City in its relationships with other governmental agencies on matters of policy and program. (t) The Mayor shall preside at meetings of the Council and shall have a vote as a member of the Council. The Mayor shall have no power to veto any ordinance or resolution adopted by the Council;
(u) The Mayor shall have authority to preserve order at all Council meetings and to remove or cause the removal of any person from any meeting of the Council for disorderly conduct, to enforce the rules of the Council, and to determine the order of business under the rules of the Council;
(v) The Mayor shall exercise such other powers and perform such other duties as may be consistent with the Mayor’s office or as may be granted to the Mayor by the Council not inconsistent with this Charter.

Nothing in this section shall be construed in any way as an infringement or limitation on the powers and duties of the City Manager as chief administrative officer and head of the administrative branch of the City government as prescribed in other sections of this Charter. #11..
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SECTION 703. COMPENSATION FOR ELECTED OFFICIALS.

(a) Compensation and Reimbursement. The Mayor and each member of the Council shall be paid as compensation for his or her services as a member of the Council for each calendar month during which he or she is a member of the Council a monthly salary together with appropriate benefits which shall be established by ordinance only after the Citizen’s Salary Setting Commission has made a written recommendation for compensation pursuant to the strict limits of the section, such written recommendation has been published for review pursuant to the requirements of this section, and the mandated public hearings required by this section have been held on the recommendation.

The Mayor and members of the Council shall also receive reimbursement for expenses incurred while performing official duties of their office only so long as evidence of such expenses incurred is presented to the City in the manner prescribed for all other employees of the City.

No compensation or reimbursement shall be established for any member of the Council, including the Mayor, except as provided in this Section.

(b) Citizen's Salary Setting Commission. There shall be established a Citizen's Salary Setting Commission, hereinafter “Commission,” whose function shall be to recommend the compensation it deems appropriate for the Mayor and members of the Council. This Commission shall meet between March 1st and April 30th of every even-numbered year.

The Citizen's Salary Setting Commission shall consist of five (5) qualified electors residing within the City and shall be appointed by the City Council pursuant to the provisions below:

(A) Strong consideration shall be given to composing
the Commission of:
(i) a retired Stanislaus County judge as
chairperson;
(ii) one (1) member from a bona fide local
taxpayer’s association with tax exempt
status under the relevant provisions of the
Internal Revenue Code;
(iii) one (1) member from a bona fide local
nonpartisan political organization, with
tax-exempt status under Section 501(c)(3)
of the Internal Revenue Code, dedicated to
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encouraging informed and active
participation in government;
(iv) one (1) member from, a former Civil Grand
Jury who has served in that role within in
the previous five (5) years;
(v) additional members who have
demonstrated civic involvement and a
capacity to serve in an honest,
independent, and impartial fashion.
(B) No member of the Commission shall be a relative by blood or marriage within the third degree of the Mayor, a member of the Council, any Charter officer, or any department head or deputy department head.
(C) No member of the Commission shall be an employee of the City nor any bargaining unit for employees of the City, nor be a person who receives compensation from the City or from bargaining units of the City in any manner, including retirement benefits.

(D) No member of the Commission shall be a lobbyist or
other person with business before the City that represents an economic interest in excess of the limit for material financial effect as established by local ordinance for the time periods established by local ordinance.
(E) In all other respects, the members of the Commission shall be chosen pursuant to the provisions of this Charter.

(F) Members of the Commission shall serve without
compensation.

Except as provided herein below, the regular term of office of each member of the Commission shall be four (4) years. The initial five (5) members of the Commssion shall be appointed during the month of March 2008. Two of the members so appointed shall be appointed for a term expiring on December 31, 2010. Three (3) of the members, including the initial chairperson, so appointed shall be appointed for a term expiring on December 31, 2012. Commencing in December 2010, new appointments shall be made during the month of December of each even-numbered year to fill the offices of the members whose terms are expiring at the end of such even-numbered years. Such appointments #11..
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shall be for regular terms of four (4) years commencing on the first day of January of the following odd-numbered year and expiring on the thirtyfirst day of December of the second even-numbered year thereafter.

