Modesto City Council
January 23, 2024

- 1 -
1/23/2024 5:30:00 PM

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, January 23, 2024 at 5:30 PM
Roll Call - Councilmembers Alvarez, Bavaro, Escutia-Braaton, Ricci, Williams, Wright, Mayor Zwahlen
* Public Comment will only be in-person. Members of the public who wish to address the Council, by providing public comment, during the meeting must do so in-person in the Council Chambers.

As an alternative, members of the public may also provide written public comment submitted via email as indicated in the Submitting Comments by Email instructions on this agenda. Zoom will still be available for viewing and Wordly translation.
*Members of the public will be allowed to provide public comment through Zoom if a Councilmember is participating remotely pursuant to the provisions of Assembly Bill 2449. *Effective March 1, 2023, if a technical issue arises with Zoom or the phone dial-in option, the Council meeting will continue unless the meeting is being held pursuant to the provisions of Assembly Bill 2449. Alternative viewing options are listed below, and the meeting is physically open to the public.
“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.
- 1 -
1/23/2024
- 2 -
1/23/2024 5:30:00 PM
You may observe a livestream of the meeting at http://media.modestogov.com. You may also view or listen to the meeting as indicated below.

THE MEETING CAN BE VIEWED BY ZOOM VIDEO

CONFERENCING OR TELEPHONE
Joining the City Council meeting via Zoom
The City of Modesto is now offering the ability to view 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 listen 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

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 two hours before the meeting.

This Agenda is on file in the City Clerk’s Office, Sixth Floor, 10th Street Place, Posting Board at entry of 10th Street Place, and is available on the City’s Web site at www.modestogov.com.

Materials related to an item on this Agenda submitted to the Council after distribution of the agenda packet are available for public inspection in the Clerk’s office during normal business hours. Such documents are also available online, subject to staff’s ability to post the documents before the meeting, at the following website https://www.modestogov.com/council-meetings 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 - 2 -
1/23/2024
- 3 -
1/23/2024 5:30:00 PM
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.

Pledge of Allegiance to the Flag
Invocation: John Torres, City Ministry Network
City Clerk’s Announcements
Declaration of Conflicts of Interest
Reports from Closed Session

ACKNOWLEDGEMENTS AND PRESENTATIONS

1. Proclamation declaring February as National Black History Month. (Funding Source:

Not Applicable)
CITY COUNCIL; Ariana Harbottle-Jarrett, 209-571-5597,
[email protected]

2. Proclamation declaring February as National Cancer Prevention Month. (Funding Source: Not Applicable)
CITY COUNCIL; Ariana Harbottle-Jarrett, 209-571-5597,
[email protected]

MISCELLANEOUS
Legislation, Appointments, Other

3. Consider approving the appointment of Rajmeet Grewal to the Planning Commission for a four-year term with a term expiration of December 31, 2027. (Funding Source:

Not Applicable)
Staff Recommendation:
 Resolution approving the appointment of Rajmeet Grewal to the Planning Commission for a four-year term with a term expiration of December 31, 2027.

CED; Jessica Hill, 209-577-5267, [email protected]

4. Consider recommending the reappointment of Roger Shanks, to the Planning Commission for a four-year term with a term expiration of December 31, 2027. (Funding Source: Not Applicable)
Staff Recommendation:
 Resolution approving the reappointment of Roger Shanks to the Planning Commission for a second four-year term with a term expiration of December 31, 2027.

CED; Jessica Hill, 209-577-5267, [email protected]
- 3 -
1/23/2024
- 4 -
1/23/2024 5:30:00 PM

PUBLIC COMMENT IN PERSON
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:
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.

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

Consent

5. Consider approving the minutes for the January 9, 2024 Council Meeting. (Funding Source: Not Applicable)
Staff Recommendation:
 Motion approving the minutes for the January 9, 2024 Council Meeting.

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

6. Consider approving a First Amendment to the Legal Services Agreement with Swingle, Van Egmond & Heitlinger for a revised total amount not to exceed $550,000 for representation in tort cases. (Funding Source: General Liability Insurance Fund) Staff Recommendation:
 Resolution approving a First Amendment to the Legal Services Agreement with Swingle, Van Egmond & Heitlinger increasing the Agreement amount by $300,000 from $250,000 for a revised total amount not to exceed $550,000 to continue representing the City of Modesto in tort cases, and authorizing the City Manager or his designee, to execute the Amendment.

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

7. Consider approving the Encampment Resolution Funding Program Application to further our homeless initiatives. (Funding Source: Encampment Resolution Funding) Staff Recommendation:
- 4 -
1/23/2024
- 5 -
1/23/2024 5:30:00 PM
 Resolution approving the Encampment Resolution Funding Program Application, and authorizing the City Manager, or his designee, to submit the Encampment Resolution Funding (ERF) Application in an amount not to exceed $5,845,514, and applicable documentation, as required by California Interagency Council on Homelessness (Cal-ICH), and authorizing the City Manager or his designee to execute the grant agreement, and to take the necessary steps to implement the provisions of this Resolution.

CED; Edgar Garcia, 209-577-5211, [email protected] Consent

8. Consider approving the competitive bidding process from the State of California for Bridge Housing vendors for a total combined amount not to exceed $2,000,000. (Funding Source: Measure H Funds)
Staff Recommendation:
 Resolution approving the Competitive Bidding Process from Department of General Services, Procurement Division of The State of California with to PIH Services Inc., Pallet PBC, dba Pallet, Inc, BOSS Homes, LLC, Factory OS, KEB Homes, LLC and AMEG Enterprises, LLC for emergency sleeping cabins, storage and parts and accessories for Bridge Housing for a total combined amount not to exceed $2,000,000; and authorizing the Purchasing Manager, or her designee, to issue the Purchase Orders based on contractor’s availability and department’s needs.

CED; Edgar Garcia, 209-577-5211, [email protected] Consent

9. Consider accepting the New Traffic Signal Installation Oakdale Road at Claratina Avenue Project as complete, releasing securities, releasing payments totaling $478,581 to Tim Paxin’s Pacific Excavation, Inc., dba Pacific Excavation of Elk Grove, CA., and authorizing the City Clerk to file a Notice of Completion. (Funding Source: Highway Safety Improvement Program, Surface Transportation Block Grant, and Measure L) Staff Recommendation:
 Resolution accepting the New Traffic Signal Installation Oakdale Road at Claratina Avenue Project as complete, releasing securities, releasing payments totaling $478,581 to Tim Paxin’s Pacific Excavation, Inc., dba Pacific Excavation of Elk Grove, CA., and authorizing the City Clerk to file a Notice of Completion.

ENGINEERING SERVICES; Peter Kambel, 209-577-5444, [email protected] Consent

10. Consider accepting the Ralston Tower Park Project as complete, releasing securities, releasing payments totaling $952,204 to Taylor Backhoe Service, Inc., dba TBS Contractors of Merced, CA., and authorizing the City Clerk to file a Notice of Completion. (Funding Source: Community Development Block Grant Funds and Land and Water Conservation Fund Grant Funds)
Staff Recommendation:
 Resolution accepting the Ralston Tower Park Project as complete, releasing - 5 -
1/23/2024
- 6 -
1/23/2024 5:30:00 PM
securities, releasing payments totaling $952,204 to Taylor Backhoe Service, Inc. dba TBS Contractors of Merced, CA., and authorizing the City Clerk to file a Notice of Completion.

ENGINEERING SERVICES; Peter Kambel, 209-577-5444, [email protected] Consent

11. Consider accepting an informational report for the November 2023 Accounts Payable Payment Register and Void report. (Funding Source: Not Applicable) Staff Recommendation:
 Motion accepting an informational report for the November 2023 Accounts Payable Payment Register and Void report.

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

12. Consider accepting the Monthly Investment Report for November 2023. (Funding Source: Various Funds)
Staff Recommendation:
 Motion accepting the Monthly Investment Report for November 2023.

FINANCE DEPARTMENT; Calogero Maniscalco, 209-577-5219,
[email protected]
Consent

13. Consider approving the Second Amendment for furnishing of Fuel Card-Lock services with Stan Boyett & Son, Inc. dba Boyett Petroleum, Modesto, CA to increase the Agreement to a revised total amount not to exceed $14,400,000 over five years. (Funding Source: Fleet Fund, Outside Fire Contracts, and Stanislaus Regional Transit Authority)
Staff Recommendation:
 Resolution approving a Second Amendment to the Agreement with Stan Boyett & Son, Inc. dba Boyett Petroleum, Modesto, CA for Fuel Card-Lock services by $2,700,000 from $1,800,000 to a revised annual estimated amount of $4,500,000 for Year 4 and Year 5 and a revised total amount not to exceed $14,400,000 over five years; revising the term of the Agreement from March 9, 2027 to March 9, 2025; and authorizing the City Manager, or his designee, to execute the Amendment.

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

14. Consider approving an Agreement with Tyler Technologies, Inc., Plano, TX, for Professional Services and Software Subscription for a total amount not to exceed $269,325. (Funding Source: Information Technology Fund) Staff Recommendation:
 Resolution approving the Agreement with Tyler Technologies, Plano, TX by utilizing the Competitive Bid Process with Sourcewell through the State of Minnesota, for Professional Services and Software Subscription for a term of - 6 -
1/23/2024
- 7 -
1/23/2024 5:30:00 PM
three (3) years, in the amount of $256,500 plus a 5% contingency of $12,825 for a total amount not to exceed $269,325; and authorizing the City Manager, or his designee to execute the Agreement.

IT; James Dotson, 209-571-5508, [email protected] Consent

15. Consider the purchase of Oracle Application Upgrades and Professional Migration Services to move the City’s On-Premises E-Business Suite to Oracle Cloud using Mythics, Inc. of Virginia Beach, VA for a combined total amount not to exceed $1,219,859 over five years. (Funding Source: Information Technology Fund) Staff Recommendation:
 Resolution approving the Competitive Bidding Process from Omnia Partners Cooperative Purchasing Organization, Maricopa County, AZ, with Mythics, Inc. of Virginia Beach, VA for Oracle Application Upgrades and Professional Migration Services, for a total amount not to exceed $406,629; and authorizing the Purchasing Manager, or her designee, to issue the Purchase Order.  Resolution approving the Competitive Bidding Process from the Omnia Partners Cooperative Purchasing Organization, Maricopa County, AZ, with Mythics, Inc. of Virginia Beach, VA for Purchase of Oracle Cloud Subscription Licenses, for a total amount not to exceed $813,230 over five years; and authorizing the Purchasing Manager, or her designee to issue the Purchase Order.

IT; James Dotson, 209-571-5508, [email protected] Consent

16. Consider approving an Agreement with Peregrine Technologies, Inc., San Francisco, CA, for an Analytics and Data Integration Platform for a total amount not to exceed $553,500 over three years. (Funding Source: Traffic Safety Fund and State Supplemental Law Enforcement Services Fund)
Staff Recommendation:
 Resolution approving an Agreement with Peregrine Technologies, Inc., San Francisco, CA, by utilizing the Competitive Bid process with City of Fremont, CA for an Analytics and Data Integration Platform for a three year agreement for a total amount not to exceed $553,500, and authorizing the City Manager or his designee, to execute the Agreement.

POLICE DEPARTMENT; Chris Adams, 209-572-9500, [email protected] Consent

17. Consider approving the purchase of a restroom building for the Tuolumne River Regional Park (TRRP), Picnic Area B from Public Restroom Company, of Minden, NV, for a total amount not to exceed $328,676. (Funding Source: American Rescue Plan Act, TRRP CIP Fund)
Staff Recommendation:
 Resolution approving the Competitive Bidding Process from Sourcewell with Public Restroom Company, of Minden, NV, for the Purchase, Delivery, and Installation of a Restroom Building for the Tuolumne River Regional Park, - 7 -
1/23/2024
- 8 -
1/23/2024 5:30:00 PM
Picnic Area B, for a total amount of $298,796, plus $29,880 of contingency, if needed, for a total amount not to exceed $328,676, and authorizing the Purchasing Manager, or her designee, to issue the Purchase Order.

PRN; Nathan Houx, 209-571-5526, [email protected]
Consent

18. Consider approving the Plans and Specifications for the Regional Water Recycling Facility - Jennings Campus Corrosion Control Measures Project accepting the Bid and Awarding a Construction Contract to TCB Industrial, Inc., of Modesto, CA, in the amount of $3,870,047, authorizing 15% for contingency (if needed), for a total payment amount not to exceed $4,450,554. (Funding Source: Wastewater Fund) Staff Recommendation:
 Resolution approving the Plans and Specifications for the Regional Water Recycling Facility - Jennings Campus Corrosion Control Measures Project; accepting the Bid and Awarding a Construction Contract to TCB Industrial, Inc., of Modesto, CA, in the amount of $3,870,047, authorizing the Director of Engineering Services to approve Change Orders up to the cumulative amount of $580,507, 15% of the original contract price, for a total payment amount not to exceed $4,450,554 and authorizing the City Manager, or his designee, to execute the contract.
 Resolution amending the Fiscal Year 2023-24 Capital Improvement Program Budget in the amount of $2,632,510 to fund the Construction Phase of the Regional Water Recycling Facility - Jennings Campus Corrosion Control Measures Project and authorizing the City Manager, or his designee, to implement the provisions of the resolution.

UTILITIES; Cristian Ciotau, 209-571-5175, [email protected] Consent

19. Consider the First Amendments to the On-Call Engineering Consultant Agreements with Brown & Caldwell, Carollo Engineers, and Hazen and Sawyer, and the Second Amendments to the On-Call Engineering Consultant Agreements with Black Water Consulting Engineers, Inc., West Yost Associates, and Woodard & Curran, to remove the annual “not to exceed” language. (Funding Source: Sewer Fund, Storm Drain Fund)
Staff Recommendation:
 Resolution approving the First Amendments to the On-Call Engineering Consultant Agreements with Brown & Caldwell, Carollo Engineers, and Hazen and Sawyer, and the Second Amendments to the On-Call Engineering Consultant Agreements with Black Water Consulting Engineers, Inc., West Yost Associates, and Woodard & Curran, to remove the annual “not to exceed” language, and authorizing the City Manager, or his designee, to execute the Amendment.

UTILITIES; Jeff Daniels, 209-577-6255, [email protected]

COUNCIL COMMENTS & REPORTS

CITY MANAGER COMMENTS & REPORTS
- 8 -
1/23/2024
- 9 -
1/23/2024 5:30:00 PM

HEARINGS
Published in the Modesto Bee on January 3, 2024

20. Hearing to consider proposed amendments to the General Plan and the Specific Plan Amendment No. 26 to the Village One Specific Plan to rezone 84.1 acres from Business Park to single-family residential. (Funding Source: Developer Funded) Staff Recommendation:
 Resolution approving an Amendment to the Modesto Urban Area General Plan (DR Horton Bay, Inc.).
 Resolution approving Specific Plan Amendment No. 26 to the Village One Specific Plan, to amend the Land Use Diagram from Business Park (BP) to Village Residential (VR), 140 acres east of Claus Road and north of East Briggsmore Avenue, with associated amendments to the Circulation Diagram and text (DR Horton Bay, Inc.).
 Motion introducing and waiving the first reading of an Ordinance adopting a Precise Plan for Village One Precise Plan Area No. 35 South, with amendment of Section 18-3-10 of the Zoning Map to rezone from Specific Plan-Holding (SP-H) Zone to Specific Plan (SP) Zone, property located east of Claus Road, south of Milnes Road and North of East Briggsmore Avenue. (DR Horton Bay, Inc.).
 Resolution approving the Vesting Tentative Subdivision Map of “The Crossings” (DR Horton Bay, Inc.).
 Resolution adopting a Final Development Plan for “The Crossings”, in the Village One Specific Plan, for 527 single-family residential lots, five landscape lots, and one park lot on property located east of Claus Road and north of East Briggsmore Avenue (DR Horton Bay, Inc.).
 Resolution adopting a Mitigated Negative Declaration for a General Plan Amendment, the Village One Specific Plan Amendment No. 26, Village One Precise Plan No. 35 South, Vesting Tentative Subdivision Map “The Crossings”, and Final Development Plan “The Crossings.” (DR Horton Bay, Inc.).

CED; Katharine Martin, 209-577-5267, [email protected]

NEW BUSINESS

21. Consider accepting the Homekey 3 award in the amount of $ 16,059,562 and HOME Investment Partnerships loans to Modesto Homekey LP in the amount of $3,473,712, and $200,000 for staff activity, and approving an Agreement with Stanislaus County Community Services Agency (CSA) for the acceptance of Homeless Housing Assistance and Prevention Program (HHAP) funding in the amount of $1,775,077 for the project located at 710 N. 9th Street. (Funding Source: Homekey 3 funds, American Rescue Plan HOME Investment Partnership (HOME-ARP) funds, HOME Investment Partnership funds, and Homeless Housing Assistance and Prevention Program Funds) Staff Recommendation:
 Resolution accepting the Homekey 3 award in the amount of $16,059,562 and approving the Homekey Regulatory Agreement authorizing the City Manager - 9 -
1/23/2024
- 10 -
1/23/2024 5:30:00 PM
or his designee to negotiate and execute an Agreement with Modesto Homekey LP and the State of California for the development at 710 N. 9th Street.  Resolution approving a HOME American Rescue Plan Act loan to Modesto Homekey LP in an amount not to exceed $2,800,000, $98,308 in staff activity delivery, and authorizing the City Manager or his designee to negotiate and execute an Agreement with Modesto Homekey LP for the development at 710 N. 9th Street.
 Resolution approving a HOME Investment Partnership Program loan to Modesto Homekey LP in an amount not to exceed $673,712, $102,000 in staff activity delivery, and authorizing the City Manager or his designee to negotiate and execute an Agreement with Modesto Homekey LP for the development at 710 N. 9th Street.
 Resolution approving an Agreement with Stanislaus County Community Services Agency (CSA) for the acceptance of Homeless Housing Assistance and Prevention Program (HHAP) funding in the amount of $1,775,077 and to issue a grant in an amount not to exceed $1,755,077 to Modesto Homekey LP and authorizing the City Manager or his designee to negotiate and execute an Agreement with Modesto Homekey LP for the development at 710 N. 9th Street.
 Resolution rescinding Resolution 2023-213 and amending the fiscal year 2023- 2024 multi-year fund budget for the Traveler’s project fund (101542) to be funded with Homekey 3.0 program funds, HOME American Rescue Plan Funds (HOME ARP) funds, HOME Investment Partnerships funds (HOME), and Homeless Housing Assistance and Prevention Program (HHAP) funds for the development of the 710 N. 9th Street affordable housing project totaling $21,308,351 and $200,000 for activity delivery costs and budgeting the necessary revenue, expense transfers and authorizing the City Manager or his designee to take the necessary steps to implement the provisions in this Resolution.

CED; Edgar Garcia, 209-577-5211, [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
- 10 -
1/23/2024
- 11 -
1/23/2024 5:30:00 PM

CLOSED SESSION
Please take notice that a special Closed Session meeting of the Council of the City of Modesto has been called pursuant to Section 2-1.02 of the Modesto Municipal Code to be convened on TUESDAY, JANUARY 23, 2024 AT 4:00 PM
and after the regularly scheduled meeting in the Tenth Street Place, Chambers Conference Room, Basement Level, 1010 Tenth Street, Modesto, California. Any and all of the following agenda items are subject to action being taken by the Modesto City Council.

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

CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION
One Case (Pursuant to Section 54956.9(d)(1) of the Government Code) Name of Case: City of Modesto, et al. v. The Dow Chemical Company, et al. (PCE) Superior Court of the State of California
Case No: CGC-98-999345 and CGC-98-999643
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 - 11 -
1/23/2024
- 12 -
1/23/2024 5:30:00 PM
CONFERENCE WITH LABOR NEGOTIATOR:
(Pursuant to Section 54957.6 of the Government Code) – Unrepresented Negotiator: Christina Alger
Employee Organization: Unrepresented Management and Confidential Employees Posted pursuant to Government Code Section 54954.2 on the bulletin board at Tenth Street Place on
at by
date time signature
- 12 -
1/23/2024
1https://library.municode.com/ca/modesto/codes/code_of_ordinances?nodeId=CHTR_ARTXIAPBOCO_S1102APT E

CITY OF MODESTO

COUNCIL AGENDA REPORT
DATE OF MEETING:

January 23, 2024
Date: January 4, 2023
TO: Mayor and City Council
THROUGH: Joseph P. Lopez, City Manager
FROM: Jessica Hill, Director of Community and Economic Development SUBJECT: Appointment of Rajmeet Grewal to the City of Modesto Planning Commission CONTACT: Jessica Hill, Director of Community and Economic Development [email protected]; 209-577-5267
DESCRIPTION:

Consider approving the appointment of Rajmeet Grewal to the Planning Commission for a fouryear term with a term expiration of December 31, 2027. (Funding Source: Not Applicable).

STRATEGIC PLAN ELEMENT:

This action supports the City’s Strategic Commitment, “Build Community trust in City Government through Responsive, Transparent and Efficient Service Delivery. Goal I. Promote Trust and Engagement between the Community and the City”.

BACKGROUND:

The Planning Commission is responsible for making decisions and recommendations regarding the development of the community. The Planning Commission has final authority regarding subdivision maps and parcel maps, certain zoning matters and development plans, and occasionally matters appealed either from the staff level or Board of Zoning Adjustment. The Planning Commission makes recommendations to the City Council regarding annexations, rezonings, Code amendments, and most General Plan-related matters.

Section 11021 of the Charter of the City of Modesto authorizes the City Council to appoint members to various Boards and Commissions with the recommendation of the City’s Appointments Committee.

DISCUSSION:

The Planning Commission consists of seven (7) qualified persons comprised of members appointed by the City Council, as prescribed in the Charter.

Commissioner Amin Vohra was reappointed to the Planning Commission for a term effective #3..
- 13 -
City Council, January 23, 2024
Appointment of Rajmeet Grewal to the Planning Commission

January 1, 2020, through December 31, 2023, by Council Resolution 2020-123. Commissioner Vohra’s term has expired, leaving a vacancy on the Planning Commission and a term to fill.

Vacancies are to be filled by a prospective candidate, subject to interviews by the Appointments Committee, as required by Council policy, and final approval by the City Council.

Outreach for the Planning Commission vacancies included posting in the Modesto Bee, emails to those who have applied for a Planning Permit, emails to those who have a business license as an Engineer or Architect, and emails to current members of all Planning Committees to forward to their colleagues to apply.

The Appointments Committee received six (6) applications for the Planning Commission and conducted interviews on December 19, 2023.

FISCAL IMPACT:

There is no fiscal Impact related to this action.

COMMITTEE RECOMMENDATION:

This item was presented to the Appointments Committee on December 19, 2023, and was recommended to move forward to Council.

RECOMMENDED COMMITTEE ACTION:

Staff Recommendations:

Resolution approving the appointment of Rajmeet Grewal to the Planning Commission for a four-year term with a term expiration of December 31, 2027.

Approved by:

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

1. RESO – Rajmeet Grewal

2. Planning Commission Bylaws

3. Appointments Committee Minutes
#3..
- 14 -

MODESTO CITY COUNCIL
RESOLUTION NO. 2024-XXX

RESOLUTION APPROVING THE APPOINTMENT OF RAJMEET GREWAL TO

THE PLANNING COMMISSION FOR A FOUR-YEAR TERM WITH A TERM EXPIRATION OF DECEMBER 31, 2027
WHEREAS, the Planning Commission is responsible for making decisions and recommendations regarding the development of the community. The Planning Commission has final authority regarding subdivision maps and parcel maps, certain zoning matters and development plans, and
WHEREAS, Section 1102 of the Charter of the City of Modesto authorizes the City Council to appoint members to various boards and commissions, and WHEREAS, Planning Commissioner Amin Vohra’s second term ended on December 31, 2023, leaving a vacancy on the City of Modesto Planning Commission, and
WHERAS, the Appointments Committee met on December 19, 2023, and recommended the appointment of Rajmeet Grewal to the City of Modesto Planning Commission.

NOW, THEREFORE, BE IT HEREBY RESOLVED by the Council of the City of Modesto, that it approves the appointment of Rajmeet Grewal to the City of Modesto Planning Commission for a term of four-years with a term expiration of December 31, 2027.
#3..
- 15 -
The foregoing resolution was adopted at a regular meeting of the Council of the City of Modesto held on the 23rd of January 2024, 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
#3..
- 16 -
City of Modesto

PLANNING COMMISSION
Rules and Regulations
August 2016
#3..
- 17 -

TABLE OF CONTENTS
Description Page
Dates of Adoption/Amendments……………………………………………………………………………………………1 ARTICLE I. – ORGANIZATION
Section 1.1 – Establishment………………………………………………………………………………………….. 2 ARTICLE II. – POWERS AND DUTIES
Section 2.1 – Enumerated…………………………………………………………………………………………….. 2 ARTICLE III. - MEETINGS
Section 3.1 – Regular Meetings……………………………………………………………………………………… 2 Section 3.2 – Special Meetings………………………………………………………………………………………. 3 Section 3.3 – Notice of Meetings……………………………………………………………………………………. 3 Section 3.4 – Place of Meetings……………………………………………………………………………………… 3 Section 3.5 – Quorum…………………………………………………………………………………………………… 3 Section 3.6 – Meetings to be Public… ……………………………………………………………………………. 3 Section 3.7 – Seating and Roll Call Vote…………………………………………………………………………. 3 Section 3.8 – Attendance………………………………………………………………………………………………. 3 Section 3.9 – Agenda and Reports…………………………………………………………………………………. 4 Section 3.10 – Field Trips…............................................................................................... 4 Section 3.11 – Reading of the Minutes…………………………………………………………………………….4 Section 3.12 – Order of Business (Agendas)……………………………………………………………………. 4 ARTICLE IV. – PUBLIC HEARINGS
Section 4.1 – Public hearing Procedures…………………………………………………………………………. 4 ARTICLE V. – PLANNING COMMISSION ORGANIZATION
Section 5.1 – Membership……………………………………………………………………………………………. 6 Section 5.2 – Term………………………………………………………………………………………………………. 6 Section 5.3 – Appointment process………………………………………………………………………………. 6 ARTICLE VI. – ELECTION OF OFFICERS/TERMS OF OFFICE
Section 6.1 – Election of Officers…………………………………………………………………………………… 6 Section 6.2 – Terms of Office………………………………………………………………………………………. 6 ARTICLE VII. – OFFICERS
Section 7.1 – Enumerated…………………………………………………………………………………………….….… 7 Section 7.2 – Election of Officers…………………………………………………………………………………………. 7 ARTICLE VIII. – PROCEDURES, POWERS, DUTIES, AND STAFF
Section 8.1 – Designated………………………………………………………………………………………………. 7 Section 8.2 – Secretary of the Commission……………………………………………………………………. 7 Section 8.3 – Recording Secretary…………………………………………………………………………………. 7 ARTICLE IX. – PARLIAMENTARY PROCEDURE
Section 9.1 – Rules of Order…………………………………………………………………………………………. 7 Section 9.2 – Rules of Debate……………………………………………………………………………………….. 7 Section 9.3 – Rules for Processing of Motions…………………………………………………………………. 8 Section 9.4 – Parliamentarian……………………………………………………………………………………….. 9 ARTICLE X. – METHOD OF ACTION
Section 10.1 – Decisions……………………………………………………………………………………………….. 9 ARTICLE XI. – COMMITTEES
Section 11.1 – Special Committees………………………………………………………………………………… 9 #3..
- 18 -
City of Modesto Planning Commission Page 1
Rules and Regulations
August 23, 2016
Adopted: February 5, 1957
Amended: October 7, 1958,
November 18, 1958
October 3, 1961
December 15, 1964
March 18, 1975
December 5, 1978
April 2, 1979
September 2, 1979
May 4, 1981
September 20, 1982
March 21, 1983
January 20, 1987
December 19, 1988
April 16, 1990
April 21, 1997
August 16, 1999
April 19, 2004
June 7, 2010
#3..
- 19 -
City of Modesto Planning Commission Page 2
Rules and Regulations
August 23, 2016
ARTICLE I. ORGANIZATION
Section 1.1 Establishment
The Planning Commission of the City of Modesto, hereafter called “The Commission”, is established pursuant to the provisions of Chapter 1 of Title X of the Modesto Municipal Code.

ARTICLE II. POWERS AND DUTIES
Section 2.1 Enumerated.

The Commission shall have the following powers and duties:
(a) Perform all of the functions assigned to a City Planning Commission by the statutes of the State Law relating to planning and zoning, insofar as they are not in consistent with the provisions of the Charter of the City of Modesto.
(b) Prepare and recommend the adoption, amendment, or repeal of a General Plan. (c) Advise and recommend to the proper officials of the City the approval, disapproval or modification of all land subdivision in accordance with the Subdivision Map Act of the State of California, or as may be provided by the Municipal Code of the City of Modesto. (d) Hold hearings on planning and zoning matters as prescribed by the Modesto Municipal Code, or State law.
(d) Review and recommend to the City Council a capital improvements program budget. (e) Advise and recommend to the proper officials of the City regarding the acquisition, use, or disposition of all City-owned property.
(f) Advise and recommend to the Council on matters required by law or referred by the City Council.

ARTICLE III. MEETINGS
Section 3.1 Regular Meetings.

Prior to the first meeting of the coming year, a calendar of meetings shall be approved by the Planning Commission. The calendar adopted by the Planning Commission shall constitute the Schedule of Meetings. In preparing the calendar of meetings, the following shall serve as guidelines:
(a) Regular meetings of the Commission shall be open to the public and shall be held at 6:00 p.m. on the first and third Monday of each calendar month.
(b) If a regular meeting date falls on a legal holiday the meeting shall be held on the previous or following Monday.
(c) If all members are absent from any regular or adjourned meeting, the Secretary may declare the meeting adjourned to a stated time and place. If the Secretary does so, the Secretary shall cause written notice of the adjournment to be given in the same manner provided for special meetings. Whenever a regular or adjourned regular meeting is adjourned as provided in this #3..
- 20 -
City of Modesto Planning Commission Page 3
Rules and Regulations
August 23, 2016
section, the resulting adjourned regular meeting is a regular meeting for all purposes. When an order of adjournment of any meeting fails to state the hour at which the adjourned meeting shall be held, it shall be held at the hour specified for the regular meeting which was adjourned.
(d) In preparing the calendar, a two-to-three-week interval between meetings shall be maintained, where possible.