No Commission member may serve for more than two (2) terms. A Commission member may be removed from office at any time for misconduct, inefficiency or willful neglect in the performance of the duties of his or her office providing the Council first states in writing the reasons for such removal and gives such member an opportunity to be heard before the Council in his or her own defense. No tax dollars shall be expended on behalf of a Commission member for such defense. If a vacancy occurs before the expiration of a member’s term, the Council shall appoint a qualified person to fill such vacancy for the remainder of the unexpired term of such member.

(c) Salary Limitations and Penalties. The salary of the Mayor shall not be more than fifty percent (50%) of the amount of the salary of a Judge of the Superior Court of Stanislaus County.

The salary of a Councilmember shall not be more than fifty percent (50%) of the median family income for the Modesto Metropolitan Statistical Area as reported by the United States Census Bureau. The salary of each Councilmember shall be the same.

Any appropriate benefits established under this provision may not include retirement or pension benefits of any sort.

No recommendation shall be made by the Commission except upon the affirmative vote of three (3) members of the Commission.

No recommendations may be made in odd-numbered years. The recommendation of the Commission will be made to the Council by April 30th of every even-numbered year to be effective for a two-year period commencing not before July 1 of that even numbered year. Failure of the Commission to make a recommendation in any even numbered year within the prescribed time shall be deemed to be a recommendation that no changes be made to existing compensation levels.

Any monthly salary shall be reduced by one-fourth for each regular meeting of the Council not attended by a councilmember each month, unless absent on official duty with the consent of the Council.

(d) Process to Set Compensation. Each recommendation by the Commission, together with the reasons for the recommendation, shall be made in writing by the Commission.

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Before any such recommendation is provided to the Council, a draft recommendation shall be made available to the public and the Commission shall hold at least two public hearings on the matter before it adopts its final recommendation.

When such final recommendation has been submitted to the Council, it shall not thereafter be amended by the Commission.

Upon receiving the final recommendation from the Commission, the Council may adopt the compensation as recommended by the Commission or may adopt compensation in some lower amount, but in no case may adopt compensation in some higher amount. The Council may only adopt all such compensation by ordinance and after a public hearing of which legal notice is published in a newspaper of general circulation within the City at least twenty (20) days prior to said hearing.

Salaries established by ordinance adopted pursuant to the provisions of this Section shall remain in effect until amended by a subsequent ordinance adopted pursuant to the provisions of this Section. The compensation being paid to Councilmembers as of the effective date of this Section shall continue until any subsequent compensation is established pursuant to the requirements of this Section.

(e) Subject to Referendum.

Any final decision by the Council on compensation under this Section shall be subject to the referendum provisions of the Charter.

SECTION 725. STATEMENT OF POLICY FOR CHARTER OFFICERS
AND CITY DEPARTMENTS; COUNCIL REVIEW OF ANNUAL
EVALUATIONS.

The Council shall adopt a written Statement of Policy for each Charter Officer and for each City department which is under the administration of the City Manager. Said Statement of Policy shall set forth the broad goals, objectives and aspirations to be accomplished by that department.

For Charter Officers, each Charter Officer shall provide to the Council a draft written Statement of Policy for his or her office for consideration, and, if deemed necessary by the Council, revision and amendment, prior to adoption by the Council. For each City department which is under the administration of the City Manager, the City Manager shall designate one or more persons in each such department to provide to the City Manager, for transmittal to the Council, a draft written Statement of Policy for each department for consideration, and, if deemed necessary by the Council, revision and amendment, prior to adoption by the Council. #11..
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Such Statements of Policy shall be reviewed and, if necessary, amended, in the first quarter of every even-numbered calendar year and when the position of a Charter Officer or the head of a City department which is under the administration of the City Manager becomes vacant.

When such review and amendment is conducted due to a vacancy in position, the Mayor and Councilmembers shall adopt a set of questions which are intended to elicit responses from each prospective appointee concerning the goals, objectives and aspirations in the Statement of Policy.