Section 3.2 Special Meetings.

Special Meetings of the Commission shall be open to the public and shall be held at such time as the Commission may determine, or they may be called by the Chairperson any time where an emergency situation warrants such a meeting.

Section 3.3 Noticing of Meetings.

Noticing of all meetings shall be in conformance with State Planning Law and the Modesto Municipal Code.

Section 3.4 Place of Meetings.

All meetings shall be held in the official Council Chamber of the City of Modesto or in such other location of the City as may be designated by the Planning Commission or the Secretary thereto.

Section 3.5 Quorum.

A majority of the members of the Commission shall constitute a quorum for the transaction of business.

Section 3.6 Meetings to be Public.

All meetings of the Commission shall be open to the public.

Section 3.7 Seating and Roll Call Vote.

The Commission shall be seated in alphabetical order. A roll call vote shall be taken upon the passage of all resolutions and be entered upon the journal of the proceedings of the Commission. Upon the request of any member, a roll call vote shall be taken and recorded on any vote. Whenever a roll call vote of the Commission is in order, the names of the members shall be called in the order seated, provided that the name of the presiding officer shall be called last. All members shall be required to vote. The affirmative or negative vote of a majority of the entire membership of the Commission shall be necessary for it to take action.

Section 3.8 Attendance.

Regular attendance at all meetings of the Commission is required of all members to enable the Commission to discharge the duties imposed upon it by law. If a member is absent from three (3) regular meetings of the Commission consecutively, without securing the permission of the Commission expressed in its official minutes, the member shall be deemed to have resigned from the Commission, and the member’s office shall become vacant.

Section 3.9 Agenda and Reports.

In order to facilitate the orderly conduct of the business of the Commission, the Secretary shall prepare and agenda of the matters to be considered by the Commission at its next meeting together #3..
- 21 -
City of Modesto Planning Commission Page 4
Rules and Regulations
August 23, 2016
with a report outlining all known facts in each case to be considered by the Commission, with such analysis as is necessary, including recommended action when appropriate. The agenda and all reports shall be delivered or mailed to each member of the Commission, the City Manager, and the City Attorney prior to the Commission meeting at which they are to be considered, as far as possible in advance of the meeting as time for preparation will permit. Matters not included on the agenda will not be acted upon by the Commission unless (a) a majority of the Commission determine that an emergency situation exists, or (b) the Commission, by a two-thirds vote, or if less than two-thirds of the members are present by a unanimous vote, determines that the need to take action arise subsequent to the agenda for the meeting being posted, or (c) the item was on a properly posted agenda for a prior meeting of the Commission occurring not more than five (5) days prior to the meeting at which the action is taken.

Section 3.10 Field Trips.

In cases where a view of the premises will assist the Commission in making a decision, a field trip may be arranged by City planning staff prior to the meeting.

Section 3.11 Reading of the Minutes.

Unless the reading of the minutes of a previous Commission meeting is requested by a member of the Commission, such minutes may be approved without reading if the Secretary has previously furnished each member of the Commission with a copy thereof.

Section 3.12 Order of Business (Agendas).

Order of business at any regular meeting shall be as follows:
a. Roll Call
b. Approval of Minutes
c. Consent and Joint Public Hearing Items
d. Public Hearings
e. Other Business
f. Oral Communications
g. Matters too Late for the Agenda
h. Adjournment
ARTICLE IV. PUBLIC HEARINGS
Section 4.1 Public Hearing Procedures.

The following rules shall govern the conduct of public hearings:
(a) The Chairperson opens the public hearing and calls for a presentation by staff. (b) At the opening of the hearing, staff describes the item under consideration and presents staff report and recommendation.
(c) The Planning Commission may ask questions of staff through the Chair. (d) At the conclusion of the presentation by staff, applicant (or proponents) is given first opportunity to speak and/or make a presentation, of any materials, exhibits, documents or other physical evidence.
#3..
- 22 -
City of Modesto Planning Commission Page 5
Rules and Regulations
August 23, 2016
(e) For appeals, the Appelant’s presentation would precede the Applicant’s. (f) At the conclusion of the presentation by the applicant or proponents, any persons who oppose the application may make a presentation, and present any materials, exhibits, documents or other physical evidence.
(g) All exhibits, documents or other physical evidence used by applicant or other interested parties during the hearings, will be introduced into evidence and will become part of the record and retained by the Secretary until the decision becomes final. (h) Members of the public wishing to speak on an item shall not be required to be sworn. Each speaker will be required to approach the microphone and give their full name and address for the record before testifying.
(i) The Planning Commission may ask questions of the speaker, through the Chair. (j) The reading of details of letters and petitions by the persons submitting them may be permitted provided the material is not overly lengthy. Speakers will be asked to summarize written material. Such documents may be filed with the Secretary and the Secretary shall mark them as having been received for the limited purpose of showing the names of the persons protesting or supporting the application.
(k) While it is desirable in a democratic process to permit every person an unlimited right to speak, such a right unduly prolongs a public hearing and clouds the basic issue if the evidence presented is merely repetitious. Therefore, whenever necessary, the Chairperson may state that repetitious evidence is to be avoided. Similarly, testimony and evidence which is incompetent, irrelevant or immaterial may be foreclosed by the Chairperson. If such improper evidence is received, it shall not be considered by the Commission in reaching its decision. (l) The Commission may establish special rules for individual items of business, establishing time limits for presentations and requiring presentations to be made through spokespersons, if possible.
(m) After those in favor or opposed to an application have been heard, the Chairperson will ask for the recommendation of staff and the reasons for such recommendation. After such recommendation, both the applicant and opponent, if any, shall be given a limited amount of time to summarize their position or respond to the recommendation, after which the Chairperson shall close the public portion of the hearing. (n) The Commission should discuss the issues involved and make its decision only after hearing the evidence presented at the public hearing. Discussion of the matter by members of the Commission concurrently with or immediately following the staff’s factual report and before the public has an opportunity to present its point of view may influence the Commission action. Therefore, except for questions by the Commission to obtain or clarify the facts, discussion of the matter by Commission members should be delayed until after the public hearing is closed and the matter is presented to the Commission for discussion and decision. (o) The Commission may conduct a field trip to view the property involved in the public hearing. All field trips shall be taken as part of a regular, adjourned regular or special meeting of the Commission and all interested persons will be afforded the opportunity to be present to hear any reports or comments. A complete record of such field trip will be entered into the minutes so the record will indicate that the field trip was taken into consideration as evidence. If a Commissioner has personal knowledge of the property area, the Commissioner should make a #3..
- 23 -
City of Modesto Planning Commission Page 6
Rules and Regulations
August 23, 2016
statement to that effect at the time of the hearing so the record will reflect everything being taken into consideration in making the final decision.
(p) Commissioners are responsible for ensuring that the public hearing is conducted in a fair and impartial manner. If a Commissioner receives personal contact or telephone calls outside of the public hearing which concerns a matter pending before or of interest to the Planning Commission, he or she shall disclose the substance and nature of the contact or call at the public hearing. If written materials are presented to the Commission by an applicant or member of the public, a copy must be made available for public review by filing the materials with the Secretary at least three (3) days in advance of the meeting at which the item or matter is scheduled to be considered or at the time the materials are provided to any Commissioner, whichever is earliest.
(q) Summary of Procedure for Conduct of Public Hearings by the Modesto City Planning Commission:
1) Opening of public hearing.
2) Staff Report and (optional) recommendation.
3) Applicant’s presentation.
4) Opposition presentation.
5) Staff recommendation.
6) Summation by applicant and opposition.
7) Close of public portion of hearing.
8) Discussion and decision by Commission.

ARTICLE V - PLANNING COMMISSION ORGANIZATION
Section 5.1 Membership.

The Planning Commission shall consist of seven members.

Section 5.2 Term.

The term of the Planning Commissioners shall be set by the City Council by resolution.

Section 5.3 Appointment Process.

The City Council shall appoint all members of the Planning Commission pursuant to applicable provisions of the Municipal Code.

ARTICLE VI - ELECTION OF OFFICERS/TERMS OF OFFICE
Section 6.1 Election of Officers.

As soon as practical following the first day of January of each year, the Commission shall elect a Chairperson and Vice Chairperson.

Section 6.2 Terms of Office.

The Chairperson and Vice-Chairperson shall hold offices for one (1) year.

ARTICLE VII. - OFFICERS
Section 7.1 Enumerated.

The officers of the Commission shall be:
#3..
- 24 -
City of Modesto Planning Commission Page 7
Rules and Regulations
August 23, 2016
A Chairperson, whose duties shall be to preside at all meetings and call special meetings; and A Vice Chairperson, who shall, in the absence of the Chairperson, perform the duties of the Chairperson.

ARTICLE VIII. - PROCEDURES, POWERS, DUTIES, AND STAFF
Section 8.1 Designated.

The provisions of the Municipal Code of the City of Modesto pertaining to procedures, powers, duties, and staff shall prevail.

Section 8.2 Secretary of the Commission.

The Director of the Community & Economic Development Department or his/her designee shall serve as Secretary to the Commission. The Secretary shall keep a written record of all business transacted by the Commission, notify Commission members of meetings, and keep the official records of the Commission. Upon the direction of the Commission, the Secretary shall perform such other secretarial duties as the Commission may require.

Section 8.3 Recording Secretary.

The recording secretary shall assist the Secretary of the Commission in fulfilling the responsibilities of administering to the needs of the Commission, including attending meetings to take audio recordings of the meetings, preparing minutes of all meetings, maintaining personnel records of the Commissioners and coordinating meeting schedules.

ARTICLE IX. - PARLIAMENTARY PROCEDURE
Section 9.1 Rules of Order.

Except as otherwise provided in these rules and regulations, all meetings of the Commission shall be conducted in accordance with the following rules and procedures.

Section 9.2 Rules of Debate.

The Chairperson, or such other member of the Planning Commission as may be presiding, may move, second and debate from the chair, subject only to such limitations of debate as are by these rules imposed upon all members. The Chairperson shall not be deprived of any of the rights and privileges of a Commission member by acting as the Presiding Officer. (a) Getting the floor. Every member desiring to speak shall address the chair, and, upon recognition by the Presiding Officer, shall address only the question under debate, avoiding all personalities and indecorous language.
(b) Interruptions. A member once recognized, shall not be interrupted when speaking other than by the Presiding Officer to call the member to order, or as herein otherwise provided. If a member, while speaking, be called to order, the member shall cease speaking until the question of order be determined, and, if in order, the member shall be permitted to proceed. (c) Privilege of closing debate. The Commission member moving the adoption of a resolution or motion shall have the privilege of closing the debate.
#3..
- 25 -
City of Modesto Planning Commission Page 8
Rules and Regulations
August 23, 2016
(d) Remarks of Commission member. A Commission member may request through the Presiding Officer, the privilege of having an abstract of the member’s statement on any subject under consideration by the Commission entered in the minutes. If the Commission consents thereto, such statement shall be entered in the minutes.
(e) Synopsis of debate. The Secretary may be directed by the Presiding Officer, with the consent of the Commission, to enter in the minutes a synopsis of the discussion on any question coming regularly before the Commission.

Section 9.3 Rules for Processing of Motions.
(a) Making and withdrawing motions. When a motion is made, it shall be stated clearly and concisely by its mover. After a motion is made, it may be stated by the Presiding Officer before debate. A motion may be withdrawn by the mover without the consent of the remaining Commission members.
(b) Divisible propositions. If the question contains two (2) or more divisible propositions, the Presiding Officer may, and upon request of a Commission member shall, divide the same. (c) Precedence of motions. When a motion is before the Commission, no motion shall be entertained except (precedence in order indicating):
1) To adjourn.
2) To fix hour of adjournment.
3) To lay on the table.
4) For the previous question.
5) To postpone to a certain day.
6) To refer.
7) To amend.
8) To postpone indefinitely.
(d) Motion to adjourn. A motion to adjourn shall be in order any time except as follows:
1) When repeated without intervening business or discussion. 2) When made as an interruption of a member while speaking. 3) When the previous question has been ordered.
4) While a vote is being taken.

A motion to adjourn to “another time” is debatable only as to the time to which the meeting is adjourned.
(e) Motion to table. A motion to table or lay on the table is not debatable and shall preclude all amendments or debate of the subject under consideration. If the motion shall prevail, the matter may be “taken from the table” only by a successful motion to add it to the agenda at a subsequent meeting, to be discussed at the following regular meeting. (f) Motion for previous question. A motion for previous question shall close debate on the main motion and shall be undebatable. The statement by a Commission member “I call for the question” does not accomplish the same purpose. If a motion fails, debate is reopened, if motion passes, then vote shall be taken on the main motion. #3..
- 26 -
City of Modesto Planning Commission Page 9
Rules and Regulations
August 23, 2016
(g) Motion to amend. A motion to amend shall be in order and is debatable only as to the proposed amendment. A motion to amend an amendment shall not be in order. Amendments are to be voted first, then the main motion as amended.
(h) Motion to postpone. A motion to postpone indefinitely shall be fully debatable and if the same is adopted the principal motion shall be declared lost. A motion to postpone to a definite time shall be amendable and debatable as to propriety of postponement and time set. (i) Motion to refer. A motion to refer to staff or to a Commission committee shall not be debatable except for the propriety of referring.
(j) Motion to reconsider. A motion to reconsider any action taken by the Commission may be made only on the day such action was taken. It may be made either immediately during the same session, or at a recessed or adjourned session thereof. Such motion must be made by one of the prevailing side, but may be seconded by any member, and may be made at any time and shall be debatable. Nothing herein shall be construed to prevent a Commission member of the prevailing side from remaking the same motion at a subsequent meeting of the Commission. In such an event, the person desiring to remake the motion for reconsideration shall submit a written request for reconsideration to the Commission Secretary, who shall place the matter on the agenda for the next regular meeting of the Commission.

Section 9.4 Parliamentarian.

The Chairperson, acting with the advice of the City Attorney, shall decide all questions of interpretation of these rules and any other questions of a parliamentary nature which may arise at a Planning Commission meeting.

ARTICLE X. - METHOD OF ACTION
Section 10.1 Decisions.

All decisions of the Commission required by the provisions of the Zoning and Subdivision Regulations shall be by resolution. All other determinations of the Commission may be by motion, except when otherwise required by law.

ARTICLE XI. - COMMITTEES
Section 11.1 Special Committees.

There shall be such special committees as the Commission may establish from time to time. #3..
- 27 -
- 1 -
12/19/2023 4:00:00 PM
www.modestogov.com

MINUTES
City of Modesto

SPECIAL APPOINTMENTS COMMITTEE / COUNCIL

WORKSHOP
2001-40 Del Puerto Room.

Tenth Street Place, 1010 10th Street
Modesto, California
Tuesday, December 19, 2023 at 4:00 PM
Roll Call: Present: Committee Members Escutia-Braaton, Williams, Alternate Member Wright

Absent: Committee Member Ricci

PUBLIC COMMENTS IN PERSON
None.

NEW BUSINESS

1. Consider interviewing and recommending the appointment for one vacancy on the City of Modesto Planning Commission and the reappointment of Roger Shanks to the City of Modesto Planning Commission and forwarding to Council for approval. (Funding Source: Not Applicable)
 Motion to interview and recommend the appointment to fill one vacancy with a term expiring on December 31, 2027, for the City of Modesto Planning Commission and forwarding to Council for approval.
 Motion to reappoint for a second term to Roger Shanks expiring December 31, 2027, for the City of Modesto Planning Commission and forwarding to Council for approval.

CED; Jessica Hill, 209-577-5267, [email protected]
ACTION: (Wright/Williams; 3/0) Motion recommending the appointment of Rajmeet Grewa with a term expiring on December 31, 2027 to the City of Modesto Planning Commission and forwarding to Council for approval.
#3..
- 28 -
- 2 -
12/19/2023 4:00:00 PM
ACTION: (Wright/Williams; 3/0) Motion to reappoint for a second term Roger Shanks, expiring December 31, 2027, for the City of Modesto Planning Commission and forwarding to Council for approval.

Recessed 4:40 p.m.

Reconvened 4:46 p.m.

2. Consider recommending the reappointments of Chris Murphy, Pervez Khan and Angela Cangiamila, and the appointment of new members to fill two vacancies on the Visit Modesto Board of Directors for two-year terms from January 1, 2024 to December 31, 2025; and forwarding to Council for approval. (Funding Source: Not Applicable)
 Motion recommending the reappointments of Chris Murphy, Pervez Khan and Angela Cangiamila, and the appointment of new members to fill two vacancies on the Visit Modesto Board of Directors for two-year terms from January 1, 2024 to December 31, 2025; and forwarding to Council for approval.

PRN; Nathan Houx, 209-571-5526, [email protected]
ACTION: (Wright/Williams; 3/0) Motion recommending the reappointments of Chris Murphy, Pervez Khan and Angela Cangiamila, and the appointment of Helda Paules and Eric (Damon) Robbins to fill two vacancies on the Visit Modesto Board of Directors for two-year terms from January 1, 2024 to December 31, 2025; and forwarding to Council for approval.

ADJOURNMENT
This meeting adjourned at 5:02 p.m.

Attest: _________________________
Diane Nayares-Perez, City Clerk
#3..
- 29 -

CITY OF MODESTO

COUNCIL AGENDA REPORT
DATE OF MEETING:

January 23, 2024
January 4, 2024
TO: Mayor and City Council
THROUGH: Joseph P. Lopez, City Manager
FROM: Jessica Hill, Director of Community and Economic Development SUBJECT: Reappointment of Roger Shanks to the Planning Commission CONTACT: Jessica Hill, Director of Community and Economic Development [email protected]; 209-577-5267
DESCRIPTION:

Consider recommending the reappointment of Roger Shanks, to the Planning Commission for a four-year term with a term expiration of December 31, 2027. (Funding Source: Not Applicable) STRATEGIC PLAN ELEMENT:

This action supports the City’s Strategic Commitment, “Build Community trust in City Government through Responsive, Transparent and Efficient Service Delivery. Goal I. Promote Trust and Engagement between the Community and the City”.

BACKGROUND:

The Planning Commission is responsible for making decisions and recommendations regarding the development of the community. The Planning Commission has final authority regarding subdivision maps and parcel maps, certain zoning matters and development plans, and occasionally matters appealed either from the staff level or Board of Zoning Adjustment. The Planning Commission makes recommendations to the City Council regarding annexations, rezonings, Code amendments, and most General Plan-related matters. Seven (7) members are appointed by the City Council for a 4-year term, starting January 1st and ending December 31st.

Section 11021 of the Charter of the City of Modesto authorizes the City Council to appoint members to various Boards and Commissions with the recommendation of the City’s Appointments Committee.

DISCUSSION:

The Planning Commission consists of seven (7) qualified persons comprised of members appointed by the City Council, as prescribed in the Charter. 1 https://library.municode.com/ca/modesto/codes/code_of_ordinances?nodeId=CHTR_ARTXIAPBOCO_S1102APTE #4..
- 30 -
City Council, January 23, 2024
Reappointment of Rodger Shanks to the Planning Commission

Commissioner Roger Shanks was appointed to the Planning Commission for a term effective March 3, 2020, through December 31, 2023, by Council Resolution 2020-124. Commissioner Shanks has missed one (1) out of fifty (50) regularly scheduled commission meetings; all of which was approved absences.

Commissioner Shanks’ term has expired leaving a vacancy on the Planning Commission and a term to fill. Vacancies are to be filled by a prospective candidate, subject to interviews by the Appointments Committee, as required by Council policy, and final approval by the City Council.

Roger Shanks reapplied for the Planning Commission on November 8, 2023 and was interviewed by the Appointments Committee on December 19, 2023. Following the interview, Roger Shanks was recommended by the Appointments Committee to move forward to Council.

FISCAL IMPACT:

There is no fiscal impact related to this action.

COMMITTEE RECOMMENDATION:

This item was presented to the Appointments Committee on December 19, 2023, and was recommended to move forward to Council for approval.

RECOMMENDED COUNCIL ACTION:

Staff Recommendations
Resolution approving the reappointment of Roger Shanks to the Planning Commission for a second four-year term with a term expiration of December 31, 2027.

Approved by:

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

1. Resolution – Roger Shanks

2. Planning Commission By-Laws

3. Appointment Committee Minutes
#4..
- 31 -
01/23/24/CED/JHill/Item X 1 2024-XX

MODESTO CITY COUNCIL
RESOLUTION NO. 2024-

RESOLUTION APPROVING THE REAPPOINTMENT OF ROGER SHANKS

TO THE PLANNING COMMISSION FOR A SECOND FOUR-YEAR TERM
WITH A TERM EXPIRATION DECEMBER 31, 2027
WHEREAS, Section 1102 of the Charter of the City of Modesto authorizes the City Council to appoint members to various Boards and Commissions; and WHEREAS, Planning Commissioner Roger Shanks’ first term ended on December 31, 2023, leaving a vacancy on the City of Modesto Planning Commission; and
WHEREAS, the Appointments Committee met on December 19, 2023, and recommended the reappointment of Roger Shanks to the City of Modesto Planning Commission.

NOW, THEREFORE, BE IT HEREBY RESOLVED by the Council of the City of Modesto that it hereby reappoints for a second term Roger Shanks, expiring December 31, 2027, for the City of Modesto Planning Commission.

BE IT FURTHER RESOLVED, the City Clerk is hereby directed to transmit a copy of this resolution to the appointed member of the Modesto Planning Commission, and the Secretary thereof.
#4..
- 32 -
01/23/24/CED/JHill/Item X 2 2024-XX
The foregoing resolution was introduced at a regular meeting of the Council of the City of Modesto held on the 23rd of January 2024, 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
#4..
- 33 -
City of Modesto

PLANNING COMMISSION
Rules and Regulations
August 2016
#4..
- 34 -

TABLE OF CONTENTS
Description Page
Dates of Adoption/Amendments……………………………………………………………………………………………1 ARTICLE I. – ORGANIZATION
Section 1.1 – Establishment………………………………………………………………………………………….. 2 ARTICLE II. – POWERS AND DUTIES
Section 2.1 – Enumerated…………………………………………………………………………………………….. 2 ARTICLE III. - MEETINGS
Section 3.1 – Regular Meetings……………………………………………………………………………………… 2 Section 3.2 – Special Meetings………………………………………………………………………………………. 3 Section 3.3 – Notice of Meetings……………………………………………………………………………………. 3 Section 3.4 – Place of Meetings……………………………………………………………………………………… 3 Section 3.5 – Quorum…………………………………………………………………………………………………… 3 Section 3.6 – Meetings to be Public… ……………………………………………………………………………. 3 Section 3.7 – Seating and Roll Call Vote…………………………………………………………………………. 3 Section 3.8 – Attendance………………………………………………………………………………………………. 3 Section 3.9 – Agenda and Reports…………………………………………………………………………………. 4 Section 3.10 – Field Trips…............................................................................................... 4 Section 3.11 – Reading of the Minutes…………………………………………………………………………….4 Section 3.12 – Order of Business (Agendas)……………………………………………………………………. 4 ARTICLE IV. – PUBLIC HEARINGS
Section 4.1 – Public hearing Procedures…………………………………………………………………………. 4 ARTICLE V. – PLANNING COMMISSION ORGANIZATION
Section 5.1 – Membership……………………………………………………………………………………………. 6 Section 5.2 – Term………………………………………………………………………………………………………. 6 Section 5.3 – Appointment process………………………………………………………………………………. 6 ARTICLE VI. – ELECTION OF OFFICERS/TERMS OF OFFICE
Section 6.1 – Election of Officers…………………………………………………………………………………… 6 Section 6.2 – Terms of Office………………………………………………………………………………………. 6 ARTICLE VII. – OFFICERS
Section 7.1 – Enumerated…………………………………………………………………………………………….….… 7 Section 7.2 – Election of Officers…………………………………………………………………………………………. 7 ARTICLE VIII. – PROCEDURES, POWERS, DUTIES, AND STAFF
Section 8.1 – Designated………………………………………………………………………………………………. 7 Section 8.2 – Secretary of the Commission……………………………………………………………………. 7 Section 8.3 – Recording Secretary…………………………………………………………………………………. 7 ARTICLE IX. – PARLIAMENTARY PROCEDURE
Section 9.1 – Rules of Order…………………………………………………………………………………………. 7 Section 9.2 – Rules of Debate……………………………………………………………………………………….. 7 Section 9.3 – Rules for Processing of Motions…………………………………………………………………. 8 Section 9.4 – Parliamentarian……………………………………………………………………………………….. 9 ARTICLE X. – METHOD OF ACTION
Section 10.1 – Decisions……………………………………………………………………………………………….. 9 ARTICLE XI. – COMMITTEES
Section 11.1 – Special Committees………………………………………………………………………………… 9 #4..
- 35 -
City of Modesto Planning Commission Page 1
Rules and Regulations
August 23, 2016
Adopted: February 5, 1957
Amended: October 7, 1958,
November 18, 1958
October 3, 1961
December 15, 1964
March 18, 1975
December 5, 1978
April 2, 1979
September 2, 1979
May 4, 1981
September 20, 1982
March 21, 1983
January 20, 1987
December 19, 1988
April 16, 1990
April 21, 1997
August 16, 1999
April 19, 2004
June 7, 2010
#4..
- 36 -
City of Modesto Planning Commission Page 2
Rules and Regulations
August 23, 2016
ARTICLE I. ORGANIZATION
Section 1.1 Establishment
The Planning Commission of the City of Modesto, hereafter called “The Commission”, is established pursuant to the provisions of Chapter 1 of Title X of the Modesto Municipal Code.

ARTICLE II. POWERS AND DUTIES
Section 2.1 Enumerated.

The Commission shall have the following powers and duties:
(a) Perform all of the functions assigned to a City Planning Commission by the statutes of the State Law relating to planning and zoning, insofar as they are not in consistent with the provisions of the Charter of the City of Modesto.
(b) Prepare and recommend the adoption, amendment, or repeal of a General Plan. (c) Advise and recommend to the proper officials of the City the approval, disapproval or modification of all land subdivision in accordance with the Subdivision Map Act of the State of California, or as may be provided by the Municipal Code of the City of Modesto. (d) Hold hearings on planning and zoning matters as prescribed by the Modesto Municipal Code, or State law.
(d) Review and recommend to the City Council a capital improvements program budget. (e) Advise and recommend to the proper officials of the City regarding the acquisition, use, or disposition of all City-owned property.
(f) Advise and recommend to the Council on matters required by law or referred by the City Council.

ARTICLE III. MEETINGS
Section 3.1 Regular Meetings.

Prior to the first meeting of the coming year, a calendar of meetings shall be approved by the Planning Commission. The calendar adopted by the Planning Commission shall constitute the Schedule of Meetings. In preparing the calendar of meetings, the following shall serve as guidelines:
(a) Regular meetings of the Commission shall be open to the public and shall be held at 6:00 p.m. on the first and third Monday of each calendar month.
(b) If a regular meeting date falls on a legal holiday the meeting shall be held on the previous or following Monday.
(c) If all members are absent from any regular or adjourned meeting, the Secretary may declare the meeting adjourned to a stated time and place. If the Secretary does so, the Secretary shall cause written notice of the adjournment to be given in the same manner provided for special meetings. Whenever a regular or adjourned regular meeting is adjourned as provided in this #4..
- 37 -
City of Modesto Planning Commission Page 3
Rules and Regulations
August 23, 2016
section, the resulting adjourned regular meeting is a regular meeting for all purposes. When an order of adjournment of any meeting fails to state the hour at which the adjourned meeting shall be held, it shall be held at the hour specified for the regular meeting which was adjourned.
(d) In preparing the calendar, a two-to-three-week interval between meetings shall be maintained, where possible.

Section 3.2 Special Meetings.

Special Meetings of the Commission shall be open to the public and shall be held at such time as the Commission may determine, or they may be called by the Chairperson any time where an emergency situation warrants such a meeting.

Section 3.3 Noticing of Meetings.

Noticing of all meetings shall be in conformance with State Planning Law and the Modesto Municipal Code.

Section 3.4 Place of Meetings.

All meetings shall be held in the official Council Chamber of the City of Modesto or in such other location of the City as may be designated by the Planning Commission or the Secretary thereto.

Section 3.5 Quorum.

A majority of the members of the Commission shall constitute a quorum for the transaction of business.

Section 3.6 Meetings to be Public.

All meetings of the Commission shall be open to the public.

Section 3.7 Seating and Roll Call Vote.

The Commission shall be seated in alphabetical order. A roll call vote shall be taken upon the passage of all resolutions and be entered upon the journal of the proceedings of the Commission. Upon the request of any member, a roll call vote shall be taken and recorded on any vote. Whenever a roll call vote of the Commission is in order, the names of the members shall be called in the order seated, provided that the name of the presiding officer shall be called last. All members shall be required to vote. The affirmative or negative vote of a majority of the entire membership of the Commission shall be necessary for it to take action.

Section 3.8 Attendance.

Regular attendance at all meetings of the Commission is required of all members to enable the Commission to discharge the duties imposed upon it by law. If a member is absent from three (3) regular meetings of the Commission consecutively, without securing the permission of the Commission expressed in its official minutes, the member shall be deemed to have resigned from the Commission, and the member’s office shall become vacant.

Section 3.9 Agenda and Reports.

In order to facilitate the orderly conduct of the business of the Commission, the Secretary shall prepare and agenda of the matters to be considered by the Commission at its next meeting together #4..
- 38 -
City of Modesto Planning Commission Page 4
Rules and Regulations
August 23, 2016
with a report outlining all known facts in each case to be considered by the Commission, with such analysis as is necessary, including recommended action when appropriate. The agenda and all reports shall be delivered or mailed to each member of the Commission, the City Manager, and the City Attorney prior to the Commission meeting at which they are to be considered, as far as possible in advance of the meeting as time for preparation will permit. Matters not included on the agenda will not be acted upon by the Commission unless (a) a majority of the Commission determine that an emergency situation exists, or (b) the Commission, by a two-thirds vote, or if less than two-thirds of the members are present by a unanimous vote, determines that the need to take action arise subsequent to the agenda for the meeting being posted, or (c) the item was on a properly posted agenda for a prior meeting of the Commission occurring not more than five (5) days prior to the meeting at which the action is taken.