Prior to appointing any head of a City department, the City Manager shall submit to the Mayor and Councilmembers, for their review, the responses to the Mayor and Councilmembers' questions submitted by the finalists for appointment to the vacant position. This section shall not apply to the appointment of any "acting" department head to serve in an interim capacity.

The City Manager shall share and review with the Council the annual independent, written performance evaluations of each head of a city department which is under the administration of the City Manager.

Nothing in this section shall be construed in any way as an infringement or limitation on the powers and duties of the City Manager as chief administrative officer and head of the administrative branch of the City government as prescribed in other sections of this Charter.

SECTION 800. CITY MANAGER.

There shall be a City Manager who shall be the chief executive officer and head of the Administrative Branch of the City government. The City Manager shall be chosen on the basis of the person’s executive and administrative qualifications with special reference to the person’s actual experience in, or the person’s knowledge of accepted practices with respect to the duties of the office as hereinafter set forth. No member of the Council shall be eligible for appointment to the office of City Manager during the term for which the member shall have been elected or appointed, nor within one (1) year thereafter. The City Manager need not be a resident of the City or State at the time of appointment, but during the City Manager’s tenure of office, the City Manager shall reside within the City.

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position of City Manager. The Mayor may express to the Council a preference among final candidates. The Council shall appoint the City Manager for an indefinite term and may remove the City Manager by a majority vote of its members; provided, however, that the City Manager shall not be removed from office during or within a period of ninety (90) days next succeeding the election of a member of the Council. The purpose of this provision is to allow any newly elected member of the Council to observe the actions and ability of the City Manager in the performance of powers and duties of this office.

SECTION 801. POWERS AND DUTIES.

The City Manager shall be the chief administrative officer and head of the administrative branch of the City government. The City Manager shall be responsible to the Council for the proper administration of all affairs of the City and to that end, subject to the personnel provisions of this Charter, the City Manager shall have power and shall be required to:
(a) Appoint and, when necessary for the good of the service, discipline and remove all officers and employees of the City except as otherwise provided by this Charter, and except as the City Manager may authorize the head of any department or office to appoint or remove subordinates in such
department or office. The City Manager may also authorize the head of any department, including deputy directors, police captains and fire battalion chiefs, or other city employees as designated by ordinance, to recommend and
impose discipline in accordance with this Charter.
(b) Prepare the draft budget annually and submit it to the Mayor and Council, prepare the proposed budget annually and submit it to the Mayor and Council and be responsible for its administration after its adoption by the Council, prepare all other necessary budget documents, and prepare and submit to the Mayor and Council the Capital and
Operating Mid-Year Budget Report.
(c) Prepare and submit to the Council within ninety (90) days of the end of the fiscal year, a complete report on the finances and administrative activities of the City for the preceding year.
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(d) Review procedures relating to the assessment, levy and collection of ad valorem property taxes and make
recommendations regarding the same to the Council if
deemed appropriate.
(e) Establish a centralized purchasing system for all City offices, departments and agencies.
(f) Establish and enforce specifications for supplies,
materials and equipment required by the City.
(g) Cause all supplies purchased by the City to be inspected and a determination made that the same comply with
specifications.
(h) Prepare rules and regulations governing the contracting for, purchasing, storing, inventory, distribution or disposal of all supplies, materials and equipment required by any office, department or agency of the City government and
recommend them to the Council for its adoption by
ordinance. Preference shall be given to the purchase of supplies, materials and equipment from local merchants, quality and price being equal.
(i) Enforce the laws of the State pertaining to the City, the provisions of this Charter and the ordinances, franchises and rights of the City.
(j) Keep the Council advised of the financial conditions and future needs of the City and make such recommendations on any matter as the City Manager may deem desirable.
(k) Make and execute contracts on behalf of the City
involving budgeted or appropriated expenditures which do not exceed the amount specified by ordinance of the City Council.
(l) Appoint advisory boards, without compensation, to assist the City Manager in the performance of the City Manager’s duty, if the City Manager deems it necessary.
(m) Interchange employees between or among departments
if the City Manager deems it proper so to do.
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furniture and fixtures, supplies and movable property of every kind and nature belonging to the City; and to require each officer or department head to inventory the same or any portion thereof. One (1) copy of such inventory shall be filed with the Council and one (1) with the auditor.
(o) Be responsible for the custody and control of all City property, the custody and control of which has not otherwise been provided for by this Charter.
(p) Perform such other duties as may be prescribed by this Charter or required of the City Manager by the Council not inconsistent with this Charter.
(q) Sign all contracts, deeds and other documents on behalf of the City when authorized to do so by the Council or by this Charter.
(r) The City Manager shall have the authority to transfer equipment and supplies between departments, and with the approval of the Council, sell obsolete, and unused or surplus personal property of the City.
(s) The City Manager shall be accorded a seat at the Council table and shall be entitled to participate in the deliberations of the Council, but shall not have a vote.
(t) The Council shall have the right to instruct the City Manager in matters of policy and the City Manager shall be responsible for implementing such Council policy. Any
action, determination or omission of the City Manager shall be subject to review by the Council, but no such action, determination or omission shall be overruled or modified by a vote of less than four-sevenths of the members of such Council.
(u) The City Manager, pursuant to Section 725 of the
Charter, shall direct creation of draft written statements of Policy for each City department which is under the
administration of the City Manager.
(v) The City Manager annually shall conduct an
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performance in implementing the Council’s Statement of
Policy for that department. The City Manager shall provide such performance evaluations to the Council for their review pursuant to Section 725 of the Charter. After such Council review, the Mayor may comment on the performance
evaluation pursuant to Section 601(m) of the Charter.

SECTION 900. OFFICERS AND EMPLOYEES. GENERAL.

The officers of the City of Modesto shall consist of a Mayor, the Council, a City Manager, a City Attorney, a City Clerk, a City Auditor and such other or subordinate officers, assistants, deputies and employees as the Council may deem necessary to provide by ordinance or resolution.

The City Attorney, the City Clerk and the City Auditor shall be appointed by and may be removed by the affirmative votes of four (4) members of the Council; provided, however, that neither the City Attorney, the City Clerk nor the City Auditor shall be removed from office during or within a period of ninety (90) days next succeeding the election of a member of the Council. The purpose of this provision is to allow any newly elected member of the Council to observe the actions and abilities of these officers in the performance of the powers and duties of the respective offices.

The City Manager shall be appointed and removed as provided by Section 800 of this Charter. Except as otherwise provided in this section, all other officers and department heads of the City shall be appointed by the City Manager and shall serve at the pleasure of the City Manager.

The City Auditor shall have such powers and be required to perform such duties, consistent with the provisions of this Charter, as may be required by the Council.

The City Manager, the City Attorney, the City Clerk, and the City Auditor may be referred to collectively in this Charter as “Charter Officers.” SECTION 902.1. OFFICE OF THE CITY AUDITOR
The Office of the City Auditor is hereby established. The City Council shall appoint the City Auditor who shall serve at its pleasure. The City Auditor shall be certified according to standards comparable to a Certified Public Accountant or a Certified Internal Auditor at time of appointment.
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The City Auditor shall have the following powers and duties:
(a) Conduct or cause to be conducted annual post audits of all the fiscal transactions and accounts kept by or for the City. Such audits shall include but not be limited to the examination and analysis of fiscal procedures and the examination, checking and verification of accounts and expenditures. The audits shall be conducted in accordance with generally accepted auditing standards and accordingly shall include tests of the accounting records and other auditing procedures as may be considered necessary under the circumstances. The audits shall include the issuance of suitable reports of examination so the Council and the public will be informed as to the adequacy of the financial statements of the City.
(b) Conduct performance audits, as assigned by Council. A "performance audit" means a post audit which determines with regard to the purpose, functions and duties of the audited agency all of the following:
(1) Whether the audited department, office or agency, is managing or utilizing its resources, including public funds, personnel, property, equipment and space in an economical and efficient manner. (2) Causes of inefficiencies or uneconomical practices, including inadequacies in management information systems, internal and administrative procedures, organizational structure, use of resources, allocation of personnel, purchasing policies and equipment. (3) Whether the desired results are being achieved.
(4) Whether objectives established by the Council or other authorizing body are being met.
(c) Conduct special audits and investigations, as assigned by Council. "Special audits and investigations" mean assignments of limited scope, intended to determine:
(1) The accuracy of information provided to the Council. (2) The costs and consequences of recommendations made to the Council.
(3) Other information concerning the performance of City Departments, Offices or Agencies as requested by the Council. #11..
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(d) The City Auditor shall have access to, and authority to examine any and all documents including but not limited to books, accounts, internal memoranda, writings and tapes, reports, vouchers, correspondence files and other records, bank accounts, money and other property of any City department, office or agency, whether created by the Charter or otherwise, with the exception of the office of any elected official.