Section 3.10 Field Trips.

In cases where a view of the premises will assist the Commission in making a decision, a field trip may be arranged by City planning staff prior to the meeting.

Section 3.11 Reading of the Minutes.

Unless the reading of the minutes of a previous Commission meeting is requested by a member of the Commission, such minutes may be approved without reading if the Secretary has previously furnished each member of the Commission with a copy thereof.

Section 3.12 Order of Business (Agendas).

Order of business at any regular meeting shall be as follows:
a. Roll Call
b. Approval of Minutes
c. Consent and Joint Public Hearing Items
d. Public Hearings
e. Other Business
f. Oral Communications
g. Matters too Late for the Agenda
h. Adjournment
ARTICLE IV. PUBLIC HEARINGS
Section 4.1 Public Hearing Procedures.

The following rules shall govern the conduct of public hearings:
(a) The Chairperson opens the public hearing and calls for a presentation by staff. (b) At the opening of the hearing, staff describes the item under consideration and presents staff report and recommendation.
(c) The Planning Commission may ask questions of staff through the Chair. (d) At the conclusion of the presentation by staff, applicant (or proponents) is given first opportunity to speak and/or make a presentation, of any materials, exhibits, documents or other physical evidence.
#4..
- 39 -
City of Modesto Planning Commission Page 5
Rules and Regulations
August 23, 2016
(e) For appeals, the Appelant’s presentation would precede the Applicant’s. (f) At the conclusion of the presentation by the applicant or proponents, any persons who oppose the application may make a presentation, and present any materials, exhibits, documents or other physical evidence.
(g) All exhibits, documents or other physical evidence used by applicant or other interested parties during the hearings, will be introduced into evidence and will become part of the record and retained by the Secretary until the decision becomes final. (h) Members of the public wishing to speak on an item shall not be required to be sworn. Each speaker will be required to approach the microphone and give their full name and address for the record before testifying.
(i) The Planning Commission may ask questions of the speaker, through the Chair. (j) The reading of details of letters and petitions by the persons submitting them may be permitted provided the material is not overly lengthy. Speakers will be asked to summarize written material. Such documents may be filed with the Secretary and the Secretary shall mark them as having been received for the limited purpose of showing the names of the persons protesting or supporting the application.
(k) While it is desirable in a democratic process to permit every person an unlimited right to speak, such a right unduly prolongs a public hearing and clouds the basic issue if the evidence presented is merely repetitious. Therefore, whenever necessary, the Chairperson may state that repetitious evidence is to be avoided. Similarly, testimony and evidence which is incompetent, irrelevant or immaterial may be foreclosed by the Chairperson. If such improper evidence is received, it shall not be considered by the Commission in reaching its decision. (l) The Commission may establish special rules for individual items of business, establishing time limits for presentations and requiring presentations to be made through spokespersons, if possible.
(m) After those in favor or opposed to an application have been heard, the Chairperson will ask for the recommendation of staff and the reasons for such recommendation. After such recommendation, both the applicant and opponent, if any, shall be given a limited amount of time to summarize their position or respond to the recommendation, after which the Chairperson shall close the public portion of the hearing. (n) The Commission should discuss the issues involved and make its decision only after hearing the evidence presented at the public hearing. Discussion of the matter by members of the Commission concurrently with or immediately following the staff’s factual report and before the public has an opportunity to present its point of view may influence the Commission action. Therefore, except for questions by the Commission to obtain or clarify the facts, discussion of the matter by Commission members should be delayed until after the public hearing is closed and the matter is presented to the Commission for discussion and decision. (o) The Commission may conduct a field trip to view the property involved in the public hearing. All field trips shall be taken as part of a regular, adjourned regular or special meeting of the Commission and all interested persons will be afforded the opportunity to be present to hear any reports or comments. A complete record of such field trip will be entered into the minutes so the record will indicate that the field trip was taken into consideration as evidence. If a Commissioner has personal knowledge of the property area, the Commissioner should make a #4..
- 40 -
City of Modesto Planning Commission Page 6
Rules and Regulations
August 23, 2016
statement to that effect at the time of the hearing so the record will reflect everything being taken into consideration in making the final decision.
(p) Commissioners are responsible for ensuring that the public hearing is conducted in a fair and impartial manner. If a Commissioner receives personal contact or telephone calls outside of the public hearing which concerns a matter pending before or of interest to the Planning Commission, he or she shall disclose the substance and nature of the contact or call at the public hearing. If written materials are presented to the Commission by an applicant or member of the public, a copy must be made available for public review by filing the materials with the Secretary at least three (3) days in advance of the meeting at which the item or matter is scheduled to be considered or at the time the materials are provided to any Commissioner, whichever is earliest.
(q) Summary of Procedure for Conduct of Public Hearings by the Modesto City Planning Commission:
1) Opening of public hearing.
2) Staff Report and (optional) recommendation.
3) Applicant’s presentation.
4) Opposition presentation.
5) Staff recommendation.
6) Summation by applicant and opposition.
7) Close of public portion of hearing.
8) Discussion and decision by Commission.

ARTICLE V - PLANNING COMMISSION ORGANIZATION
Section 5.1 Membership.

The Planning Commission shall consist of seven members.

Section 5.2 Term.

The term of the Planning Commissioners shall be set by the City Council by resolution.

Section 5.3 Appointment Process.

The City Council shall appoint all members of the Planning Commission pursuant to applicable provisions of the Municipal Code.

ARTICLE VI - ELECTION OF OFFICERS/TERMS OF OFFICE
Section 6.1 Election of Officers.

As soon as practical following the first day of January of each year, the Commission shall elect a Chairperson and Vice Chairperson.

Section 6.2 Terms of Office.

The Chairperson and Vice-Chairperson shall hold offices for one (1) year.

ARTICLE VII. - OFFICERS
Section 7.1 Enumerated.

The officers of the Commission shall be:
#4..
- 41 -
City of Modesto Planning Commission Page 7
Rules and Regulations
August 23, 2016
A Chairperson, whose duties shall be to preside at all meetings and call special meetings; and A Vice Chairperson, who shall, in the absence of the Chairperson, perform the duties of the Chairperson.

ARTICLE VIII. - PROCEDURES, POWERS, DUTIES, AND STAFF
Section 8.1 Designated.

The provisions of the Municipal Code of the City of Modesto pertaining to procedures, powers, duties, and staff shall prevail.

Section 8.2 Secretary of the Commission.

The Director of the Community & Economic Development Department or his/her designee shall serve as Secretary to the Commission. The Secretary shall keep a written record of all business transacted by the Commission, notify Commission members of meetings, and keep the official records of the Commission. Upon the direction of the Commission, the Secretary shall perform such other secretarial duties as the Commission may require.

Section 8.3 Recording Secretary.

The recording secretary shall assist the Secretary of the Commission in fulfilling the responsibilities of administering to the needs of the Commission, including attending meetings to take audio recordings of the meetings, preparing minutes of all meetings, maintaining personnel records of the Commissioners and coordinating meeting schedules.

ARTICLE IX. - PARLIAMENTARY PROCEDURE
Section 9.1 Rules of Order.

Except as otherwise provided in these rules and regulations, all meetings of the Commission shall be conducted in accordance with the following rules and procedures.

Section 9.2 Rules of Debate.

The Chairperson, or such other member of the Planning Commission as may be presiding, may move, second and debate from the chair, subject only to such limitations of debate as are by these rules imposed upon all members. The Chairperson shall not be deprived of any of the rights and privileges of a Commission member by acting as the Presiding Officer. (a) Getting the floor. Every member desiring to speak shall address the chair, and, upon recognition by the Presiding Officer, shall address only the question under debate, avoiding all personalities and indecorous language.
(b) Interruptions. A member once recognized, shall not be interrupted when speaking other than by the Presiding Officer to call the member to order, or as herein otherwise provided. If a member, while speaking, be called to order, the member shall cease speaking until the question of order be determined, and, if in order, the member shall be permitted to proceed. (c) Privilege of closing debate. The Commission member moving the adoption of a resolution or motion shall have the privilege of closing the debate.
#4..
- 42 -
City of Modesto Planning Commission Page 8
Rules and Regulations
August 23, 2016
(d) Remarks of Commission member. A Commission member may request through the Presiding Officer, the privilege of having an abstract of the member’s statement on any subject under consideration by the Commission entered in the minutes. If the Commission consents thereto, such statement shall be entered in the minutes.
(e) Synopsis of debate. The Secretary may be directed by the Presiding Officer, with the consent of the Commission, to enter in the minutes a synopsis of the discussion on any question coming regularly before the Commission.

Section 9.3 Rules for Processing of Motions.
(a) Making and withdrawing motions. When a motion is made, it shall be stated clearly and concisely by its mover. After a motion is made, it may be stated by the Presiding Officer before debate. A motion may be withdrawn by the mover without the consent of the remaining Commission members.
(b) Divisible propositions. If the question contains two (2) or more divisible propositions, the Presiding Officer may, and upon request of a Commission member shall, divide the same. (c) Precedence of motions. When a motion is before the Commission, no motion shall be entertained except (precedence in order indicating):
1) To adjourn.
2) To fix hour of adjournment.
3) To lay on the table.
4) For the previous question.
5) To postpone to a certain day.
6) To refer.
7) To amend.
8) To postpone indefinitely.
(d) Motion to adjourn. A motion to adjourn shall be in order any time except as follows:
1) When repeated without intervening business or discussion. 2) When made as an interruption of a member while speaking. 3) When the previous question has been ordered.
4) While a vote is being taken.

A motion to adjourn to “another time” is debatable only as to the time to which the meeting is adjourned.
(e) Motion to table. A motion to table or lay on the table is not debatable and shall preclude all amendments or debate of the subject under consideration. If the motion shall prevail, the matter may be “taken from the table” only by a successful motion to add it to the agenda at a subsequent meeting, to be discussed at the following regular meeting. (f) Motion for previous question. A motion for previous question shall close debate on the main motion and shall be undebatable. The statement by a Commission member “I call for the question” does not accomplish the same purpose. If a motion fails, debate is reopened, if motion passes, then vote shall be taken on the main motion. #4..
- 43 -
City of Modesto Planning Commission Page 9
Rules and Regulations
August 23, 2016
(g) Motion to amend. A motion to amend shall be in order and is debatable only as to the proposed amendment. A motion to amend an amendment shall not be in order. Amendments are to be voted first, then the main motion as amended.
(h) Motion to postpone. A motion to postpone indefinitely shall be fully debatable and if the same is adopted the principal motion shall be declared lost. A motion to postpone to a definite time shall be amendable and debatable as to propriety of postponement and time set. (i) Motion to refer. A motion to refer to staff or to a Commission committee shall not be debatable except for the propriety of referring.
(j) Motion to reconsider. A motion to reconsider any action taken by the Commission may be made only on the day such action was taken. It may be made either immediately during the same session, or at a recessed or adjourned session thereof. Such motion must be made by one of the prevailing side, but may be seconded by any member, and may be made at any time and shall be debatable. Nothing herein shall be construed to prevent a Commission member of the prevailing side from remaking the same motion at a subsequent meeting of the Commission. In such an event, the person desiring to remake the motion for reconsideration shall submit a written request for reconsideration to the Commission Secretary, who shall place the matter on the agenda for the next regular meeting of the Commission.

Section 9.4 Parliamentarian.

The Chairperson, acting with the advice of the City Attorney, shall decide all questions of interpretation of these rules and any other questions of a parliamentary nature which may arise at a Planning Commission meeting.

ARTICLE X. - METHOD OF ACTION
Section 10.1 Decisions.

All decisions of the Commission required by the provisions of the Zoning and Subdivision Regulations shall be by resolution. All other determinations of the Commission may be by motion, except when otherwise required by law.

ARTICLE XI. - COMMITTEES
Section 11.1 Special Committees.

There shall be such special committees as the Commission may establish from time to time. #4..
- 44 -
- 1 -
12/19/2023 4:00:00 PM
www.modestogov.com

MINUTES
City of Modesto

SPECIAL APPOINTMENTS COMMITTEE / COUNCIL

WORKSHOP
2001-40 Del Puerto Room.

Tenth Street Place, 1010 10th Street
Modesto, California
Tuesday, December 19, 2023 at 4:00 PM
Roll Call: Present: Committee Members Escutia-Braaton, Williams, Alternate Member Wright

Absent: Committee Member Ricci

PUBLIC COMMENTS IN PERSON
None.

NEW BUSINESS

1. Consider interviewing and recommending the appointment for one vacancy on the City of Modesto Planning Commission and the reappointment of Roger Shanks to the City of Modesto Planning Commission and forwarding to Council for approval. (Funding Source: Not Applicable)
 Motion to interview and recommend the appointment to fill one vacancy with a term expiring on December 31, 2027, for the City of Modesto Planning Commission and forwarding to Council for approval.
 Motion to reappoint for a second term to Roger Shanks expiring December 31, 2027, for the City of Modesto Planning Commission and forwarding to Council for approval.

CED; Jessica Hill, 209-577-5267, [email protected]
ACTION: (Wright/Williams; 3/0) Motion recommending the appointment of Rajmeet Grewa with a term expiring on December 31, 2027 to the City of Modesto Planning Commission and forwarding to Council for approval.
#4..
- 45 -
- 2 -
12/19/2023 4:00:00 PM
ACTION: (Wright/Williams; 3/0) Motion to reappoint for a second term Roger Shanks, expiring December 31, 2027, for the City of Modesto Planning Commission and forwarding to Council for approval.

Recessed 4:40 p.m.

Reconvened 4:46 p.m.

2. Consider recommending the reappointments of Chris Murphy, Pervez Khan and Angela Cangiamila, and the appointment of new members to fill two vacancies on the Visit Modesto Board of Directors for two-year terms from January 1, 2024 to December 31, 2025; and forwarding to Council for approval. (Funding Source: Not Applicable)
 Motion recommending the reappointments of Chris Murphy, Pervez Khan and Angela Cangiamila, and the appointment of new members to fill two vacancies on the Visit Modesto Board of Directors for two-year terms from January 1, 2024 to December 31, 2025; and forwarding to Council for approval.

PRN; Nathan Houx, 209-571-5526, [email protected]
ACTION: (Wright/Williams; 3/0) Motion recommending the reappointments of Chris Murphy, Pervez Khan and Angela Cangiamila, and the appointment of Helda Paules and Eric (Damon) Robbins to fill two vacancies on the Visit Modesto Board of Directors for two-year terms from January 1, 2024 to December 31, 2025; and forwarding to Council for approval.

ADJOURNMENT
This meeting adjourned at 5:02 p.m.

Attest: _________________________
Diane Nayares-Perez, City Clerk
#4..
- 46 -
- 1 -
1/9/2024 5:30:00 PM

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, January 09, 2024 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: Sandy Gunnarson, City Ministry Network
City Clerk’s Announcements: None
Declaration of Conflicts of Interest: None
Reports from Closed Session: City Attorney Sanchez stated there was no reportable action.

ACKNOWLEDGEMENTS AND PRESENTATIONS

1. Presentations of the Certificate of Achievement for Excellence in Financial Reporting and Popular Annual Financial Reporting Award by Government Finance Officers Association (GFOA) for Fiscal Year ending June 30, 2022, and Presentation for the Distinguished Budget Presentation Award by GFOA for Fiscal Year 2023-2024 Budget. (Funding Source: Not Applicable)
FINANCE; DeAnna Christensen, 209-577-5387, [email protected] #5..
- 47 -
- 2 -
1/9/2024 5:30:00 PM
ACTION: City Manager Lopez presented the Certificate of Achievement for Excellence in Financial Reporting and Popular Annual Financial Reporting Award by Government Finance Officers Association (GFOA) for Fiscal Year ending June 30, 2022, and Presentation for the Distinguished Budget Presentation Award by GFOA for Fiscal Year 2023-2024 Budget.

PUBLIC COMMENT IN PERSON
 Samuel Wigt stated he wanted to acknowledge the dedication of individuals to the country. He raised concerns about the state of new buildings in North Modesto and their impact on roads and infrastructure. He highlighted issues in South Modesto, including gunshots, burnouts, and lack of sidewalks and urged accountability for companies like Gallo in addressing housing needs for various demographics. He also questioned the presence of bio labs in Modesto and suggested inquiry into CDC bio labs in Fresno.  Danielle Morgan, Assembly Member Juan Alaniz's Representative provided a legislative update for the new year. She discussed Assembly Member Alaniz's committee appointments, emphasizing his roles in Agriculture, Public Safety, Business, and more.

She also encouraged the Council and the public to reach out if any assistance is needed from the Assembly Member.
 Daphane Zuniga a member of the Park Youth Committee, invited the Council, City staff, and the public to a community presentation on January 29th regarding the Park Equity Project. She mentioned the diverse committee of high school students working on the project and extended gratitude for the City Councilmembers who RSVP'd for the presentation.
 Steve expressed dissatisfaction with previous interactions and perceived threats made against him. Addressed the personnel matter involving Joseph Lamantia and questioned the Council's transparency. He requested accountability and action from the Council regarding Lamantia's potential reinstatement.
 William Russell posed a specific question to the Council about actions they would take if a judge orders Joseph Lamantia's reinstatement. He requested concrete and specific plans from the Council to prevent Lamantia from being rehired and urged the Council to address the matter with gravity and seriousness.
 Giancarlo expressed concern over the possible reinstatement of Joseph Lamantia. He presented demands for public safety, including preventing Lamantia's reinstatement and involving Trevor Seever's mom in any hearings. He questioned the Council's ability to ensure public trust in the police force.
 Ramon Rodriguez discussed a video involving the police targeting a hot dog vendor, expressing concern over the allocation of resources. He reiterated concerns about Joseph Lamantia's potential return to the police force. He also spoke about the comments of a neo-Nazi at a previous meeting. without condemnation.
#5..
- 48 -
- 3 -
1/9/2024 5:30:00 PM
 Gavin Bruce expressed disappointment at the removal of the option to submit public comments via Zoom. He raised concerns over former officer Joseph Lamantia's potential reinstatement, emphasizing public safety and the community's faith in the police force.

CONSENT ITEMS – ROLL CALL VOTE REQUIRED
ACTION CONSENT ITEMS 2-8: (Wright/Escutia-Braaton; 7/0)

CONSENT
Consent

2. Consider approving the minutes for the December 12, 2023 Council Meeting. (Funding Source: Not Applicable)
 Motion approving the minutes for the December 12, 2023 Council Meeting.

CITY CLERK; Diane Nayares-Perez, 209-577-5396, [email protected] ACTION: (Wright/Escutia-Braaton; 7/0) Motion approving the minutes for the December 12, 2023 Council Meeting.

Consent

3. Consider approving the recommended Budget Adjustments to Fiscal Year 2023-24 Annual Operating and Capital Improvement Program Budgets. (Funding Source:

Various Funds)
 Resolution amending Fiscal Year 2023-24 Annual Operating and Capital Improvement Project Fund Budgets and authorizing the City Manager to take the necessary steps to implement the provisions of this Resolution.

BUDGET; Steve Christensen, 209-577-5390, [email protected] ACTION: (Wright/Escutia-Braaton; 7/0) Resolution 2024-001 amending Fiscal Year 2023-24 Annual Operating and Capital Improvement Project Fund Budgets and authorizing the City Manager to take the necessary steps to implement the provisions of this Resolution.

Consent

4. Consider approving a Professional Services Agreement with The Natelson Dale Group for Economic Development Strategic Planning, for a total amount not to exceed $144,875. (Funding Source: General Fund)
 Resolution approving the Award of a Professional Services Agreement for Economic Development Strategic Planning Services to The Natelson Dale Group, Yorba Linda, California, for a one year Agreement for an amount not to exceed $144,875, and authorizing the City Manager, or his designee, to execute the Agreement.

CED; Trevin Barber, 209-571-5566, [email protected] ACTION: (Wright/Escutia-Braaton; 7/0) Resolution 2024-002 approving the Award of a Professional Services Agreement for Economic Development Strategic #5..
- 49 -
- 4 -
1/9/2024 5:30:00 PM
Planning Services to The Natelson Dale Group, Yorba Linda, California, for a one year Agreement for an amount not to exceed $144,875, and authorizing the City Manager, or his designee, to execute the Agreement
Consent

5. Consider accepting the Carpenter Road Landfill Mitigation Phase 1 Project as complete, releasing securities, releasing payments totaling $6,959,100 to Pacific States Environmental Contractors, Inc., of Dublin, CA, and authorizing the City Clerk to file a Notice of Completion. (Funding Source: Carpenter Road Landfill Fund, Water Fund Reserves)
 Resolution accepting the Carpenter Road Landfill Mitigation Phase 1 Project as complete, releasing securities, releasing payments totaling $6,959,100 to Pacific States Environmental Contractors, Inc., of Dublin. CA., and authorizing the City Clerk to file a Notice of Completion.

ENGINEERING SERVICES; Peter Kambel, 209-577-5444, [email protected] ACTION: (Wright/Escutia-Braaton; 7/0) Resolution 2024-003 accepting the Carpenter Road Landfill Mitigation Phase 1 Project as complete, releasing securities, releasing payments totaling $6,959,100 to Pacific States Environmental Contractors, Inc., of Dublin. CA., and authorizing the City Clerk to file a Notice of Completion.

Consent

6. Consider accepting an Informational Report for the October 2023 Accounts Payable Payment Register and Void Report. (Funding Source: Not Applicable)  Motion accepting an Informational Report for the October 2023 Accounts Payable Payment Register and Void Report.

FINANCE DEPARTMENT; Maria Garnica, 209-577-5249,
[email protected]
ACTION: (Wright/Escutia-Braaton; 7/0) Motion accepting an Informational Report for the October 2023 Accounts Payable Payment Register and Void Report.

Consent

7. Consider accepting the Monthly Investment Report for October 2023. (Funding Source: Various Funds)
 Motion accepting the Monthly Investment Report for October 2023.

FINANCE DEPARTMENT; Calogero Maniscalco, 209-577-5219,
[email protected]
ACTION: (Wright/Escutia-Braaton; 7/0) Motion accepting the Monthly Investment Report for October 2023.

Consent

8. Consider approving an Engineering Services Agreement with NorthStar Engineering Group, of Modesto, CA, for the Bystrum Area Phase 1 – Strengthen and Replace Water Mains Project, in an amount not to exceed $366,432. (Funding Source: Water Fund) #5..
- 50 -
- 5 -
1/9/2024 5:30:00 PM
 Resolution approving an Engineering Services Agreement with NorthStar Engineering Group, of Modesto, CA, for the Bystrum Area Phase 1 - Strengthen and Replace Water Mains Project in the amount of $333,120, plus $33,312 in additional services, if needed, for a total amount not to exceed $366,432 and authorizing the City Manager, or his designee, to execute the Agreement.

UTILITIES; David Felix, 209-577-5488, [email protected] ACTION: (Wright/Escutia-Braaton; 7/0) Resolution 2024-004 approving an Engineering Services Agreement with NorthStar Engineering Group, of Modesto, CA, for the Bystrum Area Phase 1 - Strengthen and Replace Water Mains Project in the amount of $333,120, plus $33,312 in additional services, if needed, for a total amount not to exceed $366,432 and authorizing the City Manager, or his designee, to execute the Agreement.

COUNCIL COMMENTS & REPORTS
Council Member Bavaro expressed sadness over the passing of retired Battalion Chief Cecil Donald Ridge. He highlighting Cecil’s 32 years of service in the Modesto Fire Department.

Chief Ridge was a dedicated labor leader, played a crucial role in preserving firefighter jobs during the 2008 economic downturn.

Council Member Ricci summarized various accomplishments in 2023, including park improvements, lifting the cruising ban, acquiring a police airplane, and enhancing fireworks enforcement.

Council Member Williams extended condolences for Chief Ridge and wished everyone a Happy New Year. He also shared information about upcoming Martin Luther King events and expressed gratitude for Measure H's impact on addressing homelessness.

Council Member Escutia-Braaton highlighted financial awards for the City's departments, particularly praising the Community Development Division's recognition for the Downtown Streets team's work. She acknowledged the opening of the Modesto Day Center, emphasizing ongoing efforts to address homelessness.

Vice Mayor Alvarez celebrated wins in housing, park renovations, security measures, and road improvements in 2023. He also proposed a shift in handling code violations related to street vendors.

Council Member Williams recognized Jessica Hill with a "Rock Star Award" for her exceptional work in economic development, housing, and homelessness.

Mayor Zwahlen expressed appreciation for the community's support, commended city staff, and shared positive experiences, including Modesto on Ice and the Modesto Police Department ceremony.
#5..
- 51 -
- 6 -
1/9/2024 5:30:00 PM

CITY MANAGER COMMENTS & REPORTS
None.

NEW BUSINESS

9. Consider approving a Second Amendment to the City Clerk Employment Agreement with Diane Nayares-Perez, adjusting the compensation as a result of a positive performance evaluation. (Funding Source: General Fund)
 Resolution approving a Second Amendment to the Employment Agreement with Diane Nayares-Perez, to increase base salary to $153,545.60.

HR; Christina Alger, 209-571-5126, [email protected] ACTION: (Escutia-Braaton/Wright; 7/0) Resolution 2024-005 approving a Second Amendment to the Employment Agreement with Diane Nayares-Perez, to increase base salary to $153,545.60.

MATTERS TOO LATE FOR THE AGENDA
None.

ADJOURNMENT
The meeting adjourned at 6:27 pm.

All Closed Session Matters heard prior to the meeting.

CLOSED SESSION
CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION
Two Case (Pursuant to Section 54956.9(d)(1) of the Government Code) Name of Case: Oscar Nelson Ocana Duarte v. City of Modesto, et al.

Superior Court of California, County of Stanislaus
Case No.: CV-21-002436
Silvina Martinez v. City of Modesto
Superior Court of California, County of Stanislaus
Case No.: CV-19-006820
#5..
- 52 -
- 7 -
1/9/2024 5:30:00 PM

CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION
Two Cases (Pursuant to Section 54956.9(a) of the Government Code) Name of case(s): Matthew Ponce v. City of Modesto
California Workers Compensation Appeals Board
Nos. ADJ16177617, ADJ8125320 & ADJ7075154
Billy Bush v. City of Modesto
California Workers Compensation Appeals Board
Nos. Unassigned
Attest:____________________________
Diane Nayares-Perez, City Clerk
#5..
- 53 -

CITY OF MODESTO

COUNCIL AGENDA REPORT
DATE OF MEETING:

January 23, 2024
Date: December 28, 2023
TO: Mayor and City Council
THROUGH: Joseph P. Lopez, City Manager
FROM: Jose M. Sanchez, City Attorney
SUBJECT: First Amendment to the Legal Services Agreement with Swingle, Van Egmond & Heitlinger for Continued Representation
CONTACT: Jose M. Sanchez, City Attorney, 209-577-5284, [email protected] DESCRIPTION:

Consider approving a First Amendment to the Legal Services Agreement with Swingle, Van Egmond & Heitlinger for a revised total amount not to exceed $550,000 for representation in tort cases. (Funding Source: General Liability Insurance Fund) STRATEGIC PLAN ELEMENT:

This item supports the City’s 2020-2025 Strategic Plan Goals to build a high-performance organization and improve community safety.

BACKGROUND:

On June 24, 2014, by Resolution No. 2014-241, Council approved a Legal Services Agreement with Arata, Swingle, Van Egmond and Goodwin (“Arata”), a Modesto based law firm, for representation of the City in numerous tort liability cases, for a total agreement amount not to exceed $790,000, including amendments. On December 12, 2017, by Resolution No. 2017-500, Council approved a Restated Legal Services Agreement with Arata, for a total agreement amount not to exceed $650,000, including amendments.

Given the nature and number of tort liability cases, on January 28, 2020, by Resolution No. 2020-029, Council approved a Second Restated Legal Services Agreement, for a total agreement amount not to exceed $240,000. On March 9, 2021, by Resolution No. 2021-085, Council approved a First Amendment to Arata’s Legal Services Agreement, in the amount of $260,000 for a total agreement amount not to exceed $500,000 for continued services. On May 3, 2022, by Resolution No. 2022-201, Council approved a Second Amendment to Arata’s Legal Services Agreement, in the amount of $250,000 for a total agreement amount not to exceed $750,000 for continued services.

In March of 2023, the firm’s name changed to Swingle, Van Egmond & Heitlinger (“Swingle”) due to Mr. Arata’s retirement.
#6..
- 54 -
City Council, January 23, 2024
First Amendment to the Legal Services Agreement with Swingle, Van Egmond & Heitlinger for Continued Representation

On May 23, 2023, by Resolution No. 2023-231, Council approved a Legal Services Agreement with Swingle, Van Egmond & Heitlinger in an amount not to exceed $250,000 to continue representing the City in tort cases.

DISCUSSION:

Since entering into the original Legal Services Agreement, Swingle has concluded 117 cases, which include the majority of the City’s tort cases involving dangerous conditions, trip and falls, sidewalk issues, and trees related issues. Swingle continually maintains a steady case load of 20 to 30 small to moderate matters. Swingle’s rates have not increased from the original contract in 2014. In the last nine years and seven months, their billings for the City have averaged approximately $251,546 per year.

Swingle continues to prepare multiple cases for trial simultaneously, as well as handling a number of additional smaller cases. This agreement will provide a budget for continued representation for those cases and future assigned cases.

Modesto Municipal Code Section 8-3.203 generally requires all purchases which meet or exceed $100,000 for material, equipment, or contractual services to be formally bid. However, exceptions to the formal bidding process are granted in MMC 8-3.204(f) “Where the Purchasing Manager, in her discretion, determines that it is appropriate to amend the services or goods provided under the existing agreement to include additional similar goods or services, of limited quantity or scope, in order to increase efficiency and avoid delays or disruptions to City projects or services.

FISCAL IMPACT:

Costs associated Swingle, Van Egmond & Heitlinger under this Legal Services Agreement will be paid from the General Liability Fund, with a not to exceed amount of $550,000. The current 2023-24 General Liability Fund budget has sufficient funds available for this agreement.

COMMITTEE RECOMMENDATION:

This item was not presented to a committee.

RECOMMENDED COUNCIL ACTION:

Staff Recommendations:

Resolution approving a First Amendment to the Legal Services Agreement with Swingle, Van Egmond & Heitlinger increasing the Agreement amount by $300,000 from $250,000 for a revised total amount not to exceed $550,000 to continue representing the City of Modesto in tort cases, and authorizing the City Manager or his designee, to execute the Amendment.

Approved by:

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

1. Resolution
#6..
- 55 -
City Council, January 23, 2024
First Amendment to the Legal Services Agreement with Swingle, Van Egmond & Heitlinger for Continued Representation

2. First Amendment to Legal Services Agreement

3. Legal Services Agreement with Swingle, Van Egmond & Heitlinger Dated May 23, 2023 #6..
- 56 -
01/23/2024/CAO/JSanchez/Item X 1 2024-XX

MODESTO CITY COUNCIL
RESOLUTION NO. 2024-XX

RESOLUTION APPROVING A FIRST AMENDMENT TO THE LEGAL

SERVICES AGREEMENT WITH SWINGLE, VAN EGMOND & HEITLINGER INCREASING THE AGREEMENT AMOUNT BY $300,000 FROM $250,000 FOR A REVISED TOTAL AMOUNT NOT TO EXCEED $550,000 TO CONTINUE

REPRESENTING THE CITY OF MODESTO IN TORT CASES, AND

AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE, TO EXECUTE

THE AMENDMENT
WHEREAS, the City Attorney’s Office is in need of outside counsel services; and WHEREAS, on June 24, 2014, by Resolution No. 2014-241, Council approved an agreement with Arata, Swingle, Van Egmond & Goodwin, to represent the City in the following types of cases: tort, trip and fall, sidewalk, road and other similar cases for a total agreement amount not to exceed $790,000, including amendments; and WHEREAS, on December 12, 2017, by Resolution No. 2017-500, Council approved a Restated Legal Services Agreement with Arata, Swingle, Van Egmond & Goodwin for the same services, for a total agreement amount not to exceed $650,000, including amendments; and
WHEREAS, on January 28, 2020, by Resolution 2020-029, Council approved a Second Restated Legal Services Agreement with Arata, for a total amount of $750,000, including amendments, for continued representation for the same services; and WHEREAS, in March of this year, the firm’s name changed to Swingle, Van Egmond & Heitlinger (“Swingle”) due to Mr. Arata’s retirement; and WHEREAS, on May 23, 2023, by Resolution No. 2023-231, Council approved a Legal Services Agreement with Swingle, Van Egmond & Heitlinger in an amount not to exceed $250,000 to continue representing the City in tort cases; and #6..
- 57 -
01/23/2024/CAO/JSanchez/Item X 2 2024-XX
WHEREAS, Swingle continues to prepare multiple cases for trial simultaneously, as well as handling a number of additional smaller cases. This agreement will provide a budget for continued representation for those cases and future assigned cases; and WHEREAS, Modesto Municipal Code Section 8-3.203 generally requires all purchases which meet or exceed $100,000 for material, equipment, or contractual services to be formally bid. However, exceptions to the formal bidding process are granted in MMC 8-3.204(f) “Where the Purchasing Manager, in her discretion, determines that it is appropriate to amend the services or goods provided under the existing agreement to include additional similar goods or services, of limited quantity or scope, in order to increase efficiency and avoid delays or disruptions to City projects or services; and
WHEREAS, the City Attorney’s office has drafted a First Amendment to the Legal Services agreement with Swingle, Van Egmond and Heitlinger for continued representation.

NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Modesto that it hereby approves a First Amendment to the Legal Services Agreement with Swingle, Van Egmond & Heitlinger increasing the agreement amount by $300,000 from $250,000 for a revised total amount not to exceed $550,000 to continue representing the City of Modesto in tort cases, as provided in Exhibit A attached hereto and incorporated herein, and further authorizes the City Attorney to execute such agreement in a form substantially similar to Exhibit A.

BE IT FURTHER RESOLVED, that the City Manager or his designee, are hereby authorized to execute the Amendment, in a form approved by the City Attorney. #6..
- 58 -
01/23/2024/CAO/JSanchez/Item X 3 2024-XX
The foregoing resolution was introduced in a regular meeting of the Council of the City of Modesto held on the 23rd day of January 2024, 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
#6..
- 59 -

FIRST AMENDMENT TO LEGAL SERVICES AGREEMENT
This First Amendment to the Legal Services (this “First Amendment”), is made and entered into on 23rd day of January 2024 (“Effective Date”), by and between the CITY OF MODESTO, a California Municipal Corporation (“City”), and SWINGLE, VAN EGMOND & HEITLINGER, a Professional Corporation (“Attorney”), located at 1207 I Street, Modesto, California 95354. City and Attorney are hereinafter collectively referred to as the “Parties,” and singularly as “Party”.

RECITALS
WHEREAS, City and Attorney entered into a Legal Services Agreement (“Agreement”) to provide legal advice, representation and assistance to City in defense of tort claims as assigned; and
WHEREAS, Attorney is specially trained, experienced and competent to perform such services; and
WHEREAS, the public interest, economy and general welfare will be served by the Agreement; and
WHEREAS, City and Attorney desire to amend the Agreement for further service by increasing the previously approved amount of fees from $250,000 to $550,000.

NOW, THEREFORE, it is hereby agreed that the Legal Services Agreement between the City of Modesto and SWINGLE, VAN EGMOND & HEITLINGER dated May 23, 2023, is amended as follows:

1. Section 2(a) of Paragraph 2, “Fees and Costs,” is amended to state as follows:
“The total of all fees paid to Attorney for the performance of all services set forth in Section 1 (thereafter the “Service”), and for all authorized Reimbursable Expenses (as defined hereafter), shall not exceed a total sum of five hundred and fifty thousand dollars ($550,000).”

2. Entire Agreement. The parties to this First Amendment understand and agree that except as stated herein all terms and conditions of the original Agreement, dated May 23, 2023, remain in full force and effect to the extent they are not in conflict with this First Amendment. This document, including all exhibits, contain the entire amendment to the Agreement between the Parties and supersedes whatever oral or written understanding they may have had prior to the execution of this First Amendment. No alteration to the terms of this First Amendment shall be valid unless approved in writing by Attorney and by City, in accordance with applicable provision of the Modesto City Code.
#6..
- 60 -

3. Authority. The person signing this First Amendment for Attorney hereby represents and warrants that he/she is fully authorized to sign this First Amendment on behalf of Attorney and to bind Attorney to the performance of its obligations hereunder.

IN WITNESS WHEREOF, the Parties have executed this First Amendment as of the dates stated below.

CITY OF MODESTO,
A Municipal Corporation
By:

Print name: Joseph P. Lopez
Title: City Manager
APPROVED TO AS FORM:
_____________________________________
Jose M. Sanchez, City Attorney
ATTEST:
____________________________________
Diane Nayares-Perez, City Clerk
________________________________
Christina Alger, Director of Human Resources
[Signatures Continued on Next Page.]
#6..
- 61 -
ATTORNEY:

SWINGLE, VAN EGMOND & HEITLINGER
a Professional Corporation
____________________________________
Federal I.D. No.

State I.D. No.
___________________________________
City of Modesto Business Op. Tax Cert. No.

TYPE OF BUSINESS ENTITY (check one):
_____ Individual/Sole Proprietor
_____ Partnership
_____ Corporation
_____ Limited Liability Company
_____ Other (please specify: ______________)
______________________________________
Signature of Authorized Person
_________________________________
Title
______________________________________
Additional Signature (if required)
______________________________________
Title
#6..
- 62 -
Legal Services Agreement
City of Modesto and Swingle Van Egmond & Heitlinger
1 LEGAL SERVICES AGREEMENT
This Legal Services Agreement (this “Agreement”) is made and entered into on the 23 rd
day of May, 2023 (“Effective Date”), by and between the CITY OF MODESTO, a California Municipal Corporation (“City”), located at 1010 Tenth Street, Sixth Floor, Modesto, California 95353 and SWINGLE, VAN EGMOND & HEITLINGER, a Professional Corporation (“Attorney”), located at 1207 I Street, Modesto, California 95354. City and Attorney are hereinafter collectively referred to as the “Parties,” and singularly as a “Party.”

RECITALS
WHEREAS, City desires to continue Attorney’s services with respect to providing legal advice, representation and assistance to City in defense of tort claims as assigned; and WHEREAS, Attorney is specially trained, experienced and competent to perform such services; and
WHEREAS, the public interest, economy and general welfare will be served by this Agreement.

NOW, THEREFORE it is hereby agreed as follows:

1. Services.
a. Scope of Work: Subject to the terms and conditions set forth in this Agreement, Attorney shall provide to City the following services (“Services”):

Claims including litigation as assigned. Cases will include tort, trip and fall, sidewalk, road and other similar cases.

Attorney shall not be compensated for services outside the scope of work identified under this Section unless prior to the commencement of such services:
(i) Attorney notifies City and City agrees that such services are outside the scope of work under this Section; (ii) Attorney estimates the additional compensation required for these additional services; and (iii) City, after notice, approves in writing a Supplemental Agreement specifying the additional services and amount of compensation therefor.

Specific tasks including specific claims under the scope of work of this Agreement performed by Attorney will be assigned by City with written notice to Attorney. Within ten (10) days of receiving notice by City of a new task, Attorney shall provide City a budget for the requested task. Attorney must receive written approval by City of the proposed budget prior to commencement DocuSign Envelope ID: A993C6D9-969C-4164-91DF-88E608016EE6 #6..
- 63 -
Legal Services Agreement
City of Modesto and Swingle Van Egmond & Heitlinger
2 of task. Total compensation for all tasks under this Agreement shall not exceed the total compensation under Section 2 of this Agreement. b. Term: This Agreement shall become effective on the Effective Date and shall continue in effect until both Parties have fully performed their respective obligations under this Agreement unless sooner terminated as provided in Section

7. c. Partner in Charge: The partner in charge of the defense of City in assigned tort claims will be Bradley Swingle. Attorney will utilize experienced associate attorneys and paralegals under supervision of the partner in charge. The partner in charge will be the contact person for City and will make himself/herself reasonable available to respond to questions from the City Attorney or City staff.

2. Fees and Costs.
a. Hourly Rates:

Bradley J. Swingle $175.00/hour
Colleen F. Van Egmond $175.00/hour
Amanda Heitlinger $175.00/hour
The total of all fees paid to Attorney for the performance of all services set forth in Section 1 (hereafter the “Services”), and for all authorized Reimbursable Expenses (as defined hereafter), shall not exceed the total sum of two hundred fifty thousand dollars ($250,000).
b. Reimbursable Expenses. City shall reimburse Attorney for the actual, reasonable and necessary expense of travel out of the Modesto metropolitan area, approved in advance, at $0.65.5 per mile. Attorney will not charge City for the cost of telephone calls or photocopying. Litigation costs and expenses for statutory fees, witness fees, reporters’ per diem and stenographic transcriptions, jury fees, and the expenses of serving process shall be advanced by Attorney and reimbursed by City. Expert consultants and witnesses may be retained by Attorney on terms acceptable to City, approved in advance by email or letter by the City Representative (as defined hereafter), in which case City shall reimburse Attorney or pay such consultants or experts directly.

DocuSign Envelope ID: A993C6D9-969C-4164-91DF-88E608016EE6 #6..
- 64 -
Legal Services Agreement
City of Modesto and Swingle Van Egmond & Heitlinger
3 c. Billing:
i. Legal billings shall be submitted to City every thirty (30) days unless otherwise advised.
ii. Each task shall be distinctly and completely identified. In litigation matters, City will not pay invoices that contain block billing. Each billing entry must contain the initials of the individual performing the task, the nature of the task, the date it was performed, and the length of time it took.
iii. Costs under $1,000.00 shall be paid by Attorney and submitted with their normal billing.
iv. City reserves the right to audit all invoices.
v. Payments to Attorney shall be made within a reasonable time after receipt of Attorney’s invoice, generally within sixty (60) days of receipt. Attorney shall be responsible for supplying all documentation necessary to verify the monthly billings to the satisfaction of City.
vi. In addition to the provisions stated elsewhere in this Agreement regarding the payment of fees, billing and budgeting, the following guidelines for billing apply:
(1) City expects each individual working on the matter for which Attorney is retained to have the necessary experience to perform the services required to protect or pursue City’s interests in the matter in a cost effective manner, consistent with high professional and ethical standards.
(2) City expects Attorney to select the individual most suitable for the task required and the specific needs of the matter, and to use the maximum efficiencies available. Billings for services performed by the inappropriate level of personnel will be reduced by City based on rate adjustments for the appropriate level of personnel. (3) City will not pay for unnecessary review of texts, codes, rules of court, or other fundamental references. City will pay the hourly rate for specific legal research which is unique to the matter, assuming that Attorney has used maximum efficiencies and that Attorney has not already recently performed research in the same or very similar areas of law.

DocuSign Envelope ID: A993C6D9-969C-4164-91DF-88E608016EE6 #6..
- 65 -
Legal Services Agreement
City of Modesto and Swingle Van Egmond & Heitlinger
4 (4) City acknowledges the benefit of communications between attorneys in the firm. City does, however, expect that intra-office conferences will only be held as needed, and will be kept to a minimum. Intra-office conferences shall be for the purpose of discussing strategy and legal issues which directly further the matter. City will not pay for conferences which are supervisorial, instructional or administrative. Any invoice which lists an intraoffice conference that does not meet these guidelines must contain a full explanation and is subject to reduction by City. City will not pay for “team meetings” and City will scrutinize all intra-office conferences for “value added” to the matter by the conference, for the number of individuals attending the conference, the length of the conference, the subjects discussed at the conference and who participated in it, and will, in City’s sole discretion, determine if such value has been added.
(5) City will not pay for local telephone calls, incoming facsimiles, postage, time spent on filing, calendaring, indexing pleadings, photocopying, conferences with Clerks of court or court reporters, secretarial proofreading, re-drafting due to substandard work, or opening, organizing or closing files. City will not pay for time billed by summer interns, time for more than one individual to attend a trial, hearing, court appearance, arbitration, mediation, deposition, third party meeting, conference call or similar event, unless otherwise approved by City in advance.
(6) Vague billing which does not contain sufficient information to allow City’s reviewer of the invoice to determine the nature of the task, the reason for the task, and the individual performing the task is subject to reduction by City.
(7) City will not reimburse for overtime, word processing, supplies, anything identified on an invoice as “miscellaneous,” or any other unidentified charges.
d. Budget:
i. Within ten (10) days of the Effective Date, Attorney shall provide City with a proposed budget for the Services to be rendered pursuant to this Agreement. If Services involve tasks that have not yet been assigned by City, Attorney shall provide City with a proposed budget for all assigned new tasks with ten (10) days of receiving written notice from the City assigning Attorney the new task. Total compensation for all tasks under this Agreement shall not exceed the total compensation under Section 2 of DocuSign Envelope ID: A993C6D9-969C-4164-91DF-88E608016EE6 #6..
- 66 -
Legal Services Agreement
City of Modesto and Swingle Van Egmond & Heitlinger
5 this Agreement. The budget shall include all projected fees and costs to be incurred by Attorney and necessary for completion of the Services necessary to conclude the representation. The budget shall be a good faith estimate and shall be as complete and detailed as reasonably possible, including such items as discovery and motions for trial, preparation of documents for transactional services, and anticipated research and investigations. The proposed budget shall identify the projected total hours that will be billed to each task, and the individual that are anticipated to be performing the task. Any deviation from the budget in excess of fifteen percent (15%), must be approved in advance by the City Attorney or designee. Notwithstanding the foregoing, should it become reasonably apparent to Attorney that the actual billings will exceed Attorney’s initial estimate of anticipated legal costs and fees, Attorney shall immediately notify City thereof in advance and shall submit a revised written estimate for City’s approval.

3. Reporting.
a. Attorney shall provide City with a preliminary status report and evaluation within thirty (30) days of the Effective Date and the assignment of such task which report shall include an evaluation of the total exposure to the City, the liability risk, estimated cost to litigate or settle, and the particular attorneys who will be assigned. In this preliminary report, Attorney shall also make recommendations for discovery and any needed investigation, if any, and provide an estimate of total anticipated legal costs and fees for the handling of this matter. Thereafter, Attorney shall provide a status update to the City Representative, as defined in Section 4, every sixty (60) days on any matter under this Agreement. b. Attorney shall provide to City representative an electronic version of all agreements, pleadings, motions, and discovery documents filed or propounded by Attorney in a Microsoft Word format compatible with that used by the City Attorney’s office.
c. In the event that Attorney’s handling of the above-designated matter exceeds a period of twenty-four (24) months, Attorney shall, in addition to providing regular status reports to City, also report directly to the City representative on an annual basis and no later than March 30th of each year, setting forth in detail the status of the matter, and Attorney’s plan for further handling of the matter, and the estimated length of time to conclude the matter.

DocuSign Envelope ID: A993C6D9-969C-4164-91DF-88E608016EE6 #6..
- 67 -
Legal Services Agreement
City of Modesto and Swingle Van Egmond & Heitlinger
6 4. City Representative. The City Attorney, or the City Attorney’s designee, shall be the “City Representative” under this Agreement and shall administer this Agreement for City, including any payments hereunder. All Attorney questions pertaining to this Agreement shall be referred to the City Representative or the Representative’s designee.

5. Insurance Requirements. During the entire term of this Agreement, Attorney shall maintain the following insurance:
a. Minimum Scope of Insurance: Coverage should be at least as broad as:
i. Insurance Services Office Form No. CG 0001 (Commercial General Liability);
ii. Insurance Services Office Form No. CA 0001 (Ed. 1/87) (Automobile Liability, Code “any auto”);
iii. Workers’ Compensation as required by the Labor Code of the State of California, and Employers’ Liability Insurance:
iv. Professional Liability (Errors and Omissions) insurance against loss due to error, omission or malpractice.
b. Minimum Limits of Insurance: Attorney shall maintain limits no less than:
i. Commercial General Liability: $1,000,000 combined single limit per occurrence, including endorsements for contractual liabilities, broad form property damage and personal injury.
ii. Automobile Liability: $1,000,000 combined single limit per accident for personal injury and property damage arising from owned, hired and nonowned vehicles. iii. Workers’ Compensation and Employers’ Liability: Workers’ compensation limits as required by the Labor Code of the State of California and Employers’ Liability limits of $1,000,000 per accident. iv. Professional Liability (Errors and Omissions): $2,000,000 combined single limit per occurrence.
c. Deductibles and Self-Insured Retentions: Any deductibles or self-insured retentions must be declared to and approved by the City. d. Other Insurance Provisions: The policies are to contain, or be endorsed to contain, the following provisions:

DocuSign Envelope ID: A993C6D9-969C-4164-91DF-88E608016EE6 #6..
- 68 -
Legal Services Agreement
City of Modesto and Swingle Van Egmond & Heitlinger
7 i. General Liability and Automobile Liability Coverages:
(1) The General Liability and Automobile Liability policies shall be written on an occurrence form and shall name City, its officers, officials, agents, employees and volunteers as additional insureds.

Such policy(ies) of insurance shall be endorsed so that Attorney’s insurance shall be primary and any insurance or self-insurance maintained by City, its officials, employees or volunteers shall be in excess of Attorney’s insurance and shall not contribute with it. (2) Any failure to comply with reporting provisions of the policies shall not affect coverage provided to City, its officials, employees or volunteers.
(3) Coverage shall state that Attorney’s insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer’s liability. ii. All Coverages:
(1) Each insurance policy required by this Agreement shall be endorsed to state that coverages shall not be canceled except after thirty (30) days prior written notice has been given to City. In addition, Attorney agrees that it shall not reduce its coverage or limits on any such policy except after thirty (30) days prior written notice has been given to City and City approves the reduction in coverage or limits. Attorney further agrees that it shall not increase any deductibles or self-insured retentions on any such policy except after thirty (30) days prior written notice has been given to City and City approves such increase.
(2) In the event claims made forms are used for any Professional Liability coverage, either (i) the policy(ies) shall be endorsed to provide not less than a five (5) year discovery period, or (ii) the coverage shall be maintained for a minimum of five (5) years following the termination of this Agreement and the requirements of this section relating to such coverage shall survive termination or expiration of this Agreement. Attorney shall furnish City with the certificate(s) and applicable endorsements for ALL required insurance prior to City’s execution of this Agreement.
e. Acceptability of Insurers: Insurance shall be placed with insurers with a Bests’ rating of no less than A:VII. This requirement may, however, be waived in individual cases for Errors and Omissions Coverages only; provided, however, DocuSign Envelope ID: A993C6D9-969C-4164-91DF-88E608016EE6 #6..
- 69 -
Legal Services Agreement
City of Modesto and Swingle Van Egmond & Heitlinger
8 that in no event shall a carrier with a rating below B:IX be acceptable. f. Verification of Coverage: Attorney shall furnish City with certificates of insurance showing compliance with the above requirements and with original endorsements affecting all coverages required by this Agreement both prior to the execution of this Agreement, and during the pendency of this Agreement at any time upon request by City. The certificates and/or endorsements shall set forth a valid policy number for City, and shall indicate the Issue Date, Effective Date and Expiration Date. The certificates and endorsements for each insurance policy shall be signed by a person authorized by the insurer to bind coverage on its behalf. The certificates and endorsements shall be forwarded to the City Representative.
g. Payment Withhold: City shall withhold payments to Attorney if the certificates of insurance and endorsements required in this section are canceled or Attorney otherwise ceases to be insured as required herein.

6. Indemnification.
a. Indemnity: Attorney shall fully indemnify and save harmless, City, its officers and employees, including without limitation the City Attorney, and each and every one of them, from and against all actions, damages, costs, liability, claims, losses, judgments, penalties and expenses of every type and description, including, but not limited to, any fees and/or costs reasonably incurred by City’s staff attorneys or outside attorneys and any fees and expenses incurred in enforcing this provision (hereafter collectively referred to as “Liabilities”), to which any or all of them may be subjected, to the extent such Liabilities are caused by or result from any negligent act or omission or willful misconduct of Attorney, its subcontractors or agents, and their respective officers and employees, in connection with the performance or nonperformance of this Agreement, whether or not the City, its officers or employees reviewed, accepted or approved any service or work product performed or provided by the Attorney, and whether or not such Liabilities are litigated, settled or reduced to judgment. b. Obligation to Defend: Attorney shall, upon City’s request, defend at Attorney’s sole cost any action, claim, suit, cause of action or portion thereof which asserts or alleges Liabilities to the extent such Liabilities are caused by or result from any negligent act or omission or willful misconduct of Attorney, its sub-attorneys, subcontractors or agents, and their respective officers and employees, in connection with the performance or nonperformance of this Agreement, whether such action, claim, suit, cause of action or portion thereof is well founded or not. c. Insurance Policies; Intellectual Property Claims: The existence or acceptance by City of any of the insurance policies or coverages described in this Agreement DocuSign Envelope ID: A993C6D9-969C-4164-91DF-88E608016EE6 #6..
- 70 -
Legal Services Agreement
City of Modesto and Swingle Van Egmond & Heitlinger
9 shall not affect or limit any of City’s rights under this section, nor shall the limits of such insurance limit the liability of Attorney hereunder. This section shall not apply to any intellectual property claims, actions, lawsuits or other proceedings subject to the provisions of Section 4 (Confidentiality of City Information) above.

The provisions of this section shall survive any expiration or termination of this Agreement.

7. Termination.
a. By City. City may terminate this Agreement at any time by written notice. After receiving such notice, Attorney will cease providing services. Attorney will cooperate with City in the orderly transfer of all related files and records to your new counsel.
b. By Attorney. Attorney may terminate this Agreement at any time with City’s consent or for good cause. Attorney may terminate this Agreement for any reason by giving to City Attorney not less than thirty (30) days prior written notice of termination. The notice shall specify the effective date of and reason for the termination. Good cause exists if (a) any statement is not paid within ninety (90) days of its receipt; (b) City fails to meet any other obligation under this Agreement and continues in that failure for 15 days after Attorney sends written notice to City; (c) City has misrepresented or failed to disclose material facts to Attorney, refused to cooperate with Attorney, refused to follow Attorney’s advice on a material matter, or otherwise made Attorney’s representation unreasonably difficult; or (d) any other circumstance exists in which ethical rules of the legal profession mandate or permit termination, including situations where a conflict of interest arises. If Attorney terminates Services, City agree to execute a substitution of attorneys promptly and otherwise cooperate in effecting that termination.

Termination of this Agreement, whether by City or by Attorney, will not relieve the obligation to pay for services rendered and costs incurred before our services formally ceased.

8. General Provisions.
a. Independent Contractor.
i. It is understood and agreed that Attorney (including Attorney’s employees) is an independent contractor and that no relationship of employer-employee exists between the Parties hereto for any purpose whatsoever. Neither Attorney nor Attorney’s assigned personnel shall be entitled to any benefits payable to employees of City. City is not required to make any deductions or withholdings from the compensation payable to Attorney under the DocuSign Envelope ID: A993C6D9-969C-4164-91DF-88E608016EE6 #6..
- 71 -
Legal Services Agreement
City of Modesto and Swingle Van Egmond & Heitlinger
10 provisions of this Agreement, and Attorney shall be issued an IRS Form 1099 for its services hereunder. As an independent contractor, Attorney hereby agrees to indemnify and hold City harmless from any and all claims that may be made against City based upon any contention by any of Attorney’s employees or by any third party, including but not limited to any state or federal agency, that an employer-employee relationship or a substitute therefor exists for any purpose whatsoever by reason of this Agreement or by reason of the nature and/or performance of any Services under this Agreement.
ii. It is further understood and agreed by the Parties hereto that Attorney, in the performance of its obligations hereunder, is subject to the control and direction of City as to the designation of tasks to be performed and the results to be accomplished by the Services agreed to be rendered and performed under this Agreement, but not as to the means, methods, or sequence used by Attorney for accomplishing such results. To the extent that Attorney obtains permission to, and does, use City facilities, space, equipment or support services in the performance of this Agreement, this use shall be at the Attorney’s sole discretion based on the Attorney’s determination that such use will promote Attorney’s efficiency and effectiveness. Except as may be specifically provided elsewhere in this Agreement, the City does not require that Attorney use City facilities, equipment or support services or work in City locations in the performance of this Agreement.
iii. If, in the performance of this Agreement, any third persons are employed by Attorney, such persons shall be entirely and exclusively under the direction, supervision, and control of Attorney. Except as may be specifically provided elsewhere in this Agreement, all terms of employment, including hours, wages, working conditions, discipline, hiring, and discharging, or any other terms of employment or requirements of law, shall be determined by Attorney. It is further understood and agreed that Attorney shall issue W-2 or 1099 Forms for income and employment tax purposes, for all of Attorney’s assigned personnel and subcontractors. b. Licenses; Permits, Etc.: Attorney represents and warrants that Attorney has all licenses, permits, City Business Operations Tax Certificate, qualifications, and approvals of whatsoever nature which are legally required for Attorney to practice its profession or provide any services under the Agreement. _____________
Attorney’s Initial
Attorney represents and warrants that Attorney shall, at its sole cost and expense, DocuSign Envelope ID: A993C6D9-969C-4164-91DF-88E608016EE6 #6..
- 72 -
Legal Services Agreement
City of Modesto and Swingle Van Egmond & Heitlinger
11 keep in effect or obtain at all times during the term of this Agreement any licenses, permits, and approvals which are legally required for Attorney to practice its profession or provide such Services. Without limiting the generality of the foregoing, if Attorney is an out-of-state corporation, Attorney warrants and represents that it possesses a valid certificate of qualification to transact business in the State of California issued by the California Secretary of State pursuant to Section 2105 of the California Corporations Code.
c. Conflicts of Interest. Attorney represents and warrants that they have made a diligent effort to determine whether there are any actual or potential conflicts of interest that would preclude or interfere with Attorney’s performance of this Agreement, and that no such conflict of interest exists. Attorney shall indemnify and hold harmless City from and against any and all liability, loss, expense and obligation arising directly or indirectly out of any breach of the foregoing representation and warranty. Attorney agrees to avoid conflicts of interest or the appearance of any conflicts of interest with the interests of City at all times during the performance of this Agreement.
d. Confidentiality of City Information. Attorney understands and agrees that during the course performing the services required by this Agreement, or in contemplation thereof, Attorney may have access to private or confidential information which may be owned or controlled by City and that such information may contain proprietary or confidential details, the disclosure of which to third parties may be damaging to City. Attorney agree that all information disclosed by City to Attorney shall be held in confidence and used only in performance of the services required by this Agreement. A violation of this section shall be a material violation of this Agreement and shall justify legal and/or equitable relief. e. Publicity. The City Representative shall serve as the point of contact for press information regarding all matters pertaining to Services performed by Attorney under this Agreement. Attorney will consult with and obtain approval of the City Representative before making any statement to any media outlet (whether radio, print, internet or television) about the Services.
f. Disqualification of Judges. At the option of the City Attorney, judges may be disqualified from hearing City litigation, and Attorney shall adhere to such decision of the City Attorney. In the event that Attorney is of the opinion that a judge ought to be disqualified, the City Attorney must be consulted in advance by Attorney, and Attorney must obtain the City Attorney’s written consent to such disqualification.
g. Equal Employment Opportunity. During the performance of this Agreement, Attorney, for itself, its assignees and successors in interest, agrees as follows:

DocuSign Envelope ID: A993C6D9-969C-4164-91DF-88E608016EE6 #6..
- 73 -
Legal Services Agreement
City of Modesto and Swingle Van Egmond & Heitlinger
12 i. Compliance With Regulations: Attorney shall comply with the Executive Order 11246 entitled “Equal Opportunity in Federal Employment”, as amended by Executive Order 11375 and 12086, and as supplemented in Department of Labor regulations (41 CFR Chapter 60), hereinafter collectively referred to as the “Regulations.”
ii. Nondiscrimination: Attorney, with regards to the work performed pursuant to this Agreement, shall not discriminate on the ground of race, color, religion, sex, national origin, age, marital status, physical handicap or sexual orientation in selection and retention of subcontractors, including procurement of materials and leases of equipment. Attorney shall not participate either directly or indirectly in discrimination prohibited by the Regulations.
h. Severability. If any portion of this Agreement or the application thereof to any person or circumstance shall be held invalid or unenforceable, the remainder of this Agreement shall not be affected thereby and shall be enforced to the greatest extent permitted by law.
i. Waiver. Neither City acceptance of, or payment for, any Service or Additional Service performed by Attorney, nor any waiver by either Party of any default, breach or condition precedent, shall be construed as a waiver of any provision of this Agreement, nor as a waiver of any other default, breach or condition precedent or any other right hereunder.
j. Enforcement of Agreement. This Agreement shall be governed, construed and enforced in accordance with the laws of the State of California. Venue of any litigation arising out of or connected with this Agreement shall lie exclusively in the state trial court or Federal District Court located in Stanislaus County in the State of California, and the Parties consent to jurisdiction over their persons and over the subject matter of any such litigation in such courts, and consent to service of process issued by such courts.
k. Attorneys’ Fees. In any action to enforce the terms of this Agreement, the prevailing Party shall recover its reasonable attorneys' fees. l. Assignment Prohibited. The expertise and experience of Attorney are material considerations for this Agreement. City has a strong interest in the qualifications and capability of the persons and entities who will fulfill the obligations imposed on Attorney under this Agreement. In recognition of this interest, Attorney shall not assign any right or obligation pursuant to this Agreement without the written consent of the City. Any attempted or purported assignment without City’s written consent shall be void and of no effect.