It is the duty of any officer, employee or agent of the City having control of such records to permit access to, and examination thereof, upon the request of the City Auditor or his or her authorized representative. It is also the duty of any such officer, employee or agent to fully cooperate with, and to make full disclosure of all pertinent information. (e) Prepare and submit to the Council quarterly reports of the City Auditor’s activities and findings in the immediately preceding three calendar months, together with any recommendations to improve the administration of the City.
(f) Perform other auditing functions, consistent with other provisions of this Charter, and prepare and submit such other reports, as may be assigned by the Council.

The City Auditor may appoint and prescribe the duties of the professional, technical and clerical employees employed in the Office of the City Auditor; provided, however, that the City Auditor shall not appoint to any position any business associate or any person related to him or her or to the City Manager or to any member of the Council by blood or marriage within the second degree. All such appointees shall serve at the pleasure of the City Auditor in the Unclassified Service; and shall serve under such terms and conditions, salaries and benefits as are similar to other employees in Modesto’s service. In the event an employee of the City who holds a Classified Service position is appointed to a position in the Unclassified Service under this Section, he or she may return to a position in the Classified Service. Such return to the Classified Service shall be without loss of any rights or privileges that currently pertain to the Classified Serivce.

Neither the Council nor any of its members shall in any manner dictate the appointment or removal of any such officer or employee whom the City Auditor is empowered to appoint, but the Council may express its views and fully and freely discuss with the City Auditor anything pertaining to the appointment and removal of such officers and employees.
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SECTION 903. DUTIES OF OFFICERS AND EMPLOYEES.

After obtaining and considering the recommendations of the City Manager, the Council shall provide by ordinance or resolution, not inconsistent with this Charter, for the powers and duties of all officers and employees of the City.

Where the positions are not incompatible, the Council may combine in one (1) person the powers and duties of two (2) or more offices created or provided for in the Charter. Notwithstanding this provision, the offices of the City Manager, City Clerk, City Attorney and City Auditor shall not be combined except in cases of emergency, and in no event shall such combination exceed a period of three months.

No office provided herein to be filled by appointment by the City Manager may be combined with an office provided herein to be filled by appointment by the Council.

Notwithstanding the foregoing, the Council may transfer or consolidate functions of the City government to or with appropriate functions of the State or County government or may make use of such functions of the State or County government, and in case of any such transfer or consolidation, the provisions of this Charter providing for the function of the City government so transferred or consolidated shall be deemed suspended during the continuance of such transfer or consolidation, to the extent that such suspension is made necessary or convenient and is set forth in the ordinance or resolution establishing such transfer or consolidation. Any such transfer or consolidation may be repealed in like manner.

SECTION 1201. UNCLASSIFIED AND CLASSIFIED SERVICE.