DocuSign Envelope ID: A993C6D9-969C-4164-91DF-88E608016EE6 #6..
- 74 -
Legal Services Agreement
City of Modesto and Swingle Van Egmond & Heitlinger
13 m. Notice. Any notice, demand, request, consent, approval, communication either Party desires or is required to give the other party or any other person shall be in writing and either served personally or sent by prepaid, first-class mail to the address set forth below. Either Party may change its address by notifying the other Party of the change of address in writing. Notice shall be deemed communicated forty-eight (48) hours from the time of mailing if mailed as provided in this section.

To: City of Modesto: To: Attorney:

Attention: City Attorney Attention: Bradley J. Swingle
1010 Tenth Street, 6th Floor
Modesto, CA 95353
1207 I Street
Modesto, CA 95353
Phone: (209) 577-5288
Fax: (209) 544-8260
Phone: (209) 522-2211
Fax: (209) 522-2980

9. Entire Agreement. This document, including all Exhibits, contains the entire agreement between the Parties and supersedes whatever oral or written understanding they may have had prior to the execution of this Agreement. No alteration to the terms of this Agreement shall be valid unless approved in writing by Attorney, and by City, in accordance with applicable provision of the Modesto City Code.

10. Authority. The person signing this Agreement for Attorney hereby represents and warrants that he/she is fully authorized to sign this Agreement on behalf of Attorney and to bind Attorney to the performance of its obligations hereunder.

11. Exhibits. All exhibits referred to herein are attached hereto and are by this reference incorporated as if set forth fully herein.
[Signatures on Next Page.]
DocuSign Envelope ID: A993C6D9-969C-4164-91DF-88E608016EE6 #6..
- 75 -
Legal Services Agreement
City of Modesto and Swingle Van Egmond & Heitlinger
14 IN WITNESS WHEREOF, the parties have executed this Agreement as of the dates stated below.

CITY OF MODESTO,
A Municipal Corporation
By:___________________________________
Print name: Joseph P. Lopez
Title: City Manager
APPROVED TO AS FORM:
_____________________________________
Jose M. Sanchez, City Attorney
ATTEST:
____________________________________
Diane Nayares-Perez, City Clerk
_______________________________
Joe Rodriguez, Risk Manager
[Signatures Continued on Next Page.]
DocuSign Envelope ID: A993C6D9-969C-4164-91DF-88E608016EE6 6/20/2023
#6..
- 76 -
Legal Services Agreement
City of Modesto and Swingle Van Egmond & Heitlinger
15 ATTORNEY:

SWINGLE, VAN EGMOND & HEITLINGER
a Professional Corporation
______________________________________
______________________________________
Federal I.D. No.
______________________________________
State I.D. No.
______________________________________
City of Modesto Business Op. Tax Cert. No.

TYPE OF BUSINESS ENTITY (check one):
_____ Individual/Sole Proprietor
_____ Partnership
_____ Corporation
_____ Limited Liability Company
_____ Other (please specify: ______________)
______________________________________
Signature of Authorized Person
______________________________________
Title
______________________________________
Additional Signature (if required)
______________________________________
Title
DocuSign Envelope ID: A993C6D9-969C-4164-91DF-88E608016EE6 President/CEO
81-4405199
301-8649-8
#6..
- 77 -

CITY OF MODESTO

COUNCIL AGENDA REPORT
DATE OF MEETING:

January 23, 2024
Date: December 29, 2023
TO: Mayor and City Council
THROUGH: Joseph P. Lopez, City Manager
FROM: Jessica Hill, Director of Community and Economic Development SUBJECT: Application for Encampment Resolution Funding (ERF) CONTACT: Edgar Garcia, Community Development Manager
[email protected], 209-577-5211
DESCRIPTION:

Consider approving the Encampment Resolution Funding Program Application to further our homeless initiatives.
(Funding Source: Encampment Resolution Funding)
STRATEGIC PLAN ELEMENT:

The recommended action supports the City’s 2020-2025 Strategic Plan, Goal C: Develop a Homelessness and Housing Plan
BACKGROUND:

The Encampment Resolution Funding (ERF) Program will fund actionable, person-centered local proposals that resolve the experience of unsheltered homelessness for people residing in encampments. The funding will focus on the safety and wellness of people within encampments, resolve critical encampment concerns, and transition individuals into interim shelter with clear pathways to permanent housing or directly into permanent housing, using data informed, nonpunitive, low-barrier, person-centered, Housing First, and coordinated approaches.

The ERF Program was initially authorized in 2021 through Assembly Bill 140, which allocated $50 million for what would become the first round of funding. Senate Bill 197 amended the program and AB 178 allocated an additional $300 million for Round 2 of ERF funding. ERF-3 was authorized in 2022 through Senate Bill 197 (Chapter 70, Statutes of 2022)1, enacted under Chapter 7 of Part 1 of Division 31 of the California Health and Safety Code (HSC) (sections 50250 et seq.) through which $400 million for this third round was appropriated by SB 101 (Chapter 12, Statute of 2023)2.
1 https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202120220SB197 2 https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202320240SB101 #7..
- 78 -
City Council, January 23, 2024
Application for Encampment Resolution Funding (ERF)

ERF was established to increase collaboration between Cal ICH, Local Jurisdictions, and Continuums of Care (CoCs) to:
 Assist Local Jurisdictions in ensuring the safety and wellness of people experiencing homelessness in encampments.
 Provide grants to Local Jurisdictions and CoCs to resolve critical encampment concerns and transition individuals into safe and stable housing.  Encourage a data-informed, coordinated approach to address encampment concerns.

The current Notice of Funding Availability (NOFA)3 is for the remaining $298,747,574 of ERF-3 funds. Applications are accepted by the California Interagency Council on Homelessness (CalICH) on a rolling basis until June 30, 2024, or until all funds are exhausted, whichever comes first for the purpose of resolving critical encampment concerns. The funding is eligible to assist programs that connect people experiencing homelessness in encampments to interim shelter with a pathway to permanent housing.

DISCUSSION:

The City has identified the ERF-3-R funding program as an opportunity to address concerns caused by the encampments to transition unhoused individuals into safe and stable housing. The City is seeking to apply for ERF-3-R funding to establish a temporary supportive non-congregate shelter campus model in partnership with the Modesto Gospel Mission to provide direct services to the encampment population that is currently residing key state right of ways.

The City is proposing to be the lead agency in writing, submitting, and administering the ERF-3- R grant application. If approved, the City’s proposal for ERF funding will support the City’s Camp2Home initiative in tackling homelessness with the focus of non-congregate shelter and shelter operations as described below:

Street Outreach at Targeted Encampments – Partnership with CHAT The Community Health and Assistance Team (CHAT) housed within the Modesto Police Department (MPD) engages individuals regularly with the focus on the following priority locations (which are also State Right of Ways): McHenry Ave., 9th Street, Maze, and Yosemite. The CHAT team will continue to engage and provide referral support to the encampment population. The goal will be focused on moving individuals further along in their journey to obtain housing by ensuring that set-aside beds and set-aside units are available through a partnership with the Modesto Gospel Mission, and the Salvation Army. CHAT will assess individual readiness for either congregate or non-congregate shelter and determine placement based on client needs.

The estimated budget for this portion of the grant application is up to $1,000,000 which will support personnel and equipment expenses for the performance of the targeted outreach on State Right of Ways.

Non-Congregate Shelter – Partnership with Modesto Gospel Mission As the CHAT team engages individuals and provides referral support to the encampment population, and will have the ability to refer individuals to a non-congregate shelter. If awarded, ERF will support non-congregate sheltering in the amount of 10 units, meal services, access to bathrooms, showers and laundry services; storage; access to supportive services/linkages; and security services. The non-congregate shelter units will be tiny, manufactured homes of 3 https://bcsh.ca.gov/calich/erf_program.html
#7..
- 79 -
City Council, January 23, 2024
Application for Encampment Resolution Funding (ERF)

approximately 60 to 80 square feet accessible units for individuals with communal restrooms available.

The grant will fund on-site wrap around support services within walking distance to additional critical services located at the Modesto Gospel Mission including substance abuse services, additional case management services, and housing navigation services.

City staff has identified the underutilized site at 1530 Owens Drive, Modesto CA 95354 as a suitable location. The location can be quickly modified to accommodate up to 10 units. The Modesto Gospel Mission-owned property is within walking distance of transportation, City services and other Social Services.

The proposal will include a housing-first modeled rental subsidy program intended to assist in removing barriers to accessing permanent housing. Participants served in this program component will have access to housing navigation, rental and utility assistance, move-in assistance, landlord incentives, case management, and additional services to facilitate the household’s path to permanent housing. The estimated budget for this portion of the grant is $1,860,373.

Congregate Shelter- Partnership with Salvation Army
City staff has been working with the Salvation Army for a proposal for encampment resolution funding proposal for a set-aside of 30 beds, prioritizing individuals from encampments.

The proposed funding will help improve service delivery, outcomes and exits to permanent housing. Staff is proposing a budget of $1,642,500 over the 3-year period which will provide funding for operations, direct client support services, infrastructure, site development and acquisition of non-congregate facilities to fund the project through June of 2027.

Estimated 3-Year Project Budget:

Item Description Unit Count Unit Cost Total Cost
(3-year period)
Street Outreach
CHAT Labor
and Material
Staff and equipment
expenses to perform street
outreach
$1,000,000
Non-Congregate Shelter
Site
Development
Onsite and offsite
infrastructure
*One time Cost
1 Site $650,000
One-time Cost
$650,000
One-time Cost
Unit
Acquisition
10 units and communal
bathroom and laundry area
*One time Cost
10 Units, and
2 Communal
Bathrooms
$217,700
One-time Cost
$217,700
One-time Cost
Site
Operations
Utilities, site maintenance,
landscaping, laundry, tenant
support, unit maintenance
1 Site $124,972
Per year
$374,916
Personnel Program manager, two case
managers, and security
4 Full Time $205,920
Per year
$617,760
Congregate Shelter
#7..
- 80 -
City Council, January 23, 2024
Application for Encampment Resolution Funding (ERF)

FISCAL IMPACT:

To-date, the estimated cost over a 3-year period is forecasted to not exceed $5,845,514 for the partnership with the Community Health and Assistance Team, Modesto Gospel Mission, and Salvation Army and will be funded through the ERF funds. If the application is successful, sufficient funds will be available to fund the program and there will be no impact to the General Fund.

COMMITTEE RECOMMENDATION:

This item was presented to the Citizen Housing and Community Development Committee on January 11, 2024, and the Committee recommended forwarding the item to Council for approval.

RECOMMENDED COUNCIL ACTION:

Staff Recommendations:

Resolution approving the Encampment Resolution Funding Program Application, and authorizing the City Manager, or his designee, to submit the Encampment Resolution Funding (ERF) Application in an amount not to exceed $5,845,514, and applicable documentation, as required by California Interagency Council on Homelessness (Cal-ICH), and authorizing the City Manager or his designee to execute the grant agreement, and to take the necessary steps to implement the provisions of this Resolution.

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

1. Attachment 1 – Resolution ERF Application
Shelter
Operations
30 bed set aside
($50 per bed per night) 30 $547,500Per year $1,642,500
Housing Support
Housing
Subsidies
Rental Assistance
(FMR 1bdr $1,188 for 12mos, and
deposit assistance)
60 Individuals
$15,450
per household/
per year
$927,000
Personnel Case manager 1 Full Time $45,760 $137,280
Administration
Administration
(5% of award)
$278,358
Total Cost $5,845,514
#7..
- 81 -
01/23/2024/CED/JHill/Item X 1 2024-XX

MODESTO CITY COUNCIL
RESOLUTION NO. 2024-

RESOLUTION APPROVING THE ENCAMPMENT RESOLUTION FUNDING

PROGRAM APPLICATION, AND AUTHORIZING THE CITY MANAGER, OR

HIS DESIGNEE, TO SUBMIT THE ENCAMPMENT RESOLUTION FUNDING (ERF) APPLICATION IN AN AMOUNT NOT TO EXCEED $5,845,514, AND

APPLICABLE DOCUMENTATION, AS REQUIRED BY CALIFORNIA

INTERAGENCY COUNCIL ON HOMELESSNESS (CAL-ICH), AND

AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO EXECUTE

THE GRANT AGREEMENT, AND TO TAKE THE NECESSARY STEPS TO

IMPLEMENT THE PROVISIONS OF THIS RESOLUTION
WHEREAS, in 2021, Assembly Bill 140 allocated $50 million for local proposals to resolve the experience of unsheltered homelessness for people residing in encampments in a first round of funding, and
WHEREAS, Senate Bill 197 amended the program and Assembly Bill 178 allocated an additional $300 million for round two of funding, and WHEREAS, the current Notice of Funding Availability (NOFA) is accepting applications through the California Interagency Council on Homelessness (Cal-ICH) for the remaining $$298,747,574 of ERF-3 funds until June 30, 2024 or until funds are exhausted, and
WHEREAS, if approved, the City’s proposal for ERF funding will support the City’s Camp2Home initiative in tackling homelessness with the focus of non-congregate shelter in a grant amount estimated not to exceed $5,845,514, and WHERAS, the City has identified the ERF-3-R funding program as an opportunity to address concerns caused by the encampments to transition unhoused individuals into safe and stable housing, and
WHEREAS, the City is proposing to be the lead agency in writing, submitting, and administering the ERF-3-R grant application, and
#7..
- 82 -
01/23/2024/CED/JHill/Item X 2 2024-XX
WHEREAS, the City will partner with the Modesto Gospel Mission on the development of the program, identification and provision of a site location, and operations of the site, and
WHEREAS, this proposal includes financial support for the City Community Health and Assistance Team to perform street outreach, and WHEREAS, the proposal also includes support for the Salvation Army with the implementation of a bed set-aside for clients and will also provide ongoing support and referral services to the program participants, and
WHEREAS, if awarded, ERF will support acquisition of non-congregate shelter units that will be placed on a location that can be quickly modified to accommodate up to 10 units, congregate shelter, street outreach, and housing opportunities, and WHEREAS, the proposal will include a housing first modeled rental subsidy program model intended to assist in removing barriers to accessing permanent housing intended to assist in removing barriers to accessing permanent housing.

NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Modesto that it hereby approves the Encampment Resolution Funding Program Application.

BE IT FURTHER RESOLVED that the City Manager, or his designee, to submit the Encampment Resolution Funding (ERF) Program application, and applicable documentation, as required by California Interagency Council on Homelessness (CalICH) ), and authorizing the City Manager or his designee to execute the grant agreement and to make the necessary steps to implement the provisions of this resolution. #7..
- 83 -
01/23/2024/CED/JHill/Item X 3 2024-XX
The foregoing resolution was introduced at a regular meeting of the Council of the City of Modesto held on the 23rd day of January, 2024 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
#7..
- 84 -

CITY OF MODESTO

COUNCIL AGENDA REPORT
DATE OF MEETING:

January 23, 2024
Date: January 4, 2023
TO: Mayor and City Council
THROUGH: Joseph P. Lopez, City Manager
FROM: Jessica Hill, Director of Community and Economic Development SUBJECT: Bridge Housing Emergency Sleeping Cabins
CONTACT: Edgar Garcia, Housing and Urban Development Supervisor [email protected], 209-577-5211
DESCRIPTION:

Consider approving the competitive bidding process from the State of California for Bridge Housing vendors for a total combined amount not to exceed $2,000,000. (Funding Source:

Measure H funds)
STRATEGIC PLAN ELEMENT:

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

BACKGROUND:

Homelessness has emerged as a key priority for the State of California and the region throughout the last several years. To help meet the needs of the rising number of individuals experiencing homelessness, the City of Modesto, alongside the County of Stanislaus, has worked tirelessly to address the challenge of homelessness through the 3-Prong Strategy of Community Accountability, Shelter/Housing, and Programs and Services. Since 2018, the City embarked on various initiatives to address the need for shelter beds and programs to support individuals experiencing homelessness.

To align efforts and initiatives between all stakeholders involved in addressing homelessness, the City created a strategic plan workgroup that began meeting to discuss the creation of a communitywide plan to address homelessness. The result of this workgroup’s efforts is the 2021 Stanislaus Regional Homeless Strategic Plan (Plan) that includes regional initiatives and is intended to align efforts from the public, private, and faith-based communities.

To help achieve the deliverables outlined in the Plan, on October 20, 2023, the City Council considered a comprehensive update on available housing and homelessness programs and explored potential new programs that can be made available to meet the growing needs of the population to include Bridge Housing.
#8..
- 85 -
City Council, January 23, 2024
Bridge Housing Emergency Sleeping Cabins

Bridge Housing, often referred to as non-congregate shelter options, is typically the first level of housing for individuals who are transitioning out of homelessness. These are temporary manufactured homes with approximately 60 sq. ft. of space for individuals and 120 sq. ft. for families.

DISCUSSION:

Based on feedback from the Homeless Workshop on October 20, 2023, staff developed a framework and implementation strategy for multiple Bridge Housing sites throughout the City.

To assist with the facilitation, the City released two Request for Proposals (RFP) to bring additional resources to the community. These Request for Qualification’s (RFQ) were approved by council on November 7, 2023. Request for Proposals released following approval included Bridge Housing Host Sites, Bridge Housing Site Operators, and Bridge Housing Case Management Support Services.

On March 16, 2023, California Governor Gavin Newsom announced the State’s plan to purchase up to 1,200 Emergency Sleeping Cabins to be deployed across the state this year to help house California’s unsheltered population. The State of California’s Real Estate Services Division to purchase up to 1,200 unit within the first 150 days of contract award. The contract will also be available to other state and local government agencies after the first 150 days.

The City is proposing to piggyback off the State of California released Request for Proposals (RFP) that occurred on May 15, 2023, that solicited proposals from firms qualified to establish a list of vendors qualified to provide Emergency Sleeping Cabins to the State of California (State) that also includes a provision to allow participating California local governmental agencies to utilize the resulting agreements.

The State’s RFP Proposals were evaluated based on various factors, including: Initial Evaluation of Final Proposals: Administrative Material Deviations, which considered materials submitted or lack of, Cost Evaluation, price based on product and material changes were reviewed; Scoring Criteria, bidders scored in accordance with State guidelines on five categories; Preferences and Incentives, based on the State’s procurement allowances, Proposal Scores, based on final pricing; and Technical Material, Awards from the State were made by line item to the responsive and responsible bidders with the highest total score for each line item.

To facilitate the process to secure suppliers and ensure timeliness in responding to the local homelessness concerns, the City is proposing to piggyback on the State’s RFP results and utilize the local government utilization section of each agreement. The State is allowing local governments the ability to use the State contracts after 150 days from the date of execution.

The vendor list below outlines the approved vendors by line item and the first date it is available for the City.

Vendor Awarded Line
Item(s)
Date of Award
PIH Services Inc. 1-56 (All) 8/31/2023
Pallet PBC, dba Pallet,
Inc.
1, 2, 3, 7, 10, 15
& 17
9/19/2023
#8..
- 86 -
City Council, January 23, 2024
Bridge Housing Emergency Sleeping Cabins

Vendor Awarded Line
Item(s)
Date of Award
BOSS Homes, LLC 1-35, 38, 39, 42-
49, 52, 53, & 56
10/31/2023
Factory OS 1, 2, 3, & 7 10/31/2023
KEB Homes, LLC 35, 36, 37, 39, 40,
41, 49, & 53
10/31/2023
AMEG Enterprises, LLC 1-6 & 15-20 10/31/2023
Moving forward with this item does not guarantee funding to any one vendor. Contracted prices for the referenced award lines, as approved with the State’s contracts, are outlined for each approval in attachment 2. The use of contracts is based on the need of each individual site and any project that would utilize this service, would be brought to council individually.

Modesto Municipal Code Section 8-3.203 generally requires all purchases, which meet or exceed $100,000 for material, equipment, or contractual services to be formally bid. However, exceptions to the formal bidding process are granted in MMC 8-3.204(d) “Where the Purchasing Manager, in his or her discretion, determines that a process other than the formal bid procedure set forth in Section 8-3.203 will result in procurement for the City at the lowest possible cost commensurate with the desired quality.” In addition, MMC 8-3.202(h) encourages the Purchasing Manager to join with the State of California and other units of government in cooperative purchasing plans when the best cost savings interest of the City could be served.

Both requirements were met based on the Competitive Bidding Process selected by the Department of General Services, Procurement Division of The State of California.

FISCAL IMPACT:

For Bridge Housing, the estimated cost per unit including the site infrastructure requirements is approximately $75,000 per unit. For the purposes of this solicitation, the City is proposing an allocation of $3,000,000 for possible project(s), of this amount, staff recommends designating $2 million for the acquisition of the units. Measure H funds will be utilized to pay for these costs, and sufficient funds are available within the General Fund Measure H reserves.

This item is to allow for the utilization of the negotiated contract by the State with the proposed vendors.

COMMITTEE RECOMENDATION:

This item was not considered by a Committee, however, on October 20, 2023, the City Council received a comprehensive update on the City’s efforts to address homelessness, including the provision of Bridge Housing.

RECOMMENDED COUNCIL ACTION:

Staff Recommendations:

Resolution approving the Competitive Bidding Process from Department of General Services, Procurement Division of The State of California with to PIH Services Inc., Pallet PBC, dba Pallet, Inc, BOSS Homes, LLC, Factory OS, KEB Homes, LLC and AMEG Enterprises, LLC for emergency sleeping cabins, storage and parts and accessories for Bridge Housing for a total combined amount not to exceed $2,000,000; and authorizing the Purchasing Manager, or her designee, to issue the Purchase Orders based on contractor’s availability and department’s needs.
#8..
- 87 -
City Council, January 23, 2024
Bridge Housing Emergency Sleeping Cabins

Approved by:

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

1. Resolution

2. Vendors and Contract Pricing Summary

3. Agreement – State Executed Agreement with Pallet Inc.

4. Agreement – State Executed Agreement with Factory OS Inc.

5. Agreement – State Executed Agreement with PIH Services Inc.

6. Agreement - State Executed Agreement with KEB Homes LLC

7. Agreement - State Executed Agreement with BOSS Homes LLC

8. Agreement - State Executed Agreement with AMEG Enterprises, LLC #8..
- 88 -
1 MODESTO CITY COUNCIL
RESOLUTION NO. 2024-

RESOLUTION APPROVING THE COMPETITIVE BIDDING PROCESS

FROM DEPARTMENT OF GENERAL SERVICES, PROCUREMENT

DIVISION OF THE STATE OF CALIFORNIA WITH PIH SERVICES
INC., PALLET PBC, DBA PALLET, INC, BOSS HOMES, LLC, FACTORY

OS, KEB HOMES, LLC AND AMEG ENTERPRISES, LLC FOR

EMERGENCY SLEEPING CABINS, STORAGE AND PARTS AND

ACCESSORIES FOR BRIDGE HOUSING FOR A TOTAL COMBINED
AMOUNT NOT TO EXCEED $2,000,000; AND AUTHORIZING THE

PURCHASING MANAGER, OR HER DESIGNEE TO ISSUE THE
PURCHASE ORDERS BASED ON CONTRACTOR’S AVAILABILITY
AND DEPARTMENT’S NEEDS
WHEREAS, homelessness has emerged as a key priority for the State of California and the region throughout the last several years and to help meet the needs of the rising number of individuals experiencing homelessness, the City of Modesto, alongside the County of Stanislaus, has worked tirelessly to address the challenge of homelessness through the 3-Prong Strategy of Community Accountability, Shelter/ Housing, and Programs and Services, and WHEREAS, since 2018, the City embarked on various initiatives to address the need for shelter beds and programs to support individuals experiencing homelessness, and WHEREAS, to align efforts and initiatives between all stakeholders involved in addressing homelessness, the City created a strategic plan workgroup that began meeting to discuss the creation of a communitywide plan to address homelessness, and WHEREAS, the result of this workgroup’s efforts is the 2021 Stanislaus Regional Homeless Strategic Plan (Plan) that includes regional initiatives and is intended to align efforts from the public, private, and faith-based communities, and WHEREAS, to help achieve the deliverables outlined in the Plan, on October 20, 2023, the City Council considered a comprehensive update on available housing and homelessness programs and explored potential new programs that can be made available to meet the growing needs of the population to include Bridge Housing, and
#8..
- 89 -
2 WHEREAS, Bridge Housing, often referred to as non-congregate shelter options, is typically the first level of housing for individuals who are transitioning out of homelessness; these are temporary manufactured homes with approximately 60 sq. ft. of space for individuals and 120 sq. ft. for families, and
WHEREAS, based on feedback from the Homeless Workshop on October 20, 2023, staff developed a framework and implementation strategy for multiple Bridge Housing sites throughout the City and to assist with the facilitation, the City released two Request for Proposals (RFP) to bring additional resources to the community, and WHEREAS, these RFQ’s were approved by council on November 7, 2023 and Request for Proposals released following approval included Bridge Housing Host Sites, Bridge Housing Site Operators, and Bridge Housing Case Management Support Services, and WHEREAS, the City is proposing to piggyback off the State of California released Request for Proposals (RFP) that occurred on May 15, 2023, that solicited proposals from firms qualified to establish a list of vendors qualified to provide Emergency Sleeping Cabins to the State of California (State) that also includes a provision to allow participating California local governmental agencies to utilize the resulting agreements, and WHEREAS, Modesto Municipal Code Section 8-3.203 generally requires all purchases, which meet or exceed $100,000 for material, equipment, or contractual services to be formally bid. However, exceptions to the formal bidding process are granted in MMC 8-3.204(d) “Where the Purchasing Manager, in his or her discretion, determines that a process other than the formal bid procedure set forth in Section 8-3.203 will result in procurement for the City at the lowest possible cost commensurate with the desired quality,” and WHEREAS, in addition, MMC 8-3.202(h) encourages the Purchasing Manager to join with the State of California and other units of government in cooperative purchasing plans when #8..
- 90 -
3 the best cost savings interest of the City could be served. Both requirements were met based on the Competitive Bidding Process selected by the Department of General Services, Procurement Division of The State of California.

NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Modesto that it approves the Competitive Bidding Process from Department of General Services, Procurement Division of The State of California with to PIH Services Inc., Pallet PBC, dba Pallet, Inc, BOSS Homes, LLC, Factory OS, KEB Homes, LLC and AMEG Enterprises, LLC for emergency sleeping cabins, storage and parts and accessories for Bridge Housing for a total combined amount not to exceed $2,000,000.

BE IT FURTHER RESOLVED by that Council of the City of Modesto that it authorizes the Purchasing Manager, or her designee, to issue the purchase orders based on contractor’s availability and department’s needs.
#8..
- 91 -
4 The foregoing resolution was introduced at a regular meeting of the Council of the City of Modesto held on the 23rd day of January 2024, by Councilmember _________, who moved its adoption, which motion being duly seconded by Councilmember ______, was upon roll call carried and the resolution adopted by the following votes:

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:

ATTEST: ________________________________

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

BY: _____________________________________
JOSE M. SANCHEZ, City Attorney
#8..
- 92 -
#8..
- 93 -
#8..
- 94 -
#8..
- 95 -
#8..
- 96 -

2. The term of this Agreement is:
#8..
- 97 -
#8..
- 98 -

STATE OF CALIFORNIA
DEPARTMENT OF GENERAL SERVICES – PROCUREMENT DIVISION

SCOPE OF WORK
Emergency Sleeping Cabins
CONTRACT 1-23-54-01B
September 19, 2023
#8..
- 99 -
Department of General Services Emergency Sleeping Cabins Procurement Division Contract 1-23-54-01B
Exhibit A
2 Table of Contents

1. Scope.................................................................................................................................................. 4

1.1 Contract Usage ............................................................................................................................ 4

1.2 Contract Items.............................................................................................................................. 4

1.2.1 Contract Products................................................................................................................. 4

1.2.2 Warranty................................................................................................................................. 4

1.2.3 Non-Core Replacement Parts............................................................................................... 4

1.2.4 Pricing.................................................................................................................................... 5

1.3 Contract Requirements ............................................................................................................... 5

1.3.1 State Contract Administrator (M)......................................................................................... 5

1.3.2 Contractor Contract Manager (M) ........................................................................................ 5

1.3.3 Customer Service (M) ........................................................................................................... 5

1.3.4 Promotional Materials (M)..................................................................................................... 5

1.3.5 Product Substitutions/Discontinued Items (M)................................................................... 5

1.3.6 Price Adjustments (M) .......................................................................................................... 5

1.3.7 Price Declines........................................................................................................................ 7

1.3.8 Order Acceptance (M)........................................................................................................... 7

1.3.9 Purchase Execution (M)........................................................................................................ 7

1.3.10 Minimum Order (M) ............................................................................................................... 7

1.3.11 Ordering Methods (M)........................................................................................................... 7

1.3.12 Order Acknowledgement (M)................................................................................................ 8

1.3.13 Free on Board (F.O.B) Destination (M) ................................................................................ 8

1.3.14 Delivery Locations (M).......................................................................................................... 8

1.3.15 Secure Grounds Delivery (M) ............................................................................................... 8

1.3.16 Delivery Schedules (M)......................................................................................................... 9

1.3.17 Packing Information (M) ....................................................................................................... 9

1.3.18 Pallets (M) .............................................................................................................................. 9

1.3.19 Inspection and Acceptance (M)............................................................................................ 9

1.3.20 Training (M)............................................................................................................................ 9

1.3.21 Product Recall Procedures (M) ............................................................................................ 9

1.3.22 Invoicing (M) .......................................................................................................................... 9

1.3.23 Payments (M)......................................................................................................................... 9

1.3.23.1State Financial Marketplace (M) .........................................................................................10 #8..
- 100 -
Department of General Services Emergency Sleeping Cabins Procurement Division Contract 1-23-54-01B
Exhibit A
3 1.3.24 Reporting (M)........................................................................................................................10

1.3.24.1Contract Usage Report (M) .................................................................................................10

1.3.24.2Local Governmental Agencies Incentive Fee (M)..............................................................11

1.3.24.3Aging Debt Report (M).........................................................................................................12

1.3.24.4Ad Hoc Reporting (M)..........................................................................................................12

1.3.25 Insurance Requirements (M) ...............................................................................................13 #8..
- 101 -
Department of General Services Emergency Sleeping Cabins Procurement Division Contract 1-23-54-01B
Exhibit A
4 1. Scope
Contractor shall provide Emergency Sleeping Cabins to the California Department of General Services, Real Estate Services Division (DGS-RESD). The contract will also be available for use by other state departments and local governmental agencies in accordance with Section 1.1, Contract Usage. Emergency Sleeping Cabins will be ordered as needed at the discretion of the ordering agency and will be identified on the purchase document.