The administrative service of the City shall be divided into Unclassified and Classified Service.
(a) The Unclassified Service shall comprise the following officers and positions:
(1) All elected officers.
(2) City Manager, any Deputy City Manager, City Attorney, any Assistant City Attorney, any Deputy City Attorneys, City Clerk, City Auditor, and all heads of departments and deputy directors.

(3) All members of boards and commissions.
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(4) Persons employed as unskilled laborers.
(5) Persons employed to render professional, scientific, technical or expert services of any occasional or exceptional character. (6) Temporary and part-time employees paid on an hourly or per diem basis.
(7) Persons employed under Section 601(l) of this Charter. (b) The Classified Service shall comprise all positions not specifically included by this section in the Unclassified Service.

SECTION 1302.1. SUBMISSION OF ECONOMIC FORECASTS;
MAYOR’S BUDGET MESSAGE.

The City Manager shall, on or before December 15 of each year, submit to the Mayor and to the Council a five (5) year economic forecast of expenditures and revenues for each City department, office or agency.

The Mayor shall, on or before January 15 of each year, prepare and deliver to the Council the Mayor’s Proposed Budget Priorities and Direction for both the City’s Capital Budget and for the City’s Operating Budget.

The City Manager shall, on or before February 1 of each year, prepare and deliver to the Mayor and to the Council a Capital and Operating MidYear Budget Report for each City department, office or agency.

The Mayor shall, on or before February 15 of each year prepare and deliver to the Council the Mayor’s Budget Message which shall include:
(a) A statement of the fiscal priorities which the City should adopt for the ensuing fiscal year; and
(b) Which City services, departments, offices or agencies the Mayor proposes to be expanded or reduced.

The Council shall hold a public hearing to consider the Final Mayor’s Budget Message and to make any additions or revisions the Council deems advisable.
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Upon close of the public hearing, the Council shall approve the Mayor’s Budget Message as presented, or as revised.

SECTION 1302.2. ANNUAL BUDGET.

By April 30 of each year, the City Manager shall send to the Council a draft budget consisting of a careful estimate, in writing, of the amounts of expenditures required for the business and proper conduct of the various departments, offices, boards and commissions of the City, over which the City Manager has control during the next ensuing year. Said estimate shall be in such detail as the Council shall specify. The City Manager shall also include in the draft budget at said time and submit to the Council an estimate of the amount of income from fines, licenses and other sources of revenue, exclusive of taxes upon property, and the probable amount required to be levied and raised by taxation.

In addition to complying with the requirements of this section, The draft budget shall accurately reflect the recommendations and priorities specified in the Final Mayor’s Budget Message as adopted by the Council.

The report of the City Manager accompanying the draft budget shall specify the budget allocations which implement each component included within the Final Mayor’s Budget Message as adopted by the Council.

SECTION 1303. MAYOR’S FINAL BUDGET MODIFICATIONS; PUBLIC HEARING ON THE PROPOSED BUDGET.

At least thirty (30) days prior to the new fiscal year, the Mayor shall prepare and deliver to the Council the Mayor’s Final Budget Modifications on the draft budget.

Following the receipt of the Mayor’s Final Budget Modifications, the Council shall consider and review the draft budget as submitted by the City Manager together with the Mayor’s Final Budget Modifications and may make such revisions as the Council may deem advisable. The document resulting from this process shall be deemed the “Proposed Budget.”
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Thereafter, the Council shall determine the time for holding of a public hearing upon the “Proposed Budget”, and shall cause a notice thereof to be published not less than ten (10) days prior to said hearing by at least one (1) insertion in a newspaper of general circulation within the City.

Copies of the Proposed Budget to be considered at the public hearing shall be available for inspection by the public at the office of the City Clerk at least ten (10) days prior to said hearing.

At the time so advertised or at any time such public hearing from time to time be adjourned, the Council shall hold a public hearing on the proposed budget at which interested persons desiring to be heard shall be given such opportunity.

SECTION 1304. ADOPTION OF THE BUDGET.