The term of this contract is through August 30, 2026, with two (2) additional one (1) year extension options or portion thereof. All terms and conditions will remain the same for the entire contract period including any extension periods. Contractor shall be the primary point of contact for customer service, data collection, reporting, and distribution.

The use of this contract is mandatory for all State departments except in cases of emergency as defined in Public Contract Code (PCC), Section 1102.

1.1Contract Usage
Orders shall only be accepted from DGS-RESD for the first 150 calendar days after contract award, or until the DGS-RESD orders are complete, whichever occurs first. Contractor may fulfill orders from ordering agencies other than DGS-RESD prior to the first 150 days upon approval by the Department of General Services, Procurement Division (DGS-PD) Contract Administrator.

1.2Contract Items

1.2.1 Contract Products
Contractor is required to provide Emergency Sleeping Cabins, Storage, and Non-Core Replacement Parts in compliance with Exhibit A1, State of California Specifications. Specific emergency cabin types available under this contract are identified on Exhibit B, Contract Pricing.

1.2.2 Warranty
Contractor shall provide a 5-year warranty term as described in Exhibit A1, State of California Specifications. Modifications made by a duly licensed contractor shall not void the warranty if performed correctly and in accordance with any instructions provided by the Contractor.

Warranty excludes remedy for or replacement of a building or building component when failure of a building or building component is caused by improper installation.

When Emergency Sleeping Cabins are purchased by the State on behalf of local agencies, the warranty shall transfer in full force and effect to the local city or county jurisdiction after the State completes purchase and installation of the Emergency Sleeping Cabins. State will provide written notice to Contractor verifying transfer of any Emergency Sleeping Cabin to local city or county jurisdiction.

1.2.3 Non-Core Replacement Parts
Non-core items are replacement parts and accessory items for Emergency Sleeping Cabins included in this contract. All parts and accessories offered as a non-core item must meet or #8..
- 102 -
Department of General Services Emergency Sleeping Cabins Procurement Division Contract 1-23-54-01B
Exhibit A
5 exceed the Exhibit A1, State of California Specifications requirement and be offered at the discount provided in Exhibit B, Contract Pricing.

1.2.4 Pricing
This contract contains two (2) price structures. Pricing for all core line items, including Emergency Sleeping Cabins and storage, is fixed for the contract term unless a price increase is granted. Replacement parts and accessories are non-core items available for purchase at the discount off list price listed on Exhibit B – Contract Pricing.

1.3Contract Requirements

1.3.1 State Contract Administrator (M)
The State Contract Administrator will be the contact person throughout the life of the contract, unless modified by contract supplement. Any modifications to the requirements contained in the contract may only be authorized by the State Contract Administrator or his/her designee through contract supplement.

1.3.2 Contractor Contract Manager (M)
The Contractor will assign a Contract Manager for contract management purposes. The Contract Manager will be the contact person throughout the life of the contract, unless modified by contract supplement. Contractor must immediately notify the State Contract Administrator of changes to the Contract Manager. The Contract Manager must be authorized to make decisions on behalf of the Contractor.

1.3.3 Customer Service (M)
The Contractor will have a customer service unit that supports this contract. The customer service unit shall provide office and personnel resources for responding to inquiries, including telephone and email coverage weekdays during the hours of 8:00 AM through 5:00 PM (PT).

1.3.4 Promotional Materials (M)
All promotional materials or press releases referencing the contract shall be submitted to the State Contract Administrator for review and DGS approval prior to release.

1.3.5 Product Substitutions/Discontinued Items (M)
Products listed on Exhibit B, Contract Pricing must be available for the entire contract term.

If, during the contract term, specific contract line items are no longer available, Contractor may propose substitute product that either meets or exceeds the minimum requirements.

Product substitution shall be in accordance with the General Provisions (rev 6/21/2022), Article 15/16 titled “Substitutions”.

1.3.6 Price Adjustments (M)
All prices shall be firm fixed for the contract term, including any optional year extensions, unless a price adjustment is granted.
#8..
- 103 -
Department of General Services Emergency Sleeping Cabins Procurement Division Contract 1-23-54-01B
Exhibit A
6 A. Frequency/Guidelines:

Price adjustments will only be acknowledged in accordance with the following guidelines:

1. Price adjustments will not be made during the first twelve (12) months of the contract term.

2. If a price adjustment is granted, requests for another price adjustment will not be accepted for a period of twelve (12) months from the last approved price adjustment effective date.

3. Price adjustment requests must include substantiating documentation that supports the requested price adjustment as defined in section B.2 below.

4. Price adjustments may only be requested when the cost of finished products based on invoices from the OEM and/or component suppliers has increased no less than three (3) percent.

5. No price increase/decrease shall apply to quantities ordered from the contract prior to the effective date of the price adjustment. No retroactive contract price adjustments will be allowed.

6. An exemption to these frequency/guidelines may be requested should unusual circumstances occur, in which case substantiating documentation will be required.

7. The State reserves the right to decrease prices in the same manner as price increase adjustments.

B. Processing a Price Adjustment:

1. Any price adjustment request must be in writing and must be received thirty (30) calendar days prior to the requested adjustment date.

2. Price adjustment requests must include:
a. A copy of the appropriate documentation identified above illustrating the relevant percent increase/decrease.
b. An Excel spreadsheet detailing the requested adjustment to the contract line item(s). The spreadsheet should include the CLIN, current State Contract Price, percent increase/decrease requested, and adjusted State Contract Price for each contract line item.

3. The price adjustment, if accepted, will be effective upon publication of Contract User Instructions supplement by the State.

Upon receipt of a price increase request, the State reserves the right to:
a. Accept the adjustment as competitive with the general market price at that time; or
b. Negotiate proposed price adjustments. Note: The State will notify the Contractor, in writing, its desire to negotiate; or
c. Deny the adjustment request and continue with current State contract prices; or d. Cancel the contract without prejudice, effective upon written notice from the State.
#8..
- 104 -
Department of General Services Emergency Sleeping Cabins Procurement Division Contract 1-23-54-01B
Exhibit A
7 If negotiations fail to produce any agreement, the State reserves the right to exercise Options c or d with an effective date no later than ten (10) working days after unsuccessful negotiation.

1.3.7 Price Declines
The Contractor shall immediately notify the State Contract Administrator of all manufacturer’s price declines and ordering agencies shall receive full benefit of such declines.

1.3.8 Order Acceptance (M)
The Contractor shall only accept orders from DGS-RESD for the first 150 calendar days of contract award. Following that period, the Contractor shall accept orders from any State department or local governmental agency.

The Contractor shall not accept purchase documents for this contract that:
• Are incomplete
• Contain non-contract items or items outside the scope of the contract • Contain non-contract terms and conditions
The Contractor must not refuse to accept orders from any State department or local governmental agency for any other reason without written authorization from the State Contract Administrator.

1.3.9 Purchase Execution (M)
Ordering agencies will submit orders directly to the Contractor using one of the ordering methods listed in Section 1.3.11, Ordering Methods.

State department orders will be submitted using a Purchasing Authority Purchase Order (Std. 65) or using the Fi$Cal Purchase Order process.

Local governmental agencies may submit orders on their own purchase document directly to the Contractor using one of the ordering methods listed in Section 1.3.11, Ordering Methods.

1.3.10 Minimum Order (M)
The minimum order is one (1) Emergency Sleeping Cabin. Parts and accessories may only be purchased as standalone items for use on Emergency Sleeping Cabins previously purchased from the contract.

1.3.11 Ordering Methods (M)
The Contractor shall accept orders through the following methods:
• Facsimile – A facsimile number to be used by ordering agencies for placing orders is to be in place before the commencement of this contract. Facsimile orders must be accepted between the hours of 8:00 AM and 5:00 PM (PT), Monday through Friday. #8..
- 105 -
Department of General Services Emergency Sleeping Cabins Procurement Division Contract 1-23-54-01B
Exhibit A
8 • Mail – Contractor must have the capability to receive orders by mail in place before the commencement of this contract.
• Email – An email address to be used by ordering agencies for placing orders is to be established before the commencement of this contract.

1.3.12 Order Acknowledgement (M)
The Contractor must provide ordering agencies with an order receipt acknowledgment through e-mail or facsimile within two (2) business day after receipt of the purchase order.

The acknowledgement will include:
• Contractor’s Order Number
• Ordering Agency Name
• Purchase Order Number
• Description of Goods
• Total Cost
• Anticipated Delivery Date
• Identification of any Out of Stock/Discontinued Items • Identification of any delivery delays

1.3.13 Free on Board (F.O.B) Destination (M)
All prices offered shall be F.O.B. destination, freight prepaid by the Contractor, to the ordering agency’s final receiving point. Responsibility and liability for loss or damage for all orders shall remain with the Contractor until final inspection and acceptance, when all responsibility shall pass to the ordering agency, except the responsibility for latent defects, fraud, and the warranty obligations. Contractor is not liable for any theft or vandalism after product is delivered to ordering agency.

1.3.14 Delivery Locations (M)
Deliveries are to be made to the location specified on the individual order and may include any locations within the State of California.

Contractor is requested to make deliveries in Los Angeles County, Orange County, San Bernardino Metropolitan Area and San Diego Metropolitan Area during off-peak hours. Offpeak hours are 10:00AM to 4:00PM PT.

1.3.15 Secure Grounds Delivery (M)
Deliveries may be made to locations inside secure grounds that require prior clearances or special entry procedures to be followed for delivery drivers.

Security procedures may vary from facility to facility. The Contractor will be responsible for contacting the secure location for security procedures, hours of operation for deliveries and service, dress code, and other rules of delivery.

Deliveries that are delayed due to drivers not being cleared to enter secure grounds may be cause for contract default.
#8..
- 106 -
Department of General Services Emergency Sleeping Cabins Procurement Division Contract 1-23-54-01B
Exhibit A
9 1.3.16 Delivery Schedules (M)
Delivery of ordered product shall be completed in accordance with Exhibit A1, State of California Specifications, Section 3.1, Delivery.

1.3.17 Packing Information (M)
All shipments must comply with Non-IT General Provisions (rev 6/21/2022) Article 12 titled “Packing and Shipment.”

1.3.18 Pallets (M)
Unless otherwise specified on the ordering agency’s purchase order document, standard commercially available pallet sizes should be used. All pallets shall be of sturdy construction and adequate condition to assure delivery of the goods without damage or safety hazards.

Exchange pallets may be available; however, the State assumes no responsibility for the availability to exchange pallets. Delivery drivers shall not remove more pallets from the location than delivering at time of delivery.

1.3.19 Inspection and Acceptance (M)
Inspection and acceptance shall be in accordance with the Non-IT General Provisions, (Rev. 6/21/22), Article17 titled Inspection, Acceptance and Rejection.

1.3.20 Training (M)
Contractor shall provide installation training as described in Exhibit A1, State of California Specifications, Section 3.2, Training.

1.3.21 Product Recall Procedures (M)
The Contractor shall provide recall notification, regardless of level, in writing to the State Contract Administrator and each applicable ordering agency through the most expedient method possible. The notices, at a minimum, shall include a complete product description and/or identification, contract number, delivery order number and disposition instructions.

The Contractor shall pick up, test, destroy, or return recalled products to the manufacturer at no expense to the ordering agency. The Contractor shall issue replacement of product or credit for any product removed or recalled. Each ordering agency shall have the option of accepting either replacement product or credit in exchange for recalled/removed products.

1.3.22 Invoicing (M)
Invoices shall be submitted to the ordering agencies within seven (7) calendar days from date of delivery.

Ordering agencies may require separate invoicing, as specified by each ordering agency.

1.3.23 Payments (M)
State departments and local government agencies may pay by check or electronic funds transfer. Payments are to be made in accordance with the Non-IT General Provisions (Rev. 6/21/22), Article 30 titled Required Payment Date.
#8..
- 107 -
Department of General Services Emergency Sleeping Cabins Procurement Division Contract 1-23-54-01B
Exhibit A
10 1.3.23.1State Financial Marketplace (M)
The State reserves the right to select the form of payment for all procurements, be it either an outright purchase with payment rendered directly by the State, or a financing (using GS $Mart) or operating lease (using Lease $Mart) via the State Financial Marketplace (GS $Mart and/or Lease $Mart). If payment is via the financial marketplace, the Contractor will invoice the State and the State will approve the invoice and the selected Lender/Lessor will pay the Contractor on behalf of the State for all product listed on the State's procurement document.

1.3.24 Reporting (M)
During the contract period, the Contractor is required to submit the reports outlined in this section on a monthly basis. Report templates will be provided to the Contractor upon contract award.

Reports shall be provided to the State Contract Administrator, in Excel format only via email or U.S. Mail on a USB, by the 15th day following the ending of the reporting period (previous calendar month).

Reports are required every month, including months of no new activity.

1.3.24.1 Contract Usage Report (M)
The Contract Usage Report shall detail all invoiced purchases against the contract by both State and local governmental agencies during the specified reporting period.

The report will contain the following elements:
• Ordering Agency Name
• State or Local Agency
Identifier
• Purchasing Authority
Number (for State
Departments)
• Agency Billing Code
• Purchase Order Number
• Purchase Order Date
• Delivery Date
• Contract Line Item
Number (CLIN)
• Manufacturer (OEM)
• Manufacturer Part #
(OEM #)
• SKU #/ID #
• Item Description
• Unit of Measure
• Quantity in Unit of Measure
• EPP (Y/N)
• Quantity
• List Price/MSRP
• Index Date/Catalog Version
• Contract Unit Price
• Contract Discount
• Extended Contract Price Paid
• Core/Non-Core
• Group ID/Segment ID
• Total Local Usage
• Total Incentive Fee
#8..
- 108 -
Department of General Services Emergency Sleeping Cabins Procurement Division Contract 1-23-54-01B
Exhibit A
11 1.3.24.2 Local Governmental Agencies Incentive Fee (M) For all local government agency transactions invoiced against the contract, the Contractor will be required to remit to the DGS Procurement Division an Incentive Fee of an amount equal to 1.25 percent of the total purchase order amount, excluding taxes and freight.

Local government agencies include cities, counties, and special districts empowered to expend public funds (PCC section 10298). Local government agencies also include California non-executive branch departments including the University of California and California State University.

This Incentive Fee shall not be included in the agency’s purchase price, nor invoiced or charged to the ordering agency. All prices quoted to local governmental agency customers shall reflect State contract pricing, including any and all applicable discounts, and shall include no other addon fees. Payment by the Contractor shall be made monthly to DGS-PD irrespective of payment of invoice by each ordering agency.

Contractor shall submit a payment to the Department of General Services for an amount equal to 1.25 percent of the total local government agency sales for the monthly reporting period less freight, taxes, returned products and credits. (Example, if the net local governmental agency sales for a month totals $100,000.00, the incentive fee due to DGS-PD would be $1,250.00.)
Failure to submit correct reports and payments on a timely basis shall constitute grounds for default of this contract. Reports and payments are due for the reporting period by the 15th day of the next month in a format to be prescribed by the DGS-PD. (Note: If the due date is on a Saturday or Sunday, the due date will be the Monday following.)
Payment may be made in the form of an electronic payment using PD EPAY or by submitting a check payable to the State of California, Department of General Services. Along with each payment, a Contract Usage Report, filtered in Excel to include only local government agency sales, shall be submitted to the State Contract Administrator. The Contract Usage Report requirements are specified in Section 1.3.24.1, Contract Usage Report.

To submit Incentive Fees through PD EPAY, users must register on the DGS-PD LPA Payment Portal.

Incentive Fee payments made by check shall be submitted to the following address:
#8..
- 109 -
Department of General Services Emergency Sleeping Cabins Procurement Division Contract 1-23-54-01B
Exhibit A
12 Department of General Services
Procurement Division
Contracts Management Unit
707 Third Street, 2nd Floor
West Sacramento, CA 95605
If a Contractor holds multiple contracts, the Contractor may submit one (1) check per month covering the DGS-PD incentive fee for the total of all local governmental agency purchases. In this case, a separate report is still required for each contract and a list of the total local governmental agency sales for each contract must be included with the check.

1.3.24.3 Aging Debt Report (M)
The Aging Debt Report must contain the outstanding invoices by State Department for the specified reporting period.

The report will contain the following elements:
• Department Name
• Total Current Debt
• Status of Debt:
• Within Terms
• Over Terms and Within 45 calendar days
• 46-60 calendar days
• 61-90 calendar days
• 91-120 calendar days
• Over 120 calendar days

1.3.24.4 Ad Hoc Reporting (M)
The Contractor shall have the ability to provide ad hoc reporting capabilities at no cost to the State. The Contractor shall permit and provide access to all data that pertains to any procurement action taken by an ordering agency or the State as a whole. The State or ordering agency may make copies of procurement data in any form and the use of such data shall not be restricted.

Dependent on future reporting requirements, the State may ask that certain reports become standard and be delivered to the State on a monthly or quarterly basis.

The State reserves the right to request any additional data elements, as deemed necessary, to the reports listed in this section. #8..
- 110 -
Department of General Services Emergency Sleeping Cabins Procurement Division Contract 1-23-54-01B
Exhibit A
13 1.3.25 Insurance Requirements (M)
The Contractor must maintain in force applicable insurance in accordance with the Non-IT General Provisions (rev 06/21/2022), Article 21 titled “Insurance”.

This Scope of Work addresses key aspects of the contract requirements. It does not relieve Contractor’s obligation to adhere to all terms, conditions, and requirements of RFP Event ID 0000027281 and associated exhibits.
#8..
- 111 -
Exhibit A-1 – State of California Specifications

EMERGENCY SLEEPING CABINS
07/12/2023 DMS/AMS 13 34 23.01 - 1 000000000011853
SECTION 13 34 23.01

FABRICATED EMERGENCY SLEEPING CABINS
PART 1 - GENERAL

1.1 SUMMARY – EMERGENCY SLEEPING CABINS
A. Section includes fabricated Emergency Sleeping Cabin building, with associated fixtures and accessories, to comply with 2022 California Building Code (CBC) Appendix P – Emergency Housing.

1. Any cabin(s) proposed as emergency sleeping cabins under this RFP are not subject to California Department of Housing and Community Development (HCD) regulation as Factory-Built Housing (FBH).

2. Proposed cabins that are intermodal shipping container conversions must also comply with CBC Section 3115. Per Part 1.1.A.1 above, CBC Section 3115.1 Exception 5 does not apply.

1.2 INTENTIONALLY LEFT BLANK

1.3 QUALITY CONTROL
A. General:

1. Contractor must ensure each item conforms to the contract requirements.

2. Contractor must perform and document verifications of quality during fabrication that are traceable to the item verified after fabrication.

B. Quality Assurance: The ordering agency reserves the right to perform inspections on a random or full-time basis.

1. The ordering agency may conduct any inspections and tests on any fabrication, welding or paint coating activities. Contractor must provide access to all fabrication activities at all times.

2. The ordering agency reserves the right to hold all shipping releases until all deficiencies are corrected.

3. Third Party Inspections: The ordering agency reserves the right to install independent third party inspectors in Contractor’s or its subcontractors’/suppliers’ facilities during the production work.
#8..
- 112 -
Exhibit A-1 – State of California Specifications

EMERGENCY SLEEPING CABINS
07/12/2023 DMS/AMS 13 34 23.01 - 2 000000000011853

1.4 WARRANTY
A. Special Warranty: Contractor agrees to replace any building, or building component, that fails in materials or workmanship within specified warranty period.

1. Warranty Period: 1 year from date of delivery to the project location.

2. Shipping charges for replacement parts or the return of defective product will be at the expense of the Contractor.

B. Systematic Failures

1. Failure of more than five cabins or 10% of the cabins delivered under a Purchase Order, whichever is greater, or failure of a similar number of a particular cabin component, shall be deemed a systematic failure.

2. Failure of more than 12 cabins or 25% of the cabins delivered under a Purchase Order, whichever is greater, or failure of more than 25% of a particular cabin component, shall be deemed a gross systematic failure.

3. In the event of a systematic failure, the Contractor shall, at no additional cost to the State or ordering agency, engage a contractor appropriately licensed by the California State Contractor’s Licensing Board to replace all failed components for the duration of the warranty period.

4. In the event of gross systematic failure and at the request of the ordering agency, the Contractor shall, at no additional cost to the State or ordering agency, replace 100% of the type of cabins or cabin components that exhibited failure, whether or not the balance of that 100% has failed yet. Contractor shall be responsible for shipping of failed cabins or cabin component types back to Contractor’s location, and for shipping of replacement cabins or cabin components to the ordering agency.

PART 2 - PRODUCTS

2.1 PERFORMANCE REQUIREMENTS
A. Structural Performance: Emergency Sleeping Cabins shall withstand the following loads and stresses within limits and under conditions indicated according to CBC Appendix P, Section P104.2:

1. Floor Live Loads: Not less than 40 pounds per square foot of floor area.

2. Horizontal Live Loads: Not less than 15 pounds per square foot of vertical wall and roof area.

3. Roof Live Loads: Not less than 20 pounds per square foot of horizontal roof area.

B. Thermal Movements: Allow for thermal movements from ambient and surface temperature changes.

1. Temperature Change (Range): 125 deg F, ambient; 180 deg F, material surfaces. #8..
- 113 -
Exhibit A-1 – State of California Specifications

EMERGENCY SLEEPING CABINS
07/12/2023 DMS/AMS 13 34 23.01 - 3 000000000011853
C. Electrical Components, Devices, and Accessories:

1. Listed and labeled as defined in California Electrical Code, by a qualified testing agency, and marked for intended location and application.

2. All electrical equipment shall operate on 120V or 208V circuits.

D. Accessibility Requirements: Comply with applicable provisions in the 2010 Americans with Disabilities Act Standards (ADAS) and 2022 CBC Chapter 11B, including but not limited to the following requirements for all cabins:

1. Provide an accessible route through the primary entry door adjoining or overlapping required clear floor spaces per CBC Section 11B-809.7.

2. Floor surfaces shall comply with CBC Section 11B-302.

3. Doors shall comply with CBC Section 11B-809.8.

4. Electrical receptacles, controls, and switches shall comply with CBC Section 11B809.12.

E. Provide a window adjacent to and on the same wall as the door or provide a peephole or window in the door. The peephole or window must allow 180-degree view of the outside and be no more than 43” above the finished floor.

F. Security and Egress Requirements:

1. Emergency sleeping cabins must be provided with at least two forms of egress placed remotely from each other. One form of egress may be an egress window complying with CBC Section P104.4.1.

2. Provide locks at all doors and windows.

G. Mechanical Requirements:

1. Provide a thermostatically controlled air conditioner and heater with calculated heating and cooling capacity to maintain the following conditions:
a. Ambient dry bulb temperature (summer/winter): 112°F / 21°F b. Design cooling setpoint: 75°F
c. Design heating setpoint: 68°F

2. Provide mechanical or natural ventilation according to CMC Section 405.0.

2.2 CABIN CONSTRUCTION MATERIALS AND FEATURES
A. General: Fabricate the building from an integrated set of mutually dependent components.

1. The components may be assembled in a factory or may be assembled on the Project site. Factory assembled structures must be complete and ready for installation on the Project site without additional components.

2. Site-assembled cabins shall be capable of being manually disassembled, storable and reusable at other locations as needed.
#8..
- 114 -
Exhibit A-1 – State of California Specifications

EMERGENCY SLEEPING CABINS
07/12/2023 DMS/AMS 13 34 23.01 - 4 000000000011853

3. Sleeping cabins shall be capable of being erected, installed, dismantled, and rebuilt by State or partner agency personnel without the need for extensive training and/or impact on the product warranty.

4. Sleeping cabins that are assembled on a project site, upon assembly, must be complete and ready for installation without additional components.

B. Building Style and Geometry:

1. Interior floor area per structure:
a. Single-occupancy cabins: Minimum 70 square feet, maximum 400 square feet.
b. Double-occupancy cabins: Minimum 120 square feet, maximum 400 square feet.

2. Floor not less than 7’ in the smallest direction.

3. Minimum ceiling height 6’-8”.

C. Building System: Provide a complete, integrated set of mutually dependent components and assemblies that form a building system capable of withstanding structural and other loads, thermally induced movement, and exposure to weather without failure or infiltration of water into building interior.

D. Structural Foundation Connection: Provide means to anchor the building to a concrete pad or other foundation system recommended by the structural engineer. Minimum of four anchorage points, one at each corner.

E. Doors: Exterior Swinging Door:

1. Door shall have a maximum area-weighted U-value of 0.20.

2. Provide latchset with lever handle and removable cylinder capable of being master keyed. Latchset must be capable of being replaced with numeric keypad lock.

3. Hinges: not fewer than the number recommended by the door manufacturer for application indicated or one hinge for every 30 inches of door height, whichever is more stringent.

4. Provide kick plate on push side of door.

5. Perimeter Gasket: Gaskets meeting BHMA A156.22, or pre-hung doors with NFRC label showing Air Leakage rate of ≤0.3; with resilient or flexible seal strips that are easily replaceable and readily available from stocks maintained by manufacturer.

6. Provide weather seal between door bottom and threshold.

7. Emergency escape doors shall comply with the above requirements except that a kick plate, exterior lever and cylinder are not required.

F. Windows: At least two residential, operable dual-pane windows glazed with clear insulating glass. Maximum total window area is 20% of total interior floor area.

1. Framing material shall be rust-resistant.

2. Window assemblies (including framing, glazing, and glazing stops or sealants) shall have a maximum area-weighted U-value of 0.30.
#8..
- 115 -
Exhibit A-1 – State of California Specifications

EMERGENCY SLEEPING CABINS
07/12/2023 DMS/AMS 13 34 23.01 - 5 000000000011853

3. Glazing shall have a maximum solar heat gain coefficient (SHGC) of 0.23.

G. Wall Panel Assembly: Assembly consisting of smooth, impervious, durable exterior and interior face panels.

1. For interior separation wall information, refer to Part 8, 8.1.C.3.

H. Floor Materials: Resilient slip-resistant flooring with welded seams or no seams, waterproof and easily cleanable (with just soap and water, no special cleaners or equipment required).

I. Electrical Power Distribution:

1. Provide and install an electrical load center.
a. Electrical load center shall be UL listed, 120/208 volts AC, 1-phase, 3-wire, minimum 10,000-amperes symmetrical short-circuit interrupting current rating, with 100-amperes rated copper bus.
b. Location of load center shall be in full compliance with California Electric Code (CEC)
c. Load center shall be convertible to top or bottom feed (depending on its application), listed as service entrance rated equipment with ground bar, complete with 40-amperes minimum, 2-pole main circuit breaker, and door lock with keys (all such locks to be keyed alike).
d. Load center shall have minimum of 8 spaces complete with circuit breakers. e. Branch circuit breakers pole and trip shall be sized properly to protect the electrical equipment or devices connected to it. All circuit breakers shall be UL 489 listed type circuit breaker.

2. Provide minimum one convenience power receptacle.
a. Provide and install a UL listed, tamper resistant, 20-amperes, 120-volts, dual-function AFCI/GFCI type receptacle for the first receptacle in the plugload circuit. b. Additional convenience receptacle(s) shall be connected to the load side of the dual-function AFCI/GFCI type receptacle. Receptacle(s) downstream of the AFCI/GFCI type receptacle shall be standard tamper resistant, UL listed NEMA 5-20R type receptacles and shall be clearly marked “AFCI/GFCI Protected”.
c. Install 2 plus ground, all #12 AWG (minimum) conductors for plug-load circuit.
d. Branch circuit breaker protecting the plug-load circuit shall be 20-amperes, 120-volts, 1-pole.

J. Lighting Fixtures:

1. Provide a vandal-resistant interior LED light fixture, providing an average of 10 foot-candles at 30 inches above finished floor, color temperature 3000K.

2. Provide single-pole switches mounted adjacent to door to control interior and exterior lighting fixture.
#8..
- 116 -
Exhibit A-1 – State of California Specifications

EMERGENCY SLEEPING CABINS
07/12/2023 DMS/AMS 13 34 23.01 - 6 000000000011853

3. Provide a vandal-resistant weatherproof exterior full cutoff LED porch fixture with integral photoelectric cell, color temperature 3000K.

K. Provide and install combination smoke and carbon monoxide detector with included interface module for communicating with a Fire Alarm Control Panel, complying with California Residential Code Sections R314 and R315. Smoke detector shall be listed by the California State Fire Marshal.

L. For Carbon Monoxide requirement, refer to Part 2, 2.2.K M. Mechanical Systems and Ventilation

1. Cabin to have a through-the-wall air conditioner and electric resistance heater.

2. Provide either natural or mechanical ventilation.
a. Mechanical ventilation shall comply with California Energy Code Section 150.0(o).

N. Building ID

1. Provide a cabin ID number sign with visual and tactile characters and Braille, complying with CBC Sections 11B-703.1 through 11B-703.5.