After the conclusion of the public hearing, the Council shall further consider the proposed budget and make any revisions thereof that it may deem advisable; and thereafter it shall adopt the budget with revisions, if any. Such revisions may add or increase programs or amounts or may delete or decrease programs or amounts except expenditures required by law or for debt service, provided that no revision to the budget shall increase proposed expenditures to an amount greater than the total estimated income plus unencumbered available reserves and estimated
unencumbered balances of funds carried over from the preceding fiscal year.

Upon final adoption, the budget shall be in effect for the ensuing fiscal year.

From the effective date of the budget, the several amounts stated therein as proposed expenditures shall be and become
appropriated to the various departments or activities therein described. All appropriations shall lapse at the end of the fiscal year to the extent that they shall not have been expended or lawfully encumbered unless they shall have been designated in the budget as continuing appropriations. At any meeting after the adoption of the budget, the Council may amend or supplement the budget by resolution.
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Prepared by:

Sjoberg
Evashenk
Consulting

CITY OF MODESTO

CITY AUDITOR SERVICES

CITYWIDE RISK ASSESSMENT
JANUARY 23, 2023
DRA=
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 In April 2022, the City of Modesto contracted with Sjoberg Evashenk Consulting to hire a firm to complete a Risk Assessment and other necessary auditing services.  Project Objective:
 The objective of the risk assessment is to identify and prioritize auditable units within the City, which will inform audit planning and the future allocation of limited audit resources.  Project Scope:
 The scope of the risk assessment includes the City’s organizational units, programs, and operations.

PROJECT OBJECTIVES
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To meet the project objective, we performed the following procedures:
 Obtained and evaluated current and historical background information, including information available through the City’s website, program descriptions, budget documentation, key initiatives, performance reporting, and other relevant documentation.
 Interviewed department and division management to gather information about City operations, programs, and functions.
 Identified key auditable units, focusing on each of the City’s departments:

PROJECT APPROACH
3 SJOBERGEVASHENK
 City Attorney
 City Clerk
 City Manager’s Office
 Community & Economic Development
 Finance
 Fire
 Human Resources
 Information Technology
 Parks, Recreation, and Neighborhoods
 Police
 Public Works
 Utilities
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 Identified potential and inherent risks to the achievement of program goals.

PROJECT APPROACH (CONT’D)
4 SJOBERGEVASHENK
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 Prepared “risk profiles” for each Department, including:
 Organizational structure and general indicators of the size of the Department—e.g., budget and FTE allocation.
 Primary purpose, core functions, responsibilities, and strategic goals of the Department.  Inherent risks and general concerns associated with the Department’s operations.  Overall assessment of risk associated with the Department’s operations.  Potential audit topics addressing the responsibilities and inherent risks associated with each Department.

PROJECT APPROACH (CONT’D)
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CITYWIDE RISK RATINGS
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 This Risk Assessment resulted in 48 potential audit topics across the City’s 12 departments.

Building &
Parking
Services
Fleets
Solid Waste
Forestry Streets
Airport
Green
Waste/Street
Sweeping
Employee Benefits
Risk Management
Engineering
Services
Water/Wastewater
Services
Accounting
Revenue
Collection &
Compliance
IT Security
Enterprise
Applications
Building Safety &
Neighborhood
Preservation
Economic
Development
Planning
Community
Development
Parks Administration and
Facilities
Recreation and
Neighborhoods
Parks Planning and Development
Park Operations
& Maintenence
Fire Support/Business
Operations
Fire Contract Fire Operations/Suppression
Agencies
Community Risk
Reduction
Police Operations/
Investigavtive Services Police Support
Services
City Clerk's Office
Department
Administration
Budget
Office
City Manger's Office
City Attorney
1 2
3 4
5 1.0 2.0 3.0 4.0 5.0
Likelihood
Impact
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 City Attorney: Evaluation of key business processes related to the Office’s administrative functions.
 City Clerk: Evaluation of key business processes related to the Office’s operational activity and administrative functions.
 City Manager: Evaluation the City’s Performance Measurement System.  Community & Economic Development: Evaluation the Department’s recent technological (i.e., eTRAKiT) and process improvements.  Community & Economic Development: Evaluation of the Department’s grant funded programs and subrecipient compliance.
 Finance: Evaluation of citywide procurement and contracting practices.  Finance: Evaluation of cashiering processes.