2. Cabin ID numbers shall be sequential at each site. The number range will be provided by the ordering agency.

3. Cabin ID number signs shall be field-installed by the ordering agency.

O. Furniture

1. Provide a furnishing package compatible with emergency sleeping cabin units. a. All furnishing items shall easily fit assembled through designed emergency sleeping cabin unit door openings.
b. All furnishings shall be heavy duty (institutional grade).

2. Furnishing package shall include the following:
a. Heavy duty metal bed frame, powder coated finish.
1) Minimum frame dimensions shall be sufficient to support the mattress. 2) Bed pan (base of mattress) shall be 15½” to 18½” above finished floor (top of mattress elevation shall be 20” to 23” above finished floor). 3) Weight capacity shall be minimum 500 lbs.
4) For double occupancy unit requirements, refer to Part 8. b. Flame resistant waterproof sealed mattress suitable for heavy duty metal bed frame. Mattress shall comply with California Department of Consumer Affairs, Bureau of Home Furnishings and Thermal Insulation Technical Bulletin 129.
1) Mattress dimensions shall be 30” to 38” wide, minimum 75” long, and minimum 4½” thick.
2) Mattress shall be wipeable for cleaning with soap and water. c. Metal shelf or shelving for personal items, min. 3 lineal feet of shelving x min. 8” deep.
#8..
- 117 -
Exhibit A-1 – State of California Specifications

EMERGENCY SLEEPING CABINS
07/12/2023 DMS/AMS 13 34 23.01 - 7 000000000011853
1) Shelving shall have eased edges, with no sharp corners, and be capable of supporting 20 lbs. per lineal foot.
2) Shelving in mobility-accessible units shall be capable of being mounted adjacent to a 30” x 48” clear floor space, at a height of 15” minimum to 44” maximum.
d. Heavy duty metal student desk, powder coated finish. 1) Minimum dimensions shall be 36” wide.
2) Height shall be between 28” minimum and 34” maximum. 3) Depth shall be between 20” minimum and 25” maximum.
4) Desk shall have top, sides and reinforced back panel, without drawers or other obstructions within clear knee space.
5) Desktop may be powder-coated steel or minimum ¾” thick plastic laminate.
e. For double-occupancy cabins, provide two complete furnishing packages.

2.3 REPLACEMENT PARTS
A. Ordering agencies may purchase additional replacement parts not covered under warranty or past the warranty period.

PART 3 - EXECUTION

3.1 DELIVERY
A. Contractor shall be responsible for all costs and insurance to ship products Free on Board (FOB) Destination.

1. Destination will be within the State of California and will be specified in the Purchase Order (PO).

2. Delivery date and time (which may be separate for cabins and furniture) shall be mutually agreed between Contractor and the ordering agency, and within the following timeframes unless extended by the ordering agency:
a. First PO, up to 50 cabins: within 90 days of the PO date. b. First PO, each 50 cabins beyond 50: within 30 days after prior shipment delivery date.
c. Subsequent POs: within 90 days of the PO date or 30 days per 50 cabins following any previous shipments, whichever is greater. d. If a contractor is unable to meet the above quantities and/or timelines, the ordering agency may either order a portion of the quantity needed, or order the full quantity needed from another awarded contractor instead. #8..
- 118 -
Exhibit A-1 – State of California Specifications

EMERGENCY SLEEPING CABINS
07/12/2023 DMS/AMS 13 34 23.01 - 8 000000000011853
e. If a contractor and ordering agency are unable to agree on a delivery schedule, the ordering agency may order instead from another awarded contractor.
f. Upon request from the ordering agency, Contractor shall store products beyond the originally agreed delivery date, until the ordering agency is ready to accept delivery and may bill for such additional storage as described in the solicitation.

3. Each PO delivery shall include self-assembly manuals and tool kit for installation.

4. The ordering agency will offload cabin components.

5. If components are delivered in shipping containers, Contractor will be responsible for arranging pickup of the shipping container after it is unloaded.

6. Replacement of a defective product must be delivered within 30 calendar days of the original delivery, or a full refund is warranted.

B. Cabin components must be packaged in complete units for outdoor storage.

C. The ordering agency is responsible for all on-site construction, assembly and installation.

D. Owner’s Manual and Repair Instructions, due within 30 calendar days after submittal of a PO: Include installation, maintenance and repair instructions.

3.2 TRAINING
A. Contractor shall provide training for the ordering agency’s installation contractor(s).

1. Training documentation shall be in printed and video formats. Training documentation (Training Manual and video) may be reproduced by the ordering agency.

2. Content: Training shall include a demonstration of a full cabin assembly, from start to finish.

3. Timing: Training materials shall be provided to the ordering agency within 30 calendar days after submittal of a PO.

4. Contractor must provide telephone support for installation questions up to one year after execution of the PO.

PART 4 - MOBILITY-ACCESSIBLE CABINS

4.1 MOBILITY-ACCESSIBLE CABINS
A. Mobility-Accessible Cabins shall meet all the standards, requirements, and documentation listed in Parts 1 through 3 (inclusive) and as noted below.

1. Interior floor area per structure:
#8..
- 119 -
Exhibit A-1 – State of California Specifications

EMERGENCY SLEEPING CABINS
07/12/2023 DMS/AMS 13 34 23.01 - 9 000000000011853
a. Single-occupancy cabins: Minimum 70 square feet, maximum 400 square feet.
b. Double-occupancy cabins: Minimum 120 square feet, maximum 400 square feet.

B. Mobility-Accessible Cabins shall additionally meet the following:

1. This item was intentionally left blank.

2. Provide an accessible route and turning space in accordance with CBC Section 11B-809.2 within the unit.

3. Doors shall comply with CBC Section 11B-404.

4. Changes in level shall comply with CBC Section 11B-303.

5. Operable parts shall comply with CBC Section 11B-205, including but not limited to light switches, thermostats, electrical receptacles, fire extinguishers, door locks, and operable parts of mechanical units, but excluding windows per CBC Section 11B-229.

PART 5 - STANDARD CABIN WITH COMMUNICATION ACCESSIBLE FEATURES

5.1 STANDARD CABIN WITH COMMUNICATION ACCESSIBLE FEATURES A. Standard Cabins with Communication Accessible Features shall meet all the standards, requirements, and documentation listed in Parts 1 through 3 (inclusive) and as noted below.

1. Interior floor area per structure:
a. Single-occupancy cabins: Minimum 70 square feet, maximum 400 square feet.
b. Double-occupancy cabins: Minimum 120 square feet, maximum 400 square feet.

B. Standard Cabins with Communication Accessible Features shall additionally meet the following:

1. Provide visible carbon monoxide alarm signal complying with CBC Section 11B809.5.2.

2. Provide visible smoke alarm signal complying with CBC Section 11B-809.5.2.

3. Provide a hard-wired electric doorbell with push button outside the cabin entrance, and audible tone and visible signal inside the unit complying with CBC Section 11B-809.5.5.1.
#8..
- 120 -
Exhibit A-1 – State of California Specifications

EMERGENCY SLEEPING CABINS
07/12/2023 DMS/AMS 13 34 23.01 - 10 000000000011853
PART 6 - NONCOMBUSTIBLE CABINS

6.1 NONCOMBUSTIBLE CABINS
A. For each cabin type identified (Standard Cabins, Mobility Accessible Cabins, and Standard Cabins with Communication Accessible Features, both single- and doubleoccupancy), the contractor may provide a Noncombustible Cabin option.

1. Noncombustible Standard Cabins shall meet all of the standards, requirements, and documentation in Parts 1 through 3 and shall meet all of the requirements in Part 6.1B.

2. Noncombustible Mobility Accessible Cabins shall meet all of the standards, requirements, and documentation in Parts 1 through 4, and shall meet all of the requirements in Part 6.1B.

3. Noncombustible Standard Cabins with Communication Accessible Features shall meet all of the standards, requirements, and documentation in Parts 1 through 3, Part 5, and shall meet all of the requirements in Part 6.1.B.

B. Additional requirements for Noncombustible Cabins:

1. Wall and roof assemblies shall consist of exterior face panels fabricated from concrete fiber siding, metal sheets or other noncombustible material.

2. Requirement removed.

3. Interior wall and ceiling surface materials shall comply with one of the following:
a. Class A in accordance with American Society for Testing and Materials (ASTM) E84 - Standard Test Method for Surface Burning Characteristics of Building Materials;
b. Class A in accordance with Underwriters Laboratories (UL) 723 - Standard for Safety for Test for Surface Burning Characteristics of Building Materials; or
c. Meet the National Fire Protection Association (NFPA) 286 - Standard Methods of Fire Tests for Evaluating Contribution of Wall and Ceiling Interior Finish to Room Fire Growth criteria in CBC Section 803.1.1.1.

4. Foam plastics shall not be used as interior finishes.

5. Where high-density polyethylene (HDPE) or polypropylene (PP) is used as an interior finish, it shall meet the NFPA 286 criteria in CBC Section 803.1.1.1.

6. Floor coverings shall be fire-resistive material complying with Class I or Class II in accordance with ASTM E648 or NFPA 253 - Standard Method of Test for Critical Radiant Flux of Floor Covering Systems Using a Radiant Heat Energy Source.

7. Other materials shall be permitted as described by CBC Section 603 Combustible Materials in Types I and II Construction, notwithstanding that the cabins are not Type I or Type II construction.
#8..
- 121 -
Exhibit A-1 – State of California Specifications

EMERGENCY SLEEPING CABINS
07/12/2023 DMS/AMS 13 34 23.01 - 11 000000000011853
PART 7 - CABINS WITH BATHROOMS

7.1 CABINS – WITH BATHROOMS
A. For each cabin type identified (Standard Cabins, Mobility Accessible Cabins, and Standard Cabins with Communication Accessible Features, both single- and doubleoccupancy, whether noncombustible or not), the contractor may provide an Emergency Sleeping Cabin With Bathroom option.

1. Cabins With Bathrooms shall meet all of the standards, requirements, and documentation in Parts 1 through 3 and Part 7.1B, and if Noncombustible shall meet all of the requirements in Part 6.1B.

2. Mobility Accessible Cabins With Bathrooms shall meet all of the standards, requirements, and documentation in Parts 1 through 4 and Parts 7.1B and C, and if Noncombustible shall meet all of the requirements in Part 6.1B. In addition, Contractor shall provide two options for showers:
a. Mobility Accessible Cabins With Bathrooms and Transfer Type Showers shall meet the above requirements plus Part 7.1C.6.a below. b. Mobility Accessible Cabins With Bathrooms and Roll-In Type Showers shall meet the above requirements plus Part 7.1C.6.b below.

3. Cabins With Bathrooms And Communication Accessible Features shall meet all of the standards, requirements, and documentation in Parts 1 through 3, Part 5 and Part 7.1B, and if Noncombustible shall meet all of the requirements in Part 6.1.B.

B. Additional requirements for all Cabins With Bathrooms:

1. The bathroom shall be separated from the living/sleeping area by a wall and door.

The door shall be 24” wide minimum.

2. The bathroom shall contain a water closet, lavatory, shower, towel rack, mirror and toilet paper dispenser. The shower shall be provided with a soap dish.

3. The lavatory and shower shall be provided with hot water from one electric tankless water heater per bathroom or cabin.
a. Activation with 0.35 GPM, ASSE 1070 compliant with 104°F factory temperature setting. Minimum 55°F temperature rise at 1.5 GPM.

4. Provide interior piping to connect site water and sewer systems.

5. All plumbing fixtures, equipment, piping and appurtenances shall comply with the California Plumbing Code and CALGreen, as follows:
a. US EPA WaterSense specification tank-type toilet consuming 1.28 gallons or less of water per flush.
b. Metering lavatory faucet shall not deliver more than 0.2 gallons per cycle. c. Showerheads shall have a maximum flow rate of not more than 1.8 gallons per minute at 80 psi.

6. The bathroom shall have a tamper-resistant, damp-label LED light switched separately from that in the living/sleeping area and providing at an average of 30 footcandles of illumination at 30 inches above the finished floor. #8..
- 122 -
Exhibit A-1 – State of California Specifications

EMERGENCY SLEEPING CABINS
07/12/2023 DMS/AMS 13 34 23.01 - 12 000000000011853

7. The bathroom shall be equipped with a ground-fault circuit interrupted (GFCI) receptacle adjacent to the lavatory.

8. The bathroom shall be provided with an exhaust fan complying with the California Mechanical Code Section 405.3.
a. Exhaust fan shall have the option of operating:
1) continuously at least 20 CFM (cubic feet per minute) and no more than 45 CFM, or
2) intermittently at least 50 and no more than 100 CFM.

9. Bathroom floor and wall finishes shall be impervious to water and easily cleanable.

All joints of plumbing fixtures, accessories, shower enclosures, walls and floors shall be sealed with mildew-resistant sealant.

C. Additional requirements for Mobility-Accessible Cabins With Bathrooms:

1. Bathrooms shall comply with CBC Section 11B-603.

2. Mirrors shall comply with CBC Section 11B-603.3.

3. Where coat hooks and shelves are provided, at least one of each shall comply with CBC Section 11B-603.4.

4. Water closets shall comply with CBC Section 11B-604.

5. Lavatories shall comply with CBC Section 11B-606.

6. Showers shall comply with CBC Section 11B-608.
a. Transfer type showers shall comply with CBC Section 11B-608.2.1. b. Roll-in type showers shall comply with either CBC Section 11B-608.2.2 or 11B-608.2.3.

PART 8 - DUPLEX CABINS

8.1 DUPLEX CABINS
A. A Duplex Cabin is a single structure with two sleeping units.

B. For each cabin type identified (Standard Cabins, Mobility Accessible Cabins, and Standard Cabins with Communication Accessible Features, both single- and doubleoccupancy, whether noncombustible or not, whether with bathrooms or not), the contractor may provide a Duplex Cabin option.

1. Duplex Standard Cabins shall meet all of the standards, requirements, and documentation in Parts 1 through 3 and shall meet all of the requirements in Part

8.1C.

2. Duplex Mobility Accessible Cabins shall meet all of the standards, requirements, and documentation in Parts 1 through 4, and shall meet all of the requirements in Part 8.1C.

3. Duplex Standard Cabins with Communication Accessible Features shall meet all of the standards, requirements, and documentation in Parts 1 through 3, Part 5, and shall meet all of the requirements in Part 8.1.C.
#8..
- 123 -
Exhibit A-1 – State of California Specifications

EMERGENCY SLEEPING CABINS
07/12/2023 DMS/AMS 13 34 23.01 - 13 000000000011853

4. Duplex Cabins that are also non-combustible shall also meet all of the standards, requirements, and documentation in Part 6.

5. Duplex Cabins With Bathrooms shall also meet all of the standards, requirements, and documentation in Part 7.

C. Additional requirements for all Duplex Cabins: Except as otherwise noted below, the requirements of Part 2 apply to each of the two sleeping units within the structure.

1. Part 2.2B.1 - Interior floor area per sleeping unit:
a. Single-occupancy sleeping units: Minimum 70 square feet per unit. b. Double-occupancy sleeping units: Minimum 120 square feet per unit.

2. Part 2.2B.2 - Exterior footprint of structure: maximum 400 square feet.

3. Part 2.2G - Interior separation walls between sleeping units must be fire partitions with minimum 1-hour fire rating.
a. The two sleeping units shall be independent and may not have a door connecting them.

4. Part 2.2I – The Duplex Cabin may have a single load center that serves both sleeping units.

5. Part 2.2J.3 – A porch light shall be installed at each of the two doors.

6. Parts 2.2K and 2.2L – The combination smoke and carbon monoxide detectors in each sleeping unit shall be interconnected, so in the event of a smoke or carbon monoxide event in one sleeping unit, all the detector sounders in the cabin shall be activated.

7. Part 2.2N - Provide a Sleeping Unit ID sign with visual and tactile characters and Braille, complying with CBC Sections 11B-703.1 through 11B-703.5. a. Cabin ID numbers shall be sequential at each site; the sleeping units shall be letters “A” and “B”, appended to the Cabin ID number.

END OF SECTION 13 34 23.01
#8..
- 124 -
Contract Line Item #
(CLIN) Commodity Description Manufacturer (OEM) SKU # / Item # Item Description Unit of Measure Contract Price 1 1-bed, Standard Cabin (base unit) Pallet 33670 FirstStep 70 Sleeper Each $18,900.00 2 1-bed, Mobility Accessible Cabin Pallet 33670 FirstStep 70 Sleeper Each $18,900.00 3 1-bed, Standard Cabin with Communication
Accessible Features Pallet 33671 FirstStep 70 Sleeper with Communication Accessible Features Each $19,400.00 7 1-bed, Standard Cabin (base unit), with
Restroom Pallet 36122 FirstStep 120 Ensuite Each $48,500.00 10 1-bed, Standard Cabin with Communication
Accessible Features, with Restroom Pallet 36124 FirstStep 120 Ensuite with Communication Accessible Features Each $49,000.00 15 2-bed, Standard Cabin (base unit) Pallet 36123 FirstStep 120 Sleeper Each $26,000.00 17 2-bed, Standard Cabin with Communication
Accessible Features Pallet 36121 FirstStep 120 Sleeper with Communication Accessible Features Each $26,500.00 57 Off-site storage after originally agreed upon
delivery date N/A CUSTSTOR 50 units for 30 days 1 - 50 units per Month $6,000.00 Segment ID/Group ID Commodity Description Manufacturer (OEM) SKU # / Item # Item Description Unit of Measure Discount
A
Discount applied to list price of all replacement
parts and accessories. N/A N/A N/A N/A 0%
End of Sheet
Statewide Contract 1-23-54-01B Emergency Sleeping Cabins Storage

NON-CORE ITEMS
Emergency Sleeping Cabins

CORE ITEMS
Contractor: Pallet PBC, dba Pallet Inc.

Exhibit B - Contract Pricing
#8..
- 125 -
DGS PD-401 NON-IT GOODS (REVISED AND EFFECTIVE 6/21/22) GENERAL PROVISIONS – NON-INFORMATION TECHNOLOGY
GOODS

1. DEFINITIONS: The following terms shall be given the meaning shown, unless context requires otherwise or a unique meaning is otherwise specified.
a. "Business entity" means any individual, business, partnership, joint venture, corporation, S-corporation, limited liability corporation, limited liability partnership, sole proprietorship, joint stock company, consortium, or other private legal entity recognized by statute. b. "Buyer" means the State's authorized contracting official. c. "Contract" means this Contract or agreement (including any purchase order), by whatever name known or in whatever format used.
d. "Contractor" means the Business Entity with whom the State enters into this Contract. Contractor shall be synonymous with "supplier", "vendor" or other similar term.
e. "Goods" (commodities) means all types of tangible personal property, including but not limited to materials, supplies, and equipment (including computer equipment and telecommunications).
f. "State" means the government of the State of California, its employees and authorized representatives, including without limitation any department, agency, or other unit of the government of the State of California

2. CONTRACT FORMATION:
a. If this Contract results from a sealed bid offered in response to a solicitation conducted pursuant to Chapters 2 (commencing with Section 10290), 3 (commencing with Section 12100), and 3.6 (commencing with Section 12125) of Part 2 of Division 2 of the Public Contract Code (PCC), then Contractor's bid is a firm offer to the State which is accepted by the issuance of this Contract and no further action is required by either party. b. If this Contract results from a solicitation other than described in paragraph a), above, Contractor's quotation or proposal is deemed a firm offer and this Contract document is the State's acceptance of that offer.
c. If this Contract resulted from a joint bid, it shall be deemed one indivisible Contract. Each such joint Contractor will be jointly and severally liable for the performance of the entire Contract. The State assumes no responsibility or obligation for the division of orders or purchases among joint Contractors.

3. COMPLETE INTEGRATION: This Contract, including any documents incorporated herein by express reference, is intended to be a complete integration and there are no prior or contemporaneous different or additional #8..
- 126 -
DGS PD-401 NON-IT GOODS (REVISED AND EFFECTIVE 6/21/22) GENERAL PROVISIONS – NON-INFORMATION TECHNOLOGY
GOODS

agreements pertaining to the subject matter of the Contract.

4. SEVERABILITY: The Contractor and the State agree that if any provision of this Contract is found to be illegal or unenforceable, such term or provision shall be deemed stricken and the remainder of the Contract shall remain in full force and effect. Either party having knowledge of such term or provision shall promptly inform the other of the presumed non-applicability of such provision.

5. INDEPENDENT CONTRACTOR: Contractor and the agents and employees of Contractor, in the performance of this Contract, shall act in an independent capacity and not as officers or employees or agents of the State.

6. APPLICABLE LAW: This Contract shall be governed by and shall be interpreted in accordance with the laws of the State of California; venue of any action brought with regard to this Contract shall be in Sacramento County, Sacramento, California. The United Nations Convention on Contracts for the International Sale of Goods shall not apply to this Contract.

7. COMPLIANCE WITH STATUTES AND REGULATIONS:
a. Contractor warrants and certifies that in the performance of this Contract, it will comply with all applicable statutes, rules, regulations and orders of the United States and the State of California and agrees to indemnify the State against any loss, cost, damage or liability by reason of Contractor's violation of this provision.
b. If this Contract is in excess of $554,000, it is subject to the requirements of the World Trade Organization (WTO) Government Procurement Agreement (GPA).

8. CONTRACTOR'S POWER AND AUTHORITY: The Contractor warrants that it has full power and authority to grant the rights herein granted and will hold the State harmless from and against any loss, cost, liability, and expense (including reasonable attorney fees) arising out of any breach of this warranty. Further, Contractor avers that it will not enter into any arrangement with any third party which might abridge any rights of the State under this Contract. a. The State will notify Contractor of any such claim in writing and tender the defense thereof within a reasonable time; and b. Contractor will have sole control of the defense of any action on such claim and all negotiations for its settlement or compromise; provided that (i) when substantial principles of government or public law are involved, when litigation might create precedent affecting future State operations or liability, or when involvement of the State is otherwise mandated by law, the State may participate in such action at its own expense with respect to #8..
- 127 -
DGS PD-401 NON-IT GOODS (REVISED AND EFFECTIVE 6/21/22) GENERAL PROVISIONS – NON-INFORMATION TECHNOLOGY
GOODS

attorneys' fees and costs (but not liability); (ii) the State will have the right to approve or disapprove any settlement or compromise, which approval will not unreasonably be withheld or delayed; and (iii) the State will reasonably cooperate in the defense and in any related settlement negotiations.

9. ASSIGNMENT: This Contract shall not be assignable by the Contractor in whole or in part without the written consent of the State. For the purpose of this paragraph, State will not unreasonably prohibit Contractor from freely assigning its right to payment, provided that Contractor remains responsible for its obligations hereunder.

10. WAIVER OF RIGHTS: Any action or inaction by the State or the failure of the State on any occasion, to enforce any right or provision of the Contract, shall not be construed to be a waiver by the State of its rights hereunder and shall not prevent the State from enforcing such provision or right on any future occasion. The rights and remedies of the State herein are cumulative and are in addition to any other rights or remedies that the State may have at law or in equity.

11. ORDER OF PRECEDENCE: In the event of any inconsistency between the articles, attachments, specifications or provisions which constitute this Contract, the following order of precedence shall apply:
a. these General Provisions - Non-IT Commodities;
b. Contract form, i.e., Purchase Order STD 65, etc., and any amendments thereto; c. statement of work, including any specifications incorporated by reference herein; d. special terms and conditions; and
e. all other attachments incorporated in the Contract by reference. #8..
- 128 -
DGS PD-401 NON-IT GOODS (REVISED AND EFFECTIVE 6/21/22) GENERAL PROVISIONS – NON-INFORMATION TECHNOLOGY
GOODS

12. PACKING AND SHIPMENT:
a. All Goods are to be packed in suitable containers for protection in shipment and storage, and in accordance with applicable specifications.

Each container of a multiple container shipment shall be identified to:
i. show the number of the container and the total number of containers in the shipment; and
ii. the number of the container in which the packing sheet has been enclosed. b. All shipments by Contractor or its subcontractors must include packing sheets identifying: the State's Contract number; item number; quantity and unit of measure; part number and description of the Goods shipped; and appropriate evidence of inspection, if required. Goods for different contracts shall be listed on separate packing sheets.
c. Shipments must be made as specified in this Contract, as it may be amended, or otherwise directed in writing by the State's Transportation Management Unit within the Department of General Services, Procurement Division.

13. TRANSPORTATION COSTS AND OTHER FEES OR EXPENSES: No charge for delivery, drayage, express, parcel post, packing, cartage, insurance, license fees, permits, cost of bonds, or for any other purpose will be paid by the State unless expressly included and itemized in the Contract. a. Contractor must strictly follow Contract requirements regarding Free on Board (F.O.B.), freight terms and routing instructions. The State may permit use of an alternate carrier at no additional cost to the State with advance written authorization of the buyer.
b. If "prepay and add" is selected, supporting freight bills are required when over $50, unless an exact freight charge is approved by the Transportation Management Unit within the Department of General Services Procurement Division and a waiver is granted.
c. On "F.O.B. Shipping Point" transactions, should any shipments under the Contract be received by the State in a damaged condition and any related freight loss and damage claims filed against the carrier or carriers be wholly or partially declined by the carrier or carriers with the inference that damage was the result of the act of the shipper such as inadequate packaging or loading or some inherent defect in the equipment and/or material, Contractor, on request of the State, shall at Contractor's own expense assist the State in establishing carrier liability by supplying evidence that the equipment and/or material was properly constructed, manufactured, packaged, and secured to withstand normal transportation conditions.
#8..
- 129 -
DGS PD-401 NON-IT GOODS (REVISED AND EFFECTIVE 6/21/22) GENERAL PROVISIONS – NON-INFORMATION TECHNOLOGY
GOODS

14. TIME IS OF THE ESSENCE: Time is of the essence in this Contract.

15. DELIVERY: Contractor shall strictly adhere to the delivery and completion schedules specified in this Contract. Time, if stated as a number of days, shall mean calendar days unless otherwise specified. The quantities specified herein are the only quantities required. If Contractor delivers in excess of the quantities specified herein, the State shall not be required to make any payment for the excess Goods, and may return them to Contractor at Contractor's expense or utilize any other rights available to the State at law or in equity.

16. SUBSTITUTIONS: Substitution of Goods may not be tendered without advance written consent of the buyer. Contractor shall not use any specification in lieu of those contained in the Contract without written consent of the buyer.

17. INSPECTION, ACCEPTANCE AND REJECTION:
a. Contractor and its subcontractors will provide and maintain a quality assurance system acceptable to the State covering Goods and services under this Contract and will tender to the State only those Goods that have been inspected and found to conform to this Contract's requirements. Contractor will keep records evidencing inspections and their result, and will make these records available to the State during Contract performance and for three years after final payment. Contractor shall permit the State to review procedures, practices, processes and related documents to determine the acceptability of Contractor's quality assurance system or other business practices related to performance of the Contract.
b. All Goods may be subject to inspection and test by the State or its authorized representatives.
c. Contractor and its subcontractors shall provide all reasonable facilities for the safety and convenience of inspectors at no additional cost to the State. Contractor shall furnish to inspectors all information and data as may be reasonably required to perform their inspection. d. All Goods to be delivered hereunder may be subject to final inspection, test and acceptance by the State at destination, notwithstanding any payment or inspection at source.
e. The State shall give written notice of rejection of Goods delivered or services performed hereunder within a reasonable time after receipt of such Goods or performance of such services. Such notice of rejection will state the respects in which the Goods do not substantially conform to their specifications. If the State does not provide such notice of rejection within thirty (30) days, unless otherwise specified in the Statement of Work, of delivery, such Goods and services will be deemed to have been Exhibit C - Non-IT General Provisions
#8..
- 130 -
DGS PD-401 NON-IT GOODS (REVISED AND EFFECTIVE 6/21/22) GENERAL PROVISIONS – NON-INFORMATION TECHNOLOGY
GOODS

accepted. Acceptance by the State will be final and irreversible, except as it relates to latent defects, fraud, and gross mistakes amounting to fraud.

Acceptance shall not be construed to waive any warranty rights that the State might have at law or by express reservation in this Contract with respect to any nonconformity.

18. SAMPLES:
a. Samples of items may be required by the State for inspection and specification testing and must be furnished free of expense to the State. The samples furnished must be identical in all respects to the products bid and/or specified in the Contract.
b. Samples, if not destroyed by tests, may, upon request made at the time the sample is furnished, be returned at Contractor's expense.

19. WARRANTY: Unless otherwise specified, the warranties contained in this Contract begin after acceptance has occurred.
a. Contractor warrants that Goods and services furnished hereunder will conform to the requirements of this Contract (including all descriptions, specifications and drawings made a part hereof), and such Goods will be merchantable, fit for their intended purposes, free from all defects in materials and workmanship and to the extent not manufactured pursuant to detailed designs furnished by the State, free from defects in design. The State's approval of designs or specifications furnished by Contractor shall not relieve the Contractor of its obligations under this warranty.
b. All warranties, including special warranties specified elsewhere herein, shall inure to the State, its successors, assigns, customer agencies and users of the Goods or services.

20. SAFETY AND ACCIDENT PREVENTION: In performing work under this Contract on State premises, Contractor shall conform to any specific safety requirements contained in the Contract or as required by law or regulation.

Contractor shall take any additional precautions as the State may reasonably require for safety and accident prevention purposes. Any violation of such rules and requirements, unless promptly corrected, shall be grounds for termination of this Contract in accordance with the default provisions hereof.

21. INSURANCE: When performing work on property in the care, custody or control of the State, Contractor shall maintain all commercial general liability insurance, workers' compensation insurance and any other insurance the State deems appropriate under the Contract. Contractor
#8..
- 131 -
DGS PD-401 NON-IT GOODS (REVISED AND EFFECTIVE 6/21/22) GENERAL PROVISIONS – NON-INFORMATION TECHNOLOGY
GOODS

shall furnish an insurance certificate evidencing required insurance coverage acceptable to the State. Upon request by the buyer, the Contractor may be required to have the State shown as an "additional insured" on selected policies.