POTENTIAL FIVE-YEAR AUDIT PLAN
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POTENTIAL FIVE-YEAR AUDIT PLAN (CONT’D)
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 Fire Department: Evaluation of internal controls associated with overseeing and administering the Department’s contract services.
 Human Resources: Evaluation of the Department’s human resources management activities.
 Information Technology: Evaluation of the Department’s protocols and practices related to cybersecurity and related vulnerabilities.
 Parks, Recreation, and Neighborhoods: Evaluation of the Department’s strategic planning efforts.
 Police Department: Evaluation of the Department’s inventory management practices.  Public Works: Evaluation of the Department’s Forestry Division to evaluate operational efficiencies and assess best practices.
 Utilities: Evaluation of the Department’s Capital Improvement Program (CIP) and approach to project management.
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NEXT STEPS & KEY CONSIDERATIONS
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 The Risk Assessment is an informational tool that should be used in developing the audit plan, but it alone should not determine the audit plan.  The Audit Plan is dynamic. It should be revisited on an annual basis and adjusted to account for changing and emerging risks, concerns, or priorities.  In determining the annual audit plan, we propose the following considerations:
 Review the Risk Assessment Report
 Solicit input from City Officials, including management and councilmembers  Consider recent events (e.g., creation of new programs, implementation of new systems, reorganizations, shifts in priorities, etc.)
 Scope potential audit engagements, drafting the audit objectives, scope, rough methodology, schedule, and budget
 Consider budgetary constraints and identify the best mix of audit engagements that can be achieved within the annual audit cycle
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George Skiles, Partner
Sjoberg Evashenk Consulting
455 Capitol Mall, Suite 700
Sacramento, CA 95814
(916) 443-1300
[email protected]
SJOBERGEVASHENK 10
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CITY OF MODESTO

COUNCIL AGENDA REPORT
DATE OF MEETING:

February 28, 2023
Date: January 27, 2023
TO: Mayor and City Council
THROUGH: Joseph P. Lopez, City Manager
FROM: DeAnna Christensen, Director of Finance
SUBJECT: Increase in Online Marketplace Spending
CONTACT: DeAnna Christensen, Director of Finance, [email protected] 209-577-5387
DESCRIPTION:

Consider approving an increase for purchases from Amazon Business Marketplace pursuant to OMNIA Cooperative Contract with Prince William County Schools for an Online Marketplace for Products by the annual estimated amount of $205,000, for a revised annual estimated cost of $380,000, for a total revised amount not to exceed $2,417,581 over eight years. (Funding Source: Various Funds)
STRATEGIC PLAN ELEMENT:

This item advances the City of Modesto 2020-2025 Strategic Plan Area: Governance and Service Delivery: “build community trust in City government through responsive, transparent and efficient service delivery”; Goal J: “build a high-performance organization”.

BACKGROUND:

City employees have utilized Amazon Business for the purchase of specified products since 2011. The convenience of online ordering, competitive pricing and fast shipping has made Amazon Business a popular marketplace for City employees while conducting the City’s business.

On November 26, 2019 under Resolution 2019-518, Council approved a Purchasing Agreement with Amazon Business, by utilizing the competitively solicited and awarded contract in the OMNIA Partners portfolio for a two-year term with three two-year extension options, for an annual estimated cost not to exceed $75,000, and a total amount not to exceed $600,000 over eight years.

On October 27, 2020, under Resolution 2020-439, Council approved a First amendment to the Purchasing Agreement with Amazon Business through the OMNIA Partners Public Sector cooperative purchasing organization (formerly known as US Communities and National IPA) for an online marketplace for products by $50,000 annually, for a two-year Agreement with three #12..
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City Council, February 28, 2023
Increase in Online Marketplace Spending