22. TERMINATION FOR NON-APPROPRIATION OF FUNDS:
a. If the term of this Contract extends into fiscal years subsequent to that in which it is approved, such continuation of the Contract is contingent on the appropriation of funds for such purpose by the Legislature. If funds to effect such continued payment are not appropriated, Contractor agrees to take back any affected Goods furnished under this Contract, terminate any services supplied to the State under this Contract, and relieve the State of any further obligation therefor.
b. STATE AGREES THAT IF PARAGRAPH (a) ABOVE IS INVOKED,

GOODS SHALL BE RETURNED TO THE CONTRACTOR IN

SUBSTANTIALLY THE SAME CONDITION IN WHICH DELIVERED TO
THE STATE, SUBJECT TO NORMAL WEAR AND TEAR. STATE

FURTHER AGREES TO PAY FOR PACKING, CRATING,

TRANSPORTATION TO CONTRACTOR'S NEAREST FACILITY AND

FOR REIMBURSEMENT TO THE CONTRACTOR FOR EXPENSES

INCURRED FOR THEIR ASSISTANCE IN SUCH PACKING AND
CRATING.

23. TERMINATION FOR THE CONVENIENCE OF THE STATE:
a. The State may terminate performance of work under this Contract for its convenience in whole or, from time to time, in part, if the Department of General Services, Deputy Director, Procurement Division, or designee, determines that a termination is in the State's interest. The Department of General Services, Deputy Director, Procurement Division, or designee, shall terminate by delivering to the Contractor a Notice of Termination specifying the extent of termination and the effective date thereof. The parties agree that, as to the terminated portion of the Contract, the Contract shall be deemed to remain in effect until such time as the termination settlement, if any, is concluded and the Contract shall not be void.
b. After receipt of a Notice of Termination, and except as directed by the State, the Contractor shall immediately proceed with the following obligations, as applicable, regardless of any delay in determining or adjusting any amounts due under this clause. The Contractor shall:
i. Stop work as specified in the Notice of Termination. ii. Place no further subcontracts for materials, services, or facilities, except as necessary to complete the continued portion of the Contract.
#8..
- 132 -
DGS PD-401 NON-IT GOODS (REVISED AND EFFECTIVE 6/21/22) GENERAL PROVISIONS – NON-INFORMATION TECHNOLOGY
GOODS

iii. Terminate all subcontracts to the extent they relate to the work terminated. iv. Settle all outstanding liabilities and termination settlement proposals arising from the termination of subcontracts; the approval or ratification of which will be final for purposes of this clause.

24. TERMINATION FOR DEFAULT:
a. The State may, subject to the Force Majeure paragraph contained herein, by written notice of default to the Contractor, terminate this Contract in whole or in part if the Contractor fails to:
i. Deliver the Goods or to perform the services within the time specified in the Contract or any amendment thereto;
ii. Make progress, so as to endanger performance of this Contract (but see subparagraph (b) below); or
iii. Perform any of the other provisions of this Contract (but see subparagraph (b), below).
b. The State's right to terminate this Contract under subparagraphs (a)(ii) and (a)(iii) above, may be exercised if the Contractor does not cure such failure within the time frame stated in the cure notice issued by the buyer. c. If the State terminates this Contract in whole or in part, it may acquire, under the terms and in the manner the buyer considers appropriate, Goods or services similar to those terminated, and the Contractor will be liable to the State for any excess costs for those Goods or services.

However, the Contractor shall continue the work not terminated. d. If the Contract is terminated for default, the State may require the Contractor to transfer title and deliver to the State, as directed by the buyer, any:
i. Completed Goods, and
ii. Partially completed Goods and materials, parts, tools, dies, jigs, fixtures, plans, drawings, information, and Contract rights (collectively referred to as "manufacturing materials" in this clause) that the Contractor has specifically produced or acquired for the terminated portion of this Contract. Upon direction of the buyer, the Contractor shall also protect and preserve property in its possession in which the State has an interest.
e. The State shall pay Contract price for completed Goods delivered and accepted. The Contractor and buyer shall agree on the amount of payment for manufacturing materials delivered and accepted for the protection and preservation of the property. Failure to agree will be a dispute under the Disputes clause. The State may withhold from these amounts any sum the buyer determines to be necessary to protect the State against loss because of outstanding liens or claims of former lien holders.
#8..
- 133 -
DGS PD-401 NON-IT GOODS (REVISED AND EFFECTIVE 6/21/22) GENERAL PROVISIONS – NON-INFORMATION TECHNOLOGY
GOODS

f. If, after termination, it is determined that the Contractor was not in default, or that the default was excusable, the rights and obligations of the parties shall be the same as if the termination had been issued for the convenience of the State.
g. The rights and remedies of the State in this clause are in addition to any other rights and remedies provided by law or under this Contract.

25. FORCE MAJEURE:

Except for defaults of subcontractors at any tier, the Contractor shall not be liable for any excess costs if the failure to perform the Contract arises from causes beyond the control and without the fault or negligence of the Contractor.

Examples of such causes include, but are not limited to:
a. Acts of God or of the public enemy, and
b. Acts of the federal or state government in either its sovereign or contractual capacity. If the failure to perform is caused by the default of a subcontractor at any tier, and if the cause of the default is beyond the control of both the Contractor and subcontractor, and without the fault or negligence of either, the Contractor shall not be liable for any excess costs for failure to perform.

26. RIGHTS AND REMEDIES OF STATE FOR DEFAULT:
a. In the event any Goods furnished or services provided by the Contractor in the performance of the Contract should fail to conform to the requirements herein, or to the sample submitted by the Contractor, the State may reject the same, and it shall become the duty of the Contractor to reclaim and remove the item promptly or to correct the performance of services, without expense to the State, and immediately replace all such rejected items with others conforming to the Contract.
b. In addition to any other rights and remedies the State may have, the State may require Contractor, at Contractor's expense, to ship Goods via air freight or expedited routing to avoid or minimize actual or potential delay if the delay is the fault of the Contractor.
c. In the event of the termination of the Contract, either in whole or in part, by reason of default or breach by the Contractor, any loss or damage sustained by the State in procuring any items which the Contractor agreed to supply shall be borne and paid for by the Contractor. #8..
- 134 -
DGS PD-401 NON-IT GOODS (REVISED AND EFFECTIVE 6/21/22) GENERAL PROVISIONS – NON-INFORMATION TECHNOLOGY
GOODS

d. The State reserves the right to offset the reasonable cost of all damages caused to the State against any outstanding invoices or amounts owed to Contractor or to make a claim against the Contractor therefore.

27. CONTRACTOR'S LIABILITY FOR INJURY TO PERSONS OR
DAMAGE TO PROPERTY:
a. The Contractor shall be liable for damages arising out of injury to the person and/or damage to the property of the State, employees of the State, persons designated by the State for training, or any other person(s) other than agents or employees of the Contractor, designated by the State for any purpose, prior to, during, or subsequent to delivery, installation, acceptance, and use of the Goods either at the Contractor's site or at the State's place of business, provided that the injury or damage was caused by the fault or negligence of the Contractor. b. Contractor shall not be liable for damages arising out of or caused by an alteration or an attachment not made or installed by the Contractor, or for damage to alterations or attachments that may result from the normal operation and maintenance of the Goods provided by the Contractor during the Contract.

28. INDEMNIFICATION: Contractor agrees to indemnify, defend and save harmless the State, its officers, agents and employees from any and all claims and losses accruing or resulting to any and all Contractors, subcontractors, suppliers, laborers and any other person, firm, or corporation furnishing or supplying work, services, materials or supplies in connection with the performance of this Contract, and from any and all claims and losses accruing or resulting to any person, firm or corporation which may be injured or damaged by Contractor in the performance of this Contract.

29. INVOICES: Unless otherwise specified, invoices shall be sent to the address set forth herein. Invoices shall be submitted in triplicate and shall include the Contract number; release order number (if applicable); item number; unit price, extended item price and invoice total amount. State sales tax and/or use tax shall be itemized separately and added to each invoice as applicable.

30. REQUIRED PAYMENT DATE: Payment will be made in accordance with the provisions of the California Prompt Payment Act, Government Code Section 927 et. seq. Unless expressly exempted by statute, the Act requires state agencies to pay properly submitted, undisputed invoices not more than 45 days after (i) the date of acceptance of Goods or performance of services; or (ii) receipt of an undisputed invoice, whichever is later.
#8..
- 135 -
DGS PD-401 NON-IT GOODS (REVISED AND EFFECTIVE 6/21/22) GENERAL PROVISIONS – NON-INFORMATION TECHNOLOGY
GOODS

31. TAXES: Unless otherwise required by law, the State of California is exempt from Federal excise taxes. The State will only pay for any State or local sales or use taxes on the services rendered or Goods supplied to the State pursuant to this Contract.

32. NEWLY MANUFACTURED GOODS: All Goods furnished under this Contract shall be newly manufactured Goods; used or reconditioned Goods are prohibited, unless otherwise specified.

33. CONTRACT MODIFICATION: No amendment or variation of the terms of this Contract shall be valid unless made in writing, signed by the parties and approved as required. No oral understanding or agreement not incorporated in the Contract is binding on any of the parties.

34. CONFIDENTIALITY OF DATA: All financial, statistical, personal, technical and other data and information relating to the State's operation which are designated confidential by the State and made available to the Contractor in order to carry out this Contract, or which become available to the Contractor in carrying out this Contract, shall be protected by the Contractor from unauthorized use and disclosure through the observance of the same or more effective procedural requirements as are applicable to the State. The identification of all such confidential data and information as well as the State's procedural requirements for protection of such data and information from unauthorized use and disclosure shall be provided by the State in writing to the Contractor. If the methods and procedures employed by the Contractor for the protection of the Contractor's data and information are deemed by the State to be adequate for the protection of the State's confidential information, such methods and procedures may be used, with the written consent of the State, to carry out the intent of this paragraph. The Contractor shall not be required under the provisions of this paragraph to keep confidential any data or information which is or becomes publicly available, is already rightfully in the Contractor's possession, is independently developed by the Contractor outside the scope of this Contract, or is rightfully obtained from third parties.

35. NEWS RELEASES: Unless otherwise exempted, news releases pertaining to this Contract shall not be made without prior written approval of the Department of General Services.

36. PATENT, COPYRIGHT and TRADE SECRET INDEMNITY:
a. Contractor shall hold the State of California, its officers, agents and employees, harmless from liability of any nature or kind, including costs and expenses, for infringement or use of any copyrighted or #8..
- 136 -
DGS PD-401 NON-IT GOODS (REVISED AND EFFECTIVE 6/21/22) GENERAL PROVISIONS – NON-INFORMATION TECHNOLOGY
GOODS

uncopyrighted composition, secret process, patented or unpatented invention, article or appliance furnished or used in connection with the Contract.
b. Contractor may be required to furnish a bond to the State against any and all loss, damage, costs, expenses, claims and liability for patent, copyright and trade secret infringement.
c. Contractor, at its own expense, shall defend any action brought against the State to the extent that such action is based upon a claim that the Goods or software supplied by the Contractor or the operation of such Goods pursuant to a current version of Contractor supplied operating software infringes a United States patent or copyright or violates a trade secret. The Contractor shall pay those costs and damages finally awarded against the State in any such action. Such defense and payment shall be conditioned on the following:
i. That the Contractor shall be notified within a reasonable time in writing by the State of any notice of such claim; and,
ii. That the Contractor shall have the sole control of the defense of any action on such claim and all negotiations for its settlement or compromise, provided, however, that when principles of
government or public law are involved, the State shall have the option to participate in such action at its own expense. d. Should the Goods or software, or the operation thereof, become, or in the Contractor's opinion are likely to become, the subject of a claim of infringement of a United States patent or copyright or a trade secret, the State shall permit the Contractor at its option and expense either to procure for the State the right to continue using the Goods or software, or to replace or modify the same so that they become non infringing. If none of these options can reasonably be taken, or if the use of such Goods or software by the State shall be prevented by injunction, the Contractor agrees to take back such Goods or software and make every reasonable effort to assist the State in procuring substitute Goods or software. If, in the sole opinion of the State, the return of such infringing Goods or software makes the retention of other Goods or software acquired from the Contractor under this Contract impractical, the State shall then have the option of terminating such Contracts, or applicable portions thereof, without penalty or termination charge. The Contractor agrees to take back such Goods or software and refund any sums the State has paid Contractor less any reasonable amount for use or damage. e. The Contractor shall have no liability to the State under any provision of this clause with respect to any claim of patent, copyright or trade secret infringement which is based upon:
i. The combination or utilization of Goods furnished hereunder with equipment or devices not made or furnished by the Contractor; or,
#8..
- 137 -
DGS PD-401 NON-IT GOODS (REVISED AND EFFECTIVE 6/21/22) GENERAL PROVISIONS – NON-INFORMATION TECHNOLOGY
GOODS

ii. The operation of equipment furnished by the Contractor under the control of any operating software other than, or in addition to, the current version of Contractor supplied operating software; or iii. The modification by the State of the equipment furnished hereunder or of the software; or
iv. The combination or utilization of software furnished hereunder with non Contractor supplied software.
f. Contractor certifies that it has appropriate systems and controls in place to ensure that state funds will not be used in the performance of this Contract for the acquisition, operation or maintenance of computer software in violation of copyright laws.
g. The foregoing states the entire liability of the Contractor to the State with respect to infringement of patents, copyrights or trade secrets.

37. EXAMINATION AND AUDIT: Contractor agrees that the State, or its designated representative shall have the right to review and copy any records and supporting documentation pertaining to performance of this Contract.

Contractor agrees to maintain such records for possible audit for a minimum of three (3) years after final payment, unless a longer period of records retention is stipulated. Contractor agrees to allow the auditor(s) access to such records during normal business hours and to allow interviews of any employees or others who might reasonably have information related to such records. Further, Contractor agrees to include a similar right of the State to audit records and interview staff in any subcontract related to performance of this Contract.

38. DISPUTES:
a. The parties shall deal in good faith and attempt to resolve potential disputes informally. If the dispute persists, Contractor shall submit to the Department Director or designee a written demand for a final decision regarding the disposition of any dispute between the parties arising under, related to or involving this Contract, unless the State, on its own initiative, has already rendered such a final decision. Contractor's written demand shall be fully supported by factual information, and if such demand involves a cost adjustment to the Contract, Contractor shall include with the demand a written statement signed by an authorized person indicating that the demand is made in good faith, that the supporting data are accurate and complete and that the amount requested accurately reflects the Contract adjustment for which Contractor believes the State is liable. If the Contractor is not satisfied with the decision of the Department Director or designee, the Contractor may appeal the decision to the Department of General Services, Deputy Director, Procurement Division. In the event that this Contract is for information technology Goods and/or services, the decision may be #8..
- 138 -
DGS PD-401 NON-IT GOODS (REVISED AND EFFECTIVE 6/21/22) GENERAL PROVISIONS – NON-INFORMATION TECHNOLOGY
GOODS

appealed to an Executive Committee of State and Contractor personnel. b. Pending the final resolution of any dispute arising under, related to or involving this Contract, Contractor agrees to diligently proceed with the performance of this Contract, including the delivery of Goods or providing of services in accordance with the State's instructions.

Contractor's failure to diligently proceed in accordance with the State's instructions shall be considered a material breach of this Contract. c. Any final decision of the State shall be expressly identified as such, shall be in writing, and shall be signed by the Department Director or designee or Deputy Director, Procurement Division if an appeal was made. If the State fails to render a final decision within 90 days after receipt of Contractor's demand, it shall be deemed a final decision adverse to Contractor's contentions. The State's final decision shall be conclusive and binding regarding the dispute unless Contractor commences an action in a court of competent jurisdiction to contest such decision within 90 days following the date of the final decision or one (1) year following the accrual of the cause of action, whichever is later.

39. STOP WORK:
a. The State may, at any time, by written Stop Work Order to the Contractor, require the Contractor to stop all, or any part, of the work called for by this Contract for a period up to 90 days after the Stop Work Order is delivered to the Contractor, and for any further period to which the parties may agree. The Stop Work Order shall be specifically identified as such and shall indicate it is issued under this clause. Upon receipt of the Stop Work Order, the Contractor shall immediately comply with its terms and take all reasonable steps to minimize the incurrence of costs allocable to the work covered by the Stop Work Order during the period of work stoppage.

Within a period of 90 days after a Stop Work Order is delivered to the Contractor, or within any extension of that period to which the parties shall have agreed, the State shall either:
i. Cancel the Stop Work Order; or
ii. Terminate the work covered by the Stop Work Order as provided for in the termination for default or the termination for convenience clause of this Contract.
b. If a Stop Work Order issued under this clause is canceled or the period of the Stop Work Order or any extension thereof expires, the Contractor shall resume work. The State shall make an equitable adjustment in the delivery schedule, the Contract price, or both, and the Contract shall be modified, in writing, accordingly, if:
i. The Stop Work Order results in an increase in the time required for, or in the Contractor's cost properly allocable to the #8..
- 139 -
DGS PD-401 NON-IT GOODS (REVISED AND EFFECTIVE 6/21/22) GENERAL PROVISIONS – NON-INFORMATION TECHNOLOGY
GOODS

performance of any part of this Contract; and
ii. The Contractor asserts its right to an equitable adjustment within 30 days after the end of the period of work stoppage; provided, that if the State decides the facts justify the action, the State may receive and act upon a proposal submitted at any time before final payment under this Contract.
c. If a Stop Work Order is not canceled and the work covered by the Stop Work Order is terminated in accordance with the provision entitled Termination for the Convenience of the State, the State shall allow reasonable costs resulting from the Stop Work Order in arriving at the termination settlement.
d. The State shall not be liable to the Contractor for loss of profits because of a Stop Work Order issued under this clause.

40. PRIORITY HIRING CONSIDERATIONS: If this Contract includes services in excess of $200,000, the Contractor shall give priority consideration in filling vacancies in positions funded by the Contract to qualified recipients of aid under Welfare and Institutions Code Section 11200 in accordance with PCC Section 10353.

41. COVENANT AGAINST GRATUITIES: The Contractor warrants that no gratuities (in the form of entertainment, gifts, or otherwise) were offered or given by the Contractor, or any agent or representative of the Contractor, to any officer or employee of the State with a view toward securing the Contract or securing favorable treatment with respect to any determinations concerning the performance of the Contract. For breach or violation of this warranty, the State shall have the right to terminate the Contract, either in whole or in part, and any loss or damage sustained by the State in procuring on the open market any items which Contractor agreed to supply shall be borne and paid for by the Contractor. The rights and remedies of the State provided in this clause shall not be exclusive and are in addition to any other rights and remedies provided by law or in equity.

42. NONDISCRIMINATION CLAUSE:
a. During the performance of this Contract, Contractor and its subcontractors shall not unlawfully discriminate, harass or allow harassment, against any employee or applicant for employment because of sex, sexual orientation, race, color, ancestry, religious creed, national origin, disability (including HIV and AIDS), medical condition (cancer), age,
#8..
- 140 -
DGS PD-401 NON-IT GOODS (REVISED AND EFFECTIVE 6/21/22) GENERAL PROVISIONS – NON-INFORMATION TECHNOLOGY
GOODS

marital status, and denial of family care leave. Contractor and subcontractors shall insure that the evaluation and treatment of their employees and applicants for employment are free from such discrimination and harassment. Contractor and subcontractors shall comply with the provisions of the Fair Employment and Housing Act (Government Code, Section 12990 et seq.) and the applicable regulations promulgated thereunder (California Code of Regulations, Title 2, Section 7285.0 et seq.). The applicable regulations of the Fair Employment and Housing Commission implementing Government Code Section 12990 (a f), set forth in Chapter 5 of Division 4 of Title 2 of the California Code of Regulations are incorporated into this Contract by reference and made a part hereof as if set forth in full. Contractor and its subcontractors shall give written notice of their obligations under this clause to labor organizations with which they have a collective bargaining or other agreement.
b. The Contractor shall include the nondiscrimination and compliance provisions of this clause in all subcontracts to perform work under the Contract.

43. NATIONAL LABOR RELATIONS BOARD CERTIFICATION: Contractor swears under penalty of perjury that no more than one final, unappealable finding of contempt of court by a federal court has been issued against the Contractor within the immediately preceding two year period because of the Contractor's failure to comply with an order of the National Labor Relations Board. This provision is required by, and shall be construed in accordance with, PCC Section 10296.

44. ASSIGNMENT OF ANTITRUST ACTIONS: Pursuant to Government Code Sections 4552, 4553, and 4554, the following provisions are incorporated herein:
a. In submitting a bid to the State, the supplier offers and agrees that if the bid is accepted, it will assign to the State all rights, title, and interest in and to all causes of action it may have under Section 4 of the Clayton Act (15 U.S.C. 15) or under the Cartwright Act (Chapter 2, commencing with Section 16700, of Part 2 of Division 7 of the Business and Professions Code), arising from purchases of Goods, material, or services by the supplier for sale to the State pursuant to the solicitation. Such assignment shall be made and become effective at the time the State tenders final payment to the supplier.
b. If the State receives, either through judgment or settlement, a monetary recovery for a cause of action assigned under this chapter, the assignor shall be entitled to receive reimbursement for actual legal costs incurred and may, upon demand, recover from the State any portion of the recovery, including treble damages, attributable to overcharges that were #8..
- 141 -
DGS PD-401 NON-IT GOODS (REVISED AND EFFECTIVE 6/21/22) GENERAL PROVISIONS – NON-INFORMATION TECHNOLOGY
GOODS

paid by the assignor but were not paid by the State as part of the bid price, less the expenses incurred in obtaining that portion of the recovery. c. Upon demand in writing by the assignor, the assignee shall, within one year from such demand, reassign the cause of action assigned under this part if the assignor has been or may have been injured by the violation of law for which the cause of action arose and i. the assignee has not been injured thereby, or
ii. the assignee declines to file a court action for the cause of action.

45. DRUG FREE WORKPLACE CERTIFICATION: The Contractor certifies under penalty of perjury under the laws of the State of California that the Contractor will comply with the requirements of the Drug Free Workplace Act of 1990 (Government Code Section 8350 et seq.) and will provide a drug free workplace by taking the following actions:
a. Publish a statement notifying employees that unlawful manufacture, distribution, dispensation, possession, or use of a controlled substance is prohibited and specifying actions to be taken against employees for violations, as required by Government Code Section 8355(a). b. Establish a Drug Free Awareness Program as required by Government Code Section 8355(b) to inform employees about all of the following:
i. the dangers of drug abuse in the workplace;
ii. the person's or organization's policy of maintaining a drug free workplace; iii. any available counseling, rehabilitation and employee assistance programs; and,
iv. penalties that may be imposed upon employees for drug abuse violations. c. Provide, as required by Government Code Section 8355(c), that every employee who works on the proposed or resulting Contract:
i. will receive a copy of the company's drug free policy statement; and, ii. will agree to abide by the terms of the company's statement as a condition of employment on the Contract.

46. FOUR-DIGIT DATE COMPLIANCE: Contractor warrants that it will provide only Four-Digit Date Compliant (as defined below) Deliverables and/or services to the State. "Four Digit Date Compliant" Deliverables and services can accurately process, calculate, compare, and sequence date data, including without limitation date data arising out of or relating to leap years and changes in centuries. This warranty and representation is subject to the warranty terms and conditions of this Contract and does not limit the generality of warranty obligations set forth elsewhere herein.
#8..
- 142 -
DGS PD-401 NON-IT GOODS (REVISED AND EFFECTIVE 6/21/22) GENERAL PROVISIONS – NON-INFORMATION TECHNOLOGY
GOODS

47. SWEATFREE CODE OF CONDUCT:
a. Contractor declares under penalty of perjury that no apparel, garments or corresponding accessories, equipment, materials, or supplies furnished to the State pursuant to the Contract have been produced in whole or in part by sweatshop labor, forced labor, convict labor, indentured labor under penal sanction, abusive forms of child labor or exploitation of children in sweatshop labor, or with the benefit of sweatshop labor, forced labor, convict labor, indentured labor under penal sanction, abusive forms of child labor or exploitation of children in sweatshop labor. Contractor further declares under penalty of perjury that they adhere to the Sweatfree Code of Conduct as set forth on the California Department of Industrial Relations website located at http://www.dir.ca.gov/, and Public Contract Code Section 6108.
b. Contractor agrees to cooperate fully in providing reasonable access to its records, documents, agents or employees, or premises if reasonably required by authorized officials of the State, the Department of Industrial Relations, or the Department of Justice to determine Contractor's compliance with the requirements under paragraph (a).

48. RECYCLING: The Contractor shall certify in writing under penalty of perjury, the minimum, if not exact, percentage of post consumer material as defined in the Public Contract Code Section 12200, in products, materials, Goods, or supplies offered or sold to the State regardless of whether the product meets the requirements of Section 12209. With respect to printer or duplication cartridges that comply with the requirements of Section 12156(e), the certification required by this subdivision shall specify that the cartridges so comply (PCC 12205)

49. CHILD SUPPORT COMPLIANCE ACT: For any Contract in excess of $100,000, the Contractor acknowledges in accordance with PCC Section 7110, that:
a. The Contractor recognizes the importance of child and family support obligations and shall fully comply with all applicable state and federal laws relating to child and family support enforcement, including, but not limited to, disclosure of information and compliance with earnings assignment orders, as provided in Chapter 8 (commencing with Section 5200) of Part 5 of Division 9 of the Family Code; and
b. The Contractor, to the best of its knowledge is fully complying with the earnings assignment orders of all employees and is providing the names of all new employees to the New Hire Registry maintained by the California Employment Development Department.
#8..
- 143 -
DGS PD-401 NON-IT GOODS (REVISED AND EFFECTIVE 6/21/22) GENERAL PROVISIONS – NON-INFORMATION TECHNOLOGY
GOODS

50. AMERICANS WITH DISABILITIES ACT: Contractor assures the State that Contractor complies with the Americans with Disabilities Act of 1990 (42 U.S.C. 12101 et seq).

51. ELECTRONIC WASTE RECYCLING ACT OF 2003: The Contractor certifies that it complies with the requirements of the Electronic Waste Recycling Act of 2003, Chapter 8.5, Part 3 of Division 30, commencing with Section 42460 of the Public Resources Code, relating to hazardous and solid waste.

Contractor shall maintain documentation and provide reasonable access to its records and documents that evidence compliance.

52. USE TAX COLLECTION: In accordance with PCC Section 10295.1, Contractor certifies that it complies with the requirements of Section 7101 of the Revenue and Taxation Code. Contractor further certifies that it will immediately advise State of any change in its retailer's seller's permit or certification of registration or applicable affiliate's seller's permit or certificate of registration as described in subdivision (a) of PCC Section 10295.1.

53. EXPATRIATE CORPORATIONS: Contractor hereby declares that it is not an expatriate corporation or subsidiary of an expatriate corporation within the meaning of PCC Section 10286 and 10286.1, and is eligible to contract with the State.

54. DOMESTIC PARTNERS: For contracts over $100,000 executed or amended after January 1, 2007, the Contractor certifies that the Contractor is in compliance with Public Contract Code section 10295.3.

55. SMALL BUSINESS PARTICIPATION AND DVBE PARTICIPATION REPORTING REQUIREMENTS:
a. If for this Contract the Contractor made a commitment to achieve small business participation, then the Department requires the Contractor upon completion of this Contract (or within such other time period as may be specified elsewhere in this Contract) to report the actual percentage of small business participation that was achieved. (Govt. Code § 14841) b. If for this Contract the Contractor made a commitment to achieve the disabled veteran business enterprise (DVBE) participation goal, then, pursuant to Mil. & Vets. Code § 999.5(d), upon completion of this Contract, the Department requires the Contractor to certify using the Prime Contractor’s Certification – DVBE Subcontracting Report (STD 817), all of the following:
i. the total amount the prime Contractor received under the Contract; ii. the name, address, Contract number and certification ID number of #8..
- 144 -
DGS PD-401 NON-IT GOODS (REVISED AND EFFECTIVE 6/21/22) GENERAL PROVISIONS – NON-INFORMATION TECHNOLOGY
GOODS

the DVBE(s) that participated in the performance of this Contract; iii. the amount and percentage of work the prime Contractor committed to provide to one or more DVBE(s) under the
requirements of the Contract and the total payment each DVBE received from the prime Contractor;
iv. that all payments under the Contract have been made to the DVBE(s); and v. the actual percentage of DVBE participation that was achieved.

Upon request, the prime Contractor shall provide proof of payment for the work.

If for this Contract the Contractor made a commitment to achieve the DVBE participation goal, the Department will withhold $10,000 from the final payment, or the full final payment if less than $10,000, until the Contractor complies with the certification requirements above. A Contractor that fails to comply with the certification requirement shall, after written notice, be allowed to cure the defect.

Notwithstanding any other law, if, after at least 15 calendar days but not more than 30 calendar days from the date of written notice, the prime contractor refuses to comply with the certification requirements, the Department shall permanently deduct $10,000 from the final payment, or the full payment if less than $10,000. (Mil. & Vets. Code § 999.7)
A person or entity that knowingly provides false information shall be subject to a civil penalty for each violation. (Mil. & Vets. Code § 999.5(d); Govt. Code § 14841)
Contractor agrees to comply with the rules, regulations, ordinances, and statutes that apply to the DVBE program as defined in Section 999 of the Mil. & Vets. Code, including, but not limited to, the requirements of Section 999.5(d). (PCC Code § 10230)

56. LOSS LEADER: It is unlawful for any person engaged in business within this state to sell or use any article or product as a "loss leader" as defined in Section 17030 of the Business and Professions Code. (PCC 10302(b).).

57. EXECUTIVE ORDER N-6-22-RUSSIA SANCTIONS: The Contractor shall comply with Executive Order N-6-22 (the EO) regarding Economic Sanctions against Russia and Russian entities and individuals. “Economic Sanctions” refers to sanctions imposed by the U.S. government in response to Russia’s actions in Ukraine, as well as any sanctions imposed under state law. The EO directs state agencies to terminate contracts with, and to refrain from entering any new contracts with, individuals or entities that are determined to be a target of Economic Sanctions. Accordingly, should the State determine Contractor is a target of Economic Sanctions or is conducting prohibited transactions with sanctioned individuals or entities, that shall be grounds for termination of this #8..
- 145 -
DGS PD-401 NON-IT GOODS (REVISED AND EFFECTIVE 6/21/22) GENERAL PROVISIONS – NON-INFORMATION TECHNOLOGY
GOODS